Shenzhen China Bicycle Company (Holdings) Limited
Annual Report of 2020
April 2021
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Section I. Important Notice, Contents and Interpretation
Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of Shenzhen China Bicycle Company (Holdings) Limited (hereinafter
referred to as the Company) hereby confirm that there are no any fictitious
statements, misleading statements, or important omissions carried in this report,
and shall take all responsibilities, individual and/or joint, for the reality,
accuracy and completion of the whole contents.
Li Hai, Principal of the Company, Sun Longlong, person in charge of accounting
works and Zhong Xiaojin, person in charge of accounting organ (accounting
principal) hereby confirm that the Financial Report of 2020 Annual Report is
authentic, accurate and complete.
All directors are attended the Board Meeting for report deliberation.
The Company plans not to distribute cash dividends, not to send bonus shares,
and no reserve capitalizing.
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Content
Section I Important Notice, Content and Interpretation ........................................ 2
Section II Company Profile and Main Financial Indexes ....................................... 5
Section III Summary of Company Business ........................................................... 10
Section IV Discussion and Analysis of the Operation ............................................ 16
Section V Important Events ..................................................................................... 33
Section VI Changes in shares and shareholders ..................................................... 44
Section VII Preferred Stock ...................................................................................... 53
Section VIII Convertible Bonds...............................................................................54
Section IXParticulars about Directors, Supervisors and Senior Executives ....... 55
Section X Corporate Governance ............................................................................ 63
Section XI Corporate Bond......................................................................................69
Section XII Financial report ..................................................................................... 70
Section XIII Documents available for reference .................................................. 220
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Interpretation
Items Refers to Contents
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Section II. Company Profile and Main Financial Indexes
I. Company information
Short form of the stock *ST Zhonghua –A, *ST Zhonghua –B Code for share 000017, 200017
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in
深圳中华自行车(集团)股份有限公司
Chinese)
Short form of the Company
深中华
(in Chinese)
Foreign name of the Company
Shenzhen China Bicycle Company (Holdings) Limited
(if applicable)
Short form of foreign name of
CBC
the Company (if applicable)
Legal representative Li Hai
Registrations add. No. 3008, Buxin Rd., Shenzhen
Code for registrations add 518019
Offices add. 501 Zhongxin Technology Building, No.31 Bagua Rd., Bagualing, Futian District, Shenzhen
Codes for office add. 518029
Company’s Internet Web Site www.cbc.com.cn
E-mail dmc@szcbc.com
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Sun Longlong Yu Xiaomin, Zhong Xiaojin
501 Zhongxin Technology Building, No.31 501 Zhongxin Technology Building, No.31
Contact add. Bagua Rd., Bagualing, Futian District, Bagua Rd., Bagualing, Futian District,
Shenzhen Shenzhen
Tel. 0755-25516998,28181666 0755-25516998,28181666
Fax. 0755-28181009 0755-28181009
E-mail dmc@szcbc.com dmc@szcbc.com
III. Information disclosure and preparation place
Newspaper appointed for information disclosure Securities Times; Hong Kong Commercial Daily
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Website for annual report publish appointed by CSRC Juchao Website (www.cninfo.com.cn)
501 Zhongxin Technology Building, No.31 Bagua Rd., Bagualing, Futian
Preparation place for annual report
District, Shenzhen
IV. Registration changes of the Company
Organization code 914403006188304524
Changes of main business since listing (if Main products or services provided at present: Emmelle bicycle, electric bicycle,
applicable) lithium battery materials and gold jewelry.
1. In March 1992, the Stock of the Company was listed in Shenzhen Stock Exchange,
and 23.28% equity of the Company was held by Shenzhen Lionda Holding Co., Ltd.
and Hong Kong Dahuan Bicycle Co., Ltd respectively. 2. In March 2002, legal shares
13.58% A-stock of the Company was obtained by China Huarong Asset Management
Co., Ltd. through court auction, and became the first majority shareholder of the
Company. 3. On 13 November 2006, the 65,098,412 legal shears of CBC held by
Huarong Company was acquired by Shenzhen Guosheng Energy Investment
Development Co., Ltd. via the “Equity Transfer Agreement” signed, and first majority
of the Company comes to Guosheng Energy. Guosheng Energy is the wholly-owned
subsidiary of National Investment, actual controller was Zhang Yanfeng. 4. In January
Previous changes for controlling
2011, controlling shareholder of Shenzhen Guosheng Energy Investment Development
shareholders (if applicable)
Co., Ltd.—Shenzhen National Investment Development Co., Ltd. entered into equity
transfer agreement with Mr. Ji Hanfei, 100% equity of Guosheng Energy was transfer
to Mr. Ji Hanfei with price of 70 million. Shenzhen Guosheng Energy Investment
Development Co., Ltd. Shenzhen Guosheng Energy Investment Development Co., Ltd.
holds 63,508,747 A-stock of the Company with 11.52% in total share capital of the
Company. 5. On February 20, 2017, Ji Hanfei and Guosheng Energy made an
“Explanation” to abandon the actual control of the Company, after Ji Hanfei made the
declaration to abandon the actual control of the Company, the investment from CBC by
Mr. Ji changed to general investment instead of actual controlling, and the actual
controller of the Company changed from Ji Hanfei to no actual controller.
V. Other relevant information
CPA engaged by the Company
Name of CPA Baker Tilly China Certified Public Accountants (LLP)
Offices add. for CPA A-1 and A-5 of No.68 Building, No.19 Chegongzhuang West Road, Haidian District Beijing
Signing Accountants Chen Zhigang, Zhang Lei
Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
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VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□ Yes √ No
Changes over last year
2020 2019 2018
(+,-)
Operating income (RMB) 117,857,480.17 76,022,687.75 55.03% 119,906,950.34
Net profit attributable to
shareholders of the listed company 3,785,834.68 -7,186,905.64 155.44% -1,591,968.91
(RMB)
Net profit attributable to
shareholders of the listed company
3,071,751.90 -7,370,499.83 143.29% -1,837,914.46
after deducting non-recurring gains
and losses (RMB)
Net cash flow arising from
3,942,228.96 -13,791,941.34 128.58% -9,479,474.16
operating activities (RMB)
Basic earnings per share
0.0069 -0.0130 155.38% -0.0029
(RMB/Share)
Diluted earnings per share
0.0069 -0.0130 155.38% -0.0029
(RMB/Share)
Weighted average ROE 42.01% -53.69% 95.70% -10.54%
Changes over end of
Year-end of 2020 Year-end of 2019 Year-end of 2018
last year (+,-)
Total assets (RMB) 91,742,769.99 62,733,602.58 46.24% 73,242,960.17
Net assets attributable to
shareholder of listed company 10,905,230.98 7,119,396.30 53.18% 14,306,301.94
(RMB)
The lower of the company’s net profit before or after deduction of non-recurring profit (gain)/loss for the last three financial years is
negative, and the audit report for the latest year indicates that there is uncertainty about the company’s ability to continue as a going
concern
□Yes √No
The lower of the net profit before or after deduction of non-recurring profit (gain)/loss is negative
□Yes √No
VII. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
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The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.
VIII. Quarterly main financial index
In RMB
Q1 Q2 Q3 Q4
Operating income 7,434,449.73 35,221,905.48 40,216,980.94 34,984,144.02
Net profit attributable to
-591,902.33 3,389,545.83 2,465,571.65 -1,477,380.47
shareholders of the listed company
Net profit attributable to
shareholders of the listed company
-692,274.89 2,890,182.46 2,379,318.61 -1,505,474.28
after deducting non-recurring gains
and losses
Net cash flow arising from
459,865.86 890,530.08 1,866,001.79 725,831.23
operating activities
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial
index disclosed in the company’s quarterly report and semi-annual report
□Yes √ No
IX. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMB
Item 2020 2019 2018 Note
Gains/losses from the disposal of
non-current asset (including the write-off 24,936.44 -85,730.05
that accrued for impairment of assets)
Switch-back of provision of impairment of
account receivable and contractual assets
219,118.00
which are treated with separate depreciation
test
Other non-operating income and expenditure
754,370.46 194,691.02 261,141.96
except for the aforementioned items
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Less: Impact on income tax 0.18 48,672.76 98,632.48
Impact on minority shareholders’
65,223.94 -37,575.93 49,951.88
equity (post-tax)
Total 714,082.78 183,594.19 245,945.55 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss
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Section III. Summary of Company Business
I. Main businesses of the company in the reporting period
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”
During the reporting period, the company’s main businesses were bicycles and lithium battery materials business, and jewelry gold
business. (1) Bicycles and lithium battery materials business included the production, assembly, procurement, and sales of bicycles
and electric bicycles, and purchase, sales, and commissioned processing of lithium battery materials, etc.; (2) The gold jewelry
business mainly provided supply chain management and services in the vertical field of gold jewelry. The company connected with
downstream gold jewelry brands, purchased gold and diamonds according to their product needs, and then commissioned gold
jewelry processing plants for processing, made product certification for the processed finished products after passing the inspection,
and delivered them to downstream customers. Through the integration of upstream supplier resources and downstream customer
resources, the turnover rate of gold jewelry products in the upstream and downstream was improved, the cost of circulation links was
reduced, and the overall competitive advantage of the upstream and downstream was formed.
Since the company’s jewelry-related operating revenue in 2020 accounted for more than 30% of the company’s audited revenue for
the most recent fiscal year, the company must comply with the disclosure requirements of "Shenzhen Stock Exchange Industry
Information Disclosure Guidelines No. 11 - Listed Companies Engaged in Jewelry Related Business", the specific disclosure
requirements are as follows:
1. The company's main business models during the reporting period
1.1 Procurement model
The upstream raw material suppliers of the company’s gold jewelry supply chain business were mainly diamonds and gold, of which
the diamond suppliers were mainly source producers or wholesalers from India or Hong Kong, and domestic mature diamond
wholesalers (generally members of the Shanghai Diamond Exchange) ), gold was mainly purchased from the Shanghai Gold
Exchange through the company's membership qualifications at Shanghai Gold Exchange. The company has established professional
procurement department and team to be responsible for the procurement of diamond products and jewellery. The specific
procurement models varied according to customer needs.
1.2. Production model
By integrating upstream commissioned processing plants, the company outsourced the production of products ordered by customers
to professional jewelry manufacturers to give full play to their professional and scale effect. In view of the current situation and
characteristics of domestic jewelry processing enterprises, the company established a set of effective supplier management
mechanisms and evaluation standards to achieve a benign interaction between the production system of outsourced manufacturers
and the company's business development.
1.3 Sales model
According to the annual order planning and regular procurement requirements of brand retailers, the company provided B-end
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customers with various forms of supply chain management services such as spot procurement, order production, and customized
development, so as to minimize product inventory and improve the supply chain effectiveness for customers.
Spot procurement: Organized the goods through the integration of upstream factories and exhibition halls and suppliers' product
styles and spot resources, and provided corresponding product structure according to the customer's brand characteristics and
terminal market needs;
Order production: Customers placed orders to the company according to their own needs, and the company purchased raw materials
and subcontracted processing to form finished products and sell them to customers;
Customized development: According to the characteristics of their own brands and future development needs, customers entrusted
the company to develop and design the product styles, and produce finished products to sell to customers.
2. The development trend and competitive landscape of the industry in which the company is located
Regarding the gold and jewelry industry, in the context of our country's sustained and rapid economic growth and rising per capital
income, the consumption of jewelry not only meets the demand for value preservation, but also is the need for people to pursue
fashion and show their individuality. At present, our country is one of the world's largest, most important, and fastest-growing
jewelry markets. The consumption of many jewelry categories is in the front rank of the world, among them, the sales of gold, silver,
platinum, jade, pearls and other products rank first in the world. Our country's jewellery gold industry market has formed a tripartite
pattern of domestic, Hong Kong and foreign brands, and the market share continues to concentrate. At present, our country's per
capital jewelry consumption is still far below that of developed countries, and our country's jewelry gold consumption market still
has a lot of room for improvement, but the market is highly competitive. In August 2019, the company invested in the establishment
of a holding subsidiary Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., and began to get involved in the jewelry gold supply
chain business.
2.1. Industry development trend
(1) The market scale is increasing year by year, and consumers in third- and fourth-tier cities have become a potential force in
jewelry consumption
The market scale of our country's jewelry industry has been increasing year by year, and the industry growth rate has shown a
fluctuation trend. From 2014 to 2019, the market size of our country's jewelry industry increased from 567.4 billion yuan to 750.3
billion yuan. Since 2017, the growth rate of our country's jewelry industry has also increased year by year. In 2019, the growth rate of
the jewelry industry reached 8%. According to Frost&Sullivan data, the growth rate of the jewelry market in third-tier and lower-tier
cities from 2010 to 2015 reached up to 45.3%, far exceeding the level of 31.9% in first-tier cities. According to DeBeers data, in
2016, our country's total diamond consumption/total ratio in second-tier cities accounted for 37%/30%; the total diamond
consumption/total ratio in third-tier cities accounted for 37%/43%, both exceeding the level of first-tier cities. In the future, third- and
fourth-tier cities will have a vast market space and show huge growth potential, and the third- and fourth-tier cities will become the
main market for the growth of jewelry companies in the future. The layout of the third- and fourth-tier jewelry terminal channels has
become an important strategic choice for jewelry companies to broaden their performance territory, expand their brand influence, and
enhance their company strength.
(2) The gold and jewellery industry is in a mature stage, and there is still much room for improvement in domestic per capita
consumption
Observing from the growth rate of the industry scale, the global and domestic gold and jewelry industries are already in a period of
obvious maturity. According to Euromonitor data, the global gold and jewelry industry scale in 2019 was US$352.5 billion/+0.6%,
with a 5-year CAGR of 2.5%; during the same period, the domestic gold jewelry industry was US$109.7 billion, with a 5-year
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CAGR of 4.7% (Affected by the epidemic in 2020, the scale of the industry has declined significantly, here is the calculation selected
from 2014-2019). The scale of the global and domestic gold and jewelry industry is still growing, but the growth center has moved
down significantly, and the industry is already in an obviously maturity period.
Mainland China has become the world’s largest regional market for jewelry consumption, according to Euromonitor data, the scale of
jewelry consumption in Mainland China reached US$109.7 billion in 2019, making it the world’s largest regional market, with the
United States and India respectively accounting for US$73.1 billion/69.1 billion U.S. dollars came next. However, from the
perspective of per capital jewelry consumption, the level in mainland China is still significantly lower. In 2019, the per capita jewelry
consumption in mainland China was 73.4 US dollars, while the top three Hong Kong, China, the United States, and Canada were
785.9/222.6/163.6 US dollars respectively. The per capital consumption in Hong Kong, China reflects the ceiling that Chinese people
who love jewelry can reach when their income is relatively high. If this is used as a time comparison, there is still a lot of room for
improvement in per capital jewelry consumption in mainland China. From 2011 to 2019, the per capital consumption of jewellery in
mainland China increased from US$44 to US$73.4, with a CAGR of 6.6% (Affected by the epidemic in 2020, per capital
consumption has declined significantly, here is the calculation selected from 2014-2019). With the increase in the level of living
income and the penetration of jewelry consumption concepts, there is still ample room for the future growth of the jewelry consumer
market in mainland China.
(3) Consumers learn about jewelry brands and products online, forming online and offline linkages
The Internet era has provided a more convenient and more extensive way of sharing information, which has guided consumers' needs
and choices. Jewelry brand companies provide customers with consumer strategies through major new media sharing platforms at
home and abroad, such as Xiaohongshu, Instagram, Tik Tok, etc., so as to create consumer demand and realize consumer guidance.
Realizing the effective combination of online and offline through information technology makes it easier for consumers to
understand product information, share product experience, and have easy and convenient shopping. According to Taobao live
broadcast data, in 2018, jewellery ranked first in the industry with the highest turnover driven by live broadcasts. The development of
sharing platforms and e-commerce platforms has changed the consumption habits of consumers, especially the younger generation.
Consumers can more easily understand product features and share user experience online, which has become an important trend in
product promotion and future sales.
(4) Brand and design capabilities will become the new growth engine of the jewelry industry
As millennials gradually become an important force in the consumer market, changing consumer concepts are quietly affecting the
trend of the jewelry market, and the consumer preferences of the new generation of consumer subjects are leading the market trend.
Compared with traditional consumers, emerging consumer groups pay more attention to the design, craftsmanship, style and brand
value of jewellery products, hoping to meet their needs to show their taste and personality. The daily consumption demand of such
consumers for self-wearing and decoration and self-rewarding has increased. The demand for jewelry is not limited to major festivals
or wedding celebrations, the younger generation prefers to use jewelry for self-rewarding, expressing love, or designing instead of
whether it is full gold or not, consumer behavior tends to be more routine, which effectively increases the repurchase rate of jewelry
products. By focusing on improving the decorative value of products, satisfying consumers' needs for aesthetic and individual
expression, and seeking higher brand premiums and design premiums, branding and design are expected to bring new growth
momentum to the jewelry industry.
(5) Supply chain management will become an important operating method for jewelry companies
From the perspective of the supply chain of the jewelry industry, it mainly involves raw material mining, processing and smelting,
rough processing, jewelry making, warehousing, distribution and sales. In recent years, the division of labor in the jewelry industry
has deepened and market competition has become increasingly fierce. The premiums for design and development, marketing
networks and after-sales services have continued to increase, and more and more profits have been concentrated in the terminal.
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Many companies optimize their supply chain by outsourcing production links with low gross profit margin and large investment, so
as to achieve the purpose of shortening the cash turnover time and improving the overall profitability. Supply chain management has
become an important means for jewellery companies to improve their operational capabilities.
2.2. The company's competitive advantages in the jewelry and gold business
(1) High-quality upstream supplier system
At present, the company has established relatively stable cooperative relationships with major domestic and foreign diamond
suppliers and processors, and has advantages in raw material procurement costs, order production cycles and product quality control,
and can continuously reduce supply chain costs and operational efficiency.
(2) Diversified downstream market channels and customer resources
The company is currently actively expanding its gold jewellery customers. In addition to clear order customers, it is currently
negotiating business cooperation with a number of domestic jewellery brands. The above-mentioned customers include three types of
customers, of which type A customers are well-known brand customers in the country, with more than 500 retail stores, type B
customers are small and medium/regional/segmented brands, with 300-500 retail stores; type C customers are small and medium
brands, with 50-100 retail stores.
(3) Improve the industrial chain of production design
The company has a one-stop industrial chain docking module of design, production, processing, testing, and wholesale. Brand
owners can rely on our jewelry processing resource advantages and hand over lower value-added links such as manufacturing and
distribution to the company, thus focus on the brand operation and sales section with higher added value. The outsourcing of
production and design can improve the homogeneity of gold jewelry products.
(4) Closed-loop business process and risk control system
The company has formulated strict business internal control processes such as supplier access standards, customer evaluation systems,
full-process order tracking systems, and purchase price comparison systems, achieved the three-flow closed-loop control of capital
flow and information flow and logistics through the integrated service platform of the supply chain system and the integrated
solutions to funds management, and realized multi-level risk control.
In the bicycle and lithium battery materials industry, as a traditional manufacturing industry, the bicycle industry continues the
dilemma of rising labor costs, manufacturing costs, capital costs, and material costs. The implementation of the new national
standards for safety technical specifications of electric bicycle in April 2019 accelerated the reshuffle of the industry and formed a
new round of industry shocks. In addition, on the basis of the violent shock of shared bicycles with capital advantages on the bicycle
industry and upstream supply chain operations in the past few years, the aftershocks continue to impact the recovery of the industry
due to the lack of profit model and capital chain problems. At the same time, the bicycle industry as a traditional manufacturing field
has also ushered in an important opportunity to accelerate transformation and upgrading under the guidance of the "Made in China
2025" strategy of strengthening the country under the guidance of the basic policy of "innovation-driven, quality-first, green
development, structural optimization, and talent-oriented", ushered in the development opportunities for the implementation of the
new national standards for electric bicycles, and faced important opportunities and challenges of e-commerce development on
channel impact, channel integration and Internet+. Our country is the world's largest country in the production and sales of electric
bicycles. After years of development, electric bicycles have gradually become an important means of transportation for consumers'
daily short-distance trips. At present, there are about 200 million vehicles in the whole society. Structural body, motor, power battery,
and control system, as the core components of electric bicycles, Shenzhen China Bicycle has closely followed up and studied their
technological development, application development and commercial value for a long time, and determined the list of qualified
suppliers for core components year by year. As one of the core components of electric bicycle, lead-acid batteries have been mainly
used as the power batteries in the past ten or twenty years. With the development and popularization of new energy technologies and
new energy materials, it is expected that they will be replaced by lithium batteries on a large scale in the future. The implementation
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of the new national standards for safety technical specifications of electric bicycle has comprehensively improved the safety
performance of electric bicycles, adjusted and improved technical indicators such as speed limit, vehicle quality, and pedaling ability.
The new standards that are close to the people's livelihood and serve the people's livelihood have increased the application space of
lithium battery energy storage, and lithium battery electric bicycles will usher in a new stage of development.
II. Major changes in main assets
1. Major changes in main assets
Major assets Note of major changes
Intangible assets Amortization ends for intangible assets in the Period
Monetary fund The cooperation deposit and advance rent received from the Zhonghua Garden (Phase II)
Account receivable Trade receivables increased from jewelry and gold business
2. Main overseas assets
□ Applicable √ Not applicable
III. Core Competitiveness Analysis
Despite the fierce market competition in the bicycle industry as a conventional industry, the increased awareness of green commuting,
leisure and exercises as a result of the development of China’s social economy and the change of people’s living concept creates
structural development opportunity for the bicycle industry. The Company will continue to do better in various aspects of operation
such as market development, product development, quality management and sales of e-commerce, extended and expansion the
application of upstream & downstream industry for the industrial chain step by step, so as to maintain and improve the Company’s
ability to continue as a going concern before the restructuring. During the reporting period, the Company newly develops jewelry and
god supply chain business and expands the business dimensions. In August 2019, the Company and Shenzhen Zuankinson Jewelry
Co., Ltd jointly established a Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd with contribution of 6.5 million yuan. Of which,
the Company holds 65% equity, and is the controlling shareholder of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd, while
35% equity held by Zuankinson Jewelry. According to actual operation development, in February 2020, the two parties are decided
to increase the capital of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd to 20 million yuan in the same proportion. Relevant
registration capital is fully funded in June 2020. In order to meet the future business development needs of Shenzhen Xinsen Jewelry
Gold Supply Chain Co., Ltd., it will enhance its financial strength, comprehensive competitiveness and anti-risk capabilities. In
August 2020, the company and the joint venture partner, Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., Ltd. decided to
jointly increase the capital of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. in the same proportion, increasing the registered
capital from 20 million yuan to 200 million yuan, of which, the company newly increased capital of 117 million yuan, which was
successively invested in accordance with its own funds and the availability of funds raised from the non-public issuance of A shares;
Zuankinson Jewelry newly increased capital of 63 million yuan, a total of 180 million yuan increased. The above mentioned capital
increase event has been deliberated and approved by the second extraordinary general meeting of shareholders of 2020 dated 21
August 2020. On the other hand, the Company sets the conditions for introducing the restructuring party in the reorganization plan,
expecting to restore the sustainable operation ability and sustainable profitability through asset restructuring.
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In addition, the Company is trying to carry out the issuance of non-public shares, hoping to improve the operating strength and
development momentum. On May 15, 2020, the company held the first extraordinary general meeting of shareholders in 2020, which
reviewed and approved the company's termination of the 2016 non-public issuance of shares and at the same time launched the plan
for the 2020 non-public issuance of A shares, intending to raise funds of no more than 450 million yuan from 5 specific investors
through non-public issuance of stocks, and all the raised funds would be used to supplement working capital after deducting the
issuance costs. After the CSRC accepted and the company's intermediary agency responded to a feedback from the CSRC, at the end
of November 2020, in view of the changes in relevant regulatory policies and the capital market environment, and comprehensively
considering the actual situation and other factors and fully communicating and prudently demonstrating with relevant parties, the
company decided to terminate the non-public offering and applied to the China Securities Regulatory Commission to withdraw the
relevant application materials. On December 24, 2020, the China Securities Regulatory Commission decided to terminate the review
of the administrative license application. On December 30, 2020, the company held the third extraordinary general meeting of
shareholders in 2020, and reviewed and approved the new plan for non-public issuance of A shares, intending to raise funds from
Wansheng Industrial Company through non-public issuance of shares not exceeding 293.6 million yuan, which would be used to
supplement working capital after deducting issuance costs, this issuance would lead to changes in the company's right of control.
After the Securities Regulatory Commission accepted and sent a feedback notice, the company and the intermediary agencies have
completed the response work on April 21, 2021, and follow-up related work is in progress.
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Section IV. Discussion and Analysis of the Business
I. Introduction
In 2020, the sudden epidemic brought serious threats to the lives and health of people in all countries, and caused severe impacts on
the world economy. The social economy faced serious difficulties, the company's operations were blocked, and the upstream and
downstream supply and sales links were blocked, the company’s operations faced special risks. In response to the epidemic, under
the leadership of the party and government, the people of the whole country have taken effective prevention and control measures
based on their own conditions and achieved positive results. While doing a good job in the prevention and control of the epidemic,
the government, enterprises, and employees have made concerted efforts to restore economic and social development and enterprise
production and operation. The government has taken multiple measures to stabilize people's livelihood and enterprises and
employment, and the company increased revenue and cut expenditures to ensure business and stability and survival and development.
