Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Suzhou Gold Mantis Construction Decoration Co., Ltd.
Annual Report 2020
April 2021
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the
directors, supervisors and senior manage ment of Suzhou Gold Mantis Construction
Decoration Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee that the
contents of this Report are true, accurate and complete and free of any misrepresentations,
misleading statements or material omissions, and collectively and individually accept legal
responsibility for such contents.
Wang Hanlin, the Company’s legal representative, Cai Guohua, the Company’s Chief
Financial Officer (head of the Company’s accounting affairs and accounting departme nt)
hereby guarantee that the financial statements carried in this Report are truthful, accurate
and complete.
All the directors of the Company attended in person the board meeting for the approval
of this Report.
Any plans, development strategies and other forward-looking statements mentioned in
this Report shall not be considered as commitments to investors. Investors and those
concerned shall be sufficiently aware of the risks and understand the differences between
plans and forecasts and commitments.
The Company may be exposed to risks associated with prospects of the macro-economy,
real estate control policies, market competition, doubtful accounts receivable, and
management capability in the expanding business. Therefore, investors are reminded to
exercise caution when making investment decisions. For further information, please refer to
contents under the heading “Part IV Management Discussion and Analysis” herein.
The Board has approved a final dividend plan as follows: based on 2,683,358,689 shares,
a cash dividend of RMB2 (tax inclusive) per 10 shares is planne d to be distributed to all the
shareholders, with no bonus issue from either profit or capital reserves.
This Report has been prepared in Chinese and translated into English. Should there be
any discrepancies or misunderstandings between the two versions, the Chinese version shall
prevail.
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Table of Contents
Part I Important Notes, Table of Contents and Definitions ........................................................... 2
Part II Corporate Information and Key Financial Information ................................................... 6
Part III Business Summary ............................................................................................................. 11
Part IV Management Discussion and Analysis .............................................................................. 19
Part V Significant Events................................................................................................................. 37
Part VI Share Changes and Shareholder Information ................................................................. 75
Part VII Preference Shares.............................................................................................................. 84
Part VIII Convertible Corporate Bonds ........................................................................................ 85
Part IX Directors, Supervisors, Senior Management and Staff ................................................... 86
Part X Corporate Governance ........................................................................................................ 97
Part XI Corporate Bonds .............................................................................................................. 106
Part XII Financial Statements....................................................................................................... 107
Part XIII Docume nts Available for Reference ............................................................................. 337
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Definitions
Term Definition
The “Company”, or “Gold Mantis” Suzhou Gold Mantis Construction Decoration Co., Ltd.
The Articles of Association of Suzhou Gold Mantis Construction Decoration
The “Articles of Association”
Co., Ltd.
Meiruide Suzhou Meiruide Construction Decoration Co., Ltd.
Gold Mantis Curtain Wall Suzhou Gold Mantis Curtain Wall Co., Ltd.
Gold Mantis Landscape Suzhou Gold Mantis Landscape Co., Ltd.
Gold Mantis Prefabricated Construction Technology Gold Mantis Prefabricated Construction Technology (Suzhou) Co., Ltd.
Refined Decoration & Technology Gold Mantis Refined Decoration & Technology (Suzhou) Co., Ltd.
Singapore Gold Mantis Singapore Gold Mantis Pte. Ltd.
HBA HBA Holdings Pte. Ltd.
Gold Mantis International Gold Mantis (International) Construction Decoration Limited
Gold Mantis Art Gold Mantis Art Co., Ltd.
Jijia Materials Suzhou Jijia Materials Co., Ltd.
Gold Mantis Municipal Gold Mantis Municipal Engineering Construction (Guizhou) Co., Ltd.
Gold Mantis East China Gold Mantis East China Construction Decoration Co., Ltd.
Archi-Feeling Design Archi-Feeling Design (SuZhou) Co., Ltd.
Jinpu No. 9 Suzhou Jinpu No. 9 Cultural Industrial Development Co., Ltd.
Gold Mantis Home Gold Mantis Home Decoration E-commerce (Suzhou) Co., Ltd.
Gold Mantis Supply Chain Gold Mantis Supply Chain Management (Suzhou) Co., Ltd.
Construction Investment Suzhou Gold Mantis Construction Investment Co., Ltd.
Jindejin Construction Suzhou Industrial Park Jindejin Construction Engineering Co., Ltd.
Xi’an Hi-tech Zone Jinchuang Commercial Operation Management and
Xi’an Jinchuang
Development Co., Ltd.
Shuicheng Ruitong Shuicheng Ruitong Construction and Development Co., Ltd.
RSM RSM China
CSRC China Securities Regulatory Commission
CSRC Jiangsu The Jiangsu branch of the China Securities Regulatory Commission
SZSE Shenzhen Stock Exchange
The website of cninfo http://www.cninfo.com.cn
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
China Securities Journal, Shanghai Securities News, Securities Times, and
The Four Major Securities Newspapers
Securities Daily
Expressed in the Chinese currency of Renminbi, expressed in tens of
RMB, RMB’0,000
thousands of Renminbi
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name Gold Mantis Stock code 002081
Stock exchange Shenzhen Stock Exchange
Company name in Chinese 苏州金螳螂建筑装饰股份有限公司
Abbr. 金螳螂
Company name in English (if
Suzhou Gold Mantis Construction Decoration Co., Ltd.
any)
Abbr. (if any) Gold Mantis
Legal representative Wang Hanlin
Registered address Private Industrial Zone of Suzhou Industrial Park
Zip code 215000
Office address No. 888 West Ring Road, Suzhou City, Jiangsu Province, China
Zip code 215004
Company website www.goldmantis.com
Email address tzglb@goldmantis.com
II Contact Information
Board Secretary Securities Representative
Name Ning Bo Wang Yang
No. 888 West Ring Road, Suzhou City, No. 888 West Ring Road, Suzhou City,
Office address
Jiangsu Province, China Jiangsu Province, China
Tel. 0512-68660622 0512-68660622
Fax 0512-68660622 0512-68660622
Email address tzglb@goldmantis.com tzglb@goldmantis.com
III Media for Information Disclosure and Place where this Report Is Lodged
Newspapers designated by the Company for China Securities Journal, Securities Daily, Securities Times, and Shanghai
information disclosure Securities News
Website designated by the CSRC for publication of
www.cninfo.com.cn
this Report
Place where this Report is lodged Shenzhen Stock Exchange, and No. 888 West Ring Road, Suzhou City,
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Jiangsu Province, China
IV Change to Company Registered Information
Organization code 91320000608285139H (unified social credit code)
1. According to the resolution of the Company's 1st Extraordinary General Meeting of
2008, the following business activities were added to the Company's business scope:
"contracting of overseas construction decoration, and curtain wall engineering, as well
as domestic projects put out to international tender; contracting of the survey,
consulting, design and supervision of the aforesaid overseas projects; export of the
equipment and materials required for the aforesaid overseas projects; dispatch of leased
employees needed to implement the aforesaid overseas projects". The Company went
through the relevant formalities for registration amendment at the Administration for
Industry and Commerce of Jiangsu Province in accordance with the laws on 29 April
2008. 2. According to the resolution of the Company's 2nd Extraordinary General
Meeting of 2008, the following business activities were deleted from the Company's
business scope: "construction of housing with a height of no more than eight floors and
a span of no more than 18 meters as well as structures with a height of no more than 30
meters; undertaking of building intelligent systems engineering (with qualification
certificate)". Moreover, the following business activities were added to the Company's
business scope: "Urban landscape design (with qualification certificate); des ign and
construction of ancient-style landscaping (with qualification certificate); fire-fighting
facility design (with qualification certificate)". The Company went through the relevant
formalities for registration amendment at the Administration for Industry and
Changes to the principal activities of the
Commerce of Jiangsu Province in accordance with the laws on 16 March 2009. 3.
Company since its listing (if any)
According to the resolution of the Company's 1st Extraordinary General Meeting of
2009, the following business activities were added to the Company's business scope:
"steel structure engineering construction (with qualification certificate); light steel
structure engineering design (with qualification certificate)". The Company went
through the relevant formalities for registration amendment at the Administration for
Industry and Commerce of Jiangsu Province in accordance with the laws on 30 June
2009. 4. According to the resolution of the Company's 2nd Extraordinary General
Meeting of 2014, the following business activities were added to the Company's
business scope: "design and construction of indoor and outdoor artworks for all kinds
of buildings; design and construction of soft decoration accessories; design and
construction of environmental way-finding systems". The Company went through the
relevant formalities for registration amendment at the Administration for Industry and
Commerce of Jiangsu Province in accordance with the laws on 24 December 2014. 5.
According to the resolution of the Company's 2nd Extraordinary General Meeting of
2016, the following business activities were added to the Company's bus iness scope:
"architectural engineering procurement construction; undertaking of urban and road
lighting projects; sale of building materials". The Company went through the relevant
formalities for registration amendment at the Administration for Industry and
Commerce of Jiangsu Province in accordance with the laws on 8 October 2016. 6.
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
According to the resolution of the Company's 2017 Annual General Meeting, the
following business activities were added to the Company's business scope:
"development and transfer of construction decoration design technologies". The
Company went through the relevant formalities for registration amendment at the
Administration for Industry and Commerce of Jiangsu Province in accordance with the
laws on 1 June 2018.
Every change of controlling shareholder
Unchanged
since incorporation (if any)
V Other Information
The independent auditor appointed by the Company:
Name of the independent auditor RSM China
Suite 922-926, 9/F, Wai Jing Mao Building, Tower 1, No. 22 Fuchengmen Wai Street, Xicheng
Office address
District, Beijing, China
Accountants writing signatures Song Wen, Hong Zhiguo, and Long Bing
The independent sponsor appointed by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable √ Not applicable
The independent financial advisor appointed by the Company to exercise constant supervision over the Company in the Reporting
Period:
□ Applicable √ Not applicable
VI Key Financial Information
Indicate whether there is any retrospectively restated datum in the table below.
□ Yes √ No
2020-over-2019
2020 2019 2018
change (%)
Operating revenue (RMB) 31,243,227,802.04 30,834,654,530.30 1.33% 25,088,596,105.75
Net profit attributable to the listed
2,373,915,319.52 2,349,395,605.96 1.04% 2,123,411,594.37
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 2,289,281,453.97 2,360,608,057.36 -3.02% 2,063,151,229.61
exceptional gains and losses (RMB)
Net cash generated from/used in
1,777,115,242.16 1,755,219,982.71 1.25% 1,649,422,128.02
operating activities (RMB)
Basic earnings per share (RMB/share) 0.88 0.88 0.00% 0.80
Diluted earnings per share
0.89 0.88 1.14% 0.79
(RMB/share)
Weighted average return on equity 14.83% 16.55% -1.72% 17.16%
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
(%)
Change of 31
December 2020 over
31 December 2020 31 December 2019 31 December 2018
31 December 2019
(%)
Total assets (RMB) 45,003,313,428.27 39,473,391,654.97 14.01% 33,303,504,011.86
Equity attributable to the listed
17,008,652,023.81 15,156,092,842.89 12.22% 13,233,225,823.64
company’s shareholders (RMB)
Indicate whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional gains and
losses was negative for the last three accounting years, and the latest independent auditor’s report indicated that there was uncertainty
about the Company’s ability to continue as a going concern.
□ Yes √ No
Indicate whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional gains and
losses was negative.
□ Yes √ No
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable √ Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No difference for the Reporting Period.
VIII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 4,320,876,652.08 8,893,818,980.65 8,853,108,445.37 9,175,423,723.94
Net profit attributable to the listed
334,951,682.26 671,096,020.63 707,490,182.55 660,377,434.08
company’s shareholders
Net profit attributable to the listed
company’s shareholders before 326,773,637.47 642,556,879.91 699,156,033.38 620,794,903.21
exceptional gains and losses
Net cash generated from/used in -1,880,564,984.49 1,370,506,956.02 -156,900,979.34 2,444,074,249.97
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
operating activities
Indicate whether any of the quarterly financial data in the table above or their summations differs materially from what have been
disclosed in the Company’s quarterly or interim reports.
□ Yes √ No
IX Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item 2020 2019 2018 Note
Gain or loss on disposal of non-current assets (inclusive of
16,701,006.66 -26,506,540.38 -2,434,916.72
impairment allowance write-offs)
Government grants through profit or loss (exclusive of government
grants given in the Company’s ordinary course of business at fixed 54,243,752.72 19,660,084.94 20,910,821.56
quotas or amounts as per the government’s uniform standards)
Capital occupation charges on non-financial enterprises that are
1,428,722.80 1,907,117.77
recognized in profit or loss
Gain or loss on assets entrusted to other entities for investment or
40,843,523.94 39,009,978.18
management
Gain or loss on fair-value changes on held-for-trading and
derivative financial assets and liabilities & income from disposal of
held-for-trading and derivative financial assets and liabilities and 35,346,523.09 -59,789,345.26
other debt investments (exclusive of the effective portion of hedges
that arise in the Company’s ordinary course of business)
Reversed portions of impairment allowances for receivables and
3,356,920.55 15,585,608.47
contract assets which are tested individually for impairment
Non-operating income and expense other than the above -3,385,100.86 1,010,129.80 349,977.29
Less: Income tax effects 19,092,692.94 -7,656,454.79 12,924,997.05
Non-controlling interests effects (net of tax) 3,965,266.47 -4,006,123.00 236,106.97
Total 84,633,865.55 -11,212,451.40 60,260,364.76 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public —Exceptional Gain/Loss
Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Part III Business Summary
I Principal Activities of the Company in the Reporting Period
The Company is subject to the Guide No. 6 of the Shenzhen Stock Exchange on Industry-Specific Information Disclosure—Listed
Companies Engaged in Construction Decoration.
(I) Core Business of the Company
The Company is a comprehensive and professional construction decoration group with interior decoration as the core business,
which also provides curtain wall engineering, landscaping, soft decoration, furnishing, and mechanical and electrical equipme nt
installation. Projects undertaken by the Company include public construction decoration and residential decoration, covering various
business forms such as hotel decoration, cultural, sports and exhibition construction decoration, commercial construction dec oration,
transport infrastructure decoration, and residential decoration. The Company possesses the Construction Engineering Contractor
(Class One), the Construction Decoration Engineering Professional Contractor (Class One), and the Construction Decoration
Engineering Design (Class A), among other qualification certificates. With the qualifications and capabilities to carry out various
construction decoration projects, the Company is one of the construction decoration providers with the highest qualification levels
and the most qualification types. Its design and construction projects are generally obtained through bidding and bid invitation.
During the Reporting Period, there were no significant changes in the Company's core business.
(II) Development Overview of the Industry
1. Main Features of the Industry
The construction decoration industry in which the Company operates is an important part of China's national economic
development. According to the different nature of building use, the construction decoration industry is divided into public
construction decoration and residential decoration. Under the trend of consumption upgrade, the construction decoration industry has
the characteristic of repeated implementation. Each building needs to be decorated and furnished multiple times during the entire life
cycle from the completion of the main structure to the end of its service life. Therefore, the construction decoration industry features
demand sustainability.
2. Development Status of the Industry
In 2020, the construction decoration industry started low but later grew better. In H1, affected by the COVID-19 pandemic,
business activities were greatly restricted. With the domestic economic resurgence in H2, investment in fixed assets rose slowly, and
the industry showed a momentum of rapid recovery. In respect of specific business segments, the number of new-type people's
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
livelihood projects such as medical care, elderly care, culture and sports, and transport grew rapidly; hotels, tourism and other
consumption upgrade projects picked up slowly; traditional projects remained stable. At the same time, as large-scale and
comprehensive projects increased, the engineering procurement construction (EPC) model of decoration projects was gradually
recognized by the market. Leading enterprises would usher in new development opportunities.
3. Competitive Landscape and Development Trend of the Industry
In 2020, the domestic construction decoration market showed more obvious differentiation under the impact of the pandemic
and the intensification of internal competition. Specifically, market shares of the industry's top companies kept expanding, their cash
flow remained healthy, and they continued to develop new business and new technologies; in the face of significantly greater
competitive pressure, development speeds of mid-market companies slowed down; small companies in the industry were phased out
of the market due to business shrinking and capital chain tightness. Therefore, the decoration industry is currently in a sta ge of
accelerated transition from a decentralized market to a centralized market. After a long period of sufficient market competition,
industry concentration has begun to increase dramatically. The market shares of leading companies will continue to rise in the future.
4. Position of the Company in the Industries in which the Company Operates
Founded in 1993, the Company is headquartered in Suzhou, China. It is a comprehensive construction decoration contractor that
is mainly engaged in the design and construction of construction decorations. With full-industry-chain design and construction
service capacities on interior decoration, curtain wall engineering, landscaping, soft decoration, furnishing, and mechanical and
electrical equipment installation, the Company is a leader in the green, environmentally friendly and healthy public and home
decoration industry, as well as a national high-tech enterprise.
The Company is the first listed company in China's construction decoration industry. Its stock name is "Gold Mantis" and its
stock code is "002081". The Company has maintained its No. 1 position in "The Enterprises of China's Building Decoration Industry
Top One Hundred" for successive years and has won the "Luban Prize" 115 times and the "China Construction Engineering
Decoration Award" 438 times accumulatively. It was once rated among "Asia's Fab 50" by the Forbes magazine of the United States,
selected as one of the "China Business Top 100", conferred the "Golden Round Table: Value Creation Award for Board of Directors",
given the "Quanjing Investor Relations Gold Award (2020)", and shortlisted for the "ENR Top 60 Chinese Design Firms", in addition
to receiving the "Most Influential Brand Organization in China's Architectural Decoration Industry", the "National Excellent
Construction Enterprise", the "Excellent Decoration Enterprise in Jiangsu Province" and many other honors. Furthermore, due to the
Company's remarkable achievements and development results in standardized design, industrialized production, prefabricated
construction, integrated decoration, information-based management and intelligent application, the Company has become one of the
first to be recognized as a national "prefabricated construction industrial base" by the General Office of the Ministry of Ho using and
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Urban-Rural Development of the People's Republic of China.
Meiruide, a subsidiary of the Company, has earned a spot in "The Enterprises of China's Building Decoration Industry Top One
Hundred" for many consecutive years. It has won the "Luban Prize" six times, the "China Construction E ngineering Decoration
Award" 42 times and the "Tien-yow Jeme Prize" two times. Haimen People's Hospital, Suzhou Rail Transit (Line 1, Line 2 and Line
4), Longfor Times Paradise Walk, Donghu Digital Town, Banyan Tree Jiuzhaigou and Suzhou Modern Media Plaza are all its
representative works.
Gold Mantis Curtain Wall was recognized as a "National Excellent Enterprise in Curtain Wall Building Industry" and an
"Excellent Decoration Enterprise in Jiangsu Province". It has won the "Luban Prize" six times and the "China Construction
Engineering Decoration Award" 21 times. Its key technology innovation and application of the ultra -long special-shaped grid
structure "Wings of Future" at Suzhou Center Mall received the "China Award for Science and Technology in Construction (First
Prize)" given by the Ministry of Housing and Urban-Rural Development; the Gate of the Orient and InterContinental Shanghai
Wonderland took the "Tien-yow Jeme Civil Engineering Prize" awarded by the China Civil Engineering Society.
Gold Mantis Landscape was named one of the "National Top 50 Urban Landscaping Enterprises" and clinched the title of
"Excellent Decoration Enterprise in Jiangsu Province". It has won the "Luban Prize" one time, the "National Construction Decoration
Industry Science and Technology Demonstration Project Award" six times, the "National Excellent Landscaping Project Award"
seven times and the "National Science and Technology Innovation Achievement Award" 17 times. Its representative works include
Datang Everbright City in Xi'an, Haohe Scenic Area in Nantong of Jiangsu Province, Nanhu Wetland Park in Huaibei of Anhui
Province, south bank greening of Hebi Qihe River demonstration zone in Henan Province, and Weng'an wetland park design and
construction integration in Guizhou Province.
HBA has been consecutively rated as "No. 1 in the hotel design industry" by Interior Design for years. So far, HBA has received
more than 500 top awards in the design industry, including the Gold Key Awards, the Hospitality Design Awards, the Perspective
Magazine Awards, the Boutique Design Awards and the European Hotel Design Awards. Its works are spread all over the world.
Edgewood Tahoe Resort, Hyatt Regency Dubai, InterContinental Hotel London Park Lane, Mandarin Oriental Beijing, Fairmont
Maldives, Sirru Fen Fushi, Le Méridien Zhongshan, Artyzen Sifang Nanjing Recreation Center, Park Hyatt Suzhou and many other
HBA projects of different sizes around the world all have ingenious design styles.
(III) Operation Model of the Company
The Company's operation model was independent undertaking of business, independent organization of design or/and
construction. During the Reporting Period, there were no significant changes in the Company's operation model. The Company was
an excellent decoration enterprise in Jiangsu Province. It attached importance to quality management. In particular, the Company has
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
passed the integrated certification of the ISO 9001 Quality Management System, the ISO 14001 Environmental Management System
and the ISO 45001 Occupational Health and Safety Management System, developed quality control standards, quality control
measures and product quality dispute resolution schemes, and implemented strict quality control and supervision on each process of
design and construction to create an excellent quality management system.
Design Business Flow of the Company
Information acquisition
Design project
establishment
Contract signing
Contract imp lementation
Conceptual design Schemat ic design Design development Construction documents On-site service
Co mplet ion and acceptance
Delivery to owners
Summarization for
improvement
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Construction Business Flow of the Company
Business tracking
Analysis and review
Give up?
Give up
Bidding project
establishment
Unsuccessful
Bidding phase (summarization and review)
Successful (contract
presentation)
Project team format ion
Preliminary p lanning
Quality planning
Design deepening
Schedule planning
Safe and civilized
Cost pre-control
construction
planning
Construction phase
Safe and civilized
Progress control
Quality control
management
Fund control
Data control
Cost control
construction
Personnel
Co mplet ion and delivery
Settlement and submission All-personnel After-sales service
summarization
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
(IV) During the Reporting Period, the Company had no major project quality problems.
II Significant Changes in Major Assets
1. Significant Changes in Major Assets
Major assets Main reason for significant changes
Equity assets No significant change
Fixed assets No significant change
Intangible assets No significant change
Construction in progress No significant change
2. Major Assets Overseas
□ Applicable √ Not applicable
III Core Competitiveness Analysis
The Company is subject to the Guide No. 6 of the Shenzhen Stock Exchange on Industry-Specific Information Disclosure—Listed
Companies Engaged in Construction Decoration.
(1) Brand Strengths
The Company attached great importance to product quality and customer service. Accordingly, it has adopted a business
philosophy where quality was cherished as the life of the Company and customers were put at the center of everything the Company
does. After years of hard work dedicated to its original aspirations, Gold Mantis has formed its own strong brand strengths and
market reputation. The Company has maintained its No. 1 position in "The Enterprises of China's Building Decoration Industry Top
One Hundred" for successive years and has won many honors including the "Luban Prize" 115 times and the "China Construction
Engineering Decoration Award" 438 times accumulatively. It continued to be the enterprise that has received the most of these two
awards in China's construction decoration industry. Furthermore, due to the Company's remarkable achievements and development
results in standardized design, industrialized production, prefabricated construction, integrated decoration, information-based
management and intelligent application, the Company has become one of the first to be recognized as a national "prefabricated
construction industrial base" by the General Office of the Ministry of Housing and Urban-Rural Development of the People's
Republic of China. Gold Mantis has grown to be a benchmark brand in China's construction decoration industry.
(2) Design Strengths
Design is the core of construction decoration. The Company had the world's largest team of interior designers. It has also
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
established a professional design platform as a support system and leveraged its comprehensive service advantages to form
absolutely leading design expertise and professional knowledge in the design of high-end hotel office buildings, cultural and sports
venues, cultural landmarks, hospitals, etc., thereby receiving high praise from the owners. The Company's subsidiary HBA was a
company that focused on the interior design of hotels. It maintained long-term harmonious cooperative relations with international
hotel management groups including Four Seasons, Marriott, Hyatt, InterContinental, Starwood, Hilton, Shangri-La, Kempinski and
Accor, as a provider of interior design services for their brand hotels. HBA's works since its establishment may be found in 80
countries/regions. It has completed more than 1,000 five-star hotel projects at home and abroad. In the future, Gold Mantis will
continue to deal with various market segments through resource integration, strive to achieve industry leadership in all segments,
continuously improve the core competitiveness of Gold Mantis design, and develop itself into China's No.1 decoration design brand.
(3) Supply Chain System Strengths
In front of increasingly fierce competition in the market, in order to maintain the Company's long-term stable growth, in-depth
supply chain integration was an important step to achieve cost reduction and efficiency increase. The Company has been improv ing
its supply chain management mechanism. By optimizing resource integration and refining management modules, it has created a
large-scale engineering management platform for centralized procurement and centralized bidding, which provided strong support for
bidding and cost control, realizing economies of scale while preventing the occurrence of bad problems to t he maximum extent
practicable, based on which the Company had an absolute leading advantage in the industry. On top of that, the Company has
developed a multi-dimensional internally integrated operations system connecting design, construction, procurement and other
processes to optimize products, funds and services through supply chain integration. Furthermore, the Company has also built a
supply chain integration system set with win-win and service as the guiding ideology. Through the design of a competitive quality,
service and price system, the Company might not only better achieve the win-win of customers, partners and itself but also improve
the vitality of its sustainable development.
(4) Management System Strengths
In the face of the huge and complex construction decoration market, insufficient management capabilities have become an
important factor restricting the development of the industry. Gold Mantis witnessed the development of China's construction
decoration industry all the way. In recent years, the Company has comprehensively improved its management level with
information-based, refined and standardized management as the lever: Regarding information-based management, the Company has
created a corporate management cockpit to accurately plan and manage the key time points of project schedules and quality. The
colors of red, yellow and green were used for clear identification. Additionally, the Company cooperated with the project
management center in following up on, coordinating and solving project schedules and quality warnings. In terms of refined
management, the Company had a large marketing platform, a professional design platform, a large -scale engineering management
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
platform and a large risk control platform to accurately manage and share data flow, capital flow and information flow. Through the
bridging of different management modules, decision making has been made more scientific and efficient, and the Company's
business response and execution have been accelerated. These platforms have become a powerful tool for the Company to enhance
its management capabilities. As for standardized management, the Company has established a standardized procedure for complete
business handling from marketing to supply chain and then to construction. The popu larization and application of the standardization
concept have greatly improved the accuracy and timeliness of management as well as reduced management costs and management
loopholes. In the future, the Company will continue to promote the betterment of all management levels in order to achieve the
business objective of reducing costs and increasing efficiency.
(5) Technology Strengths
In recent years, the construction decoration industry has made great progress in construction processes relying on technological
upgrading. Scientific and technological elements have gradually become more pervasive. As an industry leader, the Company has
always led the development of BIM, VR, prefabricated decoration and other key technologies in the industry. Its research and
development of a BIM system adapted to the decoration industry has effectively improved the efficiency and quality of project
management and also enhanced the level of service. The VR technology was used to allow designers and owners to experience the
space and effects as if they were there in person so that the entire process from design to construction is clear and transparent, not
merely greatly increasing efficiency but also reducing costs in marketing, design and construction.
The Company was also actively making business arrangements for the field of prefabricated construction decoration. It was one
of the first to be recognized as a national "prefabricated construction industrial base" by the General Office of the Ministry of
Housing and Urban-Rural Development of the People's Republic of China. The Company actively organized and participated in the
preparation of quality and technical standards related to the construction decoration industry. It was the chief editor of the Technical
Procedures and Regulations for Prefabricated Decoration of Residential Buildings of the China Building Decoration Association and
the Technical Procedures and Regulations for Prefabricated Decoration of Jiangsu Province, and a co-editor of multiple
prefabrication-related standards and specifications. Over the years, Gold Mantis's development of construction technologies and
research in the field of R&D and innovation have become core competitive edges of the Company.
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Part IV Management Discussion and Analysis
I Overview
During the Reporting Period, the Company actively overcame the negative impact of the pandemic by exploring new
opportunities in the crisis and breaking new grounds amid changes. In response to the business needs of the post-pandemic world, the
Company placed its focus on the in-depth development of the EPC, prefabrication and redecoration markets and continuously
optimized its business structure to further expand its market share and leading advantage in the industr y.
1. A new growth curve has been started by riding the wind of industry integration and hoisting the sail of EPC
development.
EPC is an important change in the forms of tendering in the industry. It transcends the original separation between design an d
construction, and solves the problem of project bidding by section, which is the only way for the decoration industry to mature. In
recent years, with the rapid increase in the proportion of the Company's large-scale decoration orders, the EPC model has become an
important direction for the strategic layout of the Company. The Company is making every effort to turn it into a new growth pole of
business. While fully integrating full-industry-chain supporting advantages such as design, construction, landscaping and curtain wall
engineering as well as comprehensive project management strengths, the Company took the lead in the active exploration of its own
advantageous fields including hotels, venues and cultural tourism, vigorously developing EPC projects to start a new growth c urve.
At present, the Company has selected elites from design, marketing, construction and other departments to form an EPC special
business department responsible for the in-depth study of EPC project rules. The trump-card competitiveness of Gold Mantis EPC
projects has been created with top design abilities as a drive, complete full-industry-chain capacities as a support and excellent
project management capabilities as a guarantee. In the process of project design, the Company scientifically planned project progress
through the EPC cloud design platform, effectively solving the connection problem between design a nd later construction.
Construction according to project schedules was thereby ensured. In the procurement process, the Company made accurate
calculations about all kinds of raw materials for projects with the help of the large-scale engineering management platform and the
cost control center to minimize project costs. During construction, owing to the comprehensive application of technologies such as
prefabrication, the standardization and normalization of the construction process were realized, which effe ctively guaranteed the
quality of construction. Step by step, Gold Mantis is currently on its way to a win-win of greater satisfaction from customers, better
profit margin and cash flow for the Company, and higher economic value to society in the EPC field.
For the Company's EPC business, the vast market space presented a historic development opportunity. In order to make EPC
19
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
business an important force for the Company's leap-forward development in the new stage, the Company will continue to pursue
excellence, uphold first-class quality, establish industry standards and set an industry benchmark.
2. Through consolidation and innovation, prefabricated decoration has entered the fast lane of development.
Gold Mantis has adhered to the people-oriented and technology-empowered strategic vision all along in planning and deploying
cutting-edge technologies in the industry. Under the corporate mission of living environment improvement, the Company has been
promoting the innovation and upgrading of industry technologies, so that it was always at the forefront of industrial upgrading.
In the field of prefabricated decoration, after years of prefabrication technology R&D and accumulation, product upgrading an d
iteration have become a constant state for the Company. At present, the Company has built a digital prefabrication system integrating
four dimensions, developed a management system that covers the entire project life cycle in the aspects of standardized design,
industrialized production, part assembly and digital integrated operations, and gained a wealth of project experience. Standardized
design was coordinated by the Company's leading BIM technology to ensure the integration of construction design and decoratio n
design. Buildings, equipment and pipelines did not conflict with decoration so that accurate installation could be realized in the later
stage. Industrialized production unified the design standards, models, specifications and quality of components, fundamentally
solving the pain point of the construction decoration industry that normalization was difficult to achieve. Part assembly relied on the
Company's top talent training system. It could continuously output professional management talent and industrial workers. As a
result, multiple projects in different cities could start simultaneously. Moreover, the Company's ability to undertake projects could be
improved through reproducible flat on-site installation. Digital integrated operations were empowered by the Company's original
prefabrication cloud platform and BIM technology, which enabled fully digital management featuring one-click export of material
lists, one-click export of construction drawings and VR scene application, providing full-industry-chain services covering aesthetics,
functions, personalization and nationwide implementation.
The Company adhered to the dual drives of independent originality and joint R&D. By absorbing top expert resources in the
industry, it focused on the rapid promotion and implementation of prefabricated decoration techn ology. It had a cooperation
agreement with the Center of Science and Technology & Industrialization Development of the Ministry of Housing and Urban-Rural
Development to jointly build an Internet platform for the prefabricated decoration industry and an innovation and exhibition center
for prefabricated decoration products with informatization, digitization and intelligentization as driving forces. Additionally, the
Company and Chengdu City Construction Investment & Management Group (CDCI) will share resources in prefabrication project
undertaking, technology R&D and resource integration according to their cooperation agreement to seize the first-mover advantage.
At present, the Company has become one of the first to be recognized as a national "prefabricated construction industrial base" by the
General Office of the Ministry of Housing and Urban-Rural Development of the People's Republic of China. It was the chief editor of
the Technical Procedures and Regulations for Prefabricated Decoration of Residential Buildings of the China Building Decoration
20
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Association and the Technical Procedures and Regulations for Prefabricated Decoration of Jiangsu Province, and a co-editor of
multiple prefabrication-related standards and specifications. Among them, the Technical Procedures and Regulations for
Prefabricated Decoration of Jiangsu Province has been published. As a leader in the industry, the Company will never abandon the
mission of leading the development trend of the industry. In the future, it will form a leading edge in terms of efficiency, quality and
cost, and make market breakthroughs from point to plane.
3. A trillion level blue ocean of décor-changing redecoration has been opened up
Every building has a need for periodic renewal and renovation during its service life. Therefore, the development of the
construction decoration industry has a certain multiplier effect and the characteristic of market demand sustainability. With China's
rapid development in the field of infrastructure in the past two decades, the current existing stock market is huge. Redecoration has
become a large blue ocean market in the decoration industry.
At present, the Company's redecoration business focuses on large-scale cultural tourism, venues and hotels. After years of
in-depth development in the industry, the Company has accumulated a large number of domestic high-quality customer resources.
Through the formation of a professional redecoration team, combined with its advantages in EPC and prefabrication, the Company
will effectively seize market opportunities. In the future, with the development of economy and society and the further improvement
of the level of urbanization, the decoration demand for renovation and reconstruction will increase continuously, and the Company
will have a broad and sustainable space for business development.
4. Corporate moat and barrier advantages have been continuously improved
While maintaining sustained business development, the Company has been constantly consolidating its core strengths. In
particular, extra efforts have been devoted to platform capabilities and refined management to build a stronger moat.
In respect of platform building, the construction of a large marketing platform, a large-scale engineering management platform
and a design platform has been very effective, giving full play to the barrier advantage of leading the industry. The large marketing
platform has enabled the Company's market shares in accessible markets to maintain long-term growth, and the order structure has
been significantly optimized. Multi-dimensional modular management from the early market analysis and project evaluation, to the
middle resource integration and then to the later payment collection has been realized, forming a strong support for the Company's
business growth. Through centralized bidding, centralized procurement and centralized allocation modules, the large -scale
engineering management platform has achieved the important goals of pooling resources, reducing costs and increasing efficiency.
The management of each construction line has also been deepened, so that the quality, schedule, safety, payment collection and other
dimensions of projects in progress could be supervised in an all-around way. Meanwhile, the management radius has been expanded.
The design platform focuses on brand building. It was intended to enhance the influence of the Company's design brand by
constantly creating quality projects with top influence, and to continuously improve the construction conversion rate of projects with
21
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
such driving force, so as to expand the Company's presence from design business to construction business and comprehensively
increase the Company's market share in the high-quality project market.
When it came to refined management, Gold Mantis has independently researched and developed an ERP system, a BI
management cockpit and a project management command center. It has devised unified administration, finance, supply chain, pro ject
support and other information-based management means to achieve whole-process, all-round and real-time project monitoring and
scientific data-based management process to ensure the on-time and high-quality completion of projects.
II Core Business Analysis
1. Overview
See “I Overview” above.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
2020 2019
As a % of total As a % of total
Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%) (%)
Total 31,243,227,802.04 100% 30,834,654,530.30 100% 1.33%
By operating division
Construction
30,117,163,022.25 96.40% 29,921,660,214.19 97.04% 0.65%
decoration
Manufacturing 954,085,964.93 3.05% 810,671,363.32 2.63% 17.69%
Others 171,978,814.86 0.55% 102,322,952.79 0.33% 68.07%
By product category
Decoration 27,939,943,817.80 89.43% 27,172,714,036.71 88.12% 2.82%
Curtain wall 1,637,205,437.26 5.24% 1,726,158,637.26 5.60% -5.15%
Design 1,501,558,913.30 4.81% 1,823,521,929.28 5.91% -17.66%
Others 164,519,633.68 0.53% 112,259,927.05 0.36% 46.55%
By operating segment
Within Jiangsu
8,501,664,546.85 27.21% 8,582,743,663.41 27.83% -0.94%
Province
Outside Jiangsu 22,741,563,255.19 72.79% 22,251,910,866.89 72.17% 2.20%
22
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Province
(2) Operating Division, Product Category or Operating Segment Contributing over 10% of Operating
Revenue or Operating Profit
√ Applicable □ Not applicable
The Company is subject to the Guide No. 6 of the Shenzhen Stock Exchange on Industry-Specific Information Disclosure—Listed
Companies Engaged in Construction Decoration.
Unit: RMB
YoY change in YoY change in
Gross profit YoY change in
Operating revenue Cost of sales operating revenue gross profit
margin cost of sales (%)
(%) margin (%)
By operating division
Construction
30,117,163,022.25 25,135,776,779.73 16.54% 0.65% 2.96% -1.87%
decoration
By product category
Decoration 27,939,943,817.80 23,605,931,194.94 15.51% 2.82% 4.78% -1.58%
By operating segment
Within Jiangsu 19.94% -0.94% 6.56% -5.64%
8,501,664,546.85 6,806,513,557.13
Province
Outside Jiangsu 15.34% 2.20% 2.53% -0.27%
22,741,563,255.19 19,251,921,586.10
Province
Core business data restated according to the changed methods of measurement that occurred in the Reporting Period:
√ Applicable □ Not applicable
Unit: RMB
YoY change in YoY change in
Gross profit YoY change in
Operating revenue Cost of sales operating revenue gross profit
margin cost of sales (%)
(%) margin (%)
By operating division
By product category
Decoration 27,172,714,036.71 22,528,609,783.38 17.09% 25.47% 26.16% -0.45%
By operating segment
Reasons for the changed methods of measurement:
In order to better reflect the Company’s product categories, the category of Internet-based home decoration has been put into the
decoration category based on the actual conditions of business revenue.
Business categories of the Company:
Unit: RMB
Business category Operating revenue Cost of sales Gross profit margin
23
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Decoration 27,939,943,817.80 23,605,931,194.94 15.51%
Design 1,501,558,913.30 928,786,610.87 38.15%
Indicate whether the Company conducts business through the Internet channel.
√ Yes □ No
Gold Mantis Home conducts business through online channels such as Tmall, JD, as well as the Company’s own WeChat platform,
website, and app.
Indicate whether the Company carried out overseas projects.
√ Yes □ No
Three projects were carried out in Hong Kong by the Company in the Reporting Period, with the contract amounts totaling
RMB25.11 million.
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
□ Yes √ No
(4) Execution Progress of Significant Signed Sales Contracts in the Reporting Period
√ Applicable □ Not applicable
The Company is subject to the Guide No. 6 of the Shenzhen Stock Exchange on Industry-Specific Information Disclosure—Listed
Companies Engaged in Construction Decoration.
Unit: RMB
Cumulative output value Amount of the uncompleted
Project amount
recognized portion
Uncompleted projects 63,043,790,573.00 33,503,941,943.00 29,539,848,630.00
Indicate whether there was any significant uncompleted project.
□ Applicable √ Not applicable
Other information:
□ Applicable √ Not applicable
Unit: RMB
Amount of the
Cumulative costs Cumulative gross
Expected loss Settled amount completed but
incurred profit recognized
unsettled portion
Completed but
21,269,996,533.48 2,723,626,061.33 21,074,283,351.44 4,619,103,145.61
unsettled projects
Indicate whether there was any significant completed but unsettled project.
□ Applicable √ Not applicable
Other information:
□ Applicable √ Not applicable
24
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
(5) Breakdown of Cost of Sales
By operating division
Unit: RMB
2020 2019
Operating As a % of total
Item As a % of total Change (%)
division Cost of sales cost of sales Cost of sales
cost of sales (%)
(%)
Construction
Direct materials 16,223,118,950.89 66.91% 14,969,348,250.06 64.36% 8.38%
decoration
Construction
Direct labor costs 7,291,485,367.27 30.07% 7,299,922,894.97 31.38% -0.12%
decoration
Construction
Expenses 732,184,275.95 3.02% 990,934,818.28 4.26% -26.11%
decoration
Breakdown of cost of sales of core businesses:
Unit: RMB
2020 2019
Business
Cost breakdown As a % of total As a % of total Change (%)
category Cost Cost
cost of sales (%) cost of sales (%)
Direct materials Decoration 16,223,118,950.89 66.91% 14,969,348,250.06 64.36% 8.38%
Design 0.00%
Subtotal 16,223,118,950.89 66.91% 14,969,348,250.06 64.36% 8.38%
Direct labor costs Decoration 6,632,060,386.56 27.35% 6,512,456,949.56 28.00% 1.84%
Design 659,424,980.71 2.72% 787,465,945.41 3.39% -16.26%
Subtotal 7,291,485,367.27 30.07% 7,299,922,894.97 31.38% -0.12%
Expenses Decoration 549,397,367.20 2.27% 729,000,404.55 3.13% -24.64%
Design 182,786,908.75 0.75% 261,934,413.73 1.13% -30.22%
Subtotal 732,184,275.95 3.02% 990,934,818.28 4.26% -26.11%
Subtotal 24,246,788,594.11 100.00% 23,260,205,963.31 100.00% 4.24%
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
√ Yes □ No
1. Disposal of subsidiaries
In the current period, Home Decoration E-commerce, a subsidiary of Gold Mantis Prefabricated Construction Technology,
transferred or de-registered 51 “Gold Mantis Home” subsidiaries, and Gold Mantis Curtain Wall, a subsidiary of the Company,
de-registered Suzhou Miaoyu Construction Materials Co., Ltd. These transferred or de-registered entities were therefore excluded
25
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
from the consolidated financial statements of the current period.
2. Other changes to the consolidation scope
In the current period, Gold Mantis International, a subsidiary of the Company, incorporated Jining Gold Mantis Construction
Engineering Co., Ltd., and Gold Mantis Landscape, a subsidiary of the Company, incorporated Hangzhou Gold Mantis Landscape
Co., Ltd. These newly incorporated entities were added to the consolidated financial statements of the current period.
(7) Significant Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable √ Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 8,769,142,135.42
Total sales to top five customers as a % of total sales of
28.07%
the Reporting Period (%)
Total sales to related parties among top five customers as
0.00%
a % of total sales of the Reporting Period (%)
Top five customers:
Sales revenue contributed for
No. Customer As a % of total sales revenue (%)
the Reporting Period (RMB)
1 Customer A 6,835,504,535.80 21.88%
2 Customer B 1,108,396,916.19 3.55%
3 Customer C 344,326,369.83 1.10%
4 Customer D 262,020,032.31 0.84%
5 Customer E 218,894,281.29 0.70%
Total -- 8,769,142,135.42 28.07%
Other information about major customers:
□ Applicable √ Not applicable
Major suppliers:
Total purchases from top five suppliers (RMB) 587,287,591.63
Total purchases from top five suppliers as a % of total
2.13%
purchases of the Reporting Period (%)
Total purchases from related parties among top five
suppliers as a % of total purchases of the Reporting 0.00%
Period (%)
Top five suppliers:
26
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Purchase in the Reporting
No. Supplier As a % of total purchases (%)
Period (RMB)
1 Supplier A 142,664,603.12 0.52%
2 Supplier B 140,175,325.28 0.51%
3 Supplier C 115,740,281.38 0.42%
4 Supplier D 99,819,589.00 0.36%
5 Supplier E 88,887,792.85 0.32%
Total -- 587,287,591.63 2.13%
Other information about major suppliers:
□ Applicable √ Not applicable
3. Expenses
Unit: RMB
2020 2019 Change (%) Reason for any significant change
Decreases in headcounts of the
Selling expense 375,964,501.30 650,794,185.74 -42.23%
Company and its subsidiaries
Decreases in headcounts of the
Administrative expense 604,846,088.47 1,001,785,370.49 -39.62%
Company and its subsidiaries
Finance costs 131,166,068.90 134,886,779.35 -2.76%
R&D expense 955,782,334.18 879,866,123.50 8.63%
4. R&D Investments
√ Applicable □ Not applicable
The Company further strengthened R&D and innovation work, improved the building of a scientific and technological R&D
system, kept exploring new ideas and new models for R&D, enhanced technology strengths, and transformed them into core
competitiveness. The Company and its subsidiaries Meiruide, Gold Mantis Curtain Wall, Gold Mantis Landscape and Refined
Decoration & Technology have all gained the national "High-Tech Enterprise" recognition. It has also been recognized as a "Key
High and New-Tech Enterprise of National Torch Plan", a "Comprehensive Scientific Research Institute of China's Building
Decoration Industry" and a "BIM Research Center of China's Building Decoration Industry", and has become one of the first in the
industry to be approved as a "postdoctoral research station" and one of the first to be recognized as a national "prefabricated
construction industrial base". As at the end of the Reporting Period, a total of more than 2,000 patents had been obtained (including
371 invention patents).
Particulars about R&D investments:
27
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
2020 2019 Change (%)
Number of R&D personnel 3,137 2,879 8.96%
R&D personnel as a % of total
20.77% 16.69% 4.08%
employees
R&D investments (RMB) 955,782,334.18 879,866,123.50 8.63%
R&D investments as a % of
3.06% 2.85% 0.21%
operating revenue
Capitalized R&D investments
0.00 0.00 0.00%
(RMB)
Capitalized R&D investments
as a % of total R&D 0.00% 0.00% 0.00%
investments
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable √ Not applicable
Reason for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable √ Not applicable
5. Cash Flows
Unit: RMB
Item 2020 2019 Change (%)
Subtotal of cash generated from
28,880,990,351.48 28,661,170,405.68 0.77%
operating activities
Subtotal of cash used in operating
27,103,875,109.32 26,905,950,422.97 0.74%
activities
Net cash generated from/used in
1,777,115,242.16 1,755,219,982.71 1.25%
operating activities
Subtotal of cash generated from
10,856,910,482.46 16,113,138,283.09 -32.62%
investing activities
Subtotal of cash used in investing
11,430,608,541.98 14,744,610,311.98 -22.48%
activities
Net cash generated from/used in
-573,698,059.52 1,368,527,971.11 -141.92%
investing activities
Subtotal of cash generated from
1,173,776,082.77 1,513,451,675.11 -22.44%
financing activities
Subtotal of cash used in financing
1,970,884,916.45 1,662,254,810.52 18.57%
activities
Net cash generated from/used in
-797,108,833.68 -148,803,135.41 -435.68%
financing activities
28
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Net increase in cash and cash
303,149,343.56 2,982,286,978.82 -89.84%
equivalents
Explanation of why any of the data above varies significantly on a year-on-year basis:
√ Applicable □ Not applicable
It was primarily driven by operating, investing and financing activities in the current period.
Explanation of why the net cash generated from/used in operating activities varies significantly from the net profit of the Reporting
Period:
□ Applicable √ Not applicable
III Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
As a % of gross
Amount Primary source/reason Recurrent or not
profit
Returns on wealth management
Return on investment 37,648,383.31 1.39% Recurrent
product investments
Gain/loss on changes in
-723,913.69 -0.03%
fair value
Allowances for doubtful
Asset impairment loss -386,282,077.09 -14.25% Recurrent
accounts
Non-operating income 285,660.49 0.01% Not recurrent
Non-operating expense 4,298,740.33 0.16% Not recurrent
IV Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Indicate whether the Company has adopted the new accounting standards governing revenue and leases since 2020 and restated the
beginning amounts of relevant financial statement line items in the year.
Applicable.
Unit: RMB
31 December 2020 1 January 2020 Reason for any
Change in
As a % of total As a % of total significant
Amount Amount percentage (%)
assets assets change
Monetary assets 6,372,631,845.72 14.16% 6,077,758,993.30 15.32% -1.16%
Accounts
13,517,789,956.57 30.04% 12,019,319,778.79 30.30% -0.26%
receivable
29
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Inventories 53,841,882.04 0.12% 101,344,129.28 0.26% -0.14%
Investment
135,295,908.94 0.30% 78,250,561.70 0.20% 0.10%
property
Long-term equity
225,124.06 0.00% 22,838,423.66 0.06% -0.06%
investments
Fixed assets 892,169,838.74 1.98% 910,175,452.03 2.29% -0.31%
Construction in
41,215,785.57 0.09% 71,905,579.25 0.18% -0.09%
progress
Short-term
714,363,172.85 1.59% 875,691,128.75 2.21% -0.62%
borrowings
Long-term
836,918,353.34 1.86% 838,561,722.30 2.11% -0.25%
borrowings
2. Assets and Liabilities Measured at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Cumulative
Gain/loss on Impairment
fair-value Purchased in
Opening fair-value allowance for Sold in the Other
Item changes the current Closing amount
amount changes in the the current current period changes
recognized in period
current period period
equity
Financial
assets
1.
Held-for-tradi
ng financial
assets 1,694,650,654 11,203,540,71 10,725,380,71 2,172,086,741.
-723,913.69
(exclusive of .74 1.98 1.98 05
derivative
financial
assets)
Other
non-current 444,022,000.0
68,000,000.00 512,022,000.00
financial 0
assets
Total of the 2,138,672,654 11,271,540,71 10,725,380,71 2,684,108,741.
-723,913.69
above .74 1.98 1.98 05
Financial
0.00 0.00 0.00 0.00 0.00 0.00
liabilities
30
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Particulars about other changes:
Indicate whether any significant change occurred to the measurement attributes of the major assets in the Reporting Period.
□ Yes √ No
3. Assets to which the Company’s Rights Were Restricted as at the Period-End
Unit: RMB
Item Closing carrying amount Reason for restriction
Monetary assets 16,564,171.89 Frozen by court of law
Notes receivable 1,300,000.00 Put in pledge for notes issuing
Un-derecognized endorsed or
Notes receivable 1,901,286,639.74
discounted commercial notes
Un-derecognized factored accounts
Accounts receivable 103,990,224.42
receivable
Receivables financing 82,472,805.60 Put in pledge for notes issuing
Total 2,105,613,841.65
V Investments Made
1. Total Investment Amount
√ Applicable □ Not applicable
Total investment amount in the Reporting Total investment amount in last year
Change (%)
Period (RMB) (RMB)
196,000,000.00 245,621,341.56 -20.20%
2. Significant Equity Investments Acquired in the Reporting Period
□ Applicable √ Not applicable
3. Significant Ongoing Non-Equity Investments in the Reporting Period
□ Applicable √ Not applicable
4. Financial Investments
(1) Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
31
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Use of Raised Funds
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Investments
□ Applicable √ Not applicable
VII Principal Subsidiaries and Joint Stock Companies
√ Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the consolidated net profit:
Unit: RMB
Relatio
nship Register
Principal Operating
Name with the ed Total assets Net assets Operating profit Net profit
activities revenue
Compa capital
ny
Constructi RMB13
Subsidi
Meiruide on 7 5,910,074,493.10 1,457,720,687.48 4,649,890,587.53 261,010,405.32 236,084,987.30
ary
decoration million
Manufactu
RMB30
Gold Mantis Subsidi ring of
0 2,550,888,967.47 923,741,660.24 1,640,145,633.00 20,202,390.91 21,565,367.61
Curtain Wall ary decoration
million
materials
RMB10
Gold Mantis Subsidi Landscapi
0 2,287,601,703.71 630,017,100.91 1,061,264,310.72 130,311,674.76 114,277,407.25
Landscape ary ng
million
Singapore Subsidi Constructi USD1 1,248,738,900.23 664,199,378.87 803,827,849.60 99,507,430.49 82,850,227.49
32
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Gold Mantis ary on
decoration
Gold Mantis Constructi
Subsidi HKD10
(International on 405,936,293.10 299,872,919.69 198,471,035.76 61,498,865.91 49,992,522.99
ary million
) decoration
Gold Mantis Decoratio
RMB27
Prefabricated Subsidi n and
0 2,230,155,296.20 256,999,489.05 2,808,722,617.48 28,089,987.06 -13,401,119.37
Construction ary e-commer
million
Technology ce
Subsidiaries acquired or disposed of in the Reporting Period:
√ Applicable □ Not applicable
Effects on the Company’s overall
Name Way of acquisition or disposal
operations and performance
51 “Gold Mantis Home” subsidiaries Transferred or de-registered No significant effects
Suzhou Miaoyu Construction Materials
De-registered No significant effects
Co., Ltd.
Jining Gold Mantis Construction
Incorporated No significant effects
Engineering Co., Ltd.
Hangzhou Gold Mantis Landscape Co.,
Incorporated No significant effects
Ltd.
VIII Structured Entities Controlled by the Company
□ Applicable √ Not applicable
IX Prospects
1. Competitive Landscape and Development Trend of the Industry
In recent years, the market size of the construction decoration industry has grown steadily, policies and standards have prom oted
market development, and market integration has become more frequent; new business models such as EPC have expanded rapidly;
prefabrication, intelligentization, BIM, VR and other technological innovation have continued to deepen. In the future, with the wave
of industrial upgrading, green interior decoration, scientific and technological decoration, and informatization will become important
driving forces for the next growth-cycle round of the construction decoration industry.
In recent years, the decoration industry has presented a variety of new trends and new changes, which are promine ntly
manifested in business types and technological innovation.
Business:
(1) The engineering procurement construction (EPC) of decoration projects has become the mainstream development
33
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
trend
Taking into account the development of the building industry at home and abroad, we will find that the EPC of decoration
projects is an inevitable trend of industry development. For a long time, decoration projects in China have been carried out by general
design contractors and general construction contractors separately, resulting in many problems such as the different project progress
between the two and the poor matching of drawings. However, with the in-depth promotion of the decoration EPC policy, great
improvement will be brought. For one thing, decoration EPC can reduce management difficulty, shorten project duration and cut
building costs. For another, it can help improve construction efficiency and quality, thus creating more economic value for a ll parties.
Later under the continuous guidance of national policies and propelled by market forces, decoration EPC will further become the
mainstream trend of industry development.
(2) Opportunities arise from the construction of key regions across the country
In recent years, China has been stepping up its efforts to promote regional development. It has constantly optimized regional
policies and spatial layout, leveraged the comparative advantages of different regions, and made new progress in national
high-quality development. Successively, China has launched the construction plans for the Guangdong-Hong Kong-Macao Greater
Bay Area, the integrated development of the Yangtze River Delta, the coordinated development of the Beijing-Tianjin-Hebei region
and the Xiong'an New Area to create world-class innovation platforms and growth poles. In the future, a number of benchmark
projects up to international first-class standards will become important development opportunities for the construction decoration
industry.
Technological innovation:
(1) Prefabricated decoration has become an important trend
At present, the building modernization in major developed countries is quite mature. Representative countries such as the United
States, Japan and Singapore have a very high penetration rate in the field of prefabrication. Although China's penetration rate has
increased in recent years, there is still a gap, indicating that the prefabrication penetration of China has huge room for gr owth.
Prefabricated decoration adopts the new forms of standardized design, industrialized production and prefabricated construction,
which has such advantages as good construction quality, high installation accuracy and environmental friendliness. It can solve many
difficulties faced by traditional decoration construction and greatly reduce dependence on manual work. Therefore, it has bright
prospects for future growth.
(2) BIM has become an industry trend
BIM has five major characteristics, namely visualization, coordination, simulation, optimization and plotting. This enables
projects with BIM applications as a carrier to have improved building quality, shortened project duration and reduced construction
costs. As the construction decoration industry imposes higher visualization requirements for design, cost estimation, construction,
34
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
maintenance and other processes as well as for all types of information, BIM has become a technological symbol of the construction
industry. It has been more and more widely used in many large and complex construction projects. Now it is a technologica l direction
of the future transformation of China's construction decoration industry.
2. Development Strategy of the Company
Opportunities and challenges coexist in the current industry. On the one hand, there are still many uncertainties in economic
resurgence. The road to industry demand recovery is tortuous. On the other hand, under the promotion by national policies and the
improvement of standardization, many new business forms and new technologies have emerged in the industry. The development of
EPC and prefabrication is in full swing. Therefore, in order to maintain its leadership in the fierce market competition, the Company
must continue to seek vitality from technological innovation and impetus from industrial upgrading. In 2021, the Company will
advance its different operations in accordance with the established strategy, focusing on the EPC, prefabrication, local and
redecoration markets, to create new core competitiveness for Gold Mantis.
(1) EPC: The Company will leverage its full-industry-chain supporting advantages such as design, construction, landscaping and
curtain wall engineering as well as comprehensive project management strengths, in addition to integrating industry resources .
Through the integration of design and construction, the Company will also increase the proportion of large-scale high-quality
projects, create barriers to competitors, and further improve its market share and core profit margin.
(2) Prefabricated decoration: The Company will integrate internal and external resources, adhering to both independent
originality and joint R&D. By ensuring close cooperation and resource sharing with domestic leading enterprises on project
undertaking, technology R&D and resource integration, the Company will promote the rapid promotion and implementation of
prefabricated decoration projects in order to form the first-mover advantage and the scale advantage.
(3) Local markets: The Company will create local landmark projects by strengthening cooperation with local governments, build
trust and stickiness with local governments and large enterprises, and promote mutual benefit and win-win results. Moreover, the
Company will continue to rapidly expand its business from point to plane and from plane to solid, in order to achieve the str ategic
goal of developing local markets in depth and further promote the Company to the whole country.
(4) Redecoration: The Company's redecoration business will focus on large-scale cultural tourism, venues and hotels. The
Company will fully mobilize a large number of domestic high-quality customer resources and use its advantages in EPC and
prefabrication to effectively seize market opportunities.
3. Future Planning
(1) Platform construction will be accelerated to facilitate stable and continuous high-quality development.
The Company will continuously improve and enrich the management radius of the large marketing platform, the professional
design platform and the large-scale engineering management platform, raise its refined management level in marketing, design,
35
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
project management, audit and payment collection and other business dimensions, and promote its firm move towards high-quality
development.
(2) The joint operation system will be completed, and the Company's long-term growth potential will be gradually unlocked.
The Company will build a business operations system where marketing, bidding, design, construction, functions and other
departments support and cooperate with each other so that different line departments will perform their respective duties and better
focus on such aspects as construction quality, schedule, customer satisfaction and payment collection, thereby systematically and
comprehensively enabling the Company's reform measures to truly play a role and achieving the Company's established goals.
X Communications with the Investment Community such as Researches, Inquiries and
Interviews
1. During the Reporting Period
√ Applicable □ Not applicable
Type of Main discussions
Way of
the Communication and materials
Date Place commu Index to the relevant information
communic party provided by the
nication
ation party Company
Introduced the
Guosheng Asset
Company Company’s Log Sheet of Investor Relations
By Management,
27 April 2020 Conference Institution operations and Activities on 27 April 2020 on
phone CICC, Fullgoal
Room development http://irm.cninfo.com.cn/
Fund, etc.
strategy
Introduced the
Company Company’s Log Sheet of Investor Relations
8 May 2020 Conference Other Other All investors operations and Activities on 8 May 2020 on
Room development http://irm.cninfo.com.cn/
strategy
Guosheng Asset Introduced the
Company Management, Company’s Log Sheet of Investor Relations
By
1 September 2020 Conference Institution Huatai Securities, operations and Activities on 1 September 2020 on
phone
Room Industrial development http://irm.cninfo.com.cn/
Securities, etc. strategy
Guosheng Asset Introduced the
Company Management, Company’s Log Sheet of Investor Relations
By
2 November 2020 Conference Institution Huatai Securities, operations and Activities on 2 November 2020 on
phone
Room Industrial development http://irm.cninfo.com.cn/
Securities, etc. strategy
36
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Part V Significant Events
I Profit Distributions to Ordinary Shareholders in the Form of Cash and/or Shares
The profit distribution policy for ordinary shareholders, especially the formulation, implementation and amendments to the ca sh
dividend policy, in the Reporting Period:
√ Applicable □ Not applicable
The Company has been implementing continual and consistent profit distribution policies in the current stage. With an aim to
concurrently guarantee the overall interests of the entire shareholders and the Company's sustainable development, the Compan y
gave consideration to factors such as its operation status, profit scale and financial needs for project investment, and has formu lated
sustainable, consistent and scientific distribution policies. Equity distribution was carried out through cash dividends, as well as
bonus issues from capital reserves and profit to offer reasonable investment returns to investors and provide them with opportunities
to share the Company's achievement in economic growth. Such practices were in compliance with relevant laws, regu lations and
normative documents issued by the China Securities Regulatory Commission and the Shenzhen Stock Exchange.
Special statement about the cash dividend policy
In compliance with the Company’s Articles of Association and
Yes
resolution of general meeting
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and mechanism Yes
Independent directors faithfully performed their duties and
Yes
played their due role
Non-controlling shareholders are able to fully express their
opinion and desire and their legal rights and interests are fully Yes
protected
In case of adjusting or altering the cash dividend policy, the
conditions and procedures involved are in compliance with Not applicable
applicable regulations and transparent
The profit distribution plans for ordinary shareholders, either in the form of cash or shares, in the past three years (including the
Reporting Period) are summarized as follows:
The final dividend plan for 2020: Based on the total share capital of 2,683,358,689 shares, a cash dividend of RMB2 (tax
inclusive) per 10 shares is planned to be distributed to all the shareholders, with the total amount to be distributed being
RMB536,671,737.80.
The final dividend plan for 2019: Based on the total share capital of 2,684,408,689 shares, a cash dividend of RMB2 (tax
37
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
inclusive) per 10 shares is planned to be distributed to all the shareholders, with the total amount to be distributed being
RMB536,881,737.80.
The final dividend plan for 2018: Based on the total share capital of 2,676,408,689 shares, a cash dividend of RMB2 (tax
inclusive) per 10 shares is planned to be distributed to all the shareholders, with the total amount to be distributed being
RMB535,281,737.80.
Cash dividends for ordinary shareholders in the past three years (including the Reporting Period):
Unit: RMB
Net profit
attributable to Cash
Total cash
ordinary dividends in
Cash dividends dividends
shareholders of other forms C as a % of B A+C as a % of
Year (tax inclusive) A as a % of B (%) (including those
the listed company (like share (%) B (%)
(A) in other forms)
in consolidated repurchase)
(A+C)
statements for the (C)
year (B)
2020 536,671,737.80 2,373,915,319.52 22.61% 0.00 0.00% 536,671,737.80 22.61%
2019 536,881,737.80 2,349,395,605.96 22.85% 0.00 0.00% 536,881,737.80 22.85%
2018 535,281,737.80 2,123,411,594.37 25.21% 0.00 0.00% 535,281,737.80 25.21%
Indicate whether the Company fails to put forward a cash dividend proposal for the ordinary share holders despite the facts that the
Company has made profits in the Reporting Period and the profits of the Company as the parent distributable to the ordinary
shareholders are positive.
□ Applicable √ Not applicable
II Final Dividend Plan for the Reporting Period
√ Applicable □ Not applicable
Bonus issue from profit (share/10 shares) 0
Cash dividend/10 shares (RMB) (tax inclusive) 2
Share base (share) 2,683,358,689
Cash dividends (RMB) (tax inclusive) 536,671,737.80
Cash dividends in other forms (suc h as share
0.00
repurchase) (RMB)
Total cash dividends (including those in other
536,671,737.80
forms) (RMB)
Distributable profit (RMB) 9,716,609,593.34
Total cash dividends (including those in other
100%
forms) as a % of the total profit to be distributed
38
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Cash dividend policy
Other
Cash and/or stock dividend plan in detail
Specific conditions and proportion of cash dividends as stipulated in the Articles of Association: Except for special circumstances,
the Company shall distribute dividends in cash if it is profitable in the year and the accumulative retained earnings are positive. The
annual profit distributed in cash shall not be less than 10% of the profit available for distribution to shareholders achieve d in the
year, and the accumulated profit distributed in cash in the last three years shall not be less than 30% of the average annual
distributable profit achieved in the last three years. If the Company repurchases shares by means of offer or call auction in
consideration of cash, it is deemed as cash dividends and will be included in the relevant percentage of cash dividends for
calculation. The special circumstances mentioned in the foregoing paragraph include: 1. War, natural disasters and other forc e
majeure have a significant adverse impact on the Company's production and operations; 2. Due to an international and domestic
macroeconomic impact, the industry's earnings decline significantly, resulting in a decline of more than 50% in the Company's net
profit from the same period of the previous year; 3. Due to the national macroeconomic situations, policy control and other reasons,
the Company's net operating cash flow falls by more than 50% from the same period of the previous year or the Company's net
operating cash flow is negative; 4. As the Company intends to acquire assets, make foreign investments, purchase significant fixed
assets or tangible assets in the next twelve months with its own funds, the accumulative expenditure reaches or exceeds 10% of its
audited total assets of the latest period.
The final dividend plan for 2020: Based on the total share capital of 2,683,358,689 shares [note], a cash dividend of RMB2 (tax
inclusive) per 10 shares is planned to be distributed to all the shareholders, with the total amount to be distributed being
RMB536,671,737.8. And there will be no bonus issue from either profit or capital reserves. Note: In case of any changes in the total
share capital or shares in the share repurchase account prior to the date of record for the profit distribution, t he profit distribution
will be carried out under the principle of an unchanged cash dividend payout ratio.
The final dividend plan is in compliance with the Company’s Articles of Association and is subject to final approval by the General
Meeting before implementation.
III Fulfillment of Commitme nts
1. Commitments of the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as well
as the Company Itself and other Entities Fulfilled in the Reporting Period or Ongoing at the Period-end
√ Applicable □ Not applicable
Term of
Type of Details of Date of commitment Fulfill
Commitment Promisor commitme
commitment commitment making ment
nt
Commitments made in share
reforms
Commitments made in
acquisition reports or interests
change reports
Commitments made in asset
restructurings
39
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Commitments
Suzhou Gold Mantis related to
Strictly
Enterprise (Group) horizontal Commitment
abiding
Commitments made in IPO or Co., Ltd., Golden competition, about avoiding
25 October 2006 Long-term by the
refinancing Feather related-party horizontal
commit
Corporation, and transactions, and competition
ment
Zhu Xingliang capital
occupation
Equity incentive commitments
Commitment
about not
Commitment
Suzhou Gold Mantis reducing
related to not
Enterprise (Group) shareholdings in
reducing
Other commitments made to Co., Ltd., Golden the Company Six Fulfille
shareholdings in 20 November 2019
non-controlling shareholders Feather during the months d
the Company
Corporation, and statutory periods
during the
Zhu Xingliang upon
statutory periods
shareholding
increases
Fulfilled on time or not Yes
Specific reasons for failing to
fulfill commitments on time and Not applicable
plans for the next step
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still
within the forecast period, explain why the forecast has been reached for the Reporting Period.
□ Applicable √ Not applicable
IV Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
V Explanations Given by the Board of Directors, the Supervisory Committee and the
Independent Directors (if any) Regarding the Independe nt Auditor's “Modified Opinion” on
the Financial Statements of the Reporting Period
□ Applicable √ Not applicable
40
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
VI YoY Changes to Accounting Policies, Estimates and Methods
√ Applicable □ Not applicable
On 23 April 2020, the Company convened the 5th Meeting of the 6th Board of Directors and the 5th Meeting of the 6th
Supervisory Committee, at which the Proposal on Changing Accounting Policies According to the Regulations of the Ministry of
Finance was reviewed and approved.
1. According to the Accounting Standard No. 14 for Business Enterprises- Revenue revised and issued by the Ministry of
Finance, the main changes were as follows:
In the revised standards, the two existing standards on revenue and construction contracts were incorporated int o a unified
revenue recognition model; the transfer of risk premium was replaced with the transfer of control as the judgment criterion f or the
time of revenue recognition; clearer guidelines were provided on the accounting processing of contracts containing multiple
transaction arrangements; and clear provisions were provided on the revenue recognition and measurement of certain specific
transactions (or events).
2. According to the Accounting Standard No. 7 for Business Enterprises- Exchange of Non-monetary Assets (Revision 2019)
issued by the Ministry of Finance, the main changes were as follows:
In the revised standards, the scope of application of the standards on exchange of non-monetary assets was refined; the
recognition/derecognition time for the exchange of received assets and surrendered assets was clarified; the measurement principles
for the exchange of non-monetary assets measured at fair value when multiple assets were received or surrendered at the same time
were revised; and the disclosure of whether the exchange of non-monetary assets had commercial substance and the reasons was
required.
3. According to the Accounting Standard No. 12 for Business Enterprises- Debt Restructuring (Revision 2019) issued by the
Ministry of Finance, the main changes are as follows:
The definition of "debt restructuring" was revised to cancel a judgment on whether the debtor is in financial difficulty or
whether the creditor has made concessions. Therefore, the scope of application was expanded. It was clarified that restructured debts
and liabilities were no longer distinguished from other financial instruments, and that the recognition and measurement princ iples of
restructured debts and liabilities were consistent with those of financial instruments.
VII Retrospective Restatements due to Correction of Material Accounting Errors in the
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
41
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
VIII YoY Changes to the Scope of the Consolidated Financial Statements
√ Applicable □ Not applicable
1. Disposal of subsidiaries
In the current period, Home Decoration E-commerce, a subsidiary of Gold Mantis Prefabricated Construction Technology,
transferred or de-registered 51 “Gold Mantis Home” subsidiaries, and Gold Mantis Curtain Wall, a subsidiary of the Company,
de-registered Suzhou Miaoyu Construction Materials Co., Ltd. These transferred or de-registered entities were therefore excluded
from the consolidated financial statements of the current period.
