Annual Report 2023
Shenzhen China Bicycle Company (Holdings) Co., Ltd.
Annual Report 2023
April 2024
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Annual Report 2023
Annual Report 2023
Section I. Important Notice, Contents and Interpretation
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of Shenzhen China
Bicycle Company (Holdings) Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no
any fictitious statements, misleading statements, or important omissions carried in this report, and shall take all
responsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents.
Wang Shenghong, Principal of the Company, Sun Longlong, person in charge of accounting works and She
Hanxing, person in charge of accounting organ (accounting principal) hereby confirm that the Financial Report of
2023 Annual Report is authentic, accurate and complete.
All directors are attended the Board Meeting for report deliberation.
The Company plans not to distribute cash dividends, not to send bonus shares, and no reserve capitalizing.
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Annual Report 2023
Contents
Section I Important Notice, Contents and Interpretation
Section II Company Profile and Main Financial Indexes
Section III Management Discussion and Analysis
Section IV Corporate Governance
Section V Enviornmental and Social Responsibility
Section VI Importan Events
Section VII Changes in Shares and Particular About Shareholders
Section VIII Preferred Stock
Section IX Corporate Bonds
Section X Financial Report
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Annual Report 2023
Documents Available for Reference
1. Accounting statement carrying the signatures and seals of the legal representative, person in charge of
accounting and person in charge of accounting organ.
2. Originals auditing report carried with the seal of accounting firm and signature & seal of the CPA.
3. Originals documents of the Company and manuscripts of public notices that disclosed in the newspaper
designated by CSRC during the reporting period.
4. English version of the Annual Report 2023
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Annual Report 2023
Interpretation
Items Refers to Contents
Company, the Company, the listed Shenzhen China Bicycle Company
Refers to
company, CBC Group (Holdings)Co., Ltd.
Wansheng Industrial Holdings
Wansheng Industrial Refers to
(Shenzhen) Co., Ltd.
Shenzhen Guosheng Energy Investment
Guosheng Energy Refers to
Development Co., Ltd.
CSRC Refers to China Securities Regulatory Commission
SSE Refers to Shenzhen Stock Exchange
SGE Refers to Shanghai Gold Exchange
SDE Refers to Shanghai Diamond Exchange
CNY Refers to RMB/CNY
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Annual Report 2023
Section II. Company Profile and Main Financial Indexes
I. Company information
Short form of the stock Zhonghua A, Zhonghua B Stock Code 000017,200017
Short form of the Stock
N/A
before changed (if applicable)
Stock Exchange for listing Shenzhen Stock Exchange
Name of the Company (in
深圳中华自行车（集团）股份有限公司
Chinese)
Short form of the Company
深中华
(in Chinese)
Foreign name of the
Shenzhen China Bicycle Company (Holdings)Co., Ltd.
Company (if applicable)
Short form of foreign name of
CBC
the Company (if applicable)
Legal representative Wang Shenghong
Registrations add. No. 3008, Buxin Rd., Luohu District, Shenzhen
Code for registrations add 518019
Historical changes of
N/A
registered address
Offices add. 8/F Shuibei Jinzuo Building, No.89 Beili North Road, Cuizhu Street, Luohu District, Shenzhen
Codes for office add. 518029
Internet Web Site www.szcbc.com
E-mail dmc@szcbc.com
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Sun Longlong Yu Xiaomin, Zhong Xiaojin
8/F Shuibei Jinzuo Building, No.89 Beili 8/F Shuibei Jinzuo Building, No.89 Beili
Contact Address North Road, Cuizhu Street, Luohu North Road, Cuizhu Street, Luohu
District, Shenzhen District, Shenzhen
Tel. 0755-28181688 0755-28181688
Fax 0755-28181009 0755-28181009
E-mail dmc@szcbc.com dmc@szcbc.com
III. Information disclosure and preparation place
Website of the Stock Exchange where the annual report
Shenzhen Stock Exchange(http://www.szse.cn)
disclosed
Media and Website where the annual report disclosed Securities Times, Juchao Website (http://www.cninfo.com.cn)
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Annual Report 2023
8/F Shuibei Jinzuo Building, No.89 Beili North Road, Cuizhu
Preparation place for annual report
Street, Luohu District, Shenzhen
IV. Registration changes of the Company
Uniform Social Credit Code 914403006188304524
Changes of main business since listing (if applicable) Main products or services provided at present: Emmelle
bicycle, electric bicycle, and gold jewelry.
1. In March 1992, the Stock of the Company was listed in
Shenzhen Stock Exchange, and 23.28% equity of the Company
was held by Shenzhen Lionda Holding Co., Ltd. and Hong
Kong Dahuan Bicycle Co., Ltd respectively. 2. In March 2002,
legal shares 13.58% A-stock of the Company was obtained by
China Huarong Asset Management Co., Ltd. through court
auction, and became the first majority shareholder of the
Company. 3. On 13 November 2006, the 65,098,412 legal
shears of CBC held by Huarong Company was acquired by
Shenzhen Guosheng Energy Investment Development Co., Ltd.
via the “Equity Transfer Agreement” signed, and first majority
of the Company comes to Guosheng Energy. Guosheng Energy
is the wholly-owned subsidiary of National Investment, actual
controller was Zhang Yanfeng. 4. In January 2011, controlling
shareholder of Shenzhen Guosheng Energy Investment
Development Co., Ltd.—Shenzhen National Investment
Development Co., Ltd. entered into equity transfer agreement
with Mr. Ji Hanfei, 100% equity of Guosheng Energy was
transfer to Mr. Ji Hanfei with price of 70 million. Shenzhen
Guosheng Energy Investment Development Co., Ltd. Shenzhen
Guosheng Energy Investment Development Co., Ltd. holds
63,508,747 A-stock of the Company with 11.52% in total share
capital of the Company. 5. On February 20, 2017, Ji Hanfei and
Guosheng Energy made an “Explanation” to abandon the actual
Previous changes for controlling shareholders (if applicable)
control of the Company, after Ji Hanfei made the declaration to
abandon the actual control of the Company, the investment
from CBC by Mr. Ji changed to general investment instead of
actual controlling, and the actual controller of the Company
changed from Ji Hanfei to no actual controller. 6. On
November 7, 2022, the newly added non-public offering of
shares of the company were listed on the Shenzhen Stock
Exchange. Wansheng Industrial holds 137,836,986 shares of
the company through the subscription of non-public offering of
shares, accounting for 20% of the total share capital after the
completion of the non-public offering. On November 28, 2022,
the company held the second interim general meeting of
shareholders in 2022 to review and approve the Proposal on
Nominating Candidates for Non-Independent Director and the
Proposal on Nominating Candidates for Independent Director,
and the board of directors of the company completed the
change of the term of office. Given that Wansheng Industrial
holds 20% of the stock equity of the company and determines
more than half of the seats on the board of directors of the
company, Wansheng Industrial can therefore have a significant
influence on the resolutions of the company's general meeting
of shareholders and the board of directors. Therefore, the
company was changed from a company without controlling
shareholder and actual controller to a company with controlling
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Annual Report 2023
shareholder and actual controller, the controlling shareholder of
the company was changed to Wansheng Industrial, and the
actual controller of the company was changed to Mr. Wang
Shenghong.
V. Other relevant information
Accounting firm engaged by the Company
Name of the accounting firm Huaxing Certified Public Accountants（LLP）
Offices add. for CPA 7-9 /F, Block B, Zhongshan Bulding, No.152, Hudong Road,
Gulou District , Fuzhou ,Fujian
Signatory accountant Huang Guoxiang, Fu Zhitao
Sponsor engaged by the Company for performing continuous supervision duties in reporting period
Applicable □Not applicable
Sponsor Office address of the sponsor Sponsor representatives Continuing supervision period
23/F Zizhu International
Building, No. 1088, Fangdian 7 November 2022-31
Sinolink Securities Co., Ltd. Li Hong, Xu Juan
Rd., Pudong New Area, December 2023
Shanghai
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□Applicable Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes No
Changes in the current
2023 2022 year over the previous 2021
year (+,-)
Operation
568,481,907.92 444,762,238.25 27.82% 165,246,577.95
revenue(RMB)
Net profit attributable
to shareholders of the 17,901,948.24 -7,616,378.75 335.05% -1,986,692.82
listed company (RMB)
Net profit attributable
to shareholders of the
listed company after
18,493,684.11 -7,644,167.31 341.93% -4,548,872.83
deducting non-
recurring gains and
losses(RMB)
Net cash flow arising
from operating 29,972,830.62 -261,419,066.03 111.47% 15,673,932.87
activities(RMB)
Basic
0.03 -0.01 400.00% -0.004
EPS(RMB/Share)
Diluted
0.03 -0.01 400.00% -0.004
EPS(RMB/Share)
Weighted average ROE 6.22% -14.30% 20.52% -20.04%
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Changes at end of the
current year compared
Year-end of 2023 Year-end of 2022 Year-end of 2021
with the end of
previous year (+,-)
Total assets(RMB) 369,677,494.32 397,253,487.93 -6.94% 97,363,437.22
Net assets attributable
to shareholder of listed 308,761,246.16 290,129,318.51 6.42% 8,918,538.16
company (RMB)
The lower of the company’s net profit before or after deduction of non-recurring profit (gain)/loss for the last
three financial years is negative, and the audit report for the latest year indicates that there is uncertainty about
the company’s ability to continue as a going concern
□Yes No
The lower of the net profit before or after deduction of non-recurring profit (gain)/loss is negative
□Yes No
VII. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS
(International Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the
period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign
accounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
VIII. Quarterly main financial index
In RMB
Q1 Q2 Q3 Q4
Operation revenue 151,527,917.92 141,471,244.58
55,503,482.91 219,979,262.51
Net profit attributable
to shareholders of the 2,848,657.72 2,013,641.18 12,848,010.13
191,639.21
listed company
Net profit attributable
to shareholders of the
listed company after
3,066,157.71 1,927,209.63 13,458,535.47
deducting non- 41,781.30
recurring gains and
losses
Net cash flow arising
from operating -7,545,878.64 -27,818,495.02 69,959,856.10
-4,622,651.82
activities
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Whether there are significant differences between the above-mentioned financial index or its total number and
the relevant financial index disclosed in the company’s quarterly report and semi-annual report
□Yes No
IX. Items and amounts of extraordinary profit (gains)/loss
Applicable □Not applicable
In RMB
Items 2023 2022 2021 Note
Non-current asset
disposal
gain/loss(including the
-12,298.94 -16,957.53
write-off part for which
assets impairment
provision is made)
Government subsidy
recognized in current
gain and loss(excluding
those closely related to
120,500.00 142,981.96 397,876.20
the Company’s
business and granted
under the state’s
policies)
Switch-back of
provision of
impairment of account
193,430.29 763,930.00 1,881,334.27
receivable which are
treated with separate
depreciation test
Net amount of non-
operating income and
-300,037.34 -662,573.38 376,450.05
expense except the
aforesaid items
Other non-recurring
2,092.35
Gains/loss items
Less :Influenced
210,783.69 18,547.21 18.42
amount of income tax
Influenced amount of
minor shareholders’ 384,638.54 181,045.28 93,462.09
equity (after tax)
Total -591,735.87 27,788.56 2,562,180.01 --
Details of other gains/losses items that meets the definition of non-recurring gains/losses:
□ApplicableNot applicable
There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.
Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss
in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public -
-- Extraordinary Profit/loss
□ApplicableNot applicable
The Company does not have any non-recurring profit(gain)/loss listed under theQ&A Announcement No.1 on
Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring)
Profit(gain)/lossdefined as recurring profit(gain)/loss
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Section III Management Discussion and Analysis
I. Industry of the Company during the reporting period
The Company shall comply with the disclosure requirement of Jewelry-related industries in the “Shenzhen Stock
Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
(1) Industry development
China is one of the most important jewelry producer and consumer in the world at present. With the growth of
national economy and the accumulation of residents' wealth, people gradually increase their consumption of high-
end consumer goods after meeting the basic living needs. Jewelry with the property of preserving value and
showing personality has become the consumption hotspots of Chinese residents. At the same time, with the rise of
young consumers and emerging middle class, the demand for quality personal consumption is gradually upgrading,
and the young generation's consumption of jewelry tends to be more routine, which can improve the repurchase
rate of jewelry products under various occasions, providing greater development space for the jewelry industry.
Under the background of slowdown in economic growth or increased uncertainty, people tend to spend more
rationally and pay more attention to the safety and reliability of family asset allocation. Compared with other
consumer goods, gold and silver jewelry can not only beautify our life, but also be accepted by more and more
consumers for its strong functions of preserving wealth, dispersing investment risks and protecting property safety.
On the other hand, the jewelry industry has continuously increased its efforts in style design, craft materials,
cultural marketing and consumption experience, which has also become an important driving force for
consumption growth.
Since 2023, with the full recovery of normal economic and social activities, the policies of expanding
domestic demand and promoting consumption have taken effect, and the consumption potential has been
continuously released. And the consumption growth rate of gold, silver and jewelry is in a leading position.
(2) Industry development trend analysis
1. The increased industry concentration has become the mainstream trend
For the past few years, consumers’ brand awareness has been increasing. In addition, at the end of 2014, the
National Jewelry Standards Technical Committee revised the mandatory national standard “Regulations on the
Purity of Precious Metals in Jewelry and Naming” (GB11887-2012), which deleted the “pure gold” and other titles,
guided consumers to pay more attention to jewelry design, craftsmanship, style and brand value, and no longer be
attracted by the words “pure gold” in the slogan and pay more attention to product quality, prompting small jewelry
enterprises to move closer to large jewelry enterprises. The increasing concentration of the jewelry industry has
become the mainstream trend. In contrast, some regional branded or unbranded small jewelry companies are at a
disadvantage in terms of scale, capital, cost, etc., coupled with their own lack of ability in brand operation
management, product marketing design, and enterprise operation, in the case of consumers paying more and more
attention to brand, they will have to choose to rely on the development of jewelry brands with larger brand
awareness, which will further promote the improvement of the industry concentration, and the national jewelry
brands will gain an opportunity for vigorous development.
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2. The development trend of industrial clustering is more obvious
The cluster development of the jewelry industry has now become an important direction for China's jewelry
industry to improve its comprehensive competitiveness and promote the extension and upgrade of the
characteristic industry chain of the regional jewelry. At present, there are more than ten jewelry industry bases in
China, all of which have distinctive characteristics and outstanding advantages. Whether it is pearl cultivation,
jade carving or jewelry processing, they all add charm to the city and also bring vitality to the prosperity of the
jewelry industry. Special jewelry industry bases such as Shenzhen Luohu, Guangzhou Panyu mainly focus on
precious metal jewelry inlay processing, diamond cutting, and supporting products, forming a series of leading
enterprises and many small and medium-sized enterprises. At the same time, with the strong support of the local
government, the supporting system such as logistics services, information services and technical services have
been continuously improved.
3. The Third- and fourth-tier cities become important consumer markets for the jewelry industry
In recent years, the pace of urbanization in China has gradually accelerated, and the urbanization rate has
continued to grow. Residents in rural areas are gradually relocating and settling in nearby third- and fourth-tier
cities, which steadily deliver new vitality to the third- and fourth-tier cities. In the future, the third- and fourth-tier
cities will have broad market space and show huge growth potential. With the sinking trend of the jewelry
consumption market, the third- and fourth-tier cities will become the main markets for the growth of jewelry
companies in the future.
4. Channel strength will be regarded as the core competitiveness of enterprises for a long time
The internal competition in the jewelry industry is relatively large, and the fierce market competition makes the
construction and control of sales channels for jewelry companies crucial. At the same time, due to the high value
of jewelry, consumers are often worried about the quality of the product and the reasonableness of the price when
purchasing, which often prompts them to purchase through physical channels. There is a certain scarcity of high-
quality physical channels, and the number of high-quality shops in a region’s high-quality business districts is
scarce. Such high-quality shops can not only provide higher traffic, improve the retail performance of jewelry, but
also have the important value of brand promotion. Therefore, in the fierce market competition, it is very important
for jewelry enterprises to control high-quality physical channels, which reflects the core competitiveness of
enterprises on the other side.
5. Brand and design capabilities will become a new driving force for the development of the industry
With the change of consumer demographic structure and the increase of per capital income, the middle and upper
middle class and wealthy people have gradually become the main force of consumption, and the mainstream
consumption concept has also quietly changed. Compared with traditional consumers, emerging consumer groups
pay more attention to the design, craftsmanship, style and brand value of jewelry products, hoping to meet their
needs to show their taste and personality. In addition, the National Jewelry Standards Technical Committee has
removed titles such as “pure gold from the national standards, further prompting consumers to pay attention to the
design, craftsmanship, style and brand value of jewelry, rather than overemphasizing purity.
6. There is large space for improving the penetration rate of diamond jewelry
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In China, different Jewellery products have different market maturity levels. Among them, gold jewelry has a
relatively deep foundation in Chinese culture, and it is still the main jewelry consumption type so far. The
diamond jewelry is small in volume but is growing rapidly, and has a broad space for industry development in the
future. With the further reduction of diamond inventory and promotion of the resume dynamic between
international contact and trading cooperation, China’s diamond imports and consumption is expected to recover
rapidly.
7. The rapid development of e-commerce market creates omni-channel marketing model
The Internet has provided more convenient and more widely spread way of information sharing, guiding the
consumers' demands and choices. In recent years, jewelry retail enterprises have further strengthened online
layout, built new media matrix through various social communication platforms, formed multi-channel customer
sources, realized rapid spread of online brands and drainage and sales of offline stores, and created a new mode of
omni-channel marketing. The development of sharing platforms and e-commerce platforms has changed the
consumption habits of consumers, especially the young generation.
Online consumers can more conveniently understand product features and share user experience, which has
become an important trend of product promotion and future sales. Especially with the rise of live streaming
platforms of e-commerce and social contact, the market share of live streaming e-commerce is increasing rapidly.
8. Supply chain management has become an important business method for jewelry enterprises
From the perspective of supply chain in the jewelry industry, it mainly involves raw material mining, processing
and smelting, blank processing, jewelry production, warehousing, distribution and sales. The jewelry enterprise
continue to optimize their supply chain management in order to shorten the supplying cycle and lower operating
costs while guarantee the quality. More and more well-known domestic jewelry brands have outsourced part or all
of the intermediate processing links with low gross profit and large investment over recent years, focusing on
premium front-end design, brand operation and back-end marketing network construction. Supply chain
management has become a major means for Jewelry enterprise to improving their operational efficiency.
(3) Competitive advantages of the company to engage in the jewelry and gold business
1. Superior quality of upstream supplier system
As things are at the moment, the company has established relatively stable cooperative relationships with major
diamond suppliers and processors at home and abroad, and has advantages in raw material procurement cost,
order production cycle and product quality control, which can continuously reduce supply cost and improve
operational efficiency.
2. Diversified downstream market channels and customer resources
The company is actively expanding its gold jewelry customers now. In addition to customers with clear orders, it
is currently negotiating business cooperation with a number of domestic jewelry brands. The above customers
include three types of customers, of which Class A customers are national well-known brand customers, with
more than 500 retail stores; Class B customers are small and medium-sized/regional/segmented brands, with 300-
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500 retail stores; Class C customers are small and medium-sized brands, with 50-100 retail stores.
3. Improve the industrial chain of production and design
The company has a one-stop industrial chain of design, production, processing, testing, and wholesale. Brand
owners can rely on our jewelry processing resources to hand over lower value-added links such as manufacturing
and distribution to the company, so as to focus on the higher value-added brand operation and sales links.
Outsourcing in the production and design process can improve the homogenization of gold jewelry products.
4. Closed-loop business process and risk control system
The company has formulated strict business internal control processes such as supplier admittance standards,
customer evaluation system, full-process order tracking system, and procurement price comparison system, and
has realized the closed-loop control of capital flow, information flow and logistics and the multi-level risk control
through the integrated service platform of supply system and the integrated solution of capital management.
II. Main businesses of the Company during the reporting period
The Company shall comply with the disclosure requirement of Jewelry-related industries in the “Shenzhen Stock
Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
During the reporting period, the company mainly engaged in jewelry gold business, bicycle and new-energy
lithium battery material business: (1) Gold jewelry business -The company connected with downstream gold
jewelry brands, purchased gold and diamonds according to their product needs, and then entrusted gold jewelry
processing plants for processing, and delivered the inspected and qualified finished products to downstream
customers after making product certificate for them. Through the integration of upstream supplier resources and
downstream customer resources, the turnover speed of gold jewelry products in upstream and downstream has
been improved, the cost of circulation has been reduced, and the overall competitive advantage of upstream and
downstream has formed. (2) Bicycle and new-energy lithium battery material business includes production,
assembly, procurement, and sales of bicycles and electric bicycles, and procurement, sales, and consigned
processing of lithium batteries materials, etc.
As the operation revenue from Jewelry-related business for year of 2023 accounts for more than 30% of the
Company’s audited operation revenue for the most recent fiscal year, the Company is required to comply with the
disclosure requirement of Jewelry-related industries in the “Shenzhen Stock Exchange Self-Regulatory Guidelines
for Listed Companies No. 3- Industry Disclosure”, specific disclosures are as follow:
(1) Main business models during the reporting period
1. Sales model
According to the market demand and customer demand, the Company carries out raw material
procurement, product development design and processing/outsourcing processing, and then forms finished
products to sell to customers.
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2.Procurement model
The upstream raw material suppliers of the company’s gold jewelry supply chain business were mainly diamonds
and gold, of which the diamond suppliers were mainly source producers or wholesalers from India or Hong Kong,
and domestic mature diamond wholesalers (generally members of the Shanghai Diamond Exchange) ), gold was
mainly purchased from the Shanghai Gold Exchange through the company's membership qualifications at
Shanghai Gold Exchange. The company has established professional procurement department and team to be
responsible for the procurement of diamond products and jewellery. The specific procurement models varied
according to customer needs.
3. Production model
By integrating upstream commissioned processing plants, the company outsourced the production of products
ordered by customers to professional jewelry manufacturers to give full play to their professional and scale effect.
In view of the current situation and characteristics of domestic jewelry processing enterprises, the company
established a set of effective supplier management mechanisms and evaluation standards to achieve a benign
interaction between the production system of outsourced manufacturers and the company's business development.
(2) Operation of the physical store during the reporting period
During the reporting period, gold and jewelry business of the Company mainly provides supply chain
management and services in the vertical field of gold and jewelry, it connects with the downstream gold jewelry
brand and does not have the physical stores.
(3) Operation of the on-line sales in reporting period
The Company does not have on-line sales in the Period
(4) Inventory in the reporting period
As of the end of the report, inventory of the Jewelry business was 82,088,217.67 yuan, an increase of 74.39 %
from the beginning of the period. Type of the inventories including:
In RMB
Item Types Amount Proportion
Jewelry 6,907,433.01 8.41%
Gold jewelry 26,734,491.87 32.57%
Finished goods
Other 2,129,894.63 2.59%
Total 35,771,819.51 43.58%
Gold 38,514,722.50 46.92%
Platinum 0.00 -
Raw materials
Diamond 4,390,249.94 5.35%
Total 42,904,972.44 52.27%
Goods in process 3,411,425.72 4.16%
Total 82,088,217.67 100.00%
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III. Core Competitiveness Analysis
Jewelry and gold business is the core business of the Company. The Company pays attention to both the
economic situation and the fluctuation of raw material prices at home and abroad. During the reporting period, the
Company strove to develop new customers, maintain old customers, select the superior and eliminate the inferior,
and further enrich and expand the customer base; It strengthened product development and quality management; It
supplied raw materials such as gold purchased from Shanghai Gold Exchange and diamonds purchased from
qualified suppliers to brands, wholesalers and distributors in batches through product design,
processing/commissioned processing and quality inspection and acceptance. During the reporting period, in order
to optimize the allocation of resources and enhance the competitiveness and comprehensive strength of the
Company in the jewelry and gold field, on the basis of reference on evaluation value, upon the deliberation and
approval by the Company's General Meeting of Shareholders, the Company purchased 35% equity of the holding
subsidiary Xinsen Company at a price of RMB 25.55 million, and Xinsen Company became a wholly-owned
subsidiary of the Company. During the reporting period, the Company continued to operate the bicycle and
electric bicycle business, followed the development of new energy industries, strove to develop new products, and
carried out online and offline sales and brand management. Competitive advantage of the Company in jewelry and
gold business;
1. High-quality upstream supplier system
At present, the company has established stable cooperative relations with major diamond suppliers and processors
at home and abroad, and has advantages in raw material purchase cost, order production cycle and product quality
control, which can continuously reduce the supply cost and operation efficiency.
2. Diversified downstream market channels and customer resources
At present, the company is actively developing gold and jewelry customers. In addition to customers placed orders,
the company is negotiating business cooperation with many domestic jewelry brands. There are three types of
customers, type A customers are national well-known brand customers with more than 500 retail stores; type B
customers are small and medium-sized/regional/segmented brands with 300-500 retail stores; type C customers
are small and medium-sized brands with 50-100 retail stores.
3. Industrial chain improvement of production and design links
The company has an industrial chain process coordinating design, production, processing, inspection and
wholesale. Brand owners can rely on our jewelry processing resource advantages and hand over low value-added
links such as manufacturing and distribution to the company, so as to focus on the brand operation and sales links
with higher added value. Outsourcing of production and design can improve the homogeneity of gold and jewelry
products.
4. Closed-loop business process and risk control system
The company has developed strict internal business control processes such as supplier admittance criterion,
customer evaluation system, whole-process order tracking system and purchase price comparison system.
Through integrated service platform of supply system and integrated solution of fund management, the company
has realized closed-loop control of capital flow, information flow and logistics, and realized multi-level risk
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control.
IV. Main business analysis
1. Overview
The jewelry and gold business is the Company's core business. The Company pays attention to the economic
situation at home and abroad, and pays attention to the fluctuations in the price of raw materials at home and
abroad. During the reporting period, the Company made great efforts to expand new customers, maintain old
customers, select the fittest, and further enrich and expand the customer base; it strengthened the product
development and quality management, purchased gold from the Shanghai Gold Exchange and purchased
diamonds and other raw materials from qualified suppliers, and then supplied products in batches to various
brands, wholesalers and distributors through product design, processing/commissioned processing, and quality
inspection. During the reporting period, in order to optimize the allocation of resources and enhance the
Company's competitiveness and comprehensive strength in the field of jewelry and gold, on the basis of the
reference appraisal value and upon the resolution of the general shareholder’ meeting of the Company, the
Company purchased 35% of the equity of Xinsen Company held by the minority shareholders of Xinsen Company,
a holding subsidiary, at a price of RMB 25.55 million, and Xinsen Company became a wholly-owned subsidiary
to the Company. During the reporting period, the Company continued to adhere to the business of bicycles and
electric bicycles, tracked the development of new energy industries, strived to carry out new product research and
development, and carried out online and offline sales and brand management.
Through various efforts, in 2023, the Company achieved an operating income of RMB 568.48 million
(including 99% from jewelry and gold business), an operating profit of RMB 18.91 million and a net profit of
RMB 18.01 million, of which the net profit attributable to shareholders of listed companies was RMB 17.9
million.
In RMB
YOY
Period-end or Beginning or
Item increase or Reason for change
current-period previous period
decrease
Operation revenue 568,481,907.92 444,762,238.25 28% The sales growth in the current period
The sales increase in the current period led
Operation cost 531,606,161.37 416,884,753.17 28%
to the costs increased accordingly
Mainly due to the provision of large amount
Loss of credit
of bad debt losses by the Company in the
impairment (Loss is -2,735,858.31 -15,516,772.44 -82%
accounts receivable of the customer
listed with “-”)
Guangshui Jiaxu in the previous period
The sales increased in the current period
Operation profit 18,905,549.30 -6,049,884.46 and the provision of large bad debt losses in
the previous period
.Net profit
The sales increased in the current period
attributable to
17,901,948.24 -7,616,378.75 and the provision of large bad debt losses in
shareholders of
the previous period
parent company
Account receivable 196,293,133.00 250,069,301.93 -22%
The calculated receipt of the 2023-year
Other account performance commitment compensation by
12,868,327.03 438,477.82
receivable Wansheng Industrial Holdings (Shenzhen)
Co., Ltd.
17
Annual Report 2023
The increase in material procurement and
Inventory 81,916,039.14 48,206,866.81 70%
stock in the current period
The input tax deductible to be detected in
Other current assets 11,216,095.44 35,453,106.62 -68% the previous period deducted in the current
period
The sales and collection of funds increased
Cash in-flow in the current period; the private placement
arising from 700,335,292.53 290,169,218.36 141% funds of 290 million yuan raised in the
operation activity previous period was invested in operation
and procurement activities
The sales increased in the current period;
Cash out-flow the private placement funds of 290 million
arising from 670,362,461.91 551,588,284.29 22% yuan raised in the previous period was
operation activity invested in operation and procurement
activities
The sales increased in the current period;
Net cash flow the private placement funds of 290 million
arising from 29,972,830.62 -261,419,066.03 yuan raised in the previous period was
operating activities invested in operation and procurement
activities
The minority shareholders’ equity of the
Net cash flow subsidiary was purchased in the current
arising from -26,555,205.60 279,085,141.56 period, and the private placement financing
financing activities of 290 million yuan was completed in the
previous period
2. Revenue(income) and cost
(1) Constitute of operation revenue
In RMB
2023 2022
Ratio in operation Ratio in operation Y-o-y changes (+,-)
Amount Amount
revenue revenue
Total operation
568,481,907.92 100% 444,762,238.25 100% 27.82%
revenue
On industries
Gold jewelry 564,839,114.22 99.36% 427,725,123.35 96.17% 32.06%
Bicycles, electric
bicycles, lithium
3,642,793.70 0.64% 17,037,114.90 3.83% -78.62%
battery materials
and others
On products
Gold jewelry 564,839,114.22 99.36% 427,725,123.35 96.17% 32.06%
Bicycles, electric
bicycles, lithium
3,642,793.70 0.64% 17,037,114.90 3.83% -78.62%
battery materials
and others
According to region
Domestic 568,481,907.92 100.00% 444,762,238.25 100.00% 27.82%
According to sale model
Wholesale 568,481,907.92 100.00% 444,762,238.25 100.00% 27.82%
18
Annual Report 2023
(2) Industries, products, regions and sales model that account for more than 10% of the operating
revenue or operating profit of the Company
Applicable □Not applicable
In RMB
Change of
Change of Change of gross
Operation Gross profit operation
Operation cost operation cost profit ratio y-o-
revenue ratio revenue y-o-
y-o-y(+,-) y(+,-)
y(+,-)
On industries
Jewelry and
564,839,114.22 530,252,110.65 6.12% 32.06% 31.48% 0.41%
gold
On products
Jewelry and
564,839,114.22 530,252,110.65 6.12% 32.06% 31.48% 0.41%
gold
According to region
Domestic 564,839,114.22 530,252,110.65 6.12% 32.06% 31.48% 0.41%
According to sale model
Wholesale 564,839,114.22 530,252,110.65 6.12% 32.06% 31.48% 0.41%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest one year’s scope of period-end
□Applicable Not applicable
(3) Income from physical sales larger than income from labors
Yes □No
Industries Item Unit 2023 2022 Y-o-y changes (+,-)
Sales volume Piece 46,772.00 37,174.00 25.82%
Jewelry and gold Inventory Piece 9400.00 891.00 954.99%
Purchasing volume Piece 55,281.00 36,966.00 49.55%
Sales volume g 614,972.07 677,309.94 -9.20%
Gold and Gold bar Inventory g 4,037.00 61,200.00 -93.40%
Purchasing volume g 557,809.07 738,509.94 -24.47%
Reasons for y-o-y relevant data with over 30% changes
Applicable □Not applicable
1. The jewelry and gold business grew, and the number of physical sales increased.
2. The bicycles, electric vehicles and lithium battery materials business declined, and the number of physical
sales declined.
(4) Performance of significant sales contracts, major procurement contract entered into by the company
up to the current reporting period
□Applicable Not applicable
(5) Constitute of operation cost
Classification of industries
In RMB
2023 2022
Y-o-y changes
Industries Item Ratio in Ratio in
Amount Amount (+,-)
operation cost operation cost
19
Annual Report 2023
Gold jewelry Gold jewelry 530,252,110.65 99.75% 403,281,856.05 96.74% 31.48%
Bicycles, Bicycles,
electric electric
bicycles, bicycles,
1,354,050.72 0.25% 13,602,897.12 3.26% -90.05%
lithium battery lithium battery
materials and materials and
others others
Note
Nil
(6) Whether the changes in the scope of consolidation in Reporting Period
Yes □No
During this reporting period, Fujian Huaxinbao Jewelry Co., Ltd., Hainan Shenhua Industrial Co., Ltd.,
Shenzhen Huabao Zhenxuan Jewelry Co., Ltd. and Shenzhen Xinsen Precision Manufacturing Co., Ltd. were
added to the consolidated statements.
(7) Major changes or adjustment in business, product or service of the Company in Reporting Period
□Applicable Not applicable
(8) Major sales and main suppliers
Major sales client of the Company
Total top five clients in sales (RMB) 442,124,220.35
Proportion in total annual sales volume for top five clients 77.78%
Ratio of related parties in annual total sales among the top five
33.36%
clients
Information of top five clients of the Company
Proportion in total annual
Serial Name Sales (RMB)
sales
1 Client 1 123,172,120.57 21.67%
2 Client 2 119,775,927.80 21.07%
3 Client 3 75,046,686.47 13.20%
4 Client 4 69,859,442.52 12.29%
5 Client 5 54,270,042.99 9.55%
Total -- 442,124,220.35 77.78%
Other notes of main clients
□Applicable Not applicable
Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 551,476,948.40
Proportion in total annual purchase amount for top five 97.62%
suppliers
Ratio of related parties in annual total sales among the top five
0.00%
suppliers
Information of top five suppliers of the Company
Proportion in total annual
Serial Name Purchase (RMB)
purchase
1 Shanghai Gold Exchange 475,898,463.70 84.24%
2 Supplier 2 45,848,932.12 8.12%
3 Supplier 3 20,640,336.87 3.65%
20
Annual Report 2023
4 Supplier 4 5,546,941.11 0.98%
5 Supplier 5 3,542,274.60 0.63%
Total -- 551,476,948.40 97.62%
Other notes of main suppliers
Applicable □Not applicable
Shanghai Gold Exchange is the only legal trading market of precious metals in China. The gold materials
required during the reporting period were mainly purchased through Shanghai Gold Exchange, and there is no
affiliation between the Company and top five suppliers.
3. Expenses
In RMB
2023 2022 Y-o-y changes (+,-) Note of major changes
Sales expenses 5,988,294.90 5,688,257.68 5.27%
Administrative
6,762,314.00 7,525,176.16 -10.14%
expenses
Financial expenses -15,192.21 -196,347.38 92.26%
R&D expenses 1,270,512.42 924,567.70 37.42%
4. R&D investment
Applicable □Not applicable
Estimated Impact on
Name of Main R&D
Project Purpose Project Progress Goal to Achieve the Company's Future
Projects
Development
In response to the
existing technological
Improved the shock
shortcomings,
Research and absorption
improving the shock
development of force Further improving the performance of
absorption The project has been
sharing buffering and shock absorption mountain bikes,
performance of accepted and
shock absorbing performance of enhanced customer
mountain bicycles, completed
technology for mountain bicycles experience, and created
aiming to further
mountain bicycles more revenue for the
enhance the overall
Company
performance of
mountain bicycles
Faced with the unique,
rugged, and complex
environment of Improved the shock
mountainous areas, absorption
Research and bicycle handle grips Further improving the performance of
The project has been
development of new are particularly shock absorption mountain bikes,
accepted and
and comfortable important for performance of enhanced customer
completed
bicycle handle grip cushioning, comfort, mountain bicycles experience, and created
and anti- slip during more revenue for the
cycling, and the Company
requirements for
handle grip are
21
Annual Report 2023
particularly high
The positive and
negative chainring of Improved the shock
bicycle crank set are Improve the quality of absorption
Design of stress
important components positive and negative performance of
bearing structure for The project has been
in bicycles, which are chainring parts, reduce mountain bikes,
positive and negative accepted and
relatively vulnerable the loss rate, and enhanced customer
chainring of bicycle completed
and consumable. Their ensure the safety of experience, and created
crank set
performance directly riders more revenue for the
affects the overall Company
quality of bicycles.
Based on market
demand, with a more
precise customer base
and product
personalization as the
target direction, Improve the
The project has been
R&D of new process horizontally expand the Further promote the competitiveness of the
accepted and
design Company's product product Company’s products
completed
width and depth, avoid and promote sales
fierce homogeneous
product competition in
the market, and initiate
project development
related product design
Personnel of R&D
2023 2022 Change ratio(+,-)
Number of R&D (people) 11 14 -21.43%
Ratio of number of R&D 15.94% 22.22% -6.28%
Educational background
Undergraduate 5 7 -28.57%
Master 0 0 -
Below bachelor’s degree 6 7 -14.29%
Age composition
Under 30 3 2 50.00%
30~40 2 4 -50.00%
Over 40 6 8 -25.00%
Investment of R&D
2023 2022 Change ratio(+,-)
R&D investment (RMB) 1,270,512.42 924,576.70 37.42%
R&D investment/Operation
0.22% 0.21% 0.01%
revenue
Capitalization of R&D
0.00 0.00 0.00%
investment (RMB)
Capitalization of R&D
0.00% 0.00% 0.00%
investment/R&D investment
Reasons and effects of significant changes in composition of the R&D personnel
□Applicable Not applicable
The reason of great changes in the proportion of total R&D investment accounted for operation revenue than
last year
□Applicable Not applicable
Reason for the great change in R&D investment capitalization rate and rational description
22
Annual Report 2023
□Applicable Not applicable
5. Cash flow
In RMB
Item 2023 2022 Y-o-y changes (+,-)
Subtotal of cash in-flow
arising from operation 700,335,292.53 290,169,218.26 141.35%
activity
Subtotal of cash out-flow
arising from operation 670,362,461.91 551,588,284.29 21.53%
activity
Net cash flow arising from
29,972,830.62 -261,419,066.03 111.47%
operating activities
Subtotal of cash in-flow
arising from investment 50,000.00 -100.00%
activity
Subtotal of cash out-flow
arising from investment 191,819.97 40,164.10 377.59%
activity
Net cash flow arising from
-191,819.97 9,835.90 -2,050.20%
investment activities
Subtotal of cash in-flow
arising from financing 299,292,780.18 -100.00%
activity
Subtotal of cash out-flow
arising from financing 26,555,205.60 20,207,638.62 31.41%
activity
Net cash flow arising from
-26,555,205.60 279,085,141.56 -109.52%
financing activities
Net increased amount of cash
3,225,805.05 17,675,911.43 -81.75%
and cash equivalent
Main reasons for y-o-y major changes in aspect of relevant data
Applicable □Not applicable
The previous period's private placement funds of 290 million yuan were in place and invested in operating
activities, resulting in a net inflow of 280 million yuan from financing activities and a net outflow of 260
million yuan from operating activities.
The increase in sales revenue and payment collection in the current period resulted in a net cash inflow of RMB
30 million from operating activities; In addition, the acquisition of minority shareholders’ equity in the
subsidiary in the current period resulted in a net cash outflow of RMB 26 million from financing activities.
□Applicable Not applicable
V. Analysis of the non-main business
□Applicable Not applicable
VI. Analysis of assets and liability
1. Major changes of assets composition
23
Annual Report 2023
In RMB
Year-end of 2023 Year-begin of 2023
Ratio Note of major
Ratio in total Ratio in total changes(+,-) changes
Amount Amount
assets assets
Monetary fund 54,148,674.40 14.65% 54,699,491.18 13.77% 0.88%
Account
196,293,133.00 53.10% 250,069,301.93 62.95% -9.85%
receivable
Inventory 81,916,039.14 22.16% 48,206,866.81 12.14% 10.02%
Foreign assets account for a relatively high proportion
□Applicable Not applicable
2. Assets and liability measured by fair value
□Applicable Not applicable
3. The assets rights restricted till end of the period
1. At the end of the current period, the total fixed output value included six suites of house properties at Lianxin
Jiayuan, Luohu District, Shenzhen purchased in 2016, with original value of 2,959,824.00 Yuan, which were
affordable housing purchased from the Housing and Construction Bureau of Luohu District to provide to
enterprise talents for living. The contract stipulated that the purchasing enterprise is not allowed to conduct any
form of property rights transaction with any units or individual other than the government.
VII. Investment analysis
1. Overall situation
Applicable □Not applicable
Investment at same period last year
Investment in the Period(RMB) Changes
(RMB)
100,550,000 0 100%
2. The major equity investment obtained in the reporting period
Applicable □Not applicable
In RMB
Progr Gain/l Whet
Name Discl Discl
ess as oss on her
of Invest Fundi Estim osure osure
Main Share Count Invest at the invest involv
invest ment ng ated date index(
busin Funds holdin er- ment Type balan ment ed in
ee patter sourc earnin (if if
ess g party term ce in the litigat
comp n e gs applic applic
sheet Perio ion
any able) able)
date d (Y/N)
Shen Acqu Foun
zhen Jewel isitio d
Xinse ry & n of 25,55 Own Not Not Com June7 more
100.0
n gold mino 0,000 ed N/A appli appli plete 0.00 0.00 No ,202 in the
0%
Jewel busin rity .00 funds cable cable d 3 Notic
ry ess intere e on
Gold sts Purch
24
Annual Report 2023
Suppl ase of
y the
Chai Mino
n rity
Co., Intere
Ltd sts
from
Contr
olling
Subsi
diary
and
Relat
ed
Trans
actio
ns
(Noti
ce
No.:
2023-
019)
releas
ed on
Jucha
o
Webs
ite
(ww
w.cni
nfo.c
om.c
n)
25,55
Total -- -- 0,000 -- -- -- -- -- -- 0.00 0.00 -- -- --
.00
3. The major non-equity investment doing in the reporting period
□Applicable Not applicable
4. Financial assets investment
(1) Securities investment
□Applicable Not applicable
The company had no securities investment in the Period.
(2) Derivative investment
□Applicable Not applicable
The Company had no derivatives investment in the Period
5. Application of raised proceeds
Applicable □Not applicable
25
Annual Report 2023
(1) General application of raised proceeds
Applicable □Not applicable
In RMB: 10,000
Usage
of the
Total Cumulat Ratio of retained
raised ive cumulat raised
Total Total Raised
capital raised ive Total capitals
raised accumul capitals
Total has capitals raised accumul and
Raising Net capital ative idle for
Way raised purpose has capitals ative what is
raised
year used raised raised more
capitals capitals of uses purpose has expecte
in capitals capitals than two
changed of uses purpose unused d to
Period used years
in changed of uses invested
Period in total changed with
those
capitals
Non-
public
offering
of Not
29,359. 28,882. 28,888.
2022 RMB 464.15 0 0 0.00% 0 applica 0
28 72 5
ordinar ble
y shares
(A
stock)
29,359. 28,882. 28,888.
Total -- 464.15 0 0 0.00% 0 -- 0
28 72 5
Explanation
1.According to the Official Reply on Approval of Non-Public Offering of Shares of Shenzhen China Bicycle Company(Holdings)
Co., Ltd. (ZJXK [2021] No.3552) approved by China Securities Regulatory Commission, agreed that the Company shall issue
137,836,986 RMB ordinary shares (A shares) to a specific object, Wansheng Industrial, through a private offering at 2.13 yuan a
share, with total raised funds of 293,592,780.18 yuan. After deducting the expenses of 4,765,621.08 yuan (excluding tax) related
to the issuance, the actual net funds raised amounted to 288,827,159.10 yuan. Baker Tilly China Certified Public Accountants
(LLP) has conducted an examination on the fund allocation of the company's non-public offering on October 21, 2022, and issued
the Capital Verification Report on the Fund Allocation of Non-Public Offering of A Shares of Shenzhen China Bicycle Company
(Holdings) Co., Ltd. TZYZ[2022] No.42018.As of December 31, 2023, As of December 31, 2023, the balance of the special
accounts for raised funds was RMB 0, and all the special accounts for raised funds had been cancelled.
2. During the reporting period, the company neither changed the fund-raising investment projects, nor changed the location and
method of implementing the fund-raising investment projects.
3. During the reporting period, the company deposited, used and managed the raised funds in strict accordance with the Three-
party Supervision Agreement on the Deposit of Special Accounts for Raised Funds and performed relevant obligations in
accordance with relevant laws and regulations, and timely, truly, accurately and completely disclosed information related to the
use of raised funds. There is no violation of the Management System for Raised Funds and relevant laws and regulations.
(2) Committed projects of the raised proceed
Applicable □Not applicable
In RMB10,000
Committ Change Total Investme Invested Cumulati Investme Date of Benefit Achieved Major
26
Annual Report 2023
ed the raised- nt after in the ve nt reach a achieved expected changes
investme project fund adjustme period investme progress predeter in the benefits of project
nt (Y/N) commitm nt (1) nt till end mined Period (Y/N) feasibilit
projects (includin ent amount of state of y (Y/N)
and over- g till end period- use
raised partially of end (3)＝
fund changed) Period- (2)/(1)
investme end (2)
nt
Committed investment project
Supplem
Not
ental 28,882.7 28,882.7
No 464.15 28,888.5 100.02% 0 applicabl No
working 2 2
e
capital
Subtotal
of
committ
28,882.7 28,882.7
ed -- 464.15 28,888.5 -- -- 0 -- --
2 2
investme
nt
project
Investment of the over-raised fund
Not Not
applicabl 0 0 0 0 0.00% 0 applicabl No
e e
Subtotal
of over-
raised
-- 0 0 0 0 -- -- 0 -- --
fund
investme
nt
28,882.7 28,882.7
Total -- 464.15 28,888.5 -- -- 0 -- --
2 2
Conditio
ns and
reasons
of
failure to
meet
schedule
or
predicte
d
Not applicable
income
(by
specific
projects)
(includin
g the
reasons
for
selecting
“Not
27
Annual Report 2023
applicabl
e ” for
“Achiev
ed
expected
benefits
(Y/N)”)
Descripti
on of
major
changes
Not applicable
in
project
feasibilit
y
Amount,
use of
purpose
and
usage
Not applicable
progress
of the
excessiv
e raised
fund
Change
of the
impleme
ntation
location
of
Not applicable
project
with
investme
nt of
raised
fund
Adjustm
ent of
the
impleme
ntation
ways of
Not applicable
project
with
investme
nt of
raised
fund
Early
investme
Not applicable
nt and
replacem
28
Annual Report 2023
ent with
the
raised
fund
Amount
and
reasons
of cash
surplus
in raised Not applicable
funds
during
impleme
nting the
project
Use
purpose
and
destinati
Not applicable
on of the
raised
funds
un-used
Problem
s or
other
circumst
ances in
the use Not applicable
of raised
funds
and its
disclosur
e
（3） Change of fund raised projects
□Applicable Not applicable
The Company had no change of fund raised projects in the Period
VIII. Sales of major assets and equity
1. Sales of major assets
□Applicable Not applicable
The Company had no major assets sold in the Period.