The government's assistance measures for enterprises include extending holidays, returning social security to stabilize employment,
issuing post-stabilization subsidies, exempting enterprise pension insurance, issuing anti-epidemic subsidies, providing loan
discounts and liquidity support, etc. The company's measures include extending holidays, strengthening disinfection and epidemic
prevention, home office, flexible office and other measures, doing everything possible to maintain upstream and downstream
business, adopting capital vitalization, optimizing and adjusting business premises, and reducing expenses to ensure corporate cash
flow, creating conditions to ensure the health of employees, the stability of the team, the stability of the society and the guarantee of
employment, and contributing the enterprise’s strength for success of the epidemic prevention and control. With the joint efforts of
the government, enterprises, and employees, the company’s operating business began to gradually recover at the end of the first
quarter, and the business recovery and development in the second, third and fourth quarters were generally smooth. The annual
revenue from jewelry gold business was 87.06 million yuan (accounting for about 74% of total operating revenue), and the business
revenue from bicycle lithium battery materials was 30.8 million yuan (accounting for about 26% of total operating revenue). After
endogenous development, the jewelry gold business has become the company's core main business in 2020. In 2020, the company
was recognized as a high-tech enterprise (certificate number GR202044200651). According to the "Enterprise Income Tax Law of
the People's Republic of China" and the relevant provisions of the country's preferential tax policies for high-tech enterprises, the
company has enjoyed the relevant preferential tax policies for high-tech enterprises for three consecutive years (from 2020 to 2022)
after being identified as a high-tech enterprise, namely pay corporate income tax at a tax rate of 15%. The company will continue to
conscientiously do a good job in epidemic prevention and control and the development of enterprise production and operation.
In 2020, combine actual condition of financially insecure after reorganization, on the one hand, we adhere to traditional business
model development, in combination with the new national standard of safety technical specifications for electric bicycle, the
Company carry out R&D works on the products. Optimize and adjust the product structure and sales mode transformation, actively
expand the e-commerce business model in accordance with the e-commerce transformation of business team and controllable cost of
internal & external connections, so as to realize the stable development of e-commerce for retail business; at the same time, based on
the long-term process of the electric bicycle business, the follow-up research of related industrial projects and technology
applications in the upstream and downstream of the industrial chain have been carried out accordingly, and on the basis of extensive
business contacts and businesses in previous years, it continued to expand the lithium battery material business to enrich the main
business. On the one hand, continued to promote the development of the jewelry gold supply chain business and expand the business
dimension. In August 2019, the company and Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., Ltd. jointly invested 6.5
million yuan to establish Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., the company holding 65% of the shares as the
controlling shareholder of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., while Zuankinson Jewelry holding 35% of the
16
shares. According to the actual situation of business development, in February 2020, the two parties decided to increase the capital of
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. to 20 million yuan in the same proportion, and the relevant registered capital
have been in place in June 2020. In order to meet the future operation and development needs of Shenzhen Xinsen Jewelry Gold
Supply Chain Co., Ltd., and enhance its financial strength, comprehensive competitiveness and anti-risk ability, the company signed
a capital increase contract with the joint venture Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., Ltd. in August 2020, and
once again increased capital to Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. in the same proportion, and the registered
capital was increased from 20 million yuan to 200 million yuan, of which the company increased capital of 117 million yuan, which
would be successively invested in accordance with its own funds and the availability of funds raised from the non-public issuance of
A shares; Zuankinson Jewelry newly increased capital of 63 million yuan, totaling 180 million yuan. On August 21, 2020, the
company's 2020 second extraordinary general meeting of shareholders reviewed and approved the above capital increase. On the one
hand, we strived to promote the selection of the company's restructuring party and plan for the non-public issuance of stocks, hoping
to improve the company's business strength and development potential.
In terms of planning for the non-public offering of shares, on 15 May 2020, the Company held the First Extraordinary Shareholders
General Meeting of 2020 to considered and approved the termination of non-public offering of shares in 2016 and simultaneous
launch the proposal for the non-public offering of A-share in 2020. that is raising funds by way of non-public offering of shares to
five specific investors with fund not exceed 450 million yuan, which will be fully used to replenish the working capital after
deducting the offering expenses. At the end of November 2020, after the CSRC accepted and intermediaries responded to the First
Feedback of CSRC, the Company decided to terminate the non-public offering and applied to the CSRC to withdraw relevant
application materials in view of the changes in relevant regulatory policies and capital market environment, taking into account the
actual situation and other factors, and after sufficient communication and prudent argumentation with relevant parties. On 24
December 2020, the CSRC decided to terminate the review of the administrative license application. On 30 December 2020, the
Company held the Third Extraordinary Shareholders General Meeting of 2020 to considered and approved the new non-public
offering. The total amount of funds to be raised from Wansheng Industrial Company through non-public offering of shares shall not
exceed 293.6 million yuan, which will be used to supplement the working capital after deducting offering expenses. The offering of
shares this time will lead to a change in control right of the Company. After the CSRC accepted and sent a First Feedback Notice, the
Company and intermediary institutions have completed the response works on 21 April 2021 and follow-up related works are in
progress.
In 2020, in order to promote the Phase II renovation of Zhonghua Garden and solve the historical legacy of licensing issues, the
company and Shenzhen Jianzhi Industrial Co., Ltd. signed the "Urban renewal project of Zhonghua Garden (Phase II) Cooperation
Contract". The contract has been reviewed and approved by the company's board meeting and the general meeting of shareholders
and announced to take effect, and our company and Shenzhen Jianzhi Industrial Co., Ltd. Have established a working team to jointly
promote contract performance and related affairs.
Through various efforts to carry out, in 2020, the Company achieved an operation revenue of 117.8575 million yuan, net profit of
4.3757million yuan, and the net profit attributable to shareholder of listed company was3.7858million yuan.
Period-end or Period-begin or last Y-o-y
Item Note of major changes
current period period changes (+,-)
Operation revenue 117,857,480.17 76,022,687.75 55.03% Revenue from jewelry and gold business increased
in the Period
Operation cost 103,221,623.73 68,681,471.12 50.29% Costs from jewelry and gold business increased in
the Period
17
Loss of credit impairment -603,180.13 -2,533,065.87 -76.19% Impairment of account receivable for the period
(Loss is listed with “-”) declined compared with the previous period
Net profit 4,375,706.59 -7,813,881.65 156.00% Revenue growth in the Period and gross profit
increased, the expenses declined
Net profit attributable to 3,785,834.68 -7,186,905.64 152.68% Revenue growth in the Period and gross profit
shareholder of parent increased, the expenses declined
company
Net cash flow arising 3,942,228.96 -13,791,941.34 128.58% The deposit and advance rent received from the
from operation activities Zhonghua Garden (Phase II)
Net cash flow arising 46,381.18 -897,577.01 105.17% Acquisition of fixed assets in the previous period
from investment activities
Net cash flow arising 9,825,000.00 4,275,000.00 129.82% Received minority’s investment from the capital
from financing activities increment of Xinsen Company
Monetary fund 19,887,978.05 6,074,367.91 227.41% The deposit and advance rent received from the
Zhonghua Garden (Phase II)
Account receivable 55,031,424.70 38,616,523.93 42.51% Receivables from customers for jewelry and gold
business increased in the Period
Intangible assets 0.00 753,000.00 -100.00% Amortization ends for intangible assets in the
Period
Contract liability 15,254,713.38 1,739,953.80 776.73% Contract liability increased due to the deposit and
advance rent received from Zhonghua Garden
(Phase II) (Opening balance is reclassified from
account received in advance at end of the last
period)
Wages payable 1,459,244.07 599,962.73 143.22% Wages payable increased in the Period
Total owners attributable 10,905,230.98 7,119,396.30 53.18% Turing a loss into a profit in the Period
to parent company
Minority’s interest 14,737,058.70 4,322,186.79 240.96% 35% of the shareholding from minority’s due to
the capital increment from subsidiary
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) Operation of the physical store in reporting period
During the reporting period, gold and jewelry business of the Company mainly provides supply chain management and services in
the vertical field of gold and jewelry, it connects with the downstream gold jewelry brand and does not have the physical stores.
(2) Operation of the on-line sales in reporting period
The Company does not have on-line sales in the Period
(3) Inventory in the reporting period
18
As of end of the Period, balance of inventory from jewelry business amounted to 59,538,533,100 yuan, a 49.77% up compared with
that of period-begin, types of the inventory includes:
In RMB
Item Types Amount Proportion
Jewelry 443,189.84 7.44%
Gold jewelry — —
Finished goods
Other — —
Total 443,189.84 7.44%
Gold — —
Platinum — —
Raw materials
Diamond 1,298,565.61 21.81%
Total 1,298,565.61 21.81%
Wrappage 54,454.64 0.91%
Goods in process 4,157,643.22 69.83%
Total 5,953,853.31 100.00%
II. Main business analysis
1. Introduction
See the “I-Introduction” in “Discussion and Analysis of the Business”
2. Revenue and cost
(1) Constitute of operation revenue
In RMB
2020 2019
Ratio in operation Ratio in operation Y-o-y changes (+,-)
Amount Amount
revenue revenue
Total operation
117,857,480.17 100% 76,022,687.75 100% 55.03%
revenue
According to industries
Sales of bicycles and
16,435,436.09 13.95% 46,942,798.66 61.75% -64.99%
spare parts
Lithium battery
13,405,034.83 11.37% 24,460,850.63 32.18% -45.20%
material
19
Jewelry and gold 87,064,073.74 73.87% 4,619,038.46 6.07% 1,784.90%
Other 952,935.51 0.81%
According to products
Sales of bicycles and
16,435,436.09 13.95% 46,942,798.66 61.75% -64.99%
spare parts
Lithium battery
13,405,034.83 11.37% 24,460,850.63 32.18% -45.20%
material
Jewelry and gold 87,064,073.74 73.87% 4,619,038.46 6.07% 1,784.90%
Other 952,935.51 0.81%
According to region
Domestic 117,857,480.17 100.00% 76,022,687.75 100.00% 55.03%
(2) Industries, products or regions that account for more than 10% of the company’s operating revenue or
operating profit
√Applicable □ Not applicable
In RMB
Increase/decrease Increase/decrease Increase/decrease
Operation
Operation cost Gross profit ratio of operation of operation of gross profit
revenue
revenue y-o-y cost y-o-y ratio y-o-y
According to industries
Sales of bicycles
16,435,436.09 8,199,519.90 50.11% -64.99% -80.29% 38.72%
and spare parts
Lithium battery
13,405,034.83 13,191,331.01 1.59% -45.20% -42.22% -5.08%
material
Jewelry and gold 87,064,073.74 80,940,595.81 7.03% 1,784.90% 1,802.21% -0.85%
Other 952,935.51 890,177.01 6.59%
According to products
Sales of bicycles
16,435,436.09 8,199,519.90 50.11% -64.99% -80.29% 38.72%
and spare parts
Lithium battery
13,405,034.83 13,191,331.01 1.59% -45.20% -42.22% -5.08%
material
Jewelry and gold 87,064,073.74 80,940,595.81 7.03% 1,784.90% 1,802.21% -0.85%
Other 952,935.51 890,177.01 6.59%
According to region
Domestic 117,857,480.17 103,221,623.73 12.42% 55.03% 50.29% 2.76%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on
20
latest one year’s scope of period-end
□ Applicable √ Not applicable
(3) Income from physical sales larger than income from labors
√ Yes □ No
Industries Item Unit 2020 2019 Y-o-y changes (+,-)
Sales volume In 10 thousand 12.79 7.44 71.91%
Bicycle, electric
Output In 10 thousand 12.63 7.4 70.68%
bicycle
Inventory In 10 thousand 0.02 0.18 -88.89%
Lithium battery Sales volume Ton 468 385 21.56%
material Purchasing volume Ton 468 385 21.56%
Sales volume Piece 43,673 2,317 1,784.89%
Jewelry and gold Inventory Piece 3,019 2,015 49.83%
Purchasing volume Piece 44,986 4,332 938.46%
Reasons for y-o-y relevant data with over 30% changes
√Applicable □Not applicable
1. Revenue from bicycle business mainly refers to the brand fee income earned based on the number of complete bicycles, proportion
of traditional vehicle sales declined significantly.
2.The jewelry and gold business from subsidiary Xinsen are fully carried out in the year, last year, Xinsen was just starting up after
establishment of the business.
(4)Performance of the significant sales contracts entered into by the Company up to the current reporting
period
□ Applicable √ Not applicable
(5) Constitute of operation cost
Classification of industries
In RMB
2020 2019
Y-o-y changes
Industries Item Ratio in operation Ratio in operation
Amount Amount (+,-)
cost cost
Sales of bicycles Sales of bicycles
8,199,519.90 7.94% 41,597,621.68 60.57% -80.29%
and spare parts and spare parts
Lithium battery Lithium battery
13,191,331.01 12.78% 22,828,770.32 33.24% -42.22%
material material
Jewelry and gold Jewelry and gold 80,940,595.81 78.41% 4,255,079.12 6.20% 1,802.21%
21
Other IT goods 890,177.01 0.86%
Explanation
Nil
(6) Whether the changes in the scope of consolidation in Reporting Period
√ Yes □No
In July 2020, subsidiary of the Company (with 70% equity held by the Company) - Shenzhen Emmelle Industrial Co., Ltd invested in
the establishment of Shenzhen Emmelle Cloud Technology Co., Ltd with 70% equity held. Changes in scope of consolidated
statement of subsidiary have caused the changes in consolidated scope of the statement.
(7) Major changes or adjustment in business, product or service of the Company in Reporting Period
□ Applicable √ Not applicable
(8) Major sales and main suppliers
Major sales client of the Company
Total top five clients in sales (RMB) 74,211,999.25
Proportion in total annual sales volume for top five clients 62.97%
Ratio of related parties in annual total sales among the top
0.00%
five clients
Information of top five clients of the Company
Serial Name Sales (RMB) Proportion in total annual sales
1 Client 1 27,726,702.18 23.53%
2 Client 2 12,616,798.91 10.71%
3 Client 3 12,298,840.20 10.44%
4 Client 4 10,921,810.37 9.27%
5 Client 5 10,647,847.59 9.03%
Total -- 74,211,999.25 62.97%
Other situation of main clients
□ Applicable √ Not applicable
Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 32,778,924.84
Proportion in total annual purchase amount for top five
31.76%
suppliers
Ratio of related parties in annual total sales among the top
0.00%
five suppliers
22
Information of top five suppliers of the Company
Serial Name Purchase (RMB) Proportion in total annual purchase
1 Supplier 1 15,950,412.03 15.45%
2 Supplier 2 4,849,290.26 4.70%
3 Supplier 3 4,848,881.44 4.70%
4 Supplier 4 3,934,273.84 3.81%
5 Supplier 5 3,196,067.27 3.10%
Total -- 32,778,924.84 31.76%
Other notes of main suppliers
□ Applicable √ Not applicable
3. Expenses
In RMB
Y-o-y changes
2020 2019 Note of major changes
(+,-)
Sales expenses 2,540,657.03 3,178,476.39 -20.07%
Administrative expenses 4,783,608.32 6,409,465.59 -25.37%
The financial expenses arising from
Financial expenses 18,718.74 -95,401.17 -119.62%
sales discount
R&D expenses 2,506,877.57 2,753,277.72 -8.95%
4. R&D investment
√ Applicable □ Not applicable
More investment on R&D in jewelry and gold business.
R&D investment of the Company
2020 2019 Change ratio (+,-)
Number of R&D (people) 24 15 60%
Ratio of number of R&D 36.92% 25.42% 11.50%
R&D investment (Yuan) 2,506,877.57 2,753,277.72 -8.95%
R&D investment accounted for
2.13% 3.62% -1.49%
R&D income
R&D investment capitalization
0.00 0.00
(Yuan)
23
Capitalization R&D investment
0.00% 0.00%
accounted for R&D investment
The reason of great changes in the proportion of total R&D investment accounted for operation income than last year
□ Applicable √ Not applicable
Reason for the great change in R&D investment capitalization rate and rational description
□ Applicable √ Not applicable
5. Cash flow
In RMB
Item 2020 2019 Y-o-y changes (+,-)
Subtotal of cash in-flow arising
121,626,558.28 42,717,223.29 184.72%
from operation activity
Subtotal of cash out-flow
117,684,329.32 56,509,164.63 108.26%
arising from operation activity
Net cash flow arising from
3,942,228.96 -13,791,941.34 -128.58%
operating activities
Subtotal of cash in-flow arising
64,500.00
from investment activity
Subtotal of cash out-flow
18,118.82 897,577.01 -97.98%
arising from investment activity
Net cash flow arising from
46,381.18 -897,577.01 -105.17%
investment activities
Subtotal of cash in-flow arising
9,825,000.00 4,275,000.00 129.82%
from financing activity
Net cash flow arising from
9,825,000.00 4,275,000.00 129.82%
financing activities
Net increased amount of cash
13,813,610.14 -10,414,518.35 -232.64%
and cash equivalent
Main reasons for y-o-y major changes in aspect of relevant data
√ Applicable □ Not applicable
1. Subtotal of cash in-flow arising from operation activity has a y-o-y growth of 184.72, mainly because the fully carry out of the
jewelry and gold business from subsidiary Xinsen, received money from goods and received a security deposit and advance rent for
Zhonghua Garden (Phase II) by parent company.
2. Subtotal of cash out-flow arising from operation activity has a y-o-y growth of 108.26%, mainly due to the payment of goods for
fully carrying out of the jewelry and gold business from subsidiary Xinsen.
3. Subtotal of cash out-flow arising from investment activity has 97.98% down on a y-o-y basis, mainly because purchasing
machinery equipment at same period last year.
4. Subtotal of cash in-flow arising from financing activity has a y-o-y growth of 129.82%, mainly because subsidiary Xinsen increase
in capital and shares during the Period.
24
Reasons of major difference between the cash flow of operation activity in report period and net profit of the Company
□Applicable √Not applicable
III. Analysis of the non-main business
√ Applicable □ Not applicable
In RMB
Amount Ratio in total profit Note Whether be sustainable (Y/N)
Assets impairment 198,181.03 4.16% Impairment provision N
Revenue of the assets
Non-operation management ready for
6,542,649.75 137.28% N
revenue proposed in reorganization
case
Expenditure of the assets
Non-operation management ready for
5,688,279.29 119.35% N
expenditure proposed in reorganization
case
Credit impairment 603,180.13 12.66% Impairment provision N
IV. Analysis of assets and liability
1. Major changes of assets composition
Adjustment on the relevant items of financial statement at beginning of the year when implemented the new revenue standards or
new leasing standards since 2020
Applicable
In RMB
Year-end of 2020 Year-begin of 2020 Ratio
Ratio in total Ratio in total changes Note of major changes
Amount Amount
assets assets (+,-)
The cooperation deposit and advance
Monetary fund 19,887,978.05 21.68% 6,074,367.91 9.68% 12.00% rent received from the Zhonghua
Garden (Phase II)
Account
55,031,424.70 59.98% 38,616,523.93 61.56% -1.58%
receivable
Inventory 7,729,325.94 8.42% 6,078,330.30 9.69% -1.27%
Fix assets 3,792,133.36 4.13% 4,191,503.33 6.68% -2.55%
25
2. Assets and liability measured by fair value
□ Applicable √ Not applicable
3. Limited assets rights till end of the period
1.At the end of the current period, the total fixed output value included six suites of house properties at 7-20F Lianxin JiaYuan,
Luohu District, Shenzhen purchased in 2016, with original value of 2,959,824.00 Yuan, which were affordable housing purchased
from the Housing and Construction Bureau of Luohu District to provide to enterprise talents for living. The contract stipulated that
the purchasing enterprise is not allowed to conduct any form of property rights transaction with any units or individual other than the
government.
V. Investment
1. Overall situation
√ Applicable □ Not applicable
Investment in the same period of last year
Investment in reporting period (RMB) Change scope
(RMB)
17,125,000.00 4,225,000.00 305.33%
2. The major equity investment obtained in the reporting period
√ Applicable □ Not applicable
In RMB
Name
Progres Profit/l Litigati
of Date of Disclos
Main Investm Investm Shareh s as at Anticip oss of on
investe Capital Partner Time Product disclos ure
busines ent ent olding balance ated current issues
d sources s horizon type ure (if index
s style amount ratio sheet income investm involve
compan any) (if any)
date ent d (Y/N)
y
Juchao
Shenzh
Shenzh website
en
en Supply Supply (http://
Zuanki
Xinsen chain chain Capital www.c
nson
Jewelry busines Capital service increme ninfo.c
8,775,0 Owned Jewelry 122,45 122,45 2020-0
Gold s of increme 65.00% 20-year of nt N om.cn)
00.00 fund and 6.84 6.84 2-19
Supply jewelry nt jewelry complet , Notice
Gold
Chain and and ed No.:
Supply
Co., gold gold 2020-0
Chain
Ltd 02,
Co.,
2020-0
26
Ltd. 03
Juchao
Owned Shenzh website
Shenzh fund en (http://
en Supply and Zuanki Supply www.c
Xinsen chain funds nson chain ninfo.c
Jewelry busines capital raising Jewelry service In om.cn)
117,000 1,632,7 1,632,7 2020-0 , Notice
Gold s of increme 65.00% from and 20-year of progres N
,000.00 57.86 57.86 8-06 No.:
Supply jewelry nt non-pu Gold jewelry s
Chain and blic Supply and 2020-0
Co., gold offering Chain gold 32,
Ltd of Co., 2020-0
A-share Ltd. 34
Engage
d in the
technol
Shenzh
ogy Shenzh
en Softwar
develop en
Emmell e Establis
ment Newly Zhenba
e Cloud 1,400,0 Owned develop hed and 5,696.9 5,696.9
and establis 49.00% ngda 20-year N N/A N/A
Technol 00.00 fund ment fully 9 9
service hed Technol
ogy and paid up
busines ogy
Co., services
s in Co.,
Ltd.
field of Ltd.
comput
er
127,17
1,760,9 1,760,9
Total -- -- 5,000.0 -- -- -- -- -- -- -- -- --
11.69 11.69
0
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
The company had no securities investment in the reporting period.
27
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period
5. Application of raised proceeds
□ Applicable √ Not applicable
The company had no application of raised proceeds in the reporting period.
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
VII. Analysis of main holding company and stock-jointly companies
√Applicable □ Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Company Main Register Operation Operating
Type Total assets Net assets Net profit
name business capital revenue profit
Shenzhen
Supply chain
Xinsen
business of 44,248,401.3 34,415,871.9 87,064,073.7
Jewelry Gold Subsidiary 200,000,000 2,806,059.26 2,700,330.30
jewelry and 1 3 4
Supply Chain
gold
Co., Ltd
Shenzhen Distribution
Emmelle of bicycles 14,820,153.6 -1,237,317.1 -1,203,910.7
Subsidiary 5,000,000 5,310,246.69 3,160,952.74
Industrial and spare 8 4 1
Co., Ltd. parts
Particular about subsidiaries obtained or disposed in report period
√ Applicable □ Not applicable
The way of getting and treating subsidiary Influence on overall product and
Company name
in the reporting performance
Shenzhen Emmelle Cloud Technology Co., Investment in new establishment Net profit attributable to parent company
28
Ltd. has 56.9699 million yuan increased in the
period with minimal impact
Notes of holding and shareholding companies
1.The Company holds 65 percent equity of the Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd, the balance of minority equity
at period-end amounting to 12,538,055.17 Yuan.
2.The Company holds 70 percent equity of the Shenzhen Emmelle Industrial Co., Ltd., the balance of minority equity at period-end
amounting to1,593,074.01 Yuan.
3. The Company indirectly holds 49 percent equity of the Shenzhen Emmelle Cloud Technology Co., Ltd., the balance of minority
equity at period-end amounting to 605,929.52 Yuan.
VIII. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Future Development Prospects
i. Development trend of the industry the Company operates in and market competition pattern it deals with:
As a sector in the traditional manufacturing field, the bicycle industry continued the dilemma of rise in labor costs, manufacturing
costs, capital costs, and material costs. In April 2019, the implementation of the new national standard of safety technical
specifications for electric bicycles accelerated the industry reshuffle and resulted a new round of industry shock. In addition, in the
past two years, the bike sharing has been violently oscillating the bicycle industry and the upstream supply chain operations with
capital advantages, due to the lack of profit model and capital chain problems, its aftershocks continue to rattle the industry’s
recovery. At the same time, as a traditional manufacturing industry, the bicycle industry also ushered in the “Made in China 2025”
strategy, under the guidance of the basic principles of “Innovation Driven, Quality First, Green Development, Structure Optimization,
and Talent Based”, took the important opportunity to speed up the transformation and upgrading, ushered in the development
opportunity of the implementation of the new national standards for electric bicycles, and also faced with the important challenges of
e-commerce development impacts on channels, channel integration and Internet+. China has the world’s largest production and
marketing of electric bicycles, after years of development, electric bicycles have gradually become an important means of
transportation for consumers on everyday short-distance trips, at present, there are about 200 million bicycles in the entire society.
Structural body, motor, power battery, and control system are the core components of electric bicycles, CBC has been closely
following up the research on their technological development, application development, and commercial value for a long period of
time, and has determined the qualified suppliers for core components year by year. As one of the core components of electric bicycle,
power batteries have been mainly lead-acid batteries in the past decade or two, with the development and popularization of new
energy technologies and new energy materials, it is expected to be replaced by the lithium batteries in the future. The implementation
of the new national standard for electric bicycle safety technical specifications has comprehensively improved the safety performance
of electric bicycles, and adjusted and improved technical indicators such as speed limits, vehicle quality, and pedaling ability. The
new standard is close to people’s livelihood and serving people’s livelihood, which improved the application space of lithium battery
energy storage, and the lithium battery electric bicycle is ushering in a new stage of development.
In the gold and jewelry industry, in the context of China’s sustained rapid economic growth and rising per capita income levels, in
addition to meeting the need for keeping the value, the jewelry consumption is also a requirement for people to pursue fashion and
show personality. At present, China is one of the world’s largest, most important, and fastest-growing jewellery markets, the
29
consumption of many jewellery categories ranks in the forefront of the world, among which the sales of gold, silver, platinum, jade,
pearls and other products rank first in the world. China’s jewelry gold industry market has formed a three-legged pattern of domestic,
Hong Kong and foreign brands, and the market shares continue to be concentrated. At present, China’s per capital jewelry
consumption is still far lower than that of developed countries, and our jewelry gold consumption market still has a lot of room for
improvement, but the market competition is fierce. In August 2019, the company invested in the establishment of a holding
subsidiary, Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., and began to get involved in the supply chain business of jewelry
and gold.
ii. Future development opportunity and new yearly business plan of the Company:
With the fierce market competition, new development opportunities are also formed. At the end of 2013, the Company completed the
implementation of its restructuring plan and concluded its bankruptcy procedure, thereby improving the legal environment its
business faces with. On the basis of business work over the past few years, the business plan of the Company for 2021 is:
1. Continue to actively cooperate with shareholders and the board of directors to promote the reorganization of the company and
promote the planning of non-public offering of shares.
