深圳市深宝实业股份有限公司 2014 年半年度报告全文
SHENZHEN SHENBAO INDUSTRIAL CO., LTD
SEMI-ANNUAL REPORT 2014
August 2014
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and
senior executives of Shenzhen Shenbao Industrial Co., Ltd. (hereinafter
referred to as the Company) hereby confirm that there are no any fictitious
statements, misleading statements, or important omissions carried in this
report, and shall take all responsibilities, individual and/or joint, for the
reality, accuracy and completion of the whole contents.
All Directors are attended the Board Meeting for deliberation of this
Report.
The Company has no plans of cash dividend distributed, no bonus shares
and has no share converted from capital reserve either.
Chairman of the Company Mr. Zheng Yuxi, General Manager Mr. Yan
Zesong, Chief Financial Officer Ms. Wang Zhiping and Financial
Management Department Manager Mr. Xu Qiming hereby confirm that
the Financial Report of Semi-Annual Report 2014 is authentic, accurate
and complete.
Concerning the forward-looking statements with future planning involved
in the semi-annual report, they do not constitute a substantial commitment
for investors, Securities Times, China Securities Journal, Hong Kong
Commercial Daily and Juchao Website (www.cninfo.com.cn) are the media
appointed by the Company for information disclosure, all information of
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
the Company disclosed in the above mentioned media should prevail.
Investors are advised to exercise caution of investment risks.
This report has been prepared in Chinese and English version respectively.
In the event of difference in interpretation between the two versions,
Chinese report shall prevail.
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
Content
Section I. Important Notice, Contents and Paraphrase .......................................... 2
Section II Company profile ........................................................................................ 7
Section III. Accounting data and summary of financial indexes ............................ 9
Section IV. Report of the Board of Directors .......................................................... 11
Section VIII. Financial Report ................................................................................. 39
Section IX. Documents available for Reference ................................................... 144
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
Paraphrase
Items Refers to Contents
Shenshenbao/the Company/Listed
Refers to Shenzhen Shenbao Industrial Co., Ltd
Company
Shenzhen Shenbao Huacheng Science and Technology
Shenbao Huacheng Refers to
Co.,Ltd
Wuyuan Jufangyong Refers to Jufangyong Tea Industry Co., Ltd. in Wuyuan County
Hangzhou Ju Fang Yong Refers to Hangzhou Ju Fang Yong Holding Co., Ltd.
Shenbao Yuxing Refers to Fujian Mount Wuyi Shenbao Yuxing Tea Co., Ltd.
Shen Shenbao Huafa Refers to Zhejiang Shen Shenbao Huafa Tea Co., Ltd.
Technology Center Refers to Shenzhen Shenbao Technology Center Co., Ltd.
Huizhou Shenbao Science & Technology Refers to Huizhou Shenbao Science & Technology Co., Ltd.
Shenzhen Shenbao Sanjing Food & Beverage
Shenbao Sanjing Refers to
Development Co., Ltd
Shenbao Industrial & Trading Refers to Shenzhen Shenbao Industrial & Trading Co., Ltd.
Shenbao Properties Refers to Shenzhen Shenbao Properties Management Co., Ltd.
Shenshenbao Investment Refers to Shenzhen Shenshenbao Investment Co., Ltd.
Fuhaitang Refers to Fuhaitang Tea Ecological Technology Co., Ltd.
Chunshi Network Refers to Hangzhou Chunshi Network Technology Co.,Ltd.
Yuxing Company Refers to Fujian Wuyishan Yuxing Tea Co., Ltd.
Zhejiang Huafa Refers to Zhejiang Huafa Tea Co., Ltd.
Changzhou Sanjing Refers to Changzhou Sanjing Grease Co., Ltd
Agricultural Products Refers to Shenzhen Agricultural Products Co., Ltd
Shenzhen Investment Holding Refers to Shenzhen Investment Holding Co., Ltd
Tianzhong Investment Refers to Shenzhen Tianzhong Investment Co., Ltd.
Shenzhen Municipal People’s Government State-owned
Shenzhen SASAC Refers to
Assets Supervision & Administration Commission
CBC Refers to Shenzhen China Bicycle Company (Holdings) Limited
CSRC Refers to China Securities Regulation Commission
SSE Refers to Shenzhen Stock Exchange
Dahua CPA Refers to Dahua Certified Public Accountants (LLP)
Article of Association of Shenzhen Shenbao Industrial Co.,
Article of Association Refers to
Ltd
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
RMB/10 thousand Yuan Refers to CNY/ten thousand Yuan
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
Section II Company profile
I. Company information
SHENSHENBAO-A,
Short form for share Stock code 000019, 200019
SHENSHENBAO-B
Listing stock exchange Shenzhen Stock Exchange
Chinese name of the
深圳市深宝实业股份有限公司
Company
Abbr. of Chinese name of
the Company(if 深宝
applicable)
English name of the
SHENZHEN SHENBAO INDUSTRIAL CO.,LTD.
Company(if applicable)
Abbr. of English name of
the Company(if SBSY
applicable)
Legal Representative Zheng Yuxi
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Li Yiyan Huang Bingxia
23/F, Education Technology Mansion, No.26 23/F, Education Technology Mansion, No.26 Zizhu
Contact add. Zizhu Qi Dao, Zhuzilin Fourth Road, Futian Qi Dao, Zhuzilin Fourth Road, Futian District,
District, Shenzhen Shenzhen
Tel. 0755-82027522 0755-82027522
Fax. 0755-82027522 0755-82027522
E-mail lyy@sbsy.com.cn huangbx@sbsy.com.cn
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the
Company changed in reporting period or not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
no change in reporting period, found more details in Annual Report 2013.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish
appointed by CSRC and preparation place for semi-annual report have no change in reporting
period, found more details in Annual Report 2013.
3. Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable √ Not applicable
Date/place for registration of the Company, registration number for enterprise legal license, number
of taxation registration and organization code have no change in reporting period, found more
details in Annual Report 2013.
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
Section III. Accounting data and summary of financial indexes
I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting
policy changed and accounting error correction or not
□Yes √ No
Increase/decrease in this
Current period Same period of last year
report y-o-y (%)
Operating revenue (RMB) 118,250,169.14 229,743,390.32 -48.53%
Net profit attributable to
shareholders of the listed -23,382,126.99 -5,934,967.21 -293.97%
company(RMB)
Net profit attributable to
shareholders of the listed company
-28,395,649.40 -10,772,467.32 -163.59%
after deducting non-recurring gains
and losses(RMB)
Net cash flow arising from operating
16,786,120.54 -11,847,579.84 241.68%
activities(RMB)
Basic earnings per share
-0.0777 -0.0237 -227.85%
(RMB/Share)
Diluted earnings per share
-0.0777 -0.0237 -227.85%
(RMB/Share)
Weighted average ROE (%) -2.47% -0.62% -298.39%
Increase/decrease in this
End of current period End of last period report-end over that of
last period-end
Total assets (RMB) 1,402,346,193.23 1,336,638,587.42 4.92%
Net assets attributable to shareholder
934,168,283.36 960,517,069.55 -2.74%
of listed company(RMB)
II. 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)
In RMB
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
Net profit attributable to shareholders of Net assets attributable to shareholders of
listed company listed company
Amount in this Amount at Amount at
Amount in last period
period period-end period-begin
Chinese GAAP -23,382,126.99 -5,934,967.21 934,168,283.36 960,517,069.55
Items and amount adjusted by IAS
Adjustment for other
payable fund of stock 1,067,000.00 1,067,000.00
market regulation
IAS -23,382,126.99 -5,934,967.21 936,669,911.47 961,584,069.55
III. Items and amounts of extraordinary profit (gains)/loss
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset
(including the write-off that accrued for impairment of 2,818,518.36
assets)
Governmental subsidy reckoned into current
gains/losses (not including the subsidy enjoyed in quota
1,639,508.42
or ration according to national standards, which are
closely relevant to enterprise’s business)
Gains and losses from change of fair values of
held-for-transaction financial assets and financial
liabilities except for the effective hedge business related
396,856.13
to normal business of the Company, and investment
income from disposal of transactional financial assets
and liabilities and financial assets available for sale
Other non-operating income and expenditure except for
286,559.99
the aforementioned items
Less: impact on income tax 129,282.25
Impact on minority shareholders’ equity (post-tax) -1,361.76
Total 5,013,522.41 --
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
Section IV. Report of the Board of Directors
I. Introduction
In reporting period, the Company stably promoted execution of various sections including the Deep & Fine
processing, fine tea, food & beverage, Tea Park and R&D, in accordance with development strategy. We rapidly
enhanced layout of strategy and speedy transform development. What’s more, we further boosted the plan of a
operational headquarter which will transit to strategy, investment, assets and operation center, business
coordination center, public resources and professional administration platform. Multiple incentive mechanism had
been encouraged to coop with corporate strategy. Thus new KIP system was issued. And various incentive
mechanism and measurements for subordinate corporations were issued as affiliation.
In reporting period, the Company positively expanded main business, firmly promoted progress of fundraising
projects, in order to perfect the sustainable construction of tea industry chain. On one hand, we carried out various
point of division allocation for brand strategy, speed up promotion of fashion brands and JuFangYong, Longjing
Tea, XingJiu Wuyi stone tea, etc as well as promotion and E-commence expand for iTealife-FuHaiTang. This
kind of measure strengthened promotion, attracted and reinforced consumers firstly, and secondly effectively
expanded reputation and online sales volume of products as we innovated, started from point of Wechat
Marketing, got contact with consumers rapidly, formed re-spread and reputation of products among social
network. On the other hand, we integrated resources and built traditional tea industry using modern marketing
strategy, namely bringing in O2O model into the industry. We aggressively built the O2O sales platform, engine
offline layout of O2O model, set up the 1st offline entrance to iTealife-FuHaiTang experience store which
demonstrate online products as well as the producing process and tasting. QR Code was also applied to lead
self-consumption of young consumers. Besides, we arranged O2O Life experience center for brand tea to explore
the chance to get deep contact with consumers, to form interactive between online and offline, further to
word-of-mouth communication. Thirdly, we arranged and laid out Pu’er Tea business which will lead us to set up
a Pu’er Tea trade center Co., Ltd. And as affiliation, Small loan companies, Guarantee Corporation will be found
to coordinate Pu’er Tea resource, trade platform and financial-like business. Fourthly, deep & fine processing was
required by products upgrading to expand market.
