Shenzhen China Bicycle Company (Holdings) Limited
Semi-Annual Report 2020
Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was unaudited.
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by Shenzhen China Bicycle Company (Holdings) Limited
2020-06-30
In RMB
Item 2020-6-30 2019-12-31
Current assets:
Monetary funds 12,214,263.85 6,074,367.91
Settlement provisions
Capital lent
Tradable financial assets
Derivative financial assets
Note receivable 150,000.00 580,000.00
Account receivable 46,088,457.94 38,616,523.93
Receivable financing
Accounts paid in advance 2,489,164.74 938,425.99
1
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 458,177.20 740,354.71
Including: Interest receivable
Dividend receivable
Buying back the sale of financial
assets
Inventories 4,125,856.91 6,078,330.30
Contractual assets
Assets held for sale
Non-current asset due within one
year
Other current assets 3,247,541.04 3,318,514.25
Total current assets 68,773,461.68 56,346,517.09
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment
Investment in other equity
instrument
Other non-current financial assets
Investment real estate
Fixed assets 3,963,702.62 4,191,503.33
Construction in progress
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 376,500.00 753,000.00
Expense on Research and
Development
Goodwill
2
Long-term expenses to be
apportioned
Deferred income tax asset 980,142.35 1,042,582.16
Other non-current asset 400,000.00 400,000.00
Total non-current asset 5,720,344.97 6,387,085.49
Total assets 74,493,806.65 62,733,602.58
Current liabilities:
Short-term loans
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable
Account payable 8,719,444.82 10,191,385.23
Accounts received in advance 1,739,953.80
Contractual liability 8,025,100.53
Selling financial asset of
repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 582,921.26 599,962.73
Taxes payable 823,926.77 585,062.75
Other account payable 36,755,216.28 38,175,654.98
Including: Interest payable
Dividend payable
Commission charge and
commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 54,906,609.66 51,292,019.49
3
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: Preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long-term wages payable
Accrual liability
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 0.00 0.00
Total liabilities 54,906,609.66 51,292,019.49
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 -1,201,938,432.06 -1,204,736,075.56
Total owner’ s equity attributable to
9,917,039.80 7,119,396.30
parent company
Minority interests 9,670,157.19 4,322,186.79
Total owner’ s equity 19,587,196.99 11,441,583.09
Total liabilities and owner’ s equity 74,493,806.65 62,733,602.58
4
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 2020-6-30 2019-12-31
Current assets:
Monetary funds 6,838,710.05 1,959,804.92
Trading financial assets
Derivative financial assets
Note receivable 150,000.00 580,000.00
Account receivable 29,017,233.11 32,843,536.70
Receivable financing
Accounts paid in advance 1,497,198.05 76,937.00
Other account receivable 124,488.41 485,062.44
Including: Interest receivable
Dividend receivable
Inventories 223,422.27 1,333,374.72
Contractual assets
Assets held for sale
Non-current assets maturing within
one year
Other current assets 3,167,103.71 2,830,705.01
Total current assets 41,018,155.60 40,109,420.79
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 13,010,379.73 4,235,379.73
Investment in other equity
instrument
Other non-current financial assets
5
Investment real estate
Fixed assets 3,650,474.41 3,813,708.80
Construction in progress
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 376,500.00 753,000.00
Research and development costs
Goodwill
Long-term deferred expenses
Deferred income tax assets
Other non-current assets 400,000.00 400,000.00
Total non-current assets 17,437,354.14 9,202,088.53
Total assets 58,455,509.74 49,311,509.32
Current liabilities
Short-term borrowings
Trading financial liability
Derivative financial liability
Notes payable
Account payable 5,835,192.76 9,002,524.60
Accounts received in advance 572,687.18
Contractual liability 7,625,884.18
Wage payable 486,086.77 507,738.35
Taxes payable 27,656.38 27,797.28
Other accounts payable 40,494,648.19 36,803,498.12
Including: Interest payable
Dividend payable
Liability held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 54,469,468.28 46,914,245.53
Non-current liabilities:
Long-term loans
6
Bonds payable
Including: preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long term employee compensation
payable
Accrued liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 0.00 0.00
Total liabilities 54,469,468.28 46,914,245.53
Owners’ equity:
Share capital 551,347,947.00 551,347,947.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital public reserve 627,834,297.85 627,834,297.85
Less: Inventory shares
Other comprehensive income
Special reserve
Surplus reserve 32,673,227.01 32,673,227.01
Retained profit -1,207,869,430.40 -1,209,458,208.07
Total owner’s equity 3,986,041.46 2,397,263.79
Total liabilities and owner’s equity 58,455,509.74 49,311,509.32
3. Consolidated Profit Statement
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Total operating income 42,656,355.21 38,274,433.02
Including: Operating income 42,656,355.21 38,274,433.02
7
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 40,013,244.72 39,540,757.20
Including: Operating cost 36,100,765.65 35,329,514.97
Interest expense
Commission charge and
commission expense
Cash surrender value
Net amount of expense of
compensation
Net amount of withdrawal of
insurance contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Tax and extras 19,899.04 36,587.77
Sales expense 1,478,378.78 1,875,723.61
Administrative expense 1,679,719.44 2,359,383.84
R&D expense 753,742.20 0.00
Financial expense -19,260.39 -60,452.99
Including: Interest
expenses
Interest income -31,929.72 -71,134.40
Add: other income 10,105.77 0.00
Investment income (Loss is
listed with “-”)
Including: Investment income
on affiliated company and joint venture
The termination of income
recognition for financial assets measured
by amortized cost(Loss is listed with “-”)
Exchange income (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Income from change of fair
8
value (Loss is listed with “-”)
Loss of credit impairment
170,387.85 -17,479.82
(Loss is listed with “-”)
Losses of devaluation of asset
40,616.29
(Loss is listed with “-”)
Income from assets disposal
24,936.44 0.00
(Loss is listed with “-”)
III. Operating profit (Loss is listed with
2,848,540.55 -1,243,187.71
“-”)
Add: Non-operating income 744,788.91 148,627.00
Less: Non-operating expense 2,676.80 50.00
IV. Total profit (Loss is listed with “-”) 3,590,652.66 -1,094,610.71
Less: Income tax expense 170,038.76 -4,152.36
V. Net profit (Net loss is listed with “-”) 3,420,613.90 -1,090,458.35
(i) Classify by business continuity
1.continuous operating net profit
3,420,613.90 -1,090,458.35
(net loss listed with ‘-”)
2.termination of net profit (net loss
listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s
2,797,643.50 -798,946.17
of parent company
2.Minority shareholders’ gains and
622,970.40 -291,512.18
losses
VI. Net after-tax of other comprehensive
income
Net after-tax of other comprehensive
income attributable to owners of parent
company
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of
9
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(ii) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial assets
re-classify to other comprehensive
income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences
arising on translation of foreign currency
financial statements
7.Other
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income 3,420,613.90 -1,090,458.35
Total comprehensive income
2,797,643.50 -798,946.17
attributable to owners of parent Company
Total comprehensive income
622,970.40 -291,512.18
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0051 -0.0014
(ii) Diluted earnings per share 0.0051 -0.0014
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
10
Person in charge of Accounting Institution: Zhong Xiaojin
4. Profit Statement of Parent Company
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Operating income 15,950,824.42 25,404,378.84
Less: Operating cost 12,634,196.40 23,670,022.62
Taxes and surcharge 7,511.96 14,194.90
Sales expenses 256,975.98 240,105.59
Administration expenses 1,136,110.22 1,721,493.88
R&D expenses 753,742.20 0.00
Financial expenses -11,110.06 -13,583.08
Including: interest
expenses
Interest income -16,963.68 -18,497.84
Add: other income 8,595.12 0.00
Investment income (Loss is
listed with “-”)
Including: Investment income
on affiliated Company and joint venture
The termination of
income recognition for financial assets
measured by amortized cost (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Changing income of fair
value (Loss is listed with “-”)
Loss of credit impairment
204,620.45 -39,523.02
(Loss is listed with “-”)
Losses of devaluation of asset
(Loss is listed with “-”)
Income on disposal of assets
24,936.44 0.00
(Loss is listed with “-”)
II. Operating profit (Loss is listed with
1,411,549.73 -267,378.09
“-”)
Add: Non-operating income 177,227.94 148,627.00
11
Less: Non-operating expense
III. Total Profit (Loss is listed with “-”) 1,588,777.67 -118,751.09
Less: Income tax
IV. Net profit (Net loss is listed with
1,588,777.67 -118,751.09
“-”)
(i)continuous operating net profit
1,588,777.67 -118,751.09
(net loss listed with ‘-”)
(ii) termination of net profit (net
loss listed with ‘-”)
V. Net after-tax of other comprehensive
income
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial
assets re-classify to other
comprehensive income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging
12
reserve
6.Translation differences
arising on translation of foreign
currency financial statements
7.Other
VI. Total comprehensive income 1,588,777.67 -118,751.09
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 25,999,057.43 8,643,245.76
services
Net increase of customer deposit
and interbank deposit
Net increase of loan from central
bank
Net increase of capital borrowed
from other financial institution
Cash received from original
insurance contract fee
Net cash received from reinsurance
business
Net increase of insured savings
and investment
Cash received from interest,
commission charge and commission
Net increase of capital borrowed
Net increase of returned business
capital
Net cash received by agents in sale
and purchase of securities
13
Write-back of tax received 10,712.11 57,448.96
Other cash received concerning
15,006,655.40 3,906,596.03
operating activities
Subtotal of cash inflow arising from
41,016,424.94 12,607,290.75
operating activities
Cash paid for purchasing
commodities and receiving labor 25,572,959.40 7,104,453.81
service
Net increase of customer loans and
advances
Net increase of deposits in central
bank and interbank
Cash paid for original insurance
contract compensation
Net increase of capital lent
Cash paid for interest, commission
charge and commission
Cash paid for bonus of guarantee
slip
Cash paid to/for staff and workers 2,860,928.35 3,076,592.48
Taxes paid 263,658.94 5,517,601.44
Other cash paid concerning
10,968,482.31 5,809,899.76
operating activities
Subtotal of cash outflow arising from
39,666,029.00 21,508,547.49
operating activities
Net cash flows arising from operating
1,350,395.94 -8,901,256.74
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment
income
Net cash received from disposal of
fixed, intangible and other long-term 64,500.00 0.00
assets
Net cash received from disposal of
subsidiaries and other units
14
Other cash received concerning
investing activities
Subtotal of cash inflow from investing
64,500.00 0.00
activities
Cash paid for purchasing fixed,
0.00 16,814.16
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
0.00 16,814.16
activities
Net cash flows arising from investing
64,500.00 -16,814.16
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
4,725,000.00
investment
Including: Cash received from
absorbing minority shareholders’ 4,725,000.00
investment by subsidiaries
Cash received from loans
Other cash received concerning
2,016,600.82
financing activities
Subtotal of cash inflow from financing
4,725,000.00 2,016,600.82
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
0.00 2,000,000.00
financing activities
Subtotal of cash outflow from financing
0.00 2,000,000.00
activities
15
Net cash flows arising from financing
4,725,000.00 16,600.82
activities
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash
6,139,895.94 -8,901,470.08
equivalents
Add: Balance of cash and cash
6,074,367.91 16,488,886.26
equivalents at the period -begin
VI. Balance of cash and cash
12,214,263.85 7,587,416.18
equivalents at the period -end
6. Cash Flow Statement of Parent Company
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 7,581,014.00 2,949,631.00
services
Write-back of tax received 9,110.82 57,448.96
Other cash received concerning
19,278,497.89 4,242,368.68
operating activities
Subtotal of cash inflow arising from
26,868,622.71 7,249,448.64
operating activities
Cash paid for purchasing
commodities and receiving labor 2,063,572.76 721,217.50
service
Cash paid to/for staff and workers 2,253,629.12 1,498,002.56
Taxes paid 229,400.44 5,319,908.09
Other cash paid concerning
8,732,615.26 4,418,229.99
operating activities
Subtotal of cash outflow arising from
13,279,217.58 11,957,358.14
operating activities
Net cash flows arising from operating
13,589,405.13 -4,707,909.50
activities
II. Cash flows arising from investing
activities:
16
Cash received from recovering
investment
Cash received from investment
income
Net cash received from disposal of
fixed, intangible and other long-term 64,500.00 0.00
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from investing
64,500.00 0.00
activities
Cash paid for purchasing fixed,
0.00 16,814.16
intangible and other long-term assets
Cash paid for investment 8,775,000.00
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
8,775,000.00 16,814.16
activities
Net cash flows arising from investing
-8,710,500.00 -16,814.16
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Cash received from loans
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
activities
Cash paid for settling debts
Cash paid for dividend and profit
distributing or interest paying
Other cash paid concerning
financing activities
17
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
exchange rate
V. Net increase of cash and cash
4,878,905.13 -4,724,723.66
equivalents
Add: Balance of cash and cash
1,959,804.92 8,889,572.73
equivalents at the period -begin
VI. Balance of cash and cash
6,838,710.05 4,164,849.07
equivalents at the period -end
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
2020 semi-annual
Owners’ equity attributable to the parent Company
Other
equity instrument Other Minori Total
Item Perpe Less: compr Provisi ty owners
Share Reaso Surplu Retain
tual Capital Invent ehensi on of Subtot interes ’
capita Prefe nable s ed Other
capit reserve ory ve genera al ts equity
l rred Other reserve reserve profit
al shares incom l risk
stock
secur e
ities
I. Balance at the 551,3 627,83 32,673 -1,204,
7,119, 4,322,
11,441
end of the last 47,94 4,297. ,227.0 736,07 ,583.0
396.30 186.79
year 7.00 85 1 5.56 9
Add:
Changes of
accounting
policy
Error
correction of the
last period
Enterprise
combine under
the same
control
Other
18
II. Balance at 551,3 627,83 32,673 -1,204,
7,119, 4,322,
11,441
the beginning of 47,94 4,297. ,227.0 736,07 ,583.0
396.30 186.79
this year 7.00 85 1 5.56 9
III. Increase/
Decrease in this 2,797, 2,797, 5,347, 8,145,
year (Decrease
643.50 643.50 970.40 613.90
is listed with
“-”)
(i) Total 2,797, 2,797, 622,97 3,420,
comprehensive
643.50 643.50 0.40 613.90
income
(ii) Owners’
devoted and 4,725, 4,725,
decreased 000.00 000.00
capital
1.Common 4,725, 4,725,
shares invested
000.00 000.00
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or
shareholders)
4. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
19
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at 551,3 627,83 32,673 -1,201,
9,917, 9,670,
19,587
the end of the 47,94 4,297. ,227.0 938,43 ,196.9
039.80 157.19
report period 7.00 85 1 2.06 9
Last Period
In RMB
2019 semi-annual
Owners’ equity attributable to the parent Company
Other
equity instrument Other
所有者
Item Perp Less: compr Provisi 少数股
Share Reaso Surplu Retain 权益合
etual Capital Invent ehensi on of Subtot 东权益
capita Prefe nable s ed Other
capit reserve ory ve genera al 计
l rred Other reserve reserve profit
al shares incom l risk
stock
secur e
ities
I. Balance at 551,3 627,83 32,673 -1,197, 14,306
2,674,1 16,980,
the end of the 47,94 4,297. ,227.0 549,16 ,301.9
62.80 464.74
last year 7.00 85 1 9.92 4
20
Add:
Changes of
accounting
policy
Error
correction of
the last period
Enterprise
combine
under the
same control
Other
II. Balance at 551,3 627,83 32,673 -1,197, 14,306
2,674,1 16,980,
the beginning 47,94 4,297. ,227.0 549,16 ,301.9
62.80 464.74
of this year 7.00 85 1 9.92 4
III. Increase/
Decrease in this -798,9 -798,9 -291,51 -1,090,
year (Decrease
46.17 46.17 2.18 458.35
is listed with
“-”)
(i) Total -798,9 -798,9 -291,51 -1,090,
comprehensive
46.17 46.17 2.18 458.35
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
21
provisions
3. Distribution
for owners (or
shareholders)
4. Other
(IV) Carrying
forward
internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at 551,3 627,83 32,673 -1,198, 13,507
2,382,6 15,890,
the end of the 47,94 4,297. ,227.0 348,11 ,355.7
50.62 006.39
report period 7.00 85 1 6.09 7
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
22
In RMB
2020 semi-annual
Other equity instrument
Perpet Other
Item Capital Less: Reasona Total
Share Preferr ual compreh Surplus Retaine
public Inventor ble Other owners’
capital ed capital Other ensive reserve d profit
reserve y shares reserve equity
stock securiti income
es
I. Balance at the 551,34 627,834, 32,673,2
-1,209,
2,397,263.
end of the last 7,947.0 458,20
297.85 27.01 79
year 0 8.07
Add:
Changes of
accounting
policy
Error
correction of the
last period
Other
II. Balance at the 551,34 627,834, 32,673,2
-1,209,
2,397,263.
beginning of this 7,947.0 458,20
297.85 27.01 79
year 0 8.07
III. Increase/
Decrease in this 1,588,7 1,588,777.
year (Decrease is 77.67 67
listed with “-”)
(i) Total 1,588,7 1,588,777.
comprehensive
77.67 67
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
23
1. Withdrawal of
surplus reserves
2. Distribution
for owners (or
shareholders)
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with surplus
reserve
4．Carry-over
retained earnings
from the defined
benefit plans
5．Carry-over
retained earnings
from other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
(VI)Others
IV. Balance at 551,34 627,834, 32,673,2
-1,207,
3,986,041.
the end of the 7,947.0 869,43
297.85 27.01 46
report period 0 0.40
Last period
In RMB
2019 semi-annual
Item Other equity Capital Less: Other Total
Share Reasonab Surplus Retained
instrument public Inventor compre Other owners’
capital le reserve reserve profit
Preferr Perpet Other reserve y shares hensive equity
24
ed ual income
stock capital
securit
ies
I. Balance at the 551,34 627,834 32,673, -1,203,77 8,076,968.4
end of the last 7,947.
,297.85 227.01 8,503.40 6
year 00
Add:
Changes of
accounting
policy
Error
correction of
the last period
Other
II. Balance at 551,34 627,834 32,673, -1,203,77 8,076,968.4
the beginning 7,947.
,297.85 227.01 8,503.40 6
of this year 00
III. Increase/
Decrease in this -118,751.
year (Decrease -118,751.09
09
is listed with
“-”)
(i) Total -118,751.
comprehensive -118,751.09
09
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
25
reserves
2. Distribution
for owners (or
shareholders)
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at 551,34 627,834 32,673, -1,203,89 7,958,217.3
the end of the 7,947.