2. Reform and improve the internal management mechanism, decompose and implement the company's annual task to every
subsidiaries, each distribution company and regional manager, take the manager responsibility system, follow p month by month, and
roll the assessment.
3. In terms of gold and jewelry business, further establish supplier systems and expand customer resources, improve internal business
processes and internal control system construction, promote the construction of a supply chain system platform to improve
operational quality and efficiency, and strive to achieve greater growth in operating income.
4. In terms of electric bicycles, for key mature areas such as Shandong, Henan, Hebei, Jiangsu, etc., organize supply of goods, control
quality, coordinate transportation and improve after sales order by order, and ensure stable order business; for other areas, actively
strengthen communication and cooperation with ODM factories to give full play to ODM factories' regional advantages, use its
existing sales network for distribution cooperation, expand the brand influence and distribution cooperation basis of the EMMELLE
brand in the distribution team of other cooperative manufacturers, so as to promote the growth of orders.
5. In terms of the lithium battery materials and cloud technology business, in 2021, we will increase the business development force,
forge talent teams, enrich product lines, develop new customers, promote the new technology applications and increase investment in
new product development. Strive to achieve the rebound of lithium materials business, and strive for the development of cloud
technology business with revenue increased over the previous year.
6. Continue to promote the cooperation matters of the urban renewal project of Zhonghua Garden (Phase II), facilitate the resolution
of the certification issue of Zhonghua Garden (Phase II) left over from history, and realize the phased work returns at the same time.
7. Strengthen the background management and office automation, and improve the support degree of background departments to
front desk business.
iii. Risk factors adverse to the Company’s development:
(1)The tough international economic situation: The domestic economy is at the structural adjustment stage in the course of
development, structural problems and deep-seated conflicts are highlighted. The economic downturn pressure continues to increase,
many unstable and uncertain factors exist, which affect and impact the traditional manufacturing industries and the social
consumption structure demand. Since the domestic economy is at the structural adjustment stage, coupled with a difficult situation of
continuously rising labor cost, manufacturing cost, financing cost and material cost the bicycle industry as a conventional
manufacturing field recorded a decline in the market turnover. Due to the low entry threshold and numerous manufacturers, the
competition in the market is extremely fierce.
(2) Affected by the impact of COVID-19, the social economy entered a special dilemma, operation of the Company has been blocked,
30
upstream and downstream supply and sales links have been blocked.
In the fave of the above problems, the central government and governments at all levels have taken multiple measures to stabilize the
people’s livelihood, stabilize the enterprises and employment, the Company will strive to maintain stability and seek development
through increase the income and reduce the expenditures. In 2020, combined with the actual situation on its own poor background
after reorganization, on the one hand, we continued to adhere to traditional business model development, in combination with the
new national standard of safety technical specifications for electric bicycle, the Company carry out R&D works on the products.
Optimize and adjust the product structure and sales mode transformation, actively expand the e-commerce business model in
accordance with the e-commerce transformation of business team and controllable cost of internal & external connections, so as to
realize the stable development of e-commerce for retail business; At the same time, based on the long-term process of the electric
bicycle business, the follow-up research of related industrial projects and technology applications in the upstream and downstream of
the industrial chain have been carried out accordingly, and on the basis of extensive business contacts and businesses in previous
years, it continued to expand the lithium battery material business to enrich the main business. On the one hand, continued to
promote the development of the jewelry gold supply chain business and expand the business dimension. In August 2019, the
company and Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., Ltd. jointly invested 6.5 million yuan to establish Shenzhen
Xinsen Jewelry Gold Supply Chain Co., Ltd., the company holding 65% of the shares as the controlling shareholder of Shenzhen
Xinsen Jewelry Gold Supply Chain Co., Ltd., while Zuankinson Jewelry holding 35% of the shares. According to the actual situation
of business development, in February 2020, the two parties decided to increase the capital of Shenzhen Xinsen Jewelry Gold Supply
Chain Co., Ltd. to 20 million yuan in the same proportion, and the relevant registered capital has been in place in June 2020. In order
to meet the future operation and development needs of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., and enhance its
financial strength, comprehensive competitiveness and anti-risk ability, the company signed a capital increase contract with the joint
venture Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., Ltd. in August 2020, and once again increased capital to
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. in the same proportion, and the registered capital was increased from 20
million yuan to 200 million yuan, of which the company increased capital of 117 million yuan, which would be successively invested
in accordance with its own funds and the availability of funds raised from the non-public issuance of A shares; Zuankinson Jewelry
newly increased capital of 63 million yuan, totaling 180 million yuan. On August 21, 2020, the company's 2020 second extraordinary
general meeting of shareholders reviewed and approved the above capital increase. On the one hand, we strived to promote the
selection of the company's restructuring party and plan for the non-public issuance of stocks, hoping to improve the company's
business strength and development potential.
In terms of planning for the non-public offering of shares, on 15 May 2020, the Company held the First Extraordinary Shareholders
General Meeting of 2020 to considered and approved the termination of non-public offering of shares in 2016 and simultaneous
launch the proposal for the non-public offering of A-share in 2020. that is raising funds by way of non-public offering of shares to
five specific investors with fund not exceed 450 million yuan, which will be fully used to replenish the working capital after
deducting the offering expenses. At the end of November 2020, after the CSRC accepted and intermediaries responded to the First
Feedback of CSRC, the Company decided to terminate the non-public offering and applied to the CSRC to withdraw relevant
application materials in view of the changes in relevant regulatory policies and capital market environment, taking into account the
actual situation and other factors, and after sufficient communication and prudent argumentation with relevant parties. On 24
December 2020, the CSRC decided to terminate the review of the administrative license application. On 30 December 2020, the
Company held the Third Extraordinary Shareholders General Meeting of 2020 to considered and approved the new non-public
offering. The total amount of funds to be raised from Wansheng Industrial Company through non-public offering of shares shall not
exceed 293.6 million yuan, which will be used to supplement the working capital after deducting offering expenses. The offering of
shares this time will lead to a change in control right of the Company. After the CSRC accepted and sent a First Feedback Notice, the
Company and intermediary institutions have completed the response works on 21 April 2021 and follow-up related works are in
31
progress.
In 2020, in order to promote the Phase II renovation of Zhonghua Garden and solve the historical legacy of licensing issues, the
company and Shenzhen Jianzhi Industrial Co., Ltd. signed the "Urban renewal project of Zhonghua Garden (Phase II) Cooperation
Contract". The contract has been reviewed and approved by the company's board meeting and the general meeting of shareholders
and announced to take effect, and our company and Shenzhen Jianzhi Industrial Co., Ltd. Have established a working team to jointly
promote contract performance and related affairs.
X. Reception of research, communication and interview
1. In the report period, reception of research, communication and interview
√ Applicable □ Not applicable
Main content
Reception Basic situation index of
Time Way Reception type Object and information
location investigation
provided
Consulting
Telephone Individual company
Jan.-Mar. 2020 The Company Individual N/A
communication investor restructuring
problem
Inquiry progress
Telephone Individual
April- June 2020 The Company Individual of the private N/A
communication investor
placement
Inquiry the
progress of
urban renewal
July - September Telephone Individual
The Company Individual project of N/A
2020 communication investor
Zhonghua
Garden (Phase
II)
Inquiry progress
October - Telephone Individual
The Company Individual of the private N/A
December 2020 communication investor
placement
Reception (times) 15
Number of hospitality 0
Number of individual reception 15
Number of other reception 0
Disclosed, released or let out major undisclosed
N
information
32
Section V. Important Events
I. Profit distribution plan of common stock and capitalizing of common reserves plan
Formulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash Dividend policy during
the Reporting Period
□ Applicable √ Not applicable
Profit distribution plan (pre-plan) of common stock and capitalizing of common reserves plan (pre-plan) in latest three years
(including the reporting period)
Cash dividend of common stock in latest three years (including the reporting period)
In RMB
Ratio of the
Ratio of the
Ratio of the total cash
Net profit cash bonus by
cash bonus in bonus (other
attributable to other ways in
net profit ways included)
common stock Proportion for net profit
attributable to Total cash in net profit
Amount for shareholders of cash bonus by attributable to
Year for bonus common stock bonus attributable to
cash bonus (tax listed company other ways(i.e. common stock
shares shareholders of (including common stock
included) in share shareholders of
listed company other ways) shareholders of
consolidation buy-backs) listed company
contained in listed company
statement for contained in
consolidation contained in
bonus year consolidation
statement consolidation
statement
statement
2020 0.00 3,984,636.40 0.00% 0.00 0.00% 0.00 0.00%
2019 0.00 -7,186,905.64 0.00% 0.00 0.00% 0.00 0.00%
2018 0.00 -1,591,968.91 0.00% 0.00 0.00% 0.00 0.00%
The Company gains profits in reporting period and the retained profit of common stock shareholders provided by parent company is
positive but no plan of cash dividend proposed of common stock
□ Applicable √ Not applicable
II. Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for
the year.
33
III. Implementation of commitment
1. Commitments completed in Period and those without completed till end of the Period from actual
controller, shareholders, related parties, purchaser and companies
□ Applicable √ Not applicable
The Company has no commitments completed in Period and those without completed till end of the Period from actual controller,
shareholders, related parties, purchaser and companies
2. Concerning assets or project of the Company, which has profit forecast, and reporting period still in
forecasting period, explain reasons of reaching the original profit forecast
□ Applicable √ Not applicable
IV. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors
(if applicable) for “Qualified Opinion” that issued by CPA
√ Applicable □ Not applicable
On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng Energy Investment and
Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the Company as the Company
couldn’t pay off the matured debts and was seriously insolvent. On 12th, Oct., 2012, Shenzhen Municipal Intermediate People's Court
ruled to accept the application proposed by Guosheng Energy according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil
ruling. In late October, 2012, Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25th, Oct., 2012
according to (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen) Mallesons and
Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. At the same time, Shenzhen Municipal
Intermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1 written decision, and approved the Company
to manage property and business affairs by itself under the supervision of custodians according to the law. On 5 November 2013, the
Shenzhen Intermediate People’s Court (2012) Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved the
reorganization plan of the Company. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012)
Shen Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures of CBC closed
down.
The Company has solved the debt problem by reforming, realized the net assets with positive value, the main business of bicycle is
able to be maintained and realizes the stable development. The Company has set up the conditions for introducing the recombination
party in the reforming plan, and expects to restore the abilities of sustainable operation and sustained profitability by reorganization.
The conditions of introducing the recombination party includes: the assessed value of net assets should be no less than 2 billion Yuan,
the net assets in the same year for implementing the major reorganization should be no less than 200 million Yuan. The Company
doesn’t have the recombination party at the moment. The Company will continue to carry out vary related works actively and
promote the reorganization work with all efforts.
34
VI. Particulars about the changes in aspect of accounting policy, estimates and calculation
method compared with the financial report of last year
√ Applicable □ Not applicable
1.Change of accounting policy
(1) The Company implemented the relevant regulations of Accounting Standards for Business Enterprises No. 14 - Revenue (Cai
Kuai [2017] No.22) (hereinafter referred to as New Revenue Standard) since 1 January 2020. After implementation of the new
revenue standard, the Company will not have an impact on the business model, contract terms, revenue recognition and other aspects.
Impact from the implementation of the regulations on financial statement of the Company for year of 2020 is as follows:
Content and reasons for accounting policy changes Item and amount impacted
In consolidate balance sheet dated 31 December 2020, the account
received in advance is shown in the amount of 0.00 yuan, the contract
”Account received in advance” presented as “Contract liability on 31 December 2020 is shown as 15254713.38 yuan.
liability” In balance sheet of parent company dated 31 December 2020, the
account received in advance is shown in the amount of 0.00 yuan, the
contract liability on 31 December 2020 is shown as 14385423.04 yuan.
VII. Major accounting errors within reporting period that needs retrospective restatement
□ Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
VIII. Compare with last year’s financial report; explain changes in consolidation statement’s
scope
√ Applicable □ Not applicable
On 21 July 2020, subsidiary Shenzhen Emmelle Industrial Co., Ltd contributes 70% and Shenzhen Zhenbangda Technology Co., Ltd
contributes 30% together to established the Shenzhen Emmelle Cloud Technology Co., Ltd. The enterprise was included in
consolidate statement scope since the date of established.
IX. Appointment and non-reappointment (dismissal) of CPA
Accounting firm appointed
Name of domestic accounting firm Baker Tilly China Certified Public Accountants (LLP)
Remuneration for domestic accounting firm (in 10 thousand
45
Yuan)
Continuous life of auditing service for domestic accounting firm 5
35
Name of domestic CPA Chen Zhigang, Zhang Lei
Continuous life of auditing service for domestic accounting firm 4
Re-appointed accounting firms in this period
□ Yes √No
Appointment of internal control auditing accounting firm, financial consultant or sponsor
√ Applicable □ Not applicable
In the year, the Company engaged Baker Tilly China Certified Public Accountants (LLP) as the auditing organ for internal control of
the Company for year of 2020, charges amounted as 150,000 Yuan.
X. Particular about delisting after annual report disclosed
□ Applicable √ Not applicable
XI. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period.
XII. Significant lawsuits and arbitration of the Company
□Applicable √Not applicable
No significant lawsuits and arbitration occurred in the reporting period.
XIII. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
XIV. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XV. Implementation of the company’s stock incentive plan, employee stock ownership plan or
other employee incentives
□ Applicable √ Not applicable
The Company had no implementation of the company’s stock incentive plan, employee stock ownership plan or other employee
incentives in the reporting period.
36
XVI. Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
The Company had no related transaction with routine operation concerned occurred in the period
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period.
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period.
4. Contact of related credit and debt
√ Applicable □ Not applicable
Whether exist non-operating contact of related credit and debt or not
√Yes □No
Claim receivable from related party
Whether
Balance at Current
has Current Current Balance at
period-begi newly
Related Relationshi Causes of non-busines recovery(10 interest(10 period-end(1
n(10 added(10 Interest rate
party p formation s capital thousand thousand 0 thousand
thousand thousand
occupying Yuan) Yuan) Yuan)
Yuan) Yuan)
or not
Debts payable to related party
Current
Balance at Current Current Balance at
newly
Causes of period-begin( recovery interest(10 period-end(10
Related party Relationship added(10 Interest rate
formation 10 thousand (10 thousand thousand thousand
thousand
Yuan) Yuan) Yuan) Yuan)
Yuan)
Shenzhen
Guosheng
Subsidiary
Energy Large
Emmelle 650 0 0 0.00% 0 650
Investment shareholder
loan
Development
Co., Ltd.
37
Influence on operation result
and financial statue of the No influence
Company from related debts
5. Other related transactions
□ Applicable √ Not applicable
The company had no other significant related transactions in reporting period.
XVII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship for the Company in reporting period.
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in reporting period.
(3) Leasing
□ Applicable √ Not applicable
No leasing for the Company in reporting period.
2. Major guarantees
□ Applicable √ Not applicable
No guarantee for the Company in reporting period.
3. Entrust others to cash asset management
(1) Trust financing
□ Applicable √ Not applicable
No trust financing for the Company in reporting period.
(2) Entrusted loans
□ Applicable √ Not applicable
The company had no entrusted loans in the reporting period.
38
4. Significant contracts for daily operations
□ Applicable √ Not applicable
5. Other significant contracts
√Applicable □ Not applicable
The
The
assesse
book
d
The The value Name Whethe
value The The
name name The of the of the r The
of the base Bargain perform The
of the of the date of assets evaluati Pricing connect Inciden index
Contrac assets date price(R ance by date of
contract contract signatur involve on principl ed ce of
t object involve evaluati MB’00 the end disclos
ing ed e of the d in the organiz es transact relation disclos
d in the on (if 00) of the ure
compan compan contract contract ation(if ion ure
contract any) term
y y (RMB’ any) (Y/N)
(RMB’
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f any)
f any)
”Notice
on
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into the
Shenzh Shenzh Urban Cooper
en en renewal ation
China Jianzhi project Agreem
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2020-0 Termin 2020-0
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(Holdin pment Garden l
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Notice
No.:
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en en renewal ed and on
China Jianzhi project effectiv Progres
Negotia No
Bicycle Industri of 2020-0 e at the 2020-0 s of the
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39
Limited Ltd. II) dated Urban
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progres 202003
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XVIII. Social responsibility
1. Performance of social responsibility
Nil
2. Execution of social responsibility of targeted poverty alleviation
(1) Targeted poverty alleviation
Nil
(2) Summary of annual precision poverty alleviation
Nil
(3)Accuracy of poverty alleviation
Target Measurement units Numbers/progress
I. general condition —— ——
II. Implemented by detail —— ——
1. Industrial development poverty —— ——
2.Transfer employment —— ——
3. Anti-poverty by relocating in other places —— ——
4. Education poverty —— ——
5. Health poverty alleviation —— ——
6. Ecological conservation —— ——
7. Fallback protection —— ——
8. Social poverty alleviation —— ——
9. Other —— ——
40
III. Awards (content and level) —— ——
(4) Subsequent precision poverty alleviation program
3. Environmental protection
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental Protection
□Yes □No
XIX. Explanation on other significant events
√ Applicable □ Not applicable
1.Planning of non-public issue of shares
On 15 May 2020, the Company held the First Extraordinary Shareholders General Meeting of 2020 to considered and approved the
termination of non-public offering of shares in 2016 and simultaneous launch the proposal for the non-public offering of A-share in
2020. that is raising funds by way of non-public offering of shares to five specific investors with fund not exceed 450 million yuan,
which will be fully used to replenish the working capital after deducting the offering expenses. At the end of November 2020, after
the CSRC accepted and intermediaries responded to the First Feedback of CSRC, the Company decided to terminate the non-public
offering and applied to the CSRC to withdraw relevant application materials in view of the changes in relevant regulatory policies
and capital market environment, taking into account the actual situation and other factors, and after sufficient communication and
prudent argumentation with relevant parties. On 24 December 2020, the CSRC decided to terminate the review of the administrative
license application. On 30 December 2020, the Company held the Third Extraordinary Shareholders General Meeting of 2020 to
considered and approved the new non-public offering. The total amount of funds to be raised from Wansheng Industrial Company
through non-public offering of shares shall not exceed 293.6 million yuan, which will be used to supplement the working capital after
deducting offering expenses. The offering of shares this time will lead to a change in control right of the Company. After the CSRC
accepted and sent a First Feedback Notice, the Company and intermediary institutions have completed the response works on 21
April 2021 and follow-up related works are in progress.
The non-public offering of share is subject to the approval from CSRC, there is uncertainty as to whether it will be approved and
when it will finally be approved. Found more in the announcement released by the Board.
2. Capital increment for controlling subsidiary
In August 2019, the company and Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., Ltd jointly invested 6.5 million yuan
to establish Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., the company holding 65% of the shares as the controlling
shareholder of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd.., while Zuankinson Jewelry holding 35% of the shares.
According to the actual situation of business development, in February 2020, the two parties decided to increase the capital of
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. to 20 million yuan in the same proportion. On February 19, 2020, the
company held the eighteenth (temporary) meeting of the tenth board of directors, reviewed and approved the "Proposal on Capital
Increase in Holding Subsidiaries". After the completion of capital increased, the shareholding ratio of all parties remains unchanged,
and the company remains the controlling shareholder of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. As of June 30, 2020,
the registered capital of Xinsen Company has been paid in place, and various businesses have been carried out normally.
In order to meet the future business development needs of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., it will enhance its
41
financial strength, comprehensive competitiveness and anti-risk capabilities. In August 2020, the company and the joint venture
partner, Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., Ltd. decided to jointly increase the capital of Shenzhen Xinsen
Jewelry Gold Supply Chain Co., Ltd. in the same proportion, increasing the registered capital from 20 million yuan to 200 million
yuan, of which, the company newly increased capital of 117 million yuan, which was successively invested in accordance with its
own funds and the availability of funds raised from the non-public issuance of A shares; Zuankinson Jewelry newly increased capital
of 63 million yuan, a total of 180 million yuan. The twenty-third (temporary) meeting of the tenth board of directors held by the
company on August 5, 2020 and the second extraordinary general meeting of shareholders of 2020 held by the company on August
21, 2020 reviewed and approved the "Proposal on the Second Capital Increment in Controlling Subsidiaries". Found more in the
Notice released by the Board.
3. Cooperation matters in urban renewal projects
On April 26, 2020, the company held the twentieth meeting of the tenth board of directors and reviewed and approved the "Proposal
on Signing the Cooperation Agreement for Zhonghua Garden Phase II Urban Renewal Project". According to the agreement, given
that: 1. Jianzhi Industry failed to pay the company a security deposit of 2 million yuan on the date of signing the agreement. 2.
Jianzhi Industry failed to pay the company 10 million yuan within 30 days after the signing of the agreement. On August 4, 2020, the
company revised the original "Cooperation Agreement for Zhonghua Garden Phase II Urban Renewal Project" with Jianzhi Industry
through friendly negotiations, and re-signed the "Cooperation Contract for Zhonghua Garden Phase II Urban Renewal Project". On
the day of the signing of the contract, the company received 10 million yuan from Jianzhi Industry for the contract payment. The
company held the twenty-third (temporary) meeting of the tenth board of directors on August 5, 2020 and the 2020 second
extraordinary general meeting of shareholders held on August 21, 2020, reviewed and approved the "Proposal on Revising and
Signing the Cooperation Contract for Zhonghua Garden Phase II Urban Renewal Project". Found more in the Notice released by the
Board.
XX. Significant event of subsidiary of the Company
√Applicable □Not applicable
1. In August 2019, the Company and Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., Ltd jointly established a Shenzhen
Xinsen Jewelry Gold Supply Chain Co., ltd. of which, the Company holds 65% equity and it is the controlling shareholder of
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd, while 35% equity held by Shenzhen Zuankinson Jewelry and Gold Supply
Chain Co., Ltd.
According to the actual situation of business development, in February 2020, the two parties decided to increase the capital of
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. to 20 million yuan in the same proportion. On February 19, 2020, the
company held the eighteenth (temporary) meeting of the tenth board of directors, reviewed and approved the "Proposal on Capital
Increase in Holding Subsidiaries". After the completion of capital increased, the shareholding ratio of all parties remains unchanged,
and the company remains the controlling shareholder of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. As of June 30, 2020,
the registered capital of Xinsen Company has been paid in place, and various businesses have been carried out normally.
In order to meet the future business development needs of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd., it will enhance its
financial strength, comprehensive competitiveness and anti-risk capabilities. In August 2020, the company and the joint venture
partner, Shenzhen Zuankinson Jewelry and Gold Supply Chain Co., Ltd. decided to jointly increase the capital of Shenzhen Xinsen
Jewelry Gold Supply Chain Co., Ltd. in the same proportion, increasing the registered capital from 20 million yuan to 200 million
42
yuan, of which, the company newly increased capital of 117 million yuan, which was successively invested in accordance with its
own funds and the availability of funds raised from the non-public issuance of A shares; Zuankinson Jewelry newly increased capital
of 63 million yuan, a total of 180 million yuan. The twenty-third (temporary) meeting of the tenth board of directors held by the
company on August 5, 2020 and the second extraordinary general meeting of shareholders of 2020 held by the company on August
21, 2020 reviewed and approved the "Proposal on the Second Capital Increment in Controlling Subsidiaries". Found more in the
announcement released by the Board.
2.Capital increase to the controlling subsidiary Shenzhen Emmelle Industrial Co., Ltd
According to Chinese Accounting Standards and the audit report issued by Baker Tilly China Certified Public Accountants (LLP), as
of December 31, 2019, Shenzhen Emmelle Industrial Co., Ltd had undistributed profits of 3,756,453.12 yuan. In accordance with the
relevant provisions of the "Company Law" and the "Articles of Association", Shenzhen Emmelle Industry Co., Ltd. held the first
extraordinary general meeting of shareholders in 2020 on September 2, 2020, and reviewed and approved a profit distribution of 3
million yuan to all shareholders, and used the distributed profits to increase the registered capital for the same proportion of capital
increase. After the completion of capital increase, the registered capital of Shenzhen Emmelle Industrial Co., Ltd. increased from 2
million yuan to 5 million yuan, of which Shenzhen China Bicycle (Holdings) Co., Ltd. invested 2.1 million yuan, and the trade union
committee of Shenzhen China Bicycle (Holdings) Co., Ltd. newly funded 900,000 yuan. At the same time, the meeting also
deliberated and approved related matters such as changing the company's registered address, business scope, and amending the
articles of association. As of September 30, 2020, Shenzhen Emmelle Industrial Co., Ltd. has completed the industrial and
commercial change of this matter.
3. Matters concerning foreign investment and establishment of sub-subsidiary
According to the relevant provisions of the "Company Law" and the "Articles of Association", on July 13, 2020, the company's
holding subsidiary Shenzhen Emmelle Industrial Co., Ltd (hereinafter referred to as "Emmelle Industrial") held a board meeting,
which reviewed and approved the "Proposal on the Establishment of a Holding Subsidiary for Foreign Investment", Emmelle
Industry and Shenzhen Zhenbangda Technology Co., Ltd. (hereinafter referred to as "Zhenbangda Technology") jointly funded the
establishment of Shenzhen Emmelle Cloud Technology Co., Ltd. with a registered capital of 2 million yuan, of which Emmelle
Industry contributed 1.4 million yuan and Zhenbangda Technology contributed 600,000 yuan. After the completion of the industrial
and commercial registration, Emmelle Industry holds 70% of the shares of Shenzhen Emmelle Cloud Technology Co., Ltd. and
becomes the controlling shareholder of Shenzhen Emmelle Cloud Technology Co., Ltd. As of September 30, 2020, Shenzhen
Emmelle Cloud Technology Co., Ltd. has completed the industrial and commercial registration of this matter.
