深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Shenzhen China Bicycle Company (Holdings) Limited
ANNUAL REPORT 2016
April 2017
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of Shenzhen China Bicycle Company (Holdings) Limited (hereinafter
referred to as the Company) hereby confirm that there are no any fictitious
statements, misleading statements, or important omissions carried in this report,
and shall take all responsibilities, individual and/or joint, for the reality,
accuracy and completion of the whole contents.
Li Hai, Principal of the Company, Sun Longlong, person in charge of accounting
works and Zhong Xiaojin, person in charge of accounting organ (accounting
principal) hereby confirm that the Financial Report of 2016 Annual Report is
authentic, accurate and complete.
Other directors attending the Meeting for annual report deliberation except for
the followed
Name of director Title for absent Reasons for
Attorney
absent director absent
Cao Fang Director Work Li Hai
Concerning the unqualified auditor’s report with explanatory paragraph issued
by Ruihua Certified Public Accountant (LLP) for the financial report 2016 of
the Company, board of the directors and supervisory committee are
well-explained for relevant events, investors are advice to pay attention on
reading.
The Company has no plan of cash bonus, dividends and capitalizing of reserves
either.
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Contents
Section I Important Notice, Contents and Paraphrase ................................ 错误！未定义书签。
Section II Company Profile and Main Finnaical Indexes ............................ 错误！未定义书签。
Section III Summary of Company Business .................................................. 错误！未定义书签。
Section IV Discussion and Analysis of the Business ...................................... 错误！未定义书签。
Section V Important Events ............................................................................ 错误！未定义书签。
Section VI Changes in shares and particular about shareholders............... 错误！未定义书签。
Section VII Preferred Stock ............................................................................ 错误！未定义书签。
Section VIII Particulars about Directors, Supervisors,Senior Executives and Employees错误！
未定义书签。
Section IX Corporate Governance ................................................................. 错误！未定义书签。
Section X Corporate Bonds ............................................................................. 错误！未定义书签。
Section XI Financial Report ............................................................................ 错误！未定义书签。
Section XII Documents available for reference ............................................. 错误！未定义书签。
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Paraphrase
Items Refers to Contents
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Section II Company Profile and Main Finnaical Indexes
I. Company information
Short form of the stock Zhonghua – A, Zhonghua -B Stock code 000017, 200017
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) Limited
Company (if applicable)
Short form of foreign name
of the Company (if CBC
applicable)
Legal representative Li Hai
Registrations add. No. 3008, Buxin Rd., Shenzhen
Code for registrations add 518020
Offices add. Room 1201, Wantong Building, No.3002, Sungang East Road, Shenzhen
Codes for office add. 518023
Company’s Internet Web
www.cbc.com.cn
Site
E-mail dmc@szcbc.com
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Sun Longlong Cui Hongxia
Room 1201, Wantong Building, Room 1201, Wantong Building,
Contact add.
No.3002, Sungang East Road, Shenzhen No.3002, Sungang East Road, Shenzhen
Tel. 0755-25516998,28181666 0755-25516998,28181666
Fax. 0755-28181009 0755-28181009
E-mail dmc@szcbc.com dmc@szcbc.com
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
III. Information disclosure and preparation place
Newspaper appointed for information disclosure Securities Times; Hong Kong Commercial Daily
Website for annual report publish appointed by
Juchao Website (www.cninfo.com.cn)
CSRC
Preparation place for annual report Room 1201, Wantong Building, No.3002, Sungang East Road, Shenzhen
IV. Registration changes of the Company
Organization code 440361883045-2
Changes of main business since listing
N/A
(if applicable)
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
Previous changes for controlling
first majority of the Company comes to Guosheng Energy. Guosheng Energy is the
shareholders (if applicable)
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
Guocheng 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.
V. Other relevant information
CPA engaged by the Company
Name of CPA Baker Tilly China CPA (LLP)
Offices add. for CPA A-1 and A-5 of No.68 Building, No.19 Chegongzhuang West Road, Haidian District Beijing
Signing Accountants Chen Zhigang, Zhang Lei
Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not
□ Yes √ No
Changes over last
2016 2015 2014
year
Operating income (RMB) 141,970,520.80 170,990,030.10 -16.97% 212,070,585.77
Net profit attributable to
shareholders of the listed 2,603,637.47 -138,355.58 -1,981.84% 4,885,678.56
company (RMB)
Net profit attributable to
shareholders of the listed
company after deducting 2,029,248.99 -416,262.14 -587.49% -6,073,439.70
non-recurring gains and losses
(RMB)
Net cash flow arising from
634,446.01 -3,029,023.82 -120.95% 3,921,048.18
operating activities (RMB)
Basic earnings per share
0.0047 -0.0003 -1,666.67% 0.0089
(RMB/Share)
Diluted earnings per share
0.0047 -0.0003 -1,666.67% 0.0089
(RMB/Share)
Return on Equity 19.93% -1.17% 21.10% 51.72%
Changes over end of
End of 2016 End of 2015 End of 2014
last year
Total assets (RMB) 54,088,275.72 45,869,094.97 17.92% 51,489,647.55
Net assets attributable to
shareholder of listed company 14,368,683.58 11,765,046.11 22.13% 11,903,347.67
(RMB)
VII. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
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
First quarter Second quarter Third quarter Fourth quarter
Operating income 21,999,259.18 43,774,754.15 54,175,577.57 22,020,929.90
Net profit attributable to
shareholders of the listed 146,355.64 302,000.65 1,632,211.91 523,069.27
company
Net profit attributable to
shareholders of the listed
764.61 193,162.90 1,467,114.11 368,207.37
company after deducting
non-recurring gains and losses
Net cash flow arising from
-2,231,998.61 -2,516,616.17 -959,260.69 6,342,321.48
operating activities
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial
index disclosed in the company’s quarterly report and semi-annual report
□Yes √ No
IX. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMB
Item 2016 2015 2014 Note
Gains/losses from the disposal of
non-current asset (including the write-off -11,450.00 33,851.46
that accrued for impairment of assets)
Other non-operating income and
expenditure except for the aforementioned 595,720.77 369,201.08
items
Other loss/profit qualified definition of
14,622,462.77
extraordinary profit and loss
Less: Impact on income tax 5,201.21 92,300.27 3,664,078.56
Impact on minority shareholders’ 4,681.08 -1,005.75 33,117.41
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
equity (post-tax)
Total 574,388.48 277,906.56 10,959,118.26 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about 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
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Section III. Summary of Company Business
I. Main businesses of the company in the reporting period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
The company is engaged in the main business for the bicycle business, including production, assembly, procurement, sales of bicycles
and electric bicycles, etc.
II. Major changes in main assets
1. Major changes in main assets
Major assets Note of major changes
Equity assets No major change
Fixed assets No major change
Intangible assets No major change
Construction in progress No major change
2. Main overseas assets
□ Applicable √ Not applicable
III. Core Competitiveness Analysis
Whether the company needs to comply with the disclosure requirements of the particular industry
No
Despite the fierce market competition in the bicycle industry as a conventional industry, the increased awareness of green commuting,
leisure and exercises as a result of the development of China’s social economy and the change of people’s living concept creates
structural development opportunity for the bicycle industry. The Company will continue to do better in various aspects of operation
such as market development, product development, quality management and sales of e-commerce so as to maintain and improve the
Company’s ability to continue as a going concern before the restructuring. On the other side, the Company has set out the condition of
introduction of investors in the restructuring plan with expectation to restore its ability to continue as a going concern and its
continuous profitability through the restructuring of assets.
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Section IV. Discussion and Analysis of the Business
I. Introduction
In 2016, the international political and economic situation was complicated and severe, the domestic economic development faced
many difficulties and challenges the deep-seated problems were still prominent, and there were many unstable and uncertain factors,
which affected and impacted the traditional manufacturing industry and social consumption structure demand. Under the leadership
of the central government and the governments at all levels, people of the whole country made great efforts to overcome difficulties,
forged ahead and realized the steady progress of economic and social development, and constantly made new achievements.
As a sector in the traditional manufacturing field, the bicycle industry continued the dilemma of rise in labor costs, manufacturing
costs, capital costs, and material costs. The rather low threshold for entering the industry and many manufacturers resulted in the
fierce market competition and intensifying industry reshuffle. The bicycle sharing brands such as Mobike and ofo have obtained large
amount of financing and rapid promotion, but also further digested the user's demand, and squeezed the market space of traditional
bicycle enterprises. At the same time, as a sector in the traditional manufacturing field, the bicycle industry has also ushered in the
“Made in China 2025” strategy, under the guidance of the basic principles of “driven by innovation, quality first, green development,
structural optimization, based on talents”, accelerate the important opportunity challenges of transformation and upgrading, faced the
important opportunity challenges of e-commerce development to channel impact, channel integration and internet +, along with the
development of cycling culture in China, China's bicycle market shall form a new space for development. In this context, in 2016, the
company combined with the actual situation of weak economic foundation after restructuring, on the one hand, adhered to taking the
traditional business model development as the principle, strengthened the product development efforts, and constantly optimized and
adjusted the product structure and sales model transformation, according to the e-commerce transformation of business team and the
cost control way of internal introduction and external connection, actively expanded the e-commerce business model, and achieved
the good development and rapid growth of e-commerce retail business; on the one hand, strived to promote the selection work of the
company's restructuring, planned the non-public offering of shares, and started the business upgrades and connection work of the
offline sales platform for sports experience and R & D center construction projects.
As for the planning of non-public offering of shares, in July 2016, the company started planning the non-public offering of shares,
and raised funds for the purchase of major assets, the company's Board of Directors considered and approved the Plan for Non-public
Offering of A Shares in 2016. On the basis of the due diligence, audit evaluation and commercial negotiation of the intermediary
institution, and combined with the actual situation of the capital market and the company, in February 2017, the Board of Directors of
the company considered and approved the Proposal on Adjusting the Company's Non-public Offering of A Shares, the Plan for
Non-public Offering of A Shares in 2016 (Revision) and so on. According to the revision of the plan, the total amount of this private
placement was no more than 1.2 billion Yuan, after deducting the issue costs, the company planned to invest 800 million Yuan of
funds for the “intelligent community building talk-back equipment and system platform construction project”, and invest 400 million
Yuan of funds for the "sports experience online and offline sales platform and R & D center construction project”. At present, the
plan has not yet passed the approval of the shareholders' meeting. The company has timely issued notices of the Board of Directors
about related conditions.
As for the business operation and management, in 2016, the company focused on the following aspects: First is to make every
endeavor to maintain the company's existing traditional business operation mode, constantly optimize and adjust the product structure
and sales model transformation, and promote and maintain the business operation efficiency under the circumstances that the
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
business environment of traditional manufacturing was very complex and severe. Second is to promote the development of
e-commerce business model on the basis of traditional model, combine with the actual situation of the company, learn from the
experience of the successful e-commerce examples, and follow the principle of efficiency and benefits to design and implement the
company's team e-commerce transformation and the e-commerce business development ideas of internal introduction, external
connection and controllable costs. On the basis of completing the initial e-commerce development layout of bicycle business and the
team training construction, EMMELLE flagship store has achieved good brand propaganda effect and e-commerce retail business
development momentum and business efficiency with the help of Tmall, Jingdong, VIP, Suning, Gome, official website, official
wechat, HHLME and other e-commerce platforms, the sustainable development ideas of e-commerce business have been verified and
implemented. Third is to continue to increase the promotion and the research and development efforts to the medium- and high-end
products, continue to introduce new products according to market changes, actively apply new technologies, closely track the
cutting-edge innovative technology and exploration applications like the intelligentization of smart helmet electric car with
super-capacitor battery, and constantly improve and extend the product lines. Fourth is to start the business upgrades and
convergence work at the earlier stage of sports experience online and offline sales platform and R & D center construction project,
and strive to upgrade the sales and research and development capabilities. Fifth is to improve the support level of background
departments to front desk business by strengthening the background management and office automation. Sixth is to actively carry out
the business while the company seriously cooperates with the manager to carry out the unaccomplished matter related to
reorganization procedures.
While the domestic traditional manufacturing industry was still in depressed, the company insisted on following the guidelines of
“Made in China 2025” to accelerate its own professionalization transformation, e-commerce transformation, manufacturing
miniaturization transformation and others, strengthen the adjustment of product structure, enhance the quality management,
strengthen the cost control, and strive to enhance the traditional enterprises’ abilities to adapt to the economy new normal and
participate in the market competition. Through the implementation of various work, in 2016, the company achieved operating income
of 141.97 million Yuan, net profit of 3,891,000 Yuan, and the net profit attributable to the shareholders of listed company of
2,603,600 Yuan.
II. Main business analysis
1. Introduction
See the “I-Introduction” in “Discussion and Analysis of the Business”
2. Revenue and cost
(1) Constitute of operation revenue
In RMB
2016 2015
Increase/decrease
Ratio in operation Ratio in operation
Amount Amount y-o-y
revenue revenue
Total of operation
141,970,520.80 100% 170,990,030.10 100% -16.97%
revenue
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
According to industries
Sales of bicycles
and accessories 141,970,520.80 100.00% 170,990,030.10 100.00% -16.97%
and fittings
According to products
Sales of bicycles
and accessories 141,970,520.80 100.00% 170,990,030.10 100.00% -16.97%
and fittings
According to region
Domestic 141,970,520.80 100.00% 170,990,030.10 100.00% -16.97%
(2) About the industries, products, or regions accounting for over 10% of the company’s operating income
or operating profit
√Applicable □ Not applicable
Whether the company needs to comply with the disclosure requirements of the particular industry
No
In RMB
Increase/decrea
Increase/decrea Increase/decrea
Operating Gross profit se of gross
Operating cost se of operating se of operating
revenue ratio profit ratio
revenue y-o-y cost y-o-y
y-o-y
According to industries
Sales of
bicycles and
141,970,520.80 126,243,374.59 11.08% -16.97% -20.80% 4.30%
accessories and
fittings
According to products
Sales of
bicycles and
141,970,520.80 126,243,374.59 11.08% -16.97% -20.80% 4.30%
accessories and
fittings
According to region
Domestic 141,970,520.80 126,243,374.59 11.08% -16.97% -20.80% 4.30%
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
Increase/decrease
Industries Item Unit 2016 2015
y-o-y
Bicycles Sales volume In 10 thousand 18.40 21.19 -13.17%
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Output In 10 thousand 18.06 20.99 -13.96%
Storage In 10 thousand 0.26 0.6 -56.67%
Reasons for y-o-y relevant data with over 30% changes
√Applicable □ Not applicable
Inventory has 56.67% reduce on a y-o-y basis.
(4) Fulfillment of the company’s signed significant sales contracts up to this reporting period
□ Applicable √ Not applicable
(5) Constitute of operation cost
Classification of industries
Classification of industries
In RMB
2016 2015
Increase/decrea
Industries Item Ratio in Ratio in
Amount Amount se y-o-y
operation cost operation cost
Sales of
bicycles and
126,243,374.59 100.00% 159,399,271.88 100.00% -20.80%
accessories and
fittings
Note
Nil
(6) Whether the changes in the scope of consolidation in Reporting Period
□Yes √□ No
(7) Major changes or adjustment in business, product or service of the Company in Reporting Period
□ Applicable √ Not applicable
(8) Major sales and main suppliers
Major sales client of the Company
Total top five clients in sales (RMB) 128,603,269.38
Proportion in total annual sales volume for top five
90.58%
clients
Ratio of related parties in annual total sales among the
0.00%
top five clients
Information of top five clients of the Company
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Serial Name Sales (RMB) Proportion in total annual sales
1 Client 1 67,487,893.68 47.54%
2 Client 2 39,334,357.57 27.71%
3 Client 3 13,467,804.65 9.49%
4 Client 4 5,602,062.90 3.95%
5 Client 5 2,711,150.58 1.91%
Total -- 128,603,269.38 90.58%
Other situation of main clients
□ Applicable √ Not applicable
Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 115,870,429.47
Proportion in total annual purchase amount for top five
91.78%
suppliers
Ratio of related parties in annual total sales among the
0.00%
top five suppliers
Information of top five suppliers of the Company
Serial Name Purchase (RMB) Proportion in total annual purchase
1 Supplier 1 50,549,087.06 40.04%
2 Supplier 2 32,223,686.37 25.53%
3 Supplier 3 16,271,948.81 12.89%
4 Supplier 4 8,850,354.79 7.01%
5 Supplier 5 7,975,352.44 6.32%
Total -- 115,870,429.47 91.78%
Other notes of main suppliers
□ Applicable √ Not applicable
3. Expenses
In RMB
Increase/decreas
2016 2015 Note of major changes
e y-o-y
Sales expense 5,547,948.66 6,515,605.90 -14.85%
Management expense 5,705,338.80 5,391,566.14 5.82%
Financial expense -577,245.96 -675,198.21 -14.51%
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
4. R&D investment
√ Applicable □ Not applicable
5. Cash flow
In RMB
Item 2016 2015 Y-o-y changes
Subtotal of cash in-flow from
75,590,409.09 100,041,540.65 -24.44%
operation activity
Subtotal of cash out-flow from
74,955,963.08 103,070,564.47 -27.28%
operation activity
Net cash flow from operation
634,446.01 -3,029,023.82 -120.95%
activity
Subtotal of cash out-flow from
3,371,224.00 382,777.30 780.73%
investment activity
Net cash flow from investment
-3,371,224.00 -382,777.30 780.73%
activity
Net increased amount of cash and
-2,736,777.95 -3,411,801.12 -19.78%
cash equivalent
Main reasons for y-o-y major changes in aspect of relevant data
√Applicable □ Not applicable
Cash out-flow from investment activity increased 780.73% from a year earlier, mainly because purchasing 7-20F and other six
properties of Lianxin Garden with original value of 2,959,824.00 Yuan. The property refers to the indemnificatory housing for
enterprise talent buying from Shenzhen Housing and Construction Bureau of Luohu District.
Reasons of major difference between the cash flow of operation activity in report period and net profit of the Company
□Applicable √Not applicable
III. Analysis of the non-main business
√Applicable □Not applicable
In RMB
Whether be
Amount Ratio in total profit Note
sustainable
Asset impairment 512,089.34 10.67% Impairment provision No
Revenue of the assets
Non-operating
4,421,353.01 92.15% management ready for proposed No
income
in reorganization case
Non-operating Expenditure of the assets
3,837,082.24 79.97% No
expense management ready for proposed
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
in reorganization case
IV. Assets and liability
1. Major changes of assets composition
In RMB
End of 2016 End of 2015
Ratio in Ratio in Ratio
Notes of major changes
Amount total Amount total changes
assets assets
Monetary fund 24,015,287.71 44.40% 26,752,065.66 58.32% -13.92%
Account
12,371,386.82 22.87% 9,195,296.32 20.05% 2.82%
receivable
Inventory 3,118,440.26 5.77% 4,057,247.68 8.85% -3.08%
Fix assets 3,728,955.11 6.89% 1,007,906.43 2.20% 4.69%
Note receivable 2,220,000.00 4.10% 0.00 0.00% 4.10%
Advance payment 1,867,424.89 3.45% 397,833.20 0.87% 2.58%
Other receivables 658,754.09 1.22% 395,523.78 0.86% 0.36%
Other current
2,050,830.55 3.79% 209,155.59 0.46% 3.33%
assets
Intangible assets 3,012,000.00 5.57% 3,765,000.00 8.21% -2.64%
Deferred tax
645,196.29 1.19% 89,066.31 0.19% 1.00%
assets
Other current
400,000.00 0.74% 0.00 0.00% 0.74%
assets
2. Assets and liability measured by fair value
□ Applicable √ Not applicable
3. Limited assets rights till end of the period
Purchasing 7-20F and other six properties of Lianxin Garden with original value of 2,959,824.00 Yuan; The property purchasing
refers to the indemnificatory housing for enterprise talent buying from Shenzhen Housing and Construction Bureau of Luohu District.
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.
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
V. Investment
1. Overall situation
□ Applicable √ Not applicable
2. The major equity investment obtained in the reporting period
□ Applicable √ Not applicable
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
The company had no securities investment in the reporting period.
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period
5. Application of raised proceeds
□ Applicable √ Not applicable
The company had no application of raised proceeds in the reporting period.
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
VII. Analysis of main holding company and stock-jointly companies
√Applicable □ Not applicable
18
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Company Main Register Total Operating Operating
Type Net Assets Net profit
name business capital assets revenue profit
Shenzhen Sales of
Emmelle bicycles 43,686,945 9,710,424. 141,970,52 5,178,944. 4,293,140.
Subsidiary 2000000
Industry and .74 90 0.80 49 88
Co., Ltd. accessories
Particular about subsidiaries obtained or disposed in report period
□ Applicable √ Not applicable
Notes of holding and shareholding companies
The Company holds 70 percent equity of the Shenzhen Emmelle Industry Co., Ltd., the balance of minority equity at year-end
amounting to 2913127.47 Yuan.
VIII. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Future Development Prospects
1. Development trend of the industry the Company operates in and market competition pattern it deals with:
The Company has been engaging in the electric bicycle business since 2002. After going through the rapid development in the past
few years, the electric bicycle industry has witnessed obvious stagnation since 2007. The short supply of batteries as the main
component of electrical machine caused by the enhanced management of rare earth industry and battery industry in 2011 has
constrained, to some extent, the manufacturing of electric bicycle industry. The new standard of electric bicycle industry and the
uncertainty of its launch time have also caused a negative impact on the selling of electric bicycles. As a sector in the traditional
manufacturing field, the bicycle industry continued the dilemma of rise in labor costs, manufacturing costs, capital costs, and material
costs. The rather low threshold for entering the industry and many manufacturers resulted in the fierce market competition and
intensifying industry reshuffle. The bicycle sharing brands such as Mobike and ofo have obtained large amount of financing and
rapid promotion, but also further digested the user's demand and squeezed the market space of traditional bicycle enterprises. At the
same time, as a sector in the traditional manufacturing field, the bicycle industry has also ushered in the “Made in China 2025”
strategy, under the guidance of the basic principles of “driven by innovation, quality first, green development, structural optimization,
based on talents”, accelerate the important opportunity challenges of transformation and upgrading, faced the important opportunity
challenges of e-commerce development to channel impact, channel integration and internet +, along with the development of cycling
culture in China, China's bicycle market shall form a new space for development.
2. Future development opportunity and new yearly business plan of the Company:
The fierce market competition creates structural development opportunity for the industry. At the end of 2013, the Company
completed the implementation of its restructuring plan and concluded its bankruptcy procedure, thereby improving the legal
environment its business faces with. The business plan of the Company for 2017 is:
(1) Continue to actively cooperate with shareholders and the board of directors to promote the reorganization of the company and
promote the planning of non-public offering of shares.
19
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
(2) Reform and improve the internal management mechanism, decompose and implement the company's annual task to each
Distribution Company and regional manager, take the manager responsibility system, follow p month by month, and roll the
assessment. Strive to maintain the traditional business, keep a close watch on the first echelon big customers, focus on expanding the
second echelon customers, actively promote its distribution network terminal construction to extend downward, further expand new
markets, and support new customer business.
(3) Comprehensively build the e-commerce business model and promote the informatization management, based on the e-commerce
work of last year, further train the company’s e-commerce team, strive to improve the EMMELLE flagship store sales capabilities on
all e-commerce platforms and the brand publicity coverage effects, improve the company's official website mall and WeChat mall,
expand the brand influence, promote the faster growth of network sales business, and improve the ability of enterprises to participate
in market competition and the profitability.
(4) Improve the supporting work of offline business, bring the traditional network dealers, physical stores and OEM plants into the
offline supporting system of e-commerce business by reforming the mechanisms and sharing the benefits, utilize Qinghu base to
create effective support services of small manufacturing for market demand and e-commerce business, and achieve win-win and
common development.
(5) Increase the follow-up work to group purchase orders through the cooperation with government procurement information center.
(6) Combine the e-commerce means with the traditional business means for brand and product publicity, utilize the clubs to organize
some special competitions and cycling races around Qinghai Lake and Hainan Island to publicize and promote the brand.
(7) Adjust rebate policy, take the month-by-month activities, assessment and rebate to promote sales.
(8) To enhance the development of medium-to-high end bikes and lithium batteries electric bikes, and enhance the development and
promotion of medium-to-high end auxiliary parts.
(9) To strictly implement the entry and exit mechanism of OEM factories and suppliers and perform strict quality management and
control, and carry out staff supplement and training as planned.
(10) Strengthen the background management and office automation, and improve the support degree of background departments to
front desk business.
3. Risk factors adverse to the Company’s development:
The tough international economic situation has a deep impact on the domestic consumption market where significant amount of
export-oriented manufacturing enterprises has shifted. The bicycle and electric bicycle market is facing a complex environment that
price war is a major competition means. Since the domestic economy is at the structural adjustment stage, coupled with a difficult
situation of continuously rising labor cost, manufacturing cost, financing cost and parts the bicycle industry as a conventional
manufacturing field recorded a decline in the market turnover. Due to the low entry threshold and numerous manufacturers, the
competition in the market is extremely fierce.
Faced with the above problems, combine actual condition of financially insecure after reorganization, on the one hand, we adhere to
traditional business model development, strengthen R&D of the products, and continue to optimize the structure for products and
sales mode. According to the electricity supplier transformation and inner lead of the cost controlling, the Company proactively
develop the electricity supplier business model to achieved a favorable and rapidly growth in retail business for the electricity
supplier; on the other hand, we strive to promote the selection for recombinant party, planning a private placement of shares, and
carry out a sport experience sales platform online and offline and the construction of R&D center, recently the business upgrade still
in process.
20
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
X. Reception of research, communication and interview
1. In the report period, reception of research, communication and interview
√Applicable □ Not applicable
Time Way Type Basic situation index of investigation
Consulting company restructuring
January – December 2016 Telephone communication Individual
problem
Inquiry progress of the private
July – December 2016 Telephone communication Individual
placement
Reception (times) 8
Number of hospitality 0
Number of individual reception 8
Number of other reception 0
Disclosed, released or let out major undisclosed
No
information
21
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Section V. Important Events
I. Profit distribution plan of common stock 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
Profit distribution plan (pre-plan) of common stock and capitalizing of common reserves plan (pre-plan) in latest three years
(including the reporting period)
Nil
Cash dividend of common stock in latest three years (including the reporting period)
In RMB
Net profit Ratio in net profit
attributable to attributable to
common stock common stock
Amount for cash Amount for cash Proportion for
Year for bonus shareholders of shareholders of
bonus (tax bonus by other cash bonus by
shares listed company in listed company
included) ways other ways
consolidation contained in
statement for consolidation
bonus year statement
2016 0.00 2,603,637.47 0.00% 0.00 0.00%
2015 0.00 -138,355.58 0.00% 0.00 0.00%
2014 0.00 4,885,678.56 0.00% 0.00 0.00%
The Company gains profits in reporting period and the retained profit of common stock shareholders provided by parent company is
positive but no plan of cash dividend proposed of common stock
□ Applicable √ Not applicable
II. Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for
the year.
