Shenzhen China Bicycle Company (Holdings) Limited
Semi-Annual Report 2021
Financial Report
I. Audit report
Whether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been audited
II. Financial Statement
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated Balance Sheet
Prepared by Shenzhen China Bicycle Company (Holdings) Limited
June 30, 2021
In RMB/CNY
Item June 30, 2021 December 31, 2020
Current assets:
Monetary funds 17,434,893.24 19,887,978.05
Settlement provisions
Capital lent
Trading financial assets
Derivative financial assets
Note receivable
Account receivable 55,552,419.15 55,031,424.70
Receivable financing
Accounts paid in advance 4,382,245.09 816,541.52
Insurance receivable
1
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 654,021.99 576,770.36
Including: Interest receivable
Dividend receivable
Buying back the sale of financial
assets
Inventories 7,601,075.77 7,729,325.94
Contractual assets
Assets held for sale
Non-current asset due within one
year
Other current assets 3,340,005.35 2,715,425.31
Total current assets 88,964,660.59 86,757,465.88
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment
Investment in other equity
instrument
Other non-current financial assets
Investment real estate
Fixed assets 3,612,186.01 3,792,133.36
Construction in progress
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets
Expense on Research and
Development
Goodwill
Long-term expenses to be
apportioned
2
Deferred income tax asset 793,170.75 793,170.75
Other non-current asset 1,135,849.05 400,000.00
Total non-current asset 5,541,205.81 4,985,304.11
Total assets 94,505,866.40 91,742,769.99
Current liabilities:
Short-term loans
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable
Account payable 9,986,504.06 9,606,144.94
Accounts received in advance
Contractual liability 16,699,148.73 15,254,713.38
Selling financial asset of
repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 813,937.14 1,459,244.07
Taxes payable 752,945.33 722,321.02
Other account payable 37,658,215.37 37,882,805.52
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 1,374,986.67 1,175,251.38
Total current liabilities 67,285,737.30 66,100,480.31
Non-current liabilities:
Insurance contract reserve
3
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 67,285,737.30 66,100,480.31
Owner’s equity:
Share capital 551,347,947.00 551,347,947.00
Other equity instrument
Including: Preferred stock
Perpetual capital
securities
Capital public reserve 627,834,297.85 627,834,297.85
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus public reserve 32,673,227.01 32,673,227.01
Provision of general risk
Retained profit -1,199,584,747.54 -1,200,950,240.88
Total owner’ s equity attributable to
12,270,724.32 10,905,230.98
parent company
Minority interests 14,949,404.78 14,737,058.70
Total owner’ s equity 27,220,129.10 25,642,289.68
Total liabilities and owner’ s equity 94,505,866.40 91,742,769.99
Legal Representative: Li Hai
Person in charge of Accounting Works: Sun Longlong
4
Person in charge of Accounting Institution: Zhong Xiaojin
2. Balance Sheet of Parent Company
In RMB/CNY
Item June 30, 2021 December 31, 2020
Current assets:
Monetary funds 9,500,564.76 10,097,024.59
Trading financial assets
Derivative financial assets
Note receivable
Account receivable 24,528,945.87 24,274,935.96
Receivable financing
Accounts paid in advance 985,143.87 800,000.00
Other account receivable 129,953.19 115,263.05
Including: Interest receivable
Dividend receivable
Inventories 509,377.73 550,421.78
Contractual assets
Assets held for sale
Non-current assets maturing within
one year
Other current assets 2,978,772.76 2,652,771.13
Total current assets 38,632,758.18 38,490,416.51
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 19,960,379.73 19,960,379.73
Investment in other equity
instrument
Other non-current financial assets
Investment real estate
Fixed assets 3,400,670.61 3,530,501.40
Construction in progress
Productive biological assets
5
Oil and natural gas assets
Right-of-use assets
Intangible assets
Research and development costs
Goodwill
Long-term deferred expenses
Deferred income tax assets
Other non-current assets 1,135,849.05 400,000.00
Total non-current assets 24,496,899.39 23,890,881.13
Total assets 63,129,657.57 62,381,297.64
Current liabilities:
Short-term borrowings
Trading financial liability
Derivative financial liability
Notes payable
Account payable 576,266.32 748,604.24
Accounts received in advance
Contractual liability 15,134,353.38 14,685,423.04
Wage payable 609,508.72 1,146,371.58
Taxes payable 12,953.86 24,906.50
Other accounts payable 39,379,876.05 39,409,824.37
Including: Interest payable
Dividend payable
Liability held for sale
Non-current liabilities due within
one year
Other current liabilities 1,175,960.12 1,101,243.63
Total current liabilities 56,888,918.45 57,116,373.36
Non-current liabilities:
Long-term loans
Bonds payable
Including: Preferred stock
Perpetual capital
securities
Lease liability
6
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 56,888,918.45 57,116,373.36
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 -1,205,614,732.74 -1,206,590,547.58
Total owner’s equity 6,240,739.12 5,264,924.28
Total liabilities and owner’s equity 63,129,657.57 62,381,297.64
3. Consolidated Profit Statement
In RMB/CNY
Item Semi-annual of 2021 Semi-annual of 2020
I. Total operating income 54,130,317.60 42,656,355.21
Including: Operating income 54,130,317.60 42,656,355.21
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 54,197,658.54 40,013,244.72
Including: Operating cost 48,590,120.12 36,100,765.65
7
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 41,264.77 19,899.04
Sales expense 876,189.13 1,478,378.78
Administrative expense 2,619,117.48 1,679,719.44
R&D expense 2,120,389.55 753,742.20
Financial expense -49,422.51 -19,260.39
Including: Interest
expenses
Interest income -74,408.45 -31,929.72
Add: Other income 2,516.00 10,105.77
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
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 1,318,717.42 170,387.85
8
(Loss is listed with “-”)
Losses of devaluation of asset
27,669.02
(Loss is listed with “-”)
Income from assets disposal
24,936.44
(Loss is listed with “-”)
III. Operating profit (Loss is listed with
1,281,561.50 2,848,540.55
“-”)
Add: Non-operating income 457,664.40 744,788.91
Less: Non-operating expense 2,676.80
IV. Total profit (Loss is listed with “-”) 1,739,225.90 3,590,652.66
Less: Income tax expense 161,386.48 170,038.76
V. Net profit (Net loss is listed with “-”) 1,577,839.42 3,420,613.90
(i) Classify by business continuity
1.continuous operating net profit
1,577,839.42 3,420,613.90
(net loss listed with ‘-”)
2.termination of net profit (net loss
listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s
1,365,493.34 2,797,643.50
of parent company
2.Minority shareholders’ gains and
212,346.08 622,970.40
losses
VI. Net after-tax of other comprehensive
income
Net after-tax of other comprehensive
income attributable to owners of parent
company
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
9
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 1,577,839.42 3,420,613.90
Total comprehensive income
1,365,493.34 2,797,643.50
attributable to owners of parent Company
Total comprehensive income
212,346.08 622,970.40
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0025 0.0051
(ii) Diluted earnings per share 0.0025 0.0051
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and
realized 0 Yuan at last period for combined party
10
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/CNY
Item Semi-annual of 2021 Semi-annual of 2020
I. Operating income 12,378,683.92 15,950,824.42
Less: Operating cost 10,513,040.90 12,634,196.40
Taxes and surcharge 6,780.60 7,511.96
Sales expenses 342,616.35 256,975.98
Administration expenses 1,308,649.65 1,136,110.22
R&D expenses 985,885.21 753,742.20
Financial expenses -56,817.01 -11,110.06
Including: Interest
expenses
Interest
-65,092.61 -16,963.68
income
Add: Other income 2,501.91 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 “-”)
Net exposure hedging income
(Loss is listed with “-”)
Changing income of fair
value (Loss is listed with “-”)
Loss of credit impairment 1,209,451.29 204,620.45
11
(Loss is listed with “-”)
Losses of devaluation of asset
27,669.02
(Loss is listed with “-”)
Income on disposal of assets
24,936.44
(Loss is listed with “-”)
II. Operating profit (Loss is listed with
518,150.44 1,411,549.73
“-”)
Add: Non-operating income 457,664.40 177,227.94
Less: Non-operating expense
III. Total Profit (Loss is listed with “-”) 975,814.84 1,588,777.67
Less: Income tax
IV. Net profit (Net loss is listed with
975,814.84 1,588,777.67
“-”)
(i) continuous operating net profit
975,814.84 1,588,777.67
(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
items which will be reclassified
subsequently to profit or loss
12
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 975,814.84 1,588,777.67
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB/CNY
Item Semi-annual of 2021 Semi-annual of 2020
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 56,072,881.75 25,999,057.43
services
Net increase of customer deposit
and interbank deposit
Net increase of loan from central
bank
Net increase of capital borrowed
from other financial institution
Cash received from original
insurance contract fee
Net cash received from reinsurance
13
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 2,666.96 10,712.11
Other cash received concerning
8,732,027.81 15,006,655.40
operating activities
Subtotal of cash inflow arising from
64,807,576.52 41,016,424.94
operating activities
Cash paid for purchasing
commodities and receiving labor 51,386,530.21 25,572,959.40
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 4,600,762.58 2,860,928.35
Taxes paid 606,781.27 263,658.94
Other cash paid concerning
10,660,629.28 10,968,482.31
operating activities
Subtotal of cash outflow arising from
67,254,703.34 39,666,029.00
operating activities
Net cash flows arising from operating
-2,447,126.82 1,350,395.94
activities
II. Cash flows arising from investing
14
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,
5,957.99
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
5,957.99
activities
Net cash flows arising from investing
-5,957.99 64,500.00
activities
III. Cash flows arising from financing
activities:
Cash received from absorbing
4,725,000.00
investment
Including: Cash received from
absorbing minority shareholders’
investment by subsidiaries
Cash received from loans
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
4,725,000.00
activities
15
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
4,725,000.00
activities
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash
-2,453,084.81 6,139,895.94
equivalents
Add: Balance of cash and cash
19,887,978.05 6,074,367.91
equivalents at the period -begin
VI. Balance of cash and cash
17,434,893.24 12,214,263.85
equivalents at the period -end
6. Cash Flow Statement of Parent Company
In RMB/CNY
Item Semi-annual of 2021 Semi-annual of 2020
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 8,529,883.80 7,581,014.00
services
Write-back of tax received 2,652.02 9,110.82
Other cash received concerning
8,894,920.39 19,278,497.89
operating activities
Subtotal of cash inflow arising from
17,427,456.21 26,868,622.71
operating activities
Cash paid for purchasing
commodities and receiving labor 5,583,811.46 2,063,572.76
service
16
Cash paid to/for staff and workers 3,163,849.78 2,253,629.12
Taxes paid 109,766.66 229,400.44
Other cash paid concerning
9,160,530.15 8,732,615.26
operating activities