,297.85 227.01 7,254.49 7
report period 00
III. Company Profile
1. History and basic information
26
According to the Approval Document SFBF (1991) No. 888 issued by the People’s Government of Shenzhen, Shenzhen China
Bicycle Company (Holdings) Limited (hereinafter referred to as the Company) was reincorporated as the company limited by shares
in November 1991. On 28 December 1991, upon the Approval Document SRYFZ(1991) No. 119 issued by Shenzhen Special
Economic Zone Branch of the People’s Bank of China, the Company got listed on Shenzhen Stock Exchange. Registered of the
Company amounted as 551,347,947.00 Yuan.
Legal representative: Li Hai
Location: No. 3008, Buxin Road, Luohu District, Shenzhen
Certificate for Uniform Social Credit Code: 914403006188304524
2. Business nature and main operation activities
The Company's industry: machinery manufacturing industry
Main business activities: Research & development of the bicycles, electric bicycles, electric motorcycles, motorcycles, electric
tricycles, electric four-wheelers, children's bicycles, exercise bikes, sports equipment, mechanical products, toys, electric toys,
electronic products, new energy equipment and storage equipment (lithium batteries, batteries, etc.), household appliances and spare
parts, and electronic components; wholesale, retail, import and export and related supporting business of above-mentioned products
(excluding commodities subject to state trade management, handling the application according to the relevant national regulations for
commodities involving quotas, license management and other special provisions and management,); fine chemical products (excluding
dangerous goods), wholesale and retail of carbon fiber composite materials; technology development of computer software, transfer of
self-developed technological achievements, and providing relevant technical information consultation; own property leasing; property
management. (The above projects do not involve special administrative measures for the implementation access of national regulations,
and those involving restricted projects and pre-existing administrative licenses must obtain the pre-existing administrative licensing
documents before operation.) Purchase and sale of gold products, platinum jewelry, palladium jewelry, K-gold jewelry, silver jewelry,
inlaid jewelry, jewelry, jade ware, gem-and-jade products, clocks and watches, precious metal materials, diamonds, jadeite, crafts
(except ivory and its products), calligraphy and painting, collection (except for antiques, cultural relics, and items prohibited by
national laws and administrative regulations).
Main products and services provided so far: EMMELLE bicycles, electrical bicycles, lithium battery material and gold jewelry.
3. Release of the financial report
The Financial Report released on 27 August 2020 after approved by 24th session of 10th BOD of the Company.
Two subsidiaries included in consolidate scope in the period, found more in 1. carry in Note IX. Equity in other entity.
IV. Compilation Basis of Financial Statement
1. Compilation Basis
The financial statement is prepared based on continuing operation assumptions, and according to actual occurrence, in line with
relevant accounting rules and follow important accounting policy and estimation.
27
2. Going concern
On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng Energy Investment Development
Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the Company as the Company couldn’t pay off
the matured debts and was seriously insolvent. On 12 October 2012, Shenzhen Municipal Intermediate People's Court ruled to accept
the application proposed by Guosheng Energy according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. On the last
ten-day of October 2012, Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25 October 2012
according to (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen) Mallesons and
Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. On the same day, Shenzhen Municipal
Intermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1 written decision, and approved the Company
to manage property and business affairs by itself under the supervision of custodians according to the law. On 5 November 2013, the
Shenzhen Intermediate People’s Court (2012) Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved the
reorganization plan of the Company. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012)
Shen Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures of the
Company closed down.
The Company has solved the debt problem by reforming, realized the net assets with positive value, the main business of bicycle is
able to be maintained and realizes the stable development. The Company has set up the conditions for introducing the recombination
party in the reforming plan, and expects to restore the abilities of sustainable operation and sustained profitability by reorganization.
The conditions of introducing the recombination party includes: the assessed value of net assets should be no less than 2 billion Yuan,
the net assets in the same year for implementing the major reorganization should be no less than 200 million Yuan. The Company
doesn’t have the recombination party at the moment.
V. Main accounting policy and Accounting Estimate
Tips for specific accounting policy and estimate:
N/A
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 (collectively referred to as Accounting Standards for Business Enterprise), which is reflect a real and truth financial status
of the Company, as well as operation results and cash flow situations.
Furthermore, the statement has reference to the listing and disclosure requirement from “Rules Governing the Disclosure of
Information for Enterprise with Stock Listed No.15-general regulation of financial report” (2014 Revised) and “Notice on
Implementation of New Accounting Standards for Listed Companies” (KJBH (2018) No. 453)
2. Accounting period
Calendar year is the accounting period for the Company, which is starting from 1 January to 31 December.
28
3. Business cycles
The business period for the Company, which is the Gregorian calendar 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
For a business merger that is under the same control and is achieved by the Company through one single transaction or multiple
transactions, assets and liabilities obtained from that business combination shall be measured at their book value at the combination
date as recorded by the party being absorbed in the consolidated financial statement of ultimate controlling party. Capital reserve
shall be adjusted as per the difference between the book value of obtained net assets and the book value of paid consolidated
consideration (or the nominal value of the issued shares) of the Company; retained earnings shall be adjusted if the capital reserve is
not sufficient for offset.
(2) Accounting treatment for Enterprise combine not under the same control
The Company will validate the difference that the combined cost is more than the fair value of the net identifiable assets gained from
the acquiree on the acquisition date as goodwill; where the combined cost is less than the fair value of net identifiable assets gained
from the acquiree during business combination, the fair value and combined cost of various identifiable assets, liabilities and
contingent liabilities from the acquiree must be rechecked. Where the combined cost is, after the recheck, still less than the fair value
of net identifiable assets gained from the acquiree during business combination, the difference shall be charged to current profits and
losses.
As for business combination not under common control and realized through multiple transactions and by steps, the Company shall
make accounting treatment as follows:
1) Adjust the initial investment cost of long-term equity investments. As for stock equities held before the acquisition date accounted
according to the equity method, re-measurement is carried out according to the fair value of the equity on the acquisition date. The
balance between the fair value and the book value is included in the current investment income. If the acquiree’s stock equities held
before the acquisition date involves changes of other comprehensive incomes and other owner's equities under accounting with the
equity method, the balance between the fair value and the book value is included in the current investment income on the acquisition
date, excluding other comprehensive incomes incurred by changes due to re-measurement of net liabilities or net assets of the defined
benefit plan.
2) Confirm the goodwill (or include the amount in the profits and losses). The initial investment cost of long-term equity investments
adjusted in step 1 is compared with the fair value of net identifiable assets of the subsidiary shared on the acquisition date. If the
former is greater than the latter, the balance is confirmed as goodwill; if the former is less than the latter, the balance is included in
the current profits and losses.
Loss of control of a subsidiary in multiple transactions in which it disposes equity interests of its subsidiary in stages
(1)In determining whether to account for the multiple transactions as a single transaction
29
A parent shall consider all the terms and conditions of the transactions and their economic effects. One or more of the following may
indicate that the parent should account for the multiple arrangements as a single transaction:
1) Arrangements are entered into at the same time or in contemplation of each other;
2) Arrangements work together to achieve an overall commercial effect;
3) The occurrence of one arrangement is dependent on the occurrence of at least one other arrangement;
4)One arrangement considered on its own is not economically justified, but it is economically justified when considered together
with other arrangements.
(2)Accounting treatment for each of the multiple transactions forming part of a bundled transactions which eventually results in loss
of control the subsidiary during disposal of its subsidiary in stages
If each of the multiple transactions forms part of a bundled transactions which eventually results in loss of control the subsidiary,
these multiple transactions should be accounted for as a single transaction. In the consolidated financial statements, the difference
between the consideration received and the corresponding percentage of the subsidiary’s net assets in each transaction prior to the
loss of control shall be recognized in other comprehensive income and transferred to the profit or loss when the parent eventually
loses control of the subsidiary.
The remaining equity investment shall be re-measured at its fair value in the consolidated financial statements at the date when
control is lost. The difference between the total amount of consideration received from the transaction that resulted in the loss of
control and the fair value of the remaining equity investment and the share of net assets of the former subsidiary calculated
continuously from the acquisition date or combination date based on the previous shareholding proportion, shall be recognized as
investment income for the current period when control is lost. The amount previously recognized in other comprehensive income in
relation to the former subsidiary’s equity investment should be transferred to investment income for the current period when control
is lost
(3)Accounting treatment for each of the multiple transactions NOT forming part of a bundled transactions which eventually results in
loss of control the subsidiary during disposal of its subsidiary in stages
If the Company doesn't lose control of investee, the difference between the amount of the consideration received and the
corresponding portion of net assets of the subsidiary shall be adjusted to the capital reserve (capital /equity premium) in the
consolidated financial statements.
If the Company loses control of investee, the remaining equity investment shall be re-measured at its fair value in the consolidated
financial statements at the date when control is lost. The difference between the total amount of consideration received from the
transaction that resulted in the loss of control and the fair value of the remaining equity investment and the share of net assets of the
former subsidiary calculated continuously from the acquisition date or combination date based on the previous shareholding
percentage, shall be recognized as investment income for the current period when control is lost. The amount previously recognized
in other comprehensive income in relation to the former subsidiary’s equity investment should be transferred to investment income
for the current period when control is lost.
6. Compilation method of consolidated financial statement
Consolidated financial statements are prepared by the Company in accordance with Accounting Standard for Business Enterprise No.
33-Consolidated Financial Statements and based on financial statements of parent company and its subsidiaries and other related
information.
30
When consolidating the financial statements, the following items are eliminated: internal equity investment and owners’ equity of
subsidiaries, proceeds on internal investments and profit distribution of subsidiaries, internal transactions, internal debts and claim.
The accounting policies adopted by subsidiaries are the same as parent company.
7. Classification of joint venture arrangement and accounting treatment for joint control
(1) Affirmation and classification of joint venture arrangement
Joint arrangement refers to an arrangement controlled by two or more than two participants. Joint venture arrangement has the
following characteristics: 1) Each participant is bound by the arrangement; 2) Two or more participants carry out joint control on
implementation of the arrangement. Any participant cannot control the arrangement independently. Any participant for joint control
can stop other participants or participant combinations to independently control the arrangement.
Joint control refers to the sharing of control over certain arrangement under related agreements, and related activities of the
arrangement must be determined only when obtaining the unanimous consent of the parties sharing control.
Joint venture arrangement is classified in to joint operation and joint venture. Joint operation refers to an arrangement that a joint
party enjoys assets related to the arrangement and bears liabilities related to the arrangement. Joint venture refers to an arrangement
that a joint party only has the power governing net assets of the arrangement.
(2) Accounting treatment of joint venture arrangement
Joint venture participants should confirm the following items related to interest shares in joint venture and carry out accounting
settlement according to relevant provisions of the Accounting Standards for Business Enterprises: 1) confirm the assets held
separately and confirm the assets held jointly based on shares; 2) confirm the liabilities borne separately and confirm the liabilities
borne jointly based on shares; 3) confirm the income incurred after selling its shares in joint venture output; 4) confirm the income
after selling the joint venture outputs based on shares; 5) confirm the expenses incurred separately and confirm the expenses incurred
in joint venture based on shares.
Joint venture participants should carry out accounting settlement for investments of the joint venture according to provisions of
Accounting Standards for Business Enterprises No.2–Long-term Equity Investments.
8. Recognition of cash and cash equivalents
Cash in cash flow statement means the inventory cash and savings available for use anytime. Cash equivalents refer to the short-term
(generally due within three months since the date of purchase) highly liquid investments that are readily convertible into known
amounts of cash and that are subject to an insignificant risk of change in value.
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.
31
(2)Conversion of financial statements presented in foreign currencies
The asset and liability items in the balance sheet shall be converted at the spot exchange rate on the balance sheet date; the owner’s
equity items, except for the items of “undistributed profit”, shall be converted at the spot exchange rate on the transaction date; the
income and expenditure items in the profit statement shall be converted at the spot exchange rate on the transaction date. The
translation difference of foreign financial statements conducted as above is recognized as other comprehensive incomes.
10. Financial instruments
(1) Recognition and termination for financial instrument
Financial assets or financial liabilities are recognized when the Group becomes a party to the contractual provisions of the
instrument.
When buying and selling financial assets in a conventional manner, recognize and derecognize them according to the accounting of
the trading day. Buying and selling financial assets in a conventional manner refers to the collection or delivery of financial assets in
accordance with the contract terms and within the period prescribed by regulations or prevailing practices. Trading day refers to the
date when the Company promises to buy or sell financial assets.
When meeting the following conditions, derecognize a financial asset (or part of a financial asset, or part of a group of similar
financial assets), i.e. to write off from its account and balance sheet:
1) The right to receive cash flows from financial assets expires;
2) The right to receive cash flows of financial assets is transferred, or assume the obligation to pay the full amount of cash flows
received to a third party in a timely manner under the “handover agreement”; and (a) virtually transferred almost all risks and
rewards of the ownership of financial assets, or (b) although virtually neither transferred nor retained almost all risks and rewards of
the ownership of financial assets, abandoned the control of the financial assets.
(2) Classification and measurement of financial assets
The Company’s financial assets are classified as financial assets measured at amortized cost, financial assets measured at fair value
and whose changes are included in other comprehensive income, and financial assets measured at fair value and whose changes are
included in the current profit and loss according to the Company’s business model for managing financial assets and the contractual
cash flow characteristics of financial assets at initial recognition. The subsequent measurement of financial assets depends on their
classification.
The Company’s classification of financial assets is based on the Company’s business model for managing financial assets and the
cash flow characteristics of financial assets.
1) Financial assets measured at amortized cost
Financial assets that meet the following conditions at the same time are classified as financial assets measured at amortized cost: the
Company’s business model for managing this financial asset is to collect contractual cash flows; the contract terms of the financial
asset stipulate that the cash flow generated on a specific date is only the payment of principal and interest based on the outstanding
principal amount. For such financial assets, the actual interest rate method is used for subsequent measurement based on amortized
cost, and the gains or losses arising from amortization or impairment are included in the current profit and loss.
2) Debt instrument investments measured at fair value and whose changes are included in other comprehensive income
Financial assets that meet the following conditions at the same time are classified as financial assets measured at fair value and
whose changes are included in other comprehensive income: the Company’s business model for managing this financial asset is to
both collect contractual cash flows and sell the financial assets; the contract terms of the financial asset stipulate that the cash flow
generated on a specific date is only for the payment of principal and interest based on the outstanding principal amount. For such
32
financial assets, fair value is used for subsequent measurement. The discount or premium is amortized by using the actual interest
method and is recognized as interest income or expenses. Except that the impairment loss and the exchange difference of foreign
currency monetary financial assets are recognized as current gains and losses, changes in the fair value of such financial assets are
recognized as other comprehensive income, until the financial asset is derecognized, its cumulative gains or losses are transferred to
the current profit and loss. Interest income related to such financial assets is included in the current profit and loss.
3) Equity instrument investments measured at fair value and whose changes are included in other comprehensive income
The Company irrevocably chooses to designate some non-trading equity instrument investments as financial assets measured at fair
value and whose changes are included in other comprehensive income. Only relevant dividend income is included in the current
profit and loss, and changes in fair value are recognized as other comprehensive income, until the financial asset is derecognized, its
accumulated gains or losses are transferred to retained earnings.
4) Financial assets measured at fair value and whose changes are included in the current profit and loss
Financial assets except for above financial assets measured at amortized cost and financial assets measured at fair value and whose
changes are included in other comprehensive income are classified as financial assets measured at fair value and whose changes are
included in the current profit and loss. During initial recognition, in order to eliminate or significantly reduce accounting mismatches,
financial assets can be designated as financial assets measured at fair value and whose changes included in the current profit and loss.
For such financial assets, fair value is used for subsequent measurement, and all changes in fair value are included in the current
profit and loss.
When and only when the Company changes its business model for managing financial assets, it will reclassify all affected related
financial assets.
For financial assets measured at fair value and whose changes are included in the current profit or loss, the related transaction costs
are directly included in the current profit and loss, and the related transaction costs of other types of financial assets are included in
the initial recognition amount.
(3) Classification and measurement of financial liabilities
The Company’s financial liabilities are classified as financial liabilities measured at amortized cost and financial liabilities measured
at fair value and whose changes are included in the current profit and loss at initial recognition.
Financial liabilities that meet one of the following conditions can be designated as financial liabilities measured at fair value and
whose changes are included in current profit or loss during initial measurement: (1) This designation can eliminate or significantly
reduce accounting mismatches; (2) According to the group risk management or investment strategies stated in official written
documents, management and performance evaluation of financial liability portfolios or financial assets and financial liability
portfolios are conducted based on fair value, and are reported to key management personnel within the group on this basis; (3) The
financial liability includes embedded derivatives that need to be split separately.
The Company determines the classification of financial liabilities at initial recognition. For financial liabilities that are measured at
fair value and whose changes are included in the current profit or loss, the related transaction costs are directly included in the current
profit and loss, and the related transaction costs of other financial liabilities are included in its initial recognition amount.
The subsequent measurement of financial liabilities depends on their classification:
1) Financial liabilities measured at amortized cost
For such financial liabilities, adopt actual interest rate method and make subsequent measurements based on amortized costs.
2) Financial liabilities measured at fair value and whose changes are included in the current profit and loss
Financial liabilities that are measured at fair value and whose changes are included in the current profit or loss include trading
financial liabilities (including derivatives that are financial liabilities) and financial liabilities designated to be measured at fair value
at the initial recognition and whose changes are included in the current profit or loss.
33
(4) Financial instruments offset
If the following conditions are met at the same time, the financial assets and financial liabilities are listed in the balance sheet with
the net amount after mutual offset: legal right to offset the confirmed amount, and this legal right is currently executable; Net
settlement, or simultaneous realization of the financial assets and liquidation of the financial liabilities.
(5) Impairment of financial assets
The Company recognizes the loss provisions on the basis of expected credit losses for financial assets measured at amortized cost,
debt instrument investments measured at fair value and whose changes are included in other comprehensive income and financial
guarantee contracts. Credit loss refers to the difference between all contractual cash flows receivable under the contract and
discounted according to original actual interest rate by the Company and all expected receivable cash flows, that is, the present value
of all cash shortages.
The Company considers all reasonable and evidence-based information, including forward-looking information, and estimates the
expected credit loss of financial assets measured at amortized cost and financial assets measured at fair value and whose changes are
included in other comprehensive income (debt instruments) in a single or combined manner.
1) General model of expected credit loss
If the credit risk of the financial instrument has increased significantly since the initial recognition, the Company measures its loss
provisions in accordance with the amount equivalent to the expected credit loss of the financial instrument for the entire duration; if
the credit risk of the financial instrument has not significantly increased since the initial recognition, the Company measures its loss
provisions in accordance with the amount equivalent to the expected credit loss of the financial instrument in the next 12 months. The
resulting increased or reversed amount of the loss provisions is included in the current profit and loss as an impairment loss or gain.
For the Company’s specific assessment of credit risk, please see details in Note IX. Risks Related to Financial Instruments”.
Generally, the Company believes that the credit risk of the financial instrument has significantly increased when it exceeds 30 days
after the due date, unless there is concrete evidence that the credit risk of the financial instrument has not increased significantly since
initial recognition.