43
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
Capitaliza
New
Proportio Bonus tion of Proportio
Amount shares Others Subtotal Amount
n shares public n
issued
reserve
I. Restricted shares 3,957 0.00% 3,957 0.00%
1. State-owned shares 0 0.00% 0 0.00%
2. State-owned legal person’s
0 0.00% 0 0.00%
shares
3. Other domestic shares 3,957 0.00% 3,957 0.00%
Including: Domestic legal
0 0.00% 0 0.00%
person’s shares
Domestic natural person’s
3,957 0.00% 3,957 0.00%
shares
4. Foreign shares 0 0.00% 0 0.00%
Including: Foreign legal
0 0.00% 0 0.00%
person’s shares
Foreign natural person’s
0 0.00% 0 0.00%
shares
551,343,9 551,343,9
II. Unrestricted shares 100.00% 100.00%
90 90
302,981,0 302,981,0
1. RMB Ordinary shares 54.95% 54.95%
08 08
2. Domestically listed foreign 248,362,9 248,362,9
45.05% 45.05%
shares 82 82
3. Overseas listed foreign
0 0.00% 0 0.00%
shares
4. Others 0 0.00% 0 0.00%
551,347,9 551,347,9
III. Total shares 100.00% 100.00%
47 47
Reasons for share changed
44
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changed
□ Applicable √ Not applicable
Progress of shares buy-back
□Applicable √Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of restricted shares
□ Applicable √ Not applicable
II. Securities issuance and listing
1. Security offering (without preferred stock) in Reporting Period
□ Applicable √ Not applicable
2. Changes of total shares and shareholders structure as well as explanation on changes of assets and
liability structure
□ Applicable √ Not applicable
3. Existing internal staff shares
□ Applicable √ Not applicable
45
III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
In Share
Total preference
shareholders
Total preference
Total common with voting
Total common shareholders with
stock rights recovered
stock voting rights
shareholders at at end of last
shareholders in 40,488 38,871 recovered at end of 0 0
end of last month month before
reporting reporting period (if
before annual annual report
period-end applicable) (found
report disclosed disclosed (if
in note 8)
applicable)
(found in note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Total Number of share pledged/frozen
Amount Amount
Proportio sharehold
Changes of of
Full name of Nature of n of ers at the
in report restricted un-restrict
Shareholders shareholder shares end of State of share Amount
period shares ed shares
held report
held held
period
Shenzhen
Guosheng Energy Domestic
63,508,74 63,508,74
Investment non-state-owned 11.52% 0 0
7 7
Development Co., legal person
Ltd.
UOB Koy Hian
Foreign legal 15,907,85 15,907,85
(Hong Kong) Co., 2.89% 0 0
person 0 0
Ltd.
Guosen Securities
Foreign legal 13,909,42 13,909,42
(Hong Kong) 2.52% 0 0
person 5 5
brokerage Co., Ltd.
Shenwan
Hongyuan Foreign legal
1.51% 8,303,272 1677156 0 8,303,272
Securities (Hong person
Kong) Co., Ltd.
Lhasa Xingqing
Domestic
Network
non-state-owned 1.10% 6,090,255 6090255 0 6,090,255
Technology Co.,
legal person
Ltd.
46
Domestic nature
Li Huili 0.71% 3,891,124 0 0 3,891,124
person
LI SHERYN Foreign natural
0.63% 3,480,187 3480187 0 3,480,187
ZHAN MING person
Domestic nature
Xu Hongbo 0.58% 3,187,519 100 0 3,187,519
person
Domestic nature
Ge Zhiqiong 0.58% 3,177,952 316400 0 3,177,952
person
CMS Hong Kong State-owned legal
0.56% 3,070,676 111988 0 3,070,676
Co., Ltd person
Strategy investors or general
corporation comes top 10 common
N/A
stock shareholders due to rights issue
(if applicable) (see note 3)
Li Huili, spouse of the Ji Hanfei, the actual controller of he Company- Shenzhen Guosheng
Energy Investment Development Co., Ltd., holding B-share of the Company on behalf of
Explanation on associated relationship Shenzhen Guosheng Energy Investment Development Co., Ltd., beyond that, the Company
among the aforesaid shareholders has no idea of whether other circulated shareholders belong to concerted action persons
ruled in the Administration Norms for Information Disclosure of Change on Shareholding
of Shareholders of Listed Companies.
Description of the above shareholders
in relation to delegate/entrusted voting
N/A
rights and abstention from voting
rights.
Particular about top ten shareholders with un-restrict shares held
Type of shares
Shareholders’ name Amount of un-restrict shares held at Period-end
Type Amount
Shenzhen Guosheng Energy RMB common
63,508,747 63,508,747
Investment Development Co., Ltd. shares
Domestically
UOB Koy Hian (Hong Kong) Co., Ltd. 15,907,850 listed foreign 15,907,850
shares
Domestically
Guosen Securities (Hong Kong)
13,909,425 listed foreign 13,909,425
brokerage Co., Ltd.
shares
Domestically
Shenwan Hongyuan Securities (Hong
8,303,272 listed foreign 8,303,272
Kong) Co., Ltd.
shares
Lhasa Xingqing Network Technology 6,090,255 RMB common 6,090,255
47
Co., Ltd. shares
Domestically
Li Huili 3,891,124 listed foreign 3,891,124
shares
Domestically
LI SHERYN ZHAN MING 3,480,187 listed foreign 3,480,187
shares
Domestically
Xu Hongbo 3,187,519 listed foreign 3,187,519
shares
RMB common
691,300
shares
Ge Zhiqiong 3,177,952 Domestically
listed foreign 2,486,652
shares
Domestically
CMS Hong Kong Co., Ltd. 3,070,676 listed foreign 3,070,676
shares
Li Huili, spouse of the Ji Hanfei, the actual controller of he Company- Shenzhen Guosheng
Expiation on associated relationship or
Energy Investment Development Co., Ltd., holding B-share of the Company on behalf of
consistent actors within the top 10
Shenzhen Guosheng Energy Investment Development Co., Ltd., beyond that, the Company
un-restrict shareholders and between
has no idea of whether other circulated shareholders belong to concerted action persons
top 10 un-restrict shareholders and top
ruled in the Administration Norms for Information Disclosure of Change on Shareholding
10 shareholders
of Shareholders of Listed Companies.
Explanation on top 10 shareholders
involving margin business (if N/A
applicable) (see note 4)
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no
buy-back agreement dealing in reporting period.
2. Controlling shareholder of the Company
Nature of controlling shareholders: No controlling subject
Type of controlling shareholders: Non-existent
The Company does not have the controlling shareholder.
On 21 February 2017, we received a Letter of “Explanation on Relevant Event of CBC” from Shenzhen Guosheng Energy
Investment Development Co., Ltd. the letter said: since obtained controlling rights of the Shenzhen Guosheng Energy Investment
Development Co., Ltd. (hereinafter referred to as Guosheng Energy) on 3 Jan. 2011, in view of Ji Hanfei is the first majority
48
shareholder and largest creditor of CBC, and CBC facing a serious debt crisis, Ji Hanfei initiative seeking an actual controller of
CBC, by actively participate the shareholders general meeting of CBC, showing major influence on CBC for achieving actually
controls of the Company in purpose of resolving the debt crisis.
On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng Energy Investment and
Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the Company as the Company
couldn’t pay off the matured debts and was seriously insolvent. On 12th, Oct., 2012, Shenzhen Municipal Intermediate People's Court
ruled to accept the application proposed by Guosheng Energy according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil
ruling. In second half year of 2013, on the basis of the investor interest adjustment scheme deliberated and approved by creditor’s
meeting and investors’ conference, Shenzhen Intermediate People’s Court approved the reorganization plan for CBC, the
reorganization plan of CBC completed on 27 December 2013 and close the bankruptcy proceedings of CBC. As a largest majority
shareholder and largest creditor of the Company, Guosheng Energy vote in favor on creditor’s meeting and investors’ conference, in
respect of the investor interest adjustment scheme, and provided 5.39 million Yuan to CBC for claims settlement and maintain the
assets of main business of CBC. Debts of the CBC solved by reorganization, net assets of CBC turns to positive value, the main
business of bicycle maintained and achieved a steady development.
Currently, CBC is planning a private placement for business promotion and transformation, optimize asset structure, further to
strengthen the Company and sustainable ability in development. Taking into account the debt problem of CBC has been resolved, the
Company needs supports from all over the shareholders, and based on the actual condition of development of Guosheng Energy and
share-holding ratio, Ji Hanfei and Guosheng Energy decided to change the actually controller state to general investment, that is Ji
Hanfei and Guosheng Energy, will not participate in the operation management plan of CBC in future, and they have no plans to
seeking an actual controlling rights of CBC in next 12 months either
The Shenzhen Guosheng Energy Investment Development will hold stock of the CBC and exercise shareholders’ rights as a common
investor.
Changes of controlling shareholders in reporting period
□Applicable √Not applicable
Controlling shareholders of the Company has no changes in the period.
3. Actual controller and persons acting in concert of the Company
Nature of actual controller: No actual controller
Type of actual controller: Non-existent
The company does not have the actual controller.
(i) Facts and reasons for the company's determination of the actual controller's alteration
On February 20, 2017, Ji Hanfei and Guosheng Energy made an “Explanation” to abandon the actual control of the Company, after Ji
Hanfei made the declaration to abandon the actual control of the Company, the actual controller of the Company changed from Ji
Hanfei to no actual control, the specific facts and reasons are as follows:
1. The voting rights of Ji Hanfei to actually control the shares of the Company
According to the “Security Holder Roster” issued by China Securities Depository and Clearing Co., Ltd., Shenzhen Branch and the
documents publicly disclosed by Shenzhen China Bicycle, up to December 31, 2016, Ji Hanfei held 63,508,747 shares of the
Company’s A-Shares through Guosheng Energy, and his spouse, Li Huili, held 3,891,124 shares of the Company’s B-Shares, so Ji
Hanfei totally controlled 67,399,871 shares of the Company’s voting shares, accounting for 12.22% of the total number of shares of
49
the Company. Ji Hanfei actually controlled no more than 30.00% of the Company’s voting rights and had no control over the
Company's general meeting of shareholders.
2. Ji Hanfei’s control to the Company's board of directors
According to the Resolution Announcement of the 18th session of 8th Board of Directors and the Resolution Announcement of the
First Extraordinary General Meeting of 2013 publicly disclosed by the Company and confirmed by the Company and Guosheng
Energy, the directors of the current board of directors of the Company should be nominated by the eighth session of board of
directors, Guosheng Energy did not nominate the current board of directors for the Company.
Therefore, Ji Hanfei has not restructured the board of directors of the Company by controlling the Company’s voting shares after
obtaining the control power of Guosheng Energy, and has not actually dominated over half of the members of the board of directors
of the Company.
According to the Resolution Announcement of the 24th session of the 9th Board of Directors announced on April 27, 2017 by the
Company, the ninth session of board of directors of the Company reviewed and passed the following proposals concerning the
candidates for the tenth session of board of directors:
(1) Passed the Proposal on Nominating Candidates for Directors of the Tenth Session of Board of Directors, agreed the current board
of directors to nominate Mr. Li Hai, Mr. Yao Zhengwang, Mr. Cao Fang, Mr. Yang Fenbo, Mr. Sun Longlong and Mr. Zhong Hua as
the candidates for the directors of the tenth session of board of directors of the company and participate in the election of the general
shareholders’ meeting as the term of office of the director of the 9th session of board of directors of the company has expired.
(2)
(2) Passed the Proposal on Nominating Candidates for Independent Directors of the Tenth Session of Board of Directors, agreed the
current board of directors to nominate Mr. Song Xishun, Mr. Zhang Zhigao and Ms. Yang Hao as the candidates for the independent
directors of the tenth session of board of directors of the company as the term of office of the director of the 9 th session of board of
directors of the company has expired, and submitted the proposal to the Shenzhen Stock Exchange for review, the candidates can
only participate in the election of the general shareholders’ meeting when there is no objection to the review.
According to the Company’s explanation and the announcement document of the 24 th session of 9th board of directors of the
Company, the candidates for the tenth session of board of directors should be nominated by the ninth session of board of directors,
the Company did not receive the nomination of candidates for the tenth session of board of directors from Guosheng Energy.
According to the explanation of the Company and Guosheng Energy and the review to the resume of the director candidates
announced by the ninth session of board of directors of the Company, in addition to Yao Zhengwang, serving as a supervisor of
Guojun Energy, the above mentioned director candidates had no related relationships with Guosheng Energy and Ji Hanfei.
In conclusion, even the stockholders’ meeting of the Company considered and agreed the above-mentioned director candidate to
serve as the directors of the tenth session of the board of directors of the Company, Ji Hanfei and Guosheng Energy had not actually
dominated over half of the members of the tenth session of board of directors of the Company.
3. Ji Hanfei’s significant influence on the general meeting of shareholders of the Company
On October 12, 2012, the Shenzhen Intermediate People's Court issued the “Civil Ruling” of “(2012) SZFPZ No. 30” to accept the
application for the reorganization of the Company by Guosheng Energy. On December 27, 2013, Shenzhen Intermediate People's
Court issued the “Civil Ruling” of “(2012) SZFPZ No. 30-10”, which ruled that the implementation of the Company’s reorganization
plan was completed and the Company’s bankruptcy proceedings ended. According to the explanation of Guosheng Energy and the
50
inspection of bankruptcy and restructuring documents, Guosheng Energy had actively participated in the meeting of creditors for the
Company’s bankruptcy and reorganization and had provided interest-free loan support to the Company during the bankruptcy and
reorganization, which had a significant influence on the Company’s general meeting of shareholders.
On February 20, 2017, Ji Hanfei and Guosheng Energy issued the “Explanation”: “Since Ji Hanfei obtained the control power of
Guoji Energy on January 3, 2011, in view of the fact that it was the Company’s largest shareholder and largest creditor and the
Company faced serious debt crisis for a long time, Ji Hanfei actively sought the actual controller status of the Company and exerted a
significant influence on the Company by actively participating in the Company’s general meeting of shareholders so as to realize the
actual control of the Company and then strive to promote and solve the Company's debt crisis properly."
Therefore, from January 3, 2011 to February 19, 2017, Ji Hanfei had a subjective purpose for actually controlling the Company.
After Ji Hanfei made a clear declaration on Feb. 20, 2017 to abandon the actual control of the Company, Ji Hanfei did not
subjectively attempt to influence the general meeting of stockholders of the Company by seeking the actual control rights.
Objectively, the Company’s voting rights dominated by Ji Hanfei did not exceed 30.00% and he did not nominate more than half of
the directors of the Company’s board of directors, Ji Hanfei could not effectively control the Company’s general meeting of
shareholders and the board of directors.
According to the “Announcement on the Resolutions of the 24th session of 9th Board of Directors” announced by the Company on
April 27, 2017 and confirmed by the Company, Ji Hanfei and Guosheng Energy, Ji Hanfei and Guosheng Energy didn’t not nominate
any candidate for the directors of the tenth session of board of directors to the Company after Ji Hanfei and Guosheng Energy made
the declaration to abandon the control power.
In view of the above, the Company considered that the proportion of the Company’s shares actually controlled by Ji Hanfei was
relatively low, which was not sufficient to control the general meeting of shareholders or make a significant impact on the general
meeting of shareholders, and he had promised to give up the right of control to the company, the Company has no actual controller
since February 20, 2017.
The sponsor institutions and law firms engaged by the company for the non-public offering of shares have checked this issue and
made clear opinions to support.
Whether has the shareholder with over 10% stock held in ultimate controlling standards or not
√ Yes □ No
Legal person
Share holding in ultimate control standards
Changes of actual controller in reporting period
□Applicable √ Not applicable
Actual controller of the Company has no changes in the period
Property right and controlling relationship between the actual controller and the Company is as follow:
Actual controller controlling the Company by entrust or other assets management
□ Applicable √ Not applicable
51
4. Particulars about other legal person shareholders with over 10% shares held
√Applicable □ Not applicable
Legal person/person
Shareholder Date of foundation Organization code Main operation business
in charge of the unit
Industry development,
domestic commerce,
Shenzhen Guosheng Energy
materials supply and sale
Investment Development Co., Ji Hanfei April 26, 2005 91440300774115792
(excluding specially run,
Ltd.
controlled and sold
merchandises)
5. Limitation and reducing the holdings of shares of controlling shareholders, actual controllers,
restructuring side and other commitment subjects
□ Applicable √ Not applicable
52
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period.
53
Section VIII. Convertible Bonds
□ Applicable √ Not applicable
The Company had no convertible bonds in the Period.
54
Section IX. Particulars about Directors, Supervisors, Senior
Executives and Employees
I. Changes of shares held by directors, supervisors and senior executives
Amount Amount
Shares Shares
Start of shares of shares
End date held at Other held at
Working dated of increased decreased
Name Title Sex Age of office period-be changes period-en
status office in this in this
term gin (share) d
term period period
(Share) (Share)
(Share) (Share)
Currently August June 28,
Li Hai Director M 52 0 0 0 0 0
in office 26, 2010 2020
Currently Septembe June 28,
Li Hai President M 52 0 0 0 0 0
in office r 26, 2013 2020
Currently April 15, June 28,
Li Hai Chairman M 52 0 0 0 0 0
in office 2015 2020
Yao
Currently August June 28,
Zhengwa Director M 46 0 0 0 0 0
in office 26, 2010 2020
ng
Currently August June 28,
Cao Fang Director M 47 0 0 0 0 0
in office 26, 2010 2020
Yang Currently June 30, June 28,
Director M 64 0 0 0 0 0
Fenbo in office 2006 2020
Sun Currently June 29, June 28,
Director M 48 0 0 0 0 0
Longlong in office 2017 2020
Sun Secretary Currently May 17, June 28,
M 48 0 0 0 0 0
Longlong of Board in office 2012 2020
Sun Currently May 22, June 28,
CFO M 48 0 0 0 0 0
Longlong in office 2017 2020
Zhong Currently June 29, June 28,
Director M 57 0 0 0 0 0
Hua in office 2017 2020
Independ
Currently June 29, June 28,
Yang Lan ent F 52 0 0 0 0 0
in office 2017 2020
director
Independ
Song Currently M 58 June 29, June 28, 0 0 0 0 0
ent
55
Xishun director in office 2017 2020
Independ
Zhang Currently June 29, June 28,
ent M 56 0 0 0 0 0
Zhigao in office 2017 2020
director
The
convener
of the Currently June 27, February
Li Xiang M 47 0 0 0 0 0
board of in office 2014 12, 2021
superviso
rs
Zheng
Superviso Currently June 27, February
Zhonghua M 59 5,276 0 0 0 5,276
r in office 2011 12, 2021
n
Staff
Currently May 22, February
Li Jialin Superviso M 60 0 0 0 0 0
in office 2014 12, 2021
r
Total -- -- -- -- -- -- 5,276 0 0 0 5,276
II. Changes of directors, supervisors and senior executives
□ Applicable √ Not applicable
III. Post-holding
Professional background, major working experience and present main responsibilities in Company of directors,
supervisors and senior executive
Mr. Li Hai, born in 1969, graduated from Economic department of Shenzhen University in major of accounting;
he took the turns of deputy manager of finance department, chief supervisor associate of finance department,
secretary of the Board and vice president, etc. of the Company, and now he serves as chairman, legal
representative and president of the Company.
Mr. Yao Zhengwang, born in 1975, with bachelor degree of law, successively took the post of Supervisor of
Supervision Office, Deputy Manager of Sales Department, and Deputy Manager of Legal Affairs Department of
Shenzhen Guomin Investment Development Co. Ltd. and deputy general manager of Administration Center of
Compliant Risk Control, as well as director, secretary of the Board and convener of supervisory committee of
CBC; now he serves as director of the Company and Leshan City Commercial Bank Co., Ltd..
Mr. Cao Fang, born in 1974, master degree; since May of 2007, he took post of item manager of marketing and
management department in headquarter of Life Insurance, associate of general manager of marketing and
management headquarter as well as general manager of market and business department, he acted as member of
56
planning team of Life Insurance Branch in Guangdong. And subsequently served in strategy and development
center, Office of the Chairman, Supervision office; he serves as deputy GM of Shanghai Branch of Life Insurance
since March 2012 and person in charge of the sales management center in Funde Insurance Holding
Mr. Yang Fenbo, born in 1957, China senior economist with master degree of MBA and engineer, held the position
of minister of development department, concurrently minister of science and technology department, assistant
general manager, assistant to chairman, deputy chief engineer and chief engineer at Shenzhen Lionda Group; took
the chairman and concurrently general manager of Guangdong Sunrise Holding Co., Ltd.; now, he is the chairman
of Shenzhen Liona Group Co., Ltd. and Shenzhen Qianhai Fu Rong Asset Management Co., Ltd.
Mr. Sun Longlong, born in 1973, graduated from Shanghai University of Finance and Economics in 1995 with a
bachelor degree, a bachelor of Economics. He successively worked as financial affairs in Shenzhen Qiongjiao
Industry Co., Ltd. and Shenzhen Solar Pipe Co., Ltd., he worked in the Company since May 1999, and
successively served as Deputy Manager of financial department, Manager, manager of comprehensive
management department, manager of enterprise management department, now he serves as Director, CFO and
secretary of the Board of the Company.
Mr. Zhonghua, born in 1964, undergraduate college, has an engineer title. He worked in the period since
December 1991, and have successively held the posts of director of the quality management dept., director of
testing center, deputy GM and GM of the quality management dept., now he serves as director of the Company,
director of OEM Management and Manager of Quality Control Department, and Chairman and General Manager
of Shenzhen EMMELLE Industrial Co., Ltd.
Ms. Yang Lan, born in 1969, is a master’s degree holder, a certified tax accountant, a certified appraiser, a
certified public accountant, and an auditor. She successively served as a member of Guiyang Audit Bureau, the
head of Zhuhai BDO China Shu Lun Pan Certified Public Accountants, the head of Shanghai Lixin Changjiang
Certified Public Accountants, Zhuhai Branch, the head of Guangdong Lixin Changjiang Certified Public
Accountants, and the senior manager of Pan-China Certified Public Accountants (LLP), Guangdong Branch;
Investment Director of Guangzhou Securities Innovation Investment Company, deputy head of Guangdong
Pujinxinghua Tax Agent Co., Ltd., and the deputy head of Guangdong Lixin Changjiang Certified Public
Accountants. Since June 29, 2017, she has served as an independent director of the company.
Mr. Song Xishun, born in 1963, holds a master’s degree in Chinese from Xiamen University. He once served as a
teacher of PLA University of Foreign Language, took office at Public Security Bureau of Xiamen City, Xiamen
City Bureau of Culture, served as the deputy dean of Cultural Industry School of Xiamen University of
Technology and an arbitrator of Xiamen City Personnel Dispute Arbitration Committee. He has been teaching at
Xiamen University of Technology since 2003, and currently serves as Independent director of the company, the
deputy dean (worked since January 2013, part-time) of Cultural Development Institute of Xiamen University of
Technology, a lawyer (part-time) of Zhong Yin (Xiamen) Law Firm, an independent director (part-time) of Dehua
Hengyi Art Ceramics Co., Ltd and Ankee Food Co., Ltd., and the vice chairman (part-time) of Xiamen Language
57
Association.
Mr. Zhang Zhigao, born in 1965, is a bachelor of laws from Fudan University, a certified public accountant and a
certified appraiser; he has been serving as a partner lawyer of Shanghai Xuan Lun Law Firm since 2007. He used
to be a technician of Shanghai Electrical Machinery Plant, a lecturer of Shanghai Lixin University of Commerce,
and a partner lawyer of Shanghai Alshine Law Firm; served as a member of the twelfth session of CPPCC of
Xuhui District, Shanghai, an independent director of Shanghai Kai Kai Industrial Co., Ltd., an independent
director of Shanghai Norcent Technology Development Co., Ltd., and an independent director of Shanghai
Xingye Real Estate Co., Ltd.; he currently serves as a supervisor (part-time) of Shanghai Lingqing Venture
Capital Investment Management Co., Ltd., a director (part-time) of Shanghai Chengxi Asset Management Co.,
Ltd., and a director (part-time) of Zhongcheng Village Bank Co., Ltd. of Kuiwen District, Weifang City .
Mr. Li Xiang, born in 1974, holds a master’s degree. He once served as the secretary of the party committee, the
director of the organization department of the party committee, and the manager of the human resources
department at Pacific Life Jiangxi Branch. Since March 2008, he has been serving as the deputy general manager
of Shenzhen Guosheng Energy Investment Development Co., Ltd.
Mr. Zheng Zhonghuan, born in 1962, holds a bachelor’s degree and an engineer title. He once worked at
Shenzhen Light Textile Industry Company and Shenzhen Light Industry Company. Since October 1985, he has
been working at Shenzhen China Bicycle Company (Holdings) Limited, and once served as the deputy manager
and manager of planning department, the manager of material department, and the manager of manufacturing
department; and he serves as a supervisor of the Company, Director of Lithium Battery and New Materials
Business Department, and Director of holding subsidiary Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd.
Mr. Li Jialin, born in 1961, a master degree with a title of senior engineer. He successively served as senior
engineer of the Company in electrical & mechanical engineering division, GM assistant of Hunan Guangdian
Motorcycle Company, manager of the Company in H&R Dept. now he serves as Staff representative supervisor,
commissioner of comprehensive office of the Company and person in charge of the labor union.