During the reporting period, the Company enhanced production safety and food security, ensured 0 production
safety & food security accidents in past half year. We further improved internal control system, boosted overall
internal control level, improved risk prevention ability. Opening of VI system and formal launch of new website
further cooped with needs of strategy, improved the external recognition, specialty and competitiveness of the
Company, laying foundation for a bound new image of Shenbao.
In reporting period, the Company realized operating income of 118,250,200 Yuan, down by 48.53% compared to
the same period of last year; operating profit of -25,937,000 Yuan, down by 243.35% compared to the same
period of last year; net profit attributable to shareholders of listed company of -23,382,100 Yuan, down by 293.97%
compared to the same period of last year.
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
II. Main business analysis
Y-o-y changes of main financial data
In RMB
Y-o-y
Same period of last
Current period increase/decreas Reasons for changes
year
e
Mainly because equity of Shenshenbao
Operation revenue 118,250,169.14 229,743,390.32 -48.53% Huafa transferred in the Period, and
corresponding operating income decreased
Mainly because equity of Shenshenbao
Operation cost 96,487,715.91 195,082,954.37 -50.54% Huafa transferred in the Period, and
corresponding operating cost decreased
Sales expenses 14,666,176.74 16,359,699.07 -10.35%
Mainly because the charges for employee,
Administrative
36,953,716.61 25,189,742.50 46.70% intermediary, brand and promotion
expenses
increased
Mainly due to the declined in interest
Financial cost -1,033,644.01 -112,173.57 -821.47%
expenses and exchange loss in the Period
Mainly because income tax expenses
Income tax expense 517,581.33 3,052,026.68 -83.04%
decreased in the period.
Net cash flow arising
Mainly because account of pre-sale of
from operation 16,786,120.54 -11,847,579.84 241.68%
Emerald Apartment increased in the Period
activities
Mainly because the equity transfer amount
of Shenshenbao Huafa was received;
investment for Wuyuan project in the
Net cash flow arising
Period decreased over that of last period;
from investment -21,860,148.84 -128,480,521.51 82.99%
and there was 84.25 million Yuan
activities
expenditure for purchasing office building
at same period of last year while no such
amount occurred in the Period
Net cash flow arising
from financing 89,120,187.24 78,374,250.01 13.71%
activities
Mainly because the amount of pre-sale of
Net increase of cash
84,162,044.52 -63,310,425.87 232.94% Emerald Apartment received in the Period
and cash equivalent
and equity tansfer amount of Shenshenbao
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
Huafa received
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period
The future development and planning extended to reporting period that published in disclosure
documents as prospectus, private placing memorandum and recapitalize statement
□ Applicable √ Not applicable
No future development and planning extended to reporting period that published in disclosure
documents as prospectus, private placing memorandum and recapitalize statement
Review on the previous business plan and its progress during reporting period
The Company proceeded according to the business plan in the reporting.
III. Composition of main business
In RMB
Increase or Increase or Increase or
decrease of decrease of decrease of gross
Gross profit
Operating revenue Operating cost operating revenue operating cost profit ratio over
ratio
over same period over same period same period of
of last year of last year last year
According to industries
Industry 117,956,769.14 96,487,715.91 18.20% -5.42% -3.83% -6.10%
Rental service 293,400.00 100.00% 0.00% 0.00% 0.00%
Trading -100.00% -100.00% -9.42%
According to products
Condiment
5,524,229.27 3,329,381.37 39.73% 3.21% -3.28% 4.04%
manufacturing
Soft drink
14,635,957.30 10,365,966.51 29.17% 10.60% 6.25% 2.90%
manufacturing
Tea industry 97,796,582.57 82,792,368.03 15.34% -7.85% -4.98% -2.56%
Rental service 293,400.00 100.00% 0.00% 0.00% 0.00%
According to region
South China 47,829,313.49 37,062,592.99 22.51% 21.76% 28.63% -4.13%
North China 9,321,230.97 8,624,911.14 7.47% -16.33% -11.24% -5.31%
East China 44,868,581.17 37,726,432.79 15.92% -10.75% -9.18% -1.46%
Central China 6,103,966.38 5,545,732.82 9.15% -63.78% -63.07% -1.73%
Export 6,926,988.15 4,586,268.60 33.79% -93.56% -95.23% 23.17%
Other 3,200,088.98 2,941,777.57 8.07% -29.83% -22.37% -8.84%
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
Export gross margin changed due to the sales of equity of Shenshenbao Huafa in the Period
IV. Core competitive-ness analysis
Core competitive-ness of the Company has no major changes in the Period.
V. Investment analysis
1. Situation of foreign equity investment
(1) Securities investment
Proporti
Amount of Proporti
on of Amount of
Initial stock-hold on of
Variet stock-ho stock-hold Gains and loss
Code of Short form investme ing at the stock-ho Book value at the
y of lding at ing at the in the Accountin Source of
securitie of nt beginning lding at end of the period
securit the end of the reporting g subject stock
s securities cost(RM of the the end (RMB)
ies beginnin period (RMB)
B) period of the
g of the (Share)
(Share) period
period
Paid
Financial shares
Zhonghua- assets
Stock 000017 258,011 0.05% 258,011 0.05% 1,532,585.34 397,336.94 from debt
A available
for sale reorganiza
tion
Paid
Financial shares
Zhonghua- assets
Stock 200017 197,019 0.04% 0 0.00% 0.00 -480.81 from debt
B available
for sale reorganiza
tion
Other security investment
0.00 0 -- 0 -- 0.00 0.00 -- --
held at period-end
Total 0.00 455,030 -- 258,011 -- 1,532,585.34 396,856.13 -- --
Statement of holding equity of other listed companies
□ Applicable √ Not applicable
The Company held no equity of other listed companies in Period.
2. Application of raised proceeds
(1)Overall application of raised proceeds
In ten thousand Yuan
Total raised proceeds 57,239.21
Total raised proceeds invested during the 5,633.48
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
reporting period
Total accumulative raised proceeds invested 42,135.35
Total raised proceeds for new purposes during
0
the reporting period
Total accumulative raised proceeds for new
16,729.17
purposes
Proportion of the total accumulative raised
29.23%
proceeds for new purposes
General application of raised proceeds
Being approved of “Reply on Privately Offering from Shenzhen Shenbao Industrial Co., Ltd.” ZJXK[2011] No.
777 issued from CSRC, the Company privately offering 68,977,066 shares of RMB ordinary share (A share) to 8
target investors with issuing price of RMB 8.70 each, RMB 1.00 face value. Total monetary capital RMB
600,100,474.20 was raised, actual net capital raised for Shenshenbao amounting to RMB 572,392,141.89 after
deducting relevant offering expenses RMB 27,708,332.31. The capital privately raised above said has fully
funded on 23 June 2011 and has verified by “Verification Report” LIXIN DAHUA YZi [2011] No. 177 issued
from Lixin Dahua. The fund-raised above said saving in the specific account dated 22 July 2011.
In 2012, the Company raised proceeds of RMB 155 million by canceling the “Comprehensive Project with
Annual Capacity of 300 Tons Catechin”, among which, RMB125 million was used to invest in the “Project of
Developing High-end Brand Classical Tea” (including the original “Chain Project for Classical Tea Leaves” with
total investment of RMB155 million, among which, RMB125 million was provided by the change in the
proceeds application from the aforesaid “Comprehensive Project with Annual Capacity of 300 Tons Catechin”,
and RMB 30 million was from the proceeds from the original “Chain Project for Classical Tea Leaves”, the
project was implemented by the subordinate Hangzhou Ju Fang Yong). Besides, the remaining RMB 30 million
was used to establish a joint venture with Zhejiang Huafa to carry out export business of tea leaves. The
Company cancelled implementation for the “Expansion Project of Seasoning Production Line”, pursuant to
which, the original proceeds RMB12, 291,700 was adjusted in increasing investment for the “Project of R&D
Center for Tea and Natural Plants”. The Company also decided to change the implementation subject of such
project from the original wholly-owned subsidiary Wuyuan Jufangyong to the newly incorporated and registered
subordinate wholly-owned subsidiary Shenzhen Shenbao Research & Development Center Co., Ltd. also, the
place for implementation was also changed from Wuyuan county Jiangxi province to Shenzhen, Guangdong
province. Those changes were deliberated and approved in the 2011 Annual General Shareholders’ Meeting of
the Company held on 27 April 2012.
Up to 30 June 2014, the Company has invested an accumulated 421,353,524.21 Yuan for the fund-raised project,
balance of fund-raised amounting to 167,090,575.47 Yuan.
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
(2) Situation of committed project of raised proceeds
In ten thousand Yuan
Total Amount of Predicted Project
Projects
Total investment Investment Reach the
changed or
Committed investment committed after Amount accumulated program till
serviceable Profit
predicted
feasibility
not
projects &investment of investment adjustment invested in investment condition realized in was changed
(including the year-end interest or
raised fund of raised (1) this year till the date of this year hugely or
changed
capitals (3)=(2)/(1) not
partially) year-end (2) project not
Investment project commitment
1. Acquisition of 48.33%
equity from Shenbao No 6,510.05 6,510.05 0 6,510.05 100.00% 2011-7-31 -255.26 Yes No
Huacheng
2. Comprehensive Investment
No 27,000 27,000 2,886.6 16,200.43 60.00% 2015-9-30 9.25 No No
Project of Tea Industry Chain
3. Comprehensive Project Yes
with Annual Capacity of 300 15,500 2014-1-31 N/A Yes
Tons Catechin
4. Chain Project for Classical Yes N/A
3,000 2015-7-31 No
Tea Leaves
5. Project of R&D Center for Yes N/A
4,000 2012-4-30 No
Tea and Natural Plants
6. Expansion Project of Yes N/A
4,000 2012-7-31 Yes
Condiment Production Line
7. Project of Developing
15,500 2,363.64 11,218.88 72.38% 2016-4-30 No No
High-end Brand Classical Tea
8. Establishment of joint
venture of Zhejiang Shen 3,000 0 3,000.42 100.00% 2012-12-31 Yes No
Shenbao Huafa Tea Co., Ltd.