2. Sales of major equity
□Applicable Not applicable
29
Annual Report 2023
IX. Analysis of main holding company and stock-jointly companies
Applicable □Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Company Main Register Operation Operation
Type Total assets Net assets Net profit
name business capital revenue profit
Shenzhen
Xinsen
Jewelry Business of
200,000,00 128,723,48 117,910,17 330,526,62 4,755,477.6 3,500,936.8
Gold Subsidiary jewelry and
0 1.42 7.47 7.83 9 6
Supply gold
Chain Co.,
Ltd
Particular about subsidiaries obtained or disposed in report period
Applicable □Not applicable
Impact on overall production and
Company name Way to obtained or disposed
performance
A wholly-owned subsidiary newly
Fujian Huaxinbao Jewelry Co., Ltd.
established
Shenzhen Xinsen Jewelry Gold Supply Purchasing 35% equity from minority
Chain Co., Ltd interests
A wholly-owned subsidiary newly
Hainan Shenhua Industry Co., Ltd.
established
Shenzhen Huabao Zhenxuan JewelryCo., A wholly-owned subsidiary newly
Ltd. established
Shenzhen Xinsen Precision
Newly established sub-subsidiary
Manufacturing Co., Ltd.
Notes of holding and stock-jointly companies
Nil
X. Structured vehicle controlled by the Company
□Applicable Not applicable
XI. Future Development Prospects
Jewelry and gold business is the core business of the Company. The Company pays attention to both the
economic situation and the fluctuation of raw material prices at home and abroad. During the reporting period, the
Company strove to develop new customers, maintain old customers, select the superior and eliminate the inferior,
and further enrich and expand the customer base; It strengthened product development and quality management; It
supplied raw materials such as gold purchased from Shanghai Gold Exchange and diamonds purchased from
qualified suppliers to brands, wholesalers and distributors in batches through product design,
processing/commissioned processing and quality inspection and acceptance. During the reporting period, in order
to optimize the allocation of resources and enhance the competitiveness and comprehensive strength of the
Company in the jewelry and gold field, on the basis of reference on evaluation value, upon the deliberation and
30
Annual Report 2023
approval by the Company's General Meeting of Shareholders, the Company purchased 35% equity of the holding
subsidiary Xinsen Company at a price of RMB 25.55 million, and Xinsen Company became a wholly-owned
subsidiary of the Company. During the reporting period, the Company continued to operate the bicycle and
electric bicycle business, followed the development of new energy industries, strove to develop new products, and
carried out online and offline sales and brand management.
ii. Operation plan for the new year:
On the basis of business work over the past few years, the business plan of the Company for 2024 is:
（1）Enhancing corporate governance, standardize operations, further reform and improve the internal operation
management system, assessment mechanism, strengthen the construction of management teams, business teams
and technical teams. Perfected the development plan of the Company.
（2）In terms of gold and jewelry business, further establish supplier systems and expand customer resources,
the business cooperation between the well-known brands and listed company in particular, expanding
international business, improve internal business processes and internal control system construction, promote the
construction of a supply chain system platform to improve operational quality and efficiency, and strive to achieve
greater growth in operating income.
（3）In terms of bicycle, electric bicycle and new energy business, with the goal of brand maintenance and
national market expansion, discuss and promote the deepening cooperation between the Company and major
distributors on EMMELLE brand and business. Expand sales network, strengthen quality management, strengthen
brand management, and promote the growth of order business. Continue to follow up the development of new
energy and new material of lithium battery, and explore and seek new breakthroughs.
（4）Continue to cooperate with the manager to carry out asset custody business and relevant litigation response,
ensure asset safety and protect the rights and interests of interested parties. Continue to follow up the execution of
Guangshui Jiaxu's lawsuit.
（5）Actively cooperate with shareholders and the Board of Directors to carry out small-sum rapid financing,
etc.
（6）Strengthen the background management and office automation, and improve the support of the back office
to the front desk business.
iii. Risks for the Company:
(1) Price fluctuation risk of major raw materials
The main raw materials of the company are gold, diamonds, etc. In recent years, affected by changes in the
international and domestic economic situation, the listed price of gold at the gold exchange fluctuates greatly. The
market price of platinum is generally positively correlated with the market price of gold. In the long run, the
market price of diamond is in a moderate rising trend. The selling price of the company's gold products calculated
by gram is linked with the listed price of gold and platinum at the gold exchange. If the market prices of gold,
platinum, diamonds and other raw materials fall significantly during the inventory turnover period of the company,
on the one hand, the company has the risk of gross profit margin decline due to the decline in product selling price;
on the other hand, the company will also face the risk of decline in operating performance due to the provision for
31
Annual Report 2023
inventory write down. At the same time, the rise in selling price caused by the sharp rise in the market price of
raw materials such as gold and diamonds may lead to the decrease of consumers' willingness and the decline of
sales volume, thus adversely affecting the business performance.
(2) The risk of intensifying market competition
In recent years, the jewelry market in China has been developing continuously, and the consumption demand of
jewelry has been developing in the direction of individuation and diversification. At present, China's jewelry
industry has presented diversified competitions. Excellent enterprises in the industry have formed competitive
advantages in a certain segment by deeply exploring the consumption preferences of specific groups. The market
competition has gradually changed from price competition to comprehensive competition among brand, business
model, marketing channel, product design and quality, the competition tends to be fierce. In the future
development, if the company cannot continue to give full play to its advantages, there will be a risk of profitability
decline due to intensified competition in the industry.
(3) Risk of market demand decline
As an optional consumption, jewelry is especially sensitive to market demand, economic outlook and consumer
preference. China has become one of the countries with the most obvious growth in the jewelry and jade jewelry
industry in the world. If the economic growth rate declines in the future, the growth of market consumption
demand may slow down accordingly, which will adversely affect the company's business condition.
XII. Reception of research, communication and interview during the reporting period
Applicable □Not applicable
Main content Basic situation
Reception
Time Way Reception type Object and information index of
location
provided investigation
Found more in
The investors “Investors
participated in Relations
The on-line
the online Activities
platform of The Company's
performance Sheet”(No.:
May 17,2023 “Value On- Other Other operation,
briefing for 2023-001)
Line” (www.ir- litigation, etc.
year of 2022 released on
online.cn)
through the Juchao Website
internet (www.cninfo.co
m.cn)
The investors
participated in Found more in
group reception “Investors
The
day for Relations
“Interactive The Company's
investors of the Activities
Platform for operation,
November listed Sheet”(No.:
Investor Other Other performance
15,2023 companies in 2023-002)
Relations” on commitment,
Shenzhen for released on
(https://ir.p5w.n etc.
year of 2023 Juchao Website
et)
through (www.cninfo.co
(https://ir.p5w.n m.cn)
et)
January- March The Company Telephone Individual Individual Consulting N/A
32
Annual Report 2023
2023 communication investor company
restructuring
problem
The consulting
April –June Telephone Individual
The Company Individual company's N/A
2023 communication investor
operation
July – The consulting
Telephone Individual
September The Company Individual company's N/A
communication investor
2023 litigation
The consulting
October – Telephone Individual
The Company Individual company's N/A
December 2023 communication investor
operation
XIII. The implementation of the action plan of "Double improvement of quality and return".
Whether the Company has disclosed the action plan of "Double improvement of quality and return".
□Yes No
33
Annual Report 2023
Section IV Corporate Governance
I. Corporate governance of the Company
During the reporting period, the company strictly complied with the Company Law, the Securities Law, the
Governance Code for Listed Companies, the Rules for Listing Stocks of Shenzhen Stock Exchange, the
Guidelines for the Self-Regulation of Listed Companies of Shenzhen Stock Exchange No. 1 -- Standardized
Operation of Listed Companies on the Main Board, and other relevant laws and regulations, constantly improved
the corporate governance structure, improved the enterprise management and internal control system, deeply and
meticulously carried out corporate governance activities, and constantly improved the corporate governance level.
The general meeting of shareholders, the board meeting and the meeting of supervisors of the company were held
in strict accordance with relevant rules and regulations, and the directors and supervisors can diligently perform
their duties. During the reporting period, the actual situation of corporate governance met the requirements of the
regulatory documents on corporate governance issued by China Securities Regulatory Commission and Shenzhen
Stock Exchange.
1. Shareholders and general meeting of shareholders
The company convened and held the general meeting of shareholders in strict accordance with the Company Law,
the Securities Law and other laws and regulations, and the stipulations of the Articles of Association and the
Rules of Procedure of the General Meeting of shareholders, sent out meeting notice at the prescribed time before
the general meeting of shareholders, and employed lawyers to witness the meeting and give legal opinions on the
convening and holding of the meeting and the validity of the resolution, ensured that all shareholders, especially
minority shareholders, enjoy equal status and fully exercise their rights. During the reporting period, the company
held 4 general meetings of shareholders and considered 16 proposals.
2. Controlling shareholders and the listed company
The company's controlling shareholders exercised their rights and undertook corresponding obligations in
accordance with the law, there was no direct or indirect interference in the company's decision-making and
business activities beyond the company's general meeting of shareholders. The company had an independent and
complete operating system and independent operating ability, and was independent and separated from the
controlling shareholders, actual controllers and other enterprises controlled by them in terms of business,
personnel, assets, institutions and finance. The company's board of directors, board of supervisors and other
internal organs operated independently, and major decisions were made by the general meeting of shareholders
and the board of directors in accordance with the law.
3. Directors and the board of directors
The board of directors of the company has 9 members, including 3 independent directors. The number and
composition of the board of directors meet the relevant laws and regulations and the requirements of the Articles
of Association. During the reporting period, all directors of the company performed their duties diligently and
34
Annual Report 2023
responsibly in strict accordance with relevant laws and regulations, the Articles of Association, Rules of
Procedure of the Board of Directors and other relevant provisions, attended the board meetings and the general
meeting of shareholders on time, carefully deliberated various proposals, and ensured the standard, efficient
operation and prudent and scientific decision-making of the board of directors. In order to further improve the
corporate governance structure, the board of directors of the company has set up four special committees, namely
strategy, audit, nomination, compensation and assessment, to provide scientific and professional opinions for the
decision-making of the board of directors. During the reporting period, the board of directors held 8 meetings and
deliberated 38 proposals.
4. Supervisors and the board of supervisors
The company's board of supervisors has 3 members, including 1 employee representative supervisor. The number
and composition of the board of supervisors meet the relevant laws and regulations and the requirements of the
Articles of Association. During the reporting period, the board of supervisors of the Company convened meetings
in strict accordance with the Articles of Association, the Rules of Procedure of the Board of Supervisors and other
relevant provisions. All supervisors attended meetings on time, earnestly performed their duties, independently
and effectively exercised the right to supervise and examine the financial affairs of the company and the legal
compliance of the duties performed by directors and senior managers in a responsible attitude towards all
shareholders, supervised and expressed their opinions on major matters, related transactions and financial
conditions of the company, and effectively safeguarded the legitimate rights and interests of the company and
shareholders. During the reporting period, the board of supervisors held 5 meetings and deliberated 15 proposals.
5. Performance appraisal and incentive and constraint mechanism
The company has gradually established and improved the fair and transparent performance appraisal standards
and incentive and restraint mechanisms for directors, supervisors and senior managers, and the appointment of
senior managers of the company is open and transparent, and in line with the provisions of laws and regulations.
6. Stakeholders
The company fully respected the legitimate rights and interests of stakeholders, treated suppliers and customers in
good faith, carefully cultivated every employee, strengthened the communication and exchange among all parties,
jointly promoted the sustainable and healthy development of the company, and achieved the coordination and
balance of the interests of shareholders, employees and the society while maximizing the profits of the company.
7. Information disclosure and transparency
The company attached great importance to information disclosure and investor relationship management, strictly
implemented the Information Disclosure Management System, and designated Securities Times and
http://www.cninfo.com.cn as the company's legal information disclosure media and website, fairly treated all
investors, and truly, accurately, completely and timely made information disclosure, improved the transparency of
the company, and protected the legitimate rights and interests of all shareholders.
8. Investor relations
35
Annual Report 2023
The Company lays great stress on maintaining the good communication with investors. During the reporting
period, by means of the performance communication meeting and various means such as online group reception
days for listed companies, the Company introduce the development strategy and business development to the
investors; the Company actively uses the investor relations interactive platform as an important channel of
communication with investors, especially small and medium-sized investors, and answers investor’s questions on
the platform in a timely and serious manner.
Is there any difference between the actual condition of corporate governance and relevant regulations about
corporate governance for listed company from CSRC?
□Yes No
There are no differences between the actual condition of corporate governance and relevant regulations about
corporate governance for listed company from CSRC.
II. Independence of the Company relative to controlling shareholder and the actual controller in ensuring
the Company’s assets, personnel, finance, organization and businesses
The company has an independent supply and marketing system, and is independent and separated from the
controlling shareholders, actual controllers and other enterprises controlled by them in terms of business,
personnel, assets, institutions and finance, and has the independent and complete business system and the ability
to operate independently in the market.
1.Independent business
The company has an independent supply and marketing system, and has the ability to operate independently and
directly to the market. There is no other situation that needs to rely on the controlling shareholders for production
and operation activities. There is no horizontal competition between the company and the controlling shareholders,
and the controlling shareholders do not directly or indirectly interfere in the operation of the company.
2. Independent personnel
The company is independent of the controlling shareholders in labor, personnel and salary management. The
general manager, deputy general manager, chief financial officer, secretary of the board and other senior
executives of the company neither hold other positions except directors and supervisors in the controlling
shareholders, actual controllers and other enterprises controlled by them, nor receive salary from the controlling
shareholders, actual controllers and other enterprises controlled by them; The company's directors, supervisors,
general manager and other senior executives are selected through legal procedures, and there is no controlling
shareholder, any other unit, department or person violating the relevant provisions of the Articles of Association
to interfere in the appointment and removal of the company's personnel.
3. Independent assets
The company has a complete supply, production and marketing system and supporting facilities required for
production and operation, and legally owns land use rights, housing property rights, ownership of trademark and
other assets related to production and operation, and does not rely on the assets of controlling shareholders for
36
Annual Report 2023
production and operation. The company has registered, established accounts, checked and calculated and managed
all assets, and the property rights of all assets are clearly defined and the ownership is clear.
4. Independent institutions
The company has set up necessary functional departments in line with its own characteristics, and each
department operates according to the company's management system and under the leadership of the company
management. There is no confusion with the controlling shareholders, the actual controllers and other enterprises
controlled by them, and there is no subordinate relationship with the controlling shareholders.
5. Independent finance
The company has set up an independent finance department, allocated full-time financial personnel, and
established a complete accounting system, which enable it to make financial decisions independently, possess
normative financial and accounting system and financial management system for subsidiaries. The company has
independent bank accounts and pays taxes independently in accordance with the law. There is no situation of
sharing bank accounts or tax payments with the controlling shareholders.
III. Horizontal competition
□Applicable Not applicable
IV. In the reporting period, the Company held annual shareholders’ general meeting and extraordinary
shareholders’ general meeting
1. Annual Shareholders’ General Meeting in the reporting period
Ratio of investor
Session of meeting Type Date Date of disclosure Resolutions
participation
Refer to the
Juchao Website
(www.cninfo.com.
First Extraordinary
Extraordinary cn): Resolution of
shareholders
shareholders 29.26% March 6,2023 March 7,2023 First Extraordinary
general meeting
general meeting shareholders
2023
general meeting
2023 (No.: 2023-
006)
Refer to the
Juchao Website
(www.cninfo.com.
Annual General
AGM 29.34% June 28,2023 June 29,2023 cn): Resolution of
Meeting of 2022
Annual General
Meeting 2022
(No.: 2023-021)
Refer to the
Second Juchao Website
Extraordinary Extraordinary (www.cninfo.com.
shareholders shareholders 29.25% November 16,2023 November 17,2023 cn): Resolution of
general meeting general meeting Second
2023 Extraordinary
shareholders
37
Annual Report 2023
general meeting
2023 (No.: 2023-
035)
Refer to the
Juchao Website
(www.cninfo.com.
Third
cn): Resolution of
Extraordinary Extraordinary
Third
shareholders shareholders 29.37% December 20,2023 December 21,2023
Extraordinary
general meeting general meeting
shareholders
2023
general meeting
2023 (No.: 2023-
040)
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□Applicable Not applicable
V. Directors, supervisors and senior executives
1. Basic information
Amoun Amoun
Reason
t of t of
Start Shares Shares s for
End shares shares Other
dated held at held at increas
Workin date of increas decreas change
Name Sex Age Title of period- period- e or
g status office ed in ed in s
office begin end decreas
term this this (share)
term (Share) (Share) e of
period period
shares
(Share) (Share)
Wang Nove Nove
Curren Not
Shen Chair mber mber
Male 42 tly in 0 0 0 0 0 applica
ghon man 28,202 27,202
office ble
g 2 5
Nove
Curren August Not
Direct mber
Li Hai Male 55 tly in 26,201 0 0 0 0 0 applica
or 27,
office 0 ble
2025
Septe Nove
Curren Not
Presid mber mber
Li Hai Male 55 tly in 0 0 0 0 0 applica
ent 26,201 27,202
office ble
3 5
Nove
Sun Curren June Not
Direct mber
Longlo Male 51 tly in 29,201 0 0 0 0 0 applica
or 27,202
ng office 7 ble
5
Secret Nove
Sun Curren May Not
ary of mber
Longlo Male 51 tly in 17,201 0 0 0 0 0 applica
the 27,202
ng office 2 ble
Board 5
Nove
Sun Curren June Not
mber
Longlo Male 51 CFO tly in 22,201 0 0 0 0 0 applica
27,202
ng office 7 ble
5
Nove
Yao Curren August Not
Direct mber
Zheng Male 49 tly in 26,201 0 0 0 0 0 applica
or 27,202
wang office 0 ble
5
Yuan Male 45 Direct Curren Nove Nove 0 0 0 0 0 Not
38
Annual Report 2023
Kang or tly in mber mber applica
office 28,202 27,202 ble
2 5
Nove Nove
Wang Curren Not
Direct mber mber
Guoxi Male 70 tly in 0 0 0 0 0 applica
or 28,202 27,202
ang office ble
2 5
Indepe Nove Nove
Guo Curren Not
ndent mber mber
Qiuqu Male 41 tly in 0 0 0 0 0 applica
directo 28,202 27,202
an office ble
r 2 5
Indepe Nove Nove
Zhan Curren Not
ndent mber mber
Qiyon Male 42 tly in 0 0 0 0 0 applica
directo 28,202 27,202
g office ble
r 2 5
Indepe Nove Nove
Yuan Curren Not
ndent mber mber
Qingh Male 45 tly in 0 0 0 0 0 applica
directo 28,202 27,202
ui office ble
r 2 5
The
conven
er of Nove Nove
Curren Not
Guo the mber mber
Male 49 tly in 0 0 0 0 0 applica
Yong board 28,202 27,202
office ble
of 2 5
superv
isors
Nove Nove
Li Curren Not
Superv mber mber
Niansh Male 40 tly in 0 0 0 0 0 applica
isor 28,202 27,202
eng office ble
2 5
Nove Nove
Yi Staff Curren Not
mber mber
Wenzh Male 54 Superv tly in 0 0 0 0 0 applica
28,202 27,202
i isor office ble
2 5
Total -- -- -- -- -- -- 0 0 0 0 0 --
During the reporting period, whether there was any departure of directors and supervisors and dismissal of
Senior executives
□Yes No
Changes of directors, supervisors and senior executives
□Applicable Not applicable
2. Post-holding
Professional background, major working experience and present main responsibilities in Company of directors,
supervisors and senior executive
Mr. Wang Shenghong, born in 1982, is a Chinese national without the right of permanent residence abroad. Mr.
Wang Shenghong is currently an executive director and general manager of Wansheng Industrial Holdings
(Shenzhen) Co., Ltd., an executive director and general manager of Shenzhen Wansheng Kejiao Holding Co., Ltd.,
an executive director and general manager of Shenzhen Huaxia Juanyong Cultural Tech. Co., Ltd., and the
Chairman of the Company.
39
Annual Report 2023
Mr. Li Hai, born in 1969, graduated from Economic department of Shenzhen University in major of accounting;
Mr. Li took the turns of deputy manager of finance department, assistant CFO, secretary of the Board and vice
president, etc. of the Company, and now he serves as President of the Company.
Mr. Sun Longlong, born in 1973, graduated from Shanghai University of Finance and Economics in 1995 with a
bachelor degree, a bachelor of Economics. Mr. Sun successively worked as financial affairs in Shenzhen
Qiongjiao Industry Co., Ltd. and Shenzhen Solar Pipe Co., Ltd.; he worked in the Company since May 1999, and
successively served as Deputy Manager of financial department, Manager, manager of comprehensive
management department, manager of enterprise management department, now he serves as Director, secretary of
the Board and CFO of the Company.
Mr. Yao Zhengwang, born in 1975, received a Bachelor of Law degree. Mr. Yao Zhengwang is currently a
director of Shenzhen China Bicycle Company (Holdings) Limited, the general manager of Jilin Fude Investment
Holding Co., Ltd., a director of Jiaxing Zhishifang Food Technology Co., Ltd., a supervisor of Le Shan City
Commercial Bank Co., Ltd., and a Director of the Company.
Mr. Yuan Kang, born in 1979, graduated from Seneca College in Toronto, Canada, served as a supervisor of
Fujian Fenghe Group Co., Ltd., and now serves as a director of the Company.
Mr. Wang Guoxiang, born in 1954, is a Chinese national without the right of permanent residence abroad. He is
currently a supervisor of Wansheng Industrial Holdings (Shenzhen) Co., Ltd., a supervisor of Shenzhen
Wansheng Kejiao Holdings Co., Ltd., a supervisor of Shenzhen Huaxia Juanyong Cultural Tech. Co., Ltd., and a
director of the Company.
Mr. Guo Qiuquan, born in 1983, is a member of the Communist Party of China and a Chinese national, a PhD of
Biomedical Engineering, the University of Western Ontario, Canada, a bachelor of Engineering Mechanics and a
master of Physical Electronics from Beijing Institute of Technology, and he belongs to Class-C in the peacock
plan of recruiting high-level overseas talents of Shenzhen. In 2016, he was sponsored by the Ministry of Human
Resources and Social Security for overseas students. So far, he has published more than 70 papers in international
advanced journals, and has 12 authorized invention patents and 12 authorized utility model patents. Some of his
patented technologies won the technology transformation award of WorlDiscovery of the University of Western
Ontario. Mr. Guo Qiuquan is currently an associate researcher of the Institute for Advanced Study of University
of Electronic Science and Technology of China (Shenzhen), general manager of Jiangsu Xinchengrui Material
Technology Co., Ltd., the president and general manager of Shenzhen Topmembranes Technology Co., Ltd., and
an independent director of the Company.
Mr. Zhan Qiyong, born in 1982, is a member of the Communist Party of China and a Chinese national. He has a
master's degree in accounting from Jiangxi University of Finance and Economics. He is a certified public
40
Annual Report 2023
accountant and a certified tax agent. Mr. Zhan Qiyong once served successively as an accountant of Finance
Department of Shenzhen Wang Xin Linkage Technology Co., Ltd., an accountant and an assistant manager of
Finance Department of Shenzhen Gold Coin Co., Ltd.. Now he is the deputy manager of Finance Department of
Shenzhen Gold Coin Co., Ltd., and an independent director of the Company.
Mr. Yuan Qinghui, born in 1979, is a Chinese national, has a bachelor 's degree in law, and is a lawyer. He passed
the China Judicial Examination in 2002 and began practicing law in 2003. Now he is the director of Fujian
Luyuan Laws Firm and an independent director of the Company.
Mr. Guo Yong, born in 1975, graduated as a major in economy and trade from Henan Agricultural University in
1995. He is a master of Arts and Crafts in Henan Province and a representative inheritor of national intangible
cultural heritage (jun porcelain firing technique). Mr. Guo Yong successively served as the general manager of the
First Branch of Henan Provincial Wood Corporation, the general manager of Yuzhou Longyu Tungsten &
Molybdenum Material Co., Ltd., and the chairman of Huangshi Wanjun International Art (Shenzhen) Co., Ltd.
Currently, he is the chairman and general manager of Henan Wanjuntang Porcelain Culture Development Co.,
Ltd., an executive director and general manager of Yuzhou Wanjuntang Culture Development Co., Ltd., an
executive director and general manager of Zhengzhou Baoshang Jewelry Co., Ltd., director of Intangible Cultural
Heritage Committee of Chinese Traditional Culture Promotion Association, and convener of the Board of
Supervisors of the Company.
Mr. Li Niansheng, born in 1984, Chinese nationality, has a bachelor degree in biological engineering from Tianjin
University of Science and Technology. He successively served as the investment director and general manager of
Shenzhen Runjing Asset Management Co., Ltd.. Currently, he is the general manager of Shenzhen Xinsen Jewelry
Gold Supply Chain Co., Ltd., and a supervisor of the Company.
Mr. Yi Wenzhi, born in 1970, has a college degree. He joined the Company in 1992 and successively served as a
member of the life management committee of Longhua Plant #2, an equipment manager of painting workshop, a
production dispatcher of painting workshop, the chairman of the labor union of painting workshop, and a member
of Youth League Committee of Longhua Plant #2. He is currently the deputy director of the company's general
affairs office, the chairman of the company's labor union, a member of the company's party committee and the
secretary of the second branch, a member of the trade union committee of Shenzhen Yuanling Street, and an
employee representative supervisor of the Company.
Post-holding in shareholder’s unit
Applicable □Not applicable
Received
Position in
Name of Start dated of End date of office remuneration from
Name shareholder’s unit
shareholder’s unit office term term shareholder’s unit
n
(Y/N)
Wansheng
Executive Director
Wang Shenghong Industrial June 13,2017 No
and GM
Holdings
41
Annual Report 2023
(Shenzhen) Co.,
Ltd.
Wansheng
Industrial
Wang Guoxiang Holdings Supervisor August 13,2018 No
(Shenzhen) Co.,
Ltd.
Explanation N/A
Post-holding in other unit
Applicable □Not applicable
Received
Name of other Position in other Start dated of End date of office
Name remuneration from
units unit office term term
other unit (Y/N)
Shenzhen Huaxia
Executive Director
Wang Shenghong Junyong Cultural May 9,2020 No
and GM
Tech. Co., Ltd.
Shenzhen
Chanjuan Holding Executive Director
Wang Shenghong January 7,2020 No
Development Co., and GM
Ltd.
Shenzhen
Executive Director
Wang Shenghong Chanjuan December 21,2017 No
and GM
Industrial Co., Ltd.
Shenzhen
Wang Shenghong Chanjuan Jewelry Director August 22,2022 No
Co., Ltd.
Shenzhen Huhui
Alliance E-
Li Hai Director April 10,2015 No
Commerce Co.,
Ltd.
Huizhou Daya Bay
Merchant in
Sun Longlong Longzhen Trading November 10,2021 No
charge
Firm
Jilin Fude
Yao Zhengwang Investment GM November 21,2014 No
Holding Co., Ltd.
Jiaxing Zhishifang
Yao Zhengwang Food Tech. Co., Director December 24,2012 No
Ltd.
Lingxiong
Independent non-
Yao Zhengwang Technology Group April 11,2023 Yes
executive director
Co., Ltd.
Le Shan City
Yao Zhengwang Supervisor June 21,2019 Yes
Commercial Bank
Zhengda Energy
Yao Zhengwang Development Supervisor February 9,2017 No
(China) Co., Ltd.
Shenzhen
Guosheng Energy
Yao Zhengwang Investment Supervisor October 12,2006 Yes
Development Co.,
Ltd.
Shenzhen
Longpeng
Yao Zhengwang Supervisor July 21,2009 No
Investment Co.,
Ltd.
42
Annual Report 2023
Shenzhen
Yao Zhengwang Zhengrui Energy Supervisor February 25,2016 No
Tech. Co., Ltd.
Dalian Qingyi
Yao Zhengwang New Energy Co., Supervisor December 26,2023 No
Ltd.
Fujian Chanjuan Executive Director
Yuan Kang December 22,2020 No
Jewelry Co., Ltd. and GM
Shenzhen Huaxia
Executive Director
Wang Guoxiang Junyong Cultural May 9,2020 No
and GM
Tech. Co., Ltd.
Shenzhen
Guo Qiuquan Topmembranes Chairman and GM August 25,2015 No
Tech. Co., Ltd.
Jiangsu
Xinchengrui
Guo Qiuquan GM October 24,2019 No
Material Tech. Co.,
Ltd.
General Artificial
Intelligence
Guo Qiuquan Supervisor September 7,2023 No
(Ganzhou)
Research Institute
Dongguan Ant 3D Executive Director
Guo Qiuquan December 7,2023 No
Printing Co., LTD and GM
Shenzhen Gold Deputy financial
Zhan Qiyong May 1,2015 Yes
Coin Co., Ltd. manager
Fujian Luyuan
Yuan Qinghui Chief lawyer September 1,2008 Yes
Laws Firm
Henan Wanjuntang
Porcelain Culture Executive Director
Guo Yong January 12,2016 No
Development Co., and GM
Ltd.
Yuzhou
Wanjuntang
Executive Director
Guo Yong Culture November 14,2019 No
and GM
Development Co.,
Ltd.
Zhengzhou
Executive Director
Guo Yong Baoshang Jewelry July 23,2015 No
and GM
Co., Ltd.
Henan Jianhe
Traditional
Guo Yong Supervisor July 31,2019 Yes
Chinese Medicine
Hospital Co., Ltd.
Henan Jianhe
Guo Yong Pharmacy Co., Supervisor October 26,2020 Yes
Ltd.
Xian Jinyuxin
Guo Yong Supervisor May 6,2023 No
Trade Co., Ltd.
Wangsong Guyao
（Henan）
Person in charge
Guo Yong Cultural August 1,2023 Yes
of finance
Development Co.,
Ltd
Zhongrun Cultural
Person in charge
Guo Yong Development May 31,2023 Yes
of finance
（Yuzhou）Co.,
43
Annual Report 2023
Ltd.
Henan Wangsong
Person in charge
Guo Yong Guyao Ceramic August 28,2023 No
of finance
Co., Ltd.
Zhongrun
Porcelain Industry Person in charge
Guo Yong May 39,2023 No
( Yuzhou) Co., of finance
Ltd.
Shenzhen Runjing
Assets September
Li Niansheng GM No
Management Co., 19,2016
Ltd.
Shenzhen
Bochuangke
Yi Wenzhi Information Supervisor May 11,2011 No
Consulting Co.,
Ltd.
Explanation Not applicable
Punishment of securities regulatory authority in recent three years to the company’s current and outgoing
directors, supervisors and senior management during the reporting period
□Applicable Not applicable
3. Remuneration for directors, supervisors and senior executives
Decision-making procedures, recognition basis and payment for directors, supervisors and senior executives
Decision procedure of
remuneration of directors, According to relevant rules of the Article of Association, the general meeting of shareholders decides
supervisors, senior remuneration of directors and supervisors. The Board of Directors decides senior management’s.
management
Confirmation basis of The Company refers to the position rank and comprehensive industry level. And then general meeting of
remuneration of directors, shareholders approves compensation standard and allowance of independent directors. According to the
supervisors and senior "Interim Measures to Annual Performance Assessment of Executives" and performance evaluation
management standards the Company issues annual performance salary.
Actual payment of The Company strictly paid remuneration of directors, supervisors and senior management accordingly
remuneration of directors, with decision procedure and confirmation basis. Total payment for remuneration of directors,
supervisors and senior supervisors and supervisors amounted to 1.7411 million yuan from January to December in 2023.
management
Remuneration for directors, supervisors and senior executives in reporting period
In RMB 10,000
Total Whether
remuneration remuneration
Post-holding
Name Sex Age Title obtained from obtained from
status
the Company related party of
(before taxes) the Company
Wang Currently in
Male 42 Chairman 10.52 No
Shenghong office
Director, Currently in
Li Hai Male 55 79.44 No
President office
Director,
Currently in
Sun Longlong Male 51 Secretary of the 30.8 No
office
Board, CFO
Currently in
Li Niansheng Male 40 Supervisor 23.85 No
office
44
Annual Report 2023
Supervisor,
Currently in
Yi Wenzhi Male 54 employee's 15.22 No
office
representation
Independent Currently in
Guo Qiuquan Male 41 4.76 No
director office
Independent Currently in
Zhan Qiyong Male 42 4.76 No
director office
Independent Currently in
Yuan Qinghui Male 45 4.76 No
director office
Total -- -- -- -- 174.11 --
Other note
□Applicable Not applicable
VI. Responsibility performance of directors during the reporting period
1. The board of directors during the reporting period
Session of meeting Date of meeting Disclosure date Meeting resolutions
Refer to the Juchao Website
The 2nd session (interim)of
February 17,2023 February 18,2023 (www.cninfo.com.cn): (No.:
11th BOD
2023-003)
Refer to the Juchao Website
The 3rd session of 11th BOD April 21,2023 April 25,2023 (www.cninfo.com.cn): (No.:
2023-008)
Deliberated only one proposal
The 4th session (interim)of as the Q1 Report of 2023,
April 27,2023 April 28,2023
11th BOD which was disclosed on April
28, 2023
Refer to the Juchao Website
The 5th session (interim)of
June 6,2023 June 7,2023 (www.cninfo.com.cn): (No.:
11th BOD
2023-018)
Refer to the Juchao Website
The 6th session of 11th BOD August 25,2023 August 29,2023 (www.cninfo.com.cn): (No.:
2023-024)
Deliberated only one proposal
The 7th session (interim)of as the Q3 Report of 2023,
October 27,2023 October 31,2023
11th BOD which was disclosed on
October 31, 2023
Refer to the Juchao Website
The 8th session (interim)of
October 31,2023 November 1,2023 (www.cninfo.com.cn): (No.:
11th BO
2023-030)
Refer to the Juchao Website
The 9th session (interim)of
December 4,2023 December 5,2023 (www.cninfo.com.cn): (No.:
11th BOD
2023-036)
2. The attending of directors to Board meetings and shareholders general meeting
The attending of directors to Board Meeting and Shareholders General Meeting
Times of Times of
Absent the
Board attending the Times of
Times of Meeting for
meeting Times of Board Times of attend the
Director entrusted the second
supposed to Presence Meeting by Absence general
presence time in a row
attend in the communicati meeting
(Y/N)
report period on
Wang
8 7 1 0 0 N 4
Shenghong
Li Hai 8 8 0 0 0 N 4
Sun 8 8 0 0 0 N 4
45
Annual Report 2023
Longlong
Yao
8 4 4 0 0 N 4
Zhengwang
Yuan Kang 8 2 6 0 0 N 4
Wang
8 0 8 0 0 N 2
Guoxiang
Guo Qiuquan 8 0 8 0 0 N 4
Zhan Qiyong 8 1 7 0 0 N 4
Yuan
8 0 8 0 0 N 4
Qinghui
Explanation of absent the Board Meeting for the second time in a row
Not applicable
3. Objection for relevant events from directors
Directors come up with objection about Company’s relevant matters
□Yes No
No directors come up with objection about Company’s relevant matters in the Period
4. Other explanation about responsibility performance of directors
The opinions from directors have been adopted
Yes □No
Director's statement to the Company that a proposal has been or has not been adopted
During the reporting period, the directors carefully deliberated all proposals submitted to the BOD and voted in
favour of the proposals that required voting, without any opposition or abstention, and raised no objection to the
proposals of the Board for the year.
VII. Performance of Duties by Specialized Committees under the Board Meeting in the Reporting Period
Important Specific
comments Other circumstances
Committee Number of Meeting
Members Date of and performance of the
name meetings held content
meeting suggestions of duties objection (if
made applicable)
Annual Work in strict
performance accordance
and with the
performance Company
forecast in Law, Articles
2022, of
January hearing about Association, Not
Audit N/A
29,2023 the annual Working applicable
Committee
Zhan internal audit Rules of the
of the
Qiyong, Guo work in 2022 Audit
Eleventh 4
Qiuquan, and annual Committee
Board of
Yuan Kang internal audit of the Board
Directors
work plan in of Directors
2023 and other
Report- relevant
related laws,
April matters in regulations Not
N/A
20,2023 2022 and and systems, applicable
hearing about be diligent
the internal and dutiful,
46
Annual Report 2023
audit work in and fully
the first communicate
quarter of and discuss
2023 the related
Matters matters
involved in
the 2023
semi-annual
August Not
report and N/A
22,2023 applicable
hearing about
the internal
audit work in
2023
Deliberating
the matters
involved in
the proposed
change of the
accounting
December Not
firm and N/A
1,2023 applicable
hearing about
the internal
audit work in
the third
quarter of
2023
Remuneratio
Deliberating
n and
Zhan the proposal
Appraisal
Qiyong, on the
Committee August
Yuan 1 remuneration
of the 22,2023
Qinghui, Li of the
Eleventh
Hai Company's
Board of
Chairman
Directors
Deliberating
Special the proposal
Guo
Meeting of on increasing
Qiuquan,
Independent the estimated
Zhan October Not
Directors of 1 amount of N/A
Qiyong, 31,2023 applicable
the Eleventh daily related-
Yuan
Board of party
Qinghui
Directors transactions
in 2023
VIII. Works from Supervisory Committee
The Company has risks in reporting period that found in supervisory activity from supervisory committee
□Yes No
Supervisory committee has no objection about supervision events in reporting period
IX. Particulars of workforce
1. Number of Employees, Professional composition, Education background
Employee in-post of the parent Company at period-end (people) 28
47
Annual Report 2023
Employee in-post of main Subsidiaries at period-end (people) 41
The total number of current employees at period-end (people) 69
The total number of current employees to receive pay (people) 69
Retired employee’ s expenses borne by the parent Company
0
and main Subsidiaries (people)
Professional composition
Category of professional composition Numbers of professional composition (people)
Production personnel 6
Salesperson 25
Technicians 14
Financial personnel 9
Administrative personnel 15
Total 69
Education background
Type of Education Numbers (people)
Postgraduate 1
Undergraduate 23
Junior college 28
Below junior college 17
Total 69
2. Remuneration Policy
Formulated the remuneration policy according to the position title and comprehensive industry salary standards
3. Training programs
In order to improve the quality of staff, the company has planned and targeted training activities every year. The
training activities for administrative personnel and technical staff mainly to improve their professional skills,
management quality and ability
4. Labor outsourcing
□Applicable Not applicable
X. Profit distribution plan and capitalizing of common reserves plan
Formulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash
Dividend policy during the Reporting Period
□Applicable Not applicable
The company is profitable during the reporting period and the parent company has positive profit available for
distribution to shareholders but no cash dividend distribution plan has been proposed
□Applicable Not applicable
Profit distribution plan and capitalizing of reserves for the Period
48
Annual Report 2023
□Applicable Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from
capital reserve either for the year.
XI. Implementation of the Company’s stock incentive plan, employee stock ownership plan or other
employee incentives
□Applicable Not applicable
During the reporting period, the Company has no stock incentive plan, employee stock ownership plan or other
employee incentives that have not been implemented.
XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control
In accordance with the provision of Basic Standards for Enterprise Internal Control and its supporting guidelines,
the Company renewal and improve the internal control system of the Company during the reporting period.
Established a set of internal control system with scientific design, simple application and effective operation.
Regularly, the Company carried out special work of system combing and optimization every year, and the work is
effectively integrated with the internal control assessment of the Company. Through the system evaluation,
achieved the improvement of the system, standardization of the effectiveness of the establishment and
optimization of the process, and full implementation.
2. Details of major defects in internal control identified during the reporting period
□Yes No
XIII. Management and controls on the subsidiary during reporting period
Problems
Integration Integration Measures taken Progress in Follow-up
Name encountered in
plans progress to resolve solution solution plan
integration
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
XIV. Internal control self-appraisal report or internal control audit report
1. Self-appraisal Report of Internal Control
Disclosure date of full internal control
23 April 2024
evaluation report
Disclosure index of full internal control
Self-Appraisal Report of Internal Control 2023 of CBC released on Juchao website
evaluation report
The ratio of the total assets of units
included in the scope of evaluation
accounting for the total assets on the 100.00%
company's consolidated financial
statements
The ratio of the operating income of
units included in the scope of evaluation
accounting for the operating income on 100.00%
the company's consolidated financial
statements
49
Annual Report 2023
Defects Evaluation Standards
Category Financial Reports Non-financial Reports
Material defect: (1) inefficiency of Material defect: (1) inefficiency of
environment control; (2) inefficiency of environment control; (2) inefficiency of
internal supervision; (3) direct impact on internal supervision; (3) direct impact on
major mistakes of investment decisions; major mistakes of investment decisions;
(4) directly make the significant error in (4) directly make the significant error in
the financial statements; (5) violation of the financial statements; (5) violation of
the laws, regulations, rules and other the laws, regulations, rules and other
normative documents, resulting in normative documents, resulting in
investigation of the central government investigation of the central government
and regulatory agencies, and being and regulatory agencies, and being
sentenced to a fine or penalty, being sentenced to a fine or penalty, being
restricted industry exit, canceling restricted industry exit, canceling
business license and being forced the business license and being forced the
closure of etc. Major defect: (1) indirect closure of etc. Major defect: (1) indirect
Qualitative criteria
impact on major mistakes of investment impact on major mistakes of investment
decisions; (2) indirectly make the decisions; (2) indirectly make the
significant error in the financial significant error in the financial
statements; (3) Lack of important statements; (3) Lack of important
system; (4) violation of the laws, system; (4) violation of the laws,
regulations, rules and other normative regulations, rules and other normative
documents, resulting in investigation of documents, resulting in investigation of
the local government and regulatory the local government and regulatory
agencies, and being sentenced to a fine agencies, and being sentenced to a fine
or penalty, and being ordered to suspend or penalty, and being ordered to suspend
business for rectification and cause the business for rectification and cause the
Company’s business stop of etc. General Company’s business stop of etc. General
defect: other control defect besides defect: other control defect besides
material defect and major defect. material defect and major defect.
1. Potential loss or potential error of total 1. Potential loss or potential error of total
profit: (1) General defect: less than or profit: (1) General defect: less than or
equal to pre-tax total profit of 3%, (2) equal to pre-tax total profit of 3%, (2)
Major defect: more than pre-tax total Major defect: more than pre-tax total
profit of 3%( and absolute amount more profit of 3%( and absolute amount more
than RMB 0.5 million), (3) Material than RMB 0.5 million), (3) Material
defect:: more than 5% of pre-tax total defect:: more than 5% of pre-tax total
profit and absolute amount more than profit and absolute amount more than
RMB 1 million; 2. Potential loss or RMB 1 million; 2. Potential loss or
potential error of operating income: (1) potential error of operating income: (1)
General defect: less than or equal to General defect: less than or equal to
Quantitative standard operating income of 1%, (2) Major operating income of 1%, (2) Major
defect: more than 1% of operating defect: more than 1% of operating
income and less than or equal to 3% of income and less than or equal to 3% of
operation income, (3) Material defect:: operation income, (3) Material defect::
more than 3% of operating income; 3. more than 3% of operating income; 3.
Potential loss or potential error of total Potential loss or potential error of total
assets: (1) General defect: less than or assets: (1) General defect: less than or
equal to 1% of total assets, (2) Major equal to 1% of total assets, (2) Major
defect: more than 1% of total profit and defect: more than 1% of total profit and
less than or equal to 3% of total profit, less than or equal to 3% of total profit,
(3) Material defect:: more than 3% of (3) Material defect:: more than 3% of
total profit total profit
Amount of significant defects in
0
financial reports
Amount of significant defects in non-
0
financial reports
Amount of important defects in financial
0
reports
Amount of important defects in non-
0
financial reports
50
Annual Report 2023
2. Auditing report of internal control
Applicable □Not applicable
Deliberations in Audit Report of Internal Control
We considers that China Bicycle Company (Holdings)Co., Ltd. in line with Basic Norms of Internal Control and relevant
regulations, shows an effectiveness internal control of financial report in all major aspects dated 31 December 2023.
Disclosure details of audit report of internal control Disclosed
Disclosure date of audit report of internal control (full-text) 23 April 2024
Opinion type of auditing report of IC Standard unqualified
Whether the non-financial report had major defects No
Carried out modified opinion for internal control audit report from CPA
□Yes No
The internal control audit report, issued by CPA, has concerted opinion with self-evaluation report, issued from
the Board
Yes □No
XV. Rectification of Self-examination Problems in Special Governance Actions in Listed Company
Not applicable
51
Annual Report 2023
Section V. Environmental and Social Responsibility
I. Major environmental
The listed Company and its subsidiary whether belongs to the key sewage units released from environmental
protection department
□Yes No
Administrative punishment for environmental problems during the reporting period
Impact on the
The company’s
Company name or Reason for production and
Violation Punishment result rectification
subsidiary name punishment operation of listed
measures
company
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
Other environmental information disclosed refer to key polluters
Not applicable
Measures taken to reducing the carbon emissions during the reporting period and their effectiveness
□Applicable Not applicable
Reasons for not disclosing other environmental information
Not applicable
II. Social responsibility
During the reporting period, the company conscientiously fulfilled its corporate social responsibility, paid
attention to protecting the interests of shareholders, especially minority shareholders; Treated suppliers, customers
and consumers with integrity; Earnestly fulfilled the responsibilities and obligations to the society, shareholders,
employees and other stakeholders, created a harmonious environment for enterprise development, and realized the
common development of the enterprise and stakeholders.
1. Protection of shareholders' rights and interests
The company strictly complies with the provisions of relevant laws and regulations such as the Company Law, the
Securities Law and the Governance Code for Listed Companies, continuously improves the corporate governance
structure, adheres to handing over the important matters to the resolutions of the shareholders' meeting, provides
convenience for medium and small investors to participate in the shareholders' meeting, fully listens to the small
and medium-sized investors’ reasonable advice on the company's development and governance, and safeguards
the legitimate rights and interests of shareholders.
In 2023, the board of directors of the company convened 4 shareholders' meetings, the meeting adopted the
combination of on-site voting and online voting, the votes of small and medium investors were counted separately,
provided convenience for the majority of investors to participate in the voting at the shareholders' meeting, and
52
Annual Report 2023
ensured the participation right and supervision right of the small and medium-sized investors.
In 2023, the company strengthened communication with investors, especially investors from the public, answered
questions about which the public and investors concerned, and ensured the investors' right to know in line with the
Information Disclosure Affairs Management System and Reception and Promotion Work System and by means of
various forms such as the interactive platform of Shenzhen Stock Exchange, hotline of the company’s securities
affairs department, and so on.
On 17 May 2023, the company held the 2022 annual performance briefing, in which the company made online
communication with investors on the company's performance, operating conditions and other issues of concern to
investors. A total of 4 questions were raised by investors during the briefing, which were answered by directors
and senior management personnel.
On November 15, 2023, the Company participated in the collective reception day for investors of the listed
companies in Shenzhen in 2023, and had an online exchange with investors on issues such as operating
conditions and performance commitments that investors concern about. During the reception day, all the
directors and senior management responded to the questions raised by investors.
The Company is committed to effectively protecting the rights and interests of investors by improving the
corporate governance structure, improving the level of information disclosure and investor relation management,
and carrying out investor education, and guiding investors to form a value investment concept through true and
effective communication. In order to effectively ensure the smooth service channels for investors, the Company
has arranged full-time staff to answer investors' hotline calls and answer questions from the interactive platform.
Relevant staff patiently analyze the announcement information to help investors keep abreast of the Company's
situation.
2. Protection of workers' rights and interests
The company adheres to the people-oriented, comprehensively implements the Labor Law and Labor Contract
Law, attaches great importance to guarantee of the employees' rights and interests, at the same time, establishes
good communication channels throughout the whole process of staff management and care, pays attention to staff
growth, improves the staff overall quality, cultivates excellent internal training culture system, creates a good
learning environment. Meanwhile, the company pays attention to enriching the spiritual life of employees,
regularly carries out staff activities, and improves team cohesion. In accordance with the Labor Contract Law of
the People's Republic of China and other relevant national and local labor laws and regulations, the company signs
labor contracts with employees to protect their rights and interests. The company and its subsidiaries strictly
implement the national employment system, labor protection system, social security system and medical security
system, and pay the housing provident fund, medical insurance, endowment insurance, unemployment insurance,
work-related injury insurance and maternity insurance for employees according to the state regulations. The
company adheres to corporate culture of efficient coordination, people-oriented, on-demand training, training by
level, and echelon training. The company establishes internal knowledge sharing system, promotes information
and knowledge exchange among various modules of the company, and improves team coordination ability. It
encourages employees to participate in continuing education and enhances the knowledge structure optimization
and professional quality promotion of workers at various positions.