Specifically, the Company divides the process of credit impairment of financial instruments of which no credit impairment has
occurred at the time of purchase or origin into three stages. There are different accounting treatment methods for the impairment of
financial instruments at different stages:
Stage one: Credit risk has not increased significantly since initial recognition
For a financial instrument at this stage, the enterprise should measure the loss provisions according to the expected credit losses in
the next 12 months, and calculate the interest income based on its book balance (that is, without deducting provisions for impairment)
and the actual interest rate (if the instrument is a financial asset, the same below).
Stage two: Credit risk has increased significantly since initial recognition but no credit impairment has occurred
For a financial instrument at this stage, the enterprise should measure the loss provisions according to the expected credit loss of the
instrument for its entire duration, and calculate the interest income based on its book balance and actual interest rate.
Stage three: Credit impairment occurs after initial recognition
For a financial instrument at this stage, the enterprise should measure the loss provisions based on the expected credit losses of the
instrument for its entire duration, but the calculation of interest income is different from the financial assets at the previous two stages.
For financial assets that have suffered credit impairment, the enterprise should calculate interest income based on its amortized cost
(book balance minus the provisions for impairment, i.e., book value) and the actual interest rate.
For financial assets that have suffered credit impairment at the time of purchase or origin, the enterprise should only recognize
changes in expected credit losses for the entire duration after initial recognition as loss provisions, and calculate the interest income
34
based on its amortized cost and credit-adjusted actual interest rate.
2) The Company chooses not to compare the financial instrument with lower credit risk on the balance sheet date with its credit risk
at initial recognition, but directly makes the assumption that the credit risk of the instrument has not increased significantly since the
initial recognition.
If the enterprise confirms that the default risk of financial instruments is low, the borrower has a strong ability to fulfill its contractual
cash flow obligations in the short term, and even if there are adverse changes in the economic situation and operating environment in
a longer period of time, it will not necessarily reduce the borrower’s ability to fulfill its contractual cash flow obligations, then the
financial instrument can be considered to have lower credit risk.
3) Accounts receivable and lease receivables
The Company adopts the simplified model of expected credit loss for accounts receivables specified in “Accounting Standards for
Business Enterprises No.14 - Revenue” and without containing significant financing components (including the case that the
financing components in contracts that do not exceed one year are not considered according to the standards), that is, always
measures their loss provisions according to the amount of expected credit loss during the entire duration.
The Company makes accounting policy choices for the receivables containing significant financing components and the lease
receivables specified in “Accounting Standards for Business Enterprises No.21 - Leases”, and chooses to adopt the simplified model
of expected credit losses, that is, to measure the loss provisions in accordance with the amount of expected credit losses throughout
the entire duration.
(6) Transfer of financial assets
Where the Company has transferred almost all the risks and rewards in the ownership of the financial asset to the transferee, the
recognition of the financial assets shall be terminated; where almost all risks and rewards in the ownership of a financial asset are
retained, the recognition of the financial assets are not terminated.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset, it shall be accounted
for as follows: the financial asset should be terminated if the Group waives control over the asset; it recognizes the financial asset to
the extent of its continuing involvement in the transferred financial asset and recognizes an associated liability if the Group does not
waives control over the asset.
If the transferred financial assets continue to be involved by providing financial guarantee, the assets continue to be involved shall be
recognized according to the lower of the book value of the financial assets and the amount of financial guarantee. The financial
guarantee amount means the maximum amount of consideration received which will be required to be repaid.
11. Note receivable
The Group adopts the simplified model of expected credit loss for the accounts receivables specified in “Accounting Standards for
Business Enterprises No.14 - Revenue” and without containing significant financing components (including the case that the
financing components in contracts that do not exceed one year are not considered according to the standards), that is, always
measures their loss provisions according to the amount of expected credit loss during the entire duration, and the resulting increased
or reversed amount of the loss provision is included in the current profit and loss as an impairment loss or gain. The accrual method
is as follows:
The Company divides the bills receivable into two types, i.e. bank acceptance bills and commercial acceptance bills portfolios,
35
according to the type of financial instruments. For bank acceptance bills, the accepting bank pays the determined amount to the taker
or the bearer unconditionally due to the maturity of the bills, the overdue credit loss is low and has not increased significantly since
the initial confirmation, the Company believes that the risk of overdue default is 0; for commercial acceptance bills, the Company
believes that the probability of default is related to the aging, we use the aging analysis method to accrue bad debt provisions, for
details of the accrual ratio, please refer to III-12 Accounting Policies and Estimates of Accounts Receivable.
12.Account receivable
The Company adopts the simplified model of expected credit loss for accounts receivables specified in “Accounting Standards for
Business Enterprises No.14 - Revenue” and without containing significant financing components (including the case that the
financing components in contracts that do not exceed one year are not considered according to the standards), that is, always
measures their loss provisions according to the amount of expected credit loss during the entire duration, and the resulting increased
or reversed amount of the loss provision is included in the current profit and loss as an impairment loss or gain.
For accounts receivable that contain a significant financing component, the Company chooses to use the simplified model of
expected credit losses, that is, to always measure its loss provisions according to the amount of expected credit losses during the
entire duration.
1. Simplified model of expected credit losses: always measure the loss provisions according to the amount of expected credit losses
during the entire duration
The Company considers all reasonable and well-founded information, including estimates of expected credit losses on accounts
receivable in a single or combined manner.
(1) Account receivable with single significant amount and withdrawal single item bad debt provision
Basis or amount of judgment for account with single Withdrawal method for bad debt provision of account
significant amount receivable with single significant amount
Receivable commercial acceptance bill, account receivable Carry out impairment test separately, and withdraw bad
and other receivables with single amount more than 5 million debt provision according to the difference between the
yuan (including) present value of future cash flow and its book value
(2)Receivables with provision for bad debts by portfolio
Portfolio determine basis
On the basis of the actual loss rate of the portfolio of
receivables with similar credit risk characteristics which
are the same or similar in the previous year, for the single
Age analysis amount of non-material receivables, it is divided into
several portfolios according to the credit risk
characteristics together with the receivables without
impairment after the separate test
Other Bank acceptance
In the combination, the proportion of bad debt provision withdrawn by aging analysis method is as follow:
36
Accrual proportion of Withdrawing
Withdrawing proportion
Account age commercial acceptance bill proportion of the
of other receivable
receivable account receivable
Within one year(one year 0.3% 0.3% 0.3%
included)
1～2 years (2-year included) 100% 0.3% 0.3%
2～3 years (3-year included) 100% 0.3% 0.3%
Over 3 years 100% 100% 100%
Including: determined to be Write off Write off Write off
un-collectible
(3) Account receivable with significant single amount and single provision for bad debts
Basis or amount of judgment for account with single minor Withdrawal method for bad debt provision of account
amount receivable with single minor amount
Receivable commercial acceptance bill, account receivable Carry out impairment test separately, and withdraw bad
and other receivables with single amount less than 5 million debt provision according to the difference between the
yuan (including), and the probability of recall is small by present value of future cash flow and its book value
nature
2. A general model of expected credit loss
Found more in the Note V.- (10) Financial Instrument
Note: well-explain according to specific condition of the Company
13. Account receivable financing
N/A
14. Other account receivable
Determining method and accounting treatment on the expected credit loss of other account receivable
The Company adopts the simplified model of expected credit loss for accounts receivables specified in “Accounting Standards for
Business Enterprises No.14 - Revenue” and without containing significant financing components (including the case that the
financing components in contracts that do not exceed one year are not considered according to the standards), that is, always
measures their loss provisions according to the amount of expected credit loss during the entire duration, and the resulting increased
or reversed amount of the loss provision is included in the current profit and loss as an impairment loss or gain.
37
For accounts receivable that contain a significant financing component, the Company chooses to use the simplified model of
expected credit losses, that is, to always measure its loss provisions according to the amount of expected credit losses during the
entire duration.
1. Simplified model of expected credit losses: always measure the loss provisions according to the amount of expected credit losses
during the entire duration
The Company considers all reasonable and well-founded information, including estimates of expected credit losses on accounts
receivable in a single or combined manner.
(1) Account receivable with single significant amount and withdrawal single item bad debt provision
Basis or amount of judgment for account with single Withdrawal method for bad debt provision of account
significant amount receivable with single significant amount
Receivable commercial acceptance bill, account receivable Carry out impairment test separately, and withdraw bad
and other receivables with single amount more than 5 million debt provision according to the difference between the
yuan (including) present value of future cash flow and its book value
(2)Receivables with provision for bad debts by portfolio
Portfolio determine basis
Age analysis On the basis of the actual loss rate of the portfolio of
receivables with similar credit risk characteristics which
are the same or similar in the previous year, for the single
amount of non-material receivables, it is divided into
several portfolios according to the credit risk
characteristics together with the receivables without
impairment after the separate test
Other Bank acceptance
In the combination, the proportion of bad debt provision withdrawn by aging analysis method is as follow:
Accrual proportion of Withdrawing
Withdrawing proportion
Account age commercial acceptance bill proportion of the
of other receivable
receivable account receivable
Within one year(one year 0.3% 0.3% 0.3%
included)
1～2 years (2-year included) 100% 0.3% 0.3%
2～3 years (3-year included) 100% 0.3% 0.3%
Over 3 years 100% 100% 100%
Including: determined to be Write off Write off Write off
un-collectible
(3) Account receivable with minor single amount and single provision for bad debts
Basis or amount of judgment for account with single minor Withdrawal method for bad debt provision of account
amount receivable with single minor amount
38
Receivable commercial acceptance bill, account receivable Carry out impairment test separately, and withdraw bad
and other receivables with single amount less than 5 million debt provision according to the difference between the
yuan (including), and the probability of recall is small by present value of future cash flow and its book value
nature
2. A general model of expected credit loss
Found more in the Note V.- (10) Financial Instrument
Note: well-explain according to specific condition of the Company
15. Inventory
The Company shall comply with the disclosure requirement of “Guidelines on Industry Information Disclosure of Shenzhen Stock
Exchange No. 11- Listed Company Engaged in Jewelry-related Business”
(1) Classification of inventory
The inventory of the Company refers to such seven classifications as the raw materials, product in process, goods on hand, wrap page,
low value consumables, materials for consigned processing and goods sold.
(2) Valuation of inventories
Inventories are initially measured at cost upon acquisition, which includes procurement costs, processing costs and other costs. The
prices of inventories are calculated using weighted average method when they are delivered.
(3) Provision for inventory impairment
When a comprehensive count of inventories is done at the end of the period, provision for inventory impairment is allocated or
adjusted using the lower of the cost of inventory and the net realizable value. The net realizable value of stock in inventory (including
finished products, inventory merchandize and materials for sale) that can be sold directly is determined using the estimated saleable
price of such inventory deducted by the cost of sales and relevant taxation over the course of ordinary production and operation. The
net realizable value of material in inventory that requires processing is determined using the estimated saleable price of the finished
product deducted by the cost to completion, estimated cost of sales and relevant taxation over the course of ordinary production and
operation. The net realizable value of inventory held for performance of sales contract or labor service contract is determined based
on the contractual price; in case the amount of inventory held exceeds the contractual amount, the net realizable value of the excess
portion of inventory is calculated using the normal saleable price.
Provision for impairment is made according to individual items of inventories at the end of the period; however, for inventories with
large quantity and low unit price, the provision is made by categories; inventories of products that are produced and sold in the same
region or with the same or similar purpose or usage and are difficult to be measured separately are combined for provision for
impairment.
If the factors causing a previous write-off of inventory value has disappeared, the amount written-off is reversed and the amount
provided for inventory impairment is reversed and recognized in profit or loss for the period.
(4)Inventory system
Perpetual inventory system is adopted.
39
16.Contractual assets
N/A
17.Contractual cost
N/A
18. Assets held for sale
The Company classifies such corporate components (or non-current assets) that meet the following criteria as held-for-sale: (1)
Disposable immediately under current conditions based on similar transactions for disposals of such assets or practices for the
disposal group; (2) Probable disposal; that is, a decision has been made on a plan for disposal and an undertaking to purchase has
been obtained (the undertaking to purchase means a binding purchase agreement entered into by the Company and other parties,
which contains transaction price, time and adequately strict punishments for breach of contract provisions, which renders the
possibility of material adjustment or revocation of the agreement is extremely minor), and the disposal is expected to be completed
within a year. Besides, approval from relevant competent authorities or regulatory authorities has been obtained as required by
relevant rules.
The expected net residual value of asset held for sale is adjusted by the Company to reflect its fair value less selling expense,
provided that the net amount shall not exceed the original carrying value of the asset. In case that the original value is higher than the
adjusted expected net residual value, the difference shall be recorded in profit or loss for the period as asset impairment loss, and
allowance of impairment for the asset shall be provided. Impairment loss recognized in respect of the disposal group held for sale
shall be used to offset the carrying value of the goodwill in the disposal group, and then offset the carrying value of the non-current
assets within the disposal group based on their respective proportion of their carrying value.
In respect of the non-current assets held for sale, if the net amount after their fair value less the selling expenses increased as at the
subsequent balance date, the reduced amount before will be recovered and reversed in the assets impairment loss amount recognized
after being classified as held for sale, and the reversed amount will be recorded in the current profits or loss. The impairment loss on
assets recognized before being classified as held for sale will not be reversed. In respect of the disposal group held for sale, if the net
amount after their fair value less the selling expenses increased as at the subsequent balance date, the reduced amount before will be
recovered and reversed in the assets impairment loss amount recognized in non-current assets after being classified as held for sale,
and the reversed amount will be recorded in the current profits or loss. The reduced book value of the goodwill as well as the
impairment loss on assets recognized before the non-current assets are classified as held for sale will not be reversed. The subsequent
reversed amount in respect of the impairment loss on assets recognized in the disposal group held for sale will increase the book
value in proportion of the book value of each non-current assets (other than goodwill) in the disposal group.
In respect of loss of control in a subsidiary arising from disposal of the investment in such subsidiary, the investment in a subsidiary
shall be classified as held for sale in its entirety in the individual financial statement of the parent company, and all the assets and
liabilities of the subsidiary shall be classified as held for sale in the consolidated financial statement subject to that the proposed
disposal of investment in the subsidiary satisfies such conditions as required for being classified as held for sale notwithstanding part
equity investment will be retained by the Company after such disposal.
40
19.Debt investment
N/A
20.Other debt investment
N/A
21.Long-term account receivable
N/A
22. Long-term equity investment
(1)Determination of investment costs
1) If it is formed by the business combination under the common control, and that the combining party takes cash payment, transfer
of non-cash assets, assumption of debts or issuance of equity securities as the consolidation consideration, the shares of the book
value of the owner’s equity obtained from the combined party on the date of combination in the ultimate controlling party’s
consolidated financial statements shall be recognized as its initial investment cost. Capital reserves shall be adjusted according to the
balance between the initial investment cost for long-term equity investment and the book value of paid consolidation consideration or
the total face value of issued shares (capital premium or equity premium). If capital reserves are insufficient for offset, retained
earnings shall be adjusted.
As for business combination under the common control realized by the Company through several transactions, the initial investment
cost of the investment shall be determined based on the share of the carrying value of the owners’ equity of the consolidated party as
calculated according to the shareholding proportion on the consolidation date. Difference between initial investment cost and the
carrying value of long-term equity investment before combination and the sum of carrying value of newly paid consideration for
additional shares acquired on the date of combination is to adjust capital reserve (capital premium or equity premium). If the balance
of capital reserve is insufficient, any excess is adjusted to retained earnings.
2) As for long-term equity investment formed from business combination not under common control, the fair value of the
consolidated consideration paid shall be deemed as the initial investment cost on the acquisition date.
3) Except those ones formed by the business combination, for all items obtained by means of cash payment, actually paid acquisition
costs shall be taken as the initial investment cost. For those ones obtained by the issuance of equity securities, the fair value of the
issued equity securities shall be taken as the initial investment cost. For those ones invested by investors, the value agreed in the
investment contract or agreement shall be taken as the 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
41
the initial investment cost is lower than the share of fair value in the net identifiable asset in the investee, such difference is
recognized in profit or loss for the period with adjustment of cost of the long-term equity investment.
Under equity method, after the Company acquires a long-term equity investment, it shall, in accordance with its attributable share of
the net profit or loss realized by the investee, recognize the investment profit or loss and adjust carrying value of the investment. The
Group recognizes its share of the investee’s net profits or losses after making appropriate adjustments to the investee’s net profits and
losses based on the fair value of the investee’s identifiable assets at the acquisition date, using the Group’s accounting policies and
periods, and eliminating the portion of the profits or losses arising from internal transactions with its joint ventures and associates,
attributable to the investing entity according to its shareholding proportion (but impairment losses for assets arising from internal
transactions shall be recognized in full). The carrying amount of the investment is reduced based on the Group’s share of any profit
distributions or cash dividends declared by the investee. The Group’s share of net losses of the investee is recognized to the extent the
carrying amount of the investment together with any long-term interests that in substance form part of its net investment in the
investee is reduced to zero, except that the Group has the obligations to assume additional losses. The Group adjusts the carrying
amount of the long-term equity investment for any changes in owners’ equity of the investee (other than net profits or losses) and
includes the corresponding adjustments in the owners’ equity of the Group.
(3) Determination of control and significant influence on investee
Control is the power over an investee. An investor must have exposure or rights to variable returns from its involvement with the
investee, and the ability to use its power over the investee to affect the amount of the investor’s returns. Significant influence is the
power to participate in the financial and operating policy decisions of the investee but is not control or joint control with other parties
over those policies
(4)Disposal of long-term equity investment
1) Partial disposal of long term investment in which control is retained
When long term investment is been partially disposed but control is retained by the company, the difference between disposal
proceeds and carrying amount of the proportion being disposed is accounted for through profit or loss.
2) Partial disposal of long term investment in which control is lost
When long term investment is partially disposed and control is lost as a result, the carrying value of the long term invest on the stock
right, the difference between carrying amount of the part being disposed and disposal proceeds should be recognized as profit or loss.
The residual part should be treated as long term investment or other financial assets according to their carrying amount. After partial
disposal, if the company is able to exert significant influence or common control over the investee, the investment should be
measured according to cost method or equity method, in compliance with relevant accounting standards and regulations.
(5)Impairment test and provision for impairment
If there is objective evidence on the balance sheet date showing investment in subsidiaries, associates and joint ventures is impaired,
provision of impairment shall be made against the difference between the carrying amount and the recoverable amount of the
investment.
23. Investment real estate
Measurement mode
Measured by cost method
Depreciation or amortization method
(1) Investment property including land use right which has been rented out, land use right which is held for transfer upon
appreciation and buildings which has been rented out.