9. Project of R&D Center for
5,229.17 383.24 5,205.57 99.55% 2014-12-31 No No
Tea and Natural Plants
Total of commitment projects -- 60,010.05 57,239.22 5,633.48 42,135.35 -- -- -246.01 -- --
Investment of raised fund
Total -- 60,010.05 57,239.22 5,633.48 42,135.35 -- -- -246.01 -- --
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
1. Reasons fail to achieve the design schedule of R&D Center for Tea and Natural Plants project: in April 2014, the Company decided
to increase the investment capital to 54 million Yuan for Project of R&D Center for Tea and Natural Plants, including 34.55 million
Yuan used for purchasing office and lab in Shenzhen. Suffered by the fluctuation of real estate price in the market, project sites still in
the air and project unable to achieve the schedule. On 31 May 2013, the Proposal of Purchasing Office from Shareholder of the
Particular about not coming
Company was deliberated and approved in 2nd extraordinary general meeting of 2013, agreed to purchase office place in Shenzhen
up to schemed progress or
under the help of the Company and subsidiary Shenzhen Shenbao Technology Center Co., Ltd., of which, Shenzhen Shenbao
expected revenue and the
Technology Center Co., Ltd. take part in purchasing office and lab place with raised fund of 34.55 million at most. Currently, office
reason(In specific project)
purchased was completed, and rests of the office decoration and equipment installation still in process, and expect to complete on 31
December 2014.
2. Comprehensive Investment Project of Tea Industry Chain and project of Developing High-end Brand Classical Tea were both in the
investment period, which didn’t meet the expected income.
1. Comprehensive Project with Annual Capacity of 300 Tons Catechin: by virtue of technical innovation, the Company made
comprehensive enhancements in the original production crafts for instant tea powder, pursuant to which, the production line for instant
tea powder was equipped with the function of producing catechin and natural plant products. Therefore, the Company was able to
develop and produce catechin and natural plant products for sales, satisfying demands from its existing and new customers. As
compared to the original plan on implementing the Comprehensive Project with Annual Capacity of 300 Tons Catechin, the Company
can be better served with such innovated technologies to make comprehensive use of the production line of instant tea powder, with
fewer equipments allocation, more efficient benefits, reduction of fixed assets allocation and amortization, so as to improve the
Explanation on great changes integrated profitability of the Company. In order to effectively prevent from investment risks and protect the interests of the Company
of feasibility of project and its shareholders, the Company, with careful and prudent consideration, decided to cancel the Comprehensive Project with Annual
Capacity of 300 Tons Catechin and thereby to change the proceeds application purposes.
2. Expansion Project of Condiment Production Line: despite that the prospectus of condiment market was positive; the furious market
competition can’t be ignored. In case that the Company wanted to make significant breakthrough in the furious market competition
based on the prevailing operation condition of condiment, the Company was required to allocate material human, assets and property
resources. In 2011, the Company experienced significant drop in income from its condiment operation, recording relatively material
losses. Considering that it had no advantage in condiment operation, the Company would face relatively significant market risks and
uncertainty if the original resources allocation couldn’t meet the expected target. By virtue of the non-public offering, the Company
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
determined its development direction for tea industry, namely Natural, Green and Healthy, in 2011. According to the development
strategy, the Company would focus on expanding tea industry. Therefore, the Company cancelled the Expansion Project of Condiment
Production Line, and applied the proceeds for such project to investment in the Project of R&D Center for Tea and Natural Plants.
At the 2011 Annual General Meeting held on 27 April 2012, the Company considered and approved the Proposal on Change of Part
Proceeds Application Purposes, approving the changes and adjustments involved in the above projects.
Amount, usage and progress
of using for fund raising out Not applicable
of the plan
Applicable
Change of implementation Occurred in previous years
place of investment project of The Company changed the implementation place of Project of R&D Center for Tea and Natural Plants from Wuyuan county Jiangxi
raised capitals province to Shenzhen Guangdong province. Those changes were considered and approved in the 2011 Annual General Meeting of the
Company held on 27 April 2012.
Adjustment to
implementation method of
Not applicable
investment project with
proceeds
Initial input and replacement
of investment project with Not applicable
proceeds
Applicable
Temporary supplement of On 15 May 2013, the “Proposal of Using Part of Idle Fund Raised for Supplement Current Capital Temporary Again” was deliberated
current capital with idle
proceeds and approved in Annual General Meeting of 2012 with part of the fund raised RMB 110 million to supplement current capital of the
Company for 12 months at most. The above fund raised will been return On 12 May 2014.
Balance of fund raised in way
of implementation and Not applicable
reasons
Purposes and application of Saved in the special account for proceeds.
unutilized proceeds
18
深圳市深宝实业股份有限公司 2014 年半年度报告全文
The related information concerning proceeds disclosed by the Company is in-time, true, accurate and complete; no illegal issue has
Problems found during the
application and disclosure of been found in place, use, management and disclosure of proceeds. The Company has never made financing for over 2 times, not even
proceeds or other issues the application of proceeds in those years.
(3)The changed project of raised proceeds
In ten thousand Yuan
Accumulation Whether the
Corresponding Progress of the Whether it has
Predicted
Total amount Virtual amount virtual amount investment feasibility of
Project after the original serviceable Income come up to the
invested after input in the input deadline deadline the end the project
condition date
change committed of the reporting achieved in the scheduled
adjustment (1) reporting the end of the of project changed after
project (%)(3)=(2)/(1) reporting income
reporting (2) the alteration
Comprehensive
Project with
Investment
Annual
development
Capacity of 300
project for 15,500 2,363.64 11,218.88 72.38% 2016-4-30 No No
Tons Catechin
high-end brand
/Chain Project
classical tea
of Classical Tea
Leaves
Jointly Comprehensive 3,000 3,000.42 100.00% 2012-12-31 Yes No
19
深圳市深宝实业股份有限公司 2014 年半年度报告全文
incorporation Project with
of Zhejiang Annual
Shenbao Huafa Capacity of 300
Tea Co., Ltd. Tons Catechin
Project of R&D
Center for Tea
and Natural
Project of R&D
Plants /
Center for Tea
Expansion 5,229.17 383.24 5,205.57 99.55% 2014-12-31 No No
and Natural
Project of
Plants
Condiment
Production
Line
Total -- 23,729.17 2,746.88 19,424.87 -- -- 0 -- --
1. Cancel the “Comprehensive Project with Annual Capacity of 300 Tons Catechin”: by virtue of technical
innovation, the Company made comprehensive enhancements in the original production crafts for instant tea
powder, pursuant to which, the production line for instant tea powder was equipped with the function of producing
Changing reason, decision procedure and
catechin and natural plant products. Therefore, the Company was able to develop and produce catechin and natural
statement of disclosure(In specific project) plant products for sales, satisfying demands from its existing and new customers. As compared to the original plan
on implementing the Comprehensive Project with Annual Capacity of 300 Tons Catechin, the Company can be
better served with such innovated technologies to make comprehensive use of the production line of instant tea
20
深圳市深宝实业股份有限公司 2014 年半年度报告全文
powder, with fewer equipments allocation, more efficient benefits, reduction of fixed assets allocation and
amortization, so as to improve the integrated profitability of the Company. In order to effectively prevent from
investment risks and protect the interests of the Company and its shareholders, the Company, with careful and
prudent consideration, decided to cancel the Comprehensive Project with Annual Capacity of 300 Tons Catechin.
The proceeds for such project were invested in investment development project for high-end brand classical tea and
jointly incorporation of Zhejiang Shenbao Huafa Tea Co., Ltd. and original selected tea chain project was included
in the high-end brand classical tea investment.
2. Cancel the “Expansion Project of Condiment Production Line”: despite that the prospectus of condiment market
was positive; the furious market competition can’t be ignored. In case that the Company wanted to make significant
breakthrough in the furious market competition based on the prevailing operation condition of condiment, the
Company was required to allocate material human, assets and property resources. In 2011, the Company
experienced significant drop in income from its condiment operation, recording relatively material losses.
Considering that it had no advantage in condiment operation, the Company would face relatively significant market
risks and uncertainty if the original resources allocation couldn’t meet the expected target. The Company
determined its development direction for tea industry, namely Natural, Green and Healthy. According to the
development strategy, the Company would focus on expanding tea industry. Therefore, the Company cancelled the
Expansion Project of Condiment Production Line, and applied the proceeds for such project to investment in the
Project of R&D Center for Tea and Natural Plants.
3. Changes of “tea and natural plant R&D center "project location and implementation main body: there are many
advantages of the initial location of the project, which is in Wuyuan county, Jiangxi Province, owns many
advantages in tea industry resources and cost. However, the initial location of the project is weak in talent
gathering, information exchange, resource sharing and integration, and customer service market. Therefore, the
initial location in Wuyuan county Jiangxi Province was moved to Shenzhen city, Guangdong province. The
implementation main body was turned from Wuyuan Jufangyong into Shenzhen Shenbao Technology Center Co.,
Ltd., wholly owned subsidiary of the Company. The Company also increased its investment to RMB 54 million
after counting the fixed assets investment of the project and high labor cost in the new implementation.
21
深圳市深宝实业股份有限公司 2014 年半年度报告全文
The modification of raise investment project was deliberated and approved in the 20th Meeting of 7th session of the
Board on 5 April 2012 and annual shareholders’ general meeting of 2011 on 27 April 2012. For details, please refer
to the related announcement disclosed at Securities Times, China Securities, Hong Kong Commercial Daily and
www.cninfo.com.cn on 6 April 2012 and 28 April 2012.