3. Protection of rights and interests of suppliers, customers and consumers
The company actively organizes and carries out customer management, takes measures to ensure the rights and
53
Annual Report 2023
interests of customers and actively promotes customer satisfaction and service excellence. It makes full use of the
rich social resources in the market, and establishes a good partnership with suppliers. The company promises not
to abuse or misuse consumer information for the protection of rights and interests of consumers.
III. Consolidating and expanding the achievements of poverty alleviation and rural revitalization
Nil
54
Annual Report 2023
Section VI. Important Events
I. Implementation of commitment
1. Commitments completed in Period and those without completed till end of the Period from actual controller, shareholders, related parties, purchaser
and companies
Applicable □Not applicable
Commitment
Commitment Type Content Date Term Implementation
party
After the completion of the non-public offering, within the scope of shareholder rights that
can be exercised by Wansheng Industrial \ I myself, the independence of the listed company
in terms of personnel, assets, finance, organization and business will be guaranteed as
follows:
I Personnel independence
1. Ensure that the general manager, deputy general manager, chief financial officer,
secretary of the board and other senior executives of the listed company work full-time in
Commitments Wansheng Commitment the listed company and do not hold other positions except director and supervisor in other
made in Industrial to maintain enterprises controlled by Wansheng Industrial \ I myself and do not receive salary in other
7
acquisition Holdings the enterprises controlled by Wansheng Industrial \ I myself. Valid for Normal
November
report or report (Shenzhen) Co., independence long term performance
2. Ensure that the financial personnel of the listed company are independent and do not take 2022
on changes in Ltd. and Wang of listed
equity Shenghong company part-time jobs or receive remuneration in other enterprises controlled by Wansheng
Industrial \I myself.
3. Ensure that the listed company has a complete and independent labor, personnel and
salary management system, which is completely independent from other enterprises
controlled by Wansheng Industrial \I myself.
II Assets independence
1. Ensure that the listed company has independent and complete assets, all assets of the
listed company are under the control of the listed company, and are independently owned
55
Annual Report 2023
and operated by the listed company. Ensure that other enterprises controlled by Wansheng
Industrial \I myself shall not occupy the funds and assets of the listed company in any
illegal way.
2. Ensure that the assets of the listed company will not be used to illegally guarantee the
debts of other enterprises controlled by Wansheng Industrial \I myself .
III Financial independence
1. Ensure that the listed company establishes independent financial departments and
independent financial accounting systems.
2. Ensure that the listed company has a normative and independent financial accounting
system and a financial management system for its subsidiaries.
3. Ensure that the listed company opens bank accounts independently and does not share
bank accounts with Wansheng Industrial \ I myself and other enterprises under my control.
4. Ensure that the listed company can make independent financial decisions, and Wansheng
Industrial \ I myself and other enterprises under my control do not interfere in the use and
procurement of funds of the listed company through illegal means.
5. Ensure that the listed company pays taxes independently according to law.
IV Business independence
1. Ensure that the listed company has the assets, personnel, qualifications and ability to
carry out business activities independently, and has the ability to operate independently and
sustainably in the market.
2. Guarantee to minimize related transactions between Wansheng Industrial \ I myself and
other enterprises controlled by myself and the listed company. Related transactions that
cannot be avoided or have reasonable reasons shall be conducted in accordance with the the
law and the principle of openness, fairness and justice.
V Institutional independence
1. Ensure that the listed company establishes and improves the corporate governance
structure of the joint-stock company in accordance with the law and has an independent and
complete organizational structure.
2. Ensure that the shareholders' meeting, board of directors, independent directors, board of
supervisors and senior executives of the listed company independently exercise their
56
Annual Report 2023
functions and powers in accordance with laws, regulations and the company's articles of
association.
3. Ensure that the listed company has an independent and complete organizational structure,
and there is no confusion between the listed company and other enterprises controlled by
Wansheng Industrial \ I myself .
VI Ensure that the listed Company is otherwise independent from Wansheng Industrial \ I
myself and other enterprises under my control
In case of any breach of the above commitments, thus causing economic losses to the listed
company, Wansheng Industrial \ I myself will indemnify the listed company.
1. Wansheng Industrial \ I myself do not, and will not, directly or indirectly engage in any
business or activity at home and abroad which is the same, or similar to the existing
business of the listed company and which constitutes or may constitute direct or indirect
competition to the existing business of the listed company in any aspect in any way
(including but not limited to sole proprietorship, joint venture, cooperation and joint
venture), nor provides any assistance in fund, business and management or provides any
technical information, business operation, sales channels and other trade secrets to
enterprises, institutions or other economic organizations competing with the listed
Commitments Wansheng company's existing business in any way;
Commitment
made in Industrial 2. Wansheng Industrial \ I myself do not establish or acquire any business entity that is
to avoid 7
acquisition Holdings engaged in the same or similar business as the listed company's existing business, or any Valid for Normal
competition in November
report or report (Shenzhen) Co., long term performance
the same company, enterprise or other institution or organization that competes with the listed 2022
on changes in Ltd and Wang
industry company's existing business in any aspect;
equity Shenghong
3. From the date of issuance of this letter of commitment, if any business opportunity
obtained by Wansheng Industrial \ I myself from any third party constitutes or may
constitute material competition with the existing business of the listed company, Wansheng
Industrial \ I myself will immediately notify the listed company and try its best to transfer
such business opportunity to the listed company;
4. This letter of commitment takes effect from the date of issuance and remains valid and
irrevocable during the period when Wansheng Industrial \ I myself am a shareholder
holding more than 5% equity of the list company.
57
Annual Report 2023
5. In case of direct or indirect economic losses caused to the listed company due to its
failure to fulfill the above commitments, Wansheng Industrial \ I myself shall compensate
the listed company for all the losses suffered thereby.
1. As of the date of issuance of this letter of commitment, there was no related transaction
between Wansheng Industrial/I myself and other companies controlled by Wansheng
Industrial/I myself and the listed company or any related transaction that should be
disclosed in accordance with laws and regulations but not disclosed .
1. Upon completion of the transaction, Wansheng Industrial/I myself and other companies
controlled by Wansheng Industrial/I myself will avoid and reduce related transactions with
the listed company as far as possible in accordance with laws, regulations and other
normative documents. For related transactions that cannot be avoided or occur for
reasonable reasons, Wansheng Industrial/I myself and other companies controlled by
Wansheng Industrial/I myself will follow the market principles of justice, fairness and
Commitments Wansheng openness, sign agreements with the listed company according to law, perform legal
made in Industrial Commitment procedures, comply with relevant laws, regulations, other normative documents and the
7
acquisition Holdings on regulating Valid for Normal
articles of association of the listed company, and perform relevant internal decision-making November
report or report (Shenzhen) Co., the related long term performance
procedures in accordance with the law and timely fulfill the obligations of information 2022
on changes in Ltd and Wang transactions
equity Shenghong disclosure, ensure that the pricing of related transactions is fair and reasonable and the trade
terms are fair, guarantee not to use related transactions to illegally transfer the funds and
profits of the listed company nor to use such transactions to engage in any behavior that
damages the legitimate rights and interests of the listed company and other shareholders.
3. This Commitment shall remain valid during the period when Wansheng Industrial/I
myself serve as the direct/indirect controlling shareholder/actual controller of the listed
company. Wansheng Industrial/I myself guarantee to strictly fulfill all commitments in this
letter of commitment. If any loss is caused to the listed company due to violation of such
commitments, Wansheng Industrial/I myself will bear the corresponding liability for
compensation.
After the completion of this non-public offering, the shares subscribed by Wansheng
Commitments Wansheng Commitment 7 36 Normal
made at IPO or Industrial on shares Industrial is not allowed to be transferred within 36 months from the date of listing of this November months performance
58
Annual Report 2023
refinancing Holdings restriction stock issue. The non-public offering of shares of the company acquired by the issuing 2022
(Shenzhen) Co., object and the shares acquired as a result of the company's allocation of stock dividends and
Ltd and Wang
the capital reserve converted into share capital shall also comply with the above share lock-
Shenghong
in arrangement. After the expiration of the restriction period, it will be subject to the
relevant regulations of China Securities Regulatory Commission and Shenzhen Stock
Exchange.
For the next three years after the completion of the non-public offering of shares and the
completion of the adjustment of the board of directors and the board of supervisors of
Shenzhen China Bicycle by Wansheng Industrial, the net profit of the listed company shall
be no less than 30 million yuan, 35 million yuan and 40 million yuan respectively, that is,
the cumulative net profits shall be 105 million yuan.
Wansheng If the actual cumulative net profits of the listed company fails to reach the cumulative net
Industrial profits of the listed company in any year within the performance commitment period, 1 Jan.
Commitments Performance 7
Holdings 2023-31 Normal
made at IPO or compensation Wansheng Industrial shall compensate the listed company in cash within ten working days November
(Shenzhen) Co., December performance
refinancing commitment after the issuance of audit report of the listed company in the current year within the 2022
Ltd and Wang 2025
Shenghong performance commitment period.
The amount of compensation for the current year shall be calculated as follows:
Amount payable in the current year = Cumulative net profit committed by the end of the
current period - Cumulative net profit realized by the end of the current period - Cumulative
amount compensated (if any)
1. Do not interfere with the company's operation and management activities beyond its
Commitment authority, and do not occupy the company's interests;
on dilution of 2. Effectively perform the relevant measures formulated by the company to fill out the
Wansheng
the immediate
Industrial returns and fulfill any commitments made to fill out the returns.
Commitments return on non- 7
Holdings 3. From the issuance date of this Commitment to the completion of the non-public offering Valid for Normal
made at IPO or public November
(Shenzhen) Co., long term performance
refinancing offering of A of shares of the company, if the China Securities Regulatory Commission makes other new 2022
Ltd and Wang
share and regulations on filling out the return measures and commitments, and the above-mentioned
Shenghong
measures to
commitments cannot meet such regulations of the China Securities Regulatory
be taken
Commission, I myself promise to issue supplementary commitments in accordance with the
59
Annual Report 2023
latest regulations of the China Securities Regulatory Commission at that time;
4. As one of the subjects responsible for filling out the return measures, if I myself violate
the above commitments or refuse to perform the above commitments, I myself agree that
China Securities Regulatory Commission, Shenzhen Stock Exchange and other securities
regulatory authorities punish me or take relevant management measures according to the
relevant regulations and rules formulated or issued by them.
Wansheng Commitment Within 12 months after the completion of this issuance, Wansheng Industrial did not plan to
Industrial not to initiate
Commitments launch major asset reorganization, asset acquisition and other major matters affecting the 7
Holdings major assets 12 Normal
made at IPO or November
(Shenzhen) Co., reorganization stock price of the listed company, and there was no plan to realize the reorganization and months performance
refinancing 2022
Ltd and Wang or assets listing step by step through cash subscription and asset acquisition.
Shenghong acquisition
Commitment Within 12 months after the completion of this issuance, Wansheng Industrial did not plan to
Shenzhen China
not to initiate
Commitments Bicycle launch major asset reorganization, asset acquisition and other major matters affecting the 7
major assets 12 Normal
made at IPO or Company November
reorganization stock price of the listed company, and there was no plan to realize the reorganization and months performance
refinancing (Holdings) Co., 2022
or assets listing step by step through cash subscription and asset acquisition.
Ltd.
acquisition
1. Promise not to transfer benefits to other units or individuals free of charge or under
unfair conditions, and not to damage the interests of the company by other means;
2. Promise to restrict my position-related consumption behavior;
3. Promise not to use the company's assets to engage in investment and consumption
Commitment
activities unrelated to the performance of duties;
on dilution of
the immediate 4. Promise that the remuneration system formulated by the board of directors or the
Commitments Director and return on non- compensation committee will be linked to the implementation of the company's measures to 7
Valid for Normal
made at IPO or senior executive public November
fill out the returns; long term performance
refinancing of the Company offering of A 2022
share and 5. Promise that the venting conditions of the future equity incentive plan will be linked to
measures to the implementation of the company's measures to fill out the returns if the company
be taken implements the equity incentive plan in the future, ;
6. From the issuance date of this Commitment to the completion of the non-public offering
of shares of the company, if the China Securities Regulatory Commission makes other new
regulations on filling out the return measures and commitments, and the above-mentioned
60
Annual Report 2023
commitments cannot meet such regulations of the China Securities Regulatory
Commission, I myself promise to issue supplementary commitments in accordance with the
latest regulations of the China Securities Regulatory Commission at that time;
7. As one of the subjects responsible for filling out the return measures, if I myself violate
the above commitments or refuse to perform the above commitments, I myself agree that
China Securities Regulatory Commission, Shenzhen Stock Exchange and other securities
regulatory authorities punish me or take relevant management measures according to the
relevant regulations and rules formulated or issued by them.
Whether
commitments
Yes
are fulfilled on
time
2. Concerning assets or project of the Company, which has profit forecast, and reporting period still in forecasting period, explain reasons of reaching the
original profit forecast
□Applicable Not applicable
61
Annual Report 2023
II. Non-operational fund occupation from controlling shareholders and its related party
□Applicable Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
III. External guarantee out of the regulations
□Applicable Not applicable
No external guarantee out of the regulations occurred in the period.
IV. Statement on the latest “modified audit report” by BOD
□Applicable Not applicable
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors (if
applicable) for “Qualified Opinion” that issued by CPA
□Applicable Not applicable
VI. Explanation of the changes in accounting polices, accounting estimates or correction of significant
accounting errors compared with the financial report of the previous year
Applicable □Not applicable
1. Significant changes in accounting policy
Content and reason for changes in The name of the report item that is
Affected amount
accounting policy significantly affected
In November 2022, the Ministry of
Finance issued the Interpretation No. 16
of Accounting Standards for Business
Enterprises (No. 31[2022] Cai Kuai)
(hereinafter referred to as "Interpretation
No. 16"), in which the“Accounting
treatment of deferred income tax related
See other notes for details See other notes for details
to assets and liabilities arising from a
single transaction not applicable to the
initial recognition exemption"will come
into effect on January 1, 2023. The
Company shall commence the
implementation from the date of the
regulation.
Other explanations:
On November 30, 2022, the Ministry of Finance issued Interpretation No. 16.The Company shall implement
the "Accounting treatment of deferred income tax related to assets and liabilities arising from a single transaction
not applicable to the initial recognition exemption" from January 1, 2023.
62
Annual Report 2023
Interpretation No. 16 clarifies that for a single transaction that is not a business combination, the
transaction does not affect the accounting profit or the taxable income (or deductible loss) at the time of the
transaction, and the assets and liabilities initially recognized result in the same amount of taxable temporary
differences and deductible temporary differences, for the taxable temporary differences and deductible
temporary differences arising from the initial recognition of assets and liabilities, the corresponding deferred tax
liabilities and deferred tax assets that are recognized separately when the transaction occursshall be in
accordance with Accounting Standard for Business Enterprises No. 18 - Income Tax and other relevant
provisions. The provisions will come into force on January 1, 2023, and for the above-mentioned transactions
that occur from the beginning of the earliest period of the financial report presentation period and the effective
date of this interpretationfor the first time of implementation of above-said regulation, the Company shall adjust
the cumulative impact to the opening retained earnings and other relevant financial statement items presented
for the earliest period of the financial report.
The adoption of Interpretation No. 16 by the Company does not have a material impact on the Company's
financial condition and operating results.
2. Changes in significant accounting estimates
There are no changes in the Company's significant accounting estimates during the reporting period.
3. Correction of accounting errors in the previous period
During the reporting period, the Company does not make any material corrections to prior period accounting
errors.
VII. Compare with last year’s financial report; explain changes in consolidation statement’s scope
Applicable □Not applicable
During the reporting period, Fujian Huaxinbao Jewelry Co., Ltd., Hainan Shenhua Industrial Co., Ltd.,
Shenzhen Huabao Zhenxuan Jewelry Co., Ltd. and Shenzhen Xinsen Precision Manufacturing Co., Ltd. were
newly added.
VIII. Appointment and non-reappointment (dismissal) of CPA
Accounting firm appointed
Name of domestic accounting firm Huaxing Certified Public Accountants （LLP）
Remuneration for domestic accounting firm (in 10 thousand
45
Yuan)
Continuous life of auditing service for domestic accounting
1
firm
Name of domestic CPA Huang Guoxiang, Fu Zhitao
Continuous life of auditing service for domestic accounting
1
firm
Re-appointed accounting firms in this period
Yes □No
Whether to hire an accounting firm during the audit
63
Annual Report 2023
□Yes No
Whether the change of accounting firm has fulfilled the examination and approval procedures
Yes □No
Detailed explanation of the change of employment and change of the accounting firm
In December 2023, the Company held the 3rd meeting of the Audit Committee of the Eleventh Board of
Directors, the 9th (interim) meeting of the Eleventh Board of Directors and the 3rd General Meeting of
Shareholders in 2023, respectively, which deliberated and passed the Proposal on Proposed Change of the
Accounting Firm, and agreed to change and hire Huaxing Certified Public Accountants (LLP) as the Company's
financial report audit and internal control audit institution in 2023 for a period of one year.
Appointment of internal control auditing accounting firm, financial consultant or sponsor
Applicable □Not applicable
1. During the reporting period, the company engaged Huaxing Certified Public Accountants （LLP） as the
auditing organ for internal control of the Company, and it is expected to pay 150,000 yuan for internal control
auditing.
2. Due to the non-public issuance of shares, the Company hired Sinolink Securities Co., Ltd. as the sponsor
institution. During the reporting period, Sinolink Securities performed continuous supervision duties, with
the continuous supervision period is from November 7, 2022 to December 31, 2023.
IX. Particular about delisting after annual report disclosed
□Applicable Not applicable
X. Bankruptcy reorganization
□Applicable Not applicable
No bankruptcy reorganization for the Company in reporting period
XI. Significant lawsuits and arbitration of the Company
Applicable □Not applicable
Amount Resulted an
Lawsuits involved (in accrual Trial result Execution of Disclosure Disclosure
Progress
(arbitration) 10 thousand liability and influence judgment date index
Yuan) (Y/N)
Contract
dispute over The final
The second
the urban ruling of this
instance has
renewal lawsuit will
ruled that the
project of not have a Juchao
defendant
Zhonghua significant Website
returned the Execution August
Garden 3,085.9 No adverse (www.cninfo.
deposit of completed 23,2022
Phase II- impact on the com.cn)
RMB 10
Plaintiff(She Company's (2022-002)
million and
nzhen Jianzhi current
interest to the
Industrial profits or
plaintiff.
Development future profits
Co., Ltd);
64
Annual Report 2023
Defendant
(Shenzhen
China
Bicycle
Company
(Holdings)
Co., Ltd.
Counter-
claim in the
contract
dispute on
urban
renewal
project of
Zhonghua
Garden The second The second
Juchao
Phase II- instance has instance has
Website
Plaintiff(She ruled that the ruled that the Execution August 23,
600 No (www.cninfo.
nzhen China plaintiff's plaintiff's completed 2022
com.cn)
Bicycle counterclaim counterclaim
(2022-019)
Company was rejected was rejected
(Holdings)
Co., Ltd.);
Defendant
(Shenzhen
Jianzhi
Industrial
Development
Co., Ltd)
Sale &
purchase
contract
dispute-
The first Made 80% of
Plaintiff
instance the bad debt
(Shenzhen
ruled in favor provision in Juchao
China
of the 2021-2022. Website
Bicycle Under April
1,834.81 No Company And the (www.cninfo.
Company execution 21,2023
andit’s provision for com.cn)
(Holdings)
entered the bad debts (2023-007)
Co., Ltd.);
execution made in 2023
Defendant(G
stage is up to 90%
uangshuiJiax
u Energy
Technology
Co., Ltd.)
Sale &
purchase
contract The first Made 80% of
dispute- instance the bad debt
Plaintiff ruled in favor provision in Juchao
(Shenzhen of the 2021-2022. Website
Emmelle Under April
661.91 No Company And the (www.cninfo.
Industrial execution 21,2023
Co., Ltd); andit’s provision for com.cn)
Defendant(G entered the bad debts (2023-007)
uangshuiJiax execution made in 2023
u Energy stage is up to 90%
Technology
Co., Ltd.)
65
Annual Report 2023
XII. Penalty and rectification
□Applicable Not applicable
The Company had no penalty and rectification in the Period
XIII. Integrity of the company and its controlling shareholders and actual controllers
□Applicable Not applicable
XIV. Major related transaction
1. Related transaction with routine operation concerned
Applicable □Not applicable
66
Annual Report 2023
Whethe
Trading r over
Related Clearing
Type of Content Proportion limit the Availabl
Related transaction form for Date of
Related Relationshi related of related Pricing in similar approve approve e similar
transactio amount (in related disclosur Index of disclosure
party p transactio transactio principle transactio d (in 10 d market
n price 10 thousand transactio e
n n ns thousan limited price
Yuan) n
d Yuan) or not
(Y/N)
The Found more in the
Pricing
enterprises “Recognition of the
based on
controlled Daily Related
Related market
by the Transactions for
transactio price
Fuzhou controlling Sale of year of 2022 and
n with according Not
Zuankinso subsidiary goods to Market 69,859,442.5 Settlemen Novemb Expected Daily
routine to the 36.74% 7,000 No applicabl
n Jewelry of the related pricing 2 t in cash er 1,2023 Related
operation principle e
Co., Ltd. Company party Transactions for
concerne of fairness
with 35% 2023” on Juchao
d and
stock Website
impartialit
participate (www.cninfo.com.c
y
d n)
The
enterprises Found more in the
Pricing
controlled “Recognition of the
based on
by the Daily Related
Related market
affiliates of Transactions for
transactio price
Fuzhou the Sale of year of 2022 and
n with according Not
Rongrun controlling goods to Market 119,775,927. Settlemen Novemb Expected Daily
routine to the 63.00% 12,000 No applicabl
Jewelry subsidiary related pricing 8 t in cash er 1,2023 Related
operation principle e
Co., Ltd. of the party Transactions for
concerne of fairness
Company 2023” on Juchao
d and
with 35% Website
impartialit
stock (www.cninfo.com.c
y
participate n)
d
Shenzhen The Related Pricing
Zuankinso enterprises transactio Sale of based on
Not
n Jewelry controlled n with goods to market Market Settlemen
484,376.29 0.25% 0 No applicabl Not applicable
Gold by the routine related price pricing t in cash
e
Supply affiliates of operation party according
Chain Co., the concerne to the
67
Annual Report 2023
Ltd. controlling d principle
subsidiary of fairness
of the and
Company impartialit
with 35% y
stock
participate
d
190,119,746.
Total -- -- -- 19,000 -- -- -- -- --
61
Detail of sales return with major amount involved Not applicable
Report the actual implementation of the daily
related transactions which were projected about
Not applicable
their total amount by types during the reporting
period (if any)
Reasons for major differences between trading
Not applicable
price and market reference price (if applicable)
Note: (1) According to the Rules for the Listing of Stocks on the Shenzhen Stock Exchange, based on the prudent consideration, the Company determined that 12 months before the industrial
and commercial registration of the purchase of minority shareholders' equity in the holding subsidiary, Fuzhou Zuanjinsen and Fuzhou Rongrun were related parties of the Company, and the
relevant transaction that occurred was related party transaction. Based on this determination, the statistical period of related party transaction in the current period is the whole year of 2023, and
the total amount of related party transactions is RMB 190,119,746.61. (2) According to the accounting rules and the notes to the audit report, the industrial and commercial registration of the
Company's purchase of minority shareholders' equity in the holding subsidiary was completed in early August 2023. Based on that determination, the total amount of related party transactions in
the statistical period from January to July 2023 is RMB 109,158,498.12.
2. Related transactions by assets acquisition and sold
Applicable □Not applicable
Appraised
Carrying
value of
value of Transferred
assets Gain/loss on
Related assets price Settlement Date of
Relationship Type Contents Pricing transferred trading(10,000 Index of disclosure
party transferred (10,000 terms disclosure
(10,000 yuan)
(10,000 yuan)
yuan) (if
yuan)
any)
Shenzhen Shenzhen Purchasing Based on the Refer to
Zuankinson
Zuankinson Purchase the minority assessment Settlement 2023-06- (www.cninfo.com.cn) for
Jewelry 1418.19 2,555 2,555 0
Jewelry Gold of equity shareholders’ report ‘Asset in cash 07 details: Announcement on
Gold Supply equity from Appraisal Report Purchase of the Minority
68
Annual Report 2023
Supply Chain Co., controlling of the Proposed Interest in Controlling
Chain Co., Ltd is the subisdiary Equity Transfer Subsidiary and Related
shareholder
Ltd of Shenzhen Transactions (Notice No.:
of Shenzhen
Xinsen Xinsen Jewelry 2023-019)
Jewelry Gold Supply
Gold Chain Co., Ltd
Supply Involving the
Chain Co., Value of Certain
Ltd who Shareholders’
hold 35%
shares-the Interests (YW
controlling Appraisal
subsidiary Zi[2023] No.
of the 041) issued by
Company, Yu Wei
International
Asset Appraisal
(Shenzhen ) Co.,
Ltd., the income
method has been
selected in the
report
Based on the assessment report ‘Asset Appraisal Report of the Proposed Equity Transfer of Shenzhen Xinsen Jewelry Gold Supply
Chain Co., Ltd Involving the Value of Certain Shareholders’ Interests ’’(YW Appraisal Zi[2023] No. 041) issued by Yu Wei
International Asset Appraisal (Shenzhen ) Co., Ltd., the income method has been selected in the report. The Specific assessment are as
follows: at the valuation date, carrying value of total assets under Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd was 44.0619
Reasons for major differences between transferred million yuan; carrying value of total liabilities amounted to 4.6527 million yuan; carrying value of total equity amounted to 39.4092
price and carrying value or appraised value (if any) million yuan. At the valuation date, carrying value of total equity under Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd was 73
million yuan, the appraisal value increased by 33.5908 million yuan, or 85.24%. among which, the 35% equity held by Shenzhen
Zuankinson Jewelry Gold Supply Chain Co., Ltd was evaluated as 25.55 million yuan. The appreciation was mainly due to the items
that not show in the financial statement are considered in the assessment from the perspective of the overall profitability of the
business, including customer resources, human resources and management efficiency.
The minority equity purchasing is beneficial to the further resource integration, and optimize the overall resource allocation in a better
way, and enhance the competitiveness and comprehensive strength in field of jewelry and gold business. Capital sources are from the
Impact on operation result and financial status
owned fund of the Company, and the matter will not have major adverse impact on operation of the Company, and there is no damage
to the listed company, especially to the small and medium-sized shareholders.
Performance during the reporting period if relevant
Not applicable
trading involves a performance covenant
69
Annual Report 2023
3. Main related transactions of mutual investment outside
□Applicable Not applicable
No main related transactions of mutual investment outside for the Company in reporting period.
4. Contact of related credit and debt
Applicable □Not applicable
Whether exist non-operating contact of related credit and debt or not
Yes □No
Claim receivable from related party
Whether Current
Balance Current Current Balance
has non- amount
at period- recovery( interest(1 at period-
Related Relations Causes of business increased( Interest
begin(10 10 0 end(10
party hip formation capital 10 rate
thousand thousand thousand thousand
occupyin thousand
Yuan) Yuan) Yuan) Yuan)
g or not Yuan)
Wansheng
Controllin Performa
Industrial
g nce
Holdings( No 0.00 1209.81 0.00 0.00% 0.00 1209.81
sharehold commitm
Shenzhen
er ent
) Co., Ltd.
The impact of the
Due to the failure of the controlling shareholder, Wansheng Industrial Holdings (Shenzhen) Co., Ltd.,
related claims on the
to complete its performance commitment in 2023, the performance compensation of RMB
company's operating
12,098,051.76 receivable by Shenzhen China from Wansheng in 2023 will be included in the capital
results and financial
reserve-share capital premium.
position
Debts payable to related party
Balance at Current Current Balance at
amount Current
period- amount period-
Related Relationshi Causes of interest(10
begin(10 increased(1 returned (10 Interest rate end(10
party p formation thousand
thousand 0 thousand thousand thousand
Yuan)
Yuan) Yuan) Yuan) Yuan)
Shenzhen
Guosheng Shareholde
Subsidiary
Energy r with over
Emmelle 650 0 0 0.00% 0 650
Investment 5% shares
loan
Developme held
nt Co., Ltd.
Influence on operation
result and financial statue
N/A
of the Company from
related debts
5. Contact with the related finance companies
□Applicable Not applicable
There are no deposits, loans, credits or other financial business between the finance companies with associated
relationship and related parties
6. Transactions between the finance company controlled by the Company and related parties
□Applicable Not applicable
There are no deposits, loans, credits or other financial business between the finance companies controlled by the
Company and related parties
70
Annual Report 2023
7. Other material related transactions
□Applicable Not applicable
The company had no other material related transactions in reporting period.
XV. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□Applicable Not applicable
No trusteeship occurred in reporting period.
(2) Contract
□Applicable Not applicable
No contract occurred in reporting period.
(3) Leasing
□Applicable Not applicable
No leasing occurred in reporting period.
2. Major guarantee
□Applicable Not applicable
No major guarantee occurred in reporting period.
Not applicable
3. Entrust others to cash asset management
(1) Trust financing
□Applicable Not applicable
No trust financing occurred in reporting period.
(2) Entrusted loans
□Applicable Not applicable
No entrusted loans occurred in reporting period.
4. Other material contracts
□Applicable Not applicable
No other material contracts occurred in reporting period.
XVI. Explanation on other significant events
□Applicable Not applicable
No explanation of other important events in reporting period.
71
Annual Report 2023
XVII. Significant event of subsidiary of the Company
□Applicable Not applicable
72
Annual Report 2023
Section VII. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
Capitaliza
New
Proportio Bonus tion of Proportio
Amount shares Others Subtotal Amount
n shares public n
issued
reserve
I.
137,842,2 137,836,9
Restricted 20.00% 0 0 0 -5,276 -5,276 20.00%
shares 62 86
1. State-
owned 0 0.00% 0 0 0 0 0 0 0.00%
shares
2. State-
owned
legal 0 0.00% 0 0 0 0 0 0 0.00%
person’s
shares
3. Other
137,842,2 137,836,9
domestic 20.00% 0 0 0 -5,276 -5,276 20.00%
shares 62 86
Including:
Domestic
137,836,9 137,836,9
legal 20.00% 0 0 0 0 0 20.00%
person’s 86 86
shares
Domestic
natural
5,276 0.00% 0 0 0 -5,276 -5,276 0 0.00%
person’s
shares
4. Foreign
0 0.00% 0 0 0 0 0 0 0.00%
shares
Including:
Foreign
legal 0 0.00% 0 0 0 0 0 0 0.00%
person’s
shares
Foreign
natural
0 0.00% 0 0 0 0 0 0 0.00%
person’s
shares
II.
551,342,6 551,347,9
Unrestrict 80.00% 0 0 0 5,276 5,276 80.00%
ed shares 71 47
1. RMB
302,979,6 302,984,9
Ordinary 43.96% 0 0 0 5,276 5,276 43.96%
shares 89 65
2.
Domestic
248,362,9 248,362,9
ally listed 36.04% 0 0 0 0 0 36.04%
foreign 82 82
shares
3.
Overseas
listed 0 0.00% 0 0 0 0 0 0 0.00%
foreign
shares
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
73
Annual Report 2023
III. Total 689,184,9 689,184,9
100.00% 0 0 0 0 100.00%
shares 33 33
Reasons for share changed
Applicable □Not applicable
Supervisor of the 9th Supervisory Committee Mr. Zheng Zhonghuan was outgoing for the offer-term expired
dated November 28, 2022.According to the Management Regulation of the Shares held by Director, Supervisor
and Senior Executives of the Listed Companies and their Changes, the shares held by supervisor of the
Company shall not be transferred within 6 months after their resignation. As of the current period end, shares
held by Mr. Heng Zhonghuan were unlocked, resulting in a decrease of 5,276 restricted shares.
Approval of share changed
□ApplicableNot applicable
Ownership transfer of share changed
□ApplicableNot applicable
Progress of shares buy-back
□ApplicableNot applicable
Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ApplicableNot applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable
to common shareholders of Company in latest year and period
□ApplicableNot applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ApplicableNot applicable
2. Changes of lock-up(restricted) shares
Applicable □Not applicable
In Share
Number of Number of
Shares restricted Shares restricted Cause of Dated of
Shareholder shares restricted shares released
at period-begin at period-end restriction released
in the Period in the Period
Executive lock- 6 months after
Zheng
5,276 0 5,276 0 up stock outgoing when
Zhonghuan
(Supervisor) session expired
Total 5,276 0 5,276 0 -- --
74
Annual Report 2023
II. Securities issuance and listing
1. Security offering (without preferred stock) in Reporting Period
□Applicable Not applicable
2. Changes of total shares and shareholders structure as well as explanation on changes of assets and
liability structure
□Applicable Not applicable
3. Existing internal staff shares
□Applicable Not applicable
III. Shareholders and actual controller of the Company
1. Amount of shareholders and particulars about shares holding
In Share
Total
preferred
Total shareholder
common s with Total preferred
Total shareholder voting shareholders with voting
common s at end of rights rights recovered at end of
shareholder 40,022 last month 75,669 recovered at 0 last month before annual 0
s at end of before end of report disclosed (if
the Period annual reporting applicable) (found in note
report period (if 8)
disclosed applicable)
(found in
note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders（Excluding shares lent through
refinancing)
Total Information of shares
Full name Amount of
Proportion shareholder Changes in Amount of
of Nature of un- pledged, tagged or frozen
of shares s at the end report restricted
Shareholde shareholder restricted State of
held of report period shares held Amount
rs shares held share
period
Wansheng Domestic
Industrial non-state-
137,836,98 137,836,98 Not
Holdings owned 20.00% 0 0 0
6 6 applicable
(Shenzhen) legal
Co., Ltd. person
Shenzhen
Domestic
Guosheng
non-state-
Energy Not
owned 9.22% 63,508,747 0 0 63,508,747 0
Investment applicable
legal
Developme
person
nt Co., Ltd.
UOB Kay
Foreign
Hian (Hong Not
legal 2.51% 17,284,885 1,377,035 0 17,284,885 0
Kong) applicable
person
Limited
Guosen Foreign
Not
Securities legal 2.02% 13,909,425 0 0 13,909,425 0
applicable
(HK) person
75
Annual Report 2023
Brokerage
Co., Ltd.
Shenwan
Hongyuan
Foreign
Securities Not
legal 1.20% 8,281,156 0 0 8,281,156 0
(Hong applicable
person
Kong) Co.,
Ltd.
Lhasa Domestic
Xingqing non-state-
Not
Network owned 0.67% 4,600,255 0 0 4,600,255 0
applicable
Technology legal
Co., Ltd. person
Domestic
Not
Li Huili nature 0.56% 3,891,124 0 0 3,891,124 0
applicable
person
Domestic
Ge Not
nature 0.44% 3,050,452 0 0 3,050,452 0
Zhiqiong applicable
person
Domestic
Not
Xu Hongbo nature 0.42% 2,927,319 0 0 2,927,319 0
applicable
person
China
Merchants Foreign
Not
Securities legal 0.42% 2,894,135 0 0 2,894,135 0
applicable
(HK) Co., person
Ltd
Strategy investors or
general corporation comes
top 10 common stock
N/A
shareholders due to
placement of new shares
(if any) (see note 3)
Li Huili, spouse of Ji Hanfei, the actual controller of Shenzhen Guosheng Energy Investment
Development Co., Ltd., holding B-share of the Company on behalf of Shenzhen Guosheng Energy
Explanation on associated
Investment Development Co., Ltd., other than that, the Company does not know whether the other
relationship among the
outstanding shareholders are related and whether the shareholders belong to persons acting in
aforesaid shareholders
concert regulated in the Administration of Disclosure of Information on the Change of Shareholders
in Listed Companies.
Description of the above
shareholders in relation to
delegate/entrusted voting N/A
rights and abstention from
voting rights.
Special note on the
repurchase account among
N/A
the top 10 shareholders (if
any) (see note 10)
Particular about top ten shareholders with un-restrict shares held
Type of shares
Shareholders’ name Amount of un-restrict shares held at Period-end
Type Amount
Shenzhen Guosheng RMB
Energy Investment 63,508,747 common 63,508,747
Development Co., Ltd. shares
Domestical
UOB Kay Hian (Hong ly listed
17,284,885 17,284,885
Kong) Limited foreign
shares
76
Annual Report 2023
Domestical
Guosen Securities (HK) ly listed
13,909,425 13,909,425
Brokerage Co., Ltd. foreign
shares
Domestical
Shenwan Hongyuan
ly listed
Securities (Hong Kong) 8,281,156 8,281,156
foreign
Co., Ltd.
shares
RMB
Lhasa Xingqing Network
4,600,255 common 4,600,255
Technology Co., Ltd.
shares
Li Huili 3,891,124 3,891,124
Domestical
ly listed
Ge Zhiqiong 3,050,452 3,050,452
foreign
shares
Domestical
ly listed
Xu Hongbo 2,927,319 2,927,319
foreign
shares
Domestical
China Merchants ly listed
2,894,135 2,894,135
Securities (HK) Co., Ltd foreign
shares
RMB
Shenzhen China Bicycle common 1,383,313
Company (Holdings) Co., shares
Ltd. -Special account for 2,602,402 Domestical
property disposal of ly listed
1,219,089
bankrupt enterprise foreign
shares
Expiation on associated
Li Huili, spouse of Ji Hanfei, the actual controller of Shenzhen Guosheng Energy Investment
relationship or consistent
Development Co., Ltd., holding B-share of the Company on behalf of Shenzhen Guosheng Energy
actors within the top 10
Investment Development Co., Ltd., other than that, the Company does not know whether the other
un-restrict shareholders
outstanding shareholders are related and whether the shareholders belong to persons acting in
and between top 10 un-
concert regulated in the Administration of Disclosure of Information on the Change of Shareholders
restrict shareholders and
in Listed Companies.
top 10 shareholders
Explanation on top 10
shareholders involving
N/A
margin business (if any)
(see note 4)
Lending of shares by the top ten shareholders participating in refinancing business
□ Applicable √ Not applicable
The top ten shareholders have changed from the previous period
□ Applicable √ Not applicable
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-
back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
2. Controlling shareholder of the Company
Nature of controlling shareholders: controlled by natural person
Type of controlling shareholders: Legal person
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Annual Report 2023
Legal person
Controlling shareholder Establishment date Organizational Code Main business
/Responsible person
Wansheng Industrial Investment in industry
91440300MA5DCB5K
Holdings (Shenzhen) Wang Shenghong 10 May 2016 (Separately declared
9A
Co., Ltd. for specific item)
Shareholdings in other
listed companies in and
out of China that
controlled and N/A
participated by the
controlling shareholder
during reporting period
Changes of controlling shareholder in reporting period
□ Applicable √ Not applicable
No changes of controlling shareholder for the Company in reporting period.
3. Actual controller and persons acting in concert
Nature of actual controller:Domestic nature person
Type of actual controller: Natural person
Whether to obtain the
Relationship with the actual
Actual controller Nationality residency in other countries or
controller
regions
Wang Shenghong The person himself P.R.C No
Principal occupation and
Wang Shenghong currently is the Chairman of the Company
position
The listed companies in and
out of China that controlled N/A
by Wang in the past 10 years
Changes of actual controller in reporting period
□ Applicable √ Not applicable
No changes of controlling shareholder for the Company in reporting period
Block Diagram of the ownership and control relations between the company and the actual controller
Actual controller controlling the Company by entrust or other assets management
□Applicable Not applicable
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Annual Report 2023
4. The total number of shares pledged by controlling shareholders or the first majority shareholder and
its persons acting in concert accounts for 80% of the shares held by them
□Applicable Not applicable
5. Particulars about other legal person shareholders with over 10% shares held
□Applicable Not applicable
6. Limitation and reducing the holdings of shares of controlling shareholders, actual controllers,
restructuring side and other commitment subjects
□Applicable Not applicable
IV. The specific implementation of shares buy-back during the reporting period
Implementation progress of shares buy-back
□Applicable Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□Applicable Not applicable
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Annual Report 2023
Section VIII. Preferred Stock
□Applicable Not applicable
The Company had no preferred stock in the Period.
80
Annual Report 2023
Section IX. Corporate Bonds
□Applicable Not applicable
81
Annual Report 2023
Section X. Financial Report
I. Audit Report
Type of audit opinion Standard Unqualified Opinion
Signing date of audit report 19 April 2024
Name of audit institute Huaxing Ceritified Public Accountants（LLP）
Name of the CPA Huang Gluoxiang, Fu Zhitao
Audit report
To Shareholders of Shenzhen China Bicycle Company (Holdings) Co., Ltd.
I. Auditor’s opinion
We have audited the financial statements under the name of Shenzhen China Bicycle Company (Holdings) Co.,
Ltd. (hereinafter the “CBC Company”), which included the consolidated and parent company’s balance sheet as
of 31 December 2023, the consolidated and parent company’s profit statement, the consolidated and parent
company’s statement of cash flow and the consolidated statement of changes in equity of the Company and parent
company’s for the year of 2023, together with the relevant annotations thereto.
We have the view that the attached financial statements are prepared in accordance with the Accounting Standards
for Business Enterprises in all material aspects, which reflect fairly the consolidated financial position of the
Company and parent company’s as of 31 December 2023 and the operating results and cash flow of the Company
and parent company’s for the year of 2023.
II. Basis for audit opinions
We conducted this audit under the requirements of the Auditing Standards of the Certified Public Accountant of
the PRC. The section headed “Certified Public Accountant’s responsibility for audit of financial statement” in the
audit report has further clarified our responsibilities under these standards. Pursuant to the code of professional
conduct as certified public accountant in the PRC, we are independent of the CBC Company and have performed
other responsibility as required by our professional ethics. We believe that the audit evidence obtained by us is
sufficient and adequate, which provides foundation for us to issue audit opinion.
III. Key audit items
Key audit items refer to those which in our opinion based on our professional judgment are the most important
issues in respect of audit for the current financial statements. We issue audit opinions on these issues in their entity
and provide no opinions separately for each of them.
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Annual Report 2023
Key audit items identified in our audit:
1. Revenue recognition
(1) Description of items
Shenzhen China Bicycle Company is mainly engaged in businesses such as gold jewelry, bicycles and
electric vehicles, and lithium battery materials. In 2023, the main business income of Shenzhen China Bicycle
Company was RMB 568,481,907.92, all of which was generated by domestic sales. Due to the large amount of
operating income, there may be potential misstatement in the authenticity of income and whether it is included
in the appropriate accounting period have a significant impact on the operating results of Shenzhen China
Bicycle Company in 2023. Therefore, we regard revenue recognition as a key audit item.
Please refer to the accounting policies described in Note III. (XXXIII) Income and Note V (XXVI)
Operating Income and Operating Costs to the financial statements.
(2) Audit response
For this key audit item, we have mainly implemented the following procedures:
① Understand, evaluate and test the effectiveness of the internal control design and operation related to
sales and collection in Shenzhen China Bicycle Company;
② Check the relevant clauses of customer contracts, pay attention to whether the pricing method,
acceptance method, delivery place and time limit, and settlement method have changed, and evaluate whether
the income recognition of Shenzhen China Bicycle Company conforms to the provisions of the Accounting
Standards for Business Enterprises and the disclosed accounting policies;
③ Inquire and understand the background information of major customers through open channels, such as
industrial and commercial registration materials, to confirm whether there is a potential unidentified related-
party relationship between customers and Shenzhen China Bicycle Company and related parties;
④ Implement substantive analysis procedures, such as the analysis of income growth changes and the
analysis of income, cost and gross profit margin of various products compared with the previous period, and
compare them with the same industry to judge whether the income amount in the current period fluctuates
abnormally;
⑤ Combined with the audit of accounts receivable, confirm with the main customers the current
transaction amount and balance by writing, and visit the important customers to verify the authenticity of the
income recognition of Shenzhen China Bicycle Company;
⑥ Carry out detail test, check major customer contracts, inbound and outbound orders, delivery notes and
delivery receipt records, etc.;
⑦ For the sales revenue recognized before and after the balance sheet date, sample the supporting
documents such as the outbound order and the customer's receipt form to evaluate whether the revenue is
included in the appropriate accounting period.
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Annual Report 2023
2. Impairment of accounts receivable
(1) Description of items
As of December 31, 2023, the balance of accounts receivable of Shenzhen China Bicycle Company was
RMB 221,327,608.93, and the balance of bad debt provision was RMB 25,034,475.93. Because the balance of
accounts receivable is significant and the assessment of bad debt provision involves the management's great
judgment, we regard the impairment of accounts receivable as a key audit item.
Please refer to the accounting policies stated in Note III. (XIII) Accounts Receivable and Note V. (III)
Accounts Receivable to the financial statements.
(2) Audit response
For this key audit item, we have mainly implemented the following procedures:
1. Understand and test the design and operation effectiveness of internal control related to internal control
of accounts receivable management.
2. Review the rationality and consistency of the management's accounting policies on the accrual of bad
debt provision of accounts receivable, and review whether the major standards of single amount determined by
the management are reasonable.
3. For accounts receivable with bad debt provision accrued individually, select samples to obtain the basis
for management to estimate the estimated future recoverable amount, including customer credit records, default
or delayed payment records and actual repayment after the period, and review the rationality.
4. For the accounts receivable with bad debt provision accrued according to the aging analysis method,
analyze the rationality of accounting estimation of bad debt provision for accounts receivable in Shenzhen
China Bicycle Company, and select samples to test the accuracy of aging.
IV. Other information
The management of CBC Company (hereinafter, the Management) is responsible for other information, which
includes the information covered in the Annual Report of 2023 except for the financial statements and our audit
report.
Our audit opinion issued on financial statement does not cover other information, and we would not issue any
form of verification conclusion for those information.
To prepare our audit on financial statement, we are required to read other information, and during the procedure,
to consider that whether other information differs materially from the financial statement or the information
obtained by us during the audit or whether there exits material error.
Based on the works done by us, in case we find any material error in other information, we shall report this fact.
In this regard, we have nothing to report.
V.Management’s responsibility for financial statement
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Annual Report 2023
The Management is responsible for preparing financial statements according to the Business Accounting
Standards which make fair reflection, and for designing, implementing and maintaining necessary internal control
system to make sure that there is no material misstatement in the financial statements due to fraud or mistake.
When preparing the financial statements, the management is responsible for assessing the Company’s ability of
continuous operation, disclosing the matters relating to continuous operation (if applicable) and applying the
assumption of continuous operation, unless the management plans to liquidate the Company, terminate operation
or has no other practicable choice.
The governance is responsible for monitoring the financial reporting process of the CBC Company.
VI. Auditor’s responsibility for audit of the financial statements
Our objectives are to obtain reasonable assurance about whether these financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with auditing standards will always be found in the presence of a material misstatement.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with auditing standards, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
(4) Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in these
85
Annual Report 2023
financial statements or, if such disclosures are inadequate, we have to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain adequate and appropriate audit evidence in relation to the financial information of the entities or
business transactions of the Company, in order to issue audit opinion on the financial statement. We are
responsible for guiding, supervising and executing the audit for the Group, and we accept full responsibility for
the audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and related safeguards (if applicable).
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
II. Financial statement
Unit in note of financial statement refers to CNY: RMB (Yuan)
1. Consolidated Balance Sheet
Prepared by Shenzhen China Bicycle Company (Holdings)Co., Ltd.