2. Other changes to the consolidation scope
In the current period, Gold Mantis International, a subsidiary of the Company, incorporated Jining Gold Mantis Construction
Engineering Co., Ltd., and Gold Mantis Landscape, a subsidiary of the Company, incorporated Hangzhou Gold Mantis Landscape
Co., Ltd. These newly incorporated entities were added to the consolidated financial statements of the current period.
IX Engagement and Disengagement of Inde pendent Auditor
Current independent auditor:
Name of the domestic independent auditor RSM China
The Company’s payment to the domestic independent auditor
235
(RMB’0,000)
How many consecutive years the domestic independent auditor
18
has provided audit service for the Company
Names of the certified public accountants from the domestic
Song Wen, Hong Zhiguo, and Long Bing
independent auditor writing signatures on the auditor’s report
How many consecutive years the certified public accountants
Four years, five years, and three years, respectively
have provided audit service for the Company
Indicate whether the independent auditor was changed for the Reporting Period.
□ Yes √ No
Independent auditor appointed for the audit of internal control, as well as financial advisor or sponsor appointed:
□ Applicable √ Not applicable
X Possibility of Delisting after the Disclosure of this Report
□ Applicable √ Not applicable
XI Insolvency and Reorganization
□ Applicable √ Not applicable
No such cases in the Reporting Period.
42
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
XII Significant Legal Matters
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIII Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIV Credit Standings of the Company as well as Its Controlling Shareholder and Actual
Controller
□ Applicable √ Not applicable
XV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures
for Employees
√ Applicable □ Not applicable
1. On 29 October 2018, the Company convened the 12th Extraordinary Meeting of the 5th Board of Directors and the 4th
Extraordinary Meeting of the 5th Supervisory Committee, at which the Proposal on the Company's 2018 Restricted Share Incentive
Plan (Draft) and Its Summary and other proposals were reviewed and approved. Independent directors and the Supervisory
Committee of the Company put forward opinions on whether this incentive plan would be conducive to the Company's sustainable
development and whether it might significantly damage the interests of the Company and its entire shareholders. Details were
published on the Cninfo (http://www.cninfo.com.cn) on 30 October 2018 for the inquiry of investors.
2. From 30 October 2018 to 12 November 2018, the Company published the list of awardees for this incent ive plan on the
Cninfo and its official website. During this period, the Supervisory Committee of the Company did not receive any objection. As the
publicity period expired, the Supervisory Committee convened the 5th Extraordinary Meeting of the 5th Superv isory Committee on
13 November 2018 to review the list of awardees in the first incentive grant and provide information on the publicity status.
3. On 20 November 2018, the Company convened the 1st Extraordinary General Meeting of 2018, at which the Proposal on the
Company's 2018 Restricted Share Incentive Plan (Draft) and Its Summary and other proposals were reviewed and approved. Besides,
self-inspection of stock trading of incentive plan insiders was conducted. There was no finding where the insiders made use of inside
information to trade the Company's stocks. Details were published on the Cninfo (http://www.cninfo.com.cn) on 21 November 201 8
for the inquiry of investors.
4. On 17 December 2018, the Company convened the 13th Extraordinary Meeting of the 5th Board of Directors and the 6th
Extraordinary Meeting of the 5th Supervisory Committee, at which the Proposal on the First Grant of Restricted Stocks to Awardees
43
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
was reviewed and approved. It was agreed that the Company granted 33.10 million restricted shares to 32 qualified awardees on 17
December 2018. Independent directors and the Supervisory Committee of the Company clearly consented to this matter. The
Supervisory Committee verified the list of awardees for this grant of restricted shares.
5. On 11 January 2019, the Company completed the registration of the first grant of restricted shares for the 2018 restricted
share incentive plan, granted 33.10 million restricted shares to 32 qualified awardees, and disclosed the Announcement on the
Successful First Grant of the 2018 Restricted Stock Incentive Plan. The listing date of restricted shares in the first grant was 15
January 2019.
6. On 15 November 2019, the Company convened the 1st Extraordinary Meeting of the 6th Board of Directors and the 1st
Extraordinary Meeting of the 6th Supervisory Committee, at which the Proposal on Granting Reserved Restricted Stocks to Awardees
was reviewed and approved. It was agreed that the Company granted 8 million reserved restricted shares to 14 awardees on 15
November 2019, the date determined at the meetings for the grant of reserved restricted shares. Independent directors and the
Supervisory Committee of the Company clearly consented to this matter. The Supervisory Committee verified the list of awardee s for
this grant of restricted shares.
7. On 22 January 2020, the Company completed the registration of the grant of reserved restricted shares for the 2018 restric ted
share incentive plan, granted 8 million restricted shares to 14 awardees, and disclosed the Announcement on the Successful Grant of
the Reserved Portion for the 2018 Restricted Share Incentive Plan. The listing date of these reserved restricted shares was 23 January
2020.
8. On 23 April 2020, the Company convened the 5th Meeting of the 6th Board of Directors and the 5th Meeting of the 6th
Supervisory Committee, at which the Proposal on the Achievement of Lifting the Restriction Conditions in the First Lifting
Restriction Period for the First Grant Portion of the 2018 Restricted Share Incentive Plan was reviewed and approved. It was deemed
that the first restriction period of restricted shares in the first grant of this incentive plan had expired, and that the conditions for
lifting restrictions such as the business performance indicator had been satisfied to meet the conditions for lifting restrictions in the
first listing restriction period as mentioned in the Company's 2018 Restricted Share Incentive Plan. Therefore, it was agreed that the
Company processed matters related to restriction lifting for qualified awardees according to the stipulations in the incentive plan after
the 2019 Annual Report of the Company was reviewed and approved at the 2019 Annual General Meeting. At the same time, the
Proposal on Repurchase and Cancellation of Some Restricted Stocks was reviewed and approved. Considering that Yang Peng and
Xie Jinjun, the original awardees, had left the Company for personal reasons, they no longer satisfied the incentive conditions
according to relevant provisions in the Company's 2018 Restricted Share Incentive Plan. The Board of Directors of the Company
agreed that the Company repurchased and canceled 1.05 million restricted shares which were granted to the above -mentioned persons
with trading restrictions to be lifted. The repurchase price was RMB3.99/share. Independent directors and the Supervisory
44
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Committee of the Company clearly consented to this matter.
9. On 15 May 2020, the Company convened the 2019 Annual General Meeting, at which the 2019 Annual Report of the
Company as well as Its Abstract, the Proposal on Repurchase and Cancellation of Some Restricted Stocks and other proposals were
reviewed and approved. Details were published on the Cninfo (http://www.cninfo.com.cn) on 16 May 2020 for the inquiry of
investors.
10. On April June 2020, the Company lifted the trading restriction on restricted shares of qualified awardees and disclosed the
Prompt Announcement on the Listing and Trading of Stocks with Restriction Conditions Lifted in the First Lifting Restriction Period
for the First Grant Portion of the 2018 Restricted Share Incentive P lan (2020-032). The date of listing and trading of these stocks
with restriction conditions lifted was 9 June 2020.
11. On 13 July 2020, upon the review and confirmation of Shenzhen Branch of China Securities Depository and Clearing
Corporation Limited, the Company completed the repurchase and cancellation of some restricted shares, after which the total s hare
capital of the Company changed to 2,683,358,689 shares. The Announcement on Successful Repurchase and Cancellation of Some
Restricted Stocks (2020-033) was disclosed.
12. On 15 January 2021, the Proposal on the Achievement of Lifting the Restriction Conditions in the First Lifting Restriction
Period for the First Grant Portion of the 2018 Restricted Share Incentive Plan was deliberated and approved at the 2nd Extraordinary
Meeting of the 6th Board of Directors and the 2nd Extraordinary Meeting of the 6th Supervisory Committee. It was believed that the
lifting restriction conditions for the restricted shares reserved under the Company's 2018 restricted share incentive plan in the first
lifting restriction period were achieved. It was therefore agreed that the Company would handle matters related to lifting restrictions
for eligible awardees in accordance with the relevant provisions of the incentive plan after the expiration of the first restriction period
of reserved restricted shares. Independent directors and the Supervisory Committee of the Company clearly consented to this matter.
13. On 25 January 2021, the Company lifted the trading restriction on restricted shares of qualified awardees and disclosed the
Prompt Announcement on the Listing and Trading of Stocks with Restriction Conditions Lifted in the First Lifting Restriction Period
for the Reserved Portion of the 2018 Restricted Share Incentive P lan (2021-007). The date of listing and trading of these stocks with
restriction conditions lifted was 27 January 2021.
XVI Significant Related-Party Transactions
1. Continuing Related-Party Transactions
√ Applicable □ Not applicable
Related Relation Type of Contents Pricing Transact Total As a % Approv Over Method Obtaina Disclos Index
party ship transacti of principl ion value of total ed the of ble ure date to
45
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
with the on transacti e price (RMB’0 value of transacti approve settleme market disclose
Compan on ,000) all on line d line or nt price for d
y transacti (RMB’0 not transacti informa
ons of ,000) ons of tion
the the
same same
nature nature
Purchasi
ng
Suzhou The goods
Softwar
Gold parent or
e and
Mantis compan receivin Market 25 April 2020-0
technica 138.14 138.14 138.14 Not In cash 138.14
3D y’s g price 2020 17
l
Software subsidia services
services
Co., Ltd. ry from the
related
party
Purchasi
ng
Suzhou
The goods
Huizhu
parent or
Informati Technica
compan receivin Market 25 April 2020-0
on l 27.48 27.48 27.48 Not In cash 27.48
y’s g price 2020 17
Technolo services
sub-sub services
gy Co.,
sidiary from the
Ltd.
related
party
Purchasi
ng
Suzhou The goods
Gold parent or
Consulti
Mantis compan receivin Market
ng 28.82 28.82 28.82 Not In cash 28.82
Investme y’s g price
services
nt Co., subsidia services
Ltd. ry from the
related
party
Purchasi
Delos Minorit
ng
(Suzhou) y-owne
goods Material Market 25 April 2020-0
Well d by the 162.14 162.14 162.14 Not In cash 162.14
or s price 2020 17
Technolo Compan
receivin
gy Ltd. y
g
46
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
services
from the
related
party
Purchasi
ng
The goods
Suzhou
parent or Equipm
BLM
compan receivin ent and Market
Technolo 92.94 92.94 92.94 Not In cash 92.94
y’s g material price
gy Co.,
sub-sub services s
Ltd.
sidiary from the
related
party
Purchasi
ng
Suzhou The goods
Design
LJT parent or
charges
Intelligent compan receivin Market 25 April 2020-0
and 754.80 754.8 754.8 Not In cash 754.80
Technolo y’s g price 2020 17
material
gy Co., subsidia services
s
Ltd. ry from the
related
party
Selling
goods Decorati
Suzhou The
or on and
Jinhu parent 2018-0
renderin curtain
Property compan Market 5,296.9 5,296.9 5,296.9 5,296.9 23 May 15、
g wall Not In cash
Develop y’s price 6 6 6 6 2018 2018-0
services engineer
ment Co., subsidia 25
to the ing, and
Ltd. ry
related design
party
Selling
goods
Suzhou The
or
Jinbai parent Decorati 2018-0
renderin
Hotel compan on Market 1,544.0 1,544.0 1,544.0 1,544.0 23 May 15、
g Not In cash
Managem y’s engineer price 7 7 7 7 2018 2018-0
services
ent Co., sub-sub ing 25
to the
Ltd. sidiary
related
party
Zhejiang Formerl Selling Decorati Market 112.55 112.55 112.55 Not In cash 112.55 25 April 2020-0
47
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Tianyu y goods on price 2020 17
Commerc minority or engineer
ial -owned renderin ing, and
Operation by the g design
Managem Compan services
ent Co., y to the
Ltd. related
party
Selling
goods
Suzhou The Decorati
or
LJT parent on
renderin
Intelligent compan engineer Market 25 April 2020-0
g -48.21 -48.21 -48.21 Not In cash -48.21
Technolo y’s ing, and price 2020 17
services
gy Co., subsidia equipme
to the
Ltd. ry nt
related
party
Selling
goods
Delos Minorit or
Decorati
(Suzhou) y-owne renderin
on Market 25 April 2020-0
Well d by the g 11.01 11.01 11.01 Not In cash 11.01
engineer price 2020 17
Technolo Compan services
ing
gy Ltd. y to the
related
party
Selling
Suzhou goods
Minorit
Gold or Landsca
y-owne
Mantis renderin ping,
d by the Market
Culture g and 44.65 44.65 44.65 Not In cash 44.65
parent price
Develop services property
compan
ment Co., to the services
y
Ltd. related
party
8,165.3 8,165.3
Total -- -- -- -- -- -- -- --
5 5
Large-amount sales return in detail N/A
Give the actual situation in the
Reporting Period (if any) where an The total value of continuing transactions between the Company and related parties LJT,
estimate had been made for the total Delos (Suzhou), Zhejiang Tianyu, 3D Software, and Huizhu Technology stood at
value of continuing related-party RMB11.5791 million in the Reporting Period.
transactions by type to occur in the
48
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Reporting Period
Reason for any significant difference
between the transaction price and the N/A
market reference price (if applicable)
Notes:
1. The Company convened the 2017 Annual General Meeting on 22 May 2018, at which the Proposal on the Proposed Signing
of Decoration Engineering Contracts and Related-Party Transactions was reviewed and approved. It was agreed that the Company
and its subsidiaries within the scope of consolidated statements would sign several contracts of architectural decoration des ign and
construction with Suzhou Jinhu Real Estate Development Co., Lt d. according to the needs of business development, and provide
design and construction services such as hotel decoration, apartment decoration, curtain wall and landscape design and constr uction
for Park Hyatt Suzhou. The total amount shall not exceed RMB540,000,000. For details, please refer to the Company's
announcements numbered 2018-015 and 2018-025. According to the authorization of the 2017 Annual General Meeting and the
contracts signed between the Company and Suzhou Jinhu Real Estate Development Co. , Ltd., in 2020, the Company (including its
subsidiaries) carried out related-party transactions of decoration services with Suzhou Jinhu Real Estate Development Co., Ltd.
(including its subsidiaries) for the Park Hyatt Suzhou Project with an amount of RMB68,410,300.
2. In 2020, the Company carried out related-party transactions with Suzhou Gold Mantis Investment Co., Ltd., Suzhou Bro&M
Technology Co., Ltd. and Suzhou Gold Mantis Culture Development Co., Ltd with a total amount of RMB1,664,100, which fell
within the permission scope of the General Manager. These transactions had been reviewed and approved by the General Manager in
accordance with the Company's Related-Party Transaction Policy.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related-Party Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
49
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
5. Other Significant Related-Party Transactions
√ Applicable □ Not applicable
(1) Leases with Related Parties
① In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Mantis Enterprise
(Group) Co., Ltd., Gold Mantis Group leased an office building area of 272.12 square meters from the Company, with an annual
rental of RMB189,000. The Company collected actual rental of RMB189,000 in 2020 and RMB189,000 in 2019.
② In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Mantis Investment Co.,
Ltd., Suzhou Gold Mantis Investment Co., Ltd. leased an office building area of 100 square meters from the Company, with an
annual rental of RMB42,000. The Company collected actual rental of RMB42,000 in 2020 and RMB42,000 in 2019.
③ In accordance with the Property Lease Agreement signed between the Company and Suzhou Bro&M Technology Co., Ltd.,
Suzhou Bro&M Technology Co., Ltd. leased an office building area of 25 square meters from the Company, with an annual rental of
RMB10,500. The Company collected actual rental of RMB10,500 in 2020 and RMB10,500 in 2019.
④ In accordance with the Property Lease Agreement signed between the Company and Suzhou Jinhu Real Estate Development
Co. Ltd., Suzhou Jinhu Real Estate Development Co. Ltd. leased an office building area of 100 square meters from the Company,
with an annual rental of RMB42,000. The Company collected actual rental of RMB42,000 in 2020 and RMB42,000 in 2019.
⑤ In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Cloud Information
Technology Co., Ltd., Suzhou Gold Cloud Information Technology Co., Ltd. leased an office building area of 25 square meters from
the Company, with an annual rental of RMB10,500. The Company collected actual rental of RMB10,500 in 2020 and RMB10,500 in
2019.
⑥ In accordance with the Property Lease Agreement signed between the Company and Jiangsu Dongyi Software Technology
Co., Ltd., Jiangsu Dongyi Software Technology Co., Ltd. leased an office building area of 25 square meters from the Company, with
an annual rental of RMB10,500. The Company collected actual rental of RMB10,500 in 2020 and RMB10,500 in 2019.
⑦ In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Mantis 3D Software Co.,
Ltd., Suzhou Gold Mantis 3D Software Co., Ltd. leased an office building area of 200 square meters from the Company, with an
annual rental of RMB84,000. The lease agreement was signed in January 2017. The Company collected actual rental of RMB84,000
in 2020 and RMB84,000 in 2019.
⑧ In accordance with the Property Lease Agreement signed between the Company and Suzhou Huizhu Information
Technology Co., Ltd., Suzhou Huizhu Information Technology Co., Ltd. leased an office building area of 200 square meters from the
Company, with an annual rental of RMB84,000. The lease agreement was signed in January 2017. The Company collected actual
rental of RMB84,000 in 2020 and RMB84,000 in 2019.
50
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
⑨ In accordance with the Property Lease Agreement signed between the Company and Agile Intelligent Technology Co., Ltd.,
Agile Intelligent Technology Co., Ltd. leased an office building area of 5 square meters and an office building area of 2,557.39
square meters from the Company, with an annual rental of RMB4,500 and RMB1,074,100, respectively. The Company collected
actual annual rental of RMB4,500 and RMB1,074,100 in 2020, and actual annual rental of RMB4,500 and RMB1,074,100 in 2019.
⑩ In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Mantis Yihe Technology
Co., Ltd., Suzhou Gold Mantis Yihe Technology Co., Ltd. leased an office building area of 500 square meters from the Company,
with an annual rental of RMB210,000. The Company collected actual rental of RMB210,000 in 2020 and RMB210,000 in 2019.
In accordance with the Property Lease Agreement signed between the Company and Suzhou Jinnuo Commercial Factoring
Co., Ltd., Suzhou Jinnuo Commercial Factoring Co., Ltd. leased an office building area of 30 square meters from the Company, with
an annual rental of RMB12,600. The Company collected actual rental of RMB12,600 in 2020 and RMB12,600 in 2019.
In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Mantis Charity
Foundation, Suzhou Gold Mantis Charity Foundation leased an office building area of 25 square meters from the Company, with a n
annual rental of RMB10,500. The lease agreement was signed in January 2017. The Company collected actual rental of RMB10,500
in 2020 and RMB10,500 in 2019.
In accordance with the Property Lease Agreement signed between the subsidiary Meiruide and Suzhou Nuojin Investment
Co., Ltd., Suzhou Nuojin Investment Co., Ltd. leased an office building area of 50 square meters from Meiruide, with an annua l
rental of RMB21,000. The lease agreement was signed in January 2017. The Company collected actual rental of RMB21,000 in 2020
and RMB21,000 in 2019.
In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Gain Investment Co.,
Ltd., Suzhou Gold Gain Investment Co., Ltd. leased a factory building area of 50 square meters from the Company, with an annual
rental of RMB3,800. The Company collected actual rental of RMB3,800 in 2020 and RMB3,800 in 2019.
In accordance with the Property Lease Agreement signed between the Company and Suzhou Jinbo Hotel Management Co.,
Ltd., Suzhou Jinbo Hotel Management Co., Ltd. leased an office building area of 20 square meters from the Company, with an an nual
rental of RMB8,400. The lease agreement was signed in March 2019 and expired in Apr il 2020. The Company collected actual rental
of RMB2,800 in 2020 and RMB7,000 in 2019.
In accordance with the Property Lease Agreement signed between the Company and Delos (Suzhou) Health Technology Co.,
Ltd., Delos (Suzhou) Health Technology Co., Ltd. leased an office building area of 60 square meters from the Company, with an
annual rental of RMB25,200. The lease agreement was signed in January 2019 and expired in June 2020. The Company collected
actual rental of RMB12,600 in 2020 and RMB25,200 in 2019.
In accordance with the Property Lease Agreement signed between the Company and Suzhou Gold Mantis Culture
51
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Development Co., Ltd., Suzhou Gold Mantis Culture Development Co., Ltd. leased an office building area of 1,363.21 square meters
and an office building area of 2,684.00 square meters from the Company, with an annual rental of RMB572,500 and RMB644,200,
respectively. The Company collected actual annual rental of RMB524,800 and RMB590,500 in 2020, and actual annual rental of
RMB572,500 and RMB644,200 in 2019.
(2) Other Related-party Transactions
① In 2020, the Company as well as its subsidiaries including Meiruide, Gold Mantis Curtain Wall, Gold Mantis Landscape,
Refined Decoration & Technology, Gold Mantis Art, Jindejin Construction and Huali Jinshi pa id Suzhou Virtues Construction
Professional Training School training fees of RMB1,707,800 in total; the Company as well as its subsidiaries including Meiruide,
Gold Mantis Curtain Wall and Gold Mantis Landscape paid Virtues Professional Training School of Suzhou Industrial Park training
fees of RMB188,800 in total.
② In December 2020, the Company donated RMB3 million to Suzhou Gold Mantis Charity Foundation.
The amount of related-party transactions including the above-mentioned lease with related parties and training fees of related
parties totaled RMB7,836,300, which fell within the permission scope of the General Manager. These transactions had been reviewed
and approved by the General Manager in accordance with the Company's Related-Party Transaction Policy.
XVII Significant Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Significant Guarantees
√ Applicable □ Not applicable
52
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
(1) Particulars about Guarantees
Unit: RMB'0,000
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Guarante
Disclosure date of Actual Liability e for a
Line of Actual occurrence Type of Term of
Obligor the guarantee line guarantee executed related
guarantee date guarantee guarantee
announcement amount or not party or
not
Guarantees provided by the Company as the parent for its subsidiaries
Guarante
Disclosure date of Actual Liability e for a
Line of Actual occurrence Type of Term of
Obligor the guarantee line guarantee executed related
guarantee date guarantee guarantee
announcement amount or not party or
not
Gold Mantis
Refined Joint-liabil 2018.6.27-2
23 May 2018 70,000 27 June 2018 5,000 Yes Not
Decoration & ity 019.6.27
Technology
Gold Mantis
Refined Joint-liabil 2018.12.20-
23 May 2018 70,000 20 December 2018 1,097.28 Yes Not
Decoration & ity 2019.12.20
Technology
Gold Mantis
Refined Joint-liabil 2019.5.5-20
23 May 2018 70,000 5 May 2019 3,000 Yes Not
Decoration & ity 20.1.14
Technology
Gold Mantis
Refined Joint-liabil 2019.6.11-2
21 May 2019 70,000 11 June 2019 10,000 Yes Not
Decoration & ity 020.6.10
Technology
Gold Mantis
Refined Joint-liabil 2019.7.4-20
21 May 2019 70,000 4 July 2019 30,000 Yes Not
Decoration & ity 20.7.4
Technology
Gold Mantis
Refined Joint-liabil 2019.12.11-
21 May 2019 70,000 11 December 2019 5,000 Yes Not
Decoration & ity 2020.12.11
Technology
Gold Mantis Joint-liabil 2018.6.26-2
23 May 2018 150,000 26 June 2018 15,000 Yes Not
Landscape ity 019.6.26
53
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Gold Mantis Joint-liabil 2019.1.25-2
23 May 2018 150,000 25 January 2019 5,000 Yes Not
Landscape ity 020.1.24
Gold Mantis Joint-liabil 2019.5.13-2
23 May 2018 150,000 13 May 2019 4,000 Yes Not
Landscape ity 020.5.13
Gold Mantis Joint-liabil 2019.5.13-2
23 May 2018 150,000 13 May 2019 6,000 Yes Not
Landscape ity 020.4.15
Gold Mantis Joint-liabil 2019.5.17-2
23 May 2018 150,000 17 May 2019 1,000 Yes Not
Landscape ity 020.5.15
Gold Mantis Joint-liabil 2017.12.12-
24 May 2017 200,000 12 December 2017 20,000 Yes Not
Curtain Wall ity 2020.12.11
Gold Mantis Joint-liabil 2018.6.27-2
23 May 2018 280,000 27 June 2018 10,000 Yes Not
Curtain Wall ity 019.4.19
Gold Mantis Joint-liabil 2018.7.30-2
23 May 2018 280,000 30 July 2018 37,200 Yes Not
Curtain Wall ity 019.7.29
Gold Mantis Joint-liabil 2019.5.13-2
23 May 2018 280,000 13 May 2019 10,000 Yes Not
Curtain Wall ity 020.5.13
Gold Mantis Joint-liabil 2019.5.31-2
21 May 2019 320,000 31 May 2019 5,000 Yes Not
Curtain Wall ity 020.5.31
Gold Mantis Joint-liabil 2019.6.18-2
21 May 2019 320,000 18 June 2019 10,000 Yes Not
Curtain Wall ity 020.6.17
Gold Mantis Joint-liabil 2019.9.16-2
21 May 2019 320,000 16 September 2019 15,670 Yes Not
Curtain Wall ity 020.9.15
Gold Mantis Joint-liabil 2020.1.14-2
21 May 2019 320,000 14 January 2020 20,000 Yes Not
Curtain Wall ity 021.1.13
Gold Mantis Joint-liabil 2019.5.13-2
23 May 2018 280,000 13 May 2019 20,000 Yes Not
Curtain Wall ity 020.4.15
Joint-liabil 2019.1.18-2
Meiruide 23 May 2018 280,000 18 January 2019 20,000 Yes Not
ity 020.1.17
Joint-liabil 2019.4.9-20
Meiruide 23 May 2018 280,000 9 April 2019 30,000 Yes Not
ity 20.4.8
Joint-liabil 2019.4.18-2
Meiruide 23 May 2018 280,000 18 April 2019 10,000 Yes Not
ity 020.4.17
Joint-liabil 2019.5.13-2
Meiruide 23 May 2018 280,000 13 May 2019 30,000 Yes Not
ity 020.5.13
Joint-liabil 2019.5.17-2
Meiruide 23 May 2018 280,000 17 May 2019 25,000 Yes Not
ity 020.5.16
Joint-liabil 2019.6.10-2
Meiruide 21 May 2019 360,000 10 June 2019 5,040 Yes Not
ity 020.6.10
54
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Joint-liabil 2019.6.10-2
Meiruide 21 May 2019 360,000 10 June 2019 4,419.95 Yes Not
ity 020.6.10
Joint-liabil 2019.9.9-20
Meiruide 21 May 2019 360,000 9 September 2019 7,000 Yes Not
ity 20.9.8
Joint-liabil 2019.11.27-
Meiruide 21 May 2019 360,000 27 November 2019 1,730 Yes Not
ity 2020.11.27
Joint-liabil 2019.12.15-
Meiruide 21 May 2019 360,000 15 December 2019 15,000 Yes Not
ity 2020.12.14
Joint-liabil 2020.1.2-20
Meiruide 21 May 2019 360,000 2 January 2020 15,000 Yes Not
ity 20.12.31
Joint-liabil 2020.4.24-2
Meiruide 21 May 2019 360,000 24 April 2020 10,000 Yes Not
ity 021.4.24
Joint-liabil 2018.6.26-2
Meiruide 23 May 2018 280,000 26 June 2018 30,000 Yes Not
ity 019.6.26
Joint-liabil 2019.7.4-20
Meiruide 21 May 2019 360,000 4 July 2019 40,000 Yes Not
ity 20.7.4
Joint-liabil 2018.8.7-20
Gold Mantis Art 23 May 2018 10,000 7 August 2018 1,200 Yes Not
ity 19.8.6
Joint-liabil 2019.7.24-2
Gold Mantis Art 21 May 2019 10,000 24 July 2019 1,200 Yes Not
ity 020.7.23
Joint-liabil 2020.6.5-20
Gold Mantis Art 16 May 2020 10,000 5 June 2020 1,000 Yes Not
ity 21.6.5
Joint-liabil 2020.7.27-2
Gold Mantis Art 16 May 2020 10,000 27 July 2020 1,200 Yes Not
ity 021.7.26
Gold Mantis Joint-liabil 2019.5.13-2
23 May 2018 20,000 13 May 2019 5,000 Yes Not
Supply Chain ity 020.4.15
Gold Mantis Joint-liabil 2019.8.28-2
21 May 2019 20,000 28 August 2019 5,000 Yes Not
Supply Chain ity 020.8.27
Gold Mantis Joint-liabil 2019.9.24-2
21 May 2019 20,000 24 September 2019 10,000 Yes Not
Supply Chain ity 020.9.24
Singapore Gold Joint-liabil 2019.8.28-2
21 May 2019 50,000 28 August 2019 8,500.2 Yes Not
Mantis ity 020.8.28
Singapore Gold Joint-liabil 2019.9.26-2
21 May 2019 50,000 26 September 2019 12,731.22 Yes Not
Mantis ity 020.9.25
Gold Mantis
Refined Joint-liabil 2019.5.17-2
23 May 2018 70,000 17 May 2019 4,050 Not Not
Decoration & ity 022.5.16
Technology
Gold Mantis 16 May 2020 100,000 1 June 2020 1,500 Joint-liabil 2020.6.1-20 Not Not
55
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Refined ity 21.5.31
Decoration &
Technology
Gold Mantis
Refined Joint-liabil 2020.10.26-
16 May 2020 100,000 26 October 2020 30,000 Not Not
Decoration & ity 2021.10.26
Technology
Gold Mantis
Refined Joint-liabil 2020.12.9-2
16 May 2020 100,000 9 December 2020 8,000 Not Not
Decoration & ity 021.12.9
Technology
Gold Mantis
Refined Joint-liabil 2020.12.14--
16 May 2020 100,000 14 December 2020 10,000 Not Not
Decoration & ity 2021.12.13
Technology
Gold Mantis Joint-liabil 2019.6.18-2
21 May 2019 150,000 18 June 2019 5,000 Not Not
Landscape ity 020.6.17
Gold Mantis Joint-liabil 2019.7.4-20
21 May 2019 150,000 4 July 2019 15,000 Not Not
Landscape ity 20.7.4
Gold Mantis Joint-liabil 2020.4.22-2
21 May 2019 150,000 22 April 2020 6,000 Not Not
Landscape ity 021.4.21
Gold Mantis Joint-liabil 2020.9.23-2
16 May 2020 150,000 23 September 2020 8,000 Not Not
Landscape ity 021.9.23
Gold Mantis Joint-liabil 2018.5.31-2
23 May 2018 280,000 31 May 2018 20,000 Not Not
Curtain Wall ity 019.5.30
Gold Mantis Joint-liabil 2019.8.15-2
21 May 2019 320,000 15 August 2019 37,200 Not Not
Curtain Wall ity 020.8.14
Gold Mantis Joint-liabil 2019.12.11-
21 May 2019 320,000 11 December 2019 10,000 Not Not
Curtain Wall ity 2020.12.11
Gold Mantis Joint-liabil 2020.5.18-2
16 May 2020 320,000 18 May 2020 10,000 Not Not
Curtain Wall ity 021.5.18
Gold Mantis Joint-liabil 2020.6.5-20
16 May 2020 320,000 5 June 2020 20,000 Not Not
Curtain Wall ity 21.5.13
Gold Mantis Joint-liabil 2020.6.18-2
16 May 2020 320,000 18 June 2020 5,000 Not Not
Curtain Wall ity 021.6.18
Gold Mantis Joint-liabil 2020.8.24-2
16 May 2020 320,000 24 August 2020 37,200 Not Not
Curtain Wall ity 021.8.23
Gold Mantis Joint-liabil 2020.11.4-2
16 May 2020 320,000 4 November 2020 6,000 Yes Not
Curtain Wall ity 021.8.25
56
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Gold Mantis Joint-liabil 2020.9.23-2
16 May 2020 320,000 23 September 2020 8,000 Not Not
Curtain Wall ity 021.9.23
Gold Mantis Joint-liabil 2020.12.1-2
16 May 2020 320,000 1 December 2020 17,000 Not Not
Curtain Wall ity 021.12.1
Gold Mantis Joint-liabil 2020.12.10-
16 May 2020 320,000 10 December 2020 15,000 Not Not
Curtain Wall ity 2021.12.9
Joint-liabil 2018.10.26-
Meiruide 23 May 2018 280,000 26 October 2018 25,000 Not Not
ity 2019.11.25
Joint-liabil 2019.5.13-2
Meiruide 23 May 2018 280,000 13 May 2019 20,000 Not Not
ity 020.4.15
Joint-liabil 2019.5.28-2
Meiruide 21 May 2019 360,000 28 May 2019 10,000 Not Not
ity 020.5.27
Joint-liabil 2020.1.8-20
Meiruide 21 May 2019 360,000 8 January 2020 10,000 Not Not
ity 21.1.8
Joint-liabil 2020.3.17-2
Meiruide 21 May 2019 360,000 17 March 2020 10,000 Not Not
ity 021.3.17
Joint-liabil 2020.5.18-2
Meiruide 16 May 2020 420,000 18 May 2020 20,000 Not Not
ity 021.5.18
Joint-liabil 2020.6.5-20
Meiruide 16 May 2020 420,000 5 June 2020 20,000 Not Not
ity 21.5.13
Joint-liabil 2020.6.11-2
Meiruide 16 May 2020 420,000 11 June 2020 10,000 Not Not
ity 021.6.11
Joint-liabil 2020.8.10-2
Meiruide 16 May 2020 420,000 10 August 2020 25,000 Not Not
ity 021.8.9
Joint-liabil 2020.9.23-2
Meiruide 16 May 2020 420,000 23 September 2020 10,000 Not Not
ity 021.9.23
Joint-liabil 2020.9.24-2
Meiruide 16 May 2020 420,000 24 September 2020 20,000 Not Not
ity 021.9.24
Joint-liabil 2020.10.26-
Meiruide 16 May 2020 420,000 26 October 2020 40,000 Not Not
ity 2021.10.26
Gold Mantis Joint-liabil 2019.8.28-2
21 May 2019 20,000 28 August 2019 5,000 Not Not
Supply Chain ity 020.8.27
Gold Mantis Joint-liabil 2019.9.24-2
21 May 2019 20,000 24 September 2019 10,000 Not Not
Supply Chain ity 020.9.24
Gold Mantis Joint-liabil 2020.4.8-20
21 May 2019 20,000 8 April 2020 3,000 Not Not
Supply Chain ity 21.4.7
Gold Mantis Joint-liabil 2020.6.5-20
16 May 2020 30,000 5 June 2020 6,000 Not Not
Supply Chain ity 21.5.13
57
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Gold Mantis Joint-liabil 2020.5.26-2
16 May 2020 30,000 26 May 2020 5,000 Not Not
Supply Chain ity 021.5.25
Singapore Gold Joint-liabil 2020.8.28-2
16 May 2020 50,000 28 August 2020 8,266.92 Not Not
Mantis ity 021.8.28
Singapore Gold Joint-liabil 2020.9.26-2
16 May 2020 50,000 26 September 2020 12,261.78 Not Not
Mantis ity 021.9.25
Joint-liabil 2020.6.5-20
Jijia Materials 16 May 2020 50,000 5 June 2020 6,000 Not Not
ity 21.5.13
Gold Mantis East Joint-liabil 2020.7.3-20
16 May 2020 10,000 3 July 2020 1,000 Not Not
China ity 21.7.3
Total actual amount of
Total approved line for such guarantees
1,433,000 such guarantees in the 1,071,467.35
in the Reporting Period (B1)
Reporting Period (B2)
Total actual balance of
Total approved line for such guarantees such guarantees at the
1,433,000 549,478.7
at the end of the Reporting Period (B3) end of the Reporting
Period (B4)
Guarantees provided between subsidiaries
Guarante
Disclosure date of Actual Liability e for a
Line of Actual occurrence Type of Term of
Obligor the guarantee line guarantee executed related
guarantee date guarantee guarantee
announcement amount or not party or
not
Total guarantee amount (total of the three kinds of guarantees above)
Total actual guarantee
Total guarantee line approved in the amount in the
1,433,000 1,071,467.35
Reporting Period (A1+B1+C1) Reporting Period
(A2+B2+C2)
Total actual guarantee
Total approved guarantee line at the end balance at the end of
1,433,000 549,478.7
of the Reporting Period (A3+B3+C3) the Reporting Period
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4) as a % of the Company’s net
32.31%
assets
Of which:
Balance of guarantees provided for shareholders, the actual controller and
0
their related parties (D)
Balance of debt guarantees provided directly or indirectly for entities
0
with an over 70% debt/asset ratio (E)
58
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Amount by which the total guarantee amount exceeds 50% of the
0
Company’s net assets (F)
Total of the three amounts above (D+E+F) 0
Liabilities executed in the Reporting Period and possibility of having to
N/A
execute joint liability on outstanding guarantees (if any)
Irregularities in the provision of guarantees to external parties (if any) N/A
(2) Irregularities in Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Cash Entrusted to Other Entities for Management
(1) Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
Overview of wealth management entrustments in the Reporting Period:
Unit: RMB’0,000
Unrecovered overdue
Type Funding source Amount Undue amount
amount
Bank’s wealth
Self-funded 216,060 216,060 0
management product
Total 216,060 216,060 0
High-risk wealth management transactions with a significant single a mount or with low security, low liquidity and no principal
protection:
√ Applicable □ Not applicable
Unit: RMB’0,000
Summ
Recov
ary
ery/pa
Actual Throu Contin and
Refere yment
Expect gain/lo Impair gh the uing index
Type Invest Way nce of
Type Fundi ed ss in ment statuto wealth to
Consign of Amou Start End ment of annual gain/lo
of ng returns the allowa ry manag releva
ee consi nt date date directi repay ized ss in
product source (if Report nce (if proced ement nt
gnee on ment rate of the
any) ing any) ure or plans infor
return Report
Period not or not matio
ing
n (if
Period
any)
Suzhou Princip Self-fu 28 Low-ri Princi
Bank 50,000 * 1.48% 17.59 4.69 - Yes Yes
branch al-prot nded Dece sk pal
59
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
of ected mber wealth repay
CITIC with 2020 manag ment
Bank floatin ement with
g produc interes
income t t upon
maturi
ty
Business Princi
Departm Princip Low-ri pal
ent of al-prot sk repay
31
the ected wealth ment
Self-fu Dece
Suzhou Bank with 15,000 * manag with 1.48% - Yes Yes
nded mber
branch floatin ement interes
2020
of g produc t upon
CITIC income t maturi
Bank ty
Princi
Princip Low-ri pal
Suzhou al-prot sk repay
31
branch ected wealth ment
Self-fu Dece
of Bank with 10,000 * manag with 3.10% - Yes Yes
nded mber
CITIC floatin ement interes
2020
Bank g produc t upon
income t maturi
ty
Princi
Princip Low-ri pal
Suzhou al-prot sk repay
31
branch ected wealth ment
Self-fu Dece
of Bank with 8,960 * manag with 1.48% 1.89 0.34 - Yes Yes
nded mber
CITIC floatin ement interes
2020
Bank g produc t upon
income t maturi
ty
Princi
Princip Low-ri pal
Gusu
al-prot sk repay
branch 30
ected wealth ment
of Bank Self-fu Dece
Bank with 8,000 * manag with 1.59% 1.15 0.35 - Yes Yes
of nded mber
floatin ement interes
Commu 2020
g produc t upon
nications
income t maturi
ty
60
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Princi
Princip Low-ri pal
Suzhou
al-prot sk repay
branch 24
ected wealth ment
of Bank Self-fu Dece
Bank with 7,000 * manag with 3.50% 5.36 1.34 - Yes Yes
of nded mber
floatin ement interes
Shangha 2020
g produc t upon
i
income t maturi
ty
Princi
Princip Low-ri pal
al-prot sk repay
Suzhou 26
ected wealth ment
branch Self-fu Octob
Bank with 5,000 * manag with 1.50% 38.89 13.56 - Yes Yes
of Bank nded er
floatin ement interes
of China 2020
g produc t upon
income t maturi
ty
Princi
Princip Low-ri pal
Suzhou al-prot sk repay
26
branch ected wealth ment
Self-fu Octob
of Bank with 5,000 * manag with 2.75% 51.45 24.86 - Yes Yes
nded er
CITIC floatin ement interes
2020
Bank g produc t upon
income t maturi
ty
Princi
Princip Low-ri pal
al-prot sk repay
Suzhou 6
ected wealth ment
branch Self-fu Nove
Bank with 5,000 * manag with 1.50% 32.59 11.3 - Yes Yes
of Bank nded mber
floatin ement interes
of China 2020
g produc t upon
income t maturi
ty
Princip Low-ri Princi
Suzhou al-prot sk pal
5
branch ected wealth repay
Self-fu Nove
of Bank with 5,000 * manag ment 1.50% 32.15 11.51 - Yes Yes
nded mber
Industria floatin ement with
2020
l Bank g produc interes
income t t upon
61
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
maturi
ty
Princi
Princip Low-ri pal
Suzhou
al-prot sk repay
branch 19
ected wealth ment
of Bank Self-fu Nove
Bank with 5,000 * manag with 3.20% 30.36 18.41 - Yes Yes
of nded mber
floatin ement interes
Shangha 2020
g produc t upon
i
income t maturi
ty
Princi
Princip Low-ri pal
Gusu
al-prot sk repay
branch 10
ected wealth ment
of Bank Self-fu Dece
Bank with 5,000 * manag with 1.56% 23.45 4.49 - Yes Yes
of nded mber
floatin ement interes
Commu 2020
g produc t upon
nications
income t maturi
ty
Princi
Princip Low-ri pal
Gusu
al-prot sk repay
branch 10
ected wealth ment
of Bank Self-fu Dece
Bank with 5,000 * manag with 1.56% 23.45 4.49 - Yes Yes
of nded mber
floatin ement interes
Commu 2020
g produc t upon
nications
income t maturi
ty
Princi
Princip Low-ri pal
al-prot sk repay
Suzhou 21
ected wealth ment
branch Self-fu Dece
Bank with 5,000 * manag with 1.50% 6.95 2.05 - Yes Yes
of Bank nded mber
floatin ement interes
of China 2020
g produc t upon
income t maturi
ty
Suzhou Princip Low-ri Princi
10
branch al-prot sk pal
Self-fu Dece
of Bank Bank ected 5,000 * wealth repay 3.20% 8.56 2.88 - Yes Yes
nded mber
of with manag ment
2020
Shangha floatin ement with
62
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
i g produc interes
income t t upon
maturi
ty
Princi
Princip Low-ri pal
Suzhou al-prot sk repay
31
branch ected wealth ment
Self-fu Dece
of Bank with 5,000 * manag with 1.48% - Yes Yes
nded mber
CITIC floatin ement interes
2020
Bank g produc t upon
income t maturi
ty
Princi
Princip Low-ri pal
Gusu
al-prot sk repay
branch 21
ected wealth ment
of Bank Self-fu Dece
Bank with 5,000 * manag with 3.00% 14.59 3.21 - Yes Yes
of nded mber
floatin ement interes
Commu 2020
g produc t upon
nications
income t maturi
ty
Princi
Princip Low-ri pal
al-prot sk repay
Hengjin 10
ected wealth ment
g branch Self-fu Dece
Bank with 5,000 * manag with 3.10% 26.48 7.3 - Yes Yes
of Bank nded mber
floatin ement interes
of China 2020
g produc t upon
income t maturi
ty
Princi
Duyun Princip Low-ri pal
branch al-prot sk repay
30
of ected wealth ment
Self-fu Octob
Agricult Bank with 4,300 * manag with 2.30% 29.39 11.55 - Yes Yes
nded er
ural floatin ement interes
2020
Bank of g produc t upon
China income t maturi
ty
Suzhou Princip 11 Low-ri Princi
Self-fu
branch Bank al-prot 4,300 Nove * sk pal 2.40% 27.36 14.14 - Yes Yes
nded
of ected mber wealth repay
63
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Industria with 2020 manag ment
l Bank floatin ement with
g produc interes
income t t upon
maturi
ty
Princi
Duyun Princip Low-ri pal
branch al-prot sk repay
30
of ected wealth ment
Self-fu Nove
Agricult Bank with 4,000 * manag with 2.30% 21.39 5.46 - Yes Yes
nded mber
ural floatin ement interes
2020
Bank of g produc t upon
China income t maturi
ty
Princi
Suzhou
Princip Low-ri pal
Industria
al-prot sk repay
l Park 5
ected wealth ment
branch Self-fu Nove
Bank with 3,000 * manag with 3.16% 28.76 14.54 - Yes Yes
of Bank nded mber
floatin ement interes
of 2020
g produc t upon
Shangha
income t maturi
i
ty
Princi
Princip Low-ri pal
Suzhou al-prot sk repay
18
branch ected wealth ment
Self-fu Dece
of Bank with 3,000 * manag with 1.50% 7.35 2.96 - Yes Yes
nded mber
Industria floatin ement interes
2020
l Bank g produc t upon
income t maturi
ty
Princi
Princip Low-ri pal
Suzhou al-prot sk repay
18
branch ected wealth ment
Self-fu Dece
of China Bank with 3,000 * manag with 2.80% 8.26 2.99 - Yes Yes
nded mber
Merchan floatin ement interes
2020
ts Bank g produc t upon
income t maturi
ty
Duyun Bank Princip 2,700 Self-fu 20 * Low-ri Princi 2.30% 13.59 8.41 - Yes Yes
64
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
branch al-prot nded Octob sk pal
of ected er wealth repay
Agricult with 2020 manag ment
ural floatin ement with
Bank of g produc interes
China income t t upon
maturi
ty
Princi
Princip Low-ri pal
al-prot sk repay
Suzhou 16
ected wealth ment
branch Self-fu Octob
Bank with 2,600 * manag with 3.20% 32.56 17.32 - Yes Yes
of Bank nded er
floatin ement interes
of China 2020
g produc t upon
income t maturi
ty
Princi
Princip Low-ri pal
al-prot sk repay
Suzhou 23
ected wealth ment
branch Self-fu Dece
Bank with 2,500 * manag with 1.65% 2.95 0.9 - Yes Yes
of Ping nded mber
floatin ement interes
An Bank 2020
g produc t upon
income t maturi
ty
Princi
Princip Low-ri pal
al-prot sk repay
Suzhou 23
ected wealth ment
branch Self-fu Dece
Bank with 2,500 * manag with 1.65% 2.95 0.9 - Yes Yes
of Ping nded mber
floatin ement interes
An Bank 2020
g produc t upon
income t maturi
ty
Princi
Princip Low-ri
pal
al-prot sk
Suzhou 16 repay
ected wealth
branch Self-fu Octob ment
Bank with 2,400 * manag 3.20% 30.28 15.99 - Yes Yes
of Bank nded er with
floatin ement
of China 2020 interes
g produc
t upon
income t
maturi
65
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
ty
Princi
Princip Low-ri pal
Business al-prot sk repay
20
Departm ected wealth ment
Self-fu Februa
ent of Bank with 2,000 * manag with 2.00% 85.36 32.57 - Yes Yes
nded ry
Suning floatin ement interes
2020
Bank g produc t upon
income t maturi
ty
Princi
Duyun Princip Low-ri pal
branch al-prot sk repay
20
of ected wealth ment
Self-fu Nove
Agricult Bank with 2,000 * manag with 2.30% 8.95 3.58 - Yes Yes
nded mber
ural floatin ement interes
2020
Bank of g produc t upon
China income t maturi
ty
Princi
Suzhou
Princip Low-ri pal
Zhongxi
al-prot sk repay
n 11
ected wealth ment
sub-bran Self-fu Dece
Bank with 2,000 * manag with 1.15% 6.54 1.26 - Yes Yes
ch of nded mber
floatin ement interes
China 2020
g produc t upon
Merchan
income t maturi
ts Bank
ty
Princi
Princip Low-ri pal
Suzhou al-prot sk repay
23
branch ected wealth ment
Self-fu Dece
of Bank with 1,150 * manag with 2.40% 2.28 0.6 - Yes Yes
nded mber
Industria floatin ement interes
2020
l Bank g produc t upon
income t maturi
ty
Princip Low-ri Princi
Suzhou
al-prot 19 sk pal
branch
ected Self-fu Octob wealth repay
of Bank 1,100 * 2.40% 9.45 5.28 - Yes Yes
with nded er manag ment
Industria
floatin 2020 ement with
l Bank
g produc interes
66
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
income t t upon
maturi
ty
Princi
Princip Low-ri pal
Business al-prot sk repay
20
Departm ected wealth ment
Self-fu Februa
ent of Bank with 1,000 * manag with 2.00% 49.56 16.28 - Yes Yes
nded ry
Suning floatin ement interes
2020
Bank g produc t upon
income t maturi
ty
Princi
Princip Low-ri pal
Suzhou
al-prot sk repay
branch 5
ected wealth ment
of Bank Self-fu Nove
Bank with 1,000 * manag with 3.16% 15.56 4.85 - Yes Yes
of nded mber
floatin ement interes
Shangha 2020
g produc t upon
i
income t maturi
ty
Princi
Princip Low-ri pal
Linhu
al-prot sk repay
sub-bran 23
ected wealth ment
ch of Self-fu Dece
Bank with 1,000 * manag with 1.50% 1.19 0.31 - Yes Yes
Agricult nded mber
floatin ement interes
ural 2020
g produc t upon
Bank
income t maturi
ty
Princi
Suzhou
Princip Low-ri pal
Industria
al-prot sk repay
l Park 3
ected wealth ment
sub-bran Self-fu Nove
Bank with 1,000 * manag with 3.16% 11.29 5.02 - Yes Yes
ch of nded mber
floatin ement interes
Bank of 2020
g produc t upon
Shangha
income t maturi
i
ty
Suzhou Princip 5 Low-ri Princi
branch al-prot Self-fu Dece sk pal
Bank 1,000 * 3.65% 8.27 2.6 - Yes Yes
of ected nded mber wealth repay
CITIC with 2020 manag ment
67
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Bank floatin ement with
g produc interes
income t t upon
maturi
ty
Princi
Princip Low-ri pal
Suzhou al-prot sk repay
21
branch ected wealth ment
Self-fu Octob
of Bank with 950 * manag with 2.40% 7.36 4.44 - Yes Yes
nded er
Industria floatin ement interes
2020
l Bank g produc t upon
income t maturi
ty
Princi
Princip Low-ri pal
Suzhou al-prot sk repay
10
branch ected wealth ment
Self-fu Dece
of Bank with 900 * manag with 2.40% 4.26 1.24 - Yes Yes
nded mber
Industria floatin ement interes
2020
l Bank g produc t upon
income t maturi
ty
Princi
Princip Low-ri pal
Linhu
al-prot sk repay
sub-bran 10
ected wealth ment
ch of Self-fu Octob
Bank with 800 * manag with 1.50% 4.98 2.54 - Yes Yes
Agricult nded er
floatin ement interes
ural 2020
g produc t upon
Bank
income t maturi
ty
Princi
Princip Low-ri pal
Linhu
al-prot sk repay
sub-bran 10
ected wealth ment
ch of Self-fu Octob
Bank with 700 * manag with 1.50% 6.58 2.23 - Yes Yes
Agricult nded er
floatin ement interes
ural 2020
g produc t upon
Bank
income t maturi
ty
Linhu Princip Self-fu 31 Low-ri Princi
Bank 700 * 1.50% - Yes Yes
sub-bran al-prot nded Dece sk pal
68
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
ch of ected mber wealth repay
Agricult with 2020 manag ment
ural floatin ement with
Bank g produc interes
income t t upon
maturi
ty
Princi
Princip Low-ri pal
Xietang
al-prot sk repay
sub-bran 10
ected wealth ment
ch of Self-fu Dece
Bank with 700 * manag with 1.90% 3.15 0.72 - Yes Yes
Agricult nded mber
floatin ement interes
ural 2020
g produc t upon
Bank
income t maturi
ty
Princi
Princip Low-ri pal
Suzhou al-prot sk repay
19
branch ected wealth ment
Self-fu Octob
of Bank with 600 * manag with 1.60% 4.56 1.92 - Yes Yes
nded er
Industria floatin ement interes
2020
l Bank g produc t upon
income t maturi
ty
Princi
Princip Low-ri pal
Linhu
al-prot sk repay
sub-bran 20
ected wealth ment
ch of Self-fu Nove
Bank with 600 * manag with 1.50% 2.18 0.95 - Yes Yes
Agricult nded mber
floatin ement interes
ural 2020
g produc t upon
Bank
income t maturi
ty
Princi
Princip Low-ri pal
Suzhou al-prot sk repay
26
branch ected wealth ment
Self-fu Dece
of Bank with 600 * manag with 3.05% 2.12 0.25 - Yes Yes
nded mber
CITIC floatin ement interes
2020
Bank g produc t upon
income t maturi
ty
69
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Princi
Princip Low-ri pal
Xietang
al-prot sk repay
sub-bran
ected 23 wealth ment
ch of Self-fu
Bank with 500 Januar * manag with 2.55% 28.56 11.97 - Yes Yes
Agricult nded
floatin y 2020 ement interes
ural
g produc t upon
Bank
income t maturi
ty
Princi
Princip Low-ri pal
Suzhou al-prot sk repay
17
branch ected wealth ment
Self-fu Dece
of Bank with 500 * manag with 2.40% 2.35 0.46 - Yes Yes
nded mber
Industria floatin ement interes
2020
l Bank g produc t upon
income t maturi
ty
Princi
Princip Low-ri pal
Xietang
al-prot sk repay
sub-bran 21
ected wealth ment
ch of Self-fu Dece
Bank with 500 * manag with 1.90% 1.56 0.25 - Yes Yes
Agricult nded mber
floatin ement interes
ural 2020
g produc t upon
Bank
income t maturi
ty
Princi
Princip Low-ri pal
Xietang
al-prot sk repay
sub-bran
ected 25 wealth ment
ch of Self-fu
Bank with 300 April * manag with 2.70% 17.76 7.66 - Yes Yes
Agricult nded
floatin 2019 ement interes
ural
g produc t upon
Bank
income t maturi
ty
Princip Low-ri Princi
Xietang
al-prot sk pal
sub-bran 26
ected wealth repay
ch of Self-fu Nove
Bank with 300 * manag ment 2.55% 10.38 7.74 - Yes Yes
Agricult nded mber
floatin ement with
ural 2019
g produc interes
Bank
income t t upon
70
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
maturi
ty
Princi
Princip Low-ri pal
Suzhou al-prot sk repay
9
branch ected wealth ment
Self-fu Dece
of Bank with 300 * manag with 2.40% 2.28 0.43 - Yes Yes
nded mber
Industria floatin ement interes
2020
l Bank g produc t upon
income t maturi
ty
Xiangch
Princi
eng
Princip Low-ri pal
sub-bran
al-prot sk repay
ch of 21
ected wealth ment
Industria Self-fu Dece
Bank with 300 * manag with 2.66% - Yes Yes
l and nded mber
floatin ement interes
Commer 2020
g produc t upon
cial
income t maturi
Bank of
ty
China
Princi
Princip Low-ri pal
Suzhou al-prot sk repay
16
branch ected wealth ment
Self-fu Octob
of Bank with 300 * manag with 1.60% 4.26 1.18 - Yes Yes
nded er
Industria floatin ement interes
2020
l Bank g produc t upon
income t maturi
ty
216,06
Total -- -- -- -- -- -- 820.54 322.27 -- -- -- --
0
*Note: Returns on investments in these wealth management products were calculated based on actual duration days for there were no
nominal durations for them.
Wealth management transactions where the principal is expectedly irrecoverable or an impairment may be incurred:
□ Applicable √ Not applicable
(2) Entrusted Loans
□ Applicable √ Not applicable
No such cases in the Reporting Period.
71
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
4. Significant Contracts Arising in the Ordinary Course of Business
□ Applicable √ Not applicable
5. Other Significant Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XVIII Social Responsibility
1. Fulfillment of Social Responsibility
Please refer to the full Social Responsibility Report of the Company disclosed on www.cninfo.com.cn dated 30 April 2021.
2. Measures Taken for Targeted Poverty Alleviation
The Company did not carry out any work for targeted poverty alleviation in the Reporting Period, and has no such plans for
now.
3. Information Related to Environmental Protection
Indicate whether the Company or any of its subsidiaries was identified as a major polluter by the environmental authorities.
□ Yes √ No
Not applicable.
XIX Other Significant Events
√ Applicable □Not applicable
No other significant events.
The Company is subject to the Guide No. 6 of the Shenzhen Stock Exchange on Industry-Specific Information Disclosure—Listed
Companies Engaged in Construction Decoration.
1. Qualifications in 2020:
(1) Type of Industrial Qualifications Obtained within the Reporting Period as well as the Valid Periods
Company name Name of the qualification Class of the Validity term Type of
qualification change
Suzhou Gold Mantis Construction Decoration Firefighting Facility Engineering Class Two To 31 December Added
Co., Ltd. Professional Contractor 2021
(2) Information about Significant Changes to Relevant Qualifications in the Reporting Period
Company name Name of the qualification Class of the Validity term Type of
72
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
qualification change
Suzhou Gold Mantis Curtain Wall Co., Ltd. Curtain Wall Engineering Design Class A To 16 March Renew
2025
(3) Information about the Expiration and Renewal of Relevant Qualifications in the Next Reporting Period
Company name Name of the qualification Class of the Validity term Remarks
qualification
Suzhou Gold Mantis Construction Decoration Construction Decoration Engineering Class One To 31 December
Co., Ltd. Professional Contractor 2021
Suzhou Gold Mantis Construction Decoration Curtain Wall Engineering Professional Class One To 31 December
Co., Ltd. Contractor 2021
Suzhou Gold Mantis Construction Decoration Mechanical and Electrical Equipment Class One To 31 December
Co., Ltd. Installation Engineering Professional 2021
Contractor
Suzhou Gold Mantis Construction Decoration Firefighting Facility Engineering Class Two To 31 December
Co., Ltd. Professional Contractor 2021
Suzhou Gold Mantis Construction Decoration Urban and Road Lighting Engineering Class Three To 31 December
Co., Ltd. Professional Contractor 2021
Suzhou Gold Mantis Construction Decoration Construction Engineering General Class Three To 31 December
Co., Ltd. Contractor 2021
Suzhou Gold Mantis Landscape Co., Ltd. Ancient-Style Construction Class One To 31 December
Engineering Professional Contractor 2021
Suzhou Gold Mantis Landscape Co., Ltd. Municipal Public Works General Class Three To 31 December
Contractor 2021
Suzhou Gold Mantis Landscape Co., Ltd. Environmental Protection Engineering Class Three To 31 December
Professional Contractor 2021
Gold Mantis Refined Decoration & Construction Decoration Engineering Class One To 31 December
Technology (Suzhou) Co., Ltd. Professional Contractor 2021
Suzhou Gold Mantis Curtain Wall Co., Ltd. Curtain Wall Engineering Professional Class One To 31 December
Contractor 2021
Suzhou Gold Mantis Curtain Wall Co., Ltd. Steel-structure Engineering Class Two To 31 December
Professional Contractor 2021
Suzhou Gold Mantis Curtain Wall Co., Ltd. Construction Decoration Engineering Class Two To 31 December
Professional Contractor 2021
Suzhou Gold Mantis Curtain Wall Co., Ltd. Urban and Road Lighting Engineering Class Three To 31 December
Professional Contractor 2021
Suzhou Meiruide Construction Decoration Construction Decoration Engineering Class One To 31 December
Co., Ltd. Professional Contractor 2021
Suzhou Meiruide Construction Decoration Curtain Wall Engineering Professional Class One To 31 December
Co., Ltd. Contractor 2021
Suzhou Meiruide Construction Decoration Mechanical and Electrical Equipment Class Two To 31 December
Co., Ltd. Installation Engineering Professional 2021
73
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Contractor
Suzhou Meiruide Construction Decoration Construction Engineering General Class Three To 31 December
Co., Ltd. Contractor 2021
Suzhou Meiruide Construction Decoration Steel-structure Engineering Class Three To 31 December
Co., Ltd. Professional Contractor 2021
Suzhou Meiruide Construction Decoration Urban and Road Lighting Engineering Class Three To 31 December
Co., Ltd. Professional Contractor 2021
Suzhou Meiruide Construction Decoration Construction Decoration Engineering Class A To 31 December
Co., Ltd. Design 2021
Suzhou Meiruide Construction Decoration Curtain Wall Engineering Design Class A To 31 December
Co., Ltd. 2021
At present, the Company's staffing, business results, equipment and other aspects all satisfy the requirements on renewal of
relevant qualifications.
XX Significant Events of Subsidiaries
□ Applicable √ Not applicable
74
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Part VI Share Changes and Shareholder Information
I. Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the current period (+/-) After
Shares
Shares
as
as
divide
dividend
Percenta New nd Percenta
Shares converte Other Subtotal Shares
ge (%) issues conver ge (%)
d from
ted
capital
from
reserves
profit
8,000,
1. Restricted shares 80,724,473 3.02% -10,495,854 -2,495,854 78,228,619 2.92%
000
1.1 Shares held by the
state
1.2 Shares held by
state-owned corporations
1.3 Shares held by other 8,000,
80,724,473 3.02% -10,495,854 -2,495,854 78,228,619 2.92%
domestic investors 000
Including: Shares held
by domestic corporations
Shares held 8,000,
80,724,473 3.02% -10,495,854 -2,495,854 78,228,619 2.92%
by domestic individuals 000
1.4 Shares held by
overseas investors
Including: Shares held
by overseas corporations
Shares held
by overseas individuals
2. Unrestricted shares 2,595,684,216 96.98% 9,445,854 9,445,854 2,605,130,070 97.08%
2.1 RMB-denominated
2,595,684,216 96.98% 9,445,854 9,445,854 2,605,130,070 97.08%
ordinary shares
2.2 Domestically listed
foreign shares
75
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
2.3 Overseas listed
foreign shares
2.4 Others
8,000,
3. Total shares 2,676,408,689 100.00% -1,050,000 6,950,000 2,683,358,689 100.00%
000
Reasons for share changes:
√ Applicable □ Not applicable
1. During the Reporting Period, the shares of the Company held by the directors, supervisors and senior management were
locked and unlocked accordingly in accordance with the relevant regulations on the management of shares and their changes.
2. On 23 January 2020, the Company completed the registration of the grant of reserved restricted shares for the 2018 restricted
share incentive plan, granted 8 million restricted shares to 14 awardees. The total share capital of the Company increased to
2,684,408,689 shares.
3. On 9 June 2020, 9,615,000 shares with the restriction conditions lifted in the first lifting restriction period for the first grant
portion of the 2018 restricted share incentive plan were listed for trading.
4. On 13 July 2020, the Company completed the repurchase and cancellation of some restricted shares, after which the total
share capital of the Company changed from 2,684,408,689 shares to 2,683,358,689 shares.
Approval of share changes:
√ Applicable □ Not applicable
In accordance with the authorization of the 1st Extraordinary General Meeting of the Company in 2018, upon the deliberation
and approval of the 1st Extraordinary Meeting of the 6th Board of Directors and the 1st Extraordinary Meeting of the 6th Supe rvisory
Committee, the Company completed the registration of the grant of 8 million restricted shares under the reserved portion of the 2018
restricted share incentive plan. The reserved portion of restricted shares granted would be listed on 23 January 2020.
In accordance with the authorization of the 1st Extraordinary General Meeting of the Company in 2018, upon the deliberation
and approval of the 5th Meeting of the 6th Board of Directors and the 5th Meeting of the 6th Supervisory Committee, the Compa ny
processed matters related to restriction lifting for qualified awardees according to the stipulations in the incentive plan in the first
lifting restriction period for the first grant portion of the 2018 restricted share incentive plan. The trading restrictions on 9,615,000
restricted shares were lifted, and the stocks would be listed on 9 June 2020.
Upon the deliberation and approval of the 5th Meeting of the 6th Board of Directors, the 5th Meeting of the 6th Supervisory
Committee and the 2019 Annual General Meeting, the repurchase and cancellation of 1,050,000 restricted shares were completed.
The total share capital of the Company changed to 2,683,358,689 shares.
Transfer of share ownership:
√ Applicable □ Not applicable
76
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
The listing date of 8 million restricted shares granted under the reserved portion of the Company's 2018 restricted share
incentive plan was 23 January 2020.
The listing date of 9,615,000 restricted shares with the restriction conditions lifted in the first lifting restriction perio d for the
first grant portion of the Company's 2018 restricted share incentive plan was 9 June 2020.
The repurchase and cancellation of 1.05 million restricted shares under the Company's 2018 restricted share incentive plan we re
completed on 13 July 2020.
Progress on any share repurchase:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by way of centralized bidding:
□ Applicable √ Not applicable
Effects of share changes on the basic earnings per share, diluted earnings per share, equity per share attributable to the Co mpany’s
ordinary shareholders and other financial indicators of the prior year and the prior accounting period, respectively:
√ Applicable □ Not applicable
Based on the latest diluted share capital of 2,683,358,689 shares, earnings per share for 2019 and Q3 2020 were RMB0.88 and
RMB0.64 respectively, and equity per share for 2019 and Q3 2020 were RMB5.65 and RMB6.12 respectively.
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable √ Not applicable
2. Changes in Restricted Shares
√ Applicable □ Not applicable
Unit: share
Increase in
Opening restricted shares Unlocked in the Closing restricted Reason for
Shareholder Date of unlocking
restricted shares in the current current period shares restriction
period
Pursuant to the
Locked-up shares Locked-up shares regulations on
of senior 47,624,473 699,858 530,712 47,793,619 of senior shares held by
management management senior
management
Pursuant to the
Restricted shares
Locked-up as Company’s
as equity 33,100,000 8,000,000 10,665,000 30,435,000
equity incentives restricted share
incentives
incentive plans
Total 80,724,473 8,699,858 11,195,712 78,228,619 -- --
77
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
II Issuance and Listing of Securities
1. Securities (Exclusive of Preference Shares) Issued in the Reporting Period
√ Applicable □ Not applicable
Number Terminati
Issue price Index to
Name of stock and its Issued approved on date of Disclosure
Issue date (or interest Listing date disclosed
derivative securities number for public transactio date
rate) information
trading n
Stocks
Grant of the reserved
portion under the 2018 23 January 8,000,00
4.01 23 January 2020 8,000,000
Restricted Share 2020 0
Incentive Plan
Convertible corporate bonds, convertible corporate bonds with warrants, and corporate bonds
Other derivative securities
Particulars about the securities (exclusive of preference shares) issued in the Reporting Period:
For further information, please refer to “XV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive
Measures for Employees” in “Part V Significant Events” herein.
2. Changes in Total Shares, as well as Ownership, Asset and Liability Structures
√ Applicable □ Not applicable
As at the disclosure date, both the total number of shares and the shareholder structure of the Company have changed.
Information about the changes in the total number of shares and the shareholder structure is provided in "I. Changes in Share s
Capital" of this section. The Company received RMB32.08 million of exercise funds from the awardees after the reserved portion of
the 2018 restricted share incentive plan was granted, which further expanded the asset size.
3. Existing Staff-Held Shares
□ Applicable √ Not applicable
III Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the End of the Reporting Period
Unit: share
Number of Number of Number of Number of
63,192 77,426 0 0
ordinary ordinary preference preference
78
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
shareholders at shareholders at shareholders with shareholders
the period-end the month-end resumed voting with resumed
prior to the rights at the voting rights at
disclosure of this period-end (if any) the month-end
Report (see note 8) prior to the
disclosure of this
Report (if any)
(see note 8)
5% or greater shareholders or top 10 shareholders
Increase/d Shares in
Shareholdi Total shares ecrease in pledge or
Nature of Restricted Unrestricted
Name of shareholder ng held at the the frozen
shareholder shares held shares held
percentage period-end Reporting Statu Sha
Period s res
Domestic
Suzhou Gold Mantis Enterprise (Group) non-state-o
23.69% 635,805,330 -17000000 0 635,805,330
Co., Ltd. wned
corporation
Overseas
Golden Feather Corporation 23.67% 635,042,264 0.00 0 635,042,264
corporation
Perseverance Asset Management
110,000,0
Partnership L.L.P.－Perseverance Linshan Other 4.10% 110,000,000 0 110,000,000
00
No.1 Yuanwang Fund
Hong Kong Securities Clearing Company Overseas
2.48% 66,625,915 -8752925 0 66,625,915
Limited corporation
Domestic
China Securities Finance Corporation non-state-o
2.47% 66,269,137 -6011048 0 66,269,137
Limited wned
corporation
State-owned
Central Huijin Asset Management Ltd. 1.11% 29,843,550 0 0 29,843,550
corporation
Domestic
Zhou Wenhua 1.05% 28,081,956 -9360652 28,081,956 0
individual
Overseas
GIC Private Limited 0.95% 25,529,095 -7042577 0 25,529,095
corporation
Dalian Tonghe Investment Co., Ltd.－
Tonghe Progressive Private Investment Other 0.85% 22,882,724 1753800 0 22,882,724
Fund (12)
Dalian Tonghe Investment Co., Ltd.－
Other 0.72% 19,374,136 1186749 0 19,374,136
Tonghe Fuxiang Investment Fund (1)
79
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Strategic investor or general corporation becoming a
N/A
top-10 shareholder in a rights issue (if any) (see note 3)
Suzhou Gold Mantis Enterprise (Group) Co., Ltd. and Golden Feather
Related or acting-in-concert parties among the
Corporation are controlled by the Company’s actual controller Zhu
shareholders above
Xingliang.