1. Reasons fail to achieve the design schedule of R&D Center for Tea and Natural Plants project: in April 2014, the
Company decided to increase the investment capital to 54 million Yuan for Project of R&D Center for Tea and
Natural Plants, including 34.55 million Yuan used for purchasing office and lab in Shenzhen. Suffered by the
fluctuation of real estate price in the market, project sites still in the air and project unable to achieve the schedule.
On 31 May 2013, the Proposal of Purchasing Office from Shareholder of the Company was deliberated and
Not meet the scheduled progress or projected
approved in 2nd extraordinary general meeting of 2013, agreed to purchase office place in Shenzhen under the help
benefits, and reasons for that (based on specific of the Company and subsidiary Shenzhen Shenbao Technology Center Co., Ltd., of which, Shenzhen Shenbao
project) Technology Center Co., Ltd. take part in purchasing office and lab place with raised fund of 34.55 million at most.
Currently, office purchased was completed, and rests of the office decoration and equipment installation still in
process, and expect to complete on 31 December 2014.
2. Comprehensive investment project of tea industry chain and project of developing high-end brand classical tea
are in a production period without expected earnings obtained.
Explanation on significant changes in feasibility
Not applicable
of projects
(4) Project of raised proceeds
Project of raised proceeds and summary Disclosure date Disclosure index
”Special Report of Raised Proceeds Deposit and
Utilization for Semi-Annual of 2014 of Shenzhen 2014-8-19 Juchao Website（www.cninfo.com.cn）
Shenbao Industrial Co., Ltd.”
22
深圳市深宝实业股份有限公司 2014 年半年度报告全文
3. Main subsidiaries and stock-jointly companies
Particular about main subsidiaries and stock-jointly companies
In RMB
Company Main products or Operating Operating
Type Industries Register capital Total assets Net Assets Net profit
name service revenue profit
Shenbao Instant tea powder
Subsidiary Manufacture 153,451,300.00 218,652,205.16 161,775,305.07 54,436,482.23 -6,318,542.73 -5,281,605.09
Huacheng and tea extraction
Hangzhou
Ju Fang Subsidiary Comprehensive Tea products 175,000,000.00 206,418,621.85 170,188,766.71 9,088,000.77 -9,626,041.63 -8,158,110.35
Yong
23
深圳市深宝实业股份有限公司 2014 年半年度报告全文
VI. Prediction of business performance from January – September 2014
Estimation on accumulative net profit from the beginning of the year to the end of next report
period to be loss probably or the warning of its material change compared with the corresponding
period of the last year and explanation on reason
□ Applicable √ Not applicable
VII. Implementation of profit distribution in reporting period
Implementation or adjustment of profit distribution plan in reporting period, cash dividend plan and
shares converted from capital reserve in particular
√ Applicable □ Not applicable
On 9 April 2014, the Company held the 2013 annual general meeting, examined and approved the
2012 annual profit distribution and capitalization of capital reserves plan , and the 2013 equity
allocation scheme of the Company is : The Company capitalizing of public reserves as two to every
ten shares based on total 250,900,154 shares capital of the Company dated 31 December 2013. As
of 16 May 2014, the above profit distribution plans had been completed.
Total share capital of the Company was 250,900,154 shares before equity distribution implemented
while shares increased to 301,080,184 shares after implementation
Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement
Y
of Article of Association (Y/N):
Well-defined and clearly dividend standards and
Y
proportion (Y/N):
Completed relevant decision-making process and
Y
mechanism (Y/N):
Independent directors perform duties completely and
Y
play a proper role (Y/N):
Minority shareholders have opportunity to express
opinions and demands totally and their legal rights are Y
fully protected (Y/N):
Condition and procedures are compliance and
transparent while the cash bonus policy adjusted or Y
changed (Y/N):
VIII. In the report period, reception of research, communication and interview
Contents discussed and material
Time Place Way Type Reception
provided
2014-1-6 Company Telephone Personal Shareholder Inquiry of the operation of the
24
深圳市深宝实业股份有限公司 2014 年半年度报告全文
communication Company
Telephone
2014-1-7 Company Personal Shareholder Inquiry of the main business
communication
Reply to the
Interaction Question Inquiry of the operation of the
2014-1-9 Company Personal Shareholder
in Shenzhen Stock Company
Exchange
Telephone To hope to visit the Company in
2014-1-21 Company Personal Shareholder
communication the field
To know the tea industry status and
Telephone
2014-1-23 Company Personal Shareholder future strategy plan of the
communication
Company
Telephone Inquiry of the development of the
2014-1-28 Company Personal Shareholder
communication Company main business
Reply to the
Interaction Question To know the development of the
2014-3-6 Company Personal Shareholder
in Shenzhen Stock Company’s business
Exchange
To know the development status of
Telephone
2014-3-12 Company Personal Shareholder tea industry and the operation of
communication
the Company.
To know the operation and the
Telephone
2014-3-13 Company Personal Shareholder main business of the Company and
communication
the sales of Jadeite Apartment
Telephone Inquiry of that whether the
2014-3-21 Company Personal Shareholder
communication Company to restructure
Telephone Inquiry of the registration of
2014-3-25 Company Personal Shareholder
communication B-share
Shenzhen
Huijin
Telephone To hope to visit the Company and
2014-3-26 Company Institution Investment
communication research
Management
Co., Ltd.
Consulting relevant information of
Telephone
2014-4-8 Company Personal Shareholder transfer of reserve to common
communication
shares
Reply to the
Interaction Question Inquiry of the development of the
2014-4-9 Company Personal Shareholder
in Shenzhen Stock Company
Exchange
25
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Consulting relevant information of
Telephone
2014-4-10 Company Personal Shareholder transfer of reserve to common
communication
shares
Reply to the
Interaction Question Inquiry of the development of the
2014-4-16 Company Personal Shareholder
in Shenzhen Stock Company
Exchange
Reply to the
Interaction Question Inquiry of that whether the
2014-4-19 Company Personal Shareholder
in Shenzhen Stock Company to transform
Exchange
Reply to the
Interaction Question To suggest the Company return to
2014-4-25 Company Personal Shareholder
in Shenzhen Stock shareholders in kind
Exchange
Telephone Inquiry of the operation of the
2014-4-29 Company Personal Shareholder
communication Company and make suggestions
Telephone Inquiry of the operation of the
2014-5-15 Company Personal Shareholder
communication Company
Inquiry of the operation of the
Telephone
2014-5-16 Company Personal Shareholder Company and the development of
communication
the main business
Reply to the
Interaction Question Inquiry of the development of the
2014-5-23 Company Personal Shareholder
in Shenzhen Stock Company
Exchange
To know the development status of
Telephone
2014-5-28 Company Personal Shareholder tea industry and the operation of
communication
the Company.
Reply to the
Interaction Question Inquiry of that whether the
2014-6-4 Company Personal Shareholder
in Shenzhen Stock Company to restructure
Exchange
Telephone Inquiry of the operation of the
2014-6-12 Company Personal Shareholder
communication Company’s business
Telephone Inquiry of the development of the
2014-6-12 Company Personal Shareholder
communication Company main business
Reply to the
Inquiry of the Company’s
Interaction Question
2014-6-13 Company Personal Shareholder performance, development
in Shenzhen Stock
direction and investors
Exchange Stock
26
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Exchange
Reply to the
Interaction Question To suggest the development
2014-6-13 Company Personal Shareholder
in Shenzhen Stock direction of the Company
Exchange
Reply to the
Interaction Question Inquiry of that whether the
2014-6-13 Company Personal Shareholder
in Shenzhen Stock Company to restructure
Exchange
Reply to the
Interaction Question Inquiry of the development
2014-6-21 Company Personal Shareholder
in Shenzhen Stock direction of the Company
Exchange
Telephone Inquiry of the operation of the
2014-6-23 Company Personal Shareholder
communication Company
Reply to the
Interaction Question Inquiry of the investment of the
2014-6-23 Company Personal Shareholder
in Shenzhen Stock Company
Exchange
Reply to the
Interaction Question To know the products of the
2014-6-23 Company Personal Shareholder
in Shenzhen Stock Company.
Exchange
Reply to the
Interaction Question To suggest the Company product
2014-6-25 Company Personal Shareholder
in Shenzhen Stock diversification
Exchange
Reply to the
Interaction Question Inquiry of the purchase way of
2014-6-26 Company Personal Shareholder
in Shenzhen Stock Jufangyong products
Exchange
Reply to the
Interaction Question Inquiry of the development of the
2014-6-30 Company Personal Shareholder
in Shenzhen Stock Company
Exchange
No undisclosed material information is reveal, disclose or leak to reception object.
27
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Section V. Important Events
I. Corporate governance
The actual condition of the corporate governance shows no difference with the Company Law and relevant requirement from CSRC.