December 31, 2023
In RMB
Item December 31,2023 January 1,2023
Current assets:
Monetary fund 54,148,674.40 54,699,491.18
Settlement provisions
Capital lent
Trading financial assets
86
Annual Report 2023
Derivative financial assets
Note receivable 1,102,000.00
Account receivable 196,293,133.00 250,069,301.93
Receivable financing
Accounts paid in advance 3,821,181.16 4,286,935.15
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 12,868,327.03 438,477.82
Including: Interest receivable
Dividend receivable
Buying back the sale of financial assets
Inventory 81,916,039.14 48,206,866.81
Contractual assets
Assets held for sale
Non-current asset due within one year
Other current assets 11,216,095.44 35,453,106.62
Total current assets 360,263,450.17 394,256,179.51
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment
Investment in other equity instrument
Other non-current financial assets
Investment real estate
Fixed assets 2,288,610.10 2,304,402.38
Construction in progress
Productive biological asset
Oil and gas asset
Right-of-use assets 1,816,269.83 173,936.71
Intangible assets
Expense on Research and
Development
Goodwill
Long-term expenses to be apportioned
Deferred income tax asset 4,909,164.22 118,969.33
Other non-current assets 400,000.00 400,000.00
Total non-current assets 9,414,044.15 2,997,308.42
Total assets 369,677,494.32 397,253,487.93
Current liabilities:
87
Annual Report 2023
Short-term loans
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable
Account payable 6,213,665.02 2,877,423.23
Accounts received in advance
Contractual liability 633,114.64 791,762.84
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 1,149,151.81 769,992.42
Taxes payable 11,297,756.46 38,144,508.36
Other account payable 39,034,314.13 48,621,087.98
Including: Interest payable
Dividend payable
Commission charge and commission
payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one
847,403.05 210,892.38
year
Other current liabilities 82,304.90 102,929.16
Total current liabilities 59,257,710.01 91,518,596.37
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: Preferred stock
Perpetual bonds
Lease liability 1,018,630.12
Long-term account payable
Long-term wages payable
Accrual liability 887,342.00
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 1,018,630.12 887,342.00
Total liabilities 60,276,340.13 92,405,938.37
Owner’s equity:
Share capital 689,184,933.00 689,184,933.00
Other equity instrument
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Annual Report 2023
Including: Preferred stock
Perpetual bonds
Capital public reserve 779,554,450.36 778,824,470.95
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus public reserve 32,673,227.01 32,673,227.01
Provision of general risk
Retained profit -1,192,651,364.21 -1,210,553,312.45
Total owner’ s equity attributable to
308,761,246.16 290,129,318.51
parent company
Minority interests 639,908.03 14,718,231.05
Total owner’ s equity 309,401,154.19 304,847,549.56
Total liabilities and owner’ s equity 369,677,494.32 397,253,487.93
Legal Representative: Li Hai Person in charge of Accounting Works: Sun Longlong Person in charge of Accounting
Institution: She Hanxing
2. Balance Sheet of Parent Company
In RMB
Item December 31,2023 January 1,2023
Current assets:
Monetary fund 13,378,843.17 44,090,324.53
Trading financial assets
Derivative financial assets
Note receivable 400,000.00
Account receivable 185,121,769.23 213,762,895.33
Receivable financing
Accounts paid in advance 10,066,139.77 39,465,026.86
Other account receivable 17,300,576.60 209,606.79
Including: Interest receivable
Dividend receivable
Inventory 58,463,627.32 42,640,812.21
Contractual assets
Assets held for sale
Non-current asset due within one year
Other current assets
Total current assets 284,330,956.09 340,568,665.72
Non-current assets:
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 120,510,379.73 19,960,379.73
Investment in other equity instrument
Other non-current financial assets
Investment real estate
Fixed assets 2,052,548.31 2,209,564.35
Construction in progress
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Annual Report 2023
Productive biological asset
Oil and gas asset
Right-of-use assets 105,403.37
Intangible assets
Expense on Research and
Development
Goodwill
Long-term expenses to be apportioned
Deferred income tax asset 4,587,566.82
Other non-current assets 400,000.00 400,000.00
Total non-current assets 127,550,494.86 22,675,347.45
Total assets 411,881,450.95 363,244,013.17
Current liabilities:
Short-term loans
Trading financial liability
Derivative financial liability
Note payable
Account payable 2,660,407.22 275,843.19
Accounts received in advance
Contractual liability
Wage payable 381,092.87 403,771.82
Taxes payable 10,988,473.35 35,797,995.48
Other account payable 86,300,406.58 40,465,510.28
Including: Interest payable
Dividend payable
Liability held for sale
Non-current liabilities due within one
121,977.23
year
Other current liabilities
Total current liabilities 100,330,380.02 77,065,098.00
Non-current liabilities:
Long-term loans
Bonds payable
Including: Preferred stock
Perpetual bonds
Lease liability
Long-term account payable
Long-term wages payable
Accrual liability 878,000.00
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 878,000.00
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Annual Report 2023
Total liabilities 100,330,380.02 77,943,098.00
Owner’s equity:
Share capital 689,184,933.00 689,184,933.00
Other equity instrument
Including: Preferred stock
Perpetual bonds
Capital public reserve 790,922,522.71 778,824,470.95
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus public reserve 32,673,227.01 32,673,227.01
Retained profit -1,201,229,611.79 -1,215,381,715.79
Total owner’ s equity 311,551,070.93 285,300,915.17
Total liabilities and owner’ s equity 411,881,450.95 363,244,013.17
3. Consolidated Profit Statement
In RMB
Item 2023 2022
I. Total operation revenue 568,481,907.92 444,762,238.25
Including: Operation revenue 568,481,907.92 444,762,238.25
Interest income
Insurance gained
Commission charge and commission
income
II. Total operation cost 546,646,169.07 434,584,382.03
Including: Operation cost 531,606,161.37 416,884,753.17
Interest expense
Commission charge and commission
expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance
contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Tax and surcharge 1,034,078.59 3,757,974.70
Sales expenses 5,988,294.90 5,688,257.68
Administrative expenses 6,762,314.00 7,525,176.16
R&D expenses 1,270,512.42 924,567.70
Financial expenses -15,192.21 -196,347.38
Including: Interest expenses 55,573.42 33,239.03
Interest income 93,865.93 272,353.25
Add: Other income 122,592.35 146,351.13
Investment income (Loss is listed with “-”)
Including: Investment income on affiliated
company and joint venture
The termination of income recognition for
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Annual Report 2023
financial assets measured by amortized cost
Exchange income (Loss is listed with “-”)
Net exposure hedging income (Loss is
listed with “-”)
Income from change of fair value (Loss is
listed with “-”)
Loss of credit impairment (Loss is listed
-2,735,858.31 -15,516,772.44
with “-”)
Impairment loss on assets(Loss is listed
-316,923.59 -840,361.84
with “-”)
Income from assets disposal (Loss is listed
-16,957.53
with “-”)
III. Operation profit (Loss is listed with “-
18,905,549.30 -6,049,884.46
”)
Add: Non-operating income 5,925,720.13 4,081,450.75
Less: Non-operating expense 6,238,056.41 4,744,024.13
IV. Total profit (Loss is listed with “-”) 18,593,213.02 -6,712,457.84
Less: Income tax expense 587,660.15 1,269,885.38
V. Net profit (Net loss is listed with “-”) 18,005,552.87 -7,982,343.22
(i) Classify by business continuity
1.Continuous operating net profit (net loss
18,005,552.87 -7,982,343.22
listed with ‘-”)
2.Termination of net profit (net loss listed
with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to shareholders of
17,901,948.24 -7,616,378.75
parent company
2.Minority shareholders’ gains and losses 103,604.63 -365,964.47
VI. Net other comprehensive income after
taxation
Net other comprehensive income
attributable to owners of parent company
after taxation
(i) Other comprehensive income items
which will not be reclassified subsequently
to profit of loss
1.Changes of the defined benefit plans that
re-measured
2.Other comprehensive income under
equity method that cannot be transfer to
gain/loss
3.Change of fair value of investment in
other equity instrument
4.Fair value change of enterprise's credit
risk
5. Other
(ii) Other comprehensive income items
which will be reclassified subsequently to
profit or loss
1.Other comprehensive income under
equity method that can transfer to gain/loss
2.Change of fair value of other debt
investment
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Annual Report 2023
3.Amount of financial assets re-classify to
other comprehensive income
4.Credit impairment provision for other
debt investment
5.Cash flow hedging reserve
6.Translation differences arising on
translation of foreign currency financial
statements
7.Other
Net other comprehensive income
attributable to minority shareholders after
taxation
VII. Total comprehensive income 18,005,552.87 -7,982,343.22
Total comprehensive income attributable
17,901,948.24 -7,616,378.75
to owners of parent Company
Total comprehensive income attributable to
103,604.63 -365,964.47
minority shareholders
VIII. Earnings per share:
(i)Basic EPS 0.03 -0.01
(ii)Diluted EPS 0.03 -0.01
As for the enterprise combined under the same control, net profit of 0 Yuan achieved by the merged party before
combination while 0 Yuan achieved last period.
Legal Representative: Li Hai Person in charge of Accounting Works: Sun Longlong Person in charge of
Accounting Institution: She Hanxing
4. Profit Statement of Parent Company
In RMB
Item 2023 2022
I. Operation revenue 234,721,203.71 267,241,929.51
Less: Operation cost 214,007,010.45 253,488,605.37
Tax and surcharge 889,588.67 3,606,282.77
Sales expenses 110,531.34 489,404.45
Administrative expenses 2,811,080.04 2,191,110.35
R&D expenses 519,368.85 396,209.62
Financial expenses -39,436.54 -40,271.90
Including: Interest expenses -7,266.83 15,022.20
Interest income 40,936.29 60,656.53
Add: Other income 122,085.77 126,559.52
Investment income (Loss is listed with “-
”)
Including: Investment income on
affiliated company and joint venture
The termination of income recognition
for financial assets measured by
amortized cost(Loss is listed with “-”)
Net exposure hedging income (Loss is
listed with “-”)
Income from change of fair value (Loss
is listed with “-”)
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Annual Report 2023
Loss of credit impairment (Loss is listed
-1,467,660.13 -11,110,711.22
with “-”)
Impairment loss on assets(Loss is listed
-20,908.38 -729,605.75
with “-”)
Income from assets disposal (Loss is
-16,957.53
listed with “-”)
II. Operation profit(Loss is listed with “-
15,056,578.16 -4,620,126.13
”)
Add: Non-operating income 4,656,019.17 4,078,353.41
Less: Non-operating expense 6,227,581.37 4,715,083.72
III. Total profit (Total losses are listed
13,485,015.96 -5,256,856.44
with “-”)
Less: Income tax expense -667,088.04 1,117,279.57
IV. Net profit (Net loss is listed with “-”) 14,152,104.00 -6,374,136.01
(i)Continuous operating net profit (net
14,152,104.00 -6,374,136.01
loss listed with ‘-”)
(ii)Termination of net profit (net loss
listed with ‘-”)
V. Net other comprehensive income after
taxation
(i) Other comprehensive income items
which will not be reclassified
subsequently to profit of loss
1.Changes of the defined benefit plans
that re-measured
2.Other comprehensive income under
equity method that cannot be transfer to
gain/loss
3.Change of fair value of investment in
other equity instrument
4.Fair value change of enterprise's credit
risk
5. Other
(ii) Other comprehensive income items
which will be reclassified subsequently
to profit or loss
1.Other comprehensive income under
equity method that can transfer to
gain/loss
2.Change of fair value of other debt
investment
3.Amount of financial assets re-classify
to other comprehensive income
4.Credit impairment provision for other
debt investment
5.Cash flow hedging reserve
6.Translation differences arising on
translation of foreign currency financial
statements
7.Other
VI. Total comprehensive income 14,152,104.00 -6,374,136.01
VII. Earnings per share:
(i)Basic EPS
(ii)Diluted EPS
94
Annual Report 2023
5. Consolidated Cash Flow Statement
In RMB
Item 2023 2022
I. Cash flows arising from operating
activities:
Cash received from selling commodities
693,290,103.64 280,153,474.61
and providing labor services
Net increase of customer deposit and
interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from
other financial institution
Cash received from original insurance
contract fee
Net cash received from reinsurance
business
Net increase of insured savings and
investment
Cash received from interest,
commission charge and commission
Net increase of capital borrowed
Net increase of capital from repurchase
business
Net cash received by agents in sale and
purchase of securities
Write-back of tax received 211,285.93
Other cash received concerning
7,045,188.89 9,804,457.72
operating activities
Subtotal of cash in-flow arising from
700,335,292.53 290,169,218.26
operation activity
Cash paid for purchasing commodities
632,792,810.92 522,417,130.69
and receiving labor service
Net increase of customer loans and
advances
Net increase of deposits in central bank
and interbank
Cash paid for original insurance contract
compensation
Net increase of capital lent
Cash paid for interest, handling charge
and commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff 7,436,185.68 5,682,412.88
Taxes paid 10,892,486.15 1,289,781.65
Other cash paid concerning operating
19,240,979.16 22,198,959.07
activities
Subtotal of cash out-flow arising from
670,362,461.91 551,588,284.29
operation activity
Net cash flow arising from operating
29,972,830.62 -261,419,066.03
activities
II. Cash flows arising from investing
activities:
95
Annual Report 2023
Cash received from recovering
investment
Cash received from investment income
Net cash received from disposal of fixed,
50,000.00
intangible and other long-term assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning investing
activities
Subtotal of cash in-flow arising from
50,000.00
investment activity
Cash paid for purchasing fixed,
191,819.97 40,164.10
intangible and other long-term assets
Cash paid for investment
Net increase of mortgaged loans
Net cash received from subsidiaries and
other units obtained
Other cash paid concerning investing
activities
Subtotal of cash out-flow arising from
191,819.97 40,164.10
investment activity
Net cash flow arising from investment
-191,819.97 9,835.90
activities
III. Cash flows arising from financing
activities:
Cash received from absorbing
290,292,780.18
investment
Including: Cash received from absorbing
minority shareholders’ investment by
subsidiaries
Cash received from loans
Other cash received concerning
9,000,000.00
financing activities
Subtotal of cash in-flow arising from
299,292,780.18
financing activity
Cash paid for settling debts
Cash paid for dividend and profit
distributing or interest paying
Including: Dividend and profit of
minority shareholder paid by subsidiaries
Other cash paid concerning financing
26,555,205.60 20,207,638.62
activities
Subtotal of cash out-flow arising from
26,555,205.60 20,207,638.62
financing activity
Net cash flow arising from financing
-26,555,205.60 279,085,141.56
activities
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increased amount of cash and cash
3,225,805.05 17,675,911.43
equivalent
Add: Balance of cash and cash
50,922,869.35 33,246,957.92
equivalents at the period -begin
VI. Balance of cash and cash equivalents
54,148,674.40 50,922,869.35
at the period -end
96
Annual Report 2023
6. Cash Flow Statement of Parent Company
In RMB
Item 2023 2022
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 292,088,998.41 99,421,799.26
services
Write-back of tax received
Other cash received concerning
248,405,820.05 26,085,946.66
operating activities
Subtotal of cash in-flow arising from
540,494,818.46 125,507,745.92
operation activity
Cash paid for purchasing commodities
253,319,398.18 336,871,285.17
and receiving labor service
Cash paid to/for staff 2,277,577.85 1,220,883.46
Taxes paid 7,118,997.86 460,792.02
Other cash paid concerning operating
204,138,993.70 34,421,627.82
activities
Subtotal of cash out-flow arising from
466,854,967.59 372,974,588.47
operation activity
Net cash flow arising from operating
73,639,850.87 -247,466,842.55
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment income
Net cash received from disposal of
fixed, intangible and other long-term 50,000.00
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning investing
activities
Subtotal of cash in-flow arising from
50,000.00
investment activity
Cash paid for purchasing fixed,
intangible and other long-term assets
Cash paid for investment 100,550,000.00
Net cash received from subsidiaries and
other units obtained
Other cash paid concerning investing
activities
Subtotal of cash out-flow arising from
100,550,000.00
investment activity
Net cash flow arising from investment
-100,550,000.00 50,000.00
activities
III. Cash flows arising from financing
activities:
Cash received from absorbing
290,292,780.18
investment
Cash received from loans
Other cash received concerning
9,000,000.00
financing activities
Subtotal of cash in-flow arising from
299,292,780.18
financing activity
97
Annual Report 2023
Cash paid for settling debts
Cash paid for dividend and profit
distributing or interest paying
Other cash paid concerning financing
114,710.40 19,085,278.53
activities
Subtotal of cash out-flow arising from
114,710.40 19,085,278.53
financing activity
Net cash flow arising from financing
-114,710.40 280,207,501.65
activities
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increased amount of cash and cash
-27,024,859.53 32,790,659.10
equivalent
Add: Balance of cash and cash
40,403,702.70 7,613,043.60
equivalents at the period -begin
VI. Balance of cash and cash equivalents
13,378,843.17 40,403,702.70
at the period -end
7. Statement of Changes in Owners’ Equity (Consolidated)
Current amount
In RMB
2023
Owners’ equity attributable to the parent Company
Other equity Othe
instrument Capi r Surp Prov Total
Less: Reas Min own
Item Shar tal com lus ision Retai ority
Inve onab er’ s
e Pref publi preh publi of ned Othe Subt inter
erre Perp ntory le equit
capit Othe c ensiv c gene profi r otal ests
d etual share reser y
al r reser e reser ral t
stoc bond s ve
k s ve inco ve risk
me
I. The
-
ending 689, 778, 32,6 290, 14,7 304,
1,21
balance 184, 824, 73,2 129, 18,2 847,
0,55
of the 933. 470. 27.0 318. 31.0 549.
3,31
previous 00 95 1 51 5 56
2.45
year
Ad
d:
Changes
of
accounti
ng
policy
前
Error
correcti
on of
the last
period
o
Other
II. The 689, 778, 32,6 - 290, 14,7 304,
98
Annual Report 2023
beginnin 184, 824, 73,2 1,21 129, 18,2 847,
g 933. 470. 27.0 0,55 318. 31.0 549.
balance 00 95 1 3,31 51 5 56
of the 2.45
current
year
III.
Increase
/
Decreas -
17,9 18,6
e in the 729, 14,0 4,55
01,9 31,9
period 979. 78,3 3,60
48.2 27.6
(Decrea 41 23.0 4.63
4 5
se is 2
listed
with “-
”)
(i) Total 17,9 17,9 18,0
103,
compreh 01,9 01,9 05,5
604.
ensive 48.2 48.2 52.8
63
income 4 4 7
(ii)
- -
Owners’
729, 729, 14,1 13,4
devoted
979. 979. 81,9 51,9
and
41 41 27.6 48.2
decrease
5 4
d capital
1．Com
mon
shares
invested
by
owners
2．Capi
tal
invested
by
holders
of other
equity
instrume
nts
3． Am
ount
reckone
d into
owners
equity
with
share-
based
payment
729, 729, - -
4．Othe
979. 979. 14,1 13,4
r
41 41 81,9 51,9
99
Annual Report 2023
27.6 48.2
5 4
(iii)
Profit
distribut
ion
1．With
drawal
of
surplus
public
reserve
2．With
drawal
of
general
risk
provisio
ns
3．Distr
ibution
for
owners
(or
sharehol
ders)
4．Othe
r
(iv)Carr
ying
forward
internal
owners’
equity
1．Tran
sfer of
capital
reserves
to
capital
(or share
capital)
2．Tran
sfer of
surplus
public
reserves
to
capital
(or share
capital)
3．Rem
edying
loss
with
100
Annual Report 2023
surplus
public
reserve
4．Carr
y-over
retained
earnings
from the
defined
benefit
plans
5．Carr
y-over
retained
earnings
from
other
compreh
ensive
income
6．Othe
r
(v)Reas
onable
reserve
1．With
drawal
in the
current
period
2．Usa
ge in the
current
period
(vi)
Other
IV.
-
Balance 689, 779, 32,6 308, 309,
1,19 639,
at the 184, 554, 73,2 761, 401,
2,65 908.
end of 933. 450. 27.0 246. 154.
1,36 03
the 00 36 1 16 19
4.21
period
Amount of the previous period
In RMB
2022
Owners’ equity attributable to the parent Company
Other equity Othe
Capi Surp Prov Total
instrument Less: r Reas Min
Item Shar tal lus ision Retai own
Inve com onab ority
e publi publi of ned Othe Subt er’ s
Prefe Perp ntory preh le inter
capit Othe c c gene profi r otal equit
rred etual share ensiv reser ests
al r reser reser ral t y
stock bond s e ve
ve ve risk
s inco
101
Annual Report 2023
me
I.
The
endi
ng -
551, 627, 32,6 15,0 24,0
bala 1,20 8,91
347, 834, 73,2 84,1 02,7
nce 2,93 8,53
947. 297. 27.0 95.5 33.6
of 6,93 8.16
00 85 1 2 8
the 3.70
previ
ous
year
Add:
Chan
ges
of
acco
untin
g
polic
y
前
Error
corre
ction
of
the
last
perio
d
o
Othe
r
II.
The
begi
nnin
-
g 551, 627, 32,6 15,0 24,0
1,20 8,91
bala 347, 834, 73,2 84,1 02,7
2,93 8,53
nce 947. 297. 27.0 95.5 33.6
6,93 8.16
of 00 85 1 2 8
3.70
the
curre
nt
year
III.
Incre
ase/
Decr
137, 150, - 281, - 280,
ease
836, 990, 7,61 210, 365, 844,
in
986. 173. 6,37 780. 964. 815.
the
00 10 8.75 35 47 88
perio
d
(Dec
rease
102
Annual Report 2023
is
liste
d
with
“-”)
(i)
Total
com - - - -
preh 7,61 7,61 365, 7,98
ensiv 6,37 6,37 964. 2,34
e 8.75 8.75 47 3.22
inco
me
(ii)
Own
ers’
devo
137, 150, 288, 288,
ted
836, 990, 827, 827,
and
986. 173. 159. 159.
decr
00 10 10 10
ease
d
capit
al
1．
Com
mon
share 137, 150, 288, 288,
s 836, 990, 827, 827,
inves 986. 173. 159. 159.
ted 00 10 10 10
by
own
ers
2．
Capi
tal
inves
ted
by
hold
ers
of
other
equit
y
instr
ume
nts
3．
Amo
unt
reck
oned
into
own
103
Annual Report 2023
ers
equit
y
with
share
-
base
d
pay
ment
4．
Othe
r
(iii)
Profi
t
distri
butio
n
1．
With
draw
al of
surpl
us
publi
c
reser
ve
2．
With
draw
al of
gene
ral
risk
provi
sions
3．
Distr
ibuti
on
for
own
ers
(or
share
hold
ers)
4．
Othe
r
(iv)C
arryi
ng
104
Annual Report 2023
forw
ard
inter
nal
own
ers’
equit
y
1．T
ransf
er of
capit
al
reser
ves
to
capit
al (or
share
capit
al)
2．T
ransf
er of
surpl
us
publi
c
reser
ves
to
capit
al (or
share
capit
al)
3．
Rem
edyi
ng
loss
with
surpl
us
publi
c
reser
ve
4．
Carr
y-
over
retai
ned
earni
ngs
105
Annual Report 2023
from
the
defin
ed
bene
fit
plans
5．
Carr
y-
over
retai
ned
earni
ngs
from
other
com
preh
ensiv
e
inco
me
6．
Othe
r
(v)R
easo
nabl
e
reser
ve
1．
With
draw
al in
the
curre
nt
perio
d
2．
Usag
e in
the
curre
nt
perio
d
(vi)
Othe
r
IV. 689, 778, 32,6 - 290, 14,7 304,
Bala 184, 824, 73,2 1,21 129, 18,2 847,
nce 933. 470. 27.0 0,55 318. 31.0 549.
106
Annual Report 2023
at 00 95 1 3,31 51 5 56
the 2.45
end
of
the
perio
d
8. Statement of Changes in Owners’ Equity (Parent Company)
Current amount
In RMB
2023
Other equity instrument Other
Less: compr Surplu Total
Item Capital Reaso Retain
Share Preferr Invent ehensi s owner’
Perpet public nable ed Other
capital ed Other ory ve public s
ual reserve reserve profit
stock shares incom reserve equity
bonds e
I. The
ending
-
balanc 689,18 778,82 32,673 285,30
1,215,
e of 4,933. 4,470. ,227.0 0,915.
381,71
the 00 95 1 17
5.79
previo
us year
A
dd:
Chang
es of
accoun
ting
policy
前
Error
correct
ion of
the last
period
其
Other
II. The
beginn
ing -
689,18 778,82 32,673 285,30
balanc 1,215,
4,933. 4,470. ,227.0 0,915.
e of 381,71
00 95 1 17
the 5.79
current
year
III.
Increas
12,098 14,152 26,250
e/
,051.7 ,104.0 ,155.7
Decrea
6 0 6
se in
the
107
Annual Report 2023
period
(Decre
ase is
listed
with “-
”)
(i)
Total
compr 14,152 14,152
ehensi ,104.0 ,104.0
ve 0 0
incom
e
(ii)
Owner
s’
12,098 12,098
devote
,051.7 ,051.7
d and
6 6
decrea
sed
capital
1．Co
mmon
shares
investe
d by
owners
2．Ca
pital
investe
d by
holder
s of
other
equity
instru
ments
3． A
mount
reckon
ed into
owners
equity
with
share-
based
payme
nt
12,098 12,098
4．Ot
,051.7 ,051.7
her
6 6
(iii)
Profit
distrib
ution
108
Annual Report 2023
1．Wi
thdraw
al of
surplus
public
reserve
2．Dis
tributi
on for
owners
(or
shareh
olders)
3．Ot
her
(iv)Car
rying
forwar
d
interna
l
owners
’
equity
1．Tra
nsfer
of
capital
reserve
s to
capital
(or
share
capital
)
2．Tra
nsfer
of
surplus
public
reserve
s to
capital
(or
share
capital
)
3．Re
medyi
ng loss
with
surplus
public
reserve
4．Ca
109
Annual Report 2023
rry-
over
retaine
d
earnin
gs
from
the
define
d
benefit
plans
5．Ca
rry-
over
retaine
d
earnin
gs
from
other
compr
ehensi
ve
incom
e
6．Ot
her
(v)Rea
sonabl
e
reserve
1．Wi
thdraw
al in
the
current
period
2．Us
age in
the
current
period
(vi)
Other
IV.
Balanc -
689,18 790,92 32,673 311,55
e at the 1,201,
4,933. 2,522. ,227.0 1,070.
end of 229,61
00 71 1 93
the 1.79
period
Amount of the previous period
In RMB
110
Annual Report 2023
2022
Other equity instrument Other
Less: compr Surplu Total
Item Capital Reaso Retain
Share Preferr Invent ehensi s owner’
Perpet public nable ed Other
capital ed Other ory ve public s
ual reserve reserve profit
stock shares incom reserve equity
bonds e
I. The
ending
-
balanc 551,34 627,83 32,673
1,209, 2,847,
e of 7,947. 4,297. ,227.0
007,57 892.08
the 00 85 1
9.78
previo
us year
Add:
Chang
es of
accoun
ting
policy
前
Error
correct
ion of
the last
period
其
Other
II. The
beginn
ing -
551,34 627,83 32,673
balanc 1,209, 2,847,
7,947. 4,297. ,227.0
e of 007,57 892.08
00 85 1
the 9.78
current
year
III.
Increas
e/
Decrea
se in
137,83 150,99 - 282,45
the
6,986. 0,173. 6,374, 3,023.
period
00 10 136.01 09
(Decre
ase is
listed
with “-
”)
(i)
Total
- -
compr
6,374, 6,374,
ehensi
136.01 136.01
ve
incom
111
Annual Report 2023
e
(ii)
Owner
s’
137,83 150,99 288,82
devote
6,986. 0,173. 7,159.
d and
00 10 10
decrea
sed
capital
1．Co
mmon
137,83 150,99 288,82
shares
6,986. 0,173. 7,159.
investe
00 10 10
d by
owners
2．Ca
pital
investe
d by
holder
s of
other
equity
instru
ments
3． A
mount
reckon
ed into
owners
equity
with
share-
based
payme
nt
4．Ot
her
(iii)
Profit
distrib
ution
1．Wi
thdraw
al of
surplus
public
reserve
2．Dis
tributi
on for
owners
(or
shareh
olders)
112
Annual Report 2023
3．Ot
her
(iv)Car
rying
forwar
d
interna
l
owners
’
equity
1．Tra
nsfer
of
capital
reserve
s to
capital
(or
share
capital
)
2．Tra
nsfer
of
surplus
public
reserve
s to
capital
(or
share
capital
)
3．Re
medyi
ng loss
with
surplus
public
reserve
4．Ca
rry-
over
retaine
d
earnin
gs
from
the
define
d
benefit
plans
5．Ca
113
Annual Report 2023
rry-
over
retaine
d
earnin
gs
from
other
compr
ehensi
ve
incom
e
6．Ot
her
(v)Rea
sonabl
e
reserve
1．Wi
thdraw
al in
the
current
period
2．Us
age in
the
current
period
(vi)
Other
IV.
Balanc -
689,18 778,82 32,673 285,30
e at the 1,215,
4,933. 4,470. ,227.0 0,915.
end of 381,71
00 95 1 17
the 5.79
period
III. Basic information
1. Company Profile
According to the Approval Document SFBF (1991) No. 888 issued by the People’s Government of Shenzhen,
Shenzhen China Bicycle Company (Holdings) Co., Ltd. (hereinafter referred to as the CBC) was reincorporated as
the company limited by shares in November 1991. On 28 December 1991, upon the Approval Document
SRYFZ(1991) No. 119 issued by Shenzhen Special Economic Zone Branch of the People’s Bank of China, the
Company got listed on Shenzhen Stock Exchange. Registered of the Company amounted as 689,184,933.00 Yuan.
Legal representative: Wang Shenghong
114
Annual Report 2023
Location: No. 3008, Buxin Road, Luohu District, Shenzhen
Office address: 8/F Shuibei Jinzuo Building, No.89 Beili North Road, Cuizhu Street, Luohu District, Shenzhen
Certificate for Uniform Social Credit Code: 914403006188304524。
2. Business nature and main operation activities
Main business activities: Research & development of the bicycles, electric bicycles, electric motorcycles,
motorcycles, electric tricycles, electric four-wheeler, children's bicycles, exercise bikes, sports equipment,
mechanical products, toys, electric toys, electronic products, new energy equipment and storage equipment
(lithium batteries, batteries, etc.), household appliances and spare parts, and electronic components; wholesale,
retail, import and export and related supporting business of above-mentioned products (excluding commodities
subject to state trade management, handling the application according to the relevant national regulations for
commodities involving quotas, license management and other special provisions and management,); fine chemical
products (excluding dangerous goods), wholesale and retail of carbon fiber composite materials; technology
development of computer software, transfer of self-developed technological achievements, and providing relevant
technical information consultation; own property leasing; property management. (The above projects do not
involve special administrative measures for the implementation access of national regulations, and those involving
restricted projects and pre-existing administrative licenses must obtain the pre-existing administrative licensing
documents before operation.) Purchase and sale of gold products, platinum jewelry, palladium jewelry, K-gold
jewelry, silver jewelry, inlaid jewelry, jewelry, jade ware, gem-and-jade products, clocks and watches, precious
metal materials, diamonds, jadeite, crafts (except ivory and its products), calligraphy and painting, collection
(except for antiques, cultural relics, and items prohibited by national laws and administrative regulations).
Main products or services currently offered are: Gold jewelry, EMMELLE bicycles and electrical bicycles,
lithium battery material.
3.Actual controller of the Company
Actual controller of the Company is Wang Shenghong, The controlling shareholder is Wansheng Industrial
Holding (Shenzhen) Co., Ltd.,who held or controlled 20% shares of the Company.
4. Release of the financial report
The Financial Report was approved to report at the 11th Session of 11th BOD of CBC on April 19, 2024.
IV. Compilation Basis of Financial Statement
1. Compilation Basis
115
Annual Report 2023
On the basis of going concern, the Company recognizes and measures according to the actual transactions
and events, the Accounting Standards for Business Enterprises-Basic Standards and other specific accounting
standards, application guidelines, standard interpretation and other relevant provisions (hereinafter referred to as
the Accounting Standards for Business Enterprises), and on this basis, it compiles the financial statements in
combination with the provisions of the No.15 Rules on Information Disclosure and Compilation of Companies
Offering Securities to the Public - General Provisions on Financial Reports (revised in 2023) issued by China
Securities Regulatory Commission.
2. Going concern
The Company has the ability to continue to operate for at least 12 months from the end of this reporting period,
and there is no major issue affecting its ability to continue to operate.
V. Main accounting policy and Accounting Estimate
Tips for specific accounting policy and estimate:
Nil
1. Declaration on compliance with accounting standards for business enterprise
The financial statements prepared by the Company meet the requirements of the Accounting Standards for
Business Enterprises, and truly and completely reflect the Company's financial status, operating results, changes
in owners' equity and cash flow and other relevant information.
2. Accounting period
Calendar year is the accounting period for the CBC, which is starting from 1 January to 31 December.
3. Business cycles
The Company takes 12 months as a business cycle.
4. Book-keeping currency
The CBC takes RMB as the standard currency for bookkeeping.
5.Determination method and selection basis of importance standard
Applicable □Not applicable
Item Criterion of importance
Commercial acceptance bills receivable, accounts receivable
Material receivables with bad debt provision accrued
and other receivables with a single amount exceeding RMB 5
individually
million (inclusive)
Material amount recovered or reversed from bad debt provision
The single amount exceeds RMB 5 million (inclusive)
of receivables in the current period
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Write-off of Important material receivables in the current
The single amount exceeds RMB 5 million (inclusive)
period
Material prepayments with an age of more than one year The single amount exceeds RMB 5 million (inclusive)
Material accounts payable with an age of over 1 year The single amount exceeds RMB 5 million (inclusive)
Material contractual liabilities with an age of more than 1 year The single amount exceeds RMB 5 million (inclusive)
Material other payables with an age of more than 1 year The single amount exceeds RMB 5 million (inclusive)
Construction in progress with a single amount exceeding RMB
Material construction in progress
5 million (inclusive)
Commitments involving an amount of more than 10% of the
Material commitments
total profit and more than RMB 5 million (inclusive)
Contingencies involving an amount of more than 10% of the
Material contingencies
total profit and more than RMB 5 million (inclusive)
Matters after the balance sheet date involving an amount
Material matters after the balance sheet date exceeding 10% of the total profit and exceeding RMB 5 million
(inclusive)
6. Accounting treatment for business combinations under the same control and those not under the same
control
1. Business merger under the same control: The assets and liabilities acquired by the Company in business
merger are measured according to the book value of the assets and liabilities of the merged party (including the
goodwill formed by the acquisition of the merged party by the ultimate controlling party) in the consolidated
financial statements of the ultimate controlling party on the date of merger. For the difference between the book
value of the net assets obtained in the merger and the book value of the merger consideration paid (or the total
face value of the issued shares), adjust the capital premium or share capital premium in the capital reserve. If
the capital premium or share capital premium in the capital reserve is insufficient to offset, adjust the retained
income.
2. Business merger not under the same control: The assets paid, liabilities incurred or assumed by the
Company as the consideration for business merger are measured at fair value on the date of purchase, and the
difference between fair value and book value is included in the current profits and losses. The Company
recognizes the difference between the merger cost and the fair value share of the net identifiable assets of the
acquiree obtained in the merger as goodwill; For the difference between the merger cost and the fair value share
of the net identifiable assets of the acquiree (which is larger than the merger cost), it reviews the fair values of
the assets and liabilities obtained in the merger, the non-cash assets as the merger consideration or the equity
securities issued, and the review results show that the determination of the fair values of the determined
identifiable assets and liabilities is appropriate. The difference between the business merger cost and the fair
value share of the net identifiable assets of the acquiree (which is larger than the business merger cost) is
included in the non-operating income in the current merger period.
The business merger not under the same control is realized step by step through multiple transactions, and
the merger cost is the sum of the consideration paid on the date of purchase and the fair value of the equity of
the acquiree held before the date of purchase; The equity of the purchased party held before the date of purchase
shall be re-measured according to the fair value on the date of purchase, and the difference between the fair
value and its book value shall be included in the current investment income. Other comprehensive income of the
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long-term equity investment of the acquiree held before the date of purchase under the accounting by equity
method shall be subject to accounting treatment on the same basis as the direct disposal of relevant assets or
liabilities by the investee. Changes in other shareholders' equity except net profits and losses, other
comprehensive income and profit distribution shall be converted into current profits and losses on the date of
purchase. For other equity instrument investments of the acquiree held before the date of purchase, the changes
in fair value of the equity instrument investments accumulated in other comprehensive income before the date
of purchase are transferred to retained profits and losses.
3. Disposal of related expenses in business merger: Intermediary expenses such as audit, legal services,
evaluation and consultation and other related management expenses incurred for business merger are included
in current profits and losses when incurred; The transaction costs of equity securities or debt securities issued as
the merger consideration are included in the initial recognition amount of equity securities or debt securities.
7. Criteria for control and preparation method of consolidated financial statements
1. Criteria for control and preparation scope of consolidated statements
Control means that the investor has the power over the investee, enjoys variable returns by participating in
the related activities of the investee, and has the ability to influence the amount of returns by using the power
over the investee. As for whether to control the investee, the Company's criterion factors include:
(1) Have the power over the investee and the ability to lead the related activities of the investee;
(2) Be entitled to variable returns to the investee;
(3) Have the ability to use the power over the investee to influence its return amount.
Unless there is conclusive evidence that the Company cannot lead the related activities of the investee, the
Company has the power over the investee if:
(1) It holds more than half of the voting rights of the investee;
(2) It holds half or less of the voting rights of the investee, but controls more than half of the voting rights
through agreements with other voting rights holders.
If the Company holds half or less of the voting rights of the investee, but after comprehensive
consideration of the following facts and circumstances, it is judged that the voting rights held are sufficient to
lead the relevant activities of the investee, it is deemed that the Company has power over the investee:
(1) The size of the voting rights held relative to the voting rights held by other investors, and the degree of
dispersion of the voting rights held by other investors;
(2) The potential voting rights of the investee held by other investors, such as convertible corporate bonds
and executable warrants;
(3) Other contractual rights;
(4) Other relevant facts and circumstances such as the past voting rights of the investee.
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The Company evaluates the variability of returns based on the nature of contractual arrangements rather
than the legal form of returns.
If the Company exercises the decision-making power as the main responsible person, or if other parties
have the decision-making power and other parties exercise the decision-making power as the agents of the
Company, it shows that the Company controls the investee.
Once the changes in relevant facts and circumstances lead to changes in the relevant factors involved in
the definition of control, the Company will re-evaluate.
The scope of consolidation of the consolidated financial statements is determined on the basis of control,
including not only subsidiaries determined by voting rights (or similar rights) themselves or in combination
with other arrangements, but also structured entities determined by one or more contractual arrangements.
2. Merger procedure
The consolidated financial statements are based on the financial statements of the Company and its
subsidiaries, and are prepared according to other relevant information.
The Company unifies the accounting policies and accounting periods adopted by its subsidiaries, so that
the accounting policies and accounting periods adopted by its subsidiaries are consistent with those adopted by
the Company. When preparing consolidated financial statements, it follows the principle of materiality to offset
the internal exchanges, internal transactions and equity investment projects between the parent company and the
subsidiaries, and between the subsidiaries.
The equity and profit and loss attributable to minority shareholders of the subsidiaries are listed separately
under the item of the owners' equity in the consolidated balance sheet and under the item of net profit in the
consolidated income statement. The current loss shared by minority shareholders of a subsidiary exceeds the
balance formed by minority shareholders' share in the initial owners' equity of the subsidiary, thus offsetting
minority shareholders' equity.
(1) Increase of subsidiaries and businesses
During the reporting period, when preparing the consolidated balance sheet due to the business merger
under the same control and the subsidiaries and businesses increased, the opening balance of the consolidated
balance sheet is adjusted; When preparing the income statement, the income, expenses and profits of the
subsidiary and business merger from the beginning of the current period to the end of the reporting period are
included in the consolidated income statement; When the cash flow statement is consolidated, the cash flows of
the subsidiary and the business combination from the beginning of the current period to the end of the reporting
period are included in the consolidated cash flow statement; At the same time, the relevant items of the
comparative statements shall be adjusted, as if the merged reporting entity had existed since the ultimate
controlling party started to control.
During the reporting period, when preparing the consolidated balance sheet for subsidiaries and businesses
increased due to business merger not under the same control or other means, the opening balance of the
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consolidated balance sheet will not be adjusted. When preparing the income statement, the income, expenses
and profits of the subsidiary and the business from the date of purchase to the end of the reporting period shall
be included in the consolidated income statement. When preparing the cash flow statement, the cash flow of the
subsidiary from the date of purchase to the end of the reporting period shall be included in the consolidated cash
flow statement.
The Company prepares consolidated financial statements based on the amount of identifiable assets,
liabilities and contingent liabilities determined on the basis of the fair value on the date of purchase reflected in
the individual financial statements of subsidiaries at the current balance sheet date. The difference between the
merger cost and the fair value share of the net identifiable assets of the acquiree obtained in the merger shall be
recognized as goodwill. The difference between the merger cost and the fair value share of the net identifiable
assets of the acquiree obtained in the merger shall be included in the current profits and losses after review.
If the business merger not under the same control is realized step by step through multiple transactions, in
the consolidated financial statements, the equity of the acquiree held before the date of purchase shall be re-
measured according to the fair value of the equity on the date of purchase, and the difference between the fair
value and its book value shall be included in the current investment income. Other comprehensive income of the
long-term equity investment of the acquiree held before the date of purchase under the accounting by equity
method shall be subject to accounting treatment on the same basis as the direct disposal of relevant assets or
liabilities by the investee. Changes in other shareholders' equity except net profits and losses, other
comprehensive income and profit distribution shall be converted into current profits and losses on the date of
purchase. For other equity instrument investments of the acquiree held before the date of purchase, the changes
in fair value of the equity instrument investments accumulated in other comprehensive income before the date
of purchase are transferred to retained profits and losses.
(2) Disposal of subsidiaries and businesses
A. General disposal methods
During the reporting period, if the Company disposes of its subsidiaries and businesses, the income,
expenses and profits of the subsidiaries and businesses from the beginning to the disposal date will be included
in the consolidated income statement; The cash flow of the subsidiaries and businesses from the beginning to
the disposal date will be included in the consolidated cash flow statement.
If the Company loses control of its original subsidiaries due to the disposal of some equity investments,
the remaining equity shall be re-measured according to its fair value on the date of loss of control in the
consolidated financial statements. The sum of the consideration obtained from the disposal of the equity and the
fair value of the remaining equity, minus the difference between the share of the net assets that should be
continuously calculated by the original subsidiary from the date of purchase or the date of merger according to
the original shareholding ratio, is included in the current investment income when the control right is lost, and
the goodwill is also offset. Other comprehensive income related to the original subsidiary's equity investment
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shall be subject to accounting treatment on the same basis as the subsidiary's direct disposal of relevant assets or
liabilities when it loses control. Shareholders' equity recognized due to changes in other shareholders' equity
related to the original subsidiary except net profit and loss, other comprehensive income and profit distribution
shall be converted into current profits and losses when it loses control.
B. Dispose of equity step by step until loss of control
If the enterprise disposes of its equity investment in a subsidiary step by step through multiple transactions
until it loses control, if the transaction of disposing of its equity investment in a subsidiary until the loss of
control is a package transaction, it shall treat each transaction as a transaction of disposing of the subsidiary and
loss of control; However, the difference between the price of each disposal before the loss of control and the
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 transferred to the current profits and losses
when the control is lost.
The terms, conditions and economic impact of various transactions dealing with equity investment in
subsidiaries meet one or more of the following conditions, which usually indicates that multiple transactions
shall be subject to accounting treatment as a package transaction:
(A) These transactions are concluded at the same time or under the consideration of mutual impact;
(B) These transactions as a whole can achieve a complete commercial result;
(C) The occurrence of one transaction depends on the occurrence of at least one other transaction;
(D) A transaction is uneconomical when considered alone, but it is economical when considered together
with other transactions.
(3) Purchase of minority shares of the subsidiaries
The Company shall adjust the capital premium or share capital premium in the capital reserve in the
consolidated balance sheet for the difference between the newly acquired long-term equity investment due to
the purchase of minority shares and the share of net identifiable assets that should be continuously calculated by
the subsidiaries from the date of purchase (or date of merger) according to the new shareholding ratio. If the
capital premium or share capital premium in the capital reserve is insufficient to offset, the retained income
shall be adjusted.
(4) Partial disposal of equity investment in subsidiaries without loss of control
For the difference between the disposal price obtained from the partial disposal of the long-term equity
investment in the subsidiary and the share of the net assets of the subsidiary that is continuously calculated from
the date of purchase or the date of merger corresponding to the disposal of the long-term equity investment,
adjust the capital premium or share capital premium in the capital reserve in the consolidated balance sheet. If
the capital premium or share capital premium in the capital reserve is insufficient to offset, adjust the retained
income.
8. Classification of joint venture arrangement and accounting treatment for joint control
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A joint venture arrangement refers to an arrangement controlled jointly by two or more participants. Joint
venture arrangements are divided into joint operation and joint ventures.
1. Joint operation refers to the joint venture arrangement in which the Company is entitled to the assets
related to the arrangement and undertakes the liabilities related to the arrangement. The Company recognizes
the following items related to the share of interests in joint operation:
(1) Recognize the assets held separately, and recognize the assets held jointly according to their shares;
(2) Recognize the liabilities undertaken separately, and recognize the liabilities jointly undertaken
according to their shares;
(3) Recognize the income generated from the sale of its share of joint operation output;
(4) Recognize the income generated by the sale of output in the joint operation according to its share;
(5) Recognize the expenses incurred separately, and recognize the expenses incurred in joint operation
according to their shares.
2. Joint venture refers to a joint venture arrangement in which the Company has rights only to the net
assets of the arrangement. The Company shall carry out accounting treatment for the investment of the joint
venture in accordance with the provisions on accounting by equity method for long-term equity investment.
9. Recognition of cash and cash equivalents
When preparing the cash flow statement, the Company will recognize the cash on hand and the deposits
that can be used for payment at any time as cash. An investment with short term (usually due within three
months from the date of purchase), strong liquidity, easy conversion into known cash and little risk of value
change will be determined as a cash equivalent. Restricted bank deposits will not be regarded as cash and cash
equivalents in the cash flow statement.
10. Foreign currency transaction and financial statement conversion
1. Foreign currency business
When foreign currency business occurs, the amount of foreign currency is converted into RMB for
recording according to the spot exchange rate on the date of transaction, and foreign currency monetary items
and foreign currency non-monetary items are treated in the following ways at the end of the period:
(1) Foreign currency monetary items are converted at the spot exchange rate on the balance sheet date.
Exchange differences arising from the difference between the spot exchange rate on the balance sheet date and
the initial recognition or the spot exchange rate on the previous balance sheet date are included in the current
profits and losses.
(2) Foreign currency non-monetary items measured at historical cost are still converted at the spot
exchange rate on the date of transaction, and the amount of their recording currency will not be changed.
(3) Foreign currency non-monetary items measured at fair value shall be converted at the spot exchange
rate on the fair value determination date, and the resulting exchange gains and losses shall be included in the
current profits and losses or other comprehensive income.