Shareholders above entrusting/entrusted with or
N/A
waiving voting rights
Top 10 unrestricted shareholders
Unrestricted shares held at the Shares by class
Name of shareholder
period-end Class Shares
Suzhou Gold Mantis Enterprise (Group) RMB-denominated ordinary
635,805,330 635,805,330
Co., Ltd. shares
RMB-denominated ordinary
Golden Feather Corporation 635,042,264 635,042,264
shares
Perseverance Asset Management
RMB-denominated ordinary
Partnership L.L.P.－Perseverance 110,000,000 110,000,000
shares
Linshan No.1 Yuanwang Fund
Hong Kong Securities Clearing RMB-denominated ordinary
66,625,915 66,625,915
Company Limited shares
China Securities Finance Corporation RMB-denominated ordinary
66,269,137 66,269,137
Limited shares
RMB-denominated ordinary
Central Huijin Asset Management Ltd. 29,843,550 29,843,550
shares
RMB-denominated ordinary
GIC Private Limited 25,529,095 25,529,095
shares
Dalian Tonghe Investment Co., Ltd.－
RMB-denominated ordinary
Tonghe Progressive Private Investment 22,882,724 22,882,724
shares
Fund (12)
Dalian Tonghe Investment Co., Ltd.－ RMB-denominated ordinary
19,374,136 19,374,136
Tonghe Fuxiang Investment Fund (1) shares
RMB-denominated ordinary
Zhu Xingliang 18,327,718 18,327,718
shares
Related or acting-in-concert parties among top 10
Suzhou Gold Mantis Enterprise (Group) Co., Ltd. and Golden Feather
unrestricted public shareholders, as well as between top
Corporation are controlled by the Company’s actual controller Zhu
10 unrestricted public shareholders and top 10
Xingliang.
shareholders
80
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Shareholder Suzhou Gold Mantis Enterprise (Group) Co., Ltd. held
635,805,330 shares in the Company in its ordinary securities account, and
Top 10 ordinary shareholders involved in securities
17,000,000 shares in the Company in its securities refinancing margin
margin trading (if any) (see note 4)
account in China Securities Finance Corporation Limited, totaling
652,805,330 shares.
Indicate whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conducted
any promissory repurchase during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.
2. Controlling Shareholder
Nature of the controlling shareholder: foreign-controlled
Type of the controlling shareholder: corporation
Legal Date of
Name of the controlling
representative/p incorporati Organization code Principal activities
shareholder
erson-in-charge on
Industrial investments (except for projects
exclusively controlled by the state); sale of
Suzhou Gold Mantis 9132059472727698 construction materials; engineering and construction;
28 March
Enterprise (Group) Co., Zhu Haiqin 00 (unified social and business management consulting services
2001
Ltd. credit code) (where an administrative permit is required
according to law, it shall be obtained before
operation)
As at the end of the Reporting Period, Gold Mantis Group held 2,500,000 shares (0.63%) in Guangzhou
Football Club Co., Ltd. (stock name: ST Guangzhou Football; stock code: 834338). ST Guangzhou
Interests held in other
Football has been delisted from the National Equities Exchange and Quotations since 10 March 2021.
domestically and overseas
Also, Gold Mantis Group held 1,576,000 shares (0.047%) in Tysan Holdings Limited (stock name:
listed companies in the
Tysan Holdings; stock code: 00687). In addition, Gold Mantis Group participated in the subscription for
Reporting Period
new stocks such as Ruixin Technology, Xiangjia Animal Husbandry, and CEM during the Reporting
Period.
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Actual Controller and Acting-in-Concert Parties
Nature of the actual controller: overseas individual
Type of the actual controller: individual
Relationship with the actual Residency in other countries or
Name of the actual controller Nationality
controller regions or not
81
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Zhu Xingliang Actual controller himself Hong Kong, China Yes
Chairman of the Board of Suzhou Gold Mantis Holding Co., Ltd., Director of Suzhou Gold
Mantis Enterprise (Group) Co., Ltd., Chairman of the Board of Golden Feather Corporation,
Director of Suzhou LJT Intelligent Technology Co., Ltd. , General Manager of Suzhou Gold Gain
Main occupations and positions Investment Co., Ltd., Chairman of the Board of Suzhou Nuojin Investment Co., Ltd. , Chairman of
the Board of Suzhou Nuojin Finance Lease Co., Ltd., Executive Director of Jintang Capital
Holdings Co., Ltd., Director of Singapore Gold Mantis Pte. Ltd., and Director of HBA Holdings
Pte. Ltd.
Controlling interests in other
domestically and overseas listed N/A
companies in the past 10 years
Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Ownership and control relationship between the actual controller and the Company:
Zhu Haiqin Zhu Xingliang
30％ 70％ 100％
Other Suzhou Gold Mantis Holding Co., Ltd.
shareholders
26.27％ 73.06％ 0.67％
Suzhou Gold Mantis Enterprise (Group) Co., Ltd. Golden Feather Corporation Other shareholders
24.33％ 0.68％ 23.67％ 51.32％
Suzhou Gold Mantis Construction Decoration Co., Ltd.
Indicate whether the actual controller controls the Company via trust or other ways of asset management.
□ Applicable √ Not applicable
4. Other 10% or Greater Corporate Shareholders
√ Applicable □ Not applicable
Name of corporate shareholder Legal Date of Registered capital Principal activities
82
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
representative/person-in incorporation
-charge
Golden Feather Corporation Zhu Xingliang 24 July 1998 USD1 Industrial investment
5. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder, Actual Controller,
Reorganizer and Other Commitment Makers
□ Applicable √ Not applicable
83
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Part VII Preference Shares
□ Applicable √ Not applicable
No preference shares in the Reporting Period.
84
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Part VIII Convertible Corporate Bonds
□ Applicable √ Not applicable
No convertible corporate bonds in the Reporting Period.
85
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Part IX Directors, Supervisors, Senior Management and Staff
I Changes in the Shareholdings of Directors, Supervisors and Senior Management
Increa
Decrease Other
se in
Incum Opening in the increase Closing
Gende Start of office End of office the
Name Office title bent/F Age shareholdin current /decreas shareholdin
r term term current
ormer g (share) period e g (share)
period
(share) (share)
(share)
Chairman
Wang Incum
of the Male 47 8 April 2016 2 April 2022 3,000,000 0 0 0 3,000,000
Hanlin bent
Board
Director
Cao and Incum
Male 42 8 April 2016 2 April 2022 3,199,808 0 0 0 3,199,808
Liming General bent
Manager
Director
and
Shi Executive Incum
Male 43 23 May 2017 2 April 2022 3,000,000 0 0 0 3,000,000
Guoping Deputy bent
General
Manager
Incum
Zhu Ming Director Male 36 20 May 2015 2 April 2022 0 0 0 0 0
bent
Director
Zhu and Deputy Incum 15 November
Male 57 2 April 2022 6,266,027 0 1,566,500 0 4,699,527
Xingquan General bent 2004
Manager
Zhang Incum
Director Male 43 15 May 2020 2 April 2022 0 0 0 0 0
Xinhong bent
Wan Independen Incum
Male 66 8 April 2016 2 April 2022 0 0 0 0 0
Jieqiu t Director bent
Yu Independen Incum
Male 58 8 April 2016 2 April 2022 0 0 0 0 0
Xuehua t Director bent
Zhao Independen Incum
Male 58 3 April 2019 2 April 2022 0 0 0 0 0
Zengyao t Director bent
Zhu Chairman Incum Femal 12 September
49 2 April 2022 24,000 0 0 0 24,000
Panying of the bent e 2016
86
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Supervisor
y
Committee
Incum Femal
Qian Ping Supervisor 54 8 April 2016 2 April 2022 4,800 0 0 0 4,800
bent e
Zhang Incum 25 March
Supervisor Male 49 2 April 2022 67,500 0 0 0 67,500
Jun bent 2013
Deputy
Wang Incum
General Male 53 17 April 2010 2 April 2022 1,010,469 0 0 0 1,010,469
Hong bent
Manager
Deputy
Dong Incum
General Male 45 8 April 2016 2 April 2022 500,000 0 0 0 500,000
Sheng bent
Manager
Deputy
General
Cai Manager Incum
Male 46 8 April 2016 2 April 2022 500,000 0 0 0 500,000
Guohua and Chief bent
Financial
Officer
Deputy
General
Incum
Ning Bo Manager Male 39 2 March 2018 2 April 2022 500,000 0 0 0 500,000
bent
and Board
Secretary
Total -- -- -- -- -- -- 18,072,604 0 1,566,500 0 16,506,104
II Changes of Directors, Supervisors and Senior Manage ment
√ Applicable □ Not applicable
Name Office title Type of change Date Reason
Zhang Xinhong Director Elected 15 May 2020 Elected as a Director at the 2019 Annual General Meeting
III Biographical Information
Professional backgrounds, main work experience and current positions in the Company of the incumbent directors, supervisors a nd
senior management:
Wang Hanlin: Mr. Wang was previously a Project Manager of Jiangsu Sinda Decoration Co., Ltd. and the General Manager of a
branch of Suzhou Gold Mantis Construction Decoration Co., Ltd. He currently serves as the Chairman of the Board of the Company,
a Vice President of China Building Decoration Association, a Director of Gold Mantis Prefabricated Construction Technology
(Suzhou) Co., Ltd., a Director of Gold Mantis Refined Decoration & Technology (Suzhou) Co., Ltd., a Director of Gold Mantis
87
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Supply Chain Management (Suzhou) Co., Ltd., the Chairman of the Board of Gold Mantis Art Co., Ltd., the Chairman of the Board
of Gold Mantis North China (Beijing) Construction Decoration Engineering Co., Ltd., a Director of Gold Mantis Home Decoration
E-commerce (Suzhou) Co., Ltd., a Director of Suzhou Gold Mantis Landscape Co., Ltd., the Chairman of the Board of Gold Mantis
East China Construction Decoration Co., Ltd., and a Director of Singapore Gold Mantis Pte. Ltd.
Cao Liming: Mr. Cao previously served as the Director of the Human Resources Department and the Director of the Legal
Counsel Office of Nanjing Lianqiang Metallurgical Group Co., Ltd.; the Director of the Risk Management Department of Nanjing
BC Foods Co., Ltd.; the General Manager Assistant, and the Manager of the Legal Depart ment and the Financial Settlement
Department of Suzhou Meiruide Construction Decoration Co., Ltd.; the General Manager Assistant, and the Manager of the Legal
and Contract Center of Suzhou Gold Mantis Construction Decoration Co., Ltd.; an Executive Deputy General Manager of the
Marketing Center of Suzhou Gold Mantis Construction Decoration Co., Ltd.; the General Manager of the marketing company; a Vic e
President and Executive Director of Suzhou Exploration & Design Association and the President of the Decoration Design Branch.
Now he serves as a Director and the General Manager of the Company, a Director of Gold Mantis Art Co., Ltd., a Director of Suzhou
Gold Mantis Landscape Co., Ltd., the General Manager of Suzhou Gold Mantis Construction Investment Co., Ltd., a Director of
Suzhou Industrial Park Gold Mantis Furniture Design and Manufacturing Co., Ltd., a Director of Gold Mantis East China
Construction Decoration Co., Ltd., the Chairman of the Board of Gold Mantis (International) Construction Decoration Lim ited, a
Director of Gold Mantis International Development Co., Ltd., the Chairman of the Board of Gold Mantis HK Construction
Decoration Limited, and a director of Sierra Gold Mantis Joint Venture (Private) Limited.
Zhu Ming: Mr. Zhu previously served as the General Manager of Suzhou LJT Intelligent Technology Co., Ltd., and is currently
a Director of the Company, a Director of Suzhou Gold Mantis Enterprise (Group) Co., Ltd., a Director of Suzhou Gold Mantis
Holding Co., Ltd., a Director of Suzhou Nuojin I nvestment Co., Ltd., a Director of Suzhou LJT Intelligent Technology Co., Ltd., a
Director of Suzhou Gold Mantis Yihe Technology Co., Ltd., a director of Suzhou Meiruide Construction Decoration Co., Ltd., a
director of Suzhou Industrial Park Gold Mantis Furniture Design and Manufacturing Co., Ltd., a Director of Suzhou Gold Mantis
Landscape Co., Ltd., a Director of Gold Mantis Prefabricated Construction Technology (Suzhou) Co., Ltd., a Director of Suzhou
Gold Mantis Construction Investment Co., Ltd., a Director of Suzhou Gold Mantis Curtain Wall Co., Ltd., a Director of Singapore
Gold Mantis Pte. Ltd., a Director of HBA Holdings Pte. Ltd., a Director of Gold Mantis Refined Decoration & Technology (Suzho u)
Co., Ltd., a Director of Gold Mantis Home Decoration E-commerce (Suzhou) Co., Ltd., a Director of Gold Mantis Supply Chain
Management (Suzhou) Co., Ltd., a Director of Suzhou Gold Mantis Culture Development Co., Ltd., a Director of Suzhou Jinnuo
Commercial Factoring Co., Ltd., a Director of Suzhou Nuojin Finance Lease Co., Ltd., a Director of Shanghai Tangjinmei Data
Technology Co., Ltd., a Director of Guangzhou Jinnuo Microfinance Co., Ltd., the Chairman of the Board of Suzhou Huizhu
Information Technology Co., Ltd., and a Director of Suzhou Gold Mantis Char ity Foundation.
88
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Zhu Xingquan: Mr. Zhu previously served as a Manager of Suzhou Jinda Decoration Co., Ltd.; and the Manager of the
Department VIII, the Manager of Branch V, the General Manager Assistant, a Deputy General Manager of Suzhou Gold Mantis
Construction Decoration Co., Ltd. He is currently a Director and a Deputy General Manager of the Company, an Executive Director
of Jiangsu Decoration Association, a Vice Chairman of Suzhou Decoration Industry Association, the Chairman of the Board and
General Manager of Suzhou Meiruide Construction Decoration Co., Ltd., an Executive Director of Suzhou Meiruide Building
Materials Co., Ltd., and a Director of Suzhou Gold Mantis Charity Foundation.
Shi Guoping: Mr. Shi previously served as a Project Manager of the Company, the General Manager of Branch V, the Regional
Manager of the Management Region VIII, and a Deputy General Manager of the Engineering Management Center. He is now a
Director and a Deputy General Manager of the Company, the Chairman of the Board and General Manager of Suzhou Industrial Park
Gold Mantis Furniture Design and Manufacturing Co., Ltd., a Director of Gold Mantis East China Construction Decoration Co., Ltd.,
the Chairman of the Board of Suzhou Huali Jinshi Construction Decoration Co., Ltd., a Director of Macao Gold Mantis Construction
Decoration Limited, and an Executive Director of Gold Mantis International Development Co., Ltd.
Zhang Xinhong: Mr. Zhang was previously a Deputy Departmental Manager of Jiangsu Gangning Decoration Co., Ltd. and the
General Manager of Branch III of Suzhou Gold Mantis Construction Decoration Co., Ltd. Now he is a Director of the Company.
Yu Xuehua: Mr. Yu was previously a Lecturer at Nanjing Agricultural University, and is now an Independent Director of the
Company, an Associate Professor and Master's Supervisor of Accounting at Soochow University, an Independent Director of Jiangsu
Shagang Co., Ltd., an Independent Director of Jiangsu Hengli Hydraulic Co., Ltd., an Independent Director of Jiangsu Tongrun
Equipment Co., Ltd., and an Independent Director of General Elevator Co., Ltd.
Wan Jieqiu: Mr. Wan was previously a teacher of Xi'an Army Academy, a Lecturer and an Associate Professor of the Faculty of
Finance and Economics of Soochow University. Now he is an Independent Director of the Company, a Professor and Doctoral
Supervisor of Soochow University, an Independent Director of Nanji E-commerce Co., Ltd., and an Independent Director of Freewon
China Co., Ltd.
Zhao Zengyao: Mr. Zhao was previously a Lecturer, Associate Professor and Professor of Northwest University, and an
Independent Director of the Company. He is currently a Professor of the Faculty of Business of Soochow University, an Indepen dent
Director of Jiangsu Sidike New Materials Science & Technology Co., Ltd. and an Independent Director of Jiangsu Alcha Aluminium
Group Co., Ltd.
Zhu Panying: Ms. Zhu previously served as a Deputy Manager of the Affairs Department of Suzhou Yangyu Garment Co., Ltd.;
the Personnel Manager of Suzhou Jinlaike Electric Co., Ltd.; the Personnel Manager of Suzhou Gold Mantis Construction Decoration
Co., Ltd., a Vice President of the Business School, and the Human Resources Director. She is currently the Chairman of the
Supervisory Committee of the Company, the Principal of Suzhou Virtues Construction Professional Training School, the Principal of
89
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Virtues Professional Training School of Suzhou Industrial Park, the Principal of Suzhou Gold Mantis Professional Training Sch ool, a
Deputy Dean of Soochow University Gold Mantis School of Architecture and Urban Environment, and the Chairman of the Board of
Shuicheng Ruitong Construction and Development Co., Ltd.
Qian P ing: Ms. Qian was previously the Audit Supervisor of Jiangsu Tiandi Steel Structure Engineering Group Co., Ltd., the
Audit Manager of Suzhou Gold Mantis Construction Decoration Co., Ltd., the Chairman of the Supervisory Committee of Suzhou
Gold Mantis Culture Development Co., Ltd., and a Supervisor of Suzhou Gold Mantis Landscape Co., Ltd. Currently, she serves a s a
Supervisor of the Company, a Supervisor of Suzhou Gold Gain Investment Co., Ltd., a Supervisor of Suzhou Gold Mantis
Investment Co., Ltd., a Supervisor of Gold Mantis Construction Engineering Co., Ltd. in Suzhou Industrial Park, a Supervisor of
Suzhou Jinhu Property Development Co., Ltd., a Supervisor of Suzhou Gold Mantis Charity Foundation, a Supervisor of Suzhou
Gold Mantis 3D Software Co., Ltd., a Supervisor of Gold Mantis Prefabricated Construction Technology (Suzhou) Co., Ltd., a
Supervisor of Suzhou Gold Mantis Construction Investment Co., Ltd., a Supervisor of Gold Mantis Refined Decoration &
Technology (Suzhou) Co., Ltd., a Supervisor of Gold Mantis Home Decoration E-commerce (Suzhou) Co., Ltd., a Supervisor of
Gold Mantis Supply Chain Management (Suzhou) Co., Ltd., a Supervisor of Suzhou Jinnuo Commercial Factoring Co., Ltd., a
Supervisor of Suzhou LJT Intelligent Technology Co., Ltd., a Supervisor of Suzhou Nuojin Investment Co., Ltd., a Supervisor of
Suzhou Nuojin Finance Lease Co., Ltd., a Supervisor of Guangzhou Jinnuo Microfinance Co., Ltd., a Supervisor of Gold Mantis Art
Co., Ltd., and a Supervisor of Jintang Capital Holding Co., Ltd.
Zhang Jun: Mr. Zhang was previously the Manager of the Engineering Department III of Suzhou Gold Mantis Construction
Decoration Co., Ltd. and the General Manager of Suzhou Gold Mantis Landscape Co., Ltd. Currently, he serves as a Supervisor of
the Company, a Vice President of Suzhou Society of Landscape Architecture, the Chairman of the Board and General Manager of
Suzhou Gold Mantis Landscape Co., Ltd., and an Executive Director of Jiangsu Gold Mantis Horticultural Co., Ltd.
Wang Hong: Mr. Wang previously served as a Director of the Auditing Firm of Mingguang City, Anhui Province; a member of
the Party Committee Organization of Nushanhu Town, Mingguang City, Anhui Province; the Financial Manager of Beijing Zhongshi
Dadi Advertising Co., Ltd.; an Audit Specialist of Shanghai Fosun Industrial Co., Ltd., the Chief Financial Officer of its subsidiary;
the Chief Financial Officer of Pacific Construction Group; a Director of Suzhou Meiruide Construction Decoration Co. Ltd.; a
Supervisor of Suzhou Gold Mantis Curtain Wall Co., Ltd. Currently, he is a Deputy General Manager of the Company and a
Supervisor of Suzhou Industrial Park Gold Mantis Furniture Design and Manufacturing Co., Ltd.
Dong Sheng: Mr. Dong was previously a lawyer of Jiangsu Nantong Wanfeng Law Firm, the Legal Manager of Zhongnan
Holding Group Co., Ltd. and the General Manager of the Fund Settlement Center of Suzhou Gold Mantis Construction Decoration
Co., Ltd. Now he serves as a Deputy General Manager of the Company.
Cai Guohua: Mr. Cai previously served as an Audit Specialist of Jiangsu Gongzheng Accounting Firm, the Financial Manager of
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Suzhou Gold Mantis Construction Decoration Co., Ltd., the Chief Financial Officer of Suzhou Gold Mantis Curtain Wall Co., Ltd.,
and the Deputy Chief Financial Officer of Suzhou Gold Mantis Construction Decoration Co., Ltd. Currently, he serves as an Deputy
General Manager and the Chief Financial Officer of the Company, a Director of Suzhou Gold Mantis Construction Investment Co.,
Ltd., and a Director of Suzhou Industrial Park Jindejin Construction Engineering Co., Ltd.
Ning Bo: Mr. Ning previously served as an Audit Specialist of Ernst & Young Hua Ming LLP, a Senior Audit Manager of
Shanghai Youxin Accounting Firm (General Partnership), and the General Manger Assistant of the Company. He is currently a
Deputy General Manager and the Board Secretary of the Company.
Offices held concurrently in shareholding entities:
√ Applicable □ Not applicable
Remuneration or
Office held in Start of office End of office
Name Shareholding entity allowance from the
the entity term term
entity or not
Suzhou Gold Mantis Enterprise (Group)
Zhu Ming President 11 July 2018 Yes
Co., Ltd.
Note N/A
Offices held concurrently in other entities:
√ Applicable □ Not applicable
Remuneration
End of office or allowance
Name Other entity Office held in the entity Start of office term
term from the entity
or not
Wang China Building Decoration
Vice Chairman 15 June 2016 Not
Hanlin Association
Wan Professor, and Doctoral
Soochow University 15 September 1986 Yes
Jieqiu Supervisor
Wan
Nanji E-Commerce Co., Ltd. Independent Director 19 June 2018 18 June 2021 Yes
Jieqiu
Wan 30 November
Freewon China Co., Ltd. Independent Director 1 December 2017 Yes
Jieqiu 2020
Associate Professor of
Yu
Soochow University Accounting, and Master 15 September 1993 Yes
Xuehua
Supervisor
Yu
Jiangsu Shagang Co., Ltd. Independent Director 2 September 2019 22 March 2023 Yes
Xuehua
Yu Jiangsu Hengli Hydraulic Co., 10 September
Independent Director 11 September 2019 Yes
Xuehua Ltd. 2022
Yu Jiangsu Tongrun Equipment
Independent Director 22 May 2018 21 May 2021 Yes
Xuehua Technology Co., Ltd.
Yu General Elevator Co., Ltd. Independent Director 25 March 2019 24 March 2022 Yes
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Xuehua
Zhao Professor of the Business
Soochow University 1 September 2011 Yes
Zengyao School
Zhao Jiangsu Alcha Aluminium Co., 16 September
Independent Director 17 September 2019 Yes
Zengyao Ltd. 2022
Zhao Jiangsu Sidike New Materials 15 November
Independent Director 16 November 2020 Yes
Zengyao Science & Technology Co., Ltd. 2023
Gold Mantis School of
Zhu
Architecture of Soochow Deputy Dean 2 June 2016 Not
Panying
University
Suzhou Society of Landscape
Zhang Jun Vice Chairman 25 March 2015 Not
Architecture
Zhu
JiangSu Decoration Association Executive Director 1 December 2005 Not
Xingquan
Zhu Suzhou Decoration Industry
Vice Chairman 18 May 2005 Not
Xingquan Association
Punishments imposed in the recent three years by the securities regulator on the incumbent directors, supervisors and senior
management as well as those who resigned in the Reporting Period:
□ Applicable √ Not applicable
IV Remuneration of Directors, Supervisors and Senior Management
Decision-making procedure, determination basis and actual payments of remuneration for directors, supervisors and senior
management:
The Company has established a sound performance appraisal system and remuneration policies, conducted regular appraisals on
its directors, supervisors and senior management according to their positions and the Company's performance appraisal mechanism,
and determined their remuneration based on the appraisal status. The remunerations of the Company's directors, supervisors and
senior management are determined on the basis of the business results and performance appraisal indicators of the Company.
Remuneration of directors, supervisors and senior management for the Reporting Period
Unit: RMB'0,000
Total before-tax
Remuneration
remuneration
Name Office title Gender Age Incumbent/Former from any related
from the
party or not
Company
Chairman of the
Wang Hanlin Male 47 Incumbent 100
Board
Director and
Cao Liming Male 42 Incumbent 68
General Manager
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Total before-tax
Remuneration
remuneration
Name Office title Gender Age Incumbent/Former from any related
from the
party or not
Company
Director and
Shi Guoping Executive Deputy Male 43 Incumbent 76.4
General Manager
Zhu Ming Director Male 36 Incumbent Yes
Zhang Xinhong Director Male 43 Incumbent 130.75
Director and
Zhu Xingquan Deputy General Male 57 Incumbent 108
Manager
Independent
Wan Jieqiu Male 66 Incumbent 6
Director
Independent
Yu Xuehua Male 58 Incumbent 6
Director
Independent
Zhao Zengyao Male 58 Incumbent 6
Director
Chairman of the
Zhu Panying Supervisory Female 49 Incumbent 80
Committee
Qian Ping Supervisor Female 54 Incumbent 55
Zhang Jun Supervisor Male 49 Incumbent 101.4
Deputy General
Wang Hong Male 53 Incumbent 63.6
Manager
Deputy General
Dong Sheng Male 45 Incumbent 66
Manager
Deputy General
Manager and
Cai Guohua Male 46 Incumbent 60
Chief Financial
Officer
Deputy General
Ning Bo Manager and Male 39 Incumbent 58
Board Secretary
Total -- -- -- -- 985.15 --
Equity incentives granted to directors and senior management in the Reporting Period:
√ Applicable □ Not applicable
Unit: share
Name Office title Exercisa Exercised Exercise Market Opening Unlocked Restricted Grant Closing
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
ble shares in price of price at the restricted in the shares price restricted
shares in the exercised period-end shares held current granted in (RMB/shar shares held
the Reporting shares in (RMB/shar period the current e)
Reportin Period the e) period
g Period Reporting
Period
(RMB/shar
e)
Wang Chairman of
3,000,000 900,000 0 3.99 2,100,000
Hanlin the Board
Director and
Cao
General 3,000,000 900,000 0 3.99 2,100,000
Liming
Manager
Director and
Executive
Shi
Deputy 3,000,000 900,000 0 3.99 2,100,000
Guoping
General
Manager
Deputy
Wang
General 500,000 150,000 0 3.99 350,000
Hong
Manager
Deputy
Dong
General 500,000 150,000 0 3.99 350,000
Sheng
Manager
Deputy
General
Cai Manager
500,000 150,000 0 3.99 350,000
Guohua and Chief
Financial
Officer
Deputy
General
Ning Bo Manager 500,000 150,000 0 3.99 350,000
and Board
Secretary
Total -- 0 0 -- -- 11,000,000 3,300,000 0 -- 7,700,000
On 9 June 2020, 3.3 million shares held by the Company's directors and senior management and with the
restriction conditions lifted in the first lifting restriction period for the f irst grant portion of the 2018
Notes (if any)
restricted share incentive plan were listed for trading. There were 7.7 million shares remaining to be
unlocked.
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
V Employees
1. Number, Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company as the parent 9,121
Number of in-service employees of principal subsidiaries 5,985
Total number of in-service employees 15,106
Total number of paid employees in the Reporting Period 15,106
Number of retirees to whom the Company as the parent and its
0
principal subsidiaries need to pay retirement pensions
Functions
Function Employees
Production 5,189
Sales 813
Technical 5,494
Financial 291
Administrative 557
Budgets and final accounts 1,683
Others 1,079
Total 15,106
Educational backgrounds
Educational background Employees
Master’s degree and above 271
Bachelor’s degree 7,395
Junior college 5,364
Technical secondary school and below 2,076
Total 15,106
2. Remuneration Policy
The Company has established a sound performance appraisal system and remuneration policies, conducted regular appraisals on
its employees according to the Company's performance appraisal mechanism, and determined their remuneration based on the
appraisal status.
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
3. Training Plans
The Company has been committed to building an internal talent team that can promote transformation and upgrading, and
innovative development, so as to bolster the development of talents for construction decoration and its industrial ecological chain. On
the basis of unifying the Company's corporate culture values, professional skills and the management ability were the main training
dimensions. Besides, behavioral standards and training courses for different positions were developed according to different
categories and ranks. In terms of training implementation, the Company insisted on combining hybrid training suc h as networking,
mobile, game-based and scenario-based training with mentorship and apprenticeship, and creatively carried out a series of learning
programs to promote the application of learning results, practices of performance improvement and organizational reform. By doing
so, employees' professional skills and comprehensive literacy were continuously improved.
4. Labor Outsourcing
□ Applicable √ Not applicable
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Part X Corporate Governance
I General Information of Corporate Governance
During the Reporting Period, the Company continuously improved its corporate governance structure, enhanced its internal
control system, and continued to carry out in-depth corporate governance activities in strict accordance with the requirements in the
Company Law, the Securities Law, the Code of Corporate Governance for Listed Companies , the Rules for Stock Listing of
Shenzhen Stock Exchange, the Guidelines of the Shenzhen Stock Exchange for the Standard Operation of Listed Companies and
other relevant laws and regulations. By doing so, the Company further regulated its operations and improved the level of corporate
governance.
During the Reporting Period, the Company's governance was satisfactory and in compliance with the requirements of the
regulatory documents issued by the CSRC on the governance of listed companies. Details are as follows:
1. Shareholders and General Meetings
The Company formulated the Articles of Association and the Rules of Procedure for General Meetings , and regulated the
procedures for convening, holding, voting at and proposing at general meetings in strict accordance with relevant provisions and
requirements. The Company treated all shareholders equally, improve d the convenience for minority shareholders to attend the
general meetings by providing online voting in accordance with relevant regulations, and separately calculated the voting res ults of
small and medium investors to effectively safeguard their rights and interests. During the Reporting Period, the Company convened
general meetings in accordance with the provisions of the Company Law and the Articles of Association. Moreover, the meetings
were witnessed by lawyers on site.
2. The Company and its Controlling Shareholder
The Company was capable of independent business activities and independent operations, and was independent of the
controlling shareholder in terms of business, personnel, assets, institutions and financial matters. The Board of Directors, the
Supervisory Committee and internal institutions of the Company operated independently. The Company's major decisions were made
by the general meeting in accordance with laws. During the Reporting Period, the controlling shareholder exercised its rights through
the general meeting based on its shareholding in the Company. There was no situation where the controlling shareholder appropriated
the Company's funds, nor any act where the Company provided guarantees for the controlling shareholder and its subs idiaries.
3. Directors and the Board of Directors
The Company elected its directors in strict accordance with the procedures stipulated in the Company Law and the Articles of
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Association of the Company. The Company's Board of Directors consisted of nine directors. There were three independent directors
on the Board, including one accounting professional. During the Reporting Period, the Board of Directors convened and held
meetings of the Board of Directors and general meetings of shareholders in strict accordance with the provisions of the Articles of
Association, the Rules of Procedure of the Board of Directors and the Work Policy for Independent Directors, and carried out the
resolutions of the general meetings. All directors attended the meetings of the Board of Directors and the general meetings in a
serious and rigorous manner, performed their duties diligently and conscientiously, carefully deliberated on the proposals an d
exercised their voting rights. The independent directors were able to independently perform their duties, free from any influence.
4. Supervisors and the Supervisory Committee
The Company elected its supervisors in strict accordance with the procedures stipulated in the Company Law and the Articles of
Association of the Company. There were three supervisors in the Supervisory Committee, including one employee supervisor. The
number and composition of the Supervisory Committee were in compliance with the requirements of laws and regulations. The
supervisors of the Company were able to conscientiously perform their duties in accordance with the requirements of the Rules of
Procedure of the Supervisory Committee, be responsible to the shareholders, and effectively supervise and express their opinions on
the material matters, financial status, related-party transactions, performance of duties by directors and senior managers of the
Company, so as to safeguard the legitimate rights and interests of the Company and its shareholders.
5. Internal Control
In accordance with the requirements of the Company Law, the Securities Law, the relevant regulations of the CSRC and the
Shenzhen Stock Exchange, as well as the Basic Standards for the Internal Control of Enterprises and the supporting guidelines, the
Company formulated management policies such as the Policy on Related-Party Transactions and the Policy on External Guarantees,
and developed definite regulations for corporate governance, information disclosure, preparation of financial reports, relate d-party
transactions, project management, control of monetary assets, control of procurement procedures, seal management and other
important aspects, which provided solid institutional support for the Company to achieve operational efficiency, compliance a nd legal
goals, and goals of strategic development.
6. Stakeholders
The Company fully respected and protected the legitimate rights and interests of all stakeholders, strengthened communication
and exchanges with all parties, took the initiative to assume social responsibilities, and strove to achieve a balance of interests
between the society, shareholders, employees and other parties to jointly promote the sustainable and healthy development of the
Company.
7. Information Disclosure and Transparency
The Company strictly abode by the provisions of relevant laws and regulations. The Securities Department, with the Board
98
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Secretary as the core, disclosed relevant information truthfully, accurately, timely, fairly and completely in accordance with relevant
laws. During the Reporting Period, in addition to disclosing information in light of regulatory requirements, the Company properly
interacted with investors through the investor interactive platform, online results presentation, telephone calls, and reception of
investor research to respond to investors' re levant inquiries and questions in a timely and serious manner. At the same time, the
Company further strengthened regular contact and active communication with regulators and actively reported the relevant matters of
the Company to regulators to ensure more standardized information disclosure of the Company. The Company has designated China
Securities Journal, Shanghai Securities News, STCN (www.stcn.com), Securities Daily and Cninfo (http://www.cninfo.com.cn) as its
information disclosure media to ensure that all shareholders have a fair opportunity to obtain information.
The Company will continue to strengthen its corporate governance, establish a long-term corporate governance mechanism,
effectively protect the interests of investors, and lay a solid foundation for its sustainable, healthy and steady development.
Indicate whether there were any significant differences between the actual situation of the corporate governance of the Compa ny and
the regulatory documents published by the China Securities Regulatory Commission on the governance of listed companies?
□ Yes √ No
No such cases in the Reporting Period.
II Independence of the Company from its Controlling Shareholder on Businesses, Personnel,
Assets, Structure, and Finance
The Company is completely independent of its controlling shareholder in terms of businesses, structure, personnel, finance, a nd
assets and has fully independent businesses and operations. 1. Business: The Company had a complete business system and the
ability to operate independently and directly to the market. Its business was independent of the controlling shareholder, and the re was
no horizontal competition or unfair related-party transactions with the controlling shareholder and its affiliates. 2. Personnel: The
Company had a completely independent personnel and salary system. All senior management of the Company worked for the
Company and received remunerations, and did not hold any positions except for directors and supervisors or receive remunerations
from the controlling shareholder and its subsidiaries. The financial personnel of the Company did not work part-time for the
controlling shareholder or its subsidiaries. 3. Assets: The Company has independent office and business premises, independent land
use rights, housing ownership and other assets, and is equipped with production systems related to its production and operations. It
has legal ownership of equipment related to production and operations, independent procurement and sales systems, and supp orting
facilities. 4. Institutions: The Company has established sound internal institutions for operations and management, which
independently exercised their operation and management functions. There was no institutional mix-up with the controlling
shareholder and its affiliates. 5. Finance: The Company had standardized financial and accounting policies. With independent
financial and accounting departments, full-time accounting personnel and an independent accounting system, it was able to make
99
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
independent financial decisions. The Company opened bank accounts independently and paid taxes independently. There was no
circumstance where the controlling shareholder or any of its affiliates occupy the Company's funds and assets without compens ation.
III Horizontal Competition
□ Applicable √ Not applicable
IV Annual and Extraordinary General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor Index to disclosed
Meeting Type Date of the meeting Disclosure date
participation ratio information
Announcement No.
2020-028 disclosed
The 2019 Annual Annual General
55.72% 15 May 2020 16 May 2020 on
General Meeting Meeting
http://www.cninfo.co
m.cn
2. Extraordinary General Meetings Convened at the Request of Preference Shareholders with Resumed
Voting Rights
□ Applicable √ Not applicable
V Performance of Duty by Independe nt Directors in the Reporting Period
1. Attendance of Independent Directors at Board Meetings and General Meetings
Attendance of independent directors at board meetings and general meetings
Total number The
Board
of board Board Board independent
Board meetings
meetings the meetings meetings the director failed General
Independent meetings attended by
independent attended independent to attend two meetings
director attended on way of
director was through a director failed consecutive attended
site telecommunica
eligible to proxy to attend board meetings
tion
attend or not
Yu Xuehua 4 4 0 0 0 Not 1
Wan Jieqiu 4 4 0 0 0 Not 1
Zhao Zengyao 4 4 0 0 0 Not 1
Explanation of why any independent director failed to attend two consecutive board meetings:
No such cases.
100
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
2. Objections Raised by Independent Directors on Matters of the Company
Indicate whether any independent directors raised any objections on any matter of the Company.
□ Yes √ No
No such cases in the Reporting Period.
3. Other Information about the Performance of Duty by Independent Directors
Indicate whether any suggestions from independent directors were adopted by the Company.
√ Yes □ No
Explanation on adoption/rejection of recommendations of independent directors:
During the Reporting Period, the independent directors of the Company were able to perform their duties faithfully and
diligently in accordance with the relevant laws and regulations, actively attended the meetings of the Board of Directors and general
meetings of the Company, carefully reviewed the proposals for each meeting of the Board of Directors of the Company, and carefully
and prudently put forward their independent opinions. In addition, the independent directors of the Company regularly grasped the
operating updates of the Company and made valuable suggestions on the development of internal control, audit work and busines s
development planning of the Company.
VI Duty Performance of Special Committees under the Board of Directors during the
Reporting Period
1. Remuneration and Appraisal Committee
The Remuneration and Appraisal Committee held two meetings to study and review the remuneration allocation system of the
Company, and reviewed the performance appraisal mechanism and remuneration allocation plan for directors and senior
management. The committee members discussed the removal of trading restrictions on restricted shares in the first grant portion of
the Company's 2018 restricted shares, believed that the conditions for the removal of restrict ions were in compliance with the
regulations, and agreed with the repurchase and cancellation of the restricted shares of some resigned employees.
2. Audit Committee
The Audit Committee held six meetings to supervise and evaluate the design and implementat ion of important measures for
internal control and risk management of the Company, and supervised and inspected major decision-making matters of the Company.
It examined the internal audit of the Company and appropriately supervised the external audit, rev iewed the work reports prepared by
the Audit Department, reviewed the annual original financial statements prepared by the Company, communicated with the
accountant to determine the time of the annual audit and the audit schedule, and reviewed the financia l statements with the
preliminary audit opinions issued by the accountant.
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
3. Nomination Committee
The Nomination Committee held a meeting, searched for and reviewed candidates for additional directors and nominated
candidates for additional directors.
4. Strategy Committee
The Strategy Committee held a meeting to summarize the Company's business situation and put forward a plan for future
development.
VII Performance of Duty by the Supervisory Committee
Indicate whether the Supervisory Committee identified any risk to the Company during its supervision in the Reporting Period.
□ Yes √ No
The Supervisory Committee raised no objections with respect to matters of the Company.
VIII Appraisal of and Incentive for Senior Management
The Company established a performance appraisal, incentive and restraint mechanism which linked the remunerations of senior
management with its business results, implemented a remuneration appraisal system combining the basic annual salary and year-end
performance appraisal, and conducted an annual performance appraisal at the end of the year based on the completion of its an nual
operation targets and the performance of senior managements. The Company granted annual performance salaries based on the
results of the performance appraisal, and rewarded and punished relevant persons. The Company has implemented the First Stock
Option Incentive Plan. The awardees of the first stock option incentive plan (senior managements and core elites/business personnel)
have exercised their first, second and third stock options. The Company implemented the "Jincheng No. 1" Employee Stock
Ownership Plan to offer stock ownership incentives to eligible employees. The plan has been implemented and terminated, and the
property liquidation and distribution have been completed. The Company implemented the Company's 2018 Restricted Share
Incentive Plan to grant restricted shares to awardees by means of the targeted issue of new stocks, and set the performance appraisal
requirements at the corporate level and the performance appraisal requirements for individual awardees.
The implementation of the stock option incentive plan, restricted share incentive plan and employee stock ownership plan
effectively stimulated the enthusiasm of managers, core elites and employees, and played a positive role in retaining the existing
excellent managers and business elites and attracting outstanding external talents, so as to better promote the long-term and stable
development of the Company.
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
IX Internal Control Assessment Report
1. Significant Defects in Internal Control Identified during the Reporting Period
□ Yes √ No
2. Internal Control Self-Assessment Report
Date of disclosure of the full
30 April 2021
internal control assessment report
Index of full disclosure of the
http://www.cninfo.com.cn
internal control assessment report
Ratio of the total assets of the
organizations included in the
100.00%
assessment to the Company's
consolidated total assets
Ratio of the operating revenue of
the organizations included in the
assessment to the Company's 100.00%
operating revenue in the
consolidated financial statements
Deficiency identification criteria
Category Financial report Non-financial report
In case of the following circumstances (including but In case of the following circumstances, it
not limited to such circumstances), it shall be deemed shall be deemed that there are "material
that a financial report contains material deficiencies: (1) deficiencies": (1) Lack of democratic
Fraudulent conduct by directors, supervisors and senior decision-making procedures, or
managements of the Company; (2) Correction of a unreasonable decision-making
published financial report by the Company; (3) procedures, which lead to serious
Significant misstatement in the financial report of the mistakes and cause the Company major
year identified by a certified public accountant but not property losses; (2) Serious violation of
identified during the Company's internal control audit; national laws and regulations; (3) Lack
Qualitative criteria (4) Invalid supervision of the Audit Committee and the of important business management
Audit Department over the Company's external policies, or ineffective systematic
financial reports and internal control of financial functioning of policies; (4) Untimely
reports. In case of the following circumstances remediation of the Company's material
(including but not limited to such circumstances), it or significant internal control
shall be deemed that there are "significant deficiencies" deficiencies; (5) Constant or massive
or obvious signs of "significant deficiencies": (1) occurrence of significant internal control
Failure to select or apply accounting policies in deficiencies in the Company. In case of
accordance with the Accounting Standards for Business other circumstances, the deficiencies
Enterprises; (2) Failure to develop anti-fraud shall be determined as important or
103
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
procedures and control measures; (3) Lack of general deficiencies according to the
corresponding control mechanism for accounting degree of influence.
treatment of unconventional or special transactions, or
failure to implement the mechanism and take
corresponding compensatory control measures; (4) One
or more deficiencies in the control of the financial
reporting at the end of the period and failure to
reasonably ensure true and accurate statements in the
financial report. General deficiencies refer to the
control deficiencies other than material and significant
deficiencies mentioned above.
If a deficiency has a direct or potential
If there is a reasonable possibility that a single internal negative influence that may cause direct
control deficiency, or an internal control deficiency property losses equivalent to or
together with several deficiencies may lead to exceeding 3% of the net profit
circumstances where misstatements cannot be timely attributable to shareholders of the listed
prevented or identified and remedied and relate to an company, the deficiency shall be deemed
amount equivalent to or exceeding 5% of the year's as a material deficiency. If a deficiency
gross profit, the deficiency shall be deemed as a has a direct or potential negative
material deficiency. If there is a reasonable possibility influence that may cause direct property
that a single internal control deficiency, or an internal losses equivalent to or exceeding 1% but
Quantitative criteria
control deficiency together with several deficiencies less than 3% of the net profit attributable
may lead to circumstances where misstatements cannot to shareholders of the listed company, the
be timely prevented or identified and remedied and deficiency shall be deemed as a
relate to an amount equivalent to or exceeding 3% of significant deficiency. If a deficiency has
the year's gross profit but less than 5% of the year's a direct or potential negative influence
gross profit, the deficiency shall be deemed as a that may cause direct property losses less
significant deficiency. Internal control deficiencies than 1% of the net profit attributable to
which do not constitute material or significant shareholders of the listed company, the
deficiencies shall be deemed as general deficiencies. deficiency shall be deemed as a general
deficiency.
Number of material deficiencies
0
in financial reports
Number of material deficiencies
0
in non-financial reports
Number of significant
0
deficiencies in financial reports
Number of significant
deficiencies in non-financial 0
reports
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
X CPA Firm’s Audit or Assurance Report on Internal Control
Assurance report on internal control:
Opinion paragraph
Gold Mantis maintained, in all material respects, effective internal control over financial reporting as of 31 December 2020, based
on the Basic Rules on Enterprise Internal Control issued by the Ministry of Finance and other applicable rules.
Assurance report on internal control
Disclosed
disclosed or not
Disclosure date 30 April 2021
The Assurance Report on Internal Control disclosed by the Company on
Index to the disclosed report
http://www.cninfo.com.cn/ dated 30 April 2021
Type of opinion Unmodified unqualified opinion
Material weakness in internal
control not related to financial None
reporting
Indicate whether any modified opinion is expressed in the Assurance Report on Internal Control.
□ Yes √ No
Indicate whether the Assurance Report on Internal Control is consistent with the internal control self-evaluation report issued by the
Company’s Board of Directors.
√ Yes □ No
105
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Part XI Corporate Bonds
Does the Company have any corporate bonds publicly offered on the stock exchange, which were outstanding before the date of t his
Report’s approval or were due but could not be redeemed in full?
No.
106
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Part XII Financial Statements
I Independent Auditor’s Report
Type of the independent auditor’s opinion Unmodified unqualified opinion
Date of signing the independent auditor’s report 28 April 2021
Name of the independent auditor RSM China
Number of the independent auditor’s report RSM China Audit Report [2021] No. 230Z0598
Names of the certified public accountants Song Wen, Hong Zhiguo, and Long Bing
Independent Auditor’s Report
To the Shareholders of Suzhou Gold Mantis Construction Decoration Co., Ltd.
I Opinion
We have audited the financial statements of Suzhou Gold Mantis Construction Decoration Co., Ltd. (the “Company” ), which
comprise the consolidated and parent company (the Company as the parent exclusive of subsidiaries) balance sheets as at 31
December 2020, the consolidated and parent company statements of income, cash flows and changes in owners’ equity for the year
then ended, as well as the notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated and parent
company financial position of the Company at 31 December 2020, and the consolidated and parent company operating results and
cash flows for the year then ended, in conformity with the Chinese Accounting Standards (CAS).
II Basis for Opinion
We conducted our audits in accordance with the Audit Standards for Chinese Registered Accountants. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for Audit of Financial Statements section of our report. We are
independent of the Company in accordance with the China Code of Ethics for Certified Public Accountants, and we have fulfilled our
other ethical responsibilities in accordance with the said Code of Ethics. We believe that the audit evidence we have obtaine d is
sufficient and appropriate to provide a basis for our opinion.
III Key Audit Matters
Key audit matters are matters that, based on our professional judgment, are deemed most important to the audit of the financial
statements of the current period. These matters were addressed in the context of our audit of the financia l statements as a whole, and
in forming our opinion thereon, and we do not provide a separate opinion on these matters.
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(I) Recognition of Contract Revenue
1. Description
According to the notes to the financial statements including "III. 28 Revenue Recognition Principles and Measurement
Methods" and "V. 40 Operating Revenue and Cost of Sales", Gold Mantis's revenue from construction decoration services amounte d
to RMB30,117,163,000, accounting for 96.40% of its operating revenue. The amount of revenue from construction decoration
services as well as its ratio to the operating revenue were both material.
Regarding the construction decoration services provided by it, Gold Mantis recognized relevant revenue within a certain perio d
of time according to the contract performance progress. The contract performance progress was recognized by the ratio of the actual
contract cost for previous contract fulfillment to the projected total cost. The Management of Gold Mantis (hereinafter referred to as
the Management) sha ll reasonably estimate the total contract revenue and total contract cost of the project at the beginning to
determine the progress, and constantly evaluate and revise major accounting estimations related to the Management during the
contract implementation. Therefore, we regarded the recognition of contract revenue as a key audit matter.
2. Audit Response
Major audit procedures we performed for contract revenue recognition include the following:
(1) Test key internal control procedures related to contract budgeting and revenue recognition.
(2) Recalculate the progress in the project's contract ledger to verify its accuracy.
(3) Extract significant project construction contracts, check the total contract revenue, review key contract provisions, and
perform confirmation procedures on the contract status.
(4) Examine the contract and cost budget information on which the Management's projected total revenue and projected total
cost are based, and evaluate the reasonableness of the estimations made by the Management and adequacy of the basis.
(5) Select a sample to test contract costs incurred during the year.
(6) Select engineering projects, conduct on-site inspections of the visual progress of the projects, discuss with the engineering
management departments to confirm the progress of the projects, and compare with the progress of contract recognition in the books
to analyze the reasons for differences.
(7) Carry out analytical review of the fluctuation of the contract revenue, cost and gross margin of major projects.
(II) Recoverability of Accounts Receivable
1. Description
According to the notes to the financial statements including "III. 10 Financial Instruments" and "V. 4 Accounts Receivable", as
at 31 December 2020, the gross amount of accounts receivable in the consolidated financial statements of Gold Mantis was
RMB15,470,608,800 and the total amount of allowances for doubtful accounts receivable was RMB1,952,818,800 in total. The
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Company set aside loss allowances for accounts receivable according to the lifetime expected credit losses, divided accounts
receivable into several groups by their risk characteristics, and calculated the expected credit losses based on the groups. Since this
matter related to the major accounting estimations and judgments applied by the Management and the recoverability of accounts
receivable were vital to the financial statements, therefore, we regarded the recoverability of accounts receivable as a key audit
matter.
2. Audit Response
Major audit procedures we performed for recoverability of accounts receivable include the following:
(1) Learn about the Management's key internal control measures for financial reporting related to credit control, recovery of
accounts, and assessment of the impairment allowances for receivables, and evaluate the design and operating effectiveness of these
internal control measures.
(2) Assess the accuracy of the methods, inputs and assumptions used by the Management in calculating the impairment
allowances for receivables, and review the adequacy of the allowances for doubtful accounts.
(3) Obtain and examine contracts of major customers to understand the contractual settlement policies and conduct comparative
analysis of them and the credit policies actually implemented.
(4) Review the Management's considerations and objective evidence related to the assessment of the recoverability of accounts
receivable.
(5) Retrieve the industrial and commercial records or inquire the industrial and commercial information of major customer s in
the national enterprise credit information publicity system, examine the aging of accounts receivable and repayment histories , and
assess whether the recoverability of accounts receivable is affected by the financial problems of the counterparties.
(6) Check the litigation situation within the Reporting Period, and learn about the recovery status of corresponding accounts
receivable and the allowances for doubtful accounts.
(7) Evaluate the reasonableness of the Management's establishment of allowances for doubtful accounts in relation to the
accounts receivable for which the Management set aside the allowances for doubtful accounts according to the groups by credit risk
characteristics, and give consideration to the credit risk characteristics and aging analysis during the evaluation.
(8) Implement confirmation procedures and post-recovery checks to evaluate the reasonableness of the Management's
establishment of allowances for doubtful accounts.
IV Other Information
The Company’s management is responsible for the other information. The other information comprises all of the information
included in the Company’s 2020 Annual Report other than the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing s o,
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit
or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other informat ion, we are
required to report that fact. We have nothing to report in this regard.
V Responsibilities of Management and Those Charged with Governance for Financial Statements
The Company’s management is responsible for the preparation of the financial statements that give a fair view in accordance
with CAS, and for designing, implementing and maintaining such internal control as the management determines is necessary to
enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
management either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting proce ss.
VI Auditor’s Responsibilities for Audit of Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with CAS will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with CAS, we exercise professional judgment and maintain professional skepticism throughout
the audit. We also:
(I) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(II) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal controls.
(III) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the management.
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(IV) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required by CAS to draw
users’ attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Company to cease to continue as a going concern.
(V) Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
(VI) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within
the Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performa nce of
the Company audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any noteworthy deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on
our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance
in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstanc es, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Suzhou Gold Mantis Construction Decoration Co., Ltd.
31 December 2020
Unit: RMB
Item 31 December 2020 31 December 2019
Current assets：
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Monetary assets 6,372,631,845.72 6,077,758,993.30
Settlement reserve
Loans to other banks and financial
institutions
Held-for-trading financial assets 2,172,086,741.05 1,694,650,654.74
Derivative financial assets
Notes receivable 8,834,516,728.65 4,365,558,567.45
Accounts receivable 13,517,789,956.57 22,003,095,138.84
Receivables financing 275,822,920.18 261,530,861.26
Prepayments 184,622,237.74 287,524,499.91
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 238,574,992.82 248,803,300.64
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 53,841,882.04 101,344,129.28
Contract assets 8,776,903,224.25
Assets held for sale
Current portion of non-current
89,386,364.69 31,381,819.35
assets
Other current assets 113,007,717.52 116,384,039.46
Total current assets 40,629,184,611.23 35,188,032,004.23
Non-current assets：
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables 1,528,021,000.84 1,438,636,412.30
Long-term equity investments 225,124.06 22,838,423.66
Investments in other equity
instruments
Other non-current financial assets 512,022,000.00 444,022,000.00
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Investment property 135,295,908.94 78,250,561.70
Fixed assets 892,169,838.74 910,175,452.03
Construction in progress 41,215,785.57 71,905,579.25
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 89,542,508.36 109,105,821.09
Development costs
Goodwill 408,055,407.05 435,818,777.74
Long-term prepaid expense 49,904,354.32 157,443,245.55
Deferred income tax assets 438,241,669.12 415,401,109.41
Other non-current assets 279,435,220.04 201,762,268.01
Total non-current assets 4,374,128,817.04 4,285,359,650.74
Total assets 45,003,313,428.27 39,473,391,654.97
Current liabilities：
Short-term borrowings 714,363,172.85 875,691,128.75
Borrowings from the central bank
Loans from other banks and
financial institutions
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable 4,871,222,687.68 4,602,520,476.92
Accounts payable 17,046,906,908.50 13,279,769,499.13
Advances from customers 790,724,499.17
Contract liabilities 818,343,554.80
Financial assets sold under
repurchase agreements
Customer deposits and deposits
from other banks and financial
institutions
Payables for acting trading of
securities
Payables for underwriting of
securities
Employee benefits payable 1,700,769,141.23 1,748,073,732.96
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Taxes and levies payable 216,975,877.33 256,606,598.88
Other payables 299,482,436.62 593,947,128.96
Including: Interest payable
Dividends payable 10,574,000.00 6,620,000.00
Fees and commissions payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
51,083,934.28 22,000,000.00
liabilities
Other current liabilities 1,297,749,046.76 1,062,569,828.91
Total current liabilities 27,016,896,760.05 23,231,902,893.68
Non-current liabilities：
Insurance contract reserve
Long-term borrowings 836,918,353.34 838,561,722.30
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
Deferred income tax liabilities 4,163,618.41 2,931,338.35
Other non-current liabilities
Total non-current liabilities 841,081,971.75 841,493,060.65
Total liabilities 27,857,978,731.80 24,073,395,954.33
Owners’ equity：
Share capital 2,683,358,689.00 2,676,408,689.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserves 368,723,316.20 342,175,389.87
Less: Treasury shares 121,595,650.00 132,069,000.00
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Other comprehensive income -7,462,575.66 57,504,092.23
Specific reserve
Surplus reserves 1,360,431,738.20 1,358,670,354.99
General reserve
Retained earnings 12,725,196,506.07 10,853,403,316.80
Total equity attributable to owners of
17,008,652,023.81 15,156,092,842.89
the Company as the parent
Non-controlling interests 136,682,672.66 243,902,857.75
Total owners’ equity 17,145,334,696.47 15,399,995,700.64
Total liabilities and owners’ equity 45,003,313,428.27 39,473,391,654.97
Legal representative: Wang Hanlin Head of accounting affairs: Cai Guohua Head of the accounting department: Cai Guohua
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2020 31 December 2019
Current assets：
Monetary assets 4,157,896,016.45 3,236,414,236.21
Held-for-trading financial assets 891,634,191.47 1,177,233,688.22
Derivative financial assets
Notes receivable 5,603,812,080.85 2,720,966,717.92
Accounts receivable 9,578,054,598.29 15,070,584,579.15
Receivables financing 211,831,423.35 227,611,894.42
Prepayments 109,893,040.95 67,179,176.34
Other receivables 335,745,131.01 369,029,544.53
Including: Interest receivable
Dividends receivable 40,000,000.00 40,000,000.00
Inventories 465,048.33 2,108,652.15
Contract assets 5,258,632,942.40
Assets held for sale
Current portion of non-current
assets
Other current assets 256,087.10 141,935.84
Total current assets 26,148,220,560.20 22,871,270,424.78
Non-current assets：
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 2,504,132,432.26 2,450,189,252.52
Investments in other equity
instruments
Other non-current financial assets 512,022,000.00 444,022,000.00
Investment property 113,286,785.38 92,392,476.23
Fixed assets 720,890,710.89 725,719,586.11
Construction in progress 40,535,876.61 50,987,676.95
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 28,715,614.95 31,263,899.40
Development costs
Goodwill
Long-term prepaid expense 33,042,253.63 36,115,310.40
Deferred income tax assets 292,343,099.89 269,961,767.22
Other non-current assets 112,297,729.01 90,447,503.15
Total non-current assets 4,357,266,502.62 4,191,099,471.98
Total assets 30,505,487,062.82 27,062,369,896.76
Current liabilities：
Short-term borrowings 92,385,970.13 454,870,134.35
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable 2,600,907,620.27 2,524,818,850.29
Accounts payable 10,747,889,172.00 8,227,541,063.77
Advances from customers 325,775,470.52
Contract liabilities 449,649,019.21
Employee benefits payable 1,300,435,009.72 1,377,238,718.10
Taxes and levies payable 111,246,421.74 94,928,342.32
Other payables 150,784,450.66 489,198,564.99
Including: Interest payable
Dividends payable 10,574,000.00 6,620,000.00
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities
Other current liabilities 949,026,505.13 810,122,476.37
Total current liabilities 16,402,324,168.86 14,304,493,620.71
Non-current liabilities：
Long-term borrowings
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
Deferred income tax liabilities 245,128.72 185,053.23
Other non-current liabilities
Total non-current liabilities 245,128.72 185,053.23
Total liabilities 16,402,569,297.58 14,304,678,673.94
Owners’ equity：
Share capital 2,683,358,689.00 2,676,408,689.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserves 464,113,394.70 437,549,701.78
Less: Treasury shares 121,595,650.00 132,069,000.00
Other comprehensive income
Specific reserve
Surplus reserves 1,360,431,738.20 1,358,670,354.99
Retained earnings 9,716,609,593.34 8,417,131,477.05
Total owners’ equity 14,102,917,765.24 12,757,691,222.82
Total liabilities and owners’ equity 30,505,487,062.82 27,062,369,896.76
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
3. Consolidated Income Statement
Unit: RMB
Item 2020 2019
1. Revenues 31,243,227,802.04 30,834,654,530.30
Including: Operating revenue 31,243,227,802.04 30,834,654,530.30
Interest income
Insurance premium income
Fee and commission income
2. Costs and expenses 28,234,372,648.30 27,926,731,277.92
Including: Cost of sales 26,058,435,143.23 25,164,792,617.65
Interest expense
Fee and commission expense
Surrenders
Net insurance claims paid
Net amount provided as
insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
expense
Taxes and levies 108,178,512.22 94,606,201.19
Selling expense 375,964,501.30 650,794,185.74
Administrative expense 604,846,088.47 1,001,785,370.49
R&D expense 955,782,334.18 879,866,123.50
Finance costs 131,166,068.90 134,886,779.35
Including: Interest expense 145,524,591.79 142,341,566.80
Interest income 41,474,553.83 26,670,537.36
Add: Other income 54,684,095.82 19,660,084.94
Return on investment (“－” for
37,648,383.31 33,199,676.51
loss)
Including: Share of profit or
-9,556,696.62 -6,162,676.00
loss of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Exchange gain (“－” for loss)
Net gain on exposure hedges
(“－” for loss)
Gain on changes in fair value
-723,913.69 -59,789,345.26
(“－” for loss)
Credit impairment loss (“－”
-452,355,161.86 -205,096,377.78
for loss)
Asset impairment loss (“－” for
66,073,084.77 -3,651.14
loss)
Asset disposal income (“－”
114,042.29 -1,219,850.07
for loss)
3. Operating profit (“－” for loss) 2,714,295,684.38 2,694,673,789.58
Add: Non-operating income 285,660.49 4,950,546.95
Less: Non-operating expense 4,298,740.33 4,533,450.34
4. Gross profit (“－” for gross loss) 2,710,282,604.54 2,695,090,886.19
Less: Income tax expense 369,673,831.88 434,386,321.47
5. Net profit (“－” for net loss) 2,340,608,772.66 2,260,704,564.72
5.1 By operating continuity
5.1.1 Net profit from continuing
2,340,608,772.66 2,260,704,564.72
operations (“－” for net loss)
5.1.2 Net profit from discontinued
operations (“－” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
2,373,915,319.52 2,349,395,605.96
owners of the Company as the parent
5.2.2 Net profit attributable to
-33,306,546.86 -88,691,041.24
non-controlling interests
6. Other comprehensive income, net of
-67,210,472.64 19,359,395.45
tax
Other comprehensive income, net of
tax attributable to owners of the -64,966,667.89 23,261,261.16
Company as the parent
6.1 Other comprehensive income
that will not be reclassified to profit or
loss
6.1.1 Changes caused by
remeasurements on defined benefit
schemes
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
6.1.2 Other comprehensive
income that will not be reclassified to
profit or loss under the equity method
6.1.3 Changes in the fair
value of investments in other equity
instruments
6.1.4 Changes in the fair
value arising from changes in own credit
risk
6.1.5 Others
6.2 Other comprehensive income
-64,966,667.89 23,261,261.16
that will be reclassified to profit or loss
6.2.1 Other comprehensive
income that will be reclassified to profit
or loss under the equity method
6.2.2 Changes in the fair
value of other debt investments
6.2.3 Other comprehensive
income arising from the reclassification
of financial assets
6.2.4 Credit impairment
allowance for other debt investments
6.2.5 Reserve for cash flow
hedges
6.2.6 Differences arising
from the translation of foreign
-64,966,667.89 23,261,261.16
currency-denominated financial
statements
6.2.7 Others
Other comprehensive income, net of
tax attributable to non-controlling -2,243,804.75 -3,901,865.71
interests
7. Total comprehensive income 2,273,398,300.02 2,280,063,960.17
Total comprehensive income
attributable to owners of the Company as 2,308,948,651.63 2,372,656,867.12
the parent
Total comprehensive income
-35,550,351.61 -92,592,906.95
attributable to non-controlling interests
8. Earnings per share：
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
8.1 Basic earnings per share 0.88 0.88
8.2 Diluted earnings per share 0.89 0.88
Where business combinations involving entities under common control occurred in the current period, the net profit achieved by the
acquirees before the combinations was RMB , with the amount for last year being RMB .
Legal representative: Wang Hanlin Head of accounting affairs: Cai Guohua Head of the accounting department: Cai Guohua
4. Income Statement of the Company as the Parent
Unit: RMB
Item 2020 2019
1. Operating revenue 19,488,441,946.54 18,407,435,161.21
Less: Cost of sales 16,086,748,755.05 14,958,708,586.59
Taxes and levies 70,254,919.85 55,820,655.17
Selling expense 215,311,596.91 213,708,147.95
Administrative expense 207,882,651.82 311,841,065.34
R&D expense 630,431,222.68 581,507,156.73
Finance costs 21,814,116.30 30,275,095.10
Including: Interest expense 39,834,849.73 41,481,410.00
Interest income 25,703,322.50 12,746,149.65
Add: Other income 7,225,891.98 10,536,596.42
Return on investment (“－”
22,017,920.22 144,357,442.83
for loss)
Including: Share of profit or
-2,390,420.50 -4,226,587.96
loss of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost (“－” for loss)
Net gain on exposure hedges
(“－” for loss)
Gain on changes in fair value
400,503.25 -62,766,311.78
(“－” for loss)
Credit impairment loss (“－”
-274,434,880.37 -99,321,459.92
for loss)
Asset impairment loss (“－”
60,930,272.68
for loss)
Asset disposal income (“－”
1,244.46 -137,414.85
for loss)
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
2. Operating profit (“－” for loss) 2,072,139,636.15 2,248,243,307.03
Add: Non-operating income 17,608.54 1,793,615.46
Less: Non-operating expense 3,460,122.37 3,544,219.28
3. Gross profit (“－” for gross loss) 2,068,697,122.32 2,246,492,703.21
Less: Income tax expense 248,609,717.13 271,729,104.10
4. Net profit (“－” for net loss) 1,820,087,405.19 1,974,763,599.11
4.1 Net profit from continuing
1,820,087,405.19 1,974,763,599.11
operations (“－” for net loss)
4.2 Net profit from discontinued
operations (“－” for net loss)
5. Other comprehensive income, net of
tax
5.1 Other comprehensive income
that will not be reclassified to profit or
loss
5.1.1 Changes caused by
remeasurements on defined benefit
schemes
5.1.2 Other comprehensive
income that will not be reclassified to
profit or loss under the equity method
5.1.3 Changes in the fair
value of investments in other equity
instruments
5.1.4 Changes in the fair
value arising from changes in own
credit risk
5.1.5 Others
5.2 Other comprehensive income
that will be reclassified to profit or loss
5.2.1 Other comprehensive
income that will be reclassified to profit
or loss under the equity method
5.2.2 Changes in the fair
value of other debt investments
5.2.3 Other comprehensive
income arising from the reclassification
of financial assets
122
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
5.2.4 Credit impairment
allowance for other debt investments
5.2.5 Reserve for cash flow
hedges
5.2.6 Differences arising
from the translation of foreign
currency-denominated financial
statements
5.2.7 Others
6. Total comprehensive income 1,820,087,405.19 1,974,763,599.11
7. Earnings per share：
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2020 2019
1. Cash flows from operating activities:
Proceeds from sale of goods and
28,786,537,582.19 28,351,807,710.20
rendering of services
Net increase in customer deposits
and deposits from other banks and
financial institutions
Net increase in borrowings from
the central bank
Net increase in loans from other
financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Interest, fees and commissions
received
Net increase in loans from other
banks and financial institutions
Net increase in proceeds from
123
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
repurchase transactions
Net proceeds from acting trading
of securities
Tax and levy rebates 1,284,072.45
Cash generated from other
93,168,696.84 309,362,695.48
operating activities
Subtotal of cash generated from
28,880,990,351.48 28,661,170,405.68
operating activities
Payments for goods and services 22,055,723,564.18 21,861,009,207.12
Net increase in loans and advances
to customers
Net increase in deposits in the
central bank and other banks and
financial institutions
Payments for claims on original
insurance contracts
Net increase in loans to other
banks and financial institutions
Interest, fees and commissions
paid
Policy dividends paid
Cash paid to and for employees 3,079,182,809.78 3,307,568,892.12
Taxes and levies paid 1,437,637,805.83 1,272,742,487.76
Cash used in other operating
531,330,929.53 464,629,835.97
activities
Subtotal of cash used in operating
27,103,875,109.32 26,905,950,422.97
activities
Net cash generated from/used in
1,777,115,242.16 1,755,219,982.71
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 10,750,380,711.98 15,990,497,000.00
Return on investment 36,709,817.00 71,824,868.85
Net proceeds from the disposal of
fixed assets, intangible assets and other 10,427,451.26 15,604,661.15
long-term assets
Net proceeds from the disposal of
18,588,895.83 6,979,638.34
subsidiaries and other business units
Cash generated from other 40,803,606.39 28,232,114.75
124
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
investing activities
Subtotal of cash generated from
10,856,910,482.46 16,113,138,283.09
investing activities
Payments for the acquisition and
construction of fixed assets, intangible 156,882,830.00 234,621,611.98
assets and other long-term assets
Payments for investments 11,272,570,711.98 14,508,833,700.00
Net increase in pledged loans
granted
Net payments for the acquisition of
1,155,000.00 1,155,000.00
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
11,430,608,541.98 14,744,610,311.98
activities
Net cash generated from/used in
-573,698,059.52 1,368,527,971.11
investing activities
3. Cash flows from financing activities:
Capital contributions received 12,097,000.00
Including: Capital contributions by
non-controlling interests to subsidiaries
Borrowings received 1,152,731,644.19 1,513,451,675.11
Cash generated from other
8,947,438.58
financing activities
Subtotal of cash generated from
1,173,776,082.77 1,513,451,675.11
financing activities
Repayment of borrowings 1,286,050,226.89 960,980,251.99
Interest and dividends paid 684,834,689.56 675,762,948.06
Including: Dividends paid by
subsidiaries to non-controlling interests
Cash used in other financing
25,511,610.47
activities
Subtotal of cash used in financing
1,970,884,916.45 1,662,254,810.52
activities
Net cash generated from/used in
-797,108,833.68 -148,803,135.41
financing activities
4. Effect of foreign exchange rate
-103,159,005.40 7,342,160.41
changes on cash and cash equivalents
125
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
5. Net increase in cash and cash
303,149,343.56 2,982,286,978.82
equivalents
Add: Cash and cash equivalents,
6,051,660,327.62 3,069,373,348.80
beginning of the period
6. Cash and cash equivalents, end of the
6,354,809,671.18 6,051,660,327.62
period
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item 2020 2019
1. Cash flows from operating activities:
Proceeds from sale of goods and
18,436,592,629.73 16,825,060,500.01
rendering of services
Tax and levy rebates 1,284,072.45
Cash generated from other
43,713,301.52 321,241,968.44
operating activities
Subtotal of cash generated from
18,481,590,003.70 17,146,302,468.45
operating activities
Payments for goods and services 13,571,164,135.69 12,923,688,852.58
Cash paid to and for employees 1,913,288,537.87 1,704,660,273.86
Taxes and levies paid 899,383,766.94 721,116,299.74
Cash used in other operating
381,796,864.00 108,175,930.61
activities
Subtotal of cash used in operating
16,765,633,304.50 15,457,641,356.79
activities
Net cash generated from/used in
1,715,956,699.20 1,688,661,111.66
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 6,917,500,000.00 9,528,608,000.00
Return on investment 20,818,419.64 113,021,049.74
Net proceeds from the disposal of
fixed assets, intangible assets and other 447,821.68 3,008,052.09
long-term assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other
24,713,108.45 15,385,633.48
investing activities
126
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Subtotal of cash generated from
6,963,479,349.77 9,660,022,735.31
investing activities
Payments for the acquisition and
construction of fixed assets, intangible 80,448,492.27 88,674,858.35
assets and other long-term assets
Payments for investments 6,748,098,222.33 9,208,549,753.60
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
6,828,546,714.60 9,297,224,611.95
activities
Net cash generated from/used in
134,932,635.17 362,798,123.36
investing activities
3. Cash flows from financing activities:
Capital contributions received 12,097,000.00
Borrowings received 396,206,771.20 454,690,696.85
Cash generated from other
financing activities
Subtotal of cash generated from
408,303,771.20 454,690,696.85
financing activities
Repayment of borrowings 758,511,497.92 50,172,297.61
Interest and dividends paid 577,292,481.85 572,560,553.00
Cash used in other financing
16,564,171.89
activities
Subtotal of cash used in financing
1,352,368,151.66 622,732,850.61
activities
Net cash generated from/used in
-944,064,380.46 -168,042,153.76
financing activities
4. Effect of foreign exchange rate
-2,897,559.61 3,663,831.23
changes on cash and cash equivalents
5. Net increase in cash and cash
903,927,394.30 1,887,080,912.49
equivalents
Add: Cash and cash equivalents,
3,236,146,447.61 1,349,065,535.12
beginning of the period
6. Cash and cash equivalents, end of the
4,140,073,841.91 3,236,146,447.61
period
127
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
7. Consolidated Statements of Changes in Owners’ Equity
2020
Unit: RMB
2020
Equity attributable to owners of the Company as the parent
Other equity Other Non-c
Total
instruments Less: compr Surplu Retain ontroll
Item Share Capital Specifi Genera owners
Treasu ehensi s ed Subtot ing
Prefe Perpe ’
capita reserve c l Others
rence tual Other ry ve reserve earnin al interes
l s reserve reserve equity
share bond s shares incom s gs ts
s s e
2,676
1. Balance as at 342,17 132,06 57,504 1,358, 10,853 15,156 243,90 15,399
,408,
the end of the 5,389. 9,000. ,092.2 670,35 ,403,3 ,092,8 2,857. ,995,7
689.0
prior year 87 00 3 4.99 16.80 42.89 75 00.64
0
Add:
Adjustments for 34,339 36,100 39,176
1,761, 3,075,
changes in ,607.5 ,990.7 ,697.6
383.21 706.90
accounting 5 6 6
policies
Adjustments
for correction of
previous errors
Adjustments
for business
combinations
involving
entities under
common control
Other
adjustments
2,676
2. Balance as at 342,17 132,06 57,504 1,360, 10,887 15,192 246,97 15,439
,408,
the beginning of 5,389. 9,000. ,092.2 431,73 ,742,9 ,193,8 8,564. ,172,3
689.0
the year 87 00 3 8.20 24.35 33.65 65 98.30
0
3.