(2) Investment properties are initially measured at cost and subsequently measured as per the cost pattern, and relevant withdrawal of
provision for depreciation or amortization is carried out by the same method for fixed assets and intangible assets. As of the balance
sheet date, where there is any indication that an investment property experiences impairment, the relevant impairment provision shall
42
be provided for based on the difference between the carrying value and the recoverable amount.
24. Fixed assets
(1) Recognition conditions
Fixed assets refer to the tangible assets for production of products, provision of labor, lease or operation, and with a service life in
excess of one financial year.
(2) Depreciation methods
Category Method Years of depreciation Scrap value rate Yearly depreciation rate
Housing buildings Straight-line depreciation 20-year 10% 4.5%
Machinery equipment Straight-line depreciation 10-year 10% 9%
Means of transportation Straight-line depreciation 5-year 10% 18%
Electronic equipment and
Straight-line depreciation 5-year 10% 18%
others
Fixed assets are recorded at the actual cost at the time of acquisition, and depreciation is calculated and withdrawn using the average
life method from the month after they reach the intended usable state
(3) Recognition basis, valuation and depreciation method for financial lease assets
Finance lease is determined when one or a combination of the following conditions are satisfied: (1) the ownership has been
transferred to the lessee when the leasing term is due; (2) the lessee has the option to purchase the leasing asset at a price that is much
lower than its fair value, so it can be reasonably determined that the lessee will take the option at the very beginning of the lease; (3)
the leasing term accounts for most time of the useful life (ordinarily accounting for 75% or higher) even if the ownership does not
transfer to the lessee; (4) the present value of the minimum amount of rent that the lessee has to pay at the first day of the lease
amounts to 90% or higher of its fair value at the same date; or the present value of the minimum amount of rent that the lessor
collects at the first day of the lease amounts to 90% or higher of its fair value at the same date; and/or (5) the leased assets are of such
a specialized nature that only the lessee can use them without major modifications. Fixed assets rented-in under finance lease are
recorded at the lower of fair value and the present value of the minimum lease payment at the inception of the lease, and are
depreciated following the depreciation policy for self-owned fixed assets.
25. Construction in progress
(1)When the construction in progress has reached the intended condition for use, it will be treated as fixed assets as per the actual
construction cost. If the construction in progress has reached the intended condition for use but completion accounting is not carried
out, the construction in progress should be first treated as fixed assets as per the estimated value. After completion accounting is
carried out, the original estimated value should be adjusted as per the actual cost, but the provision for depreciation withdrawn should
not be adjusted.
(2)As of the balance sheet date, where there is any indication that a construction in process experiences impairment, the relevant
43
impairment provision shall be provided for based on the difference between the carrying value and the recoverable amount.
26. Borrowing expenses
N/A
27.Biological assets
N/A
28. Oil and gas asset
N/A
29.Right-of-use asset
N/A
30. Intangible assets
(1) Valuation method, service life and impairment test
(a)Intangible assets include land use right, patent right and non-patent technology, which should be initially measured at cost.
(b)Intangible assets with limited service life should be amortized systematically and reasonably in their service lives as per the
expected form of realization economic benefits relating to the said intangible assets. If the form of realization cannot be reliably
determined, the intangible assets should be amortized on a straight-line basis.
(c)At the balance sheet date, when there is any indication that the intangible assets with finite useful lives may be impaired, a
provision for impairment loss is recognized on the excess of the carrying amounts of the assets over their recoverable amounts.
Intangible assets with infinite useful lives and intangible assets not satisfying the condition for use yet are subject to impairment test
each year notwithstanding whether the assets are impaired.
(2) Internal accounting policies relating to research and development expenditures
Expenditure incurred in the research phase of internal R&D shall be included in current gain/loss at the time of occurrence.
Intangible assets recognized for expenditure in exploitation stage by satisfying the followed at same time: ①it is technically feasible
that the intangible asset can be used or sold upon completion; ②there is intention to complete the intangible asset for use or sale; ③
the 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.
44
31. Impairment of long-term assets
N/A
32. Long-term expenses to be apportioned
Long-term expenses to be apportioned are booked by actual amount occurred, and apportioned evenly during the benefit period or
regulated period.In case that the long-term deferred expenses are not likely to benefit the subsequent accounting periods, the
outstanding value of the item to be amortized shall be included in current profit or loss in full.
33.Contractual liability
N/A
34. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when staff providing service to the Company, the actual short-term compensation occurred shall
recognized as liabilities and reckoned into current gains/losses or relevant assets costs. The non-monetary welfare is measured by fair
value.
(2) Accounting treatment for post-employment benefit
N/A
(3) Accounting for retirement benefits
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 earlier.
(4) Accounting for other long-term employee benefits
Defined contribution plans
The employees of the Company have participated in the basic social endowment insurance organized and implemented by the local
labor and social security department. The Company pays the endowment insurance premium to the local basic social endowment
insurance agency on a monthly basis based on the base and ratio of the local basic social endowment insurance payment. After the
retirement of employees, the local labor and social security department has the responsibility to pay the social basic pension to the
retired employees. During the accounting period in which employees provide services, the Company recognizes the amount payable
45
calculated according to the above social security insurance regulations as the liabilities and includes them in the current profit and
loss or related asset costs.
35.Lease liabilities
N/A
36. Accrual liability
N/A
37. Share-based payment
(1)Types of share-based payment
Share-based payment comprises of equity-settled share-based payment and cash-settled share-based payment.
(2)Determination of fair value of equity instruments
1)determined based on the price quoted in an active market if there exists active market for the instrument.
2)determined by adoption of valuation technology if there exists no active market, including by reference to the recent arm’s length
market transactions between knowledgeable, willing parties, reference to the current fair value of another instrument that is
substantially the same, discounted cash flow analysis and option pricing models.
(3)Basis for determination of the best estimate of exercisable equity instruments
To be determined based on the subsequent information relating to latest change of exercisable employees.
(4)Accounting relating to implementation, amendment and termination of share-based payment schemes
1)Equity-settled share-based payment
For equity instruments that may be exercised immediately after the grant, the fair value of such instrument shall, on the date of the
grant, be recognized in relevant costs or expenses with the increase in the capital reserve accordingly. For equity-settled share-based
payment made in return for the rendering of employee services that cannot be exercised until the services are fully rendered during
vesting period or specified performance targets are met, on each balance sheet date within the vesting period, the services acquired in
the current period shall, based on the best estimate of the number of exercisable instruments, be recognized in relevant costs or
expenses and the capital reserves at the fair value of such instruments on the date of the grant.
For equity-settled share-based payment made in exchange for service from other parties, such payment shall be measured at the fair
value of the service as of the acquisition date is the fair value can be measured reliably. And if the fair value of the service cannot be
measured reliably while the fair value of the equity instrument can be measured reliably, it shall be measure at the fair value of the
instrument as of the date on which the service is acquired, which shall be recorded in relevant cost or expense with increase in
owners’ equity accordingly.
2)Cash-settled share-based payment
For the cash-settled share-based payment that may be exercised immediately after the grant in exchange for render of service by
employees, the fair value of the liability incurred by the Company shall, on the date of the grant, be recognized in relevant costs or
expenses and the liabilities shall be increased accordingly. For cash-settled share-based payment made in return for the rendering of
employee services that cannot be exercised until the services are fully provided during vesting period or specified performance
targets are met, on each balance sheet date within the vesting period, the services acquired in the current period shall, based on the
best estimate of the number of exercisable instruments, be recognized in relevant costs or expenses and the corresponding liabilities
at the fair value of the liability incurred by the Company.
46
3)Revision and termination of share-based payment schemes
If the revision results in an increase in the fair value of the equity instruments granted, the Company shall recognize the increase in
the services rendered accordingly at the increased fair value of the equity instruments. If the revision results in an increase in the
number of equity instruments granted, the Company will recognize the increase in the services rendered accordingly at the fair value
of the increased number of equity instruments. If the Company revises the vesting conditions on terms favorable to the employees,
the Company will take into consideration of the revised vesting conditions when dealing with the vesting conditions.
If the revision results in a decrease in the fair value of the equity instruments granted, the Company shall continue recognize the
amount of services rendered accordingly at the fair value of the equity instruments on the date of grant without considering the
decrease in the fair value of the equity instruments. If the revision results in a decrease in the number of equity instruments granted,
the Company will account for such decrease by reducing part of the cancellation of equity instruments granted. If the Company
revises the vesting conditions on terms not favorable to the employees, the Company will not take into consideration of the revised
vesting conditions when dealing with the vesting conditions.
If the Company cancels the equity instruments granted or settles the equity instruments granted during the vesting period (other than
cancellation as a result of failure to satisfy the vesting conditions), such cancellation or settlement will be treated as accelerated
exercisable rights and the original amount in the remaining vesting period will be recognized immediately.
38. Other financial instruments including senior shares and perpetual bonds
N/A
39. Revenue
The Company shall comply with the disclosure requirement of “Guidelines on Industry Information Disclosure of Shenzhen Stock
Exchange No. 11- Listed Company Engaged in Jewelry-related Business”
(1) Sales of goods
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.
Timing for recognition of revenue of the Company from products sales: revenue is recognized upon delivery of products to and
confirmed by purchaser with signature.
(2)Rendering of services
When the outcome of the transaction can be estimated reliably, revenue from rendering of services is recognized using the percentage
of completion method. 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 revenue
47
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.
40. Government Grants
(1) Government grants including those relating to assets and relating to income
(2)government grant, if granted as monetary assets, are measured at the amount received or receivable, and measured at fair value if
granted as non-monetary assets. If the fair value can not be determined reliably, they shall be measured at nominal value.
(3) Aggregate method for government grants:
1)government grants relating to assets are recognized as deferred income, which shall be recorded in profit or loss by installment
reasonably and systematically within the useful life of the assets. If assets are sold, transferred, discarded as useless or damaged prior
to expiration of the useful life, the remaining deferred income undistributed shall be transferred to profit or loss for the period in
which the assets are disposed.
2)If government grants relating to income are used to compensate for relevant costs or loss for the subsequent periods, they shall be
recognized as deferred income, and recorded in profit or loss for the period in which the relevant costs are recognized. If government
grants relating to income are used to compensate for the relevant costs or loss occurred, they shall be recorded in profit or loss for the
period directly.
(4)Net method for government grants
1) Government grants relating to assets are used to write off the carrying value of the relevant assets;
2) If government grants relating to income are used to compensate for relevant costs or loss for the subsequent periods, they shall be
recognized as deferred income, and recorded in profit or loss for the period in which offset against the relevant costs. If government
grants relating to income are used to compensate for the relevant costs or loss occurred, they shall be offset against the relevant costs
for the period directly.
(5)The Company adopts aggregated accounting method for the government grants received.
(6)As for the government grants comprising both portions relating to assets and income, separate accounting shall be made for
different portion; in case it is hard to differentiate the portions, the grants will be recorded as related to income in general.
(7)The Company realizes government grants relating to its normal activities as other income based on the substance of economic
business, and if not related to its normal activities, realized as non-operating income and expenditure.
(8)Subsidized loans from preferential policy obtained by the Company are classified based on whether subsidy funds are paid to the
loaning bank or directly to the Company by the competent financial authorities and are treated based on the following principles:
1)Where subsidy funds are paid to the loaning bank by the competent financial authorities and the bank then provides loans to the
Company at a preferential policy rate, accounting shall be made by the Company as follows:
a. Recognizes the actual borrowing amount received as the carrying value of the loan, and calculates the relevant borrowing costs
based on the principal and the preferential policy rate.
b.Recognizes the fair value of the loan as the carrying value and calculates the borrowing cost under effective interest method, and
recognizes the difference between the actual amount received and the fair value of the loan as deferred income. Deferred income is
48
amortized over the term of the loan under effective interest method and offset against the relevant borrowing costs.
2)Where subsidy funds are paid directly to the Company, the Company will offset the corresponding subsidy against the relevant
borrowing expenses.
41. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference between the carrying amount
and tax base of assets and liabilities (and the difference of the carrying amount and tax base of items not recognized as assets and
liabilities but with their tax base being able to be determined according to tax laws) and in accordance with the tax rate applicable to
the period during which the assets are expected to be recovered or the liabilities are expected to be settled.
(2)A deferred tax asset is recognized to the extent of the amount of the taxable income, which it is most likely to obtain and which
can be deducted from the deductible temporary difference. At the balance sheet date, if there is any exact evidence that it is probable
that future taxable profits will be available against which deductible temporary differences can be utilized, the deferred tax assets
unrecognized in prior periods are recognized.
(3)At the balance sheet date, the carrying amount of deferred tax assets is reviewed. The carrying amount of a deferred tax asset is
reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow the benefit of the deferred
tax asset to be utilized. Such reduction is subsequently reversed to the extent that it becomes probable that sufficient taxable income
will be available.
(4)The income tax and deferred tax for the period are treated as income tax expenses or income through profit or loss, excluding
those arising from the following circumstances: ① business combination; and ② the transactions or items directly recognized in
equity.
42. Lease
(1)Accounting for operating lease
N/A
(2)Accounting for financing lease
N/A
43. Other important accounting policy and estimation
N/A
44. Changes of important accounting policy and estimation
(1) Changes of important accounting policy
√ Applicable □ Not applicable
The contents and reasons of accounting
Examination and approval procedures Note
policy changes
49
According to the regulations of
"Accounting Standards for Business
Enterprises No. 14 - Revenue" of the
Ministry of Finance, domestic listed
companies are required to implement this
Deliberated and approved by 24th session
accounting standard from January 1, 2020.
of 10th BOD
The Company has implemented the
"Accounting Standards for Business
Enterprises No. 14 - Revenue" (CK [2017]
No. 22) revised by the Ministry of Finance
from January 1, 2020.
In accordance with the relevant regulations for the connection of the old and new standards, no adjustments are made to comparable
period information, and the cumulative impact of the implementation of the new standards adjusts the amount of retained earnings at
the beginning of the period and other related items in the financial statements. The specific impact of the implementation of the new
revenue standard on the Company is that the contract-related advance receipts are changed from the "advance receipts" item to the
"contract liabilities" item in presentation.
(2) Changes of important accounting estimation
□ Applicable √ Not applicable
(3)Adjust the financial statement items at beginning of the year when first implemented the New Revenue
Standards and New Lease Standards since 2020
Applicable
Whether adjusted the item of balance sheet at year-begin or not
√Yes □No
Consolidated balance sheet
In RMB
Item 2019-12-31 2020-01-01 Adjustment
Current assets:
Monetary funds 6,074,367.91 6,074,367.91
Settlement provisions
Capital lent
Tradable financial assets
Derivative financial
assets
Note receivable 580,000.00 580,000.00
Account receivable 38,616,523.93 38,616,523.93
Receivable financing
50
Account paid in advance 938,425.99 938,425.99
Insurance receivable
Reinsurance receivables
Contract reserve of
reinsurance receivable
Other account
740,354.71 740,354.71
receivable
Including: Interest
receivable
Dividend
receivable
Buying back the sale of
financial assets
Inventories 6,078,330.30 6,078,330.30
Contractual assets
Assets held for sale
Non-current asset due
within one year
Other current assets 3,318,514.25 3,318,514.25
Total current assets 56,346,517.09 56,346,517.09
Non-current assets:
Loans and payments on
behalf
Debt investment
Other debt investment
Long-term account
receivable
Long-term equity
investment
Investment in other
equity instrument
Other non-current
financial assets
Investment real estate
Fixed assets 4,191,503.33 4,191,503.33
Construction in progress
51
Productive biological
asset
Oil and gas asset
Right-of-use assets
Intangible assets 753,000.00 753,000.00
Expense on Research
and Development
Goodwill
Long-term expenses to
be apportioned
Deferred income tax
1,042,582.16 1,042,582.16
asset
Other non-current asset 400,000.00 400,000.00
Total non-current asset 6,387,085.49 6,387,085.49
Total assets 62,733,602.58 62,733,602.58
Current liabilities:
Short-term loans
Loan from central bank
Capital borrowed
Trading financial
liability
Derivative financial
liability
Note payable
Account payable 10,191,385.23 10,191,385.23
Accounts received in
1,739,953.80 0.00 -1,739,953.80
advance
Contract liability 1,539,782.12 1,539,782.12
Selling financial asset of
repurchase
Absorbing deposit and
interbank deposit
Security trading of agency
Security sales of agency
Wage payable 599,962.73 599,962.73
Taxes payable 585,062.75 785,234.43 200,171.68
52
Other account payable 38,175,654.98 38,175,654.98
Including: Interest
payable
Dividend
payable
Commission charge and
commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities
due within one year
Other current liabilities
Total current liabilities 51,292,019.49 51,292,019.49
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: Preferred
stock
Perpetual
capital securities
Lease liability
Long-term account
payable
Long-term wages
payable
Accrual liability
Deferred income
Deferred income tax
liabilities
Other non-current
liabilities
Total non-current liabilities 0.00
Total liabilities 51,292,019.49 51,292,019.49
Owner’s equity:
Share capital 551,347,947.00 551,347,947.00
53
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 -1,204,736,075.56 -1,204,736,075.56
Total owner’ s equity
attributable to parent 7,119,396.30 7,119,396.30
company
Minority interests 4,322,186.79 4,322,186.79
Total owner’ s equity 11,441,583.09 11,441,583.09
Total liabilities and owner’ s
62,733,602.58 62,733,602.58
equity
Explanation
According to the new revenue standard, adjust the number of statements at the beginning of the year, based on the amount received in
advance of the contract, amount excluding tax is adjusted from "Account receivable in advance" to "contract liabilities", and "amount
of tax to be written off" is adjusted to "tax payable".