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(4) Foreign currency exchange gains and losses, except the exchange gains and losses arising from
foreign currency special borrowing related to the purchase, construction or production of assets eligible for
capitalization, are included in the cost of assets eligible for capitalization before the assets reach the scheduled
serviceable or saleable state, and the rest are included in the current profits and losses.
2. Conversion in foreign currency financial statements
(1) Assets and liabilities in the balance sheet are converted at the spot exchange rate on the balance sheet
date; Except for the "undistributed profit", other items of owners' equity are converted at the spot exchange rate
at the time of occurrence.
(2) The income and expenses in the income statement are converted at the approximate exchange rate of
the spot exchange rate on the date of transaction.
(3) The conversion difference of foreign currency financial statements generated according to the above
conversion is included in other comprehensive income. When disposing of overseas operations, the conversion
difference of foreign currency financial statements related to the overseas operations shall be transferred from
the owners' equity to the current profits and losses.
(4) The cash flow statement is converted by the approximate exchange rate of the spot exchange rate on
the date of cash flow occurrence. As a reconciliation item, the influence of exchange rate changes on cash is
listed separately in the cash flow statement.
11. Financial instruments
When the Company becomes a party to the financial instrument contract, it recognizes a financial asset or
financial liability related to it.
1. Classification, recognition basis and measurement method of financial assets
According to the business model of financial assets under management and the contractual cash flow
characteristics of financial assets, the Company divides financial assets into three categories: financial assets
measured by amortized cost, financial assets measured by fair value with its changes included in other
comprehensive income, and financial assets measured by fair value with its changes included in current profits
and losses.
Financial assets are measured at fair value upon initial recognition. For financial assets measured at fair
value with its changes included in the current profits and losses, relevant transaction costs are directly included
in the current profits and losses; For financial assets of other types, relevant transaction costs are included in the
initial recognition amount. If the accounts receivable initially recognized by the Company do not contain
significant financing components as defined in the Accounting Standards for Business Enterprises No.14-
Income, or the financing components in contracts with a duration of no more than one year are not considered
according to the provisions of Accounting Standards for Business Enterprises No.14-Income, the initial
measurement shall be made according to the transaction price of the consideration expected to be charged.
(1) Financial assets measured in amortized cost
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The Company's business model of managing such financial assets is to collect contract cash flow, and the
cash flow generated on a specific date is only for the payment of principal and interest based on the unpaid
principal amount. For such financial assets, the Company adopts the effective interest rate method for
subsequent measurement according to amortized cost, and the gains or losses arising from amortization or
impairment are included in the current profits and losses.
(2) Financial assets measured at fair value with changes included in other comprehensive income
The Company's business model of managing such financial assets is to collect contract cash flow and sell
it, and the cash flow generated on a specific date is only for the payment of principal and interest based on the
unpaid principal amount. Such financial assets are measured at fair value with changes included in other
comprehensive income, but impairment losses or gains, exchange gains and losses and interest income
calculated according to the effective interest rate method are included in current profits and losses.
For the investment in non-transactional equity instruments, the Company can irrevocably designate it as a
financial asset measured at fair value with changes included in other comprehensive income at the initial
recognition. The designation is made on the basis of a single investment, and the relevant investment conforms
to the definition of equity instrument from the issuer's point of view. The Company includes the relevant
dividend income of such financial assets in the current profits and losses, and the changes in fair value in other
comprehensive income. When the financial asset is derecognized, the accumulated gains or losses previously
included in other comprehensive income will be transferred from other comprehensive income to retained
income and will not be included in the current profits and losses.
(3) Financial assets measured at fair value with changes included in the current profits and losses
Except for the above financial assets measured in amortized cost and the financial assets measured at fair
value with changes included in other comprehensive income, the Company classifies all other financial assets as
financial assets measured at fair value with changes included in current profits and losses. In addition, at the
time of initial recognition, in order to eliminate or significantly reduce the accounting mismatch, the Company
designated some financial assets as the financial assets measured at fair value with changes included in the
current profits and losses. Such financial assets are subsequently measured at fair value, with changes in fair
value included in current profits and losses.
2. Classification, recognition basis and measurement method of financial liabilities
The Company's financial liabilities are classified into financial liabilities measured at fair value with
changes included in current profits and losses and other financial liabilities at initial recognition. For financial
liabilities measured at fair value with changes included in the current profits and losses, the related transaction
costs are directly included in the current profits and losses, and the related transaction costs of other financial
liabilities are included in their initial recognition amount.
(1) Financial liabilities measured at fair value with changes included in the current profits and losses
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Financial liabilities measured at fair value with changes included in current profits and losses include
transactional financial liabilities (including derivatives belonging to financial liabilities) and financial liabilities
designated as measured at fair value with changes included in current profits and losses.
Transactional financial liabilities (including derivatives belonging to financial liabilities) are subsequently
measured at fair value, and changes in fair value are included in current profits and losses, except those related
to hedging accounting.
For financial liabilities that are designated as being measured at fair value with changes included in
current profits and losses at the time of initial recognition, the changes in fair value caused by changes in the
Company's own credit risk are included in other comprehensive income, and when the liability is derecognized,
the accumulated changes in its fair value caused by changes in its own credit risk included in other
comprehensive income are transferred to retained income. Other changes in fair value are included in current
profits and losses. If the accounting mismatch in profit and loss will be caused or enlarged by handling the
impact of the changes in credit risk of these financial liabilities in the above way, the Company will include all
the gains or losses of the financial liabilities (including the amount affected by the changes in the enterprise's
credit risk) in the current profits and losses.
(2) Other financial liabilities
Other financial liabilities, except those caused by the transfer of financial assets and financial guarantee
contracts that do not meet the conditions for derecognition or continue to be involved in the transferred financial
assets, are classified as financial liabilities measured in amortized cost and subsequently measured in amortized
cost. The gains or losses arising from derecognition or amortization are included in the current profits and losses.
3. Methods for determining the fair value of financial assets and financial liabilities
The fair value of financial instruments with an active market shall be determined by the quotation in the
active market. The fair value of financial instruments without active market shall be determined by valuation
technology. At the time of valuation, the Company adopts the valuation technology that is applicable in the
current situation and supported by sufficient available data and other information, selects the input values that
are consistent with the characteristics of assets or liabilities considered by market participants in the transaction
of relevant assets or liabilities, and gives priority to the relevant observable input values. Unobservable input
values can only be used if the relevant observable input values are unavailable or impracticable.
4. Recognition basis and measurement method for transfer of financial assets
Recognition for transfer of financial assets
Circumstances Recognition results
Almost all risks and rewards in the ownership of financial assets are
transferred The financial assets are derecognized (new
Almost all risks and The control of financial assets is given assets/liabilities are recognized)
rewards in the ownership of up
financial assets are neither The control of financial assets is not The relevant assets and liabilities is recognized
transferred nor retained given up according to the extent of continuing involvement in the
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transferred financial assets
Almost all risks and
Continue to recognize the financial assets and recognize the received consideration as financial
rewards in the ownership of
liabilities
financial assets are retained
The Company divides the transfer of financial assets into the overall transfer and partial transfer of
financial assets.
(1) If the overall transfer of financial assets meets the conditions for derecognition, the difference between
the following two amounts shall be included in the current profits and losses: the book value of the transferred
financial assets on the derecognition date; The sum of the consideration received for the transfer of financial
assets and the cumulative amount of changes in fair value that were originally directly included in other
comprehensive income (the financial assets involved in the transfer are those classified as financial assets
measured at fair value with changes included in other comprehensive income in Article 18 of Accounting
Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments).
(2) If a part of the financial assets is transferred, and the transferred part as a whole meets the conditions
for derecognition, the book value of the whole financial assets before the transfer shall be allocated between the
derecognition part and the continued recognition part (in this case, the retained service assets shall be regarded
as part of continued recognition of financial asset) according to their respective relative fair values on the date
of transfer, and the difference between the following two amounts shall be included in the current profits and
losses: the book value of the derecognition part on the derecognition date; The sum of the consideration
received for the derecognition part (including all new assets acquired minus all new liabilities assumed) and the
corresponding derecognition amount in the accumulated amount of changes in fair value originally included in
other comprehensive income (the financial assets involved in partial transfer are those classified as financial
assets measured at fair value with changes included in other comprehensive income in Article 18 of Accounting
Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments).
If the transfer of financial assets does not meet the conditions for derecognition, the whole transferred
financial assets shall be continuously recognized, and the received consideration shall be recognized as a
financial liability.
5. Conditions for derecognition of financial liabilities
If the current obligations of financial liabilities(or part of them) have been discharged, the financial
liabilities (or part of them) shall be derecognized. If the following conditions exist:
(1) If the Company transfers the assets used to pay financial liabilities to an institution or establishes a
trust, and the obligation of debt payment still exists, it shall not derecognize the financial liabilities.
(2) The Company (the borrower) and the lender sign an agreement to replace the original financial
liabilities (or part of them) by taking on new financial liabilities, and the contractual terms are essentially
different. The Company shall derecognize the original financial liabilities (or part of them) and recognize a new
financial liability at the same time.
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If the financial liabilities (or part of them) are derecognized, the Company will record the difference
between the book value and the consideration paid (including the transferred non-cash assets or liabilities) into
the current profits and losses.
6. Impairment of financial assets
(1) Recognition method of impairment provision
The Company conducts impairment accounting treatment on financial assets (including receivables)
measured in amortized cost, debt instrument investment and lease receivables measured at fair value with
changes included in other comprehensive income on the basis of expected credit losses, and recognizes the loss
provisions. In addition, for contract assets, loan commitments and financial guarantee contracts, impairment
provisions are also accrued and impairment losses are recognized in accordance with the accounting policies
described in this section.
Expected credit loss refers to the weighted mean of credit loss of financial instruments weighted by the
risk of default. Credit loss refers to the difference between all contracted cash flows that the Company
discounted at the original actual interest rate and all cash flows that it is expected to receive, that is, the present
value of all cash shortages.
Except for the purchased or originated financial assets with credit impairment, the Company evaluates
whether the credit risk of relevant financial assets has increased significantly since the initial recognition on
each balance sheet date. If the credit risk has not increased significantly since the initial recognition. it is in the
first stage, and the Company will measure the loss provision according to the amount equivalent to the expected
credit loss of the financial asset in the next 12 months; If the credit risk has increased significantly since the
initial recognition but with no credit impairment, it is in the second stage, and the Company will measure the
loss provision according to the amount equivalent to the expected credit loss of the financial asset during the
whole duration; If the financial asset has suffered credit impairment since its initial recognition, it is in the third
stage, and the Company will measure the loss provision according to the amount equivalent to the expected
credit loss of the financial asset in the whole duration. When evaluating the expected credit loss, the Company
considers the reasonable and well-founded information, including forward-looking information, about past
events, current situation and future economic situation prediction that can be obtained on the balance sheet date
without unnecessary extra cost or effort.
The expected credit loss in the next 12 months refers to the expected credit loss caused by financial asset
default events that may occur within 12 months after the balance sheet date (if the expected duration of financial
assets is less than 12 months, within the expected duration), which is a part of the expected credit loss in the
whole duration.
For financial instruments with low credit risk on the balance sheet date, the Company assumes that the
credit risk has not increased significantly since the initial recognition, and chooses to measure the loss provision
according to the expected credit loss in the next 12 months.
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For the financial assets in the first and second stages and with low credit risk, the Company calculates the
interest income according to the book balance without deducting the impairment provision and the actual
interest rate. For the financial assets in the third stage, the interest income shall be calculated according to the
book balance minus the amortized cost and the actual interest rate after the impairment provision has been
accrued.
(2) Financial asset with impairment
When the Company anticipates that one or more events that have an adverse effect on the future cash flow
of a financial asset occur, the financial asset becomes a financial asset with credit impairment. Evidence of
credit impairment of financial assets includes the following observable information:
A. The issuer or the debtor has major financial difficulties;
B. The debtor has breached the contract, such as default or overdue payment of interest or principal;
C. The creditor makes concessions to the debtor that it will not make under any other circumstances due to
economic or contractual considerations related to its financial difficulties;
D. The debtor is likely to go bankrupt or carry out other financial restructuring;
E. The financial difficulties of the issuer or debtor lead to the disappearance of the active market of the
financial asset;
F. A financial asset is purchased or originated at a large discount, which reflects the fact that credit loss
has occurred.
Credit impairment of financial assets may be caused by the joint action of multiple events, not necessarily
by an event that can be identified separately.
(3) Financial assets with credit impairment purchased or originated
For the purchased or originated financial assets with credit impairment, the Company only recognizes the
cumulative change of expected credit loss in the whole duration after initial recognition as loss provision on the
balance sheet date. On each balance sheet date, the change amount of expected credit loss during the whole
duration is included in the current profits and losses as impairment loss or gain. Even if the expected credit loss
determined on the balance sheet date is less than the amount of the expected credit loss reflected by the
estimated cash flow at the time of initial recognition, the favorable change of expected credit loss will be
recognized as impairment gain.
(4) Criteria for judging significant increase in credit risk
If the default probability of a financial asset in the estimated duration determined on the balance sheet date
is significantly higher than that in the estimated duration determined at the initial recognition, it indicates that
the credit risk of the financial asset is significantly increased. Except in special circumstances, the Company
uses the change of default risk in the next 12 months as a reasonable estimate of the change in default risk in the
whole duration to determine whether the credit risk has increased significantly since the initial recognition.
(5) Method of evaluating the expected credit loss of financial assets
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The Company evaluates the expected credit loss of financial assets based on individual and combined
items. It individually evaluates the credit risk of financial assets with significantly different credit risks, such as:
receivables from related parties; accounts receivable from government agencies and units; and receivables with
obvious signs that the debtor is likely to be unable to fulfill the repayment obligations.
Except for financial assets whose credit risks are individually evaluated, the Company divides financial
assets into different groups based on common risk characteristics, and evaluates the credit risks on the basis of
combination.
(6) Accounting treatment method for impairment of financial assets
The Company calculates the expected credit losses of various financial assets on the balance sheet date,
and the resulting increase or reversal amount of loss provision is included in the current profits and losses as
impairment losses or gains.
If the Company actually suffers from credit losses, and the relevant financial assets are determined to be
irrecoverable and approved for write-off, the book balance of the financial assets will be directly written down.
If the financial assets written down are recovered later, they will be included in the current profits and losses of
recovery as the reversal of impairment losses.
7. Financial guarantee contract
A financial guarantee contract refers to a contract in which the issuer pays a certain amount to the contract
holder who has suffered losses when the debtor fails to repay the debt according to the original or revised terms
of the debt instrument at maturity. The financial guarantee contract shall be measured at fair value upon initial
recognition. For the financial guarantee contract for a financial liability not designated as being measured at fair
value with changes included into the current profits and losses, after the initial recognition, subsequent
measurement shall be made according to the higher of the expected credit loss provision amount determined on
the balance sheet date and the balance of the initial recognition amount after deducting the accumulated
amortization amount determined according to the income recognition principle.
8. Offset of financial assets and financial liabilities
Financial assets and financial liabilities are listed separately in the balance sheet without mutual offset.
However, if the following conditions are met at the same time, the net amount after mutual offset shall be listed
in the balance sheet:
(1) The Company has the legal right to offset the recognized financial assets and financial liabilities, and
such legal right is now enforceable;
(2) The Company plans to settle accounts by netting, or realize the financial assets and pay off the
financial liabilities at the same time.
9. Equity instruments
Equity instruments refer to contracts that can prove that the Company has residual interests in assets after
deducting all liabilities. The issuance (including refinancing), repurchase, sale or cancellation of equity
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instruments by the Company are treated as changes in equity. The Company does not recognize changes in the
fair value of equity instruments. Transaction costs related to equity transactions are deducted from equity.
Various distributions (excluding stock dividends) made by the Company to holders of equity instruments
are used as profit distribution to reduce the owners' equity. The stock dividends distributed do not affect the
total owners' equity.
The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen
Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
Nil
12. Note receivable
The Company measures the loss provision for notes receivable according to the expected credit loss
amount of the whole duration.
Except for the notes receivable whose credit risk is evaluated individually, the Company divides the notes
receivable into different portfolios based on the credit risk of their acceptors as a common risk characteristic,
and calculates the expected credit loss on the basis of the portfolios. The basis for determining the portfolios is
as follows:
Portfolio name Basis for determining the portfolio
Management evaluation has low credit risk and the expected
Bank acceptance bill
credit loss is generally not recognized
Commercial acceptance bill Same as "Accounts Receivable" portfolio
The Company individually tests the impairment of the notes receivable with objective evidence and other
notes that are suitable for individual evaluation, recognizes the expected credit loss, and calculates the
individual impairment provision.
13. Account receivable
The CBC adopts the simplified model of expected credit loss for accounts receivables specified in “Accounting
Standards for Business Enterprises No.14 - Revenue” and without containing significant financing components
(including the case that the financing components in contracts that do not exceed one year are not considered
according to the standards), that is, always measures their loss provisions according to the amount of expected
credit loss during the entire duration, and the resulting increased or reversed amount of the loss provision is
included in the current profit and loss as an impairment loss or gain.
Based on common risk characteristics, the Company divides accounts receivable into different groups
according to common credit risk characteristics such as customer categories:
Portfolio name Basis for determining the portfolio
Commercial acceptance bills receivable, accounts receivable
Individual identification portfolio
and other receivables with significant single amount
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(receivables with an ending balance of more than RMB 5
million (including RMB 5 million)), or accounts receivable with
insignificant individual amount but high risk
Aging portfolio Taking the aging of receivables as the credit risk characteristic
Related-party portfolio receivable Receivables from related parties
(1) Individual identification portfolio: For receivables with an ending balance of more than RMB 5
million (including RMB 5 million), or accounts receivable with insignificant individual amount but high risk,
impairment test shall be conducted separately for each customer. Impairment test shall be conducted separately
for accounts receivable with objective evidence indicating impairment and other accounts receivable applicable
to individual evaluation (such as accounts receivable in dispute with the other party or involving litigation and
arbitration; accounts receivable with obvious signs that the debtor is likely to be unable to fulfill the repayment
obligations, etc.), to recognize expected credit loss and calculate individual impairment provision.
(2) Aging portfolio: For accounts receivable that have not been impaired after individual testing or whose
individual amount is not significant but with low risk, the Company evaluates the expected credit loss of various
accounts receivable based on the actual loss rate of the same or similar accounts receivable portfolio with
similar credit risk characteristics in previous years.
(3) Associated portfolio: Unless there is conclusive evidence indicating an impairment, the accounts
receivable formed between related parties shall not be accrued for bad debt provision.
14. Receivable financing
Receivable financing reflects notes receivable and accounts receivable that are measured at fair value on
the balance sheet date with changes included in other comprehensive income. For the accounting treatment
method, please refer to the related treatment of the financial assets measured at fair value with changes included
in other comprehensive income classified in Item (XI) Financial Instrument of this accounting policy.
15. Other account receivable
For other receivables, the expected credit loss is determined according to historical data and forward-
looking information. Based on whether the credit risk of other receivables has increased significantly since the
initial recognition, the Company adopts the amount equivalent to the expected credit loss in the next 12 months
or the whole duration to measure the impairment loss. For specific accounting treatment methods, please refer
to Item (XIII) Accounts Receivable of this accounting policy.
16. Contractual assets
Contract assets refer to the right that the Company has transferred the goods to customers and has the right
to receive consideration, and such right depends on other factors besides the passage of time.
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Nil
17. Inventory
The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen
Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
(1) Classification of inventory
The CBC classifies the inventory into raw materials, goods in process, goods on hand, wrap page, low value
consumables, materials for consigned processing and goods sold, etc.
(2) Valuation of inventories
Inventories are initially measured at cost upon acquisition, which includes procurement costs, processing costs
and other costs. Cost of the inventory issued is carried forward on the basis of a combination of the weighted
average method and specific identification when inventories are issued.
(3)Inventory system
Perpetual inventory system is adopted.
(4) Amortization method of low-value consumables and packaging materials
"One-time amortization method" is adopted for accounting.
(5) Provision for inventory impairment
When a comprehensive count of inventories is done at the end of the period, provision for inventory impairment is
allocated or adjusted using the lower of the cost of inventory and the net realizable value. The net realizable value
of stock in inventory (including finished products, goods in stock and materials for sale) that can be sold directly
is determined using the estimated saleable price of such inventory deducted by the cost of sales and relevant
taxation over the course of ordinary production and operation. The net realizable value of material in inventory
that requires processing is determined using the estimated saleable price of the finished product deducted by the
cost to completion, estimated cost of sales and relevant taxation over the course of ordinary production and
operation. The net realizable value of inventory held for performance of sales contract or labor service contract is
determined based on the contractual price; in case the amount of inventory held exceeds the contractual amount,
the net realizable value of the excess portion of inventory is calculated using the normal saleable price.
Provision for impairment is made according to individual items of inventories at the end of the period; however,
for inventories with large quantity and low unit price, the provision is made by categories; inventories of products
that are produced and sold in the same region or with the same or similar purpose or usage and are difficult to be
measured separately are combined for provision for impairment.
If the factors causing a previous write-off of inventory value has disappeared, the amount written-off is reversed
and the amount provided for inventory impairment is reversed and recognized in profit or loss for the period.
During the reporting period, the specific methods and implementation of the Company's inventory
impairment measurement are as follows:
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(1) Inventory impairment method
The issuer's inventory mainly includes raw materials, inventory goods and materials commissioned for
processing. The ending inventory of the Company is measured according to the lower of cost and net realizable
value. When the net realizable value is lower than the cost, the inventory depreciation provision is accrued.
①Specific methods for measuring the impairment of raw materials
Raw materials mainly include gold and diamond raw materials. The closing net realizable value of gold
raw materials is determined according to the closing price of spot gold trading announced by Shanghai Gold
Exchange at the end of the period. For the part with the book cost higher than the closing net realizable value,
inventory depreciation provision is accrued; Diamond raw materials are used for processing finished diamond
inlaid products, but the finished diamond inlaid products are with great difference. At the end of the year, the
Company will comprehensively judge whether there are signs of impairment based on the price fluctuation of
diamonds in that year, processing rates and pricing policies, and if there are signs of impairment, it will measure
the impairment one by one.
② Specific methods for measuring the impairment of inventory goods
Inventory goods mainly include finished gold products, finished K-gold products and finished inlaid
products. The depreciation of finished gold products and finished K-gold products shall be measured one by one,
and the closing net realizable value shall be determined by referring to the sales outbound price at the end of the
period after deducting the relevant sales expenses and taxes. For finished products whose closing book cost is
higher than the net realizable value, the inventory depreciation provision shall be accrued. The finished inlaid
products are quite different. At the end of the period, the Company will comprehensively judge whether there
are signs of impairment according to the price fluctuation of diamonds in that year and the pricing policy. If
there are signs of impairment, the impairment will be measured one by one.
③ Specific methods for measuring the impairment of materials commissioned for processing
Materials commissioned for processing mainly include gold and diamond raw materials, which are similar
in nature to raw materials, so the measurement method is consistent with that of raw materials.
18. Assets held for sale
1. Basis for classification as non-current assets held for sale or disposal group
If the book value of an non-current asset is recovered mainly through sales (including the exchange of
non-monetary assets with commercial substance) rather than continuous use or disposal group, the Company
will classify it as held for sale. The specific standard is to meet the following conditions at the same time:
(1) According to the practice of sales of such assets or disposal groups in similar transactions, they can be
sold immediately under the current situation;
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(2) The Company has made a resolution on a sale plan and obtained a firm purchase commitment. It is
expected that the sale will be completed within one year (if the relevant regulations require the approval of the
relevant authority or regulatory department of the Company before the sale, such approval has been obtained).
If the control right of the subsidiary is lost due to the sale of the investment in the subsidiary, regardless of
whether part of the equity investment is retained after the sale and the conditions for classification of the held-
for-sale category are met, the investment in the subsidiary as a whole will be classified as held-for-sale category
in the individual financial statements of the parent company, and all assets and liabilities of the subsidiary will
be classified as held-for-sale category in the consolidated financial statements.
2. Accounting treatment of non-current assets or disposal groups held for sale
When the Company initially measures or re-measures the non-current assets or disposal groups held for
sale on the balance sheet date, if the book value is higher than the net amount of fair value minus the sale
expenses, the book value will be written down to the net amount of fair value minus the sale expenses, and the
written-down amount will be recognized as asset impairment loss and included in the current profits and losses,
and impairment provision of assets held for sale will be accrued at the same time. If the net amount of the fair
value of non-current assets held for sale on the subsequent balance sheet date is increased after deducting the
sale expenses, the previously written-down amount will be restored and reversed within the amount of asset
impairment loss recognized after being classified as held for sale, and the reversed amount will be included in
the current profits and losses. Assets impairment losses recognized before being classified as held for sale shall
not be reversed.
For the amount of asset impairment loss recognized by the disposal group held for sale, the book value of
goodwill in the disposal group shall be deducted first, and then the book value of non-current assets in the
disposal group shall be deducted proportionally according to the proportion of the book value of non-current
assets in the disposal group. For the subsequent reversal amount of asset impairment losses recognized by the
disposal group held for sale, the book value will be increased in proportion according to the proportion of the
book value of non-current assets except goodwill in the disposal group.
Non-current assets held for sale or non-current assets in disposal group are not depreciated or amortized,
and interest and other expenses of liabilities in disposal group held for sale continue to be recognized.
When the Company derecognizes the non-current assets held for sale or disposal groups, the unrecognized
gains or losses will be included in the current profits and losses.
When non-current assets or disposal groups are no longer classified as held for sale because they no
longer meet the classification conditions of held for sale, or non-current assets are removed from the disposal
groups held for sale, the measurement shall be based on the lower of the following two amounts:
(1) For the book value before being classified as held for sale, the adjusted amount based on depreciation,
amortization or impairment that should have been recognized if it is not classified as held for sale;
(2) Recoverable amount.
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3. Determination standard and presentation method of discontinued operation
Discontinued operations refers to a component that meets any of the following conditions and can be
distinguished separately and has been disposed of by the Company or classified as a component held for sale:
(1) This component represents an independent main business or a single main business area;
(2) This component is part of an associated plan to dispose of an independent main business or a separate
main business area;
(3) This component is a subsidiary acquired exclusively for resale.
For the discontinued operation listed in the current period, the Company separately lists the profit and loss
of continuing operation and the profit and loss of discontinued operation in the current income statement, and
re-lists the information originally listed as the profit and loss of continuing operation as the profit and loss of
discontinued operation in comparable accounting period in the income statement of the comparative period.
19. Debt investment
For debt investment, the Company determines the expected credit loss on each balance sheet date
according to the types of counterparties and risk exposures and in consideration of historical default and
industry forward-looking information or various external actual and expected economic information. For the
determination method and accounting treatment method of expected credit loss, please refer to the provisions of
Item (XI) Financial Instruments of this accounting policy.
20. Other debt investment
For Other debt investment, the Company determines the expected credit loss on each balance sheet date
according to the types of counterparties and risk exposures and in consideration of historical default and
industry forward-looking information or various external actual and expected economic information. For the
determination method and accounting treatment method of expected credit loss, please refer to the provisions of
Item (XI) Financial Instruments of this accounting policy.
21. Long-term account receivable
The Company's long-term receivables include receivable financial lease and other long-term receivables.
For the receivable financial lease formed by the transactions regulated in Accounting Standards for
Business Enterprises No.21-Lease, the loss provision shall be measured according to the amount equivalent to
the expected credit loss during the whole duration.
For other long-term receivables, the Company determines the expected credit loss on each balance sheet
date according to the types of counterparties and risk exposures and in consideration of historical default and
reasonable forward-looking information or various external actual and expected economic information.
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Based on whether the credit risk has increased significantly since the initial recognition, the Company
adopts the amount equivalent to the expected credit loss in the next 12 months or the whole duration to measure
the impairment loss of long-term receivables. Except for the long-term receivables whose credit risk is
evaluated individually, they are divided into different portfolios based on their credit risk characteristics:
Portfolio name Basis for determining the portfolio
Normal long-term receivables This portfolio is a long-term receivable with no overdue risk
Overdue long-term receivables This portfolio is a long-term receivable with high overdue risk
……
22. Long-term equity investment
1. Basis for determining joint control and significant influence on the investee
Joint control refers to the common control of an arrangement according to the relevant agreement, and that
the related activities of the arrangement must be unanimously agreed by the participants who share the control
rights before making decisions. When judging whether there is joint control, firstly, it is judged whether all
participants or a group of participants collectively control the arrangement. If all participants or a group of
participants must act in concert to decide the related activities of an arrangement, it is considered that all
participants or a group of participants collectively control the arrangement. Secondly, it is judged whether the
decision of the related activities of the arrangement must be unanimously agreed by the participants who
collectively control the arrangement, and joint control can only be formed if and only if the decision of the
related activities requires the unanimous consent of the participants who collectively control the arrangement. If
there are two or more participants who can collectively control an arrangement, it does not constitute joint
control. When judging whether there is joint control, the protective rights enjoyed are not considered.
Significant influence refers to that the investor has the right to participate in the decision-making of the
financial and operating policies of the investee, but it cannot control or jointly control the formulation of these
policies with other parties. When determining whether a significant influence can be exerted on the investee,
consider the influence of the investor's direct or indirect holding of the voting shares of the investee and the
potential voting rights held by the investor and other parties in the current period after it is assumed to be
converted into the equity of the investee, including the influence of the current convertible warrants, stock
options and convertible corporate bonds issued by the investee. When foreign investment meets the following
conditions, it is generally determined that it has a significant impact on the investing unit: ① It is represented in
the Board of Directors or similar authority of the investee; ② It participates in the formulation of the financial
and business policies of the investee; ③ Important transactions with the investee occur; ④ Management
personnel are sent to the investee; ⑤ Key technical data is provided to the investee. When directly or indirectly
owning more than 20% but less than 50% of the voting shares of the investee, it is generally considered to have
a significant impact on the investee.
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2. Determination of initial investment cost
(1) Long-term equity investment formed by business merger
A. In the case of business merger under the same control, if cash payment, transfer of non-cash assets or
taking on debts and issuance of equity securities are adopted as the merger consideration, the initial investment
cost of long-term equity investment shall be the share of the book value of the owners' equity of the merged
party in the consolidated financial statements of the final controlling party on the date of merger. If the investee
under the same control can be controlled due to additional investment and other reasons, the initial investment
cost of long-term equity investment shall be determined according to the share of the net assets of the merged
party in the book value of the consolidated financial statements of the final controlling party on the date of
merger. For the difference between the initial investment cost of the long-term equity investment on the date of
merger and the book value of the long-term equity investment before the merger plus the book value of the
newly paid consideration for the shares on the date of merger, adjust the capital premium or share capital
premium. If the capital premium or share capital premium is insufficient to offset, the retained income will be
offset.
B. For the business merger not under the same control, the merger cost shall be determined as the initial
investment cost of long-term equity investment on the date of purchase in accordance with the relevant
provisions of the Accounting Standards for Business Enterprises No.20-Business Merger. If the investees not
under the same control can be controlled due to additional investment and other reasons, the sum of the book
value of the original equity investment plus the new investment cost shall be taken as the initial investment cost
calculated by the cost method.
(2) In addition to the long-term equity investment formed by business merger, the initial investment cost
of long-term equity investment obtained by other means shall be determined in accordance with the following
provisions:
A. For long-term equity investment obtained by paying cash, the initial investment cost shall be the actual
purchase price. The initial investment cost includes expenses, taxes and other necessary expenses directly
related to obtaining long-term equity investment.
B. For long-term equity investment obtained by issuing equity securities, the initial investment cost shall
be the fair value of issuing equity securities.
C. For long-term equity investment obtained by exchange of non-monetary assets, the initial investment
cost shall be determined in accordance with the Accounting Standards for Business Enterprises No.7-Exchange
of Non-monetary Assets.
D. For long-term equity investment obtained by debt restructuring, its initial investment cost shall be
determined in accordance with the Accounting Standards for Business Enterprises No.12-Debt Restructuring.
3. Subsequent measurement and profit and loss recognition method
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(1) Accounting by cost method: Long-term equity investment that can be controlled by the investee shall
be accounted by cost method. When accounting by cost method, the cost of long-term equity investment is
adjusted by adding or recovering investment. For the long-term equity investment accounted by the cost method,
except for the declared but undistributed cash dividends or profits included in the price or consideration actually
paid at the time of investment, the Company shall recognize the investment income according to the cash
dividends or profits declared by the investee, and no longer distinguish whether it belongs to the net profit
realized by the investee before and after the investment.
(2) Accounting by equity method: For the long-term equity investment jointly controlled or significantly
influenced by the investee, except for the equity investment in the associated enterprise, part of it is indirectly
held by venture capital institutions, mutual funds, trust companies or similar entities including investment with
insurance funds, regardless of whether the above entities have a significant influence on this part of the
investment, the Company to measure this part of the indirectly held investment at fair value with its changes
included in profits and losses in accordance with the relevant provisions of Accounting Standards for Business
Enterprises No.22-Recognition and Measurement of Financial Instruments, and adopts the equity method for
accounting. When accounting by equity method, after the Company obtains the long-term equity investment,
the investment income and other comprehensive income are recognized respectively according to the share of
the net profit and loss and other comprehensive income realized by the investee, and the book value of the long-
term equity investment is adjusted; The Company shall calculate its share according to the profit or cash
dividend declared by the investee, and correspondingly reduce the book value of long-term equity investment;
The Company shall adjust the book value of the long-term equity investment and include it in the owners' equity
for other changes in the owners' equity of the investee except the net profit and loss, other comprehensive
income and profit distribution. The Company recognizes the net loss of the investee to the extent that the book
value of the long-term equity investment and other long-term rights and interests that substantially constitute the
net investment of the investee are written down to zero, unless the Company has the obligation to bear
additional losses. If the investee realizes the net profit in the future, the Company will resume the recognition of
the income share after the income share makes up for the unrecognized loss share. When recognizing the share
of the net profit and loss of the investee, the Company will adjust the net profit of the investee based on the fair
value of the identifiable assets of the investee at the time of investment, and offset the gains and losses of
internal transactions between the Company and associated enterprises and joint ventures, and recognize the
investment profit and loss on this basis. The internal transaction losses between the Company and the investee
shall be recognized in full if they belong to asset impairment losses according to the Accounting Standards for
Business Enterprises No.8-Asset Impairment. If the accounting policies and accounting periods adopted by the
investee are inconsistent with those of the Company, the financial statements of the investee shall be adjusted
according to the accounting policies and accounting periods of the Company, so as to recognize the investment
profits and losses.
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Long-term equity investments in associated enterprises and joint ventures held before the first execution
date, if there is any debit difference of equity investments related to the investment, shall be amortized by the
original remaining term straight-line method, and the amortized amount shall be included in the current profits
and losses.
(3) When disposing of long-term equity investment, the difference between its book value and the actual
purchase price is included in the current profits and losses. If the long-term equity investment accounted by
equity method is included in the owners' equity due to other changes in the owners' equity of the investee except
the net profit and loss, the part originally included in the owners' equity will be transferred to the current profits
and losses in proportion when disposing of the investment, except for other comprehensive income arising from
the investee's re-measurement of the changes in defined benefit plan net liabilities or net assets.
23. Investment real estate
Measurement mode
Measured by cost method
Depreciation or amortization method
Investment real estate refers to real estate held to earn rent or capital appreciation, or both. It includes
leased land use rights, land use rights held and ready to be transferred after appreciation, and leased buildings.
When the Company can obtain rental income or value-added income related to investment real estate and the
cost of investment real estate can be measured reliably, the Company will initially measure it according to the
actual expenditure of purchase or construction.
The Company adopts the cost model to measure the investment real estate on the balance sheet date.
Under the cost model, the Company measures the investment real estate and makes depreciation or amortization
in accordance with the provisions of Item (23) Fixed Assets and Item (26) Intangible Assets of this accounting
policy. When the investment real estate is disposed of, or permanently withdrawn from use, and it is not
expected to obtain economic benefits from its disposal, the recognition of the investment real estate shall be
terminated. When the Company sells, transfers, scraps or damages the investment real estate, the amount of
disposal income after deducting its book value and relevant taxes shall be included in the current profits and
losses.
24. Fixed assets
(1) Recognition conditions
Fixed assets refer to tangible assets with a service life of more than one fiscal year, which are held for
producing goods, providing labor services, leasing or managing.
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(2) Depreciation methods
Yearly depreciation
Category Method Years of depreciation Scrap value rate
rate
Straight-line
Houses and buildings 20 10% 4.5%
depreciation
Straight-line
Machinery equipment 10 10% 9%
depreciation
Transportation Straight-line
5 10% 18%
equipment depreciation
Electronic equipment Straight-line
5 10% 18%
and others depreciation
25. Construction in progress
The construction in progress is measured according to the actual cost, which includes all necessary project
expenditures incurred during the construction period, borrowing costs that should be capitalized before the
project reaches the scheduled serviceable state, and other related expenses.
Construction in progress is carried forward to fixed assets when it reaches the scheduled serviceable state.
The criteria for scheduled serviceable state shall meet one of the following conditions:
(1) The physical construction (including installation) or production of fixed assets has been completely or
substantially completed;
(2) It has been put into trial production or trial operation, and the results show that the assets can normally
produce qualified products, or the trial operation results show that it can operate or operate properly;
(3) The amount of expenditure that continues to occur on fixed assets purchased, constructed or produced
is very small or almost none;
(4) The fixed assets purchased, constructed or produced have reached the design or contract requirements,
or are basically in line with the design or contract requirements.
26. Borrowing expenses
1. Recognition principle of capitalization of borrowing costs
Borrowing costs include interest incurred by borrowing, amortization of discount or premium and
auxiliary expenses, as well as exchange difference incurred by borrowing in foreign currency. If the borrowing
costs incurred by the Company can be directly attributed to the purchase, construction or production of assets
that meet the capitalization conditions, they shall be capitalized and included in the cost of relevant assets;
Other borrowing costs shall be recognized as expenses when incurred according to the amount incurred, and
included in the current profits and losses.
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Assets eligible for capitalization include fixed assets, investment real estate, inventory and other assets
that need to go through a long period of purchase, construction or production activities to reach the
predetermined serviceable or saleable state.
Borrowing costs shall be capitalized when the following conditions are met at the same time:
(1) Asset expenditure has occurred, including the expenditure occurred in the form of paying cash,
transferring non-cash assets or undertaking interest-bearing debts for purchasing, constructing or producing
assets that meet capitalization conditions;
(2) Borrowing costs have been incurred;
(3) The purchase, construction or production activities necessary to make the assets reach the expected
serviceable or saleable state have started.
2. Period of capitalization of borrowing costs
Borrowing expenses incurred for purchasing, constructing or producing assets that meet the capitalization
conditions, if they meet the above capitalization conditions and occur before the assets reach the predetermined
serviceable or saleable state, shall be included in the cost of the assets; If the purchase, construction or
production activities of the assets are abnormally interrupted for more than 3 months, the capitalization of
borrowing costs shall be suspended and recognized as current expenses until the purchase, construction or
production activities of the assets resume; When the purchased, constructed or produced assets reach the
predetermined serviceable or saleable state, the capitalization of their borrowing costs will be stopped.
Borrowing costs incurred after reaching the intended serviceable or saleable state are directly included in
financial expenses in the current period.
3. Calculation method of capitalized amount of borrowing costs
During the capitalization period, the capitalization amount of interest (including amortization of discount
or premium) in each accounting period shall be determined in accordance with the following provisions:
(1) Where a special borrowing is borrowed for the purpose of purchasing, constructing or producing assets
that meet the capitalization conditions, it shall be determined by the actual interest expenses incurred in the
current period of the special borrowing, minus the interest income obtained by depositing unused borrowing
funds in the bank or the investment income obtained by temporary investment.
(2) If the general borrowing is occupied for the purpose of purchasing, constructing or producing assets
that meet the capitalization conditions, the interest amount that should be capitalized on the general loan shall
be calculated and determined according to the weighted mean of the accumulated asset expenditure exceeding
the special borrowing portion multiplied by the capitalization rate of the occupied general borrowing.
27. Biological assets
Nil
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28. Oil and gas asset
Nil
29. Intangible assets
(1) Service life and its determination basis, estimation, amortization method or review procedure
1. Service life and its determination basis, estimation, amortization method or review procedure
Intangible assets are measured at actual cost. The cost of outsourced intangible assets includes the
purchase price, relevant taxes, and other expenses directly attributable to making the assets reach the intended
use. If intangible assets are purchased by installment, and the purchase price of intangible assets exceeds the
normal credit conditions and actually with financing nature, the cost of intangible assets is the present value of
the purchase price. The cost of intangible assets invested by investors shall be determined according to the value
agreed in the investment contract or agreement. If the value agreed in the investment contract or agreement is
unfair, it shall be recorded according to the fair value of intangible assets. For intangible assets obtained by
exchange of non-monetary assets, the initial investment cost shall be determined in accordance with the
Accounting Standards for Business Enterprises No.7-Exchange of Non-monetary Assets. For intangible assets
obtained by debt restructuring, its initial investment cost shall be determined in accordance with the Accounting
Standards for Business Enterprises No.12-Debt Restructuring. For intangible assets acquired by merger of
enterprises under the same control, their entry value shall be determined according to the book value of the
merged party; For intangible assets acquired by merger of enterprises not under the same control, their entry
value shall be determined at the fair value.
The Company analyzes and judges the service life of intangible assets when acquiring them, and divides
them into intangible assets with limited service life and intangible assets with uncertain service life. Intangible
assets with limited service life shall be amortized within the expected service life by adopting the amortization
method that can reflect the expected realization mode of economic benefits related to such assets from the time
when the intangible assets are available for use; If the expected realization mode cannot be reliably determined,
straight-line amortization method shall be adopted.
Amortization method, service life, determination basis and residual rate of various intangible assets with
limited service life:
Category Amortization method Service life (year) Determination basis Residual rate (%)
Statutory
Land use right Straight-line method 40-50 years term/registration term of
land use certificate
Trademark right Straight-line method 10 years Statutory term
Benefit period/contract
Software Straight-line method 2-10 years
period
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Benefit period/contract
Patent Straight-line method 5-10 years
period
Benefit period/contract
Non-patent technology Straight-line method 5-10 years
period
Industrial property rights
Benefit period/contract
and proprietary Straight-line method 10 years
period
technology
Benefit period/contract
Others Straight-line method 5-10 years
period
At the end of each year, the Company reviews the service life and amortization method of intangible
assets with limited service life. If the service life and amortization method of intangible assets are different from
those previously estimated, the amortization period and amortization method shall be changed.
The Company regards intangible assets with unpredictable future economic benefits as intangible assets
with uncertain service life, and does not amortize intangible assets with uncertain service life. The Company
reviews the service life of intangible assets with uncertain service life in each accounting period. If there is
evidence that the service life of intangible assets is limited, its service life shall be estimate and treatment shall
be carried out according to the above provisions.
Please refer to Item (27) Impairment of Long-term Assets in this accounting policy for details on the
impairment test method and accrual method for impairment provision of intangible assets.
(2) Collection scope of R&D expenditure and related accounting treatment methods
R&D expenditure is directly related to R&D activities of the enterprise, including R&D employee
compensation, direct input expenses, depreciation expenses and long-term deferred expenses, design expenses,
equipment debugging expenses, intangible assets amortization expenses, commissioned external R&D expenses,
and other expenses. The collection and calculation of R&D expenditure is based on the fact that relevant
resources are actually invested in R&D activities. R&D expenditure includes expensed R&D expenditure and
capitalized development expenditure.
The division standard of research stage expenditure and development stage expenditure of R&D projects:
Research stage expenditure refers to the expenditure incurred by original planned investigation for acquiring
and understanding new scientific or technical knowledge; Development stage expenditure refers to the
expenditure incurred by applying research results or other knowledge to a plan or design to produce new or
substantially improved materials, devices and products before commercial production or use.
Expenditures of intangible assets developed by the Company itself during the research stage of R&D
projects are included in the current profits and losses when incurred. Expenditure in the development stage of
the development project can only be recognized as intangible assets if the following conditions are met at the
same time:
(1) It is technically feasible to complete the intangible assets so that they can be used or sold;
(2) It has the intention to complete the intangible assets and use or sell them;
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(3) For the ways in which intangible assets generate economic benefits, including the ability to prove that
the products produced by using the intangible assets exist in the market or the intangible assets themselves exist
in the market, if the intangible assets will be used internally, their usefulness shall be proved;
(4) It has sufficient technical, financial and other resources to support the development of the intangible
assets, and has the ability to use or sell the intangible assets;
(5) Expenditure attributable to the development stage of the intangible assets can be reliably measured.
The expenditure in the development stage that has been expensed in the previous period is no longer
adjusted.
30. Impairment of long-term assets
Long-term assets such as long-term equity investment, investment real estate measured by cost model,
fixed assets, construction in progress, intangible assets and right-to-use assets, which show signs of impairment
on the balance sheet date, shall be tested for impairment. If the impairment test results show that the recoverable
amount of the asset is lower than its book value, the impairment provision shall be accrued according to the
difference and included in the impairment loss. The recoverable amount is the higher of the net amount of the
asset fair value after deducting the disposal expenses and the present value of the expected future cash flow of
the asset. The asset impairment provision is calculated and recognized on the basis of individual assets. If it is
difficult to estimate the recoverable amount of individual assets, the recoverable amount of the asset group shall
be determined by the asset group to which the asset belongs. Asset group is the smallest asset portfolio that can
generate cash inflow independently.
Goodwill shall be tested for impairment at least at the end of each year. The Company conducts goodwill
impairment test, and the book value of goodwill formed by business merger is allocated to relevant asset groups
according to reasonable methods from the date of purchase; If it is difficult to allocate to the relevant asset
group, allocate it to the relevant asset group portfolio. When allocating the book value of goodwill to the
relevant asset group or asset group portfolio, it shall be allocated according to the proportion of the fair value of
each asset group or asset group portfolio to the total fair value of the relevant asset group or asset group
portfolio. If it is difficult to reliably measure the fair value, it shall be apportioned according to the proportion of
the book value of each asset group or asset group portfolio to the total book value of the relevant asset group or
asset group portfolio. When carrying out impairment test on relevant asset groups or asset group portfolio
containing goodwill, if there are signs of impairment on asset groups or asset group portfolio related to goodwill,
first carry out impairment test on asset groups or asset group portfolio that do not contain goodwill, calculate
the recoverable amount, and compare it with the relevant book value to recognize the corresponding impairment
loss. Then carry out impairment test on the asset group or asset group portfolio containing goodwill, and
compare the book value of these relevant asset groups or asset group portfolio (including the book value of the
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allocated goodwill) with its recoverable amount. If the recoverable amount of the relevant asset group or asset
group portfolio is lower than its book value, recognize the impairment loss of goodwill.
Once the above-mentioned asset impairment losses are recognized, they will not be reversed in future
accounting periods.
31. Long-term expenses to be apportioned
Long-term deferred expenses refer to the expenses that have been incurred by the Company but should be
borne by the current period and subsequent periods with an amortization period of more than 1 year, including
the improvement expenses of fixed assets rented by operating lease. Long-term deferred expenses shall be
amortized evenly during the benefit period of relevant projects.
Category Amortization years
Decoration and maintenance fee 3-6 years
32. Contractual liability
Contractual liabilities reflect the Company's obligation to transfer goods to customers for received or
receivable consideration from customers. If the customer has paid the contract consideration or the Company
has obtained the unconditional right to receive the contract consideration before the Company transfers the
goods to the customer, the contractual liabilities shall be recognized according to the amount received or
receivable when the customer actually issues the payment or the payment is due, whichever is earlier.
Contract assets and contractual liabilities under the same contract are listed on a net basis, and contract
assets and contractual liabilities under different contracts are not offset.