Subtotal of cash outflow arising from
18,017,958.05 13,279,217.58
operating activities
Net cash flows arising from operating
-590,501.84 13,589,405.13
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,
5,957.99
intangible and other long-term assets
Cash paid for investment 8,775,000.00
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
5,957.99 8,775,000.00
activities
Net cash flows arising from investing
-5,957.99 -8,710,500.00
activities
III. Cash flows arising from financing
activities:
Cash received from absorbing
investment
17
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
-596,459.83 4,878,905.13
equivalents
Add: Balance of cash and cash
10,097,024.59 1,959,804.92
equivalents at the period -begin
VI. Balance of cash and cash
9,500,564.76 6,838,710.05
equivalents at the period -end
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Amount
In RMB/CNY
Semi-annual of 2021
Owners’ equity attributable to the parent Company
Other
Other
equity instrument Minori Total
Item Less: compr Provisi
Share Perpe Reaso Surplu Retain ty owners
Capital Invent ehensi on of Subtot
capita Prefe tual nable s ed Other interes ’
reserve ory ve genera al
l rred capit Other reserve reserve profit ts equity
shares incom l risk
stock al
e
secur
18
ities
I. The ending 551,3 627,83 32,673 -1,200, 10,905 14,737 25,642
balance of the 47,94 4,297. ,227.0 950,24 ,230.9 ,058.7 ,289.6
previous year 7.00 85 1 0.88 8 0 8
Add:
Changes of
accounting
policy
Error
correction of the
last period
Enterprise
combine under
the same control
Other
II. The
551,3 627,83 32,673 -1,200, 10,905 14,737 25,642
beginning
47,94 4,297. ,227.0 950,24 ,230.9 ,058.7 ,289.6
balance of the
7.00 85 1 0.88 8 0 8
current year
III. Increase/
Decrease in the
1,365, 1,365, 212,34 1,577,
period
493.34 493.34 6.08 839.42
(Decrease is
listed with “-”)
(i) Total
1,365, 1,365, 212,34 1,577,
comprehensive
493.34 493.34 6.08 839.42
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
19
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
5. Carry-over
retained
earnings from
20
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 -1,199, 12,270 14,949 27,220
the end of the 47,94 4,297. ,227.0 584,74 ,724.3 ,404.7 ,129.1
period 7.00 85 1 7.54 2 8 0
Amount of the previous period
In RMB/CNY
Semi-annual of 2020
Owners’ equity attributable to the parent Company
Other
equity instrument Other
Minorit
Perp Less: compr Provisi Total
Item y
Share Reaso Surplu Retain
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. The ending 551,3 627,83 32,673 -1,204,
7,119, 4,322,1 11,441,
balance of the 47,94 4,297. ,227.0 736,07
396.30 86.79 583.09
previous year 7.00 85 1 5.56
Add:
Changes of
accounting
policy
Error
correction of
the last period
Enterprise
combine under
the same
21
control
Other
II. The
551,3 627,83 32,673 -1,204,
beginning 7,119, 4,322,1 11,441,
47,94 4,297. ,227.0 736,07
balance of the 396.30 86.79 583.09
7.00 85 1 5.56
current year
III. Increase/
Decrease in the
2,797, 2,797, 5,347,9 8,145,6
period
643.50 643.50 70.40 13.90
(Decrease is
listed with “-”)
(i) Total
2,797, 2,797, 622,970 3,420,6
comprehensive
643.50 643.50 .40 13.90
income
(ii) Owners’
devoted and 4,725,0 4,725,0
decreased 00.00 00.00
capital
1.Common
4,725,0 4,725,0
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
reserves
2. Withdrawal
of general risk
provisions
22
3. Distribution
for owners (or
shareholders)
4. Other
(iv) Carrying
forward
internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4. Carry-over
retained
earnings from
the defined
benefit plans
5. Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(v) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
23
(vi) Others
IV. Balance at 551,3 627,83 32,673 -1,201,
9,917, 9,670,1 19,587,
the end of the 47,94 4,297. ,227.0 938,43
039.80 57.19 196.99
period 7.00 85 1 2.06
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Amount
In RMB/CNY
Semi-annual of 2021
Other
equity instrument
Less: Other
Item Perpet Reasona Total
Share Capital compreh Surplus Retaine
Preferr ual Inventor ble Other owners’
capital reserve ensive reserve d profit
ed capital Other y shares reserve equity
income
stock securiti
es
I. The ending 551,34 -1,206,
627,834, 32,673,2 5,264,924.
balance of the 7,947.0 590,54
297.85 27.01 28
previous year 0 7.58
Add: Changes
of accounting
policy
Error
correction of the
last period
Other
II. The
551,34 -1,206,
beginning 627,834, 32,673,2 5,264,924.
7,947.0 590,54
balance of the 297.85 27.01 28
0 7.58
current year
III. Increase/
Decrease in the 975,81 975,814.8
period (Decrease 4.84 4
is listed with “-”)
(i) Total
975,81 975,814.8
comprehensive
4.84 4
income
(ii) Owners’
devoted and
decreased capital
24
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with share-based
payment
4. Other
(iii) Profit
distribution
1. Withdrawal of
surplus reserves
2. Distribution
for owners (or
shareholders)
3. Other
(iv) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with surplus
reserve
4. Carry-over
retained earnings
from the defined
25
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 -1,205,
627,834, 32,673,2 6,240,739.
the end of the 7,947.0 614,73
297.85 27.01 12
period 0 2.74
Amount of the previous period
In RMB/CNY
Semi-annual of 2020
Other
equity instrument
Less: Other
Item Perpet Total
Share Capital compre Reasonab Surplus Retained
Inventor Other owners’
capital Preferr ual reserve hensive le reserve reserve profit
ed capital Other y shares income equity
stock securit
ies
I. The ending 551,34
627,834 32,673, -1,209,45 2,397,263.7
balance of the 7,947.
,297.85 227.01 8,208.07 9
previous year 00
Add:
Changes of
accounting
policy
Error
correction of
the last period
Other
II. The 551,34
627,834 32,673, -1,209,45 2,397,263.7
beginning 7,947.
,297.85 227.01 8,208.07 9
balance of the 00
26
current year
III. Increase/
Decrease in the
1,588,777 1,588,777.6
period
.67 7
(Decrease is
listed with “-”)
(i) Total
1,588,777 1,588,777.6
comprehensive
.67 7
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
27
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, -1,207,86 3,986,041.4
the end of the 7,947.
,297.85 227.01 9,430.40 6
period 00
III. Company Profile
1. History and basic information
28
According to the Approval Document SFBF (1991) No. 888 issued by the People’s Government of Shenzhen,
Shenzhen China Bicycle Company (Holdings) Limited (hereinafter referred to as the Company) was
reincorporated as the company limited by shares in November 1991. On 28 December 1991, upon the Approval
Document SRYFZ(1991) No. 119 issued by Shenzhen Special Economic Zone Branch of the People’s Bank of
China, the Company got listed on Shenzhen Stock Exchange. Registered of the Company amounted as
551,347,947.00 Yuan.
Legal representative: Li Hai
Location: No. 3008, Buxin Road, Luohu District, Shenzhen
Certificate for Uniform Social Credit Code: 914403006188304524
2. Business nature and main operation activities
The Company's industry: machinery manufacturing industry
Main business activities: Research & development of the bicycles, electric bicycles, electric motorcycles,
motorcycles, electric tricycles, electric four-wheelers, children's bicycles, exercise bikes, sports equipment,
mechanical products, toys, electric toys, electronic products, new energy equipment and storage equipment (lithium
batteries, batteries, etc.), household appliances and spare parts, and electronic components; wholesale, retail, import
and export and related supporting business of above-mentioned products (excluding commodities subject to state
trade management, handling the application according to the relevant national regulations for commodities
involving quotas, license management and other special provisions and management,); fine chemical products
(excluding dangerous goods), wholesale and retail of carbon fiber composite materials; technology development of
computer software, transfer of self-developed technological achievements, and providing relevant technical
information consultation; own property leasing; property management. (The above projects do not involve special
administrative measures for the implementation access of national regulations, and those involving restricted
projects and pre-existing administrative licenses must obtain the pre-existing administrative licensing documents
before operation.) Purchase and sale of gold products, platinum jewelry, palladium jewelry, K-gold jewelry, silver
jewelry, inlaid jewelry, jewelry, jade ware, gem-and-jade products, clocks and watches, precious metal materials,
diamonds, jadeite, crafts (except ivory and its products), calligraphy and painting, collection (except for antiques,
cultural relics, and items prohibited by national laws and administrative regulations).
MaGoods in processs 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 25 August 2021 after approved by 31st session of 10th BOD of the Company.
Two subsidiaries included in consolidate scope in the period, and one sub-subsidiary, found more in 1. carry in Note VIII.
29
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.
V. Main accounting policy and Accounting Estimate
Tips for specific accounting policy and estimate:
30
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
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.
31
(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
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
32
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.
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.
33
7. Classification of joint venture arrangement and accounting treatment for joint control
(1) Affirmation and classification of joint venture arrangement
Joint arrangement refers to an arrangement controlled by two or more than two participants. Joint venture
arrangement has the following characteristics: 1) Each participant is bound by the arrangement; 2) Two or more
participants carry out joint control on implementation of the arrangement. Any participant cannot control the
arrangement independently. Any participant for joint control can stop other participants or participant
combinations to independently control the arrangement.
Joint control refers to the sharing of control over certain arrangement under related agreements, and related
activities of the arrangement must be determined only when obtaining the unanimous consent of the parties
sharing control.
Joint venture arrangement is classified in to joint operation and joint venture. Joint operation refers to an
arrangement that a joint party enjoys assets related to the arrangement and bears liabilities related to the
arrangement. Joint venture refers to an arrangement that a joint party only has the power governing net assets of
the arrangement.
(2) Accounting treatment of joint venture arrangement
Joint venture participants should confirm the following items related to interest shares in joint venture and carry
out accounting settlement according to relevant provisions of the Accounting Standards for Business Enterprises:
1) confirm the assets held separately and confirm the assets held jointly based on shares; 2) confirm the liabilities
borne separately and confirm the liabilities borne jointly based on shares; 3) confirm the income incurred after
selling its shares in joint venture output; 4) confirm the income after selling the joint venture outputs based on
shares; 5) confirm the expenses incurred separately and confirm the expenses incurred in joint venture based on
shares.
Joint venture participants should carry out accounting settlement for investments of the joint venture according to
provisions of Accounting Standards for Business Enterprises No.2–Long-term Equity Investments.