II. Significant lawsuits and arbitrations of the Company
√Applicable □Not applicable
Amount
Accrual
involved Trial results and
liability Progress of Enforcement of Date for
General information of lawsuits(arbitration) (10 influence from Index for disclosure
formedlawsuits(arbitration) the judgment disclosure
thousand lawsuits(arbitration)
(Yes/No)
Yuan)
The case concerning the joint-liability guarantee the At end of the On 5 November In 2013, RMB9, The aforesaid
Company provided for RMB 7 million loans which CBC had
obtained from Shenzhen Branch of China Construction Bank December 2013, 2013, the “Civil 894,717.14 events can be found
(“Construction Bank” for short) has been closed with the Company Ruling Paper” compensation in “Annual Report
reconciliation. The Agreement of Interest Reduction was received the and 258,011
(2012) Shen of 2003” dated 10
signed between the Company and Construction Bank in
2003, the RMB 7 million have been paid by the Company creditor’s right Zhong Fa Po Zi shares “*ST April
for Shenzhen Zhonghua in two phases and accomplished the paid by Zhonghua A”
No. 30-6 from 2004;”Semi-Annual
jointly liability; Concerning the jointly-liability of the administrator of (000017) are
Company for Letter of Credit Opening for Shenzhen Shenzhen Report of 2004”
CBC transferred to
Zhonghua in Shenzhen Branch of Bank of China with USD No 2004-4-10
9,894,717.14 Intermediate the name of the dated 6 August
0.8 million, being verdict by Civil Ruling of (1999) YFJYZZ
No. 26 from Guangdong Higher People’s Court, the Yuan and 258,011 Peoples Court Company; In 2004; Notice of the
Company takes the jointly-liability for payment. Till end of shares of *ST ruled the approval April 2014, the Company published
30 June 2004, the RMB 6.6316 million (USD 0.8 million by
converted) have been paid by the Company for Shenzhen Zhonghua of reorganization Company on Juchao Website
Zhonghua and accomplished the jointly liability; later on 22 A(000017); the received totally
plan for CBC and dated 30 July 2004,
July 2004, the Company applied to Shenzhen Intermediate 197,019 share of 253,558.88
People’s Court (“Shenzhen Intermediate” for short) for the terminated the 20 November 2004,
*ST Zhonghua B Yuan cash
enforcement on the above repayment. Shenzhen
(200017) with CBC realized from 16 December 2004,
Intermediate People’s Court verdict that the RMB 7 million
28
深圳市深宝实业股份有限公司 2014 年半年度报告全文
repaid by the Company for Shenzhen Zhonghua should be realize by CBC reorganization 197,019 share 29 December 2004,
paid to the Company together with interest during capital
administrator in procedures. In of Zhonghua –B 18 January 2005, 7
occupation, (2004) SZFMECZ No. 448. Due to the failure
implementation for the verdict on time and certain content 20 trading days line with the (200017) paid August 2013 and 2
from Shenzhen Zhonghua, the Company applied for after stock of by CBC
reorganization January 2014
enforcement to Shenzhen Intermediate People’s Court on 20 CBC resumed. In administrator.
December 2004. The Civil Ruling and Execution Order of plan, creditor’s respectively
(2004) SZFZZ No. 1382 and (2005) SZFZZ No. 208 were April 2014, the
Company right of ordinary
delivered to Shenzhen Zhonghua on 14 January 2005 from
Shenzhen Intermediate People’s Court with verdict that: seal received totally creditor was
up and freeze the property of Shenzhen Zhonghua (limited
253,558.88 Yuan compensated
as RMB 14,131,575.92) and order Shenzhen Zhonghua
performed the effective-ness law documents and relevant cash realized from through monetary
obligations within five days since the execution order 197,019 share of and shares.
received. Un-performed undue, the enforcement will Zhonghua –B
exercise by Shenzhen Intermediate People’s Court. Later, the
abovementioned two executions was appointed by the Court (200017) paid by
of Guangzhou Railway Transportation by Guangdong CBC
Higher People’s Court, and the case abortion due to no administrator. The
property clue been found. On 12 October 2012, Shenzhen
case has come to
Intermediate People’s Court accepted the bankruptcy
reorganization of the CBC, the Company to submit claims of an end so far.
RMB 24,061,322.14 to its administrator. On 17 July 2013,
Shenzhen Intermediate Peoples Court Issued a “Civil Ruling
Paper” Shen Zhong Fa Po Zi No. 30-4 for confirmed the
“Debt statement of Shenzhen China Bicycle Company
(Holdings) Limited” prepared by CBC. According to the
debt statement, creditor’s right was recognized as RMB
20,972,491.51.
III. Transaction in assets
1. Sales of assets
The other Trading Net profit Impact on Ratio of Related The related Assets Credit
Assets Sales Pricing Date of Index of
party of price (in contributed the net profit transaction relationship(applicable rights and
sold date principal disclosure disclosure
transaction 10 to the Company contributed or not for related transaction) concerned liability
29
深圳市深宝实业股份有限公司 2014 年半年度报告全文
or final thousand listed (Note 3) by the sold transferred concerned
controller Yuan) Company assets for ownership shifted
from the listed fully or fully or
begin of company not not
the in total
reporting profit
to the sales
date(in 10
thousand
Yuan)
The
Announcement
of Plans to
Transfer
51.72% Equity
of Zhejiang
Shenshenbao
Investment Huafa Tea Co.,
51.72%
income Evaluation Ltd.,
equity
Zhejiang confirmed price Announcement
of Shen 2014-2-20 3,450 0 12.20% No Not applicable Yes Yes 2014-1-28
Huafa in current at of Progress of
Shenbao
was RMB most 51.72% Equity
Huafa
2,853,500 of Zhejiang
Shenshenbao
Huafa Tea Co.,
Ltd, and
Announcement
of Progress of
51.72% Equity
of Zhejiang
30
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Shenshenbao
Huafa Tea Co.,
Ltd released
on Juchao
Website dated
28 January
2014, 25
February and
25 April
IV. Significant contracts and its implementation
1. Guarantees
In ten thousand Yuan
Guarantee for the subsidiaries (not including guarantees to subsidiaries)
Related Actual date of Complete Guarantee for
Name of the Company Guarantee Actual Guarantee
Announcement happening (Date of Guarantee type implementation related party
guaranteed limit guarantee limit term
disclosure date signing agreement) (Yes/No) (Yes/No)
Guarantee for the subsidiaries
Related Actual date of Complete Guarantee for
Name of the Company Guarantee Actual Guarantee
Announcement happening (Date of Guarantee type implementation related
guaranteed limit guarantee limit term
disclosure date signing agreement) (Yes/No) party(Yes/No)
Shenzhen Shenbao
Sanjing Food & Joint liability
3,000 2014-04-14 3,000 1year No Yes
Beverage Development assurance
Co., Ltd
Shenzhen Shenbao
Joint liability
Huacheng Science and 3,000 2014-04-14 3,000 1year No Yes
assurance
Technology Co.,Ltd
Total amount of approving guarantee for 6,000 Total amount of actual occurred 6,000
31
深圳市深宝实业股份有限公司 2014 年半年度报告全文
subsidiaries in report period (B1) guarantee for subsidiaries in
report period (B2)
Total amount of approved guarantee for Total balance of actual guarantee
subsidiaries at the end of reporting period 6,000 for subsidiaries at the end of 6,000
(B3) reporting period (B4)
Total amount of guarantee of the Company( total of two abovementioned guarantee)
Total amount of actual occurred
Total amount of approving guarantee in report
6,000 guarantee in report period 6,000
period (A1+B1)
(A2+B2)
Total balance of actual guarantee
Total amount of approved guarantee at the end
6,000 at the end of report period 6,000
of report period (A3+B3)
(A4+B4)
The proportion of the total amount of actually guarantee in the net assets of the
6.42%
Company(that is A4+ B4)
Including:
V. Explanation on Other Important Matters
The Proposal of Plans to Transfer 51.72% Equity of Zhejiang Shenshenbao Huafa Tea Co., Ltd. was deliberated and approved in 9th meeting of 8th session of the
Board on 27 January 2014, agreed to transfer the 51.72% equity of controlling subsidiary Shenshenbao Huafa, held by the Company, to second largest shareholder of
Shenshenbao Huafa—Zhejiang Huafa with price of 34.50 million Yuan. The deals did not constitute a related transaction, and did not belongs to the material
recapitalize regulated in Management Method of Material Capitalize for Listed Company.
The Company changed the registration of industry & commerce after initial amount of equity transfer received, after changed, Zhejiang Huafa holds 100% equity of
Shenshenbao Huafa, the Company holds no shares of Shenshenbao Huafa any more. The Company has received total equity transfer amount paid by Zhejiang Huafa
in the Period. Equity transfer was completed so far. Found more details in relevant announcement released on Juchao Website (www.cninfo.com.cn) dated 28
January 2014, 25 Feburary and 25 April.
32
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Section VI. Changes in Shares and Particulars about
Shareholders
I. Changes in Shares
In share
Before the Change Increase/Decrease in the Change (+, -) After the Change
B
New
on
share Capitalizatio Ot
Proportio us Proportio
Amount s n of public he Subtotal Amount
n sh n
issue reserve rs
ar
d
es
I. Restricted shares 22,036,661 8.78% 4,407,332 4,407,332 26,443,993 8.78%
1. State-owned
6,783,729 2.70% 1,356,746 1,356,746 8,140,475 2.70%
corporate shares
2. Other domestic
15,252,932 6.08% 3,050,586 3,050,586 18,303,518 6.08%
shares
Including: Domestic
7,770,118 3.10% 1,554,023 1,554,023 9,324,141 3.10%
legal person’s shares
Domestic nature
7,482,814 2.98% 1,496,563 1,496,563 8,979,377 2.98%
person’s shares
II. Un-restricted
228,863,493 91.22% 45,772,698 45,772,698 274,636,191 91.22%
shares
1. RMB common
202,727,493 80.80% 40,545,498 40,545,498 243,272,991 80.80%
shares
2. Domestically listed
26,136,000 10.42% 5,227,200 5,227,200 31,363,200 10.42%
foreign shares
III. Total shares 250,900,154 100.00% 50,180,030 50,180,030 301,080,184 100.00%
Reasons for share changed
√Applicable □Not applicable
In May 2014, the Company carried out the equity distribution plan for year of 2013, based on total
share capital 250,900,154 as at end of 2013, capitalizing 2 shares for each 10 shares to whole
shareholders from capital reserves, 50,180,130 shares increased in total. Found more details in
Notice of the Company released on Juchao Website dated 7 May 2014.
Approval of share changed
√Applicable □Not applicable
The interest distribution plan for year of 2013 was deliberated and approved by 10th meeting of 8th
session of the Board dated 14 March 2014 and Annual General Meeting 2013 held on 9 April 2014.
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share
attributable to common shareholders of Company in latest year and period
33
深圳市深宝实业股份有限公司 2014 年半年度报告全文
√Applicable □Not applicable
During the reporting period, after implementation of interest distribution for year of 2013, diluted
base on the new share capital 301,080,184 shares, the basic EPS for year of 2013 and semi-annual
of 2014 was 0.145 Yuan/Share and -0.0777 Yuan/Share respectively; net asset per share amounting
as 3.19 Yuan/Share and 3.10 Yuan/Share respectively.