III. Implementation of commitment
1. Commitments completed in Period and those without completed till end of the Period from actual
controller, shareholders, related parties, purchaser and companies
□ Applicable √ Not applicable
The Company has no commitments completed in Period and those without completed till end of the Period from actual controller,
22
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
shareholders, related parties, purchaser and companies
2. Concerning assts 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
IV. 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.
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors
(if applicable) for “Qualified Opinion” that issued by CPA
√ Applicable □ Not applicable
th
On 11 , May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng Energy Investment and
Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the Company as the Company
couldn’t pay off the matured debts and was seriously insolvent. On 12th, Oct., 2012, Shenzhen Municipal Intermediate People's Court
ruled to accept the application proposed by Guosheng Energy according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil
ruling. In late October, 2012, Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25th, Oct., 2012
according to (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen) Mallesons and
Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. At the same time, Shenzhen Municipal
Intermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1 written decision, and approved the Company
to manage property and business affairs by itself under the supervision of custodians according to the law. On 5 November 2013, the
Shenzhen Intermediate People’s Court (2012) Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved the
reorganization plan of the Company. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012)
Shen Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures of CBC closed
down.
The Company has solved the debt problem by reforming, realized the net assets with positive value, the main business of bicycle is
able to be maintained and realizes the stable development. The Company has set up the conditions for introducing the recombination
party in the reforming plan, and expects to restore the abilities of sustainable operation and sustained profitability by reorganization.
The conditions of introducing the recombination party includes: the assessed value of net assets should be no less than 2 billion Yuan,
the net assets in the same year for implementing the major reorganization should be no less than 200 million Yuan. The Company
doesn’t have the recombination party at the moment. The Company will continue to carry out vary related works actively and
promote the reorganization work with all efforts.
VI. Particulars about the changes in aspect of accounting policy, estimates and calculation
method compared with the financial report of last year
√ Applicable □ Not applicable
On 3 December 2016, the Provision on Accounting Treatment of VAT (Cai Kuai [2016] No.22) was issued by Ministry of Finance,
which is applicable for relevant tradings occurred since 1 May 2016. main impact on the Company while implemented the rules:
23
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Content and reasons for accounting policy changes Item and amount impacted
”Business tax and surcharge” in profit statement will adjusted to item of “taxes
Taxes and surcharge, administrative expenses
and surcharge ”
The house duty, land holding tax and stamp tax occurred from operation activities Taxes and surcharge in profit statement
since 1 May 2016 will re-classify to “taxes and surcharge” instead of increase 14,206.07 Yuan for the year,
“administrative expenses”. The taxes occurred before 1 May 2016 shall not be administrative expenses decrease 14,206.07
adjusted, comparative data either. Yuan for the year in profit statement
VII. Major accounting errors within reporting period that needs retrospective restatement
□ Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
VIII. Compare with last year’s financial report; explain changes in consolidation statement’s
scope
□ Applicable √ Not applicable
No changes in consolidation statement’s scope for the Company in the reporting.
IX. Appointment and non-reappointment (dismissal) of CPA
Accounting firm appointed
Name of domestic accounting firm Baker Tilly China CPA (LLP)
Remuneration for domestic accounting firm (in 10
45
thousand Yuan)
Continuous life of auditing service for domestic
1
accounting firm
Name of domestic CPA Chen Zhigang, Zhang Lei
Re-appointed accounting firms in this period
√ Yes □ No
Change the engagement of CPA in auditing period
√ Yes □ No
Implemented approval procedures for changing the CPA
√ Yes □ No
Detailed description of reappointing and changing the accounting firm
I Description of changing the accounting firm
Based on the business development needs of Shenzhen China Bicycle Company (Holdings) Limited (hereinafter referred to as the
Company) and considering that the audit work team of Ruihua Certified Public Accountants (Special General Partnership), the
company’s original audit institution, has continuously provided annual audit services for the company for many years, in order to
ensure the independence and objectivity of the audit work of listed companies, the Company no longer engaged Ruihua Certified
24
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Public Accountants (Special General Partnership) as the audit institution for the 2016 audit work. We would like to express our
sincere and heartfelt thanks for the professional services and hard work provided by Ruihua Certified Public Accountants (Special
General Partnership) in the Company's financial audit work.
The audit committee of the company’s board of directors suggested to engage Baker Tilly China Certified Public Accountant (Special
General Partnership) (hereinafter referred to as Baker Tilly China) as the audit institution for the company’s 2016 annual financial
report and internal control after the serious investigation. On February 28, 2017, the Company held the 22nd (provisional) meeting of
the 9th Board of Directors, considered and approved the Proposal on Changing the Certified Public Accountants, and agreed to
engage Baker Tilly China Certified Public Accountant (Special General Partnership) as the company’s audit institution in 2016.
II Overview of the accounting firm planned to engage
Name: Baker Tilly China Certified Public Accountant (Special General Partnership)
Type: Special general partnership
Business operation location: A-1 and A-5 area, Building No. 68, Chegongzhuang
West Road No.19, Haidian District, Beijing
Executive Partner: Qiu Jingzhi
Date of establishment: March 05, 2012
Business license unified social credit code: 911101085923425568
Business scope: investigate the enterprise accounting statements, and issue audit reports; verify the business capital, and issue the
capital verification report; manage the audit services in business merger, separation, and liquidation matters, and issue the relevant
reports; audit of annual financial final cost of capital construction; agent accounting; accounting consultation, tax consultation,
management consulting, and accounting training; other businesses specified by laws and regulations.
Qualification certificate: Permit for Business Related to Securities and Futures of Accounting Firms issued by Ministry of Finance of
the People’s Republic of China, and China Securities Regulatory Commission.
The registered capital of Baker Tilly China Certified Public Accountant (Special General Partnership) is 61.3 million Yuan.
Registration place is Beijing, China. In the long-term development process, Baker Tilly China has continued to standardize and
improve, gradually implemented the “standardization, collectivization, internationalization” development strategy, built the
centralized management structure of “set department by division of labor, establish branch by regional distribution”, and “completely
unify the human resources, practice standards and benefit distribution”, formed the service model and operating mechanism that are
basically equal to the international professional standards and management level, professionally and elaborately divide the work in
service field, and share the group resources. Baker Tilly China has 3984 employees, 972 certified public accountants, 93 foreign
qualified employees, 31 leading talents in certified public accountants industry. Baker Tilly China has established more than 20
branches in 17 provinces and municipalities, including Shanghai, Guangdong, Hunan, Hubei, Jiangsu, Anhui, Shandong, Tianjin,
Henan, Sichuan, Yunnan, Shaanxi, Liaoning, Xinjiang, Chongqing, Jiangxi and Zhejiang.
III Procedures performed for changing the accounting firm
1. The board of directors of the company has communicated with the original audit institution, Ruihua Certified Public
Accountants (Special General Partnership), about changing the accounting firm in advance, and has obtained its understanding
and supports;
2. The company's audit committee has reviewed the related qualifications of Baker Tilly China after communicating with the audit
project leader of Baker Tilly China, and thought that Baker Tilly China has the qualifications for the serving the listed company
and is competent for the job, and has proposed to the Board of Directors to engage Baker Tilly China as the audit institution for the
25
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
company’s 2016 annual financial report.
3. On February 28, 2017, the 22nd (provisional) meeting of the 9th Board of Directors of the Company considered and approved the
Proposal on Changing the Certified Public Accountants, and agreed to engage Baker Tilly China Certified Public Accountant
(Special General Partnership) as the company’s audit institution in 2016, and submitted to the first extraordinary general meeting
of the company in 2017 for consideration. The independent directors of the company issued the prior approval opinions and
independent opinions on deliberation matters.
The company held the first extraordinary general meeting of shareholders in 2017 on March 24, 2017 to consider the Proposal on
Changing the Certified Public Accountants, the employment period of the accounting firm changed this time is one year from the
date that the examination and approval take effect.
IV Independent directors' prior approval opinions and independent opinions
1. Independent director's prior approval opinions: agreed to engage Baker Tilly China Certified Public Accountant (Special General
Partnership) as the audit institution for company’s 2016 annual financial audit, and agreed to submit the Proposal on Changing the
Certified Public Accountants to the Board of Directors for consideration.
2. Independent directors' independent opinions: the consideration procedures that the
company planned to change the accounting firm conformed to the relevant laws, regulations and the provisions of the Articles of
Association; Baker Tilly China Certified Public Accountant (Special General Partnership) has the audit qualifications for securities
and futures and other related business, and has many years of experience and abilities to provide audit services for listed
companies, and can meet the company’s requirements to the related audit work in 2016 and well fulfill its responsibilities and
obligations. The change of accounting firm this time is conducive to enhancing the independence and objectivity of the company's
audit work and shall not damage the interests of the company and its shareholders, especially the minority shareholders. Therefore,
the independent directors agreed to engage Baker Tilly China Certified Public Accountant (Special General Partnership) as the
audit institution for company’s 2016 annual financial audit and internal control, and agreed to submit the proposal to the first
extraordinary general meeting of shareholders in 2017 for consideration.
Appointment of internal control auditing accounting firm, financial consultant or sponsor
√Applicable □ Not applicable
In the year, the Company engaged Baker Tilly China CPA (LLP) as the auditing organ for internal control of the Company for year of
2016, charges amounted as 150000 Yuan. The Dongwu Securities, engaged by the Company for planning of private placement, as
Finance Consultant, totally one million Yuan paid in the year.
X. Particular about suspended and delisting after annual report disclosed
□ Applicable √ Not applicable
XI. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period.
26
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
XII. Significant lawsuits and arbitrations of the Company
□Applicable √Not applicable
No significant lawsuits and arbitrations occurred in the reporting period.
XIII. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
XIV. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XV. Implementation of the company’s stock incentive plan, employee stock ownership plan or
other employee incentives
□ Applicable √ Not applicable
The Company had no implementation of the company’s stock incentive plan, employee stock ownership plan or other employee
incentives in the reporting period.
XVI. Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
No related transaction with daily operation concerned for the Company in reporting period.
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period.
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period.
4. Contact of related credit and debt
√ Applicable □ Not applicable
Whether exist non-operating contact of related credit and debt or not
√Yes □No
Claim receivable from related party
27
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Whether
Balance Current
has Current Current Balance at
at newly
non-busin recovery interest period-en
Related Relations period-be added Interest
Causes ess (10 (10 d (10
party hip gin (10 (10 rate
capital thousand thousand thousand
thousand thousand
occupyin Yuan) Yuan) Yuan)
Yuan) Yuan)
g or not
Influence on operation
result and financial
N/A
statue of the Company
from related credit
Debts payable to related party
Current
Balance at Current Current Balance at
newly
period-beg recovery interest period-end
Related Relationshi added Interest
Causes in (10 (10 (10 (10
party p (10 rate
thousand thousand thousand thousand
thousand
Yuan) Yuan) Yuan) Yuan)
Yuan)
Shenzhen
Guosheng
Large Subsidiary
Energy
shareholde Emmelle 650 650
Investment
r loan
Developmen
t Co., Ltd.
Influence on operation
result and financial statue
No influence
of the Company from
related debts
5. Other related transactions
□ Applicable √ Not applicable
The company had no other significant related transactions in reporting period.
XVII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship for the Company in reporting period.
28
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in reporting period.
(3) Leasing
□ Applicable √ Not applicable
No leasing for the Company in reporting period.
2. Major guarantees
□ Applicable √ Not applicable
No guarantee for the Company in reporting period.
3. Entrust others to cash asset management
(1) Trust financing
□ Applicable √ Not applicable
No trust financing for the Company in reporting period.
(2) Entrusted loans
□ Applicable √ Not applicable
The company had no entrusted loans in the reporting period.
4. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in reporting period.
XX. Social responsibility
1. Execution of social responsibility of targeted poverty alleviation
(1) Summary of annual precision poverty alleviation
The Company has no precision poverty alleviation temporary in the year, and no subsequent program either
(2) Annual precision poverty alleviation
Measurement
Target Numbers/progress
units
29
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
I. general condition —— ——
II. Implemented by detail —— ——
1. Industrial development poverty —— ——
2.Transfer employment —— ——
3. Anti-poverty by relocating in other places —— ——
4. Education poverty —— ——
5. Health poverty alleviation —— ——
6. Ecological conservation —— ——
7. Fallback protection —— ——
8. Social poverty alleviation —— ——
9. Other —— ——
III. Awards (content and level) —— ——
(3) Subsequent precision poverty alleviation program
Nil
2. Execution of other social responsibility
Nil
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental Protection
No
Whether the social responsibility report released
□Yes √ No
XIX. Explanation on other significant events
□ Applicable √ Not applicable
During the reporting period, the company had other major issues that needed to be explained: In July 2016, the company initiated the
planning for non-public offering of shares and raised funds for the purchase of significant assets; the company's Board of Directors
reviewed and approved the Plan for Non-public Offering of A Shares in 2016. On the basis of the due diligence, audit evaluation and
commercial negotiation of the intermediary institution, and combined with the actual situation of the capital market and the company,
in February 2017, the Board of Directors of the company considered and approved the Proposal on Adjusting the Company's
Non-public Offering of A Shares, the Plan for Non-public Offering of A Shares in 2016 (Revision) and so on. According to the
revision of the plan, the total amount of this private placement was no more than 1.2 billion Yuan, after deducting the issue costs, the
company planned to invest 800 million Yuan of funds for the “intelligent community building talk-back equipment and system
platform construction project”, and invest 400 million Yuan of funds for the "sports experience online and offline sales platform and
R & D center construction project”. At present, the plan has not yet passed the approval of the shareholders' meeting. The company
has timely issued notices of the Board of Directors about related conditions.
30
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
XIX. Significant event of subsidiary of the Company
□ Applicable √ Not applicable
31
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Section VI. 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
Capitali
New zation
Proporti Bonus Amoun Proport
Amount shares of Others Subtotal
on shares t ion
issued public
reserve
I. Restricted shares 6,207 0.00% -1,500 -1,500 4,707 0.00%
1. State-owned shares 0 0.00% 0 0 0 0.00%
2. State-owned legal
0 0.00% 0 0 0 0.00%
person’s shares
3. Other domestic shares 6,207 0.00% -1,500 -1,500 4,707 0.00%
Including: Domestic legal
0 0.00% 0 0 0 0.00%
person’s shares
Domestic natural person’s
6,207 0.00% -1,500 -1,500 4,707 0.00%
shares
4. Foreign shares 0 0.00% 0 0 0 0.00%
Including: Foreign legal
0 0.00% 0 0 0 0.00%
person’s shares
Foreign natural person’s
0 0.00% 0 0 0 0.00%
shares
551,341 100.00 551,34 100.00
II. Unrestricted shares 1,500 1,500
,740 % 3,240 %
302,978 302,98
1. RMB Ordinary shares 54.95% 1,500 1,500 54.95%
,758 0,258
2. Domestically listed 248,362 248,36
45.05% 0 0 45.05%
foreign shares ,982 2,982
3. Overseas listed foreign
0 0.00% 0 0 0 0.00%
shares
4. Others 0 0.00% 0 0 0 0.00%
551,347 100.00 551,34 100.00
III. Total shares 0 0
,947 % 7,947 %
Reasons for share changed
32
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changed
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of restricted shares
□ Applicable √ Not applicable
II. Securities issuance and listing
1. Security offering (without preferred stock) in Reporting Period
□ Applicable √ Not applicable
2. Changes of total shares and shareholders structure as well as explanation on changes of assets and
liability structure
□ Applicable √ Not applicable
3. Existing internal staff shares
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
In Share
Total preference Total
Total common
Total shareholders preference
stock
common with voting shareholders
shareholders at
stock rights recovered with voting
57,890 end of last 59,118 0 0
shareholders at end of rights
month before
in reporting reporting period recovered at
annual report
period-end (if applicable) end of last
disclosed
(found in note8) month before
33
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
annual report
disclosed (if
applicable)
(found in
note8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Total Amoun Number of share
shareholder t of pledged/frozen
Proport Changes Amount of
Full name of Nature of ion of s at the restrict
in report un-restricted
Shareholders shareholder shares end of ed State of
held period shares held Amount
report shares share
period held
Shenzhen
Guocheng
Domestic
Energy
non-State-owne 11.52% 63,508,747 0 0 63,508,747 Pledged 11,000,000
Investment
d legal person
Development
Co., Ltd.
UOB Koy Hian
Foreign legal
(Hongkong) Co., 2.89% 15,907,850 3614000 0 15,907,850
person
Ltd.
Guosen
Securities
Foreign legal
(Hongkong) 2.54% 13,988,425 8512374 0 13,988,425
person
brokerage Co.,
Ltd.
Shenwan
Hongyuan
Foreign legal
Securities 1.08% 5,959,357 -389313 0 5,959,357
person
(Hongkong) Co.,
Ltd.
China Merchants
State-owned
Securities Hong 0.75% 4,155,342 284370 0 4,155,342
legal person
Kong Co., Ltd.
Domestic nature
Li Huili 0.71% 3,891,124 0 0 3,891,124
person
Domestic nature
Xu Hongbo 0.57% 3,137,419 0 0 3,137,419
person
Domestic nature
Zong Bin 0.56% 3,114,180 -57780 0 3,114,180
person
Zeng Ying Domestic nature 0.54% 3,000,000 0 0 3,000,000
34
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
person
Specific account
of property
Domestic
disposition for
non-State-owne 0.47% 2,602,402 -5847600 0 2,602,402
bankruptcy
d legal person
enterprise of
CBC
Li Huili, the spouse of actual controller Ji Hanfei, holding B-share of the Company on
Explanation on associated behalf of Shenzhen Guocheng Energy Investment Development Co., Ltd., beyond that,
relationship among the aforesaid the Company has no idea of whether other circulated shareholders belong to concerted
shareholders action persons ruled in the Administration Norms for Information Disclosure of Change
on Shareholding of Shareholders of Listed Companies.
Particular about top ten shareholders with un-restrict shares held
Amount of un-restrict shares Type of shares
Shareholders’ name
held at Period-end Type Amount
Shenzhen Guocheng Energy Investment
63,508,747 RMB common shares 63,508,747
Development Co., Ltd.
Domestically foreign
UOB Koy Hian (Hongkong) Co., Ltd. 15,907,850 15,907,850
shares
Guosen Securities (Hongkong) brokerage Co., Domestically foreign
13,988,425 13,988,425
Ltd. shares
Shenwan Hongyuan Securities (Hongkong) Domestically foreign
5,959,357 5,959,357
Co., Ltd. shares
China Merchants Securities Hong Kong Co., Domestically foreign
4,155,342 4,155,342
Ltd. shares
Domestically foreign
Li Huili 3,891,124 3,891,124
shares
Domestically foreign
Xu Hongbo 3,137,419 3,137,419
shares
Zong Bin 3,114,180 RMB common shares 3,114,180
Domestically foreign
Zeng Ying 3,000,000 3,000,000
shares
Specific account of property disposition for
1,383,313 RMB common shares 1,383,313
bankruptcy enterprise of CBC
Specific account of property disposition for Domestically foreign
1,219,089 1,219,089
bankruptcy enterprise of CBC shares
Expiation on associated relationship or Li Huili, the spouse of actual controller Ji Hanfei, holding B-share of the
consistent actors within the top 10 un-restrict Company on behalf of Shenzhen Guocheng Energy Investment Development
shareholders and between top 10 un-restrict Co., Ltd., beyond that, the Company has no idea of whether other circulated
35
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
shareholders and top 10 shareholders shareholders belong to concerted action persons ruled in the Administration
Norms for Information Disclosure of Change on Shareholding of Shareholders
of Listed Companies.
Explanation on top 10 shareholders involving
N/A
margin business (if applicable) (see note 4)
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no
buy-back agreement dealing in reporting period.
2. Controlling shareholder of the Company
Nature of controlling shareholders: natural person holding
Type of controlling shareholders: legal person
Legal
Controlling shareholders person/person in Date of foundation Organization code Main operation business
charge of the unit
Industry development,
domestic commerce,
Shenzhen Guocheng Energy
materials supply and sale
Investment Development Co., Ji Hanfei 2005-04-26 440301105151303
(excluding specially run,
Ltd.
controlled and sold
merchandises)
Equity of other
domestic/oversea listed
company control by controlling N/A
shareholder as well as
stock-joint in report period
Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
The Company had no changes of controlling shareholders in reporting period.
3. Actual controller of the Company
Nature of actual controller: domestic natural person
Type of actual controller: natural person
Whether obtained right of residence of other countries
Actual controller Nationality
or regions or not
Ji Hanfei P.R.C No
Profession and title in latest five years Legal person of Shenzhen Guocheng Energy Investment Development Co., Ltd.
36
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Listed company in and out of China
N/A
controlled in past decades
Changes of actual controller in reporting period
□ Applicable √ Not applicable
No changes of actual controllers for the Company in reporting period.
Property right and controlling relationship between the actual controller and the Company is as follow:
Note: On 21 February 2017, we received a Letter of “Explanation on Relevant Event of CBC” from Shenzhen Guosheng Energy
Investment Development Co., Ltd. the letter said: since obtained controlling rights of the Shenzhen Guosheng Energy Investment
Development Co., Ltd. (hereinafter referred to as Guosheng Energy) on 3 Jan. 2011, in view of Ji Hanfei is the first majority
shareholder and largest creditor of CBC, and CBC facing a serious debt crisis, Ji Hanfei initiative seeking an actual controller of
CBC, by actively participate the shareholders general meeting of CBC, showing major influence on CBC for achieving actually
controls of the Company in purpose of resolving the debt crisis.
On 11th, May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng Energy Investment and
Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the Company as the Company
couldn’t pay off the matured debts and was seriously insolvent. On 12th, Oct., 2012, Shenzhen Municipal Intermediate People's Court
ruled to accept the application proposed by Guosheng Energy according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil
ruling. In second half year of 2013, on the basis of the investor interest adjustment scheme deliberated and approved by creditor’s
meeting and investors’ conference, Shenzhen Intermediate People’s Court approved the reorganization plan for CBC, the
reorganization plan of CBC completed on 27 December 2013 and close the bankruptcy proceedings of CBC. As a largest majority
shareholder and largest creditor of the Company, Guosheng Energy vote in favor on creditor’s meeting and investors’ conference, in
respect of the investor interest adjustment scheme, and provided 5.39 million Yuan to CBC for claims settlement and maintain the
assets of main business of CBC. Debts of the CBC solved by reorganization, net assets of CBC turns to positive value, the main
business of bicycle maintained and achieved a steady development.
Currently, CBC is planning a private placement for business promotion and transformation, optimize asset structure, further to
strengthen the Company and sustainable ability in development. Taking into account the debt problem of CBC has been resolved, the
Company needs supports from all over the shareholders, and based on the actual condition of development of Guosheng Energy and
share-holding ratio, Ji Hanfei and Guosheng Energy decided to change the actually controller state to general investment, that is Ji
Hanfei and Guosheng Energy, will not participate in the operation management plan of CBC in future, and they have no plans to
37
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
seeking an actual controlling rights of CBC in next 12 months either
The Shenzhen Guosheng Energy Investment Development will hold stock of the CBC and exercise shareholders’ rights as a common
investor.
Actual controller controlling the Company by entrust or other assets management
□ Applicable √ Not applicable
4. Particulars about other legal person shareholders with over 10% shares held
□ Applicable √ Not applicable
5. Limitation and reducing the holdings of shares of controlling shareholders, actual controllers,
restructuring side and other commitment subjects
□ Applicable √ Not applicable
38
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period.
39
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Section VIII. Particulars about Directors, Supervisors, Senior
Executives and Employees
I. Changes of shares held by directors, supervisors and senior executives
Amoun Amoun
t of t of
Shares Shares
Start shares shares
End held at Other held at
Workin dated increas decreas
date of period-
Title Sex Age of period- changes
Name g status office ed in ed in
office end
term begin (share)
term this this
(Share) (Share)
period period
(Share) (Share)
Directo
Current
r, 2013-0 2016-0
Li Hai ly in M 48 0 0 0 0 0
Chairm 9-26 9-25
office
an
Current
Yang Directo 2013-0 2016-0
ly in M 60 0 0 0 0 0
Fenbo r 9-26 9-25
office
Current
Yao 2013-0 2016-0
Directo
Zheng ly in M 43 0 0 0 0 0
r 9-26 9-25
wang
office
Current
Cao Directo 2013-0 2016-0
ly in M 43 0 0 0 0 0
Fang r 9-26 9-25
office
Current
Kong Directo 2013-0 2016-0
ly in F 41 0 0 0 0 0
Na r 9-26 9-25
office
Current
Indepen 2013-0 2016-0
Cui Jun dent ly in M 53 0 0 0 0 0
director 9-26 9-25
office
Current
Indepen 2013-0 2016-0
Chen
dent ly in M 49 0 0 0 0 0
Shujun 9-26 9-25
director
office
Current
Indepen 2013-0 2016-0
Li Bing dent ly in F 42 0 0 0 0 0
director 9-26 9-25
office
Li Supervi Current
M 43 2014-0 2017-0 0 0 0 0 0
Xiang sor ly in
40
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
office 6-27 6-26
Current
Zheng 2014-0 2017-0
Supervi
Zhongh ly in M 55 6,267 0 0 0 6,267
sor 6-27 6-26
uan
office
Current
Staff 2014-0 2017-0
Li
Supervi ly in M 56 0 0 0 0 0
Jialin 6-27 6-26
sor
office
Sun Secreta Current
2013-0 2016-0
Longlo ry of ly in M 44 0 0 0 0 0
9-26 9-25
ng Board office
Total -- -- -- -- -- -- 6,267 0 0 0 6,267
II. Changes of directors, supervisors and senior executives
□ Applicable √ Not applicable
III. Post-holding
Professional background, major working experience and present main responsibilities in Company of directors, supervisors and
senior executive
1. Mr. Li Hai, born in 1969, graduated from Economic department of Shenzhen University in major of accounting; he took the turns
of deputy manager of finance department, chief supervisor associate of finance department, secretary of the Board and vice president,
etc. of the Company, and now he serves as chairman, legal representative and president of the Company.
2. Mr. Yang Fenbo, born in 1957, China senior economist with master degree of MBA and engineer, held the position of minister of
development department, concurrently minister of science and technology department, assistant general manager, assistant to
chairman, deputy chief engineer and chief engineer at Shenzhen Lionda Group; took the chairman and concurrently general manager
of Guangdong Sunrise Holding Co., Ltd.; now, he is the chairman of Shenzhen Liona Group Co., Ltd.