Increase/decreas 6,950 26,547 -10,47 -64,96 1,837, 1,816, -110,2 1,706,
e in the period ,000. ,926.3 3,350. 6,667. 453,58 458,19 95,891 162,29
(“-” for 00 3 00 89 1.72 0.16 .99 8.17
decrease)
3.1 Total -64,96 2,373, 2,308, -35,55 2,273,
128
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
comprehensive 6,667. 915,31 948,65 0,351. 398,30
income 89 9.52 1.63 61 0.02
3.2 Capital
6,950 26,547 -10,47 43,971 -74,74 -30,77
increased and
,000. ,926.3 3,350. ,276.3 5,540. 4,264.
reduced by
00 3 00 3 38 05
owners
3.2.1
6,950 -74,74 -67,79
Ordinary shares 6,950,
,000. 5,540. 5,540.
increased by 000.00
00 38 38
owners
3.2.2
Capital
increased by
holders of other
equity
instruments
3.2.3
Share-based 26,563 32,080
-5,516, -5,516,
payments ,692.9 ,000.0
307.08 307.08
recognized in 2 0
owners’ equity
-42,55 42,537 42,537
3.2.4 -15,76
3,350. ,583.4 ,583.4
Others 6.59
00 1 1
-536,4 -536,4 -536,4
3.3 Profit
61,737 61,737 61,737
distribution
.80 .80 .80
3.3.1
Appropriation
to surplus
reserves
3.3.2
Appropriation
to general
reserve
3.3.3
-536,4 -536,4 -536,4
Appropriation
61,737 61,737 61,737
to owners (or
.80 .80 .80
shareholders)
3.3.4 Other
3.4 Transfers
within owners’
equity
129
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
3.4.1
Increase in
capital (or share
capital) from
capital reserves
3.4.2
Increase in
capital (or share
capital) from
surplus reserves
3.4.3
Surplus reserves
used to offset
loss
3.4.4
Changes in
defined benefit
schemes
transferred to
retained
earnings
3.4.5 Other
comprehensive
income
transferred to
retained
earnings
3.4.6
Others
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2 Used
in the period
3.6 Other
2,683
4. Balance as at 368,72 121,59 1,360, 12,725 17,008 136,68 17,145
,358, -7,462,
the end of the 3,316. 5,650. 431,73 ,196,5 ,652,0 2,672. ,334,6
689.0 575.66
period 20 00 8.20 06.07 23.81 66 96.47
0
2019
Unit: RMB
130
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
2019
Equity attributable to owners of the Company as the parent
Other equity Other Non-co
instruments Less: compr Surplu Retain ntrollin Total
Item
Share Capital Specifi Genera
Treasu ehensi s ed Subtot g owners’
Prefe Perp
capita reserve c l Others
ry ve reserve earnin al interest equity
rence etual Other
l s reserve reserve
share bond shares incom s gs s
s
s s e
2,676
1. Balance as at 256,68 132,06 34,242 1,161, 9,236, 13,233 13,605,
,408, 372,327
the end of the 3,499. 9,000. ,831.0 193,99 765,80 ,225,8 553,015
689.0 ,191.88
prior year 94 00 7 5.08 8.55 23.64 .52
0
Add:
Adjustments
for changes in
accounting
policies
Adjustments
for correction
of previous
errors
Adjustments
for business
combinations
involving
entities under
common
control
Other
adjustments
2,676
2. Balance as at 256,68 132,06 34,242 1,161, 9,236, 13,233 13,605,
,408, 372,327
the beginning 3,499. 9,000. ,831.0 193,99 765,80 ,225,8 553,015
689.0 ,191.88
of the year 94 00 7 5.08 8.55 23.64 .52
0
3.
Increase/decrea 85,491 23,261 197,47 1,616, 1,922, -128,42 1,794,4
se in the period ,889.9 ,261.1 6,359. 637,50 867,01 4,334.1 42,685.
(“-” for 3 6 91 8.25 9.25 3 12
decrease)
3.1 Total 23,261 2,349, 2,372, 2,280,0
-92,592
comprehensive ,261.1 395,60 656,86 63,960.
,906.95
income 6 5.96 7.12 17
131
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
3.2 Capital
84,466 84,466
increased and -35,831 48,635,
,463.7 ,463.7
reduced by ,427.18 036.60
8 8
owners
3.2.1
Ordinary shares -35,831 -35,831
increased by ,427.18 ,427.18
owners
3.2.2
Capital
increased by
holders of other
equity
instruments
3.2.3
Share-based 84,466 84,466
84,466,
payments ,463.7 ,463.7
463.78
recognized in 8 8
owners’ equity
3.2.4
Others
197,47 -732,7 -534,2 -534,25
3.3 Profit 1,025,
6,359. 58,097 56,311 6,311.6
distribution 426.15
91 .71 .65 5
3.3.1
197,47 -197,4
Appropriation
6,359. 76,359
to surplus
91 .91
reserves
3.3.2
Appropriation
to general
reserve
3.3.3
-535,2 -535,2 -535,28
Appropriation
81,737 81,737 1,737.8
to owners (or
.80 .80 0
shareholders)
3.3.4 1,025, 1,025, 1,025,4
Other 426.15 426.15 26.15
3.4 Transfers
within owners’
equity
3.4.1
Increase in
132
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
from surplus
reserves
3.4.3
Surplus
reserves used to
offset loss
3.4.4
Changes in
defined benefit
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensive
income
transferred to
retained
earnings
3.4.6
Others
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2 Used
in the period
3.6 Other
2,676
4. Balance as at 342,17 132,06 57,504 1,358, 10,853 15,156 15,399,
,408, 243,902
the end of the 5,389. 9,000. ,092.2 670,35 ,403,3 ,092,8 995,700
689.0 ,857.75
period 87 00 3 4.99 16.80 42.89 .64
0
133
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
8. Statements of Changes in Owners’ Equity of the Company as the Parent
2020
Unit: RMB
2020
Other equity
Other
instruments Less: Total
Item Share Capital compreh Specific Surplus Retained
Prefere Perpet Treasury Others owners’
capital reserves ensive reserve reserves earnings
nce ual Others shares equity
income
shares bonds
1. Balance as at 2,676,4
437,549, 132,069, 1,358,67 8,417,13 12,757,69
the end of the 08,689.
701.78 000.00 0,354.99 1,477.05 1,222.82
prior year 00
Add:
Adjustments for
1,761,38 15,852,4 17,613,83
changes in
3.21 48.90 2.11
accounting
policies
Adjustments
for correction of
previous errors
Other
adjustments
2. Balance as at 2,676,4
437,549, 132,069, 1,360,43 8,432,98 12,775,30
the beginning of 08,689.
701.78 000.00 1,738.20 3,925.95 5,054.93
the year 00
3. Increase/
decrease in the 6,950,0 26,563,6 -10,473, 1,283,62 1,327,612,
period (“-” for 00.00 92.92 350.00 5,667.39 710.31
decrease)
3.1 Total
1,820,08 1,820,087,
comprehensive
7,405.19 405.19
income
3.2 Capital
increased and 6,950,0 26,563,6 -10,473, 43,987,04
reduced by 00.00 92.92 350.00 2.92
owners
3.2.1
Ordinary shares 6,950,0 6,950,000.
increased by 00.00 00
owners
3.2.2
134
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Capital increased
by holders of
other equity
instruments
3.2.3
Share-based
26,563,6 32,080,0 -5,516,307
payments
92.92 00.00 .08
recognized in
owners’ equity
-42,553, 42,553,35
3.2.4 Other
350.00 0.00
3.3 Profit -536,461 -536,461,7
distribution ,737.80 37.80
3.3.1
Appropriation to
surplus reserves
3.3.2
Appropriation to -536,461 -536,461,7
owners (or ,737.80 37.80
shareholders)
3.3.3 Other
3.4 Transfers
within owners’
equity
3.4.1
Increase in
capital (or share
capital) from
capital reserves
3.4.2
Increase in
capital (or share
capital) from
surplus reserves
3.4.3
Surplus reserves
used to offset
loss
3.4.4
Changes in
defined benefit
schemes
transferred to
135
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
retained earnings
3.4.5 Other
comprehensive
income
transferred to
retained earnings
3.4.6 Other
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2 Used
in the period
3.6 Other
4. Balance as at 2,683,3
464,113, 121,595, 1,360,43 9,716,60 14,102,91
the end of the 58,689.
394.70 650.00 1,738.20 9,593.34 7,765.24
period 00
2019
Unit: RMB
2019
Other equity
Other
instruments Less: Total
Item Share Capital compre Specific Surplus Retained
Prefer Perpet Treasur Others owners’
capital reserves hensive reserve reserves earnings
ence ual Others y shares equity
income
shares bonds
1. Balance as at 2,676, 1,161,1
353,083 132,069, 7,175,125 11,233,742,
the end of the 408,68 93,995.
,238.00 000.00 ,975.65 897.73
prior year 9.00 08
Add:
Adjustments for
changes in
accounting
policies
Adjustments
for correction
of previous
errors
Other
adjustments
2. Balance as at 2,676, 353,083 132,069, 1,161,1 7,175,125 11,233,742,
136
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
the beginning 408,68 ,238.00 000.00 93,995. ,975.65 897.73
of the year 9.00 08
3. Increase/
decrease in the 84,466, 197,476 1,242,005 1,523,948,3
period (“-” for 463.78 ,359.91 ,501.40 25.09
decrease)
3.1 Total
1,974,763 1,974,763,5
comprehensive
,599.11 99.11
income
3.2 Capital
increased and 84,466, 84,466,463.
reduced by 463.78 78
owners
3.2.1
Ordinary shares
increased by
owners
3.2.2
Capital
increased by
holders of other
equity
instruments
3.2.3
Share-based
84,466, 84,466,463.
payments
463.78 78
recognized in
owners’ equity
3.2.4 Other
3.3 Profit 197,476 -732,758, -535,281,73
distribution ,359.91 097.71 7.80
3.3.1
Appropriation 197,476 -197,476,
to surplus ,359.91 359.91
reserves
3.3.2
Appropriation -535,281, -535,281,73
to owners (or 737.80 7.80
shareholders)
3.3.3 Other
3.4 Transfers
within owners’
equity
137
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
3.4.1
Increase in
capital (or share
capital) from
capital reserves
3.4.2
Increase in
capital (or share
capital) from
surplus reserves
3.4.3
Surplus
reserves used to
offset loss
3.4.4
Changes in
defined benefit
schemes
transferred to
retained
earnings
3.4.5 Other
comprehensive
income
transferred to
retained
earnings
3.4.6 Other
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2 Used
in the period
3.6 Other
4. Balance as at 2,676, 1,358,6
437,549 132,069, 8,417,131 12,757,691,
the end of the 408,68 70,354.
,701.78 000.00 ,477.05 222.82
period 9.00 99
III Basic Information of the Company
1. Company Profile
138
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Suzhou Gold Mantis Construction Decoration Co., Ltd. (hereinafter referred to as the
“Company”), which was changed from the former Suzhou Gold Mantis Construction Decoration
Limited, was established as a foreign-invested company limited by shares with a registered capital
of RMB70 million under the approval of SH.Z.Y.P. [2004] No. 242 and the Approval Certificate
SH.W.Z.Z.SH.Z. [2004] No. 0082 of the Ministry of Commerce of the People's Republic of China.
The Company went through the industrial and commercial registration at the Administration for
Industry and Commerce of Jiangsu Province in accordance with the law on 30 April 2004. With the
approval granted by the China Securities Regulatory Commission under Document ZH.J.F.X.Z.
[2006] No. 100, the Company publicly issued 24 million ordinary shares on 2 November 2006,
increasing its registered capital to RMB94 million after the issuance. On 20 November 2006, the
Company's stock was listed on the Shenzhen Stock Exchange under the stock code "002081" and
the stock name "Gold Mantis".
In May 2008, the Company implemented a profit distribution plan for 2007, transferring 5 shares
for every 10 shares of Capital reserves to all shareholders, increasing its registered capital to RMB141
million.
In April 2009, the Company implemented a profit distribution plan for 2008, transferring 5
shares for every 10 shares of Capital reserves to all shareholders, increasing its registered capital to
RMB211.5 million.
In November 2009, the Company increased its registered capital by RMB1,296,000 to
RMB212,796,000 by exercising the first phase of share options of the first share option incentive plan
by 18 share option awardees, including Ni Lin, Yang Zhen and Yan Duolin, under the First Share
Option Incentive Plan of Suzhou Gold Mantis Construction Decoration Co., Ltd.
In April 2010, the Company implemented a profit distribution plan for 2009, giving all
shareholders 5 shares for every 10 shares of Retained earnings, increasing its registered capital to
RMB319,194,000.
In March 2011, the Company implemented a profit distribution plan for 2010, giving all
shareholders 5 shares for every 10 shares of Retained earnings, increasing its registered capital to
RMB478,791,000.
In June 2011, the Company increased its registered capital by RMB2,612,250 to
RMB481,403,250 by exercising the second phase of share options of the first share option incentive
plan by 15 share option awardees, including Ni Lin, Yang Zhen and Yan Duolin, under the First
Share Option Incentive Plan of Suzhou Gold Mantis Construction Decoration Co., Ltd.
In November 2011, in accordance with the resolutions of the 1st Extraordinary General Meeting
and the 2nd Extraordinary General Meeting of 2011, and as approved by the China Securities
Regulatory Commission's Approval of the Non-public Offering of Shares of Suzhou Gold Mantis
Construction Decoration Co., Ltd. (ZH.J.X.K. [2011] No. 1388), the Company made a non-public
offering of RMB36,843,800 ordinary shares, increasing its registered capital to RMB518,247,050.
In May 2012, the Company implemented a profit distribution plan for 2011, transferring 5 shares
for every 10 shares of capital reserves to all shareholders, increasing its registered capital to
RMB777,370,575.
In December 2012, the Company increased its registered capital by RMB4,100,378 to
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
RMB781,470,953 by independently exercising the third phase of share options of the first share
option incentive plan by 12 share option awardees, including Ni Lin, Yang Zhen and Yan Duolin,
under the First Share Option Incentive Plan of Suzhou Gold Mantis Construction Decoration Co.,
Ltd.
In March 2013, the Company increased its registered capital by RMB1,063,371 to
RMB782,534,324 by independently exercising the third phase of share options of the first share
option incentive plan by 5 share option awardees, including Ni Lin, under the First Share Option
Incentive Plan of Suzhou Gold Mantis Construction Decoration Co., Ltd.
In May 2013, the Company implemented a profit distribution plan for 2012, transferring 5 shares
for every 10 shares of Capital reserves to all shareholders, increasing its registered capital to
RMB1,173,801,486.
In September 2013, the Company increased its registered capital by RMB1,002,376 to
RMB1,174,803,862 by independently exercising the third phase of share options of the first share
option incentive plan by 3 share option awardees, including Zhu Xingquan, under the First Share
Option Incentive Plan of Suzhou Gold Mantis Construction Decoration Co., Ltd.
In June 2014, the Company implemented a profit distribution plan for 2013, transferring 5 shares
for every 10 shares of Capital reserves to all shareholders, whereby increasing the registered capital to
RMB1,762,205,793.
In June 2016, the Company implemented a profit distribution plan for 2015, giving all
shareholders 5 shares for every 10 shares of Retained earnings, whereby increasing the registered
capital to RMB2,643,308,689.
In December 2018, in accordance with the Proposal on the Proposal on the Company's 2018
Restricted Share Incentive Plan (Draft) and Its Summary reviewed and approved at the 1st
Extraordinary General Meeting of the Company in 2018 and the resolution of the 13th Extraordinary
Meeting of the 5th Board of Directors, restricted shares were granted to 32 restricted share awardees,
including Wang Hanlin, Cao Liming and Shi Guoping, increasing its registered capital by RMB33.1
million to RMB2,676,408,689.
In January 2020, in accordance with the Proposal on the Company's 2018 Restricted Share
Incentive Plan (Draft) and Its Summary reviewed and approved at the 1st Extraordinary General
Meeting of the Company in 2018 and the resolution of the 1st Extraordinary Meeting of the 6th Board
of Directors, restricted shares were granted to 14 restricted share awardees, including Wang Zhenlong
and Gao Hongqiang, increasing its registered capital by RMB8 million to RMB2,684,408,689.
In May 2020, in accordance with the resolution of the 2019 Annual General Meeting and the
Proposal on the Repo and Cancellation of Part of Restricted Shares of the Company which were
reviewed and approved at the 5th Meeting of the 6th Board of Directors in 2020, as Yang Peng and
Xie Jinan, the original awardees, had left the Company, the Company repurchased and canceled 1.05
million restricted shares granted to them but not yet unlocked, reducing its registered capital by
RMB1.05 million. After the completion of the repurchase and cancellation, its registered capital was
changed to RMB2,683,358,689.
The Domicile of the Company: Within the private industrial zone, Suzhou Industrial Park,
Jiangsu Province. Legal representative: Wang Hanlin.
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The Company's business scope: architectural engineering procurement construction (EPC);
design and construction of interior and exterior decoration projects of various buildings; installation
of utilities and electrical equipment for public and civil construction projects; consulting, services,
technology development and technology transfer for construction decoration design; furniture
manufacturing. Design and construction of indoor and outdoor artworks for various buildings;
design and construction of soft decoration accessories; design and construction of environmental
way-finding systems; design, production, manufacturing, installation and construction of curtain
wall projects for various buildings; processing, manufacturing and construction of metal doors and
windows; wooden products production; building stone processing. Manufacturing and installation
of mechanical and electrical equipment installation projects; design and construction of urban
landscaping projects; design and construction of ancient-style landscaping; design and construction
of firefighting facilities projects; civil and public building engineering design; steel-structure
engineering and construction; light steel-structure engineering design; urban and road lighting
engineering; sales: construction materials; contracting of overseas construction decoration and
curtain wall engineering, as well as domestic projects put out to international tender; contracting of
the survey, consulting, design and supervision projects of the aforesaid overseas projects; export of
the equipment and materials required for the aforesaid overseas projects; dispatch of leased
employees needed to implement the aforesaid overseas projects. (Business activities that require
approval in accordance with laws shall be subject to approval by relevant authorities.)
Date of approval of financial report: The Financial Statement was approved to be reported by
the resolution of the Board of Directors of the Company on 28 April 2021.
2. Scope of the Consolidated Financial Statements
(1) Subsidiaries Included in the Consolidated Financial Statements in the Current Period
The Company’s interest
Serial No. Full name of subsidiary Abbr. of subsidiary (%)
Direct Indirect
1 Suzhou Meiruide Construction Decoration Meiruide 100.00 —
Co., Ltd.
2 Suzhou Meiruide Construction Materials Meiruide Materials — 100.00
Co., Ltd.
3 Suzhou Industrial Park Gold Mantis Suzhou Furniture 100.00 —
Furniture Design and Manufacturing Co.,
Ltd.
4 Suzhou Gold Mantis Curtain Wall Co., Ltd. Gold Mantis Curtain Wall 100.00 —
5 Qidong Gold Mantis Curtain Wall Co., Ltd. Qidong Curtain Wall — 100.00
6 Suzhou Gold Mantis Landscape Co., Ltd. Gold Mantis Landscape 100.00 —
7 Jiangsu Gold Mantis Horticultural Co., Ltd. Gold Mantis Horticultural — 100.00
8 Datong Gold Mantis Landscape Co., Ltd. Datong Gold Mantis — 100.00
9 Jining Economic Development Zone Gold Jining Gold Mantis — 100.00
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Mantis Landscape Engineering Co., Ltd.
10 Suzhou Gold Mantis Construction Construction Investment 100.00 —
Investment Co., Ltd.
11 Liaoning Gold Mantis Construction Liaoning Gold Mantis 100.00 —
Decoration Co., Ltd.
12 Singapore Gold Mantis Pte. Ltd. Singapore Gold Mantis 100.00 —
13 HBA Holdings Pte. Ltd. *1 HBA — 86.62
14 Gold Mantis (International) Construction Gold Mantis International 100.00 —
Decoration Limited
15 Russia Gold Mantis Construction Decoration Russia Gold Mantis — 100.00
Co., Ltd.
16 JTL Fit Out Middle East L.L.C. JTL Fit Out Middle East — 100.00
17 Gold Mantis Construction Decoration Saipan Gold Mantis — 100.00
(CNMI), LLC
18 Gold Mantis Building Decoration Cambodia Gold Mantis — 100.00
(Cambodia) Co., Ltd.
19 Gold Mantis International Development Pte. International — 100.00
Ltd. Development
20 Gold Mantis (Vietnam) Construction Gold Mantis (Vietnam) — 100.00
Company Limited
21 Gold Mantis (HK) Construction Decoration Gold Mantis (HK) — 100.00
Limited
22 Gold Mantis (Lanka) Construction (Private) Gold Mantis (Lanka) — 100.00
Limited
23 Gold Mantis Prefabricated Construction Prefabricated 70.00 —
Technology (Suzhou) Co., Ltd.*2 Construction Technology
24 Gold Mantis Home Decoration E-commerce Home Decoration — 90.00
(Suzhou) Co., Ltd.*3 E-commerce
25 Gold Mantis Refined Decoration & Refined Decoration & — 100.00
Technology (Suzhou) Co., Ltd. Technology
26 Gold Mantis Supply Chain Management Gold Mantis Supply — 100.00
(Suzhou) Co., Ltd. Chain
27 Suzhou Jijia Materials Co., Ltd. Jijia Materials 100.00 —
28 Gold Mantis Art Co., Ltd. Gold Mantis Art 100.00 —
29 Suzhou Jinpu No. 9 Cultural Industrial Jinpu No. 9 100.00 —
Development Co., Ltd.
30 Xi’an Hi-tech Zone Jinchuang Commercial Xi’an Jinchuang 90.00 —
Operation Management and Development
Co., Ltd.
31 Gold Mantis Municipal Engineering Gold Mantis Municipal 100.00 —
Construction (Guizhou) Co., Ltd.
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
32 Suzhou Industrial Park Jindejin Construction Jindejin Construction 100.00 —
Engineering Co., Ltd.
33 Gold Mantis North China (Beijing) Gold Mantis North China 100.00 —
Construction Decoration Engineering Co.,
Ltd.
34 Sierra Gold Mantis Joint Venture (Private) Sierra Gold Mantis 50.00 —
Limited
35 GMI Construction Corp. GMI Construction — 100.00
36 M+ Design Associates Pte. Ltd. M+ — 63.00
37 Gold Mantis East China Construction Gold Mantis East China 100.00 —
Decoration Co., Ltd.
38 Suzhou Huali Jinshi Construction Huali Jinshi 60.00 —
Decoration Co., Ltd.
39 Shuicheng Ruitong Construction and Shuicheng Ruitong 90.00 —
Development Co., Ltd.
40 Archi-Feeling Design (SuZhou) Co., Ltd. Archi-Feeling 70.00 —
41 GMI International Inc. GMI Construction — 100.00
Decoration
42 Jining Gold Mantis Construction Jining Gold Mantis — 100.00
Engineering Co., Ltd. Engineering
43 Hangzhou Gold Mantis Landscape Co., Ltd. Hangzhou Gold Mantis — 100.00
Note*1：HBA incorporated 24 subsidiaries.
*2：Gold Mantis Prefabricated Construction Technology (Suzhou) Co., Ltd. is formerly known
as “Gold Mantis E-commerce Co., Ltd.”.
*3：Home Decoration E-commerce incorporated 44 “Gold Mantis Home” subsidiaries.
For further information about the subsidiaries above, please refer to Note VII “Interests in
Other Entities”. Those in which the Company held direct stakes were subsidiaries of the Company,
while the others were sub-subsidiaries of the Company.
(2) Changes in the Scope of the Consolidated Financial Statements of the Current Period
① Newly Added Subsidiaries in the Current Period
Serial No. Full name of subsidiary Abbr. of subsidiary Reason for inclusion in the
consolidation scope of the
current period
1 Jining Gold Mantis Construction Jining Gold Mantis Newly incorproated
Engineering Co., Ltd. Engineering
2 Hangzhou Gold Mantis Landscape Co., Ltd. Hangzhou Gold Mantis Newly incorproated
② Excluded Subsidiaries in the Current Period
Serial No. Full name of subsidiary Abbr. of subsidiary Reason for exclusion from
the consolidation scope of
the current period
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1 “Gold Mantis Home” companies * Transferred or
de-registered
2 Suzhou Miaoyu Construction Materials Co., Miaoyu Construction De-registered
Ltd.
Note*: Home Decoration E-commerce transferred or de-registered 51 “Gold Mantis Home”
subsidiaries in the current period.
For further information about the newly added and excluded subsidiaries, please refer to Note
VI “Changes in the Scope of the Consolidated Financial Statements”.
IV Basis of Preparation for the Financial Statements
1. Basis of Preparation
Based on the transactions and events that have actually occurred and the recognition and
measurement in accordance with the provisions of China’s Accounting Standards for Business
Enterprises (CAS) and its application guidance and interpretations of the standards, the Company
prepared the financial statement on the going concern basis. In addition, the Company also
disclosed relevant financial information in accordance with the Rules No. 15 Governing the
Preparation of Information Disclosure by Companies Publicly Offering Securities - General
Provisions of Financial Reports (Revision 2014) of the China Securities Regulatory Commission.
2. Going Concern
The Company has assessed its ability to continue as a going concern for the 12 months from
the end of the Reporting Period and no matters affecting the ability have been identified. Thus, it
was reasonable of the Company to prepare its financial statements on a going concern basis.
V. Significant Accounting Policies and Accounting Estimation
Specific accounting policies and accounting estimation hint:
The following significant accounting policies and accounting estimation of the Company have
been formulated in accordance with the Accounting Standards for Business Enterprises. Operations
not mentioned were carried out in accordance with the relevant accounting policies in the CAS.
1. Statement of Compliance with the CAS
The financial statements prepared by the Company complied with the requirements of the CAS
and gave a true and complete view of the financial status, operational results, changes in owners'
equity, cash flows and other relevant information.
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
2. Accounting Period
The Company has adopted the Gregorian calendar year, which means from 1 January to 31
December as its accounting year.
3. Operating Cycle
The normal operating cycle of the Company was one year.
4. Functional Currency
The Company's functional currency was RMB, and the functional currency for accounting of
the overseas (branch) subsidiaries was the currency of the country or region in which they are
located.
5. The Accounting Methods of Business Combinations Involving Entities under Common Control and
Business Combinations Not Involving Entities under Common Control
(1) Business Combinations Involving Entities under Common Control
Assets and liabilities acquired by the Company in a business combination were measured at the
carrying value of the acquiree in the consolidated financial statements of the ultimate controlling
party at the date of combination. In particular, if the accounting policies adopted by the party being
consolidated and the Company prior to the business combination were different, the accounting
policies were unified based on the principle of materiality, i.e. the carrying value of the assets and
liabilities of the acquiree shall be adjusted in accordance with the Company's accounting policies . If
there was a difference between the carrying value of the net assets acquired by the Company in a
business combination and the carrying value of the consideration paid, the Capital reserves (Capital
premium or Share capital premium) was first adjusted. If the balance of the Capital reserves
(Capital premium or share capital premium) is not sufficient for elimination, the Surplus reserves
and Retained earnings were eliminated in turn.
For the accounting methods of business combinations under common control through step
transactions, please refer to: Section XII. V. (6).
(2) Business Combinations Not Involving Entities under Common Control
Each of the Company's identifiable assets and liabilities of the acquiree acquired in a business
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
combination was measured at the fair value at the date of acquisition. In particular, if the accounting
policies adopted by the acquiree and the Company prior to the business combination were different,
the accounting policies were unified based on the principle of materiality, i.e. the carrying value of
the acquiree's assets and liabilities shall be adjusted in accordance with the Company's accounting
policies. The difference between the cost of consolidation at the date of acquisition and the fair
value of the acquiree's identifiable assets and liabilities acquired in a business combination was
recognized as Goodwill. If the cost of consolidation was less than the fair value of the acquiree's
identifiable assets and liabilities acquired in a business combination, the cost of consolidation and
the fair value of the acquiree's identifiable assets and liabilities acquired in a business combination
shall be first reviewed. If, after the review, the cost of consolidation was still less than the fair value
of the acquiree's identifiable assets and liabilities, the difference would be recognized as profit or
loss of current period.
For the accounting methods of business combinations under common control through step
transactions, please refer to: Section XII. V. (6).
(3) Treatment of Relevant Transaction Expenses in Business Combinations
Intermediary fees such as audit, legal services, evaluation and consulting and other related
administrative expenses incurred in connection with a business combination were included in the
profit or loss of current period. Transaction expenses for equity securities or debt securities of
consideration issuance for a combination were included in the initial recognition amount of the
equity securities or debt securities.
6. Preparation Methods for Consolidated Financial Statements
(1) Determination of Consolidation Scope
The consolidation scope in the consolidated financial statements was determined on a control
basis and includes not only subsidiaries determined on the basis of voting rights (or similar v oting
rights) or in combination with other arrangements, but also structured entities determined on the
basis of one or more contractual arrangements.
Control means that the Company has power over the investee, enjoys variable returns through
its involvement in the investee's related activities and has the ability to use the power to influence
the amount of returns. Subsidiaries are entities that are controlled by the Company (including
enterprises, divisible parts of investees, and structured entities controlled by enterprises, etc.).
Structured entities are the entities that are not designed to have voting or similar rights as a decisive
factor in determining their controlling party (note: sometimes referred to as special purpose
entities).
(2) Special Provisions Regarding the Company as the Parent Being an Investment Entity
If the Company as the parent was an investment entity, only the subsidiaries that provide
services related to the investment activities of the investment entity were included in the
consolidated scope and other subsidiaries are not consolidated. Equity investors in subsidiaries that
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
were not included in the consolidation scope were recognized as financial assets measured at fair
value through profit or loss for the current period.
The Company as the parent was an investment entity when it satisfied all the following
conditions:
① The Company aimed to provide investment management services to investors and obtain
funds from one or more investors.
② The Company's sole business purpose was to provide a return for investors through capital
appreciation, return on investment or both.
③ The Company considered and evaluated the performance of almost all investments at fair
value.
When the Company as the parent was transformed from a non-investment entity to an
investment entity, the enterprise ceased to consolidate its other subsidiaries from the date of
transformation, except to include only the subsidiaries providing services related to its investment
activities in the scope of the consolidated financial statements for the purpose of preparing the
consolidated financial statements, and treated the other subsidiaries with reference to the principle
of partial disposal of equity interests in subsidiaries without loss of control.
When the Company as the parent was transformed from an investment entity to a
non-investment entity, the subsidiaries that were not included in the scope of the consolidated
financial statements shall be included at the date of transformation, and the fair value of such
subsidiaries at the date of transformation shall be recognized as the transaction consideration for the
acquisition in accordance with the accounting methods for business combinations not involving
entities under common control.
(3) Preparation Methods for Consolidated Financial Statements
The Company prepared consolidated financial statements on the basis of its own financial
statements and those of its subsidiaries and in line with other relevant information.
The Company prepared consolidated financial statements by considering the entire enterprise
group as one accounting entity, reflecting the overall financial status, operational results and cash
flows in accordance with the recognition, measurement and presentation requirements of relevant
accounting standards for enterprises and the unified accounting policies.
① The assets, liabilities, owners' equity, income, expenses and cash flows of the Company as
the parent with those of its subsidiaries were consolidated.
② The Company as the parent's long-term equity investments in the subsidiaries were offset
against the Company as the parent's shares in the subsidiaries' owners' equity.
③ The impact of internal transactions between the Company as the parent and its subsidiaries,
as well as between subsidiaries and each other, was offset. If an internal transaction indicated an
impairment loss on a related asset, the portion of the loss was recognized in full.
④ The special transactions were adjusted from the perspective of the enterprise group.
(4) Treatment of Additions and Deletions of Subsidiaries within the Reporting Period
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
① Addition of subsidiaries or businesses
A. Increase in subsidiaries or businesses in a business combination involving entities under
common control
(a) When preparing the consolidated balance sheet, the Company adjusted the opening amount
of the consolidated balance sheet, together with the relevant items in the comparative statements, as
if the consolidated reporting entity had been in existence from the point at which control by the
ultimate controlling party commenced.
(b) When preparing the consolidated profit statement, the subsidiaries and the revenues,
expenses and profits of the business combination from the beginning of the business combinations
to the end of the Reporting Period were included in the consolidated profit statement, with
adjustments to the relevant items in the comparative statements, as if the consolidated reporting
entity had been in existence from the point at which control by the ultimate controlling party
commenced.
(c) When preparing the consolidated cash flow statement, the subsidiaries and the cash flows
from the beginning of the business combination to the end of the Reporting Period were included in
the consolidated cash flow statement, with adjustments to the relevant items in the comparative
statements, as if the consolidated reporting entity had been in existence from the point at which
control by the ultimate controlling party commenced.
B. Increase in subsidiaries or businesses in a business combination not involving entities under
common control
(a) When preparing the consolidated balance sheet, no adjustment was made to the opening
amount.
(b) When preparing the consolidated profit statement, the subsidiaries and the income,
expenses and profits of the business from the date of acquisition to the end of the Reporting Period
were included.
(c) When preparing the consolidated statement of cash flows, the cash flows of the subsidiaries
from the date of acquisition to the end of the Reporting Period were included.
② Disposal of subsidiaries or businesses
A. When preparing the consolidated balance sheet, no adjustment was made to the opening
amount.
B. When preparing the consolidated profit statement, the subsidiaries and the income, expenses
and profits of the business from the beginning of the period to the date of disposal were included.
C. When preparing the consolidated cash flow statement, the subsidiary and the cash flows of
the business from the beginning of the period to the date of disposal were included.
(5) Special Considerations in Consolidation Offsets
① Long-term equity investments of the Company held by subsidiaries were treated as treasury
shares of the Company and shown as a deduction of owners' equity, and it was shown as
"Deduction: Treasury shares" in the consolidated balance sheet under the heading of owners’
equity.
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Long-term equity investments held by subsidiaries against each other were offset against the
Company's shares of the subsidiaries' owners' equity, as compared with the Company's equity
investment in the subsidiaries.
② "Specific reserve" and "General reserve" items were not part of paid-up capital (or share
capital) and capital reserves or retained earnings, and were also different from retained earnings.
They were restored to the owner's shares of the Company as the parent after offsetting long-term
equity investments against the subsidiaries' owners' equity.
③ If a temporary difference arose between the carrying value of assets and liabilities in the
consolidated balance sheet and their tax bases in the taxable entity to which they belong as a result
of offsetting unrealized internal sales profit or loss, the deferred income tax assets or deferred
income tax liabilities were recognized in the consolidated balance sheet, while adjusting the income
tax expense, except for the transactions or events directly included in owners' equity and the
deferred income tax relating to business combinations.
④ Unrealized profit or loss on internal transactions of the Company arising from the sale of
assets to subsidiaries were fully offset against the "net profit attributable to the Company as the
parent owner". Unrealized profit or loss on internal transactions arising from the sale of assets by a
subsidiary to the Company were offset by allocating between "Net profit attributable to the
Company as the parent owner" and "Net profit attributable to non-controlling interests" in
proportion to the Company's allocation to that subsidiary. Unrealized profit or loss on internal
transactions arising from the sale of assets between subsidiaries were offset by allocating between
"Net profit attributable to the Company as the parent owner" and "Net profit attributable to
non-controlling interests" in proportion to the Company's allocation to the selling subsidiary.
⑤ If the minority of shareholders' shares of the current loss of a subsidiary exceeded the
minority of shareholders' shares of owners' equity at the beginning of the period of the subsidiary,
the balance was still eliminated by non-controlling interests.
(6) Accounting of Special Transactions
① Acquisition of the equity of minority shareholders
If the Company acquired the equity of a subsidiary owned by the minority shareholders of the
subsidiary, in individual financial statements, the investment costs of the long-term equity
investments newly obtained from the acquisition of minority equity were measured at the fair value
of considerations paid for the acquisition. In the consolidated financial statements, for the difference
between the long-term equity investments newly obtained from the acquisition of minority equity
and the portion of net assets in the subsidiary calculated from the date of acquisition or the date of
combination on an ongoing basis at the ratio of new shares held, the capital reserves (capital or
share capital premiums) were adjusted, and if the capital reserves were insufficient for offset,
surplus reserves and retained earnings were offset in turn.
② Obtaining of control of a subsidiary in stages through multiple transactions
A. Business combinations involving entities under common control achieved in stages through
multiple transactions
If the deals fell into a "Package Deal", the Company processed such transactions as one
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
transaction of obtaining control of the subsidiary. In the individual financial statements, in each
transaction prior to the date of combination, all equity investments were recognized as long-term
equity investments and their initial investment cost was recognized according to the share of the
carrying value of the net assets of the combined party in the consolidated financial statements of the
ultimate controlling party calculated at the shareholding ratio. For the difference between the initial
costs of long-term equity investments and the carrying value of considerations paid, capital reserves
(capital or share capital premiums) were adjusted, and if the capital reserves (capital or share capital
premiums) were insufficient for offset, surplus reserves and retained earnings were offset in turn. In
the subsequent measurement, long-term equity investments were accounted for under the cost
method without involving the preparation of the consolidated financial statements. On the
combination date, the Company recognized the initial cost of long-term equity investments
according to its share of the carrying value of the net assets of the combined party in the
consolidated financial statements of the ultimate controlling party calculated at the accumulative
shareholding ratio. For the difference between the initial investment costs and the sum of the
carrying value of the long-term equity investments before the combination and the carrying value of
the new payment consideration of shares further acquired on the combination date, capital reserves
(capital or share capital premiums) were adjusted, and if the capital reserves (capital or share capital
premiums) were insufficient for offset, surplus reserves and retained earnings were offset in turn.
Meanwhile, the Company prepared a consolidated financial statement o n the combination date and
made adjustments in the consolidated financial statement with all parties participating in the
combination deemed to have been existing since the time point when the ultimate controlling party
began the control.
If the clauses, conditions, and economic impact of various transactions fell under one or more
of the following circumstances, the multiple transactions were generally regarded as a "Package
Deal".
(a) These transactions are reached concurrently or after the impact thereof on each other is
taken into consideration.
(b) These transactions may achieve a complete business result only as a whole.
(c) The occurrence of a transaction depends on the occurrence of, at a minimum, one another
transaction.
(d) A transaction is considered uneconomical separately but is considered economical when
other transactions are also taken into consideration.
If the deals did not fall into a "Package Deal", in each transaction prior to the combination date,
all transactions of the Company were recognized as financial assets (financial assets at fair value
through profit and loss for the current period or available-for-sale financial assets) or long-term
equity investments accounted for under the equity method according to the fair value of the
consideration paid. On the combination date, in the individual financial statements, the Company
recognized the initial investment cost of long-term equity investments according to its share of the
carrying value of net assets of the subsidiary that were attributable to the Company after the
combination. For the difference between the initial investment cost of long-term equity investments
on the combination date and the sum of the carrying value of the long-term equity investments
before the combination and the carrying value of the new payment consideration of shares further
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
acquired on the combination date, the capital reserves (capital or share capital premiums) were
adjusted, and if the capital reserves were insufficient for offset, surplus reserves and retained
earnings were offset in turn.
In the consolidated financial statements, the Company made adjustments based on deeming
that all parties participating in the combination have been existing since the time point when the
ultimate controlling party began the control. When preparing the consolidated financial statements,
the Company consolidated the relevant assets and liabilities of the combined party into the
comparative statements of the consolidated financial statements of the combining party no earlier
than the time point when the combining party and the combined party were under the control of the
ultimate controlling party, and adjusted the relevant items under owners' equity in the comparative
statements according to the increased net assets arising from the combination. If the retained
earnings recorded by the combined party before the combination that were attributable to the
combining party were not fully recovered in the consolidated financial statements because the
balance of the capital reserves (capital or share capital premiums) of the combining party was
insufficient, the Company explained such cases in the notes to the financial statements, including
retained earnings recorded by the combined party before the combination, the amount a ttributable to
the Company, and retained earnings not transferred to the consolidated balance sheets due to the
insufficient balance of the capital reserves.
For the equity investment that was held by the combining party before obtaining the control of
the combined party and accounted for under the equity method, the changes, from the date when the
original equity was acquired or the date when the combining party and the combined party were
ultimately controlled by the same party, whichever was later, to the combination date, in relevant
profits and losses, other comprehensive income, and other owners' equity to have been recognized
and were offset respectively against the opening retained earnings during the Reporting Period.
B. Business combinations not involving entities under common control achieved in stages
through multiple transactions
If the deals fell into a "Package Deal", the Company processed such transactions as one
transaction of obtaining control of the subsidiary. In the individual financial statements, in each
transaction prior to the date of combinations, all equity investments were recognized as long-term
equity investments and their initial investment costs were recognized according to the fair value of
considerations paid. In the subsequent measurement, long-term equity investments were accounted
for under the cost method without involving the preparation of the consolidated financial statements.
On the combination date, in the individual financial statements, the sum of the carrying value of
long-term equity investments originally held and the newly added investment cost (fair value of the
new payment consideration of shares further acquired) was regarded as the initial investment cost of
long-term equity investments on the combination date. In the consolidated financial statements, the
initial investment cost was offset against the Company's share of the fair value of the identifiable
net assets in the subsidiary, and the difference was recognized as goodwill or included in the
consolidated profit and loss of the current period.
If the deals do not fall into a "Package Deal", in each transaction prior to the combination date,
all transactions of the investor were recognized as financial assets (financial assets at fair value
through profit and loss for the current period or available-for-sale financial assets) or long-term
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
equity investments accounted for under the equity method according to the fair value of the
consideration paid. On the combination date, in the individual financial stateme nts, the sum of the
carrying value of long-term equity investments (financial assets or long-term equity investments
accounted for under the equity method) originally held and the newly added investment cost was
regarded as the initial cost of long-term equity investments accounted for under the cost method. In
the consolidated financial statements, the equities of the acquiree held before the acquisition date
are re-measured at the fair value of the equities on the acquisition date, and the difference betw een
the fair value and the carrying value was included in the return on investment of the current period;
and if the equities of the acquiree held by the enterprise before the date of acquisition involved
other comprehensive income under accounting by the equity method, other comprehensive income
related to such equity shall be included in the current income on the date of acquisition, excluding
the other comprehensive income arising from changes in the net assets or net liabilities caused by
re-measurement of the defined benefit pension plan of the combined party. The Company disclosed
in the notes the fair value on the date of acquisition of the equities of the acquiree held by it before
the date of acquisition and the amounts of relevant gains or losses after re-measurement to the fair
value.
③ The Company disposed of the long-term equity investments made in a subsidiary without
losing control over the subsidiary
If the Company as the parent disposes of part of the long-term equity investments made in a
subsidiary without losing control over the subsidiary, in the consolidated financial statements, for
the difference between the payment for equity disposed of and the Company as the parent's portion
of net assets in the subsidiary calculated from the date of acquisition or the date of combination on
an on-going basis corresponding to the long-term equity investments disposed of, the capital
reserves (capital or share capital premiums) were adjusted, and if the capital reserves were
insufficient for offset, the retained earnings were adjusted.
④ The Company lost control over the subsidiary for the disposal of long-term equity
investments
A. Disposal through one transaction
If the Company lost control over the investee for the disposal of part of equity investments or
any other reason, when it prepared consolidated financial statements, the residual equity was
re-measured at the fair value on the date when it lost control of the investee. The sum of the
consideration obtained from the disposition of equity and the fair value of the residual equity minus
the Company's portion of net assets in the former subsidiary calculated from the date of acquisition
or the date of combination on an ongoing basis at the original shareholding ratio was included in the
return on investment of the current period when the Company lost the control, and was offset
against the goodwill (Note: If the former enterprise was combined not under common control and
there was goodwill). Other comprehensive income, among others, related to the equity investments
in the former subsidiary was included in the return on investment of the current period when the
Company lost the control.
In addition, other comprehensive income and changes in other owners' equity related to the
equity investments in the former subsidiary were included in the profit and loss of the current period,
excluding the other comprehensive income arising from the changes in net liabilities or net assets
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due to re-measurement of the defined benefit pension plan of the investee.
B. Disposal in stages through multiple transactions
In the consolidated financial statements, a judgment of whether transactions in stages fell into
a "Package Deal" shall be made first.
If transactions in stages did not fall into a "Package Deal", all transactions before the Company
lost over a subsidiary shall be treated in accordance with the relevant provisions in "the Company as
the parent disposes of the long-term equity investments made in a subsidiary without losing control
over the subsidiary".
If transactions in stages fall into a "Package Deal", each transaction shall be treated as a
transaction that resulted in the loss of control of the subsidiary in accounting processing.
Specifically, the difference between each disposal price before the loss of control and the parent
company's share of the subsidiary's net assets corresponding to the disposal investment shall be
recognized as other comprehensive income in the consolidated financial statements and, after losing
the control, transferred to the profit and loss of the current reporting period.
⑤ The equity ratio of the Company as the parent was diluted due to capital increase by
minority shareholders of a subsidiary
If the equity ratio of the Company as the parent in a subsidiary was diluted since other
shareholders (minority shareholders) of the subsidiary increased their capital contribution. In the
consolidated financial statements, the Company's share of the carrying amount of the net assets of
the former subsidiary was calculated according to the equity ratio of the Company as the parent
before the capital increased. For the difference between the share and the Company as the parent's
share of the carrying amount of the net assets of the subsidiary calculated at the shareholding ratio,
capital reserves (capital or share capital premiums) were adjusted, and if the capital reserves (capital
or share capital premiums) were insufficient for offset, the retained earnings were adjusted.
7. Classification of Joint Operation Arrangements and Accounting Methods for Joint Operations
A joint arrangement is an arrangement over which two or more parties have joint control. The
Company's joint arrangements were divided into joint operations and joint ventures.
(1) Joint Operations
A joint operation is a joint arrangement whereby the Company has rights to the assets, and
obligations for the liabilities, relating to the arrangement.
The Company recognized the following items in relation to its interest in a joint operation, and
accounted for them in accordance with relevant accounting standards:
① Its solely held assets, and its share of any assets were incurred jointly;
② Its solely assumed liabilities, and its share of any liabilities incurred jointly;
③ Its revenue from the sale of its share of the output arising from the joint operation;
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④ Its share of the revenue from the sale of the output by the joint operation;
⑤ Its solely incurred expenses, and its share of any expenses incurred jointly.
(2) Joint Ventures
A joint venture is a joint arrangement whereby the Company only has rights to the net assets of
the arrangement.
The Company adopted the equity method under long-term equity investments in accounting for
its investments in joint ventures.
8. Recognition Criteria of Cash and Cash Equivalents
Cash refers to the cash on hand and other deposits of the Company that can be used for
payment at any time. Cash equivalents refer to short-term (generally referring to maturities of three
months or less from the acquisition date) investments with high liquidity held which can be easily
converted to cash in a known amount with small risks of value changes.
9. Translation of Transactions and Financial Statements Denominated in Foreign Currencies
(1) Method of Determining the Exchange Rate for Translation in Fo reign Currency
Transactions
At initial recognition, foreign currency transactions of the Company were translated into the
standard currency for accounting using the spot exchange rate or the rate that approximated the spot
exchange rate on the dates of the transactions.
(2) Methods of Translation of Monetary Items Denominated in Foreign Currencies on
the Balance Sheet Date
On the balance sheet date, the foreign currency monetary items were translated at the spot
exchange rate on that date. Exchange difference resulting from the difference between the spot
exchange rate on the balance sheet date and that at the initial recognition or on the previous balance
sheet date was recognized as the profit and loss of the current period.
(3) Methods of Translation of Foreign Currency Financial Statements
Before translating its financial statements about the overseas businesses, the Company adjusted
accounting periods and policies for overseas businesses to be in line with its accounting periods and
policies, then prepared the financial statements in corresponding currencies (other than the standard
currency for accounting) according to the adjusted accounting periods and policies, and translated
the financial statements about the overseas businesses according to the following methods:
① The assets and liabilities in the balance sheet shall be translated at the spot exchange rate
on the balance sheet date. Except "retained earnings", all the other owners' equity items were
converted at the spot exchange rate at the time of occurrence.
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② Items under income and expenses in the income statement were translated at the spot
exchange rate or the rate that approximates the spot exchange rate on the date of the transaction.
③ The differences arising from the translation of foreign currency-denominated financial
statements were presented separately as "Other comprehensive income" under owners' Equity in the
consolidated balance sheet when preparing consolidated financial statements.
④ Foreign currency cash flows and overseas subsidiaries' cash flows were translated at the
spot exchange rate or the rate that approximated the spot exchange rate on the date of cash flows.
The effect of a change in the exchange rate on cash was, as an adjustment item, separately presented
in the cash flow statement.
10. Financial Instruments
Financial instruments refer to contracts that form the financial assets of a party and form
financial liabilities or equity instruments of other parties.
(1) Recognition and Derecognition of Financial Instrume nts
When the Company became a party to a financial instrument contract, it recognized relevant
financial assets or financial liabilities.
If a financial asset met any of the following conditions, it shall be stopped from recognition:
① The contractual right to obtain cash flows from the financial asset is terminated;
② The said financial asset is transferred and it meets the following derecognition conditions
for the transfer of financial assets.
If current obligations of the financial liability (or part of the liability) have been released, the
Company shall derecognize the financial liability (or the part of the liability). If the Company (the
borrower) and a lender signed an agreement to replace the existing financial liability by way of
assumption of a new financial liability with the terms of the new financial liability substantially
different from those of the existing financial liability, it derecognized the existing financial liability
while recognizing the new financial liability. If the Company made material changes to the contract
terms of the existing financial liability in whole (or in part), the existing financial liability shall be
derecognized, and the financial liability after changes of terms shall be recognized as a new
financial liability.
All regular acquisition or sales of financial assets were recognized and derecognized on a
trading day basis. Regular acquisition or sales of financial assets means delivering financial assets
within the time limit of laws, regulations and usual market practices and in line with contract terms.
The trading day refers to the date when the Company promises to acquire or sell financial assets.
(2) Classification and Measurement of Financial Assets
At initial recognition, according to the business model of managing financial assets and the
contractual cash flow characteristics of financial assets, the Company classified financial assets into
the following categories: financial assets measured at the amortized cost, financial assets measured
at fair value through profit and loss for the current period, and financial assets measured at fair
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value through other comprehensive income of the current period. In this case, unless the Company
changed its business model of managing financial assets, all relevant financial assets that were
affected shall be subject to re-classification on the first day during the first Reporting Period, and
shall not be re-classified after the initial recognition.
Financial assets were measured at fair value upon initial recognition. For financial a ssets
measured at fair value through profit and loss for the current period, transaction costs were directly
included in profit and loss of the current period. For other types of financial assets, related
transaction costs were included in their initial recognized amounts. The Company conducted the
initial measurement of the accounts receivable and notes receivable arising from selling products or
providing labor services without or not considering major financing components according to the
transaction prices defined by the revenue standards.
The subsequent measurement of financial assets depended on their categories:
① Assets measured at amortized cost
Financial assets that meet all the following conditions shall be classified as financial assets
measured at amortized cost: The Company's business model of managing the financial assets aims
at obtaining contractual cash flows; and, as stipulated by contract clauses of the financial assets, the
cash flows generated on a specific date are merely for the payment of principal or interest from the
unpaid principal. Such financial assets were subsequently measured at amortized costs using the
effective interest method. Gain or loss arising from derecognition, amortization using the effective
interest method or impairment was included in profit and loss of the current period.
② Financial assets at fair value through other comprehensive income
Financial assets that met all the following conditions shall be classified as financial assets
measured at fair value through other comprehensive income: The Company's business model of
managing the financial assets aims at obtaining contractual cash flows as well as selling financial
assets; and, as stipulated by contract clauses of the financial assets, the cash flows generated on a
specific date are merely for the payment of principal or interest from the unpaid principal. Such
financial assets shall be subsequently measured at fair value. Except for impairment losses or gains
and exchange gains and losses that were recognized as profit and loss of the current period, changes
in the fair value of such financial assets shall be recognized as other comprehensive income, until
the financial assets were derecognized when accumulative gains or losses shall be transferred to
profit and loss of the current period. The interest income of the financial asset calculated by the
effective interest method shall be recognized as the profit and loss of the current period.
For financial assets measured at fair value through other comprehe nsive income that were
irrevocably chosen and designated by the Company from some non-trading equity instruments, the
relevant dividend income shall be included in profit and loss of the current period and changes in
the fair value shall be recognized as other comprehensive income, until the financial assets were
derecognized when accumulative gains or losses shall be transferred to retained earnings.
③ Financial assets measured at fair value through profit and loss for the current period
The above financial assets measured at amortized cost and financial assets other than those
measured at fair value through other comprehensive income were classified as financial assets at
fair value through profit and loss for the current period. Such financial assets shal l be measured at
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fair value, and all changes in fair value were recognized as the profit and loss of the current period.
(3) Classification and Measurement of Financial Liabilities
The Company classified financial liabilities into financial liabilities measured at fair value
through profit and loss for the current period, loan commitments at an interest rate that was lower
than the market interest rate and financial guarantee contract liabilities, and financial liabilities
measured at amortized cost.
The subsequent measurement of financial liabilities depended on their categories:
① Financial liabilities measured at fair value through profit and loss for the current period
Such financial liabilities included held-for-trading financial liabilities (including derivatives
that are financial liabilities) and financial liabilities designated as financial liabilities measured at
fair value through profit and loss for the current period. After initial recognition, for the subsequent
measurement of such financial liabilities at fair value, except for those related to hedge accounting,
gain or loss arising (including interest expense) shall be included in profit and loss of the current
period. However, for financial liabilities measured at fair value through profit and loss for the
current period designated by the Company, the changes in the fair value of such financial liabilities
resulting from the changes in their own credit risks shall be included in other comprehensive
income, and when such liabilities were derecognized, accumulative gains and losses that were
previously included in other comprehensive income shall be transferred out of other comprehensive
income and included in retained earnings.
② Loan commitments and financial guarantee contract liabilities
A loan commitment is a commitment offered by the Company to customers to grant loans to
the customers according to the established contract clauses within the commitment period.
Provisions shall be set aside for loan commitments according to the expected credit loss model.
Financial guarantee contracts refer to contracts that require the Company to pay a specific
amount to the contract holder who has suffered losses when a specific debtor fails to pay in
accordance with the initial or revised terms of the debt instrument. The subsequent measurement of
financial guarantee contract liabilities shall be conducted based on the amount of loan loss provision
determined following the impairment principle for financial instruments and the initial recognition
amount after deducting the accumulated amortization amount determined according to the revenue
recognition principle, whichever is higher.
③ Financial liabilities measured at amortized cost
After initial recognition, other financial liabilities shall be measured at a mortized cost under
the effective interest method.
Except for special situations, financial liabilities and equity instruments were differentiated
based on the following principles:
① If the Company fails to unconditionally avoid fulfilling a contractual obligation through the
delivery of cash or other financial assets, the obligation fits the definition of financial liabilities.
Although some financial instruments do not explicitly include terms and conditions that require any
obligation of cash or other financial asset, other terms and conditions may be indirectly recognized
as contractual obligations.
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② If a financial instrument shall or may be settled with the Company's equity instruments, it
shall be considered that whether the equity instrument used to settle is recognized as a substitute for
cash or other financial assets or as an approach to enable the instrument holder to enjoy the
remaining equity of the assets after the issuer deducts all liabilities. If the instrument is a substitute,
it is a financial liability of the issuer; if the instrument is for the benefit of its holder, it is an equity
instrument for the issuer. In some cases, the Company shall or may settle the financial instrument
with its equity instruments according to the financial instrument contract and the amount of
contractual obligations or contractual duties equals what the number of equity instruments that are
acquirable or need to be delivered multiplies the fair value of the settlement. On top of that, no
matter the amount of contractual obligations and contractual duties is fixed or adjusts based
partially or completely on variants aside from the market price of the Company's equity instruments
(such as interest rate, the price of a certain good or that of a certain financial i nstrument), the
contract is classified as financial liabilities.
(4) Financial Derivatives and Embe dded Derivatives
Financial derivatives were initially measured at fair value on the date on which the derivative
contract was entered into, and were subseque ntly remeasured at fair value. Derivatives were
recognized as assets when the fair value was positive and as liabilities when the fair value was
negative.
The effective portion of the cash flow hedge is included in other comprehensive income and is
transferred from other comprehensive income and included in the profit or loss of the current period
as the hedged instrument affected profit or loss. In other cases, gains or losses generated by changes
in the fair value were directly included in the profit or loss of the current period.
For hybrid instruments that include embedded derivatives, if the hybrid contract contained a
host that was a financial asset, hybrid instruments fell into regulations applicable to financial assets
classification. Otherwise, the embedded derivatives were separated from the hybrid instruments and
treated as separate derivatives financial instruments if the hybrid contract was not measured at fair
value through profit or loss for the current period, their economic characteristics and risks were not
closely related to those of the host contract and the separate instrument with the same terms as the
embedded derivatives met the definition of a derivative. If the embedded derivative could not be
measured at fair value separately on the date it was obtained or subsequent balance sheet dates, the
hybrid instruments were designated to be financial assets or financial liabilities at fair value through
profit or loss for the current period.
(5) Impairme nt of Financial Instrume nts
The Company recognized, on the basis of expected credit losses, the loss reserves associated
with its financial assets at amortized cost, debt investments, contract assets, lease receivables, loan
commitments, and financial guarantee contracts which were measured at fair value and included in
other comprehensive income.
① Measurement of expected credit loss
Expected credit loss refers to the weighted average of credit loss of financial instruments
weighted with default risks. Credit loss refers to the difference between all contract cash flow
receivables discounted at the original effective interest rate under the contract and all expected cash
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flow receivables, i.e., the present value of all cash shortages. Specifically, acquired or originated
credit-impaired financial assets of the Company shall be translated at the credit-adjusted effective
interest rate.
Lifetime expected credit losses refer to those caused by possible defaults during the entire
expected duration of a financial instrument.
The expected credit losses in the next 12 months refers to those caused by the default events of
the financial instrument that may occur within 12 months (or the expected duration if the expected
duration of the financial instrument is less than 12 months) after the balance s heet date, and it is part
of the expected credit losses in the entire duration.
On each balance sheet date, the Company respectively measured the expected credit losses of
financial instruments in different stages. If the credit risk of a financial instrument has had no
significant increase since its initial recognition, the instrument shall fall in the first stage, for which
the Company would measure the loss reserves according to the expected credit losses in the future
12 months. If the credit risk of a financial instrument has had a significant increase since its initial
recognition but no credit impairment has occurred, the instrument shall fall in the second stage, for
which the Company would measure the loss reserves according to the expected credit l osses in the
entire duration of the instrument. If the credit impairment has occurred since its initial recognition,
the financial instrument shall fall in the third stage, for which the Company would measure the loss
reserves according to the expected credit losses in the entire duration of the instrument.
As for a financial instrument with low credit risks on the balance sheet date, the Company
measured the loss reserves according to the expected credit losses in the future 12 months, assuming
that its credit risk has had no significant increase since its initial recognition.
For financial instruments with low credit risks in stages 1 and 2, the Company calculated the
interest income at the effective interest rate and on the carrying amount of the instruments without
deductions for provisions for asset impairment. For financial instruments in stage 3, interest income
was calculated at the effective interest rates and on the amortized cost by reducing the provisions
for asset impairment from the carrying amount.
For notes receivables, accounts receivables, financing receivables, contract receivables, and
long-term receivables, whether there was a significant financial component or not, the Company
measured the loss reserves based on the lifetime expected credit losses.
A. Receivables/Contract assets
Receivables with objective evidence of impairment and those applicable to individual
assessment, such as notes receivable, accounts receivable, other receivables, receivables financing,
contract assets and long-term receivables, were individually tested for impairment to recognize
expected credit losses and accrue the individual provisions for asset impairment. For receivables
without objective evidence of impairment, such as notes receivable, accounts receivable, other
receivables, receivables financing, contract assets and long-term receivables, or when an individual
financial asset could not assess expected credit losses at a reasonable cost, the Company classified
notes receivable, accounts receivable, other receivables, receivables financing, contract assets and
long-term receivables into several groups based on credit risk features, and expected credit losses
were calculated based on the groups. The grounds for the determination of groups were presented as
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follows:
(a) Notes receivable groups were determined based on the following grounds:
Group 1 of note receivable: Bank acceptance
Group 2 of note receivable: Trade acceptance
For notes receivables classified as groups, the Company calculated expected credit los ses
through exposure to default risks and the expected credit loss rate during the entire duration with
historical credit losses, current situations and forecast for the future economy as a reference.
(b) Groups of accounts receivable were determined based on the following grounds:
Group 1 of accounts receivable: Related party group
Group 1 of accounts receivable: Non-related party group
For accounts receivables classified as groups, the Company calculated expected credit losses
through exposure to default risks and the expected credit loss rate during the entire duration, with
historical credit losses, current situations, and forecast of the future economy as a reference.
(c) Groups of other receivables were determined based on the following grounds:
Group 1 of other receivables: Related party group
Group 2 of other receivables: Non-related party group
For other receivables classified as groups, the Company calculated expected credit losses
through exposure to default risks and the expected credit loss rate in 12 coming months or the entire
duration, with historical credit losses, current situations, and forecast of the future economy as a
reference.
(d) Groups of receivable financing were determined based on the following grounds:
Group 1 of receivable financing: Notes receivable
Group 2 of receivable financing: Accounts receivable
For receivables financing classified as groups, the Company calculated expected credit losses
through exposure to default risks and the expected credit loss rate during the entire duration, with
historical credit losses, current situations, and forecast of the future economy as a reference.
(e) Groups of contract assets were determined based on the following grounds:
Group 1 of contract assets: Finished but unsettled assets
Group 2 of contract assets: Undue guarantee deposits
For contract assets classified as groups, the Company calculated the expected credit losses
through exposure to default risks and the expected credit loss rate during the entire duration, with
historical credit losses, current situations, and estimates for the future economy as a reference.
(f) Groups of long-term receivable were determined based on the following grounds:
Group 1 of long-term receivables: Construction receivables
Group 2 of long-term receivables: Other receivables
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For long-term receivables classified as Group 1, the Company calculated expected credit losses
through exposure to default risks and the expected credit loss rate in the entire duration, with
historical credit losses, current situations, and estimates for the future economy as a reference.
For long-term receivables classified as Group 2, the Company calculated expected credit losses
through exposure to default risks and the expected credit loss rate in 12 coming months or the entire
duration, with historical credit losses, current situations, and estimates for the future economy as a
reference.
B. Debt investments and other debt investments
For debt investments and other debt investments, the Company, on the basis of the nature of
investment and various types of counter-parties and risk exposures, calculated expected credit
losses through exposure to default risks and the expected credit loss rate in 12 coming months or the
entire duration.
② Low credit risks
A financial instrument was considered as one with low credit risks if the following conditions
were met: the financial instrument has low risks of default; the borrower's capability to fulfill the
contractual cash flow obligations in a short term is strong and will not be undermined by negative
changes in long-term economic development and operation environment.
③ A surge in credit risks
By comparing the default rate within the expected duration of a financial instrument
recognized on the date of balance sheet and the default rate withi n the expected duration at initial
recognition, the Company determined the relative changes of the default rate within the expected
duration so that whether the credit risks of a financial instrument rocketed since the initial
recognition was assessed.
When doing the assessment, the Company considered reasonable and well-grounded
information that needed no unnecessary extra costs or endeavors including forward-looking
information. The Company considered the following information:
A. Whether the internal price indicator caused by the change in credit risks varies significantly;
B. Adverse changes in businesses, financial or economic situations that are expected to cause
significant changes in the debtor's capability to perform the obligation of repayment;
C. Whether the effective or expected operation achievements of the debtor change significantly;
whether there are unfavorable changes in the borrower's regulatory, economic and technical
environment;
D. Whether the value of collateral for debt mortgage, or the quality of the collateral or credit
enhancement provided by a third party changes significantly; These expected changes will reduce the
debtor's economic motive for repaying on the agreed date or affect the rate of default;
E. Whether the economic motive that is expected to affect repayment on the agreed date changes
significantly;
F. Whether expected changes of loan contract including the expected breach of contract will lead
to the exemption from or the revision of contractual obligations, interest-free periods, the interest
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jump, requirement for more collaterals or guaranties, or other changes in the contractual framework
of financial instruments;
G. Whether the expected performance and repayment of the debtor change significantly; and
H. Whether the contract payment is overdue for 30 days or more.
According to the nature of financial instruments, the Company assessed whether the credit risk
increased significantly based on individual financial instruments or portfolios of financial
instruments. When doing the portfolio-based assessment, the Company could classify financial
instruments based on shared features of credit risks, for instance, overdue information and credit
risk ratings.
Usually, if a financial instrument was more than 30 days overdue, the Company recognized
that its credit risks had increased significantly. Unless the Company could obtain reasonable and
well-grounded information without too many costs and efforts to prove that there was no surge of
credit risks since initial recognition although the payment had been over 30 days later than the
payment period agreed in a contract.