Post-holding in shareholder’s unit
√Applicable □ Not applicable
Received
Position in
Start dated of End date of remuneration from
Name Name of shareholder’s unit shareholder’s
office term office term shareholder’s unit
unit n
(Y/N)
Yao Shenzhen Guosheng Energy Investment October 09,
Supervisor y
Zhengwang Development Co., Ltd. 2006
Shenzhen Guosheng Energy Investment Deputy
Li Xiang March 1, 2008 Y
Development Co., Ltd. General
58
Manager
Post-holding in other unit
√Applicable □ Not applicable
Received
Position in Start dated of End date of office remuneration
Name Name of other units
other unit office term term from other unit
(Y/N)
January 10,
Yao Zhengwang Leshan Commercial Bank Co., Ltd. Supervisor January 9, 2022 Y
2019
Funde Insurance Holdings sales Person in
Cao Fang June 1, 2016 Y
management center charge
Shenzhen Xinsen Jewelry and Gold Supply August 23,
Sun Longlong Chairman N
Chain Co., Ltd. 2019
Chairman and
Shenzhen EMMELLE Cloud Technology
Zhong Hua General July 21, 2020 N
Co., Ltd.
Manager
Senior September 12,
Yang Fenbo Shenzhen Laiyingda Group Co., Ltd. Y
consultant 2017
Guangdong Lixin Jiazhou Accounting Firm Vice director April 1, 2001 Y
Independent
Huadong Medicine Co., Ltd. June 9, 2019 June 5, 2022 Y
Yang Lan Director
Independent November 1,
Shenzhen Zhongtian Hardcover Co., Ltd. October 30, 2022 Y
Director 2019
Vice September 1,
Xiamen University of Technology Y
professor 2003
Part-time September 1,
Song Xishun Zhong Yin (Xiamen) Law Firm Y
lawyer 2003
Independent December 30, December 29,
Ankee Food Co., Ltd Y
director 2020 2023
Partner December 1,
SHULUN & PARTNERS (SHANGHAI) Y
lawyer 2007
Zhonggeng Fund Management Co., Ltd. Director July 21, 2009 N
Shanghai Chengxi Asset Management Co.,
Director May 10, 2010 N
Zhang Zhigao Ltd.
Zhongcheng Villiage Bank Co., Ltd. of December 31,
Director Y
Kuiwen District, Weifang City 2013
Independent
China Resources Micro April 24, 2019 April 23, 2022 Y
director
59
Zheng Shenzhen Xinsen Jewelry and Gold Supply August 23,
Director N
Zhonghuan Chain Co., Ltd. 2019
Punishment of securities regulatory authority in recent three years to the company’s current and outgoing directors, supervisors and
senior management during the reporting period
□ Applicable √ Not applicable
IV. Remuneration for directors, supervisors and senior executives
Decision-making procedures, recognition basis and payment for directors, supervisors and senior executives
Decision procedure of
remuneration of directors, According to relevant rules of the Article of Association, the general meeting of shareholders decides
supervisors, senior remuneration of directors and supervisors. The Board of Directors decides senior management’s.
management
Confirmation basis of The Company refers to the position rank and comprehensive industry level. And then general meeting of
remuneration of directors, shareholders approves compensation standard and allowance of independent directors. According to the
supervisors and senior "Interim Measures to Annual Performance Assessment of Executives" and performance evaluation
management standards the Company issues annual performance salary.
Actual payment of The Company strictly paid remuneration of directors, supervisors and senior management accordingly
remuneration of directors, with decision procedure and confirmation basis. Total payment for remuneration of directors,
supervisors and senior supervisors and supervisors amounted to 1.6004 million yuan from January to December in 2019.
management
Remuneration for directors, supervisors and senior executives in reporting period
In 10 thousand Yuan
Total Whether
remuneration remuneration
Post-holding
Name Title Sex Age obtained from the obtained from
status
Company (before related party of
taxes) the Company
Currently in
Li Hai Director M 52 64.55 N
office
Currently in
Sun Longlong Director M 48 26.08 N
office
Currently in
Zhong Hua Director M 57 19.84 N
office
Zheng Currently in
Supervisor M 59 17.11 N
Zhonghuan office
Currently in
Li Jialin Staff Supervisor M 60 18.18 N
office
Yang Lan Independent F 52 Currently in 4.76 N
60
director office
Independent Currently in
Song Xishun M 58 4.76 N
director office
Independent Currently in
Zhang Zhigao M 56 4.76 N
director office
Total -- -- -- -- 160.04 --
Delegated equity incentive for directors, supervisors and senior executives in reporting period
□ Applicable √ Not applicable
V. Particulars of workforce
1. Number of Employees, Professional composition, Education background
Employee in-post of the parent Company (people) 44
Employee in-post of main Subsidiaries (people) 21
The total number of current employees (people) 65
The total number of current employees to receive pay (people) 65
Retired employee’ s expenses borne by the parent Company and
0
main Subsidiaries (people)
Professional composition
Category of professional composition Numbers of professional composition (people)
Production personnel 14
Sales personnel 9
Technical personnel 24
Financial personnel 8
Administrative personnel 10
Total 65
Education background
Category of education background Numbers (people)
Undergraduate 25
Junior college 21
Below junior college 19
Total 65
2. Remuneration Policy
Formulated the remuneration policy according to the position title and comprehensive industry salary standards
61
3. Training programs
Formulated the remuneration policy according to the position title and comprehensive industry salary standards
4. Labor outsourcing
□ Applicable√ Not applicable
62
Section X. Corporate Governance
I. Corporate governance of the Company
During the reporting period, the Company was strictly in accordance with the "Company Law", "Securities Law" as well as "Listing
Corporation Management Standards" and other relevant laws, regulations and normative documents. We combined the actual
situation, constantly improved the corporate governance structure, and strive to build a modern enterprise system. Operation,
assembling and holding of general meeting of shareholders, the Board of Directors and board of supervisors were strictly with
relevant rules of procedure. Thus we protected interests of the Company. The actual situation of corporate governance structure was
in accordance with the release of normative documents about the listing Corporation management rules from China Securities
Regulatory Commission.
Is there any difference between the actual condition of corporate governance and relevant regulations about corporate governance for
listed company from CSRC?
□Yes √ No
There are no differences between the actual condition of corporate governance and relevant regulations about corporate governance
for listed company from CSRC.
II. Independent of the Company relative to controlling shareholders’ in aspect of businesses,
personnel, assets, organization and finance
The Company separate business, personnel, assets, institute and finance with largest shareholder or other related parties, owes
independent and completed self-operation ability.
III. Horizontal competition
□ Applicable √ Not applicable
IV. In the report period, the Company held annual shareholders’ general meeting and
extraordinary shareholders’ general meeting
1. Annual Shareholders’ General Meeting in the report period
Ratio of investor
Session of meeting Type Date Date of disclosure Index of disclosure
participation
Notice of Resolution
of First
First Extraordinary Extraordinary
Extraordinary
shareholders general shareholders general 12.55% May 15, 2020 May 15, 2020
shareholders general
meeting 2020 meeting
meeting 2020 (No.:
2020021)
63
Notice of Resolution
Annual General Annual General of Annual General
12.09% June 30, 2020 June 30, 2020
Meeting 2019 Meeting Meeting 2020 (No.:
2020028)
Notice of Resolution
Second of Second
Extraordinary
Extraordinary Extraordinary
shareholders general 12.29% August 21, 2020 August 21, 2020
shareholders general shareholders general
meeting
meeting 2020 meeting 2020 (No.:
2020038)
Notice of Resolution
of Third
Third Extraordinary Extraordinary
Extraordinary
shareholders general shareholders general 13.54% December 30, 2020 December 30, 2020
shareholders general
meeting 2020 meeting
meeting 2020 (No.:
2020059)
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
V. Responsibility performance of independent directors
1. The attending of independent directors to Board meetings and general meeting
The attending of independent directors to Board Meeting and general meeting
Times of
Times of Absent the
attending Times of Times of
Name of Board meeting Times of Times of Board Meeting
Board meeting Board meeting attending
independent supposed to Board meeting Board meeting for the second
by entrusted shareholding
director attend in the Presence Absence time in a row
communicatio presence meeting
report period (Y/N)
n
Yang Lan 10 0 10 0 0N 2
Song Xishun 10 0 10 0 0N 1
Zhang Zhigao 10 0 10 0 0N 1
Explanation of absent the Board Meeting for the second time in a row
Nil
2. Objection for relevant events from independent directors
Independent directors come up with objection about Company’s relevant matters
64
□Yes √No
Independent directors have no objections for relevant events in reporting period.
3. Other explanation about responsibility performance of independent directors
The opinions from independent directors have been adopted
√ Yes □ No
Explanation on advice that accepted/not accepted from independent directors
Nil
VI. Duty performance of the special committees under the board during the reporting period
Board of directors set up audit commission and remuneration and appraisal commission taking responsibility based on Governance
Rules of Listed Company, Article of Association as well as Procedure Rules of Board of Directors and other duties and rights various
departments endowed.
As for compiling and audit on annual financial report were checked and communicated by Audit commission in accordance with
rules of Working Procedure of Annual Report of Audit Commission, and they submitted decision to board of directors for approval.
Remuneration and appraisal commission of the Company, in reporting period, according to the “Interim Measure on Assessment
Reward of Annual Performance for Senior Executives”, carry out evaluation on the management team members for operation works
in 2020.
VII. Works from Supervisory Committee
The Company has risks in reporting period that found in supervisory activity from supervisory committee
□ Yes √ No
Supervisory committee has no objection about supervision events in reporting period.
VIII. Examination and incentives of senior management
The Company initially established the standard and incentive mechanism for open and transparent performance evaluation on
directors, supervisors and management layer. The appointment of senior management staff was open and transparent, in accordance
with provisions of the law.
IX. Internal Control
1. Details of major defects in IC appraisal report that found in reporting period
□Yes √ No
65
2. Appraisal Report of Internal Control
Disclosure date of full internal control
April 27, 2021
evaluation report
Disclosure index of full internal control
Appraisal Report of Internal Control 2020 of CBC released on Juchao website
evaluation report
The ratio of the total assets of units
included in the scope of evaluation
accounting for the total assets on the 100.00%
company's consolidated financial
statements
The ratio of the operating income of units
included in the scope of evaluation
accounting for the operating income on the 100.00%
company's consolidated financial
statements
Defects Evaluation Standards
Category Financial Reports Non-financial Reports
Material defect: (1) inefficiency of Material defect: (1) inefficiency of
environment control; (2) inefficiency of environment control; (2) inefficiency of
internal supervision; (3) direct impact on internal supervision; (3) direct impact on
major mistakes of investment decisions; (4) major mistakes of investment decisions;
directly make the significant error in the (4) directly make the significant error in
financial statements; (5) violation of the the financial statements; (5) violation of
laws, regulations, rules and other normative the laws, regulations, rules and other
documents, resulting in investigation of the normative documents, resulting in
central government and regulatory agencies, investigation of the central government
and being sentenced to a fine or penalty, and regulatory agencies, and being
being restricted industry exit, canceling sentenced to a fine or penalty, being
business license and being forced the closure restricted industry exit, canceling
Qualitative criteria
of etc. Major defect: (1) indirect impact on business license and being forced the
major mistakes of investment decisions; (2) closure of etc. Major defect: (1) indirect
indirectly make the significant error in the impact on major mistakes of investment
financial statements; (3) Lack of important decisions; (2) indirectly make the
system; (4) violation of the laws, regulations, significant error in the financial
rules and other normative documents, statements; (3) Lack of important
resulting in investigation of the local system; (4) violation of the laws,
government and regulatory agencies, and regulations, rules and other normative
being sentenced to a fine or penalty, and documents, resulting in investigation of
being ordered to suspend business for the local government and regulatory
rectification and cause the Company’s agencies, and being sentenced to a fine
business stop of etc. General defect: other or penalty, and being ordered to suspend
66
control defect besides material defect and business for rectification and cause the
major defect. Company’s business stop of etc.
General defect: other control defect
besides material defect and major defect.
1. Potential loss or potential error of total
1. Potential loss or potential error of total profit: (1) General defect: less than or
profit: (1) General defect: less than or equal equal to pre-tax total profit of 3%, (2)
to pre-tax total profit of 3%, (2) Major Major defect: more than pre-tax total
defect: more than pre-tax total profit of profit of 3%( and absolute amount more
3%( and absolute amount more than RMB than RMB 0.5 million), (3) Material
0.5 million), (3) Material defect:: more than defect:: more than 5% of pre-tax total
5% of pre-tax total profit and absolute profit and absolute amount more than
amount more than RMB 1 million; 2. RMB 1 million; 2. Potential loss or
Potential loss or potential error of operating potential error of operating income: (1)
income: (1) General defect: less than or General defect: less than or equal to
Quantitative standard equal to operating income of 1%, (2) Major operating income of 1%, (2) Major
defect: more than 1% of operating income defect: more than 1% of operating
and less than or equal to 3% of operation income and less than or equal to 3% of
income, (3) Material defect:: more than 3% operation income, (3) Material defect::
of operating income; 3. Potential loss or more than 3% of operating income; 3.
potential error of total assets: (1) General Potential loss or potential error of total
defect: less than or equal to 1% of total assets: (1) General defect: less than or
assets, (2) Major defect: more than 1% of equal to 1% of total assets, (2) Major
total profit and less than or equal to 3% of defect: more than 1% of total profit and
total profit, (3) Material defect:: more than less than or equal to 3% of total profit,
3% of total profit (3) Material defect:: more than 3% of
total profit
Amount of significant defects in financial
0
reports
Amount of significant defects in
0
non-financial reports
Amount of important defects in financial
0
reports
Amount of important defects in
0
non-financial reports
X. Auditing report of internal control
√Applicable □ Not applicable
Deliberations in Audit Report of Internal Control
We considers that China Bicycle Company (Holdings) Limited, in line with Basic Norms of Internal Control and relevant
regulations, shows an effectiveness internal control of financial report in all major aspects dated 31 December 2020.
67
Disclosure details of audit report of
Disclosed
internal control
Disclosure date of audit report of
April 27, 2021
internal control (full-text)
Opinion type of auditing report of
Standard unqualified
IC
Whether the non-financial report
No
had major defects
Carried out modified opinion for internal control audit report from CPA
□Yes √ No
The internal control audit report, issued by CPA, has concerted opinion with self-evaluation report, issued from the Board
√ Yes □ No
68
Section XI. Corporation Bonds
Whether or not the Company public offering corporation bonds in stock exchange, which undue or without payment in full at
maturity on the approval date for annual report disclosed
No
69
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Section XII. Financial Report
I. Audit report
An unqualified audit report with significant uncertainty of going
Type of audit opinion
concern
Signing date of audit report April 23, 2021
Name of audit institute Baker Tilly China CPA (LLP)
Name of CPA Chen Zhigang, Zhang Lei
Text of auditor’s Report
II. Financial statement
Unit in note of financial statement refers to CNY: RMB (Yuan)
To all shareholders of Shenzhen China Bicycle Company (Holdings) Limited
I. Auditing opinions
We have audited the financial statement under the name of Shenzhen China Bicycle Company (Holdings) Limited
(hereinafter referred to as CBC), including the consolidated and parent Company’s balance sheet of 31 December
2020 and profit statement, and cash flow statement, and statement on changes of shareholders’ equity for the year
ended, and notes to the financial statements for the year ended.
In our opinion, the Company’s financial statements have been prepared in accordance with the Enterprises
Accounting Standards and Enterprises Accounting System, and they fairly present the financial status of the
Company and of its parent company as of 31 December 2020 and its operation results and cash flows for the year
ended.
II. Basis of opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Our
responsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of the
Financial Statements” section of the auditor’s report. We are independent of the Company in accordance with the
Certified Public Accountants of China’s Code of Ethics for Professional Accountants, and we have fulfilled our
other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
III. Major uncertainty with continuous operation concerned
We bring to the attention of the users of the financial statements, as stated in note XV of the financial statements
under the name of CBC, China Bicycle Company has completed implementation of the restructuring plan dated
27 December 2013 and terminate the bankruptcy proceedings, in which the condition of introduction of investors
has been set out with a view to restoring its ability to continue as a going concern and its sustainable profitability
through asset restructuring. Up to the reporting date of auditing, the Company has not introduced any investor,
and maintain the ability of CBC to continue the business before the injection of the assets by only retaining the
traditional business of selling electric bicycles and developing and selling new business such as lithium batteries
and jewelry & gold. Considering that the net profit attributable to parent company for year of 2020 is 3.9846
million yuan, only turning a loss into a profit, these events or circumstances indicate that there are significant
uncertainties that may cause significant doubts about the sustainable operation ability of China Bicycle Company.
This matter does not affect the published audit opinion.
IV. Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters. The key audit matter we identified is as follows:
Key audit matters Audit address
1. Revenue recognized
CBC mainly engages in the sales of bicycles, electric vehicles, 1. Understand, test and evaluate the effectiveness of the internal
relevant materials and jewelry accessories. In 2020, the main control design and operation related to the company’s sales and
business income of Shenzhen China Bicycle Company was collections.
108,929,796.13 yuan, all of which were generated from domestic
2. Check the relevant provisions of customer contracts, and pay
sales. Shenzhen China Bicycle Company took the point of
attention to the changes in pricing methods, acceptance methods,
revenue recognition when the product is shipped and signed for
delivery locations and deadlines, settlement methods, etc., and
by the customer. Due to the significant amount of operating
assess whether the company’s recognition of income meets the
income, the authenticity of the revenue and whether it should be
requirements of the accounting standards and whether it is
included in the appropriate accounting period had a significant
consistent with the disclosed accounting policies.
impact on the operating results of the company in 2020, and
there might be potential misstatements. Therefore, we took the 3. Inquire and understand the background information of major
recognition of income as a key audit matter. customers through open channels, such as business registration
data, etc., confirm whether there are potential unrecognized
related party relationships between the customer and the
Please refer to the accounting policies said in “25. Revenue” of company and related parties.
“Note III Main Accounting Policies and Accounting Estimate”,
4. Check the customer information (such as contact information,
“22. Operation Revenue and Cost” of “Note VI Annotation of
contact address, order time, etc.) of online marketing and
Consolidate Financial Statement and “5. Operating Income and
evaluate the authenticity and rationality of online marketing;
Costs” of “Note XV Principle notes of financial statement of
71
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
parent company” of the financial statements annotation. examine the market price of main materials and analyze the
rationality of gross profit rate fluctuation.
5.Inform the main customers of the current transaction amount
and fund balance by confirmation letters, and visit important
customers to verify the authenticity of the company’s revenue
recognition.
6. Check the contracts, warehouse receipts, delivery notes and
delivery receipt records of major customers
7. Check the delivery note within a certain period before and
after the balance sheet date, pay attention to the date of receipt,
and confirm whether the revenue recognition is included in the
correct accounting period.
2. Impairment of account receivable
As of December 31, 2020, the balance of accounts receivable of 1. Understand and test the effectiveness of the internal control
Shenzhen China Bicycle Company was 60,001,774.73 yuan, and design and operation related to the accounts receivable
the balance of bad debt provisions was 4,970,350.03 yuan. As management
the balance of accounts receivable was significant and the 2. Review the rationality and consistency of accounting policies
assessment of bad debt provision involved the significant of the bad debt provision for accounts receivable of the
judgment of management, we regarded the impairment of management, and review the rationality of major standards of
accounts receivable as a key audit matter. single amount determined by the management.
3. For the accounts receivable with separate provision for bad
Please refer to the accounting policies said in “12. Accounts debts, select samples to obtain management’s basis for
Receivables” of Note III Main Accounting Policies and estimating the estimated future recoverable amount, including
Accounting Estimate, “3. Account receivable” of “Note VI customer credit record, default or delayed payment records, and
Annotation of Consolidate Financial Statement ”, and “2. actual repayment after date, and review its rationality.
Accounts Receivables” of “Note XV Principle notes of financial 4.For the accounts receivable with provision for bad debts
statement of parent company” of the financial statements according to the aging analysis method, analyze the rationality of
annotation. the accounting estimates for the bad-debt provision of the
accounts receivable of China Bicycle Company, and select
samples to test the accuracy of the ageing.
V. Other information
The management of CBC (the “Management”) is responsible for other information which includes the information
covered in the Company’s 2020 annual report excluding the financial statement and our audit report.
The audit opinion issued by us for the financial statement has not covered other information, for which we do not
issue any form of assurance opinions.
Considering our audit on financial statements, we are liable to read other information, during which, we shall
consider whether other information differs materially from the financial statements or that we understand during
72
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
our audit, or whether there is any material misstatement.
Based on the works executed by us, we should report the fact if we find any material misstatement in other
information. In this regards, we have nothing to report.
VI. Responsibilities of management and those charged with governance for the financial statements
The management is responsible for the preparation of the financial statements in accordance with the Accounting
Standards for Enterprise to secure a fair presentation, and for the design, establishment and maintenance of the
internal control necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing matters related to going concern and using the going concern assumption
unless the management either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
VII. Responsibilities of the auditor for the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an audit report that includes our audit opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the CAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with the CAS, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for audit opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.
73
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern assumption and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required by the CAS to draw users’ attention in audit report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify audit opinion. Our conclusions are based
on the information obtained up to the date of audit report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express audit opinion on the financial statements. We are responsible for the
direction, supervision and performance of the group audit. We remain solely responsible for audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguard measures.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in the auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in the auditor’s report because of the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
1. Consolidated Balance Sheet
Prepared by Shenzhen China Bicycle Company (Holdings) Limited
December 31, 2020
In RMB
Item December 31, 2020 December 31, 2019
74
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Current assets:
Monetary funds 19,887,978.05 6,074,367.91
Settlement provisions
Capital lent
Trading financial assets
Derivative financial assets
Note receivable 580,000.00
Account receivable 55,031,424.70 38,616,523.93
Receivable financing
Accounts paid in advance 816,541.52 938,425.99
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 576,770.36 740,354.71
Including: Interest receivable
Dividend receivable
Buying back the sale of financial
assets
Inventories 7,729,325.94 6,078,330.30
Contractual assets
Assets held for sale
Non-current asset due within one
year
Other current assets 2,715,425.31 3,318,514.25
Total current assets 86,757,465.88 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
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Investment real estate
Fixed assets 3,792,133.36 4,191,503.33
Construction in progress
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 753,000.00
Expense on Research and
Development
Goodwill
Long-term expenses to be
apportioned
Deferred income tax asset 793,170.75 1,042,582.16
Other non-current asset 400,000.00 400,000.00
Total non-current asset 4,985,304.11 6,387,085.49
Total assets 91,742,769.99 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 9,606,144.94 10,191,385.23
Accounts received in advance 1,739,953.80
Contractual liability 15,254,713.38
Selling financial asset of
repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 1,459,244.07 599,962.73
Taxes payable 722,321.02 585,062.75
Other account payable 37,882,805.52 38,175,654.98
76
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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 1,175,251.38
Total current liabilities 66,100,480.31 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 1,175,251.38
Total liabilities 66,100,480.31 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
77
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Reasonable reserve
Surplus public reserve 32,673,227.01 32,673,227.01
Provision of general risk
Retained profit -1,200,950,240.88 -1,204,736,075.56
Total owner’ s equity attributable to
10,905,230.98 7,119,396.30
parent company
Minority interests 14,737,058.70 4,322,186.79
Total owner’ s equity 25,642,289.68 11,441,583.09
Total liabilities and owner’ s equity 91,742,769.99 62,733,602.58
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 December 31, 2020 December 31, 2019
Current assets:
Monetary funds 10,097,024.59 1,959,804.92
Trading financial assets
Derivative financial assets
Note receivable 580,000.00
Account receivable 24,274,935.96 32,843,536.70
Receivable financing
Accounts paid in advance 800,000.00 76,937.00
Other account receivable 115,263.05 485,062.44
Including: Interest receivable
Dividend receivable
Inventories 550,421.78 1,333,374.72
Contractual assets
Assets held for sale
Non-current assets maturing within
one year
Other current assets 2,652,771.13 2,830,705.01
78
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Total current assets 38,490,416.51 40,109,420.79
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 19,960,379.73 4,235,379.73
Investment in other equity
instrument
Other non-current financial assets
Investment real estate
Fixed assets 3,530,501.40 3,813,708.80
Construction in progress
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 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 23,890,881.13 9,202,088.53
Total assets 62,381,297.64 49,311,509.32
Current liabilities
Short-term borrowings
Trading financial liability
Derivative financial liability
Notes payable
Account payable 748,604.24 9,002,524.60
Accounts received in advance 572,687.18
Contractual liability 14,685,423.04
Wage payable 1,146,371.58 507,738.35
Taxes payable 24,906.50 27,797.28
Other accounts payable 39,409,824.37 36,803,498.12
79
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Including: Interest payable
Dividend payable
Liability held for sale
Non-current liabilities due within
one year
Other current liabilities 1,101,243.63
Total current liabilities 57,116,373.36 46,914,245.53
Non-current liabilities:
Long-term loans
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
Total liabilities 57,116,373.36 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 -1,206,590,547.58 -1,209,458,208.07
80
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Total owner’s equity 5,264,924.28 2,397,263.79
Total liabilities and owner’s equity 62,381,297.64 49,311,509.32
3. Consolidated Profit Statement
In RMB
Item 2020 2019
I. Total operating income 117,857,480.17 76,022,687.75
Including: Operating income 117,857,480.17 76,022,687.75
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 113,179,555.62 80,986,694.86
Including: Operating cost 103,221,623.73 68,681,471.12
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 108,070.23 59,405.21
Sales expense 2,540,657.03 3,178,476.39
Administrative expense 4,783,608.32 6,409,465.59
R&D expense 2,506,877.57 2,753,277.72
Financial expense 18,718.74 -95,401.17
Including: Interest
expenses
Interest income 89,977.25 110,834.04
Add: other income 10,207.52
Investment income (Loss is
81
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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
value (Loss is listed with “-”)
Loss of credit impairment
-603,180.13 -2,533,065.87
(Loss is listed with “-”)
Losses of devaluation of asset
-198,181.03 -499,175.17
(Loss is listed with “-”)
Income from assets disposal
24,936.44
(Loss is listed with “-”)
III. Operating profit (Loss is listed with
3,911,707.35 -7,996,248.15
“-”)
Add: Non-operating income 6,542,649.75 6,259,839.85
Less: Non-operating expense 5,688,279.29 6,065,148.83
IV. Total profit (Loss is listed with “-”) 4,766,077.81 -7,801,557.13
Less: Income tax expense 390,371.22 12,324.52
V. Net profit (Net loss is listed with “-”) 4,375,706.59 -7,813,881.65
(i) Classify by business continuity
1.continuous operating net profit
4,375,706.59 -7,813,881.65
(net loss listed with ‘-”)
2.termination of net profit (net loss
listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s
3,785,834.68 -7,186,905.64
of parent company
2.Minority shareholders’ gains and
589,871.91 -626,976.01
losses
VI. Net after-tax of other comprehensive
income
82
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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
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 4,375,706.59 -7,813,881.65
Total comprehensive income 3,785,834.68 -7,186,905.64
83
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
attributable to owners of parent Company
Total comprehensive income
589,871.91 -626,976.01
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0069 -0.0130
(ii) Diluted earnings per share 0.0069 -0.0130
As for the enterprise combined under the same control, net profit of 0 Yuan achieved by the merged party before combination while 0
Yuan achieved last period.