3. Mr. Yao Zhengwang, born in 1975, with bachelor degree of law, successively took the post of Supervisor of Supervision Office,
Deputy Manager of Sales Department, and Deputy Manager of Legal Affairs Department of Shenzhen Guomin Investment
Development Co. Ltd. and deputy general manager of Administration Center of Compliant Risk Control, as well as director, secretary
of the Board and convener of supervisory committee of CBC; now he serves as director of the Company.
4. Mr. Cao Fang, born in 1974, master degree; since May of 2007, he took post of item manager of marketing and management
department in headquarter of Life Insurance, associate of general manager of marketing and management headquarter as well as
general manager of market and business department, he acted as member of planning team of Life Insurance Branch in Guangdong.
And subsequently served in strategy and development center, Office of the Chairman, Supervision office; he serves as deputy GM of
Shanghai Branch of Life Insurance since March 2012.
5. Ms. Kong Na, born in 1976, master degree; From Sep. of 2005 to Apr. of 2010, he took post of Assistant Chief Executive in
Ruifude Health Insurance Holding Co., Ltd. From Apr. of 2010 till now, he is in charge of associate of president in Yingkong Holding
Co., Ltd.
6. Mr. Cui Jun, born in1964, party member of CPC, doctor of engineering, master of law and a first-grade lawyer; once he took posts
of director of the 5th session of nationwide lawyers association, director of the 8th session and the 9th session of Guangdong lawyer
association, vice president of the 5th and the 6th session of Shenzhen lawyers association, committee of international business
commission of nationwide lawyers association, deputy director of law business of intellectual property commission of Guangdong
41
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
lawyers association, director of civil law business commission of Guangdong lawyers association and director of culture construction
committee of Guangdong lawyers association. And now he is director of Guangdong Xingchen Law Firm, member of the CPPCC
Shenzhen Committee, committee of law business of intellectual property commission of nationwide lawyers association, executive
vice president of Shenzhen Patent Commission, vice president of Shenzhen promotion commission of creative design and intellectual
property, arbitrator of mediation center of south China International economy and trade arbitration commission, mediation expert of
mediation center and arbitrator of Shenzhen arbitration commission.
7. Mr. Chen Shujun, born in1968, master of the Chinese University of Hong Kong, majoring in business administration of finance,
master of international accountant from City University of Hong Kong and he owes a university degree from law school of Tsinghua
University. And he is senior accountant, China Certified Accountant, Chinese Certified Tax Agent, judicial authenticator and owes
professional qualification of state laws; served as the legislative consultants of standing committee of Guangdong Province 12th
session of the National People’s Congress, government procurement review expert of Shenzhen Municipal Finance Committee,
Science and technology expert of Shenzhen Municipal Science & Technology Committee of Experts, Director of the eight Shenzhen
Institute of accounting and Deputy director of the Expert Committee on accounting standards of enterprises in Shenzhen, Member of
the five Shenzhen Institute of Certified Public Accountants in the development of small and medium firms, and Vice president of the
second session Accounting Society of Futian District Shenzhen. He once took post of auditor and manager of Guangzhou CPAs.
From 1998 till now he acted as executive partner of Shenzhen Guangzhou-Shenzhen CPAs, legal representative of Guangdong
Guangzhou-Shenzhen Justice and Accounting judgment institution. And also independent director of Chiwan Base-B, Funde
Insurance Holding and Funde P&C, director of Vengood E-commerce and Cybemaut Yingke. And he served as independent director
of the Company since August 2010.
8. Ms. Li Bing, born in 1975, bachelor of law major and lawyer; From Jul. of 1998 to Jan. of 2002 she taught in Guizhou University;
from Jan. of 2002 to Jan. of 2006 she acted as lawyer in Guangdong Yunsheng Law Firm; from Jan. of 2006 till now, she had been in
charge of lawyer of Beijing Deheng Law Firm Branch in Shenzhen.
9. Mr. Li Xiang, born in 1974, a master degree, and he used to serve as organ secretary, director-general of the organization
department, manager of H&R dept. of Jiangxi Branch of Pacific Life. He serves as deputy GM of Shenzhen Guosheng Energy
Investment Development Co., Ltd. since March 2008.
10. Mr. Zheng Zhonghuan, born in 1962, engineer with bachelor degree, successively took the post in Shenzhen Light Textile
Industry Company and Shenzhen Light Industry Company; since Oct. 1985, worked in Shenzhen China Bicycle (Group) Holdings
Co. Ltd. and successively took the post of Deputy Manager, Manager of Planning Department, Manager of Material Department and
manufacturing dept.; now he is the supervisor of the Company and Manager of Purchasing Department of the Shenzhen Emmelle
Industry Co., Ltd.
11. Mr. Li Jialin, born in 1961, a master degree with a title of senior engineer. He successively served as senior engineer of the
Company in electrical & mechanical engineering division, GM assistant of Hunan Guangdian Motorcycle Company, manager of the
Company in H&R Dept. now he serves as commissioner of comprehensive office of the Company and person in charge of the labor
union.
12. Mr. Sun Longlong, born in 1973, graduated from Shanghai University of Finance and Economics in 1995 with a bachelor degree,
a bachelor of Economics. He successively worked as financial affairs in Shenzhen Qiongjiao Industry Co., Ltd. and Shenzhen Solar
Pipe Co., Ltd., he worked in the Company since May 1999, and successively served as Deputy Manager of financial department,
manager of comprehensive management department, manager of enterprise management department, now he serves as secretary of
the Board and manager of financial department of the Company.
Post-holding in shareholder’s unit
√Applicable □ Not applicable
Start dated of End date of
Name Name of shareholder’s unit Position in Received
office term office term
42
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
shareholder remuneration
’s unit n from
shareholder’s
unit (Y/N)
Yao Shenzhen Guocheng Energy Investment
Supervisor 2006-10-09 Y
Zhengwang Development Co., Ltd.
Note of
post-holding
in N/A
shareholder’s
unit
Post-holding in other unit
√Applicable □ Not applicable
Received
Position in Start dated of End date of remuneration
Name Name of other units
other unit n office term office term from other unit
(Y/N)
Cao Fang Shanghai Branch of Life Insurance Deputy GM 2012-03-01 Y
Yang Fenbo Shenzhen Lionda Group Co., Ltd. Chairman 2009-10-12 Y
Non-staff
Yang Fenbo Fawer Auto Parts Co., ltd. 2013-03-25 2016-03-24 Y
supervisor
President
Kong Na Yingkong Holding Co., Ltd. 2010-04-01 Y
assistant
Cui Jun Guangdong Ange Laws Firm Attorney 2014-06-01 Y
Managing
Chen Shujun Shenzhen Guangshen CPA 1998-01-01 Y
partner
Legal
Guangdong Guangshen Judicial
Chen Shujun representati 2002-12-01 N
Accounting Appraisal Institute
ve
Independen
Chen Shujun Shenzhen Chiwan Base Co., Ltd. 2013-05-20 Y
t director
Independen
Chen Shujun Funde Insurance Holding Co., Ltd. 2015-07-01 2018-07-01 Y
t director
Independen
Chen Shujun Funde P&C Co., Ltd. 2015-06-04 2018-06-04 Y
t director
Chen Shujun Vengood E-commerce Director 2016-01-26 2019-01-26 N
Chen Shujun Cybemaut Yingke Director 2016-02-26 2019-02-26 N
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
43
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
□ Applicable √ Not applicable
IV. 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 RMB 1,556,687 from January to December in 2016.
management
Remuneration for directors, supervisors and senior executives in reporting period
In 10 thousand Yuan
Total Whether
remuneration remuneration
Post-holding
Name Title Sex Age obtained from the obtained from
status
Company (before related party of
taxes) the Company
Currently in
Li Hai Chairman M 48 80.6 No
office
Secretary of Currently in
Sun Longlong M 44 30.94 No
Board office
Currently in
Li Jialin Staff Supervisor M 56 15.7 No
office
Zheng Currently in
Supervisor M 55 14.14 No
Zhonghuan office
Independent Currently in
Cui Jun M 53 4.76 No
director office
Independent Currently in
Chen Shujun M 49 4.76 No
director office
Independent Currently in
Li Bing F 42 4.76 No
director office
Total -- -- -- -- 155.66 --
Delegated equity incentive for directors, supervisors and senior executives in reporting period
44
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
□ Applicable √ Not applicable
V. Particulars of workforce
1. Number of Employees, Professional composition, Education background
Employee in-post of the parent Company (people) 10
Employee in-post of main Subsidiaries (people) 43
The total number of current employees (people) 53
The total number of current employees to receive pay (people) 53
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 19
Sales personnel 11
Technical personnel 8
Financial personnel 6
Administrative personnel 9
Total 53
Education background
Category of education background Numbers (people)
Undergraduate 19
Junior college 17
Other 17
Total 53
2. Remuneration Policy
Nil
3. Training programs
Nil
4. Labor outsourcing
□ Applicable√ Not applicable
45
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Section IX. Corporate Governance
I. Corporate governance of the Company
During the reporting period, the Company was strictly in accordance with the "Company Law", "Securities Law" as well as "Listing
Corporation Management Standards" and other relevant laws, regulations and normative documents. We combined the actual
situation, constantly improved the corporate governance structure, and strived to build a modern enterprise system. Operation,
assembling and holding of general meeting of shareholders, the Board of Directors and board of supervisors were strictly with
relevant rules of procedure. Thus we protected interests of the Company. The actual situation of corporate governance structure was
in accordance with the release of normative documents about the listing Corporation management rules from China Securities
Regulatory Commission.
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. Independency of the Company relative to controlling shareholders’ in aspect of businesses,
personnel, assets, organization and finance
The Company separate business, personnel, assets, institute and finance with largest shareholder or other related parties, owes
independent and completed self-operation ability.
III. Horizontal competition
□ Applicable √ Not applicable
IV. In the report period, the Company held annual shareholders’ general meeting and
extraordinary shareholders’ general meeting
1. Annual Shareholders’ General Meeting in the report period
Ratio of
Index of
Session of meeting Type investor Date Date of disclosure
disclosure
participation
Notice of
first Extraordinary
Extraordinary Resolution of first
shareholders
shareholders 12.78% 2016-02-03 2016-02-04 Extraordinary
general meeting
general meeting shareholders
2016
general meeting
46
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
2016 (No.:
2016005)
Notice of
Resolution of
Annual General Annual General
12.38% 2016-06-29 2016-06-30 Annual General
Meeting 2015 Meeting
Meeting 2015
(No.: 2016016)
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
V. Responsibility performance of independent directors
1. The attending of independent directors to Board meetings and general meeting
The attending of independent directors to Board Meeting
Times of Absent the
Times of
Name of Board meeting Times of Meeting for
Times of attending by Times of
independent supposed to entrusted the second
Presence communicatio Absence
director attend in the presence time in a row
n
report period (Y/N)
Cui Jun 7 2 5 0 0 N
Chen Shujun 7 2 5 0 0 N
Li Bing 7 2 5 0 0 N
Times for attending general meeting
3
from independent directors
Explanation of absent the Board Meeting for the second time in a row
Nil
2. Objection for relevant events from independent directors
Independent directors come up with objection about Company’s relevant matters
□Yes √No
Independent directors has no objections for relevant events in reporting period
3. Other explanation about responsibility performance of independent directors
The opinions from independent directors have been adopted
√ Yes □ No
Explanation on advice that accepted/not accepted from independent directors
Nil
47
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
VI. Duty performance of the special committees under the board during the reporting period
Board of directors set up audit commission and remuneration and appraisal commission taking responsibility based on Governance
Rules of Listed Company, Article of Association as well as Procedure Rules of Board of Directors and other duties and rights various
departments endowed.
As for compiling and audit on annual financial report were checked and communicated by Audit commission in accordance with
rules of Working Procedure of Annual Report of Audit Commission, and they submitted decision to board of directors for approval.
Remuneration and appraisal commission of the Company, in reporting period, according to the “Interim Measure on Assessment
Reward of Annual Performance for Senior Executives”, carry out evaluation on the management team members for operation works
in 2015.
VII. 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
VIII. Examination and incentives of senior management
The Company initially established the standard and incentive mechanism for open and transparent performance evaluation on
directors, supervisors and management layer. The appointment of senior management staff was open and transparent, in accordance
with provisions of the law.
IX. Internal Control
1. Details of major defects in IC appraisal report that found in reporting period
□Yes √ No
2. Appraisal Report of Internal Control
Disclosure date of full internal control
2017-04-27
evaluation report
Disclosure index of full internal control
Appraisal Report of Internal Control 2016 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 100.00%
accounting for the operating income on
48
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
the company's consolidated financial
statements
Defects Evaluation Standards
Category Financial Reports Non-financial Reports
Material defect: (1) inefficiency of
environment control; (2) inefficiency
Material defect: (1) inefficiency of
of internal supervision; (3) direct
environment control; (2) inefficiency of
impact on major mistakes of
internal supervision; (3) direct impact on
investment decisions; (4) directly
major mistakes of investment decisions;
make the significant error in the
(4) directly make the significant error in
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
business license and being forced the
license and being forced the closure of etc.
closure of etc. Major defect: (1)
Qualitative criteria Major defect: (1) indirect impact on major
indirect impact on major mistakes of
mistakes of investment decisions; (2)
investment decisions; (2) indirectly
indirectly make the significant error in the
make the significant error in the
financial statements; (3) Lack of important
financial statements; (3) Lack of
system; (4) violation of the laws,
important system; (4) violation of the
regulations, rules and other normative
laws, regulations, rules and other
documents, resulting in investigation of
normative documents, resulting in
the local government and regulatory
investigation of the local government
agencies, and being sentenced to a fine or
and regulatory agencies, and being
penalty, and being ordered to suspend
sentenced to a fine or penalty, and
business for rectification and cause the
being ordered to suspend business for
Company’s business stop of etc. General
rectification and cause the Company’s
defect: other control defect besides
business stop of etc. General defect:
material defect and major defect.
other control defect besides material
defect and major defect.
1. Potential loss or potential error of total 1. Potential loss or potential error of
profit: (1) General defect: less than or total profit: (1) General defect: less
equal to pre-tax total profit of 3%, (2) than or equal to pre-tax total profit of
Major defect: more than pre-tax total 3%, (2) Major defect: more than
Quantitative standard profit of 3%( and absolute amount more pre-tax total profit of 3%( and absolute
than RMB 0.5 million), (3) Material amount more than RMB 0.5 million),
defect:: more than 5% of pre-tax total (3) Material defect:: more than 5% of
profit and absolute amount more than pre-tax total profit and absolute
RMB 1 million; 2. Potential loss or amount more than RMB 1 million; 2.
49
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
potential error of operating income: (1) Potential loss or potential error of
General defect: less than or equal to operating income: (1) General defect:
operating income of 1%, (2) Major defect: less than or equal to operating income
more than 1% of operating income and of 1%, (2) Major defect: more than 1%
less than or equal to 3% of operation of operating income and less than or
income, (3) Material defect:: more than equal to 3% of operation income, (3)
3% of operating income; 3. Potential loss Material defect:: more than 3% of
or potential error of total assets: (1) operating income; 3. Potential loss or
General defect: less than or equal to 1% of potential error of total assets: (1)
total assets, (2) Major defect: more than General defect: less than or equal to
1% of total profit and less than or equal to 1% of total assets, (2) Major defect:
3% of total profit, (3) Material defect:: more than 1% of total profit and less
more than 3% of total profit than or equal to 3% of total profit, (3)
Material defect:: more than 3% of total
profit
Amount of significant defects in
0
financial reports
Amount of significant defects in
0
non-financial reports
Amount of important defects in financial
0
reports
Amount of important defects in
0
non-financial reports
X. Auditing report of internal control
√Applicable □ Not applicable
Deliberations in Internal Control Audit Report
We considers that China Bicycle Company (Holdings) Limited, in line with Basic Norms of Internal Control and relevant
regulations, shows an effectiveness internal control of financial report in all major aspects dated 31 December 2016.
Disclosure details of audit report of
Disclosed
internal control
Disclosure date of audit report of
2017-04-27
internal control (full-text)
Index of audit report of internal Audit Report of Internal Control for year of 2016 of CBC Baker Tilly Zi [2017]
control (full-text) No.11696 released on Juchao Website
Opinion type of auditing report of IC Normal auditor’s report
Whether the non-financial report had
No
major defects
Carried out modified opinion for internal control audit report from CPA
□Yes √ No
50
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
The internal control audit report, issued by CPA, has concerted opinion with self-evaluation report, issued from the Board
√ Yes □ No
51
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Section X. Corporation Bonds
Whether or not the Company public offering corporation bonds in stock exchange, which undue or without payment in full at
maturity on the approval date for annual report disclosed
No
52
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Section XI. Financial Report
I. Audit report
Type of audit opinion Unqualified auditor’s report with explanatory paragraph
Signing date of audit report 2017-04-25
Name of audit institute Baker Tilly China CPA (LLP)
Number of audit report Baker Tilly Zi [2017] No.: 11664
Name of CPA Chen Zhigang, Zhang Lei
Text of auditor’s Report
To all shareholders of Shenzhen China Bicycle Company (Holdings) Limited
We have audited the Company consolidated and parent Company’s financial statements of Shenzhen China Bicycle Company
(Holdings) Limited (“CBC”), including balance sheet of 31 December 2016 and consolidated balance sheet, and profit statement for
year of 2016 and consolidated profit statement, Statement of changes in stockholders' equity and Consolidated statement of changes
in stockholders' equity and cash flow statement and consolidated cash flow statement, and notes to the financial statements for 2016.
I. Management’s responsibility for the financial statements
Management of the Company is responsible for prepare and present financial statement of the Company, which including: (1)
Prepare financial statements with fair presentation in line with Accounting Standards for Business Enterprises; (2) Designing,
executed and maintaining necessary internal control in order to prevent fundamental miscarrying in financial statement from
fraudulent or errors.
II. Auditor's responsibility
Our responsibility is to express an audit opinion on these financial statements based on our audit. We performed our audit in
accordance with Chinese Certified Public Accountants' Auditing Standards. Those standards require us to comply with professional
ethics, and to plan and perform our audit so as to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures of the financial statements. The
selective audit procedures depend on auditor's judgment, including the evaluation of the risk of material misstatement of the
consolidated financial statements due to frauds or errors. When evaluating risk, we consider internal control related to financial
statements, in order to design auditing procedures. An audit also includes assessing the appropriateness of the accounting policies
adopted and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
We believe that we have obtained sufficient and appropriate audit evidences to provide a basis for our audit opinion.
III. Auditing opinion
53
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
In our opinion, in all material aspects, CBC’s financial statements have been prepared in accordance with the Enterprises Accounting
Standards and Enterprises Accounting System, and they fairly present the financial status of the consolidated and parent company’s
as of December 31, 2016, and its operation results and cash flows for the year ended.
IV. Emphasis of Matter
We bring to the attention of the users of the financial statements, as stated in note XIV of the financial statements under the name of
CBC, China Bicycle Company has completed implementation of the restructuring plan dated 27 December 2013 and terminate the
bankruptcy proceedings, in which the condition of introduction of investors has been set out with a view to restoring its ability to
continue as a going concern and its sustainable profitability through asset restructuring. Up to the reporting date of auditing, the
Company has not introduced any investor, but retained the business of bicycles so as to maintain its ability to continue as a going
concern before the injection of assets by investors. Therefore, there is uncertainty in the ability of China Bicycle Company to continue
as a going concern, and it is stressed that the published opinions on auditing will not be impacted by the subject matter.
II. Financial statement
Unit in note of financial statement refers to CNY: RMB (Yuan)
1. Consolidated Balance Sheet
Prepared by Shenzhen China Bicycle Company (Holdings) Limited
2016-12-31
In RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 24,015,287.71 26,752,065.66
Settlement provisions
Capital lent
Financial assets measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes receivable 2,220,000.00
Accounts receivable 12,371,386.82 9,195,296.32
Accounts paid in advance 1,867,424.89 397,833.20
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Interest receivable
Dividend receivable
54
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Other receivables 658,754.09 395,523.78
Purchase restituted finance asset
Inventories 3,118,440.26 4,057,247.68
Divided into assets held for sale
Non-current asset due within one
year
Other current assets 2,050,830.55 209,155.59
Total current assets 46,302,124.32 41,007,122.23
Non-current assets:
Loans and payments on behalf
Finance asset available for sales
Held-to-maturity investment
Long-term account receivable
Long-term equity investment
Investment property
Fixed assets 3,728,955.11 1,007,906.43
Construction in progress
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 3,012,000.00 3,765,000.00
Expense on Research and
Development
Goodwill
Long-term expenses to be
apportioned
Deferred income tax asset 645,196.29 89,066.31
Other non-current asset 400,000.00
Total non-current asset 7,786,151.40 4,861,972.74
Total assets 54,088,275.72 45,869,094.97
Current liabilities:
Short-term loans
Loan from central bank
Absorbing deposit and interbank
deposit
Capital borrowed
55
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes payable
Accounts payable 9,751,977.78 7,787,813.83
Accounts received in advance 4,321,059.83 2,024,718.30
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 770,985.97 1,384,667.20
Taxes payable 1,565,153.77 1,271,303.96
Interest payable
Dividend payable
Other accounts payable 20,397,287.32 20,010,360.36
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Divided into liability held for sale
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 36,806,464.67 32,478,863.65
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital
securities
Long-term account payable
Long-term wages payable
Special accounts payable
Projected liabilities
Deferred income
Deferred income tax liabilities
56
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Other non-current liabilities
Total non-current liabilities
Total liabilities 36,806,464.67 32,478,863.65
Owner’s equity:
Share capital 551,347,947.00 551,347,947.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital public reserve 627,834,297.85 627,834,297.85
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus public reserve 32,673,227.01 32,673,227.01
Provision of general risk
Retained profit -1,197,486,788.28 -1,200,090,425.75
Total owner’s equity attributable to
14,368,683.58 11,765,046.11
parent company
Minority interests 2,913,127.47 1,625,185.21
Total owner’s equity 17,281,811.05 13,390,231.32
Total liabilities and owner’s equity 54,088,275.72 45,869,094.97
Legal Representative: Li Hai Person in charge of Accounting Works: Sun Longlong
Person in charge of Accounting Institution: Zhong Xiaojin
2. Balance Sheet of Parent Company
In RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 1,143,418.29 1,199,934.09
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes receivable
Accounts receivable
57
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Account paid in advance 16,000.00 82,848.00
Interest receivable
Dividends receivable
Other receivables 9,364,086.29 12,579,547.00
Inventories
Divided into assets held for sale
Non-current assets maturing within
one year
Other current assets 2,050,830.55
Total current assets 12,574,335.13 13,862,329.09
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term receivables
Long-term equity investments 10,379.73 10,379.73
Investment property
Fixed assets 3,528,684.59 740,727.77
Construction in progress
Project materials
Disposal of fixed assets
Productive biological assets
Oil and natural gas assets
Intangible assets 3,012,000.00 3,765,000.00
Research and development costs
Goodwill
Long-term deferred expenses
Deferred income tax assets
Other non-current assets 400,000.00
Total non-current assets 6,951,064.32 4,516,107.50
Total assets 19,525,399.45 18,378,436.59
Current liabilities:
Short-term borrowings
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
58
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Derivative financial liability
Notes payable
Accounts payable
Accounts received in advance 1,086,507.70
Wage payable 112,700.06 290,130.11
Taxes payable 81,512.92 -278,741.70
Interest payable
Dividend payable
Other accounts payable 10,662,912.89 10,383,721.15
Divided into liability held for sale
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 11,943,633.57 10,395,109.56
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital
securities
Long-term account payable
Long-term wages payable
Special accounts payable
Projected liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 11,943,633.57 10,395,109.56
Owners’ equity:
Share capita 551,347,947.00 551,347,947.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
59
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Capital public reserve 627,834,297.85 627,834,297.85
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus reserve 32,673,227.01 32,673,227.01
Retained profit -1,204,273,705.98 -1,203,872,144.83
Total owner’s equity 7,581,765.88 7,983,327.03
Total liabilities and owner’s equity 19,525,399.45 18,378,436.59
3. Consolidated Profit Statement
In RMB
Item Current Period Last Period
I. Total operating income 141,970,520.80 170,990,030.10
Including: Operating income 141,970,520.80 170,990,030.10
Interest income
Insurance gained
Commission charge and commission
income
II. Total operating cost 137,756,603.41 171,370,550.82
Including: Operating cost 126,243,374.59 159,399,271.88
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
Operating tax and extras 325,097.98 431,067.18
Sales expenses 5,547,948.66 6,515,605.90
Administration expenses 5,705,338.80 5,391,566.14
Financial expenses -577,245.96 -675,198.21
Losses of devaluation of asset 512,089.34 308,237.93
60
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Add: Changing income of fair
value(Loss is listed with “-”)
Investment income (Loss is listed
with “-”)
Including: Investment income on
affiliated company and joint venture
Exchange income (Loss is listed
with “-”)
III. Operating profit (Loss is listed with
4,213,917.39 -380,520.72
“-”)
Add: Non-operating income 4,421,353.01 4,210,594.98
Including: Disposal gains of
non-current asset
Less: Non-operating expense 3,837,082.24 3,841,393.90
Including: Disposal loss of
11,450.00
non-current asset
IV. Total Profit (Loss is listed with “-”) 4,798,188.16 -11,319.64
Less: Income tax expense 906,608.43 94,609.13
V. Net profit (Net loss is listed with “-”) 3,891,579.73 -105,928.77
Net profit attributable to owner’s of
2,603,637.47 -138,355.58
parent company
Minority shareholders’ gains and
1,287,942.26 32,426.81
losses
VI. Net after-tax of other comprehensive
income
Net after-tax of other comprehensive
income attributable to owners of parent
company
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1. Changes as a result of
re-measurement of net defined benefit
plan liability or asset
2. Share of the other
comprehensive income of the investee
accounted for using equity method which
will not be reclassified subsequently to
profit and loss
61
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1. Share of the other
comprehensive income of the investee
accounted for using equity method which
will be reclassified subsequently to profit
or loss
2. Gains or losses arising
from changes in fair value of
available-for-sale financial assets
3. Gains or losses arising
from reclassification of held-to-maturity
investment as available-for-sale financial
assets
4. The effect hedging portion
of gains or losses arising from cash flow
hedging instruments
5. Translation differences
arising on translation of foreign currency
financial statements
6. Other
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income 3,891,579.73 -105,928.77
Total comprehensive income
2,603,637.47 -138,355.58
attributable to owners of parent Company
Total comprehensive income
1,287,942.26 32,426.81
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0047 -0.0003
(ii) Diluted earnings per share 0.0047 -0.0003
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and
realized 0 Yuan at last period for combined party
Legal Representative: Li Hai Person in charge of Accounting Works:Sun Longlong
Person in charge of Accounting Institution: Zhong Xiaojin
4. Profit Statement of Parent Company
In RMB
62
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Item Current Period Last Period
I. Operating income 3,098,499.93 3,183,534.28
Less: Operating cost 841,722.06 1,183,430.55
Operating tax and extras 27,518.91 154,451.03
Sales expenses
Administration expenses 3,193,033.58 2,412,060.36
Financial expenses 1,047.32 2,372.72
Losses of devaluation of asset 205.16 -39.00
Add: Changing income of fair
value(Loss is listed with “-”)
Investment income (Loss is
listed with “-”)
Including: Investment income
on affiliated company and joint venture
II. Operating profit (Loss is listed
-965,027.10 -568,741.38
with “-”)
Add: Non-operating income 4,382,819.19 4,210,594.98
Including: Disposal gains of
non-current asset
Less: Non-operating expense 3,819,353.24 3,836,923.90
Including: Disposal loss of
non-current asset
III. Total Profit (Loss is listed with
-401,561.15 -195,070.30
“-”)
Less: Income tax expense 18,947.82
IV. Net profit (Net loss is listed with
-401,561.15 -214,018.12
“-”)
V. Net after-tax of other comprehensive
income
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1. Changes as a result of
re-measurement of net defined benefit
plan liability or asset
2. Share of the other
comprehensive income of the investee
accounted for using equity method
63
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
which will not be reclassified
subsequently to profit and loss
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1. Share of the other
comprehensive income of the investee
accounted for using equity method
which will be reclassified subsequently
to profit or loss
2. Gains or losses arising
from changes in fair value of
available-for-sale financial assets
3. Gains or losses arising
from reclassification of held-to-maturity
investment as available-for-sale
financial assets
4. The effect hedging
portion of gains or losses arising from
cash flow hedging instruments
5. Translation differences
arising on translation of foreign
currency financial statements
6. Other
VI. Total comprehensive income -401,561.15 -214,018.12
VII. Earnings per share:
(i) Basic earnings per share -0.0007 -0.0004
(ii) Diluted earnings per share -0.0007 -0.0004
5. Consolidated Cash Flow Statement
In RMB
Item Current Period Last Period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 68,626,103.30 93,016,514.64
services
Net increase of customer deposit
and interbank deposit
64
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
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
Net increase of amount from
disposal financial assets that measured
by fair value and with variation
reckoned into current gains/losses
Cash received from interest,
commission charge and commission
Net increase of capital borrowed
Net increase of returned business
capital
Write-back of tax received
Other cash received concerning
6,964,305.79 7,025,026.01
operating activities
Subtotal of cash inflow arising from
75,590,409.09 100,041,540.65
operating activities
Cash paid for purchasing
commodities and receiving labor 52,408,715.86 80,757,205.50
service
Net increase of customer loans and
advances
Net increase of deposits in central
bank and interbank
Cash paid for original insurance
contract compensation
Cash paid for interest, commission
charge and commission
Cash paid for bonus of guarantee
slip
Cash paid to/for staff and workers 6,815,927.35 6,970,654.49
Taxes paid 4,415,626.99 4,102,934.63
65
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Other cash paid concerning
11,315,692.88 11,239,769.85
operating activities
Subtotal of cash outflow arising from
74,955,963.08 103,070,564.47
operating activities
Net cash flows arising from operating
634,446.01 -3,029,023.82
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
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from investing
activities
Cash paid for purchasing fixed,
3,371,224.00 382,777.30
intangible and other long-term assets
Cash paid for investment
Net increase of mortgaged loans
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
3,371,224.00 382,777.30
activities
Net cash flows arising from investing
-3,371,224.00 -382,777.30
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Including: Cash received from
absorbing minority shareholders’
66
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
investment by subsidiaries
Cash received from loans
Cash received from issuing bonds
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
activities
Cash paid for settling debts
Cash paid for dividend and profit
distributing or interest paying
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
Other cash paid concerning
financing activities
Subtotal of cash outflow from financing
activities
Net cash flows arising from financing
activities
IV. Influence on cash and cash
equivalents due to fluctuation in 0.04
exchange rate
V. Net increase of cash and cash
-2,736,777.95 -3,411,801.12
equivalents
Add: Balance of cash and cash
26,752,065.66 30,163,866.78
equivalents at the period -begin
VI. Balance of cash and cash
24,015,287.71 26,752,065.66
equivalents at the period -end
6. Cash Flow Statement of Parent Company
In RMB
Item Current Period Last Period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 38,250.00
services
Write-back of tax received
67
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Other cash received concerning
12,374,972.68 12,679,197.51
operating activities
Subtotal of cash inflow arising from
12,374,972.68 12,717,447.51
operating activities
Cash paid for purchasing
commodities and receiving labor 41,556.80 824,576.60
service
Cash paid to/for staff and workers 1,887,544.36 2,574,126.10
Taxes paid 488,133.49 1,050,776.71
Other cash paid concerning
6,643,029.87 8,208,908.80
operating activities
Subtotal of cash outflow arising from
9,060,264.52 12,658,388.21
operating activities
Net cash flows arising from operating
3,314,708.16 59,059.30
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
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from investing
activities
Cash paid for purchasing fixed,
3,371,224.00 222,222.22
intangible and other long-term assets
Cash paid for investment
Net cash received from
subsidiaries and other units
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing 3,371,224.00 222,222.22
68
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
activities
Net cash flows arising from investing
-3,371,224.00 -222,222.22
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Cash received from loans
Cash received from issuing bonds
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
activities
Cash paid for settling debts
Cash paid for dividend and profit
distributing or interest paying
Other cash paid concerning
financing activities
Subtotal of cash outflow from financing
activities
Net cash flows arising from financing
activities
IV. Influence on cash and cash
equivalents due to fluctuation in 0.04
exchange rate
V. Net increase of cash and cash
-56,515.80 -163,162.92
equivalents
Add: Balance of cash and cash
1,199,934.09 1,363,097.01
equivalents at the period -begin
VI. Balance of cash and cash
1,143,418.29 1,199,934.09
equivalents at the period -end
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
69
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
This Period
Owners’ equity attributable to parent company
Other
equity instrument
Item Less: Other Provisio Minorit Total
Perpet Reason
Share Capital Invento compre Surplus n of Retaine y owners’
ual able
capital Prefer reserve ry hensive reserve general d profit interests equity
capita reserve
red Other shares income risk
l
stock
securi
ties
551,34 -1,200,0
I. Balance at the 627,834 32,673, 1,625,1 13,390,
7,947. 90,425.