④ Financial assets with incurred credit impairment
The Company assessed whether credit impairment has incurred to the financial assets
measured at amortized cost and the debt investments measured at fair value and included in other
comprehensive income on the balance sheet date. If one or more incidents that had an adverse effect
on the expected cash flows of a financial asset occurred, the asset was recognized as o ne with
incurred credit impairment. Evidence for financial assets with incurred credit impairment included
the following observable information:
The issuer or debtor has significant financial difficulties; the debtor breaches the contract, such
as default or being overdue in the payment of interest or principal; for economic or contractual
reasons related to the debtor, the creditor gives the debtor concessions that he would not make
under any other circumstance; the debtor is likely to go bankrupt or under go other financial
reorganization; the financial difficulty of the issuer or debtor leads to the disappearance of the
active market for the financial asset; the purchase or generation of a financial asset at a substantial
discount that reflects the fact that a credit loss has occurred.
⑤ Presentation on expected credit loss reserves
To reflect changes in the credit risk of financial instruments since the initial recognition, the
Company remeasured expected credit losses on every balance sheet date. The co nsequent increases
or reversals of loss reserve shall be included as impairment losses or gains into profit or loss for the
current period. For financial assets measured at amortized cost, impairment losses were allocated to
offset the carrying value of the financial asset presented in the balance sheet. For the debt
investments measured at fair value through other comprehensive income, the Company recognized
their loss reserves in other comprehensive income but not offset the carrying value of the financia l
asset.
⑥ Write-offs
If the Company no longer reasonably expected the contractual cash flows of a financial asset
could be completely or partially recaptured, the carrying amount of the financial asset shall be
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directly written down. Such write-downs constructed the derecognition of relevant financial assets.
This usually happened when the Company recognized that the debtor did not have assets or income
sources to generate sufficient cash flows for the repayment of write-downs.
Recaptured financial assets with write-downs were included as the reversal of impairment
losses in profit or loss for the current period.
(6) Financial asset transfer
Financial asset transfer refers to the following two situations:
A. The contractual right to obtain cash flows from the financial asset is transferred to the other
party.
B. The financial asset is completely or partially transferred to the other party, but the contractual
right to obtain cash flows is reserved and the contractual obligation to pay cash flow obtained to o ne
or more payees was assumed.
① Derecognition of transferred financial assets
A financial asset was derecognized if almost all the risks and rewards of its ownership had
been transferred or if the Company had retained no control over the financial asset, even if almost
all the risks and rewards of its ownership were neither transferred nor retained.
Judgment about waiver of the control over transferred financial assets was based on the
effective capability of the transferor to sell the financial asset. If the transferor could have ex parte
and overall sales of the transferred financial asset to an unrelated third party, and the sales were
with no extra constraining factors attached, it was recognized that the Company had waived the
control over the financial asset.
The Company valued the essence of financial asset transfer when judging whether the transfer
met the conditions for derecognition.
If the overall transfer of financial assets met the conditions for derecognition, the difference
between the following amounts was included in the profit and loss for the current period:
A. Carrying value of the transferred financial assets;
B. The sum of the consideration due to transfer and the cumulative amount of fair value changes
originally included in other comprehensive income that corresponds to the derecognized portion
(transfer-related financial assets refer to those classified as financial assets measured at fair value
through other comprehensive income in line with Article 18 of Accounting Standards for Busi ness
Enterprises No. 22-Recognition and Measurement of Financial Instruments).
For partial transferred financial assets that met the conditions for derecognition, the carrying
value of the overall transferred financial assets was allocated at the respective relative fair value on
the transfer date between the recognized portion and the derecognized portion (in this case, retained
service assets are considered as part of the recognized financial assets), and the following two
accounts were included in profit or loss for the current period:
A. The carrying value of the derecognized portion on the derecognition date.
B. The sum of the consideration the derecognized portion and the cumulative amount of fair
value changes originally included in other comprehensive income that corresponds to the
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derecognized portion (transfer-related financial assets refer to those classified as financial assets
measured at fair value through other comprehensive income in line with Article 18 of Accounting
Standards for Business Enterprises No. 22-Recognition and Measurement of Financial Instruments).
② Continuous involvement of transferred financial assets
If almost all the risks and rewards of ownership of the transferred financial assets were neither
transferred nor reserved and the control over it was not waived, relevant financial assets shall be
recognized based on the extent of continuing involvement with transferred financial assets, and
related liabilities shall be recognized as well.
The extent of continuing involvement with transferred financial assets refers to the extent of
risks of changes in the value of transferred financial assets or the rewards the enterprise undertakes.
③ Continuous recognition of transferred financial assets
If almost all the risks and rewards of ownership of the transferred financial assets were
reserved, the overall transferred financial asset shall be recognized continuously and the
consideration obtained shall be recognized as a financial liability.
The financial asset could not offset relevant recognized financial liabilities. In the subsequent
accounting period, the enterprise shall continue to recognize the revenues (or gains) generated by
the financial asset and the costs (or losses) generated by the financial liability.
(7) Offset between Financial Assets and Financial Liabilities
Financial assets and financial liabilities shall be presented separately in the balance sheet and
shall not offset each other. But if they met all the following conditions, the net amount after they
offset each other was reported in the balance sheet:
The Company had an enforceable legal right to offset the recognized amounts.
The Company planned to settle them on a net basis or to realize the financial assets and pay off
the financial liabilities at the same time.
The transferor shall not offset transferred financial assets that fail to meet the criteria for
derecognition against relevant liabilities.
(8) Method of Determining the Fair Value of Financial Instrume nts
Please refer to Section XII. V. (10) for the method of determining the fair value of financial
assets and financial liabilities.
11. Notes Receivable
Please refer to the description of financial instruments.
12. Accounts Receivable
Please refer to the description of financial instruments.
The Company shall comply with the disclosure requirements of the Guidelines No. 6 of Shenzhen Stock Exchange on Industry
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Information Disclosure -- Listed Companies Engaging in Home Furnishing and Decoration Business.
Please refer to the description of financial instruments.
13. Receivables Financing
Please refer to the description of financial instruments.
14. Other Receivables
The determination methods and accounting methods of the expected credit losses of other receivables.
Please refer to the description of financial instruments.
15. Inventories
(1) Classification of Inventories
Inventories refer to finished products the Company holds for sales in routine activities, work in
process, and materials and supplies consumed in production process or when providing services,
such as raw materials, merchandise on hand, work in process, consumptive biological assets, and
turnover materials.
(2) Pricing Method of Issuing Inventories
Inventories of the Company were priced using the weighted average method when being
issued.
(3) The Inventory System
The Company adopted the perpetual inventory system which performed at least a stocktaking
annually and included inventory shortage and overage into profit and loss for that year.
(4) The Accrual Method for Falling Price Reserves of Inventories
On the balance sheet date, the measurement, based on which was smaller between the cost and
the net realizable value, was put in practice. If the cost of inventories was higher than its net
realizable value, then the accrual for inventory falling prices reserves was implemented and the
figure was included in the profit or loss for the current period.
The net realizable value of inventories was determined on the basis of reliable evidence while
taking into account the purpose of holding inventories and the effect of items after the balance sheet
date.
① In regular production and operation, the determination of the net realizable value for
inventories for direct sales, such as finished goods, goods and materials for sale, was the expected
selling price minus the expected selling expense and relevant taxes. The net realizable value of the
inventories which were owned in order to execute a sale contract or a labor services agreement was
measured on the basis of the contract price. If inventories owned by the Company were more than
quantities ordered in sale contracts, the net realizable value of exceeding quantities of inventories
was measured on the basis of the common selling price. The net realizable value of materials for
sale and so on was measured on the basis of market price.
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② In regular production and operation, the determination of the net realizable value of
materials inventories that needed processing was the expected selling price of finished goods that
were about to produce minus the cost that was about to be incurred when completion, the expected
selling expense and the relevant taxes. If the net realizable value of the finished good that was about
to produce was higher than the cost, the correlated material was measured at the cost; if the drop of
the price of the material indicated that the net realizable value of the finished good was lower than
the cost, the correlated material was measured at net realizable value and the accrual of reserves for
falling price of inventories was implemented on the basis of the difference.
③ Generally the reserves for falling price of inventories were accrued at a single inventory
unit, but if the number of inventories was large and the price was low, the accrual was on the basis
of categories of inventories.
④ If the influence of the previous write-down value of inventories had vanished on the
balance sheet date, the write-down was recovered and reversed within the amount of the previously
accrued reserves for falling price of inventories. The reversed amount was included in the profit or
loss for the current period.
(5) The Amortization Method of Turnover Materials
① Amortization method of low-value and perishable items: One-off resale method was
adopted when these items were utilized.
② Amortization method of packaging items: One-off resale method was adopted when these
items were utilized.
16. Contract Assets
Contract assets and contract liabilities
Applicable from 1 January 2020
The Company reported contract assets or contract liabilities on the balance sheet in accordance
with the relationship of performance obligations and customer payment. The consideration the
Company had the right to receive from transferring goods to or providing services from customers
(in the meantime this right was dependent on other factors except time lapse) was reported as
contract assets. The obligations of transferring goods to or providing services for customers as a
result of the consideration that the Company had received or shall receive from customers were
reported as contract liabilities.
Please refer to Section XII. V. (10) for the Company's recognition methods and accounting
methods of the expected credit losses of contract assets.
Contract assets and contract liabilities were reported separately on the balance s heet. Contract
assets and contract liabilities in the same contract were reported in the form of net amount. If the net
amount was debit balance, it was reported in the items of "Contract assets" or "Other non-current
assets" according to its liquidity. If the net amount was credit balance, it was reported in the items
of "Contract liabilities" or "Other non-current liabilities" according to its liquidity. Then contract
assets and contract liabilities in different contracts could not offset each other.
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Please refer to Section XII. V. (10) for the Company's recognition methods and accounting
treatment methods of the expected credit losses of contract assets.
17. Contract Costs
Applicable from 1 January 2020
The contract cost could be divided as contract performance cost and contract acquisition cost.
The cost incurred by performing a contract by the Company was recognized as an asset in the
form of contract performance cost when it met all the following conditions:
① The cost was directly related to a current or an expected contract including the cost of
direct labor, direct material and manufacture (or similar cost), and the clearly determined cost
assumed by customers and other costs that were incurred only for the contract.
② The cost increased the resources that the Company would use for performing the
performance liabilities in the future.
③ The cost was expected to be recovered.
If the incremental cost incurred by the Company's acquisition of the contract was expected to
be recovered, it was recognized as an asset in the form of contract acquisition cost.
The asset relevant to contract cost was amortized on the same basis as goods or service
revenue recognition relevant to this asset; but if the amortization period of the contract acquisition
cost was no more than one year, the Company included it into the profit or losses for the current
period when it was incurred.
If the carrying value of the assets related to contract costs was higher than the difference
between the two figures below, the Company would set aside provisions for assets impairment to
deal with the extra part, and recognized that part as asset impairment losses, further considering
whether to accrue provisions related to contracts with losses:
① Estimated residual consideration to be obtained from the transfer of commodities or
services related to the assets;
② Estimated costs incurred from the transfer of the relevant commodities or services.
If reversal occurred after the provisions for assets impairment mentioned above, the asset
carrying value after reversal was no more than the carrying value of the asset on the reversal date
assumed to be the amount without accrual of provision for assets impairment.
The contract performance cost recognized as an asset was reported in the item of "Inventories"
if the amortization period was no more than one year or a regular operating period when it was first
recognized; if the amortization period was more than one year or a regular operating period when it
was first recognized, it would be reported in the item of "Other non-current assets".
The contract acquisition cost recognized as an asset was reported in the item of "Other current
assets" if the amortization period was no more than one year or a regular operating period when it
was first recognized; if the amortization period was more than one year or a regular operating
period when it was first recognized, it would be reported in the item of "Other non-current assets".
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18. Assets Held for Sale
(1) The Classification of Held-for-sale Non-current Assets or Disposal Groups
The Company classified the non-current assets or disposal groups that met all the following
conditions as assets held for sale:
① In accordance with the practice of selling such assets or disposal groups in similar
transactions, they could be sold immediately in the current situation;
② The sale was likely to occur, i.e., the Company has already made a resolution of an offer
and the acquisition commitment was confirmed, and the offer was expected to be completed within
one year. (Approval has been obtained for those that can be sold only after being approved by
relevant authorities or regulators of the Company subject to relevant regulations.)
The non-current assets or disposal groups acquired by the Company in order to resell was
classified as assets held for sale on the acquisition date if they not only met the condition that the
sales were expected to finish within one year but that they were likely to meet other conditions to be
classified as held-for-sale assets in a short term (usually 3 months).
If the Company lost its control rights over its subsidiary due to selling the investments in the
subsidiary or for some other similar reasons, provided that the to-be-sold investments in the
subsidiary met the condition to be classified as held-for-sale assets, in some of all the financial
statements of the Company as the parent, these investments would be classified as assets held for
sale, and in the consolidated financial statements, all assets and liabilities of the subsidiary would be
classified as held-for-sale, no matter whether the Company maintained some of the equity
investments after sales.
(2) The Measure ment of Held-for-sale Non-current Assets or Disposal Groups
The measurements of the following items were applicable to other related accounting standards
respectively: the investment property measured later at fair value model, the biological asset
measured at the net amount which equaled the fair value minus sales cost, the assets formed by
employees' salaries, deferred income tax assets, the financial assets regulated by accounting
standards relevant to financial instruments and the rights generated in the insurance contract
regulated by insurance-contract-related accounting standards.
When the held-for-sale non-current assets or disposal groups were initially measured or
measured again on the balance sheet date, if the carrying value was higher than the net amount
which equaled fair value minus sales cost, the carrying value was written down to the net amount
equaling fair value minus sales cost, and the write-down was recognized as asset impairment loss
and included in the profit and loss for the current period. And the provisions for asset impairment
for the assets held for sale was accrued at the same time.
When non-current assets or disposal groups were no longer classified as held-for-sale assets
because they no longer met the conditions to be classified as held-for-sale assets, or when
non-current assets were removed from held-for-sale disposal groups, the measurement was based on
whichever was smaller between the following two figures:
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① The amount of the carrying value before the classification of held-for-sale assets and after
the adjustment of depreciation, amortization or write-down that shall have been recognized
assuming that the assets were not classified as held-for-sale.
② The amount that was recoverable.
(3) The Reporting
The Company reported the held-for-sale non-current assets or assets in disposal groups
separately in the balance sheet to distinguish them from other assets, and reported the liabilities in
held-for-sale disposal groups separately in the sheet to distinguish them from other liabilities. The
held-for-sale non-current assets or assets in held-for-sale disposal groups could not offset the
liabilities in held-for-sale disposal groups, and they were reported as current assets and current
liabilities respectively.
19. Debt Investments
20. Other Debt Investments
21. Long-term Receivables
Please refer to the description of financial instruments.
22. Long-term Equity Investments
Long-term equity investments of the Company refer to the equity investments where the
Company exerts control and significant influence on the investee as well as the equity investment in
its joint ventures. If the Company is able to exert significant influence on it, the investee is an
associate of the Company.
(1) The Grounds for Determining the Joint Control and Significant Influence over
Investees
Joint control refers to the common control over a particular arrangement accordi ng to relevant
agreement, and that the decisions on relevant activities under such arrangement are subject to the
unanimous consent from the parties sharing the joint control. When the judgment of whether joint
control existed or not was executed, the first to judge was whether all parties or a group of parties
controlled the arrangement collectively. If relevant activities under an arrangement was only
determined by the concerted action of all parties or a group of parties, then it was thought that all
parties or a group of parties controlled the arrangement collectively. The next to judge was whether
the decisions on relevant activities under such arrangement were subject to the unanimous consent
from the parties that controlled the arrangement collectively. If there were two or more party groups
that had the ability to control an arrangement collectively, there was no joint control. When the
judgment of whether joint control existed was executed, the possessed protection right was not
considered.
Significant influence refers to having the power to participate in the financial and operating
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policy decision-making of the investee, but cannot control or, together with other parties, jointly
control the formulation of these policies. In the determination of whether significant influence was
exerted on the investee, the influence of the investees' voting power stocks that were held directly or
indirectly by the investor, and the influence after assuming that the executable potential voting
power for the current period held by the investor and other parties was converted into the equity
interest of the investee were taken into account. These included the influences of convertible stock
warrant, stock option and convertible corporate bonds for the current period issued by the investee.
When the Company held more than 20% (inclusive) but less than 50% of the voting power
stocks of the investee directly or indirectly through a subsidiary, it was generally deemed as having
a significant influence over the investee. Unless there was clear evidence indicating that under this
condition the Company could not participate in the production and operation decisions of the
investee, the significant influence still maintained.
(2) Determination of Initial Investment Cost
① The investment cost of the long-term equity investments formed by business combination
was determined on the basis of the following regulations:
A. If the business combination was under the same control and the combinator used cash
payment, non-cash asset assignment or debt assumption as the consideration of combination, the
initial investment cost of the long-term equity investments was recognized at the portion of the
carrying value of the combined party's owners' equity in the consolidated financial statement of the
ultimate controlling party on the date of combination. The difference between the initial investment
cost of long-term equity investments and the carrying value of paid cash, assigned non-cash assets
and assumed debts was referred to adjusting capital reserves; if capital reserves were not enough for
the reduction, then retained earnings were adjusted.
B. If the business combination was under the same control and the combinator used equity
flotation as the consideration of combination, then the initial investment cost of the long-term equity
investments was recognized at the portion of the carrying value of the combined party's owner's
equity in the consolidated financial statement of the ultimate controlling party on the date of
combination. The difference between the initial investment cost of the share capital and the long-term
equity investments and the total carrying value of the issued stocks was the sum of the carrying value
of the issued stocks, which was referred to adjusting capital reserves; if capital reserves were not
enough for the reduction, then retained earnings were adjusted.
C. If the business combination was not under the same control, then the initial investment cost of
the long-term equity investments was the combination cost, which was measured at the fair value of
the assets paid for the control right over the acquired party, the liabilities incurred or assumed and the
equity securities issued on the date of acquisition. The commissions incurred as a result of business
combination, such as intermediary costs of audit , legal services, consultation and assessment, and
other relevant administrative expenses, were included in the profit and loss for the current period
when incurred.
② The investment cost of the long-term equity investments acquired by other means (that is,
except by the means of business combination) was determined on the basis of the following
regulations:
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A. For the long-term equity investments acquired by payment in cash, the investment cost was
the actual purchasing price that was paid. The initial investment cost included the expenses directly
related to the acquisition of long-term equity investments, taxes and other necessary expenditure.
B. For the long-term equity investments acquired by issuing equity securities, the initial
investment cost was the fair value of the issued equity securities.
C. For the long-term equity investments acquired by converting non-monetary assets, if the
conversion had commercial substance and in the meantime the fair value of the received assets or
surrendered assets could be measured reliably, the initial investment cost shall be the fair value of the
surrendered assets and other taxes, and the difference between the fair value of the surrendered assets
and the carrying value was included in the profit and loss for the current period; if the non-monetary
assets conversion did not meet the aforesaid two conditions concurrently, the initial investment cost
was the carrying value of the surrendered assets and other taxes.
D. For the long-term equity investments acquired through debt restructuring, the carrying value
was determined based on the fair value of the waived creditor's rights and other costs such as taxes
directly attributable to the asset, and the difference between the fair value and carrying value of the
waived creditor's rights was included in the profit and loss of the current period.
(3) Subsequent Measurement and Recognition of Profit and Loss
The Company was able to account for the long-term equity investments controlled by the
investee. The equity method would be adopted for long-term equity investments of associates and
joint ventures.
① Cost method
For the long-term equity investments measured by cost method, the Company adjusted the cost
of long-term equity investments when providing additional investments or repaying the investments;
the cash dividends or profits declared by the investee were recognized as return on investment for
the current period.
② Equity method
The common accounting treatment of long-term equity investments measured under the equity
method:
If the amount of the Company's investment cost for the long-term equity investments was
larger than the share of the investee's identifiable net assets of the fair value entitled to the Company
at the time of investment, the initial investment cost of the long-term equity investments would not
be adjusted. If the amount of the Company's initial investment cost for the long-term equity
investments was smaller than the share of the investee's identifiable net assets of the fair value
entitled to the Company at the time of investment, the difference was included in the profit and loss
for the current period, while the cost of the long-term equity investments was adjusted concurrently.
The Company recognized the return on investment and other comprehensive income
respectively, according to the allocated share of net profit and loss and other comprehensive income
reported by the investee as it was entitled to share or was responsible for sharing, while the carrying
value of the long-term equity investments were adjusted. The Company measured its allocated share
according to the profits and cash dividend declared by the investee, while a commensurate
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reduction incurred to the carrying value of the long-term equity investments. For other changes in
owners' equity of the investee except the net profit and loss, other comprehensive income and profit
distribution, the carrying value of the long-term equity investments was adjusted and the changes
were included in the owners' equity. When recognizing the allocated share of net profit of loss of
the investee, the Company recognized the net profit and loss of the investee after adjustment, based
on the fair value of the identifiable net assets of the investee at the time of obtaining the investments.
If there was any inconsistency of the accounting policy and accounting period between the investee
and the Company, adjustments on the financial statements of the investee were conducted according
to the Company's accounting policy and accounting period. Based on the adjustment, the return on
investment and other comprehensive income were recognized correspondingly. The proportion
attributed to the Company of unrecorded profit or loss of internal transactions between the
Company and associates and joint ventures was calculated and set off according to the proportion
entitled to the Company, while its profit or loss of the investments were recognized correspondingly.
Unrecorded internal transaction losses incurred between the Company and the investee were
recognized in full if they fell under asset impairment loss.
If the Company was able to impose critical impact on the investee or to implement common
control but not constitute control due to the supplementary investment or any other reason, the sum
of the cost of the additional investment and the fair value of the equity investment originally held by
the Company was re-measured as the initial investment cost under the equity method. If the original
equity investment of the Company was classified as investments in other equity instruments, the
difference between the fair value and the carrying value, and the cumulative gains or losses
originally included in the other comprehensive income shall be transferred from other
comprehensive income to retained earnings at the time the investment was measured under the
equity method.
If the Company lost the common control or critical impact on the investee due to the disposal
of part of the equity investment or any other reason, the residual equity after disposal shall be
included in the profit and loss of the current period at the difference between the fair value and the
carrying value on the date the Company lost joint control or the date of critical impact on the
investee. Other comprehensive income from the original equity investment calculated and
recognized under the equity method shall be kept account of on the same basis of the direct disposal
of relevant assets or liabilities by the investee when it was ceased to keep account of the investment
using equity method.
(4) Equity Investment Held for Sale
For the related accounting treatment to wholly or partly classify the equity investment in
associates or joint ventures as assets held for sale, please refer to Section XII. V. (18).
The residual equity investment not classified as assets held for sale was treated by the equity
method.
If the equity investment in associates or joint ventures was classified as investment held for
sale and was no longer eligible for the criteria to be classified as assets held for sale, the Company
conducted retroactive adjustment under the equity method from the date it was classified as assets
held for sale. The Company made corresponding adjustment to the financial statement classified as
in the period held for sale.
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(5) Impairme nt Test Method and Accrual Method of Provisions for Asset Impairme nt
For the methods to accrue assets impairment for the investments in the subsidiaries, associates
and joint ventures, please refer to Section XII. V. (31).
23. Investment Property
Measurement model of Investment property
Measurement by the cost method
Depreciation or amortization method
(1) Measurement Model for Investment Property
The Company adopted the cost model to conduct follow-up measurement for the investment
property. Please refer to Section XII. V. (31) for the methods to accrue assets impairment.
The Company adopted the straight line method for the calculation of depreciation or
amortization of the cost of investment property after the accumulative impairment and net residual
value were deducted from it. The depreciable life and the annual depreciation rate were determined
according to the classification of the investment property, the estimated economic useful life, and
the estimated net residual value rate.
Category Depreciable life (year) Residual value rate (%) Annual depreciation rate (%)
Properties and buildings 20-30 5-10 4.75-3.00
Land use rights 50 - 2.00
24. Fixed Assets
(1) Recognition Conditions
Fix assets refer to tangible assets with higher unit values and a service life over one year that are held to produce goods, providing
services, leasing or operation and management. If the fixed assets fulfilled all the following conditions, it would be recogn ized at the
actual cost at the time it was acquired: a) The economic benefits related to this fixed assets have a good chance to flow into the
enterprise. b) The cost of this fixed assets can be reliably measured. If the follow-up expenditure of fixed assets incurred was eligible
for the recognition conditions of the fixed assets, the Company included it in the cost of fixed assets and the expenditure not eligible
in profit or loss for the current period when it incurred.
(2) Depreciation Method
Category Depreciation method Depreciable life Residual value rate Annual depreciation rate
Straight-line depreciation
Properties and buildings 20-30 5-10 4.75-3.00
method
Straight-line depreciation
Mechanical equipment 10-14 5-10 9.50-6.43
method
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Transportation Straight-line depreciation
5-8 5-10 19.00-11.25
equipment method
Straight-line depreciation
Office equipment 5-8 5-10 19.00-11.25
method
Straight-line depreciation
Electronic equipment 5-8 5-10 19.00-11.25
method
Straight-line depreciation
Other equipment 5-8 5-10 19.00-11.25
method
If the provisions for asset impairment of the fixed assets had been accrued, the Company
deducted the provision during the accrual of depreciation.
The Company reviewed the service life, the estimated net residual value, and the depreciation
method of fixed assets at the end of each year. If there was any difference between the estimated
service life and the original estimation, the service life of the fixed assets were adjusted.
(3) Determination Basis and Valuation and Depreciation Methods of Fixed Assets Acquired under Finance
Leases
If the Company substantially transferred all the risks and rewards related to assets to the finance assets leased, this lease of the fixed
assets was recognized as the finance lease. The cost of fixed assets obtained from finance lease was determined according to the
lower amount of the fair value of the leasehold property on the date of the lease commencement and the present value of the
minimum lease payment. The depreciation policy for the accrual of the depreciation of the leasehold property for the fixed assets
acquired under the finance lease was consistent with that adopted for the Company's fixed assets. If it can be reasonably asc ertained
that the ownership of the leasehold property can be obtained by the expiration of the tenancy, the Company accrued the depreciat ion
within the useful life of the leasehold property; otherwise, the Company accrued the depreciation within the shorter of the tenancy
and the useful life of the leasehold property.
25. Construction in Progress
(1) Classification accounting was conducted for construction in progress according to the
project admission.
(2) The standard and the time point for the construction in progress to be carried forward as
fixed assets
For the projects of construction in progress, all expenses incurred before the constructed assets
reached their expected serviceable condition were recognized as the book value of the fixed assets.
It included the construction expenses, the original prices of the machines and equipment, other
necessary expenditures incurred for the construction in progress to reach its expected serviceable
condition, the borrowing costs incurred as the equity's special borrowings before it reached the
expected serviceable condition, and the borrowing cost incurred as general borrowings required.
The Company transferred the construction in progress to fixed assets, when the engineering
installation and construction were completed and reached the expected serviceable condition. The
constructed fixed assets which reached the expected serviceable condition but did not went through
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the final accounting for the completion were transferred to fixed assets at their estimated value
according to the project budget, cost estimation and the actual cost of the construction project, on
the date it reached the expected serviceable condition. Meanwhile, its depreciation was accrued by
the depreciation policy of the Company's fixed assets. The original provisional estimate was
adjusted at actual cost after the final accounting for the completion, while the original amount of
depreciation accrued was not adjusted.
26. Borrowing Costs
(1) Recognition Principle of the Capitalization of Borrowing Costs and the Period of the
Capitalization
The Company's borrowing cost incurred directly attributable to the acquisition and
construction of the assets eligible for the capitalization conditions was capitalized and included in
the cost of related assets if the following conditions were satisfied simultaneously:
① Asset expenditure has been incurred;
② Borrowing costs have been incurred;
③ The necessary acquisition, construction, or production activities to make the assets reach
the expected available state have begun.
Other loan interests, discounts or premiums and the exchange difference were included in the
profit and loss for the current period when they were incurred.
If abnormal disruption were incurred for the assets eligible for the capitalization condition
during the acquisition, construction, and production process, and the period of disruption was over 3
months continuously, the capitalization of the borrowing cost was suspended.
When the assets with the acquisition, construction or production meeting the capitalization
conditions reached the expected available or marketable status, the borrowing cost ceased to be
capitalized. The subsequent borrowing costs incurred were recognized as expenses for the current
period.
(2) The Calculation Method of the Capitalization Rate and Capitalization Amount of
Borrowing Costs
For the special borrowings borrowed for acquisition and construction or production of the
assets eligible for capitalization, the capitalization amount of the interest expense of the special
borrowings was determined based on the interest expense actually incurred in the current period of
the special borrowings minus the interest income from unspent borrowing funds deposited in banks
or the amount after the return on investment was obtained from the temporary investment.
If general borrowings were required for the acquisition, construction or production of the
assets eligible for the capitalization condition, the interest amount of the general borrowing to be
capitalized was calculated and determined as the weighted average of the asset expenditure for the
amount of the accumulative capital expenditure that exceeded the special borrowings multiplied by
the capitalization rate of the required general borrowings. The capitalization rate was determined
based on the weighted average interest rate applicable to the general-purpose borrowings.
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27. Biological Assets
(1) Recognition Criteria for Biological Assets
Biological asset refers to the asset consisting of living animals and plants. Biological assets
were recognized if the following conditions were satisfied simultaneously:
① The Company owned or controlled the biological asset due to the past business transaction
or matters;
② There was a high potential that the economic gains or service potential related to this
biological asset would flow in the enterprise;
③ The cost of this biological asset could be reliably measured.
(2) Classification of the Biological Asset
The biological assets of the Company are wood assets, mainly seedlings. These are all
expendable biological assets.
The expendable biological assets were initially measured at their costs.
① The actual expenditure of the expendable biological asset before its crown cover
constituted the cost of the expendable biological assets. The follow-up expenditure incurred after its
crown cover was included in the profit or loss for the current period.
② At the time of cutting, the cost of the expendable biological asset was carried down by the
weighted average method.
③ At the end of each year, inspection was conducted for the expendable biological assets. If
there was evidence that the carrying value of the expendable biological assets was higher than the
net realizable value, reserves for falling prices of the biological assets were accrued according to the
amount of the lower value and included in the profit or loss for the current period. If the factor for
falling prices of the biological assets no longer existed, the previous reserves accrued for falling
prices were reversed. The value reversed was included in the profit or loss for the current period.
28. Oil and Gas Assets
29. Right-of-use Assets
30. Intangible Assets
(1) Pricing method, Service Life, and Impairment Test
1) Pricing Method of Intangible Assets
Intangible assets were recorded at the actual cost when acquired.
2) Service Life and Amortization for the Intangible Assets
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① Estimation of the service life of intangible assets with limited service lives:
Item Estimated service life Basis
Land use rights 50 years Mandated use rights
Computer software 5 years The Company determined the service life with the
period of economic gains brought to the Company
as a reference.
The Company reviewed the service life and amortization method of intangible asset with finite
service life at the end of each year. After review, at the end of the current period, the service life
and amortization method of the intangible assets had no difference with the previous estimation.
② If the length of period for the intangible assets to bring economic gains for the Company
was not predictable, the Company considered the asset as intangible assets with uncertain service
life. The Company reviewed the service life of the intangible assets with uncertain service life at the
end of each year. If the service life was still considered uncertain after the review, the impairment
test was conducted on the balance sheet date.
③ Amortization of intangible assets
For the intangible assets with a limited service life, the Company judged the service life upon
obtaining the assets. Within the service life, the straight-line method system was adopted for
rational amortization. The amortization amount was included in profit or loss for the current period.
The specific amortization amount was the cost amount after the deduction of estimated residual
value. If provisions for asset impairment of the intangible assets had been accrued, the accumulative
amount of the accrued provisions was deducted with zero salvage value. However, there were the
following exceptions: there was a third party who promised to purchase the intangible assets at the
end of their service life, or the information of estimated residual value could be acquired according
to the active market while the market was likely to exist till the end of the service life of the
intangible assets.
Intangible assets with uncertain service life were not amortized. The service life of the
intangible assets with uncertain service life was reviewed at the end of each year. If it was evident
that the service life of the intangible assets was limited, the service life was estimated and rational
amortization was conducted systematically within the estimated service life.
(2) Accounting Policies for Internal Research and Development Costs
1) Specific Criteria for the Classification of the Research Phase and Development Phase of
Internal Research and Developme nt Projects.
① The Company assumed the data and other preparation activities processed for the further
development activity as the research phase. The expenditure of the intangible assets incurred in the
research phase was included in profit or loss for the current period.
② The development activities processed after the Company completed the work of the
research phase were assumed as the development phase.
2) Specific Conditions for Capitalizing Expenditure during the Development Phase
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The expenditure was recognized as intangible assets if the following conditions were satisfied
simultaneously:
① The intangible assets were completed so that it was technically feasible that the intangible
assets could be used or sold.
② Intentions existed to complete the intangible assets and to use or sell them.
③ The method for the intangible assets to generate economic gains included evidence that the
products produced by using the intangible assets were in the market, or that there were markets for
the intangible assets of its own. If the intangible assets were to be used internally, their usefulness
was proved.
④ There were sufficient technologies, financial resources and other resources to support the
completion of the development of the Intangible assets. Meanwhile, the capability to use or sell the
intangible assets existed.
⑤ Expenditures attributable to the development phase of the intangible assets could be
reliably measured.
31. Long-term Assets Impairment
(1) Test Methods and Accounting Methods for Impairme nt of Long-term Equity
Investments
The Company inspected each long-term equity investment one by one on the balance sheet
date, and judged whether there were signs of impairment for long-term equity investments based on
various changes in the operation policies of the investee, legal environment, market demand,
industry, and profitability. If the recoverable amount of the long-term equity investment was lower
than the carrying amount, the difference between the recoverable amount and the carrying value of
the long-term equity investments was accrued as the impairment provision for the long-term equity
investments. Once the asset impairment loss was recognized, it shall not be reversed in subsequent
accounting periods.
(2) Test Methods and Accounting Methods for Impairme nt of Investment Property
On the balance sheet date, the investment property was valued at the lower between the cost and
the recoverable amount. If the recoverable amount was lower than the cost, impairment provision
was accrued by the difference between the two. If the value of the investment property for which
the impairment provision had been accrued was restored, the impairment provision accrued in the
previous period shall not be reversed.
(3) Test Methods and Accounting Methods for Impairme nt of Fixed Asse ts
The Company made judgments on all fixed assets on the balance sheet date. If there were signs
of impairment and the recoverable amount was estimated to be lower than the carrying value, the
carrying value was written down to the recoverable amount, and the write-down amount was
recognized as asset impairment loss and was included in profit or loss for the current period. The
corresponding provision for assets impairment was accrued at the same time. Once the asset
impairment loss was recognized, it shall not be reversed in subsequent accounting periods. The
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impairment provision was accrued for the full amount by the single item of fixed assets if there
were following signs:
① Fixed assets have been idle for a long time, will not be put in use in the foreseeable future,
and have no transfer value;
② Fixed assets are no longer usable due to technological progress and other reasons;
③ Fixed assets are still usable, but the use of such assets results in a large quantity of
defective products;
④ Fixed assets have been damaged and no longer have use value or transfer value;
⑤ Fixed assets can no longer bring factual economic benefits to the Company.
(4) Test Methods and Accounting Methods for Impairme nt of Construction in Progress
The Company inspected the construction in progress comprehensively on the balance sheet
date. If there was evidence showing that the construction in progress had been impaired, and the
recoverable amount was estimated to be lower than the carrying value, the carrying value was
written down to the recoverable amount and the write-down amount was recognized as asset
impairment loss which was included in profit or loss for the current period. The corresponding
provision for assets impairment was accrued at the same time. Once the asset impai rment loss was
recognized, it shall not be reversed in subsequent accounting periods. The construction in progress
shall be tested for impairment if one or several following conditions exist:
① Construction in progress has been suspended for a long time and are not expected to
resume in the next three years;
② Construction has fallen behind in terms of its performance and technology, and brings huge
uncertainties to economic benefits of the Company;
1. Other circumstances sufficient to prove that the constr uction in progress has been impaired.
(5) Test Methods and Accounting Methods for Impairme nt of Intangible Assets
If the recoverable amount of intangible assets was lower than the carrying value, the carrying
value of the assets was written down to the recoverable amount, and the write-down amount was
recognized as asset impairment loss which was included in profit or loss for the current period. The
corresponding impairment provision for intangible assets was accrued at the same time. Once the
intangible asset impairment loss was recognized, it shall not be reversed in subsequent accounting
periods. The intangible assets shall be tested for impairment if one or several following conditions
exist:
① The intangible assets have been replaced by other new technologies, which results in a
major adverse impact on its ability to create economic benefits for the Company;
② The market prices of the intangible assets have declined significantly in the current period
and may not rally during the remaining years;
③ Other circumstances sufficient to prove that the carrying value of the intangible assets has
exceeded the recoverable amount.
(6) Test for Goodwill Impairme nt
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For goodwill formed through business combinations, it shall be tested for impairment at least
at the end of each year. When the Company conducted an impairment test on the related asset group
or combination of asset groups that contain goodwill, the following procedures shall be taken if
there were signs of impairment in the asset group or combination of asset groups related to
goodwill:
First, the Company performed an impairment test on the asset group or combination of asset
groups that do not contain goodwill, calculated the recoverable amount, and compared it with the
carrying value of the related assets to recognize the corresponding impairment loss. Then, it
performed an impairment test on the asset group or asset group that contains goodwill and
compared the carrying value of the related asset group or combination of asset groups (including the
allocated carrying value of goodwill) with their recoverable amount; if the recoverable amount of
the related asset group or combination of asset groups was lower than the carrying value, the
impairment loss was recognized by the difference. The amount of impairment loss was first
allocated to offset the carrying value of goodwill in the asset group or combination of asset groups;
then it offset the carrying value of other assets based on the proportion of the carrying value of other
assets in the asset group or combination of asset groups other than goodwill.
32. Long-term Prepaid Expense
Long-term prepaid expense accounted for the expenses with an amortization term beyond a
year of the Company which have incurred and shall be allocated to the expenses in the current
period and the subsequent periods.
The long-term period prepaid expense of the Company shall be amortized equally within the
beneficial period. The period of the amortized expenses was as follows:
Item Amortization Period
Expenditure on the improvement of fixed assets leased Reasonable amortization by the best expected
through operating lease realization mode of economic benefits
33. Contract Liabilities
Method of determining the contract liabilities
Please refer to 16. Contract assets
34. Employee Remuneration
(1) Accounting Methods for Short-Term Remuneration
① Basic salaries of employees (wages, bonus, allowances and subsidies)
During the accounting period in which the employees provided services, the Company
recognized the actual short-term remuneration as liabilities and included them in profit or loss for
the current period (other than other remuneration to be included in the cost of assets as required or
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allowed by accounting standards.
② Employee benefit expense
The employee benefits of the Company which have incurred were included in profit or loss for
the current period or the cost of relevant assets at the actual amount incurred. If the employee
benefits were non-monetary benefits, they shall be measured at fair value.
③ Social insurance expenses including medical insurance expense, work-related injury
insurance expense and maternity insurance expense, public housing provision, as well as labor
union expense and employee education expense
The employee remuneration, in the accounting period in which the employees provided
services, was calculated and determined by the withdrawal basis and withdrawal ratio in the
requirements of expenses paid by the Company, recognized as liabilities and included in profit or
loss for the current period or the cost of relevant assets, including social insurance expenses such as
medical insurance expense, work-related injury insurance expense and maternity insurance expense,
public housing provision, as well as labor union expense and employee educati on expense paid by
the Company.
④ Short-term paid absence
When the employees provided services and earned the right of paid absence to be exercised in
the future, the Company recognized the employee remuneration related to cumulative paid absence
and measured it at the expected payable amount arising from cumulative rights that were not
exercised. During the accounting period in which an employee was actually absent, the Company
recognized the employee remuneration relating to non-cumulative paid absence.
⑤ Short-term profit sharing plan
The Company recognized the relevant employee benefits payable if the profit sharing plan met
all the following conditions simultaneously:
A. The corporate had legal obligations or constructive obligations to pay employee remuneration
as a result of the previous events;
B. The amount of employee benefits payable arising from the profit sharing plan could be
reliably estimated.
(2) Accounting Method for Post-employment Benefits
① Defined contribution plans
During the accounting period in which the employees provided services, the Company
recognized the amounts to be deposited as calculated based on the defined contribution plan as
liabilities, and included them in profit or loss for the current period or the cost of relevant assets.
Based on the defined contribution plan, if all amounts to be deposited were not expected to be
paid within 12 months after the end of the annual reporting period in which the employees rendered
relevant services, the employee benefits payable were measured at the discounted value of all
amounts to be deposited at the corresponding discount rate (determined by the market rate of return
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for treasury bonds matched with term and currency for paying the obligation under the defined
contribution plan or the active and high-quality corporate bonds on the balance sheet date).
② Defined benefit plan
A. Determination of present value and service cost for the current period of the defined benefit
plan
Based on the projected unit credit method, related demograp hic variables and financial
variables were estimated by using unbiased and mutually compatible actuarial assumptions, the
obligations under the defined benefit plan were measured, and the periods to which relevant
obligations were attributed were determined. The Company discounted obligations arising from the
defined benefit plan using the corresponding discount rate (determined by the market yields of the
treasury bonds matched with the term and currency for paying the obligations in the defined benefit
plan or of the high-quality and active corporate bonds) to determine the present value and the
current service cost of the defined benefit plan.
B. Recognition of the net liabilities or assets of the defined benefit plan
If a defined benefit plan had assets, the Company shall recognize the deficit or surplus by
deducting fair value of the defined benefit plan assets from the present value of the defined benefit
plan obligations as a net liability or asset of defined benefit plan.
If the defined benefit plans had surplus, the Company shall measure the net profit of the
defined benefit plan according to whichever was lower between the surplus and asset ceiling of the
defined benefit plan.
C. Determination of the amount which shall be included in asset cost or loss and profit for the
current period
Service cost includes service cost for the current period, service cost for the past periods, and
settlement gains and losses. Specifically, other than service cost for the current period that were
required or allowed to be included in asset cost, other service costs shall be included in profit and
loss for the current period.
The net interest of net liabilities or net assets of the defined benefit plan, including interest
income of assets of the plan, interest expense of obligations of the plan as well as the interest arising
from asset ceiling, shall be included in profit and loss for the current period.
D. Determination of the amount that shall be included in other comprehensive income
Changes arising from the remeasurement of net liabilities or net assets of the defined benefit
plan, including:
(a) Actuarial gains or loss, i.e., the increase decrease in the measurements of present value of
obligations of the defined benefit plan arising from actuarial assumption and experience adjustment;
(b) Return on plan assets, deducting the amounts that were included in the net interest of net
liabilities or net assets of the defined benefit plan;
(c) Changes arising from the asset ceiling, deducting the amounts that were included in net
interest of the net liabilities or net assets of the defined benefit plan.
The aforesaid changes arising from the remeasurement of net liabilities or net assets of the
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defined benefit plan shall be directly included in other comprehensive income and shall not be
transferred back to profit and loss during the subsequent accounting periods. However, the
Company may transfer these amounts recognized in other comprehensive income within its scope
of rights and interests.
(3) Accounting Method for Dismissal Benefits
If the Company offered employees with dismissal benefits, the liabilities of employee
remuneration shall be recognized and included in profit or loss for the current period on the earlier
date of the two following circumstances:
① When the Company is not able to withdraw the dismissal benefits from termination of
employment or resignation persuasion unilaterally;
② When the Company recognizes the costs and expenses relevant to the restructuring
regarding dismissal benefits payment.
If the dismissal benefits were not expected to be paid in full amount within 12 months after the
end of the Reporting Period, the amount of the dismissal benefits shall be discounted in line with
the corresponding discount rate (determined by the market yields of the treasury bonds matched
with the term and currency for paying the obligations in the defined benefit plan or of the
high-quality and active corporate bonds). The employee benefits payable shall be measured at the
discounted amount of the dismissal benefits.
(4) Accounting Method for Other Long-Term Employee Benefits
① Benefits meeting the conditions of the defined contribution plan
If other long-term employee benefits that the Company offered to employees met the
conditions of the defined contribution plan, employee benefits payable shall be measured at the
discounted value of all amounts to be deposited.
② Benefits meeting the conditions of the defined benefit plan
At the end of the Reporting Period, the Company shall recognize the employee remuneration
costs arising from other long-term employee benefits as the following items:
A. Service cost;
B. Net interest of net liabilities or net assets of other long-term employee benefits;
C. Changes arising from the remeasurement of net liabilities or net assets of other long-term
employee benefits.
To simplify relevant accounting treatment, the total net amounts of the aforesaid items shall be
included in profit and loss for the current period or relevant asset costs.
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35. Lease Liabilities
36. Provisions
(1) Recognition Standard for Provisions
If an obligation relevant to contingency met all the following conditions at the same time, the
Company will recognize it as provisions:
① The obligation is a present obligation assumed by the Company;
② The performance of the obligation is likely to cause economic benefits to flow out of the
Company;
③ The amount of the obligation can be reliably measured.
(2) Method of Measuring Provisions
The provisions shall be initially measured according to the optimal estimate of the necessary
expenses for the performance of the current obligation, taking into consideration the risks related to
contingent events, uncertainty and the time value of currency. The carrying value of provisions shall
be rechecked on each balance sheet date. If there was concrete evidence to prove that the carrying
value was not able to reflect the current optimal estimate, the carrying value shall be adjusted
according to the current optimal estimate.
37. Share-based Payment
(1) Category of Share-based Payment
The Company's share-based payment includes cash-settled share-based payment and
equity-settled share-based payment.
(2) Method of Determining the Fair Value of Equity Instrume nts
① For shares granted to employees, their fair value shall be measured at the market price of
the Company's shares, and be adjusted in accordance with terms and conditions for granting shares
(excluding vesting conditions other than market conditions).
② For share options granted to employees, the market price was inaccessible in many cases. If
there were no terms nor conditions similar to that of the exchange-traded option, the Company shall
estimate the fair value of the granted options with the applicable model for option valuation.
(3) Grounds for Confirming the Optimal Estimation of Feasible Right Equity
Instrume nts
On each balance sheet date within the vesting period, the Company shall make the best
estimate based on the subsequent information latest obtained such as the change in the number of
vested employees and revise the number of equity instruments that are expected to be vested in
order to make the best estimate of vested equity instruments.
(4) Accounting Treatment for the Imple mentation of Share -based Payment Schemes
Cash-settled share-based payment:
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① For a cash-settled share-based payment, if the right can be exercised immediately after the
grant, the fair value of the liabilities borne by the Company shall, on the grant date, be included in
the relevant costs or expenses and the liabilities shall be increased accordingly. On each balance
sheet date before settlement and on the settlement date, the fair value of the liabilities shall be
re-measured and the changes shall be included in profit or loss.
② For a cash-settled share-based payment, if the right cannot be exercised until the vesting
period ends or until the prescribed performance conditions are met, then on each balance sheet date
within the vesting period, the services acquired in the current period shall, based on the best
estimate of the information about the exercisable right and at the fair value of the liabilities borne
by the Company, be included in the costs or expenses and the corresponding liabilities.
Equity-settled share-based payment:
① For an equity-settled share-based payment in return for services of employees, if the right
can be exercised immediately after the grant, the fair value of the equity instruments shall, on the
grant date, be included in the relevant costs or expenses and the capital reserve shall be increased
accordingly.
② For an equity-settled share-based payment in return for employee services, if the right
cannot be exercised until the vesting period ends or until the prescribed performance conditions are
met, then on each balance sheet date within the vesting period, the services acquired in the current
period shall, based on the best estimate of the number of vested equity instruments, be included in
the costs or expenses and capital reserves at the fair value of the equities instruments on the grant
date
(5) Accounting Treatment for the Modification of Share-Based Payment Sche mes
When the Company modifies a share-based payment scheme, if the modification increases the
fair value of the equity instruments granted, the increase in the services acquired shall be recognized
accordingly according to the increase in the fair value of the equity instruments; if the modification
increases the number of equity instruments granted, the fair value of the increased equity
instruments shall be recognized accordingly as the increase in the services acquired. The increase in
the fair value of the equity instruments refers to the difference between the fair values of the equity
instruments before and after the modification on the modification date. If the modification reduces
the total fair value of the share-based payment or any other method not conducive to the employees
is adopted to modify the terms and conditions of the share-based payment scheme, the accounting
treatment of the services acquired would continue, as if such change had never occurred, unless the
Company cancels some or all of the granted equity instruments.
(6) Accounting Treatment for the Termination of Share -Based Payment Sche mes
If the Company canceled the granted equity instruments or settles the granted equity
instruments (not including those canceled due to failure to meet vesting conditions) during the
vesting period:
① The cancellation or settlement shall be processed as the vested right and the amount to be
recognized within the remaining vesting period originally shall be recognized immediately.
② All payments made to employees at the time of cancellation or settlement was treated as
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payments for equity repurchase, and the proportion of the repurchase amount above the fair value of
the equity instrument on the repurchase date was included in the expenses for the current period.
If the Company repurchased an equity instrument in which the exercisable right has been
exercised, its owners' equity was reduced; the proportion of the repurchase amount above the fair
value of the equity instrument on the repurchase date was included in the profit or loss for the
current period.
38. Preference Shares, Perpetual Bonds and Other Financial Instruments
39. Revenue
The Company shall comply with the disclosure requirements of the Guidelines No. 6 of Shenzhen Stock Exchange on Industry
Information Disclosure -- Listed Companies Engaging in Home Furnishing and Decoration Business.
Revenue recognition principles and measurement methods
Applicable from 1 January 2020
(1) General Principles
Revenue is the total inflow of economic benefits generated in the Company's day-to-day
activities that will result in an increase in shareholders' equity and are unrelated to the capital
contributed by shareholders.
The Company shall recognize revenue when the performance obligations under the contracts
are fulfilled, that is, when the customers obtain the control of related goods. Obtaining control of
related goods refers to that customers can control the use of the goods and obtain almost all the
economic benefits from the goods.
If a contract contains two or more performance obligations, the Company shall, on the
inception date of the contract, allocate the transaction price to each performance obligation in
accordance with the relative proportion of the stand-alone selling price of the goods or services
promised by each performance obligation, and measure the revenue on the basis of the transaction
price allocated to each performance obligation.
Transaction price is the amount of consideration to which the Company expects to be entitled
in exchange for transferring goods or services to a customer, excluding amounts collected on behalf
of third parties. When determining a contract transaction price, if there is a variable consideration,
the Company shall determine the best estimate of the variable consideration based on the expected
value or the most likely amount, and recognize the transaction price only to the extent that it is
highly probable that a significant reversal in the amount of cumulative revenue recognized will not
occur when the relevant uncertainty is resolved. If a contract contains a significant financing
component, the Company will determine the transaction price on the basis of the amount payable in
cash when the customer obtains control of the goods, and use the effective interest method to
amortize the difference between the transaction price and the contract consideration during the
contract period. If the interval between the transfer of control and the payment by the customer does
not exceed one year, the Company will not consider the financing component therein.
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If one of the following conditions is met, it is an obligation performed within a certain period
of time; otherwise, it is treated as performed at a point in time:
① The customer simultaneously received and consumed the benefits provided by the
Company's performance as the Company performed obligation.
② The customer could control the goods as they are created during the Company's
performance.
③ The goods produced by the Company's performance had no alternative use, and the
Company had the right to collect payment for performance completed to date during the entire
contract period.
For a performance obligation performed within a certain period of time, the Company
recognized revenue in accordance with the progress of performance during that period, except when
the progress could not be reasonably determined. The Company determined the progress of the
performance of the service provided in accordance with the input method (or output method). When
the performance progress could not be reasonably determined and the Company's incurred costs
were expected to be compensated, the revenue was recognized according to the amount of the
incurred costs until the performance progress could be reasonably determined.
For a performance obligation performed at a certain point in time, the Company recognized
revenue at the point when the customer obtained control of the relevant goods. When judging
whether the customer has obtained control of goods or services, the Company considered the
following indicators:
① The Company had a present right to receive payment for the goods or services, i.e., the
customer had a present obligation to pay for the goods.
② The Company had transferred the legal title of the goods to the customer, i.e., the customer
had obtained the legal title of the goods.
③ The Company had transferred physical possession of the goods to the customer, i.e., the
customer had taken physical possession of the goods.
④ The Company had transferred primary risks and rewards of ownership of the goods to the
customer, i.e., the customer had obtained the primary risks and rewards of ownership of the goods.
⑤ The customer had accepted the goods.
(2) Specific Methods
The specific methods of the Company's revenue recognition are as follows:
In the construction and decoration business, since the customer could control the assets under
construction during the obligation performance of the Company, the Company recognized them as a
performance obligation performed within a certain period, and recognized revenue in accordance
with the progress of performance, except when the progress could not be reasonably determined.
The Company determined the progress of the performance of the service provided based on the
incurred costs in accordance with the input method. When the performance progress could not be
reasonably determined and the Company's incurred costs were anticipated to be compensated, the
revenue was recognized according to the amount of the incurred costs until the performance
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progress could be reasonably determined. If the contract cost could not be recovered, it was
recognized as the current cost immediately when incurred, and no contract revenue was recognized.
If the aggregate cost of the contract was likely to exceed the gross revenue, an anticipated loss of
the contract was formed, included in provisions, and recognized as the current cost.
In the merchandise sale business, the sale contract between the Company and the customer
contains the performance obligation for the transfer of goods such as building decoration materials,
which belongs to the performance obligation at a point in time. The Company had delivered the
goods to the customer in accordance with the contract and the customer had accepted the goods.
The payment had been recovered or the receipt voucher had been obtained, and the relevant
economic benefits were likely to flow in. The customer had obtained control of the relevant goods.
The following revenue accounting policies are applicable for 2019 and the prior years.
(1) Sales Revenue
The revenue was recognized when the Company had transferred the primary risks and rewards
of the ownership of the goods to the acquirer, and neither reserved the continued management r ights
usually associated with the ownership, nor effectively controlled the sold goods. The amount of
income could be reliably measured, the economic benefits relevant to the transaction were likely to
flow into the Company, and the relevant costs incurred or to be incurred could be reliably measured.
(2) Revenue from Provide d Services
① The results of the provided services could be reliably estimated
If the results of the transaction of the provided services could be reliably estimated on the
balance sheet date, the percentage of completion method was used to recognize the revenue from
provided services.
The results of the provided services could be reliably estimated only when the following
conditions are met at the same time:
A. The amount of revenue could be reliably measured.
B. The relevant economic benefits were likely to flow into the Company.
C. The completion schedule of the transaction could be reliably determined.
D. The cost incurred or to be incurred during the transaction could be reliably measured.
The Company determined the completion schedule of the service transaction in accordance
with the proportion of the incurred costs to the total budgeted costs. When the Company's service
had not been completed, on the balance sheet date, the service revenue in the current period was
recognized in accordance with the amount of the contract amount multiplied by the completion
schedule after deducting the accumulated service revenue from the previous accounting period; at
the same time, the service costs incurred in the current period was carried forward. If the service
had been completed and had not yet been finally settled, the service revenue in the current period
when the service was completed was recognized at the amount after deducting the accumulated
revenue from the provided service in the previous accounting period from the contract amount; at
the same time, the service costs incurred in the current period was carried forward. The difference
between the final settlement amount and the contract amo unt at the time of final settlement was
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adjusted at the final settlement.
② The results of the provided services could not be reliably estimated.
If the results of the services provided by the Company could not be reliably estimated on the
balance sheet date, the situations were dealt with as follows:
A. If the service cost incurred was anticipated to be compensated, the service revenue was
recognized at the amount of service cost incurred, and the service cost was carried forward at the
same amount.
B. If the service cost incurred was not anticipated to be compensated, the service cost incurred
was included in profit or loss, and no service revenue was recognized.
(3) Revenue from the Transfer of Asset Use Rights
The Company recognized revenue when the economic benefits relevant to the transaction were
likely to flow into the Company and the amount of revenue could be reliably measured.
40. Government Grants
(1) Recognition of Government Grants
Government grants were recognized if the following conditions were met simultaneously:
① The Company could meet the conditions on government grants;
② The Company could receive government grants.
(2) Measurement of Governme nt Grants
Government grants were measured at the amount received or receivable if they were monetary
assets. Non-monetary government grants were measured at fair value; if the fair value could not be
reliably obtained, they were measured at the nominal amount.
(3) Accounting Processing of Governme nt Grants
① Government grants related to assets
The government grants obtained by the Company for acquisition and construction or to form
long-term assets in other ways were classified as government grants related to assets. Government
grants related to assets were recognized as deferred income, and were included in profit or loss in
stages in accordance with a reasonable and systematic method during the useful life of the
underlying assets. Government grants measured at nominal amount were directly recognized as
profit or loss for the current period. If the underlying assets were sold, transferred, scrapped, or
damaged before the end of the useful life, the unallocated balance of the relevant deferred income
was transferred to the profit or loss for the period of assets disposal.
② Government grants related to income
Government grants other than government grants related to assets were classified as
government grants related to income. Government grants related to income were accounted for in
accordance with the following regulations based on the situation:
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If the grant was used to compensate the Company's related costs or losses in subsequent
periods, it was recognized as deferred income, and was included in the profit or loss for the current
period during the period when the related costs or losses were recognized;
If the grant was used to compensate the Company's related cost or losses incurred, it was
included in the profit or loss for the current period directly.
For government grants containing parts related to assets and parts related to income at the
same time, the different parts were accounted for separately; those that were difficult to distinguish
were classified as government grants related to income as a whole.
Government grants related to the day-to-day activities of the Company was included in other
income in accordance with the substance of economic activities. Government grants not related to
the day-to-day activities of the Company was included in non-operating income and expenses.
③ Policy loan interest subsidies
If the fiscal system allocated the funds of interest subsidies to the lending bank, and the
lending bank provided loans to the Company at a policy prime interest rate, the actual loan amount
received was recognized as the book value of the loan, and the relevant borrowing costs was
calculated in accordance with the loan principal and the policy prime interest rate.
If the fiscal system allocated the funds of interest subsidies to the Company directly, the
Company reduced the corresponding interest subsidies against relevant borrowing costs.
④ Refund of government grants
When the recognized government grants needed to be refunded, if the carrying value of the
relevant asset was reduced at the initial recognition, the carrying value of the asset was adjusted; if
there was a relevant deferred income balance, the carrying balance of the relevant deferred income
was reduced, and the excess was included in the profit or loss for the current period; in other cases,
the refund was included in the profit or loss for the current period directly.
41. Deferred Income Tax Assets/Deferred Income Tax Liabilities
Based on the temporary differences between the carrying value of assets and liabilities on the
balance sheet date and the tax basis, the Company generally recognizes and measures deferred
income tax liabilities or deferred income tax assets in accordance with the impact of taxable
temporary differences or deductible temporary differences on income tax through the balance sheet
liability method. The Company did not discount deferred income tax assets and deferred income tax
liabilities.
(1) Recognition of Deferred Income Tax Assets
For deductible temporary differences, the impact on income tax was calculated at the income
tax rate during the anticipated reverse, and the impact was recognized as deferred income tax assets,
but limited by the amount of future taxable income that the Company was likely to obtain to deduct
the deductible temporary differences, deductible losses, and tax deductions.
The impact of deductible temporary differences on income tax due to the initial recognition of
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assets or liabilities was not recognized as deferred income tax assets in transactions or matters that
had the following characteristics at the same time:
① The transaction was not a business combination;
② Neither accounting profits nor taxable income (or deductible losses) were affected when
the transaction occurred.
Only when the deductible temporary differences related to investments in subsidiaries,
affiliated companies and joint ventures met the following two conditions at the same time, its
impact on income tax was recognized as deferred income tax assets:
① It was probable that the temporary difference would reverse in the foreseeable future;
② It was likely to obtain taxable income in the future that could be used to offset against the
deductible temporary differences.
On the balance sheet date, if there was conclusive evidence that it was probable that sufficient
taxable income would be available to offset against the deductible temporary differences in t he
future, the deferred income tax assets that had not been recognized in the previous periods were
recognized.
On the balance sheet date, the Company reviewed the carrying value of deferred income tax
assets. If it was no longer probable that sufficient taxable profits would be available in the future to
utilize the benefit of deferred tax assets, the carrying value of deferred income tax assets was
written down. Such write-downs was reversed when it became probable that sufficient taxable
profits would be available.
(2) Recognition of Deferred Income Tax Liabilities
The impact of all taxable temporary differences on income tax of the Company was measured
at the income tax rate during the anticipated reverse, and the impact was recognized as deferred
income tax liabilities, except in the following situations:
① The impact of taxable temporary differences arising from the following transactions or
items on income tax was not recognized as deferred income tax liabilities:
A. Initial recognition of goodwill;
B. The initial recognition of assets or liabilities arising from a transaction with the following
characteristics: the transaction was not a business combination, and it affected neither accounting
profits nor taxable income or deductible losses when the transaction occurred.
② For the Company's taxable temporary differences related to investments in subsidiaries,
joint ventures and affiliated companies, the amount of its impact on income tax shall be generally
recognized as deferred income tax liabilities, except the following two conditions are met at the
same time:
A. The Company could control the temporary difference reversal time;
B. It was probable that the temporary difference would not reverse in the foreseeable future.
(3) Recognition of Deferred Income Tax Liabilities or Assets Involved in Special
Transactions or Events
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① Deferred income tax liabilities or assets involved in business combinations
For the taxable temporary differences or deductible temporary differences arising from
business combinations not under common control, adjustments were made to the goodwill
recognized in business combinations along with the recognition of deferred income tax liabilities or
deferred income tax assets and the related deferred income tax expense (or income).
② Items directly included in owners' equity
The income tax for the current period and deferred income tax relating to the transactions or
events directly included in owners' equity were included in owners' equity. The transactions or
events included in owners' equity relating to the impact of temporary difference on income tax
included: other comprehensive income such as changes in the fair value of other debt investments,
adjustments to retained income brought forward through the changes in accounting poli cies using
retrospective application or modification of major accounting error in the previous periods using
retrospective restatement and hybrid financial instruments that include liabilities and equity
included in owners' equity at initial recognition.
③ Recoverable loss and tax credit
A. Recoverable loss and tax credit arising from the Company's operations
Deductible loss refers to the loss calculated and recognized in accordance with the tax law
stipulates that can be compensated by taxable revenue. The undistributed deficit (deductible loss)
and tax credit in the following years that could be carried forward in accordance with the tax law
stipulates were recognized as deductible temporary differences. When it was probable that
sufficient taxable profits would be available for recoverable losses or tax credit in the future, the
corresponding deferred income tax assets were recognized to the extent of the expected taxable
revenue together with deducting the income tax expense in the profit statement for the current
period.
B. The undistributed deficit of the acquiree arising from business combinations that can be
compensated
In business combinations, the deductible temporary difference of the acquiree acquired by the
Company, which doesn't meet the conditions for recognition of deferred income tax assets, was not
recognized. Within 12 months after the date of acquisition, if new or more information was
available and suggested that the relevant information of the date of acquisition already existed, and
the deductible temporary differences of the acquiree at the date of acquisition was expected to bring
economic benefits, the related deferred income tax assets were recognized and goodwill was
eliminated. If goodwill was not sufficient for elimination, the shortfall was recognized as the profit
or loss for the current period. Excluding the foregoing circumstances, the deferred income tax assets
relating to business combinations were recognized and included in the profit or loss for the current
period.
④ Temporary difference arising from combination and offsetting
If a temporary difference arose between the carrying value of assets and liabilities in the
consolidated balance sheet and their tax bases in the taxable entity to which they belong as a result
of offsetting unrealized internal sales profit or loss, the deferred income tax assets or deferred
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income tax liabilities were recognized in the consolidated balance sheet, while adjusting the income
tax expense in the consolidated profit statement, except for the transactions or events directly
included in owners' equity and the deferred income tax relating to business combinations.
⑤ Equity-settled share-based payment
If the expenditure related to share-based payment could be deducted before tax under the tax
law stipulates, during the period in which the cost was recognized in accordance with the
accounting requirements, the Company calculated and determined the basis of taxation and
temporary difference based on the estimated amount that could be deducted before tax according to
the information available at the end of the accounting period, and recognized the related deferred
income tax if it met the conditions for recognition. Among which the estimated amount that can be
deducted before tax in the future exceeded the costs relating to share-based payment recognized in
accordance with the accounting requirements, the surplus impact of income tax shall be directly
included in owners' equity.
42. Leases
(1) Accounting Treatment Method for Operating Lease
① When acting as a lessee of operating lease, the Company included the rental expenditure of
operating lease in profit or loss for the current period based on the straight-line method or in
accordance with the consumption of operating lease in all stages during the lease term. If the lessor
provided leases with a rent-free period, the Company allocated the total rent in the entire lease term
including the rent-free period based on the straight-line method or in accordance with the
consumption of operating lease, and recognized the rental expense and the corresponding liabilities
in the rent-free period. If the lessor undertook partial expenses of the lessee, the Company allocated
the balance of rental expenses within the lease term after deducting the expenses fro m the total
rental expense.
The initial direct cost was included in profit or loss for the current period. If there was any
agreement or rent, it was included in profit or loss for the current period when actually incurred.
② When acting as a lessor of operating lease, the Company recognized the rent received as
income within the lease term based on the straight-line method. If the lessor provided leases with a
rent-free period, the lessor allocated the total rent in the entire lease term including the rent-free
period based on the straight-line method or any other reasonable method, and also recognized rental
income in the rent-free period. If the lessor undertook partial expenses of the lessee, the Company
allocated the balance of rental income within the lease term after deducting the expenses from the
total rental income.
The initial direct cost was included in profit or loss for the current period. If it was a large
amount, it shall be capitalized and included in stages in profit or loss for the current period within
the entire operating lease term on the same basis with the recognition of rental income. If there was
any agreement or rent, it was included in profit or loss for the current period when actually incurred.
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(2) Accounting Treatment of Finance Lease
① When the Company acted as the lessee of the finance lease, the lower of the fair value of
the leased assets and the present value of the minimum lease payment on the lease commencement
date was taken as the book value of the leased assets, the minimum lease payment was taken as the
book value of the long-term payables, and the difference thereof was taken as the unrecognized
financing expense. In each period of the lease term, the effective interest method was adopted to
apportion, which was recognized as the current financing expense and included into the finance
costs.
The initial direct expenses incurred was included in the value of the leased assets.
The Company adopted a depreciation policy consistent with its own depreciable assets during
the accrual of the depreciation of the finance leased assets, and the depreciation period was
determined by the lease contract. If fixed asset could be reasonably ascertained that the ownership
of the asset leased was obtained by the expiration of the tenancy, the asset would be depreciated
over its useful life on the lease commencement date; if not, the asset would be depreciated over the
shorter of the tenancy and the useful life of the leased asset.
② When the Company acted as the lesser of the finance lease, the sum of the minimum lease
receivable amount and the initial direct expense on the lease commencement date was taken as the
receivables of the finance lease amount and recorded in the long-term receivables of the balance
sheet, and the unguaranteed residual value was recorded. The difference between the sum of the
minimum lease receivable amount, initial direct expense and unguaranteed residual value and the
sum of its present value was taken as unrealized financing revenue, which was recognized as lease
revenue in each period of the lease term by the effective interest method and included into other
business revenue.
43. Other Important Accounting Policies and Accounting Estimates
Repurchase of the Company's shares
(1) If the Company had obtained approval to reduce the capital by acquiring the Company’s
shares through legal procedures, the share capital was reduced in accordance with the total face
value of the shares canceled, and the owners' equity was adjusted in accordance with the difference
between the price paid for repurchasing the shares (including transaction costs) and the face value
of the shares. For the part exceeding the total face value, capital reserves (share capital premium),
surplus reserves, and retained earnings were reduced sequentially. For the part below the total face
value, the capital reserves (share capital premium) were increased.
(2) The shares repurchased by the Company had been managed as treasury shares before they
were canceled or transferred, and all expenses for repurchasing shares had been transferred to the
cost of treasury shares.
(3) When treasury shares had been transferred, the part of the transfer income that was higher
than the cost of treasury shares increased capital reserves (share capital premium). The part that was
lower than the cost of treasury shares reduced capital reserves (share capital premium), surplus
reserves, retained earnings.
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44. Changes in Important Accounting Policy and Accounting Estimates
(1) Key Changes to Accounting Policies
√ Applicable □N/A
Contents of and reasons for the changes to
Approval procedure Remarks
accounting policies
Deliberated and approved at the 5th
The New Revenue Standards were
Meeting of the 6th Board of Directors on
implemented from January 1, 2020.
April 23, 2020
① The Ministry of Finance issued the Accounting Standard for Business Enterprises No. 14:
Revenues (C.K. [2017] No. 22) (hereinafter referred to as "New Revenue Standards") on 5 July
2017. Domestic listed companies were required to implement the New Revenue Standards from 1
January 2020. The Company implemented the New Revenue Standards from 1 January 2020, and
adjusted the relevant content of the accounting policy, as detailed in Note III. 28.
Under the requirements of the New Revenue Standards, the amount of retained earnings and
other relevant items in the financial statements at the beginning of the first year of implementation
(i.e. 1 January 2020) was adjusted in accordance with the cumulative impact of the first
implementation of the standard, and the comparable period information was not adjusted. When
implementing the New Revenue Standards, the Company only adjusted the cumulative impact of
contracts that had not been completed on the first implementation date.