8. Recognition of cash and cash equivalents
Cash in cash flow statement means the inventory cash and savings available for use anytime. Cash equivalents
refer to the short-term (generally due within three months since the date of purchase) highly liquid investments
that are readily convertible into known amounts of cash and that are subject to an insignificant risk of change in
value.
34
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.
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
35
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.
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
36
Financial assets except for above financial assets measured at amortized cost and financial assets measured at fair
value and whose changes are included in other comprehensive income are classified as financial assets measured
at fair value and whose changes are included in the current profit and loss. During initial recognition, in order to
eliminate or significantly reduce accounting mismatches, financial assets can be designated as financial assets
measured at fair value and whose changes included in the current profit and loss. For such financial assets, fair
value is used for subsequent measurement, and all changes in fair value are included in the current profit and loss.
When and only when the Company changes its business model for managing financial assets, it will reclassify all
affected related financial assets.
For financial assets measured at fair value and whose changes are included in the current profit or loss, the related
transaction costs are directly included in the current profit and loss, and the related transaction costs of other types
of financial assets are included in the initial recognition amount.
(3) Classification and measurement of financial liabilities
The Company’s financial liabilities are classified as financial liabilities measured at amortized cost and financial
liabilities measured at fair value and whose changes are included in the current profit and loss at initial
recognition.
Financial liabilities that meet one of the following conditions can be designated as financial liabilities measured at
fair value and whose changes are included in current profit or loss during initial measurement: (1) This
designation can eliminate or significantly reduce accounting mismatches; (2) According to the group risk
management or investment strategies stated in official written documents, management and performance
evaluation of financial liability portfolios or financial assets and financial liability portfolios are conducted based
on fair value, and are reported to key management personnel within the group on this basis; (3) The financial
liability includes embedded derivatives that need to be split separately.
The Company determines the classification of financial liabilities at initial recognition. For financial liabilities that
are measured at fair value and whose changes are included in the current profit or loss, the related transaction
costs are directly included in the current profit and loss, and the related transaction costs of other financial
liabilities are included in its initial recognition amount.
The subsequent measurement of financial liabilities depends on their classification:
1) Financial liabilities measured at amortized cost
For such financial liabilities, adopt actual interest rate method and make subsequent measurements based on
amortized costs.
2) Financial liabilities measured at fair value and whose changes are included in the current profit and loss
Financial liabilities that are measured at fair value and whose changes are included in the current profit or loss
include trading financial liabilities (including derivatives that are financial liabilities) and financial liabilities
designated to be measured at fair value at the initial recognition and whose changes are included in the current
profit or loss.
(4) Financial instruments offset
37
If the following conditions are met at the same time, the financial assets and financial liabilities are listed in the
balance sheet with the net amount after mutual offset: legal right to offset the confirmed amount, and this legal
right is currently executable; Net settlement, or simultaneous realization of the financial assets and liquidation of
the financial liabilities.
(5) Impairment of financial assets
The Company recognizes the loss provisions on the basis of expected credit losses for financial assets measured at
amortized cost, debt instrument investments measured at fair value and whose changes are included in other
comprehensive income and financial guarantee contracts. Credit loss refers to the difference between all
contractual cash flows receivable under the contract and discounted according to original actual interest rate by
the Company and all expected receivable cash flows, that is, the present value of all cash shortages.
The Company considers all reasonable and evidence-based information, including forward-looking information,
and estimates the expected credit loss of financial assets measured at amortized cost and financial assets measured
at fair value and whose changes are included in other comprehensive income (debt instruments) in a single or
combined manner.
1) General model of expected credit loss
If the credit risk of the financial instrument has increased significantly since the initial recognition, the Company
measures its loss provisions in accordance with the amount equivalent to the expected credit loss of the financial
instrument for the entire duration; if the credit risk of the financial instrument has not significantly increased since
the initial recognition, the Company measures its loss provisions in accordance with the amount equivalent to the
expected credit loss of the financial instrument in the next 12 months. The resulting increased or reversed amount
of the loss provisions is included in the current profit and loss as an impairment loss or gain. For the Company’s
specific assessment of credit risk, please see details in Note IX. Risks Related to Financial Instruments”.
Generally, the Company believes that the credit risk of the financial instrument has significantly increased when it
exceeds 30 days after the due date, unless there is concrete evidence that the credit risk of the financial instrument
has not increased significantly since initial recognition.
Specifically, the Company divides the process of credit impairment of financial instruments of which no credit
impairment has occurred at the time of purchase or origin into three stages. There are different accounting
treatment methods for the impairment of financial instruments at different stages:
Stage one: Credit risk has not increased significantly since initial recognition
For a financial instrument at this stage, the enterprise should measure the loss provisions according to the
expected credit losses in the next 12 months, and calculate the interest income based on its book balance (that is,
without deducting provisions for impairment) and the actual interest rate (if the instrument is a financial asset, the
same below).
Stage two: Credit risk has increased significantly since initial recognition but no credit impairment has occurred
For a financial instrument at this stage, the enterprise should measure the loss provisions according to the
expected credit loss of the instrument for its entire duration, and calculate the interest income based on its book
balance and actual interest rate.
38
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.
(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
39
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.
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
40
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:
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
41
(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【10. 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
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.
42
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:
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
43
(3) Account receivable with minor single amount and single provision for bad debts
Basis or amount of judgment for account with single minor Withdrawal method for bad debt provision of account
amount receivable with single minor amount
Receivable commercial acceptance bill, account receivable Carry out impairment test separately, and withdraw bad
and other receivables with single amount less than 5 million debt provision according to the difference between the
yuan (including), and the probability of recall is small by present value of future cash flow and its book value
nature
2. A general model of expected credit loss
Found more in the Note 【10. Financial Instrument 】
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
44
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
1. Confirmation method and standard of contract assets
The Company lists contractual assets or contractual liabilities in the balance sheet based on the relationship
between performance obligations and customer payments. The Company's right to receive consideration for
goods or services transferred to the customer (And that right depends on factors other than the passage of time) is
listed as contractual assets. Contractual assets and contractual liabilities under the same contract are listed as a net
amount. The Company's right to receive consideration from customers unconditionally (only depends on the
passage of time) is listed separately as a receivable.
2. Determination and accounting treatment of the expected credit loss for contract assets
Determination and accounting treatment of the expected credit loss for contract assets found more in Note “10.
Financial Instrument - impairment of financial assets”
Nil
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
45
selling expense, provided that the net amount shall not exceed the original carrying value of the asset. In case that
the original value is higher than the adjusted expected net residual value, the difference shall be recorded in profit
or loss for the period as asset impairment loss, and allowance of impairment for the asset shall be provided.
Impairment loss recognized in respect of the disposal group held for sale shall be used to offset the carrying value
of the goodwill in the disposal group, and then offset the carrying value of the non-current assets within the
disposal group based on their respective proportion of their carrying value.
In respect of the non-current assets held for sale, if the net amount after their fair value less the selling expenses
increased as at the subsequent balance date, the reduced amount before will be recovered and reversed in the
assets impairment loss amount recognized after being classified as held for sale, and the reversed amount will be
recorded in the current profits or loss. The impairment loss on assets recognized before being classified as held for
sale will not be reversed. In respect of the disposal group held for sale, if the net amount after their fair value less
the selling expenses increased as at the subsequent balance date, the reduced amount before will be recovered and
reversed in the assets impairment loss amount recognized in non-current assets after being classified as held for
sale, and the reversed amount will be recorded in the current profits or loss. The reduced book value of the
goodwill as well as the impairment loss on assets recognized before the non-current assets are classified as held
for sale will not be reversed. The subsequent reversed amount in respect of the impairment loss on assets
recognized in the disposal group held for sale will increase the book value in proportion of the book value of each
non-current assets (other than goodwill) in the disposal group.
In respect of loss of control in a subsidiary arising from disposal of the investment in such subsidiary, the
investment in a subsidiary shall be classified as held for sale in its entirety in the individual financial statement of
the parent company, and all the assets and liabilities of the subsidiary shall be classified as held for sale in the
consolidated financial statement subject to that the proposed disposal of investment in the subsidiary satisfies such
conditions as required for being classified as held for sale notwithstanding part equity investment will be retained
by the Company after such disposal.
19.Debt investment
Nil
20.Other debt investment
Nil
21.Long-term account receivable
Nil
46
22. Long-term equity investment
(1)Determination of investment costs
1) If it is formed by the business combination under the common control, and that the combining party takes cash
payment, transfer of non-cash assets, assumption of debts or issuance of equity securities as the consolidation
consideration, the shares of the book value of the owner’s equity obtained from the combined party on the date of
combination in the ultimate controlling party’s consolidated financial statements shall be recognized as its initial
investment cost. Capital reserves shall be adjusted according to the balance between the initial investment cost for
long-term equity investment and the book value of paid consolidation consideration or the total face value of
issued shares (capital premium or equity premium). If capital reserves are insufficient for offset, retained earnings
shall be adjusted.
As for business combination under the common control realized by the Company through several transactions, the
initial investment cost of the investment shall be determined based on the share of the carrying value of the
owners’ equity of the consolidated party as calculated according to the shareholding proportion on the
consolidation date. Difference between initial investment cost and the carrying value of long-term equity
investment before combination and the sum of carrying value of newly paid consideration for additional shares
acquired on the date of combination is to adjust capital reserve (capital premium or equity premium). If the
balance of capital reserve is insufficient, any excess is adjusted to retained earnings.
2) As for long-term equity investment formed from business combination not under common control, the fair
value of the consolidated consideration paid shall be deemed as the initial investment cost on the acquisition date.
3) Except those ones formed by the business combination, for all items obtained by means of cash payment,
actually paid acquisition costs shall be taken as the initial investment cost. For those ones obtained by the issuance
of equity securities, the fair value of the issued equity securities shall be taken as the initial investment cost. For
those ones invested by investors, the value agreed in the investment contract or agreement shall be taken as the
initial investment cost, provided that the value agreed in the contract or agreement shall be fair.
(2)Subsequent measurement and profit or loss recognition
For a long-term equity investment where the Company can exercise control over the investee, the long-term
investment is accounted for using the cost method in the Company’s financial statements. The equity method is
adopted when the Group has joint control, or exercises significant influence on the investee.
Under cost method, long term equity investment is measured at initial investment cost. Except for the price
actually paid for obtaining the investment or the cash dividends or profits declared but not yet distributed which is
included in the consideration, the Company recognizes cash dividends or profits declared by the investee as
current investment gains, and determine whether there is impairment on long term investment according to
relevant assets impairment policies.