end of the last year ,297.85 227.01 85.21 231.32
00 75
Add:
Changes of
accounting policy
Error
correction of the
last period
Enterprise
combine under
the same control
Other
II. Balance at the 551,34 -1,200,0
627,834 32,673, 1,625,1 13,390,
beginning of this 7,947. 90,425.
,297.85 227.01 85.21 231.32
year 00 75
III. Increase/
Decrease in this 2,603,6 1,287,9 3,891,5
year (Decrease is 37.47 42.26 79.73
listed with “-”)
(i) Total 2,603,6 1,287,9 3,891,5
comprehensive
37.47 42.26 79.73
income
(ii) Owners’
devoted and
decreased capital
1.Common shares
invested by
shareholders
2. Capital invested
by holders of other
equity instruments
3. Amount
reckoned into
owners equity with
share-based
payment
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
4. Other
(III) Profit
distribution
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
provisions
3. Distribution for
owners (or
shareholders)
4. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital reserves
conversed to
capital (share
capital)
2. Surplus reserves
conversed to
capital (share
capital)
3. Remedying loss
with surplus
reserve
4. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
(VI)Others
IV. Balance at the 551,34 -1,197,4
627,834 32,673, 2,913,1 17,281,
end of the report 7,947. 86,788.
,297.85 227.01 27.47 811.05
period 00 28
Last Period
In RMB
Last Period
Owners’ equity attributable to parent company
Other Minorit
Item Less: Other Provisio Total
equity instrument Reason y
Share Capital Invento compre Surplus n of Retaine interest owners’
able equity
capital Prefer Perpet reserve ry hensive reserve general d profit s
red ual Other reserve
shares income risk
stock capita
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
l
securi
ties
551,34 -1,199,9
I. Balance at the 627,834 32,673, 1,592,7 13,496,
7,947. 52,070.
end of the last year ,297.85 227.01 58.40 160.09
00 17
Add:
Changes of
accounting policy
Error
correction of the
last period
Enterprise
combine under
the same control
Other
II. Balance at the 551,34 627,834 32,673,
-1,199,9
1,592,7 13,496,
beginning of this 7,947. 52,070.
,297.85 227.01 58.40 160.09
year 00 17
III. Increase/
Decrease in this -138,35 32,426. -105,92
year (Decrease is 5.58 81 8.77
listed with “-”)
(i) Total -138,35 32,426. -105,92
comprehensive
5.58 81 8.77
income
(ii) Owners’
devoted and
decreased capital
1.Common shares
invested by
shareholders
2. Capital invested
by holders of other
equity instruments
3. Amount
reckoned into
owners equity with
share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
provisions
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
3. Distribution for
owners (or
shareholders)
4. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital reserves
conversed to
capital (share
capital)
2. Surplus reserves
conversed to
capital (share
capital)
3. Remedying loss
with surplus
reserve
4. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
(VI)Others
IV. Balance at the 551,34 -1,200,0
627,834 32,673, 1,625,1 13,390,
end of the report 7,947. 90,425.
,297.85 227.01 85.21 231.32
period 00 75
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
This Period
Other
equity instrument
Other Total
Item Share Perpetu Less: Retaine
Capital comprehe Reasonab Surplus
al Inventory owners’
capital Preferre reserve nsive le reserve reserve d profit
capital Other shares equity
d stock income
securiti
es
-1,203,8
I. Balance at the 551,347, 627,834,2 32,673,22 7,983,327
72,144.
end of the last year 947.00 97.85 7.01 .03
83
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Add: Changes
of accounting
policy
Error
correction of the
last period
Other
II. Balance at the 551,347, -1,203,8
627,834,2 32,673,22 7,983,327
beginning of this 72,144.
947.00 97.85 7.01 .03
year 83
III. Increase/
Decrease in this -401,56 -401,561.
year (Decrease is 1.15 15
listed with “-”)
(i) Total -401,56 -401,561.
comprehensive
1.15 15
income
(ii) Owners’
devoted and
decreased capital
1.Common shares
invested by
shareholders
2. Capital invested
by holders of other
equity instruments
3. Amount
reckoned into
owners equity with
share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal of
surplus reserves
2. Distribution for
owners (or
shareholders)
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital reserves
conversed to
capital (share
capital)
2. Surplus reserves
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
conversed to
capital (share
capital)
3. Remedying loss
with surplus
reserve
4. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
(VI)Others
IV. Balance at the 551,347, -1,204,2
627,834,2 32,673,22 7,581,765
end of the report 73,705.
947.00 97.85 7.01 .88
period 98
Last period
In RMB
Last period
Other
equity instrument
Other Total
Item Perpetu Less:
Share Capital comprehe Reasonab Surplus Retaine
al Inventory owners’
capital Preferre reserve nsive le reserve reserve d profit
capital Other shares equity
d stock income
securiti
es
-1,203,6
I. Balance at the 551,347, 627,834,2 32,673,22 8,197,291
58,126.
end of the last year 947.00 43.83 7.01 .13
71
Add: Changes
of accounting
policy
Error
correction of the
last period
Other
II. Balance at the 551,347, -1,203,6
627,834,2 32,673,22 8,197,291
beginning of this 58,126.
947.00 43.83 7.01 .13
year 71
III. Increase/
Decrease in this -214,01 -213,964.
54.02
year (Decrease is 8.12 10
listed with “-”)
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
(i) Total -214,01 -214,018.
comprehensive
8.12 12
income
(ii) Owners’
devoted and
decreased capital
1.Common shares
invested by
shareholders
2. Capital invested
by holders of other
equity instruments
3. Amount
reckoned into
owners equity with
share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal of
surplus reserves
2. Distribution for
owners (or
shareholders)
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital reserves
conversed to
capital (share
capital)
2. Surplus reserves
conversed to
capital (share
capital)
3. Remedying loss
with surplus
reserve
4. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
(VI)Others 54.02 54.02
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
IV. Balance at the 551,347, -1,203,8
627,834,2 32,673,22 7,983,327
end of the report 72,144.
947.00 97.85 7.01 .03
period 83
III. Company Profile
1. History and Reform
According to the Approval Document SFBF (1991) No. 888 issued by the People’s Government of Shenzhen,
Shenzhen China Bicycle Company (Holdings) Limited (hereinafter referred to as the Company) was
reincorporated as the company limited by shares in November 1991. On 28 December 1991, upon the Approval
Document SRYFZ(1991) No. 119 issued by Shenzhen Special Economic Zone Branch of the People’s Bank of
China, the Company got listed on Shenzhen Stock Exchange. The Company reserves the business license for the
enterprise legal person (QGYSZFZ No.101165) [the registered number has been altered as 440301501122085]
with the registered address in Shenzhen Luohu District and the registered capital of RMB551, 347,947.00.
2. Industry nature
The company's industry: machinery manufacturing industry
3. Business scope
The production and assembly of various bicycles and spare parts, components, parts, mechanical product, sport
machinery, fine chemicals, carbon fiber composites material, household electrical appliance and affiliated
components (products management by license excluded).
4. Major products and services provided
The Company is specialized in making the middle-top rank bicycles, the main brands are EMMELLE and various
electrical bicycles.
The majority of its products were previously exported, however, the sales volume sharply declined in recent years
because of the antidumping litigation. Hence, the Company commences on the debt reorganization and the
reorganization plan was completed on 27 December 2013 with bankruptcy proceedings terminated. Meanwhile,
makes greater efforts to develop and research the new products, and creates a range of electrical bicycles to
occupy the domestic market. Up to 31 December 2016, shares issued by the Company counted as 551,347,947
shares accumulated.
5. Business change
During the reporting period, the company's main business has not changed.
No changes in consolidate scope, the subsidiary Shenzhen EMMELLE Industrial Co., Ltd. included only
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
IV. Compilation Basis of Financial Statement
1. Compilation Basis
The financial statement is prepared based on continuing operation assumptions, and according to actual
occurrence, in line with relevant accounting rules and follow important accounting policy and estimation.
2. Going concern
On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guocheng Energy
Investment Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the
Company as the Company couldn’t pay off the matured debts and was seriously insolvent. On 12 th, Oct., 2012,
Shenzhen Municipal Intermediate People's Court ruled to accept the application proposed by Guocheng Energy
according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. On the last ten-day of October 2012,
Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25th, Oct., 2012 according to
(2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen) Mallesons
and Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. On the same day,
Shenzhen Municipal Intermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1
written decision, and approved the Company to manage property and business affairs by itself under the
supervision of custodians according to the law. On 5 November 2013, the Shenzhen Intermediate People’s Court
(2012) Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved the reorganization plan of the
Company. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012) Shen
Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures of
CBC closed down.
The Company has solved the debt problem by reforming, realized the net assets with positive value, the main
business of bicycle is able to be maintained and realizes the stable development. The Company has set up the
conditions for introducing the recombination party in the reforming plan, and expects to restore the abilities of
sustainable operation and sustained profitability by reorganization. The conditions of introducing the
recombination party includes: the assessed value of net assets should be no less than 2 billion Yuan, the net assets
in the same year for implementing the major reorganization should be no less than 200 million Yuan. The
Company doesn’t have the recombination party at the moment.
V. Main accounting policy and Accounting Estimate
Whether the company needs to comply with the disclosure requirements of the particular industry
No
Tips for specific accounting policy and estimate:
Nil
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
1. Declaration on compliance with accounting standards
The financial statement prepared by the Company, based on follow compilation basis, is comply with the
requirement of new accounting standards for business enterprise issued by Ministry of Finance and its application
guide, commentate as well as other regulations (called by a joint name as Accounting Standards for Business
Enterprise), which is reflect a real and truth financial status of the Company, as well as operation results and cash
flow situations.
Furthermore, the statement has reference to the listing and disclosure requirement from “Rules Governing the
Disclosure of Information for Enterprise with Stock Listed No.15-general regulation of financial report” (2014
Revised) (hereinafter referred to as NO. 15 (2014 Revised) document)
2. Accounting period
Calendar year is the accounting period for the Company, that is falls to the range starting from 1 January to 31
December.
3. Business cycles
The business period for the Company, that is falls to the range starting from 1 January to 31 December.
4. Recording currency
The Company and its subsidiaries take RMB as the standard currency for bookkeeping.
5. Accounting treatment for business combinations under the same control and those not under the same
control
(1) Accounting treatment for business combinations under the same control and those not under the same control
① The business combination under the same control
For a business merger that is under the same control and is achieved by the Company through one single
transaction or multiple transactions, assets and liabilities obtained from that business combination shall be
measured at their book value at the combination date as recorded by the party being absorbed in the consolidated
financial statement of ultimate controlling party. Capital reserve shall be adjusted as per the difference between
the book value of obtained net assets and the book value of paid consolidated consideration (or the nominal value
of the issued shares) of the Company; retained earnings shall be adjusted if the capital reserve is not sufficient for
offset.
The asset or liability items of consolidated party are measured at their carrying value in the consolidated balance
sheet as of the consolidation date. Consolidated Profit and Loss include all items of income, expenditures and
profit from beginning till end of the period of the consolidated party(ies). Net profit made by the consolidated
company should be listed exclusively in the consolidated Profit and Loss. Cash flows from beginning till end of
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
the period of all consolidated parties are taken into the consolidated Cash Flow.
②The business combinations not involving enterprises under common control
The Company will validate the difference that the combined cost is more than the fair value of the net identifiable
assets gained from the acquiree on the acquisition date as goodwill; where the combined cost is less than the fair
value of net identifiable assets gained from the acquiree during business combination, the fair value and combined
cost of various identifiable assets, liabilities and contingent liabilities from the acquiree must be rechecked. Where
the combined cost is, after the recheck, still less than the fair value of net identifiable assets gained from the
acquiree during business combination, the difference shall be charged to current profits and losses.
As for business combination not under common control and realized through multiple transactions and by steps,
the Company shall make accounting treatment as follows:
A. Adjust the initial investment cost of long-term equity investments. As for stock equities held before the
acquisition date accounted according to the equity method, re-measurement is carried out according to the fair
value of the equity on the acquisition date. The balance between the fair value and the book value is included
in the current investment income. If the acquiree’s stock equities held before the acquisition date involves
changes of other comprehensive incomes and other owner's equities under accounting with the equity method,
the balance between the fair value and the book value is included in the current investment income on the
acquisition date, excluding other comprehensive incomes incurred by changes due to re-measurement of net
liabilities or net assets of the defined benefit plan.
B. Confirm the goodwill (or include the amount in the profits and losses). The initial investment cost of long-term
equity investments adjusted in step 1 is compared with the fair value of net identifiable assets of the subsidiary
shared on the acquisition date. If the former is greater than the latter, the balance is confirmed as goodwill; if
the former is less than the latter, the balance is included in the current profits and losses.
(2)Loss of control of a subsidiary in multiple transactions in which it disposes equity interests of its subsidiary in
stages
①In determining whether to account for the multiple transactions as a single transaction
A parent shall consider all the terms and conditions of the transactions and their economic effects. One or more of
the following may indicate that the parent should account for the multiple arrangements as a single transaction:
A. Arrangements are entered into at the same time or in contemplation of each other;
B. Arrangements work together to achieve an overall commercial effect;
C. The occurrence of one arrangement is dependent on the occurrence of at least one other arrangement;
D. One arrangement considered on its own is not economically justified, but it is economically justified when
considered together with other arrangements.
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
②Accounting treatment for each of the multiple transactions forming part of a bundled transactions which
eventually results in loss of control the subsidiary during disposal of its subsidiary in stages
If each of the multiple transactions forms part of a bundled transactions which eventually results in loss of control
the subsidiary, these multiple transactions should be accounted for as a single transaction. In the consolidated
financial statements, the difference between the consideration received and the corresponding percentage of the
subsidiary’s net assets in each transaction prior to the loss of control shall be recognized in other comprehensive
income and transferred to the profit or loss when the parent eventually loses control of the subsidiary.
The remaining equity investment shall be re-measured at its fair value in the consolidated financial statements at
the date when control is lost. The difference between the total amount of consideration received from the
transaction that resulted in the loss of control and the fair value of the remaining equity investment and the share
of net assets of the former subsidiary calculated continuously from the acquisition date or combination date based
on the previous shareholding proportion, shall be recognized as investment income for the current period when
control is lost. The amount previously recognized in other comprehensive income in relation to the former
subsidiary’s equity investment should be transferred to investment income for the current period when control is
lost
③Accounting treatment for each of the multiple transactions NOT forming part of a bundled transactions which
eventually results in loss of control the subsidiary during disposal of its subsidiary in stages
If the Company doesn't lose control of investee, the difference between the amount of the consideration received
and the corresponding portion of net assets of the subsidiary shall be adjusted to the capital reserve (capital
premium) in the consolidated financial statements.
If the Company loses control of investee, the remaining equity investment shall be re-measured at its fair value in
the consolidated financial statements at the date when control is lost. The difference between the total amount of
consideration received from the transaction that resulted in the loss of control and the fair value of the remaining
equity investment and the share of net assets of the former subsidiary calculated continuously from the acquisition
date or combination date based on the previous shareholding percentage, shall be recognized as investment
income for the current period when control is lost. The amount previously recognized in other comprehensive
income in relation to the former subsidiary’s equity investment should be transferred to investment income for the
current period when control is lost.
6. Compilation method of consolidated financial statement
Consolidated financial statements are prepared by the Company in accordance with Accounting Standard for
Business Enterprise No. 33-Consolidated Financial Statements and based on financial statements of parent
company and its subsidiaries and other related information.
When consolidating the financial statements, the following items are eliminated: internal equity investment and
owners’ equity of subsidiaries, proceeds on internal investments and profit distribution of subsidiaries, internal
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
transactions, internal debts and claim. The accounting policies adopted by subsidiaries are the same as parent
company.
7. Classification of joint venture arrangement and accounting treatment for joint control
(1) Affirmation and classification of joint venture arrangement
Joint arrangement refers to an arrangement controlled by two or more than two participants. Joint venture
arrangement has the following characteristics: 1) Each participant is bound by the arrangement; 2) Two or more
participants carry out joint control on implementation of the arrangement. Any participant cannot control the
arrangement independently. Any participant for joint control can stop other participants or participant
combinations to independently control the arrangement.
Joint control refers to the sharing of control over certain arrangement under related agreements, and related
activities of the arrangement must be determined only when obtaining the unanimous consent of the parties
sharing control.
Joint venture arrangement is classified in to joint operation and joint venture. Joint operation refers to an
arrangement that a joint party enjoys assets related to the arrangement and bears liabilities related to the
arrangement. Joint venture refers to an arrangement that a joint party only has the power governing net assets of
the arrangement.
(2) Accounting treatment of joint venture arrangement
Joint venture participants should confirm the following items related to interest shares in joint venture and carry
out accounting settlement according to relevant provisions of the Accounting Standards for Business Enterprises:
1) confirm the assets held separately and confirm the assets held jointly based on shares; 2) confirm the liabilities
borne separately and confirm the liabilities borne jointly based on shares; 3) confirm the income incurred after
selling its shares in joint venture output; 4) confirm the income after selling the joint venture outputs based on
shares; 5) confirm the expenses incurred separately and confirm the expenses incurred in joint venture based on
shares.
Joint venture participants should carry out accounting settlement for investments of the joint venture according to
provisions of Accounting Standards for Enterprises No.2–Long-term Equity Investments.
8. Recognition of cash and cash equivalents
Cash equivalents refer to the short-term (generally due within three months since the date of purchase) highly
liquid investments that are readily convertible into known amounts of cash and that are subject to an insignificant
risk of change in value.
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
9. Foreign currency transaction and financial statement conversion
(1)Conversion for foreign currency transaction
When initially recognized, the foreign currency for the transaction shall be converted into CNY amount according
to the spot exchange rate on the date of transaction. For the foreign currency monetary items, conversion must be
based on the spot exchange rate on the balance sheet date and the exchange difference incurred from different
exchange rates, except for the exchange difference of principal and interest incurred due to foreign currency loan
related to acquisition or construction of assets that qualify for capitalization, shall be charged to current profits and
losses; foreign currency non-monetary items measured with historical cost are still converted as per the spot
exchange rate on the transaction date and keep the RMB amount unchanged; foreign currency non-monetary items
measured with fair value shall be converted as per the spot exchange rate on the date of determining the fair value
and the difference shall be charged to current profits and losses or other comprehensive income.
(2)Conversion of financial statements presented in foreign currencies
The asset and liability items in the balance sheet shall be converted at the spot exchange rate on the balance sheet
date; the owner’s equity items, except for the items of “undistributed profit”, shall be converted at the spot
exchange rate on the transaction date; the income and expenditure items in the profit statement shall be converted
at the spot exchange rate on the transaction date. The translation difference of foreign financial statements
conducted as above is recognized as other comprehensive incomes.
10. Financial instruments
Financial instruments comprise of financial assets, financial liabilities and equity instruments.
(1) Classification of financial instruments
Financial assets and financial liabilities are classified as follows by the management based on the purpose of
holding or assuming these assets or liabilities: financial assets or financial liabilities at fair value through profit or
loss, including financial assets or financial liabilities held for trading and those directly designated as at fair value
through profit or loss; held-to-maturity investments; receivables; available-for-sale financial assets and other
financial liabilities, etc.
(2)Recognition and measurement of financial instruments
①Financial assets and liabilities at fair value through profit and loss
The fair value (after deduction of cash dividend to be distributed and bonds interest to be received) of the
assets on the acquisition shall be adopted as initial recognized value, and related transaction expenses shall
be accounted into current profits and losses.
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
The interests and cash dividend received shall be recognized as investment gain during the period, and the
difference of fair value between initial and spot dates shall be accounted into current profits and losses at the
end of period.
On the disposal of the assets, the difference between the obtained price and the book value of investment
shall be recognized as investment gain, and the accumulated fair value profits and losses shall be accordingly
adjusted.
②Held to maturity investments
The fair value (after deduction of bond interests whose period has matured but not charged yet) plus the
related transactions fees represents the initial recognition value.
During the holding period, the interest income shall be calculated as and included into investment gain in
accordance with the amortized costs and the actual interest rate. The actual interest rate is determined at the
time of acquisition, and shall remain unchanged during the expected renewal period or any shorter period as
applicable.