② The Ministry of Finance issued the Interpretation No. 13 of the Accounting Standard for
Business Enterprises on 10 December 2019. The Company implemented this interpretation on 1
January 2020, and the previous years were not included retrospectively.
The cumulative impact of the above accounting policies is as follows:
Due to the implementation of the New Revenue Standards, the Company's consolidated
financial statements were adjusted accordingly. As at 1 January 2020, accounts receivable were
RMB-9,983,775,360.05, contract assets RMB10,177,545,958.11, deferred income tax assets
RMB-3,343,794.18, contract liabilities RMB896,828,971.85, advances from customers
RMB-790,724,499.17, and other current liabilities RMB45,145,633.54. The relevant adjustments
affected the equity of the Company as the parent’s shareholders in the Company’s consolidated
financial statements at RMB36,125,919.30, of which surplus reserves were RMB1,761,383.21, and
retained earnings were RMB34,339,607.55. The amount of non-controlling interests affected was
RMB3,075,706.90. The financial statements of the Company as the parent were adjusted
accordingly. As at 1 January 2020, accounts receivable were RMB-6,521,147,899.75, contract
assets RMB6,541,870,055.17, deferred income tax assets RMB-3,108,323.31, contract liabilities
RMB299,820,916.43, advances from customers RMB-325,775,470.52 and other current liabilities
RMB25,954,554.09. The relevant adjustments affected the equity of the Company as the parent's
shareholders in the financial statements at RMB17,613,832.11, of which surplus reserves were
RMB1,761,383.21, retained earnings were RMB15,852,448.90.
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
The above accounting policy changes were deliberated and approved at the 5th Meeting of the
6th Board of Directors on 23 April 2020.
(2) Changes in Significant Accounting Estimates
□ Applicable √ Not applicable
(3) Adjustments to Financial Statement Items at the Beginning of the Year (2020) when the New
Accounting Standards Governing Revenue and Leases Were First Adopted
Applicable.
Indicate whether any balance sheet item at the beginning of the year requires adjustment.
√ Yes □ Not
Consolidated balance sheet:
Unit: RMB
Item 31 December 2019 1 January 2020 Adjustment
Current assets：
Monetary assets 6,077,758,993.30 6,077,758,993.30
Settlement reserve
Loans to other banks
and financial institutions
Held-for-trading
1,694,650,654.74 1,694,650,654.74
financial assets
Derivative financial
assets
Notes receivable 4,365,558,567.45 4,365,558,567.45
Accounts receivable 22,003,095,138.84 12,019,319,778.79 -9,983,775,360.05
Receivables financing 261,530,861.26 261,530,861.26
Prepayments 287,524,499.91 287,524,499.91
Premiums receivable
Reinsurance receivables
Receivable reinsurance
contract reserve
Other receivables 248,803,300.64 248,803,300.64
Including: Interest
receivable
Dividends
receivable
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Financial assets
purchased under resale
agreements
Inventories 101,344,129.28 101,344,129.28
Contract assets 10,177,545,958.11 10,177,545,958.11
Assets held for sale
Current portion of
31,381,819.35 31,381,819.35
non-current assets
Other current assets 116,384,039.46 116,384,039.46
Total current assets 35,188,032,004.23 35,381,802,602.29 193,770,598.06
Non-current assets：
Loans and advances to
customers
Debt investments
Other debt investments
Long-term receivables 1,438,636,412.30 1,438,636,412.30
Long-term equity
22,838,423.66 22,838,423.66
investments
Investments in other
equity instruments
Other non-current
444,022,000.00 444,022,000.00
financial assets
Investment property 78,250,561.70 78,250,561.70
Fixed assets 910,175,452.03 910,175,452.03
Construction in progress 71,905,579.25 71,905,579.25
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 109,105,821.09 109,105,821.09
Development costs
Goodwill 435,818,777.74 435,818,777.74
Long-term prepaid
157,443,245.55 157,443,245.55
expense
Deferred income tax
415,401,109.41 412,057,315.23 -3,343,794.18
assets
Other non-current assets 201,762,268.01 201,762,268.01
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Total non-current assets 4,285,359,650.74 4,282,015,856.56 -3,343,794.18
Total assets 39,473,391,654.97 39,663,818,458.85 190,426,803.88
Current liabilities：
Short-term borrowings 875,691,128.75 875,691,128.75
Borrowings from the
central bank
Loans from other banks
and financial institutions
Held-for-trading
financial liabilities
Derivative financial
liabilities
Notes payable 4,602,520,476.92 4,602,520,476.92
Accounts payable 13,279,769,499.13 13,279,769,499.13
Advances from
790,724,499.17 -790,724,499.17
customers
Contract liabilities 896,828,971.85 896,828,971.85
Financial assets sold
under repurchase agreements
Customer deposits and
deposits from other banks
and financial institutions
Payables for acting
trading of securities
Payables for
underwriting of securities
Employee benefits
1,748,073,732.96 1,748,073,732.96
payable
Taxes and levies
256,606,598.88 256,606,598.88
payable
Other payables 593,947,128.96 593,947,128.96
Including: Interest
payable
Dividends
6,620,000.00 6,620,000.00
payable
Fees and commissions
payable
Reinsurance payables
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Liabilities directly
associated with assets held
for sale
Current portion of
22,000,000.00 22,000,000.00
non-current liabilities
Other current liabilities 1,062,569,828.91 1,107,715,462.45 45,145,633.54
Total current liabilities 23,231,902,893.68 23,383,152,999.90 151,250,106.22
Non-current liabilities：
Insurance contract
reserve
Long-term borrowings 838,561,722.30 838,561,722.30
Bonds payable
Including: Preference
shares
Perpetual
bonds
Lease liabilities
Long-term payables
Long-term employee
benefits payable
Provisions
Deferred income
Deferred income tax
2,931,338.35 2,931,338.35
liabilities
Other non-current
liabilities
Total non-current liabilities 841,493,060.65 841,493,060.65
Total liabilities 24,073,395,954.33 24,224,646,060.55 151,250,106.22
Owners’ equity：
Share capital 2,676,408,689.00 2,676,408,689.00
Other equity instruments
Including: Preference
shares
Perpetual
bonds
Capital reserves 342,175,389.87 342,175,389.87
Less: Treasury shares 132,069,000.00 132,069,000.00
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Other comprehensive
57,504,092.23 57,504,092.23
income
Specific reserve
Surplus reserves 1,358,670,354.99 1,360,431,738.20 1,761,383.21
General reserve
Retained earnings 10,853,403,316.80 10,887,742,924.35 34,339,607.55
Total equity attributable to
owners of the Company as 15,156,092,842.89 15,192,193,833.65 36,100,990.76
the parent
Non-controlling
243,902,857.75 246,978,564.65 3,075,706.90
interests
Total owners’ equity 15,399,995,700.64 15,439,172,398.30 39,176,697.66
Total liabilities and owners’
39,473,391,654.97 39,663,818,458.85 190,426,803.88
equity
Notes to the adjustments:
Balance sheet of the Company as the parent:
Unit: RMB
Item 31 December 2019 1 January 2020 Adjustment
Current assets：
Monetary assets 3,236,414,236.21 3,236,414,236.21
Held-for-trading
1,177,233,688.22 1,177,233,688.22
financial assets
Derivative financial
assets
Notes receivable 2,720,966,717.92 2,720,966,717.92
Accounts receivable 15,070,584,579.15 8,549,436,679.40 -6,521,147,899.75
Receivables financing 227,611,894.42 227,611,894.42
Prepayments 67,179,176.34 67,179,176.34
Other receivables 369,029,544.53 369,029,544.53
Including: Interest
receivable
Dividends
40,000,000.00 40,000,000.00
receivable
Inventories 2,108,652.15 2,108,652.15
Contract assets 6,541,870,055.17 6,541,870,055.17
Assets held for sale
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Current portion of
non-current assets
Other current assets 141,935.84 141,935.84
Total current assets 22,871,270,424.78 22,891,992,580.20 20,722,155.42
Non-current assets：
Debt investments
Other debt investments
Long-term receivables
Long-term equity
2,450,189,252.52 2,450,189,252.52
investments
Investments in other
equity instruments
Other non-current
444,022,000.00 444,022,000.00
financial assets
Investment property 92,392,476.23 92,392,476.23
Fixed assets 725,719,586.11 725,719,586.11
Construction in progress 50,987,676.95 50,987,676.95
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 31,263,899.40 1,263,899.40
Development costs
Goodwill
Long-term prepaid
36,115,310.40 36,115,310.40
expense
Deferred income tax
269,961,767.22 266,853,443.91 -3,108,323.31
assets
Other non-current assets 90,447,503.15 90,447,503.15
Total non-current assets 4,191,099,471.98 4,187,991,148.67 -3,108,323.31
Total assets 27,062,369,896.76 27,079,983,728.87 17,613,832.11
Current liabilities：
Short-term borrowings 454,870,134.35 454,870,134.35
Held-for-trading
financial liabilities
Derivative financial
liabilities
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Notes payable 2,524,818,850.29 2,524,818,850.29
Accounts payable 8,227,541,063.77 8,227,541,063.77
Advances from
325,775,470.52 -325,775,470.52
customers
Contract liabilities 299,820,916.43 299,820,916.43
Employee benefits
1,377,238,718.10 1,377,238,718.10
payable
Taxes and levies
94,928,342.32 94,928,342.32
payable
Other payables 489,198,564.99 489,198,564.99
Including: Interest
payable
Dividends
6,620,000.00 6,620,000.00
payable
Liabilities directly
associated with assets held
for sale
Current portion of
non-current liabilities
Other current liabilities 810,122,476.37 836,077,030.46 25,954,554.09
Total current liabilities 14,304,493,620.71 14,304,493,620.71
Non-current liabilities：
Long-term borrowings
Bonds payable
Including: Preference
shares
Perpetual
bonds
Lease liabilities
Long-term payables
Long-term employee
benefits payable
Provisions
Deferred income
Deferred income tax
185,053.23 185,053.23
liabilities
Other non-current
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
liabilities
Total non-current liabilities 185,053.23 185,053.23
Total liabilities 14,304,678,673.94 14,304,678,673.94
Owners’ equity：
Share capital 2,676,408,689.00 2,676,408,689.00
Other equity instruments
Including: Preference
shares
Perpetual
bonds
Capital reserves 437,549,701.78 437,549,701.78
Less: Treasury shares 132,069,000.00 132,069,000.00
Other comprehensive
income
Specific reserve
Surplus reserves 1,358,670,354.99 1,360,431,738.20 1,761,383.21
Retained earnings 8,417,131,477.05 8,432,983,925.95 15,852,448.90
Total owners’ equity 12,757,691,222.82 12,775,305,054.93 17,613,832.11
Total liabilities and owners’
27,062,369,896.76 27,079,983,728.87 17,613,832.11
equity
Notes to the adjustments:
(4) Retrospective Adjustments to Comparative Data of the Prior Period due to the First Adoption of the
New Accounting Standards Governing Revenue and Leases since 2020
□ Applicable √ Not applicable
45. Other Information
VI Taxation
1. Principal Taxes and Tax Rates
Tax Tax base Tax rate
Value added tax (VAT) Taxable revenue 13%, 9% , 6%, and 3%
Urban maintenance and construction tax Circulation tax 7%
Corporate income tax Taxable income 25%, 15%, and 20%
Education surcharges Circulation tax 5%
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Taxpayers with different corporate income tax rates are as follows:
Taxpayer Income tax rate
HBA 21.00%, 8.84%, 6.00%, 5.50%, and 19.00%
Gold Mantis (Vietnam) 20.00%
Gold Mantis International 16.50%
Russia Gold Mantis 15.50%
Gold Mantis (HK) 16.50%
Gold Mantis (Cambodia) 20.00%
Gold Mantis International Development 10.00%
Gold Mantis (Lanka) 28.00%
GMI Construction 30.00%
Gold Mantis (CNMI) 21.00%
M+ 10.00%
2. Tax Preferences
1. Tax Preferences
(1) Income tax
On 2 December 2020, the Company was recognized as a high-tech enterprise by the Jiangsu
Provincial Department of Science and Technology, the Department of Finance of Jiangsu Province,
and Jiangsu Provincial Tax Service of State Taxation Administration. Fro m 2020 to 2022, the
Company revenue tax shall be levied at a reduced rate of 15%.
On 2 December 2020, Gold Mantis Curtain Wall, a wholly-owned subsidiary of the Company,
was recognized as a high-tech enterprise by the Jiangsu Provincial Department of Science and
Technology, the Department of Finance of Jiangsu Province, and Jiangsu Provincial Tax Service of
State Taxation Administration. From 2020 to 2022, the revenue tax of Gold Mantis Curtain Wall shall
be levied at a reduced rate of 15%.
On 2 December 2020, Meiruide, a wholly-owned subsidiary of the Company, was recognized as
a high-tech enterprise by the Jiangsu Provincial Department of Science and Technology, the
Department of Finance of Jiangsu Province, and Jiangsu Provincial Tax Service of State Taxation
Administration. From 2020 to 2022, the revenue tax of Meiruide shall be levied at a reduced rate of
15%.
On 2 December 2020, Refined Decoration & Technology, a subsidiary of Gold Mantis
Prefabricated Construction Technology, which is a holding subsidiary of the Company, was
recognized as a high-tech enterprise by the Jiangsu Provincial Department of Science and
Technology, the Department of Finance of Jiangsu Province, and Jiangsu Provincial Tax Service of
State Taxation Administration. From 2020 to 2022, the revenue tax of Refined Decoration &
Technology shall be levied at a reduced rate of 15%.
204
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
On 6 December 2019, Gold Mantis Landscape, a wholly-owned subsidiary of the Company, was
recognized as a high-tech enterprise by the Jiangsu Provincial Department of Science and
Technology, the Department of Finance of Jiangsu Province, and Jiangsu Provincial Tax Service of
State Taxation Administration. From 2019 to 2021, the revenue tax of Gold Mantis Landscape shall
be levied at a reduced rate of 15%.
In accordance with the Notice on Implementing Inclusive Tax Credit Policies for Small and
Micro Enterprises (C.SH. [2019] No. 13) from the Ministry of Finance and the State Taxation
Administration, from 1 January 2019 to 31 December 2021, the annual taxable revenue of small
low-profit enterprises with a value of less than RMB1 million (including RMB1 million) shall be
included in the taxable revenue at a reduced rate of 25%, and the corporate revenue tax shall be
levied at the tax rate of 20%. The part that the annual taxable revenue exceeds RMB1 million but
not more than RMB3 million shall be included in the taxable revenue at a reduced rate of 50%, and
the corporate revenue tax shall be levied at the tax rate of 20%. Suzhou Meiruide Construction
Decoration Co., Ltd., a subsidiary of Meiruide, belonged to a small low-profit enterprise this year
and enjoyed this preferential tax policy.
(2) Value-added tax
In accordance with the Notice on Policies Relevant to Deepening VAT Reform (Notice No. 39
of 2019 of the Ministry of Finance, the State Taxation Administration, and the General
Administration of Customs) and the Notice on Items Relevant to Deepening VAT Reform (Notice
No. 14 of 2019 of the State Taxation Administration), from 1 April 2019 to 31 December 2021,
taxpayers of the production and living services industry shall be allowed to add 10% of the current
deductible input tax to deduct the tax amount payable. The eligible subsidiaries of the Company,
including Jinpu No. 9, Xi’an Jinchuang, Archi-Feeling Design, Home Decoration E-commerce,
enjoyed the additional deduction policy of input tax.
3. Others
Other taxes were calculated and paid in accordance with relevant national and local
regulations.
VII Notes to the Consolidated Financial Statements
1. Monetary Assets
Unit: RMB
Item Closing balance Opening balance
Cash on hand 1,518,895.79 2,317,047.77
Bank deposits 5,271,477,855.63 5,097,879,607.91
Other monetary assets 1,099,635,094.30 977,562,337.62
205
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Total 6,372,631,845.72 6,077,758,993.30
Including: Total amount deposited
545,795,284.34 480,397,106.87
overseas
Total amount of which the
use is restricted with respect to collateral, 16,564,171.89 25,511,610.47
pledge, being frozen, etc.
Other notes:
Of the closing balance of bank deposits, term deposits amounted to RMB316,061,411.05, and
the total frozen amount with respect to lawsuits stood at RMB16,564,171.89. Of the closing balance
of other monetary assets, security deposits for bank acceptance notes amounted to
RMB965,388,644.75, security deposits for bank guarantees amounted to RMB126,167,670.25, and
security deposits for salaries of peasant-workers amounted to RMB6,820,776.65. Other than the
aforesaid, the closing balance of monetary assets contained no amounts of which the use was
restricted with respect to collateral, pledge, being frozen, etc. and which were exposed to a potential
default risk.
2. Held-for-trading Financial Assets
Unit: RMB
Item Closing balance Opening balance
Financial assets at fair value through profit
2,172,086,741.05 1,694,650,654.74
or loss
Including:
Investments in debt instruments 2,172,086,741.05 1,694,650,654.74
Including:
Total 2,172,086,741.05 1,694,650,654.74
Other notes:
3. Derivative Financial Assets
Unit: RMB
Item Closing balance Opening balance
Other notes:
4. Notes Receivable
(1) Notes Receivable by Type
Unit: RMB
206
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Item Closing balance Opening balance
Trade acceptance notes 8,834,516,728.65 4,365,558,567.45
Total 8,834,516,728.65 4,365,558,567.45
Unit: RMB
Closing balance Opening balance
Allowance for Allowance for
Gross amount Gross amount
doubtful account doubtful account
Type
Allowanc Carrying Allowanc Carrying
Percenta e amount Percentag e amount
Amount Amount Amount Amount
ge percentag e percentag
e e
Including:
Notes receivable for
which the allowances
9,014,81 180,296, 8,834,516 4,409,655 44,096,551. 4,365,558
for doubtful accounts 100.00% 2.00% 100.00% 1.00%
2,988.42 259.77 ,728.65 ,118.63 18 ,567.45
are established on the
grouping basis
Including:
Trade acceptance 9,014,81 180,296, 8,834,516 4,409,655 44,096,551. 4,365,558
100.00% 2.00% 100.00% 1.00%
notes 2,988.42 259.77 ,728.65 ,118.63 18 ,567.45
9,014,81 180,296, 8,834,516 4,409,655 44,096,551. 4,365,558
Total 100.00% 2.00% 100.00% 1.00%
2,988.42 259.77 ,728.65 ,118.63 18 ,567.45
Allowances for doubtful accounts established on the individual basis:
Unit: RMB
Closing balance
Entity Allowance for doubtful
Gross amount Allowance percentage Reason for allowance
account
Allowances for doubtful accounts established on the grouping basis : RMB180,296,259.77
Unit: RMB
Closing balance
Item
Gross amount Allowance for doubtful account Allowance percentage
Trade acceptance notes 9,014,812,988.42 180,296,259.77 2.00%
Total 9,014,812,988.42 180,296,259.77 --
Grouping basis:
Allowances for doubtful accounts established on the grouping basis :
Unit: RMB
Item Closing balance
207
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Gross amount Allowance for doubtful account Allowance percentage
Grouping basis:
Where allowances for doubtful notes receivable are established using the general model of expected credit loss, please disclose
allowance information as other receivables.
□ Applicable √ Not applicable
(2) Allowances for Doubtful Accounts Established or Reversed in the Current Period
Allowances for doubtful accounts in the current period:
Unit: RMB
Change in the current period
Type Opening balance Closing balance
Established Reversed Written off Others
Allowances for
doubtful trade 44,096,551.18 136,199,708.59 180,296,259.77
acceptance notes
Total 44,096,551.18 136,199,708.59 180,296,259.77
Significant reversed allowances for doubtful accounts in the current period:
□ Applicable √ Not applicable
(3) Notes Receivable in Pledge at the Period-End
Unit: RMB
Item Closing amount in pledge
Trade acceptance notes 1,300,000.00
Total 1,300,000.00
(4) Notes Receivable that Were Endorsed or Discounted but Undue on the Balance Sheet Date at the
Period-End
Unit: RMB
Item Closing derecognized amount Closing un-derecognized amount
Trade acceptance notes 1,901,286,639.74
Total 1,901,286,639.74
(5) Notes Receivable Transferred to Accounts Receivable due to Default of the Notes Issuer at the
Period-End
Unit: RMB
Item Closing amount transferred to accounts receivable
Other notes:
208
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
There were no notes receivable that were transferred to accounts receivable due to default of
the notes issuer at the period-end.
(6) Notes Receivable Written Off in the Current Period
Unit: RMB
Item Amount written off
Significant notes receivable written off:
Unit: RMB
Arising from a
Nature of note Write-off procedure
Item Amount written off Reason for write-off related-party
receivable executed
transaction or not
Notes:
No notes receivable were written off in the current period.
5. Accounts Receivable
(1) Accounts Receivable by Type
Unit: RMB
Closing balance Opening balance
Allowance for Allowance for
Gross amount Gross amount
doubtful account doubtful account
Type
Allowanc Carrying Allowanc Carrying
Percenta e amount Percentag e amount
Amount Amount Amount Amount
ge percentag e percentag
e e
Accounts receivable
for which the
allowances for 262,941, 232,409, 30,532,05 199,710,8 168,875,9 30,834,936.
1.70% 88.39% 1.45% 84.56%
doubtful accounts are 258.37 201.69 6.68 54.38 17.79 59
established on the
individual basis
Including:
Accounts receivable
for which the 15,207,6
1,720,40 13,487,25 13,526,50 1,538,020 11,988,484,
allowances for 67,497.5 98.30% 11.31% 98.55% 11.37%
9,597.66 7,899.89 5,454.79 ,612.59 842.20
doubtful accounts are 5
established on the
209
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
grouping basis
Including:
15,207,6
Group of non-related 1,720,40 13,487,25 13,526,50 1,538,020 11,988,484,
67,497.5 98.30% 11.31% 98.55% 11.37%
parties 9,597.66 7,899.89 5,454.79 ,612.59 842.20
5
15,470,6
1,952,81 13,517,78 13,726,21 1,706,896 12,019,319,
Total 08,755.9 100.00% 12.62% 100.00% 12.44%
8,799.35 9,956.57 6,309.17 ,530.38 778.79
2
Allowances for doubtful accounts established on the individual basis : RMB232,409,201.69
Unit: RMB
Closing balance
Entity Allowance for Allowance
Gross amount Reason for allowance
doubtful account percentage
Hefei Zhongzhu Real Estate
29,487,442.03 14,743,721.02 50.00% Based on expected loss
Development Co., Ltd.
Kangde Composites Co., Ltd. 24,448,081.36 24,448,081.36 100.00% Expectedly irrecoverable
Funing Senso International Shopping
22,818,582.00 22,818,582.00 100.00% Expectedly irrecoverable
Center Co., Ltd.
Chongqing Forebase Industrial
21,846,558.74 21,846,558.74 100.00% Expectedly irrecoverable
Investment (Holdings) Co., Ltd.
Xiamen Shiqiao Investment
21,063,774.00 16,851,019.20 80.00% Based on expected loss
Management Co., Ltd.
Anshan Ganglong Guoxin Real Estate
19,704,000.00 19,704,000.00 100.00% Expectedly irrecoverable
Co., Ltd.
Jiangsu Shenghe Tourism
15,988,000.49 15,988,000.49 100.00% Expectedly irrecoverable
Development Co., Ltd.
Yangzhou Sifang Property
15,923,742.05 15,923,742.05 100.00% Expectedly irrecoverable
Development Co., Ltd.
Chenzhou Jinhuang Hotel
15,778,879.42 15,778,879.42 100.00% Expectedly irrecoverable
Management Co., Ltd.
Jiangsu Longzhijie Steel Trading Co.,
13,471,335.56 13,471,335.56 100.00% Expectedly irrecoverable
Ltd.
Zhejiang Global Real Estate Group
11,961,944.74 5,980,972.37 50.00% Based on expected loss
Co., Ltd.
Huaibei Goocoo Commercial
11,189,217.00 5,594,608.50 50.00% Based on expected loss
Operation and Management Co., Ltd.
Jiangsu Zhonghao Holding Group
10,580,950.57 10,580,950.57 100.00% Expectedly irrecoverable
Co., Ltd.
210
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Beijing Hanergy PV Investment Co.,
10,286,740.59 10,286,740.59 100.00% Expectedly irrecoverable
Ltd.
Zhengzhou Hemei Women and
7,595,550.00 7,595,550.00 100.00% Expectedly irrecoverable
Children's Hospital Co., Ltd.
Qingdao Panlong Real Estate
4,801,527.83 4,801,527.83 100.00% Expectedly irrecoverable
Development Co., Ltd.
Shanxi Hengshi P ingyang Real Estate
3,733,597.38 3,733,597.38 100.00% Expectedly irrecoverable
Development Co., Ltd.
Jiujiang Deheng Properties Co., Ltd. 1,464,468.43 1,464,468.43 100.00% Expectedly irrecoverable
SKAI Zaya Real Estate Development
796,866.18 796,866.18 100.00% Expectedly irrecoverable
LLC.
Total 262,941,258.37 232,409,201.69 -- --
Allowances for doubtful accounts established on the individual basis :
Unit: RMB
Closing balance
Item Allowance for doubtful
Gross amount Allowance percentage Reason for allowance
account
Allowances for doubtful accounts established on the grouping basis: RMB1,720,409,597.66
Unit: RMB
Closing balance
Item
Gross amount Allowance for doubtful account Allowance percentage
Within 1 year 11,786,063,738.24 589,303,186.91 5.00%
1-2 years 1,733,111,912.59 173,311,191.26 10.00%
2-3 years 621,160,040.95 186,348,012.28 30.00%
3-4 years 502,624,954.35 251,312,477.18 50.00%
4-5 years 222,860,606.95 178,288,485.56 80.00%
Over 5 years 341,846,244.47 341,846,244.47 100.00%
Total 15,207,667,497.55 1,720,409,597.66 --
Grouping basis:
Allowances for doubtful accounts established on the grouping basis:
Unit: RMB
Closing balance
Item
Gross amount Allowance for doubtful account Allowance percentage
Grouping basis:
Where allowances for doubtful accounts receivable are established using the general model of expecte d credit loss, please disclose
allowance information as other receivables.
□ Applicable √ Not applicable
211
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
By aging:
Unit: RMB
Aging Gross amount
Within 1 year (inclusive) 11,848,098,110.23
1-2 years 1,759,680,863.65
2-3 years 666,426,362.40
Over 3 years 1,196,403,419.64
3-4 years 557,497,231.83
4-5 years 239,581,215.14
Over 5 years 399,324,972.67
Total 15,470,608,755.92
The Company is subject to the Guide No. 6 of the Shenzhen Stock Exchange on Industry-Specific Information Disclosure—Listed
Companies Engaged in Construction Decoration.
(2) Allowances for Doubtful Accounts Established or Reversed in the Current Period
Allowances for doubtful accounts in the current period:
Unit: RMB
Change in the current period
Type Opening balance Closing balance
Established Reversed Written off Others
Allowances for
doubtful accounts
168,875,917.79 91,716,982.35 28,183,698.45 232,409,201.69
established on the
individual basis
Allowances for
doubtful accounts
1,538,020,612.59 219,347,809.25 25,170,935.36 11,787,888.82 1,720,409,597.66
established on the
grouping basis
Total 1,706,896,530.38 311,064,791.60 53,354,633.81 11,787,888.82 1,952,818,799.35
Significant reversed allowances for doubtful accounts in the current period:
Unit: RMB
Entity Amount reversed Way of recovery
Other decreases referred to allowances for doubtful accounts decreased due to the disposal of
certain “Gold Mantis Home” subsidiaries in 2020.
212
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
(3) Accounts Receivable Written Off in the Current Period
Unit: RMB
Item Amount written off
Accounts receivable written off 53,354,633.81
Significant accounts receivable written off:
Unit: RMB
Nature of Arising from a
Amount Write-off procedure
Entity account Reason for write-off related-party
written off executed
receivable transaction or not
Suzhou Senso Tiandi Commerce Engineering Approval procedure
11,195,518.00 Irrecoverable Not
Development Co., Ltd. payment for write-offs
Zhejiang Zhongqing Real Estate Engineering Approval procedure
9,968,372.45 Irrecoverable Not
Co., Ltd. payment for write-offs
Suzhou Wujiang Senso International Engineering Approval procedure
8,475,000.00 Irrecoverable Not
Shopping Center Co., Ltd. payment for write-offs
Liaoning Bihu Hot Spring Club Engineering Approval procedure
7,047,393.00 Irrecoverable Not
Management Co., Ltd. payment for write-offs
Engineering Approval procedure
Heze Dayuan Real Estate Co., Ltd. 7,019,808.00 Irrecoverable Not
payment for write-offs
Suzhou Jiahe Commercial Building Engineering Approval procedure
5,474,705.06 Irrecoverable Not
Co., Ltd. payment for write-offs
Jiangsu Hongda Construction Group Engineering Approval procedure
2,173,837.30 Irrecoverable Not
Co., Ltd. payment for write-offs
Foshan International Furniture Engineering Approval procedure
2,000,000.00 Irrecoverable Not
EXPO MALL payment for write-offs
Total -- 53,354,633.81 -- -- --
Notes:
(4) Top Five Entities with Respect to Accounts Receivable
Unit: RMB
Closing balance of accounts As a % of the closing balance of Closing balance of allowances for
Entity
receivable total accounts receivable doubtful accounts
Entity 1 638,201,902.75 4.13% 31,910,095.14
Entity 2 141,511,109.64 0.91% 7,075,555.48
Entity 3 135,741,214.70 0.88% 6,787,060.74
Entity 4 120,928,130.57 0.78% 6,046,406.53
213
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Entity 5 119,712,118.87 0.77% 5,985,605.94
Total 1,156,094,476.53 7.47%
(5) Accounts Receivable Derecognized due to Transfer of Financial Assets
Way of transfer of financial assets Amount of accounts receivable Gain or loss on derecognition
derecognized
Factoring of accounts receivable 911,009,097.11 -40,604,761.02
In 2020, the Company transferred, without recourse, accounts receivable of
RMB911,009,097.11 to financial institutions, and the relevant loss stood at RMB40,604,761.02.
(6) Assets and Liabilities Arising from Continuing to Involve in Accounts Receivable upon Transfer
No such assets and liabilities as at the period-end.
Other information:
6. Receivables Financing
Unit: RMB
Item Closing balance Opening balance
Notes receivable 275,822,920.18 261,530,861.26
Total 275,822,920.18 261,530,861.26
Changes in receivables financing and in their fair value in the current period:
□ Applicable √ Not applicable
Where allowances for doubtful receivables financing are established using the general model of expected credit loss, please disclose
allowance information as other receivables:
□ Applicable √ Not applicable
Other information:
(1) Receivables Financing in Pledge as at the Period-End
Item Amount in pledge
Bank acceptance notes 82,472,805.60
(2) Receivables Financing that Were Endorsed or Discounted but Undue on the Balance Sheet
Date at the Period-End
Item Derecognized amount Un-derecognized amount
Bank acceptance notes 1,907,020,650.41 —
(3) Notes receivable in receivables financing were all bank accepta nce notes as at the
period-end. The Company did not establish asset impairment allowances for it believed that these
bank acceptance notes were exposed to insignificant credit risk and that no significant losses would
be incurred due to default by banks or other note issuers.
214
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
7. Prepayments
(1) Prepayments by Aging
Unit: RMB
Closing balance Opening balance
Aging
Amount Percentage Amount Percentage
Within 1 year 155,846,211.23 84.41% 262,220,438.54 91.20%
1-2 years 15,553,717.74 8.43% 14,773,110.88 5.14%
2-3 years 7,092,626.76 3.84% 5,475,742.57 1.90%
Over 3 years 6,129,682.01 3.32% 5,055,207.92 1.76%
Total 184,622,237.74 -- 287,524,499.91 --
Reason for not being able to settle with respect to prepayments over 1 year with a substantial amount:
No such prepayments at the period-end.
(2) Top Five Entities with Respect to Prepayments
Entity Balance as at 31 December 2020 As a % of the total balance of
prepayments
Entity 1 20,022,817.22 10.85
Entity 2 17,538,021.75 9.50
Entity 3 8,077,292.84 4.37
Entity 4 6,769,907.03 3.67
Entity 5 4,300,581.42 2.33
Total 56,708,620.26 30.72
Other information:
Prepayments as at 31 December 2020 declined 35.79% compared to 1 January 2020, primarily
driven by a decrease in prepayments for raw materials as a result of the exclusion of “Gold Mantis
Home” subsidiaries in the current period.
8. Other Receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 238,574,992.82 248,803,300.64
Total 238,574,992.82 248,803,300.64
215
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
(1) Interest Receivable
1) Interest Receivable by Type
Unit: RMB
Item Closing balance Opening balance
2) Substantial Interest Overdue
Unit: RMB
Any impairment and
Borrower Closing balance Overdue time Reason basis for impairment
judgment
Other information:
3) Allowances for Doubtful Interest Receivable
□ Applicable √ Not applicable
(2) Dividends Receivable
1) Dividends Receivable by Type
Unit: RMB
Item (or investee) Closing balance Opening balance
2) Substantial Dividends Receivable Over 1 Year
Unit: RMB
Any impairment and
Reason for being
Item (or investee) Closing balance Aging basis for impairment
outstanding
judgment
3) Allowances for Doubtful Dividends Receivable
□ Applicable √ Not applicable
Other information:
(3) Other Receivables
1) Other Receivables by Nature
Unit: RMB
216
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Nature of other receivable Closing balance Opening balance
Security deposits 309,634,210.20 319,288,570.11
Imprest funds 10,420,087.26 10,911,086.13
Others 9,600,557.79 8,696,157.42
Total 329,654,855.25 338,895,813.66
2) Allowances for Doubtful Other Receivables
Unit: RMB
Stage 1 Stage 2 Stage 3
Lifetime expected credit Lifetime expected credit
Allowances 12-month expected Total
loss (without credit loss (with credit
credit loss
impairment) impairment)
Balance as at 1 January
90,092,513.02 90,092,513.02
2020
Balance as at 1 January
2020 in the current —— —— —— ——
period
Established in the current
3,601,882.53 3,601,882.53
period
Written off in the current
1,158,746.09 1,158,746.09
period
Other changes 1,455,787.03 1,455,787.03
Balance as at 31
91,079,862.43 91,079,862.43
December 2020
Balances with significant changes in loss allowances in the current period:
□ Applicable √ Not applicable
By aging:
Unit: RMB
Aging Closing balance
Within 1 year (inclusive) 172,878,476.62
1-2 years 63,966,332.11
2-3 years 21,464,374.24
Over 3 years 71,345,672.28
3-4 years 13,855,523.62
4-5 years 6,061,230.62
Over 5 years 51,428,918.04
217
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Total 329,654,855.25
3) Allowances for Doubtful Other Receivables Established or Reversed in the Current Period
Allowances for doubtful other receivables in the current period:
Unit: RMB
Opening Change in the current period
Type Closing balance
balance Established Reversed Written off Others
Established on the
6,250,000.00 2,827,031.97 9,077,031.97
individual basis
Established on the
83,842,513.02 774,850.56 1,158,746.09 1,455,787.03 82,002,830.46
grouping basis
Total 90,092,513.02 3,601,882.53 1,158,746.09 1,455,787.03 91,079,862.43
Other decreases in such allowances were driven by the disposal of certain “Gold Mantis
Home” subsidiaries in 2020.
Significant reversed allowances in the current period:
Unit: RMB
Entity Amount reversed Way of recovery
4) Other Receivables Written off in the Current Period
Unit: RMB
Item Amount written off
Other receivables written off 1,158,746.09
Significant other receivables written off:
Unit: RMB
Arising from a
Nature of other Write-off procedure
Entity Amount written off Reason for write-off related-party
receivable executed
transaction or not
Heze Baina
Construction
Expectedly Approval procedure
Decoration Security deposit 1,008,746.09 Not
irrecoverable for write-offs
Engineering Co.,
Ltd.
Total -- 1,008,746.09 -- -- --
Notes:
218
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
5) Top Five Entities with Respect to Other Receivables
Unit: RMB
As a % of the Closing balance of
Nature of other closing balance of allowances for
Entity Closing balance Aging
receivable total other doubtful other
receivables receivables
Security deposit for
Entity 1 46,984,676.77 Over 4 years 14.25% 43,234,676.77
engineering project
Security deposit for
Entity 2 10,573,100.00 0-2 years 3.21% 1,050,859.43
execution
Security deposit for
Entity 3 9,291,641.95 1-2 years 2.82% 929,164.20
construction
Security deposit for
Entity 4 5,654,063.93 Within 1 year 1.71% 2,827,031.97
construction
Security deposits for
bidding and
Entity 5 5,100,000.00 Within 1 year 1.55% 255,000.00
construction
drawings
Total -- 77,603,482.65 -- 23.54% 48,296,732.37
6) Other Receivables Associated with Government Grants
Unit: RMB
Expected time of receipt
and amount to be
Entity Title of government grant Closing balance Closing aging
received, as well as
judgment basis
No such other receivables as at the period-end.
7) Other Receivables Derecognized due to Transfer of Financial Assets
No such other receivables as at the period-end.
8) Assets and Liabilities Arising from Continuing to Involve in Other Receivables upon Transfer
No such assets or liabilities as at the period-end.
Other information:
9. Inventories
Is the Company subject to the disclosure requirements for the real estate industry?
219
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
No.
(1) Inventories by Type
Unit: RMB
Closing balance Opening balance
Inventory Inventory
valuation valuation
allowances or allowances or
Item impairment impairment
Gross amount Carrying amount Gross amount Carrying amount
allowances for allowances for
contract contract
performance performance
costs costs
Raw materials 21,949,126.04 21,949,126.04 31,873,821.55 31,873,821.55
Work-in-progress 2,866,264.15 2,866,264.15 4,060,401.32 4,060,401.32
Finished goods 12,242,103.39 591,588.71 11,650,514.68 46,733,581.91 221,541.68 46,512,040.23
Turnover
465,048.33 465,048.33 2,232,904.75 2,232,904.75
materials
Consumptive
16,910,928.84 16,910,928.84 16,664,961.43 16,664,961.43
living assets
Total 54,433,470.75 591,588.71 53,841,882.04 101,565,670.96 221,541.68 101,344,129.28
(2) Inventory Valuation Allowances and Impairment Allowances for Contract Performance Costs
Unit: RMB
Increase in the current period Decrease in the current period
Item Opening balance Reversed or Closing balance
Established Others Others
written off
Finished goods 221,541.68 370,047.03 591,588.71
Total 221,541.68 370,047.03 591,588.71
Inventories declined 46.87% as at 31 December 2020 compared to 1 January 2020, primarily
driven by a decrease in finished goods as a result of the disposal of “Gold Mantis Home”
subsidiaries.
220
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
(3) Capitalized Borrowing Costs in the Closing Balance of Inventories
(4) Amortization of Contract Performance Costs in the Current Period
10. Contract Assets
Unit: RMB
Closing balance Opening balance
Item Impairment Carrying Impairment
Gross amount Gross amount Carrying amount
allowances amount allowances
Completed but unsettled 6,783,629,836. 6,443,291,244. 9,082,105,628.
340,338,591.79 454,105,281.41 8,628,000,347.08
assets 10 31 49
Undue quality assurance 2,462,490,569. 2,333,611,979. 1,631,100,643.
128,878,589.96 81,555,032.14 1,549,545,611.03
deposits 90 94 17
9,246,120,406. 8,776,903,224. 10,713,206,271 10,177,545,958.1
Total 469,217,181.75 535,660,313.55
00 25 .66 1
Significant changes in the carrying amounts of contract assets in the current period and reasons:
Unit: RMB
Item Amount of change Reason for change
Where impairment allowances for contract assets are established using the general model of expected credit loss, please disclose
allowance information as other receivables:
□ Applicable √ Not applicable
Impairment allowances for contract assets in the current period:
Unit: RMB
Established in the current Reversed in the current Written off/charged off in
Item Reason
period period the current period
Impairment allowances -66,443,131.80
Total -66,443,131.80 --
Other information:
11. Assets Held for Sale
Unit: RMB
Closing gross Impairment Closing carrying Expected disposal Expected disposal
Item Fair value
amount allowances amount cost time
Other information:
12. Current Portion of Non-Current Assets
Unit: RMB
221
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Item Closing balance Opening balance
Current portion of long-term receivables 90,289,257.26 31,698,807.42
Less: allowances for doubtful long-term
-902,892.57 -316,988.07
receivables
Total 89,386,364.69 31,381,819.35
Substantial debt investments/other debt investments:
Unit: RMB
Closing balance Opening balance
Debt investment Nominal Nominal Effective Nominal Nominal Effective
Maturity Maturity
value interest rate interest rate value interest rate interest rate
Other information:
Current portion of non-current assets rose 184.83% as at 31 December 2020 compared to 1
January 2020, primarily driven by a significant amount of engineering payment receivable by
subsidiary Shuicheng Ruitong being reclassified to the current portion of non-current assets.
13. Other Current Assets
Unit: RMB
Item Closing balance Opening balance
Taxes to be deducted 113,007,717.52 116,384,039.46
Total 113,007,717.52 116,384,039.46
Other information:
14. Debt Investments
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Gross amount Carrying amount Gross amount Carrying amount
allowances allowances
Substantial debt investments:
Unit: RMB
Closing balance Opening balance
Debt investment Nominal Nominal Effective Nominal Nominal Effective
Maturity Maturity
value interest rate interest rate value interest rate interest rate
Impairment allowances:
Unit: RMB
Stage 1 Stage 2 Stage 3
Impairment allowances Total
12-month expected Lifetime expected credit Lifetime expected credit
222
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
credit loss loss (without credit loss (with credit
impairment) impairment)
Balance as at 1 January
2020 in the current —— —— —— ——
period
Balances with significant changes in loss allowances in the current period:
□ Applicable √ Not applicable
Other information:
15. Other Debt Investments
Unit: RMB
Cumulative
loss
Changes in
Cumulative allowances
Opening Accrued fair value in Closing
Item Cost changes in recognized in Remark
balance interest the current balance
fair value other
period
comprehensi
ve income
Substantial other debt investments:
Unit: RMB
Closing balance Opening balance
Other debt investment Nominal Nominal Effective Nominal Nominal Effective
Maturity Maturity
value interest rate interest rate value interest rate interest rate
Impairment allowances:
Unit: RMB
Stage 1 Stage 2 Stage 3
Lifetime expected credit Lifetime expected credit
Impairment allowances 12-month expected Total
loss (without credit loss (with credit
credit loss
impairment) impairment)
Balance as at 1 January
2020 in the current —— —— —— ——
period
Balances with significant changes in loss allowances in the current period:
□ Applicable √ Not applicable
Other information:
223
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
16. Long-term Receivables
(1) Particulars about Long-term Receivables
Unit: RMB
Closing balance Opening balance
Allowances for Allowances for
Range of
Item doubtful Carrying doubtful Carrying
Gross amount Gross amount discount rates
long-term amount long-term amount
receivables receivables
Engineering
1,543,455,556. 1,528,021,000. 1,453,168,093. 1,438,636,412.
payments by 15,434,555.57 14,531,680.93
41 84 23 30
installment
1,543,455,556. 1,528,021,000. 1,453,168,093. 1,438,636,412.
Total 15,434,555.57 14,531,680.93 --
41 84 23 30
Allowances for doubtful long-term receivables:
Unit: RMB
Stage 1 Stage 2 Stage 3
Allowances for doubtful Lifetime expected credit Lifetime expected credit
12-month expected Total
long-term receivables loss (without credit loss (with credit
credit loss
impairment) impairment)
Balance as at 1 January
14,531,680.93 14,531,680.93
2020
Balance as at 1 January
2020 in the current —— —— —— ——
period
Established in the current
902,874.64 902,874.64
period
Balance as at 31
15,434,555.57 15,434,555.57
December 2020
Balances with significant changes in loss allowances in the current period:
□ Applicable √ Not applicable
(2) Long-term Receivables Derecognized due to Transfer of Financial Assets
No such long-term receivables as at the period-end.
(3) Assets and Liabilities Arising from Continuing to Involve in Long-term Receivables upon Transfer
No such assets or liabilities as at the period-end.
224
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Other information:
Top five entities with respect to long-term receivables as at the period-end:
As a % of the balance of
Entity Balance as at 31 December Balance of
2020 total long-term allowances for
receivables doubtful long-term
receivables
Entity 1 886,888,566.70 57.46 8,868,885.67
Entity 2 279,622,082.77 18.12 2,796,220.83
Entity 3 149,661,726.24 9.70 1,496,617.26
Entity 4 137,170,209.87 8.89 1,371,702.10
Entity 5 51,143,400.15 3.31 511,434.00
Total 1,504,485,985.73 97.48 15,044,859.86
17. Long-term Equity Investments
Unit: RMB
Change in the current period
Return on Closing
Opening investmen Adjustme Closing balance
Reduce Declared
balance t nt to other Other Impairme balance of
Investee Additional d cash
(carrying recognize comprehe equity nt Others (carrying impairme
investment investm dividends
amount) d using nsive changes allowance amount) nt
ent or profit
the equity income allowance
method
1. Joint ventures
2. Associates
Macao
Gold
Mantis
Construct
ion
Decoratio
n Co.,
Limited
Delos
6,366,934 -6,141,81 225,124.0
Residenti
.25 0.19 6
al
225
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Solutions
（HK）
Limited
Zhejiang
Tianyu
Commerc
ial 16,471,48 13,056,60 -3,414,88
Operation 9.41 2.98 6.43
Managem
ent Co.,
Ltd.
22,838,42 13,056,60 -9,556,69 225,124.0
Subtotal
3.66 2.98 6.62 6
22,838,42 13,056,60 -9,556,69 225,124.0
Total
3.66 2.98 6.62 6
Other information:
(1) On 18 July 2016, in accordance with the Framework Agreement signed between the
Company's subsidiary, Gold Mantis (International), and Macao Yuji Limited and Yuzhuo
International Limited (hereinafter referred to as the "Transferee"), Gold Ma ntis (International)
transferred its 55% equity in Macao Gold Mantis Construction Decoration Limited to the
Transferee. Upon the completion of the above transaction, Gold Mantis (International) would be
able to exert a significant influence on Macao Gold Mantis Construction Decoration Limited, so the
equity method was adopted for accounting. As of 31 December 2020, the subsidiary Gold Mantis
(International) had not yet made the actual capital contribution, and Macao Gold Mantis
Construction Decoration Limited had not yet carried out business operations.
(2) On 25 August 2017, Gold Mantis (International), a subsidiary of the Company, invested
jointly with Delos China (HK) Limited to establish Delos Residential Solutions (HK) Limited, with
a registered capital of USD2.00 million. As of 31 December 2020, Gold Mantis (International) had
a 45.78% shareholding and was able to exert a significant influence on Delos Residential Solutions
(HK) Limited, so the equity method was adopted for accounting.
(3) On 22 December 2017, the Company and its sub-subsidiary Refined Decoration &
Technology invested to establish Zhejiang Tianyu Commercial Operation Management Co., Ltd.
jointly with Zhongtian Holdings Group Co., Ltd., with a registered capital of RMB50.00 million.
Specifically, the Company contributed RMB17.50 million, accounting for 35.00% of the registered
capital; Refined Decoration & Technology contributed RMB7.50 million, accounting for 15.00% of
the registered capital. Since the Company was able to exert a significant influence on Zhejiang
Tianyu Commercial Operation Management Co., Ltd., the equity method was adopted for
accounting. In September 2020, the Company and its subsidiary Refined Decoration & Technology
transferred their 50.00% stake in Zhejiang Tianyu Co mmercial Operation Management Co., Ltd. to
Hangzhou Tianshuo Apartment Management Co., Ltd. based on the Agreement on Equity Transfer
and Relevant Matters signed between the Company and its subsidiary Refined Decoration &
Technology and Hangzhou Tianshuo Apartment Management Co., Ltd., and the registration of
226
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
industrial and commercial changes was completed on 29 October 2020.
(4) At the end of 2020, the amount of long-term equity investments was 99.01% lower than that
at the beginning of 2020, which was largely attributable to the large amount of investments in the
equity disposal of Zhejiang Tianyu Commercial Operation Management Co., Ltd. for the current
period.
18. Investments in Other Equity Instruments
Unit: RMB
Item Closing balance Opening balance
Investments in equity instruments not held for trading in the current period by item:
Unit: RMB
Reason for being
Other designated as Reason for other
comprehensive being measured at comprehensive
Dividend income Cumulative
Item Cumulative gains income fair value through income being
recognized losses
transferred to other transferred to
retained earnings comprehensive retained earnings
income
Other information:
19. Other Non-current Financial Assets
Unit: RMB
Item Closing balance Opening balance
Equity investments
Of which: Zhijiang New Industrial Co.,
250,000,000.00 250,000,000.00
Ltd.
Shanghai Yunfeng Qitai Investment Center
200,000,000.00 132,000,000.00
(L.P.)
Shanghai Cura Investment&Management
31,872,000.00 31,872,000.00
Co., Ltd.
Lanzhou Scisky Waterborne Technologies
30,000,000.00 30,000,000.00
Co., Ltd.
Suzhou People's Department Store Co.,
150,000.00 150,000.00
Ltd.
Total 512,022,000.00 444,022,000.00
Other information:
227
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
20. Investment Property
(1) Investment Property Measured at Cost
√ Applicable □ Not applicable
Unit: RMB
Item Buildings Land use rights Construction in progress Total
I Gross amount
1. Opening balance 107,603,669.46 4,789,221.26 112,392,890.72
2. Increase in the
58,816,519.62 3,466,275.52 62,282,795.14
current period
(1) Purchased 25,560,270.67 25,560,270.67
(2) Transferred from
inventories \fixed
33,256,248.95 3,466,275.52 36,722,524.47
assets\construction in
progress
(3) Increase due to
business combination
3. Decrease in the
current period
(1) Disposal
(2) Other decreases
4. Closing balance 166,420,189.08 8,255,496.78 174,675,685.86
II Accumulated
depreciation and
amortization
1. Opening balance 30,741,814.64 3,400,514.38 34,142,329.02
2. Increase in the
4,353,890.76 883,557.14 5,237,447.90
current period
(1) Provided or
4,353,890.76 260,112.12 4,614,002.88
amortized
(2) Transferred
623,445.02 623,445.02
from intangible assets
3. Decrease in the
current period
(1) Disposal
228
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
(2) Other decreases
4. Closing balance 35,095,705.40 4,284,071.52 39,379,776.92
III Impairment
allowances
1. Opening balance
2. Increase in the
current period
(1) Established
3. Decrease in the
current period
(1) Disposal
(2) Other decreases
4. Closing balance
IV Carrying amount
1. Closing carrying
131,324,483.68 3,971,425.26 135,295,908.94
amount
1. Opening carrying
76,861,854.82 1,388,706.88 78,250,561.70
amount
(2) Investment Property Measured at Fair Value
□ Applicable √ Not applicable
(3) Investment Property with Pending Ownership Certificate
Unit: RMB
Reason for ownership certificate being
Item Carrying amount
pending
Going through the formalities in relation to
Buildings 33,256,248.95
ownership certificate
Other information:
(1) No impairment allowances were established for investment property as at the period-end
for there were no impairments in investment property.
(2) Investment property rose 72.90% as at 31 December 2020 compared to 1 January 2020,
primarily driven by a larger amount of buildings leased out in the current period.
229
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
21. Fixed Assets
Unit: RMB
Item Closing balance Opening balance
Fixed assets 892,169,838.74 910,175,452.03
Total 892,169,838.74 910,175,452.03
(1) Particulars about Fixed Assets
Unit: RMB
Plant and Transportation office Electronic Other
Item Buildings Total
equipment equipment equipment equipment equipment
I Gross amount
1. Opening 1,033,143,972. 1,397,705,551.
59,276,036.57 81,232,176.69 153,127,873.55 47,904,114.25 23,021,378.36
balance 15 57
2. Increase
in the current 26,544,870.62 3,716.81 3,916,986.63 7,996,903.73 3,010,059.08 371,919.30 41,844,456.17
period
(1)
9,125,382.53 3,716.81 3,916,986.63 7,996,903.73 3,010,059.08 371,919.30 24,424,968.08
Purchased
(2)
Transferred
from 17,419,488.09 17,419,488.09
construction in
progress
(3)
Increase due to
business
combination
3. Decrease
in the current 102,603.42 6,641,436.53 13,601,427.46 4,257,610.84 1,364,201.59 25,967,279.84
period
(1)
Disposal or 98,803.42 6,259,565.12 7,502,864.04 4,257,610.84 1,352,990.40 19,471,833.82
retirement
(2) Other
3,800.00 381,871.41 6,098,563.42 11,211.19 6,495,446.02
decreases
4. Closing 1,059,688,842. 1,413,582,727.
59,177,149.96 78,507,726.79 147,523,349.82 46,656,562.49 22,029,096.07
balance 77 90
230
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
II Accumulated
depreciation
1. Opening
220,388,489.29 39,406,430.30 61,910,440.72 110,646,298.04 35,975,206.38 18,584,150.16 486,911,014.89
balance
2. Increase
in the current 30,374,380.37 3,555,997.36 4,226,871.72 10,710,437.00 4,344,086.95 994,260.71 54,206,034.11
period
(1)
30,374,380.37 3,555,997.36 4,226,871.72 10,710,437.00 4,344,086.95 994,260.71 54,206,034.11
Provision
3. Decrease
in the current 42,803.42 5,736,766.38 9,812,060.80 3,685,735.74 1,045,878.15 20,323,244.49
period
(1)
Disposal or 41,991.26 5,481,163.98 7,198,823.93 3,685,735.74 1,040,910.20 17,448,625.11
retirement
(2) Other
812.16 255,602.40 2,613,236.87 4,967.95 2,874,619.38
decreases
4. Closing
250,762,869.66 42,919,624.24 60,400,546.06 111,544,674.24 36,633,557.59 18,532,532.72 520,793,804.51
balance
III Impairment
allowances
1. Opening
46,631.91 290,705.70 281,747.04 619,084.65
balance
2.Increase in
the current
period
(1)
Established
3. Decrease
in the current
period
(1)
Disposal or
retirement
4. Closing
46,631.91 290,705.70 281,747.04 619,084.65
balance
231
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
IV Carrying
amount
1. Closing
carrying 808,925,973.11 16,210,893.81 17,816,475.03 35,696,928.54 10,023,004.90 3,496,563.35 892,169,838.74
amount
2.
Opening
812,755,482.86 19,822,974.36 19,031,030.27 42,199,828.47 11,928,907.87 4,437,228.20 910,175,452.03
carrying
amount
(2) Temporarily Idle Fixed Assets
Unit: RMB
Accumulated Impairment
Item Gross amount Carrying amount Remark
depreciation allowance
(3) Fixed Assets Leased in in Finance Leases
Unit: RMB
Accumulated
Item Gross amount Impairment allowance Carrying amount
depreciation
(4) Fixed Assets Leased out in Operating Leases
Unit: RMB
Item Closing carrying amount
(5) Fixed Assets with Pending Ownership Certificate
Unit: RMB
Reason for ownership certificate being
Item Carrying amount
pending
Other information:
Notes:
① Other decreases were driven by the disposal of certain “Gold Mantis Home” subsidiaries.
② No fixed assets were idle, exchanged, in pledge or used for guarantees as at the period-end.
③ There were no fixed assets leased in in finance leases as at the period-end.
④ There were no fixed assets leased out in operating leases as at the period-end.
⑤ There were no fixed assets with pending ownership certificate as at the period-end.
232
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
(6) Disposal of Fixed Assets
Unit: RMB
Item Closing balance Opening balance
Other information:
22. Construction in Progress
Unit: RMB
Item Closing balance Opening balance
Construction in progress 41,215,785.57 71,905,579.25
Total 41,215,785.57 71,905,579.25
(1) Particulars about Construction in Progress
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Gross amount Carrying amount Gross amount Carrying amount
allowance allowance
Project of
extending the
energy-saving
20,711,581.55 20,711,581.55
curtain wall, door
and window
production line
Miscellaneous
41,215,785.57 41,215,785.57 51,193,997.70 51,193,997.70
projects
Total 41,215,785.57 41,215,785.57 71,905,579.25 71,905,579.25
(2) Changes in Substantial Construction in Progress in the Current Period
Unit: RMB
Of
Transferr Cumulati
which: Interest
ed to Other ve Cumulati
Increase Capitaliz capitaliz
fixed decrease project ve
Opening in the Closing Project ed ation rate Funding
Project Budget assets in s in the investme capitaliz
balance current balance progress interest for the source
the current nt as a % ed
period in the current
current period of the interest
current period
period budget
period
Project 26,000,0 20,711,5 12,544,6 33,256,2 127.91% 100.00 Other
233
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
of 00.00 81.55 67.40 48.95
extendin
g the
energy-s
aving
curtain
wall,
door and
window
producti
on line
Miscella
51,193,9 9,624,28 17,419,4 2,183,00 41,215,7
neous Other
97.70 3.75 88.09 7.79 85.57
projects
26,000,0 71,905,5 22,168,9 50,675,7 2,183,00 41,215,7
Total -- -- --
00.00 79.25 51.15 37.04 7.79 85.57
(3) Impairment Allowances for Construction in Progress in the Current Period
Unit: RMB
Amount of impairment allowances in the
Item Reason for impairment allowances
current period
Other information:
(1) Other decreases in 2020 were transfers to long-term prepaid expense.
(2) No impairment allowances were established for construction in progress as at the
period-end for there were no impairments in construction in progress.
(3) Construction in progress declined 42.68% as at 31 December 2020 compared to 1 January
2020, primarily driven by the project of extending the energy-saving curtain wall, door and window
production line being completed and transferred to fixed assets.
(4) Engineering Materials
Unit: RMB
Closing balance Opening balance
Item Impairment Carrying Impairment Carrying
Gross amount Gross amount
allowance amount allowance amount
Other information:
234
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
23. Productive Living Assets
(1) Productive Living Assets Measured at Cost
□ Applicable √ Not applicable
(2) Productive Living Assets Measured at Fair Value
□ Applicable √ Not applicable
24. Oil and Gas Assets
□ Applicable √ Not applicable
25. Right-of-use Assets
Unit: RMB
Item Total
Other information:
26. Intangible Assets
(1) Particulars about Intangible Assets
Unit: RMB
Non-patented Software and
Item Land use rights Patent rights Concessions Total
technologies others
I Gross amount
1. Opening
90,373,053.62 198,130.00 36,000,000.00 59,624,569.24 186,195,752.86
balance
2. Increase
in the current 809,239.20 809,239.20
period
(1)
809,239.20 809,239.20
Purchased
(2)
Internal R&D
(3)
Increase due to
business
combination
235
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
3. Decrease in
9,095,039.01 4,348,131.15 13,443,170.16
the current period
(1)
5,628,763.49 4,348,131.15 9,976,894.64
Disposal
(2)
Transferred to
3,466,275.52 3,466,275.52
investment
property
4. Closing
81,278,014.61 198,130.00 36,000,000.00 56,085,677.29 173,561,821.90
balance
II Accumulated
amortization
1. Opening
25,830,165.48 198,130.00 4,083,333.34 46,978,302.95 77,089,931.77
balance
2. Increase
in the current 5,539,310.57 4,456,754.16 9,996,064.73
period
(1)
5,539,310.57 4,456,754.16 9,996,064.73
Provision
3. Decrease
in the current 1,083,127.36 1,983,555.60 3,066,682.96
period
(1)
459,682.34 1,983,555.60 2,443,237.94
Disposal
(2)
Transferred to
623,445.02 623,445.02
investment
property
4. Closing
30,286,348.69 198,130.00 4,083,333.34 49,451,501.51 84,019,313.54
balance
III Impairment
allowances
1. Opening
balance
2. Increase
in the current
period
(1)
236
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Established
3. Decrease
in the current
period
(1) Disposal
4. Closing
balance
IV Carrying
amount
1. Closing
50,991,665.92 31,916,666.66 6,634,175.78 89,542,508.36
carrying amount
2. Opening
64,542,888.14 31,916,666.66 12,646,266.29 109,105,821.09
carrying amount
Intangible assets arising from internal R&D accounted for 0.00% of the balance of intangible assets as at the period-end.
(2) Land Use Rights with Pending Ownership Certificate
Unit: RMB
Reason for ownership certificate being
Item Carrying amount
pending
Other information:
(1) No impairment allowances were established for intangible assets as at the period-end for
there were no impairments in intangible assets.
(2) No intangible assets were idle, exchanged, in pledge or used for guarantees as at the
period-end.
27. Development Costs
Unit: RMB
Increase in the current period Decrease in the current period
Opening Internal Recognized Transferred Closing
Item
balance development Others as intangible to profit or balance
costs assets loss
Total
Other information:
237
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
28. Goodwill
(1) Gross Amounts of Goodwill
Unit: RMB
Increase in the current period Decrease in the current period
Investee or item
Generated due to
generating Opening balance Closing balance
business Disposal Others
goodwill
combination
HBA 410,065,631.57 26,527,711.29 383,537,920.28
Coopers Hill
Singapore Pte 19,100,835.60 1,235,659.40 17,865,176.20
Ltd*
Archi-Feeling 6,652,310.57 6,652,310.57
Total 435,818,777.74 27,763,370.69 408,055,407.05
(2) Impairment Allowances for Goodwill
Unit: RMB
Investee or item Increase in the current period Decrease in the current period
generating Opening balance Closing balance
Established Disposal
goodwill
HBA 0.00 0.00 0.00 0.00 0.00 0.00
CHS 0.00 0.00 0.00 0.00 0.00 0.00
Archi-Feeling 0.00 0.00 0.00 0.00 0.00
Total
Information related to asset groups or asset group combinations in which goodwill resides
An explanation for the goodwill impairment test process, key parameters (such as growth rate in the forecast period, growth r ate in
the stable period, profit margin, discount rate and forecast period used in predicting the present value of future cash flow s), and
recognition methods of goodwill impairment loss:
Note*: Coopers Hill Singapore Pte Ltd is hereinafter referred to as "CHS".
(1) Other decreases in goodwill were due to the translation difference in foreign currency
statements arising from changes i n exchange rates.
(2) The goodwill impairment test process, parameters, and recognition methods of goodwill
impairment loss
① Goodwill recognized for the acquisition of HBA
A. Identification and definition of asset group combinations
The composition of an asset group combination was determined after excluding the carrying
value of excess assets, non-operating assets and liabilities, and interest-bearing liabilities according
238
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
to the carrying value by the standard of financial statements.
B. The process, methods and conclusion of the goodwill impairment test
The recoverable amount of goodwill was determined by the present value of forecast future
cash flows of asset group combinations. The future cash flows were forecast based on the five -year
financial budget of the above asset groups approved by the management, and the perpetual cash
flows after five years were determined at the level of the last year of the detailed forecast period.
The discount rate used to calculate the present value was 15.48%, which was the pre-tax discount
rate that reflected the specific risk of the relevant asset group combination. Other critical
assumptions used to forecast the cash flows of asset group combinations included operating
revenue, cost of sales, growth rate and relevant expenses. The above assumptions were based on the
Company's operating performance, growth rate and industry position in previous years and the
management's expectations for market development.
According to the goodwill impairment test process, the goodwill recognized for the acquisition
of HBA did not require any impairment provision as of 31 December 2020.
② Goodwill recognized for the acquisition of CHS
A. Identification and definition of asset group combinations
The composition of an asset group combination was determined after excluding the carrying
value of excess assets, non-operating assets and liabilities, and interest-bearing liabilities according
to the carrying value by the standard of financial statements.
B. The process, methods and conclusion of the goodwill impairment test
The recoverable amount of goodwill was determined by the present value of forecast future
cash flows of asset group combinations. The future cash flows were forecast based on the five -year
financial budget of the above asset groups approved by the management, and the perpetual cash
flows after five years were determined at the level of the last year of the detailed forecast period.
The discount rate used to calculate the present value was 14.90%, which was the pre-tax discount
rate that reflected the specific risk of the relevant asset group combination. Other critical
assumptions used to forecast the cash flows of asset group combinations included operating
revenue, cost of sales, growth rate and relevant expenses. The above assumptions were based on the
Company's operating performance, growth rate and industry position in previous years and the
management's expectations for market development.
According to the goodwill impairment test process, the goodwill recognized for the acquisition
of CHS did not require any impairment provision as of 31 December 2020.
③ Goodwill recognized for the acquisition of Archi-Feeling Design
A. Identification and definition of asset groups
The composition of an asset group was determined after excluding the carrying value of excess
assets, non-operating assets and liabilities, and interest-bearing liabilities according to the carrying
value by the standard of financial statements.
B. The process, methods and conclusion of the goodwill impairment test
The recoverable amount of goodwill was determined by the present value of forecast future
cash flows of asset groups. The future cash flows were forecast based on the five-year financial
239
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
budget of the above asset groups approved by the management, and the perpetual cash flows after
five years were determined at the level of the last year of the detailed forecast period. The discount
rate used to calculate the present value was 16.79%, which was the pre-tax discount rate that
reflected the specific risk of the relevant asset group combination. Other critical assumptions used
to forecast the cash flows of asset groups included operating revenue, cost of sales, growth rate and
relevant expenses. The above assumptions were based on the Company's operating performance,
growth rate and industry status in previous years and the management's expectations for market
development.
According to the goodwill impairment test process, the goodwill recognized for the acquisition
of Archi-Feeling Design did not require any impairment provision as of 31 December 2020.
Impact of the goodwill impairment test
Other information:
29. Long-term Prepaid Expense
Unit: RMB
Increase in the Amortization in the
Item Opening balance Other decreases Closing balance
current period current period
Decoration expense 157,443,245.55 7,850,423.92 60,823,876.16 54,565,438.99 49,904,354.32
Total 157,443,245.55 7,850,423.92 60,823,876.16 54,565,438.99 49,904,354.32
Other information:
(1) Other decreases were primarily driven by the disposal of certain “Gold Mantis Home”
subsidiaries.
(2) Long-term prepaid expense declined 68.30% as at 31 December 2020 compared to 31
December 2019, primarily driven by a larger amount of amortization and the disposal of certain
“Gold Mantis Home” subsidiaries in the current period.
30. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets before Offsetting
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Asset impairment
465,490,701.04 70,831,251.69
allowances
Deductible losses 105,430,566.80 21,817,702.30
Credit impairment
2,220,344,202.71 337,359,385.19 2,352,465,106.39 356,509,412.91
allowances
240
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Share-based payments 65,283,144.96 9,792,471.74 91,146,125.00 13,671,918.75
Changes in the fair value
of other non-current 64,000,000.00 9,600,000.00 64,000,000.00 9,600,000.00
financial assets
Employee benefits
62,158,308.41 10,566,912.43 60,980,195.29 10,366,633.20
payable
Impairment allowances
610,987.16 91,648.07 610,987.16 91,648.07
for fixed assets
Total 2,877,887,344.28 438,241,669.12 2,674,632,980.64 412,057,315.23
(2) Deferred Income Tax Liabilities before Offsetting
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences liabilities differences liabilities
Incurred by the
depreciation of fixed
12,377,183.94 2,104,121.27 11,120,885.99 1,890,550.20
assets of overseas
subsidiaries
Federal breaks of state
8,789,424.12 1,494,202.10 2,001,968.76 340,334.69
taxes in the U.S.
Changes in the fair value
of held-for-trading 3,486,741.05 565,295.04 4,210,654.74 700,453.46
financial assets
Total 24,653,349.11 4,163,618.41 17,333,509.49 2,931,338.35
(3) Net Balances of Deferred Income Tax Assets/Liabilities after Offsetting
Unit: RMB
Offset amount between Closing balance of Offset amount between Opening balance of
deferred income tax deferred income tax deferred income tax deferred income tax
Item
assets and liabilities as at assets or liabilities after assets and liabilities as at assets or liabilities after
the period-end offsetting the period-begin offsetting
Deferred income tax
438,241,669.12 412,057,315.23
assets
Deferred income tax
4,163,618.41 2,931,338.35
liabilities
241
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
(4) Breakdown of Deferred Income Tax Assets Unrecognized
Unit: RMB
Item Closing balance Opening balance
Deductible losses 262,865,271.34 325,504,325.38
Credit impairment allowances 20,188,166.98 39,129,470.74
Asset impairment allowances 3,726,480.71
Inventory valuation allowances 591,588.71 221,541.68
Impairment allowances for fixed assets 8,097.49 8,097.49
Total 287,379,605.23 364,863,435.29
(5) Deductible losses on which deferred income tax assets were unrecognized will expire in the following
years:
Unit: RMB
Year Closing amount Opening amount Remark
2020 5,253,936.63
2021 1,475,132.07 1,475,132.07
2022 35,282,566.54 70,565,133.07
2023 26,816,496.47 53,632,992.93
2024 97,288,565.34 194,577,130.68
2025 102,002,510.92
Total 262,865,271.34 325,504,325.38 --
Other information:
(1) Deferred income tax liabilities rose 42.04% as at 31 December 2020 compared to 1 January
2020, primarily driven by a larger amount of taxable temporary differences incurred by overseas
subsidiaries.