Under equity method, when the initial investment cost of the long-term equity investment exceeds the share of fair
47
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
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.
48
(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.
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. 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
(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
Nil
49
(3) Recognition basis, valuation and depreciation method for financial lease assets
Finance lease is determined when one or a combination of the following conditions are satisfied: (1) the
ownership has been transferred to the lessee when the leasing term is due; (2) the lessee has the option to purchase
the leasing asset at a price that is much lower than its fair value, so it can be reasonably determined that the lessee
will take the option at the very beginning of the lease; (3) the leasing term accounts for most time of the useful life
(ordinarily accounting for 75% or higher) even if the ownership does not transfer to the lessee; (4) the present
value of the minimum amount of rent that the lessee has to pay at the first day of the lease amounts to 90% or
higher of its fair value at the same date; or the present value of the minimum amount of rent that the lessor collects
at the first day of the lease amounts to 90% or higher of its fair value at the same date; and/or (5) the leased assets
are of such a specialized nature that only the lessee can use them without major modifications. Fixed assets
rented-in under finance lease are recorded at the lower of fair value and the present value of the minimum lease
payment at the inception of the lease, and are depreciated following the depreciation policy for self-owned fixed
assets.
25. Construction in progress
(1)When the construction in progress has reached the intended condition for use, it will be treated as fixed assets
as per the actual construction cost. If the construction in progress has reached the intended condition for use but
completion accounting is not carried out, the construction in progress should be first treated as fixed assets as per
the estimated value. After completion accounting is carried out, the original estimated value should be adjusted as
per the actual cost, but the provision for depreciation withdrawn should not be adjusted.
(2)As of the balance sheet date, where there is any indication that a construction in process experiences
impairment, the relevant 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
50
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
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
51
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
The Company lists contract assets or contract liabilities in the balance sheet based on the relationship between
performance obligations and customer payments. The Company's obligations to transfer goods or provide services
to customers for which consideration has been received or receivable are listed as contract liabilities. Contract
assets and contract liabilities under the same contract are listed as a net amount.
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.
(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
52
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.
(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
53
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
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
54
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
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.
55
(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 subsidy
(1) government subsidy 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 subsidy:
1)government subsidy 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.
56
2)If government subsidy 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 subsidy 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 subsidy
1) government subsidy relating to assets are used to write off the carrying value of the relevant assets;
2) If government subsidy 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 subsidy 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 subsidy received.
(6)As for the government subsidy 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 subsidy 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
against the relevant borrowing expenses.
57
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
58
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
According to the regulations of
The changes in accounting policy will not
"Accounting Standards for Business st
Deliberated and approved by 31 session have a material impact on the financial
Enterprises No. 21 - Lease" of the Ministry
of 10th BOD status, operation results and cash flow of
of Finance, the enterprise that are required
the Company
to be listed both domestically and
59
internationally and enterprises that are
listed outside of China and adopt IFRS or
ASBE to prepare their financial statements,
will be effective from January 1, 2019.
Other enterprises implementing the ASBEs
will be effective from 1 Jan. 2021.
The Company applies simplified treatment to lease and chooses not to recognize the right -of-use assets and lease liability, and in
each period of lease term, charged to the cost of relevant assets or current gain/loss on a straight-line basis or other systematic and
reasonable basis, no need to adjust the items of balance sheet at the beginning of the year.
(2) Changes of important accounting estimation
□ Applicable √ Not applicable
(3)Adjust the financial statement items at beginning of the year when first implemented the New Lease
Standards since 2021
Applicable
Whether adjusted the item of balance sheet at year-begin or not
□Yes √No
Explanation of reasons for not requiring adjustment of the items of balance sheet at beginning of the year
Mainly the short-term lease and low-value assets, the Company applies simplified treatment to lease and chooses not to recognize the
right -of-use assets and lease liability, and in each period of lease term, charged to the cost of relevant assets or current gain/loss on a
straight-line basis or other systematic and reasonable basis, no need to adjust the items of balance sheet at the beginning of the year.
(4) Explanation on retrospective adjustment of prior period comparative data for the first implementation
of new leasing standards from 2021
□Applicable √Not applicable
45. Other
nil
VI. Taxes
1. Main tax category and tax rate
Tax category Tax calculation evidence Tax rate
Sales of goods, taxable labor service
Value added tax revenue, taxable income, intangible assets 5%, 6%, 13%
income and income from property leasing
60
Tax for maintaining and building cities Turnover tax payable 7%
Enterprise income tax Taxable income 2.5%, 10%, 15%
Educational surtax Turnover tax payable 3%
Local educational surtax Turnover tax payable 2%
Disclose reasons for different taxpaying body
Taxpaying body Income tax rate
The Company 15.00%
Shenzhen Emmelle Industry Co., Ltd. 2.5%, 10%
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. 2.5%, 10%
Shenzhen Emmelle Cloud Technology Co., Ltd. 2.5%, 10%
2. Tax preference
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.
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[2019] No. 13) and Announcement of the Implementation of Preferential Income Tax Policies for Small &
Micro Enterprises and Individual Entrepreneurs by the Ministry of Finance and the State Administration of Taxation (CS[2021]
No.12) and other provisions, from January 1, 2021 to December 31, 2022, 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%. On the basis of this preferential policy, the tax will be halved (the effective tax rate is 2.5%);
The part of annual taxable income exceeding 1 million yuan but not exceeding 3 million yuan shall be deducted by 50% and included
in the taxable income, and the enterprise income tax shall be paid at the tax rate of 20% (the effective tax rate is 10%). Shenzhen
Xinsen Jewelry Gold Supply Chain Co., Ltd., Shenzhen Emmelle Industry Co., Ltd., adn Shenzhen Emmelle Cloud Technology Co.,
Ltd., the Company’s subsidiaries, are small and low-profit enterprises, so the above preferential tax rate is applicable to them.
3. Other
Nil
VII. Notes to Items in Consolidated Financial Statements
1. Monetary fund
In RMB
Item Ending balance Opening balance
Cash on hand 29,702.26 21,530.26
Cash in bank 17,405,190.98 19,866,447.79
61
Total 17,434,893.24 19,887,978.05
Other explanation
Nil
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
In RMB
Ending balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book Book
Accrual Accrual
Amount Ratio Amount value Amount Ratio Amount value
ratio ratio
Including:
Including:
Total 0.00 0.00% 0.00 0.00% 0.00 0.00 0.00% 0.00 0.00% 0.00
Bad debt provision accrual on single basis:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
62
Total 0.00 0.00 -- --
Bad debt provision accrual on single basis:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Total 0.00 0.00 -- --
Bad debt provision accrual on single basis:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Total 0.00 0.00 -- --
Bad debt provision accrual on single basis:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Bad debt provision accrual on portfolio:
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio
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 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 Charge-off Other
reversal
63
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
Nil
(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
64
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 6,176,65 3,492,31 2,684,337 10,400,55 4,821,546 5,579,011.2
10.43% 56.54% 17.33% 46.36%
provision accrual by 5.91 8.65 .26 7.65 .38 7
single basis
Including:
Accounts with single
minor amount but
6,176,65 3,492,31 2,684,337 10,400,55 4,821,546 5,579,011.2
with bad debts 10.43% 56.54% 17.33% 46.36%
5.91 8.65 .26 7.65 .38 7
provision accrued
individually
Account receivable
with bad debt 53,027,1 159,081. 52,868,08 49,601,21 148,803.6 49,452,413.
89.57% 0.30% 82.67% 0.30%
provision accrual by 63.38 49 1.89 7.08 5 43
portfolio
Including:
Account receivable
withdrawal bad debt
provision by group of
53,027,1 159,081. 52,868,08 49,601,21 148,803.6 49,452,413.
credit risk 89.57% 0.30% 82.67% 0.30%
63.38 49 1.89 7.08 5 43
characteristics
(Aging analysis
method)
59,203,8 3,651,40 55,552,41 60,001,77 4,970,350 55,031,424.
Total 100.00% 6.17% 100.00% 8.28%
19.29 0.14 9.15 4.73 .03 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
Sichuan Wanling Electric Expected to be difficult
1,102,072.20 1,102,072.20 100.00%
Technology Co., Ltd. to recover
65
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
797,064.00 797,064.00 100.00%
Tech. Co., Ltd to recover
Dongguan Daxiang New Expected to be difficult
746,734.00 224,020.20 30.00%
Energy Co., Ltd. to recover
Suzhou Daming Vehicle Expected to be difficult
552,596.42 276,298.21 50.00%
Industry Co., Ltd. to recover
Guangdong Xinlingjia Expected to be difficult
348,136.00 104,440.80 30.00%
New Energy Co., Ltd. to recover
Suzhou Daming Vehicle Expected to be difficult
449,195.00 134,758.50 30.00%
Industry Co., Ltd. to recover
Shanghai Swen Electric Expected to be difficult
284,867.50 284,867.50 100.00%
Vehicle Co., Ltd. to recover
Total 6,176,655.91 3,492,318.65 -- --
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
50,855,577.44 152,566.73 0.30%
included)
1-2 years (2 years included) 2,171,585.94 6,514.76 0.30%
Total 53,027,163.38 159,081.49 --
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
66
refer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
By account age
In RMB
Account age Ending balance
Within one year (one year included) 46,671,675.70
Within one year 46,671,675.70
1-2 years 4,659,969.93
2-3 years 5,668,169.96
Over 3 years 2,204,003.70
3-4 years 304,867.50
4-5 years 1,102,072.20
Over 5 years 797,064.00
Total 59,203,819.29
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Category Opening balance Collected or Ending balance
Accrual Charge-off Other
reversal
Bad debt
provision for
4,970,350.03 38,984.24 1,357,934.13 3,651,400.14
accounts
receivable
Total 4,970,350.03 38,984.24 1,357,934.13 3,651,400.14
Including important amount of bad debt provision collected or reversal in the period:
In RMB
Enterprise Amount collected or reversal Collection way
Shenzhen Jiahaosong Technology Co., Ltd. 718,081.13 Bank transfer, payment of goods arrears
Shenzhen Weterui New Energy
501,291.32 Bank transfer, payment of goods arrears
Technology Co., Ltd.
Total 1,219,372.45 --
After the Company sent a lawyer's letter, the other party offset arrears by part of the goods after negotiation, and the rest was paid by
bank transfer. Because the customer has not paid the debt according to the time limit agreed in the contract, which is more than one
year overdue, and the debt recovery is expected to be difficult, so the bad debt is set aside at 30% of impairment.
67
(3) Account receivables actually charge-off during the reporting period
In RMB
Item Amount charge-off
Including major account receivables charge-off:
In RMB
Amount cause by
Procedure for
Enterprise Nature Amount charge-off Causes of charge-off related transactions
charge-off
or not (Y/N)
Explanation on account receivable charge-off:
(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
19,875,160.22 33.57% 59,625.48
Technology Co., Ltd.