Upon disposal, the difference between the cost of acquisition and the book value of the investment shall be
accounted into investment gain.
③Receivable accounts
The contract price charged to the buyers shall be recognized as initial value for those receivable accounts
which mainly comprise the receivable creditor’s right caused by the sale of goods and the providing of
labor services to external customers by the Company, and receivables in other companies excluding debt
instruments priced in active markets, includes but is not limited to receivable accounts and other receivables.
If characterized as of financing nature, the initial recognition shall be priced at the present value.
Upon disposal, the difference between the sale value and the book value of the receivable shall be accounted
into current profits and losses on its recovery or disposal.
④Financial assets available for sale
The fair value (lower than cash dividend to be distributed and bonds’ interest to be received) and relevant
transaction expenses of the assets on the acquisition shall be adopted as initial recognized value.
The interests and cash dividend received shall be recognized as investment income during the holding
period, and the difference of fair value between initial and spot dates shall be accounted into capital reserve
(other capital reserve).
Upon disposal, the difference between fair value and initial value shall be recognized as investment profits and
losses, and the accumulated changes in fair value from the disposal shall be at the same time transferred from the
shareholders’ equity to investment profits and losses.
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
⑤Other financial liabilities
The sum of the fair value and relevant transaction expenses is recognized as the initial recognition amount. The
amortized cost is used for subsequent measurement.
⑥disposal of held-to-maturity investment or reclassification as financial assets available for sale:
Where the Company sells its outstanding held-to-maturity investment within the current accounting year or
re-classifies it as the amount of available-for-sale financial asset, and the amount is considerably large as
compared with the amount before such investment is sold or re-classified, the surplus of such investment shall be
re-classified as an available-for-sale financial asset. However, the following circumstances shall be excluded:
A. The date of sale or re-classification is quite near to the maturity date or the repo date of the said investment
(e.g., within 3 months prior to maturity) that any change of the market interest rate will produce little impact
upon the fair value of the said investment.
B. Enterprise has received almost all the initial principal of the investment according to the provisions on
repayment of the contract.
C. The sale or re-classification is caused by any independent event that the enterprise cannot control, is predicted
not to occur again and is hard to be reasonably predicted.
(3) Recognition and measurement of transfer of financial assets
With respect to transfer of financial assets, if an enterprise transfers substantially all the risks and rewards of
ownership of a financial asset to the transferee, the enterprise shall derecognize the financial assets. If an
enterprise retains substantially all the risks and rewards of ownership of a financial asset, the enterprise shall not
derecognize the financial asset.
When making judgment on whether a transfer of financial assets satisfy the above conditions for derecognition of
financial assets, the focus shall be put on substance, instead of the form. The Company shall divide transfer of
financial assets into transfer in full or in part. For a transfer of a financial asset in its entirety that satisfies the
derecognizing criteria, the difference between the following two amounts shall be recognized in profit or loss for
the current period:
①the book value of the financial asset transferred;
②The sum of the consideration received from the transfer and any cumulative gain or loss that had been
recognized directly in owner’s equity (applicable to transfer of available-for-sale financial assets).
If a part of the transferred financial asset qualifies for derecognizing, the book value of the transferred financial
asset in its entirety shall be allocated between the part that continues to be recognized and the part that is
derecognized, based on the relative fair values of those parts. The difference between the following two amounts
shall be included in profit or loss for the current period:
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①the book value allocated to the part derecognized;
②the sum of the consideration received for the part derecognized and any cumulative gain or loss allocated to it
that had been recognized directly in equity (applicable to transfer of available-for-sale financial assets).
If a transfer of financial assets do not satisfy the derecognition conditions, the company shall continue to
recognize the financial assets, and the consideration received shall be included as financial liabilities.
(4) Conditions for derecognizing financial liabilities
If the current obligations of financial liabilities has been lifted in whole or in part, then the Company shall
derecognize the financial liabilities in whole or in part thereof; if the Company signs an agreement with
creditors in order to take on new ways to replace the existing financial liabilities, and the new liabilities and
the existing financial terms are substantially different, the Company shall terminate recognizing the existing
financial liabilities, and begin to recognize the new financial liabilities at the same time.
If the terms of the contract involving the existing financial liabilities have been made with substantive
changes in whole or in part, the Company shall terminate recognizing the existing financial liabilities in
whole or in part, and at the same time, adopt the modified version of financial liabilities as a new one.
On derecognizing the financial liabilities in whole or in part, the difference between the book value of these
financial liabilities and the payment (including the roll-out of non-cash assets or new financial liabilities to
be assumed) shall be accounted into current profits and losses.
If buying back part of the financial liabilities, on the date of repurchase and in
accordance with the comparative fair value of the part to be continuously recognized and to be derecognized,
the Company shall allocate the entire financial liabilities. The difference between the part assigned to the
derecognized book value and the payment (including the roll-out of non-cash assets or new financial
liabilities to be assumed) shall be included into profits and losses of the current period.
(5)Determination of fair value of financial assets and liabilities
For financial assets and financial liabilities of the Company measured at fair value for which an active market
exists, their fair values are determined based on the prices quoted on the actively traded market; for financial
assets and financial liabilities for which no active market exists, their fair values are determined using valuation
techniques (including by reference to the price adopted by willing parties in their recent transactions or by
reference to the prevailing fair value, discount of cash flow method and option pricing model of other financial
instruments which are substantially the same); for financial assets initially obtained or derived or financial
liabilities assumed, fair value is determined based on market transaction prices.
(6) Provision for impairment reserve of financial assets (excluding accounts receivable)
On balance sheet date, the carrying amounts of financial assets (except for those measured at fair value through
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profit or loss of the period) are assessed for impairment. Provision for impairment is made when there exists
objective evidence that impairment of a financial asset has occurred.
For financial assets, objective evidence of impairment includes, but not limited to:
① significant financial difficulty of the issuer or debtor;
②breach of contract, such as delinquency or default in interest and principal payments made by the debtor;
③the creditor, for economic or legal reasons, granting concession to the debtor in financial difficulty;
④it becoming probable that the debtor will enter bankruptcy or financial reorganization;
⑤the disappearance of an active market for that financial asset because of financial difficulties of the issuer;
⑥upon an overall assessment of a group of financial assets, observable data indicates that there is a measurable
decrease in the estimated future cash flows from the group of financial assets since the initial recognition of those
assets, although the decrease cannot yet be identified with the individual financial assets in the group. Such
observable data includes adverse change in the payment status of debtor of the group of assets, or increased
unemployment rate in the country or region where the debtor is located, decreased price of collateral in the region
where it belongs, recession in the industry, etc.;
⑦significant adverse changes in the technological, market, economic or legal environment in which the issuer of
equity instrument operates, indicating that the cost of the equity instrument investment may not be recovered by
the investor;
⑧a significant or prolonged decline in the fair value of the investment in equity instrument;
Specific method for impairment of financial assets:
①Impairment of available-for-sale financial asset
As for available-for-sale financial assets, in case that there is any objective evidence indicating available-for-sale
equity instrument investment is impaired (including fair value of equity instrument investment occurs significant
or non-temporary decline, impairment shall be recognized.
Where an available-for-sale financial asset is impaired, even if the recognition of the financial asset has not been
terminated, the accumulative losses arising from the decrease of the fair value of the owner’s equity which was
directly included shall be transferred out and recorded into the profits and losses of the current period. The
accumulative losses that are transferred out shall be the balance obtained from the initially obtained costs of the
sold financial asset after deducting the principals as taken back, the current fair value and the impairment-related
losses as was recorded into the profits and losses of the current period.
As for the available-for-sale debt instruments whose impairment-related losses have been recognized, if, within
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the accounting period thereafter, the fair value has risen and are objectively related to the subsequent events that
occur after the originally impairment-related losses were recognized, the originally recognized impairment-related
losses shall be reversed and be recorded into the profits and losses of the current period. Impairment loss occurred
to available-for-sale equity instrument investment shall be reverted through equity when the value of the equity
instrument rises up. However, impairment loss in respect of equity instrument investment for which there is no
quoted price in an active market and for which fair value could not be measured reliably, or impairment loss in
relation to a derivative financial asset linked with the equity instrument for which the settlement shall be subject to
delivery of the equity instrument, shall not be reverted.
②Provision for impairment of held-to-maturity investments:
If there is objective evidence that indicates impairment has occurred on a held-to-maturity investment, the
difference between its carrying amount and the present value of its estimated future cash flow is recognized as
impairment loss. If there is subsequent evidence to prove that its value has recovered, the originally recognized
impairment loss may be reversed and recognized in profit or loss for the period, however the carrying amount so
reversed may not exceed the amortization cost of the financial asset at the date of reversal had there been no
provision for impairment.
11. Account receivable
(1) Account receivable with single significant amount and withdrawal single item bad debt provision
Account with single significant amount Over RMB 5 million
Conducted impairment testing separately, balance between the
present value of future cash flow and its carrying value, bad
Withdrawal method for bad debt provision of account
debt provision withdrawal and reckoned into current
receivable with single significant amount
gains/losses. For those without impairment being found after
test, collected into relevant combination for accrual.
(2) Accounts receivable whose bad debts provision was accrued by combination based on credit risk
characteristics portfolio
Combination Bad debt provision accrual
Aging of accounts group Age analysis method
Group with bad debt provision accrual by aging:
√ Applicable □ Not applicable
Age Accrual ratio Accrual ratio for other receivable
Within one year (one year included) 0.30% 0.30%
1－2 years 0.30% 0.30%
2－3 years 0.30% 0.30%
Over 3 years 100.00% 100.00%
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3－4 years 100.00% 100.00%
4－5 years 100.00% 100.00%
Over 5 years 100.00% 100.00%
In combination, withdrawal proportion of bad debt provision based on balance proportion
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods:
□ Applicable √ Not applicable
(3) Account receivable with minor single amount but with withdrawal bad debt provision for single item
If any objective evidence shows that it may has impaired, such
as the debtor revoke, bankruptcy or death, and after liquidate
Reasons for provision of bad debt reserve
with bankrupt’s estates or heritage, the money still
un-collectable, and in sufficient of cash flow
As for the receivable with objective evidence shows that it
Provision method of bad debt reserve might be impaired, an independent impairment test may be
carried out for impairment losses recognized
12. Inventory
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1) Classification of inventory
The inventory of the Company refers to such seven classifications as the raw materials, product in process, goods
on hand, wrap page, low value consumables, materials for consigned processing and goods sold.
(2) Valuation of inventories
Inventories are initially measured at cost upon acquisition, which includes procurement costs, processing costs
and other costs. The prices of inventories are calculated using weighted average method when they are delivered.
(3)Inventory system
Perpetual inventory system is adopted.
(4) 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, inventory merchandize and materials for sale) that can be sold
directly is determined using the estimated saleable price of such inventory deducted by the cost of sales and
relevant taxation over the course of ordinary production and operation. The net realizable value of material in
inventory that requires processing is determined using the estimated saleable price of the finished product
deducted by the cost to completion, estimated cost of sales and relevant taxation over the course of ordinary
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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.
13. Classified as assets held for sale
If a non-current asset can be promptly sold at its existing status only according to the practice terms in connection
with disposal of this kind of assets, and the Company has already made resolution on disposal of the non-current
asset and entered into irrevocable transfer agreement with the transferee, and this transfer will be completed
within one year, then the non-current asset would be calculated as non-current asset held for sale which would be
not applicable to depreciation or amortization since the date of classification as asset held for sale, and would be
measured at the lower of its carrying value less disposal cost and fair value less disposal cost. Non-current asset
held for sale consists of single item asset and disposal group. If a disposal group is a group of assets as defined by
No.8 of Business Accounting Standards-Assets Impairment, and goodwill arising from business combination shall
be allocated to the group of assets under this accounting principle, or the disposal group constitutes one operation
of the group of assets, then the disposal group includes the goodwill arising from business combination.
For single non-current asset and asset in disposal group classified as assets held for sale, they shall be presented in
balance sheet separately as current assets. For liabilities in disposal group relating to the transferred assets
classified as assets held for sale, they shall be presented in balance sheet separately as current liabilities.
If an asset or disposal group classified as held for sale no longer meets the recognition condition as non-current
asset held for sale, the Company will cease such recognition and measure the asset at the lower of (1)the carrying
value of the asset or disposal group prior to being classified as held for sale, based on the amount adjusted with
the depreciation, amortization or impairment which should have been recognized assuming it had not been
classified as held for sale; (2)the recoverable amount on the date when the Company decides to cease disposal.
14. Long-term equity investments
(1)Determination of investment costs
①If it is formed by the business combination under the common control, and that the combining party takes cash
payment, transfer of non-cash assets, assumption of debts or issuance of equity securities as the consolidation
consideration, the shares of the book value of the owner’s equity obtained from the combined party on the date of
combination in the ultimate controlling party’s consolidated financial statements shall be recognized as its initial
investment cost. Capital reserves shall be adjusted according to the balance between the initial investment cost for
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long-term equity investment and the book value of paid consolidation consideration or the total face value of
issued shares (capital premium or equity premium). If capital reserves are insufficient for offset, retained earnings
shall be adjusted.
As for business combination under the common control realized by the Company through several transactions, the
initial investment cost of the investment shall be determined based on the share of the carrying value of the
owners’ equity of the consolidated party as calculated according to the shareholding proportion on the
consolidation date. Difference between initial investment cost and the carrying value of long-term equity
investment before combination and the sum of carrying value of newly paid consideration for additional shares
acquired on the date of combination is to adjust capital reserve (capital premium or equity premium). If the
balance of capital reserve is insufficient, any excess is adjusted to retained earnings.
②As for long-term equity investment formed from business combination not under common control, the fair
value of the consolidated consideration paid shall be deemed as the initial investment cost on the acquisition date.
③Except those ones formed by the business combination, for all items obtained by means of cash payment,
actually paid acquisition costs shall be taken as the initial investment cost. For those ones obtained by the issuance
of equity securities, the fair value of the issued equity securities shall be taken as the initial investment cost. For
those ones invested by investors, the value agreed in the investment contract or agreement shall be taken as the
initial investment cost, provided that the value agreed in the contract or agreement shall be fair.
(2)Subsequent measurement and profit or loss recognition
For a long-term equity investment where the Company can exercise control over the investee, the long-term
investment is accounted for using the cost method in the Company’s financial statements. The equity method is
adopted when the Group has joint control, or exercises significant influence on the investee.
Under cost method, long term equity investment is measured at initial investment cost. Except for the price
actually paid for obtaining the investment or the cash dividends or profits declared but not yet distributed which is
included in the consideration, the Company recognizes cash dividends or profits declared by the investee as
current investment gains, and determine whether there is impairment on long term investment according to
relevant assets impairment policies.
Under equity method, when the initial investment cost of the long-term equity investment exceeds the share of fair
value in the net identifiable assets in the investee, the difference shall be included in initial investment cost of the
long-term equity investment. When the initial investment cost is lower than the share of fair value in the net
identifiable asset in the investee, such difference is recognized in profit or loss for the period with adjustment of
cost of the long-term equity investment.
Under equity method, after the Company acquires a long-term equity investment, it shall, in accordance with its
attributable share of the net profit or loss realized by the investee, recognize the investment profit or loss and
adjust carrying value of the investment. The Group recognizes its share of the investee’s net profits or losses after
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making appropriate adjustments to the investee’s net profits and losses based on the fair value of the investee’s
identifiable assets at the acquisition date, using the Group’s accounting policies and periods, and eliminating the
portion of the profits or losses arising from internal transactions with its joint ventures and associates, attributable
to the investing entity according to its shareholding proportion (but impairment losses for assets arising from
internal transactions shall be recognized in full). The carrying amount of the investment is reduced based on the
Group’s share of any profit distributions or cash dividends declared by the investee. The Group’s share of net
losses of the investee is recognized to the extent the carrying amount of the investment together with any
long-term interests that in substance form part of its net investment in the investee is reduced to zero, except that
the Group has the obligations to assume additional losses. The Group adjusts the carrying amount of the long-term
equity investment for any changes in owners’ equity of the investee (other than net profits or losses) and includes
the corresponding adjustments in the owners’ equity of the Group.
(3) Determination of control and significant influence on investee
Control is the power over an investee. An investor must have exposure or rights to variable returns from its
involvement with the investee, and the ability to use its power over the investee to affect the amount of the
investor’s returns. Significant influence is the power to participate in the financial and operating policy decisions
of the investee but is not control or joint control with other parties over those policies
(4)Disposal of long-term equity investment
①Partial disposal of long term investment in which control is retained
When long term investment is been partially disposed but control is retained by the company, the difference
between disposal proceeds and carrying amount of the proportion being disposed is accounted for through profit
or loss.
②Partial disposal of long term investment in which control is lost
When long term investment is partially disposed and control is lost as a result, the carrying value of the long term
invest on the stock right, the difference between carrying amount of the part being disposed and disposal proceeds
should be recognized as profit or loss. The residual part should be treated as long term investment or other
financial assets according to their carrying amount. After partial disposal, if the company is able to exert
significant influence or common control over the investee, the investment should be measured according to cost
method or equity method, in compliance with relevant accounting standards and regulations.
(5)Impairment test and provision for impairment
If there is objective evidence on the balance sheet date showing investment in subsidiaries, associates and joint
ventures is impaired, provision of impairment shall be made against the difference between the carrying amount
and the recoverable amount of the investment.
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15. Investment property
Measurement mode
Measured by cost method
Depreciation or amortization method
Investment property refers to the real estate held with purpose of rent earning, capital appreciation or both
of them.
Investment properties of the Company include:
(1) land use right which has been rented out;
(2) land use right which is held for transfer upon appreciation;
(3) buildings which has been rented out.
Investment property is initially measured at the cost when acquired. The Company makes subsequent
measurement on investment property under cost model on the balance sheet date. Depreciation method for
constructions and buildings under the item of fixed assets are the same, and amortization method for land use right
and land use right under the item of intangible assets are the same.
16. Fixed assets
(1) Confirmation conditions
Fixed assets refer to the tangible assets for production of products, provision of labor, lease or operation, and with a service life in
excess of 1 financial year.
Fixed assets may be recognized unless it simultaneously meets the conditions as follows:
①The economic benefits pertinent to the fixed asset are likely to flow into the enterprise; and
②The cost of the fixed assets can be measured reliably.
(2) Depreciation methods
Yearly depreciation
Categories Method Years of depreciation Scrap value rate
rate
Straight-line
Housing buildings 20 10% 4.5%
depreciation
Machines and Straight-line
10 10% 9%
equipment depreciation
Straight-line
Office equipment 5 10% 18%
depreciation
Straight-line
Electronic equipment 5 10% 18%
depreciation
Transportation Straight-line
5 10% 18%
equipment depreciation
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Straight-line
Other equipment 5 10% 18%
depreciation
Nil
(3) Recognization basis, valuation and depreciation method for financial lease assets
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and
rewards of asset ownership to the lessee and titles to the assets may or may not eventually be transferred. For
fixed assets acquired under finance leases, the basis for provision of leased assets depreciation is the same as that
of self-owned fixed assets. When it can be reasonably determined that the ownership of a leased asset will be
transferred at the end of the lease term, it is depreciated over the period of expected use; otherwise, the lease asset
is depreciated over the shorter period of the lease term and the period of expected use.
17. Project under Construction
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1) Class of construction in progress
Construction in progress is measured case by case.
(2)Standards and timing of carrying forward construction in progress into fixed assets
The initial book values of the fixed assets are stated at total expenditures incurred before construction in progress
reaching the working condition for their intended use. For construction in progress that has reached working
conditions for its intended use but for which the completion of settlement has not been handled, it shall be
transferred into fixed assets at the estimated value according to the project budget, construction price or actual
cost, etc. from the date when it reaches the working conditions for its intended use. And the fixed assets shall be
depreciated in accordance with the Company’s policy on fixed asset depreciation. Adjustment shall be made to the
originally and provisionally estimated value based on the actual cost after the completion of settlement is handled,
but depreciation already provided will not be adjusted.
18. Borrowing expenses
(1)Principles of recognizing capitalization of borrowing expenses
The borrowing expenses of the Company directly attributable to the construction or production of an asset
meeting capitalization conditions are capitalized and recognized in relevant asset costs; other borrowing expenses
are recognized as expenses based on the amount incurred and recognized in profit or loss for the period.
An asset that meets the capitalization conditions refers to fixed assets, real estate investments and inventories that
require a considerable amount of time for construction or production to reach the expected usable or saleable
condition.
Borrowing expenses are capitalized when all of the following conditions are met:
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①the asset expense has occurred, which includes expenses in the form of cash paid, nonmonetary asset
transferred or interest-bearing obligations assumed for the construction or product of an asset that meets
capitalization conditions;
②the borrowing expenses have occurred;
③the necessary construction or production activities for bringing the asset to the expected usable or saleable
conditions have started.
Capitalization of borrowing expenses is suspended when any abnormal interruption continues for over three
months during the construction or production of an asset that meets capitalization conditions.
When the construction or production of an asset meeting capitalization conditions has reached expected useful or
saleable conditions, the capitalization of borrowing expenses is stopped.
When the a portion of the construction or production of an asset meeting capitalization conditions has completed
and can be used individually, the capitalization of borrowing expenses of such portion of asset is stopped.
(2)Capitalization period of borrowing expenses
Capitalization period refers to the time starting from the borrowing expenses are capitalized to the time
capitalization is stopped, except for the period which capitalization of borrowing expenses is suspended.
(3) Calculation of capitalized amount of borrowing expenses
Interest expenses of special loans (net of interest income from unutilized loans deposited in bank or investment
gain earned from temporary investment) and supplementary expenses incurred for the construction or production
of asset that meets capitalization conditions before the asset reaches expected useable or saleable condition are
capitalized.
The interest amount that should be capitalized on normal borrowings is calculated based on the weighted average
of expenses of the aggregate asset exceeding the expenses of the portion of special loan multiplied by the
capitalization ratio of the normal borrowings utilized. Capitalization ratio is calculated based on normal weighted
average interest rate.
19. Biological assets
Nil
20. Oil-and-gas assets
Nil
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21. Intangible assets
(1) Valuation method, service life and impairment test
(1)Measurement of intangible assets
Intangible assets are accounted at the actual cost when acquired. The cost of externally purchased intangible assets
includes the purchase price, relevant taxation and other expenses directly attributable to bringing the asset to
expected usage. If payment for the price of intangible assets purchased is delayed beyond normal credit conditions
and is in fact financing in nature, the cost of the intangible asset is determined based on the present value of the
purchase price.
For intangible asset obtained through debt restructuring for offsetting the debt of the debtor, the entry value of the
intangible asset is determined based on its fair value, and the difference between the carrying amount of the
restructured debt and the fair value of the intangible asset used for offsetting the debt is recognized in profit or
loss for the period. The entry value of intangible asset received in an exchange for non-monetary asset is based on
the fair value of the asset surrendered, provided that the asset received in exchange for non-monetary asset has a
commercial substance and the fair value of both the asset received and the asset surrendered can be reliably
measured, except there is definite evidence that the fair value of the asset received is more reliable; for exchange
of nonmonetary asset that cannot satisfy the above conditions, the cost of the intangible asset received is based on
the carrying amount of the asset surrendered and the amount of relevant taxation payable, and no profit or loss is
recognized.
For intangible asset obtained through business absorption or combination of entities under common control, the
entry value is determined by the carrying amount of the combined party; for intangible asset obtained through
business absorption or merger of entities not under common control, the entry value is determined by the fair
value of the intangible asset.
(2)Amortization of intangible assets
Intangible asset with a limited life is amortized using straight line method over the term which it brings economic
benefit to the Company. If the term of economic benefit the intangible asset can bring to the Company cannot be
estimated, it is deemed to be an intangible asset with indefinite life, which shall not be amortized.
(3)Regular review of useful life
The expected useful life and amortization method for intangible assets with definite useful life are reviewed at the
end of each year, and adjusted when necessary. In case that the useful life of an intangible asset is limited, the
Company shall estimate the term of the useful life or quantity of output or similar measurement units constituting
the useful life. The useful life of intangible assets shall be reviewed annually, and they are also subject to
impairment test. At the end of each accounting period, useful life and amortization method for intangible assets
with definite useful life are reviewed. Where the useful life and amortization method is different from the previous
estimate, the company shall change term and method for amortization. Besides, the company shall also review the
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useful life of intangible assets with indefinite useful life in each accounting period. if there is any evidence
showing that an intangible asset has definite useful life, the company shall estimate the useful life according the
above rules.
(4)Impairment of intangible assets
The Company makes a judgment on whether there is any sign of possible assets impairment on the balance sheet
date. With respect to goodwill arising from business combination and intangible assets with indefinite useful life,
they are subject to impairment test annually regardless of whether there is any sign of impairment. If there is any
sign of impairment, the company shall estimate the recoverable amount which shall be determined at the higher of
the net amount of fair value of the asset less disposal costs and the present value of the predicted future cash flow
of the asset. In particular, the disposal costs include legal expenses, taxes, delivery expense relating to the asset
disposal and other expenses directly occurred to make the asset available for sale.
(2) Internal accounting policies relating to research and development expenditures
(1) Categorization of the expenditure in research stage and expenditure in development stage
Intangible assets recognized for expenditure in exploitation stage by satisfying the followed at same time:
①it is technically feasible that the intangible asset can be used or sold upon completion;
②there is intention to complete the intangible asset for use or sale;
③the intangible asset can produce economic benefits, including there is evidence that the products produced using
the intangible asset has a market or the intangible asset itself has a market; if the intangible asset is for internal use,
there is evidence that there exists usage for the intangible asset;
④there is sufficient support in terms of technology, financial resources and other resources in order to complete
the development of the intangible asset, and there is capability to use or sell the intangible asset;
⑤the expenses attributable to the development phase of the intangible asset can be measured reliably.
22. Impairment of long-term assets
The Company makes a judgment on whether there is any sign of possible long-term assets impairment on the
balance sheet date. Where there is a sign indicating potential impairment, the Company will estimate the
recoverable amount. And if the recoverable amount of an asset is less than its carrying value, the carrying value
shall be written down to the recoverable amount, and the amount written down shall be recognized as impairment
loss and included in current profit or loss. Meanwhile, the Company shall make impairment provision for the asset
accordingly.
No matter whether there is any sign of possible assets impairment, the goodwill formed by the merger of
enterprises and intangible assets with uncertain service lives shall be subject to impairment test every year.
The estimate of the recoverable amount of the assets are determined at the higher of the net amount of the fair
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
value less the disposal expenses and the present value of the estimated future cash flows.
The Group estimates the recoverable amount on an individual basis. If it is not possible to estimate the
recoverable amount of the individual asset, the Group determines the recoverable amount of the asset group to
which the asset belongs.