Balance sheet of parent company
In RMB
Item 2019-12-31 2020-01-01 Adjustment
Current assets:
Monetary funds 1,959,804.92 1,959,804.92
Trading financial assets
Derivative financial
assets
Note receivable 580,000.00 580,000.00
Account receivable 32,843,536.70 32,843,536.70
Receivable financing
Account paid in advance 76,937.00 76,937.00
54
Other account
485,062.44 485,062.44
receivable
Including: Interest
receivable
Dividend
receivable
Inventories 1,333,374.72 1,333,374.72
Contractual assets
Assets held for sale
Non-current assets
maturing within one year
Other current assets 2,830,705.01 2,830,705.01
Total current assets 40,109,420.79 40,109,420.79
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity
4,235,379.73 4,235,379.73
investments
Investment in other
equity instrument
Other non-current
financial assets
Investment real estate
Fixed assets 3,813,708.80 3,813,708.80
Construction in progress
Productive biological
assets
Oil and gas assets
Right-of-use assets
Intangible assets 753,000.00 753,000.00
Research and
development costs
Goodwill
Long-term deferred
expenses
55
Deferred income tax
assets
Other non-current assets 400,000.00 400,000.00
Total non-current assets 9,202,088.53 9,202,088.53
Total assets 49,311,509.32 49,311,509.32
Current liabilities
Short-term borrowings
Trading financial
liability
Derivative financial
liability
Notes payable
Account payable 9,002,524.60 9,002,524.60
Accounts received in
572,687.18 0.00 -572,687.18
advance
Contract liability 506,802.81 506,802.81
Wage payable 507,738.35 507,738.35
Taxes payable 27,797.28 93,681.65 65,884.37
Other accounts payable 36,803,498.12 36,803,498.12
Including: Interest
payable
Dividend
payable
Liability held for sale
Non-current liabilities
due within one year
Other current liabilities
Total current liabilities 46,914,245.53 46,914,245.53
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred
stock
Perpetual
capital securities
Lease liability
56
Long-term account
payable
Long term employee
compensation payable
Accrued liabilities
Deferred income
Deferred income tax
liabilities
Other non-current
liabilities
Total non-current liabilities 0.00
Total liabilities 46,914,245.53 46,914,245.53
Owners’ equity:
Share capital 551,347,947.00 551,347,947.00
Other equity instrument
Including: preferred
stock
Perpetual
capital securities
Capital public reserve 627,834,297.85 627,834,297.85
Less: Inventory shares
Other comprehensive
income
Special reserve
Surplus reserve 32,673,227.01 32,673,227.01
Retained profit -1,209,458,208.07 -1,209,458,208.07
Total owner’s equity 2,397,263.79 2,397,263.79
Total liabilities and owner’s
49,311,509.32 49,311,509.32
equity
Explanation
According to the new revenue standard, adjust the number of statements at the beginning of the year, based on the amount received in
advance of the contract, amount excluding tax is adjusted from "Account receivable in advance" to "contract liabilities", and "amount
of tax to be written off" is adjusted to "tax payable".
(4)Retrospective adjustment of the previous comparative data for first implemented the New Revenue
Standards and New Lease Standards since 2020
57
□ Applicable √ Not applicable
45. Other
N/A
VI. Taxes
1. Main tax category and tax rate
Tax category Tax calculation evidence Tax rate
Sales of goods, taxable labor service
Value added tax revenue, taxable income, intangible assets 5%, 6%, 13%
income and income from property leasing
Tax for maintaining and building cities Turnover tax payable 7%
Enterprise income tax Taxable income 25%, 20%
Educational surtax Turnover tax payable 3%
Local educational surtax Turnover tax payable 2%
Disclose reasons for different taxpaying body
Taxpaying body Income tax rate
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. 20%
2. Tax preference
According to the “Notice on the Implementation of the Inclusive Tax Reduction and Exemption Policy for Small and Micro
Enterprises” (Caishui [2019] No.13), for the portion of the annual taxable income of small and micro-profit enterprises not exceeding
1 million yuan, of which 25% is reckoned in taxable income, and the corporate income tax is paid at a tax rate of 20%; for the portion
of annual taxable income exceeding 1 million yuan but not exceeding 3 million yuan, of which 50% is reckoned in taxable income,
and the corporate income tax is paid at a tax rate of 20%.
3. Other
Nil
VII. Notes to Items in Consolidated Financial Statements
1. Monetary fund
In RMB
Item Ending balance Opening Balance
58
Cash on hand 108,773.66 89,313.66
Cash in bank 12,105,490.19 5,979,003.60
Other monetary fund 6,050.65
Total 12,214,263.85 6,074,367.91
Other explanation
At the end of the period, there are no mortgages, pledges, freezes, etc. that restrict the use of funds.
At the end of the period, there are no funds deposited overseas or with potential recovery risks.
2. Trading financial assets
In RMB
Item Ending balance Opening Balance
Including:
Including:
Other explanation:
Nil
3. Derivative financial assets
In RMB
Item Ending balance Opening Balance
Other explanation:
Nil
4. Notes receivable
(1) Category
In RMB
Item Ending balance Opening Balance
Bank acceptance 150,000.00 580,000.00
Total 150,000.00 580,000.00
In RMB
Ending balance Opening Balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book Book
Accrual Accrual
Amount Ratio Amount value Amount Ratio Amount value
ratio ratio
Including:
59
Including:
Total 0.00 0.00% 0.00 0.00% 0.00 0.00 0.00% 0.00 0.00% 0.00
Bad debt provision accrual on single basis:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Total 0.00 0.00 -- --
Bad debt provision accrual on single basis:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Total 0.00 0.00 -- --
Bad debt provision accrual on single basis:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Total 0.00 0.00 -- --
Bad debt provision accrual on single basis:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Bad debt provision accrual on portfolio:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio
Total 0.00 0.00 --
Explanation on portfolio basis:
Bad debt provision accrual on portfolio:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio
Total 0.00 0.00 --
Explanation on portfolio basis:
Bad debt provision accrual on portfolio:
In RMB
60
Ending balance
Name
Book balance Bad debt provision Accrual ratio
Explanation on portfolio basis:
If the provision for bad debts of notes receivable is made in accordance with the general model of expected credit losses, please refer
to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Category Opening Balance Ending balance
Accrual Collected or reversal Charge-off
Including important amount of bad debt provision collected or reversal in the period:
□Applicable √Not applicable
(3) Note receivable pledged at period-end
In RMB
Item Amount pledged at period-end
(4) Note receivable which have endorsed and discount at period-end and has not expired on balance sheet
date
In RMB
Item Amount derecognition at period-end Amount not derecognition at period-end
Bank acceptance 8,967,471.70 0.00
Total 8,967,471.70 0.00
(5) 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
Other explanation
(6) Note receivable actually charge-off in the period
In RMB
Item Amount charge-off
Including important note receivable charge-off:
61
In RMB
Amount cause by
Procedure for
Enterprise Nature Amount charge-off Causes of charge-off related transactions
charge-off
or not (Y/N)
Explanation on note receivable change-off:
5. Account receivable
(1) 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
Account receivable
with bad debt 5,786,60 4,073,81 1,712,796 9,421,186 4,477,656 4,943,530.7
11.51% 70.40% 21.81% 47.53%
provision accrual by 7.45 1.33 .12 .95 .23 2
single basis
Including:
Accounts with single
significant amount
5,035,603 1,510,681 3,524,922.6
but with bad debts 11.66% 30.00%
.75 .13 2
provision accrued
individually
Accounts with single
minor amount but
5,786,60 4,073,81 1,712,796 4,385,583 2,966,975 1,418,608.1
with bad debts 11.51% 70.40% 10.15% 67.65%
7.45 1.33 .12 .20 .10 0
provision accrued
individually
Account receivable
with bad debt 44,509,1 133,527. 44,375,66 33,774,31 101,322.9 33,672,993.
88.49% 0.30% 78.19% 0.30%
provision accrual by 89.39 57 1.82 6.16 5 21
portfolio
Including:
Aging analysis 44,509,1 133,527. 44,375,66 33,774,31 101,322.9 33,672,993.
88.49% 0.30% 78.19% 0.30%
method 89.39 57 1.82 6.16 5 21
50,295,7 4,207,33 46,088,45 43,195,50 4,578,979 38,616,523.
Total 100.00% 8.37% 100.00% 10.60%
96.84 8.90 7.94 3.11 .18 93
Bad debt provision accrual on single basis: The individual amount is not significant
62
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Shijiazhuang Dasong Expected to be difficult
837,064.00 837,064.00 100.00%
Tech. Co., Ltd to recover
Sichuan Wanling Electric Expected to be difficult
1,102,072.20 1,102,072.20 100.00%
Technology Co., Ltd. to recover
Shanghai Swen Electric Expected to be difficult
304,867.50 243,894.00 80.00%
Vehicle Co., Ltd. to recover
Guangdong Xinlingjia Expected to be difficult
1,149,000.00 380,100.00 33.08%
New Energy Co., Ltd. to recover
Shenzhen Jiahaosong Expected to be difficult
2,393,603.75 1,510,681.13 63.11%
Technology Co., Ltd. to recover
Total 5,786,607.45 4,073,811.33 -- --
Bad debt provision accrual on single basis:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Bad debt provision accrual on portfolio: Aging analysis
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio
Within one year (one year
40,519,515.84 121,558.55 0.30%
included)
1-2 years (2 years included) 3,989,673.55 11,969.02 0.30%
Total 44,509,189.39 133,527.57 --
Explanation on portfolio basis:
Nil
Bad debt provision accrual on portfolio:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio
Explanation on portfolio basis:
If the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses, please
refer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
By account age
63
In RMB
Account age Ending balance
Within one year (one year included) 40,519,515.84
Within one year 40,519,515.84
1-2 years 7,496,552.80
2-3 years 468,148.50
Over 3 years 1,811,579.70
3-4 years 772,414.20
4-5 years 1,039,165.50
Total 50,295,796.84
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Category Opening Balance Collected or Ending balance
Accrual Charge-off Other
reversal
Bad debt
provision for
4,578,979.18 33,996.70 201,743.40 202,101.50 4,207,338.90
accounts
receivable
Total 4,578,979.18 33,996.70 201,743.40 202,101.50 4,207,338.90
Including important amount of bad debt provision collected or reversal in the period:
In RMB
Enterprise Amount collected or reversal Collection way
Shenzhen Boyineng Technology Co., Ltd. 201,743.40 Payment recovery
Total 201,743.40 --
At the end of the previous year, for those estimated to be difficult to recover, 30% bad debt provision was accrued based on the
insignificant single amount and a separate provision for bad debts. During this year, the company collected payment for several times
and by various methods. After the impairment test, the possibility of recoverable was greatly increased, so the provision for bad debts
that had been accrued was reversed.
(3) Account receivables actually charge-off during the reporting period
In RMB
Item Amount charge-off
The actual write-off of accounts receivable 202,101.50
64
Including major account receivables charge-off:
In RMB
Amount cause by
Procedure for
Enterprise Nature Amount charge-off Causes of charge-off related transactions
charge-off
or not (Y/N)
Shijiazhuang Dasong
Goods payment 202,101.50 Unable to recover N
Technology Co., Ltd.
Total -- 202,101.50 -- -- --
Explanation on account receivable charge-off:
Nil
(4) Top five account receivables collected by arrears party at ending balance
In RMB
Ending balance of accounts Proportion of total closing balance Ending balance of bad bet
Name
receivable of accounts receivable provision
Guangshui Jiaxu Energy
12,758,950.90 25.37% 38,276.85
Technology Co., Ltd.
Zhengzhou Guiguan Tech.
5,218,756.80 10.38% 15,656.27
Trade. Co., Ltd
Shenzhen Bi’ai Diamond
4,897,954.16 9.74% 14,693.86
Co., Ltd.
Fuzhou Rongrun Jewelry
3,558,748.00 7.08% 10,676.24
Co., Ltd.
Shenzhen Weiterui New
Energy Technology Co., 3,424,471.05 6.81% 10,273.41
Ltd.
Total 29,858,880.91 59.38%
(5) Account receivable derecognition due to transfer of financial assets
Nil
(6) Assets and liability resulted by account receivable transfer and continuous involvement
Nil
Other explanation：
Nil
65
6. Receivables financing
In RMB
Item Ending balance Opening Balance
Change of receivables financing and fair value in the period
□Applicable √Not applicable
If the provision for bad debts of receivable financing is made in accordance with the general model of expected credit losses, please
refer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
Other explanation：
Nil
7. Account paid in advance
(1) By account age
In RMB
Ending balance Opening Balance
Account age
Amount Ratio Amount Ratio
Within one year 2,489,164.74 100.00% 938,425.99 100.00%
Total 2,489,164.74 -- 938,425.99 --
Explanation on un-settlement in time for advance payment with over one year account age and major amounts:
Nil
(2) Top 5 advance payment at ending balance by prepayment object
Enterprise Relationship Amount Account age Ratio in total
with the Nature advance e
Company payment (%)
Taixing Suchi Electronics Co., Ltd. Non-related 830,000.00 Within 1 year Goods advance 33.34
party payment
Shenzhen Jinming Artisan Jewelry Co., Non-related 610,658.49 Within 1 year Prepaid processing 24.53
Ltd. party fee
Hubei Zhongyi Technology Co., Ltd. Non-related 360,000.00 Within 1 year Goods advance 14.46
party payment
Shenzhen Zhuoyue New Times Non-related 284,400.00 Within 1 year Goods advance 11.43
Electronics Co., Ltd. party payment
Huzhou Kunlun Power Battery Material Non-related 97,500.00 Within 1 year Goods advance 3.92
Co., Ltd. party payment
Total 2,182,558.49 87.68
Other explanation：
66
Nil
8. Other account receivable
In RMB
Item Ending balance Opening Balance
Other account receivable 458,177.20 740,354.71
Total 458,177.20 740,354.71
(1) Interest receivable
1) Category
In RMB
Item Ending balance Opening Balance
2) Important overdue interest
In RMB
Impairment (Y/N) and
Borrower Ending balance Overdue time Overdue reason
judgment basis
Total 0.00 -- -- --
Other explanation：
Nil
3) Accrual of bad debt provision
□Applicable √Not applicable
(2) Dividend receivable
1) Category
In RMB
Item (or invested company) Ending balance Opening Balance
2) Important dividend receivable with over one year aged
In RMB
Item (or invested Causes of failure for Impairment (Y/N) and
Ending balance Account age
company) collection judgment basis
67
Total 0.00 -- -- --
3) Accrual of bad debt provision
□Applicable √Not applicable
Other explanation：
Nil
(3) Other account receivable
1) By nature
In RMB
Account nature Book Ending balance Book Opening Balance
Deposit or margin 369,600.88 754,822.00
Payment for equipment 311,400.00 311,400.00
Personal loan of employees 130,254.99 28,060.45
Total 811,255.87 1,094,282.45
2) Accrual of bad debt provision
In RMB
Phase I Phase II Phase III
Expected credit Expected credit losses for Expected credit losses for
Bad debt provision Total
losses over next 12 the entire duration (without the entire duration (with
months credit impairment occurred) credit impairment occurred)
Balance on January 1,
353,927.74 353,927.74
2020
Balance on January 1,
2020 in the current —— —— —— ——
period
Current reversal 849.07 849.07
Balance on June 30, 2020 353,078.67 353,078.67
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
By account age
In RMB
Account age Ending balance
Within one year (one year included) 173,016.88
68
Within one year 173,016.88
1-2 years 116,338.99
2-3 years 170,200.00
Over 3 years 351,700.00
3-4 years 41,700.00
4-5 years 10,000.00
Over 5 years 300,000.00
Total 811,255.87
3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Category Opening Balance Collected or Ending balance
Accrual Write off Other
reversal
Bad debt
provision for 353,927.74 849.07 353,078.67
other receivables
Total 353,927.74 849.07 353,078.67
Nil
Important amount of bad debt provision switch-back or collection in the period:
In RMB
Enterprise Amount switch-back or collection Collection way
Total 0.00 --
Nil
4) Other account receivables actually charge-off during the reporting period
In RMB
Item Amount charge-off
Including major other account receivables charge-off:
In RMB
Amount cause by
Procedure for
Enterprise Nature Amount charge-off Causes of charge-off related transactions
charge-off
or not (Y/N)
Total -- 0.00 -- -- --
Other Explanation on account receivable charge-off
69
Nil
5) Top 5 other account receivable collected by arrears party at ending balance
In RMB
Proportion in total
other account Ending balance of
Enterprise Nature Ending balance Account age
receivables at bad debt provision
period-end
Shenzhen Luwei
Payment for
Mechatronic 300,000.00 Over 5 years 36.98% 300,000.00
equipment
Equipment Co., Ltd
Alipay (China)
Network Technology Margin or deposit 110,000.00 Within 3 years 13.56% 330.00
Co., Ltd.
Shenye Pengji
Rent deposit 107,194.00 Within 1 year 13.21% 321.58
(Group) Co., Ltd.
Guangzhou Vipshop
Margin or deposit 50,000.00 Within 2 years 6.16% 150.00
E-Business Co., Ltd.
Quick Money
Payment Clearing
Margin or deposit 30,000.00 Within 2 years 3.70% 90.00
Information Co.,
Ltd.