Shenzhen Yunshang
11,810,930.58 19.95% 35,432.79
Jewelry Co., Ltd.
Fuzhou Rongrun Jewelry
10,254,982.87 17.32% 30,764.95
Co., Ltd.
Xi’an Grom Trading Co.,
5,178,103.39 8.75% 15,534.31
Ltd.
Xi’an Zhongjinpu Trading
1,696,559.60 2.86% 5,089.68
Co., Ltd.
Total 48,815,736.66 82.45%
(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
6. Receivables financing
In RMB
68
Item Ending balance Opening balance
Change of receivables financing and fair value in the period
□Applicable √Not applicable
If the provision for bad debts of receivable financing is made in accordance with the general model of expected credit losses, please
refer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
Other explanation:
Nil
7. Account paid in advance
(1) By account age
In RMB
Ending balance Opening balance
Account age
Amount Ratio Amount Ratio
Within one year 4,382,245.09 100.00% 816,541.52 100.00%
Total 4,382,245.09 -- 816,541.52 --
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 (%)
Shenzhen Lianzhonghe Technology Co., Non-related 1,642,320.00 Within one Payment 37.48
Ltd. party year
Shenzhen Guanhong Weiye Technology Non-related 721,000.00 Within one Payment 16.45
Co., Ltd. party year
Shenzhen Qunli Information Technology Non-related 467,837.00 Within one Payment 10.67
Co., Ltd. party year
Shenzhen Longrui Langshi Technology Non-related 400,000.00 Within one Payment 9.13
Development Co., Ltd. party year
Liancheng Kedeyi New Energy Technology Non-related 322,600.00 Within one Payment 7.36
Co., Ltd. party year
Total 3,553,757.00 81.09
Other explanation:
Nil
69
8. Other account receivable
In RMB
Item Ending balance Opening balance
Other account receivable 654,021.99 576,770.36
Total 654,021.99 576,770.36
(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 -- -- --
70
3) Accrual of bad debt provision
□Applicable √Not applicable
Other explanation:
Nil
(3) Other account receivable
1) By nature
In RMB
Account nature Ending book balance Opening book balance
Deposit or margin 647,093.00 618,609.00
Payment for equipment 311,400.00 311,400.00
Personal loan of employees 59,396.96 10,396.88
Total 1,017,889.96 940,405.88
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,
363,635.52 363,635.52
2021
January 1, 2021 balance
—— —— —— ——
in the current period
Accrued in this period 358.54 358.54
Reversal in Current
126.09 126.09
Period
Balance on June 30, 2021 363,867.97 363,867.97
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
By account age
In RMB
Account age Ending balance
Within one year (one year included) 540,019.96
Within one year (one year included) 540,019.96
71
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 1,017,889.96
3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Category Opening balance Collected or Ending balance
Accrual Charge-off Other
reversal
Bad debt
provision for 363,635.52 358.54 126.09 363,867.97
other receivables
Total 363,635.52 358.54 126.09 363,867.97
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
72
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 29.47% 300,000.00
equipment
Equipment Co., Ltd
Shenzhen
Gangdelong Margin or deposit 211,840.00 Within one year 20.81% 635.52
Industrial Co., Ltd.
Shenye Pengji
Margin or deposit 111,927.00 Within one year 10.99% 335.78
(Group) Co., Ltd.
Alipay (China)
Network Technology
Margin or deposit 110,000.00 Within 3 years 10.81% 330.00
Co., Ltd. customer
reserve fund
Quick Money
Payment Clearing
Information Co., Margin or deposit 30,000.00 Within one year 2.95% 90.00
Ltd. Customer
Reserve Fund
Total -- 763,767.00 -- 75.03% 301,391.30
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:
73
Nil
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 3,231,813.44 3,231,813.44 1,298,565.61 1,298,565.61
Inventory goods 3,065,640.50 250,864.51 2,814,775.99 2,545,994.24 278,533.53 2,267,460.71
Goods sold 5,656.40 5,656.40
Consigned
processing 1,554,486.34 1,554,486.34 4,157,643.22 4,157,643.22
materials
Total 7,851,940.28 250,864.51 7,601,075.77 8,007,859.47 278,533.53 7,729,325.94
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”
Item Category Amount(yuan) Percentage
Finished product Jewelry 1,370,407.91 22.08%
Gold jewelry — —
Other — —
Total 1,370,407.91 22.08%
Raw materials Gold 821,910.81 13.24%
Platinum — —
Diamonds 2,612,048.33 42.08%
Total 3,433,959.14 55.32%
Packaging 51,215.71 0.83%
Goods in process 1,352,340.64 21.78%
Total 6,207,923.40 100.00%
74
(2) Provision for inventory depreciation or contract performance cost impairment provision
In RMB
Current increased Current decreased
Item Opening balance Switch back or Ending balance
Accrual Other Other
charge-off
Inventory goods 278,533.53 27,669.02 250,864.51
Total 278,533.53 27,669.02 250,864.51
Nil
(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 in Current Reversal/Charge-off in
Item Accrued in this period Causes
Period the period
Total 0.00 0.00 0.00 --
Other explanation:
Nil
75
11. Assets held for sale
In RMB
期末 Book Impairment Ending book
Item 公允价值 预计处置费用 预计处置时间
balance provision value
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 3,340,005.35 2,652,771.13
Prepaid corporate income tax 51,574.09
Prepaid input tax 11,080.09
Total 3,340,005.35 2,715,425.31
Other explanation:
Nil
14. Creditors’ investment
In RMB
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Total 0.00 0.00 0.00 0.00
76
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)
January 1, 2021 balance
—— —— —— ——
in the current period
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
Other explanation:
Nil
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
Bad debt provision Total
Expected credit Expected credit losses for Expected credit losses for
77
losses over next 12 the entire duration (without the entire duration (with
months credit impairment occurred) credit impairment occurred)
January 1, 2021 balance
—— —— —— ——
in the current period
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
Other explanation:
Nil
16. Long-term account receivable
(1) Long-term account receivable
In RMB
Ending balance Opening balance
Item Bad debt Bad debt 折现率区间
Book balance Book value Book balance Book value
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)
January 1, 2021 balance
—— —— —— ——
in the current period
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
Nil
(2) Long-term account receivable derecognized due to financial assets transfer
(3) Assets and liabilities resulted by long-term account receivable transfer and continues involvement
Other explanation
17. Long-term equity investments
In RMB
The Opening Changes in the period (+, -) Ending Ending
78
invested balance Other Cash Balance balance
Investme Accrual
entity (Book Additiona comprehe dividend (Book of
nt gains Other of
value) l Capital nsive or profit value) impairme
recognize equity impairme Other
investmen reduction income announce nt
d under change nt
t adjustmen d to provision
equity provision
t issued
I. Joint venture
Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
II. Associated enterprise
Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other explanation
Nil
18. Other equity instrument investment
In RMB
Item Ending balance Opening balance
Itemized the non-tradable equity instrument investment in the period
In RMB
Causes of those
that designated
Retained earnings measured by fair Cause of retained
transfer from value and with its earnings transfer
Dividend income Cumulative
Item Cumulative gains other variation from other
recognized losses
comprehensive reckoned into comprehensive
income other income
comprehensive
income
Other explanation:
Nil
19. Other non-current financial assets
In RMB
Item Ending balance Opening balance
Other explanation:
Nil
79
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
21. Fixed assets
In RMB
Item Ending balance Opening balance
Fixed assets 3,612,186.01 3,792,133.36
Total 3,612,186.01 3,792,133.36
(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 1,414,480.77 958,593.21 248,254.93 5,581,152.91
2.Current
5,272.56 5,272.56
increased
(1) Purchase 5,272.56 5,272.56
(2)
Construction in
process transfer-in
(3) The
increase in business
80
combination
3.Current
decreased
(1) Disposal or
scrap
4.Ending balance 2,959,824.00 1,414,480.77 958,593.21 253,527.49 5,586,425.47
II. Accumulated
depreciation
1.Opening balance 599,364.36 316,423.81 690,963.97 182,267.41 1,789,019.55
2.Current
66,596.04 63,651.72 46,751.52 8,220.63 185,219.91
increased
(1) Accrual 66,596.04 63,651.72 46,751.52 8,220.63 185,219.91
3.Current
decreased
(1) Disposal or
scrap
4.Ending balance 665,960.40 380,075.53 737,715.49 190,488.04 1,974,239.46
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
2,293,863.60 1,034,405.24 220,877.72 63,039.45 3,612,186.01
value
81
2.Opening book
2,360,459.64 1,098,056.96 267,629.24 65,987.52 3,792,133.36
value
(2) Fixed assets temporary idle
In RMB
Accumulated Impairment
Item Original book value Book value Note
depreciation provision
(3) Fixed assets leasing-out by operational lease
In RMB
Item Ending book value
(4) Fixed assets without property rights certificate
In RMB
Reasons for failing to complete the
Item Book value
property rights certificate
The six properties of Lianxin Garden
7-20F with original value of 2,959,824.00
Yuan. The property purchasing refers to the
indemnificatory housing for enterprise
talent buying from Shenzhen Housing and
Construction Bureau of Luohu District.
Six properties in Lianxin Garden 2,293,863.60
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
Nil
(5) Fixed assets disposal
In RMB
Item Ending balance Opening balance
Other explanation
Nil
82
22. Construction in progress
In RMB
Item Ending balance Opening balance
(1) Construction in progress
In RMB
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Total 0.00 0.00 0.00 0.00
(2) Changes in significant construction in progress
In RMB
Accumul including
Proporti
Fixed ated : interest Interest
Other on of
increased assets amount capitaliz capitaliz
Opening decrease Ending project Sourceof
Item Budget in the transfer-i Progress of ed ation rate
balance d in the balance investme funds
Period n in the interest amount of the
Period nt in
Period capitaliz of the year
budget
ation year
Total 0.00 0.00 0.00 0.00 0.00 0.00 -- -- 0.00 0.00 0.00% --
(3) 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
83
Other explanation:
Nil
23. Productive biological asset
(1) Productive biological assets measured by cost
□Applicable √Not applicable
(2) Productive biological assets measured by fair value
□Applicable √Not applicable
24. Oil and gas asset
□Applicable √Not applicable
25. Right-of-use asset
In RMB
Item Total
Other explanation:
Nil
26. Intangible assets
(1) Intangible assets
In RMB
Non-patent
Item Land use right Patent Trademark Total
technology
I. Original book
value
1.Opening
5,271,000.00 5,271,000.00
balance
2.Current
increased
(1) Purchase
(2) Internal R
&D
(3) The
increase in business
84
combination
3.Current
decreased
(1) Disposal
4.Ending
5,271,000.00 5,271,000.00
balance
II. Accumulated
depreciation
1.Opening
5,271,000.00 5,271,000.00
balance
2.Current
increased
(1) Accrual
3.Current
decreased
(1) Disposal
4.Ending
5,271,000.00 5,271,000.00
balance
III. Impairment
provision
1.Opening
balance
2.Current
increased
(1) Accrual
3.Current
decreased
(1) Disposal
4.Ending
balance
IV. Book value
85
1.Ending book
value
2.Opening book
value
Ratio of intangible assets resulted from internal R&D in balance of intangible assets at period-end
(2) Land use right without certificate of title completed
In RMB
Reasons for failing to complete the
Item Book value
property rights certificate
Other explanation:
1) There is no mortgage for intangible assets at the end of the period.