31. Other Non-current Assets
Unit: RMB
Closing balance Opening balance
Item Impairment Carrying Impairment Carrying
Gross amount Gross amount
allowance amount allowance amount
268,329,840. 268,329,840. 193,055,970. 193,055,970.
Prepayments for properties
24 24 41 41
11,105,379.8 11,105,379.8
Cash surrender value of life insurance 8,706,297.60 8,706,297.60
0 0
242
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
279,435,220. 279,435,220. 201,762,268. 201,762,268.
Total
04 04 01 01
Other information:
(1) Cash surrender value of life insurance referred to the cash amount receivable from the
insurance company on the assumption that HBA, a subsidiary of Singapore Gold Mantis, ceased to
provide life insurance for certain key management personnel on 31 December 2020. The company
did not plan to cease to provide such life insurance for the near future.
(2) Other non-current assets rose 38.50% as at 31 December 2020 compared to 1 January 2020,
primarily driven by an increase in prepayments for properties in the current period.
32. Short-term Borrowings
(1) Short-term Borrowings by Type
Unit: RMB
Item Closing balance Opening balance
Credit borrowings 150,000,000.00
Guaranteed borrowings 515,747,000.00 353,286,000.00
Factored accounts receivable 103,990,224.42 305,317,494.85
Discounted trade acceptance notes 94,159,267.99 65,848,180.26
Accrued interest 466,680.44 1,239,453.64
Total 714,363,172.85 875,691,128.75
Notes:
(1) Of the balance of guaranteed borrowings as at the period-end, the Company provided
guarantees for loans of USD30,000,000.00 (equivalent to RMB195,747,000.00) from banks to
Singapore Gold Mantis, loans of RMB250,000,000.00 from banks to Meiruide, and loans of
RMB70,000,000.00 from banks to Gold Mantis Supply Chain.
(2) There were no overdue short-term borrowings in the closing balance.
(2) Overdue Short-term Borrowings
Overdue short-term borrowings amounted to RMB as at the period-end, with substantial ones as follows:
Unit: RMB
Interest rate for overdue
Lender Closing balance Lending rate Overdue time
amount
Other information:
33. Held-for-trading Financial Liabilities
Unit: RMB
243
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Item Closing balance Opening balance
Of which:
Of which:
Other information:
34. Derivative Financial Liabilities
Unit: RMB
Item Closing balance Opening balance
Other information:
35. Notes Payable
Unit: RMB
Type Closing balance Opening balance
Trade acceptance notes 354,853,516.29 254,533,804.30
Bank acceptance notes 4,322,815,789.95 4,291,747,256.62
Accounts payable financing 193,553,381.44 56,239,416.00
Total 4,871,222,687.68 4,602,520,476.92
Overdue notes payable amounted to RMB0.00 as at the period-end.
36. Accounts Payable
(1) Breakdown of Accounts Payable
Unit: RMB
Item Closing balance Opening balance
Payables for materials 14,614,508,048.63 11,447,745,261.06
Payables for labor services 2,388,948,158.11 1,798,077,521.46
Payables for engineering equipment 39,589,683.07 29,686,016.12
Other payables 3,861,018.69 4,260,700.49
Total 17,046,906,908.50 13,279,769,499.13
(2) Substantial Accounts Payable Over 1 Year
Unit: RMB
Item Closing balance Reason for unsettlement or carryforward
Other information:
244
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
37. Advances from Customers
(1) Breakdown of Advances from Customers
Unit: RMB
Item Closing balance Opening balance
Engineering advances from customers
Design advances from customers
(2) Substantial Advances from Customers Over 1 Year
Unit: RMB
Item Closing balance Reason for unsettlement or carryforward
38. Contract Liabilities
Unit: RMB
Item Closing balance Opening balance
Engineering advances from customers 644,164,113.54 649,488,709.66
Design advances from customers 169,582,138.15 247,340,262.19
Others 4,597,303.11
Total 818,343,554.80 896,828,971.85
Significant changes in the carrying amounts in the current period and the reasons:
Unit: RMB
Item Amount of change Reason for change
39. Employee Benefits Payable
(1) Breakdown of Employee Benefits Payable
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
I Short-term
1,735,803,281.89 2,963,505,126.85 3,016,217,906.03 1,683,090,502.71
remuneration
II After-service
benefits-defined 12,270,451.07 68,373,091.20 62,964,903.75 17,678,638.52
contribution scheme
Total 1,748,073,732.96 3,031,878,218.05 3,079,182,809.78 1,700,769,141.23
245
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
(2) Breakdown of Short-term Remuneration
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
1. Salaries, bonuses,
1,732,551,863.76 2,822,429,969.21 2,873,821,710.22 1,681,160,122.75
allowances and subsidies
2. Staff welfare 72,472,984.06 72,472,984.06
3. Social security
1,652,783.46 24,659,372.04 25,344,696.50 967,459.00
contributions
Including: Medical
1,259,124.46 18,896,867.24 19,592,521.07 563,470.63
insurance
Work injury
47,612.90 1,856,750.69 1,874,304.68 30,058.91
insurance
Maternity
346,046.10 3,905,754.11 3,877,870.75 373,929.46
insurance
4. Housing funds 140,977.56 42,515,439.95 42,526,195.91 130,221.60
5. Labor union funds and
employee education 1,457,657.11 1,427,361.59 2,052,319.34 832,699.36
funds
Total 1,735,803,281.89 2,963,505,126.85 3,016,217,906.03 1,683,090,502.71
(3) Breakdown of Defined Contribution Schemes
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
1. Basic pension
12,197,065.93 65,933,707.54 60,615,994.30 17,514,779.17
insurance
2. Unemployment
73,385.14 2,439,383.66 2,348,909.45 163,859.35
insurance
Total 12,270,451.07 68,373,091.20 62,964,903.75 17,678,638.52
Other information:
40. Taxes and Levies Payable
Unit: RMB
Item Closing balance Opening balance
Value added tax 80,101,991.57 73,136,588.85
246
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Corporate income tax 116,867,138.78 157,429,281.38
Individual income tax 15,331,133.62 12,322,683.19
Property tax 1,763,657.75 2,554,114.91
Others 2,911,955.61 11,163,930.55
Total 216,975,877.33 256,606,598.88
Other information:
41. Other Payables
Unit: RMB
Item Closing balance Opening balance
Dividends payable 10,574,000.00 6,620,000.00
Other payables 288,908,436.62 587,327,128.96
Total 299,482,436.62 593,947,128.96
(1) Interest payable
Unit: RMB
Item Closing balance Opening balance
Substantial overdue interest payable:
Unit: RMB
Lender Overdue amount Reason
Other information:
(2) Dividends Payable
Unit: RMB
Item Closing balance Opening balance
Dividends for ordinary shareholders 10,574,000.00 6,620,000.00
Total 10,574,000.00 6,620,000.00
Other information: If there is any substantial dividend payable over 1 year, the reason should be disclosed.
(3) Other Payables
1) Other Payables by Nature
Unit: RMB
Item Closing balance Opening balance
247
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Restricted share repurchase obligations 121,595,650.00 132,069,000.00
Security deposits 107,158,502.19 78,173,578.47
Current payables to external entities 43,329,326.46 38,947,180.78
Payables for equity transfer 530,000.00 1,155,000.00
Temporary receipts 310,039,938.59
Contributions for restricted shares 15,793,500.00
Others 16,294,957.97 11,148,931.12
Total 288,908,436.62 587,327,128.96
2) Substantial Other Payables Over 1 Year
Unit: RMB
Item Closing balance Reason for unsettlement or carryforward
Other information:
(1) Other payables declined 49.58% as at 31 December 2020 compared to 1 January 2020,
primarily driven by a larger amount of temporary receipts repaid in the current period.
42. Liabilities Directly Associated with Assets Held for Sale
Unit: RMB
Item Closing balance Opening balance
Other information:
43. Current Portion of Non-current Liabilities
Unit: RMB
Item Closing balance Opening balance
Current portion of long-term borrowings 51,000,000.00 22,000,000.00
Accrued interest 83,934.28
Total 51,083,934.28 22,000,000.00
Other information:
(1) Of the loans secured with pledge in the total amount of RMB207.1522 million received by
the Company’s controlled subsidiary Xi’an Jinchuang from the Xi’an High-tech Development Zone
sub-branch of the Bank of China, RMB11 million will expire in May 2021 and another RMB11
million in November 2021. Of the loans secured with pledge in the total amount of RMB708.2366
million received by the Company’s controlled subsidiary Shuicheng Ruitong from the Shuicheng
sub-branch of the Agricultural Development Bank of China, RMB29 million will expire in
248
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
December 2021.
(2) Current portion of non-current liabilities rose 132.20% as at as at 31 December 2020
compared to 1 January 2020, primarily driven by a larger amount of long-term borrowings due in
2021.
44. Other Current Liabilities
Unit: RMB
Item Closing balance Opening balance
Output tax to be transferred 1,292,998,919.56 1,096,595,399.65
Loss contracts to be executed 4,750,127.20 11,120,062.80
Total 1,297,749,046.76 1,107,715,462.45
Changes in short-term bonds payable:
Unit: RMB
Interest Amortizat
Issued in Repaid in
accrued ion of
Bond Nominal Date of Issued Opening the the Closing
Term based on premium
name value issue amount balance current current balance
nominal or
period period
value discount
Other information:
(1) The Company established allowances for the anticipated losses on outstanding contracts.
Such losses were mainly composed of the portion of the labor and other costs that would be
incurred by the anticipated completion of these contracts and exceed the anticipated benefits. The
Company cannot seek any compensation from any third party for these losses. The Company
anticipated that due to the completion of the project, the anticipated losses of all accrued contracts
would be reversed within the next 12 months, so other current liabilities were listed as the
provisions arising from the onerous contracts to be executed.
45. Long-term Borrowings
(1) Long-term Borrowings by Type
Unit: RMB
Item Closing balance Opening balance
Borrowings secured with pledge 835,388,800.00 837,152,200.00
Accrued interest 1,529,553.34 1,409,522.30
Total 836,918,353.34 838,561,722.30
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Notes:
Other information, including the range of interest rates
(1) Breakdown of Long-term Borrowings
Lender Start date End date Currency Interest 31 December 31 December
rate (%) 2020 2019
Shuicheng 2019/6/26 2033/6/19 RMB 6.37 251,000,000.00 280,000,000.00
sub-branch of the
Agricultural
Development Bank
of China
Shuicheng 2019/7/26 2033/6/19 RMB 6.37 200,000,000.00 200,000,000.00
sub-branch of the
Agricultural
Development Bank
of China
Shuicheng 2019/10/30 2033/6/19 RMB 6.37 150,000,000.00 150,000,000.00
sub-branch of the
Agricultural
Development Bank
of China
Xi’an High-tech 2017/11/28 2028/11/29 RMB 4.90 82,032,000.00 94,000,000.00
Development Zone
sub-branch of the
Bank of China
Xi’an High-tech 2017/11/29 2028/11/28 RMB 4.90 58,368,000.00 64,000,000.00
Development Zone
sub-branch of the
Bank of China
Shuicheng 2020/1/2 2033/6/19 RMB 6.37 39,236,600.00 —
sub-branch of the
Agricultural
Development Bank
of China
Xi’an High-tech 2018/11/29 2028/11/28 RMB 5.39 30,431,496.00 33,423,496.00
Development Zone
sub-branch of the
Bank of China
Xi’an High-tech 2018/11/30 2028/11/28 RMB 5.39 14,320,704.00 15,728,704.00
Development Zone
sub-branch of the
Bank of China
Shuicheng 2020/4/21 2033/6/19 RMB 6.37 10,000,000.00 —
sub-branch of the
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Agricultural
Development Bank
of China
Total 835,388,800.00 837,152,200.00
(2) Shuicheng Ruitong, a majority-owned subsidiary of the Company, obtained a pledged loan
of RMB679,236,600.00 (wherein, RMB29.00 million was included in the long-term borrowings
due within one year) from Shuicheng County Sub-branch of Agricultural Development Bank of
China. This loan was pledged with the income from feasibility gap subsidies receivable by
Shuicheng Ruitong under the PPP Project (Phase II) Contract for Comprehensive Improvement of
Rural Human Settlements in Shuicheng County and was guaranteed by Suzhou Gold Mantis
Enterprise (Group) Co., Ltd.
(3) Xi'an Jinchuang, a majority-owned subsidiary of the Company, obtained a pledged loan of
RMB207,152,200.00 (wherein, RMB22.00 million was included in the long-term borrowings due
within one year) from Xi'an High-tech Development Zone Sub-branch of Bank of China Limited.
This loan was pledged with the expected returns under the PPP Project Contract for the Xi'an
Entrepreneurial Coffee Characteristic Street Reconstruction and Construction.
46. Bonds Payable
(1) Bonds Payable
Unit: RMB
Item Closing balance Opening balance
(2) Changes in Bonds Payable (Exclusive of Preference Shares, Perpetual Bonds and Other Financial
Instruments Classified as Financial Liabilities)
Unit: RMB
Interest Amortizat
Issued in Repaid in
accrued ion of
Bond Nominal Date of Issued Opening the the Closing
Term based on premium
name value issue amount balance current current balance
nominal or
period period
value discount
Total -- -- --
(3) Conditions and Time for Conversion of Convertible Corporate Bonds to Shares
(4) Other Financial Instruments Classified as Financial Liabilities
Basic information about issued and outstanding preference shares, perpetual bonds and other financial instruments as at the
251
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
period-end:
Changes in issued and outstanding preference shares, perpetual bonds and other financial instruments as at the period-end:
Unit: RMB
Issued and Increase in the current Decrease in the current
Period-begin Period-end
outstanding period period
financial Carrying Carrying Carrying Carrying
Number Number Number Number
instruments amount amount amount amount
Basis for the classification of other financial instruments as financial liabilities:
Other information:
47. Lease Liabilities
Unit: RMB
Item Closing balance Opening balance
Other information:
48. Long-term Payables
Unit: RMB
Item Closing balance Opening balance
(1) Long-term Payables by Nature
Unit: RMB
Item Closing balance Opening balance
Other information:
(2) Specific Payables
Unit: RMB
Increase in the Decrease in the Reason for specific
Item Opening balance Closing balance
current period current period payable
Other information:
49. Long-term Employee Benefits Payable
(1) Long-term Employee Benefits Payable
Unit: RMB
Item Closing balance Opening balance
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Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
(2) Changes in Defined Benefit Schemes
Present value of defined benefit schemes:
Unit: RMB
Item Amount incurred in the current period Amount incurred last year
Scheme assets:
Unit: RMB
Item Amount incurred in the current period Amount incurred last year
Net liabilities (net assets) of defined benefit schemes:
Unit: RMB
Item Amount incurred in the current period Amount incurred last year
Contents, risks, as well as effects on the Company’s future cash flows, time and uncertainty with respect to defined benef it schemes:
Substantial actuarial assumptions and sensitivity analysis of defined benefit schemes:
Other information:
50. Provisions
Unit: RMB
Item Closing balance Opening balance Reason for provision
Other information, including substantial assumptions and estimates with respect to significant provisions:
51. Deferred Income
Unit: RMB
Increase in the Decrease in the Reason for deferred
Item Opening balance Closing balance
current period current period income
Deferred income associated with government grants:
Unit: RMB
Amount
Amount Amount
New recognized
recognized offsetting
government in Related to
Opening in other costs and Other
Liabilities grants in the non-operatin Closing balance assets/incom
balance income in expenses in changes
current g income in e
the current the current
period the current
period period
period
Other information:
52. Other Non-current Liabilities
Unit: RMB
253
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Item Closing balance Opening balance
Other information:
53. Share Capital
Unit: RMB
Increase/decrease in the current period
Shares as Shares as
Opening Closing
dividend dividend
balance New issues Others Subtotal balance
converted from converted from
profit capital reserves
Total share 2,676,408,689. 2,683,358,689.
8,000,000.00 -1,050,000.00 6,950,000.00
capital 00 00
Other information:
In January 2020, in accordance with the Proposal on the Company's Restricted Share Incentive
Scheme in 2018 (Draft) and its Summary reviewed and approved at the 1st Extraordinary General
Meeting of the Company in 2018 and the resolution of the 1st Extraordinary Meeting of the 6th Board
of Directors, restricted shares were granted to 14 restricted share incentive objects, including Wang
Zhenlong and Gao Hongqiang, increasing its registered capital by RMB8.00 million to
RMB2,684,408,689.
In May 2020, in accordance with the resolution of the 2019 Annual General Meeting and the
Proposal on the Repo and Cancellation of Part of Restricted Shares of the Company which were
reviewed and approved at the 5th Meeting of the 6th Board of Directors in 2020, as Yang Peng and
Xie Jinan, the original incentive objects, had left the Company, the Company repurchased and
canceled 1,050,000 restricted shares granted to them but not yet unlocked, reducing its registered
capital by RMB1,050,000. After the completion of the repurchase and cancellation, its registered
capital was changed to RMB2,683,358,689.
54. Other Equity Instruments
(1) Basic Information about Issued and Outstanding Preference Shares, Perpetual Bonds and Other
Financial Instruments as at the Period-end
(2) Changes in Issued and Outstanding Preference Shares, Perpetual Bonds and Other Financial
Instruments as at the Period-end
Unit: RMB
Issued and Increase in the current Decrease in the current
Period-begin Period-end
outstanding period period
financial Number Carrying Number Carrying Number Carrying Number Carrying
254
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
instruments amount amount amount amount
Changes in other equity instruments in the current period, reasons for changes, and basis for the relevant accounting treatments:
Other information:
55. Capital Reserves
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
Capital surplus (share
257,708,926.09 67,148,800.00 324,857,726.09
capital surplus)
Other capital reserves 84,466,463.78 5,623,192.92 46,224,066.59 43,865,590.11
Total 342,175,389.87 72,771,992.92 46,224,066.59 368,723,316.20
Other information, including changes in the current period and reasons for changes:
(1) In January 2020, in accordance with the Proposal on the Company's 2018 Restricted Share
Incentive Scheme (Draft) and Its Summary deliberated and approved at the Company's 1st
Extraordinary General Meeting of 2018 and the resolution of the 1st Extraordinary Meeting of the
6th Board of Directors, the Company granted restricted shares to 14 restricted share incentive
objects, including Wang Zhenlong and Gao Hongqiang, and increased its registered capital by
RMB8.00 million. The issue price per share was RMB4.01, and the total amount of funds raised
was RMB32.08 million, of which RMB8.00 million were included in share capital and RMB24.08
million were included in capital reserves.
(2) RMB43,068,800.00 of other capital reserves accrued from the restricted shares lifted in the
first phase were transferred to the share capital premium from other capital reserves.
(3) The increase in other capital reserves was due to the share-based payment expense of
RMB3,579,199.92 recognized by the Employee Stock Ownership Plan and the deferred income tax
assets of RMB2,043,993.00 recognized in deductible temporary differences.
(4) In May 2020, in accordance with the resolution of the Company's 2019 Annual General
Meeting and the Proposal on Repurchase and Cancellation of Some Restricted Shares deliberated
and approved at the 5th Meeting of the 6th Board of Directors of 2020, Yang Peng and Xie Jinjun,
the original incentive objects, had left the Company, and the Company repurchased and canceled
1,050,000.00 restricted shares granted to them but not yet unlocked, decreasing other capital
reserves by RMB3,139,500.00 accordingly. Other capital reserves were reduced by RMB15,766.59
through acquiring the equity of minority shareholders of Jindejin Construction in 2020.
56. Treasury Shares
Unit: RMB
Item Opening balance Increase in the current Decrease in the current Closing balance
255
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
period period
Restricted share
132,069,000.00 32,080,000.00 42,553,350.00 121,595,650.00
repurchase obligations
Total 132,069,000.00 32,080,000.00 42,553,350.00 121,595,650.00
Other information, including changes in the current period and reasons for changes:
The increase in treasury shares for the current period was due to the Company's confirmation
of its obligation to repurchase the restricted shares granted to 14 restricted share incentive objects,
including Wang Zhenlong and Gao Hongqiang, in accordance with the Proposal on the Company's
2018 Restricted Share Incentive Scheme (Draft) and Its Summary deliberated and approved at the
Company's 1st Extraordinary General Meeting of 2018 and the resolution of the 1st Extraordinary
Meeting of the 6th Board of Directors.
The reasons for the decrease in treasury shares for the current period are as follows: a) The
number of restricted shares unlocked this time was 9,615,000.00 in accordance w ith the resolution
of the Company's 2019 Annual General Meeting and the Proposal on the Achievement of Lifting
the Restriction Conditions in the First Lifting Restriction Period for the First Grant Portion of the
2018 Restricted Share Incentive Scheme; b) In accordance with the resolution of the Company's
2019 Annual General Meeting and the Proposal on Repurchase and Cancellation of Some
Restricted Shares deliberated and approved at the 5th Meeting of the 6th Board of Directors of
2020, Yang Peng and Xie Jinjun, the original incentive objects, had left the Company and did not
meet the incentive conditions, so the Company repurchased and canceled 1,050,000.00 restricted
shares granted to them but not yet unlocked according to the relevant provisions of the Co mpany's
share incentive scheme.
57. Other Comprehensive Income
Unit: RMB
Amount generated in the current period
Less:
amount
Less: amount previously
Amount previously recognized After-tax After-tax
before recognized in in other amount amount
Less:
Opening income tax other comprehe attributabl attributabl Closing
Item Income
balance generated comprehensi nsive e to the e to balance
tax
in the ve income income Company non-contro
expense
current and currently and as the lling
period transferred to currently parent interests
profit or loss transferred
to retained
earnings
256
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
II Other comprehensive income
57,504,092. -67,210,47 -64,966,66 -2,243,804 -7,462,5
that will be reclassified to profit or
23 2.64 7.89 .75 75.66
loss
Differences arising from
the translation of foreign 57,504,092. -67,210,47 -64,966,66 -2,243,804 -7,462,5
currency-denominated financial 23 2.64 7.89 .75 75.66
statements
57,504,092. -67,210,47 -64,966,66 -2,243,804 -7,462,5
Total other comprehensive income
23 2.64 7.89 .75 75.66
Other information, including adjustments to the initially recognized amounts of hedged items transferred from the effective
gains/losses on cash flow hedges:
58. Specific Reserve
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
Other information, including changes in the current period and reasons for changes:
59. Surplus Reserves
Unit: RMB
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
Statutory surplus
1,360,046,645.33 1,360,046,645.33
reserves
Reserve funds 256,728.58 256,728.58
Enterprise development
128,364.29 128,364.29
funds
Total 1,360,431,738.20 1,360,431,738.20
Notes to surplus reserves, including changes in the current period and reasons for changes:
Pursuant to the Company Law and the Company’s Articles of Association, the Company may
cease to set aside staturoy surplus reserves when the amount reaches 50% of the registered capital.
Therefore, no statutory surplus reserves were set aside in the current period.
60. Retained Earnings
Unit: RMB
Item Current period Last year
257
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Retained earnings as at the end of the prior year
10,853,403,316.80 9,236,765,808.55
before adjustment
Adjustment to opening retained earnings (“+” for
34,339,607.55
increase, “-” for decrease)
Opening retained earnings after adjustment 10,887,742,924.35 9,236,765,808.55
Add: Net profit attributable to owners of the
2,373,915,319.52 2,349,395,605.96
Company as the parent in the current period
Less: Statutory surplus reserves set aside 197,476,359.91
Dividends payable to ordinary shareholders 536,461,737.80 535,281,737.80
Closing retained earnings 12,725,196,506.07 10,853,403,316.80
Details about the adjustments to the opening retained earnings:
1) Retrospective adjustments according to the new provisions of China’s Accounting Standards for Business Enterprises had an effect
of RMB on the opening retained earnings.
2) Changes in the accounting policies had an effect of RMB34,339,607.55 on the opening retained earnings.
3) Correction of significant accounting errors had an effect of RMB on the opening retained earnings.
4) Changes in the scope of the consolidated financial statements as a result of business combinations involving entities unde r
common control had an effect of RMB on the opening retained earnings.
5) All the other adjustments had an effect of RMB on the opening retained earnings.
61. Operating Revenue and Cost of Sales
Unit: RMB
Current period Last year
Item
Revenue Costs Revenue Costs
Core businesses 31,167,971,029.28 26,041,232,110.79 30,792,922,689.83 25,157,121,471.54
Other businesses 75,256,772.76 17,203,032.44 41,731,840.47 7,671,146.11
Total 31,243,227,802.04 26,058,435,143.23 30,834,654,530.30 25,164,792,617.65
Indicate whether the lower of the audited net profit before and after exceptional gains and losses was negative.
□ Yes √ No
Revenue information:
Unit: RMB
By contract category Segment 1 Segment 2 Total
Of which:
Of which:
Of which:
Of which:
Of which:
258
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Of which:
Of which:
Revenue recognized at a
445,618,706.74
point of time
Of which: sale of
397,248,440.45
materials
Other businesses 48,370,266.29
Revenue recognized in a
30,797,609,095.30
period of time
Of which: construction
30,770,722,588.83
decoration services
Other businesses 26,886,506.47
Total 31,243,227,802.04
Information related to performance obligations:
(1) Description of performance obligations
The Company was mainly engaged in providing customers with construction decoration
services and sales of commodities. For construction decoration services, the time of performance
obligations was basically consistent with the completion schedule of relevant construction
decoration projects; for sales of commodities, the Company fulfilled its performance obligations
when a customer obtained control of the relevant commodities.
(2) Information related to residual performance obligations
The transaction price allocated by the Company to outstanding performance obligations was
RMB27,619.00 million.
Information related to the transaction price allocated to residual performance obligations:
At the end of the Reporting Period, the amount of income corresponding to performance obligations that had been contracted but not
yet performed or fulfilled was RMB27,618,801,181.67, of which RMB was expected to be recognized in year , RMB
was expected to be recognized in year , and RMB was expected to be recognized in year .
Other information:
(1) Top Five Customers with Respect to Operating Revenue
Customer Operating revenue generated from As a % of the total operating
the customer revenue
Customer 1 6,835,504,535.80 21.88
Customer 2 1,108,396,916.19 3.55
Customer 3 344,326,369.83 1.10
Customer 4 262,020,032.31 0.84
259
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Customer 5 218,894,281.29 0.70
Total 8,769,142,135.42 28.07
62. Taxes and Levies
Unit: RMB
Item Current period Last year
Urban construction and maintenance tax 55,855,981.52 46,319,546.93
Education surcharges 41,519,006.73 34,598,184.77
Property tax 8,502,794.69 10,285,422.97
Others 2,300,729.28 3,403,046.52
Total 108,178,512.22 94,606,201.19
Other information:
63. Selling Expense
Unit: RMB
Item Current period Last year
Employee remunerations 294,401,884.28 477,450,034.19
Advertising expense 21,122,989.52 79,284,371.75
Office expense 15,176,281.47 19,874,241.29
Engineering and maintenance expense 13,474,157.01 5,375,199.45
Rental expense 12,018,057.83 14,074,034.11
Travel expense 7,409,577.77 25,525,116.67
Business entertainment expense 4,723,641.82 13,913,412.42
Warehouse management expense 5,316,033.23 9,393,363.80
Others 2,321,878.37 5,904,412.06
Total 375,964,501.30 650,794,185.74
Other information:
Selling expense declined 42.23% in 2020 compared to 2019, primarily driven by decreases in
the remuneration of sales staff and advertising expense as a result of the disposal of “Gold Mantis
Home” subsidiaries in the current period.
64. Administrative Expense
Unit: RMB
260
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Item Current period Last year
Employee remunerations 372,598,225.30 554,760,128.43
Depreciation and amortization 96,738,585.25 96,803,408.08
Office expense 54,265,803.69 96,067,570.13
Rental expense 35,355,434.42 101,104,062.39
Professional service charges 17,910,468.81 17,579,509.98
Travel expense 7,375,073.69 21,627,518.85
Expense related to announcements
4,912,248.79 3,506,486.74
disclosed as a listed company
Business entertainment expense 3,775,927.56 5,309,900.30
Share-based payments 3,579,199.92 83,287,700.04
Others 8,335,121.04 21,739,085.55
Total 604,846,088.47 1,001,785,370.49
Other information:
Administrative expense declined 39.62% in 2020 compared to 2019, primarily driven by
decreases in salaries of management personnel and rental expense as a result of the disposal of
“Gold Mantis Home” subsidiaries, as well as a decrease in share-based payments due to the exercise
conditions for the second equity incentive plan not being satisfied, in the current period.
65. R&D Expense
Unit: RMB
Item Current period Last year
Employee remunerations 495,211,608.31 449,251,541.77
Material expense 405,454,506.46 360,167,890.71
Depreciation and amortization 13,029,926.57 8,838,063.56
Other expense 42,086,292.84 61,608,627.46
Total 955,782,334.18 879,866,123.50
Other information:
66. Finance Costs
Unit: RMB
Item Current period Last year
Interest expense 145,524,591.79 142,341,566.80
Less: Interest income 41,474,553.83 26,670,537.36
261
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Net interest expense 104,050,037.96 115,671,029.44
Exchange loss 12,175,656.00 17,055,789.03
Less: Exchange gain 1,746,689.18 8,837,316.53
Net exchange loss 10,428,966.82 8,218,472.50
Bank service charges 16,687,064.12 10,997,277.41
Total 131,166,068.90 134,886,779.35
Other information:
67. Other Income
Unit: RMB
Source of other income Current period Last year
I Government grants recognized in other
51,537,845.33 18,708,430.13
income
Of which: Government grants related to
120,000.00
deferred income (related to income)
Government grants directly recognized in
51,537,845.33 18,588,430.13
profit or loss (related to income)
II Other items related to routine operations
3,146,250.49 951,654.81
and recognized in other income
Of which: income of service charges for
individual income tax withholding and 2,705,907.39 726,275.35
payment
Over-deduction in the calculation of the
taxable amount with respect to the input 440,343.10 225,379.46
tax
Total 54,684,095.82 19,660,084.94
68. Return on Investment
Unit: RMB
Item Current period Last year
Return on long-term equity investments
-9,556,696.62 -6,162,676.00
measured using the equity method
Income from the disposal of long-term equity
17,214,943.35 -24,693,657.12
investments
Income from the disposal of held-for-trading
35,183,316.32 40,843,523.94
financial assets
262
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Income derived during the period of holding
887,120.46 4,367,000.00
other non-current financial assets
Interest expense on discounted receivables
-6,080,300.20 -4,929,353.47
financing
Income from the disposal of other non-current
23,774,839.16
financial assets
Total 37,648,383.31 33,199,676.51
Other information:
69. Net Gain on Exposure Hedges
Unit: RMB
Item Current period Last year
Other information:
70. Gain on Changes in Fair Value
Unit: RMB
Source of gain on changes in fair value Current period Last year
Held-for-trading financial assets -723,913.69 4,210,654.74
Other non-current financial assets -64,000,000.00
Total -723,913.69 -59,789,345.26
Other information:
Gain on changes in fair value rose significantly in 2020 compared to 2019, primarily driven by
a larger loss on changes in the fair value of other non-current financial assets in last year.
71. Credit Impairment Loss
Unit: RMB
Item Current period Last year
Loss on uncollectible other receivables -3,601,882.53 -8,043,363.13
Loss on uncollectible long-term
-902,874.64 -14,531,680.93
receivables
Loss on uncollectible notes receivable -136,199,708.59 -44,096,551.18
Loss on uncollectible accounts receivable -311,064,791.60 -138,107,794.47
Loss on uncollectible current portion of -585,904.50 -316,988.07
263
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
non-current assets
Total -452,355,161.86 -205,096,377.78
Other information:
Credit impairment loss declined significantly in 2020 compared to 2019, primarily driven by a
larger amount of impairment allowances for financial assets.
72. Asset Impairment Loss
Unit: RMB
Item Current period Last year
II Inventory valuation loss and loss on
-370,047.03 -3,651.14
impairments of contract performance costs
XII Loss on impairments of contract assets 66,443,131.80
Total 66,073,084.77 -3,651.14
Other information:
Asset impairment loss rose significantly in 2020 compared to 2019, primarily driven by a
decrease in the loss on impairments of contract assets according to the new accounting standards
governing revenue.
73. Asset Disposal Income
Unit: RMB
Source of asset disposal income Current period Last year
Gains or losses on the disposal of fixed
assets, construction in progress, productive
114,042.29 -1,219,850.07
living assets and intangible assets that are
not classified as assets held for sale:
Of which: gains on the disposal of fixed
-86,876.56 -1,068,083.07
assets
Gains on the disposal of intangible assets 200,918.85 -151,767.00
Total 114,042.29 -1,219,850.07
74. Non-operating Income
Unit: RMB
Item Current period Last year Amount recognized in
264
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
exceptional gains and losses
Compensation income 2,668,000.00
Others 285,660.49 2,282,546.95 285,660.49
Total 285,660.49 4,950,546.95 285,660.49
Government grants recognized in profit or loss:
Unit: RMB
Whether the
grant turned Amount in
Government Special grant Amount in Related to
Giver Reason Nature the current the current
grant or not last year assets/income
profit to loss period
or otherwise
Other information:
(1) Non-operating income declined 94.23% in 2020 compared to 2019, primarily driven by a
larger amount of current accounts that required no payment for a long term being cleared in last
year.
75. Non-operating Expense
Unit: RMB
Amount recognized in
Item Current period Last year
exceptional gains and losses
Donations 3,020,000.00 3,002,930.00 3,020,000.00
Loss on the retirement of fixed
627,978.98 593,033.19 627,978.98
assets
Others 650,761.35 937,487.15 650,761.35
Total 4,298,740.33 4,533,450.34 4,298,740.33
Other information:
76. Income Tax Expense
(1) Income Tax Expense
Unit: RMB
Item Current period Last year
Current income tax expense 392,581,912.71 487,731,992.41
Deferred income tax expense -22,908,080.83 -53,345,670.94
Total 369,673,831.88 434,386,321.47
265
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
(2) Reconciliation between Accounting Profit and Income Tax Expense
Unit: RMB
Item Current period
Gross profit 2,710,282,604.54
Income tax expense based on the statutory/applicable tax rates 406,542,390.68
Effects of different tax rates of subsidiaries 10,153,600.55
Effects of adjustments to income tax of the prior period 412,552.31
Effects of non-deductible costs, expenses and losses 32,723,291.07
Effects of deductible temporary differences or losses on which
19,370,957.52
deferred income tax assets are unrecognized in the current period
Over-deduction in the calculation of the taxable amount in
-99,528,960.25
relation to R&D expense
Income tax expense 369,673,831.88
Other information:
77. Other comprehensive income
See Note “VII 57. Other Comprehensive Income”.
78. Items of the Cash Flow Statement
(1) Cash Generated from Other Operating Activities
Unit: RMB
Item Current period Last year
Government grants 54,243,752.72 19,314,705.48
Security deposits 38,639,283.63 12,164,458.38
Current accounts 272,932,984.67
Others 285,660.49 4,950,546.95
Total 93,168,696.84 309,362,695.48
Notes:
(2) Cash Used in Other Operating Activities
Unit: RMB
Item Current period Last year
Current accounts 300,985,139.99
Office expense 69,442,085.16 115,941,811.42
266
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Rental expense 47,373,492.25 115,178,096.50
Advertising expense 21,122,989.52 79,284,371.75
Professional service charges 17,910,468.81 17,579,509.98
Travel expense 14,784,651.46 47,152,635.52
Engineering and maintenance expense 13,474,157.01 5,375,199.45
Business entertainment expense 8,499,569.38 19,223,312.72
Warehouse management expense 5,316,033.23 9,393,363.80
Others 32,422,342.72 55,501,534.83
Total 531,330,929.53 464,629,835.97
Notes:
(3) Cash Generated from Other Investing Activities
Unit: RMB
Item Current period Last year
Interest income 40,803,606.39 28,232,114.75
Total 40,803,606.39 28,232,114.75
Notes:
(4) Cash Used in Other Investing Activities
Unit: RMB
Item Current period Last year
Notes:
(5) Cash Generated from Other Financing Activities
Unit: RMB
Item Current period Last year
Frozen bank deposits 8,947,438.58
Total 8,947,438.58
Notes:
(6) Cash Used in Other Financing Activities
Unit: RMB
Item Current period Last year
Frozen bank deposits 25,511,610.47
267
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Total 25,511,610.47
Notes:
79. Supplementary Information to the Cash Flow Statement
(1) Supplementary Information to the Cash Flow Statement
Unit: RMB
Supplementary information Current period Last year
1. Reconciliation of net profit to net cash
-- --
generated from/used in investing activities:
Net profit 2,340,608,772.66 2,260,704,564.72
Add: Asset impairment allowances 386,282,077.09 205,100,028.92
Depreciation of fixed assets,
depletion of oil and gas assets, and 58,820,036.99 60,985,956.45
depreciation of productive living assets
Depreciation of right-of-use assets
Amortization of intangible assets 9,996,064.73 11,453,586.40
Amortization of long-term prepaid
60,823,876.16 78,668,662.21
expense
Loss on the disposal of fixed
assets, intangible assets and other long-term -114,042.29 1,219,850.07
assets (“-” for gain)
Loss on the retirement of fixed
627,978.98 593,033.19
assets (“-” for gain)
Loss on changes in fair value (“-”
723,913.69 59,789,345.26
for gain)
Finance costs (“-” for income) 114,479,004.78 123,889,501.94
Loss on investment (“-” for
-37,648,383.31 -33,199,676.51
income)
Decrease in deferred income tax
-24,140,360.89 -54,169,370.60
assets (“-” for increase)
Increase in deferred income tax
1,232,280.06 -355,064.07
liabilities (“-” for decrease)
Decrease in inventories (“-” for
47,132,200.21 66,478,131.93
increase)
Decrease in operating receivables
-5,414,546,457.53 -5,098,334,086.39
(“-” for increase)
Increase in operating payables 4,229,259,080.91 3,989,107,819.15
268
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
(“-” for decrease)
Others 3,579,199.92 83,287,700.04
Net cash generated from/used in
1,777,115,242.16 1,755,219,982.71
operating activities
2. Significant investing and financing
activities that involve no cash proceeds or -- --
payments:
Conversion of debt to capital
Current portion of convertible corporate
bonds
Fixed assets leased in in finance leases
3. Net changes in cash and cash equivalents: -- --
Closing balance of cash 6,354,809,671.18 6,051,660,327.62
Less: Opening balance of cash 6,051,660,327.62 3,069,373,348.80
Add: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash
303,149,343.56 2,982,286,978.82
equivalents
(2) Net Cash Payments for the Acquisition of Subsidiaries in the Current Period
Unit: RMB
Amount
Of which: --
Of which: --
Of which: --
Other information:
(3) Net Cash Proceeds from the Disposal of Subsidiaries in the Current Period
Unit: RMB
Amount
Cash or cash equivalents received in the current period from the
18,588,895.83
disposal of subsidiaries in the current period
Of which: --
Of which: --
269
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Of which: --
Net cash proceeds from the disposal of subsidiaries 18,588,895.83
Other information:
(4) Breakdown of Cash and Cash Equivalents
Unit: RMB
Item Closing balance Opening balance
I Cash 6,354,809,671.18 6,051,660,327.62
Of which: Cash on hand 1,518,895.79 2,317,047.77
Bank deposits that can be readily
5,254,913,683.74 5,072,367,997.44
drawn on demand
Other monetary assets that can be
1,098,377,091.65 976,975,282.41
readily drawn on demand
III Cash and cash equivalents, end of the
6,354,809,671.18 6,051,660,327.62
period
Other information:
Cash and cash equivalents at the period-end excluded frozen bank deposits of
RMB16,564,171.89 and the accrued interest of RMB1,258,002.65, and cash and cash equivalents at
the period-begin excluded frozen bank deposits of RMB25,511,610.47 and the accrued interest of
RMB587,055.21.
80. Notes to Changes in Owners’ Equity
Items and adjusted amounts in “others” with respect to adjustments to the closing balance of last year:
81. Assets with Restricted Ownership or Rights-of-Use
Unit: RMB
Item Closing carrying amount Reason for restriction
Monetary assets 16,564,171.89 Frozen by court of law
Notes receivable 1,300,000.00 Put in pledge for notes issuing
Un-derecognized endorsed or discounted
Notes receivable 1,901,286,639.74
commercial notes
Un-derecognized factored accounts
Accounts receivable 103,990,224.42
receivable
Receivables financing 82,472,805.60 Put in pledge for notes issuing
Total 2,105,613,841.65 --
Other information:
270
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
82. Monetary Items Denominated in Foreign Currencies
(1) Monetary Items Denominated in Foreign Currencies
Unit: RMB
Closing balance in foreign
Item Exchange rate Closing balance in RMB
currency
Monetary assets -- -- 570,578,604.38
Of which: USD 63,547,161.55 6.5249 414,638,874.40
EUR 173,860.01 8.0250 1,395,226.58
HKD 25,362,615.36 0.8416 21,345,177.09
INR 373,768,605.55 0.0894 33,414,913.34
NZD 4,471,148.69 4.9314 22,049,022.65
GBP 2,321,106.77 8.8903 20,635,335.52
Peso 89,067,923.52 0.1358 12,095,424.01
VDN 31,765,596,549.00 0.0003 9,529,678.96
LKR 247,525,314.57 0.0352 8,712,891.07
AED 4,605,039.24 1.7777 8,186,378.26
PHP 52,743,149.87 0.1358 7,162,519.75
JPY 80,333,391.84 0.0632 5,077,070.36
IDR 6,677,112,867.20 0.0005 3,338,556.43
MYR 873,339.57 1.6230 1,417,430.12
KRW 147,006,638.94 0.0060 882,039.83
THB 2,287,637.73 0.2179 498,476.26
RUB 1,518,752.75 0.0877 133,194.62
AUD 10,783.13 5.0163 54,091.42
YTL 7,199.02 0.8837 6,361.77
CHF 802.90 7.4006 5,941.94
Accounts receivable -- -- 510,490,705.59
Of which: USD 45,864,791.43 6.5249 299,263,177.60
EUR
HKD 182,121,049.60 0.8416 153,273,075.34
Peso 160,377,255.27 0.1358 21,779,231.27
AED 2,414,009.70 1.7777 4,291,385.04
SGD 752,025.06 4.9314 3,708,536.38
271
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
VDN 93,917,666,532.70 0.0003 28,175,299.96
Long-term borrowings -- --
Of which: USD
EUR
HKD
Other receivables 43,708,590.49
Of which: AED 809,690.22 1.7777 1,439,386.30
HKD 16,062,828.77 0.8416 13,518,476.69
USD 4,352,996.00 6.5249 28,402,863.60
LKR 4,102,902.55 0.03517 144,299.08
SGD 24,300.00 4.9314 119,833.02
VDN 279,106,000.00 0.0003 83,731.80
Accounts payable 213,950,991.90
Of which: Peso 110,668,483.80 0.1358 15,028,780.10
AED 130,880.25 1.7777 232,665.82
HKD 145,438,796.60 0.8416 122,401,291.22
USD 8,747,400.00 6.5249 57,075,910.26
VDN 64,041,148,331.28 0.0003 19,212,344.50
Other payables 167,771,375.72
Of which: Peso 133,428.29 0.1358 18,119.56
AED 4,266,766.23 1.7777 7,585,030.33
HKD 103,820,984.18 0.8416 87,375,740.29
USD 10,333,887.31 6.5249 67,427,581.31
LKR 280,079.39 0.03517 9,850.39
SGD 17,943.02 4.9314 88,484.21
VDN 17,555,232,091.71 0.0003 5,266,569.63
Short-term borrowings 195,747,000.00
Of which: USD 30,000,000.00 6.5249 195,747,000.00
Other information:
(2) Overseas Business Entities (for substantial overseas business entities, the following information shall be
disclosed: principal place of business, functional currency and basis for the choice, change of functional
currency and reasons)
√ Applicable □ Not applicable
272
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Serial Overseas business entities Principal place of Functional currency
No. business
1 Singapore Gold Mantis Pte. Ltd. Singapore SGD
2 HBA Holdings Pte. Ltd. Singapore USD
3 Gold Mantis (International) Construction Hong Kong, China HKD
Decoration Limited
4 Russia Gold Mantis Construction Decoration Co., Russia RUB
Ltd.
5 JTL Fit Out Middle East L.L.C. Dubai AED
6 Gold Mantis Construction Decoration (CNMI), Northern Mariana USD
LLC Islands
7 Gold Mantis Building Decoration (Cambodia) Co., Cambodia USD
Ltd.
8 Gold Mantis International Development Pte. Ltd. Singapore SGD
9 Gold Mantis (Vietnam) Construction Company Vietnam VDN
Limited
10 Gold Mantis (HK) Construction Decoration Hong Kong, China HKD
Limited
11 Gold Mantis (Lanka) Construction (Private) Sri Lanka LKR
Limited
12 Sierra Gold Mantis Joint Venture (Private) Limited Sri Lanka LKR
13 GMI Construction Corp. The Phillipines PHP
14 M+ Design Associates Pte. Ltd. Singapore SGD
15 GMI International Inc. The Phillipines PHP
83. Hedges
Hedged items by type and the relevant hedging instruments, as well as the qualitative and quantitative information of the hedged
risks:
84. Government Grants
(1) Basic Information of Government Grants
Unit: RMB
Amount recognized in profit or
Type Amount Recognized in
loss
Pandemic-related subsidies 38,451,162.89 Other income 38,451,162.89
Employment stability subsidies 5,231,811.57 Other income 3,404,599.39
Rebates of individual income
3,432,182.74 Other income 2,705,907.39
tax
273
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Anti-pandemic training
2,611,500.00 Other income 2,611,500.00
subsidies
Policy support funds for the
2,750,000.00 Other income 2,500,000.00
service industry
Rewards for excellent
1,040,000.00 Other income 740,000.00
enterprises
Internship subsidies 2,319,104.00 Other income 646,258.00
R&D subsidies 10,198,348.06 Other income 600,000.00
Rewards for superior national
enterprises for demonstration in
1,396,500.00 Other income 596,500.00
relation to intellectual
properties
Over-deduction in the
calculation of the taxable
665,722.56 Other income 440,343.10
amount with respect to value
added tax
Subsidies for the development
420,000.00 Other income 420,000.00
of the cultural industry
Cultural and sports guiding
900,000.00 Other income 400,000.00
funds
Comprehensive rewards for
700,000.00 Other income 300,000.00
high-quality development
Rewards for talent projects 750,821.50 Other income 247,500.00
Patent subsidies 452,470.00 Other income 229,470.00
Training subsidies 52,000.00 Other income 52,000.00
Energy conservation and
emission reduction guiding 1,500,000.00 Other income
funds
The second batch of rewards of
2018 of the Publicity 580,000.00 Other income
Department
Internship base subsidies 176,312.00 Other income
Others 596,245.44 Other income 338,855.05
Total 74,224,180.76 54,684,095.82
(2) Government Grants Returned
□ Applicable √ Not applicable
Other information:
274
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Note: HBA, a majority-owned subsidiary of the Company’s subsidiary Singapore Gold Mantis
received pandemic-related government grants in the total amount of RMB38,451,162.89 in 2020.
85. Other
VIII Changes in the Scope of the Consolidated Financial Statements
1. Business Combinations Not Involving Entities under Common Control
(1) Business Combinations Not Involving Entities under Common Control in the Current Period
Unit: RMB
Revenue of Net profit of
Basis for the
Time of Way of the acquiree the acquiree
determination
obtaining the Equity-holdin obtaining the Date of from the date from the date
Acquiree Cost of the
equity g percentage equity acquisition of acquisition of acquisition
acquisition
interests interests to the to the
date
period-end period-end
Other information:
(2) Cost of Acquisition and Goodwill
Unit: RMB
Cost of acquisition
Method for the determination of the fair value of the cost of acquisition, contingent consideration and changes:
Primary reasons for goodwill of a large amount:
Other information:
(3) Identifiable Assets and Liabilities of Acquirees on the Date of Acquisition
Unit: RMB
Fair value at the date of acquisition Carrying amount at the date of acquisition
Method for the determination of the fair value of the identifiable assets and liabilities:
Contingent liabilities of acquirees in business combinations borne by the Company:
Other information:
(4) Gains or Losses Arising from the Remeasurement at Fair Value of Equity Interests Held before the
Dates of Acquisition
Indicate whether there were business combinations which were achieved by stages and of which control was obtained in the
275
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Reporting Period.
□ Yes √ No
(5) Inability to Reasonably Determine the Acquisition Consideration or the Fair Value of Acquirees’
Identifiable Assets and Liabilities at Acquisition Dates or the Period-ends of the Combinations
(6) Other information:
2. Business Combinations Involving Entities under Common Control
(1) Business Combinations Involving Entities under Common Control in the Current Period
Unit: RMB
Revenue of Net profit of
Basis for
the acquiree the acquiree
constituting a
Equity Basis for the from the from the Revenue of Net profit of
business
percentage determination period-begin period-begin the acquiree the acquiree
combination Date of
Acquiree obtained in of the of the of the in the in the
involving acquisition
the business acquisition combination combination comparative comparative
entities under
combination date to the to the period period
common
acquisition acquisition
control
date date
Other information:
(2) Cost of Acquisition
Unit: RMB
Cost of acquisition
Contingent considerations and changes:
Other information:
(3) Carrying Amounts of Acquirees’ Assets and Liabilities at Dates of Acquisition
Unit: RMB
Date of acquisition End of last year
Contingent liabilities of acquirees in business combinations borne by the Company:
Other information:
3. Counter-purchases
Basic transaction information, basis for the constitution of a counter-purchase, assets retained by the Company, whether the liabilities
276
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
constitute business and why, determination of the cost of combination, adjustments to equities and computing when treating the
transaction as an equity transaction:
4. Disposal of Subsidiaries
Indicate whether there was any transaction where the Company ceased to control the subsidiary in a single disposal of its investment
in the subsidiary.
√ Yes □ No
Unit: RMB
Differen
ce
between
Method
the Amount
for the
disposal transferr
determin
price ed from
ation of
and the other
Carrying Fair Gain/los the fair
share of compreh
amount value of s on value of
Basis for net ensive
Remainin of the the remeasur the
the assets of income
Equity g equity remainin remainin ement of remainin
determin the related to
Equity percenta Time of percentag g g the g
Subsidia Way of ation of subsidia the
disposal ge cease of e on the equity-h equity-h remainin equity-h
ry disposal the time ry in the previous
price disposed control date of oldings oldings g oldings
of cease consolid equity
of cease of on the on the equity-h on the
of ated investme
control date of date of oldings date of
control financial nt in the
cease of cease of at fair cease of
stateme subsidiar
control control value control
nts y to
and
correspo return on
major
nding to investme
assumpti
the nt
ons
disposed
investm
ent
Earlier
of
Nantong
de-regist
Gold
ration
Mantis 31
697,500. Equity and over -541,97
Home 70.00% January 0.00%
00 transfer 50% 0.34
E-comm 2020
payment
erce Co.,
of the
Ltd.
transfer
price
277
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Earlier
of
Ankang
de-regist
Gold
ration
Mantis 31
428,800. Equity and over -24,343.
Home 60.00% January 0.00%
00 transfer 50% 97
E-comm 2020
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
of
Baoji
de-regist
Gold
ration
Mantis 31
577,700. Equity and over -373,77
Home 51.00% January 0.00%
00 transfer 50% 0.44
E-comm 2020
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
of
Qingdao
de-regist
Gold
ration
Mantis 31
Equity and over -2,632,6
Home 1.00 77.50% January 0.00%
transfer 50% 48.22
E-comm 2020
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
of
Leshan
de-regist
Gold
ration
Mantis 28
Equity and over -567,78
Home 0.00 51.00% February 0.00%
transfer 50% 5.36
E-comm 2020
payment
erce Co.,
of the
Ltd.
transfer
price
Taizhou 28 Earlier
Equity 2,167,35
Gold 0.00 75.00% February of 0.00%
transfer 5.98
Mantis 2020 de-regist
278
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Home ration
E-comm and over
erce Co., 50%
Ltd. payment
of the
transfer
price
Earlier
Nanjing
of
Gold
de-regist
Mantis
ration
Home 31
Equity and over -743,75
Decorati 1.00 70.00% March 0.00%
transfer 50% 1.67
on 2020
payment
E-comm
of the
erce Co.,
transfer
Ltd.
price
Earlier
of
Zhengzh
de-regist
ou Gold
ration
Mantis 31
910,900. Equity and over -717,20
Home 88.00% March 0.00%
00 transfer 50% 8.07
E-comm 2020
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
of
Jining
de-regist
Gold
ration
Mantis 31
300,000. Equity and over -116,85
Home 51.00% March 0.00%
00 transfer 50% 2.86
E-comm 2020
payment
erce Co.,
of the
Ltd.
transfer
price
Changsh Earlier
u Gold of
Mantis 1,728,93 Equity 30 April de-regist 835,947.
70.00% 0.00%
Home 0.00 transfer 2020 ration 90
E-comm and over
erce Co., 50%
279
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Ltd. payment
of the
transfer
price
Earlier
of
Kunshan
de-regist
Gold
ration
Mantis
2,259,60 Equity 30 April and over -803,15
Home 70.00% 0.00%
0.00 transfer 2020 50% 6.54
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
of
Yanchen
de-regist
g Gold
ration
Mantis
Equity 30 April and over -333,10
Home 1.00 70.00% 0.00%
transfer 2020 50% 3.62
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
of
Jinhua
de-regist
Gold
ration
Mantis
Equity 30 April and over 119,525.
Home 1.00 51.00% 0.00%
transfer 2020 50% 82
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
Linyi of
Gold de-regist
Mantis ration
550,000. Equity 30 April -111,127
Home 55.00% and over 0.00%
00 transfer 2020 .44
E-comm 50%
erce Co., payment
Ltd. of the
transfer
280
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
price
Earlier
of
Langfan
de-regist
g Gold
ration
Mantis
712,100. Equity 30 April and over -134,85
Home 51.00% 0.00%
00 transfer 2020 50% 6.15
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
of
Handan
de-regist
Gold
ration
Mantis
Equity 30 April and over 359,811.
Home 1.00 51.00% 0.00%
transfer 2020 50% 95
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
of
Suqian
de-regist
Gold
ration
Mantis
Equity 30 April and over 930,402.
Home 1.00 80.00% 0.00%
transfer 2020 50% 25
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
of
Zhuhai
de-regist
Gold
ration
Mantis
316,569. Equity 30 April and over 50,556.8
Home 51.00% 0.00%
00 transfer 2020 50% 8
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Taixing Equity 30 April Earlier 81,251.2
1.00 70.00% 0.00%
Gold transfer 2020 of 1
281
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Mantis de-regist
Home ration
E-comm and over
erce Co., 50%
Ltd. payment
of the
transfer
price
Earlier
of
Lanzhou
de-regist
Gold
ration
Mantis
1,092,45 Equity 30 April and over -32,443.
Home 70.00% 0.00%
0.00 transfer 2020 50% 92
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
of
Huaihua
de-regist
Gold
ration
Mantis
Equity 30 April and over -106,33
Home 1.00 51.00% 0.00%
transfer 2020 50% 8.92
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
of
Xinxiang
de-regist
Gold
ration
Mantis
555,000. Equity 30 April and over 552,558.
Home 51.00% 0.00%
00 transfer 2020 50% 78
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Siyang Earlier
Gold of
923,900. Equity 30 April -97,997.
Mantis 51.00% de-regist 0.00%
00 transfer 2020 46
Home ration
E-comm and over
282
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
erce Co., 50%
Ltd. payment
of the
transfer
price
Earlier
of
Shenzhe
de-regist
n Gold
ration
Mantis
1,452,60 Equity 30 April and over 660,330.
Home 51.00% 0.00%
0.00 transfer 2020 50% 82
Decorati
payment
on Co.,
of the
Ltd.
transfer
price
Shanghai Earlier
Qingcha of
n Space de-regist
Decorati ration
on 1,000,00 Equity 31 May and over 988,376.
70.00% 0.00%
Design 0.00 transfer 2020 50% 19
and payment
Engineer of the
ing Co., transfer
Ltd. price
Earlier
of
Wuxi
de-regist
Gold
ration
Mantis
3,410,70 Equity 31 May and over 481,572.
Home 70.00% 0.00%
0.00 transfer 2020 50% 27
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
Zhongsh
of
an Gold
de-regist
Mantis
2,308,37 Equity 31 May ration 377,432.
Home 70.00% 0.00%
0.65 transfer 2020 and over 16
E-comm
50%
erce Co.,
payment
Ltd.
of the
283
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
transfer
price
Earlier
of
Binzhou
de-regist
Gold
ration
Mantis
918,600. Equity 31 May and over 303,257.
Home 51.00% 0.00%
00 transfer 2020 50% 22
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
of
Yangzho
de-regist
ng Gold
ration
Mantis
1,044,73 Equity 31 May and over 411,995.
Home 51.00% 0.00%
8.66 transfer 2020 50% 01
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
of
Suzhou
de-regist
Gold
ration
Mantis
1,200,00 Equity 31 May and over 334,344.
Home 78.00% 0.00%
0.00 transfer 2020 50% 24
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
of
Changzh
de-regist
ou Gold
ration
Mantis
2,093,50 Equity 31 May and over 92,537.6
Home 70.00% 0.00%
0.00 transfer 2020 50% 2
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Ningguo 1.00 100.00% Equity 31 May Earlier 1,344,23 0.00%
284
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Gold transfer 2020 of 1.44
Mantis de-regist
Home ration
E-comm and over
erce Co., 50%
Ltd. payment
of the
transfer
price
Earlier
of
Yibin
de-regist
Gold
ration
Mantis
Equity 31 May and over -522,51
Home 0.00 51.00% 0.00%
transfer 2020 50% 5.68
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
of
Shanghai
de-regist
Gold
ration
Mantis
1,100,00 Equity 30 June and over 2,230,78
Home 98.72% 0.00%
0.00 transfer 2020 50% 0.65
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
of
Xuzhou
de-regist
Gold
ration
Mantis
1,156,90 Equity 30 June and over 3,081,06
Home 70.00% 0.00%
0.00 transfer 2020 50% 7.84
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Wuhu Earlier
Gold 750,000. Equity 30 June of 544,176.
51.00% 0.00%
Mantis 00 transfer 2020 de-regist 57
Home ration
285
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
E-comm and over
erce Co., 50%
Ltd. payment
of the
transfer
price
Earlier
Gold of
Mantis de-regist
Home ration
(Shangha Equity 30 June and over 664,376.
1.00 100.00% 0.00%
i) transfer 2020 50% 19
Decorati payment
on Co., of the
Ltd. transfer
price
Earlier
of
Danyang
de-regist
Gold
ration
Mantis
1,530,00 Equity 30 June and over 774,640.
Home 51.00% 0.00%
0.00 transfer 2020 50% 67
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
of
Ma’ansh
de-regist
an Gold
ration
Mantis
Equity 30 June and over 1,776,28
Home 0.00 0.00% 0.00%
transfer 2020 50% 2.05
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Lianyun Earlier
gang of
Gold de-regist
2,760,50 Equity 30 June 792,026.
Mantis 80.00% ration 0.00%
0.00 transfer 2020 05
Home and over
E-comm 50%
erce Co., payment
286
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Ltd. of the
transfer
price
Earlier
of
Yiwu
de-regist
Gold
ration
Mantis
1,700,00 Equity 30 June and over 44,146.8
Home 51.00% 0.00%
0.00 transfer 2020 50% 3
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
of
Zhuji
de-regist
Gold
ration
Mantis
95,000.0 Equity 30 June and over 191,964.
Home 51.00% 0.00%
0 transfer 2020 50% 33
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
of
Qujing
de-regist
Gold
ration
Mantis
Equity 30 June and over 97,461.7
Home 1.00 51.00% 0.00%
transfer 2020 50% 0
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
Huainan
of
Gold
de-regist
Mantis
ration
Home
450,000. Equity 30 June and over -444,40
Decorati 70.00% 0.00%
00 transfer 2020 50% 7.55
on
payment
Engineer
of the
ing Co.,
transfer
Ltd.
price
287
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Earlier
of
Wuzhou
de-regist
Gold
ration
Mantis
428,000. Equity 30 June and over
Home 51.00% -396.05 0.00%
00 transfer 2020 50%
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
of
Jinan
de-regist
Gold
ration
Mantis
1,042,00 Equity 31 July and over -703,36
Home 70.00% 0.00%
0.00 transfer 2020 50% 6.79
E-comm
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
of
Sanming
de-regist
Gold
ration
Mantis 31
258,600. Equity and over -577,61
Home 70.00% August 0.00%
00 transfer 50% 3.43
E-comm 2020
payment
erce Co.,
of the
Ltd.
transfer
price
Earlier
of
Xi’an
de-regist
Gold
ration
Mantis 31
388,300. Equity and over -1,916,0
Home 80.00% August 0.00%
00 transfer 50% 93.27
E-comm 2020
payment
erce Co.,
of the
Ltd.
transfer
price
Hefei 31 Time of
De-regist 459,496.
Gold 0.00 100.00% Decemb de-regist 0.00%
ration 35
Mantis er 2020 ration
288
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Home
E-comm
erce Co.,
Ltd.
Baoding
Gold
Mantis 31 Time of
De-regist -1,692,8
Home 0.00 51.00% Decemb de-regist 0.00%
ration 54.00
E-comm er 2020 ration
erce Co.,
Ltd.
Liuzhou
Gold
Mantis 31 Time of
De-regist -6,418.1
Home 0.00 100.00% Decemb de-regist 0.00%
ration 0
E-comm er 2020 ration
erce Co.,
Ltd.
Suzhou
Miaoyu
30 Time of
Construc De-regist
0.00 100.00% Novemb de-regist 0.00 0.00%
tion ration
er 2020 ration
Materials
Co., Ltd.
Other information:
1. Disposal of Subsidiaries
In the current period, Home Decoration E-commerce, a subsidiary of Gold Mantis
Prefabricated Construction Technology, transferred or de-registered 51 “Gold Mantis Home”
subsidiaries, and Gold Mantis Curtain Wall, a subsidiary of the Company, de-registered Suzhou
Miaoyu Construction Materials Co., Ltd. These transferred or de-registered entities were therefore
excluded from the consolidated financial statements of the current period.
Indicate whether there was any disposal of the investment in a subsidiary which was carried out by stages and where control o ver the
subsidiary ceased in the Reporting Period.
□ Yes √ No
5. Changes in the Scope of the Consoldiated Financial Statements due to Other Reasons
Changes in the scope of the consoldiated financial statements due to other reasons (incorporation, liquidation, etc.):
In the current period, Gold Mantis International, a subsidiary of the Company, incorporated
Jining Gold Mantis Construction Engineering Co., Ltd., and Gold Mantis Landscape, a subsidiary
of the Company, incorporated Hangzhou Gold Mantis Landscape Co., Ltd. These newly
incorporated entities were added to the consolidated financial statements of the current period.
289
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
6. Other
IX Interests in Other Entities
1. Interests in Subsidiaries
(1) Composition of the Group
The Company’s interest How the
Principal place of Place of Nature of
Subsidiary subsidiary was
business registration business Direct Indirect
obtained
Business
Suzhou Meiruide
Suzhou City, Suzhou City, combination
Construction Construction
Jiangsu Province, Jiangsu Province, 100.00% involving entities
Decoration Co., decoration
China China under common
Ltd.
control
Suzhou Meiruide
Suzhou City, Suzhou City, Incorporation
Construction Construction
Jiangsu Province, Jiangsu Province, 100.00% with capital
Materials Co., decoration
China China contribution
Ltd.
Suzhou Industrial
Business
Park Gold Mantis
Suzhou City, Suzhou City, Furniture design combination
Furniture Design
Jiangsu Province, Jiangsu Province, and 100.00% involving entities
and
China China manufacturing under common
Manufacturing
control
Co., Ltd.
Business
Suzhou Gold Suzhou City, Suzhou City, combination not
Curtain wall
Mantis Curtain Jiangsu Province, Jiangsu Province, 100.00% involving entities
production
Wall Co., Ltd. China China under common
control
Qidong Gold Qidong City, Qidong City, Incorporation
Curtain wall
Mantis Curtain Jiangsu Province, Jiangsu Province, 100.00% with capital
production
Wall Co., Ltd. China China contribution
Suzhou Gold Suzhou City, Suzhou City, Incorporation
Mantis Landscape Jiangsu Province, Jiangsu Province, Landscaping 100.00% with capital
Co., Ltd. China China contribution
Jiangsu Gold Suzhou City, Suzhou City, Incorporation
Mantis Jiangsu Province, Jiangsu Province, Landscaping 100.00% with capital
Horticultural Co., China China contribution
290
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Ltd.
Datong Gold Datong City, Datong City, Incorporation
Mantis Landscape Shanxi Province, Shanxi Province, Landscaping 100.00% with capital
Co., Ltd. China China contribution
Jining Economic
Development
Jining City, Jining City, Incorporation
Zone Gold
Shandong Shandong Landscaping 100.00% with capital
Mantis Landscape
Province, China Province, China contribution
Engineering Co.,
Ltd.
Suzhou Gold
Mantis Suzhou City, Suzhou City, Incorporation
Investment
Construction Jiangsu Province, Jiangsu Province, 100.00% with capital
management
Investment Co., China China contribution
Ltd.
Liaoning Gold
Mantis Shenyang City, Shenyang City, Incorporation
Construction
Construction Liaoning Liaoning 100.00% with capital
decoration
Decoration Co., Province, China Province, China contribution
Ltd.
Incorporation
Singapore Gold Construction
Singapore Singapore 100.00% with capital
Mantis Pte. Ltd. decoration
contribution
Business
combination not
HBA Holdings Construction
Singapore Singapore 86.62% involving entities
Pte. Ltd. *1 design
under common
control
Gold Mantis
(International) Incorporation
Construction
Construction Hong Kong Hong Kong 100.00% with capital
decoration
Decoration contribution
Limited
Russia Gold
Mantis Incorporation
Construction
Construction Russia Russia 100.00% with capital
decoration
Decoration Co., contribution
Ltd.
JTL Fit Out Incorporation
Construction
Middle East Dubai Dubai 100.00% with capital
decoration
L.L.C. contribution
291
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Gold Mantis
Incorporation
Construction Northern Mariana Northern Mariana Construction
100.00% with capital
Decoration Islands Islands decoration
contribution
(CNMI), LLC
Gold Mantis
Building Incorporation
Construction
Decoration Cambodia Cambodia 100.00% with capital
decoration
(Cambodia) Co., contribution
Ltd.
Gold Mantis
Incorporation
International Construction
Singapore Singapore 100.00% with capital
Development Pte. decoration
contribution
Ltd.
Gold Mantis
Incorporation
(Vietnam) Construction
Vietnam Vietnam 100.00% with capital
Construction decoration
contribution
Company Limited
Gold Mantis
(HK) Incorporation
Hong Kong, Hong Kong, Construction
Construction 100.00% with capital
China China decoration
Decoration contribution
Limited
Gold Mantis
Incorporation
(Lanka) Construction
Sri Lanka Sri Lanka 100.00% with capital
Construction decoration
contribution
(Private) Limited
Gold Mantis
Prefabricated
Suzhou City, Suzhou City, Incorporation
Construction
Jiangsu Province, Jiangsu Province, E-commerce 70.00% with capital
Technology
China China contribution
(Suzhou) Co.,
Ltd.
Gold Mantis
Refined
Suzhou City, Suzhou City, Incorporation
Decoration & Construction
Jiangsu Province, Jiangsu Province, 100.00% with capital
Technology decoration
China China contribution
(Suzhou) Co.,
Ltd.
Gold Mantis
Suzhou City, Suzhou City, Incorporation
Home Decoration
Jiangsu Province, Jiangsu Province, E-commerce 90.00% with capital
E-commerce
China China contribution
(Suzhou) Co.,
292
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Ltd.*2
Gold Mantis
Supply Chain Suzhou City, Suzhou City, Incorporation
Management Jiangsu Province, Jiangsu Province, E-commerce 100.00% with capital
(Suzhou) Co., China China contribution
Ltd.
Suzhou Jijia Suzhou City, Suzhou City, Incorporation
Construction
Materials Co., Jiangsu Province, Jiangsu Province, 100.00% with capital
decoration
Ltd. China China contribution
Gold Mantis
North China
(Beijing) Incorporation
Construction
Construction Beijing Beijing 100.00% with capital
decoration
Decoration contribution
Engineering Co.,
Ltd.
Suzhou City, Suzhou City, Incorporation
Gold Mantis Art Construction
Jiangsu Province, Jiangsu Province, 100.00% with capital
Co., Ltd. decoration
China China contribution
Suzhou Jinpu No.
9 Cultural Suzhou City, Suzhou City, Incorporation
Operational
Industrial Jiangsu Province, Jiangsu Province, 100.00% with capital
services
Development Co., China China contribution
Ltd.
Xi’an Hi-tech
Zone Jinchuang
Commercial Xi’an City, Xi’an City, Incorporation
PPP project
Operation Shaanxi Province, Shaanxi Province, 90.00% with capital
management
Management and China China contribution
Development Co.,
Ltd.
Gold Mantis
Business
Municipal
Duyun City, Duyun City, combination not
Engineering Construction
Guizhou Guizhou 100.00% involving entities
Construction decoration
Province, China Province, China under common
(Guizhou) Co.,
control
Ltd.