Explanation on changes in aspect of total shares, shareholders structures as well as structure of
assets and liability of the Company
√Applicable □Not applicable
Total shares of the Company increased to 301,080,184 shares from 250,900,154 shares after interest
distribution plan for year of 2013 carried out in the Period
II. Amount of shareholders of the Company and particulars about shares holding
In share
Total preference
shareholders with voting
Total common shareholders
19,333 rights recovered at end of 0
at period-end
reporting period (if
applicable) (see Note 8)
Particulars about shares held above 5% by shareholders or top 10 shareholding
Number of share
Total
Proport pledged/frozen
Nature of shareholders Changes in Amount of Amount of
Full name of ion of
shareholde at the end report restrict un-restrict State
Shareholders shares
r of Amount
held of report period shares held shares held
period share
Shenzhen
Agricultural Other 19.09% 57,474,117 9,579,020 9,324,141 48,149,976
Products Co., Ltd
Shenzhen State-own
Investment ed legal 16.00% 48,172,304 8,028,718 8,140,475 40,031,829
Holding Co., Ltd person
Shenzhen
Tianzhong Pledg
Other 6.38% 19,216,690 3,202,782 0 19,216,690 10,000,000
Investment Co., e
Ltd.
34
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Special account of
agreement
Other 3.58% 10,764,000 1,794,000 0 10,764,000
buy-back of Huatai
Securities Co., Ltd.
Domestic
Li Duruo nature 3.50% 10,549,049 1,758,175 0 10,549,049
person
Foreign
KGI ASIA
corporatio 1.10% 3,312,842 3,263,259 0 3,312,842
LIMITED
n
Domestic
Lin Yixiang nature Pledg
1.02% 3,073,203 512,201 3,073,203 0 3,073,200
e
person
Domestic
Xian Zhenzhong nature Pledg
0.85% 2,561,900 426,983 2,561,900 0 2,561,900
e
person
Domestic
Cao Lijun nature Pledg
0.80% 2,415,310 402,552 2,415,310 0 2,415,309
e
person
SUN HUNG KAI
INVESTMENT Foreign
SERVICES corporatio 0.64% 1,923,312 1,873,312 0 1,923,312
LTD-CUSTOMER n
S A/C
Strategy investors or general
corporate becomes top 10
shareholders due to rights N/A
issued (if applicable)(see Note
3)
Shenzhen SASAC directly holds 24.76245% equity interests of Agricultural
Products, indirectly holds 5.23754% equity interests of Agricultural Products and
Explanation on associated
directly holds 100％equity interests of Shenzhen Investment Holding. Except for
relationship among the
this, the Company was not aware of any related relationship between other
aforesaid shareholders
shareholders above, and whether they belonged to parties acting in concert as
defined by the Acquisition Management Method of Listed Company.
Particular about top ten shareholders with un-restrict shares held
Amount of listed shares held at end of Type of shares
Shareholders
the Period Type Amount
Shenzhen Agricultural Products RMB common
48,149,976 48,149,976
shares
35
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Co., Ltd
Shenzhen Investment Holding Co., RMB common
40,031,829 40,031,829
Ltd shares
Shenzhen Tianzhong Investment RMB common
19,216,690 19,216,690
Co., Ltd. shares
Special account of agreement
RMB common
buy-back of Huatai Securities Co., 10,764,000 10,764,000
shares
Ltd.
Li Duruo RMB common
10,549,049 10,549,049
shares
Domestically
KGI ASIA LIMITED 3,312,842 listed foreign 3,312,842
shares
SUN HUNG KAI INVESTMENT Domestically
SERVICES LTD-CUSTOMERS 1,923,312 listed foreign 1,923,312
A/C shares
Special account of agreement
RMB common
buy-back of Founder Securities Co., 1,799,545 1,799,545
shares
Ltd.
Xi’an Changliu Investment RMB common
1,400,834 1,400,834
Management Limited Partnership shares
Domestically
China Merchants Securities (HK)
1,310,821 listed foreign 1,310,821
Co.,Ltd.
shares
Shenzhen SASAC directly holds 24.76245% equity interests of Agricultural
Expiation on associated relationship
Products, indirectly holds 5.23754% equity interests of Agricultural Products
or consistent actors within the top
and directly holds 100％equity interests of Shenzhen Investment Holding.
10 un-restrict shareholders and
Except for this, the Company was not aware of any related relationship
between top 10 un-restrict
between other shareholders above, and whether they belonged to parties
shareholders and top 10
acting in concert as defined by the Acquisition Management Method of Listed
shareholders
Company.
In early of the reporting period, shareholder of the Company Tianzhong
Investment holds 16,013,908 shares through the guarantee securities account
of client credit trading under the name of Huatai Securities Co., Ltd. and in
Explanation on top 10 shareholders
May of 2014, after interest distribution for year of 2013 completed, shares
involving margin business (if
hold by Tianzhong Investment increased to 19,216,690 shares from
applicable) (see note 4)
16,013,908 shares. On 24 June 2014, Tianzhong Investment stop the above
mentioned securities margin trading, and transfer back total 19,216,690 shares
(takes 6.38% of the total shares of the Company) to its stock account.
Agreed to buy back deals occurred in Period from shareholders
√ Yes □No
36
深圳市深宝实业股份有限公司 2014 年半年度报告全文
On 27 May 2013, Tianzhong Investment, shareholder of the Company with 8,970,000 shares of the Company held,
exercise securities trading of buy-back agreement with Huatai Securities Co., Ltd.; On 27 November 2013, delay
buy-back procedures was performed by Tianzhong Investment; in May of 2014, after interest distribution for year
of 2013 completed, shares hold by Tianzhong Investment increased to 10,764,000 shares from 8,970,000 shares;
Tianzhong Investment buy-back the above mentioned total shares by agreement on 29 May 2014.
On 4 June 2014, Tianzhong Investment, with 10,764,000 shares of the Company held, exercise securities trading
of buy-back agreement with Huatai Securities Co., Ltd. once again, the initial trading volume was 10,764,000
shares in buy-back agreement, representing 3.58 percent of the total share capital of the Company. As of reporting
period, no shares with buy-back trading involved in Tianzhong Investment, 19,216,690 shares of the Company
were held by Tianzhong Investment, representing 6.38 percent of the total share capital of the Company.
In 2013, Wang Chengping, shareholder of the Company, with 1,619,482 shares of the Company held, exercise
securities trading of buy-back agreement with Founder Securities Co., Ltd. In reporting period, Founder Securties
Co., Ltd. agreed to buy-back the share of the Company in special account, and shares tuns to 1,799,545 shares. As
of reporting period, 397,540 shares of the Company were held by Wang Chengping, representing 0.13 percent of
the total share capital of the Company.
III. Changes of controlling shareholders or actual controller
Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
Changes of controlling shareholders had no change in reporting period.
Changes of actual controller in reporting period
□ Applicable √ Not applicable
Changes of actual controller in reporting period had no change in reporting period.
37
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Section VII. Directors, Supervisors and Senior
Executives
I. Changes of shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
Shares held by directors, supervisors and senior executives have no changes in reporting period,
found more details in Annual Report 2013.
II. Resignation and dismissal of directors, supervisors and senior executives
□ Applicable √ Not applicable
Resignation and dismissal of directors, supervisors and senior executives have no changes in
reporting period, found more details in Annual Report 2013.