Legal Representative: Li Hai
Person in charge of Accounting Works: Sun Longlong
Person in charge of Accounting Institution: Zhong Xiaojin
4. Profit Statement of Parent Company
In RMB
Item 2020 2019
I. Operating income 28,879,097.16 57,765,728.40
Less: Operating cost 21,700,690.24 52,957,470.16
Taxes and surcharge 15,043.36 30,534.64
Sales expenses 707,225.99 669,212.01
Administration expenses 2,851,678.89 5,274,201.03
R&D expenses 1,118,618.85 2,753,277.72
Financial expenses -60,879.85 -27,640.88
Including: interest
expenses
Interest income 69,527.04 36,142.99
Add: other income 8,595.12
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 “-”)
84
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Net exposure hedging income
(Loss is listed with “-”)
Changing income of fair
value (Loss is listed with “-”)
Loss of credit impairment
-130,767.69 -2,150,073.55
(Loss is listed with “-”)
Losses of devaluation of asset
-118,780.98
(Loss is listed with “-”)
Income on disposal of assets
24,936.44
(Loss is listed with “-”)
II. Operating profit (Loss is listed with
2,330,702.57 -6,041,399.83
“-”)
Add: Non-operating income 5,975,186.69 5,964,797.81
Less: Non-operating expense 5,438,228.77 5,603,102.65
III. Total Profit (Loss is listed with “-”) 2,867,660.49 -5,679,704.67
Less: Income tax
IV. Net profit (Net loss is listed with
2,867,660.49 -5,679,704.67
“-”)
(i) continuous operating net profit
2,867,660.49 -5,679,704.67
(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
85
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial
assets re-classify to other
comprehensive income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging
reserve
6.Translation differences
arising on translation of foreign
currency financial statements
7.Other
VI. Total comprehensive income 2,867,660.49 -5,679,704.67
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item 2020 2019
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 93,023,981.38 34,301,259.24
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
86
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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
Write-back of tax received 78,290.48
Other cash received concerning
28,524,286.42 8,415,964.05
operating activities
Subtotal of cash inflow arising from
121,626,558.28 42,717,223.29
operating activities
Cash paid for purchasing
commodities and receiving labor 96,741,787.34 33,526,465.17
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 5,937,846.01 6,068,095.14
Taxes paid 551,358.27 5,495,235.28
Other cash paid concerning
14,453,337.70 11,419,369.04
operating activities
Subtotal of cash outflow arising from
117,684,329.32 56,509,164.63
operating activities
87
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Net cash flows arising from operating
3,942,228.96 -13,791,941.34
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
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
activities
Cash paid for purchasing fixed,
18,118.82 897,577.01
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
18,118.82 897,577.01
activities
Net cash flows arising from investing
46,381.18 -897,577.01
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
9,825,000.00 2,275,000.00
investment
Including: Cash received from
absorbing minority shareholders’ 9,825,000.00 2,275,000.00
investment by subsidiaries
Cash received from loans
Other cash received concerning 2,000,000.00
88
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
financing activities
Subtotal of cash inflow from financing
9,825,000.00 4,275,000.00
activities
Cash paid for settling debts
Cash paid for dividend and profit
distributing or interest paying
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
Other cash paid concerning
financing activities
Subtotal of cash outflow from financing
activities
Net cash flows arising from financing
9,825,000.00 4,275,000.00
activities
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash
13,813,610.14 -10,414,518.35
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
19,887,978.05 6,074,367.91
equivalents at the period -end
6. Cash Flow Statement of Parent Company
In RMB
Item 2020 2019
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 17,674,623.95 20,912,867.52
services
Write-back of tax received 4,239.24
Other cash received concerning
33,840,545.52 11,527,292.59
operating activities
Subtotal of cash inflow arising from
51,519,408.71 32,440,160.11
operating activities
89
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Cash paid for purchasing
commodities and receiving labor 9,546,863.96 15,697,313.54
service
Cash paid to/for staff and workers 4,522,703.61 4,179,923.89
Taxes paid 296,782.94 5,298,670.25
Other cash paid concerning
13,337,219.71 9,071,443.23
operating activities
Subtotal of cash outflow arising from
27,703,570.22 34,247,350.91
operating activities
Net cash flows arising from operating
23,815,838.49 -1,807,190.80
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
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
activities
Cash paid for purchasing fixed,
18,118.82 897,577.01
intangible and other long-term assets
Cash paid for investment 15,725,000.00 4,225,000.00
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
15,743,118.82 5,122,577.01
activities
Net cash flows arising from investing
-15,678,618.82 -5,122,577.01
activities
III. Cash flows arising from financing
90
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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
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
8,137,219.67 -6,929,767.81
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
10,097,024.59 1,959,804.92
equivalents at the period -end
7. Statement of Changes in Owners’ Equity (Consolidated)
Current period
In RMB
2020
Owners’ equity attributable to the parent Company
Other Other
Minori Total
equity instrument Less: compr Provisi
Item Share Reaso Surplu Retain ty owners
Perpe Capital Invent ehensi on of Subtot
capita Prefe nable s ed Other interes ’
tual reserve ory ve genera al
l rred Other reserve reserve profit ts equity
capit shares incom l risk
stock
al e
91
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
secur
ities
I. Balance at the 551,3 627,83 32,673 -1,204, 11,441
7,119, 4,322,
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
II. Balance at 551,3 627,83 32,673 -1,204, 11,441
7,119, 4,322,
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 10,414 14,200
3,785, 3,785,
year (Decrease ,871.9 ,706.5
834.68 834.68
is listed with 1 9
“-”)
(i) Total
3,785, 3,785, 589,87 4,375,
comprehensive
834.68 834.68 1.91 706.59
income
(ii) Owners’
devoted and 9,825, 9,825,
decreased 000.00 000.00
capital
1.Common
9,825, 9,825,
shares invested
000.00 000.00
by shareholders
2. Capital
invested by
holders of other
equity
instruments
92
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
93
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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 -1,200, 10,905 14,737 25,642
the end of the 47,94 4,297. ,227.0 950,24 ,230.9 ,058.7 ,289.6
report period 7.00 85 1 0.88 8 0 8
Last period
In RMB
2019
Owners’ equity attributable to the parent Company
Other
equity instrument Other
Minorit
Perp Less: compr Provisi Total
Item Share Reaso Surplu Retain y
etual Capital Invent ehensi on of Subtot owners’
capita Prefe nable s ed Other interest
capit reserve ory ve genera al equity
l rred Other reserve reserve profit s
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
Add:
Changes of
accounting
policy
Error
correction of
the last period
94
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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
-7,186, -7,186, 1,648,0 -5,538,
year (Decrease
905.64 905.64 23.99 881.65
is listed with
“-”)
(i) Total
-7,186, -7,186, -626,97 -7,813,
comprehensive
905.64 905.64 6.01 881.65
income
(ii) Owners’
devoted and 2,275,0 2,275,0
decreased 00.00 00.00
capital
1.Common
2,275,0 2,275,0
shares invested
00.00 00.00
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
95
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or
shareholders)
4. Other
(IV) Carrying
forward
internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．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
96
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at 551,3 627,83 32,673 -1,204,
7,119, 4,322,1 11,441,
the end of the 47,94 4,297. ,227.0 736,07
396.30 86.79 583.09
report period 7.00 85 1 5.56
8. Statement of Changes in Owners’ Equity (Parent Company)
Current period
In RMB
2020
Other equity instrument
Perpet Other
Capital Less: Reasona Total
Item 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 -1,209,
627,834, 32,673,2 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 -1,209,
627,834, 32,673,2 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 2,867,6 2,867,660.
year (Decrease is 60.49 49
listed with “-”)
(i) Total 2,867,6 2,867,660.
comprehensive 60.49 49
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
income
(ii) Owners’
devoted and
decreased capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal of
surplus reserves
2. Distribution
for owners (or
shareholders)
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
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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 -1,206,
627,834, 32,673,2 5,264,924.
the end of the 7,947.0 590,54
297.85 27.01 28
report period 0 7.58
Last period
In RMB
2019
Other equity
instrument
Other
Perpet Capital Less: Total
Item Share compre Reasonab Surplus Retained
Preferr ual public Inventor Other owners’
capital hensive le reserve reserve profit
ed capital Other reserve y shares equity
income
stock 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
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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
-5,679,70 -5,679,704.
year (Decrease
4.67 67
is listed with
“-”)
(i) Total
-5,679,70 -5,679,704.
comprehensive
4.67 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
1. Withdrawal
of surplus
reserves
2. Distribution
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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, -1,209,45 2,397,263.7
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the end of the 7,947. ,297.85 227.01 8,208.07 9
report period 00
III. Company Profile
1. History and basic information
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 operation activities: The production and assembly of various bicycles and spare parts, components, parts,
mechanical product, sport machinery, fine chemicals, carbon fiber composites material, household electrical
appliance and affiliated components (products management by license excluded).
The majority of its products were previously exported, however, the sales volume sharply declined in recent years
because of the anti-dumping litigation. Hence, the Company commences on the debt reorganization and the
reorganization plan was completed on 27 December 2013 with bankruptcy proceedings terminated. Meanwhile,
makes greater efforts to develop and research the new products, and creates a range of electrical bicycles to
occupy the domestic market.
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 23 April 2021 after approved by 28th session of 10th BOD of the Company.
Two subsidiaries and one sub-subsidiary included in consolidate statement scope in the period, that is Shenzhen
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Emmelle Industrial Co., Ltd and its subsidiaries Emmelle Cloud Technology Co., Ltd. and Shenzhen Xinsen
Jewelry Gold Supply Chain Co., Ltd, of which, the Shenzhen Emmelle Cloud Technology Co., Ltd is the newly
established sub-subsidiary included in consolidate statements during the period.
IV. Compilation Basis of Financial Statement
1. Compilation Basis
The financial statement is prepared based on continuing operation assumptions, and according to actual
occurrence, in line with relevant accounting rules and follow important accounting policy and estimation.
2. Going concern
On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen 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.
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V. Main accounting policy and Accounting Estimate
Tips for specific accounting policy and estimate:
1. Declaration on compliance with accounting standards for business enterprise
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.
3. Business cycles
The business period for the Company, which is the Gregorian calendar starting from 1 January to 31 December
4. Book-keeping 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
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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
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
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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.
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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.
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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.
(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.
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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 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.
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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
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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.
(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:
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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 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.
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(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.
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”
Nil
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, 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 a simplified model of expected credit losses, that is the allowance for losses is always
measured at the amount of expected credit losses over the entire duration period. Proportion for accrual found
more in the accounting policy and estimate for account receivable.
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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:
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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 treatment in【Financial Instrument】
13. Receivable financing
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.
The Company transfers the receivables held by discounting or endorsement, and such operations are more
frequent with large amount involved. The management business models is essentially both the collection of
contractual cash flows and the sales; in accordance with the relevant provision of financial instrument standards,
classified them into the financial assets measured at fair value and with its variation reckoned into other
comprehensive income.
14.Other account receivable
Determination method and accounting treatment of the expected credit loss of other account receivable
(1) Account receivable with single significant amount and withdrawal single item bad debt provision:
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Account with single significant amount: the single receivable has over 5 million yuan at end of the period
At the end of the period, the receivables with significant single amount are tested separately for impairment. If
there is objective evidence that they have been impaired, the impairment loss will be recognized and the provision
for bad debts will be made based on the balance between the present value of future cash flows and its book value.
(2)Account receivable with bad debt provision accrual by portfolio
For the receivables with non significant single amount at the end of the period, they are divided into several
combinations together with the receivables without impairment after independent test according to the account age
as the credit risk feature. The impairment loss is calculated and determined according to a certain proportion of
the ending balance of these receivables combinations (impairment test can be conducted separately), and the bad
debt provision is withdrawn.
In addition to the receivables for which impairment provision has been separately made, the company determines
the following proportion of provision for bad debts based on the actual loss rate of the combination of receivables
with account age as credit risk characteristics in the previous year, which is the same or similar to the receivables,
in combination with the current situation:
(2) Age analysis
Accrual proportion of account Accrual proportion of other account
Account age
receivable receivable
Within one year(one year included) 0.3% 0.3%
1～2 years (2-year included) 0.3% 0.3%
2～3 years (3-year included) 0.3% 0.3%
Over 3 years 100% 100%
Including: determined to be un-collectible Write off Write off
Note: no provision is made for bad debt for inter-company receivables and other receivables with the scope of consolidation.
(3) Account receivable with minor single amount but single provision for bad debts
Reasons for provision of bad debt reserve on single base: The Company conducts impairment test separately for
receivables that are not significant in single amount but have the following characteristics, if there is objective
evidence that they have been impaired, the impairment loss will be recognized and the provision for bad debts will
be made based on the balance between the present value of future cash flows and its book value; receivables that
are in dispute with the other party or involving litigation or arbitration; there are clear signs indicating that the
debtor is likely to be unable to fulfill the repayment obligations of the receivables.
Provision method of bad debt reserve: If the impairment test is carried out separately and there is objective
evidence that it has been impaired, the impairment loss will be recognized and the provision for bad debts will be
made based on the balance between the present value of future cash flows and its book value.
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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.
16.Contract assets
Nil
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17.Contract cost
Nil
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
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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.
19.Debt investment
Nil
20.Other debt investment
Nil
21.Long-term account receivable
Nil
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.
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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 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
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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 be provided for based on the difference between
the carrying value and the recoverable amount.
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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
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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 impairment provision shall be provided for based on the difference between the carrying
value and the recoverable amount.
26. Borrowing expenses
Nil
27.Biological assets
Nil
28. Oil and gas asset
Nil
29.Right-of-use asset
Ni
30. Intangible assets
(1) Valuation method, service life and impairment test
1.Intangible assets include land use right, patent right and non-patent technology, which should be initially
measured at cost.
2.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.
3.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
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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; ③the intangible asset can produce economic benefits,
including there is evidence that the products produced using the intangible asset has a market or the intangible
asset itself has a market; if the intangible asset is for internal use, there is evidence that there exists usage for the
intangible asset; ④there is sufficient support in terms of technology, financial resources and other resources in
order to complete the development of the intangible asset, and there is capability to use or sell the intangible asset;
⑤the expenses attributable to the development phase of the intangible asset can be measured reliably.
31. Impairment of long-term assets
Nil
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. Contract liability
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
The Company terminates the labor relationship with an employee before the employee labor contract expires, or
proposes to offer a compensation to encourage an employee to voluntarily accept the downsizing. When the
Company cannot unilaterally withdraw the labor relationship cancellation plan or the downsizing proposal nor
confirm the relevant costs of the restructuring involving the payment of termination benefits, whichever is earlier,
the liabilities arising from the compensation for the termination of the labor relationship with the employees are
recognized and included in the current profit and loss.
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(3) Accounting for retirement benefits
When the Company terminates the employment relationship with employees before the end of the employment
contracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, the
Company shall recognize employee compensation liabilities arising from compensation for staff dismissal and
included in profit or loss for the current period, when the Company cannot revoke unilaterally compensation for
dismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the Company
recognize cost and expenses related to payment of compensation for dismissal and restructuring, whichever is
earlier.
(4) Accounting for other long-term employee benefits
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 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
Nil
36. Accrual liability
Nil
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.
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(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.
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
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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
Nil
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) Recognition of revenue
On the starting date of the contract, the company evaluates the contract, identifies each individual performance
obligation contained in the contract, and determines whether each individual performance obligation is performed
within a certain period of time or at a certain point in time.
When meeting one of the following conditions, it belongs to the performance obligation within a certain period of
time, otherwise, it belongs to the performance obligation at a certain point in time: 1) The customer obtains and
consumes the economic benefits brought by the company's performance at the same time as the company
performs the contract; 2) The customer can control the goods or services under construction during the company's
performance; 3) The goods or services produced during the company's performance have irreplaceable uses, and
the company has the right to collect payments for the accumulated performance part of the contract during the
entire contract period .
For performance obligations performed within a certain period of time, the company recognizes revenue in
accordance with the performance progress during that period of time. When the performance progress cannot be
reasonably determined, if the cost incurred is expected to be compensated, the revenue shall be recognized
according to the amount of the cost incurred until the performance progress can be reasonably determined. For
performance obligations performed at a certain point in time, revenue is recognized at the point when the
customer obtains control of the relevant goods or services. When judging whether the customer has obtained
control of the goods, the company considers the following signs: 1) The company has the current right to receive
payment for the goods, that is, the customer has the current payment obligation for the goods; 2) The company has
transferred the legal ownership of the goods to the customer, that is, the customer has legal ownership of the
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
goods; 3) The company has transferred the product to the customer in kind, that is, the customer has physically
taken possession of the product; 4) The company has transferred the major risks and rewards of the ownership of
the goods to the customer, that is, the customer has obtained the main risks and rewards of the ownership of the
goods; 5) the customer has accepted the goods; 6) Other signs indicate that the customer has obtained control of
the goods.
(2) Principles of income measurement
1) The company measures income based on the transaction price allocated to each individual performance
obligation. The transaction price is the amount of consideration that the company expects to be entitled to receive
due to the transfer of goods or services to the customer, and does not include the amount collected on behalf of a
third party and the amount expected to be returned to the customer.
2) If there is variable consideration in the contract, the company shall determine the best estimate of the variable
consideration based on the expected value or the amount most likely to incur, but the transaction price including
the variable consideration shall not exceed the amount at which the accumulatively recognized income is most
likely not be subject to a significant reversal when the relevant uncertainty is eliminated.
3) If there is a major financing component in the contract, the company shall determine the transaction price based
on the amount payable in cash when the customer assumes control of the goods or services. The difference
between the transaction price and the contract consideration shall be amortized by the effective interest method
during the contract period. On the starting date of the contract, if the company expects that the interval between
the customer's acquisition of control of the goods or services and the customer's payment of the price will not
exceed one year, we will not consider the significant financing components in the contract.
4) If the contract contains two or more performance obligations, the company will allocate the transaction prices
to each individual performance obligation in accordance with the relative proportion of the stand-alone selling
price of the goods promised by each individual performance obligation on the commencement date of contract.
(3) Specific method of revenue recognition:
In accordance with the general principles of revenue recognition and the actual situation of the company's product
sales, the company formulates a specific revenue recognition method that the products sold by the company to
customers are recognized as revenue after the products are delivered to the customer and the customer carries out
acceptance and inspection.
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:
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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 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
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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
When the Company is the lessee, lease payments are recognized as cost or profit or loss with straight-line method
over the lease term. Initial expenses are recognized directly into profit or loss. Contingent rents are charged as
profit or loss in the periods in which they are incurred.
When the Company is the lessor, lease income is recognized as profit or loss with straight-line method over the
lease term. Initial expenses, other than those with material amount and eligible for capitalization which are
recognized as profit or loss by installments, are recognized directly as profit or loss. Contingent rents are charged
into profit or loss in the periods in which they are incurred.
(2)Accounting for financing lease
When the company acts as lessee, at the inception of lease, the lower of fair value of leased assets at the inception
of lease and the present value of minimum lease payment is recognized as the value of leased assets. The
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
minimum lease payment is recognized as the value of long-term payable. Their difference is recorded as
unrecognized finance costs with any initial direct expense incurred recorded in the value of leased assets. For each
period of the lease term, current finance cost is calculated using effective interest method.
When the company acts as lessor, at the inception of lease, the sum of minimum lease income at the inception of
lease and the initial direct expense is recognized as the value of finance lease payment receivable, with unsecured
balance also recorded. The difference between the sum of minimum lease income, initial direct expense and
unsecured balance and the sum of their present values is recognized as unrealized finance income. For each period
of the lease term, current finance income is calculated using effective interest method.
43. Other important accounting policy and estimation
Discontinued operation refers to the operation disposed or classified as held-for-sale by the Company and
presented separately under operation segments and financial statements, which has fulfilled one of the following
criteria:
(1) it represents an independent key operation or key operating region;
(2) it is part of the proposed disposal plan on an independent key operation or proposed disposal in key operating
region; or
(3) it only establishes for acquisition of subsidiary through disposal.
The enterprise shall separately list profit and loss from continuing operations and profit and loss from
discontinuing operations in the profit statement. For non-current assets held for sale or disposal groups that do not
meet the definition of discontinuing operations, the impairment losses and reversal amounts and disposal gains
and losses should be presented as profit or loss from continuing operations. Operational gains and losses and
disposal profits and losses such as impairment losses and reversal amounts of discontinuing operations should be
reported as profits or losses of discontinuing operations.
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
In consolidate balance sheet dated 31
”Account received in advance” presented Deliberated and approved by 24th session December 2020, the account received in
as “Contract liability” of 10th BOD dated 27 August 2020 advance is shown in the amount of 0.00
yuan, the contract liability on 31 December
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
2020 is shown as 16,429,964.76 yuan.
(2) Changes of important accounting estimation
□ Applicable √ Not applicable
(3)Adjustment on the relevant items of financial statement at beginning of the year when implemented the
new revenue standards and new leasing standards since 2020
Applicable
Whether needs to adjust the balance sheet accounts at the beginning of the year
√Yes □No
Consolidated balance sheet
In RMB
Item 2019-12-31 2020-01-01 Adjustment
Current assets:
Monetary fund 6,074,367.91 6,074,367.91
Settlement provisions
Capital lent
Trading 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
Accounts paid in
938,425.99 938,425.99
advance
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
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
financial assets
Inventories 6,078,330.30 6,078,330.30
Contract 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
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
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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 -1,739,953.80
advance
Contract liability 1,568,550.21 1,568,550.21
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 585,062.75 585,062.75
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
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Other current liabilities 171,403.59 171,403.59
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
Total liabilities 51,292,019.49 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
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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 on adjustment
The Company has implemented the new revenue standards from January 1, 2020, for the company's right to collect consideration for
the goods that the company has transferred to customers, and this right depends on other factors other than the lapse of time, in
response to the obligation to transfer goods to customers for the consideration that has been collected or receivable from customers,
the contract consideration received in advance is adjusted from "accounts received in advance" to "contract liabilities."
Balance sheet of parent company
In RMB
Item 2019-12-31 2020-01-01 Adjustment
Current assets:
Monetary fund 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
Accounts paid in
76,937.00 76,937.00
advance
Other account
485,062.44 485,062.44
receivable
Including: Interest
receivable
Dividend
receivable
Inventories 1,333,374.72 1,333,374.72
Contract assets
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Assets held for sale
Non-current asset due
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 account
receivable
Long-term equity
4,235,379.73 4,235,379.73
investment
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
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
asset
Other non-current asset 400,000.00 400,000.00
Total non-current asset 9,202,088.53 9,202,088.53
Total assets 49,311,509.32 49,311,509.32
Current liabilities:
Short-term loans
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Trading financial
liability
Derivative financial
liability
Note payable
Account payable 9,002,524.60 9,002,524.60
Accounts received in
572,687.18 -572,687.18
advance
Contract liability 535,570.90 535,570.90
Wage payable 507,738.35 507,738.35
Taxes payable 27,797.28 27,797.28
Other account 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 37,116.28 37,116.28
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
Long-term account
payable
Long-term wages
payable
Accrual liability
Deferred income
Deferred income tax
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
liabilities
Other non-current
liabilities
Total non-current liabilities
Total liabilities 46,914,245.53 46,914,245.53
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
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 on adjustment
The Company has implemented the new revenue standards from January 1, 2020, for the company's right to collect consideration for
the goods that the company has transferred to customers, and this right depends on other factors other than the lapse of time, in
response to the obligation to transfer goods to customers for the consideration that has been collected or receivable from customers,
the contract consideration received in advance is adjusted from "accounts received in advance" to "contract liabilities."
(4) Explanation on retrospective adjustment of prior period comparative data for the first implementation
of new revenue standards and new leasing standards from 2020
□Applicable √Not applicable
45. Other
Nil
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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%, 15%
Disclose reasons for different taxpaying body
Taxpaying body Income tax rate
The Company 15.00%
Shenzhen Emmelle Industry Co., Ltd. 25.00%
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. 20.00%
Shenzhen Emmelle Cloud Technology Co., Ltd. 20.00%
2. Tax preference
Note 1: The Company obtained the high-tech enterprise certificate "GR202044200651" jointly approved by the Shenzhen Science
and Technology Innovation Commission, the Shenzhen Finance Bureau, and the Shenzhen Tax Service, State Taxation
Administration on December 11, 2020, the validity period is from 2020 to 2022. Therefore, the company enjoys a preferential tax
rate of 15% in 2020.
Note 2: According to the "Enterprise Income Tax Law of the People's Republic of China" and its implementation regulations, the
"Notice of the State Taxation Administration and Ministry of Finance on the Implementation of Inclusive Tax Relief Policies for
Small and Micro Enterprises" (CS[2020] No. 13) and other provisions, from January 1, 2021 to December 31, 2021, the portion of
the annual taxable income of small, low-profit enterprises that does not exceed 1 million yuan will be included in the taxable income
by 25%, and the corporate income tax will be paid at a tax rate of 20%. The portion of the annual taxable income of small, low-profit
enterprises exceeding 1 million yuan but not exceeding 3 million yuan will be included in the taxable income by50%, and the
corporate income tax will be paid at a tax rate of 20%. Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. and Shenzhen
Emmelle Cloud Technology Co., Ltd., the Company’s subsidiaries, are small and low-profit enterprises, so a preferential tax rate of
20% is applicable to them.