Total -- 597,194.00 -- 73.61% 300,891.58
6) Account receivable with government grants involved
In RMB
Time, amount and basis
Enterprise Government grants Ending balance Ending account age of amount collection
estimated
Nil
7) Other account receivable derecognition due to financial assets transfer
Nil
8) Assets and liability resulted by other account receivable transfer and continuous involvement
Nil
Other explanation：
Nil
70
9. Inventory
Does the company need to comply with the disclosure requirements of the real estate industry
No
(1) Category
In RMB
Ending balance Opening Balance
Provision for Provision for
inventory inventory
depreciation or depreciation or
Item
Book balance contract Book value Book balance contract Book value
performance cost performance cost
impairment impairment
provision provision
Raw materials 839,565.85 839,565.85 2,183,259.92 2,183,259.92
Finished goods 1,308,177.98 134,889.09 1,173,288.89 1,542,282.57 521,083.05 1,021,199.52
Consigned
processing 2,113,002.17 2,113,002.17 2,873,870.86 2,873,870.86
materials
Total 4,260,746.00 134,889.09 4,125,856.91 6,599,413.35 521,083.05 6,078,330.30
The Company shall comply with the disclosure requirement of “Guidelines on Industry Information Disclosure of Shenzhen Stock
Exchange No. 11- Listed Company Engaged in Jewelry-related Business”
(2) Provision for inventory depreciation or contract performance cost impairment provision
In RMB
Current increased Current decreased
Item Opening Balance Switch back or Ending balance
Accrual Other Other
charge-off
Inventory 521,083.05 386,193.96 134,889.09
Total 521,083.05 386,193.96 134,889.09
Nil
(3) Explanation on capitalization of borrowing costs at ending balance of inventory
Nil
71
(4) Description of the current amortization amount of contract performance costs
Nil
10. Contractual assets
In RMB
Ending balance Opening Balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Total 0.00 0.00 0.00 0.00
Book value of contract assets have major changes and causes:
In RMB
Item Amount changes Causes
Total 0.00 ——
If the provision for bad debts of contract asset is made in accordance with the general model of expected credit losses, please refer to the
disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
Accrual of impairment provision in the period
In RMB
Reversal/Charge-off in
Item Accrual in the period Switch-back in the period Causes
the period
Total 0.00 0.00 0.00 --
Other explanation:
Nil
11. Assets held for sale
In RMB
Book Ending Impairment Ending book Expected disposal Expected disposal
Item Fair value
balance provision value expenses time
Total 0.00 0.00 0.00 0.00 0.00 --
Other explanation:
Nil
12. Non-current asset due within one year
In RMB
Item Ending balance Opening Balance
72
Important creditors’ investment/other creditors’ investment
In RMB
Ending balance Opening Balance
Creditor's rights
Face value Coupon rate Actual rate Due date Face value Coupon rate Actual rate Due date
Total 0.00 —— —— —— 0.00 —— —— ——
Other explanation:
Nil
13. Other current assets
In RMB
Item Ending balance Opening Balance
Tax credit and input tax to be certified 3,191,727.71 3,188,649.68
Prepaid corporate income tax 55,813.33 129,864.57
Total 3,247,541.04 3,318,514.25
Other explanation:
Nil
14. Creditors’ investment
In RMB
Ending balance Opening Balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Total 0.00 0.00 0.00 0.00
Important creditors’ investment
In RMB
Ending balance Opening Balance
Creditor's rights
Face value Coupon rate Actual rate Due date Face value Coupon rate Actual rate Due date
Total 0.00 —— —— —— 0.00 —— —— ——
Accrual of impairment provision
In RMB
Phase I Phase II Phase III
Expected credit Expected credit losses for Expected credit losses for
Bad debt provision Total
losses over next 12 the entire duration (without the entire duration (with
months credit impairment occurred) credit impairment occurred)
Balance on January 1,
—— —— —— ——
2020 in the current
73
period
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
Other explanation:
Nil
15. Other creditors’ investment
In RMB
Cumulative
loss
Change of Cumulative impairment
Opening Accrued Ending
Item fair value in Cost changes of recognized in Note
Balance interest balance
the period fair value other
comprehensi
ve income
Total 0.00 0.00 0.00 0.00 0.00 ——
Important other creditors’ investment
In RMB
Other creditors’ Ending balance Opening Balance
investment Face value Coupon rate Actual rate Due date Face value Coupon rate Actual rate Due date
Total 0.00 —— —— —— 0.00 —— —— ——
Accrual of impairment provision
In RMB
Phase I Phase II Phase III
Expected credit Expected credit losses for Expected credit losses for
Bad debt provision Total
losses over next 12 the entire duration (without the entire duration (with
months credit impairment occurred) credit impairment occurred)
Balance on January 1,
2020 in the current —— —— —— ——
period
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
Other explanation:
Nil
74
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 interval
provision provision
Total 0.00 0.00 0.00 0.00 --
Impairment of bad debt provision
In RMB
Phase I Phase II Phase III
Expected credit Expected credit losses for Expected credit losses for
Bad debt provision Total
losses over next 12 the entire duration (without the entire duration (with
months credit impairment occurred) credit impairment occurred)
Balance on January 1,
2020 in the current —— —— —— ——
period
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
Nil
(2) Long-term account receivable derecognized due to financial assets transfer
Nil
(3) Assets and liabilities resulted by long-term account receivable transfer and continues involvement
Nil
Other explanation
Nil
17. Long-term equity investments
In RMB
Changes in the period (+, -) Ending
Opening Investme Other Cash Accrual Ending balance
The Additiona
Balance nt gains comprehe Other dividend of balance of
invested l Capital
(Book recognize nsive equity or profit impairme Other (Book impairme
entity investmen reduction
value) d under income change announce nt value) nt
t
equity adjustmen d to provision provision
75
t issued
I. Joint venture
Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
II. Associated enterprise
Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other explanation
Nil
18. Other equity instrument investment
In RMB
Item Ending balance Opening Balance
Itemized the non-tradable equity instrument investment in the period
In RMB
Causes of those
that designated
Retained earnings measured by fair Cause of retained
transfer from value and with its earnings transfer
Dividend income Cumulative
Item Cumulative gains other variation from other
recognized losses
comprehensive reckoned into comprehensive
income other income
comprehensive
income
Other explanation:
Nil
19. Other non-current financial assets
In RMB
Item Ending balance Opening Balance
Other explanation:
Nil
20. Investment real estate
(1) Investment real estate measured at cost
□Applicable √Not applicable
76
(2) Investment real estate measured at fair value
□Applicable √Not applicable
(3) Investment real estate without property rights certificate
In RMB
Reasons for failing to complete the
Item Book value
property rights certificate
Other explanation
Nil
21. Fixed assets
In RMB
Item Ending balance Opening Balance
Fixed assets 3,963,702.62 4,191,503.33
Total 3,963,702.62 4,191,503.33
(1) Fixed assets
In RMB
Housing and Machinery Means of Electronic
Item Total
buildings equipment transportation equipment and other
I. original book
value:
1.Opening
2,959,824.00 1,477,691.03 958,593.21 230,136.11 5,626,244.35
Balance
2.Current
4,455.45 4,455.45
increased
(1) Purchase 4,455.45 4,455.45
(2) construction
in process transfer-in
(3) the
increase in business
combination
3.Current
63,210.26 63,210.26
decreased
77
(1) Disposal or
63,210.26 63,210.26
scrap
4.Ending balance 2,959,824.00 1,414,480.77 958,593.21 234,591.56 5,567,489.54
II. accumulated
depreciation
1.Opening
466,172.28 217,943.02 586,406.73 164,218.99 1,434,741.02
Balance
2.Current
66,596.04 65,896.12 57,806.12 9,814.67 200,112.95
increased
(1) Accrual 66,596.04 65,896.12 57,806.12 9,814.67 200,112.95
3.Current
31,067.05 31,067.05
decreased
(1) Disposal or
31,067.05 31,067.05
scrap
4.Ending balance 532,768.32 252,772.09 644,212.85 174,033.66 1,603,786.92
III. Impairment
provision
1.Opening
Balance
2.Current
increased
(1) Accrual
3.Current
decreased
(1) Disposal or
scrap
4.Ending balance
IV. Book value
1.Ending book
2,427,055.68 1,161,708.68 314,380.36 60,557.90 3,963,702.62
value
2.Opening book
2,493,651.72 1,259,748.01 372,186.48 65,917.12 4,191,503.33
value
78
(2) Fixed assets temporary idle
In RMB
Accumulated Impairment
Item Original book value Book value Note
depreciation provision
(3) Fixed assets leasing-in by financing lease
In RMB
Accumulated
Item Original book value Impairment provision Book value
depreciation
(4) Fixed assets leasing-out by operational lease
In RMB
Item Ending book value
(5) Fixed assets without property rights certificate
In RMB
Reasons for failing to complete the
Item Book value
property rights certificate
The six properties of Lianxin Garden
7-20F with original value of 2,959,824.00
Yuan. The property purchasing refers to the
indemnificatory housing for enterprise
talent buying from Shenzhen Housing and
Construction Bureau of Luohu District.
Six properties in Lianxin Garden 2,493,651.72
According to the agreement, the enterprise
shall not carrying any kind of property
trading with any units or individuals except
the government, and the company has no
property certification on the above
mentioned properties.
Other explanation
No accrual for impairment provision due to there was no evidence of impairment being found in fixed assets at period-end
(6) Fixed assets disposal
In RMB
Item Ending balance Opening Balance
Other explanation
79
Nil
22. Construction in progress
In RMB
Item Ending balance Opening Balance
(1) Construction in progress
In RMB
Ending balance Opening Balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
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 in the period Reasons for accrual
Total 0.00
Other explanation
Nil
(4) Engineering materials
In RMB
Ending balance Opening Balance
Item
Book balance Impairment Book value Book balance Impairment Book value
80
provision provision
Total 0.00 0.00 0.00 0.00
Other explanation:
Nil
23. Productive biological asset
(1) Productive biological assets measured by cost
□Applicable √Not applicable
(2) Productive biological assets measured by fair value
□Applicable √Not applicable
24. Oil and gas asset
□Applicable √Not applicable
25. Right-of-use asset
In RMB
Item Total
Other explanation:
Nil
26. Intangible assets
(1) Intangible assets
In RMB
Non-patent
Item Land use right Patent Trademark Total
technology
I. Original book
value
1.Opening
5,271,000.00 5,271,000.00
Balance
2.Current
increased
(1) Purchase
(2) internal R
81
&D
(3) the
increase in business
combination
3.Current
decreased
(1) Disposal
4.Ending
5,271,000.00 5,271,000.00
balance
II. accumulated
depreciation
1.Opening
4,518,000.00 4,518,000.00
Balance
2.Current
376,500.00 376,500.00
increased
(1) Accrual 376,500.00 376,500.00
3.Current
decreased
(1) Disposal
4.Ending
4,894,500.00 4,894,500.00
balance
III. Impairment
provision
1.Opening
Balance
2.Current
increased
(1) Accrual
3.Current
decreased
(1) Disposal
82
4.Ending
balance
IV. Book value
1.Ending book
376,500.00 376,500.00
value
2.Opening book
753,000.00 753,000.00
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
Reasons for failing to complete the
Item Book value
property rights certificate
Other explanation:
Nil
27. Expense on Research and Development
In RMB
Current increased Current decreased
Opening Internal Confirmed as Transfer to Ending
Item
Balance development Other intangible current profit balance
expenditure assets and loss
Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other explanation
Nil
28. Goodwill
(1) Original book value of goodwill
In RMB
Current increased Current decreased
The invested Formed by
Opening Balance Ending balance
entity or items business Dispose
combination
83
Total 0.00 0.00 0.00 0.00 0.00 0.00
(2) Impairment provision of goodwill
In RMB
Current increased Current decreased
The invested Formed by
Opening Balance Ending balance
entity or items business Dispose
combination
Total 0.00 0.00 0.00 0.00 0.00 0.00
Information about the asset group or asset group combination in which the goodwill is located
Nil
Explain the method of confirming the goodwill impairment test process, key parameters (such as the forecast period growth rate,
stable period growth rate, profit rate, discount rate, forecast period, etc. when estimating the present value of future cash flow), and
the impairment loss of goodwill:
Nil
Impact of impairment test for goodwill
Nil
Other explanation
Nil
29. Long-term expenses to be apportioned
In RMB
Amortized in the
Item Opening Balance Current increased Other decrease Ending balance
Period
Total 0.00 0.00 0.00
Other explanation
Nil
30. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets without offset
In RMB
Ending balance Opening Balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Impairment provision of 980,142.35 3,920,569.42 1,042,582.16 4,170,328.65
84
assets
Total 980,142.35 3,920,569.42 1,042,582.16 4,170,328.65
(2) Deferred income tax liabilities without offset
In RMB
Ending balance Opening Balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
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
980,142.35 1,042,582.16
assets
(4) Details of unrecognized deferred income tax assets
In RMB
Item Ending balance Opening Balance
Total 0.00 0.00
(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.
85
31. Other non-current assets
In RMB
Ending balance Opening Balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Prepay for house purchase 400,000.00 400,000.00 400,000.00 400,000.00
Total 400,000.00 400,000.00 400,000.00 400,000.00
Other explanation:
As of June 30, 2020, the Housing and Construction Bureau of Luohu District, Shenzhen City has not delivered houses for enterprise
talents in Luohu District.
32. Short-term loans
(1) Category
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
Borrower Ending balance Lending rate Overdue time Overdue rate
Total 0.00 -- -- --
Other explanation:
Nil
33. Trading financial liability
In RMB
Item Ending balance Opening Balance
Including:
Including:
Other explanation:
Nil
86
34. Derivative financial liability
In RMB
Item Ending balance Opening Balance
Other explanation:
Nil
35. Notes payable
In RMB
Category Ending balance Opening Balance
Notes expired at period-end without paid was 0.00 Yuan.
36. Account payable
(1) Account payable
In RMB
Item Ending balance Opening Balance
Within one year (one year included) 8,103,743.89 9,575,684.30
1-2 years (2 years included) 487,016.93 487,016.93
2-3 years (3 years included) 7,099.50 7,099.50
3-4 years (4 years included) 118,380.50 118,380.50
4-5 years (5 years included) 2,366.00 2,366.00
Over 5 years 838.00 838.00
Total 8,719,444.82 10,191,385.23
(2) Important account payable with account age over one year
In RMB
Item Ending balance Reasons of un-paid or carry-over
Total 0.00 --
Other explanation:
The top five accounts payable at the end of the period
Enterprise Relationship with Amount Aging Ratio in total
the company accounts payable Nature
(%)
Tianjin Jianya Electronic Non-related party 2,777,584.30 Within 1 year 31.86 Goods payment
87
Technology Co., Ltd.
Fujian Hengsheng Jewelry Co., Ltd. Non-related party 1,276,993.06 Within 1 year 14.65 Goods payment
Baodao Vehicle Industry Group Non-related party 1,262,115.24 Within 1 year 14.47 Goods payment
Co., Ltd.
Changzhou Youyi Vehicle Non-related party 747,661.00 Within 1 year 8.57 Goods payment
Technology Co., Ltd.
Guangxi Shengdong New Energy Non-related party 649,600.00 Within 1 year 7.45 Goods payment
Technology Co., Ltd.
Total 6,713,953.60 77.00
37. Account received in advance
(1) Account received in advance
In RMB
Item Ending balance Opening Balance
Total 0.00
(2) Account received in advance with over one year book age
In RMB
Item Ending balance Reasons of un-paid or carry-over
Total 0.00 --
Other explanation：
Nil
38. Contract liability
In RMB
Item Ending balance Opening Balance
Rent received in advance 6,982,666.68
Advance payment 1,042,433.85 1,539,782.12
Total 8,025,100.53 1,539,782.12
Book value has major changes in the period and causes
In RMB
Item Amount changes Causes
Shenzhen Renhui Wooden
6,556,000.00 Rent in advance according to the contract
Products Co., Ltd.
Total 6,556,000.00 ——
88
39. Wage payable
(1) Wage payable
In RMB
Item Opening Balance Current increased Current decreased Ending balance
I. Short-term
599,962.73 2,948,339.49 2,965,380.96 582,921.26
compensation
II. Post-employment
benefit-Defined 96,178.27 96,178.27
contribution plan
Total 599,962.73 3,044,517.76 3,061,559.23 582,921.26
(2) Short-term compensation
In RMB
Item Opening Balance Current increased Current decreased Ending balance
1. Wages, bonus,
593,459.94 2,651,491.52 2,669,044.65 575,906.81
allowances and subsidy
3. Social insurance 64,350.87 64,350.87
Including: Medical
56,780.88 56,780.88
insurance
Work injury
1,396.27 1,396.27
insurance
Maternity
6,173.72 6,173.72
insurance
4. Housing accumulation
193,066.56 192,406.56 660.00
fund
5. Labor union
expenditure and
6,502.79 39,430.54 39,578.88 6,354.45
personnel education
expense
Total 599,962.73 2,948,339.49 2,965,380.96 582,921.26
(3) Defined contribution plan
In RMB
Item Opening Balance Current increased Current decreased Ending balance
1. Basic endowment 95,029.87 95,029.87
89
insurance
2. Unemployment
1,148.40 1,148.40
insurance
Total 96,178.27 96,178.27
Other explanation:
At the end of the period, there was no arrears in employee compensation.
40. Taxes payable
In RMB
Item Ending balance Opening Balance
Value added tax 680,747.23 740,374.76
Corporate income tax 110,321.60 14,285.50
Individual income tax 22,317.11 21,755.56
Tax for maintaining and building cities 2,001.21 925.10
Educational surtax 1,392.64 623.21
Stamp tax 7,146.98 7,270.30
Total 823,926.77 785,234.43
Other explanation:
Nil
41. Other account payable
In RMB
Item Ending balance Opening Balance
Other account payable 36,755,216.28 38,175,654.98
Total 36,755,216.28 38,175,654.98
(1) Interest payable
In RMB
Item Ending balance Opening Balance
Important interest overdue without paid:
In RMB
Borrower Amount overdue Overdue reason
Total 0.00 --
Other explanation:
Nil
90
(2) Dividend payable
In RMB
Item Ending balance Opening Balance
Other explanation, including dividends payable with over one year age and disclosure un-payment reasons:
Nil
(3) Other account payable
1) By nature
In RMB
Item Ending balance Opening Balance
Custodian and common benefit debts 18,707,866.44 18,764,512.80
Intercourse funds 6,500,000.00 6,500,000.00
Warranty and guarantee money 11,077,458.84 11,291,325.00
Other payable service charge (intermediary
255,083.95 876,599.88
services included)
Other 214,807.05 743,217.30
Total 36,755,216.28 38,175,654.98
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 18,707,866.44 -
Warranty and guarantee money 4,000,000.00 Performance bond
Shenzhen Guosheng Energy Investment
6,500,000.00 Interest-free loans
Development Co., Ltd.
Total 29,207,866.44 --
Other explanation
Top 5 other receivables at period-end
Relationship with Aging Ratio in total other
Enterprise Amount Nature
the company receivables (%)
Custodian and common benefit Non-related party 18,707,866.44 Over 5 years 50.90 Obligatory right of
debts common benefit
Shenzhen Guosheng Energy related party 6,500,000.00 Over 5 years 17.69 Interest-free loans
Investment Development Co., Ltd.
Wansheng Industrial Holdings Non-related party 2,000,000.00 Within 4 years 5.44 Cash deposit
91
(Shenzhen) Co., Ltd.
Fuzhou Zuanjinsen Jewelry Co., related party 2,000,000.00 Within 1 year 5.44 Cash deposit
Ltd.