2) At the end of the period, no signs of impairment of intangible assets were found, and no impairment provision was made.
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
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
86
(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 rat e,
stable period growth rate, profit rate, discount rate, forecast period, etc. when estimating the present value of future cash flow), and
the impairment loss of goodwill:
Nil
Impact of impairment test for goodwill
Nil
Other explanation
Nil
29. Long-term expenses to be apportioned
In RMB
Amortized in the
Item Opening balance Current increased Other decrease Ending balance
Period
Total 0.00 0.00 0.00
Other explanation
Nil
30. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets without offset
In RMB
Ending balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Impairment provision of
793,170.75 3,172,682.98 793,170.75 3,172,682.98
assets
Total 793,170.75 3,172,682.98 793,170.75 3,172,682.98
87
(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
(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
793,170.75 793,170.75
assets
(4) Details of unrecognized deferred income tax assets
In RMB
Item Ending balance Opening balance
Total 0.00 0.00
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMB
Year Ending amount Opening amount Note
Total 0.00 0.00 --
Other explanation:
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
Fixed increase intermediary fee 735,849.05 0.00 735,849.05
Total 1,135,849.05 0.00 1,135,849.05 400,000.00 0.00 400,000.00
88
Other explanation:
As of June 30, 2021, 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:
(2) Overdue outstanding short-term loans
Total 0.00 Yuan overdue outstanding short-term loans at period-end, including the followed significant amount:
In RMB
Borrower Ending Balance Lending rate Overdue time Overdue rate
Total 0.00 -- -- --
Other explanation:
Nil
33. Trading financial liability
In RMB
Item Ending balance Opening balance
Including:
Including:
Other explanation:
Nil
34. Derivative financial liability
In RMB
Item Ending balance Opening balance
Other explanation:
Nil
35. Notes payable
In RMB
89
种类 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) 9,071,697.05 8,691,337.93
1-2 years (2 years included) 423,346.08 423,346.08
2-3 years (3 years included) 487,016.93 487,016.93
3-4 years (4 years included) 1,240.00 1,240.00
4-5 years (5 years included)
Over 5 years 3,204.00 3,204.00
Total 9,986,504.06 9,606,144.94
(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:
Nil
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 --
Other explanation:
Nil
90
38. Contract liability
In RMB
Item Ending balance Opening balance
Cooperative received in advance 9,174,311.93 9,174,311.93
Rent received in advance 5,306,666.67 5,511,111.11
Goods received in advance 2,218,170.13 569,290.34
Total 16,699,148.73 15,254,713.38
Book value has major changes in the period and causes
In RMB
Item Amount changes Reason for change
Goods received in advance 1,648,879.79 Goods received in advance
Total 1,648,879.79 ——
39. Wage payable
(1) Wage payable
In RMB
Item Opening balance Current increased Current decreased Ending balance
I. Short-term
1,459,244.07 3,442,252.67 4,087,559.60 813,937.14
compensation
II. Post-employment
benefit-Defined 263,291.38 263,291.38
contribution plan
Total 1,459,244.07 3,705,544.05 4,350,850.98 813,937.14
(2) Short-term compensation
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Wages, bonus,
1,452,981.20 3,128,974.64 3,773,774.72 808,181.12
allowances and subsidy
3. Social insurance 109,324.60 109,324.60
Including: Medical
100,844.32 100,844.32
insurance
Work injury
2,304.18 2,304.18
insurance
91
Maternity
6,176.10 6,176.10
insurance
4. Housing accumulation
167,955.60 167,955.60
fund
5. Labor union
expenditure and
6,262.87 35,997.83 36,504.68 5,756.02
personnel education
expense
Total 1,459,244.07 3,442,252.67 4,087,559.60 813,937.14
(3) Defined contribution plan
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Basic endowment
259,342.82 259,342.82
insurance
2. Unemployment
3,948.56 3,948.56
insurance
Total 263,291.38 263,291.38
Other explanation:
At the end of the period, there were no arrears in employee compensation.
40. Taxes payable
In RMB
Item Ending balance Opening balance
Value added tax 698,016.27 551,216.66
Corporate income tax 48,403.51 140,959.81
Individual income tax 2,497.35 23,398.74
Tax for maintaining and building cities 860.57 431.55
Stamp tax 2,552.93 6,043.60
Educational surtax 614.70 270.66
Total 752,945.33 722,321.02
Other explanation:
Nil
41. Other account payable
In RMB
92
Item Ending balance Opening balance
Other account payable 37,658,215.37 37,882,805.52
Total 37,658,215.37 37,882,805.52
(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
(3) Other account payable
1) By nature
In RMB
Item Ending balance Opening balance
Custodian and common benefit debts 18,728,866.44 18,728,866.44
Warranty and guarantee money 10,589,040.00 10,589,040.00
Intercourse funds 6,500,000.00 6,500,000.00
Other payable service charge (intermediary
832,359.55 832,359.55
services included)
Collection and payment 654,997.35 654,997.35
Other 352,952.03 577,542.18
Total 37,658,215.37 37,882,805.52
93
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:
Nil
44. Other current liabilities
In RMB
Item Ending balance Opening balance
Corresponding taxes of contract liability 1,374,986.67 1,175,251.38
Total 1,374,986.67 1,175,251.38
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
Other explanation:
94
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 interest discount Paid in Ending
Bond
value date period amount balance the Period by face amortizati the Period balance
value on
Total -- -- -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(3) Convertible conditions and time for shares transfer for the convertible bonds
Nil
(4) Other financial instruments classify as financial liability
Basic information of the outstanding preferred stock and perpetual capital securities at period-end
Nil
Changes of outstanding preferred stock and perpetual capital securities at period-end
In RMB
95
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:
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
96
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:
Nil
51. Deferred income
In RMB
Item Opening balance Current increased Current decreased Ending balance Causes of formation
Total 0.00 0.00 --
Item with government grants involved:
In RMB
Amount
Amount Cost Assets-relate
Opening New grants reckoned in Other Ending
Liability reckoned in reduction in d/income
balance in the Period non-operatio changes Balance
other income the period related
n revenue
Other explanation:
97
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 0.00 551,347,947.00
Other explanation:
Nil
54. Other equity instrument
(1) Basic information of the outstanding preferred stock and perpetual capital securities at period-end
Nil
(2) Changes of outstanding preferred stock and perpetual capital securities at period-end
In RMB
Outstanding Period-begin Current increased Current decreased Period-end
financial
Amount Book value Amount Book value Amount Book value Amount Book value
instrument
Total 0 0 0.00 0 0.00 0
Changes of other equity instrument, change reasons and relevant accounting treatment basis:
Nil
Other explanation:
Nil
55. Capital public reserve
In RMB
98
Item Opening balance Current increased Current decreased Ending balance
Other capital reserve 627,834,297.85 627,834,297.85
Total 627,834,297.85 627,834,297.85
Other explanation, including changes and reasons for changes:
Among the other capital reserves, 135,840,297.18 Yuan refers to the payment for creditor from shares assignment by whole
shareholders; majority shareholder Guosheng Energy donated 5,390,399.74 Yuan.