3. Other
Nil
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VII. Notes to Items in Consolidated Financial Statements
1. Monetary fund
In RMB
Item Ending balance Opening balance
Cash on hand 21,530.26 89,313.66
Bank deposit 19,866,447.79 5,979,003.60
Other monetary fund 6,050.65
Total 19,887,978.05 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 580,000.00
Total 580,000.00
In RMB
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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
Notes receivable of
bad debt provision
0.00 0.00% 0.00 0.00% 0.00 0.00 0.00% 0.00 0.00% 0.00
accrual on single
basis:
Including:
Notes receivable of
580,000.0 580,000.0
bad debt provision 0.00 0.00% 0.00 0.00% 0.00 100.00% 0.00 0.00%
0 0
accrual on portfolio
Including:
Bank acceptance 580,000.0 580,000.0
100.00% 0.00 0.00%
draft 0 0
580,000.0 580,000.0
Total 0.00 0.00% 0.00 0.00% 0.00 100.00% 0.00 0.00%
0 0
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:
Nil
Bad debt provision accrual on portfolio:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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 Collected or Ending balance
Accrual Write off Other
reversal
Total 0.00 0.00 0.00 0.00 0.00 0.00
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
Total 0.00
(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
Total 0.00 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
Total 0.00
Other explanation
(1) At the end of the period, there was no notes receivable with single provision for bad debts.
(2) There is no pledge of notes receivable at the end of the period.
(3) At the end of the period, there are no endorsed or discounted notes receivable that have not yet expired.
(4) At the end of the period, there was no situation that the bills were converted into accounts receivable due to the inability of the
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
drawer to perform the contract.
(6) Note receivable actually charge-off in the period
In RMB
Item Amount charge-off
Including important note receivable 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 -- -- --
Explanation on note receivable change-off:
Nil
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 10,400,5 4,821,54 5,579,011 9,421,186 4,477,656 4,943,530.7
17.33% 46.36% 21.81% 47.53%
provision accrual by 57.65 6.38 .27 .95 .23 2
single basis
Including:
Accounts with single
minor amount but
10,400,5 4,821,54 5,579,011 4,385,583 2,966,975 1,418,608.1
with bad debts 17.33% 46.36% 10.15% 67.65%
57.65 6.38 .27 .20 .10 0
provision accrued
individually
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
Account receivable 49,601,2 82.67% 148,803. 0.30% 49,452,41 33,774,31 78.19% 101,322.9 0.30% 33,672,993.
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with bad debt 17.08 65 3.43 6.16 5 21
provision accrual by
portfolio
Including:
Account receivable
withdrawal bad debt
provision by group of
49,601,2 148,803. 49,452,41 33,774,31 101,322.9 33,672,993.
credit risk 82.67% 0.30% 78.19% 0.30%
17.08 65 3.43 6.16 5 21
characteristics
(Aging analysis
method)
60,001,7 4,970,35 55,031,42 43,195,50 4,578,979 38,616,523.
Total 100.00% 8.28% 100.00% 10.60%
74.73 0.03 4.70 3.11 .18 93
Bad debt provision accrual on single basis: Account receivable with significant single amount period-end but withdrawal bad debt
provision on single basis
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Shenzhen Jiahaosong Expected to be difficult
2,393,603.75 718,081.13 30.00%
Technology Co., Ltd. to recover
Shenzhen Weiterui New
Expected to be difficult
Energy Technology Co., 1,670,971.05 501,291.32 30.00%
to recover
Ltd.
Sichuan Wanling Electric Expected to be difficult
1,102,072.20 1,102,072.20 100.00%
Technology Co., Ltd. to recover
Zhengzhou Guiguan Expected to be difficult
1,007,233.79 302,170.14 30.00%
Tech. Trade. Co., Ltd to recover
Suzhou Jiaxin Economic Expected to be difficult
888,757.00 266,627.10 30.00%
Trade Co., Ltd. to recover
Shijiazhuang Dasong Expected to be difficult
837,064.00 837,064.00 100.00%
Tech. Co., Ltd to recover
Dongguan Daxiang New Expected to be difficult
816,902.94 245,070.88 30.00%
Energy Co., Ltd. to recover
Suzhou Daming Vehicle Expected to be difficult
652,372.42 326,186.21 50.00%
Industry Co., Ltd. to recover
Guangdong Xinlingjia Expected to be difficult
371,136.00 111,340.80 30.00%
New Energy Co., Ltd. to recover
Suzhou Daming Vehicle Expected to be difficult
355,067.00 106,520.10 30.00%
Industry Co., Ltd. to recover
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Shanghai Swen Electric Expected to be difficult
304,867.50 304,867.50 100.00%
Vehicle Co., Ltd. to recover
Jinan Yuxintai Sales Co., Expected to be difficult
510.00 255.00 50.00%
Ltd. to recover
Total 10,400,557.65 4,821,546.38 -- --
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: Accounts receivable with provision for bad debts by aging analysis method
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio
Within one year (one year
47,429,631.14 142,288.89 0.30%
included)
1-2 years (2 years included) 2,171,585.94 6,514.76 0.30%
Total 49,601,217.08 148,803.65 --
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 Book balance
Within one year (one year included) 47,429,631.14
Within one year 47,429,631.14
1-2 years 4,659,969.93
2-3 years 5,668,169.96
Over 3 years 2,244,003.70
3-4 years 304,867.50
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4-5 years 1,102,072.20
Over 5 years 837,064.00
Total 60,001,774.73
(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 Write off Other
reversal
Bad debt
provision for
4,578,979.18 593,472.35 202,101.50 4,970,350.03
accounts
receivable
Total 4,578,979.18 593,472.35 202,101.50 4,970,350.03
Including important amount of bad debt provision collected or reversal in the period:
In RMB
Enterprise Amount collected or reversal Collection way
(2) Account receivables actually charge-off during the reporting period
In RMB
Item Amount charge-off
Goods receivable 202,101.50
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)
According to the
Debt settlement
debt repayment
Shijiazhuang Dasong agreement, company
Goods payment 202,101.50 agreement, write off N
Tech. Co., Ltd approval and
the uncollectible
confirmation
payment
Total -- 202,101.50 -- -- --
Explanation on account receivable charge-off:
Nil
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(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
16,308,000.33 27.18% 48,924.00
Technology Co., Ltd.
Xi’an Grom Trading Co.,
14,082,343.94 23.47% 42,247.03
Ltd.
Shenzhen Yunshang
5,506,110.50 9.18% 16,518.33
Jewelry Co., Ltd.
Cao Chuanfu 4,807,119.62 8.01% 14,421.36
Chengdu Shumao
2,903,671.06 4.84% 8,711.01
Diamond Co., Ltd.
Total 43,607,245.45 72.68%
(5) Account receivable derecognition due to transfer of financial assets
No account receivable derecognition due to transfer of financial assets in the period
(6) Assets and liability resulted by account receivable transfer and continuous involvement
No transfer of accounts receivable and continued involvement in this period.
Other explanation:
There are no accounts receivable from shareholder units and other related parties that have more than 5% (including 5%) voting rights
of the company in the accounts receivable at the end of the period.
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
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7. Account paid in advance
(1) By account age
In RMB
Ending balance Opening balance
Account age
Amount Ratio Amount Ratio
Within one year 816,541.52 100.00% 938,425.99 100.00%
Total 816,541.52 -- 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 Nature Ratio in total
with the advance e
Company payment (%)
Yunnan Shengbihe New Material Co., Ltd. Non-related 800,000.00 Within one Material fee 97.97
party year
financing
Shenzhen Yaosheng Building Decoration Design Non-related 15,872.50 Within one Material fee 1.94
Engineering Co., Ltd. party year
financing
Shenzhen Huamao Gold Co., Ltd. Non-related 669.02 Within one Material fee 0.08
party year
financing
Total 816,541.52 100.00
Other explanation:
At end of the period, there was no advance payment from shareholder unit and other related parties that holds 5% (included) voting
rights of the Company among Advance Payment
8. Other account receivable
In RMB
Item Ending balance Opening balance
Other account receivable 576,770.36 740,354.71
Total 576,770.36 740,354.71
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(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
Total 0.00 -- -- --
3) Accrual of bad debt provision
□Applicable √Not applicable
Other explanation:
Nil
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(3) Other account receivable
1) By nature
In RMB
Account nature Ending book balance Opening book balance
Deposit or margin 618,609.00 754,822.00
Payment for equipment 311,400.00 311,400.00
Personal loan of employees 10,396.88 28,060.45
Total 940,405.88 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 0.00 0.00 353,927.74
2020
January 1, 2020 balance
—— —— —— ——
in the current period
--Transfer to the second
0.00
stage
-- Transfer to the third
0.00
stage
-- Reversal to the second
0.00
stage
-- Reversal to the first
0.00
stage
Accrued in this period 9,707.78 9,707.78
Reversal in Current
0.00
Period
Conversion in Current
0.00
Period
Write off in this period 0.00
Other changes 0.00
Balance on December 31, 363,635.52 0.00 0.00 363,635.52
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
2020
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 Book balance
Within one year (one year included) 462,535.88
Within one year 462,535.88
1-2 years 62,000.00
2-3 years 53,970.00
Over 3 years 361,900.00
3-4 years 40,200.00
4-5 years 11,700.00
Over 5 years 310,000.00
Total 940,405.88
3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
Bad debt
provision for other 353,927.74 9,707.78 363,635.52
receivables
Total 353,927.74 9,707.78 0.00 0.00 0.00 363,635.52
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
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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
There is no other account receivable actually written off in the current period
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 30.90% 300,000.00
equipment
Equipment Co., Ltd
Shenzhen
Gangdelong Margin or deposit 216,840.00 Within one year 23.06% 650.52
Industrial Co., Ltd.
Alipay (China)
Network Technology
Margin or deposit 170,000.00 Within 3 years 18.08% 510.00
Co., Ltd. customer
reserve fund
Shenye Pengji
Margin or deposit 60,222.00 Within one year 6.40% 180.67
(Group) Co., Ltd.
Shenzhen Haiyida
Decoration Design
Margin or deposit 34,550.00 Within one year 3.67% 103.65
Engineering Co.,
Ltd.
Total -- 781,612.00 -- 83.11% 301,444.84
6) Account receivable with government grants involved
In RMB
Time, amount and basis
Enterprise Government grants Ending Balance Ending account age
of amount collection
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
estimated
There was no account receivable involving government subsidies at the end of the period.
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:
At the end of the period, other account receivables did not include shareholder units and other related parties holding 5% (including 5%)
or more of the voting rights of the company.
9. Inventory
Whether companies 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 1,298,565.61 1,298,565.61 2,183,259.92 2,183,259.92
Finished goods 2,545,994.24 278,533.53 2,267,460.71 1,542,282.57 521,083.05 1,021,199.52
Goods sold 5,656.40 5,656.40
Consigned
processing 4,157,643.22 4,157,643.22 2,873,870.86 2,873,870.86
materials
Total 8,007,859.47 278,533.53 7,729,325.94 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”
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(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
Finished goods 521,083.05 198,181.03 440,730.55 278,533.53
Total 521,083.05 198,181.03 440,730.55 278,533.53
The net realizable value is determined by deducting the necessary expenses from the market price at the end of the period, the
inventory falling price reserves reversed or written off in the current period are the sales of the inventory with impairment withdrawn
in the current period.
(3) Explanation on capitalization of borrowing costs at ending balance of inventory
Nil
(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 has major changes and causes:
In RMB
Item Amount changes Reason for change
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 Accrued in this period Switch-back in the period Causes
the period
Total 0.00 0.00 0.00 --
Other explanation:
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Nil
11. Assets held for sale
In RMB
Ending book 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
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 2,652,771.13 3,188,649.68
Prepaid corporate income tax 51,574.09 129,864.57
Prepaid input tax 11,080.09
Total 2,715,425.31 3,318,514.25
Other explanation:
Nil
14. Creditors’ investment
In RMB
Ending balance Opening balance
Item
Book balance Impairment Book value Book balance Impairment Book value
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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,
0.00
2020
January 1, 2020 balance
—— —— —— ——
in the current period
--Transfer to the second
0.00
stage
-- Transfer to the third
0.00
stage
-- Reversal to the second
0.00
stage
-- Reversal to the first
0.00
stage
Accrued in this period 0.00
Reversal in Current
0.00
Period
Conversion in Current
0.00
Period
Write off in this period 0.00
Other changes 0.00
Balance on December 31,
0.00
2020
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
Other explanation:
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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,
0.00
2020
January 1, 2020 balance
—— —— —— ——
in the current period
--Transfer to the second
0.00
stage
-- Transfer to the third
0.00
stage
-- Reversal to the second
0.00
stage
-- Reversal to the first
0.00
stage
Accrued in this period 0.00
Reversal in Current
0.00
Period
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Conversion in Current
0.00
Period
Write off in this period 0.00
Other changes 0.00
Balance on December 31,
0.00
2020
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
Other explanation:
Nil
16. Long-term account receivable
(1) Long-term account receivable
In RMB
Ending balance Opening balance
Discount rate
Item Bad debt Bad debt
Book balance Book value Book balance Book value 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,
0.00 0.00 0.00 0.00
2020
January 1, 2020 balance
—— —— —— ——
in the current period
--Transfer to the second
0.00
stage
-- Transfer to the third
0.00
stage
-- Reversal to the second
0.00
stage
-- Reversal to the first
0.00
stage
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Accrued in this period 0.00
Reversal in Current
0.00
Period
Conversion in Current
0.00
Period
Write off in this period 0.00
Other changes 0.00
Balance on December 31,
0.00 0.00 0.00 0.00
2020
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
Other Cash
Opening Investme Accrual Ending balance
The Additiona comprehe dividend
Balance nt gains Other of Balance of
invested l Capital nsive or profit
(Book recognize equity impairme Other (Book impairme
entity 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 0.00 0.00 0.00
Other explanation
Nil
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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
(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
161
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
21. Fixed assets
In RMB
Item Ending balance Opening balance
Fixed assets 3,792,133.36 4,191,503.33
Total 3,792,133.36 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 balance 2,959,824.00 1,477,691.03 958,593.21 230,136.11 5,626,244.35
2.Current
18,118.82 18,118.82
increased
(1) Purchase 18,118.82 18,118.82
(2)
Construction in
process transfer-in
(3) The
increase in business
combination
3.Current
63,210.26 63,210.26
decreased
(1) Disposal or
63,210.26 63,210.26
scrap
4.Ending balance 2,959,824.00 1,414,480.77 958,593.21 248,254.93 5,581,152.91
II. Accumulated
depreciation
1.Opening balance 466,172.28 217,943.02 586,406.73 164,218.99 1,434,741.02
2.Current
133,192.08 129,547.84 104,557.24 18,048.42 385,345.58
increased
(1) Accrual 133,192.08 129,547.84 104,557.24 18,048.42 385,345.58
162
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
3.Current
31,067.05 31,067.05
decreased
(1) Disposal or
31,067.05 31,067.05
scrap
4.Ending balance 599,364.36 316,423.81 690,963.97 182,267.41 1,789,019.55
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
2,360,459.64 1,098,056.96 267,629.24 65,987.52 3,792,133.36
value
2.Opening book
2,493,651.72 1,259,748.01 372,186.48 65,917.12 4,191,503.33
value
(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
163
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
(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 2,360,459.64
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
Nil
22. Construction in progress
In RMB
Item Ending balance Opening balance
(1) Construction in progress
In RMB
Item Ending balance Opening balance
164
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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) Provision for impairment of construction in progress in the current period
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 Impairment Impairment
Book balance Book value Book balance Book value
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
165
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
(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
1.Opening balance 0.00
2.Current increased 0.00
3.Current decreased 0.00
4.Ending balance 0.00
1.Opening balance 0.00
2.Current increased 0.00
(1) Accrual 0.00
3.Current decreased 0.00
(1) Disposal 0.00
4.Ending balance 0.00
1.Opening balance 0.00
2.Current increased 0.00
(1) Accrual 0.00
3.Current decreased 0.00
(1) Disposal 0.00
4.Ending balance 0.00
1.Ending book value 0.00
2.Opening book value 0.00
Other explanation:
Nil
26. Intangible assets
(1) Intangible assets
In RMB
166
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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
&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
753,000.00 753,000.00
increased
(1) Accrual 753,000.00 753,000.00
3.Current
decreased
(1) Disposal
4.Ending
5,271,000.00 5,271,000.00
balance
III. Impairment
provision
167
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
1.Opening
balance
2.Current
increased
(1) Accrual
3.Current
decreased
(1) Disposal
4.Ending
balance
IV. Book value
1.Ending book
0.00 0.00
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:
There is no mortgage for intangible assets at the end of the period.
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
Other explanation
Nil
168
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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
Total 0.00 0.00 0.00 0.00
(2) Impairment provision of goodwill
In RMB
The invested Current increased Current decreased
Opening balance Ending balance
entity or items Accrual Dispose
Total 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
169
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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
4,308,692.80 1,077,173.20 4,170,328.65 1,042,582.16
assets
Total 4,308,692.80 1,077,173.20 4,170,328.65 1,042,582.16
(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
793,170.75 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
170
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Total 0.00 0.00 --
Other explanation:
Nil
31. Other non-current assets
In RMB
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Advance payment for house 400,000.00 0.00 400,000.00 400,000.00 0.00 400,000.00
Total 400,000.00 0.00 400,000.00 400,000.00 0.00 400,000.00
Other explanation:
As of December 31, 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:
171
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Including:
Other explanation:
Nil
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) 8,691,337.93 9,575,684.30
1-2 years (2 years included) 423,346.08 487,016.93
2-3 years (3 years included) 487,016.93 7,099.50
3-4 years (4 years included) 1,240.00 118,380.50
4-5 years (5 years included) 2,366.00
Over 5 years 3,204.00 838.00
Total 9,606,144.94 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:
At the end of the reporting period, there were no accounts payable due to shareholder units and other related parties that hold 5%
(including 5%) or more of the voting rights of the company.
172
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
At the end of the period, there is no important accounts payable with an aging of more than one year.
37. Account received in advance
(1) Account received in advance
In RMB
Item Ending balance Opening balance
(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 --
38. Contract liability
In RMB
Item Ending balance Opening balance
Cooperative received in advance 9,174,311.93
Rent received in advance 5,511,111.11
Goods received in advance 569,290.34 1,568,550.21
Total 15,254,713.38 1,568,550.21
Book value has major changes in the period and causes
In RMB
Item Amount changes Reason for change
Cooperative received in
9,174,311.93 Receipt in advance for the second phase of Zhonghua Garden
advance
Rent received in advance 5,511,111.11 Receipt of Renhui Woodenware Rental in Advance
Total 14,685,423.04 ——
39. Wage payable
(1) Wage payable
In RMB
Item Opening balance Current increased Current decreased Ending balance
I. Short-term
599,962.73 6,762,583.01 5,903,301.67 1,459,244.07
compensation
173
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
II. Post-employment
benefit-Defined 36,187.52 36,187.52
contribution plan
Total 599,962.73 6,798,770.53 5,939,489.19 1,459,244.07
(2) Short-term compensation
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Wages, bonus,
593,459.94 6,273,401.11 5,413,879.85 1,452,981.20
allowances and subsidy
2. Employee benefits 72,157.41 72,157.41
3. Social insurance 169,015.58 169,015.58
Including: Medical
155,322.88 155,322.88
insurance
Work injury
396.76 396.76
insurance
Maternity
13,295.94 13,295.94
insurance
4. Housing accumulation
171,624.98 171,624.98
fund
5. Labor union
expenditure and
6,502.79 76,383.93 76,623.85 6,262.87
personnel education
expense
Total 599,962.73 6,762,583.01 5,903,301.67 1,459,244.07
(3) Defined contribution plan
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Basic endowment
34,569.96 34,569.96
insurance
2. Unemployment
1,617.56 1,617.56
insurance
Total 36,187.52 36,187.52
Other explanation:
At the end of the period, there were no arrears in employee compensation.
174
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
40. Taxes payable
In RMB
Item Ending balance Opening balance
Value added tax 551,216.66 540,203.08
Corporate income tax 140,959.81 14,285.50
Individual income tax 23,398.74 21,755.56
Tax for maintaining and building cities 431.55 925.10
Stamp tax 6,043.60 7,270.30
Educational surtax 270.66 623.21
Total 722,321.02 585,062.75
Other explanation:
Nil
41. Other account payable
In RMB
Item Ending balance Opening balance
Other account payable 37,882,805.52 38,175,654.98
Total 37,882,805.52 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
(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
175
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
(3) Other account payable
1) By nature
In RMB
Item Ending balance Opening balance
Custodian and common benefit debts 18,728,866.44 18,764,512.80
Warranty and guarantee money 10,589,040.00 11,291,325.00
Intercourse funds 6,500,000.00 6,500,000.00
Other payable service charge (intermediary
832,359.55 876,599.88
services included)
Collection and payment 654,997.35
Other 577,542.18 743,217.30
Total 37,882,805.52 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 18,728,866.44
Warranty and guarantee money 1,580,040.00 Performance bond
Shenzhen Guosheng Energy Investment
6,500,000.00 Interest-free loans
Development Co., Ltd.
Total 26,808,906.44 --
Other explanation
Nil
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:
176
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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
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 Paid in Ending
Bond interest discount
value date period amount balance the Period the Period balance
by face amortizati
177
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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
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:
178
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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
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:
179
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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
Liability reckoned in reduction in Ending Balance d/income
Balance in the Period non-operatio changes
other income the period related
n revenue
Other explanation:
Nil
52. Other non-current liabilities
In RMB
Item Ending balance Opening balance
Other explanation:
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
180
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(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
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
Opening Account Less: written Less: Belong to Belong to Ending
Item Less: income
balance before in otherwritten in tax expense parent minority balance
income tax comprehensi other company shareholders
181
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
in the ve income in comprehe after tax after tax
period previous nsive
period and income in
carried previous
forward to period and
gains and carried
losses in forward to
current retained
period earnings in
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
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 0.00 0.00 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
182
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Add: net profit attributable to shareholders of
3,785,834.68 -7,186,905.64
parent company for this year
Retained profit at period-end -1,200,950,240.88 -1,204,736,075.56
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 108,929,796.13 100,882,228.24 71,095,404.57 67,928,471.12
Other business 8,927,684.04 2,339,395.49 4,927,283.18 753,000.00
Total 117,857,480.17 103,221,623.73 76,022,687.75 68,681,471.12
Whether the lower of the audited net profit before and after deduction of non-recurring gains and losses is negative
□Yes √No
Revenue:
In RMB
Contract type 1# Division 2# Division Total
Product type 87,064,073.74 30,793,406.43 117,857,480.17
Including:
Jewelry Gold 87,064,073.74 87,064,073.74
Bicycle lithium battery
30,793,406.43 30,793,406.43
materials and other
Including:
Including:
Including:
Including:
Including:
Including:
Total 87,064,073.74 30,793,406.43 117,857,480.17
Information relating to performance obligation:
183
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Nil
Information relating to the transaction price assigned to the remaining performance obligation:
The amount of revenue corresponding to performance obligation that have been signed but have not been fulfilled or have not been
fulfilled at the end of the period was 0.00 Yuan, including 0.00 Yuan is expected to be recognized as revenue in subsequent years,
0.00 Yuan is expected to be recognized as revenue in subsequent years, 0.00 Yuan is expected to be recognized as revenue in
subsequent years.
Other explanation
Nil
62. Tax and extras
In RMB
Item Current Period Last Period
Tax for maintaining and building cities 34,962.95 4,714.10
Educational surtax 24,973.54 8,179.47
Stamp tax 46,243.90 44,621.80
Other 1,889.84 1,889.84
Total 108,070.23 59,405.21
Other explanation:
Nil
63. Sales expenses
In RMB
Item Current Period Last Period
Employee compensation 1,078,110.71 1,301,441.35
Marketing promotion fees 1,193,544.17 792,290.55
Business entertainment 17,031.00 52,516.39
Business travel expenses 133,656.78 421,922.06
Lease fee 3,834.00 433,292.57
Other 114,480.37 177,013.47
Total 2,540,657.03 3,178,476.39
Other explanation:
Nil
64. Administrative expenses
In RMB
184
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Item Current Period Last Period
Employee compensation 2,152,793.42 2,579,922.45
Intermediary service fee 1,427,424.80 3,149,023.50
Daily management expenses 911,300.72 327,050.29
Depreciation and amortization 292,089.38 353,469.35
Total 4,783,608.32 6,409,465.59
Other explanation:
Nil
65. R&D expenses
In RMB
Item Current Period Last Period
Employee compensation and benefits 1,675,573.59 1,409,100.34
Direct input 368,483.15 763,338.82
Factory rent and utilities 178,534.58 553,243.59
Depreciation of fixed assets 93,256.20 23,144.40
Other 191,030.05 4,450.57
Total 2,506,877.57 2,753,277.72
Other explanation:
Nil
66. Financial expenses
In RMB
Item Current Period Last Period
Interest income -89,977.25 -110,834.04
Commission charge etc. 20,827.96 15,432.87
Other 87,868.03
Total 18,718.74 -95,401.17
Other explanation:
Nil
67. Other income
In RMB
Sources Current Period Last Period
185
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Processing fee from individual tax refund 10,207.52
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 -9,707.78 -39,386.50
Bad debt losses of accounts receivable -593,472.35 -2,493,679.37
Total -603,180.13 -2,533,065.87
Other explanation:
Nil
72. Losses of devaluation of asset
In RMB
Item Current Period Last Period
II. Loss of inventory falling price and loss
-198,181.03 -499,175.17
of contract performance cost impairment
186
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Total -198,181.03 -499,175.17
Other explanation:
Nil
73. Income from assets disposal
In RMB
Sources Current Period Last Period
Dispose income of fixed assets 24,936.44
74. Non-operating income
In RMB
Amount reckoned in current
Item Current Period Last Period
non-recurring gains/losses
Government subsidy 100,000.00 100,000.00
Other 6,442,649.75 6,259,839.85 6,442,649.75
Total 6,542,649.75 6,259,839.85 6,542,649.75
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)
Subsidies
received by
the state to
guarantee the
supply of
Anti-epidemi certain public Income-relate
Government Subsidy N N 100,000.00 0.00
c subsidies utilities or d
socially
necessary
products or
price control
functions
Other explanation:
1. Non-operation revenue last period mainly due to the rental revenue settle with the custodian, that is 5,565,684.61 Yuan and
compensation of 399,113.20 Yuan;
187
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
2. Non-operation revenue in current period mainly due to the rental revenue settle with the custodian, that is 5,662,149.79 Yuan and
compensation of 312,266.98 Yuan;
75. Non-operating expenses
In RMB
Amount reckoned in current
Item Current Period Last Period
non-recurring gains/losses
Litigation compensation,
liquidated damages and late 498,050.00 188.00 498,050.00
fees, etc.