Shenzhen Bei’er High-tech Non-related party 1,500,000.00 Within 4 years 4.08 Cash deposit
Enterprise (Limited Partnership)
Total 30,707,866.44 83.55
42. Liability held for sale
In RMB
Item Ending balance Opening Balance
Other explanation:
Nil
43. Non-current liabilities due within one year
In RMB
Item Ending balance Opening Balance
Other explanation:
Nil
44. Other current liabilities
In RMB
Item Ending balance Opening Balance
Changes of short-term bond payable:
In RMB
Accrual Premium/
Face Release Bond Issuing Opening Issued in interest discount Paid in Ending
Bond
value date period amount balance the Period by face amortizati the Period balance
value on
Total -- -- -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other explanation:
Nil
45. Long-term loans
(1) Category
In RMB
92
Item Ending balance Opening Balance
Explanation on category of long-term loans:
Nil
Other explanation, including interest rate section:
Nil
46. Bonds payable
(1) Bonds payable
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
Accrual Premium/
Face Release Bond Issuing Opening Issued in interest discount Paid in Ending
Bond
value date period amount balance the Period by face amortizati the Period balance
value on
Total -- -- -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(3) Convertible conditions and time for shares transfer for the convertible bonds
Nil
(4) Other financial instruments classify as financial liability
Basic information of the outstanding preferred stock and perpetual capital securities at period-end
Nil
Changes of outstanding preferred stock and perpetual capital securities at period-end
In RMB
Outstanding Period-begin Current increased Current decreased Period-end
financial
Amount Book value Amount Book value Amount Book value Amount Book value
instrument
Total 0 0.00 0 0.00 0 0.00 0 0.00
Basis for financial liability classification for other financial instrument
Nil
Other explanation
93
Nil
47. Lease liability
In RMB
Item Ending balance Opening Balance
Other explanation
Nil
48. Long-term account payable
In RMB
Item Ending balance Opening Balance
(1) By nature
In RMB
Item Ending balance Opening Balance
Other explanation:
Nil
(2) Special payable
In RMB
Item Opening Balance Current increased Current decreased Ending balance Causes of formation
Total 0.00 0.00 --
Other explanation:
Nil
49. Long-term wages payable
(1) Long-term wages payable
In RMB
Item Ending balance Opening Balance
(2) Changes of defined benefit plans
Present value of the defined benefit plans:
In RMB
Item Current Period Last Period
94
Scheme assets:
In RMB
Item Current Period Last Period
Net liability (assets) of the defined benefit plans
In RMB
Item Current Period Last Period
Content of defined benefit plans and relevant risks, impact on future cash flow of the Company as well as times and uncertainty:
Nil
Major actuarial assumption and sensitivity analysis:
Nil
Other explanation:
Nil
50. Accrual liability
In RMB
Item Ending balance Opening Balance Causes of formation
Other explanation, including relevant important assumptions and estimation:
Nil
51. Deferred income
In RMB
Item Opening Balance Current increased Current decreased Ending balance Causes of formation
Total 0.00 0.00 --
Item with government grants involved:
In RMB
Amount
Amount Cost Assets-relate
Opening New grants reckoned in Other Ending
Liability reckoned in reduction in d/income
Balance in the Period non-operatio changes balance
other income the period related
n revenue
Other explanation:
Nil
52. Other non-current liabilities
In RMB
Item Ending balance Opening Balance
Other explanation:
95
Nil
53. Share capital
In RMB
Changes in the period (+, -)
Shares
Opening
New shares transferred Ending balance
Balance Bonus share Other Subtotal
issued from capital
reserve
Total shares 551,347,947.00 551,347,947.00
Other explanation:
Nil
54. Other equity instrument
(1) Basic information of the outstanding preferred stock and perpetual capital securities at period-end
Nil
(2) Changes of outstanding preferred stock and perpetual capital securities at period-end
In RMB
Outstanding Period-begin Current increased Current decreased Period-end
financial
Amount Book value Amount Book value Amount Book value Amount Book value
instrument
Total 0 0 0.00 0 0.00 0
Changes of other equity instrument, change reasons and relevant accounting treatment basis:
Nil
Other explanation:
Nil
55. Capital public reserve
In RMB
Item Opening Balance Current increased Current decreased Ending balance
Other capital reserve 627,834,297.85 627,834,297.85
1. Debt restructuring
482,580,588.23 482,580,588.23
income
2. Other 145,253,709.62 145,253,709.62
96
Total 627,834,297.85 627,834,297.85
Other explanation, including changes and reasons for changes:
Among the other capital reserves, 135,840,297.18 Yuan refers to the payment for creditor from shares assignment by whole
shareholders; majority shareholder Guosheng Energy donated 5,390,399.74 Yuan.
56. Treasury stock
In RMB
Item Opening Balance Current increased Current decreased Ending balance
Total 0.00 0.00
Other explanation, including changes and reasons for changes:
Nil
57. Other comprehensive income
In RMB
Current Period
Less:
Less: written written in
in other other
comprehensi comprehe
ve income in nsive
Account
previous income in Belong to Belong to
Opening before Ending
Item period and previous Less: income parent minority
Balance income tax balance
carried period and tax expense company shareholders
in the
forward to carried after tax after tax
period
gains and forward to
losses in retained
current earnings in
period current
period
Total other comprehensive income 0.00 0.00 0.00 0.00 0.00 0.00
Other explanation, including the active part of the hedging gains/losses of cash flow transfer to initial recognition adjustment for the
arbitraged items:
Nil
58. Reasonable reserve
In RMB
Item Opening Balance Current increased Current decreased Ending balance
Total 0.00 0.00
97
Other explanation, including changes and reasons for changes:
Nil
59. Surplus public reserve
In RMB
Item Opening Balance Current increased Current decreased Ending balance
Statutory surplus
32,673,227.01 32,673,227.01
reserves
Total 32,673,227.01 32,673,227.01
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 -1,204,736,075.56 -1,197,549,169.92
Retained profit at period-begin after adjustment -1,204,736,075.56 -1,197,549,169.92
Add: net profit attributable to shareholders of
2,797,643.50 -798,946.17
parent company for this period
Retained profit at period-end -1,201,938,432.06 -1,198,348,116.09
Adjustment for retained profit at period-begin:
1) Retroactive adjustment due to the Accounting Standards for Business Enterprise and relevant new regulations, retained profit at
period-begin has 0.00 Yuan affected;
2) Due to the accounting policy changes, retained profit at period-begin has 0.00 Yuan affected;
3) Due to the major accounting errors correction, retained profit at period-begin has 0.00 Yuan affected;
4) Consolidation range changed due to the same control, retained profit at period-begin has 0.00 Yuan affected;
5) Total other adjustment impacts 0.00 Yuan retained profit at period-begin
61. Operation revenue and operation cost
In RMB
Current Period Last Period
Item
Revenue Cost Revenue Cost
Main business 36,004,701.56 32,454,948.30 33,834,135.17 32,088,349.25
Other business 6,651,653.65 3,645,817.35 4,440,297.85 3,241,165.72
Total 42,656,355.21 36,100,765.65 38,274,433.02 35,329,514.97
Information relating to revenue:
98
In RMB
Category Branch 1 Branch 2 Total
Product Types 25,097,387.76 17,558,967.45 42,656,355.21
Including:
Jewelry gold 25,097,387.76 25,097,387.76
Bicycle lithium battery
17,558,967.45 17,558,967.45
materials and others
Including:
Including:
Including:
Including:
Including:
Including:
Information relating to performance obligations:
Nil
Information related to the transaction price apportioned to the remaining performance obligations:
The amount of income corresponding to the performance obligations that have been signed at the end of this reporting period but
have not yet been fulfilled or have not done with fulfillment is 0.00 yuan, among them, yuan of revenue is expected to be recognized
in YEAR, yuan of revenue is expected to be recognized in YEAR, and yuan of revenue is expected to be recognized in YEAR.
Other explanation
62. Tax and extras
In RMB
Item Current Period Last Period
Tax for maintaining and building cities 432.52 10,738.55
Educational surtax 308.94 8,298.22
Stamp tax 19,157.58 17,551.00
Total 19,899.04 36,587.77
Other explanation:
Nil
63. Sales expenses
In RMB
Item Current Period Last Period
Salary and Social Security Provident Fund 654,651.76 946,503.40
99
Online sales fee 420,049.56 246,947.49
Other 403,677.46 682,272.72
Total 1,478,378.78 1,875,723.61
Other explanation:
Nil
64. Administrative expenses
In RMB
Item Current Period Last Period
Salary and Social Security Provident Fund 1,474,643.26 1,941,131.64
Other 205,076.18 418,252.20
Total 1,679,719.44 2,359,383.84
Other explanation:
Nil
65. R&D expenses
In RMB
Item Current Period Last Period
Salary and Social Security Provident Fund 753,742.20
Total 753,742.20 0.00
Other explanation:
Nil
66. Financial expenses
In RMB
Item Current Period Last Period
Interest income -31,929.72 -71,134.40
Commission charge etc. 12,669.33 10,681.41
Total -19,260.39 -60,452.99
Other explanation:
Nil
67. Other income
In RMB
100
Sources Current Period Last Period
Tax handling fee 10,105.77
68. Investment income
In RMB
Item Current Period Last Period
Other explanation:
Nil
69. Net exposure hedge gains
In RMB
Item Current Period Last Period
Other explanation:
Nil
70. Income from change of fair value
In RMB
Sources Current Period Last Period
Other explanation:
Nil
71. Credit impairment loss
In RMB
Item Current Period Last Period
Bad debt loss of other account receivable 849.07 2,237.42
Bad debt losses of accounts receivable 169,538.78 -19,717.24
Total 170,387.85 -17,479.82
Other explanation:
Nil
72. Losses of devaluation of asset
In RMB
Item Current Period Last Period
II. Loss of inventory depreciation and loss 40,616.29
101
of contract performance cost impairment
Total 40,616.29
Other explanation:
73. Income from assets disposal
In RMB
Sources Current Period Last Period
Fixed asset disposal 24,936.44
74. Non-operating income
In RMB
Amount reckoned in current
Item Current Period Last Period
non-recurring gains/losses
Other 744,788.91 148,627.00 744,788.91
Total 744,788.91 148,627.00 744,788.91
Government grants reckoned into current gains/losses:
In RMB
Subsidy
impact The special Assets-relate
Government Issuing Offering Amount in Amount in
Nature current subsidy d/income-rela
grants subject causes the Period last period
gains/losses (Y/N) ted
(Y/N)
Other explanation:
75. Non-operating expenses
In RMB
Amount reckoned in current
Item Current Period Last Period
non-recurring gains/losses
Other 2,676.80 50.00 2,676.80
Total 2,676.80 50.00 2,676.80
Other explanation:
Nil
102
76. Income tax expenses
(1) Income tax expenses
In RMB
Item Current Period Last Period
Current income tax expense 107,598.95
Deferred income tax expense 62,439.81 -4,152.36
Total 170,038.76 -4,152.36
(2) Adjustment on accounting profit and income tax expenses
In RMB
Item Current Period
Total Profit 3,590,652.66
Income tax measured by statutory/applicable tax rate 897,663.17
The impact of applying different tax rates to subsidiaries -293,865.24
Impact on deductible temporary differences or losses deductible
-433,759.17
which was un-recognized as deferred income tax assets
Income tax expenses 170,038.76
Other explanation
Nil
77. Other comprehensive income
Found more in Note 57
78. Items of cash flow statement
(1) Other cash received in relation to operation activities
In RMB
Item Current Period Last Period
Interest and Rent and utilities etc. 2,356,618.56 2,583,334.70
Deposit, security deposit, advance payment
10,556,000.00
received
Other intercourse funds 2,094,036.84 1,323,261.33
Total 15,006,655.40 3,906,596.03
Explanation on other cash received in relation to operation activities:
103
Nil
(2) Other cash paid in relation to operation activities
In RMB
Item Current Period Last Period
Refund of deposit 4,000,000.00
Payment of period expenses, operating
6,968,482.31 5,809,899.76
expenses and common debts, etc.
Total 10,968,482.31 5,809,899.76
Explanation on other cash paid in relation to operation activities:
Nil
(3) Cash received from other investment activities
In RMB
Item Current Period Last Period
Explanation on cash received from other investment activities:
Nil
(4) Cash paid related with investment activities
In RMB
Item Current Period Last Period
Explanation on cash paid related with investment activities
Nil
(5) Other cash received in relation to financing activities
In RMB
Item Current Period Last Period
Bill margin received 2,016,600.82
Total 2,016,600.82
Explanation on other cash received in relation to financing activities:
Nil
(6) Cash paid related with financing activities
In RMB
Item Current Period Last Period
104
Payment of bill margin 2,000,000.00
Total 0.00 2,000,000.00
Explanation on cash paid related with financing activities:
Nil
79. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
Supplementary information Current period Last Period
1． Net profit adjusted to cash flow of
-- --
operation activities:
Net profit 3,420,613.90 -1,090,458.35
Add: Assets impairment provision -170,387.85 -23,136.47
Depreciation of fixed assets, consumption of
oil assets and depreciation of productive 200,112.95 186,131.92
biology assets
Amortization of intangible assets 376,500.00 376,500.00
Loss from disposal of fixed assets, intangible
assets and other long-term assets (income is -24,936.44
listed with “-”)
Decrease of deferred income tax asset
62,439.81 -4,152.36
(increase is listed with “-”)
Decrease of inventory (increase is listed with
1,952,473.39 -693,780.13
“-”)
Decrease of operating receivable accounts
-8,239,522.04 -2,006,581.24
(increase is listed with “-”)
Increase of operating payable accounts
3,773,102.22 -5,645,780.11
(decrease is listed with “-”)
Net cash flow from operation activities 1,350,395.94 -8,901,256.74
2. Material investment and financing not
-- --
involved in cash flow
3. Net change of cash and cash equivalents: -- --
Add: Ending balance of cash equivalents 12,214,263.85 7,587,416.18
Less: Opening balance of cash equivalents 6,074,367.91 16,488,886.26
Net increased amount of cash and cash
6,139,895.94 -8,901,470.08
equivalent
105
(2) Net cash paid for obtaining subsidiary in the Period
In RMB
Amount
Including: --
Including: --
Including: --
Other explanation:
Nil
(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
Including: Cash on hand 108,773.66 89,313.66
Bank deposit available for payment
12,105,490.19 5,979,003.60
at any time
Other monetary fund available for
6,050.65
payment at any time
II. Cash equivalents 12,214,263.85 6,074,367.91
Ⅲ. Balance of cash and cash equivalent at
12,214,263.85 6,074,367.91
period-end
Other explanation:
Nil
80. Notes of changes of owners’ equity
Explain the name and adjusted amount in “Other” at end of last year:
Nil
106
81. Assets with ownership or use right restricted
In RMB
Item Ending book value Restriction reasons
Other explanation:
Nil
82. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Ending foreign currency
Item Convert rate Ending RMB balance converted
balance
Monetary fund -- --
Including: USD
EURO
HKD
Account receivable -- --
Including: USD
EURO
HKD
Long-term loans -- --
Including: USD
EURO
HKD
Other explanation:
Nil
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,
disclosed main operation place, book-keeping currency and basis for selection; if the book-keeping
currency changed, explain reasons
□Applicable √Not applicable
107
83. Hedging
Disclosed hedging items and relevant hedging instrument based on hedging’s category, disclosed qualitative and quantitative
information for the arbitrage risks:
Nil
84. Government grants
(1) Government grants
In RMB
Amount reckoned into current
Category Amount Item
gains/losses
(2) Government grants rebate
□Applicable √Not applicable
Other explanation:
Nil
85. 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
(2) Combination cost and goodwill
In RMB
108
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
2. Enterprise combine under the same control
(1) Enterprise combined under the same control in the Period
In RMB
Equity ratio Basis of Standard to Income of the Net profit of Income of the Net profit of
Combined Combination
obtained in combined determine the combined the combined combined the combined
109
party combination under the date combination party from party from party during party during
same control date period-begin period-begin the the
of of comparison comparison
combination combination period period
to the to the
combination combination
date date
Other explanation:
Nil
(2) Combination cost
In RMB
Combination cost
Explanation on contingent consideration and its changes:
Nil
Other explanation:
Nil
(3) Assets and liability of the combined party on combination date
In RMB
Combination 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
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
110
5. Other reasons for consolidation range changed
Reasons for changed on consolidation range (such as new subsidiary established, subsidiary liquidated etc.)And relevant information
In August 2019, the Company and Shenzhen Zuankinson Jewelry and Gold Co., Ltd jointly established a Shenzhen Xinsen Jewelry
and Gold Supply Chain Co., ltd. of which, the Company holds 65% equity, while 35% equity held by Shenzhen Zuankinson Jewelry
and Gold Co., Ltd, the enterprise was included in the consolidate scope since establishment.
6. Other
Nil
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 Sales of bicycles
Shenzhen Shenzhen 70.00% Investment
Industrial Co., and spare parts
Ltd.
Shenzhen Xinsen
Jewelry,
Jewelry Gold
Shenzhen Shenzhen diamonds, gold 65.00% Investment
Supply Chain
sales
Co., 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
(2) Important non-wholly-owned subsidiary
In RMB
111
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% 109,033.70 2,063,280.92
Industrial Co., Ltd.
Shenzhen Xinsen Jewelry
Gold Supply Chain Co., 35.00% 513,936.70 7,606,876.27
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 liabilities assets assets liability liabilities
assets liability assets liability
Shenzhe
n
Emmelle 15,124,7 1,291,40 16,416,2 9,538,60 9,538,60 15,468,8 1,418,41 16,887,2 10,373,0 10,373,0
0.00 0.00
Industria 98.09 9.58 07.67 4.61 4.61 11.90 5.71 27.61 70.21 70.21
l Co.,
Ltd.
Shenzhe
n Xinsen
Jewelry
24,967,8 24,969,8 3,235,92 3,235,92 8,696,93 8,698,89 1,933,35 1,933,35
Gold 1,960.98 0.00 1,960.98 0.00
93.46 54.44 2.24 2.24 5.06 6.04 4.41 4.41
Supply
Chain
Co., Ltd.
In RMB
Current Period Last Period
Cash flow Cash flow
Total Total
Subsidiary Operation from Operation from
Net profit comprehensi Net profit comprehensi
revenue operation revenue operation
ve income ve income
activity activity
Shenzhen 1,638,684.75 363,445.66 363,445.66 -2,879,621.36 13,212,224.3 -971,707.26 -971,707.26 -4,193,347.24
112
Emmelle 4
Industrial
Co., Ltd.
Shenzhen
Xinsen
25,097,387.7
Jewelry Gold 1,468,390.57 1,468,390.57 -9,359,387.83
6
Supply Chain
Co., Ltd.
Other explanation:
(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
(2) Impact on minority’s interest and owners’ equity attributable to parent company
In RMB
Other explanation
3. Equity in joint venture and associated enterprise
(1) Important joint venture or associated enterprise
Joint venture or Share-holding ratio
Main operation Accounting
associated Registered place Business nature
place Directly Indirectly treatment
enterprise
Share-holding ratio or shares enjoyed different from voting right ratio:
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:
113
(2) Main financial information of the important joint venture
In RMB
Ending balance/Current Period Opening Balance/Last Period
Other explanation
(3) Main financial information of the important associated enterprise
In RMB
Ending balance/Current Period Opening Balance/Last Period
Other explanation
(4) Financial summary for un-important joint venture or associated enterprise
In RMB
Ending balance/Current Period Opening Balance/Last Period
Joint venture： -- --
Total numbers measured by share-holding
-- --
ratio
Associated enterprise： -- --
Total numbers measured by share-holding
-- --
ratio
Other explanation
(5) Assets transfer ability has major restriction from joint venture or associated enterprise
(6) Excess losses from joint venture or associated enterprise
In RMB
Un-confirmed losses not
Joint venture or associated Cumulative un-confirmed Cumulative un-confirmed
recognized in the Period (or net
enterprise losses losses at period-end
profit enjoyed in the Period)
Other explanation
114
(7) Un-confirmed commitment with investment concerned with joint venture
(8) Contingent liability with investment concerned with joint venture or associated enterprise
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:
If the co-runs entity is the separate entity, basis of the co-runs classification
Other explanation
5. Equity in structuring entity that excluding in the consolidated financial statement
Relevant explanation
6. Other
X. Risk related with financial instrument
The major financial instruments of the Company consist of monetary fund, account receivable, other account
receivable, account payable and other account payable, etc. details of these financial instruments are disclosed in
the relevant notes. Risks relating to these financial instruments and risk management policies adopted by the
Company to minimize these risks are detailed as follows. Management of the Company manages and monitors the
risk exposures, to make sure they are under control.
1. Risk management targets and policies
The objectives of the Company’s risk management is to balance the risk and income, reduce the negative risk
impact of operating performance to the lowest level, maximize the interests of shareholders and other equity
investors. Based on these objectives, the Company has established risk management policies to identify and
analyze the risks faced by the Company, set adequate risk acceptable level and designed relevant internal control
system to monitor the level of risks. The Company regularly reviews these policies and related internal control
system to adapt to market development and change of operating activities of the Company. The major risks arising
from the Company’s financial instruments are credit risk and liquidity risk.