56. Treasury stock
In RMB
Item Opening balance Current increased Current decreased Ending balance
Total 0.00 0.00
Other explanation, including changes and reasons for changes:
Nil
57. Other comprehensive income
In RMB
Current Period
Less:
Less: written written in
in other other
comprehensi comprehe
ve income in nsive
Account Belong to Belong to
previous income in
Opening before Ending
Item period and previous Less: income parent minority
balance income tax balance
carried period and tax expense company shareholders
in the after tax after tax
forward to carried
period
gains and forward to
losses in retained
current earnings in
period current
period
Total other comprehensive income 0.00 0.00 0.00 0.00 0.00 0.00
Other explanation, including the active part of the hedging gains/losses of cash flow transfer to initial recognition adjustment for the
arbitraged items:
Nil
58. Reasonable reserve
In RMB
99
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 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 -1,200,950,240.88 -1,204,736,075.56
Retained profit at period-begin after adjustment -1,200,950,240.88 -1,204,736,075.56
Add: net profit attributable to shareholders of
1,365,493.34 2,797,643.50
parent company for this year
Retained profit at period-end -1,199,584,747.54 -1,201,938,432.06
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 49,792,562.36 46,176,297.27 36,004,701.56 32,454,948.30
Other business 4,337,755.24 2,413,822.85 6,651,653.65 3,645,817.35
100
Total 54,130,317.60 48,590,120.12 42,656,355.21 36,100,765.65
Revenue:
In RMB
Contract type 1# Division 2# Division Total
Product type 40,728,749.57 13,401,568.03 54,130,317.60
Including:
Jewelry Gold 40,728,749.57 40,728,749.57
Bicycle lithium battery
13,401,568.03 13,401,568.03
materials and other
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 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 10,660.81 432.52
Educational surtax 7,614.86 308.94
Stamp tax 22,989.10 19,157.58
Total 41,264.77 19,899.04
Other explanation:
Nil
101
63. Sales expenses
In RMB
Item Current Period Last Period
Salary and Social Security Provident Fund 483,485.38 654,651.76
Expenses of network sales 277,385.45 420,049.56
Other 115,318.30 403,677.46
Total 876,189.13 1,478,378.78
Other explanation:
Nil
64. Administrative expenses
In RMB
Item Current Period Last Period
Salary and Social Security Provident Fund 1,860,932.66 1,474,643.26
Other 758,184.82 205,076.18
Total 2,619,117.48 1,679,719.44
Other explanation:
Nil
65. R&D expenses
In RMB
Item Current Period Last Period
Salary and Social Security Provident Fund 1,564,057.10 753,742.20
Factory rent and utilities 253,115.15
Depreciation of fixed assets 46,628.10
Other 256,589.20
Total 2,120,389.55 753,742.20
Other explanation:
Nil
66. Financial expenses
In RMB
Item Current Period Last Period
Interest income -74,408.45 -31,929.72
102
Commission charge etc. 24,985.94 12,669.33
Total -49,422.51 -19,260.39
Other explanation:
Nil
67. Other income
In RMB
Sources Current Period Last Period
Individual tax withholding fee 2,516.00 10,105.77
68. Investment income
In RMB
Item Current Period Last Period
Other explanation:
Nil
69. Net exposure hedge gains
In RMB
Item Current Period Last Period
Other explanation:
Nil
70. Income from change of fair value
In RMB
Sources Current Period Last Period
Other explanation:
Nil
71. Credit impairment loss
In RMB
Item Current Period Last Period
Bad debt loss of other account receivable -232.47 849.07
Bad debt losses of accounts receivable 1,318,949.89 169,538.78
Total 1,318,717.42 170,387.85
Other explanation:
103
Nil
72. Losses of devaluation of asset
In RMB
Item Current Period Last Period
II. Loss of inventory falling price and loss
27,669.02
of contract performance cost impairment
Total 27,669.02
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
政府补助 300,000.00 300,000.00
Other 157,664.40 744,788.91 157,664.40
Total 457,664.40 744,788.91 457,664.40
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)
Science and Subsidies
Technology received due
High-tech
Innovation to
enterprise Income-relate
Bureau of Subsidy compliance N N 300,000.00 0.00
recognition d
Luohu with local
support fund
District, government
Shenzhen investment
104
promotion
and other
local support
policies
Other explanation:
Nil
75. Non-operating expenses
In RMB
Amount reckoned in current
Item Current Period Last Period
non-recurring gains/losses
Other 2,676.80 0.00
Total 2,676.80 0.00
Other explanation:
Nil
76. Income tax expenses
(1) Income tax expenses
In RMB
Item Current Period Last Period
Current income tax expense 161,386.48 107,598.95
Deferred income tax expense 62,439.81
Total 161,386.48 170,038.76
(2) Adjustment on accounting profit and income tax expenses
In RMB
Item Current Period
Total Profit 1,739,225.90
Income tax measured by statutory/applicable tax rate 161,386.48
Income tax expenses 161,386.48
Other explanation
Nil
77. Other comprehensive income
Found more in Note 57
105
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. 1,443,148.59 2,356,618.56
Deposit, security deposit, advance payment
6,200,000.00 10,556,000.00
received
Government subsidy 300,000.00
Other 788,879.22 2,094,036.84
Total 8,732,027.81 15,006,655.40
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
Deposits and security deposits paid 6,000,000.00 4,000,000.00
Payment of period expenses, operating
4,660,629.28 6,968,482.31
expenses and common debts, etc.
Total 10,660,629.28 10,968,482.31
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
106
(5) Other cash received in relation to financing activities
In RMB
Item Current Period Last Period
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
Supplementary information Current period Last Period
1． Net profit adjusted to cash flow of
-- --
operation activities:
Net profit 1,577,839.42 3,420,613.90
Add: Assets impairment provision -1,346,386.44 -170,387.85
Depreciation of fixed assets,
consumption of oil assets and depreciation of 185,219.91 200,112.95
productive biology assets
Depreciation of right-of-use assets
Amortization of intangible assets 376,500.00
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
107
with “-”)
Investment loss (gain is listed with
“-”)
Decrease of deferred income tax
62,439.81
asset ((increase is listed with “-”)
Increase of deferred income tax
liability (decrease is listed with “-”)
Decrease of inventory (increase is
128,250.17 1,952,473.39
listed with “-”)
Decrease of operating receivable
-4,177,306.87 -8,239,522.04
accounts (increase is listed with “-”)
Increase of operating payable accounts
1,185,256.99 3,773,102.22
(decrease is listed with “-”)
Other
Net cash flows arising from operating
-2,447,126.82 1,350,395.94
activities
2. Material investment and financing not
-- --
involved in cash flow
Conversion of debt into capital
Switching Company bonds due within
one year
financing lease of fixed assets
3. Net change of cash and cash equivalents: -- --
Balance of cash at period end 17,434,893.24 12,214,263.85
Less: Balance of cash equivalent at
19,887,978.05 6,074,367.91
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 -2,453,084.81 6,139,895.94
(2) Net cash paid for obtaining subsidiary in the Period
In RMB
Amount
Including: --
Including: --
108
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
I. Cash 17,434,893.24 19,887,978.05
Including: Cash on hand 29,702.26 21,530.26
Bank deposit available for payment
17,405,190.98 19,866,447.79
at any time
Ⅲ. Balance of cash and cash equivalent at
17,434,893.24 19,887,978.05
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
109
82. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Ending foreign currency
Item Convert rate Ending RMB balance converted
balance
Monetary fund -- --
Including: USD
EURO
HKD
Account receivable -- --
Including: USD
EURO
HKD
Long-term loans -- --
Including: USD
EURO
HKD
Other explanation:
Nil
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,
disclosed main operation place, book-keeping currency and basis for selection; if the book-keeping
currency changed, explain reasons
□Applicable √Not applicable
83. Hedging
Disclosed hedging items and relevant hedging instrument based on hedging’s category, disclosed qualitative and quantitative
information for the arbitrage risks:
Nil
110
84. Government grants
(1) Government grants
In RMB
Amount reckoned into current
Category Amount Item
gains/losses
High-tech enterprise
300,000.00 Non-operating income 300,000.00
recognition support fund
(2) Government grants rebate
□Applicable √Not applicable
Other explanation:
Nil
85. Other
Nil
VIII. Changes of consolidation range
1. Enterprise combined under different control
(1) Enterprise combined under different control in the Period
In RMB
Income of Net profit of
Standard to
Time point Cost of Ratio of Acquired acquiree from acquiree from
Purchasing determine the
Acquiree for equity equity equity way Equity purchasing purchasing
date purchasing
obtained obtained obtained obtained way date to date to
date
period-end period-end
Other explanation:
Nil
(2) Combination cost and goodwill
In RMB
Combination cost
Determination method for fair value of the combination cost and contingent consideration and changes:
Nil
Main reasons for large goodwill resulted:
111
Nil
Other explanation:
Nil
(3) Identifiable assets and liability on purchasing date under the acquiree
In RMB
Fair value on purchasing date Book value on purchasing date
Determination method for fair value of the identifiable assets and liabilities:
Nil
Contingent liability of the acquiree bear during combination:
Nil
Other explanation:
Nil
(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing date
Whether it is a business combination realized by two or more transactions of exchange and a transaction of obtained control rights in
the Period or not
□Yes √No
(5) On purchasing date or period-end of the combination, combination consideration or fair value of
identifiable assets and liability for the acquiree are un-able to confirm rationally
Nil
(6) Other explanation
Nil
2. Enterprise combine under the same control
(1) Enterprise combined under the same control in the Period
In RMB
Income of the Net profit of
Income of the Net profit of
combined the combined
Basis of Standard to combined the combined
Equity ratio party from party from
Combined combined Combination determine the party during party during
obtained in period-begin period-begin
party under the date combination the the
combination of of
same control date comparison comparison
combination combination
period period
to the to the
112
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:
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:
113
6. Other
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 information
Shenzhen Shenzhen 49.00% Investment
Technology Co., technology
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% -129,838.34 1,463,235.67
114
Industry Co., Ltd.
Shenzhen Xinsen Jewelry
Gold Supply Chain Co., 35.00% 405,941.59 12,943,996.76
Ltd.
Shenzhen Emmelle
Cloud Technology Co., 51.00% -63,757.17 542,172.35
Ltd.
Explanation on share-holding ratio of minority different from ratio of voting right:
Nil
Other explanation:
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.
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
Ending balance Opening balance
Subsidia Non-curr Non-curr Non-curr Non-curr
Current Total Current Total Current Total Current Total
ry ent ent ent ent
assets assets liability liabilities assets assets liability liabilities
assets liability assets liability
Shenzhe
n
12,115,6 2,368,13 14,483,8 9,606,38 9,606,38 12,402,5 2,418,25 14,820,7 9,510,50 9,510,50
Emmelle 0.00
98.50 4.13 32.63 0.42 0.42 02.99 0.69 53.68 6.99 6.99
Industry
Co., Ltd.
Shenzhe
n Xinsen
Jewelry
45,037,4 36,552.0 45,073,9 9,498,27 9,498,27 44,211,8 36,552.0 44,248,4 9,832,52 9,832,52
Gold 0.00
24.78 2 76.80 1.75 1.75 49.29 2 01.31 9.38 9.38
Supply
Chain
Co., Ltd.
Shenzhe
n
Emmelle
3,636,33 3,636,33 1,749,71 1,749,71 2,037,69 2,037,69 26,068.0 26,068.0
Cloud 0.00 0.00
1.59 1.59 9.14 9.14 4.53 4.53 2 2
Technolo
gy Co.,
Ltd.
In RMB
Subsidiary Current Period Last Period
115
Cash flow Cash flow
Total Total
Operation from Operation from
Net profit comprehensi Net profit comprehensi
revenue operation revenue operation
ve income ve income
activity activity
Shenzhen
Emmelle
773,553.50 -432,794.48 -432,794.48 -20,947.65 1,638,684.75 363,445.66 363,445.66 -2,879,621.36
Industry Co.,
Ltd.
Shenzhen
Xinsen
40,728,749.5 25,097,387.7
Jewelry Gold 1,159,833.12 1,159,833.12 -358,689.39 1,468,390.57 1,468,390.57 -9,359,387.83
7 6
Supply Chain
Co., Ltd.
Shenzhen
Emmelle
Cloud 332,743.53 -125,014.06 -125,014.06 -1,476,987.94
Technology
Co., Ltd.
Other explanation:
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
116
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
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: -- --
117
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
(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
118
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 operati ng
performance to the lowest level, maximize the interests of shareholders and other equity investors. Based on these objectives, the
Company has established risk management policies to identify and analyze the risks faced by the Company, set adequate risk
acceptable level and designed relevant internal control system to monitor the level of risks. The Company regularly reviews these
policies and related internal control system to adapt to market development and change of operating activities of the Company. The
major risks arising from the Company’s financial instruments are credit risk and liquidity risk.
(1) Credit risk
Credit risk represents the risk of financial loss suffered by a party to a financial instrument due to failure of performance obligation of
another party.
Credit risk of the Company is managed by category. Credit risk mainly arises from bank deposits and trade 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.
119
In order to maintain and adjust capital structure, the Company may adjust share dividend paid to shareholders or issue new shares.