38
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Section VIII. Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was unaudited
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by Shenzhen Shenbao Industrial Co., Ltd
In RMB
Items Balance at period-end Balance at period-begin
Current assets:
Monetary funds 342,390,986.57 258,228,942.05
Transaction finance asset 1,532,585.34 1,389,288.09
Accounts receivable 54,066,545.98 106,664,101.14
Accounts paid in advance 11,710,814.98 19,617,679.28
Other receivables 23,285,186.70 22,503,883.61
Inventories 350,124,924.06 305,574,845.40
Other current assets 6,354,131.39 2,835,640.51
Total current assets 789,465,175.02 716,814,380.08
Non-current assets:
Long-term equity investment 57,500.00 57,500.00
Fixed assets 296,498,639.53 308,220,725.48
Construction in progress 103,955,433.33 93,769,195.13
Productive biological asset 436,156.00 436,156.00
Intangible assets 196,076,226.08 205,740,916.53
Expense on Research and Development 2,208,877.81
Long-term expenses to be apportioned 10,918,817.58 8,969,680.56
Deferred income tax asset 2,729,367.88 2,630,033.64
Total non-current asset 612,881,018.21 619,824,207.34
Total assets 1,402,346,193.23 1,336,638,587.42
39
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Current liabilities:
Short-term loans 90,000,000.00
Accounts payable 29,391,098.49 33,460,808.35
Accounts received in advance 90,179,983.09 15,220,850.95
Wage payable 5,738,439.18 9,553,292.94
Taxes payable -4,407,138.30 15,006,102.34
Dividend payable 2,909,182.74 2,909,182.74
Other accounts payable 219,288,184.46 233,058,495.02
Total current liabilities 433,099,749.66 309,208,732.34
Non-current liabilities:
Deferred income tax liabilities 1,300,508.81
Other non-current liabilities 15,626,282.48 15,745,161.90
Total non-current liabilities 16,926,791.29 15,745,161.90
Total liabilities 450,026,540.95 324,953,894.24
Owner’s equity (or shareholders’ equity):
Paid-up capital (or share capital) 301,080,184.00 250,900,154.00
Capital public reserve 518,182,441.52 571,329,130.72
Surplus public reserve 45,001,147.33 45,001,147.33
Retained profit 69,904,510.51 93,286,637.50
Total owner’s equity attributable to parent
934,168,283.36 960,517,069.55
company
Minority interests 18,151,368.92 51,167,623.63
Total owner’s equity(or shareholders’
952,319,652.28 1,011,684,693.18
equity)
Total liabilities and owner’s equity(or
1,402,346,193.23 1,336,638,587.42
shareholders’ equity)
Legal person: Mr. Zheng Yuxi
Person in Charge of Accounting Works: Ms. Wang Zhiping
Person in Charge of Accounting Institution: Mr. Xu Qiming
2. Balance Sheet of parent company
Prepared by Shenzhen Shenbao Industrial Co., Ltd
In RMB
Item Balance at period-end Balance at period-begin
Current assets:
Monetary funds 135,742,209.47 105,859,108.94
Transaction finance asset 1,532,585.34 1,389,288.09
Accounts receivable 9,758,143.55 26,786,709.08
40
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Other receivables 262,457,382.09 195,025,202.17
Inventories 210,446,279.32 205,150,584.62
Other current assets 501,187.89
Total current assets 620,437,787.66 534,210,892.90
Non-current assets:
Long-term equity investment 879,110,475.04 859,110,475.04
Investment real estate 22,599,258.79 23,012,842.86
Fixed assets 3,029,213.69 3,272,893.01
Construction in progress 50,227,561.00 50,023,561.00
Productive biological asset 436,156.00 436,156.00
Intangible assets 8,061,323.99 8,272,752.63
Long-term expenses to be apportioned 149,390.67 280,888.31
Deferred income tax asset 1,524,490.61 1,425,156.37
Total non-current asset 965,137,869.79 945,834,725.22
Total assets 1,585,575,657.45 1,480,045,618.12
Current liabilities:
Short-term loans 60,000,000.00
Accounts payable 15,299,571.96 30,990,754.97
Accounts received in advance 88,348,955.55 12,581,452.00
Wage payable 1,893,314.90 5,093,244.06
Taxes payable -5,277,916.30 10,930,170.59
Dividend payable 2,909,182.74 2,909,182.74
Other accounts payable 355,736,453.86 342,300,775.21
Total current liabilities 518,909,562.71 404,805,579.57
Non-current liabilities:
Other non-current liabilities 49,920.00 49,920.00
Total non-current liabilities 49,920.00 49,920.00
Total liabilities 518,959,482.71 404,855,499.57
Owner’s equity (or shareholders’ equity):
Paid-up capital (or share capital) 301,080,184.00 250,900,154.00
Capital public reserve 532,980,276.19 583,160,306.19
Surplus public reserve 45,001,147.33 45,001,147.33
Retained profit 187,554,567.22 196,128,511.03
Total owner’s equity(or shareholders’
1,066,616,174.74 1,075,190,118.55
equity)
41
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Total liabilities and owner’s equity(or
1,585,575,657.45 1,480,045,618.12
shareholders’ equity)
Legal person: Mr. Zheng Yuxi
Person in Charge of Accounting Works: Ms. Wang Zhiping
Person in Charge of Accounting Institution: Mr. Xu Qiming
3. Consolidated Profit Statement
Prepared by Shenzhen Shenbao Industrial Co., Ltd
In RMB
Item Amount in this period Amount in last period
I. Total operating income 118,250,169.14 229,743,390.32
Including: Operating income 118,250,169.14 229,743,390.32
II. Total operating cost 147,437,528.99 237,304,301.08
Including: Operating cost 96,487,715.91 195,082,954.37
Operating tax and extras 363,563.74 784,078.71
Sales expenses 14,666,176.74 16,359,699.07
Administration expenses 36,953,716.61 25,189,742.50
Financial expenses -1,033,644.01 -112,173.57
Add: Changing income of fair value(Loss is listed
397,336.94
with “-”)
Investment income (Loss is listed with “-”) 2,853,055.86 6,688.65
III. Operating profit (Loss is listed with “-”) -25,936,967.05 -7,554,222.11
Add: Non-operating income 1,927,068.41 6,133,709.15
Less: Non-operating expense 36,018.31 3,410.56
Including: Disposal loss of non-current asset 36,018.31 3,410.56
IV. Total Profit (Loss is listed with “-”) -24,045,916.95 -1,423,923.52
Less: Income tax expense 517,581.33 3,052,026.68
V. Net profit (Net loss is listed with “-”) -24,563,498.28 -4,475,950.20
Net profit attributable to owner’s of parent company -23,382,126.99 -5,934,967.21
Minority shareholders’ gains and losses -1,181,371.29 1,459,017.01
VI. Earnings per share -- --
i. Basic earnings per share -0.0777 -0.0237
ii. Diluted earnings per share -0.0777 -0.0237
VII. Other consolidated income
VIII. Total comprehensive income -24,563,498.28 -4,475,950.20
Total consolidated income attributable to owners of
-23,382,126.99 -5,934,967.21
parent company
Total consolidated income attributable to minority -1,181,371.29 1,459,017.01
42
深圳市深宝实业股份有限公司 2014 年半年度报告全文
shareholders
Legal person: Mr. Zheng Yuxi
Person in Charge of Accounting Works: Ms. Wang Zhiping
Person in Charge of Accounting Institution: Mr. Xu Qiming
4. Profit Statement of parent company
Prepared by Shenzhen Shenbao Industrial Co., Ltd
In RMB
Item Amount in this period Amount in last period
I. Operating income 25,273,018.64 1,200,000.00
Less: operating cost 22,911,987.88 0.00
Operating tax and extras 67,200.00 67,200.00
Sales expenses 1,545,164.84
Administration expenses 14,548,779.25 8,858,839.39
Financial expenses -302,382.86 367,081.15
Add: Changing income of fair value(Loss is listed with “-”) 397,336.94
Investment income (Loss is listed with “-”) 4,452,349.39
Including: Investment income on affiliated company and
joint venture
II. Operating profit (Loss is listed with “-”) -8,648,044.14 -8,093,120.54
Add: Non-operating income 255,658.70
Less: Non-operating expense 17,101.29 3,410.56
Including: Disposal loss of non-current asset 17,101.29 3,410.56
III. Total Profit (Loss is listed with “-”) -8,665,145.43 -7,840,872.40
Less: Income tax expense -91,201.62
IV. Net profit (Net loss is listed with “-”) -8,573,943.81 -7,840,872.40
V. Earnings per share -- --
VI. Other consolidated income
VII. Total comprehensive income -8,573,943.81 -7,840,872.40
Legal person: Mr. Zheng Yuxi
Person in Charge of Accounting Works: Ms. Wang Zhiping
Person in Charge of Accounting Institution: Mr. Xu Qiming
5. Consolidated Cash Flow Statement
Prepared by Shenzhen Shenbao Industrial Co., Ltd
In RMB
Item Amount in this period Amount in last period
I. Cash flows arising from operating activities:
43
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Cash received from selling commodities and providing
239,403,085.70 238,998,648.55
labor services
Write-back of tax received 420,918.45 9,292,591.93
Other cash received concerning operating activities 3,895,502.65 49,400,632.04
Subtotal of cash inflow arising from operating activities 243,719,506.80 297,691,872.52
Cash paid for purchasing commodities and receiving
145,164,497.86 246,117,728.89
labor service
Cash paid to/for staff and workers 30,400,666.87 24,281,608.61
Taxes paid 23,354,919.05 10,886,464.02
Other cash paid concerning operating activities 28,013,302.48 28,253,650.84
Subtotal of cash outflow arising from operating activities 226,933,386.26 309,539,452.36
Net cash flows arising from operating activities 16,786,120.54 -11,847,579.84
II. Cash flows arising from investing activities:
Cash received from recovering investment 215,188.65
Cash received from investment income
Net cash received from disposal of fixed, intangible and
45,053.96
other long-term assets
Net cash received from disposal of subsidiaries and
18,039,785.00
other units
Other cash received concerning investing activities
Subtotal of cash inflow from investing activities 18,084,838.96 215,188.65
Cash paid for purchasing fixed, intangible and other
35,327,793.35 128,695,710.16
long-term assets
Cash paid for investment
Net increase of mortgaged loans
Net cash received from subsidiaries and other units 4,617,194.45
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 39,944,987.80 128,695,710.16
Net cash flows arising from investing activities -21,860,148.84 -128,480,521.51
III. Cash flows arising from financing activities
Cash received from absorbing investment
Including: Cash received from absorbing minority
shareholders’ investment by subsidiaries
Cash received from loans 90,000,000.00 160,000,000.00
Cash received from issuing bonds
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 90,000,000.00 160,000,000.00
Cash paid for settling debts 80,000,000.00
Cash paid for dividend and profit distributing or interest 879,812.76 1,525,749.99
44
深圳市深宝实业股份有限公司 2014 年半年度报告全文
paying
Including: Dividend and profit of minority shareholder
paid by subsidiaries
Other cash paid concerning financing activities 100,000.00
Subtotal of cash outflow from financing activities 879,812.76 81,625,749.99
Net cash flows arising from financing activities 89,120,187.24 78,374,250.01
IV. Influence on cash and cash equivalents due to
115,885.58 -1,356,574.53
fluctuation in exchange rate
V. Net increase of cash and cash equivalents 84,162,044.52 -63,310,425.87
Add: Balance of cash and cash equivalents at the period
257,728,942.05 372,922,024.47
-begin
VI. Balance of cash and cash equivalents at the period