33. Employee compensation
(1) Accounting treatment for short-term compensation
Short-term salary refers to the employee's salary that the Company needs to pay in full within 12 months
after the end of the annual report period when employees provide relevant services, except post-employment
benefits and dismissal benefits. During the accounting period when employees provide services, the Company
recognizes the actual short-term salary as a liability, and includes it into relevant asset costs and expenses
according to the beneficiaries of employees' services.
(2) Accounting treatment for post-employment benefit
Post-employment benefits refer to various forms of remuneration and benefits provided by the Company
after employees retire or terminate labor relations with the Company in order to obtain services provided by
employees, except short-term remuneration and dismissal benefits. Post-employment benefit plans include
defined contribution plan and defined benefit plans. Defined contribution plan refers to the post-employment
benefit plan in which the Company will not undertake further payment obligations after paying a fixed fee for
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an independent fund; Defined benefit plan refers to the post-employment benefit plan except the defined
contribution plan.
(1) Defined contribution plan
Defined contribution plan includes basic old-age insurance and unemployment insurance. During the
accounting period when employees provide services for the Company, the amount payable shall be calculated
according to the local payment base and proportion, recognized as liabilities, and included in the current profits
and losses or related asset costs.
During the accounting period when employees provide services, the amount payable calculated according
to the defined contribution plan is recognized as a liability and included in the current profits and losses or
related asset costs.
(2) Defined benefit plan
According to the formula determined by the expected cumulative benefit unit method, the Company
attributes the benefit obligations generated by defined benefit plan to the period when employees provided
services, and includes them in the current profits and losses or related asset costs. The employee compensation
cost caused by defined benefit plan of the Company includes the following components:
A. Service costs, including current service costs, past service costs and settlement gains or losses. Current
service costs refer to the increase in the present value of defined benefit plan obligations caused by employees'
provision of services in the current period; Past service costs refer to the increase or decrease of the present
value of defined benefit plan obligations related to employee service in the previous period caused by the
revision of the defined benefit plan.
B. Net interest of net liabilities or net assets in defined benefit plan, including the interest income of
planned assets, the interest expense of defined benefit plan obligations and the interest affected by the asset
ceiling.
C. Changes arising from re-measurement of net liabilities or net assets in defined benefit plan.
Unless other accounting standards require or allow employee benefit costs to be included in the asset costs,
the Company will include the above items A and B in the current profits and losses, and include Item C in other
comprehensive income which will not be transferred back to profit or loss in subsequent accounting periods, but
these amounts recognized in other comprehensive income can be transferred within the scope of equity.
(3) Accounting for retirement benefits
Dismissal benefits refer to the compensation provided to employees by the Company for terminating the
labor relationship with employees before the expiration of their labor contracts or for encouraging employees to
voluntarily accept layoffs. If the Company provides dismissal benefits to employees, the employee
compensation liabilities arising from the dismissal benefits shall be recognized at the earlier of the following
two dates, and included in the current profits and losses: when the Company cannot unilaterally withdraw the
dismissal benefits provided by the plan to terminate labor relations or the proposal to cut back; When the
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Company recognizes the costs or expenses related to the reorganization involving the payment of dismissal
benefits.
(4) Accounting for other long-term employee benefits
Other long-term employee benefits refer to all employee compensation except short-term salary, post-
employment benefits and dismissal benefits, including long-term paid absences, long-term disability benefits
and long-term profit sharing plans. Other long-term employee benefits provided by the Company to employees,
if they meet the requirements of the defined contribution plan, shall be handled in accordance with the relevant
provisions of the defined contribution plan; For other long-term employee benefits other than the above, the net
liabilities or net assets of other long-term employee benefits shall be recognized and measured according to the
relevant regulations of the defined benefit plan. At the end of the reporting period, the Company attributed the
benefit obligations arising from other long-term employee benefits to the period when employees provided
services, and included them in the current profits and losses or related asset costs.
34. Accrual liability
If the Company's obligation related to contingencies meet the following conditions at the same time, it
will be recognized as a liability: (1) This obligation is the current obligation undertaken by the Company; (2)
The performance of this obligation may lead to the outflow of economic benefits; (3) The amount of the
obligation can be measured reliably.
All or part of the expenditures required for the estimated liabilities are expected to be compensated by the
third party or other parties, and the compensation amount is recognized as an asset separately when it is
basically determined that it can be received, and the recognized compensation amount does not exceed the book
value of the recognized liabilities. The estimated liabilities are initially measured according to the best estimate
of the expenditure required to perform the relevant current obligations, with the factors related to contingencies,
such as risks, uncertainties and time value of money, comprehensively considered. If the time value of money
has a significant impact, the best estimate shall be determined by discounting the relevant future cash outflows.
On the balance sheet date, the Company reviews the book value of the estimated liabilities. If there is
conclusive evidence that the book value cannot truly reflect the current best estimate, such book value will be
adjusted according to the current best estimate.
35. Share-based payment
1. Types of share-based payment
Share-based payment of the Company is divided into cash-settled share-based payment and equity-settled
share-based payment.
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Equity-settled share-based payment shall be measured at the fair value of equity instruments granted to
employees. If it is exercisable immediately after the grant, it will be included in the relevant costs or expenses
according to the fair value of the equity instrument on the grant date, and the capital reserve will be increased
accordingly. If it is exercisable only after the service within the waiting period is completed or the specified
performance conditions are met, on each balance sheet date within the waiting period, the service obtained in
the current period shall be included in the relevant costs or expenses and capital reserve based on the best
estimate of the number of exercisable equity instruments and according to the fair value on the grant date of the
equity instruments. After the vesting date, the recognized related costs or expenses and the total owners' equity
will not be adjusted.
Cash-settled share-based payment shall be measured at fair value of liabilities calculated and determined
based on shares or other equity instruments undertaken by the Company. If it is exercisable immediately after
the grant, it will be included in the relevant costs or expenses at the fair value of the liabilities undertaken by the
Company on the grant date, and the liabilities will be increased accordingly. For cash-settled share-based
payment exercisable after the service in the waiting period is completed or the specified performance conditions
are met, the service obtained in the current period shall be included in the costs or expenses and corresponding
liabilities on each balance sheet date during the waiting period based on the best estimate of the vesting
situation and according to the fair value of the liabilities undertaken by the Company. On each balance sheet
date and settlement date before the settlement of related liabilities, the fair value of liabilities is re-measured,
and its changes are included in the current profits and losses.
2. Accounting treatment related to implementation, modification and termination of share-based payment
plan
No matter how the terms and conditions of the granted equity instruments are modified, or even the grant
of the equity instruments is cancelled or the equity instruments are settled, the Company shall at least recognize
that the corresponding services obtained are measured according to the fair value of the granted equity
instruments on the grant date, unless the vesting conditions of the equity instruments (except market conditions)
cannot be met.
If the Company cancels the granted equity instruments or settles the granted equity instruments within the
waiting period (except those cancelled due to failure to meet the conditions of vesting conditions), the treatment
is as follows:
(1) The cancellation or settlement will be treated as accelerated vesting, and the amount that should have
been recognized in the remaining waiting period will be recognized immediately.
(2) All the money paid to employees at the time of cancellation or settlement shall be treated as the
repurchase of equity, and the part paid for repurchase that is higher than the fair value of the equity instrument
on the repurchase date shall be included in the current expenses.
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(3) If a new equity instrument is granted to employees, and it is determined that the new equity
instrument granted is used to replace the cancelled equity instrument on the grant date of the new equity
instrument, the Company shall handle the granted alternative equity instrument in the same way as the
modification of the terms and conditions of the original equity instrument.
36. Other financial instruments including preferred stock and perpetual bonds
Nil
37. Revenue
Disclosure of accounting policies adopted in income recognition and measurement according to business types
The Company has fulfilled its contractual obligations, that is, to recognize the income when the customer
obtains the control right of relevant goods. Performance obligation refers to the commitment to transfer clearly
distinguishable goods to customers in the contract. The Company evaluates the contract on the contract start
date to identify each individual performance obligation contained in the contract. If the following conditions are
met at the same time, it is clearly distinguishable goods:
(1) Customers can benefit from the goods itself or from the use of the goods along with other easily
available resources;
(2) The commitment to transfer the goods to customers can be distinguished separately from other
commitments in the contract.
The following situations usually indicate that the commitment to transfer the goods to customers cannot
be distinguished separately from other commitments in the contract:
(1) Significant services need to be provided to integrate the goods and other goods promised in the
contract into the combined output agreed in the contract and transfer it to customers;
(2) The goods will make major modifications or customizations to other goods promised in the contract;
(3) The goods are highly correlated with other goods promised in the contract.
The transaction price is the amount of consideration that the Company is expected to receive for
transferring the goods to customers, excluding the payment collected on behalf of third parties and the payment
that the Company is expected to return to customers. When determining the transaction price of the contract, if
there is a variable consideration, the Company will determine the best estimate of the variable consideration
according to the expected value or the most likely amount, and include it in the transaction price at an amount
not exceeding the amount that is unlikely to be significantly reversed when the relevant uncertainty is
eliminated. If there is a significant financing component in the contract, the Company will determine the
transaction price according to the amount payable in cash when the customer obtains the goods control right,
and the difference between the transaction price and the contract consideration will be amortized by the
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effective interest rate method during the contract period. If the interval between the customer obtaining the
goods control right and the customer paying the price is less than one year, the Company will not consider the
financing component. When the consideration that the Company has the right to collect from the customer due
to the transfer of goods is in the form of non-cash, the Company will determine the transaction price according
to the fair value of the non-cash consideration on the contract start date. If the fair value of the non-cash
consideration cannot be reasonably estimated, the Company will indirectly determine the transaction price with
reference to the individual selling price of the goods it promised to transfer to customers. For the payment that
the Company expects to return to customers, except for obtaining other clearly distinguishable goods from
customers, the consideration payable shall be used to offset the transaction price. If the consideration payable to
customers exceeds the fair value of clearly distinguishable goods obtained from customers, the excess amount
shall be used as the consideration payable to customers to offset the transaction price. If the fair value of clearly
distinguishable goods obtained from customers cannot be reasonably estimated, the Company will fully offset
the transaction price from the consideration payable to customers. When carrying out accounting treatment on
the transaction price offset by the consideration payable to customers, the Company will offset the current
income at the later time of recognizing the relevant income and paying (or promising to pay) the customer
consideration.
If the contract contains two or more performance obligations, the Company will allocate the transaction
price to each individual performance obligation according to the relative proportion of the individual selling
price of the goods promised by each individual performance obligation on the contract start date, and measure
the income according to the transaction price allocated to each individual performance obligation. In case of
subsequent changes in the transaction price, the Company will allocate the subsequent changes to the
performance obligations in the contract according to the basis adopted on the contract start date. The transaction
price will not be re-allocated due to the change of individual selling price after the contract start date.
If any of the following conditions is met, the Company will perform its obligations within a certain period
of time; Otherwise, it is a fulfillment of performance obligation at a certain time point:
(1) Customers gain and consume the economic benefits brought by the Company's performance at the
same time;
(2) Customers can control the goods under construction during the performance of the Company;
(3) The goods produced during the performance of the Company have irreplaceable uses, and the
Company has the right to collect payment for the accumulated part of the performance completed so far during
the whole contract period.
For the performance obligations performed in a certain period of time, the Company shall recognize the
income according to the performance progress during that period, except that the performance progress cannot
be reasonably determined. The Company determines the performance progress of provided services according
to the input method. When the performance progress cannot be reasonably recognized, if the cost already
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incurred by the Company is expected to be compensated, the revenue will be recognized according to the cost
amount already incurred until the performance progress can be reasonably recognized.
For the performance obligations fulfilled at a certain time point, the Company recognizes the income
when the customer obtains the control right of relevant goods. When judging whether the customer has obtained
the control of the goods, the Company will consider the following signs:
(1) The Company is entitled to the right of real time payment collection for the goods, that is, the
customer has the real time payment collection obligation for the goods;
(2) The Company has transferred the legal ownership of the goods to the customer, that is, the customer
has the legal ownership of the goods;
(3) The Company has transferred the goods in kind to the customer, that is, the customer has occupied the
goods in kind;
(4) The Company has transferred the main risks and rewards on the ownership of the goods to the
customer, that is, the customer has obtained the main risks and rewards on the ownership of the goods;
(5) The customer has accepted the goods.
According to whether the Company has control over the goods or services before transferring them to
customers, the Company judges whether it is the main responsible person or the agent when engaging in
transactions. If the Company can control the goods or services before transferring them to customers, the
Company is the main responsible person, and the income is recognized according to the total consideration
received or receivable; Otherwise, the Company is an agent, and will recognize the income according to the
expected amount of commission or handling fee, which is determined according to the net amount of the total
consideration received or receivable after deducting the price payable to other interested parties, or according to
the established commission amount or proportion.
The situations in which the Company can control the goods before transferring them to customers include
the following:
(1) The enterprise transfers the control right of goods or other assets to the customer after it obtains it from
a third party;
(2) The enterprise can lead the third party to provide services to customers on behalf of the enterprise;
(3) After the enterprise obtains the control right of the goods from the third party, it integrates the goods
with other goods into a combined output and transfers it to the customer by providing significant services.
When judging whether it has control over the goods before transferring them to customers, the Company
comprehensively considers all relevant facts and circumstances, including:
(1) The enterprise bears the main responsibility for transferring goods to customers;
(2) The enterprise bears the inventory risk of the goods before or after their transfer;
(3) The enterprise has the right to decide the prices of the goods for trade independently;
(4) Other relevant facts and circumstances.
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Different income recognition methods and measurement methods involved in different business models adopted
by similar businesses
The Company's commodity sales mainly include circulation sales, shopping mall joint operation and
proprietary e-commerce, and the recognition methods of sales revenuethese three ways are as follows:
(1) Circulation sales refers to that the Company recognizes the sales revenue when the goods are delivered
to the customer and the authorized representative or the first carrier recognized by the customer at the
designated place, and the customer and the authorized representative or the first carrier have signed for it, and
the Company has received the payment or obtained delivery documents.
(2) The shopping mall joint operation is the Company cooperates with the shopping mall to carry out joint sales
in the form of counters in the shopping mall, and according to the agreement signed with the shopping mall, the
shopping mall collects the payment when the Company's counters sell goods to customers, and the Company
and the shopping mall carry out sales settlement. The shopping mall pays the Company after reconciling with
the Company at the agreed settlement time (generally the next month) and deducting the income and related
expenses enjoyed by the shopping mall. The Company recognizes the sales revenue after deducting the
deduction profit belonging to the shopping mall according to the full amount of the completed transaction of
actual sales in the month.
(3) Proprietary e-commerce refers to that the Company retails through third-party e-commerce platforms
(such as Tmall and JD.COM), and recognizes the sales revenue when the customer signs for the goods and
obtains the payment or payment right.
The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen
Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
Nil
38.Contract cost
Contract costs include incremental costs incurred in obtaining contract and contract performance costs.
The incremental costs incurred to obtain the contract refer to the costs that the Company would not have
incurred if the contract had not been obtained (e.g., sales commission, etc.). If the cost is expected to be
recovered, the Company recognizes it as an asset for the costs of acquiring the contract. Expenses incurred by
the Company in obtaining the contract, other than the incremental costs that are expected to be recovered, are
included in profit or loss for the current period when incurred.
If the costs incurred for the performance of the contract are not subject to the scope of the relevant
standards such as inventory, fixed assets or intangible assets, and the following conditions are met at the same
time, the Company recognizes them as an asset for contract performance costs:
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(1) the cost is directly related to a current or an anticipated contract, including direct labor, direct materials,
manufacturing expenses (or similar expenses), costs expressly borne by the customer and other costs
incurred solely as a result of the contract;
(2) the cost increases the resources that the enterprise will use to fulfill its performance obligations in the
future;
(3) the cost is expected to be recovered.
The asset as recognized by the cost of acquiring the contract and the asset as recognized by the cost of
performance of the contract are amortized on the same basis as the revenue recognition of the goods or services
related to the assets, and are included in profit or loss for the current period.
If the carrying amount of an asset related to the contract cost is higher than the following two differences,
the Company shall make an impairment provision for the excess and recognize it as an asset impairment loss:
(1) The residual consideration that the enterprise is expected to receive as a result of the transfer of
commodities related to the asset;
(2) An estimate of the costs to be incurred for the transfer of the relevant goods.
If the factors of impairment in the previous period change subsequently, so that the difference by (1)
minus (2) is higher than the carrying amount of the asset, the original provision for impairment of the asset shall
be reversed and included in the profit or loss for the current period, but the carrying amount of the reversed
asset shall not exceed the carrying amount of the asset on the reversal date assuming that no provision for
impairment is made.
39. Government subsidies
1. Types of government subsidies
Government subsidies refer to the monetary assets or non-monetary assets obtained by the company from
the government free of charge, including government subsidies related to assets and government subsidies
related to income.
Asset-related government subsidies refer to government subsidies obtained by a company for the
acquisition, construction or other formation of long-term assets.
Income-related government subsidies refer to government subsidies other than asset-related government
subsidies.
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2. The principle and timing of recognition of government subsidies
Recognition principle of government subsidies:
(1) The company is able to meet the conditions attached by the government subsidy;
(2) The company is able to receive government subsidies.
The government subsidy can only be recognized if the above conditions are met at the same time.
3. Measurement of government subsidies
(1) If the government subsidy is a monetary asset, the company shall measure it according to the amount
received or receivable;
(2) If the government subsidy is a non-monetary asset, the company shall measure it at fair value, and if
the fair value cannot be reliably obtained, it shall be measured at the notional amount (the notional amount is
RMB 1).
4. Accounting treatment of government subsidies
(1) Asset-related government subsidies are written off the carrying amount of the underlying assets or
recognized as deferred income upon acquisition. If it is recognized as deferred income, it shall be included in
profit or loss in installments in accordance with a reasonable and systematic method during the useful life of the
relevant asset. Government subsidies measured in notional amounts are directly included in profit or loss for the
current period.
(2) Government subsidies related to income shall be handled as follows:
A. If it is used to compensate the company for the relevant costs, expenses or losses in subsequent periods,
it shall be recognized as deferred income at the time of acquisition, and shall be included in the profit or loss for
the current period or offset the relevant costs during the period when the relevant costs, expenses or losses are
recognized.
B. If it is used to compensate for the relevant costs, expenses or losses incurred by the company, it shall be
directly included in the current profit or loss or offset the relevant costs when acquired.
(3) For government subsidies that are included in both the asset-related part and the income-related part, if
they can be distinguished, they shall be accounted for separately in different parts, and if it is difficult to
distinguish, they shall be classified as income-related government subsidies as a whole.
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(4) Government subsidies related to the company's routine operations shall be included in other income or
offset related costs and expenses according to the economic business substance. Government subsidies
unrelated to the company's routine activities are included in non-operating income and expenditure. If the
finance department directly allocates the discount funds to the company, the company will offset the relevant
borrowing costs with the corresponding discount.
(5) If the confirmed government subsidy needs to be returned, it shall be handled according to the
following circumstances:
A. If the carrying amount of the relevant asset is reduced at the time of initial recognition, the carrying
amount of the asset shall be adjusted.
B. If there is relevant deferred income, the carrying amount of the relevant deferred income shall be written
off, and the excess part shall be included in the profit or loss for the current period.
C. If it belongs to other circumstances, it shall be directly included in the profit or loss for the current period.
40. Deferred tax assets/deferred tax liabilities
When the company acquires assets and liabilities, it determines its tax base. If there is a temporary
difference between the carrying amount of assets and liabilities and their tax base, the deferred tax assets or
deferred tax liabilities arising from them shall be recognized in accordance with the regulations.
1. Recognition of deferred tax assets
(1) The company recognizes deferred tax assets arising from deductible temporary differences to the
extent that it is likely to obtain taxable income that can be used to offset deductible temporary differences.
However, deferred tax assets arising from the initial recognition of assets or liabilities are not recognized in
transactions that (1) is not a business combination, and (2) the transaction does not affect either accounting
profits or taxable income (or deductible losses) at the time of the transaction.
(2) The Company recognizes the corresponding deferred tax assets for deductible temporary differences
related to investments in subsidiaries, associates and joint ventures that meet the following conditions at the
same time: (1) the temporary differences are likely to be reversed in the foreseeable future, and (2) the taxable
income used to offset the deductible temporary differences is likely to be obtained in the future.
(3) For deductible losses and tax credits that can be carried forward to subsequent years in accordance
with the provisions of the tax law, they shall be treated as deductible temporary differences, and the
corresponding deferred tax assets shall be recognized to the extent that the future taxable income that is likely to
be used to offset the deductible losses and tax credits.
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Annual Report 2023
2. Recognition of deferred tax liabilities
(1) The company recognizes all deferred tax liabilities arising from taxable temporary differences, except
for the deferred income tax liabilities arising from the following transactions: (1) the initial recognition of
goodwill, and (2) the initial recognition of assets or liabilities arising from transactions that satisfy both the
following characteristics: the transaction is not a business combination, and the transaction does not affect either
the accounting profit or the taxable income (or deductible loss) at the time of the transaction.
(2) The Company recognizes the corresponding deferred tax liabilities for taxable temporary differences
related to investments in subsidiaries, associates and joint ventures, but other than those with the following
conditions are met at the same time: (1) the investment enterprise can control the time for the reversal of the
temporary difference, and (2) the temporary difference is likely not to be reversed in the foreseeable future.
3. Presentation of net offsets of deferred tax assets and deferred tax liabilities
When the company has the legal right to settle on a net basis and intends to settle on a net basis or acquire
assets and settle liabilities at the same time, the company's current income tax assets and current income tax
liabilities are presented on a net basis after offset.
When there is a legal right to settle the current income tax assets and current income tax liabilities on a net
basis, and the deferred tax assets and deferred tax liabilities are related to the income tax levied by the same tax
collection and administration department on the same taxpayer or levied by the same tax collection and
administration department to different tax subjects, but in each period of reversal of deferred tax assets and
liabilities of material nature in the future, the taxpayer involved intends to settle the current income tax assets
and liabilities on a net basis or acquire the assets and settle liabilities at the same time, the deferred tax assets
and deferred tax liabilities of the Company are presented on a net basis after offset.
41. Leasing
(1) Accounting treatment as a lessee lease
(1) Right-of-use assets
On the commencement date of the lease term, the Company, as the lessee, recognizes the right to use the
leased asset during the lease term as right-of-use asset, except for short-term leases and leases of low-value
assets.
Right-of-use assets are initially measured at cost, which includes:
A. Initial measurement amount of the lease liability;
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Annual Report 2023
B. If there is a lease incentive for the lease payment paid on or before the start date of the lease term, the
relevant amount of the lease incentive already enjoyed shall be deducted;
C. Initial direct costs incurred;
D. Costs expected to be incurred to dismantle and remove the leased asset, restore the site on which the
leased asset is located, or restore the leased asset to the condition agreed in the lease terms, except for the
production of inventory.
The Company adopts the cost model for the subsequent measurement of right-of-use assets, and adopts the
straight-line method for depreciation of various types of right-of-use assets.
If the Company is able to reasonably determine that the ownership of the leased assets will be acquired at
the expiration of the lease term, the depreciation shall be accrued during the remaining useful life of the leased
assets, and if it cannot be reasonably determined that the ownership of the leased assets can be acquired at the
expiration of the lease term, the depreciation shall be accrued during the period which is shorter from the lease
term and the remaining useful life of the leased assets. If the right-of-use asset is impaired, the Company will
carry out subsequent depreciation based on the carrying amount of the right-of-use asset after deducting the
impairment loss.
When the Company remeasures lease liabilities based on the present value of the changed lease payments
and adjusts the carrying amount of right-of-use assets accordingly, if the carrying amount of right-of-use assets
has been reduced to zero, but the lease liabilities still need to be further reduced, the remaining amount will be
included in profit or loss for the current period.
The impairment test method and impairment provision method of right-of-use assets are detailed in
(XXVII) Impairment of long-term assets of this accounting policy.
(2) Lease liabilities
At the commencement date of the lease term, the Company recognizes the present value of unpaid lease
payments as lease liabilities, excluding short-term leases and leases of low-value assets.
When calculating the present value of the lease payment, the Company, as the lessee, uses the interest rate
implicit in the lease as the discount rate, and if the interest rate implicit in the lease cannot be determined, the
incremental borrowing rate of the Company is used as the discount rate.
The Company calculates the interest expense of lease liabilities for each period of the lease term at a fixed
periodic interest rate and includes them in profit or loss for the current period. Variable lease payments that are
not included in the measurement of lease liabilities are recognized in profit or loss for the current period when
they are actually incurred.
After the commencement date of the lease term, the Company will remeasure the lease liability based on
the present value of the changed lease payment in the event of a change in the amount of the substantial fixed
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Annual Report 2023
payment, a change in the estimated amount payable for the residual value of the guarantee, a change in the
index or ratio used to determine the amount of the lease payment, a change in the evaluation result or actual
exercise of the option to purchase, renew or terminate the option.
(3) Short-term leases and leases of low-value assets
A short-term lease is a lease with a lease period of not more than 12 months on the start date of the lease
term and does not include an option to purchase. A lease of a low-value asset refers to a lease with a low value
when a single leased asset is a brand-new asset. If the Company subleases or expects to sublease the leased
assets, the original lease is not a low-value asset lease.
The Company chooses not to recognize right-of-use assets and lease liabilities for short-term leases and
leases of low-value assets, and to include the relevant lease payments in profit or loss or the cost of related
assets on a straight-line basis for each period of the lease term.
（2） Accounting treatment as a lessor's lease
On the lease commencement date, the Company divides the lease into the finance lease and the operating
lease. A financial lease refers to a lease that substantially transfers almost all of the risks and rewards associated
with the ownership of the leased asset, regardless of whether the ownership is ultimately transferred. Operating
leases refer to leases other than financial leases. When the Company acts as a subleaselessor, it classifies the
sublease based on the right-of-use assets generated from the original lease.
(1) Accounting treatment of operating leases
Lease receipts from operating leases are recognized as rental income on a straight-line basis for each
period of the lease term. The Company capitalizes the initial direct expenses incurred in connection with the
operating lease and apportion them to profit or loss for the current period on the same basis as the rental income
recognition during the lease term. Variable lease payments that are not included in lease receipts are recognized
in profit or loss for the current period when they are actually incurred.
(2) Accounting treatment of financial leases
On the lease commencement date, the Company recognizes the financial lease receivables for the financial
lease and terminates the recognition of the financial lease assets. When the Company initially measures the
financial lease receivables, the net lease investment is recorded as the entry value of the financial lease
receivables. The net lease investment is the sum of the unsecured residual value and the present value of lease
receipts not yet received at the start date of the lease term discounted at the interest rate implicit in the lease.
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Annual Report 2023
The Company calculates and recognizes interest income for each period of the lease term at a fixed
periodic interest rate. The derecognition and impairment of financial lease receivables are described in (Xl)
Financial instruments of this accounting policy.
Variable lease payments that are not included in the net measurement of lease investments are recognized
in profit or loss for the period when they are actually incurred.
42. Other important accounting policy and estimation
Nil
43. Changes of important accounting policy and estimation
(1) Changes of important accounting policy
Applicable □Not applicable
In RMB
Content and reason of the accounting The name of the report item that is
Affected amount
policy change significantly affected
In November 2022, the Ministry of
Finance issued the Interpretation No. 16
of Accounting Standards for Business
Enterprises (No. 31[2022] Cai Kuai)
(hereinafter referred to as "Interpretation
No. 16"), in which the“Accounting
treatment of deferred income tax related
See other notes for details
to assets and liabilities arising from a
single transaction not applicable to the
initial recognition exemption"will come
into effect on January 1, 2023. The
Company shall commence the
implementation from the date of the
regulation.
Other note：
On November 30, 2022, the Ministry of Finance issued Interpretation No. 16.The Company shall implement
the "Accounting treatment of deferred income tax related to assets and liabilities arising from a single transaction
not applicable to the initial recognition exemption" from January 1, 2023.
Interpretation No. 16 clarifies that for a single transaction that is not a business combination, the
transaction does not affect the accounting profit or the taxable income (or deductible loss) at the time of the
transaction, and the assets and liabilities initially recognized result in the same amount of taxable temporary
differences and deductible temporary differences, for the taxable temporary differences and deductible
temporary differences arising from the initial recognition of assets and liabilities, the corresponding deferred tax
liabilities and deferred tax assets that are recognized separately when the transaction occursshall be in
accordance with Accounting Standard for Business Enterprises No. 18 - Income Tax and other relevant
provisions. The provisions will come into force on January 1, 2023, and for the above-mentioned transactions
that occur from the beginning of the earliest period of the financial report presentation period and the effective
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Annual Report 2023
date of this interpretation for the first time of implementation of above-said regulation, the Company shall
adjust the cumulative impact to the opening retained earnings and other relevant financial statement items
presented for the earliest period of the financial report.
The adoption of Interpretation No. 16 by the Company does not have a material impact on the Company's
financial condition and operating results.
(2) Changes of important accounting estimation
□Applicable Not applicable
（3） The Company started implementing the updated accounting standards commencing from 2023
and adjusted the relevant items in the financial statements at the beginning of the very year involved in
the initial implementation of the said standards
□Applicable Not applicable
44.Other
Nil
VI. Taxes
1. Main tax and tax rate
Type of tax Tax calculation evidence Tax rate
Sales of goods, taxable labor service
revenue, taxable income, intangible
Value added tax 5%,6%,9%,13%
assets income and income from property
leasing
City maintenance & construction tax VAT payable 7%
Enterprise income tax Taxable income See below for details
Education Fee Surcharge VAT payable 3%
Local education fee surcharge VAT payable 2%
Disclose reasons for different taxpaying body
Taxpaying body Income tax rate
Shenzhen China Bicycle Company (Holdings) Co., Ltd. 25%
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd 25%
Shenzhen Xinsen Precision Manufacturing Co.,Ltd. 20%
Shenzhen Emmelle Industrial Co., Ltd. 20%
Shenzhen Emmelle Cloud Technology Co., Ltd. 20%
Fujian Huaxinbao Jewelry Co., Ltd. 20%
Shenzhen Huabao Zhenxuan Jewelry Co., Ltd. 20%
Hainan Shenhua Industry Co., Ltd. 20%
2. Tax preference
The subsidiaries Shenzhen Xinsen Precision Manufacturing Co., Ltd., Shenzhen Emmelle Industrial Co., Ltd.,
Shenzhen Emmelle Cloud Technology Co., Ltd., Fujian Huaxinbao Jewelry Co., Ltd., Shenzhen Huabao
Selection Jewelry Co., Ltd., and Hainan Shenhua Industrial Co., Ltd. meet the conditions of "small and low-
160
Annual Report 2023
profit enterprises", and according to the regulations of No. 12[2023] announcement of the State Administration
of Taxation of the Ministry of Finance "Announcement on Further Supporting the Development of Small and
Micro Enterprises and Individual Industrial and Commercial Households", for small enterprises with small
profit, the income tax policy for the taxable income will be reduced to be 25% to calculateand the enterprise
income tax paid at the rate of 20% will be extended until December 31,2027.
3.Other
Nil
VII. Notes to Items in the Consolidated Financial Statements
1. Monetary fund
In RMB
Item Ending balance Opening balance
Cash on hand 13,955.25 33,531.25
Bank deposit 54,134,719.15 50,889,338.10
Other monetary fund 3,776,621.83
Total 54,148,674.40 54,699,491.18
Other note：
The other monetary funds in the opening balance of RMB 3,776,621.83 are frozen funds in litigation.
2. Trading financial assets
In RMB
Item Ending balance Opening balance
Including:
Including:
Other note：
Nil
3. Derivative financial assets
In RMB
Item Ending balance Opening balance
N/A
Other note：
Nil
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Annual Report 2023
4. Note receivable
(1) Category
In RMB
Item Ending balance Opening balance
Bank acceptance notes 1,102,000.00
Total 1,102,000.00
（2） According to the bad debt provision method classification disclosure
In RMB
Ending balance Opening balance
Categor Book balance Bad debt provision Book Book balance Bad debt provision
y Book
value
Amount Ratio Amount Ratio Amount Ratio Amount Ratio value
Ratio
Includin
g:
Includin
g:
If the provision for bad debts of notes receivable is made in accordance with the general model of expected
credit losses, please refer to the disclosure of other account receivable to disclose related information about bad-
debt provisions:
□Applicable Not applicable
(3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
Including important amount of bad debt provision collected or reversal in the period:
□Applicable Not applicable
(4) Note receivable pledged at period-end
In RMB
Item Amount pledged at period-end
(5) Note receivable which have endorsed and discount at period-end and has not expired on balance sheet
date
In RMB
Item Amount derecognition at period-end Amount not derecognition at period-end
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Annual Report 2023
(6) Note receivable actually written-off in the period
In RMB
Item Amount written off
Including important note receivable written-off:
In RMB
Amount cause by
Amount written related
Enterprise Nature Causes Procedure
off transactions or not
(Y/N)
Explanation on note receivable written-off:
Nil
5. Account receivable
(1)Category
（1）Disclosure according to the aging of accountBy account age
In RMB
Aging Balance in year-end Balance Year-beginning
Within one year(one year included) 193,373,233.68 256,831,667.42
1-2 years 13,036,723.35 11,005,264.71
2-3 years 10,764,196.13 2,070,170.90
Over 3 years 4,153,455.77 2,416,645.92
3-4 years 1,812,809.85 1,016,132.00
4-5 years 966,132.00 642,462.42
Over 5 years 1,374,513.92 758,051.50
Total 221,327,608.93 272,323,748.95
（2） According to the bad debt provision method classification disclosure
In RMB
Amount in year-end Balance Year-beginning
Book Balance Bad debt provision Book Book Balance Bad debt provision Book
Category value value
Amount Proporti Amount Proporti Amount Proporti Amount Proporti
on(%) on(%) on(%) on(%)
Accrual of
bad debt 26,538,8 23,902,0 2,636,83 26,197,9 21,516,0 4,681,90
11.99% 90.06% 9.62% 82.13%
provision 39.97 00.33 9.64 73.35 69.69 3.66
by single
Including
：
Single
26,538,8 23,902,0 2,636,83 26,197,9 21,516,0 4,681,90
identificati 11.99% 90.06% 9.62% 82.13%
39.97 00.33 9.64 73.35 69.69 3.66
on
Accrual of 194,788, 1,132,47 193,656, 246,125, 738,377. 245,387,
88.01% 0.58% 90.38% 0.30%
bad debt 768.96 5.60 293.36 775.60 33 398.27
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Annual Report 2023
provision
by
portfolio
Including
：
Aging 194,788, 1,132,47 193,656, 246,125, 738,377. 245,387,
88.01% 0.58% 90.38% 0.30%
portfolio 768.96 5.60 293.36 775.60 33 398.27
221,327, 25,034,4 196,293, 272,323, 22,254,4 250,069,
Total 100.00% 11.31% 100.00% 8.17%
608.93 75.93 133.00 748.95 47.02 301.93
Bad debt provision accrual on single basis: Single identification
In RMB
Opening balance Ending balance
Name Bad debt Bad debt Reason for
Book balance Book balance Accrual ratio
provision provision accrual
Guangshui
Expected to be
Jiaxu Energy
21,862,832.43 17,490,265.94 22,019,832.63 19,817,849.37 90.00% difficult to
Technology
recover
Co., Ltd.
Suzhou
Daming Expected to be
Vehicle 944,014.42 755,211.54 915,394.42 732,315.54 80.00% difficult to
Industry Co., recover
Ltd.
Suzhou Jiaxin Expected to be
Economic 888,757.00 888,757.00 888,757.00 888,757.00 100.00% difficult to
Trade Co., Ltd. recover
Dongguan
Expected to be
Daxiang New
676,734.00 676,734.00 626,734.00 626,734.00 100.00% difficult to
Energy Co.,
recover
Ltd.
Ningbo
Prepare for
Fanxing New
litigation and
Energy 503,555.00 251,777.50 50.00%
demand for
Technology
collection
Co., Ltd.
Shijiazhuang Expected to be
Dasong Tech. 497,064.00 497,064.00 497,064.00 497,064.00 100.00% difficult to
Co., Ltd recover
Guangdong
Expected to be
Xinlingjia New
348,136.00 348,136.00 348,136.00 348,136.00 100.00% difficult to
Energy Co.,
recover
Ltd.
Shanghai Swen Expected to be
Electric Vehicle 280,197.50 280,197.50 280,197.50 280,197.50 100.00% difficult to
Co., Ltd. recover
Expected to be
Other 194,525.00 194,525.00 194,525.00 194,525.00 100.00% difficult to
recover
There are
Fuzhou Dayang
disputes that
Commercial 147,804.28 147,804.28 147,804.28 147,804.28 100.00%
are difficult to
Co., Ltd.
recover
Tianjin Huiju Expected to be
Electric Vehicle 116,840.14 116,840.14 116,840.14 116,840.14 100.00% difficult to
Co., Ltd. recover
Hubei Topsdun 241,068.58 120,534.29
164
Annual Report 2023
Eletronic Tech.
Co., Ltd.
Total 26,197,973.35 21,516,069.69 26,538,839.97 23,902,000.33
Bad debt provision accrual on portfolio: Aging portfolio
In RMB
Ending balance
Name of the Company
Book balance Bad debt provision Accrual ratio
Within 1 year 193,216,233.48 579,648.70 0.30%
1-2 years 1,021,052.80 3,063.16 0.30%
2-3 years 1,724.11 5.17 0.30%
3-4 years 549,758.57 549,758.57 100.00%
Total 194,788,768.96 1,132,475.60
Explanation on portfolio basis:
Nil
If the provision for bad debts of account receivable is made in accordance with the general model of expected
credit losses, please refer to the disclosure of other account receivable to disclose related information about bad-
debt provisions:
□ApplicableNot applicable
(3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
Accounts
receivable with
individual 21,516,069.69 2,579,360.93 193,430.29 23,902,000.33
provision for
bad debts
Provision for
bad debts based
on a portfolio 738,377.33 475,017.85 80,919.58 1,132,475.60
of credit risk
characteristics
Total 22,254,447.02 3,054,378.78 274,349.87 25,034,475.93
Including important amount of bad debt provision collected or reversal in the period:
In RMB
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
Nil
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Annual Report 2023
(4) Account receivables actually write-off during the reporting period
In RMB
Item Amount written off
Including major account receivables write-off:
In RMB
Amount cause by
Amount written related
Enterprise Nature Causes Procedure
off transactions or not
(Y/N)
Explanation on account receivable write-off:
Nil
（5）The top five accounts receivable and contract assets at the end of the period aggregated according
to debtor
In RMB
Ending balance of
Proportion to the
accounts
Ending balance of total ending
Ending balance of receivable bad
Name of the Ending balance of accounts balance of
accounts debt provision and
organization contract assets receivable and accounts
receivable contract asset
contract assets receivable and
impairment
contract assets
provision
Fuzhou Rongrun
41,857,170.03 0.00 41,857,170.03 18.91% 125,571.51
Jewelry Co., Ltd
Shenzhen
Yunshang Jewelry 34,804,104.88 0.00 34,804,104.88 15.73% 104,412.31
Co., Ltd
Shenzhen
Hualinglong
Jewelry Culture 32,948,292.58 0.00 32,948,292.58 14.89% 98,844.88
Technology Co.,
Ltd
GuangshuiJiaxu
Energy
22,019,832.63 0.00 22,019,832.63 9.95% 19,817,849.37
Technology Co.,
Ltd
Fuzhou Cangshan
District Dingjue 20,357,882.20 0.00 20,357,882.20 9.20% 61,073.65
Jewelry Company
Total 151,987,282.32 0.00 151,987,282.32 68.68% 20,207,751.72
6. Contract assets
(1) Information of contract assets
In RMB
Ending balance Opening balance
Item
Book balance Bad debt Book value Book balance Bad debt Book value
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Annual Report 2023
provision provision
(2) The significant amount change in book value during the reporting period and its reason
In RMB
Item The amount of change Reason for change
（3） According to the bad debt provision method classification disclosure
In RMB
Amount in year-end Balance Year-beginning
Categor Book Balance Bad debt provision Book Book Balance Bad debt provision Book
y Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value
on(%) on(%) on(%) on(%)
Inducing
Includin
g
Provision for bad debts is made according to the general model of expected credit losses
□Applicable Not applicable
(4) Bad debt provision accrual, collected or reversal in the period
In RMB
Item Accrual Collected or reversal Write off Reason
Thereinto, the important amount of bad debt provision recovered or reversed in the current period:
In RMB
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
Other note：
（5） Contract assets actually written off in the current period
In RMB
Item Amount written off
Including important Contract asset written-off:
In RMB
Whether the
Write-off payment is
Reason for write-
Name Nature of amount Write-off amount procedures for generated by a
off
fulfillment related party
transaction
Write-off explanation:
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Annual Report 2023
Other note：
7. Receivable financing
（1） Classification of receivables financing
InRMB
Item Ending balance Opening balance
（2） According to the bad debt provision method classification disclosure
In RMB
Amount in year-end Balance Year-beginning
Categor Book Balance Bad debt provision Book Book Balance Bad debt provision Book
y Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value
on(%) on(%) on(%) on(%)
Inducing
Includin
g
Provision for bad debts is made according to the general model of expected credit losses
In RMB
Phase I Phase II Phase III
Expected credit losses Expected credit losses
Bad debt provision Expected credit losses for the entire duration for the entire duration Total
over next 12 months (without credit (with credit impairment
impairment occurred) occurred)
January 1, 2023
balance in the current
period
The basis for the division of each stage and the proportion of bad debt provision
Explanation of the significant changes in the book balance of receivables financing with changes in loss
provisions in the current period:
（3） Bad debt provision accrual, collected or reversal in the period
In RMB
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
Other account
receivable Bad
413,388.55 59,830.83 473,219.38
debt provision-
1st stage
Thereinto, the important amount of bad debt provision recovered or reversed in the current period:
In RMB
The basis and
Name of the Amount recovered or
Reason for reversal Recovery method rationality for
organization reversed
determining the
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Annual Report 2023
provision ratio of
original bad debt
provision
Other note：
（4）Financing of accounts receivable pledged by the Company at the end of the period
In RMB
Item Pledged amount at the end of the period
（5）Financing of accounts receivable that have been endorsed or discounted by the Company at the end
of the period and have not yet matured on the balance sheet date
In RMB
The amount of derecognition at the end The amount not derecognized at the end
Item
of the period of the period
（6） Financing situation of accounts receivable actually written off in this period
In RMB
Item Write-off amount
The write off information of important accounts receivable financing thereinto
In RMB
Whether the
Write-off payment is
Reason for write-
Name Nature of amount Write-off amount procedures for generated by a
off
fulfillment related party
transaction
Write-off explanation:
(7) Changes in accounts receivable financing and fair value changes in the current period
Nil
（8）Other note
Nil
8. Other account receivable
In RMB
Item Ending balance Opening balance
Other account receivable 12,868,327.03 438,477.82
Total 12,868,327.03 438,477.82
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Annual Report 2023
(1) Interest receivable
1) Category
In RMB
Item Ending balance Opening balance
2) Important overdue interest
In RMB
Impairment (Y/N) and
Borrower Ending balance Overdue time Overdue reason
judgment basis
Other note:
Nil
3) Accrual of bad debt provision
□Applicable Not applicable
4） Bad debt provision accrual, collected or reversal in the period
In RMB
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
Including important amount of bad debt provision collected or reversal in the period:
In RMB
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
Other note：
Nil
5)Interest receivable actually written off in the current period
In RMB
Item Write-off amount
Important Interest receivables write-offs thereinto
170
Annual Report 2023
In RMB
Whether the
Write-off payment is
Name Nature of amount Write-off amount Write-off reason procedures for generated by a
fulfillment related party
transaction
Note：
Nil
Other note：
Nil
(2) Dividend receivable
1) Category
In RMB
Item (or the invested entity) Ending balance Opening balance
2) Important dividend receivable with over one year aged
In RMB
Item (or the invested Causes of failure for Impairment (Y/N) and
Ending balance Account age
entity) collection judgment basis
3) Accrual of bad debt provision
□Applicable Not applicable
4） Bad debt provision accrual, collected or reversal in the period
In RMB
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
Including important amount of bad debt provision collected or reversal in the period:
In RMB
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
Other note：
Nil
171
Annual Report 2023
5) Dividends receivable actually written off in the current period
In RMB
Item Write-off amount
Important dividend receivables write-offs thereinto
In RMB
Whether the
Write-off payment is
Name Nature of amount Write-off amount Write-off reason procedures for generated by a
fulfillment related party
transaction
Note：
Nil
Other note：
Nil
(3) Account receivable
1) By nature
In RMB
Nature Ending book balance Opening book balance
Performance compensation 12,098,051.76
Deposit or margin 461,321.30 504,107.88
Personal loan of employees 15,865.25 33,445.00
Payment for equipment 311,400.00 311,400.00
Current account 410,737.50
Other 62,744.32
Total 13,297,375.81 911,697.20
2）By account aging
In RMB
Aging Ending book balance Opening book balance
Within one year(one year included) 12,747,197.43 319,540.20
1-2 years 123,447.38 11,600.00
2-3 years 108,657.00
Over 3 years 426,731.00 471,900.00
3-4 years 15,831.00 60,000.00
4-5 years 50,000.00
Over 5 years 410,900.00 361,900.00
Total 13,297,375.81 911,697.20
172
Annual Report 2023
3) Accrual of bad debt provision
Applicable □Not applicable
Provision for bad debts is made according to the general model of expected credit losses
Phase I Phase II Phase III
Expected credit losses Expected credit losses
Bad debt provision Expected credit losses for the entire duration for the entire duration Total
over next 12 months (without credit (with credit impairment
impairment occurred) occurred)
Balance on January 1,
473,219.38 473,219.38
2023
January 1, 2023
balance in the current
period
--Transfer to the
second stage
-- Transfer to the third
stage
-- Reversal to the
second stage
-- Reversal to the first
stage
Provision in Current
11,057.93 11,057.93
Year
Reversal in Current
55,228.53 55,228.53
Year
Conversion in Current
Year
Write off in Current
Year
Other change
Balance on December
429,048.78 429,048.78
31, 2023
4） Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period
In RMB
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
Provision for
bad debts
according to the 473,219.38 11,057.93 55,228.53 429,048.78
combination of
credit risk
Total 473,219.38 11,057.93 55,228.53 429,048.78
Nil
Important amount of bad debt provision switch-back or collection in the period:
In RMB
Name of the Amount recovered or The basis and
Reason for reversal Recovery method
organization reversed rationality for
173
Annual Report 2023
determining the
provision ratio of
original bad debt
provision
Nil
5） Other account receivables actually write-off during the reporting period
In RMB
Item Amount written off
Including major other account receivables write-off:
In RMB
Amount cause by
Amount written related
Enterprise Other Nature Causes Procedure
off transactions or not
(Y/N)
Other Note on account receivable write-off:
Note：
Nil
6） Top 5 other account receivable collected by arrears party at ending balance
In RMB
Proportion in total
other account Ending balance of
Enterprise Nature Ending balance Account age
receivables at bad bet provision
period-end
Wansheng
Industry Holding Performance
12,098,051.76 Within 1 year 90.98%
（Shenzhen ） compensation
Co., Ltd.
Shenzhen Luwei
Mechatronic Payment for
300,000.00 Over 5 years 2.26% 300,000.00
Equipment Co., equipment
Ltd
Shenzhen Luohu
Government
Property Margin or deposit 161,349.10 Within 1 year 1.21% 484.05
Management
Office
Shenzhen
Hualinglong
Current account 113,790.40 Within 1 year 0.86% 341.37
Jewelry Culture
Tech. Co., Ltd.