The Company monitors capital structure based on gearing ratio (total liabilities divided by total assets). As at 30 June 2021, the
gearing ratio of the Company was 71.20 % (31 December 2020: 72.05%)
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
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
120
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
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
121
4. Other related party
Other related party Relationship with the Company
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.
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
Transaction Approved transaction Whether more than
Related party Current Period Last Period
content amount the transaction amount
Goods sold/labor service providing
In RMB
Related party Transaction content Current Period Last Period
Explanation on goods purchasing, labor service providing and receiving
Nil
(2) Related trusteeship/contract and delegated administration/outsourcing
Trusteeship/contract
In RMB
Income from
Client/ Entrusting party/ Yield pricing
Assets type Starting date Maturity date trusteeship/contra
contract-out party contractor basis
ct
Explanation on related trusteeship/contract
Nil
Delegated administration/outsourcing
In RMB
Pricing basis of Trustee
Client/ Entrusting party/ trustee fee/outsourcing
Assets type Starting date Maturity date
contract-out party contractor fee/outsourcing fee recognized in
fee the Period
Explanation on related administration/outsourcing
Nil
122
(3) Related lease
As a lessor for the Company:
In RMB
Lease income in recognized in Lease income in recognized last
Lessee Assets type
the Period the Period
As a lessee for the Company:
In RMB
Lease income in recognized in Lease income in recognized last
Lessor Assets type
the Period the Period
Explanation on related lease
Nil
(4) Related guarantee
As a guarantor for the Company
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
123
(7) Remuneration of key manager
In RMB
Item Current Period Last Period
Remuneration of key manager 789,400.00 728,400.00
(8) Other related transactions
Nil
6. Receivable/payable items of related parties
(1) Receivable item
In RMB
Ending balance Opening balance
Item Related party
Book balance Bad debt provision Book balance Bad debt provision
(2) Payable item
In RMB
Item Related party Ending book balance Opening book balance
Shenzhen Guosheng Energy
Other account payable Investment Development Co., 6,500,000.00 6,500,000.00
Ltd.
7. Commitments of related party
Nil
8. Other
Nil
XIII. Share-based payment
1. General share-based payment
□Applicable √Not applicable
2. Share-based payment settled by equity
□Applicable √Not applicable
124
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
2. Profit distribution
In RMB
125
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
3. Assets replacement
(1) Non-monetary assets change
(2) Other assets replacement
4. Pension plan
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
126
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 40,728,749.57 13,401,568.03 54,130,317.60
Main business cost 37,322,674.70 11,267,445.42 48,590,120.12
The total profit 1,321,219.59 418,006.31 1,739,225.90
Income tax expense 161,386.47 0.01 161,386.48
Net profit 1,159,833.12 418,006.30 1,577,839.42
Total assets 45,073,976.80 69,392,269.33 19,960,379.73 94,505,866.40
Total liabilities 9,498,271.75 57,787,465.55 67,285,737.30
Shareholders' equity
35,575,705.05 11,604,803.78 19,960,379.73 27,220,129.10
Total
(3) The Company has no reportable segments, or unable to disclose total assets and total liability for
reportable segments, explain reasons
Nil
(4) Other explanation
Nil
7. Major transaction and events makes influence on investor’s decision
Nil
127
8. Other
Nil
XVII. Principle notes of financial statements of parent company
1. Account receivable
(1) By category
In RMB
Ending balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Account receivable
with bad debt 3,440,05 1,032,01 2,408,039 7,503,671 2,251,101 5,252,570.0
13.42% 30.00% 28.23% 30.00%
provision accrual by 5.79 6.74 .05 .53 .47 6
single basis
Including:
Accounts with single
minor amount but
3,440,05 1,032,01 2,408,039 7,503,671 2,251,101 5,252,570.0
with bad debts 13.42% 30.00% 28.23% 30.00%
5.79 6.74 .05 .53 .47 6
provision accrued
individually
Account receivable
with bad debt 22,187,4 66,562.4 22,120,90 19,079,60 19,022,365.
86.58% 0.30% 71.77% 57,238.82 0.30%
provision accrual by 69.22 0 6.82 4.72 90
portfolio
Including:
Account receivable
withdrawal bad debt
provision by group of
22,187,4 66,562.4 22,120,90 19,079,60 19,022,365.
credit risk 86.58% 0.30% 71.77% 57,238.82 0.30%
69.22 0 6.82 4.72 90
characteristics
(Aging analysis
method)
25,627,5 1,098,57 24,528,94 26,583,27 2,308,340 24,274,935.
Total 100.00% 4.29% 100.00% 8.68%
25.01 9.14 5.87 6.25 .29 96
Bad debt provision accrual on single basis: Account receivable with significant single amount period-end but withdrawal bad debt
provision on single basis
128
In RMB
Ending balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
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
746,734.00 224,020.20 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
348,136.00 104,440.80 30.00%
New Energy Co., Ltd. to recover
Suzhou Daming Vehicle Expected to be difficult
449,195.00 134,758.50 30.00%
Industry Co., Ltd. to recover
Total 3,440,055.79 1,032,016.74 -- --
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: 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
20,015,883.28 60,047.64 0.30%
included)
1-2 years (2 years included) 2,171,585.94 6,514.76 0.30%
Total 22,187,469.22 66,562.40 --
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
129
By account age
In RMB
Account age Ending balance
Within one year (one year included) 20,015,883.28
Within one year 20,015,883.28
1-2 years 5,611,641.73
Over 3 years 0.00
Total 25,627,525.01
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Category Opening balance Collected or Ending balance
Accrual Charge-off Other
reversal
Bad debt
provision for
2,308,340.29 37,561.98 1,247,323.13 1,098,579.14
accounts
receivable
Total 2,308,340.29 37,561.98 1,247,323.13 1,098,579.14
Including important amount of bad debt provision collected or reversal in the period:
In RMB
Enterprise Amount collected or reversal Collection way
Shenzhen Jiahaosong Technology Co., Ltd. 718,081.13 Bank transfer, payment of goods arrears
Shenzhen Weterui New Energy Technology
501,291.32 Bank transfer, payment of goods arrears
Co., Ltd.
Total 1,219,372.45 --
After the Company sent a lawyer's letter, the other party offset arrears by part of the goods after negotiation, and the rest was paid by
bank transfer. Because the customer has not paid the debt according to the time limit agreed in the contract, which is more than one
year overdue, and the debt recovery is expected to be difficult, so the bad debt is set aside at 30% of impairment.
(3) Account receivables actually charge-off during the reporting period
In RMB
Item Amount charge-off
Including major account receivables charge-off:
In RMB
130
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
19,875,160.22 77.55% 59,625.48
Technology Co., Ltd.
Hubei Testun Electronic
1,045,000.00 4.08% 3,135.00
Technology Co., Ltd.
Zhengzhou Guiguan Tech.
1,007,233.79 3.93% 302,170.14
Trade. Co., Ltd
Suzhou Jiaxin Economic Trade
888,757.00 3.47% 266,627.10
Co., Ltd.
Dongguan Daxiang New
746,734.00 2.91% 224,020.20
Energy Co., Ltd.
Total 23,562,885.01 91.94%
(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 129,953.19 115,263.05
Total 129,953.19 115,263.05
131
(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
132
(3) Other account receivable
1) By nature
In RMB
Account nature Ending book balance Opening book balance
Deposit or margin 106,263.00 105,713.00
Payment for equipment 11,400.00 11,400.00
Reserve fund 24,846.88 10,396.88
Total 142,509.88 127,509.88
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,
12,246.83 12,246.83
2021
January 1, 2021 balance
—— —— —— ——
in the current period
Accrued in this period 309.86 309.86
Balance on June 30, 2021 12,556.69 12,556.69
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
By account age
In RMB
Account age Ending balance
Within one year (one year included) 128,609.88
Within one year (one year included) 128,609.88
1-2 years 2,000.00
Over 3 years 11,900.00
3-4 years 200.00
4-5 years 11,700.00
Total 142,509.88
133
3）Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Category Opening balance Collected or Ending balance
Accrual Charge-off Other
reversal
Bad debt
provision for 12,246.83 309.86 12,556.69
other receivables
Total 12,246.83 309.86 12,556.69
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 2 years 42.26% 180.67
(Group) Co., Ltd.
134
Huang Zeqi Reserve fund 20,000.00 Within one year 14.03% 60.00
Chen Yanjun Reserve fund 15,000.00 Within one year 10.52% 45.00
Shenzhen Hongkang
Payment for
Instrument 11,400.00 4-5 years 8.00% 11,400.00
equipment
Technology Co., Ltd.
Shenzhen Pengji
Property Management Deposit or margin 10,441.00 Within 2 years 7.33% 31.32
Service Co., Ltd.
Total -- 117,063.00 -- 82.14% 11,716.99
6) Account receivable with government grants involved
In RMB
Time, amount and basis
Enterprise Government grants Ending Balance Ending account age of amount collection
estimated
Nil
7) Other account receivable derecognition due to financial assets transfer
Nil
8) Assets and liability resulted by other account receivable transfer and continuous involvement
Nil
Other explanation:
Nil
3. Long-term equity investment
In RMB
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment for
21,350,000.00 1,389,620.27 19,960,379.73 21,350,000.00 1,389,620.27 19,960,379.73
subsidiary
Total 21,350,000.00 1,389,620.27 19,960,379.73 21,350,000.00 1,389,620.27 19,960,379.73
(1) Investment for subsidiary
In RMB
135
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
19,950,000.00 19,950,000.00
Gold Supply
Chain Co., Ltd.
Total 19,960,379.73 0.00 0.00 0.00 0.00 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
Current Period Last Period
Item
Revenue Cost Revenue Cost
Main business 8,037,060.02 8,099,218.05 9,271,106.93 8,988,379.05
136
Other business 4,341,623.90 2,413,822.85 6,679,717.49 3,645,817.35
Total 12,378,683.92 10,513,040.90 15,950,824.42 12,634,196.40
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
Item Amount Note
Governmental subsidy reckoned into current
300,000.00
gains/losses (not including the subsidy
137
enjoyed in quota or ration according to
national standards, which are closely
relevant to enterprise’s business)
Switch back of the impairment provision for
account receivable with impairment test on 1,357,466.13
single basis and contract assets
Other non-operating income and expenditure
157,664.40
except for the aforementioned items
（-）Impact on minority shareholders’ equity 33,042.90
Total 1,782,087.63 --
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
11.78% 0.0025 0.0025
stockholders of the Company
Net profits belong to common stock
stockholders of the Company after
-3.60% -0.0008 -0.0008
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
138
(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
4. Other
Board of Directors of
Shenzhen China Bicycle Company (Holdings) Limited
25 August 2021
139