Loss of old trademark scrap 461,858.18
Other 5,190,229.29 5,603,102.65 5,190,229.29
Total 5,688,279.29 6,065,148.83 5,688,279.29
Other explanation:
In the period and last period, the operation assets for assets to be disposed are not allocated by management, relevant maintenance
and management costs are paid by the revenue and loss compensation income from assets leasing (the assets to be disposed),
reckoned into non-operating expenditure
76. Income tax expenses
(1) Income tax expenses
In RMB
Item Current Period Last Period
Current income tax expense 140,959.81 14,285.50
Deferred income tax expense 249,411.41 -1,960.98
Total 390,371.22 12,324.52
(2) Adjustment on accounting profit and income tax expenses
In RMB
Item Current Period
Total Profit 4,766,077.81
Income tax measured by statutory/applicable tax rate 714,911.66
The impact of applying different tax rates to subsidiaries -191,529.43
Impact on cost, expenses and losses that unable to deducted 67,265.94
Impact by the deductible losses of the un-recognized previous
-357,710.57
deferred income tax
188
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Impact on deductible temporary differences or losses deductible
387,397.65
which was un-recognized as deferred income tax assets
The impact of R&D deductions -229,964.03
Income tax expenses 390,371.22
Other explanation
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, rent, utilities, etc. 10,999,135.69 6,348,431.90
Item cooperation 10,000,000.00
Deposits and guarantees received 7,388,109.00 1,916,551.74
Government subsidy and individual tax
110,207.52
handling fee refund
Other 26,834.21 150,980.41
Total 28,524,286.42 8,415,964.05
Explanation on other cash received in relation to operation activities:
Nil
(2) Other cash paid in relation to operation activities
In RMB
Item Current Period Last Period
Expenses such as rent and property
5,190,228.77 5,203,779.09
management maintenance fees
Sales, management and R&D expenses 1,770,529.68 4,452,767.97
Deposits and security deposits paid 6,902,256.00 363,930.00
Litigation compensation, liquidated
498,050.00
damages and late fees, etc.
Handling expenses 20,827.96 15,432.87
Other current accounts 1,232,265.94
189
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Other 71,445.29 151,193.17
Total 14,453,337.70 11,419,369.04
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 2,000,000.00
Total 2,000,000.00
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
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
190
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Supplementary information Current period Last Period
1． Net profit adjusted to cash flow of
-- --
operation activities:
Net profit 4,375,706.59 -7,813,881.65
Add: Assets impairment provision 801,361.16 3,032,241.04
Depreciation of fixed assets,
consumption of oil assets and depreciation of 385,345.58 376,613.75
productive biology assets
Depreciation of right-of-use assets
Amortization of intangible assets 753,000.00 753,000.00
Amortization of long-term deferred
expenses
Loss from disposal of fixed assets,
intangible assets and other long-term assets -24,936.44
(gain is listed with “-”)
Losses on scrapping of fixed assets
(gain is listed with “-”)
Gain/loss of fair value changes
(gain is listed with “-”)
Financial expenses (gain is listed
with “-”)
Investment loss (gain is listed with
“-”)
Decrease of deferred income tax
249,411.41 -1,960.98
asset ((increase is listed with “-”)
Increase of deferred income tax
liability (decrease is listed with “-”)
Decrease of inventory (increase is
-1,849,176.67 -4,190,901.53
listed with “-”)
Decrease of operating receivable
-15,548,865.13 -808,843.28
accounts (increase is listed with “-”)
Increase of operating payable accounts
14,800,382.46 -5,138,208.69
(decrease is listed with “-”)
Other
Net cash flows arising from operating
3,942,228.96 -13,791,941.34
activities
2. Material investment and financing not
-- --
involved in cash flow
191
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Conversion of debt into capital
Switching Company bonds due within
one year
financing lease of fixed assets
3. Net change of cash and cash equivalents: -- --
Balance of cash at period end 19,887,978.05 6,074,367.91
Less: Balance of cash equivalent at
6,074,367.91 16,488,886.26
year-begin
Add: Balance at year-end of cash
equivalents
Less: Balance at year-begin of cash
equivalents
Net increase of cash and cash equivalents 13,813,610.14 -10,414,518.35
(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
192
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
I. Cash 19,887,978.05 6,074,367.91
Including: Cash on hand 21,530.26 89,313.66
Bank deposit available for payment
19,866,447.79 5,979,003.60
at any time
Other monetary fund available for
6,050.65
payment at any time
Ⅲ. Balance of cash and cash equivalent at
19,887,978.05 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 period:
Nil
81. Assets with ownership or use right restricted
In RMB
Item Ending book value Restriction reasons
Total 0.00 --
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
193
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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
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
Anti-epidemic subsidies 100,000.00 Non-operating income 100,000.00
(2) Government grants rebate
□Applicable √Not applicable
Other explanation:
Nil
85. Other
Nil
194
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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
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
195
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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
Income of the Net profit of
combined the combined
Income of the Net profit of
party from party from
Basis of Standard to combined the combined
Equity ratio period-begin period-begin
Combined combined Combination determine the party during party during
obtained in of of
party under the date combination the the
combination combination combination
same control date comparison comparison
to the to the
period period
combination combination
date date
Other explanation:
(2) Combination cost
In RMB
Combination cost
Explanation on contingent consideration and its changes:
Other explanation:
(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:
Other explanation:
196
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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
4. Subsidiary disposal
Whether lost controlling rights while dispose subsidiary on one time or not
□ Yes √ No
Whether lost controlling rights in the Period while dispose subsidiary on two or more steps or not
□ Yes √ No
5. Other reasons for consolidation range changed
Reasons for changed on consolidation range (such as new subsidiary established, subsidiary liquidated etc.)And relevant information
On 21 July 2020, subsidiary Shenzhen Emmelle Industrial Co., Ltd contributes 70% and Shenzhen Zhenbangda Technology Co., Ltd
contributes 30% together to established the Shenzhen Emmelle Cloud Technology Co., Ltd. The enterprise was included in
consolidate statement scope since the date of established.
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
Sales of bicycles
Emmelle Industry Shenzhen Shenzhen 70.00% Investment
and spare parts
Co., Ltd.
Shenzhen Xinsen
Jewelry,
Jewelry Gold
Shenzhen Shenzhen diamonds, gold 65.00% Investment
Supply Chain
sales
Co., Ltd.
Shenzhen Software and
Emmelle Cloud Shenzhen Shenzhen information 49.00% Investment
Technology Co., technology
197
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Ltd. service sales
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
Nil
Basis for controlling the invested entity with half or below voting rights held and without controlling invested entity but with over
half and over voting rights
Subsidiary of the Company-Shenzhen Emmelle Industry Co., Ltd. (with 70% equity held by the Company) holds 70% equity of
Shenzhen Emmelle Cloud Technology Co., Ltd
Controlling basis for the structuring entity included in consolidated range
Nil
Basis on determining to be an agent or consignor:
Nil
Other explanation:
Nil
(2) Important non-wholly-owned subsidiary
In RMB
Dividend announced to
Share-holding ratio of Gains/losses attributable Ending equity of
Subsidiary distribute for minority in
minority to minority in the Period minority
the Period
Shenzhen Emmelle
30.00% -361,173.21 1,593,074.01
Industry Co., Ltd.
Shenzhen Xinsen Jewelry
Gold Supply Chain Co., 35.00% 945,115.60 12,538,055.17
Ltd.
Shenzhen Emmelle
Cloud Technology Co., 51.00% 5,929.52 605,929.52
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
Current Non-curr Total Current Non-curr Total Current Non-curr Total Current Non-curr Total
ry
assets ent assets liability ent liabilities assets ent assets liability ent liabilities
198
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
assets liability assets liability
Shenzhe
n
12,402,5 2,418,25 14,820,7 9,510,50 9,510,50 15,468,8 1,418,41 16,887,2 10,373,0 10,373,0
Emmelle 0.00 0.00
02.99 0.69 53.68 6.99 6.99 11.90 5.71 27.61 70.21 70.21
Industry
Co., Ltd.
Shenzhe
n Xinsen
Jewelry
44,211,8 36,552.0 44,248,4 9,832,52 9,832,52 8,696,93 8,698,89 1,933,35 1,933,35
Gold 0.00 1,960.98 0.00
49.29 2 01.31 9.38 9.38 5.06 6.04 4.41 4.41
Supply
Chain
Co., Ltd.
Shenzhe
n
Emmelle
2,037,69 2,037,69 26,068.0 26,068.0
Cloud 0.00 0.00
4.53 4.53 2 2
Technolo
gy 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
Emmelle 15,470,013.0
3,160,952.74 -1,203,910.71 -1,203,910.71 -1,652,170.89 -2,399,718.61 -2,399,718.61 -6,376,002.30
Industry Co., 0
Ltd.
Shenzhen
Xinsen
87,064,073.7 -18,103,601.1
Jewelry Gold 2,700,330.30 2,700,330.30 4,619,038.46 265,541.63 265,541.63 -5,608,748.24
4 7
Supply Chain
Co., Ltd.
Shenzhen
Emmelle
Cloud 952,935.51 11,626.51 11,626.51 -117,837.47
Technology
Co., Ltd.
Other explanation:
199
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Nil
(4) Major restriction on using corporate assets and liquidate corporate debts
Nil
(5) Financial or other supporting provided to structuring entity that included in consolidated financial
statement
Nil
Other explanation:
Nil
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
(1) Owners equity shares changed in subsidiary
Nil
(2) Impact on minority’s interest and owners’ equity attributable to parent company
In RMB
Other explanation
Nil
3. Equity in joint venture and 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:
Nil
Basis of the voting rights with 20% below but with major influence, or without major influence but with over 20% (20% included)
voting rights hold:
Nil
(2) Main financial information of the important joint venture
In RMB
200
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Ending balance/Current Period Opening balance/Last Period
Other explanation
Nil
(3) Main financial information of the important associated enterprise
In RMB
Ending balance/Current Period Opening balance/Last Period
Other explanation
Nil
(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
Nil
(5) Assets transfer ability has major restriction from joint venture or associated enterprise
Nil
(6) Excess losses from joint venture or associated enterprise
In RMB
Un-confirmed losses not
Joint venture or associated Cumulative un-confirmed Cumulative un-confirmed
recognized in the Period (or net
enterprise losses losses at period-end
profit enjoyed in the Period)
Other explanation
Nil
201
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
(7) Un-confirmed commitment with investment concerned with joint venture
Nil
(8) Contingent liability with investment concerned with joint venture or associated enterprise
Nil
4. Co-runs operation
Share-holding ratio/share enjoyed
Name Main operation place Registered place Business nature
Directly Indirectly
Share-holding ratio or shares enjoyed different from voting right ratio:
Nil
If the co-runs entity is the separate entity, basis of the co-runs classification
Nil
Other explanation
Nil
5. Equity in structuring entity that excluding in the consolidated financial statement
Relevant explanation
Nil
6. Other
Nil
X. Risk related with financial instrument
The major financial instruments of the Company consist of monetary 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.
202
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
(1) Credit risk
Credit risk represents the risk of financial loss suffered by a party to a financial instrument due to failure of performance obligation of
another party.
Credit risk of the Company is managed by category. Credit risk mainly arises from bank deposits and trade receivables. Since the
bank deposits of the Company are mainly placed with those banks of high credit rating, the Company expects no significant credit
risk on bank deposits.
As for trade receivables, the Company establishes relevant policies to control credit risk exposure. The Company, based on financial
position of debtors, their credit records, market conditions and other factors, makes assessment on debtors’ credit quality and sets
relevant limit on amount of debt and credit term. The maximum credit risk exposure assumed by the Company equals to the sum of
carrying value of every financial asset in the balance sheet. The Company provides no guarantee that may lead it to be exposed to
credit risks.
(2) Liquidity risk
Liquidity risk refers to the risk of capital shortage of the Company when performing settlement obligation via delivery of cash or
other financial assets.
When managing liquidity risk, the Company maintains and monitors such cash and cash equivalents as deemed adequate by the
management, so as to satisfy its operation needs and minimize influence of fluctuation of cash flow. Management of the Company
monitors application of bank borrowings to make sure it complies with relevant borrowing agreements.
2. Capital management
The capital management policy of the Company is designed to ensure sustainable operation Of the Company so as to bring
shareholders return and benefit other stakeholders, and to minimize capital cost by maintaining optimal capital structure.
In order to maintain and adjust capital structure, the Company may adjust share dividend paid to shareholders or issue new shares.
The Company monitors capital structure based on gearing ratio (total liabilities divided by total assets). As at 31 December 2020, the
gearing ratio of the Company was 72.05% (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
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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
204
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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
Nil
4. Other related party
Other related party Relationship with the Company
Supervisor of the Company Li Jialin is the legal person of the
Shenzhen Huahui Tongda Industrial Co., Ltd.
enterprise
Shenzhen Zuanjinsen Jewelry Co., Ltd. Subsidiary Xinsen Jewelry Shareholder
Shenzhen Guosheng Energy Investment Development Co., Ltd. The first majority 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. hold 35% equity of Shenzhen Xinsen Jewelry 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
205
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Transaction Approved transaction Whether more than
Related party Current Period Last Period
content amount the transaction amount
Shenzhen
Zuankinson Jewelry Purchase of raw
0.00 No 2,428,035.40
and Gold Supply materials
Chain Co., Ltd.
Goods sold/labor service providing
In RMB
Related party Transaction content Current Period Last Period
Shenzhen Huahui Tongda
Sales of goods 18,409.04
Industrial Co., Ltd.
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
206
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Lease income in recognized in Lease income in recognized last
Lessor Assets type
the Period the Period
Explanation on related lease
Nil
(4) Related guarantee
As a guarantor for the Company
In RMB
Guarantee completed
Secured party Amount guarantee Starting date Maturity date
(Y/N)
As a secured party for the Company
In RMB
Guarantee completed
Guarantor Amount guarantee Starting date Maturity date
(Y/N)
Explanation on related guarantee
Nil
(5) Borrowed funds of related party
In RMB
Related party Borrowed funds Starting date 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 1,600,350.50 1,439,685.05
(8) Other related transactions
a. 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
207
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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.
b. Fuzhou Zuankinson Jewelry Co., Ltd.,a wholly-owned subsidiary of Shenzhen Zuankinson Jewelry and Gold Supply Chain Co.,
Ltd. which is a shareholder of Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd.,a subsidiary of the Company, participated in
subscribing to the Company’s non-public offering of shares, paid performance bond of 2 million yuan to the Company during the
reporting period.
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
Shenzhen
Zuankinson Jewelry
Other current assets 301,754.90
and Gold Supply
Chain Co., Ltd.
(2) Payable item
In RMB
Item Related party Ending book balance Opening book balance
Shenzhen Guosheng Energy
Other account payable Investment Development Co., 6,500,000.00 6,500,000.00
Ltd.
7. Commitments of related party
8. Other
XIII. Share-based payment
1. General share-based payment
□Applicable √Not applicable
208
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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
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
209
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
2. Profit distribution
In RMB
3. Sales return
Nil
4. Other events after balance sheet date
Nil
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
210
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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
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 to the account 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 87,064,073.74 30,793,406.43 117,857,480.17
Main business cost 80,940,595.81 22,281,027.92 103,221,623.73
The total profit 2,806,062.52 1,960,015.29 4,766,077.81
Income tax expense 105,732.22 284,639.00 390,371.22
Net profit 2,700,330.30 1,675,376.29 4,375,706.59
Total assets 44,248,401.31 67,454,748.41 19,960,379.73 91,742,769.99
Total liabilities 9,832,529.38 56,267,950.93 66,100,480.31
Shareholders' equity
34,415,871.93 11,186,797.48 19,960,379.73 25,642,289.68
Total
211
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
(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
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 7,503,67 2,251,10 5,252,570 6,975,081 2,092,524 4,882,557.2
28.23% 30.00% 19.92% 30.00%
provision accrual by 1.53 1.47 .06 .75 .53 2
single basis
Including:
Accounts with single
minor amount but
7,503,67 2,251,10 5,252,570 1,939,478 581,843.4 1,357,634.6
with bad debts 28.23% 30.00% 5.54% 30.00%
1.53 1.47 .06 .00 0 0
provision accrued
individually
Accounts receivable
with a significant 5,035,603 1,510,681 3,524,922.6
14.38% 30.00%
single amount but a .75 .13 2
separate provision for
212
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
bad debts
Account receivable
with bad debt 19,079,6 57,238.8 19,022,36 28,045,11 27,960,979.
71.77% 0.30% 80.08% 84,135.34 0.30%
provision accrual by 04.72 2 5.90 4.82 48
portfolio
Including:
Account receivable
withdrawal bad debt
provision by group of
19,079,6 57,238.8 19,022,36 28,045,11 27,960,979.
credit risk 71.77% 0.30% 80.08% 84,135.34 0.30%
04.72 2 5.90 4.82 48
characteristics
(Aging analysis
method)
26,583,2 2,308,34 24,274,93 35,020,19 2,176,659 32,843,536.
Total 100.00% 8.68% 100.00% 6.22%
76.25 0.29 5.96 6.57 .87 70
Bad debt provision accrual on single basis: Account receivable with significant single amount period-end but withdrawal bad debt
provision on single basis
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Shenzhen Jiahaosong Expected to be difficult
2,393,603.75 718,081.13 30.00%
Technology Co., Ltd. to recover
Shenzhen Weiterui New
Expected to be difficult
Energy Technology Co., 1,670,971.05 501,291.32 30.00%
to recover
Ltd.
Zhengzhou Guiguan Expected to be difficult
1,007,233.79 302,170.14 30.00%
Tech. Trade. Co., Ltd to recover
Dongguan Daxiang New Expected to be difficult
816,902.94 245,070.88 30.00%
Energy Co., Ltd. to recover
Suzhou Jiaxin Economic Expected to be difficult
888,757.00 266,627.10 30.00%
Trade Co., Ltd. to recover
Guangdong Xinlingjia Expected to be difficult
371,136.00 111,340.80 30.00%
New Energy Co., Ltd. to recover
Suzhou Daming Vehicle Expected to be difficult
355,067.00 106,520.10 30.00%
Industry Co., Ltd. to recover
Total 7,503,671.53 2,251,101.47 -- --
Bad debt provision accrual on single basis:
In RMB
Name Ending balance
213
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Book balance Bad debt provision Accrual ratio Accrual causes
Bad debt provision accrual on portfolio: Account receivable withdrawal bad debt provision by group of credit risk characteristics
(Aging analysis method)
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio
Within one year (one year
16,908,018.78 50,724.06 0.30%
included)
1-2 years (2 years included) 2,171,585.94 6,514.76 0.30%
Total 19,079,604.72 57,238.82 --
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:
Nil
Bad debt provision accrual on portfolio:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio
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:
Nil
Bad debt provision accrual on portfolio:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio
Explanation on portfolio basis:
Nil
Bad debt provision accrual on portfolio:
214
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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 Book balance
Within one year (one year included) 18,950,125.83
Within one year 18,950,125.83
1-2 years 7,633,150.42
Total 26,583,276.25
(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 Write off Other
reversal
Bad debt
provision for
2,176,659.87 131,680.42 2,308,340.29
accounts
receivable
Total 2,176,659.87 131,680.42 0.00 0.00 0.00 2,308,340.29
Including important amount of bad debt provision collected or reversal in the period:
In RMB
Enterprise Amount collected or reversal Collection way
Total 0.00 --
(2) Account receivables actually charge-off during the reporting period
In RMB
Item Amount charge-off
Including major account receivables charge-off:
In RMB
215
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
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 -- -- --
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 Ending balance of bad bet
Name
receivable balance of accounts receivable provision
Guangshui Jiaxu Energy
16,308,000.33 61.35% 48,924.00
Technology Co., Ltd.
Shenzhen Jiahaosong
2,393,603.75 9.00% 718,081.13
Technology Co., Ltd.
Shenzhen Weiterui New Energy
1,670,971.05 6.29% 501,291.32
Technology Co., Ltd.
Hubei Testun Electronic
1,145,000.00 4.31% 3,435.00
Technology Co., Ltd.
Zhengzhou Guiguan Tech.
1,007,233.79 3.79% 302,170.14
Trade. Co., Ltd
Total 22,524,808.92 84.74%
(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
2. Other account receivable
In RMB
Item Ending balance Opening balance
Other account receivable 115,263.05 485,062.44
Total 115,263.05 485,062.44
216
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
(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
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:
Nil
217
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
(3) Other account receivable
1) By nature
In RMB
Account nature Ending book balance Opening book balance
Deposit or margin 105,713.00 484,822.00
Payment for equipment 11,400.00 11,400.00
Reserve 10,396.88 2,000.00
Total 127,509.88 498,222.00
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,
13,159.56 13,159.56
2020
January 1, 2020 balance
—— —— —— ——
in the current period
Reversal in Current
912.73 912.73
Period
Balance on December 31,
12,246.83 12,246.83
2020
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 Book balance
Within one year (one year included) 113,609.88
Within one year (one year included) 113,609.88
1-2 years 2,000.00
Over 3 years 11,900.00
3-4 years 200.00
4-5 years 11,700.00
Total 127,509.88
218
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
Bad debt provision
13,159.56 912.73 12,246.83
for other receivables
Total 13,159.56 912.73 12,246.83
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
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 one year 47.23% 180.67
(Group) Co., Ltd.
219
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Shenzhen Haiyida
Decoration Design Deposit or margin 34,550.00 Within one year 27.10% 103.65
Engineering Co., Ltd.
Shenzhen Hongkang
Instrument Equipment 11,400.00 4-5 years 8.94% 11,400.00
Technology Co., Ltd.
Shenzhen Pengji
Property Management Deposit or margin 10,441.00 Within one year 8.19% 31.32
Service Co., Ltd.
Wu Furong Reserve fund 2,000.00 Within one year 1.57% 6.00
Total -- 118,613.00 -- 93.02% 11,721.64
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:
At the end of the period, other account receivables did not include shareholder units and other related parties holding 5% (including 5%)
or more of the voting rights of the company.
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
21,350,000.00 1,389,620.27 19,960,379.73 5,625,000.00 1,389,620.27 4,235,379.73
subsidiary
Total 21,350,000.00 1,389,620.27 19,960,379.73 5,625,000.00 1,389,620.27 4,235,379.73
220
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
(1) Investment for subsidiary
In RMB
Changes in the period (+, -)
Opening Ending balance
The invested Accrual of Ending Balance
Balance Additional Capital of impairment
entity impairment Other (Book value)
(Book value) investment reduction provision
provision
Shenzhen
Emmelle
10,379.73 10,379.73 1,389,620.27
Industry Co.,
Ltd.
Shenzhen
Xinsen Jewelry
4,225,000.00 15,725,000.00 19,950,000.00
Gold Supply
Chain Co., Ltd.
Total 4,235,379.73 15,725,000.00 19,960,379.73 1,389,620.27
(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
221
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Current Period Last Period
Item
Revenue Cost Revenue Cost
Main business 20,057,964.04 19,427,326.43 54,012,420.29 52,204,470.16
Other business 8,821,133.12 2,273,363.81 3,753,308.11 753,000.00
Total 28,879,097.16 21,700,690.24 57,765,728.40 52,957,470.16
Revenue:
In RMB
Contract type 1# Division 2# Division Total
Including:
Including:
Including:
Including:
Including:
Including:
Including:
Information relating to performance obligation:
Nil
Information relating to the transaction price assigned to the remaining performance obligation:
The amount of income corresponding to the performance obligations that have been signed at the end of this reporting period but
have not yet been fulfilled or have not done with fulfillment is 0.00 yuan, among them, yuan of revenue is expected to be recognized
in YEAR, yuan of revenue is expected to be recognized in YEAR, and yuan of revenue is expected to be recognized in YEAR.
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
222
深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Item Amount Note
Dispose profit and loss of non-current assets 24,936.44
Other non-operating income and expenditure
754,370.46
except for the aforementioned items
Less: Impact on income tax 0.18
Impact on minority shareholders’ equity 65,223.94
Total 714,082.78 --
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
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
42.01% 0.0069 0.0069
stockholders of the Company
Net profits belong to common stock
stockholders of the Company after
34.08% 0.0056 0.0056
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
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
4. Other
Nil
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深圳中华自行车(集团)股份有限公司 2020 年年度报告全文
Section XIII. Documents available for reference
1. Accounting statement carrying the signatures and seals of the legal representative, person in charge of accounting and person in
charge of accounting organ.
2. Original audit report with seal of the accounting firm and signature and seal of CPAs.
3. Originals documents of the Company and manuscripts of public notices that disclosed in the newspaper designated by CSRC in the
report period.
4. English version of the Annual Report 2020
Board of Directors of
Shenzhen China Bicycle Company (Holdings) Limited
23 April 2021
225