Alipay (China)
Network
Within 1
Technology Co., Margin or deposit 110,000.00 0.83% 50,180.00
year/Over 5 years
Ltd. customer
reserve fund
Total 12,783,191.26 96.14% 351,005.42
174
Annual Report 2023
7) Reported in other receivables due to centralized management of funds
In RMB
Other note：
Nil
9. Accounts paid in advance
(1) Accounts paid in advance by ageing
In RMB
Ending balance Opening balance
Account age
Amount Ratio Amount Ratio
Within one year 3,821,181.16 100.00% 4,285,047.15 99.96%
1-2 years 1,888.00 0.04%
Total 3,821,181.16 4,286,935.15
Explanation on un-settlement in time for advance payment with over one year account age and major amounts:
Nil
(2) Top 5 advance payment at ending balance by prepayment object
Name Ending balance Ratio in total advance e payment(%)
Shenzhen Tielbo Co., Ltd. 2,256,987.95 59.07
Zhouliufu Jewelry Co., Ltd. 1,061,060.54 27.77
Shenzhen Yipingda Industry Development Co., Ltd. 366,000.00 9.58
Shenzhen Cuilu Gold Business 86,354.08 2.26
Shenzhen Craftsman Family Jewelry Co., Ltd. 34,714.11 0.91
Total 3,805,116.68 99.59
Other note：
Nil
10. Inventory
Whether companies need to comply with the disclosure requirements of the real estate industry
No
(1) Category
175
Annual Report 2023
In RMB
Ending balance Opening balance
Provision for Provision for
inventory inventory
depreciation or depreciation or
Item contract contract
Book balance Book value Book balance Book value
performance performance
cost cost
impairment impairment
provision provision
Raw materials 42,904,972.44 172,966.47 42,732,005.97 22,911,015.69 22,911,015.69
Finished goods 36,248,964.02 476,356.57 35,772,607.45 25,045,073.77 412,020.87 24,633,052.90
Consigned
processing 3,411,425.72 3,411,425.72 662,798.22 662,798.22
materials
Total 82,565,362.18 649,323.04 81,916,039.14 48,618,887.68 412,020.87 48,206,866.81
The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen
Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
(2) Provision for inventory depreciation or contract performance cost impairment provision
In RMB
Current increased Current decreased
Opening
Item Switch back or Ending balance
balance Accrual Other Other
charge-off
Raw materials 172,966.47 172,966.47
Finished goods 412,020.87 221,243.97 156,908.27 476,356.57
Total 412,020.87 394,210.44 156,908.27 649,323.04
Nil
Provision for inventory price decline that is made on a portfolio basis
In RMB
End of period Beginning of period
Portfolio Name Proportion of Proportion of
Provision for Opening Provision for
Ending balance provision for provision for
price decline balance price decline
price decline price decline
The standard for accruing the provision for inventory price decline by portfolio
Nil
(3) The explanation of the ending balance of the inventory contains the capitalized amount of borrowing
costs
The ending balance of inventories does not include the capitalized amount of borrowing costs
176
Annual Report 2023
(4) Explanation of the amortization amount of contract performance costs for the current period
Nil
11. Assets held for sale
In RMB
Expected
Ending book Impairment Ending book Expected
Item Fair value disposal
balance provision value disposal time
expenses
Other note:
Nil
12. Non-current asset due within one year
In RMB
Item Ending balance Opening balance
（1） Debt investment due within one year
□Applicable Not applicable
（2）Other Debt investment due within one year
□Applicable Not applicable
13. Other current assets
In RMB
Item Ending balance Opening balance
Input tax to be deducted 35,453,106.62
To be certified input tax 208,524.06
Advance payment of enterprise income
193,128.35
tax
Tax amount to be received 10,814,443.03
Total 11,216,095.44 35,453,106.62
Other note：
Nil
14. Debt investment
（1）Debt investment
In RMB
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
177
Annual Report 2023
Changes in impairment provisions for debt investments in the current period
In RMB
Increase in thecurrent Decrease in the current
Item Opening balance Ending balance
period period
（2） Important debt investment
In RMB
Debt Ending balance Opening balance
investment Coupon Coupon
Face value Actual rate Due date Face value Actual rate Due date
rate rate
（3） Accrual of impairment provision
In RMB
Phase I Phase II Phase III
Expected credit losses Expected credit losses
Bad debt provision Expected credit losses for the entire duration for the entire duration Total
over next 12 months (without credit (with credit impairment
impairment occurred) occurred)
January 1, 2023
balance in the current
period
The basis for the division of each stage and the proportion of bad debt provision
Nil
(4) Information of debt investment actually written off in the current period
In RMB
Item Write-off amount
Information of write-off of important debt investments thereinto
Debt Investment Write-off Explanation:
NIL
Change of book balance of loss provision with amount has major changes in the period
□Applicable Not applicable
Other note：
Nil
15. Other debt investment
（1）Other debt investment
In RMB
Accrued Change of Cumulative Cumulative
Item Opening Ending Cost Note
interest fair value changes of loss
178
Annual Report 2023
balance in the balance fair value impairment
period recognized
in other
comprehen
sive
income
Important other debt investment
Changes in provision for impairment of other debt investments in the current period
In RMB
Increase in the current Decrease in the current
Item Opening balance Ending balance
period period
（2） Important debt investment
In RMB
Debt Ending balance Opening balance
investment Coupon Coupon
Face value Actual rate Due date Face value Actual rate Due date
rate rate
（3） Accrual of impairment provision
In RMB
Phase I Phase II Phase III
Expected credit losses Expected credit losses
Bad debt provision Expected credit losses for the entire duration for the entire duration Total
over next 12 months (without credit (with credit impairment
impairment occurred) occurred)
January 1, 2023
balance in the current
period
The basis for the division of each stage and the proportion of bad debt provision
Nil
（4）Other debt investments actually written off during the period
In RMB
Item Write-off amount
Other important debt investment write-offs thereinto
Explanation for write-off of other debt investments:
Nil
Change of book balance of loss provision with amount has major changes in the period
□Applicable Not applicable
Other note：
Nil
179
Annual Report 2023
16. Investment in other equity instrument
In RMB
Reason for
Accumulat Accumulat designated
Gains Loss ed gains ed losses in fair
recognized recognized recognized recognized Dividend value
in other in other in other in other income measureme
Ending Opening comprehen comprehen comprehen comprehen recognized nt with
Item name
balance balance sive sive sive sive in the changes
income for income for income at income at current recognized
the current the current the end of the end of period in other
period period the current the current comprehen
period period sive
income
Derecognition incurred in the current period
In RMB
Accumulated gains Accumulated losses
Item name transferred to retained transferred to retained Reason for derecognition
earnings earnings
Itemized disclosure of investments by non-trading equity instruments for the current period
In RMB
Reason for
Amount of designated in Reason for
other fair value other
Recognized comprehensive measurement comprehensive
Item name dividend Accrued gains Accrued losses income with changes income
income transferred to recognized in transferred to
retained other retained
earnings comprehensive earnings
income
Other note：
Nil
17. Long-term account receivable
(1) Long-term account receivable
In RMB
Ending balance Opening balance
Discount rate
Item Bad debt Bad debt
Book balance Book value Book balance Book value interval
provision provision
180
Annual Report 2023
（2） According to the bad debt provision method classification disclosure
In RMB
Amount in year-end Balance Year-beginning
Categor Book Balance Bad debt provision Book Book Balance Bad debt provision Book
y Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value
on(%) on(%) on(%) on(%)
Inducing
Includin
g
Provision for bad debts is made according to the general model of expected credit losses
In RMB
Phase I Phase II Phase II
Expected credit losses Expected credit losses
Bad debt provision Expected credit losses for the entire duration for the entire duration Total
over next 12 months (without credit (with credit impairment
impairment occurred) occurred)
January 1, 2023
balance in the current
period
The basis for the division of each stage and the proportion of bad debt provision
Nil
(3) Bad debt provision accrual, collected or reversal in the period
In RMB
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
The important amount of bad debt provisions reversed or recovered in the current period thereinto:
In RMB
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
Other note：
Nil
(4)Long-term receivables actually written off in the current period
181
Annual Report 2023
In RMB
Item Write-off amount
Important long-term accounts receivable write-off status thereinto:
In RMB
Whether the
Write-off payment is
Name of
Amount Nature Write-off amount Write-off reason procedures for generated by a
Organization
fulfillment related party
transaction
Explanation of write-off of long-term receivables:
Nil
18. Long-term equity investment
In RMB
Changes in the period (+, -)
Ending
Openin Investm Cash balance
Other Accrual Ending
The g ent dividen of
Additio compre of balance
investe balance Capital gains Other d or impair
nal hensive impair (Book
d entity (Book reducti recogni equity profit Other ment
investm income ment value)
value) on zed change announ provisi
ent adjustm provisi
under ced to on
ent on
equity issued
I. Joint venture
II. Associated enterprise
The recoverable amount is determined on the basis of the net amount of fair value less disposal costs
□Applicable Not applicable
The recoverable amount is determined by the present value of the projected future cash flows
□Applicable Not applicable
The reason for the obvious discrepancy between the foregoing information and the information used in the
impairment test of previous years or the external information
Nil
The reason for the obvious discrepancy between the information used in the Company's impairment test in
previous years and the actual situation in the current year
Nil
Other note：
Nil
182
Annual Report 2023
19. Other non-current financial assets
In RMB
Item Ending balance Opening balance
Other note：
Nil
20. Investment real estate
(1) Investment real estate measured at cost
□Applicable Not applicable
(2) Investment real estate measured at fair value
□Applicable Not applicable
(3) Converted to investment real estate and measured at fair value
In RMB
Accounting Impact on other
Reason for Approval Impact on
Item accounts before Amount comprehensive
conversion procedures profit and loss
conversion income
（4）Investment real estate without property rights certificate
In RMB
Reasons for failing to complete the
Item Book value
property rights certificate
Other note:
Nil
21.Fixed assets
In RMB
Item Ending balance Opening balance
Fixed assets 2,288,610.10 2,304,402.38
Liquidation of fixed assets
Total 2,288,610.10 2,304,402.38
（1） Fixed assets
In RMB
183
Annual Report 2023
Electronic
Houses and Machinery Means of
Item equipment and Total
buildings equipment transportation
others
I. Original book
value:
1.Opening balance 2,959,824.00 1,209,295.35 958,593.21 299,852.09 5,427,564.65
2.Current
101,551.64 75,832.97 177,384.61
increased
(1)Purchase 101,551.64 75,832.97 177,384.61
(2)Construction in
progress transfer-
in
(3)The increase in
business
combination
3.Current
121,010.22 121,010.22
decreased
(1) Disposal or
121,010.22 121,010.22
scrap
4.Ending balance 2,959,824.00 1,310,846.99 958,593.21 254,674.84 5,483,939.04
II. Accumulated
depreciation
1.Opening balance 865,748.52 429,520.61 862,386.24 235,901.15 2,393,556.52
2.Current
133,192.08 22,993.38 24,692.49 180,877.95
increased
(1)Accrual 133,192.08 22,993.38 24,692.49 180,877.95
3.Current
108,711.28 108,711.28
decreased
(1) Disposal or
108,711.28 108,711.28
scrap
4.Ending balance 998,940.60 452,513.99 862,386.24 151,882.36 2,465,723.19
III. Impairment
provision
1.Opening balance 729,605.75 729,605.75
2.Current
increased
(1)Accrual
3.Current
decreased
(1) Disposal or
scrap
4.Ending balance 729,605.75 729,605.75
IV. Book value
184
Annual Report 2023
1.Ending book
1,960,883.40 128,727.25 96,206.97 102,792.48 2,288,610.10
value
2.Opening book
2,094,075.48 50,168.99 96,206.97 63,950.94 2,304,402.38
value
(2) Fixed assets temporary idle
In RMB
Original book Accumulated Impairment
Item Book value Note
value depreciation provision
The lithium battery
equipment stored
Machinery in the
1,044,247.81 314,642.06 729,605.75
equipment GuangshuiJiaxu
factory is in an idle
state
(3) Fixed assets leasing-out by operational lease
In RMB
Item Ending book value
(4) Fixed assets without property rights certificate
In RMB
Reasons for failing to complete the
Item Book value
property rights certificate
The six properties of Lianxin Garden 7-
20F with original value of 2,959,824.00
Yuan. The property purchasing refers to
the indemnificatory housing for
enterprise talent buying from Shenzhen
Housing and Construction Bureau of
Six properties in Lianxin Garden 1,960,883.40 Luohu District. According to the
agreement, the enterprise shall not
carrying any kind of property trading
with any units or individuals except the
government, and the company has no
property certification on the above
mentioned properties.
Other note：
Nil
(5) Information of impairment test of fixed assets
□Applicable Not applicable
185
Annual Report 2023
（6） liquidation of fixed assets
In RMB
Item Ending balance Opening balance
Other note：
Nil
22. Construction in progress
In RMB
Item Ending balance Opening balance
（1）Construction in progress
In RMB
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
（2） Changes in significant construction in progress
In RMB
includi
Accum
Fixed Propor ng: Interes
Other ulated
Openi Curren assets tion of interes t
decrea Ending amoun
project t capital
ng t transfe Progre t of Sourceof
Item Budget sed in balanc invest capital ization
balanc increas r-in in ss interes funds
the e ment ized rate of
e ed the t
Period in amoun the
capital
Period budget t of the year
ization
year
(3) Provision for impairment of construction in progress in the current period
In RMB
Item Opening balance Increase Decrease Ending balance Reason
Other note：
Nil
（4） Information of impairment test of construction in progress
□Applicable Not applicable
(5) Engineering materials
186
Annual Report 2023
In RMB
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Other note:
Nil
23. Productive biological asset
(1) Productive biological assets measured by cost
□Applicable Not applicable
（2） Impairment test of productive biological assets using cost measurement mode
□Applicable Not applicable
（3） Productive biological assets measured by fair value
□ApplicableNot applicable
24. Oil and gas asset
□ApplicableNot applicable
25. Right-of-use assets
（1） Right-of-use assets
In RMB
Item Houses and buildings Total
I. Original book value
1.Opening balance 2,955,726.43 2,955,726.43
2.Current increased 2,564,145.65 2,564,145.65
（1）lease 2,564,145.65 2,564,145.65
3.Current decreased 2,955,726.43 2,955,726.43
（1）Dispose 2,955,726.43 2,955,726.43
4.Ending balance 2,564,145.65 2,564,145.65
II. Accumulated depreciation
1.Opening balance 2,781,789.72 2,781,789.72
2.Current increased 921,812.53 921,812.53
(1)Accrual 921,812.53 921,812.53
3.Current decreased 2,955,726.43 2,955,726.43
(1) Disposal 2,955,726.43 2,955,726.43
187
Annual Report 2023
4.Ending balance 747,875.82 747,875.82
III. Impairment provision
1.Opening balance
2.Current increased
(1)Accrual
3.Current decreased
(1) Disposal
4.Ending balance
IV. Book value
1.Ending book value 1,816,269.83 1,816,269.83
2.Opening book value 173,936.71 173,936.71
（2） Information of impairment test of right-of-use assets
□Applicable Not applicable
Other note：
Nil
26. Intangible assets
(1) Intangible assets
In RMB
Non-patent
Item Land use right Patent Total
technology
I. Original book
value
1.Opening balance
2.Current
increased
(1)Purchase
(2) Internal R & D
(3)The increase in
business
combination
3.Current
decreased
(1) Disposal
4.Ending balance
II. Accumulated
depreciation
1.Opening balance
188
Annual Report 2023
2.Current
increased
(1)Accrual
3.Current
decreased
(1) Disposal
4.Ending balance
III. Impairment
provision
1.Opening balance
2.Current
increased
(1)Accrual
3.Current
decreased
(1) Disposal
4.Ending balance
IV. Book value
1.Ending book
value
2.Opening book
value
Ratio of intangible assets resulted from internal R&D in balance of intangible assets at period-end
(2) Land use right without certificate of title completed
In RMB
Reasons for failing to complete the
Item Book value
property rights certificate
Other note：
Nil
（3）Information of impairment test of intangible assets
□Applicable Not applicable
27. Goodwill
(1) Original book value of goodwill
In RMB
Current increased Current decreased
The invested Opening
Resulted by Ending balance
entity or items balance Dispose
enterprise
189
Annual Report 2023
combination
Total
(2) Goodwill Impairment provision
In RMB
The invested Opening Current increased Current decreased
Ending balance
entity or items balance Accrual Dispose
Total
(3) Information about the asset group or asset group portfolio to which the goodwill belongs
The composition and basis of
Affiliated business segments Whether it is consistent with
Name the asset group or portfolio to
and basis previous years
which it belongs
Changes in the asset group or portfolio of asset groups
Composition before the Objective facts and basis for
Name Composition after the change
change change
Other note
Nil
(4) The specific method of determining the recoverable amount
The recoverable amount is determined on the basis of the net amount by fair value less disposal costs
□Applicable Not applicable
The recoverable amount is determined by the present value of the projected future cash flows
□Applicable Not applicable
The reason for the obvious discrepancy between the foregoing information and the information used in the
impairment test of previous years or the external information
Nil
The reason for the obvious discrepancy between the information used in the Company's impairment test in
previous years and the actual situation in the current year
Nil
(5) Status of completion of performance commitment and corresponding goodwill impairment
When goodwill is formed, there is a performance commitment and the reporting period or the previous period in
the reporting period is within the performance commitment period
□Applicable Not applicable
Other note：
190
Annual Report 2023
Nil
29. Long-term expenses to be apportioned
In RMB
Amortized in the
Item Opening balance Current increased Other decrease Ending balance
Period
Other note：
Nil
29. Deferred income tax asset /Deferred income tax liabilities
(1) Deferred income tax assets without offset
In RMB
Ending balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference asset difference asset
Asset impairment
19,586,893.46 4,896,723.38 475,877.30 118,969.33
provision
Lease Liabilities 1,866,033.17 466,508.30
Total 21,452,926.63 5,363,231.68 475,877.30 118,969.33
(2) Deferred income tax liabilities without offset
In RMB
Ending balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Right to use assets 1,816,269.83 454,067.46
Total 1,816,269.83 454,067.46
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
Ending balance of Trade-off between the Opening balance of
Trade-off between the
deferred income tax deferred income tax deferred income tax
Item deferred income tax
assets or liabilities after assets and liabilities at assets or liabilities after
assets and liabilities
off-set period-begin off-set
Deferred income tax
454,067.46 4,909,164.22 118,969.33
asset
Deferred income tax
454,067.46
liabilities
(4) Details of deferred income tax assets without recognized
In RMB
Item Ending balance Opening balance
Deductable temporary difference 7,255,560.04 24,308,371.39
191
Annual Report 2023
Deductable loss 2,346,162.39 3,430,783.01
Total 9,601,722.43 27,739,154.40
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMB
Year Ending amount Opening amount Note
2024 1,144,129.87 2,234,396.35 Deductable loss in 2019
2025 501,170.19 501,170.19 Deductable loss in 2020
2026 303,928.96 303,928.96 Deductable loss in 2021
2027 391,287.51 391,287.51 Deductable loss in 2022
2028 5,645.86 Deductable loss in 2023
Total 2,346,162.39 3,430,783.01
Other note：
Nil
30. Other non-current assets
In RMB
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Advance
payment for 400,000.00 400,000.00 400,000.00 400,000.00
house
Total 400,000.00 400,000.00 400,000.00 400,000.00
Other note：
Nil
31. Assets with restricted ownership or right to use
In RMB
End of period Beginning of period
Item Restricted Restricted
Book Restricted Book Restricted
Book value circumstan Book value circumstan
balance type balance type
ce ce
Litigation
Monetary 3,776,621.8 3,776,621.8
Other frozen
funds 3 3
funds
For the For the
talent talent
housing housing
purchased purchased
Fixed 2,959,824.0 1,960,883.4 at a low 2,959,824.0 2,094,075.4 at a low
Other Other
assets 0 0 price, 0 8 price,
Shenzhen Shenzhen
China China
cannot cannot
apply for a apply for a
192
Annual Report 2023
certificate, certificate,
and the and the
disposal disposal
can only be can only be
repurchase repurchase
d by the d by the
governmen governmen
t t
2,959,824.0 1,960,883.4 6,736,445.8 5,870,697.3
Total
0 0 3 1
Other note：
Nil
32. Short-term loans
(1) Category
In RMB
Item Ending balance Opening balance
Explanation on short-term loans category:
Nil
(2) Overdue outstanding short-term loans
Total 0.00 Yuan overdue outstanding short-term loans at period-end, including the followed significant amount:
Unit: RMB/
Borrower Ending balance Lending rate Overdue time Overdue rate
Other note:
Nil
33. Trading financial liability
In RMB
Item Ending balance Opening balance
Including:
Including:
Other note:
Nil
34. Derivative financial liability
In RMB
Item Ending balance Opening balance
193
Annual Report 2023
Other note:
Nil
35. Note payable
In RMB
Category Ending balance Opening balance
Notes expired at period-end without paid was 0.00 Yuan.
36. Account payable
(1) Account payable
In RMB
Item Ending balance Opening balance
Within one year(one year included) 5,583,501.96 1,914,595.55
1-2 years (2 years included) 83,999.55 12,683.17
2-3 years (3 years included) 1,158.00 48,424.51
Over 3 years 545,005.51 901,720.00
Total 6,213,665.02 2,877,423.23
(2) Important account payable with account age over one year
In RMB
Reasons for non-reimbursement or carry-
Item Ending balance
forward
Other note:
Nil
37.Other account payable
In RMB
Item Ending balance Opening balance
Other account payable 39,034,314.13 48,621,087.98
Total 39,034,314.13 48,621,087.98
(1) Interest payable
In RMB
Item Ending balance Opening balance
Important overdue interest
194
Annual Report 2023
In RMB
Unit Overdue amount Overdue reason
Other note:
Nil
(2) Dividend Payable
In RMB
Item Ending balance Opening balance
Other explanation:including dividends payable with over one year age and disclosure un-payment reasons
Nil
（3）Other account payable
1) By nature
In RMB
Item Ending balance Opening balance
Custodian and common benefit debts 25,907,507.61 28,624,749.18
Warranty and guarantee money 1,501,940.00 1,781,940.00
Intercourse funds 9,578,367.65 16,500,000.00
Payment 1,327,373.90 801,237.73
Collection and payment 686,076.86 669,657.66
Other 33,048.11 243,503.41
Total 39,034,314.13 48,621,087.98
2) Significant other payable with over one year age
In RMB
Reasons for non-reimbursement or carry-
Item Ending balance
forward
Custodian and common benefit debts 25,622,651.01 Annual settlement offset
Shenzhen Guocheng Energy Investment
6,500,000.00 Intercourse funds
Development Co., Ltd.
Total 32,122,651.01
3) Other payables of the top five ending balances aggregated by counterparty
Other note:
Nil
38. Accounts received in advance
(1) Accounts received in advance
In RMB
Item Ending balance Opening balance
195
Annual Report 2023
(2) Account received in advance with over one year book age
In RMB
Reasons for non-reimbursement or carry-
Item Ending balance
forward
39. Contractual liability
In RMB
Item Ending balance Opening balance
Receipt of goods in advance 633,114.64 791,762.84
Total 633,114.64 791,762.84
Contractual liability in advance with over one year book age
In RMB
Reasons for non-reimbursement or carry-
Item Ending balance
forward
Book value has major changes in the period and causes
In RMB
Item Amount changes Reason for change
40. Wage payable
(1) Wage payable
In RMB
Item Opening balance Current increased Current decreased Ending balance
I. Short-term
769,992.42 7,166,161.12 6,787,001.73 1,149,151.81
compensation
II. Post-employment
benefit-Defined 668,294.08 668,294.08
contribution plan
Total 769,992.42 7,834,455.20 7,455,295.81 1,149,151.81
(2) Short-term compensation
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Wages, bonus,
763,809.95 6,226,449.67 5,846,747.03 1,143,512.59
allowances and subsidy
2. Employee benefits 109,018.08 109,018.08
3. Social insurance 359,946.50 359,946.50
Including: Medical
328,393.51 328,393.51
insurance
Work injury insurance 10,118.24 10,118.24
196
Annual Report 2023
Maternity insurance 21,434.75 21,434.75
4. Housing
408,454.28 408,454.28
accumulation fund
5. Labor union
expenditure and
6,182.47 62,292.59 62,835.84 5,639.22
personnel education
expense
Total 769,992.42 7,166,161.12 6,787,001.73 1,149,151.81
(3) Defined contribution plan
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Basic endowment
652,212.06 652,212.06
insurance
2. Unemployment
16,082.02 16,082.02
insurance
Total 668,294.08 668,294.08
Other note:
Nil
41. Taxes payable
In RMB
Item Ending balance Opening balance
Value added tax 6,575,136.32 33,374,610.42
Enterprise income tax 3,833,579.07 1,113,788.23
Individual income tax 71,356.63 29,149.60
City maintenance & construction tax 446,567.07 2,056,530.87
Stamp tax 52,178.40 101,516.08
Educational surcharge 318,938.97 1,468,913.16
Total 11,297,756.46 38,144,508.36
Other note:
Nil
42. Liability held for sale
In RMB
Item Ending balance Opening balance
Other note:
Nil
197
Annual Report 2023
43. Non-current liabilities due within one year
In RMB
Item Ending balance Opening balance
Lease liabilities due within one year 847,403.05 210,892.38
Total 847,403.05 210,892.38
Other note:
Nil
44. Other current liabilities
In RMB
Item Ending balance Opening balance
VAT received in advance 82,304.90 102,929.16
Total 82,304.90 102,929.16
Changes of short-term bond payable:
In RMB
Accru
Openi Premi Endin Whet
Issuin al
Relea Issued um/di Paid
Face Intere Bond g ng intere g her
Bond se in the scount in the
value st rate period amou balanc st by balanc defaul
date Period amorti Period
nt e face e t
zation
value
Total
Other note:
Nil
45. Long-term loans
(1)Category
In RMB
Item Ending balance Opening balance
Explanation on category of long-term loans:
Nil
Other note: including interest rate section
Nil
46. Bonds payable
(1) Bonds payable
198
Annual Report 2023
In RMB
Item Ending balance Opening balance
(2) Changes of bonds payable (not including the other financial instrument of preferred stock and
perpetual capital securities that classify as financial liability)
In RMB
Accru
Openi Premi Endin Whet
Issuin al
Relea Issued um/di Paid
Face Intere Bond g ng intere g her
Bond se in the scount in the
value st rate period amou balanc st by balanc defaul
date Period amorti Period
nt e face e t
zation
value
Total —— ——
(3) Convertible conditions and time for shares transfer for the convertible bonds
Nil
(4) Other financial instruments classify as financial liability
Outstanding other financial instruments as preferred stock and perpetual bonds at period-end
Nil
Changes of the outstanding financial instruments as preferred stock and perpetual bonds at period-end
In RMB
Outstandin Period-begin Current increased Current decreased Period-end
g financial
instrument Amount Book value Amount Book value Amount Book value Amount Book value
Basis for financial liability classification for other financial instrument
Nil
Other note:
Nil
47. Lease liability
In RMB
Item Ending balance Opening balance
Lease payment amount 1,925,673.72 204,180.88
Including：Within 1 year 891,837.48 204,180.88
1-2 years 918,592.59
2-3 years 115,243.65
Unrecognized financing charges -59,640.55 6,711.50
Including：Within 1 year -44,434.43 6,711.50
1-2 years -18,290.17
199
Annual Report 2023
2-3 years 3,084.05
Reclassified to lease liabilities due within
-847,403.05 -210,892.38
one year
Total 1,018,630.12 0
Other note:
Nil
48. Long-term account payable
In RMB
Item Ending balance Opening balance
(1) Nature of long-term account payable
In RMB
Item Ending balance Opening balance
Other note:
Nil
(2) Special payable
In RMB
Item Opening balance Current increased Current decreased Ending balance Causes
Other note:
Nil
49. Long-term wages payable
(1) Long-term wages payable
In RMB
Item Ending balance Opening balance
(2) Changes of defined benefit plans
Present value of the defined benefit plans:
In RMB
Item Current period incurred Prior period incurred
Scheme assets:
In RMB
Item Current period incurred Prior period incurred
Net liability (assets) of the defined benefit plans
In RMB
Item Current period incurred Prior period incurred
Content of defined benefit plans and relevant risks, impact on future cash flow of the Company as well as times
200
Annual Report 2023
and uncertainty:
Nil
Major actuarial assumption and sensitivity analysis:
Nil
Other note:
Nil
50. Accrual liability
In RMB
Item Ending balance Opening balance Causes
Outstanding litigation 887,342.00
Total 887,342.00
Other explanation, including relevant important assumptions and estimation:
Nil
51. Deferred income
In RMB
Item Opening balance Current increased Current decreased Ending balance Causes
Other note:
Nil
52. Other non-current liabilities
In RMB
Item Ending balance Opening balance
Other note:
Nil
53. Share capital
In RMB
Changes in the period (+, -)
Opening Shares Ending
balance New shares transferred balance
Bonus share Other Subtotal
issued from capital
reserve
Total shares 689,184,933. 689,184,933.
201
Annual Report 2023
00 00
Other note:
Nil
54. Other equity instrument
(1) Outstanding other financial instruments as preferred stock and perpetual bonds at period-end
Nil
(2) Changes of the outstanding other financial instruments as preferred stock and perpetual bonds at
period-end
In RMB
Outstandin Period-begin Current increased Current decreased Period-end
g financial
instrument Amount Book value Amount Book value Amount Book value Amount Book value
Changes of other equity instrument, change reasons and relevant accounting treatment basis:
Nil
Other note:
Nil
55. Capital public reserve
In RMB
Item Opening balance Current increased Current decreased Ending balance
Capital premium(Share
150,990,173.10 12,098,051.76 11,368,072.35 151,720,152.51
capital premium)
Other capital public
627,834,297.85 627,834,297.85
reserve
Including: Debt
482,580,588.23 482,580,588.23
restructuring income
Other 145,253,709.62 145,253,709.62
Total 778,824,470.95 12,098,051.76 11,368,072.35 779,554,450.36
Other note:including changes and reasons for changes
1. The increase in share capital premium in the current period is due to the failure of the controlling
shareholder Wansheng Industrial Holdings (Shenzhen) Co., Ltd. to complete its performance commitment in
2023, and Shenzhen Chinashall receive its performance compensation of RMB 12,098,051.76 in 2023 and
included in the capital reserve-share premium.
202
Annual Report 2023
2. The decrease in share capital premium in the current period is due to the acquisition of equity of all
minority shareholders of Shenzhen Xinsen Jewelry & Gold Supply Chain Co., Ltd., a subsidiary of Shenzhen
China, with the acquisition consideration of RMB 25,550,000.00, deducting the value of minority equity of
RMB 14,181,927.65, and the difference is included in the capital reserve-share capital premium of RMB
11,368,072.35.
56. Inventory shares
In RMB
Item Opening balance Current increased Current decreased Ending balance
Other note:including changes and reasons for changes
Nil
57. Other comprehensive income
In RMB
Current period incurred
Less: Less:
written in written in
other other
comprehen comprehen
sive sive Belong to Belong to
Opening Account income in income in Less: Ending
Item parent minority
balance before previous previous balance
Income tax
income tax period and period and company after shareholders
in the period carried carried expense
tax after tax
forward to forward to
gains and retained
losses in earnings in
current current
period period
Other note: including the active part of the hedging gains/losses of cash flow transfer to initial recognition
adjustment for the arbitraged items
Nil
58. Reasonable reserve
In RMB
Item Opening balance Current increased Current decreased Ending balance
Other note:including changes and reasons for changes
Nil
59. Surplus public reserve
In RMB
Item Opening balance Current increased Current decreased Ending balance
203
Annual Report 2023
Statutory surplus
32,673,227.01 32,673,227.01
reserves
Total 32,673,227.01 32,673,227.01
Explanation: including changes and reasons for changes
Nil
60. Retained profit
In RMB
Item Current period Prior period
Retained profit at period-end before
-1,210,553,312.45 -1,202,936,933.70
adjustment
Retained profit at period-begin after
-1,210,553,312.45 -1,202,936,933.70
adjustment
Add: net profit attributable to
shareholders of parent company for this 17,901,948.24 -7,616,378.75
year
Retained profit at period-end -1,192,651,364.21 -1,210,553,312.45
Adjustment for retained profit at period-begin:
1) Retroactive adjustment due to the Accounting Standards for Business Enterprise and relevant new regulations,
retained profit at period-begin has 0.00 Yuan affected;
2) Due to the accounting policy changes, retained profit at period-begin has 0.00 Yuan affected;
3) Due to the major accounting errors correction, retained profit at period-begin has 0.00 Yuan affected;
4) Consolidation range changed due to the same control, retained profit at period-begin has 0.00 Yuan affected;
5) Total other adjustment impacts 0.00 Yuan retained profit at period-begin
61. Operation revenue and operation cost
In RMB
Current period incurred Prior period incurred
Item
Revenue Cost Revenue Cost
Main business 566,561,755.03 531,428,889.46 441,648,114.02 416,413,503.39
Other business 1,920,152.89 177,271.91 3,114,124.23 471,249.78
Total 568,481,907.92 531,606,161.37 444,762,238.25 416,884,753.17
Whether the audited net profit before and after deducting non-recurring gains and losses is negative
□Yes No
Breakdown of operating income and operating costs:
In RMB
Contract 1# Division 2# Division Total
type Revenue Cost Revenue Cost Revenue Cost Revenue Cost
Business
type
Including
：
Jewelry 564,839,11 530,252,11 564,839,11 530,252,11
and gold 4.22 0.65 4.22 0.65
Bicycles, 3,642,793.7 1,354,050.7 3,642,793.7 1,354,050.7
204
Annual Report 2023
electric 0 0 0 0
vehicles,
lithium
battery
materials
and others
Classificati
on by
business
area
Including:
Market or
customer
type
Including:
Contract
type
Including:
Classificati
on by time
of goods
transfer
Including:
Classificati
on by
contract
duration
Including:
Classificati
on by sales
channel
Including:
568,481,90 531,606,16 568,481,90 531,606,16
Total
7.92 1.37 7.92 1.37
Information related to performance obligations:
The nature of The expected The types of
The time to Whether it is
the goods that refunds to quality
fulfill the Important the main
Item the company customers assurance
performance payment terms responsible
promises to borne by the provided by the
obligation person
transfer company company and
205
Annual Report 2023
related
obligations
Other note:
Nil
Information relating to the transaction price assigned to the remaining performance obligation:
The amount of revenue corresponding to performance obligation that have been signed but have not been
fulfilled or have not been fulfilled at the end of the period was 0.00 Yuan, including 0.00 Yuan is expected to be
recognized as revenue in subsequent years, 0.00 Yuan is expected to be recognized as revenue in subsequent
years, 0.00 Yuan is expected to be recognized as revenue in subsequent years. Other explanation:
Nil
Significant contract changes or significant transaction price adjustments
In RMB
Item Accounting treatment method The impacted amount on revenue
Other note:
Nil
62. Tax and surcharge
In RMB
Item Current period incurred Prior period incurred
City maintenance & construction tax 460,159.66 2,060,815.10
Educational surcharge 328,676.41 1,472,010.75
Vehicle and vessel usage tax 719.68
Stamp tax 244,522.84 225,148.85
Total 1,034,078.59 3,757,974.70
Other note:
Nil
63. Administrative expenses
In RMB
Item Current period incurred Prior period incurred
Employee compensation 2,374,309.33 3,304,419.89
Intermediary service fee 1,159,760.18 996,070.70
Daily administrative expenses 2,266,857.83 1,982,406.14
Depreciation and amortization 961,386.66 1,242,279.43
Total 6,762,314.00 7,525,176.16
Other note:
Nil
206
Annual Report 2023
64. Sales expenses
In RMB
Item Current period incurred Prior period incurred
Employee compensation 1,869,966.44 1,354,906.96
Mall service fee 1,862,848.65 2,425,661.82
Marketing promotion fees 773,471.61 631,247.89
Business entertainment 586,271.53 360.00
Business travel expenses 89,204.57 344,559.08
Lease fee 16,130.04
Design fee 7,219.80 471,871.00
Depreciation and amortization 448,725.49 227,870.06
Online marketing fee 163,247.72
Other 187,339.09 215,650.83
Total 5,988,294.90 5,688,257.68
Other note:
Nil
65. R&D expenses
In RMB
Item Current period incurred Prior period incurred
Employee compensation and benefits 1,252,650.29 901,277.20
Depreciation and amortization 17,862.13 23,290.50
Total 1,270,512.42 924,567.70
Other note:
Nil
66. Finance expenses
In RMB
Item Current period incurred Prior period incurred
Interest expenses ，Including：
Financing expenses recognized by lease 55,573.42 33,239.03
liabilities
Interest income -93,865.93 -272,353.25
Commission charge etc. 23,100.30 42,766.84
Total -15,192.21 -196,347.38
Other note:
Nil
67. Other income
In RMB
Sources Current period incurred Prior period incurred
Government subsidy 120,500.00 142,981.96
Personal tax withholding fee 2,092.35 3,369.17
207
Annual Report 2023
68. Net exposure hedge gains
In RMB
Item Current period incurred Prior period incurred
Other note:
Nil
69. Income from change of fair value
In RMB
Sources Current period incurred Prior period incurred
Other note:
Nil
70. Investment income
In RMB
Item Current period incurred Prior period incurred
Other note:
Nil
71. Loss of credit impairment
In RMB
Item Current period incurred Prior period incurred
Bad debt loss of other account receivable -2,780,028.91 -15,456,941.61
Bad debt losses of other accounts
44,170.60 -59,830.83
receivable
Total -2,735,858.31 -15,516,772.44
Other note:
Nil
72. Impairment loss on assets
In RMB
Item Current period incurred Prior period incurred
I. Loss of inventory falling price and loss
-316,923.59 -110,756.09
of contract performance cost impairment
V. Impairment loss of fixed asset -729,605.75
Total -316,923.59 -840,361.84
Other note:
Nil
208
Annual Report 2023
73. Income from assets disposal
In RMB
Sources Current period incurred Prior period incurred
Dispose income of non current assets -16,957.53
74. Non-operating income
In RMB
Amount reckoned in current
Item Current period incurred Prior period incurred
non-recurring gains/losses
Income from escrow assets 4,071,358.65 3,837,081.41 4,071,358.65
Esccrow assets renaming fee
541,058.80 239,571.50 541,058.80
and other
Other 1,313,302.68 4,797.84 1,313,302.68
Total 5,925,720.13 4,081,450.75 5,925,720.13
Other note:
The profit or loss of escrow assets refers to the fact that the property rights of some assets used to pay off
debts at the termination of the bankruptcy reorganization of Shenzhen China in the previous period were not
clear and could not be disposed of, and the Shenzhen Intermediate People's Court approved Shenzhen China to
manage its own property and business affairs under the supervision of the administrator, and the administrator
and Shenzhen China settled the income and expenditure on an annual basis. The tax on the daily expenses of the
entrusted assets is included in the non-operating expenses-entrusted asset expenses, and the difference between
the rental of the assets and the settlement with the manager is included in the non-operating income - income
from entrusted assets.
75. Non-operating expense
In RMB
Amount reckoned in current
Item Current period incurred Prior period incurred
non-recurring gains/losses
Total scrap loss of non-
12,298.94 12,298.94
current assets
Including：Loss of fixed
12,298.94 12,298.94
assets
Penalty cost 2,292,111.17 2.31 2,292,111.17
Compensation for litigation -137,713.91 878,000.00 -137,713.91
Escrow assets fess 4,071,358.65 3,837,081.41 4,071,358.65
Other 1.56 28,940.41 1.56
Total 6,238,056.41 4,744,024.13 6,238,056.41
Other note
The penalty and confiscation expenses mainly refer to the late payment of VAT and additional tax of
RMB 2,291,712.88 arising from the delay in payment of VAT in the current period.
209
Annual Report 2023
76. Income tax expense
(1) Income tax expense
In RMB
Item Current period incurred Prior period incurred
Current income tax expense 5,377,855.04 1,324,808.04
Deferred income tax expense -4,790,194.89 -54,922.66
Total 587,660.15 1,269,885.38
(2) Adjustment on accounting profit and income tax expenses
In RMB
Item Current period incurred
Total profit 18,593,213.02
Income tax measured by statutory/applicable tax rate 4,648,303.26
The impact of applying different tax rates to subsidiaries -70,504.54
Impact of adjusting the income tax of prior period -81,730.80
Impact on cost, expenses and losses that unable to deducted 681,072.96
The impact of deductible losses on the use of deferred income
-4,495,471.97
tax assets not recognized in prior period
The impact of deductible temporary differences or deductible
losses on deferred income tax assets not recognized in the 35,833.45
Period
Additional deductible expenses under the tax code -129,842.21
Income tax expense 587,660.15
Other note:
Nil
77. Other comprehensive income
Refer to the Note
78.Items of Cash flow statement
（1）Cash related to operating activities
Other cash received from business operation
In RMB
Item Current period incurred Prior period incurred
Interest, rent, utilities, etc. 2,274,468.58 2,518,300.99
Deposits and guarantees received 98,626.00 267,840.00
Government subsidy and individual tax
122,717.90 146,354.32
handling fee refund
Employee correspondence 116,432.76
Litigation freezes funds 3,776,621.83
Other 656,321.82 6,871,962.41
Total 7,045,188.89 9,804,457.72
Explanation on other cash received in relation to operation activities:
210
Annual Report 2023
Nil
Other cash paid in relation to operation activities
In RMB
Item Current period incurred Prior period incurred
Expenses such as rent and property
1,256,526.69 3,837,081.41
management maintenance fees
Deposits and security deposits paid 317,948.30 8,001,780.56
Sales, management and R&D expenses 6,122,472.33 5,399,850.61
Litigation compensation, liquidated
1,202,286.73
damages and late fees, etc.
Handling expenses 22,970.30 42,766.84
Return project cooperation funds 10,000,000.00
Other 318,774.81 4,917,479.65
Total 19,240,979.16 22,198,959.07
Explanation on other cash paid in relation to operation activities:
Nil
（2）Cash related to Investment activities
Cash receivable related to other Investment activities
In RMB
Item Current period incurred Prior period incurred
Receivable for important cash related to investment activities
In RMB
Item Current period incurred Prior period incurred
Explanation on other cash received from investment activities:
Nil
Cash paid related with investment activities
In RMB
Item Current period incurred Prior period incurred
Payable for important cash related to investment activities
In RMB
Item Current period incurred Prior period incurred
Explanation on cash paid related with investment activities
Nil
(3)Cash related to Financing activities
Other cash received in relation to financing activities
In RMB
Item Current period incurred Prior period incurred
211
Annual Report 2023
Received the private placement deposit 9,000,000.00
Total 9,000,000.00
Explanation on other cash received in relation to financing activities:
Nil
Other cash paid related with financing activities
In RMB
Item Current period incurred Prior period incurred
Received the private placement deposit 18,000,000.00
Issue direct fees 729,772.03
Lease payment amount 1,005,205.60 1,477,866.59
Acquisition of minority shareholders of
25,550,000.00
its subsidiary Xinsen
Total 26,555,205.60 20,207,638.62
Explanation on other cash paid related with financing activities:
Nil
Changes in various liabilities arising from fund-raising activities
□Applicable Not applicable
(4) Statement of cash flows on a net basis
Relevant factual The basis for the use of net
Item Financial impact
circumstances presentation
(5) Major activities and financial impacts that do not involve cash receipts and expenditures in the
current period, but affect the financial position of the enterprise or may affect the cash flow of the
enterprise in the future
Nil
79. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
Supplementary information Current amount Amount of the previous period
1．Net profit adjusted to cash flow of
operation activities:
Net profit 18,005,552.87 -7,982,343.22
Add: Assets impairment provision 3,052,781.90 16,357,134.28
Depreciation of fixed assets,
consumption of oil assets and 180,877.95 384,570.94
depreciation of productive biology assets
Depreciation of right-of-use assets 921,812.53 1,235,536.34
Amortization of intangible assets
Amortization of long-term deferred
212
Annual Report 2023
expenses
Loss from disposal of fixed assets,
intangible assets and other long-term 16,957.53
assets (gain is listed with “-”)
Losses on scrapping of fixed assets (gain
12,298.94
is listed with “-”)
Gain/loss of fair value changes (gain is
listed with “-”)
Financial expenses (gain is listed with “-
55,573.42 33,239.03
”)
Investment loss (gain is listed with “-”)
Decrease of deferred income tax asset
-4,790,194.89 -54,922.66
(increase is listed with “-”)
Increase of deferred income tax liability
(decrease is listed with “-”)
Decrease of inventory (increase is listed
-34,026,095.92 -40,069,049.13
with “-”)
Decrease of operating receivable
80,289,900.17 -257,151,228.59
accounts (increase is listed with “-”)
Increase of operating payable accounts
-33,729,676.35 29,587,661.28
(decrease is listed with “-”)
Other -3,776,621.83
Net cash flow arising from operating
29,972,830.62 -261,419,066.03
activities
2. Material investment and financing not
involved in cash flow
Conversion of debt into capital
Switching Company bonds due within
one year
Financing lease of fixed assets
3. Net change of cash and cash
equivalents:
Balance of cash at period end 54,148,674.40 50,922,869.35
Less: Balance of cash equivalent at
50,922,869.35 33,246,957.92
year-begin
Add: Balance at year-end of cash
equivalents
Less: Balance at year-begin of cash
equivalents
Net increased amount of cash and cash
3,225,805.05 17,675,911.43
equivalent
(2) Net cash paid for obtaining subsidiary in the Period
In RMB
Amount
Including:
Including:
Including:
Other note:
Nil
（3）Net cash received by disposing subsidiary in the Period
In RMB
Amount
Including:
Including:
213
Annual Report 2023
Including:
Other note:
Nil
(4) Constitution of cash and cash equivalent
In RMB
Item Ending balance Opening balance
I. Cash 54,148,674.40 50,922,869.35
Including: Cash on hand 13,955.25 33,531.25
Bank deposit available for
54,134,719.15 50,889,338.10
payment at any time
III. Balance of cash and cash equivalents
54,148,674.40 50,922,869.35
at the period -end
(5) Situations where the scope of use is limited but still classified as cash and cash equivalents
In RMB
Reason for still being
Amount of the previous
Item Amount of the current period classified as cash and cash
period
equivalents
( 6) Monetary funds that do not belong to cash and cash equivalents
In RMB
Amount of the previous Reason for not belonging to
Item Amount of the current period
period cash and cash equivalents
Other monetary funds 3,776,621.83 Litigation frozen funds
Total 3,776,621.83
Other note:
Nil
(7) Description of other major activities
Nil
80. Notes of changes of owners’ equity
Explain the name and adjusted amount in “Other” at end of last period:
Nil
81. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Ending foreign currency Ending RMB balance
Item Convert rate
balance converted
214
Annual Report 2023
Monetary fund
Including: USD
EURO
HKD
Account receivable
Including: USD
EURO
HKD
Long-term loans
Including: USD
EURO
HKD
Other note:
Nil
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,
disclosed main operation place, book-keeping currency and basis for selection; if the book-keeping
currency changed, explain reasons
□Applicable Not applicable
82. Leasing
(1) The Company acts as the lessee
Applicable □Not applicable
Variable lease payments that are not included in the measurement of lease liabilities
□Applicable Not applicable
Simplified processing of lease costs for short-term leases or lease for low-value assets
Applicable □Not applicable
Lease costs for short-term leases or low-value assets with simplified processing: RMB 102,287.64.