(1) Credit risk
Credit risk represents the risk of financial loss suffered by a party to a financial instrument due to failure of
performance obligation of another party.
Credit risk of the Company is managed by category. Credit risk mainly arises from bank deposits and trade
115
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 30
June 2020, the gearing ratio of the Company was 73.71% (31 December 2019: 81.76%)
XI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
In RMB
Ending fair value
Item
First-order Second-order Third-order Total
I. Sustaining measured by
-- -- -- --
fair value
II. Non-sustaining
-- -- -- --
measured by fair value
116
2. Recognized basis for the market price sustaining and non-persistent measured by fair value on
first-order
Nil
3. Valuation technique and qualitative and quantitative information on major parameters for the fair value
measure sustaining and non-persistent on second-order
Nil
4. Valuation technique and qualitative and quantitative information on major parameters for the fair value
measure sustaining and non-persistent on third-order
Nil
5. Adjustment information and sensitivity analysis of unobservable parameters for the fair value measure
sustaining and non-persistent on third-order
Nil
6. Sustaining items measured by fair value, as for the conversion between at all levels, reasons for
conversion and policy for conversion time point
Nil
7. Changes of valuation technique in the Period
Nil
8. Financial assets and liability not measured by fair value
Nil
9. Other
Nil
XII. Related party and related transactions
1. Parent company of the enterprise
Share-holding ratio
Voting right ratio on
Parent company Registered place Business nature Registered capital on the enterprise for
the enterprise
parent company
117
Explanation on parent company of the enterprise
The Company has no parent company so far
Ultimate controller of the Company: nil
Other explanation:
Controlling shareholder and actual controller of the Company have changed on 20 February 2017. Before changed, the first majority
shareholder of the Company was Shenzhen Guosheng Energy Investment Development Co., Ltd., actual controller was Mr. Ji Hanfei;
the Company has no actual controller and controlling shareholder after changed. Found more in the Annual Report 2016 released on
27 April 2017 and “Reply on Surveillance Attention Letter on CBC from Shenzhen Stock Exchange” released on 26 May 2017
2. Subsidiary of the Enterprise
Found more in Note IX-1
3. Associated enterprise and joint venture
Found more in Note IX-3
Other associated enterprise and joint venture that have related transaction with the Company in the Period or occurred in previous
period
Joint venture or associated enterprise Relationship with the Company
Other explanation
4. Other related party
Other related party Relationship with the Company
Shenzhen Guosheng Energy Investment Development Co., Ltd. The first majority shareholder
Shenzhen Zuanjinsen Jewelry Co., Ltd. Subsidiary Xinsen Jewelry Shareholder
Fuzhou Zuanjinsen Jewelry Co., Ltd. Subsidiary Xinsen Jewelry Shareholder
Other explanation
11.52 percent shares of the Company are held by Shenzhen Guosheng Energy Investment Development Co., Ltd.
Shenzhen Zuankinson Jewelry and Gold Co., Ltd. holds 35% equity of Shenzhen Xinsen Jewelry and Gold Supply Chain Co., Ltd.,
a subsidiary of the company.
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
Transaction Approved transaction Whether more than
Related party Current Period Last Period
content amount the transaction amount
118
Goods sold/labor service providing
In RMB
Related party Transaction content Current Period Last Period
Explanation on goods purchasing, labor service providing and receiving
Nil
(2) Related trusteeship/contract and delegated administration/outsourcing
Trusteeship/contract
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
Assets type Starting date Maturity date
contract-out party contractor fee/outsourcing fee recognized in
fee the Period
Explanation on related administration/outsourcing
Nil
(3) Related lease
As a lessor for the Company:
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
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
119
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 Due date Note
Borrowing
Lending
(6) Assets transfer and debt restructuring of related party
In RMB
Related party Transaction content Current Period Last Period
(7) Remuneration of key manager
In RMB
Item Current Period Last Period
Remuneration of key manager 728,400.00 818,870.00
(8) Other related transactions
The Company disclosed the "Announcement on the Estimated Daily Related Transactions" (Announcement No.: 2019-022) on
December 17, 2019. According to the needs of business development, Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., a
holding subsidiary of the Company, planned to purchase raw materials and sell goods to Shenzhen Zuankinson Jewelry and Gold
Co., Ltd., it was estimated that the total amount of daily related transactions in the next 12 months would not exceed 10 million yuan
(a single transaction amount would not exceed 3 million yuan). The total amount of related transactions between the company's
subsidiary and Shenzhen Zuankinson Jewelry and Gold Co., Ltd. in 2019 was 2.75 million yuan, and there were no related
transactions during the reporting period. As of the reporting period, the total amount of the related transactions quota was 2.75
million yuan, which did not exceed the announced quota.
120
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 Book Ending balance Book Opening Balance
Shenzhen Guosheng Energy
Other account payable Investment Development Co., 6,500,000.00 6,500,000.00
Ltd.
Fuzhou Zuanjinsen Jewelry
Other account payable 2,000,000.00 0
Co., 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
121
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
122
XVI. Other important events
1. Previous accounting errors collection
(1) Retrospective restatement
In RMB
Impact items of statement
Correction content Treatment procedures Cumulative impacted number
during a comparison
(2) Prospective application
Reasons for prospective application
Correction content Approval procedures
adopted
2. Debt restructuring
Nil
3. Assets replacement
(1) Non-monetary assets change
Nil
(2) Other assets replacement
Nil
4. Pension plan
Nil
5. Discontinued operations
In RMB
Discontinued
operations profit
Income tax
Item Revenue Expenses Total Profit Net profit attributable to
expenses
owners of parent
company
Other explanation
Nil
123
6. Segment
(1) Recognition basis and accounting policy for reportable segment
The reporting division of the company is a business unit that provides different products or services. Since various businesses require
different technologies and market strategies, the company respectively and independently manages the production and operation
activities of each reporting division and evaluates its operating results separately to determine the allocation of resources to it and
evaluate its performance. The company has 2 reporting divisions, namely:
—Group company business division.
—Jewelry gold business division.
Assets are allocated according to the operation of the divisions and the location of the assets, and liabilities are allocated according to
the operation of the divisions. The company has established a special jewelry gold business subsidiary for this purpose.
Accounting of income, costs, and expenses
(2) Financial information for reportable segment
In RMB
Bicycle lithium battery
Jewelry Gold Business
Item materials and other Offset between segments Total
Division
business segments
Main business income 25,097,387.76 17,558,967.45 42,656,355.21
Main business cost 22,650,522.20 13,450,243.45 36,100,765.65
The total profit 1,575,989.52 2,014,663.14 3,590,652.66
Income tax expense 107,598.95 62,439.81 170,038.76
Net profit 1,468,390.57 1,952,223.33 3,420,613.90
Total assets 24,969,854.44 74,871,717.41 25,347,765.20 74,493,806.65
Total liabilities 3,235,922.24 64,008,072.89 12,337,385.47 54,906,609.66
Shareholders' equity
21,733,932.20 10,863,644.52 13,010,379.73 19,587,196.99
Total
(3) The Company has no reportable segments, or unable to disclose total assets and total liability for
reportable segments, explain reasons
Nil
(4) Other explanation
Nil
124
7. Major transaction and events makes influence on investor’s decision
Nil
8. Other
Nil
XVII. Principle notes of financial statements of parent company
1. Account receivable
(1) 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
Account receivable
with bad debt 3,542,60 1,890,78 1,651,822 6,975,081 2,092,524 4,882,557.2
11.43% 53.37% 19.92% 30.00%
provision accrual by 3.75 1.13 .62 .75 .53 2
single basis
Including:
Accounts with single
significant amount
5,035,603 1,510,681 3,524,922.6
but with bad debts 14.38% 30.00%
.75 .13 2
provision accrued
individually
Accounts with single
minor amount but
3,542,60 1,890,78 1,651,822 1,939,478 581,843.4 1,357,634.6
with bad debts 11.43% 53.37% 5.54% 30.00%
3.75 1.13 .62 .00 0 0
provision accrued
individually
Account receivable
with bad debt 27,447,7 82,343.2 27,365,41 28,045,11 27,960,979.
88.57% 0.30% 80.08% 84,135.34 0.30%
provision accrual by 53.75 6 0.49 4.82 48
portfolio
Including:
Aging analysis 27,447,7 82,343.2 27,365,41 28,045,11 27,960,979.
88.57% 0.30% 80.08% 84,135.34 0.30%
method 53.75 6 0.49 4.82 48
125
30,990,3 1,973,12 29,017,23 35,020,19 2,176,659 32,843,536.
Total 100.00% 6.37% 100.00% 6.22%
57.50 4.39 3.11 6.57 .87 70
Bad debt provision accrual on single basis: The individual amount is not significant
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Guangdong Xinlingjia Expected to be difficult
1,149,000.00 380,100.00 33.08%
New Energy Co., Ltd. to recover
Shenzhen Jiahaosong Expected to be difficult
2,393,603.75 1,510,681.13 63.11%
Technology Co., Ltd. to recover
Total 3,542,603.75 1,890,781.13 -- --
Bad debt provision accrual on single basis:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Bad debt provision accrual on portfolio: Aging analysis
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio
Within one year (one year
23,493,804.70 70,481.41 0.30%
included)
1-2 years (two years included) 3,953,949.05 11,861.85 0.30%
Total 27,447,753.75 82,343.26 --
Explanation on portfolio basis:
Nil
Bad debt provision accrual on portfolio:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio
Explanation on portfolio basis:
If the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses, please
refer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
By account age
In RMB
Account age Ending balance
126
Within one year (one year included) 23,493,804.70
Within one year 23,493,804.70
1-2 years 7,496,552.80
Total 30,990,357.50
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Category Opening Balance Collected or Ending balance
Accrual Charge-off Other
reversal
Bad debt
provision for
2,176,659.87 203,535.48 1,973,124.39
accounts
receivable
Total 2,176,659.87 203,535.48 1,973,124.39
Including important amount of bad debt provision collected or reversal in the period:
In RMB
Enterprise Amount collected or reversal Collection way
Shenzhen Boyineng Technology Co., Ltd. 201,743.40 Bank debt collection
Total 201,743.40 --
At the end of the previous year, for those estimated to be difficult to recover, 30% bad debt provision was accrued based on the
insignificant single amount and a separate provision for bad debts. During this year, the company collected payment for several times
and by various methods. After the impairment test, the possibility of recoverable was greatly increased, so the provision for bad debts
that had been accrued was reversed.
(3) Account receivables actually charge-off during the reporting period
In RMB
Item Amount charge-off
Including major account receivables charge-off:
In RMB
Amount cause by
Procedure for
Enterprise Nature Amount charge-off Causes of charge-off related transactions
charge-off
or not (Y/N)
Explanation on account receivable charge-off:
127
(4) Top five account receivables collected by arrears party at ending balance
In RMB
Ending balance of accounts Proportion of total closing Ending balance of bad bet
Name
receivable balance of accounts receivable provision
Guangshui Jiaxu Energy
12,758,950.90 41.17% 38,276.85
Technology Co., Ltd.
Zhengzhou Guiguan Tech.
5,218,756.80 16.84% 15,656.27
Trade. Co., Ltd
Shenzhen Weiterui New Energy
3,424,471.05 11.05% 10,273.41
Technology Co., Ltd.
Jinan Yuxintai Sales Co., Ltd. 2,935,693.00 9.47% 8,807.08
Shenzhen Jiahaosong
2,393,603.75 7.73% 1,510,681.13
Technology Co., Ltd.
Total 26,731,475.50 86.26%
(5) Account receivable derecognition due to transfer of financial assets
(6) Assets and liability resulted by account receivable transfer and continuous involvement
Other explanation：
2. Other account receivable
In RMB
Item Ending balance Opening Balance
Other account receivable 124,488.41 485,062.44
Total 124,488.41 485,062.44
(1) Interest receivable
1) Category
In RMB
Item Ending balance Opening Balance
2) Important overdue interest
Impairment (Y/N) and
Borrower Ending balance Overdue time Overdue reason
judgment basis
128
Total 0.00 -- -- --
Other explanation：
Nil
3) Accrual of bad debt provision
□Applicable √Not applicable
(2) Dividend receivable
1) Category
In RMB
Item (or invested company) Ending balance Opening Balance
2) Important dividend receivable with over one year aged
In RMB
Item (or invested Causes of failure for Impairment (Y/N) and
Ending balance Account age
company) collection judgment basis
Total 0.00 -- -- --
3) Accrual of bad debt provision
□Applicable √Not applicable
Other explanation：
(3) Other account receivable
1) By nature
In RMB
Account nature Book Ending balance Book Opening Balance
Deposit or margin 71,163.00 484,822.00
Payment for equipment 11,400.00 11,400.00
Reserve 54,000.00 2,000.00
Total 136,563.00 498,222.00
2) Accrual of bad debt provision
In RMB
129
Phase I Phase II Phase III
Expected credit Expected credit losses for Expected credit losses for
Bad debt provision Total
losses over next 12 the entire duration (without the entire duration (with
months credit impairment occurred) credit impairment occurred)
Balance on January 1,
13,159.56 13,159.56
2020
Balance on January 1,
2020 in the current —— —— —— ——
period
Current reversal 1,084.97 1,084.97
Balance on June 30, 2020 12,074.59 12,074.59
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
By account age
In RMB
Account age Ending balance
Within one year (one year included) 124,663.00
Within one year 124,663.00
2-3 years 200.00
Over 3 years 11,700.00
3-4 years 11,700.00
Total 136,563.00
3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Category Opening Balance Collected or Ending balance
Accrual Write off Other
reversal
Bad debt
provision for 13,159.56 1,084.97 12,074.59
other receivables
Total 13,159.56 0.00 1,084.97 0.00 0.00 12,074.59
Nil
Important amount of bad debt provision switch-back or collection in the period:
In RMB
Enterprise Amount switch-back or collection Collection way
130
Total 0.00 --
Nil
4) Other account receivables actually charge-off during the reporting period
In RMB
Item Amount charge-off
Including major other account receivables charge-off:
In RMB
Amount cause by
Procedure for
Enterprise Nature Amount charge-off Causes of charge-off related transactions
charge-off
or not (Y/N)
Total -- 0.00 -- -- --
Other Explanation on account receivable charge-off
Nil
5) Top 5 other account receivable collected by arrears party at ending balance
In RMB
Proportion in total
other account Ending balance of
Enterprise Nature Ending balance Account age
receivables at bad debt provision
period-end
Shenye Pengji
Deposit or margin 60,222.00 Within 1 year 44.10% 180.67
(Group) Co., Ltd.
Zeng Yuehua Reserve 20,000.00 Within 1 year 14.65% 60.00
Shenzhen Hongkang
Instrument Equipment 11,400.00 3-4 years 8.35% 11,400.00
Technology Co., Ltd.
Shenzhen Pengji
Property Management Deposit or margin 10,441.00 Within 1 year 7.65% 31.32
Service Co., Ltd.
Lin Weiwen Reserve 10,000.00 Within 1 year 7.32% 30.00
Total -- 112,063.00 -- 82.06% 11,701.99
6) Account receivable with government grants involved
In RMB
Time, amount and basis
Enterprise Government grants Ending balance Ending account age
of amount collection
131
estimated
Nil
7) Other account receivable derecognition due to financial assets transfer
Nil
8) Assets and liability resulted by other account receivable transfer and continuous involvement
Nil
Other explanation：
Nil
3. Long-term equity investment
In RMB
Ending balance Opening Balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment for
14,400,000.00 1,389,620.27 13,010,379.73 5,625,000.00 1,389,620.27 4,235,379.73
subsidiary
Total 14,400,000.00 1,389,620.27 13,010,379.73 5,625,000.00 1,389,620.27 4,235,379.73
(1) Investment for subsidiary
In RMB
Changes in the period (+, -)
Opening Ending balance
The invested Accrual of Ending balance
Balance (Book Additional Capital of impairment
entity impairment Other (Book value)
value) investment reduction provision
provision
Shenzhen
Emmelle
10,379.73 10,379.73 1,389,620.27
Industrial Co.,
Ltd.
Shenzhen
Xinsen Jewelry
4,225,000.00 8,775,000.00 13,000,000.00
Gold Supply
Chain Co., Ltd.
Total 4,235,379.73 8,775,000.00 0.00 0.00 0.00 13,010,379.73 1,389,620.27
132
(2) Investment for associates and joint venture
In RMB
Changes in the period (+, -)
Ending
Other Cash
Opening Investme Accrual Ending balance
Additiona comprehe dividend
Funded Balance nt gains Other of balance of
l Capital nsive or profit
enterprise (Book recognize equity impairme Other (Book impairme
investmen reduction income announce
value) d under change nt value) nt
t adjustmen d to
equity provision provision
t issued
I. Joint venture
Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
II. Associated enterprise
Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(3) Other explanation
Nil
4. Operation revenue and operation cost
In RMB
Current Period Last Period
Item
Revenue Cost Revenue Cost
Main business 9,271,106.93 8,988,379.05 21,426,406.12 20,428,856.90
Other business 6,679,717.49 3,645,817.35 3,977,972.72 3,241,165.72
Total 15,950,824.42 12,634,196.40 25,404,378.84 23,670,022.62
Information relating to revenue:
In RMB
Category Branch 1 Branch 2 Total
Including:
Including:
Including:
Including:
Including:
Including:
Including:
133
Information relating to performance obligations:
Nil
Information related to the transaction price apportioned to the remaining performance obligations:
The amount of income corresponding to the performance obligations that have been signed at the end of this reporting period but
have not yet been fulfilled or have not done with fulfillment is 0.00 yuan, among them, yuan of revenue is expected to be recognized
in YEAR, yuan of revenue is expected to be recognized in YEAR, and yuan of revenue is expected to be recognized in YEAR.
Other explanation：
Nil
5. Investment income
In RMB
Item Current Period Last Period
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
24,936.44
non-current asset
Switch back of the impairment provision for
account receivable with impairment test on 201,743.40
single basis and contract assets
Other non-operating income and expenditure
742,112.11
except for the aforementioned items
Less: Impact on income tax 242,197.99
Impact on minority shareholders’ equity 126,858.03
Total 599,735.93 --
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
134
2. ROE and EPS
Earnings per share
Profits during report period Weighted average ROE Basic earnings per share Diluted earnings per
(RMB/Share) share (RMB/Share)
Net profits belong to common stock
32.84% 0.0051 0.0051
stockholders of the Company
Net profits belong to common stock
stockholders of the Company after
25.80% 0.0040 0.0040
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
135
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. Originals documents of the Company and manuscripts of public notices that disclosed in the newspaper
designated by CSRC in the report period.
3. English version of the Semi-Annual Report 2020.
Board of Directors of
Shenzhen China Bicycle Company (Holdings) Limited
27 August 2020
136