Suzhou Industrial Business
Park Jindejin Suzhou City, Suzhou City, combination not
Construction
Construction Jiangsu Province, Jiangsu Province, 100.00% involving entities
decoration
Engineering Co., China China under common
Ltd. control
293
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Sierra Gold
Incorporation
Mantis Joint Construction
Sri Lanka Sri Lanka 50.00% with capital
Venture (Private) decoration
contribution
Limited
GMI Incorporation
Construction
Construction The Phillipines The Phillipines 100.00% with capital
decoration
Corp. contribution
M+ Design Incorporation
Construction
Associates Pte. Singapore Singapore 63.00% with capital
design
Ltd. contribution
Gold Mantis East
China Suzhou City, Suzhou City, Incorporation
Construction
Construction Jiangsu Province, Jiangsu Province, 100.00% with capital
decoration
Decoration Co., China China contribution
Ltd.
Suzhou Huali
Jinshi Suzhou City, Suzhou City, Incorporation
Construction
Construction Jiangsu Province, Jiangsu Province, 60.00% with capital
decoration
Decoration Co., China China contribution
Ltd.
Shuicheng
Ruitong Liupanshui City, Liupanshui City, Incorporation
PPP project
Construction and Guizhou Guizhou 90.00% with capital
management
Development Co., Province, China Province, China contribution
Ltd.
Business
Archi-Feeling Suzhou City, Suzhou City, combination not
Construction
Design (SuZhou) Jiangsu Province, Jiangsu Province, 70.00% involving entities
design
Co., Ltd. China China under common
control
Incorporation
GMI International Construction
The Phillipines The Phillipines 100.00% with capital
Inc. decoration
contribution
Suzhou Miaoyu
Suzhou City, Suzhou City, Incorporation
Construction Construction
Jiangsu Province, Jiangsu Province, 100.00% with capital
Materials Co., decoration
China China contribution
Ltd.
Jining Gold
Jining City, Jining City, Incorporation
Mantis Construction
Shandong Shandong 100.00% with capital
Construction decoration
Province, China Province, China contribution
Engineering Co.,
294
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Ltd.
Hangzhou Gold Hangzhou City, Hangzhou City, Incorporation
Mantis Landscape Zhejiang Zhejiang Landscaping 100.00% with capital
Co., Ltd. Province, China Province, China contribution
Reason for holding different equity percentage and voting right percentage in a subsidiary:
Reason for holding half or below of voting rights but still controlling the investee, and holding over half of voting rights but not
controlling the investee:
Basis for control over substantial structured entities included in the consolidated financial statements:
Basis for determining whether the Company was an agent or consignor:
Other information:
Note*1：HBA incorporated 24 subsidiaries.
*2：Home Decoration E-commerce incorproated 44 “Gold Mantis Home” subsidiaries.
Notes to the indirect interests: The Company indirectly held 100% interest in Meiruide
Materials through Meiruide; 100% interest in Qidong Curtain Wall through Gold Mantis Curtain
Wall; 100% interest in Gold Mantis Horticultural, Datong Gold Mantis, Jining Gold Mantis, and
Hangzhou Gold Mantis, respectively, through Gold Mantis Landscape; an 86.62% interest in HBA
through Singapore Gold Mantis; 100% interest in Russia Gold Mantis, JTL Fit Out Middle East,
Saipan Gold Mantis, Cambodia Gold Mantis, International Development, Gold Mantis (Vietnam) ,
Gold Mantis (HK) , Gold Mantis (Lanka) , GMI Construction, GMI Construction Decoration, and
Jining Gold Mantis Engineering, respectively, as well as a 63% interest in M+, through Gold
Mantis International; and a 90% interest in Home Decoration E-commerce, 100% interest in
Refined Decoration & Technology, and 100% interest in Gold Mantis Supply Chain, through
Prefabricated Construction Technology.
(2) Principal Non-wholly-owned Subsidiaries
Unit: RMB
Net profit or loss
Declared dividends for
attributable to minority Closing balance of
Subsidiary Minority interests minority interests in the
interests in the current non-controlling interests
current period
period
HBA 13.38% 16,769,841.20 63,969,033.00
Prefabricated
30.00% -52,544,952.12 29,682,153.76
Construction Technology
Total -35,775,110.92 93,651,186.76
Reason for minority shareholder holding different equity percentage and voting right percentage in a subsidiary:
Other information:
295
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
(3) Key Financial Information of Principal Non-wholly-owned Subsidiaries
Unit: RMB
Closing balance Opening balance
Subsidia Non-curr Non-curr Non-curr Non-curr
Current Total Current Total Current Total Current Total
ry ent ent ent ent
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
788,568, 68,854,8 857,423, 384,812, 3,314,64 388,127, 872,439, 80,574,9 953,014, 471,423, 1,890,55 473,314,
HBA
960.29 45.32 805.61 502.40 9.20 151.60 325.94 24.92 250.86 691.20 0.20 241.40
Prefabric
ated
Construc 2,208,85 21,302,5 2,230,15 1,973,08 73,663.5 1,973,15 2,064,02 153,684, 2,217,70 1,931,93 292,240. 1,932,23
tion 2,750.36 45.84 5,296.20 2,143.59 6 5,807.15 4,385.12 599.18 8,984.30 9,354.80 10 1,594.90
Technolo
gy
Unit: RMB
Current period Last year
Net cash Net cash
Total generated Total generated
Subsidiary Operating Operating
Net profit comprehensi from/used in Net profit comprehensi from/used in
revenue revenue
ve income operating ve income operating
activities activities
803,827,849. 88,202,658.2 88,202,658.2 86,735,560.0 988,120,444. 48,311,808.9 48,311,808.9 51,400,723.5
HBA
60 3 3 0 50 2 2 0
Prefabricated
2,808,722,61 -13,401,119.3 -13,401,119.3 -20,135,768.7 3,999,212,78 -99,456,739.2 -99,456,739.2 82,094,350.0
Construction
7.48 7 7 4 4.16 0 0 6
Technology
Other information:
(4) Major Restrictions with Respect to Use of the Group’s Assets and Repayment of the Group’s Liabilities
(5) Financial or Other Support Provided for Structured Entities Included in the Consolidated Financial
Statements
Other information:
296
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
2. Transactions Where Changes Occurred to the Company’s Interests in Subsidiaries but the Company still
Controlled the Subsidiaries
(1) Changes in Interests in Subsidiaries
(2) Effects of the Transactions on Non-controlling Interests and Equity Attributable to Owners of the
Company as the Parent
Unit: RMB
Other information:
3. Interests in Joint Ventures and Associates
(1) Principal Joint Ventures and Associates
The Company’s interest Accounting
treatment of
Joint venture or Principal place of Place of Nature of
investment in the
associate business registration business Direct Indirect
joint venture or
associate
Reason for holding different equity percentage and voting right percentage in a joint venture or associate:
Reason for holding below 20% voting rights but having a significant influence, or holding 20% or above voting rights but not having
a significant influence:
(2) Key Financial Information of Principal Joint Ventures
Unit: RMB
Closing balance/current period Opening balance/last year
Other information:
(3) Key Financial Information of Principal Associates
Unit: RMB
Closing balance/current period Opening balance/last year
Other information:
(4) Aggregate Financial Information of Insignificant Joint Ventures and Associates
Unit: RMB
297
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Closing balance/current period Opening balance/last year
Joint ventures: -- --
Total amounts based on ownership
-- --
percentages:
Associates: -- --
Total carrying amount of investments 225,124.06 22,838,423.66
Total amounts based on ownership
-- --
percentages:
--Net profit -9,556,696.62 -6,162,676.00
--Total comprehensive income -9,556,696.62 -6,162,676.00
Other information:
(5) Major Restriction on Joint Ventures or Associates’ Ability to Transfer Funds to the Company
(6) Excess Losses on Joint Ventures or Associates
Unit: RMB
Losses unrecognized (or share
Cumulative previous losses Cumulative unrecognized losses
Joint venture or associate of net profit) in the current
unrecognized at the period-end
period
Other information:
(7) Unrecognized Commitments Associated with Investments in Joint Ventures
(8) Contingent Liabilities Associated with Investments in Joint Ventures or Associates
4. Principal Joint Operations
Principal place of The Company’s interest/share of profit/loss
Joint operation Place of registration Nature of business
business Direct Indirect
Reason for holding different equity percentage/share of profit/loss and voting right percentage in a joint operation:
Basis for the classification as a joint operation when the joint operation was an independent entity:
Other information:
5. Interests in Structured Entities Not Included in the Consolidated Financial Statements
Notes:
298
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
6. Other
X Risks Associated with Financial Instrume nts
1. Qualitative Information
The Company's risks associated with financial instruments originate from various financial
assets and financial liabilities recognized by the Company in the course of operation, including
credit risk, liquidity risk and market risk.
The Company's management is in charge of developing management objectives and policies
for the Company's risks associate with financial instruments. The management is in charge of
routine risk management through functional departments. The Company's internal audit department
is in charge of carrying out routine supervision over the implementation of risk management
policies and procedures of the Company, as well as reporting relevant findings to the Audit
Committee of the Company in a timely manner.
The Company's overall objective for risk management is to develop risk management policies
to minimize risks associated with financial instruments without unduly affecting the
competitiveness and strain capacity of the Company.
2. Credit Risk
Credit risk refers to the financial loss that one party to a financial instrument will cause to the
other party by failing to fulfill its obligations. The Company's credit risk arises mainly from
monetary assets, notes receivable, accounts receivable, other receivables and long-term receivables,
and the credit risk of such financial assets is due to counterparty default, with the maximum
exposure being equal to the carrying amount of these instruments.
The Company's monetary assets are mainly deposited in commercial banks and other financial
institutions because the Company believes these commercial banks have high credit standing and
asset status and low credit risk.
The Company developed relevant policies to control the credit risk exposure for notes
receivable, accounts receivable, other receivables, and long-term receivables. The Company
assessed the credit qualifications of customers and set up corresponding credit periods based on the
financial condition of customers, the possibility of obtaining guarantees from third parties, credit
records and other factors such as the current market situation. The Company regularly monitors the
credit records of customers. For customers with bad credit records, the Company adopted
corresponding methods, such as written pressing for payment, shortening credit period, and
canceling credit period, so as to ensure the Company's overall credit risk is controllable.
(1) Standards for judging significant increases in credit risk
On each balance sheet date, the Company assessed whether the credit risk of relevant financial
instruments had increased significantly since the initial recognition. When determining whether
there were significant increases in credit risk since the initial recognition, the Company considered
that reasonable and well-grounded information can be obtained without unnecessary additional cost
or effort, including qualitative and quantitative analyses based on the Company's historical data,
external credit risk ratings, and forward-looking information. Based on individual financial
299
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
instruments or portfolios of financial instruments with similar credit risk characteristics, the
Company determined the changes in default risk during the expected duration of financial
instruments by comparing the risk of default of financial instruments on the balance sheet date and
the risk of default on the initial recognition date.
When one or more of the following qualitative and quantitative standards was triggered, the
Company believed that the credit risk of financial instruments had increased significantly.
Quantitative standards mainly refer to that the probability of default for the remaining duration on
the reporting date increases by more than a certain percentage from the initial recognition.
Qualitative standards refer to the major adverse changes in the operation or financial status of the
principal debtors and the list of early warning customers.
(2) Definition of assets with incurred credit impairment
To determine whether credit impairment occurred, the Company adopted the definition
standard consistent with the internal credit risk management objectives for relevant financial
instruments, with consideration also given to qualitative and quantitative indicators.
The following factors are taken into account by the Company when assessing whether a debtor
suffers from credit impairment: the issuer or debtor has significant financial difficulties; the debtor
breaches the contract, such as default or being overdue in the payment of interest or principal; for
economic or contractual reasons related to the debtor, the creditor gives the debtor concessions that
he would not make under any other circumstance; the debtor is likely to go bankrupt or undergo
other financial reorganization; the financial difficulty of the issuer or debtor leads to the
disappearance of the active market for the financial asset; the purchase or generation of a financial
asset at a substantial discount that reflects the fact that a credit loss has occurred.
The credit impairment of financial assets might be the result of a combination of events, not
necessarily due to a single identifiable event.
(3) Parameters for measuring expected credit loss
According to whether there was a significant increase in credit risk or whether credit
impairment occurred, the Company measured the provisions for the impairment of different assets
at the expected credit loss for 12 months or the entire duration. The key para meters for measuring
expected credit loss included default probability, loss given default and exposure at default. The
Company established models for default probability, loss given default and exposure at default after
considering the quantitative analysis of historical statistical data (such as counterparty rating,
guarantee method, collateral category, and repayment method), and forward-looking information.
The relevant definitions are as follows:
Default probability refers to the possibility that a deb tor cannot fulfill its payment obligations
in the next 12 months or throughout the remaining duration.
Loss given default refers to the Company's expectation for the extent of losses arising from
exposure to default risk. The loss given default varies depending on the counterparty type, the
method and priority of recourse, and different collaterals. The loss given default is the percentage of
risk exposure loss at default and is calculated on the basis of the next 12 months or the entire
duration.
300
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Exposure at default refers to the amount payable by the Company in the event of default in the
next 12 months or over the entire duration. Forward-looking information is involved in both the
assessment of significant increases in the credit risk of forward-looking information and the
calculation of expected credit loss. The Company identified the key economic indicators that
affected the credit risk and expected credit loss of various business types through historical data
analysis.
The quantitative data on credit exposure arising from accounts receivable, other receivables
and long-term receivables of the Company are detailed in Section XII. VII. (5) (8) and (16).
3. Liquidity Risk
Liquidity risk refers to the risk of capital shortage in an enterprise when fulfilling its
obligations to make settlements by delivering cash or other financial assets. The Company's policies
are designed to ensure there is adequate cash to repay debts as they fall due. Liquidity risk is under
the centralized control of the Company's Finance Department, and the Audit Department is in
charge of supervision. The Finance Department monitors the cash balance and makes a rolling
forecast of cash flows in the next 12 months, so as to ensure the Company has sufficient funds to
repay its debts under all reasonable predictions.
As of 31 December 2020, the maturities of the Company’s financial liabilities are as follows:
Item 31 December 2020
Within 1 year 1-2 years 2-3 years Over 3 years
Short-term borrowings 714,363,172.85 — — —
Notes payable 4,871,222,687.68 — — —
Accounts payable 17,046,906,908.50 — — —
Other payables 288,908,436.62 — — —
Current portion of 51,083,934.28 — — —
non-current liabilities
Long-term borrowings — 81,000,000.00 83,000,000.00 672,918,353.34
Total 22,972,485,139.93 81,000,000.00 83,000,000.00 672,918,353.34
4. Market Risk
The market risk of a financial instrument refers to the risk of fluctuations in the fair value or
future cash flows of the financial instrument arising from changes in market prices, including
exchange rate risk, interest rate risk and other price risks.
(1) Exchange rate risk
Exchange rate risk refers to the risk of fluctuations in the fair value or future cash flows of
financial instruments arising from changes in foreign exchange rates. The foreign exchange risk
faced by the Company is mainly from financial assets and financial liabilities denominated in
foreign currencies. For presentation reasons, the amount of risk exposure was shown in Renminbi,
the spot exchange rate on the balance sheet date was adopted for conversion, and the translation
difference in foreign currency statements was not included. The exchange risk exposure data of
each foreign currency asset-liability item are detailed in Section XII. VII. (82).
(2) Interest rate risk
301
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Interest rate risk refers to the risk of fluctuations in the fair value or future cash flows of
financial instruments arising from changes in market interest rates. The interest rate risk faced by
the Company is from bank loans. As of 31 December 2020, the balance of the Company's bank
loans was RMB1,402,135,800.00, most of which bore interest at a fixed rate, so the Company's
interest risk was low.
(3) Other price risks
None.
XI Disclosure of Fair Value
1. The Closing Fair Value of Assets and Liabilities Measured at Fair Value
Unit: RMB
Closing fair value
Item Level 1 fair value Level 2 fair value Level 3 fair value
Total
measurement measurement measurement
I. Continuous Fair Value
-- -- -- --
Measurement
(I) Held-for-trading
2,172,086,741.05 2,172,086,741.05
financial assets
1. Financial assets at fair
value through profit and 2,172,086,741.05 2,172,086,741.05
loss of the current period
(1) Debt instrument
2,172,086,741.05 2,172,086,741.05
investments
(II) Receivables financing 275,822,920.18 275,822,920.18
(III) Other non-current
512,022,000.00 512,022,000.00
financial assets
Total assets continuously
2,959,931,661.23 2,959,931,661.23
measured at fair value
II. Non-continuous Fair
-- -- -- --
Value Measurement
302
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
2. Basis for determining the market price of continuous and non-continuous Level 1 fair value
measurement items
3. Continuous and non-continuous Level 2 fair value measurement items, valuation techniques used, and
the qualitative and quantitative information of important parameters
4. Continuous and non-continuous Level 3 fair value measurement items, valuation techniques used, and
the qualitative and quantitative information of important parameters
5. Continuous and non-continuous Level 3 fair value measurement items, information on the adjustment
between the opening and closing book value, and sensitivity analysis of unobservable parameters
For wealth management products at the end of the reporting period, the future cash flows were
predicted as the fair value according to the type of financial products and their yield rate.
The carrying value of receivables financing was close to the fair value due to their short
remaining periods, so the face amount served as the fair value.
Other non-current financial assets were equity investments in unlisted enterprises that the
Company planned to hold for the long term, and the initial investment cost served as the fair value.
6. If a continuous fair value measurement item was converted between levels for the current period, the
reasons for such conversion and the policies for determining the conversion point
7. Valuation technique changes incurred in the current period and the reasons for such changes
8. The fair value of financial assets and financial liabilities not measured at fair value
9. Other Information
For financial instruments traded in an active market, the Company determined their fair value
based on their quotations in the active market; for financial instruments not traded in an active
market, the Company determined their fair value with valuation techniques. The valuation models
used were mainly those of comparable companies in the market. The input values for valuation
techniques primarily included risk-free interest rate, benchmark interest rate, exchange rate, credit
point difference, liquidity premium, and discount for lack of liquidity.
XII Related Parties and Related-party Transactions
1. Particulars about the Controlling Shareholder
Controlling Controlling
Controlling
Place of registration Nature of business Registered capital shareholder’s shareholder’s voting
shareholder
shareholding right percentage in
303
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
percentage in the the Company
Company
Suzhou Gold Mantis
Suzhou Industrial
Enterprise (Group) Industrial investment RMB215 million 24.33% 24.33%
Park
Co., Ltd.
Notes to the controlling shareholder:
Suzhou Gold Mantis Holding Co., Ltd. is the ultimate controller of the Company, and Mr. Zhu Xingliang is the actual controller of
the Company.
Other information:
2. Subsidiaries of the Company
See Note “IX Interests in Other Entities” in Part XII.
3. Joint Ventures and Associates of the Company
See the Notes to the Financial Statements for the Company’s principal joint ventures and associates.
Other joint ventures or associates that were involved in related-party transactions with the Company in the current period, or that
were involved in related-party transactions with the Company in prior periods with balances lasting into the current period:
Joint venture or associate Relationship with the Company
Delos Residential Solution (HK) Limited Gold Mantis International holds a 45.78% interest in it.
Macao Gold Mantis Construction Decoration Co., Limited Gold Mantis International holds a 45.00% interest in it.
The Company and Refined Decoration & Technology held
Zhejiang Tianyu Commercial Operation Management Co., Ltd. 35.00% and 15% interests, respectively, in it before October
2020.
Other information:
4. Other Related Parties
Other related parties Relationship with the Company
Suzhou LJT Intelligent Technology Co., Ltd. The Company’s subsidiary
Virtues Professional Training School of Suzhou Industrial Park The Company’s subsidiary
Suzhou Virtues Construction Professional Training School The Company’s subsidiary
Suzhou Gold Mantis Professional Training School The Company’s subsidiary
Suzhou Gold Mantis Investment Co., Ltd. The Company’s subsidiary
Suzhou Jinhu Property Development Co., Ltd. The Company’s subsidiary
Suzhou Gold Mantis 3D Software Co., Ltd. The Company’s subsidiary
Suzhou Huizhu Information Technology Co., Ltd. Subsidiary of Suzhou Gold Mantis 3D Software Co., Ltd.
Suzhou BLM Technology Co., Ltd. Subsidiary of Suzhou LJT Intelligent Technology Co., Ltd.
304
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Suzhou Gold Mantis Yihe Technology Co., Ltd. Subsidiary of Suzhou LJT Intelligent Technology Co., Ltd.
Suzhou Jinduoyun Information Technology Co., Ltd. Subsidiary of Suzhou LJT Intelligent Technology Co., Ltd.
Jiangsu Dongyi Software Technology Co., Ltd. Subsidiary of Suzhou Gold Mantis Yihe Technology Co., Ltd.
Suzhou Jinnuo Commercial Factoring Co., Ltd. Subsidiary of Suzhou Nuojin Investment Co., Ltd.
Suzhou Nuojin Finance Lease Co., Ltd. Subsidiary of Suzhou Nuojin Investment Co., Ltd.
Suzhou Gold Mantis Culture Development Co., Ltd. Minority-owned subsidiary of the controlling shareholder
Delos (Suzhou) Well Technology Ltd. Subsidiary of Delos Residential Solutions (HK) Limited
The Company’s senior management being director of the
Suzhou Gold Mantis Charity Foundation
non-corporate organization
Suzhou Gold Gain Investment Co., Ltd. Under control of the same actual controller
Suzhou Jinbai Hotel Management Co., Ltd. Subsidiary of Suzhou Jinhu Property Development Co., Ltd.
Other information:
5. Related-party Transactions
(1) Related-party Transactions Involving Purchase and Sale of Goods, as well as Receipt and Rendering of
Services
Purchases of goods/receipt of services:
Unit: RMB
Contents of Amount in the Approved transaction Over the transaction
Related party Amount in last year
transaction current period line line or not
Suzhou Gold
Software and
Mantis 3D Software 1,381,383.97 1,381,383.97 Not 3,378,233.02
technical services
Co., Ltd.
Suzhou Huizhu
Information
Technical services 274,801.88 274,801.88 Not 1,699,921.03
Technology Co.,
Ltd.
Suzhou Gold
Consulting
Mantis Investment 288,226.17 288,226.17 Not 471,698.11
services
Co., Ltd.
Delos (Suzhou)
Well Technology Materials 1,621,386.16 1,621,386.16 Not 983,599.75
Ltd.
Suzhou BLM
Equipment and
Technology Co., 929,356.41 929,356.41 Not 113,534.85
materials
Ltd.
Suzhou LJT Design charges 7,547,969.20 7,547,969.20 Not -36,603.66
305
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Intelligent and materials
Technology Co.,
Ltd.*
Total 12,043,123.79 12,043,123.79 Not 6,610,383.10
Sale of goods/rendering of services:
Unit: RMB
Related party Contents of transaction Amount in the current period Amount in last year
Suzhou Jinhu Property Decoration curtain wall
52,969,607.31 142,704,259.15
Development Co., Ltd. engineering and design
Suzhou Jinbai Hotel
Decoration engineering 15,440,691.47 142,338,041.03
Management Co., Ltd.
Zhejiang Tianyu Commercial
Decoration engineering and
Operation Management Co., 1,125,479.28 10,609,411.15
design
Ltd.
Suzhou LJT Intelligent Decoration engineering and
-482,110.08 2,489,321.77
Technology Co., Ltd. equipment
Delos (Suzhou) Well
Decoration engineering 110,145.63
Technology Ltd.
Suzhou Gold Mantis Culture Landscaping and property
446,519.56
Development Co., Ltd. services
Total 69,610,333.17 298,141,033.10
Notes to related-party transactions involving purchase and sale of goods, as well as receipt and rendering of services:
Note*：The transaction amount was negative primarily due to adjustments in the audit and
settlement.
(2) Management Entrustment and Contracting between the Company and Related Parties
The Company as the trustee of management/contractor:
Unit: RMB
Income
Trustee/contracte Basis for income
Trustor/contractor Type of asset Start date End date recognized in the
e determination
current period
Notes:
The Company as the trustor of management/contractee:
Unit: RMB
Basis for the Charges
Trustee/contracte
Trustor/contractor Type of asset Start date End date determination of recognized in the
e
charges current period
306
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Notes:
(3) Leases between the Company and Related Parties
The Company as the lessor:
Unit: RMB
Rental income recognized in the Rental income recognized last
Lessee Type of the leased asset
current period year
Suzhou Gold Mantis Enterprise
Building space 189,000.00 189,000.00
(Group) Co., Ltd.
Suzhou Gold Mantis
Building space 42,000.00 42,000.00
Investment Co., Ltd.
Suzhou BLM Technology Co.,
Building space 10,500.00 10,500.00
Ltd.
Suzhou Jinhu Property
Building space 42,000.00 42,000.00
Development Co., Ltd.
Suzhou Jinduoyun Information
Building space 10,500.00 10,500.00
Technology Co., Ltd.
Jiangsu Dongyi Software
Building space 10,500.00 10,500.00
Technology Co., Ltd.
Suzhou Gold Mantis 3D
Building space 84,000.00 84,000.00
Software Co., Ltd.
Suzhou Huizhu Information
Building space 84,000.00 84,000.00
Technology Co., Ltd.
Suzhou LJT Intelligent
Building space 1,078,600.00 1,078,600.00
Technology Co., Ltd.
Suzhou Gold Mantis Yihe
Building space 210,000.00 210,000.00
Technology Co., Ltd.
Suzhou Jinnuo Commercial
Building space 12,600.00 12,600.00
Factoring Co., Ltd.
Suzhou Gold Mantis Charity
Building space 10,500.00 10,500.00
Foundation
Suzhou Nuojin Investment Co.,
Building space 21,000.00 21,000.00
Ltd.
Gold Gain Investment Limited Building space 3,800.00 3,800.00
Suzhou Jinbai Hotel
Building space 2,800.00 7,000.00
Management Co., Ltd.
Delos (Suzhou) Well
Building space 12,600.00 25,200.00
Technology Ltd.
307
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Suzhou Gold Mantis Culture
Building space 1,115,300.00 1,216,700.00
Development Co., Ltd.
The Company as the lessee:
Unit: RMB
Rental expense recognized in Rental expense recognized last
Lessor Type of the leased asset
the current period year
Notes:
(4) Guarantees Provided between the Company and Related Parties
The Company as the guarantee provider:
Unit: RMB
Guaranteed party Amount of guarantee Start date End date Liability executed or not
Refined Decoration &
40,500,000.00 17 May 2019 16 May 2022 Not
Technology
Refined Decoration &
15,000,000.00 1 June 2020 31 May 2021 Not
Technology
Refined Decoration &
300,000,000.00 26 October 2020 26 October 2021 Not
Technology
Refined Decoration &
80,000,000.00 9 December 2020 9 December 2021 Not
Technology
Refined Decoration &
100,000,000.00 14 December 2020 13 December 2021 Not
Technology
Gold Mantis Landscape 50,000,000.00 18 June 2019 17 June 2020 Not
Gold Mantis Landscape 150,000,000.00 4 July 2019 4 July 2020 Not
Gold Mantis Landscape 60,000,000.00 22 April 2020 21 April 2021 Not
Gold Mantis Landscape 80,000,000.00 23 September 2020 23 September 2021 Not
Gold Mantis Curtain
200,000,000.00 31 May 2018 30 May 2019 Not
Wall
Gold Mantis Curtain
372,000,000.00 15 August 2019 14 August 2020 Not
Wall
Gold Mantis Curtain
100,000,000.00 11 December 2019 11 December 2020 Not
Wall
Gold Mantis Curtain
100,000,000.00 18 May 2020 18 May 2021 Not
Wall
Gold Mantis Curtain
200,000,000.00 5 June 2020 13 May 2021 Not
Wall
Gold Mantis Curtain 50,000,000.00 18 June 2020 18 June 2021 Not
308
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Wall
Gold Mantis Curtain
372,000,000.00 24 August 2020 23 August 2021 Not
Wall
Gold Mantis Curtain
60,000,000.00 4 November 2020 25 August 2021 Not
Wall
Gold Mantis Curtain
80,000,000.00 23 September 2020 23 September 2021 Not
Wall
Gold Mantis Curtain
170,000,000.00 1 December 2020 1 December 2021 Not
Wall
Gold Mantis Curtain
150,000,000.00 10 December 2020 9 December 2021 Not
Wall
Meiruide 250,000,000.00 26 October 2018 25 November 2019 Not
Meiruide 200,000,000.00 13 May 2019 15 April 2020 Not
Meiruide 100,000,000.00 28 May 2019 27 May 2020 Not
Meiruide 100,000,000.00 8 January 2020 8 January 2021 Not
Meiruide 100,000,000.00 17 March 2020 17 March 2021 Not
Meiruide 200,000,000.00 18 May 2020 18 May 2021 Not
Meiruide 200,000,000.00 5 June 2020 13 May 2021 Not
Meiruide 100,000,000.00 11 June 2020 11 June 2021 Not
Meiruide 250,000,000.00 10 August 2020 9 August 2021 Not
Meiruide 100,000,000.00 23 September 2020 23 September 2021 Not
Meiruide 200,000,000.00 24 September 2020 24 September 2021 Not
Meiruide 400,000,000.00 26 October 2020 26 October 2021 Not
Gold Mantis Supply
50,000,000.00 27 August 2019 27 August 2020 Not
Chain
Gold Mantis Supply
100,000,000.00 24 September 2019 24 September 2020 Not
Chain
Gold Mantis Supply
30,000,000.00 8 April 2020 7 April 2021 Not
Chain
Gold Mantis Supply
60,000,000.00 5 June 2020 13 May 2021 Not
Chain
Gold Mantis Supply
50,000,000.00 26 May 2020 25 May 2021 Not
Chain
Jijia Materials 60,000,000.00 5 June 2020 13 May 2021 Not
Gold Mantis East China 10,000,000.00 3 July 2020 3 July 2021 Not
Singapore Gold Mantis 82,669,200.00 28 August 2020 28 August 2021 Not
Singapore Gold Mantis 122,617,800.00 26 September 2020 25 September 2021 Not
309
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Not
Not
The Company as the guaranteed party:
Unit: RMB
Guarantee provider Amount of guarantee Start date End date Liability executed or not
Suzhou Gold Mantis
Enterprise (Group) Co., 345,000,000.00 20 June 2019 19 June 2033 Not
Ltd.
Notes to guarantees provided between the Company and related parties :
On 20 June 2019, the Company's subsidiary Shuicheng Ruitong obtained a long-term pledged
loan with a term of 168 months from Shuicheng County Sub-branch of Agricultural Development
Bank of China. This loan was pledged with the income from feasibility gap subsidies receivable by
Shuicheng Ruitong under the PPP Project (Phase II) Contract for Comprehensive Improvement of
Rural Human Settlements in Shuicheng County and was guaranteed by Suzhou Gold Mantis
Enterprise (Group) Co., Ltd.
(5) Loans between the Company and Related Parties
Unit: RMB
Related party Amount of loan Start date End date Note
Loans from related parties
Loans to related parties
(6) Asset Transfers and Debt Restructuring Involving Related Parties
Unit: RMB
Related party Contents of transaction Current period Last year
(7) Remuneration of Key Management
Unit: RMB
Item Current period Last year
Accrued remuneration of key management 9,851,500.00 8,622,600.00
(8) Other Related-party Transactions
① In 2020, the Company as well as its subsidiaries including Meiruide, Gold Mantis Curtain
Wall, Gold Mantis Landscape, Refined Decoration & Technology, Gold Mantis Art, Jindejin
Construction and Huali Jinshi paid Suzhou Virtues Construction Professional Training School
310
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
training fees of RMB1,707,800 in total; the Company as well as its subsidiaries including Meiruide,
Gold Mantis Curtain Wall and Gold Mantis Landscape paid Virtues Professional Training School of
Suzhou Industrial Park training fees of RMB188,800 in total.
② In December 2020, the Company donated RMB3 million to Suzhou Gold Mantis Charity
Foundation.
6. Amounts Receivable from or Payable to Related Parties
(1) Amounts Receivable from Related Parties
Unit: RMB
Closing balance Opening balance
Item Related party Allowances for Allowances for
Gross amount Gross amount
doubtful accounts doubtful accounts
Suzhou Jinbai Hotel
Accounts receivable Management Co., 38,096,160.80 1,904,808.04 49,816,293.87 2,490,814.69
Ltd.
Suzhou Jinbai Hotel
Contract assets Management Co., 4,792,905.47 239,645.27
Ltd.
Suzhou Jinhu
Property
Accounts receivable 32,390,086.28 1,619,504.31 17,847,500.40 892,375.02
Development Co.,
Ltd.
Suzhou Jinhu
Property
Contract assets 23,633,878.71 1,181,693.94
Development Co.,
Ltd.
Zhejiang Tianyu
Commercial
Accounts receivable Operation 6,891,246.53 344,562.33 6,790,500.00 339,525.00
Management Co.,
Ltd.
Zhejiang Tianyu
Commercial
Contract assets Operation 576,025.87 28,801.29
Management Co.,
Ltd.
Suzhou LJT
Accounts receivable 11,155.00 557.75 1,182,100.00 59,105.00
Intelligent
311
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Technology Co., Ltd.
Suzhou LJT
Contract assets Intelligent 59,445.00 2,972.25
Technology Co., Ltd.
Delos (Suzhou) Well
Accounts receivable 31,702.05 9,510.62 241,739.00 24,173.90
Technology Ltd.
Suzhou Gold Mantis
Culture
Accounts receivable 110,005.79 5,500.29 983,833.91 49,191.70
Development Co.,
Ltd.
Suzhou Gold Mantis
Culture
Contract assets 901,898.18 45,094.91
Development Co.,
Ltd.
(2) Amounts Payable to Related Parties
Unit: RMB
Item Related party Closing balance Opening balance
Suzhou Huizhu Information
Accounts payable 311,660.00 465,770.00
Technology Co., Ltd.
Suzhou BLM Technology Co.,
Accounts payable 881,695.91 259,507.25
Ltd.
Delos (Suzhou) Well
Accounts payable 216,686.60 210,488.43
Technology Ltd.
Suzhou Gold Mantis 3D
Accounts payable 180,000.00 200,000.00
Software Co., Ltd.
Suzhou LJT Intelligent
Accounts payable 7,996,178.00 14,178.00
Technology Co., Ltd.
Delos (Suzhou) Well
Other payables 23,040.00
Technology Ltd.
Suzhou Gold Mantis Culture
Other payables 20,000.00
Development Co., Ltd.
312
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
7. Commitments Involving Related Parties
8. Other
XIII Share-based Payments
1. The Overall Situation of Share-Based Payments
√ Applicable □ Not applicable
Unit: RMB
Total amount of various equity instruments granted by the Company
0.00
during the current period
Total amount of various equity instruments exercised by the Company
0.00
during the current period
Total amount of various equity instruments invalidated during the current
1,050,000.00
period of the Company
The scope of exercise prices of other equity instruments issued by the RMB3.99 per share, the remaining term of contracts
Company at the end of the reporting period and the remaining term of was 23 months; RMB4.01 per share, the remaining term
contracts of contracts was 36 months;
Other information:
2. Equity-settled Share-based Payments
√ Applicable □ Not applicable
Unit: RMB
First grant: *
Methods for determining the fair value of equity instruments on the
Grant of the reserved portion: The closing price of the
grant date
Company's stock on the grant date
Basis for determining the number of feasible right equity
To be determined by the number of actually exercised rights
instruments
Equity-settled share-based payments were included in the
86,866,866.67
cumulative amount of capital reserves
Total expenses recognized in equity-settled share-based payments
3,579,166.67
for the current period
Other information:
Note*: For incentive objects who are not Board Members or officers of the Company, the fair
value of restricted shares is equal to the closing price on the grant date; for the fair value of
restricted shares granted to Board Members and officers, the Company uses the Black-Scholes
model (B-S model) as the pricing model to determine the fair value of the restricted shares after
deducting the cost of restrictive factors.
313
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
In accordance with the Proposal on the Company's 2018 Restricted Share Incentive Scheme
(Draft) and Its Summary deliberated and approved at the 1st Extraordinary General Meeting of the
Company of 2018 and the resolution of the 13th Extraordinary Meeting of the 5th Board of
Directors, the Company granted a total of 33.10 million restricted shares to 32 restricted shar e
incentive objects, including Wang Hanlin, Cao Liming and Shi Guoping, and the issue price was
RMB3.99 per share. The share incentive scheme was divided into three phases and the restricted
shares were unlocked proportionally. When confirming the share-based payment expenses,
accounting treatment was performed by regarding it as three independent share-based payment
schemes.
In accordance with the Proposal on the Company's 2018 Restricted Share Incentive Scheme
(Draft) and Its Summary deliberated and approved at the Company's 1st Extraordinary General
Meeting of 2018 and the resolution of the 1st Extraordinary Meeting of the 6th Board of Directors
of 2019, the Company granted 8.00 million reserved restricted shares to 14 restricted share
incentive objects, including Wang Zhenlong and Gao Hongqiang, and the issue price was RMB4.01
per share. The share incentive scheme was divided into three phases and the restricted shares were
unlocked proportionally. When confirming the share-based payment expenses, accounting treatment
was performed by regarding it as three independent share-based payment schemes.
The phasing and unlocking conditions of the share incentive scheme are as follows:
Lifting restriction Lifting restriction time Performance appraisal objectives Proportion of the
period number of restricted
shares lifted in
restricted shares
granted for the first
time
1st lifting From the first trading day 12 30%
The Company should meet one of
restriction period months after the completion date
the following two conditions:
of the first grant of partial
1. Based on the operating revenue in
restricted shares to the day of the
2018, the growth rate of the
last trading day within 24 months
operating revenue in 2019 shall be
after the completion date of the
not less than 20%;
first grant of partial restricted
2. Based on the net profit in 2018,
shares
the growth rate of the net profit in
2019 shall be not less than 15%.
2nd lifting From the first trading day 24 30%
The Company should meet one of
restriction period months after the completion date
the following two conditions:
of the first grant of partial
1. Based on the operating revenue in
restricted shares to the day of the
2018, the growth rate of the
last trading day within 36 months
operating revenue in 2019 shall be
after the completion date of the
not less than 40%;
first grant of partial restricted
2. Based on the net profit in 2018,
shares
the growth rate of the net profit in
2019 shall be not less than 30%.
314
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
3rd lifting From the first trading day 36 40%
The Company should meet one of
restriction period months after the completion date
the following two conditions:
of the first grant of partial
1. Based on the operating revenue in
restricted shares to the day of the
2018, the growth rate of the
last trading day within 48 months
operating revenue in 2019 shall be
after the completion date of the
not less than 60%;
first grant of partial restricted
2. Based on the net profit in 2018,
shares
the growth rate of the net profit in
2019 shall be not less than 45%.
Based on the grant date of restricted shares and the best estimate of restricted shares at the end
of the year, the Company's exercise expenses in relevant years were estimated as follows:
(Unit: RMB'0,000)
Item 2020 2021 2022 Total
Expenses of the first grant of share -744.08 1,571.25 - 827.17
incentive
Expenses of the grant of reserved share 1,102.00 371.2 340.27 1,813.47
incentive
Total 357.92 1,942.45 340.27 2,640.64
In May 2020, in accordance with the resolution of the 2019 Annual General Meeting and the
Proposal on Repurchase and Cancellation of Some Restricted Shares deliberated and approved at the
5th Meeting of the 6th Board of Directors of 2020, Yang Peng and Xie Jinjun, the original incentive
objects, had left the Company and did not meet the incentive conditions, so the Company repurchased
and canceled 1,050,000.00 restricted shares granted to them but not yet unlocked according to the
relevant provisions of the Company's share incentive scheme.
In May 2020, in accordance with the resolution of the 2019 Annual General Meeting and the
Proposal on the Achievement of Lifting the Restriction Conditions in the First Lifting Restriction
Period for the First Grant Portion of the 2018 Restricted Share Incentive Scheme, the number of
restricted shares that can be applied to unlock this time was 9,615,000.00, and the listing and trading
date of the restricted shares during the current period was 9 June 2020.
3. Cash-settled Share-based Payments
□ Applicable √ Not applicable
4. Modification and Termination of Share-based Payments
5. Other Information
315
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
XIV Commitments and Contingencies
1. Significant Commitments
Significant valid commitments on the balance sheet date:
(1) Guarantee Letters Issued as of 31 December 2020
Type Amount
Performance bonds 1,017,697,981.45
Advance payment guarantees 400,105,438.93
Bid security forms 31,375,000.00
Quality guarantees 9,430,618.17
Guarantees for payment of salaries 10,972,882.92
Total 1,469,581,921.47
(2) As of 31 December 2020, save as disclosed above, there were no significant commitments
that require to be disclosed.
2. Contingencies
(1) Significant Valid Contingencies on the Balance Sheet Date
2. Contingencies
(1) Contingent Liabilities Arising from the Provision of Debt Guarantees for Other Entities and the
Financial Effects
See XII (5) in Part XII for guarantees between the Company and its subsidiaries as of 31
December 2020.
(2) As of 31 December 2020, save as disclosed above, there were no significant contingencies that
require to be disclosed.
(2) The Company shall make it clear if it has no significant contingencies that require to be disclosed.
There were no significant contingencies that require to be disclosed.
3. Other Information
XV Events after the Balance Sheet Date
1. Significant Non-adjustment Matters
Unit: RMB
Effects on the financial Reason for inability to estimate
Item Contents
condition and operating results the affected amount
316
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
2. Profit Distribution
Unit: RMB
Profit or dividends to be distributed 536,671,737.80
Approved and declared profit or dividends to be distributed 536,671,737.80
3. Return of Sales
4. Other Events after the Balance Sheet Date
A. Incorporation, Acquisition, and De-registration of Subsidiaries after the Balance Sheet
Date
In January 2021, subsidiary Home Decoration E-commerce incorporated majority-owned
subsidiary Suzhou Tangbao Technical Service Co., Ltd.
During the period from January to March 2021, subsidiary Home Decoration E-commerce
de-registered Quzhou Gold Mantis Home E-commerce Co., Ltd. and Lishui Gold Mantis Home
E-commerce Co., Ltd.
In January 2021, subsidiary Gold Mantis International de-registered Jining Gold Mantis
Construction Engineering Co., Ltd.
In January 2021, the Company acquired 100% interest in Home Decoration E-commerce
held by Prefabricated Construction Technology, a majority-owned subsidiary of the Company.
Therefore, Home Decoration E-commerce has become a wholly-owned subsidiary of the
Company.
B. Repurchase of Shares
On 31 March 2021, the Proposal on the Share Repurchase Scheme of the Company was
deliberated and approved at the 3rd Extraordinary Meeting of the 6th Board of Directors of the
Company, which planned to repurchase the shares of the Company with its own funds in the form
of call auction and use such repurchased shares to implement the share incentive or Employee Stock
Ownership Plan. The total amount of this repurchase was not more than RMB300.00 million
(inclusive) and not less than RMB150.00 million (inclusive). The price of the repurchased shares
was not more than RMB15 per share. If calculated at the maximum amount of repurchase funds and
the ceiling on the share repurchase price, it was estimated that the number of shares to be
repurchased was approximately 20,000,000, accounting for about 0.75% of the Company's current
share capital. If calculated at the minimum amount of repurchase funds and the ceiling on the shar e
repurchase price, it was estimated that the number of shares to be repurchased was approximately
10,000,000, accounting for about 0.37% of the Company's current share capital. The specific
number of repurchased shares shall be subject to the actual number of shares repurchased at the
expiration of the repurchase period.
C. Other Events after the Balance Sheet Date
On 15 January 2021, the Proposal on the Achievement of Lifting the Restriction Conditions in
the First Lifting Restriction Period for the First Grant Portion of the 2018 Restricted Share Incentive
317
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Scheme was deliberated and approved at the 2nd Extraordinary Meeting of the 6th Board of Directors
and the 2nd Extraordinary Meeting of the 6th Supervisory Committee. It was believed that the lifting
restriction conditions for the restricted shares reserved under the Company's 2018 restricted share
incentive scheme in the first lifting restriction period were achieved. It was therefore agreed that the
Company would handle matters related to lifting restrictions for eligible incentive objects in
accordance with the relevant provisions of the incentive scheme after the expiration of the first
restriction period of reserved restricted shares. 14 incentive objects met the conditions for lifting
restrictions this time, 2.40 million restricted shares were lifted this time, accounting for 0.09% of the
Company's current share capital, and the listing and trading date of the restricted shares lifted this
time was 27 January 2021.
As of 28 April 2021, save as disclosed above, there are no other events after the balance sheet
date that require to be disclosed.
XVI Other Significant Events
1. Correction of Prior Accounting Errors
(1) Retrospective Restatement Method
Unit: RMB
Affected statement items of
Accounting error corrected Procedure of treatment Cumulative effects
comparative periods
(2) Prospective Application Method
Reason for adopting the prospective
Accounting error corrected Procedure of approval
application method
2. Debt Restructuring
3. Asset Swaps
(1) Swaps of Non-monetary Assets
(2) Swaps of Other Assets
4. Annuity Plans
5. Discontinued Operations
Unit: RMB
318
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Net profit of
discontinued
operations
Income tax
Item Revenue Expense Gross profit Net profit attributable to
expense
owners of the
Company as the
parent
Other information:
6. Segment Information
(1) Basis for the Determination of Reporting Segments and Accounting Policies
Factors taken into account in the determination of reporting segments:
The Company determined reporting segments based on product segments while taking into
account the internal organziational structure, management requirements, the internal reporting
system, etc.
(2) Financial Information of Reporting Segments
Unit: RMB
Construction Offset between
Item Manufacturing Others Total
decoration segments
Revenue of core
30,117,163,022.25 954,085,964.93 96,722,042.10 31,167,971,029.28
businesses
Costs of core
25,135,776,779.73 877,506,030.76 27,949,300.30 26,041,232,110.79
businesses
(3) Reasons shall be given if the Company has no reporting segments or is unable to disclose the total assets
and liabilities of the reporting segments.
(4) Other Information
(2) Core Businesses (by Product Category)
Product category 2020 2019
Revenue of core Costs of core Revenue of core Costs of core
businesses businesses businesses businesses
Decoration 27,939,943,817.80 23,605,931,194.94 27,172,714,036.71 22,528,609,783.38
Design 1,501,558,913.30 928,786,610.87 1,823,521,929.28 1,055,748,002.20
Curtain wall 1,637,205,437.26 1,479,454,103.65 1,726,158,637.26 1,547,342,368.64
319
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Others 89,262,860.92 27,060,201.33 70,528,086.58 25,421,317.32
Total 31,167,971,029.28 26,041,232,110.79 30,792,922,689.83 25,157,121,471.54
7. Other Significant Transactions and Matters that may Affect Decision-Making of Investors
8. Other Information
As of 31 December 2020, save as disclosed above, there were no other significant events that
require to be disclosed.
XVII Notes to Key Items of the Financial Statement of the Company as the Parent
1. Accounts Receivable
(1) Accounts Receivable by Type
Unit: RMB
Closing balance Opening balance
Allowance for Allowance for
Gross amount Gross amount
doubtful account doubtful account
Type Allowanc Carrying Allowanc Carrying
Percenta e amount Percentag e amount
Amount Amount Amount Amount
ge percentag e percentag
e e
Accounts receivable
for which the
allowances for 127,588, 123,375, 4,212,754 56,343,55 52,130,80 4,212,754.8
1.17% 96.70% 0.58% 92.52%
doubtful accounts are 535.17 780.37 .80 9.00 4.20 0
established on the
individual basis
Including:
Accounts receivable
for which the
10,808,2
allowances for 1,234,38 9,573,841 9,680,400 1,135,176 8,545,223,9
25,625.5 98.83% 11.42% 4.20% 11.73%
doubtful accounts are 3,782.06 ,843.49 ,290.59 ,365.99 24.60
5
established on the
grouping basis
Including:
Group of related 148,332, 148,332,0 211,477,6 211,477,69
1.36% 2.17%
parties 023.08 23.08 94.16 4.16
320
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
10,659,8
Group of non-related 1,234,38 9,425,509 9,468,922 1,135,176 8,333,746,2
93,602.4 97.47% 11.58% 97.25%
parties 3,782.06 ,820.41 ,596.43 ,365.99 30.44
7
10,935,8
1,357,75 9,578,054 9,736,743 1,187,307 8,549,436,6
Total 14,160.7 100.00% 12.42% 100.00% 12.19%
9,562.43 ,598.29 ,849.59 ,170.19 79.40
2
Allowances for doubtful accounts established on the individual basis: RMB 123,375,780.37
Unit: RMB
Closing balance
Entity Allowance for doubtful
Gross amount Allowance percentage Reason for allowance
account
Kangde Composites Co.,
24,448,081.36 24,448,081.36 100.00% Expectedly irrecoverable
Ltd.
Chongqing Forebase
Industrial Investment 21,846,558.74 21,846,558.74 100.00% Expectedly irrecoverable
(Holdings) Co., Ltd.
Xiamen Shiqiao
Investment Management 21,063,774.00 16,851,019.20 80.00% Based on expected loss
Co., Ltd.
Jiangsu Shenghe Tourism
15,988,000.49 15,988,000.49 100.00% Expectedly irrecoverable
Development Co., Ltd.
Chenzhou Jinhuang
Hotel Management Co., 15,778,879.42 15,778,879.42 100.00% Expectedly irrecoverable
Ltd.
Jiangsu Zhonghao
10,580,950.57 10,580,950.57 100.00% Expectedly irrecoverable
Holding Group Co., Ltd.
Beijing Hanergy PV
10,286,740.59 10,286,740.59 100.00% Expectedly irrecoverable
Investment Co., Ltd.
Zhengzhou Hemei
Women and Children's 7,595,550.00 7,595,550.00 100.00% Expectedly irrecoverable
Hospital Co., Ltd.
96.70% Expectedly irrecoverable
Total 127,588,535.17 123,375,780.37 -- --
Allowances for doubtful accounts established on the individual basis:
Unit: RMB
Closing balance
Entity Allowance for doubtful
Gross amount Allowance percentage Reason for allowance
account
Allowances for doubtful accounts established on the grouping basis: RMB0
321
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Unit: RMB
Closing balance
Entity
Gross amount Allowance for doubtful account Allowance percentage
Xi’an Hi-tech Zone Jinchuang
Commercial Operation
73,936,930.26
Management and Development
Co., Ltd.
Suzhou Jijia Materials Co., Ltd. 42,345,975.63
Suzhou Meiruide Construction
11,123,010.10
Decoration Co., Ltd.
GMI Construction Corp. 8,024,359.64
Gold Mantis (Vietnam)
6,781,889.75
Construction Company Limited
Gold Mantis (International)
Construction Decoration 4,486,997.11
Limited
Gold Mantis Prefabricated
Construction Technology 1,279,152.47
(Suzhou) Co., Ltd.
Suzhou Gold Mantis Landscape
327,308.12
Co., Ltd.
Archi-Feeling Design (SuZhou)
26,400.00
Co., Ltd.
Total 148,332,023.08 --
Grouping basis:
No allowances for doubtful accounts were established for entities within the consolidation scope.
Allowances for doubtful accounts established on the grouping basis: RMB1,234,383,782.06
Unit: RMB
Closing balance
Item
Gross amount Allowance for doubtful account Allowance percentage
Within 1 year 8,369,093,195.20 418,454,659.76 5.00%
1-2 years 1,091,170,333.38 109,117,033.34 10.00%
2-3 years 465,539,333.26 139,661,799.98 30.00%
3-4 years 266,935,776.65 133,467,888.33 50.00%
4-5 years 167,362,816.66 133,890,253.33 80.00%
Over 5 years 299,792,147.32 299,792,147.32 100.00%
Total 10,659,893,602.47 1,234,383,782.06 --
Grouping basis:
322
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Accounts receivable as at 31 December 2020 for which allowances were established based on
the group of non-related parties
Allowances for doubtful accounts established on the grouping basis:
Unit: RMB
Closing balance
Item
Gross amount Allowance for doubtful account Allowance percentage
Grouping basis:
Where allowances for doubtful accounts receivable are established using the general model of expected credit loss, please dis close
allowance information as other receivables.
□ Applicable √ Not applicable
By aging:
Unit: RMB
Aging Gross amount
Within 1 year (inclusive) 8,472,482,128.36
1-2 years 1,126,998,559.61
2-3 years 558,768,442.94
Over 3 years 777,565,029.81
3-4 years 310,410,065.83
4-5 years 167,362,816.66
Over 5 years 299,792,147.32
Total 10,935,814,160.72
(2) Allowances for Doubtful Accounts Established or Reversed in the Current Period
Allowances for doubtful accounts in the current period:
Unit: RMB
Change in the current period
Type Opening balance Closing balance
Established Reversed Written off Others
Allowances for
doubtful accounts
52,130,804.20 81,213,348.62 9,968,372.45 123,375,780.37
established on the
individual basis
Allowances for
doubtful accounts
1,135,176,365.99 108,254,809.07 9,047,393.00 1,234,383,782.06
established on the
grouping basis
Total 1,187,307,170.19 189,468,157.69 19,015,765.45 1,357,759,562.43
323
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Significant reversed allowances for doubtful accounts in the current period:
Unit: RMB
Entity Amount reversed Way of recovery
(3) Accounts Receivable Written Off in the Current Period
Unit: RMB
Item Amount written off
Accounts receivable written off 19,015,765.45
Significant accounts receivable written off:
Unit: RMB
Arising from a
Nature of account Write-off procedure
Entity Amount written off Reason for write-off related-party
receivable executed
transaction or not
Zhejiang Zhongqing Engineering Expectedly Approval procedure
9,968,372.45 Not
Real Estate Co., Ltd. payment irrecoverable for write-offs
Liaoning Bihu Hot
Engineering Expectedly Approval procedure
Spring Club 7,047,393.00 Not
payment irrecoverable for write-offs
Management Co., Ltd.
Foshan International
Engineering Expectedly Approval procedure
Furniture EXPO 2,000,000.00 Not
payment irrecoverable for write-offs
MALL
Total -- 19,015,765.45 -- -- --
Notes:
(4) Top Five Entities with Respect to Accounts Receivable
Unit: RMB
Closing balance of accounts As a % of the closing balance of Closing balance of allowances
Entity
receivable total accounts receivable for doubtful accounts
Entity 1 462,637,728.73 4.23% 23,131,886.44
Entity 2 141,511,109.64 1.29% 7,075,555.48
Entity 3 135,741,214.70 1.24% 6,787,060.74
Entity 4 120,928,130.57 1.11% 6,046,406.53
Entity 5 119,712,118.87 1.10% 5,985,605.94
Total 980,530,302.51 8.97%
324
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
(5) Accounts Receivable Derecognized due to Transfer of Financial Assets
Way of transfer of financial assets Amount of accounts receivable Gain or loss on derecognition
derecognized
Factoring of accounts receivable 473,441,103.31 -23,282,185.98
In 2020, the Company as the parent transferred, without recourse, accounts receivable of
RMB473,441,103.31 to financial institutions, and the relevant loss stood at RMB23,282,185.98.
(6) Assets and Liabilities Arising from Continuing to Involve in Accounts Receivable upon Transfer
Other information:
2. Other Receivables
Unit: RMB
Item Closing balance Opening balance
Dividends receivable 40,000,000.00 40,000,000.00
Other receivables 295,745,131.01 329,029,544.53
Total 335,745,131.01 369,029,544.53
(1) Interest Receivable
1) Interest Receivable by Type
Unit: RMB
Item Closing balance Opening balance
2) Substantial Interest Overdue
Any impairment and
Borrower Closing balance Overdue time Reason basis for impairment
judgment
Other information:
3) Allowances for Doubtful Interest Receivable
□ Applicable √ Not applicable
325
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
(2) Dividends Receivable
1) Dividends Receivable by Type
Unit: RMB
Item (or investee) Closing balance Opening balance
Suzhou Gold Mantis Landscape Co., Ltd. 40,000,000.00 40,000,000.00
Total 40,000,000.00 40,000,000.00
2) Substantial Dividends Receivable Over 1 Year
Unit: RMB
Any impairment and
Reason for being
Item (or investee) Closing balance Aging basis for impairment
outstanding
judgment
3) Allowances for Doubtful Dividends Receivable
□ Applicable √ Not applicable
Other information:
(3) Other Receivables
1) Other Receivables by Nature
Unit: RMB
Nature of other receivable Closing balance Opening balance
Internal current accounts 194,097,292.19 227,041,086.85
Security deposits 154,539,803.28 153,003,005.75
Others 11,481,548.41 15,157,554.75
Less: allowances for doubtful accounts -64,373,512.87 -66,172,102.82
Total 295,745,131.01 329,029,544.53
2) Allowances for Doubtful Other Receivables
Unit: RMB
Stage 1 Stage 2 Stage 3
Lifetime expected credit Lifetime expected credit
Allowances 12-month expected Total
loss (without credit loss (with credit
credit loss
impairment) impairment)
326
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Balance as at 1 January
66,172,102.82 66,172,102.82
2020
Balance as at 1 January
2020 in the current —— —— —— ——
period
Established in the current
-1,648,589.95 -1,648,589.95
period
Written off in the current
150,000.00 150,000.00
period
Balance as at 31
64,373,512.87 64,373,512.87
December 2020
Balances with significant changes in loss allowances in the current period:
□ Applicable √ Not applicable
By aging:
Unit: RMB
Aging Closing balance
Within 1 year (inclusive) 257,704,366.85
1-2 years 31,799,170.69
2-3 years 11,146,588.48
Over 3 years 59,468,517.86
3-4 years 7,561,596.90
4-5 years 3,888,002.92
Over 5 years 48,018,918.04
Total 360,118,643.88
3) Allowances for Doubtful Other Receivables Established or Reversed in the Current Period
Allowances for doubtful other receivables in the current period:
Unit: RMB
Opening Change in the current period
Type Closing balance
balance Established Reversed Written off Others
Established on the
66,172,102.82 -1,648,589.95 150,000.00 64,373,512.87
grouping basis
Total 66,172,102.82 -1,648,589.95 150,000.00 64,373,512.87
Significant reversed allowances in the current period:
Unit: RMB
Entity Amount reversed Way of recovery
327
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
4) Other Receivables Written off in the Current Period
Unit: RMB
Item Amount written off
Other receivables written off 150,000.00
Significant other receivables written off:
Unit: RMB
Arising from a
Nature of other Write-off procedure
Entity Amount written off Reason for write-off related-party
receivable executed
transaction or not
Notes:
5) Top Five Entities with Respect to Other Receivables
Unit: RMB
Closing balance of
As a % of the closing
Nature of other allowances for
Entity Closing balance Aging balance of total other
receivable doubtful other
receivables
receivables
Internal current
Entity 1 160,759,691.66 Within 1 year 44.64%
accounts
Security deposit for
Entity 2 39,484,676.77 Over 5 years 10.96% 39,484,676.77
engineering project
Internal current
Entity 3 21,594,590.98 Within 1 year 6.00%
accounts
Internal current
Entity 4 11,722,739.77 2-4 years 3.25%
accounts
Security deposit for
Entity 5 10,573,100.00 0-2 years 2.94% 1,050,859.43
execution
Total -- 244,134,799.18 -- 67.79% 40,535,536.20
6) Other Receivables Associated with Government Grants
Unit: RMB
Expected time of receipt
Title of government and amount to be
Entity Closing balance Closing aging
grant received, as well as
judgment basis
328
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
7) Other Receivables Derecognized due to Transfer of Financial Assets
8) Assets and Liabilities Arising from Continuing to Involve in Other Receivables upon Transfer
Other information:
3. Long-term Equity Investments
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Gross amount Carrying amount Gross amount Carrying amount
allowances allowances
Investments in
2,504,132,432.26 2,504,132,432.26 2,438,659,209.93 2,438,659,209.93
subsidiaries
Investments in
joint ventures and 11,530,042.59 11,530,042.59
associates
Total 2,504,132,432.26 0.00 2,504,132,432.26 2,450,189,252.52 0.00 2,450,189,252.52
(1) Investments in Subsidiaries
Unit: RMB
Opening Change in the current period
Closing balance Closing balance
balance
Investee Additional Reduced Impairment (carrying of impairment
(carrying Others
investment investment allowance amount) allowance
amount)
Suzhou Gold
Mantis
500,000,000.0
Construction 500,000,000.00
0
Investment Co.,
Ltd.
Suzhou Gold
420,014,675.5
Mantis Curtain 420,014,675.50
0
Wall Co., Ltd.
Singapore Gold 274,808,342.5
3,032,422.33 277,840,764.83
Mantis Pte. Ltd. 0
Suzhou
Meiruide
244,883,165.5
Construction 244,883,165.56
6
Decoration Co.,
Ltd.
329
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Shuicheng
Ruitong
Construction 234,034,290.0
234,034,290.00
and 0
Development
Co., Ltd.
Gold Mantis
(International)
135,387,794.6
Construction 61,410,800.00 196,798,594.66
6
Decoration
Limited
Gold Mantis
Municipal
Engineering 122,000,000.0
122,000,000.00
Construction 0
(Guizhou) Co.,
Ltd.
Suzhou
Industrial Park
Jindejin 113,792,000.0
1,030,000.00 114,822,000.00
Construction 0
Engineering
Co., Ltd.
Gold Mantis
105,700,000.0
E-commerce 105,700,000.00
0
Co., Ltd.
Suzhou Gold
Mantis 100,000,000.0
100,000,000.00
Landscape Co., 0
Ltd.
Suzhou
Industrial Park
Gold Mantis
Furniture 64,583,418.38 64,583,418.38
Design and
Manufacturing
Co., Ltd.
Xi’an Hi-tech
Zone Jinchuang
Commercial 58,555,500.00 58,555,500.00
Operation
Management
330
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
and
Development
Co., Ltd.
Gold Mantis Art
15,000,000.00 15,000,000.00
Co., Ltd.
Liaoning Gold
Mantis
Construction 10,000,000.00 10,000,000.00
Decoration Co.,
Ltd.
Suzhou Jijia
Materials Co., 10,000,000.00 10,000,000.00
Ltd.
Archi-Feeling
Design
7,700,000.00 7,700,000.00
(SuZhou) Co.,
Ltd.
Suzhou Huali
Jinshi
Construction 7,200,000.00 7,200,000.00
Decoration Co.,
Ltd.
Gold Mantis
North China
(Beijing)
Construction 6,000,000.00 6,000,000.00
Decoration
Engineering
Co., Ltd.
Gold Mantis
East China
Construction 5,000,000.00 5,000,000.00
Decoration Co.,
Ltd.
Suzhou Jinpu
No. 9 Cultural
Industrial 4,000,000.00 4,000,000.00
Development
Co., Ltd.
Sierra Gold
Mantis Joint 23.33 23.33
Venture
331
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
(Private)
Limited
2,438,659,209. 2,504,132,432.
Total 65,473,222.33
93 26
(2) Investments in Joint Ventures and Associates
Unit: RMB
Change in the current period
Return
on Closing
Opening investme Adjustme Closing balance
Declared
balance Reduced nt nt to other Other Impairme balance of
Investee Additional cash
(carrying investme recogniz comprehe equity nt Others (carrying impairme
investment dividends
amount) nt ed using nsive changes allowance amount) nt
or profit
the income allowance
equity
method
1. Joint ventures
2. Associates
Zhejiang
Tianyu
Commerc
ial 11,530,04 9,139,622 -2,390,42
0.00 0.00
Operation 2.59 .09 0.50
Managem
ent Co.,
Ltd.
11,530,04 9,139,622 -2,390,42
Subtotal
2.59 .09 0.50
11,530,04 9,139,622 -2,390,42
Total
2.59 .09 0.50
(3) Other Information
On 22 December 2017, the Company and its subsidiary Refined Decoration & Technology
invested to establish Zhejiang Tianyu Commercial Operation Management Co., Ltd. jointly with
Zhongtian Holdings Group Co., Ltd., with a registered capital of RMB50 million. Specifically, the
Company contributed RMB17.50 million, accounting for 35.00% of the registered capital; Refined
Decoration & Technology contributed RMB7.50 million, accounting for 15.00% of the registered
capital. Since the Company was able to exert a significant influence on Zhejiang Tianyu Commercial
Operation Management Co., Ltd., the equity method was adopted for accounting.
332
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
In September 2020, the Company and its subsidiary Refined Decoration & Technology
transferred their 50% stake in Zhejiang Tianyu Commercial Operation Management Co., Ltd. to
Hangzhou Tianshuo Apartment Management Co., Ltd. based on the Agreement on Equity Transfer
and Relevant Matters signed between the Company and its subsidiary Refined Decoration &
Technology and Hangzhou Tianshuo Apartment Management Co., Ltd., and the registration of
industrial and commercial changes was completed on 29 October 2020.
4. Operating Revenue and Cost of Sales
Unit: RMB
Current period Last year
Item
Revenue Costs Revenue Costs
Core businesses 19,445,885,694.44 16,079,983,238.34 18,377,524,760.69 14,954,507,348.54
Other businesses 42,556,252.10 6,765,516.71 29,910,400.52 4,201,238.05
Total 19,488,441,946.54 16,086,748,755.05 18,407,435,161.21 14,958,708,586.59
Revenue information:
Unit: RMB
By contract category Segment 1 Segment 2 Total
Of which:
Of which:
Of which:
Of which:
Of which:
Of which:
Of which:
Information related to performance obligations:
None
Information related to the transaction price allocated to residual performance obligations:
At the end of the Reporting Period, the amount of income corresponding to performance obligations that had been contracted bu t not
yet performed or fully performed was RMB16,343,266,487.17, of which RMB was expected to be recognized in year , RMB
was expected to be recognized in year , and RMB was expected to be recognized in year .
Other information:
(1) Top Five Customers with Respect to Operating Revenue
Customer Operating revenue generated As a % of the total
from the customer operating revenue
Customer 1 3,944,681,195.05 20.24
Customer 2 1,108,396,916.19 5.69
Customer 3 344,326,369.83 1.77
333
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Customer 4 262,020,032.31 1.34
Customer 5 218,894,281.29 1.12
Total 5,878,318,794.67 30.16
5. Return on investment
Unit: RMB
Item Current period Last year
Return on long-term equity investments
-2,390,420.50 -4,226,587.96
measured using the equity method
Income from the disposal of long-term
8,360,377.91
equity investments
Income from the disposal of held-for-trading
19,931,299.18 23,039,034.33
financial assets
Income derived during the period of holding
887,120.46 4,367,000.00
other non-current financial assets
Income from the disposal of other
23,774,839.16
non-current financial assets
Return on long-term equity investments
100,000,000.00
measured using the cost method
Interest expense on discounted receivables
-4,770,456.83 -2,596,842.70
financing
Total 22,017,920.22 144,357,442.83
6. Other Information
XVIII Supple mentary Information
1. Schedule of Exceptional Gains and Losses in the Current Period
√ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gain or loss on disposal of non-current
16,701,006.66
assets
Government grants through profit or loss
(exclusive of government grants given in the
54,243,752.72
Company’s ordinary course of business at
fixed quotas or amounts as per the
334
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
government’s uniform standards)
Capital occupation charges on non-financial
enterprises that are recognized in profit or 1,428,722.80
loss
Gain or loss on fair-value changes on
held-for-trading and derivative financial
assets and liabilities & income from disposal
of held-for-trading and derivative financial
35,346,523.09
assets and liabilities and other debt
investments (exclusive of the effective
portion of hedges that arise in the
Company’s ordinary course of business)
Reversed portions of impairment allowances
for receivables and contract assets which are 3,356,920.55
tested individually for impairment
Non-operating income and expense other
-3,385,100.86
than the above
Less: Income tax effects 19,092,692.94
Non-controlling interests effects (net
3,965,266.47
of tax)
Total 84,633,865.55 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or liste d in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public —Exceptional Gain/Loss
Items:
□ Applicable √ Not applicable
2. Return on Equity (ROE) and Earnings per Share (EPS)
EPS
Profit of the Reporting Period Weighted average ROE Diluted EPS
Basic EPS (RMB/share)
(RMB/share)
Net profit attributable to ordinary
14.83% 0.88 0.89
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company 14.30% 0.85 0.86
before exceptional ga ins and losses
335
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
3. Accounting Data Differences under China’s Accounting Standards for Business Enterprises (CAS) and
International Financial Reporting Standards (IFRS) and Foreign Accounting Standards
(1) Net Profit and Equity under CAS and IFRS
□ Applicable √ Not applicable
(2) Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
(3) Please explain reasons for accounting data differences under CAS and IFRS and foreign accounting
standards. Where any reconciliation is carried out on the differences of the data audited by an overseas
audit firm, the name of the overseas audit firm shall be specified.
4. Other Information
336
Suzhou Gold Mantis Construction Decoration Co., Ltd. Annual Report 2020
Part XIII Documents Available for Reference
1. The financial statements signed and stamped by the Company’s legal representative, Chief Financial Officer
and head of the accounting department;
2. The original copy of the Independent Auditor’s Report signed and stamped by the certified public accountants
and stamped by the CPA firm;
3. All the originals of the Company’s announcements and documents that were disclosed to the public during the
Reporting Period on the media designated by the CSRC for information disclosure; and
4. The 2020 Annual Report carrying the signature of the Company’s legal representative.
5. The aforesaid documents are available in the Securities Department of the Company at No. 888 West Ring
Road, Suzhou City, Jiangsu Province, China.
Suzhou Gold Mantis Construction Decoration Co., Ltd.
Chairman of the Board: Wang Hanlin
30 April 2021
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