Cases involving sale-leaseback transactions
Nil
(2) The Company acts as the lessor
Operating lease as a lessor
Applicable □Not applicable
In RMB
Thereinto: income related to variable
Item Rental income lease payments that are not included in
lease receipts
lease of houses 48,307.63
Total 48,307.63
Financial lease as a lessor
□Applicable Not applicable
Annual undiscounted lease receipts for the next five years
□Applicable Not applicable
215
Annual Report 2023
Adjustment table for undiscounted lease receipts and net lease investments
Nil
(3) Recognition of financial lease sales gains and losses as a producer or distributor
□Applicable Not applicable
83.Other
Nil
VIII. R&D expenditure
In RMB
Item Amount incurred in the current period Amount incurred in the previous period
Employee remuneration and benefits 1,252,650.29 901,277.20
Depreciation and amortization 17,862.13 23,290.50
Total 1,270,512.42 924,567.70
Thereinto: expensed R&D expenditure 1,270,512.42 924,567.70
1. R&D projects that meet the conditions for capitalization
In RMB
Amount increased in the current period Amount decreased in the current period
Internal Transferred
Opening Recognized Ending
Project developme to profit or
balance as balance
nt Others loss for the
intangible
expenditure current
assets
s period
Total
Significant capitalized R&D projects
Expected way of The point at which The specific basis
Estimated
Project R&D progress generating capitalization for starting
completion time
economic benefits begins capitalization
Provision for impairment of development expenditure
In RMB
Increase in the Decrease in the Impairment test
Item Opening balance Ending balance
current period current period situation
2.Important outsourcing projects under research
Expected way of generating economic Criteria and specific basis for
Name of project
benefits determining capitalization or expensing
Other note:
Nil
216
Annual Report 2023
IX. Changes of consolidation scope
1. Enterprise combined under different control
(1) Enterprise combined under different control in the Period
In RMB
Income of Net profit
Standard to
Acquired acquiree of acquiree
Time point Cost of Ratio of determine
way Equity Purchasing from from
Acquiree for equity equity equity the
obtained date purchasing purchasing
obtained obtained obtained purchasing
way date to date to
date
period-end period-end
Other note:
Nil
(2) Combination cost and goodwill
In RMB
Consolidation cost
--Cash
--Fair value of non-cash assets
--Fair value of debts issued or assumed
--Fair value of equity securities issued
-- Fair value of contingent consideration
--Fair value of the equity prior to the purchasing date
--Other
Total combination cost
Less: shares of fair value of identifiable net assets acquired
The amount by which the goodwill/cost of consolidation is less
than the share of fair value of identifiable net assets acquired
Determination method for fair value of the combination cost：
Nil
Contingent consideration and changes:
Nil
Main reasons for large goodwill resulted:
Nil
Other note:
Nil
(3) Identifiable assets and liability on purchasing date under the acquiree
In RMB
Fair value on purchasing date Book value on purchasing date
217
Annual Report 2023
Assets:
Monetary fund
Account receivable
Inventory
Fixed assets
Intangible assets
Liability:
Loan
Account payable
Deferred income tax liabilities
Net assets
Less: Minority interests
Net assets acquired
Determination method for fair value of the identifiable assets and liabilities:
Nil
Contingent liability of the acquiree bear during combination:
Nil
Other note:
Nil
(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing date
Whether it is a business combination realized by two or more transactions of exchange and a transaction of
obtained control rights in the Period or not
□YesNo
(5) On purchasing date or period-end of the combination, combination consideration or fair value of
identifiable assets and liability for the acquiree are un-able to confirm rationally
Nil
(6) Other Note:
Nil
2. Enterprise combine under the same control
(1) Enterprise combined under the same control in the Period
In RMB
Basis of Standard to Income of Net profit Income of Net profit
Equity ratio
Combined combined Combinatio determine the of the the of the
obtained in under the n date the combined combined combined combined
party
combinatio same combinatio party from party from party party
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Annual Report 2023
n control n date period- period- during the during the
begin of begin of comparison comparison
combinatio combinatio period period
n to the n to the
combinatio combinatio
n date n date
Other note:
Nil
(2) Combination cost
In RMB
Consolidation cost
--Cash
-- Book value of non-cash assets
- Book value of debts issued or assumed
-- The face value of the equity securities issued
--Contingent consideration
Explanation on contingent consideration and its changes:
Nil
Other note:
Nil
(3) Book value of the assets and liability of the combined party on combination date
In RMB
Consolidation date End of last period
Assets:
Monetary fund
Account receivable
Inventory
Fixed assets
Intangible assets
Liability:
Loan
Account payable
Net assets
Less: Minority interests
Net assets acquired
Contingent liability of the combined party bear during combination:
Nil
219
Annual Report 2023
Other note:
Nil
3. Counter purchase
Basic transaction information, basis of counter purchase, whether making up business due to the assets and
liability reserved by listed company and basis, determination of combination cost, amount and calculation on
adjusted equity by equity transaction:
Nil
4. Subsidiary disposal
Whether lost controlling rights while dispose subsidiary on one time or not
□Yes No
Whether lost controlling rights in the Period while dispose subsidiary on two or more steps or not
□YesNo
5. Other reasons for consolidation range changed
Reasons for changed on consolidation range (such as new subsidiary established, subsidiary liquidated etc.)And
relevant information:
In the current period, four new wholly-owned subsidiaries are established, including Shenzhen Xinsen Precision
Manufacturing Co., Ltd.-with a registered capital of 5 million yuan, Fujian Huaxinbao Jewelry Co., Ltd.-with a
registered capital of 10 million yuan, Shenzhen Huabao Selection Jewelry Co., Ltd.-with a registered capital of
5 million yuan, and Hainan Shenhua Industrial Co., Ltd.-with a registered capital of 5 million yuan.
6.Other
Nil
X. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Inn RMB
Main Share-holding ratio
Registered Registered Business Acquired
Subsidiary operation
capital place nature Directly Indirectly way
place
Shenzhen
Xinsen Sales of
200,000,000. Jewelry,
Jewelry Gold Shenzhen Shenzhen 100.00% Investment
00 diamonds
Supply Chain and gold
Co., Ltd
Shenzhen
Jewelry,
Xinsen
diamonds,
Precision 5,000,000.00 Shenzhen Shenzhen 100.00% Investment
gold
Manufacturin
processing
g Co., Ltd.
220
Annual Report 2023
Shenzhen Distribution
Emmelle of bicycles
5,000,000.00 Shenzhen Shenzhen 70.00% Investment
Industrial and spare
Co., Ltd. parts
Shenzhen
Emmelle Software and
information
Cloud 2,000,000.00 Shenzhen Shenzhen 49.00% Investment
technology
Technology service sales
Co., Ltd.
Fujian Sales of
Huaxinbao 10,000,000.0 Jewelry,
Fujian Putian Fujian Putian 100.00% Investment
Jewelry Co., 0 diamonds
Ltd. and gold
Shenzhen
Huabao Sales of
Jewelry,
Zhenxuan 5,000,000.00 Shenzhen Shenzhen 100.00% Investment
diamonds
Jewelry Co., and gold
Ltd.
Hainan Import and
Industry Co., 5,000,000.00 Haikou Haikou export, trade, 100.00% Investment
Ltd. industry
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
Nil
Basis for controlling the invested entity with half or below voting rights held and without controlling invested
entity but with over half and over voting rights:
Subsidiary of the Company-Shenzhen Emmelle Industry Co., Ltd. (with 70% equity held by the Company) holds
70% equity of Shenzhen Emmelle Cloud Technology Co., Ltd
Controlling basis for the structuring entity included in consolidated range:
Nil
Basis on determining to be an agent or consignor:
Nil
Other note:
Nil
(2) Important non-wholly-owned subsidiary
In RMB
Gains/losses Dividend announced to
Share-holding ratio of Ending equity of
Subsidiary attributable to minority distribute for minority
minority minority
in the Period in the Period
Shenzhen Emmelle
30.00% 103,604.63 639,908.03
Industrial Co., Ltd.
Explanation on share-holding ratio of minority different from ratio of voting right:
Nil
Other note:
Nil
(3) Main finance of the important non-wholly-owned subsidiary
221
Annual Report 2023
In RMB
Ending balance Opening balance
Subsid Curren Non- Curren Non-
Non- Total Non- Total
iary Curren Total t current Curren Total t current
current liabiliti current liabiliti
t assets assets liabiliti liabiliti t assets assets liabiliti liabiliti
assets es assets es
es es es es
Shenz
hen
Emmel 11,501 11,630 11,522 11,532
9,689, 73,727 9,763, 9,316, 9,316, 128,54 9,342.
le ,525.6 ,069.1 ,950.6 ,292.6
931.74 .87 659.61 963.25 963.25 3.56 00
Industr 1 7 6 6
ial Co.,
Ltd.
In RMB
Current period incurred Prior period incurred
Total Cash flow Total Cash flow
Subsidiary Operation comprehen from Operation comprehen from
Net profit Net profit
revenue sive operation revenue sive operation
income activity income activity
Shenzhen
- - - -
Emmelle 3,227,611.7 11,615,189.
348,919.85 348,919.85 3,570,335.3 4,147,500.3 4,147,500.3 7,319,777.2
Industrial 9 72
9 9 9 0
Co., Ltd.
Other note:
Nil
(4) Major restriction on using corporate assets and liquidate corporate debts
Nil
(5) Financial or other supporting provided to structuring entity that included in consolidated financial
statement
Nil
Other note:
Nil
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
(1) Owners equity shares changed in subsidiary
In the current period, Shenzhen China acquired the 35% equity-that is the entire equity of the minority
shareholders of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd.-a subsidiary, and after the completion of
the acquisition, Xinsen became a wholly-owned subsidiary of Shenzhen China.
(2) Impact on minority’s interest and owners’ equity attributable to parent company
In RMB
Purchase cost/disposal consideration 25,550,000.00
222
Annual Report 2023
--Cash 25,550,000.00
--Fair value of non-cash assets
Purchase cost/total disposal consideration 25,550,000.00
Less: Subsidiary's share of net assets calculated based on the
14,181,927.65
proportion of acquired/disposed equity
Difference 11,368,072.35
Including: Adjust capital public reserve 11,368,072.35
Adjust surplus public reserve
Adjusted retained profit
Other note:
Nil
3. Equity in joint venture and associated enterprise
(1) Important joint venture or associated enterprise
Joint venture or Share-holding ratio
Main operation Registered Accounting
associated Business nature
place place Directly Indirectly treatment
enterprise
Share-holding ratio or shares enjoyed different from voting right ratio:
Nil
Basis of the voting rights with 20% below but with major influence, or without major influence but with over 20%
(20% included) voting rights hold:
Nil
(2) Main financial information of the important joint venture
In RMB
Ending balance/Current period incurred Opening balance/Prior period incurred
Current assets
Including: cash and cash equivalent
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Minority interests
Shareholders' equity attributable to the
parent company
Share of net assets calculated by
shareholding ratio
Adjustment items
--Goodwill
--Unrealized profit of internal trading
--Other
Book value of equity investment in joint
venture
Fair value of the equity investment of
223
Annual Report 2023
joint ventures with public offers
concerned
Operation revenue
Financial expenses
Income tax expense
Net profit
Net profit of discontinuing operation
Other comprehensive income
Total comprehensive income
Dividends received from joint venture in
the year
Other note:
Nil
(3) Main financial information of the important associated enterprise
In RMB
Ending balance/Current period incurred Opening balance/Prior period incurred
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Minority interests
Equity attributable to shareholder of
parent company
Share of net assets measured by
shareholding
Adjustment
--Goodwill
--Unrealized profit of internal trading
--Other
Book value of equity investment in
associated enterprise
Fair value of the equity investment of
associated enterprise with public offers
concerned
Operation revenue
Net profit
Net profit of discontinuing operation
Other comprehensive income
Total comprehensive income
224
Annual Report 2023
Dividends received from associated
enterprise in the year
Other note:
Nil
(4) Financial summary for un-important joint venture or associated enterprise
In RMB
Ending balance/Current period incurred Opening balance/Prior period incurred
Joint venture：
Total numbers measured by share-
holding ratio
Associated enterprise：
Total numbers measured by share-
holding ratio
Other note:
Nil
(5) Assets transfer ability has major restriction from joint venture or associated enterprise
Nil
(6) Excess losses from joint venture or associated enterprise
In RMB
Un-confirmed losses not
Joint venture or associated Cumulative un-confirmed recognized in the Period (or Cumulative un-confirmed
enterprise losses net profit enjoyed in the losses at period-end
Period)
Other note:
Nil
(7) Un-confirmed commitment with investment concerned with joint venture
Nil
(8) Contingent liability with investment concerned with joint venture or associated enterprise
Nil
4.Co-runs operation
Main operation Share-holding ratio/share enjoyed
Name Registered place Business nature
place Directly Indirectly
Share-holding ratio or shares enjoyed different from voting right ratio:
225
Annual Report 2023
Nil
If the co-runs entity is the separate entity, basis of the co-runs classification
Nil
Other note:
Nil
5. Equity in structuring entity that excluding in the consolidated financial statement
Relevant explanation
Nil
6.Other
Nil
XI. Government subsidy
1. Government subsidies recognized according to the receivable amount at the end of the reporting period
□Applicable Not applicable
The reason for not receiving the estimated amount of government subsidies at the expected point in time
□Applicable Not applicable
2. Liabilities involving government subsidies
□Applicable Not applicable
3. Government subsidies included in the current profit and loss
Applicable □Not applicable
In RMB
Accounting items Amount incurred in the current period Amount incurred in the previous period
Funding for the cultivation of high-tech
120,000.00 100,000.00
enterprises
Job stabilization subsidy 32,731.96
One-time training subsidy for job stay 8,750.00
Subsidies for job expansion 1,500.00
Government public employment subsidy 500.00
Total 120,500.00 142,981.96
Other note:
Nil
XII. Risks Related to Financial Instruments
1.Risks arising from financial instruments
226
Annual Report 2023
The Company's main financial instruments include monetary funds, accounts receivable, receivables
financing, other receivables, other current assets, accounts payable, other payables, short-term borrowings, other
current liabilities, etc. Details of the financial instruments are provided in the relevant notes to the financial
report.
The Company's risk management objective is to achieve an appropriate balance between risks and returns,
to minimize the negative impact of risks on the Company's operating results, and to maximize the interests of
shareholders and other equity investors. Based on this risk management objective, the basic strategy of the
Company's risk management is to identify and analyze the various risks faced by the Company, establish an
appropriate risk tolerance baseline and conduct risk management, and monitor various risks in a timely and
reliable manner to control the risks within a limited range.
The main risks associated with the Company's financial instruments are credit risk, liquidity risk and
market risk. The Company's management is fully responsible for the determination of risk management
objective and policy, and bears ultimate responsibility for risk management objective and policy. Management
reviews the effectiveness of the implemented procedures and the reasonableness of risk management objective
and policy through work reports submitted by functional departments.
(A) Credit risk
Credit risk refers to the risk that one party to a financial instrument will fail to perform its obligations,
resulting in financial losses to the other party. In order to mitigate credit risk, the Company has established
internal control policy responsible for determining credit limits, conducting credit approvals, including external
credit ratings and, in some cases, bank references (where this information is available), and implementing other
monitoring procedures to ensure that necessary measures are taken to recover overdue creditor's right. As a
result, the management of the Company considers that the credit risk assumed by the Company has been
significantly reduced.
The credit risk of the Company mainly arises from bank deposits, accounts receivable, prepayments, other
receivables, etc., and the credit risk of these financial assets is derived from the default of the counterparty, and
the maximum risk exposure is equal to the carrying amount of these instruments.
1. The Company's working capital is deposited in a bank with a high credit rating, thus the credit risk of
the working capital is low.
2. On the balance sheet date, the Company made provision for bad debts in accordance with the
accounting policy.
(B) Liquidity risk
227
Annual Report 2023
Liquidity risk refers to the risk that an enterprise will have a shortage of funds when fulfilling its
obligation to settle by means of cash or other financial assets. It is the Company's policy to ensure that it has
sufficient cash to pay off its debts as they fall due. Liquidity risk is centrally controlled by the Company's
finance department. The finance department monitors cash balances, marketable securities that can be
liquidated at any time, etc., to ensure that the Company has sufficient funds to repay its debts under all
reasonably foreseeable circumstances.
(C) Market risk
Market risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate
due to changes in market prices, including interest rate risk, foreign exchange risk and other price risks. Interest
rate risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate due to
changes in market interest rates. The interest rate risk faced by the Company mainly comes from bank deposits.
2. Hedging
(1) The Company conducts hedging business for risk management
□Applicable Not applicable
(2) The Company conducts qualified hedging business and applies hedge accounting
In RMB
The cumulative fair
value hedge adjustment
The carrying amount Sources of hedge The impact of hedge
of the hedged items
associated with the effectiveness and accounting on the
Item included in the
hedged item and the hedge ineffectiveness Company's financial
recognized carrying
hedging instrument part report
amount of the hedged
items
Type of hedging risk
Hedging category
Other note:
Nil
（3） The Company conducts hedging business for risk management and expects to achieve risk
management objective but does not apply hedge accounting
Other note:
Nil
228
Annual Report 2023
3. Financial assets
(1) Classification of transfer methods
□Applicable Not applicable
(2) Financial assets that have been derecognized as a result of a transfer
□Applicable Not applicable
(3) Financial assets of continued involvement in asset transfer
□Applicable Not applicable
Other note:
Nil
XIII. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
In RMB
Ending fair value
Item
First-order Second-order Third-order Total
I. Sustaining measured
-- -- -- --
by fair value
II. Non-sustaining
-- -- -- --
measured by fair value
2. Recognized basis for the market price sustaining and non-persistent measured by fair value on first-
order
The quoted prices without adjustment in the active markets for identical assets or liabilities that are available at
the measurement date.
3. Valuation technique and qualitative and quantitative information on major parameters for the fair
value measure sustaining and non-persistent on second-order
The inputs for second-order are inputs other than first-order for which the related assets or liabilities are directly
or indirectly observable
4. Valuation technique and qualitative and quantitative information on major parameters for the fair
value measure sustaining and non-persistent on third-order
The third-order inputs are unobservable inputs for the underlying assets or liabilities. The fair value of the bank
acceptance bill receivable from bank is determined using the face amount because the probability of loss is
small and the recoverable amount is basically determined
5. Adjustment information and sensitivity analysis of unobservable parameters for the fair value measure
sustaining and non-persistent on third-order
229
Annual Report 2023
Nil
6. Sustaining items measured by fair value, as for the conversion between at all levels, reasons for
conversion and policy for conversion time point
Nil
7. Changes of valuation technique in the Period
Nil
8. Financial assets and liability not measured by fair value
Nil
9. Other
Nil
XIV. Related party and related transactions
1. Parent company
Share-holding
ratio on the Voting right ratio
Parent company Registered place Business nature Registered capital
enterprise for on the enterprise
parent company
General business:
Wansheng investment in
Industrial establishment of
Holdings Shenzhen industrial (specific 500 million Yuan 20.00% 20.00%
(Shenzhen) Co., items are
Ltd. separately
declared)
Explanation on parent company of the enterprise
Wansheng Industrial Holdings (Shenzhen) Co., Ltd. was established on May 10, 2016, with the business
period is from May 10, 2016 to no fixed term, the registered capital of the company is 500,000,000 yuan, the
unified social credit code is 91440300MA5DCB5K9A, the enterprise type is a limited liability company, the
legal representative is Wang Shenghong, and the company's registered address is 1311, Beiyuehui Building, No.
2115, Cuizhu Road, Cuijin Community, Cuizhu Street, Luohu District, Shenzhen.
Ultimate controller of the Company: Wang Shenghong
Other note:
Nil
2. Subsidiary of the Enterprise
Found more in Note VIII-1
230
Annual Report 2023
3. Associated enterprise and joint venture
Found more in Note
Other associated enterprise and joint venture that have related transaction with the Company in the Period or
occurred in previous period
Joint venture or associated enterprise Relationship with the Company
Other note:
Nil
4. Other related party
Other related party Relationship with the Company
The minority shareholders of Shenzhen Xinsen Jewelry Gold
Supply Chain Co., Ltd., a former subdiary, held 35% of the
Shenzhen Zuankinson Jewelry Gold Supply Chain Co., Ltd.
equity of Xinsen at the end of the previous period, which has
been fully transferred to Shenzhen China in the current period.
An enterprise actually controlled by Chen Xuejin, the wife of
Fuzhou Rongrun Jewelry Co., Ltd. Chen Junrong, a shareholder of Shenzhen Zuanjinsen Jewelry
Gold Supply Chain Co., Ltd
100% equity held by Shenzhen Zuankinson Jewelry Gold
Fuzhou Zuankinson Jewelry Co., Ltd.
Supply Chain Co., Ltd.
The enterprise with 30% equity held by actual controller Wang
Shenzhen Chanjuan Jewelry Co., Ltd.
Shenghong
Enterprise that holds more than 5% of the shares of Shenzhen
Shenzhen Guocheng Energy Investment Development Co., Ltd.
China
Other note:
Nil
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
Whether more than
Transaction Current period Approved Prior period
Related party the transaction
content incurred transaction amount incurred
amount
Shenzhen
Chanjuan Jewelry Goods purchasing 166,608.44
Co., Ltd.
Goods sold/labor service providing
In RMB
Related party Transaction content Current period incurred Prior period incurred
Fuzhou Rongrun Jewelry Co.,
Sales of goods 58,901,124.34 96,810,724.96
Ltd.
Fuzhou Zuankinson Jewelry
Sales of goods 49,772,997.49 23,137,699.12
Co., Ltd.
Shenzhen Xinsen Jewelry
Sales of goods 484,376.29 0
Gold Supply Chain Co., Ltd
Explanation on goods purchasing, labor service providing and receiving
In the current period, Shenzhen China acquired all the minority shareholders’ equity of Shenzhen Xinsen
Jewelry Gold Supply Chain Co., Ltd., a subsidiary of Shenzhen China, and after the completion of the
231
Annual Report 2023
acquisition, Xinsen became a wholly-owned subsidiary of Shenzhen China, and the acquisition was completed
at the beginning of August 2023. The statistical period of the afore-mentioned related party transactionwas from
January to July 2023.
(2) Related trusteeship/contract and delegated administration/outsourcing
Trusteeship/contract
In RMB
Client/ Entrusting Income from
Yield pricing
contract-out party/ Assets type Starting date Maturity date trusteeship/cont
basis
party contractor ract
Explanation on related trusteeship/contract
Nil
Delegated administration/outsourcing
In RMB
Pricing basis of Trustee
Client/ Entrusting
trustee fee/outsourcing
contract-out party/ Assets type Starting date Maturity date
fee/outsourcing fee recognized
party contractor
fee in the Period
Explanation on related administration/outsourcing
Nil
(3) Related lease
As a lessor for the Company::
In RMB
Lease income recognized in Lease income recognized in
Lessee Assets type
the Period prior Period
As a lessee for the Company:
In RMB
rental cost for
Variable lease
short-term leases
payment not
and low-value Interest expenses
included in the Right-of-use assets
assets leases with Rental paid assumed on lease
measurement of increased
simplified liability
Assets leasing liability (if
Lessor processing (if
type applicable)
applicable)
Current Prior Current Prior Current Prior Current Prior Current Prior
period period period period period period period period period period
incurre incurre incurre incurre incurre incurre incurre incurre incurre incurre
d d d d d d d d d d
Explanation on related lease
Nil
(4) Related guarantee
As a guarantor for the Company
232
Annual Report 2023
In RMB
Guarantee completed
Secured party Amount guarantee Starting date Due date
(Y/N)
As a secured party for the Company
In RMB
Guarantee completed
Guarantor Amount guarantee Starting date Due date
(Y/N)
Explanation on related guarantee
Nil
(5) Borrowed funds of related party
In RMB
Related party Borrowed funds Starting date Due date Note
Borrowing
Lending
(6) Assets transfer and debt restructuring of related party
In RMB
Related party Transaction content Current period incurred Prior period incurred
(7) Remuneration of key manager
In RMB
Item Current period incurred Prior period incurred
Remuneration of key manager 1,741,086.07 1,395,095.39
(8) Other related transactions
In June 2023, the "Proposal on Purchasing the Equity of Minority Shareholders of the Holding Subsidiary
namely the Related Party Transaction"was deliberated and approved in the fifth (extraordinary) meeting of the
11th board of directors and the 2022 annual general meeting of shareholders of Shenzhen China respectively.
Shenzhen China purchased 35% of the equity of Xinsen Supply Chain held by Shenzhen Zuanjinsenat a price of
RMB 25.55 million. On August 7, 2023, Shenzhen China completed the subsequent registration of the relevant
industrial and commercial changes of the afore-mentioned equity purchase.
6. Receivable/payable items of related parties
(1) Receivable item
In RMB
Ending balance Opening balance
Item Related party
Book balance Bad debt provision Book balance Bad debt provision
Account Fuzhou Rongrun 44,987,445.10
233
Annual Report 2023
receivable Jewelry Co., Ltd.
Fuzhou
Account
Zuankinson 19,085,600.00
receivable
Jewelry Co., Ltd.
(2) Payable item
In RMB
Item Related party Ending book balance Opening book balance
Shenzhen Guosheng Energy
Other account payable Investment Development Co., 6,500,000.00 6,500,000.00
Ltd.
Shenzhen Chanjuan Jewelry
Account payable 144,642.53
Co., Ltd.
7. Commitments of related party
According to the Cooperation Agreement signed by Shenzhen China Bicycle Company (Holdings) Co.,
Ltd. with Wansheng Industrial Holdings (Shenzhen) Co., Ltd. (hereinafter referred to as "Wansheng Industrial")
and Shenzhen Guosheng Energy Investment and Development Co., Ltd. (hereinafter referred to as "Guosheng
Energy") on December 14, 2020, Wansheng Industrial promised that in the next three years from the next year
after the completion of the non-public issuance of shares and the completion of the adjustment of the board of
directors and board of supervisors of the listed company by Wansheng Industrial, the net profit of the listed
company shall not be less than RMB 30 million yuan, 35 million yuan and 40 million yuan, that is, the
cumulative net profit scale is 105 million yuan. If the cumulative actual net profit of the listed company as of
any year during the performance commitment period does not reach the promised cumulative net profit,
Wansheng Industrial shall compensate the listed company in cash within 10 working days after the issuance of
the audit report of the listed company in the year during the performance commitment period. The amount of
compensation payable for the year is calculated as follows: amount of compensation payable for the year =
cumulative committed net profit as of the end of the period minus cumulative realized net profit as of the end of
the period minus cumulative compensation amount (if any). The net profit attributable to the owners of the
parent company in 2023 is RMB17,901,900 and the actual completion islower than the performance
commitment of RMB30 million, with a performance commitment completion rate of 59.67%. Wansheng
Industrial has not fulfilled its 2023 annual performance commitment, and the cumulative net profit attributable
to the owners of the parent company during the performance commitment period is still in the process of being
fulfilled.
8.Other
Nil
234
Annual Report 2023
XV. Share-based payment
1. General share-based payment
□Applicable Not applicable
2. Share-based payment settled by equity
□Applicable Not applicable
3. Share-based payment settled by cash
□Applicable Not applicable
4.The current shares will pay the fee
□Applicable Not applicable
5. Revised and termination on share-based payment
Nil
6. Other
Nil
XVI. Commitment or contingency
1. Important commitments
Important commitments in balance sheet date
Nil
2. Contingency
(1) Contingency on balance sheet date
Nil
(2) For the important contingency not necessary to disclosed by the Company, explained reasons
The Company has no important contingency that need to disclosed
3.Other
Nil
XVII. Events after balance sheet date
1. Important non-adjustment items
In RMB
Impact on financial status and Reasons on un-able to
Item Content
operation results estimated the impact number
235
Annual Report 2023
2. Profit distribution
3. Sales return
Nil
4. Other events after balance sheet date
Nil
XVIII. Other important events
1. Previous accounting errors collection
(1) Retrospective restatement
In RMB
Impact items of statement
Correction content Treatment procedures Cumulative impacted number
during a comparison
(2) Prospective application
Reasons for prospective application
Correction content Approval procedures
adopted
2. Debt restructuring
Nil
3. Assets replacement
(1) Non-monetary assets change
Nil
(2) Other assets replacement
Nil
4. Pension plan
Nil
5. Discontinued operations
In RMB
Discontinued
operations
Income tax profit
Item Revenue Expenses Total profit Net profit
expense attributable to
owners of
parent company
236
Annual Report 2023
Other note:
Nil
6. Segment
(1) Recognition basis and accounting policy for reportable segment
The Company determines its business segments based on its internal organizational structure,
management requirements, and internal reporting system. The Company's business segments are those that meet
the following conditions at the same time:
(1) The component is capable of generating income and incurring expenses in its daily activities;
(2) Management is able to regularly evaluate the operating results of the component in order to decide on
the allocation of resources to it and evaluate its performance;
(3) Able to obtain accounting information related to the financial position, results of operations and cash
flows of the component.
The Company determines the reporting segment on the basis of the industry segment.
Segment reporting information is disclosed in accordance with the accounting policy and measurement
standards adopted by each segment in reporting to management, which are consistent with those at the time of
preparation of the financial report.
(2) Financial information for reportable segment
In RMB
Offset between
Item Gold jewelry Bicycle Lithium battery Total
segments
Main business
564,839,114.22 916,243.42 806,397.39 566,561,755.03
income
Main business cost 530,252,110.65 400,016.52 776,762.29 531,428,889.46
(3)The Company has no reportable segments, or unable to disclose total assets and total liability for
reportable segments, explain reasons
Nil
(4) Other note:
Nil
237
Annual Report 2023
7. Major transaction and events makes influence on investor’s decision
Nil
8.Other
Nil
XIX. Principle notes of financial statements of parent company
1. Account receivable
（1）Disclosure according to the aging
In RMB
Aging Balance in year-end Balance Year-beginning
Within one year(one year included) 183,092,316.73 216,415,991.99
1-2 years 6,441,479.72 11,003,540.60
2-3 years 10,762,472.02 1,115,247.00
Over 3 years 2,412,925.00 1,347,678.00
3-4 years 1,115,247.00 999,542.00
4-5 years 949,542.00 348,136.00
Over 5 years 348,136.00
Total 202,709,193.47 229,882,457.59
（2） According to the bad debt provision method classification disclosure
In RMB
Amount in year-end Balance Year-beginning
Categor Book Balance Bad debt provision Book Book Balance Bad debt provision Book
y Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value
on(%) on(%) on(%) on(%)
Accrual
of bad
debt 18,761,8 17,038,1 9,081.00 1,723,65 18,895,9 15,489,4 8,197.00 3,406,50
926.00% 822.00%
provisio 37.03 83.74 % 3.29 05.41 02.18 % 3.23
n by
single
Includin
g：
Single
18,761,8 17,038,1 9,081.00 1,723,65 18,895,9 15,489,4 8,197.00 3,406,50
identific 926.00% 822.00%
37.03 83.74 % 3.29 05.41 02.18 % 3.23
ation
Accrual
of bad
debt 183,947, 9,074.00 549,240. 183,398, 210,986, 9,178.00 630,160. 210,356,
30.00% 30.00%
provisio 356.44 % 50 115.94 552.18 % 08 392.10
n by
portfolio
Includin
g：
Aging 183,080, 9,032.00 549,240. 30.00% 182,530, 210,053, 9,137.00 630,160. 30.00% 209,423,
238
Annual Report 2023
portfolio 166.53 % 50 926.03 360.30 % 08 200.22
Related
party 867,189. 867,189. 933,191. 933,191.
43.00% 41.00%
Portfoli 91 91 88 88
o
202,709, 10,000.0 17,587,4 185,121, 229,882, 10,000.0 16,119,5 213,762,
Total 868.00% 701.00%
193.47 0% 24.24 769.23 457.59 0% 62.26 895.33
Bad debt provision accrual on single basis: Single identification
In RMB
Opening balance Ending balance
Name Bad debt Bad debt Reason for
Book balance Book balance Accrual ratio
provision provision accrual
Guangshui
Expected to be
Jiaxu Energy
15,780,156.69 12,624,125.35 15,937,156.89 14,343,441.20 90.00% difficult to
Technology
recover
Co., Ltd.
Suzhou Jiaxin Expected to be
Economic 888,757.00 888,757.00 888,757.00 888,757.00 100.00% difficult to
Trade Co., Ltd. recover
Suzhou
Daming Expected to be
Vehicle 649,688.00 519,750.40 649,688.00 519,750.40 80.00% difficult to
Industry Co., recover
Ltd.
Dongguan
Expected to be
Daxiang New
676,734.00 676,734.00 626,734.00 626,734.00 100.00% difficult to
Energy Co.,
recover
Ltd.
Guangdong
Expected to be
Xinlingjia New
348,136.00 348,136.00 348,136.00 348,136.00 100.00% difficult to
Energy Co.,
recover
Ltd.
Hubei Tesidun
Expected to be
Electric
241,068.58 120,534.29 difficult to
Technology
recover
Co., Ltd.
Tianjin Huiju Expected to be
Electric Vehicle 116,840.14 116,840.14 116,840.14 116,840.14 100.00% difficult to
Co., Ltd. recover
Expected to be
Other 194,525.00 194,525.00 194,525.00 194,525.00 100.00% difficult to
recover
Total 18,895,905.41 15,489,402.18 18,761,837.03 17,038,183.74
Bad debt provision accrual on portfolio: Aging portfolio
In RMB
Ending balance
Name of the Company
Book balance Bad debt provision Accrual ratio
Within 1 year 182,935,316.53 548,805.95 0.30%
1-2 years 144,850.00 434.55 0.30%
Total 183,080,166.53 549,240.50
Explanation on portfolio basis:
Nil
239
Annual Report 2023
Bad debt provision accrual on portfolio: Related party Portfolio
In RMB
Ending balance
Name
Book Balance Bad debt provision Proportion(%)
Related party Portfolio 867,189.91
Total 867,189.91
Explanation on portfolio basis:
Nil
If the provision for bad debts of account receivable is made in accordance with the general model of expected
credit losses, please refer to the disclosure of other account receivable to disclose related information about bad-
debt provisions:
□ApplicableNot applicable
(3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
Accounts
receivable with
individual 15,489,402.18 1,719,315.85 170,534.29 17,038,183.74
provision for
bad debts
Provision for
bad debts based
on a portfolio 630,160.08 80,919.58 549,240.50
of credit risk
characteristics
Total 16,119,562.26 1,719,315.85 251,453.87 17,587,424.24
Including important amount of bad debt provision collected or reversal in the period:
In RMB
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
Nil
(4) Account receivables actually write-off during the reporting period
In RMB
Item Amount written off
240
Annual Report 2023
Including major account receivables write-off:
InRMB
Amount cause by
Amount written related
Enterprise Nature Causes Procedure
off transactions or not
(Y/N)
Explanation on account receivable write-off:
Nil
(5) The top five accounts receivable and contract assets at the end of the period aggregated according to
debtor
In RMB
Ending balance of
Proportion to the
accounts
Ending balance of total ending
Ending balance of receivable bad
Name of the Ending balance of accounts balance of
accounts debt provision and
organization contract assets receivable and accounts
receivable contract asset
contract assets receivable and
impairment
contract assets
provision
Fuzhou Rongrun
41,195,292.62 0.00 41,195,292.62 20.32% 123,585.88
Jewelry Co., Ltd
Shenzhen
Yunshang Jewelry 32,872,394.98 0.00 32,872,394.98 16.22% 98,617.18
Co., Ltd
Shenzhen
Hualinglong
Jewelry Culture 32,721,311.57 0.00 32,721,311.57 16.14% 98,163.93
Technology Co.,
Ltd
GuangshuiJiaxu
Energy
20,097,682.89 0.00 20,097,682.89 9.91% 60,293.05
Technology Co.,
Ltd
Fuzhou Cangshan
District Dingjue 19,635,634.47 0.00 19,635,634.47 9.69% 58,906.90
Jewelry Company
Total 146,522,316.53 0.00 146,522,316.53 72.28% 439,566.94
2. Other account receivable
In RMB
Item Ending balance Opening balance
Other account receivable 17,300,576.60 209,606.79
Total 17,300,576.60 209,606.79
241
Annual Report 2023
(1) Interest receivable
1) Category
In RMB
Item Ending balance Opening balance
2) Important overdue interest
In RMB
Impairment (Y/N) and
Borrower Ending balance Overdue time Overdue reason
judgment basis
Other note:
Nil
3) Accrual of bad debt provision
□Applicable Not applicable
4） Bad debt provision accrual, collected or reversal in the period
In RMB
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
Including important amount of bad debt provision collected or reversal in the period:
In RMB
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
Other note:
Nil
5）Interest receivables actually written off in the current period
In RMB
Item Write-off amount
Important Interest receivables write-off status thereinto:
In RMB
Name of Amount Nature Write-off amount Write-off reason Write-off Whether the
242
Annual Report 2023
Organization procedures for payment is
fulfillment generated by a
related party
transaction
Note：
Nil
Other note：
(2) Dividend receivable
1) Category
In RMB
Item (or the invested entity) Ending balance Opening balance
2) Important dividend receivable with over one year aged
In RMB
Item (or the invested Causes of failure for Impairment (Y/N) and
Ending balance Account age
entity) collection judgment basis
3) Accrual of bad debt provision
□Applicable Not applicable
4） Bad debt provision accrual, collected or reversal in the period
In RMB
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
Including important amount of bad debt provision collected or reversal in the period:
In RMB
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
Other note：
Nil
243
Annual Report 2023
5） Dividend receivables actually written off in the current period
In RMB
Item Write-off amount
Important Dividend receivable write-off status thereinto:
In RMB
Whether the
Write-off payment is
Name of
Amount Nature Write-off amount Write-off reason procedures for generated by a
Organization
fulfillment related party
transaction
Note：
Nil
Other note：
（3）Other account receivable
1) By nature
In RMB
Nature Ending book balance Opening book balance
Performance compensation 12,098,051.76
Deposit or margin 9,609.80 70,963.00
Personal loan of employees 20,198.00
Payment for equipment 11,400.00 11,400.00
Current account 5,193,843.90
Other 119,576.50
Total 17,312,905.46 222,137.50
2）By account aging
In RMB
Aging Ending book balance Opening book balance
Within one year(one year included) 63,480.70 139,574.50
1-2 years 79,473.00
2-3 years 70,663.00
Over 3 years 11,900.00 11,900.00
Over 5 years 11,900.00 11,900.00
Total 154,853.70 222,137.50
3) According to the bad debt provision method classification disclosure
In RMB
Amount in year-end Balance Year-beginning
Categor Book Balance Bad debt provision Book Book Balance Bad debt provision Book
y Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value
on(%) on(%) on(%) on(%)
244
Annual Report 2023
Includin
g：
Accrual
of bad
debt 12,252,9 12,328.8 12,240,5 222,137. 12,530.7 209,606.
100.00% 0.10% 100.00% 5.64%
provisio 05.46 6 76.60 50 1 79
n by
portfolio
Includin
g：
Aging 154,853. 12,328.8 142,524. 222,137. 12,530.7 209,606.
1.26% 7.96% 100.00% 5.64%
portfolio 70 6 84 50 1 79
Related 17,158,0 99.11% 17,158,0
party 51.76 51.76
Portfoli
o
17,312,9 100.00% 12,328.8 0.07% 17,300,5 222,137. 12,530.7 209,606.
Total 05.46 6 76.60 100.00% 5.64%
50 1 79
Bad debt provision accrual on portfolio: Aging portfolio
In RMB
Ending balance
Name of the Company
Book balance Bad debt provision Accrual ratio
Aging portfolio 154,853.70 12,328.86 7.96%
Total 154,853.70 12,328.86
Explanation on portfolio basis:
Nil
Bad debt provision accrual on portfolio: Related party Portfolio
In RMB
Ending balance
Name of the Company
Book balance Bad debt provision Accrual ratio
Related party Portfolio 17,158,051.76
Total 17,158,051.76
Explanation on portfolio basis:
Nil
If the provision for bad debts of account receivable is made in accordance with the general model of expected
credit losses, please refer to the disclosure of other account receivable to disclose related information about bad-
debt provisions:
□ApplicableNot applicable
Provision for bad debts is made according to the general model of expected credit losses
In RMB
Phase I Phase II Phase III
Expected credit losses Expected credit losses
Bad debt provision Expected credit losses for the entire duration for the entire duration Total
over next 12 months (without credit (with credit impairment
impairment occurred) occurred)
Balance on January 1,
12,530.71 12,530.71
2023
245
Annual Report 2023
January 1, 2023
balance in the current
period
Turn back in this
201.85 201.85
period
Balance on December
12,328.86 12,328.86
31, 2023
The basis for the division of each stageand the proportion of bad debt provision
Nil
Change of book balance of loss provision with amount has major changes in the period
□Applicable Not applicable
4) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
Provision for
bad debts based
on a portfolio 12,530.71 201.85 12,328.86
of credit risk
characteristics
Total 12,530.71 201.85 12,328.86
Nil
Important amount of bad debt provision switch-back or collection in the period:
In RMB
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
Nil
5) Other account receivables actually write-off during the reporting period
In RMB
Item Amount written off
Including major other account receivables write-off:
In RMB
Enterprise Other Nature Amount written Causes Procedure Amount cause by
246
Annual Report 2023
off related
transactions or not
(Y/N)
Other Explanation on account receivable write-off:
Nil
6) Top 5 other account receivable collected by arrears party at ending balance
In RMB
Proportion in total
other account Ending balance of
Enterprise Nature Ending balance Account age
receivables at bad bet provision
period-end
Wansheng
Industry Holding Performance
12,098,051.76 Within 1 year 69.88%
（Shenzhen ） compensation
Co., Ltd.
Fujian Huaxinbao
Current account 5,050,000.00 Within 1 year 29.17%
Jewelry Co., Ltd.
Guangdong
Shenzhen Luohu Current account 79,473.00 1-2 years 0.46% 238.42
Court
Hubei Guangshui
Current account 52,816.00 Within 1 year 0.31% 158.45
Court
Shenzhen
Hongkang
Payment for
Instrument 11,400.00 Over 5 years 0.07% 11,400.00
equipment
Technology Co.,
Ltd.
Total 17,291,740.76 99.89% 11,796.87
7） Reported in other receivables due to centralized management of funds
Other note：
Nil
3. Long-term equity investment
In RMB
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment for
120,510,379.73 120,510,379.73 19,960,379.73 19,960,379.73
subsidiary
Total 120,510,379.73 120,510,379.73 19,960,379.73 19,960,379.73
247
Annual Report 2023
(1) Investment for subsidiary
In RMB
Opening Changes in the period (+, -)
Ending
The Opening balance of Ending
Accrual of balance of
invested balance(Bo the Additional Capital balance(Bo
impairment Other impairment
entity ok value) impairment investment reduction ok value)
provision provision
provision
Shenzhen
Emmelle
10,379.73 10,379.73
Industrial
Co., Ltd.
Shenzhen
Xinsen
Jewelry
19,950,000. 100,550,00 120,500,00
Gold
00 0.00 0.00
Supply
Chain Co.,
Ltd
19,960,379. 100,550,00 120,510,37
Total
73 0.00 9.73
(2) Investment for associates and joint venture
In RMB
Openi Changes in the period (+, -)
ng Other Ending
Openi Invest Cash
balanc compr Accrua Ending balanc
Funde ng ment divide
e of Additi ehensi l of balanc e of
d balanc Capital gains Other nd or
the onal ve impair e(Boo impair
enterpr e(Boo reducti recogn equity profit Other
impair invest incom ment k ment
ise k on ized change annou
ment ment e provisi value) provisi
value) under nced to
provisi adjust on on
on equity issued
ment
I. Joint venture
II. Associated enterprise
The recoverable amount is determined on the basis of the net amount of fair value less disposal costs
□Applicable Not applicable
The recoverable amount is determined by the present value of the projected future cash flows
□Applicable Not applicable
The reason for the obvious discrepancy between the foregoing information and the information used in the
impairment test of previous years or the external information
Nil
The reason for the obvious discrepancy between the information used in the Company's impairment test in
previous years and the actual situation in the current year
Nil
248
Annual Report 2023
（3）Other note
Nil
4. Operation revenue and operation cost
In RMB
Current period incurred Prior period incurred
Item
Revenue Cost Revenue Cost
Main business 234,106,758.36 214,006,598.41 266,611,588.18 253,367,696.62
Other business 614,445.35 412.04 630,341.33 120,908.75
Total 234,721,203.71 214,007,010.45 267,241,929.51 253,488,605.37
Breakdown of operating income and operating costs:
Inn RMB
Contract 1# Division 2# Division Total
type Revenue Cost Revenue Cost Revenue Cost Revenue Cost
Business
type
Including
：
Classificati
on by
business
area
Including
：
Market or
customer
type
Including:
Contract
type
Including:
Classificati
on by time
of goods
transfer
Including:
Classificati
249
Annual Report 2023
on by
contract
duration
Including:
Classificati
on by sales
channel
Including:
Total
Information related to performance obligations:
The types of
The nature of The expected quality
The time to Whether it is
the goods that refunds to assurance
fulfill the Important the main
Item the company customers provided by the
performance payment terms responsible
promises to borne by the company and
obligation person
transfer company related
obligations
Other note
Nil
Information relating to the transaction price assigned to the remaining performance obligation:
The amount of income corresponding to the performance obligations that have been signed at the end of this
reporting period but have not yet been fulfilled or have not done with fulfillment is 0.00 yuan, among them,
yuan of revenue is expected to be recognized in year, yuan of revenue is expected to be recognized in year, and
yuan of revenue is expected to be recognized in year.
Significant contract changes or significant transaction price adjustments
In RMB
Item Accounting treatment method The impacted amount on revenue
Other note：
Nil
5. Investment income
In RMB
Item Current period incurred Prior period incurred
6. Other
Nil
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Annual Report 2023
XX. Supplementary Information
1. Current non-recurring gains/losses
Applicable □Not applicable
In RMB
Item Amount Note
Non-current asset disposal gain/loss -12,298.94
Government subsidy reckoned into
current gains/losses (except for those
with normal operation business
concerned, and conform to the national
120,500.00
policies & regulations and are
continuously enjoyed at a fixed or
quantitative basis according to certain
standards)
Switch-back of provision of impairment
of account receivable which are treated 193,430.29
with separate depreciation test
Net amount of non-operating income and
-300,037.34
expense except the aforesaid items
Other non-recurring Gains/loss items 2,092.35
Less :Influenced amount of income tax 210,783.69
Influenced amount of minor
384,638.54
shareholders’ equity (after tax)
Total -591,735.87 --
Details of other gains/losses items that meets the definition of non-recurring gains/losses:
□ApplicableNot applicable
There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.
Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss
in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public -
-- Extraordinary Profit/loss
□ApplicableNot applicable
2. Return on equity (ROE) and earnings per share (EPS)
EPS（Yuan/share）
Profit as of reporting period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to
common 6.22% 0.0260 0.0260
shareholders of the Company
Net profit attributable to
common
shareholders of the Company
after 6.43% 0.0268 0.0268
deduction of non-recurring
profit
and loss
3. Differences between accounting data under domestic and overseas accounting standards
（1）Simultaneously pursuant to both Chinese accounting standards and international accounting
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Annual Report 2023
standards disclosed in the financial reports of differences in net income and net assets.
□ Applicable□√ Not applicable
（2）. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.
□ Applicable□√ Not applicable
(3) .Explanation of the reasons for the differences in accounting data under domestic and foreign accounti
ng standards. If the data that has been audited by an overseas audit institution is adjusted for differences,
the name of the overseas institution should be indicated
4.Other
Nil
Board of Directors of Shenzhen China Bicycle Company (Holdings) Co., Ltd.
April 19,2024
252