Once the asset impairment loss is recognized, it will not be reversed in the subsequent periods
After the loss of asset impairment has been recognized, the depreciation or amortization expenses of the impaired
asset shall be adjusted accordingly in the future periods so as to amortize the post-adjustment carrying value of the
asset systematically (deducting the expected net residual value) within the residual service life of the asset.
23. Long-term deferred expenses
Long-term deferred expenses are those prepaid expenses with an amortization period of more than one year
(excluding one year), such as improvement expense occurred on fixed assets leased under operating leasing
arrangement. Long-term deferred expenses are amortized in installment on an average basis over the period which
is expected to be benefitted from such expenses. In case that the long-term deferred expenses are not likely to
benefit the subsequent accounting periods, the outstanding value of the item to be amortized shall be included in
current profit or loss in full.
24. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when staff providing service to the Company, the actual short-term compensation
occurred shall recognized as liabilities and reckoned into current gains/losses or relevant assets costs. The
non-monetary welfare is measured by fair value.
(2) Accounting treatment for post-employment benefit
The post-employment benefit including the defined contribution plans. And defined contribution plans including
basic endowment insurance, unemployment insurance and annuity, corresponding payable amount will reckoned
into relevant assets costs or current gains/losses while occurred.
(3) Accounting for retirement benefits
When the Company terminates the employment relationship with employees before the end of the employment
contracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, the
Company shall recognize employee compensation liabilities arising from compensation for staff dismissal and
included in profit or loss for the current period, when the Company cannot revoke unilaterally compensation for
dismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the Company
recognize cost and expenses related to payment of compensation for dismissal and restructuring, whichever is
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
earlier.
(4) Accounting for other long-term employee benefits
For other long-term employee benefits provided by the Company to its employees, if satisfy with the established
withdraw plan, then the benefits are accounted for under the established withdraw plan, otherwise accounted for
under defined benefit scheme.
25. Accrued liabilities
(1)When the obligations arising from provision of external guarantee, lawsuits, product quality guarantee and
contract loss and other contingent issues become the present obligations of the company, the performance of
which is likely to result in outflow of benefit from the company and the amount of which can be measured reliably,
the company shall recognize such obligations as projected liabilities.
(2)Projected liabilities are initially measured at the best estimate on the expenses required to perform the relevant
present obligation by the Company, and the carrying value of project liabilities are reviewed on each balance sheet
date.
26. Share-based payment
Share based payment refers to the transactions involving grant of equity instrument or assume liabilities as
determined based on equity instrument for the purpose of acquiring services from employees or other parties.
Share based payment is divided into the equity settled share based payment and cash settled share based payment.
The equity-settled share-based payment in return for employee services shall be measured at the fair value of the
equity instruments granted to the employees. The cash-settled share-based payment shall be measured at the fair
value of the liability that determined on the basis of shares or other equity instruments undertaken by the
enterprise
27. Other financial instruments including senior shares and perpetual bonds
(1) Distinguish of senior shares and perpetual bonds
The perpetual bonds and senior shares issued by the Company are treated as equity instruments subject to
satisfaction of all the below conditions:
①the financial instrument excludes delivery of cash or other financial assets to others, or exchange for contractual
obligations on financial assets or financial liabilities with others under potential negative conditions;
②if its own equity instruments are required or may be used to settle the financial instruments, it excludes the
contractual obligation to deliver varied numbers of own equity instruments for settlement provided that the
financial instruments are non-derivatives; if the financial instruments are derivatives, the Company can only settle
the financial instruments by fixed number of own equity instruments for exchange for fixed amount of cash or
other financial assets.
Other than the financial instruments which can be classified as equity instruments under the above conditions,
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
other financial instruments issued by the Company shall be classified as financial liabilities.
In case that financial instruments issued by the Company are compound financial instruments, they shall be
recognized as liabilities at the fair value of liabilities portion. The actual amount received less fair value of the
liabilities portion shall be recognized as other equity instrument. Transaction expenses occurred in issuance of
compound financial instruments are allocated to the portions of liabilities and equities according to their
respective proportion to the total issuance price.
(2) Accounting for perpetual bonds and senior shares
For perpetual bonds and senior shares classified into financial liabilities, their relevant interest, dividends, gains or
losses and gains or losses arising from redemption or refinancing are all included in current profit or loss other
than those borrowing expenses which meet condition for capitalization (please refer to Note V-18 “borrowing
expenses”).
For perpetual bonds and senior shares classified into equity instruments, their issuance (including refinancing),
repurchase, sale or cancel are treated as change of equity, and relevant transaction fees are also deducted from
equity. The Company accounts for allocation of holders of equity instruments as profit distribution.
The Company dose not recognizes change of fair value of equity instruments.
28. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1) Goods sales
Income from sale of goods is recognized when the following conditions are met: (1)the Company has transferred
the key risks and return on the ownership of the merchandize to the buyer; (2)the Company has not retained
continued management rights associated with ownership and no longer exercises effective control on the
merchandize sold; (3)the amount of income can be reliably measured; (4)the relevant economic benefits are very
likely to flow to the enterprise; (5)the costs incurred or to be incurred can be reliably measured.
(2)Rendering of services
When the outcome of the transaction can be estimated reliably (the amount of revenue can be measured reliably, it
is probable that the economic benefits will flow to the Company, the percentage of completion of the transaction
can be determined reliably, and the costs of the transaction incurred and to be incurred can be measured reliably),
revenue from rendering of services is recognized using the percentage of completion method, and the stage of
completion is determined at the proportion of costs incurred to the estimated total costs. When the outcome of the
transaction cannot be estimated reliably at the balance sheet date, revenue is recognized based on the amount of
the costs incurred and the costs incurred are charged off at the same amount when the costs incurred are expected
to be recoverable; and no revenue is recognized and the costs incurred are charged off as an expense of the period
when the costs incurred are not expected to be recovered.
(3)Transfer of asset use right
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When the economic benefits related to the transaction is likely to flow to the Company and the income
amount can be reliably calculated, the Company shall recognize income arising from transfer of asset use right.
The income of interests is determined on basis of the time and real interest rate of the Company’s cash funds which
is utilized by other persons. The income of royalties is determined on basis of the chargeable time and method
fixed under relevant agreement or contract.
(4) Interest income
Recognized based on the times and real interest rates for the money used by others
29. Government Grants
(1) Determination basis and accounting for government grants related to assets
(1)Government grants related to assets
Government grants related to assets represent grants obtained from government which are to compensate
long-term assets purchased or other ways.
(2) Determination of amortization method and amortization term of deferred income related to government grants
①Government grant related to assets received by the Company is recognized as deferred income which is
included on an average basis in profit or loss of the respective accounting period over the service life of the asset
commencing from the time when the asset is ready for the planned use. In case that the asset is disposed,
transferred, discarded as useless or damaged prior to the end of service life, the remaining deferred income shall
be included in profit or loss of the period in which the asset is disposed on an one-off basis.
(3)Timing for recognition of government grant
Government grant is recognized only when the following conditions are met:
①able to satisfy the conditions attached to government grant;
②able to obtain government grant.
(4)Calculation of government grant
Government grant in the form of monetary assets is measured at the amount received or receivable, while
government grant not in the form of monetary assets shall be measured at fair value. In case of failure to
determine fair value, it shall be measured at nominal value.
①government grant related to assets shall be recognized as deferred income and allocated averagely during the
useful life of relevant assets and included in current profit or loss. However, government grant measured at
nominal value shall be included directly in current profit or loss.
②where recognized government grant is required to return, the followings shall be adopted:
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
A. offset the carrying value of deferred income if such deferred income exists, and the surplus part shall be
included in current profit or loss;
B. included in current profit or loss directly if no deferred income exists.
(2) Determination basis and accounting for government grants related to income
(1) Government grants related to income
Government subsidies related to income refer to government subsidies other than those related to assets.
(2) Determination of amortization method and amortization term of deferred income related to government grants
①The company's revenue related government grants, which are used to compensate for the relevant expenses or
losses during the subsequent period, are recognised as deferred income.
(3) Timing for recognition of government grant
Government grant is recognized only when the following conditions are met:
①able to satisfy the conditions attached to government grant;
②able to obtain government grant.
(4) Calculation of government grant
Government grant in the form of monetary assets is measured at the amount received or receivable, while
government grant not in the form of monetary assets shall be measured at fair value. In case of failure to
determine fair value, it shall be measured at nominal value.
①Government subsidies related to income shall be dealt with in the following situations
A. For the purpose of compensating for the related expenses or losses during the subsequent period of the
company, it shall be recognized as deferred income and shall be included in the current profits and losses in the
period when the relevant expenses are recognized.
B. For the purpose of compensating for the expenses or losses incurred by the company, it shall be directly
included in the current profits and losses
②where recognized government grant is required to return, the followings shall be adopted:
A. offset the carrying value of deferred income if such deferred income exists, and the surplus part shall be
included in current profit or loss;
B. included in current profit or loss directly if no deferred income exists.
30. Deferred tax assets / deferred income tax liabilities
(1) Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference between the
carrying amount and tax base of assets and liabilities (and the difference of the carrying amount and tax base
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
of items not recognized as assets and liabilities but with their tax base being able to be determined according
to tax laws) and in accordance with the tax rate applicable to the period during which the assets are expected
to be recovered or the liabilities are expected to be settled.
(2)A deferred tax asset is recognized to the extent of the amount of the taxable income, which it is most likely to
obtain and which can be deducted from the deductible temporary difference. At the balance sheet date, if there
is any exact evidence that it is probable that future taxable profits will be available against which deductible
temporary differences can be utilized, the deferred tax assets unrecognized in prior periods are recognized.
(3)At the balance sheet date, the carrying amount of deferred tax assets is reviewed. The carrying amount of a
deferred tax asset is reduced to the extent that it is no longer probable that sufficient taxable profits will be
available to allow the benefit of the deferred tax asset to be utilized. Such reduction is subsequently reversed to
the extent that it becomes probable that sufficient taxable income will be available.
(4)The income tax and deferred tax for the period are treated as income tax expenses or income through profit or
loss, excluding those arising from the following circumstances: ① business combination; and ② the
transactions or items directly recognized in equity.
31. Lease
(1)Accounting for operating lease
When the Company is the lessee, lease payments are recognized as cost or profit or loss with straight-line method
over the lease term. Initial expenses are recognized directly into profit or loss. Contingent rents are charged as
profit or loss in the periods in which they are incurred.
When the Company is the lessor, lease income is recognized as profit or loss with straight-line method over the
lease term. Initial expenses, other than those with material amount and eligible for capitalization which are
recognized as profit or loss by installments, are recognized directly as profit or loss. Contingent rents are charged
into profit or loss in the periods in which they are incurred.
(2)Accounting for financing lease
When the company acts as lessee, at the inception of lease, the lower of fair value of leased assets at the inception
of lease and the present value of minimum lease payment is recognized as the value of leased assets. The
minimum lease payment is recognized as the value of long-term payable. Their difference is recorded as
unrecognized finance costs with any initial direct expense incurred recorded in the value of leased assets. For each
period of the lease term, current finance cost is calculated using effective interest method.
When the company acts as lessor, at the inception of lease, the sum of minimum lease income at the inception of
lease and the initial direct expense is recognized as the value of finance lease payment receivable, with unsecured
balance also recorded. The difference between the sum of minimum lease income, initial direct expense and
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
unsecured balance and the sum of their present values is recognized as unrealized finance income. For each period
of the lease term, current finance income is calculated using effective interest method.
32. Other important accounting policy and estimation
Discontinued operation refers to the operation disposed or classified as held-for-sale by the Company and
presented separately under operation segments and financial statements, which has fulfilled one of the following
criteria: ① it represents an independent key operation or key operating region; ② it is part of the proposed
disposal plan on an independent key operation or proposed disposal in key operating region; or ③ it only
establishes for acquisition of subsidiary through disposal.
Accounting for discontinued operation is set out in note V-13 “classified as assets held for sale”.
33. Major accounting policy and changes
(1) Main accounting policy changes
√Applicable □Not applicable
The contents and reasons of accounting
Examination and approval procedures Note
policy changes
According to the VAT Accounting Rules
issued by the Ministry of Finance on 3
December 2016 (CK[2016]No.22), the
Law enforcement
item of “business tax and surplus” in
profit statement is adjusted to “tax and
surplus”.
According to the VAT Accounting Rules
issued by the Ministry of Finance on 3
December 2016 (CK[2016]No.22) which
is applicable to the transactions occurred
since 1 May 2016, the property tax, land
use tax, stamp duty relating to operating
activities of the Company were
Law enforcement
reclassified from “administrative
expense” into “tax and surplus” with
effect from 1 May 2016, while taxes
relating to transactions occurred before 1
May 2016 was not subject to adjustment.
Also, no adjustment is made on
comparative figures.
Taxes and surcharge in profit statement will increase 14,206.07 Yuan in the year, administrative expenses for the year decreased
14,206.07 Yuan in profit statement
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(2) Changes of important accounting estimate
□ Applicable √ Not applicable
34. Other
Nil
VI. Taxes
1. Main tax category and tax rate
Tax category Tax calculation evidence Tax rate
Sales of goods, taxable labor service
Value added tax 17%
revenue and taxable income
Tax for maintaining and building cities Turnover tax payable 7%
Taxable income 25%
Business income tax
Taxable turnover 5%
Business tax
Educational surtax Turnover tax payable 3%
Turnover tax payable 2%
Local educational surtax
Disclose reasons for different taxpaying body
Taxpaying body Income tax rate
2. Tax preference
Nil
3. Other
In line with the “Notice on Nationwide Implementation of VAT Pilot Program from Business Tax”[2016] No.30
issued by Ministry of Finance and SAT, the taxpayer, which is engaged in construction business, real estate
industry, banking business and service industries, are paying the VAT instead of business tax since 1 May 2016
VII. Notes to Items in Consolidated Financial Statements
1. Monetary fund
In RMB
Item Ending balance Opening balance
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Cash on hand 132,652.06 141,271.10
Cash in bank 23,768,774.82 26,610,794.56
Other monetary fund 113,860.83 0.00
Total 24,015,287.71 26,752,065.66
Including: the total money deposited
0.00 0.00
abroad
Other explanation
Separate explanation is required for accounts with restricted application purposes, deposited overseas and of
potential recovery risks arising from pledge, mortgage or frozen:
2. Financial assets measured by fair value and reckoned into current gains/losses with its variation
In RMB
Item Ending balance Opening balance
Other explanation:
Nil
3. Derivative financial assets
□ Applicable √ Not applicable
4. Note receivables
(1) Classification of notes receivable
In RMB
Item Ending balance Opening balance
Bank acceptance bill 2,220,000.00
Total 2,220,000.00
(2) Pledge at period-end
In RMB
Item Amount pledge at period-end
Total 0.00
(3) Notes endorsement or discount and undue on balance sheet date
In RMB
Item Amount derecognition at period-end Amount not derecognition at period-end
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Bank acceptance bill 44,613,787.85
Total 44,613,787.85 0.00
(4) Notes transfer to account receivable due for failure implementation by drawer at period-end
In RMB
Item Amount transfer to account receivable at period-end
Total 0.00
Other explanation
Nil
5. Accounts receivable
(1) Accounts receivable by category
In RMB
Ending balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Receivables with bad
debt provision 12,479,0 1,292,61 11,186,42 9,591,9 1,374,959 8,217,039.0
86.34% 10.36% 88.69% 14.33%
accrual by credit 37.76 7.31 0.45 98.29 .25 4
portfolio
Accounts with single
significant amount
1,974,94 789,977. 1,184,966 1,222,8 244,564.3
and bad debts 13.66% 40.00% 11.31% 20.00% 978,257.28
3.96 59 .37 21.60 2
provision accrued
individually
14,453,9 2,082,59 12,371,38 10,814, 1,619,523 9,195,296.3
Total 100.00% 14.41% 100.00% 14.98%
81.72 4.90 6.82 819.89 .57 2
Receivable with single significant amount and withdrawal bad debt provision separately at end of period:
□ Applicable √ Not applicable
In combination, accounts receivable whose bad debts provision was accrued by age analysis:
√ Applicable □ Not applicable
In RMB
Ending balance
Age
Account receivable Bad debt provision Accrual ratio
Within one year
Within 1 year 10,698,460.47 32,095.39 0.30%
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Subtotal within one year 10,698,460.47 32,095.39 0.30%
1-2 years 79,894.08 239.68 0.30%
2-3 years 441,726.15 1,325.18 0.30%
Over 3 years 1,258,957.06 1,258,957.06 100.00%
Total 12,479,037.76 1,292,617.31 10.36%
Explanation on combination determines:
According to the business scale, business nature, and customers’ settlement, etc., the account receivable with single significant
amount is determined to be RMB 5 million. The account receivable with single significant amount has no depreciation reserve, and
the reserve for bad debt provision is withdrawn with age analysis method.
In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable:
Nil
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual was 463,071.33 Yuan; the amount collected or switches back amounting to 0.00 Yuan
Important bad debt provision collected or switch back:
In RMB
Company Collected or switch back amount Collection way
Total 0.00 --
Nil
(3) Account receivable actual charge off in the Period
In RMB
Item Amount written off
Written-off for the major receivable:
In RMB
Verification Arising from related
Company Nature Amount written off Reason for write-off
procedures transaction (Y/N)
Total -- 0.00 -- -- --
Explanation for write-off of receivables:
There is no actual write off of accounts receivable in Period.
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
(4) Top 5 receivables at ending balance by arrears party
Ratio in total
Relationship with Account
Item Amount receivables Nature
the company age
(%)
Within one Trade
Client 1 Unrelated party 3,081,619.42 21.32
year receivable
Within one Trade
Client 2 Unrelated party 2,535,268.50 17.54
year receivable
Within one Trade
Client 3 Unrelated party 2,294,293.55 15.87
year receivable
Within one Trade
Client 4 Unrelated party 1,278,283.50 8.84
year receivable
Trade
Client 5 Unrelated party 1,144,690.91 4-5 years 7.92
receivable
Total 10,334,155.88 71.49
Other explanation:
Receivables with minor single amount but withdrawal bad debt provision separately
Bad debt provision Accrual ratio
Clients Book balance Reasons
(%)
Termination of operations,
Shijiazhuang Dasong Technology
1,278,283.50 511,313.41 40.00 uncertainty of money
Co., Ltd.
collection
Xi’an Beilin Fuxin Termination of operations,
Electro-mobile After-Sale 696,660.46 278,664.18 40.00 uncertainty of money
Department collection
Total 1,974,943.96 789,977.59 40.00
6. Advance payment
(1) Listed by account age
In RMB
Ending balance Opening balance
Age
Amount Ratio Amount Ratio
Within one year 1,667,424.89 89.29% 386,433.20 97.13%
1- 2 years 200,000.00 10.71% 11,400.00 2.87%
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
2-3 years
Over 3 years
Total 1,867,424.89 -- 397,833.20 --
Explanation on un-settlement in time for advance payment with over one year account age and major amounts:
The subscription 200,000.00 Yuan paid to Huihuangda Bicycle (Shenzhen) Co., Ltd. for 1000 OEM bicycles in
advance. The subscription will pay the final money according to the agreement. The business still not settles till
end of the period
(2) Top 5 advance payment at ending balance by prepayment object
Ratio in
Relationship total ad
Item with the Amount Account age vance e Nature
company payment
(%)
Prepaymen
Unrelated Within one
A 1,558,709.04 83.47 ts for
party year
materials
Prepaymen
Unrelated
B 200,000.00 1-2 years 10.71 ts for
party
materials
Prepaymen
Unrelated Within one
C 27,530.00 1.47 ts for
party year 1
materials
Prepaymen
Unrelated Within one
D 16,409.00 0.88 ts for
party year 1
materials
Prepaid
Unrelated Within one
E 16,000.00 0.86 service
party year 1
charge
Total 1,818,648.04 97.39
7. Interest receivable
(1) interest receivable
In RMB
Item Ending balance Opening balance
Time deposit
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Loan by mandate
Debt investment
Total
(2) Important overdue interest
Overdue time Overdue Impairment (Y/N) and
Borrower Ending balance Overdue reason
time judgment basis
Total 0.00 -- -- --
Other explanation:
Nil
8. Dividend receivables
(1) Dividend receivables
In RMB
Item (or the invested entity) Ending balance Opening balance
(2) Major dividend receivables with over one year age
In RMB
Item or the invested Impairment (Y/N) and
Ending balance Age Reasons
entity) judgment basis
Total 0.00 -- -- --
Other explanation:
Nil
9. Other accounts receivable
(1) Other accounts receivable by category
In RMB
Ending balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Other receivables 1,111,471 452,717. 658,754.0 845,449 449,925.6
100.00% 40.73% 100.00% 53.22% 395,523.78
with bad debt .82 73 9 .44 6
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
provision accrual by
credit portfolio
1,111,471 452,717. 658,754.0 845,449 449,925.6
Total 100.00% 40.73% 100.00% 53.22% 395,523.78
.82 73 9 .44 6
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period:
□ Applicable √ Not applicable
In combination, other accounts receivable whose bad debts provision was accrued by age analysis
√ Applicable □ Not applicable
In RMB
Ending balance
Age
Other accounts receivable Bad debt provision Accrual ratio
Within one year
Within one year 380,003.30 1,140.01 0.30%
Subtotal within one year 380,003.30 1,140.01 0.30%
1-2 years 208,705.00 626.12 0.30%
2-3 years 72,028.00 216.08 0.30%
Over 3 years 450,735.52 450,735.52 100.00%
Total 1,111,471.82 452,717.73
Explanations on combination determine:
According to the business scale, business nature, and customers’ settlement, etc., the other account receivable with single big amount
is determined to be RMB 5 million. The other account receivable with single big amount has no depreciation reserve, and the reserve
for bad debt provision is withdrawn with age analysis method.
In combination, withdrawal proportion of bad debt provision based on balance proportion for other account receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable:
□ Applicable √ Not applicable
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual was 2,792.07 Yuan; the amount collected or switches back amounting to 348.24 Yuan
Important bad debt provision collected or switch back:
In RMB
Company Amount reversal or collected Collection way
Total 0.00 --
Nil
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(3) Other receivables actually written-off during the reporting period
In RMB
Item Amount written off
Written-off for the major other receivable:
In RMB
Nature of other Verification Arising from related
Company Amount written off Reason for write-off
receivables procedures transaction (Y/N)
Total -- 0.00 -- -- --
Explanation for write-off of other receivables:
No written-off for the major other receivable in Period.
(4) Other receivables by nature
In RMB
Nature Ending book balance Opening book balance
Margin or deposit 503,614.00 304,626.00
Equipment money 311,400.00 300,000.00
Staff personal loans 111,870.60 119,240.50
Other 184,587.22 121,582.94
Total 1,111,471.82 845,449.44
(5) Top 5 other receivables at ending balance by arrears party
In RMB
Ratio in total ending
Ending balance of
Company Nature Ending balance Age balance of other
bad bet provision
receivables
Other receivable I Equipment money 300,000.00 Over 3 years 26.99% 300,000.00
Other receivable II Margin or deposit 135,723.00 1-2 year 12.21% 407.17
Other receivable III Margin or deposit 90,100.00 1-2 year 8.11% 270.30
Other receivable IV Margin or deposit 72,000.00 Within one year 6.48% 216.00
Other receivable V Personal loans 55,000.00 Within one year 4.95% 165.00
Total -- 652,823.00 -- 58.74% 301,058.47
(6) Account receivable with government grants involved
In RMB
113
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Time, amount and basis
Company Item Ending balance Ending age of amount collection
estimated
Total -- 0.00 -- --
(7) Other account receivable derecognition due to financial assets transfer
Nil
(8) Assets and liability resulted by other account receivable transfer and continuous involvement
Nil
Other explanation:
Nil
10. Inventory
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1) Inventory classification
In RMB
Ending balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserve reserve
Raw materials 785,399.89 40,706.54 744,693.35 441,460.58 441,460.58
Finished goods 2,379,266.31 5,519.40 2,373,746.91 3,615,787.10 3,615,787.10
Total 3,164,666.20 46,225.94 3,118,440.26 4,057,247.68 0.00 4,057,247.68
Does the Company comply with the disclosure requirement of “Information Disclosure Guidelines of Shenzhen Stock Exchange
No.4 – Listed Companies Engaged in Seed Industry and Planting Business” or not
No
(2) Inventory depreciation reserve
In RMB
Increase in the current period Decrease in the current period
Item Opening balance Switch back or Ending balance
Accrual Other Other
write-off
Raw materials 40,706.54 40,706.54
114
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Finished goods 5,519.40 5,519.40
Total 0.00 46,225.94 46,225.94
During normal production, the cash realizable value of inventories directly for sale, such as merchants and materials for sale is
accounted according to the estimated price less the estimated sales expenses and taxes. During normal production, the cash realizable
value of materials to be processed is accounted according to the estimated price of finished product less the estimated cost, sales
expenses and taxes. For inventories with purpose of implementing sales contract or labor contract, the cash realizable value is based
on the contract price; if the inventories held exceed the ordered amount specified in the contract, the cash realizable value of surplus
part is accounted based on the market price.
(3) Explanation on capitalization of borrowing costs at ending balance of inventory
Nil
(4) Assets that completed without settlement from construction contract
In RMB
Item Amount
Other explanation:
Nil
11. Assets holding ready for sold
In RMB
Expected disposal
Item Ending book value Fair value Expected disposal time
expenses
Total 0.00 0.00 0.00 --
Other explanation:
Nil
12. Non-current assets due within one year
In RMB
Item Ending balance Opening balance
Other explanation:
Nil
13. Other current assets
In RMB
Item Ending balance Opening balance
Prepaid intermediary fee 1,509,433.95
115
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Prepaid tax 541,396.60 209,155.59
Total 2,050,830.55 209,155.59
Other explanation:
Prepaid intermediary fee refers to the prepaid, which paid to the intermediary organ as securities, auditing and evaluation (according
to the service contract), for preparation of privately placement, and the money is not included in current gains/losses yet.
14. Financial assets available for sale
(1) Financial assets available for sale
In RMB
Ending balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Total 0.00 0.00 0.00 0.00
(2) Financial assets available for sale measured by fair value at period-end
In RMB
Equity instrument Debt instrument
Type Total
available for sale available for sale
Cost /liability of equity
instrument/ amortization 0.00
cost of debt instrument
Fair value 0.00
Amount of fair value
changes that
accumulatively reckoned 0.00
in other comprehensive
gains
Amount with impairment
0.00
accrual
(3) Financial assets available for sale measured by cost at period-end
In RMB
Book balance Depreciation reserves Ratio of
The share-holdi
Cash
invested Period-beg Period-beg ng in
Increased Decreased Period-end Increased Decreased Period-end dividend
entity inning inning invested
entity
116
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -- 0.00
(4) Changes of impairment in Period
In RMB
Equity instrument Debt instrument
Type Total
available for sale available for sale
Balance of impairment
0.00
accrual at period-begin
Current accrual 0.00
Including: transfer-in
from other 0.00
comprehensive income
Current decrease 0.00
Including: switch back
due to fair value rebound 0.00
at period-end
Balance of impairment
0.00
accrual at period-end
(5) Fair value of equity instrument available for sale sharply declined or other-than-temporary declined at
period-end without depreciation reserves accrual
In RMB
Fair value Time of drops Amount with
Reasons for
Item Investment cost Ending fair value declined relative persistently impairment
un-accrual
to cost (month) accrual
Total 0.00 0.00 -- -- 0.00 --
Other explanation
Nil
15. Held-to-maturity investment
(1) Held-to-maturity investment
In RMB
Ending balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Total 0.00 0.00 0.00 0.00
117
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
(2) Important held-to-maturity investment at period-end
In RMB
Bond Face value Coupon value Actual rate Maturity date
Total 0.00 -- -- --
(3) Held-to-maturity investment reclassify in the Period
Nil
Other explanation
Nil
16. 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 section
provision provision
Total 0.00 0.00 0.00 0.00 --
(2) Long-term account receivable derecognition due to transfer of financial assets
Nil
(3) Assets and liability resulted by long-term account receivable transfer and continuous involvement
Nil
Other explanation
Nil
17. Long-term equity investment
In RMB
+,-
Ending
Other Cash
Investme balance
The Additiona comprehe dividend
Opening nt gains Other Ending of
invested l Capital nsive or profit Impairme
balance recognize equity Other balance impairme
entity investmen reduction income announce nt accrual
d under change nt
t adjustmen d to
equity provision
t issued
118
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
I. Joint venture
Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
II. Associated enterprise
Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other explanation
Nil
18. 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) Certificate of title un-completed
In RMB
Item Book value Reasons for un-completed
Other explanation
Nil
19. Fixed assets
(1) Fixed assets
In RMB
Electronic
Houses and Machines equipme
Item Transport tools equipment and Total
buildings nt
other
I. Original book
value:
1.Opening
678,623.99 416,629.06 635,351.81 1,730,604.86
balance
2. Increased in
2,959,824.00 2,959,824.00
the Period
(1) Purchase 2,959,824.00 2,959,824.00
(2)
119
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
construction in
process transfer-in
(3) the
increase in
business
combination
3. Decreased in
114,500.00 114,500.00
the Period
(1) Disposal or
114,500.00 114,500.00
scrap
4.Ending
2,959,824.00 564,123.99 416,629.06 635,351.81 4,575,928.86
balance
II. accumulated
depreciation
1.Opening
231,378.84 34,252.84 457,066.75 722,698.43
balance
2. increased in
the Period
(1) provision 66,596.04 101,542.32 37,496.64 21,690.32 227,325.32
3. Decreased in
the Period
(1) Disposal or
103,050.00 103,050.00
scrap
4.Ending
66,596.04 229,871.16 71,749.48 478,757.07 846,973.75
balance
III. impairment of
preparation
1.Opening
0.00 0.00 0.00 0.00 0.00
balance
2. increased in
0.00 0.00 0.00 0.00 0.00
the Period
(1) provision 0.00 0.00 0.00 0.00 0.00
3. Decreased in 0.00 0.00 0.00 0.00 0.00
120
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
the Period
(1) Disposal or
0.00 0.00 0.00 0.00 0.00
scrap
4.Ending
0.00 0.00 0.00 0.00 0.00
balance
IV. book value
1.Ending book
2,893,227.96 334,252.83 344,879.58 156,594.74 3,728,955.11
value
2. Opening
447,245.15 382,376.22 178,285.06 1,007,906.43
book value
(2) Fixed assets temporary idle
In RMB
Accumulated Depreciation
Item Original book value Book value Note
depreciation reserves
(3) Fixed assets leased through operating lease
In RMB
Accumulated
Item Original book value Depreciation reserves Book value
depreciation
(4) Fixed assets leased through operating lease
In RMB
Item Ending book value
(5) Certificate of title un-completed
In RMB
Item Book value Reasons
Purchasing 7-20F and other six
properties of Lianxin Garden with
original value of 2,959,824.00 Yuan. The
property purchasing refers to the
Six properties in Lianxin Garden 2,893,227.96
indemnificatory housing for enterprise
talent buying from Shenzhen Housing
and Construction Bureau of Luohu
District. According to the agreement, the
121
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
enterprise shall not carrying any kind of
property trading with any units or
individuals except the government, and
the company has no property
certification on the above mentioned
properties.
Other explanation
No accrual for impairment provision due to there was no evidence of impairment being found in fixed assets at
period-end
20. Construction in progress
(1) Construction in progress
In RMB
Ending balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Total 0.00 0.00 0.00 0.00
(2) Changes in significant construction in progress
In RMB
Accumul including
Proporti
Fixed ated : interest Interest
Other on of
increased assets amount capitaliz capitaliz
Opening decrease Ending project Sourceof
Item Budget in the transfer-i Progress of ed ation rate
balance d in the balance investme funds
Period n in the interest amount of the
Period nt in
Period capitaliz of the year
budget
ation year
Total 0.00 0.00 0.00 0.00 0.00 0.00 -- -- 0.00 0.00 0.00% --
(3) Depreciation reserves accrual
In RMB
Item Accrual Amount Reasons
Total 0.00 --
Other explanation
Nil
122
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
21. Engineering materials
In RMB
Item Ending balance Opening balance
Other explanation:
Nil
22. Disposal of fixed assets
In RMB
Item Ending balance Opening balance
Other explanation:
Nil
23. Productive biological assets
(1) Productive biological assets measured by cost
□ Applicable √ Not applicable
(2) Productive biological assets measured by fair value
□ Applicable √ Not applicable
24. Oil-and-gas assets
□ Applicable √ Not applicable
25. Intangible assets
(1) Intangible assets
In RMB
Non-patent
Item Land use right Patent Trademark Total
technology
I. original book
value:
1.Opening balance 5,271,000.00 5,271,000.00
2. increased in the
Period
(1) Purchase
123
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
(2) internal R
&D
(3) the
increase in business
combination
3.DecreasedAmount
(1) Disposal
4.Ending balance 5,271,000.00 5,271,000.00
II. accumulated
depreciation
1.Opening balance 753,000.00 753,000.00
2. increased in the
753,000.00 753,000.00
Period
(1) provision 753,000.00 753,000.00
3.DecreasedAmount
(1) Disposal
4.Ending balance 1,506,000.00 1,506,000.00
III. impairment of
preparation
1.Opening balance
2. increased in the
Period
(1) provision
3.DecreasedAmount
(1) Disposal
4.Ending balance
IV. book value
124
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
1.Ending book
3,765,000.00 3,765,000.00
value
2. Opening book
4,518,000.00 4,518,000.00
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
Item Book value Reasons
Other explanation:
No accrual of impairment provision due to there was no impairment evidence being found in intangible assets at
end of the period
26. Development expense
In RMB
Opening
Item Increased in the Period Decreased in the Period Ending balance
balance
Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other explanation
Nil
27. Goodwill
(1) Original book value of goodwill
In RMB
The invested
Opening balance Increase during the year Decreased during the year Ending balance
entity or items
Total 0.00 0.00 0.00 0.00 0.00 0.00
(2) Depreciation reserves of goodwill
In RMB
The invested
Opening balance Increase during the year Decreased during the year Ending balance
entity or items
Total 0.00 0.00 0.00 0.00 0.00 0.00
Process of impairment testing, parameter and recognition method for impairment losses:
Nil
125
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Other explanation:
Nil
28. Long-term unamortized expenses
In RMB
increased in the Amortized in the
Item Opening balance Other decrease Ending balance
Period Period
Total 0.00 0.00 0.00
Other explanation
Nil
29. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets un-offset
In RMB
Ending balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Asset depreciation
2,580,785.12 645,196.29 356,256.24 89,066.31
reserves
Total 2,580,785.12 645,196.29 356,256.24 89,066.31
(2) Deferred income tax liabilities un-offset
In RMB
Ending balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Total 0.00 0.00 0.00 0.00
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
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
645,196.29 89,066.31
assets
126
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
(4) Details of unrecognized deferred income tax assets
In RMB
Item Ending balance Opening balance
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMB
Year Ending amount Opening amount Note
Total 0.00 0.00 --
Other explanation:
As stated under article 17 of the Enterprise Accounting Standards No.18-Income Tax, deferred income tax assets and deferred income
tax liabilities shall be measured at the tax rate applicable in the period in which the assets are expected to be recovered or liabilities
are expected to be settled according to relevant tax laws on the balance sheet date. The tax rate adopted by the Company in
calculating deferred income tax assets is 25% for both parent company and subsidiaries.
Due to the uncompensated loss of parent company, the Company did not recognize deferred income tax assets.
30. Other non-current assets
In RMB
Item Ending balance Opening balance
Advance payment for house 400,000.00
Total 400,000.00
Other explanation:
In reporting period, the Company paid the four houses in advance for enterprise talent, located in Yinhu Lanshan, to Shenzhen
Housing and Construction Bureau of Luohu District, the event still in process.
31. Short-term loans
(1)Types of short-term loans
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:
In RMB
127
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Unit Ending balance Lending rate Overdue time Overdue rate
Total 0.00 -- -- --
Other explanation:
Nil
32. Financial liability measured by fair value and with its variation reckoned into current gains/losses
In RMB
Item Ending balance Opening balance
Other explanation:
Nil
33. Derivative financial liabilities
□ Applicable √ Not applicable
34. Notes payable
In RMB
Type Ending balance Opening balance
Notes expired at year-end without paid was 0.00 Yuan
35. Account payable
(1) Account payable
In RMB
Item Ending balance Opening balance
Within 1 year (including 1year) 9,563,099.99 7,602,020.99
1-2 year (including 2year) 3,084.95
Over 3 years 185,792.84 185,792.84
Total 9,751,977.78 7,787,813.83
(2) Account payable with over one year book age
In RMB
Item Ending balance Reasons of un-paid or carry-over
Total 0.00 --
Other explanation:
Top 5 payables at Period-end
128
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Relationship Ratio in total
Account
Item with the Amount payables in Nature
age
company advance (%)
Within Trade
Supplier 1 Unrelated party 4,802,117.00 49.24
one year payable
Within Trade
Supplier 2 Unrelated party 2,534,569.26 25.99
one year payable
Within Trade
Supplier 3 Unrelated party 709,566.66 7.28
one year payable
Within Trade
Supplier 4 Unrelated party 702,070.00 7.20
one year payable
Within Trade
Supplier 5 Unrelated party 435,695.34 4.47
one year payable
Total 9,184,018.26 94.18
36. Account received in advance
(1) Account received in advance
In RMB
Item Ending balance Opening balance
Within one year (one year included) 3,257,952.74 580,886.87
1-2 years (2 years included) 503,352.22 738,408.34
2-3 years (3 years included) 141,481.50 153,434.50
Over 3 years 418,273.37 551,988.59
Total 4,321,059.83 2,024,718.30
(2) Account received in advance with over one year book age
In RMB
Item Ending balance Reasons of un-paid or carry-over
Received in advance D 404,013.70
Received in advance E 200,689.00
Received in advance F 200,462.80
Total 805,165.50 --
129
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
(3) Projects that settle without completed from construction contract at period-end
In RMB
Item Amount
Other explanation:
Top 5 received in advance at Period-end
Relationship Ratio in total
Account
Item with the Amount received in Nature
age
company advance (%)
Unrelated Within one Advances
A 1,086,507.70 25.14
party year on sales
Unrelated Within one Advances
B 1,054,243.20 24.40
party year on sales
Unrelated Within one Advances
C 522,321.39 12.09
party year on sales
Unrelated Over 3 ye Advances
D 404,013.70 9.35
party ars on sales
Unrelated Advances
E 200,689.00 1-2 years 4.64
party on sales
Total 3,267,774.99 75.62
37. Wages payable
(1) wages payable
In RMB
Increase during the Decrease during the
Item Opening balance Ending balance
year year
I. Short-term
1,379,350.24 5,795,087.15 6,403,451.42 770,985.97
compensation
II. Post-employment
benefit – defined 5,316.96 387,382.55 392,699.51
contribution plan
III. Dismiss welfare
IV. Other welfare due
within one year
130
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Total 1,384,667.20 6,182,469.70 6,796,150.93 770,985.97
(2) Short-term compensation
In RMB
Item Opening balance Increase during the year Decrease during the year Ending balance
1. Wages, bonuses, allowances
1,148,241.19 5,029,424.22 5,413,448.16 764,217.25
andsubsidies
2. Welfare for workers
91,930.24 91,930.24
and staff
3. Social insurance 1,293.08 170,617.44 171,910.52
Including: Medical
1,293.08 137,643.34 138,936.42
insurance
Work injury
7,129.28 7,129.28
insurance
Maternity
25,844.82 25,844.82
insurance
4. Housing accumulation
10,267.96 425,973.84 436,241.80
fund
5. Labor union
expenditure and
219,548.01 77,141.41 289,920.70 6,768.72
personnel education
expense
Total 1,379,350.24 5,795,087.15 6,403,451.42 770,985.97
(3) Defined contribution plans
In RMB
Item Opening balance Increase during the year Decreased Ending balance
1. Basic endowment
5,172.32 351,283.71 356,456.03
insurance
2. Unemployment
144.64 36,098.84 36,243.48
insurance
Total 5,316.96 387,382.55 392,699.51
Other explanation:
38. Tax payable
In RMB
131
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Item Ending balance Opening balance
Value-added tax 988,097.16 1,074,435.25
Enterprise income tax 506,828.92
Individual income tax 10,263.10 30,039.52
Urban maintenance and construction tax 11,499.17 54,951.97
Business tax 28,175.45
House property tax 45,070.60 45,070.60
Educational surtax 3,394.82 34,432.54
Embankment expenses 4,198.63
Total 1,565,153.77 1,271,303.96
Other explanation:
39. Interest payable
In RMB
Item Ending balance Opening balance
Interest overdue without paid:
In RMB
Borrower Amount overdue Reasons
Total 0.00 --
Other explanation:
Nil
40. Dividends payable
In RMB
Item Ending balance Opening balance
Other explanation, including dividends payable with over one year age and disclosure un-payment reasons:
Nil
41. Other payable
(1) Classification of other payable according to nature of account
In RMB
Item Ending balance Opening balance
Custodian and common benefit debts 9,513,005.85 9,699,853.85
Current money 6,500,000.00 6,500,000.00
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Other payable service charge (intermediary
2,168,988.59 1,712,548.85
services included)
Other warranty and guarantee money 1,611,225.00 1,841,445.00
Other 604,067.88 256,512.66
Total 20,397,287.32 20,010,360.36
(2) Significant other payable with over one year age
In RMB
Item Ending balance Reasons of un-paid or carry-over
Custodian and common benefit debts 9,513,005.85
Guosheng Energy 6,500,000.00 Interest-free loans
Total 16,013,005.85 --
Other explanation
Nil
42. Liability holding ready for sold
In RMB
Item Ending balance Opening balance
Other explanation:
Nil
43. Non-current liability due within one year
In RMB
Item Ending balance Opening balance
Other explanation:
Nil
44. Other current liability
In RMB
Item Ending balance Opening balance
Changes of short-term bond payable:
In RMB
Accrual Premium/
Face Release Bond Issuing Opening Issued in Paid in Ending
Bond interest discount
value date period amount balance the Period the Period balance
by face amortizati
133
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
value on
Total -- -- -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other explanation:
Nil
45. Long-term loans
(1) Classification of long-term loans
In RMB
Item Ending balance Opening balance
Explanation:
Nil
Other explanation, including interest rate section:
Nil
46. Bonds payable
(1) Bonds payable
In RMB
Item Ending balance Opening balance
(2) Changes of bonds payable (not including the other financial instrument of preferred stock and
perpetual capital securities that classify as financial liability)
In RMB
Total -- -- -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(3) Convertible conditions and time for shares transfer for the convertible bonds
Nil
(4) Other financial instruments classify as financial liability
Basic information of the outstanding preferred stock and perpetual capital securities at period-end
Nil
Changes of outstanding preferred stock and perpetual capital securities at period-end
In RMB
Outstanding Period-begin Increase during the year Decreased Period-end
financial Amount Book value Amount Book value Amount Book value Amount Book value
134
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
instrument
Total 0 0.00 0 0.00 0 0.00 0 0.00
Basis for financial liability classification for other financial instrument
Nil
Other explanation
Nil
47. Long-term account payable
(1) Listed by nature
In RMB
Item Ending balance Opening balance
Other explanation:
Nil
48. Long-term employee payable
(1) Long-term employee 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 amount Last amount
Scheme assets:
In RMB
Item Current amount Last amount
Net liability (assts) of the defined benefit plans
In RMB
Item Current amount Last amount
Content of defined benefit plans and relevant risks, impact on future cash flow of the Company as well as times and uncertainty:
Nil
Major actuarial assumption and sensitivity analysis:
Nil
Other explanation:
Nil
135
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
49. Special payable
In RMB
Increase during the
Item Opening balance Decreased Ending balance Causes
year
Total 0.00 0.00 --
Other explanation:
Nil
50. Accrued liability
In RMB
Item Ending balance Opening balance Causes
Other explanation, including relevant important assumptions and estimation:
Nil
51. Deferred income
In RMB
Increase during the
Item Opening balance Decreased Ending balance Causes
year
Total 0.00 0.00 --
Item with government grants involved:
In RMB
Amount reckoned
New grants in the Assets-related/inc
Item Opening balance in non-operation Other changes Ending balance
Period ome related
revenue
Total 0.00 0.00 0.00 --
Other explanation:
Nil
52. Other non-current liability
In RMB
Item Ending balance Opening balance
Other explanation:
Nil
136
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
53. Share capital
In RMB
Changeduringtheyear(+,-)
Shares
Opening
New shares transferred Ending balance
balance Bonus share Other Subtotal
issued from capital
reserve
Total shares 551,347,947.00 0.00 551,347,947.00
Other explanation:
The 1500 restricted A-stock, held by domestic nature person, are transferred to un-restricted RMB trading A-stock in the period
54. Other equity instrument
(1) Basic information of the outstanding preferred stock and perpetual capital securities at period-end
Nil
(2) Changes of outstanding preferred stock and perpetual capital securities at period-end
In RMB
Outstanding Period-begin Increase during the year Decreased Period-end
financial
Amount Book value Amount Book value Amount Book value Amount Book value
instrument
Total 0 0 0.00 0 0.00 0
Changes of other equity instrument, change reasons and relevant accounting treatment basis:
Nil
Other explanation:
Nil
55. Capital reserve
In RMB
Item Opening balance Increase during the year Decreased Ending balance
Other capital reserve 627,834,297.85 627,834,297.85
1. Debt restructuring
482,580,588.23 482,580,588.23
income
2. Other 145,253,709.62 145,253,709.62
Total 627,834,297.85 0.00 0.00 627,834,297.85
Other explanation, including changes and reasons for changes:
137
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Among the other capital reserves, 135,840,297.18 Yuan refers to the payment for creditor from shares assignment
by whole shareholders; majority shareholder Guosheng Energy donated 5,390,399.74 Yuan.
56. Treasury stock
In RMB
Item Opening balance Increase during the year Decreased Ending balance
Total 0.00 0.00
Other explanation, including changes and reasons for changes:
Nil
57. Other comprehensive income
In RMB
Current amount
Less: written in
other
Account comprehensive
Opening Belong to Belong to Ending
Item before income in
balance Less : income parent minority balance
previous period
income tax in and carried tax expense company after shareholders
tax after tax
the year forward to gains
and losses in
current period
Total other comprehensive income 0.00 0.00 0.00
Other explanation, including the active part of the hedging gains/losses of cash flow transfer to initial recognization adjustment for
the arbitraged items:
Nil
58. Special reserves
In RMB
Item Opening balance Increase during the year Decreased Ending balance
Total 0.00 0.00
Other explanation, including changes and reasons for changes:
Nil
59. Surplus reserves
In RMB
Item Opening balance Increase during the year Decreased Ending balance
Statutory surplus reserve 32,673,227.01 32,673,227.01
Total 32,673,227.01 0.00 0.00 32,673,227.01
138
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Other explanation, including changes and reasons for changes:
Nil
60. Retained profit
In RMB
Item Current period Last period
Retained profit at period-end before adjustment -1,200,090,425.75 -1,199,952,070.17
Retained profit at period-begin after adjustment -1,200,090,425.75 -1,199,952,070.17
Add: net profit attributable to shareholders of
2,603,637.47 -138,355.58
parent company for this year
Retained profit at period-end -1,197,486,788.28 -1,200,090,425.75
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. Operating income and operating cost
In RMB
Current amount Last amount
Item
Income Cost Income Cost
Main business 137,352,611.63 125,490,374.59 169,764,775.65 158,640,680.24
Other business 4,617,909.17 753,000.00 1,225,254.45 758,591.64
Total 141,970,520.80 126,243,374.59 170,990,030.10 159,399,271.88
62. Business tax and surcharge
In RMB
Item Current amount Last amount
Urban maintenance and construction tax 155,556.13 146,170.20
Educational surtax 110,350.91 104,407.32
Stamp tax 29,424.09
Business tax 29,766.85 180,489.66
Total 325,097.98 431,067.18
Other explanation:
139
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Nil
63. Sales expense
In RMB
Item Current amount Last amount
Employee compensation 2,907,598.16 3,046,778.67
Market promotion costs 1,035,052.28 1,474,565.46
Lease fee 774,523.87 562,901.30
Travel expenses 562,725.49 601,963.66
Other 268,048.86 829,396.81
Total 5,547,948.66 6,515,605.90
Other explanation:
Marketing expense in 2015 mainly related to offline promotion activities, which mainly referred to the expenses occurred in
participation in bicycle exhibition, preparation of T-shirts and purchase of certain riding equipments for promotion purposes. In 2016,
the Company experienced transformation of selling model by introduction of E-commerce platform. Marketing promotion expenses
mainly referred to online operation expense and platform utilization expense.
64. Administration expense
In RMB
Item Current amount Last amount
Salary 2,757,930.58 3,657,247.52
Intermediary services charge 2,194,078.56 871,162.82
Daily management cost 526,004.34 714,323.09
Depreciation and amortization charges 227,325.32 148,832.71
Total 5,705,338.80 5,391,566.14
Other explanation:
Nil
65. Financial expense
In RMB
Item Current amount Last amount
Interest income -591,590.55 -695,798.95
Exchange loss -0.04 0.41
Commission charge etc. 14,344.63 20,600.33
Total -577,245.96 -675,198.21
140
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Other explanation:
Nil
66. Loss from Assets depreciation
In RMB
Item Current amount Last amount
I. Bad debt losses 465,863.40 308,237.93
II. Inventory falling price loss 46,225.94
Total 512,089.34 308,237.93
Other explanation:
Nil
67. Changes in fair value gains
In RMB
Changes resources Current amount Last amount
Other explanation:
Nil
68. Investment income
In RMB
Item Current amount Last amount
Other explanation:
Nil
69. Non-operation revenue
In RMB
Amount reckoned into
Item Current amount Last amount non-recurring gains/losses in
the Year
Other 4,421,353.01 4,210,594.98
Total 4,421,353.01 4,210,594.98
Government grants reckoned into current gains/losses:
In RMB
Whether the Whether Assets
Issuing Amount of Amount of
Item Issuing cause Property type impact of special related/Incom
subject this period last period
subsidies on subsidies e related
141
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
the current
profit and
loss
Total -- -- -- -- -- 0.00 0.00 --
Other explanation:
Nom-operation revenue form last period refers to the rental income settlement with custodian, that is 2,743,610.20 Yuan and
compensate 1,086,507.70 Yuan. The non-operation revenue in the period refers to the rental income settlement with custodian, that is
2,731,336.54 Yuan and compensate 1,086,507.70 Yuan.
70. Non-operating expenditure
In RMB
Amount reckoned into
Item Current amount Last amount non-recurring gains/losses in
the Year
Total non-current assets
11,450.00 11,450.00
disposal losses
Including: fixed assets disposal
11,450.00 11,450.00
loss
Other 3,825,632.24 3,841,393.90 3,825,632.24
Total 3,837,082.24 3,841,393.90 3,837,082.24
Other explanation:
In the period and last period, the operation assets for assets to be disposed are not allocated by management, relevant maintenance
and management costs are paid by the revenue and loss compensation income from assets leasing (the assets to be disposed),
reckoned into non-operating expenditure
71. Income tax expense
(1) Income tax expense
In RMB
Item Current amount Last amount
Current income tax 1,462,738.41 171,678.36
Deferred income tax -556,129.98 -77,069.23
Total 906,608.43 94,609.13
(2) Adjustment on accounting profit and income tax expenses
In RMB
Item Current amount
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Total profit 4,798,188.16
Income tax measured by statutory/applicable tax rate 1,299,937.32
Impact on cost, expenses and losses that unable to deducted 34,830.04
Impact on deductible temporary differences or losses deductible
-428,158.93
which was un-recognized as deferred income tax assets
income tax expenses 906,608.43
Other explanation
Nil
72. Other comprehensive income
Found more in Note 57.
73. Items of cash flow statement
(1) Other cash received in relation to operation activities
In RMB
Item Current amount Last amount
Interest and Rent and utilities etc. 5,637,460.42 5,087,819.08
Other Current money 1,326,845.37 1,937,206.93
Total 6,964,305.79 7,025,026.01
Explanation on other cash received in relation to operation activities:
Nil
(2) Other cash paid in relation to operation activities
In RMB
Item Current amount Last amount
Management phase expenses as listing
charge, agency fee and three Meetings 5,852,380.76 5,588,378.31
operations expenses and office expenses
Rent and property fee and maintenance fee 3,156,370.65 2,364,764.52
Deposit and Margin paid 429,208.00 1,353,871.46
Market sales phase expenses as
1,485,218.63 1,474,565.46
advertisement promoted
Utilities 392,514.84 458,190.10
Total 11,315,692.88 11,239,769.85
Explanation on other cash paid in relation to operation activities:
143
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Nil
(3) Cash received from other investment activities
In RMB
Item Current amount Last amount
Explanation on cash received from other investment activities:
Nil
(4) Cash paid related with investment activities
In RMB
Item Current amount Last amount
Explanation on cash paid related with investment activities
Nil
(5) Other cash received in relation to financing activities
In RMB
Item Current amount Last amount
Explanation on other cash received in relation to financing activities:
Nil
(6) Cash paid related with financing activities
In RMB
Item Current amount Last amount
Explanation on cash paid related with financing activities:
Nil
74. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
Supplementary information This Period Last Period
1. Net profit adjusted to cash flow of
-- --
operation activities:
Net profit 3,891,579.73 -105,928.77
Add: Assets impairment provision 512,089.34 308,237.93
144
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Depreciation of fixed assets, consumption
of oil assets and depreciation of productive 227,325.32 148,832.71
biology assets
Amortization of intangible assets 753,000.00 753,000.00
Loss from disposal of fixed assets,
intangible assets and other long-term 11,450.00
assets(gain is listed with “-”)
Financial expense(gain listed with “-”) -0.04
Decrease of deferred income tax
-556,129.98 -77,069.23
asset( (increase is listed with “-”)
Decrease of inventory (increase is listed
892,581.48 2,114,059.85
with “-”)
Decrease of operating receivable accounts
-9,425,050.86 -446,376.91
(increase is listed with “-”)
Increase of operating payable accounts
4,327,601.02 -5,723,833.42
(decrease is listed with “-”)
Other 54.02
Net cash flow arising from operating
634,446.01 -3,029,023.82
activities
2. Material investment and financing not
-- --
involved in cash flow
3. Net change of cash and cash
-- --
equivalents:
Balance of cash at period end 24,015,287.71 26,752,065.66
Less: Balance of cash at year-begin 26,752,065.66 30,163,866.78
Net increasing of cash and cash
-2,736,777.95 -3,411,801.12
equivalents
(2) Net cash paid for obtaining subsidiary in the Period
In RMB
Amount
Including: --
Including: --
Including: --
Other explanation:
Nil
145
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
(3) Net cash received by disposing subsidiary in the Period
In RMB
Amount
Including: --
Including: --
Including: --
Other explanation:
Nil
(4) Constitution of cash and cash equivalent:
In RMB
Item Ending balance Opening balance
Ⅰ. Cash 24,015,287.71 26,752,065.66
Including: Cash on hand 132,652.06 141,271.10
Bank deposit available for payment at
23,768,774.82 26,610,794.56
any time
Other monetary fund available for
113,860.83
payment at any time
Ⅲ. Balance of cash and cash equivalent at
24,015,287.71 26,752,065.66
period-end
Other explanation:
Nil
75. Notes of changes of owners’ equity
Explain the name and adjusted amount in “Other” at end of last period:
Nil
76. Assets with ownership or use right restricted
In RMB
Item Ending book value Restriction reasons
Total 0.00 --
Other explanation:
Nil
146
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
77. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Ending foreign currency Ending RMB balance
Item Convert rate
balance converted
HKD 1.53 0.8952 1.37
Other explanation:
Nil
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,
disclosed main operation place, book-keeping currency and basis for selection; if the book-keeping
currency changed, explain reasons
□ Applicable √ Not applicable
78. Hedging
Disclosed hedging items and relevant hedging instrument based on hedging’s category, disclosed qualitative and quantitative
information for the arbitrage risks:
Nil
79. Other
Nil
VIII. Changes of consolidation range
1. Enterprise combined under different control
(1) Enterprise combined under different control in the Period
In RMB
Income of Net profit of
Standard to
Time point Cost of Ratio of Acquired acquiree from acquiree from
Purchasing determine the
Acquiree for equity equity equity way Equity purchasing purchasing
date purchasing
obtained obtained obtained obtained way date to date to
date
period-end period-end
Other explanation:
Nil
147
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
(2) Combination cost and goodwill
In RMB
Combination cost
Determination method for fair value of the combination cost and contingent consideration and changes:
Nil
Main reasons for large goodwill resulted:
Nil
Other explanation:
Nil
(3) Identifiable assets and liability on purchasing date under the acquiree
In RMB
Fair value on purchasing date Book value on purchasing date
Determination method for fair value of the identifiable assets and liabilities:
Nil
Contingent liability of the acquiree bear during combination:
Nil
Other explanation:
Nil
(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing date
Whether it is a business combination realized by two or more transactions of exchange and a transaction of obtained control rights in
the Period or not
□Yes √No
(5) On purchasing date or period-end of the combination, combination consideration or fair value of
identifiable assets and liability for the acquiree are un-able to confirm rationally
Nil
(6) Other explanation
Nil
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
2. Enterprise combined under the same control
(1) Enterprise combined under the same control in the Period
In RMB
Income of the Net profit of
combined the combined
Income of the Net profit of
party from party from
Basis of Standard to combined the combined
Equity ratio period-begin period-begin
combined Combination determine the party during party during
Acquiree obtained in of of
under the date combination the the
combination combination combination
same control date comparison comparison
to the to the
period period
combination combination
date date
Other explanation:
Nil
(2) Combination cost
Combination cost
Explanation on contingent consideration and its changes:
Nil
Other explanation:
Nil
(3) Assets and liability of the combined party on combination date
On purchasing date At end of last period
Contingent liability of the combined party bear during combination:
Nil
Other explanation:
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
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
4. Subsidiary disposal
Whether lost controlling rights while dispose subsidiary on one time or not
□ Yes √ No
Whether lost controlling rights in the Period while dispose subsidiary on two or more steps or not
□ Yes √ No
5. Other reasons for consolidation range changed
Reasons for changed on consolidation range (such as new subsidiary established, subsidiary liquidated etc.)And relevant information
Nil
6. Other
During the reporting period, there is no change in the scope of consolidation.
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Main operation Share-holding ratio
Subsidiary Registered place Business nature Acquired way
place Directly Indirectly
Shenzhen
Emmelle Bicycle and spare
Shenzhen Shenzhen 70.00% Investment
Industrial Co., parts distribution
Ltd.
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
Nil
Controlling basis for the structuring entity included in consolidated range
Nil
Basis on determining to be an agent or consignor:
Nil
Other explanation:
Nil
150
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
(2) Important non-wholly-owned subsidiary
In RMB
Dividend announced to
Share-holding ratio of Gains/losses attributable Ending equity of
Subsidiary distribute for minority in
minority to minority in the Period minority
the Period
Shenzhen Emmelle
30.00% 1,287,942.26 2,913,127.47
Industrial Co., Ltd.
Explanation on share-holding ratio of minority different from ratio of voting right:
Nil
Other explanation:
Nil
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
Ending balance Opening balance
Subsidia Non-curr Non-curr Non-curr Non-curr
Current Total Current Total Current Total Current Total
ry ent ent ent ent
assets assets liability liability assets assets liability liability
assets liability assets liability
Shenzhe
n
Emmelle 42,841,4 845,466. 43,686,9 33,976,5 33,976,5 39,332,9 356,244. 39,689,2 34,271,9 34,271,9
Industria 78.93 81 45.74 20.84 20.84 70.84 97 15.81 31.79 31.79
l Co.,
Ltd.
In RMB
Current amount Last amount
Cash flow Cash flow
Total Total
Subsidiary Operation from Operation from
Net profit comprehensi Net profit comprehensi
Income operation Income operation
ve income ve income
activity activity
Shenzhen
Emmelle 141,970,520. 170,989,389.
4,293,140.88 -2,680,262.15 108,089.35 -3,088,083.12
Industrial 80 07
Co., Ltd.
Other explanation:
Nil
151
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
(4) Major restriction on using corporate assets and liquidate corporate debts
Nil
(5) Financial or other supporting provided to structuring entity that included in consolidated financial
statement
Nil
Other explanation:
Nil
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
(1) Owners equity shares changed in subsidiary
Nil
(2) Impact on minority’s interest and owners’ equity attributable to parent company
In RMB
Other explanation
Nil
3. Equity in joint venture and cooperative enterprise
(1) Important joint venture and cooperative enterprise
Share-holding ratio Accounting
treatment on
Main operation investment for
Name Registered place Business nature
place Directly Indirectly joint venture and
cooperative
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
Closing balance/current amount Opening balance /last period amount
152
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Other explanation
Nil
(3) Main financial information of the important cooperative enterprise
Closing balance/current amount opening balance /last period amount
Other explanation
Nil
(4) Financial summary for un-important joint venture or cooperative enterprise
In RMB
Ending balance /Current amount Opening balance /Last amount
Joint venture -- --
Total numbers measured by share-holding
-- --
ratio
Cooperative enterprise -- --
Total numbers measured by share-holding
-- --
ratio
Other explanation
Nil
(5) Assets transfer ability has major restriction from joint venture or cooperative enterprise
Nil
(6) Excess losses from joint venture or cooperative enterprise
In RMB
Un-confirmed losses not
Cumulative un-confirmed Cumulative un-confirmed
Name recognized in the Period (or net
losses losses at period-end
profit enjoyed in the Period)
Other explanation
Nil
(7) Un-confirmed commitment with investment concerned with joint venture
Nil
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
(8) Contingent liability with investment concerned with joint venture or cooperative enterprise
Nil
4. Co-runs operation
Share-holding ratio/ share enjoyed
Name Main operation place Registered place Business nature
Directly Indirectly
Share-holding ratio or shares enjoyed different from voting right ratio:
Nil
If the co-runs entity is the separate entity, basis of the co-runs classification
Nil
Other explanation
Nil
5. Equity in structuring entity that excluding in the consolidated financial statement
Relevant explanation
Nil
6. Other
Nil
X. Risk related with financial instrument
The major financial instruments of the Company consist of monetary funds, trade receivables, other receivables,
trade payables, other payables, etc. details of these financial instruments are disclosed in the relevant notes. Risks
relating to these financial instruments and risk management policies adopted by the Company to minimize these
risks are detailed as follows. Management of the Company manages and monitors the risk exposures, to make sure
they are under control.
1. Risk management targets and policies
The objectives of the Company’s risk management is to balance the risk and income, reduce the negative risk
impact of operating performance to the lowest level, maximize the interests of shareholders and other equity
investors. Based on these objectives, the Company has established risk management policies to identify and
analyze the risks faced by the Company, set adequate risk acceptable level and designed relevant internal control
system to monitor the level of risks. The Company regularly reviews these policies and related internal control
system to adapt to market development and change of operating activities of the Company. The major risks arising
from the Company’s financial instruments are credit risk and liquidity risk.
154
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
(1)Credit risk
Credit risk represents the risk of financial loss suffered by a party to a financial instrument due to failure of
performance obligation of another party.
Credit risk of the Company is managed by category. Credit risk mainly arises from bank deposits and trade
receivables. Since the bank deposits of the Company are mainly placed with those banks of high credit rating, the
Company expects no significant credit risk on bank deposits.
As for trade receivables, the Company establishes relevant policies to control credit risk exposure. The Company,
based on financial position of debtors, their credit records, market conditions and other factors, makes assessment
on debtors’ credit quality and sets relevant limit on amount of debt and credit term. The maximum credit risk
exposure assumed by the Company equals to the sum of carrying value of every financial asset in the balance
sheet. The Company provides no guarantee that may lead it to be exposed to credit risks.
(2)Liquidity risk
Liquidity risk refers to the risk of capital shortage of the Company when performing settlement obligation via
delivery of cash or other financial assets.
When managing liquidity risk, the Company maintains and monitors such cash and cash equivalents as deemed
adequate by the management, so as to satisfy its operation needs and minimize influence of fluctuation of cash
flow. Management of the Company monitors application of bank borrowings to make sure it complies with
relevant borrowing agreements.
2. Capital management
The capital management policy of the Company is designed to ensure sustainable operation Of the Company so as
to bring shareholders return and benefit other stakeholders, and to minimize capital cost by maintaining optimal
capital structure.
In order to maintain and adjust capital structure, the Company may adjust share dividend paid to shareholders or
issue new shares.
The Company monitors capital structure based on gearing ratio (total liabilities divided by total assets). As at 31
December 2016, the gearing ratio of the Company was 67.77% (31 December 2015: 70.81%)
XI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
In RMB
Item Ending fair value
155
深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
First-order Second-order Third-order Total
I. Sustaining measured by
-- -- -- --
fair value
II. Non-sustaining
0.00
measured by fair value
2. Recognized basis for the market price sustaining and non-persistent measured by fair value on
first-order
Nil
3. Valuation technique and qualitative and quantitative information on major parameters for the fair value
measure sustaining and non-persistent on second-order
Nil
4. Valuation technique and qualitative and quantitative information on major parameters for the fair value
measure sustaining and non-persistent on third-order
Nil
5. Adjustment information and sensitivity analysis of unobservable parameters for the fair value measure
sustaining and non-persistent on third-order
Nil
6. Sustaining items measured by fair value, as for the conversion between at all levels, reasons for
conversion and policy for conversion time point
Nil
7. Changes of valuation technique in the Period
Nil
8. Financial assets and liability not measured by fair value
Nil
9. Other
Nil
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XII. Related party and related transactions
1. Parent company of the enterprise
Share-holding ratio
Voting right ratio on
Parent company Registration place Business nature Registered capital on the enterprise for
the enterprise
parent company
Industrial investment
(the concrete project
is declared in
addition); domestic
Shenzhen Guosheng commerce, supply
Energy Investment and marketing
Shenzhen RMB 446,800,000 11.52% 11.52%
Development Co., materials (excluding
Ltd. monopolized
commodities, and
commodity under
special government
control)
Explanation on parent company of the enterprise
Ultimate controller of the Company is Ji Hanfei
Other explanation:
Nil
2. Subsidiary of the Enterprise
Found more in Note IX-1
3. Cooperative enterprise and joint venture
Found more in Note IX-3
Other cooperative enterprise and joint venture that have related transaction with the Company in the Period or occurred in pervious
period
Name Relationship
Other explanation
Nil
4. Other related party
Other related party Relationship with the Enterprise
Other explanation
Nil
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5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
Approved transaction Whether more than
Related party Content Current amount Last amount
amount the transaction amount
Goods sold/labor service providing
In RMB
Related party Content Current amount Last amount
Explanation on goods purchasing, labor service providing and receiving
Nil
(2) Related trusteeship/contract and delegated administration/outsourcing
Trusteeship/contract
In RMB
Income from
Client/ Entrusting party/ Yield pricing
Assets type Starting date Maturity date trusteeship/contra
contract-out party contractor basis
ct
Explanation on related trusteeship/contract
Nil
Delegated administration/outsourcing
In RMB
Pricing basis of trustee
Client/
Entrusting party/ trustee fee/outsourcing
contract-out Assets type Starting date Maturity date
contractor fee/outsourcing fee recognized in
party
fee the Period
Explanation on related administration/outsourcing
Nil
(3) Related lease
As a lessor for the Company:
In RMB
Lease income in recognized in Lease income in recognized last
Lessee Assets type
the Period the Period
As a lessee for the Company:
In RMB
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Lease income in recognized in Lease income in recognized last
Lessor Assets type
the Period the Period
Explanation on related lease
Nil
(4) Related guarantee
As a guarantor for the Company
In RMB
Guarantee completed
Secured party Amount guarantee Starting date Maturity date
(Y/N)
As a secured party for the Company
In RMB
Guarantee completed
Guarantor Amount guarantee Starting date Maturity date
(Y/N)
Explanation on related guarantee
Nil
(5) Borrowed funds of related party
In RMB
Related party Borrowed funds Starting date Maturity date Note
Borrowing
Lending
(6) Assets transfer and debt restructuring of related party
In RMB
Related party Transaction content Current amount Last amount
(7) Remuneration of key manager
In RMB
Item Current amount Last amount
Remuneration of key manager 1,556,687.00 1,840,900.00
(8) Other related transactions
Nil
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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
(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.
7. Commitments of related party
Nil
8. Other
Nil
XIII. Share-based payment
1. General share-based payment
□ Applicable √ Not applicable
2. Share-based payment settled by equity
□ Applicable √ Not applicable
3. Share-based payment settled by cash
□ Applicable √ Not applicable
4. Revised and termination on share-based payment
Nil
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5. Other
Nil
XIV. 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
XV. Events after balance sheet date
1. Important non-adjustment items
In RMB
Impact on financial status and Reasons on un-able to estimated
Item Content
operation results the impact number
2. Profit distribution
In RMB
3. Sales return
Nil
4. Other events after balance sheet date
Nil
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XVI. Other important events
1. Previous accounting errors collection
(1) Retrospective restatement
In RMB
Impact items of statement
Content Treatment procedures Cumulative impacted number
during a comparison
(2) Prospective application
Reasons for prospective application
Accounting error correction 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 profit
Income tax
Item Revenue Expenses Total profit Net profit attributable to
expenses
owners of parent
company
Other explanation
Nil
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6. Segment
(1) Recognition basis and accounting policy for reportable segment
Nil
(2) Financial information for reportable segment
In RMB
Item Offset between segments Total
(3) The company has no reportable segments, or unable to disclose total assts and total liability for
reportable segments, explain reasons
Nil
(4) Other explanation
Nil
7. Major transaction and events makes influence on investor’s decision
Nil
8. Other
1. Instructions for continuing operations
On 11th, May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng Energy
Investment and Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming
the Company as the Company couldn’t pay off the matured debts and was seriously insolvent. On 12th, Oct., 2012,
Shenzhen Municipal Intermediate People's Court ruled to accept the application proposed by Guosheng Energy
according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. In late October, 2012, Shenzhen
Municipal Intermediate People's Court ruled to reform the Company since 25th, Oct., 2012 according to (2012)
Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen) Mallesons and
Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. Subsequently, Shenzhen
Municipal Intermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1 written decision,
and approved the Company to manage property and business affairs by itself under the supervision of custodians
according to the law. On 5 November 2013, the Shenzhen Intermediate People’s Court (2012) Shen Zhong Fa Po
Zi No. 30-6 Civil Ruling Paper judged that approved the reorganization plan of the Company. On 27 December
2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012) Shen Zhong Fa Po Zi No. 30-10 ruled
that the reorganization plan of CBC was completed and bankruptcy procedures of CBC closed down.
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The Company has solved the debt problem by reforming, realized the net assets with positive value, the main
business of bicycle is able to be maintained and realizes the stable development. The Company has set up the
conditions for introducing the recombination party in the reforming plan, and expects to restore the abilities of
sustainable operation and sustained profitability by reorganization. The conditions of introducing the
recombination party includes: the assessed value of net assets should be no less than 2 billion Yuan, the net assets
in the same year for implementing the major reorganization should be no less than 200 million Yuan. The
Company doesn’t have the recombination party at the moment.
2. Proposed non-public issue of shares for purpose of assets acquisition in 2016
In July 2016, the Company started to plan a non-public issue of shares with proceeds to be utilized to acquire
material assets. The Plan on Non-public Issue of A shares in 2016 was considered and approved by the Board of
the Company. Based on the due diligence, audit, assessment and business negation with intermediates, taking into
account the conditions of capital market and actual conditions of the Company, the Board of the Company
considered and approved the Proposal Relating to Adjusting the Plan of non-public of A Shares and the Plan on
Non-public Issue of A shares in 2016 (amended) in February 2017. According to the amended plan, the total
proceeds to be raised from this non-public issue are estimated not to exceed RMB1.2 billion after deduction of
issuance expense. Among which, RMB800 million is planned to be used in the “project of construction of
intercom equipments and system platform for smart community buildings”, and RMB400 million is planned to be
used in the “project of construction of online and offline sales platform and R&D center for sport experiences”.
For additional details, please refer to the announcement issued by the Board on behalf of the Company.
As at the date approving issuance of the audited report, this proposal is still pending for approval from the general
meeting.
XVII. Principle notes of financial statements of parent company
1. Accounts receivable
(1) Category
In RMB
Ending balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Types Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Total 0.00 0.00% 0.00 0.00% 0.00 0.00% 0.00 0.00%
Receivable with single significant amount and withdrawal bad debt provision separately at end of period:
□ Applicable √ Not applicable
In combination, accounts receivable whose bad debts provision was accrued by age analysis:
□ Applicable √ Not applicable
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In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable:
Nil
(2) Bad debt provision accrual, collected or reversed
Accrual bad debt provision 0.00 Yuan; collected or reversed 0.00 Yuan.
Major bad debt provision reversal or collected in the Period
In RMB
Company Amount reversal or collected Collection way
Total 0.00 --
Nil
(3) Receivables actually written-off during the reporting period
In RMB
Item Amount written off
Written-off for the major receivable
In RMB
Nature of Procedures Arising from related
Company Amount written off Reason for write-off
receivables implemented transactions
Total -- 0.00 -- -- --
Explanation for write-off of receivables
Nil
(4) Top 5 receivables at ending balance by arrears party
Nil
(5) Receivable derecognition due to transfer of financial assets
Nil
(6) Assets and liability resulted by receivable transfer and continuous involvement
Nil
Other explanation:
Nil
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2. Other accounts receivable
(1) Classification
In RMB
Ending balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Type Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Other account
receivable with
single major amount 9,113,68 9,113,689 12,397, 12,397,333.
97.32% 98.55%
and withdrawal bad 9.74 .74 333.29 29
debt provision for
single item
Other receivables
with bad debt 251,150. 250,396.5 182,762
2.68% 753.45 0.30% 1.45% 548.29 0.30% 182,213.71
provision accrual by 00 5 .00
credit portfolio
9,364,83 9,364,086 12,580, 12,579,547.
Total 100.00% 753.45 0.01% 100.00% 548.29 0.01%
9.74 .29 095.29 00
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period
√ Applicable □ Not applicable
In RMB
Closing balance
Other receivables (unit)
Other receivables Provision for bad debt Accrue ratio Accrue reason
Shenzhen Emmelle
9,113,689.74
Industrial Co., Ltd.
Total 9,113,689.74 -- --
In combination, other accounts receivable whose bad debts provision was accrued by age analysis
√ Applicable □ Not applicable
In RMB
Ending balance
Age
Other receivable bad debts provision Accrual ratio
Within one year
Within one year 68,388.00 205.16 0.30%
Subtotal of within one year 68,388.00 205.16 0.30%
1-2 year 182,762.00 548.29 0.30%
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深圳中华自行车(集团)股份有限公司 2016 年年度报告全文
Total 251,150.00 753.45 0.30%
Explanations on combination determine:
Nil
In combination, withdrawal proportion of bad debt provision based on balance proportion for other account receivable
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable
□ Applicable √ Not applicable
(2) Bad debt provision accrual, collected or reversed
Accrual bad debt provision 205.16 Yuan; collected or reversed 0 Yuan.
Major bad debt provision reversal or collected in the Period
In RMB
Company Amount reversal or collected Collection way
Total 0.00 --
Nil
(3) Other receivables actually written-off during the reporting period
In RMB
Item Amount written off
Written-off for the major other receivable:
In RMB
Nature of other Procedures Arising from related
Company Amount written off Reason for write-off
receivables implemented transactions
Total -- 0.00 -- -- --
Explanation for write-off of other receivables:
Nil
(4) Other receivables by nature
In RMB
Nature Ending book balance Opening book balance
Current money 9,113,689.74 12,397,333.29
Margin or deposit 239,750.00 182,762.00
Equipment amount 11,400.00
Total 9,364,839.74 12,580,095.29
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(5) Top 5 other receivables at ending balance by arrears party
In RMB
Ratio in total
Ending balance of
Company Nature Ending balance Book age ending balance of
bad bet provision
other receivables
Shenzhen Emmelle
Current money 9,113,689.74 Within one year 97.32%
Industrial Co., Ltd.
Shenzhen Materials
Margin or deposit 135,723.00 0-2 year 1.45% 407.17
Group Co., Ltd.
Shenzhen
Anjingheng Margin or deposit 90,100.00 1-2 year 0.96% 270.30
Industrial Co. Ltd.
Shenzhen
Baifanghe Property Margin or deposit 13,627.00 1-2 year 0.15% 40.88
Co., Ltd.
Shenzhen
Hongkang
Equipment
Instrument 11,400.00 Within one year 0.12% 34.20
amount
Technology Co.,
Ltd.
Total -- 9,364,539.74 -- 100.00% 752.55
(6) Account receivable with government subsidy involved
In RMB
Time, amount and basis
Company Item Ending balance Ending book age
for money collected
Total -- 0.00 -- --
(7) Other receivable derecognition due to transfer of financial assets
Nil
(8) Assets and liability resulted by other receivable transfer and continuous involvement
Nil
Other explanation:
Nil
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3. Long-term equity investment
In RMB
Ending balance Opening balance
Item
Book balance Impairment Book value Book balance Impairment Book value
Investment for
1,400,000.00 1,389,620.27 1,400,000.00 1,389,620.27
subsidiary
Total 1,400,000.00 1,389,620.27 10,379.73 1,400,000.00 1,389,620.27 10,379.73
(1) Investment for subsidiary
In RMB
Ending balance of
Impairment
The invested entity Opening balance Increased Decreased Ending balance impairment
accrual
provision
Shenzhen
Emmelle Industrial 1,400,000.00 1,400,000.00 1,389,620.27
Co., Ltd.
Total 1,400,000.00 0.00 0.00 1,400,000.00 0.00 1,389,620.27
(2) Investment for associates and joint venture
In RMB
+,-
Ending
Other Cash
Investme balance
Additiona comprehe dividend
Opening nt gains Other Ending of
Company l Capital nsive or profit Impairme
balance recognize equity Other balance impairme
investmen reduction income announce nt accrual
d under change nt
t adjustmen d to
equity provision
t issued
I. Joint venture
Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
II. Associated enterprise
Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(3) Other explanation
Nil
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4. Operating income and cost
In RMB
Current amount Last amount
Item
Income Cost Income Cost
Main business 32,692.31 32,051.28
Other business 3,098,499.93 841,722.06 3,150,841.97 1,151,379.27
Total 3,098,499.93 841,722.06 3,183,534.28 1,183,430.55
Other explanation:
Nil
5. Investment gains
In RMB
Item Current amount Last amount
6. Other
Nil
XVIII. Supplementary Information
1. Current non-recurring gains/losses
√ Applicable □ Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of
-11,450.00
non-current asset
Other non-operating income and expenditure
595,720.77
except for the aforementioned items
Less: Impact on income tax 5,201.21
Impact on minority shareholders’ equity 4,681.08
Total 574,388.48 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
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2. REO and earnings per share
Earnings per share
Profits during report period Weighted average ROE Diluted EPS
Basic EPS (RMB/Share)
(RMB/Share)
Net profits belong to common stock
19.93% 0.0047 0.0047
stockholders of the Company
Net profits belong to common stock
stockholders of the Company after
15.53% 0.0037 0.0037
deducting nonrecurring gains and
losses
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
(3) Explain accounting difference over the accounting rules in and out of China; as for the difference
adjustment for data audited by foreign auditing organ, noted the name of such foreign organ
Nil
4. Other
Nil
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Section XII. 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. Original audit report with seal of the accounting firm and signature and seal of CPAs.
3. Originals documents of the Company and manuscripts of public notices that disclosed in the newspaper
designated by CSRC in the report period.
4. English version of the Annual Report 2016.
172