341,890,986.57 309,611,598.60
-end
Legal person: Mr. Zheng Yuxi
Person in Charge of Accounting Works: Ms. Wang Zhiping
Person in Charge of Accounting Institution: Mr. Xu Qiming
6. Cash Flow Statement of parent company
Prepared by Shenzhen Shenbao Industrial Co., Ltd
In RMB
Item Amount in this period Amount in last period
I. Cash flows arising from operating activities:
Cash received from selling commodities and
121,815,398.16 1,200,000.00
providing labor services
Write-back of tax received
Other cash received concerning operating activities 973,152.27 43,471,525.75
Subtotal of cash inflow arising from operating
122,788,550.43 44,671,525.75
activities
Cash paid for purchasing commodities and receiving
47,436,209.14 21,341,175.13
labor service
Cash paid to/for staff and workers 10,313,026.71 7,764,120.82
Taxes paid 17,583,640.53 1,193,024.76
Other cash paid concerning operating activities 61,100,512.24 3,755,169.07
Subtotal of cash outflow arising from operating
136,433,388.62 34,053,489.78
activities
Net cash flows arising from operating activities -13,644,838.19 10,618,035.97
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
45,053.96
and other long-term assets
Net cash received from disposal of subsidiaries
34,450,000.00
and other units
45
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Other cash received concerning investing activities
Subtotal of cash inflow from investing activities 34,495,053.96
Cash paid for purchasing fixed, intangible and other
381,537.00 51,953,960.00
long-term assets
Cash paid for investment
Net cash received from subsidiaries and other units 50,000,000.00
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 50,381,537.00 51,953,960.00
Net cash flows arising from investing activities -15,886,483.04 -51,953,960.00
III. Cash flows arising from financing activities
Cash received from absorbing investment
Cash received from loans 60,000,000.00 105,000,000.00
Cash received from issuance of bonds
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 60,000,000.00 105,000,000.00
Cash paid for settling debts 50,000,000.00
Cash paid for dividend and profit distributing or
586,562.76 979,000.00
interest paying
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities 586,562.76 50,979,000.00
Net cash flows arising from financing activities 59,413,437.24 54,021,000.00
IV. Influence on cash and cash equivalents due to
984.52 -291,042.56
fluctuation in exchange rate
V. Net increase of cash and cash equivalents 29,883,100.53 12,394,033.41
Add: Balance of cash and cash equivalents at the
105,859,108.94 55,033,726.34
period -begin
VI. Balance of cash and cash equivalents at the period
135,742,209.47 67,427,759.75
-end
Legal person: Mr. Zheng Yuxi
Person in Charge of Accounting Works: Ms. Wang Zhiping
Person in Charge of Accounting Institution: Mr. Xu Qiming
46
深圳市深宝实业股份有限公司 2014 年半年度报告全文
7. Consolidated Statement on Changes of Owners' Equity
Prepared by Shenzhen Shenbao Industrial Co., Ltd
Amount in this period
In RMB
Amount in this period
Owners' equity attributable to the parent company
Item
Total owners’
Less: General Minority’s equity
Paid-up capital Reasonable Surplus equity
Capital reserves Treasury risk Retained profit Others
(Share capital) reserve reserves
Stock provision
I. Balance at the end of last year 250,900,154.00 571,329,130.72 45,001,147.33 93,286,637.50 51,167,623.63 1,011,684,693.18
Add: Changes of accounting policy
Error correction of the last period
Others
II. Balance at the beginning of this
250,900,154.00 571,329,130.72 45,001,147.33 93,286,637.50 51,167,623.63 1,011,684,693.18
year
III. Increase/ Decrease in this year
50,180,030.00 -53,146,689.20 -23,382,126.99 -33,016,254.71 -59,365,040.90
(Decrease is listed with'"-")
(i) Net profit -23,382,126.99 -1,181,371.29 -24,563,498.28
(ii) Other consolidated income
Subtotal of (i)and (ii) -23,382,126.99 -1,181,371.29 -24,563,498.28
(III) Owners' devoted and decreased
-2,966,659.20 -31,834,883.42 -34,801,542.62
capital
1. Owners' devoted capital 427,378.72 427,378.72
2. Amount calculated into owners'
equity paid in shares
3. Others -2,966,659.20 -32,262,262.14 -35,228,921.34
(IV)Profit distribution
1. Withdrawal of surplus reserves
47
深圳市深宝实业股份有限公司 2014 年半年度报告全文
2. Withdrawal of general risk
provisions
3. Distribution for owners
(shareholders)
4. Others
(V) Carrying forward internal
50,180,030.00 -50,180,030.00
owners' equity
1. Capital reserves conversed to
50,180,030.00 -50,180,030.00
capital (share capital)
2. Surplus reserves conversed to
capital (share capital)
3. Remedying loss with surplus
reserve
4. Others
(VI) Reasonable reserve
1. Withdrawal in this period
2. Usage in this period
(VII) Other
IV. Balance at the end of the report
301,080,184.00 518,182,441.52 45,001,147.33 69,904,510.51 18,151,368.92 952,319,652.28
period
Amount in last period
In RMB
Amount in last period
Owners' equity attributable to the parent company
Item Minority’s Total owners’
Less: General
Paid-up capital Reasonable Surplus equity equity
Capital reserves Treasury risk Retained profit Others
(Share capital) reserve reserves
Stock provision
I. Balance at the end of last year 250,900,154.00 568,510,912.82 40,071,736.73 104,733,870.63 41,953,986.34 1,006,170,660.52
Add: retroactive adjustment arising
from enterprise consolidation under
the same control
Add: Changes of accounting policy
Error correction of the last period
48
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Others
II. Balance at the beginning of this
250,900,154.00 568,510,912.82 40,071,736.73 104,733,870.63 41,953,986.34 1,006,170,660.52
year
III. Increase/ Decrease in this year
2,818,217.90 4,929,410.60 -11,447,233.13 9,213,637.29 5,514,032.66
(Decrease is listed with'"-")
(i) Net profit 43,662,208.27 1,552,021.29 45,214,229.56
(ii) Other consolidated income -140,166.10 -140,166.10
Subtotal of (i)and (ii) -140,166.10 43,662,208.27 1,552,021.29 45,074,063.46
(III) Owners' devoted and decreased
2,958,384.00 7,661,616.00 10,620,000.00
capital
1. Owners' devoted capital 4,900,000.00 4,900,000.00
2. Amount calculated into owners'
equity paid in shares
3. Others 2,958,384.00 2,761,616.00 5,720,000.00
(IV)Profit distribution 4,929,410.60 -55,109,441.40 -50,180,030.80
1. Withdrawal of surplus reserves 4,929,410.60 -4,929,410.60
2. Withdrawal of general risk
provisions
3. Distribution for owners
-50,180,030.80 -50,180,030.80
(shareholders)
4. Others
(V) 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. Others
(VI) Reasonable reserve
1.Withdrawal in this period
2.Usage in this period
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
(VII) Other
IV. Balance at the end of the report
250,900,154.00 571,329,130.72 45,001,147.33 93,286,637.50 51,167,623.63 1,011,684,693.18
period
Legal person: Mr. Zheng Yuxi
Person in Charge of Accounting Works: Ms. Wang Zhiping
Person in Charge of Accounting Institution: Mr. Xu Qiming
8. Statement on Changes of Owners' Equity of Parent Company
Prepared by Shenzhen Shenbao Industrial Co., Ltd
Amount in this period
In RMB
Amount in this period
Item Paid-up capital Less: Treasury Reasonable General risk Total owners’
Capital reserves Surplus reserves Retained profit
(Share capital) Stock reserve reserve equity
I. Balance at the end of last year 250,900,154.00 583,160,306.19 45,001,147.33 196,128,511.03 1,075,190,118.55
Add: Changes of accounting policy
Error correction of the last period
Others
II. Balance at the beginning of this year 250,900,154.00 583,160,306.19 45,001,147.33 196,128,511.03 1,075,190,118.55
III. Increase/ Decrease in this year (Decrease is
50,180,030.00 -50,180,030.00 -8,573,943.81 -8,573,943.81
listed with'"-")
(i) Net profit -8,573,943.81 -8,573,943.81
(ii) Other consolidated income
Subtotal of (i)and (ii) -8,573,943.81 -8,573,943.81
(III) Owners' devoted and decreased capital
1. Owners' devoted capital
2. Amount calculated into owners' equity paid in
shares
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
3. Others
(IV) Profit distribution
1. Withdrawal of surplus reserves
2. Withdrawal of general risk reserve
3. Distribution for owners (shareholders)
4. Others
(V) Carrying forward internal owners' equity 50,180,030.00 -50,180,030.00
1. Capital reserves conversed to capital (share
50,180,030.00 -50,180,030.00
capital)
2. Surplus reserves conversed to capital (share
capital)
3. Remedying loss with surplus reserves
4. Others
(VI) Reasonable reserve
1. Withdrawal in this period
2. Usage in this period
(VII) Other
IV. Balance at the end of the report period 301,080,184.00 532,980,276.19 45,001,147.33 187,554,567.22 1,066,616,174.74
Amount in last year
In RMB
Amount in last year
Item Paid-up capital Less: Treasury Reasonable General risk Total owners’
Capital reserves Surplus reserves Retained profit
(Share capital) Stock reserve reserve equity
I. Balance at the end of last year 250,900,154.00 583,300,472.29 40,071,736.73 201,943,846.44 1,076,216,209.46
Add: Changes of accounting policy
Error correction of the last period
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
Others
II. Balance at the beginning of this year 250,900,154.00 583,300,472.29 40,071,736.73 201,943,846.44 1,076,216,209.46
III. Increase/ Decrease in this year (Decrease is
-140,166.10 4,929,410.60 -5,815,335.41 -1,026,090.91
listed with'"-")
(i) Net profit 49,294,105.99 49,294,105.99
(ii) Other consolidated income -140,166.10 -140,166.10
Subtotal of (i)and (ii) -140,166.10 49,294,105.99 49,153,939.89
(III) Owners' devoted and decreased capital
1. Owners' devoted capital
2. Amount calculated into owners' equity paid in
shares
3. Others
(IV) Profit distribution 4,929,410.60 -55,109,441.40 -50,180,030.80
1. Withdrawal of surplus reserves 4,929,410.60 -4,929,410.60
3. Withdrawal of general risk reserve
3. Distribution for owners (shareholders) -50,180,030.80 -50,180,030.80
4. Others
(V) 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 reserves
4. Others
(VI) Reasonable reserve
3. Withdrawal in this period
4. Usage in this period
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
(VII) Other
IV. Balance at the end of the report period 250,900,154.00 583,160,306.19 45,001,147.33 196,128,511.03 1,075,190,118.55
Legal person: Mr. Zheng Yuxi
Person in Charge of Accounting Works: Ms. Wang Zhiping
Person in Charge of Accounting Institution: Mr. Xu Qiming
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
III. Company profile
(I) Historical development of the Company
Shenzhen Shenbao Industrial Co., Ltd. (the “Company” or “Company” for short), formerly named Shenzhen
Shenbao Canned Food Company, obtained approval (Document (1991) No.978) from Shenzhen Municipal
People’s Government to change to the present name as on 1 August 1991. Then with the approval (Document
(1991)No.126) from People’s Bank of China, the Company began to list on Shenzhen Stock Exchange.
The Company initially issued 107,312,935 shares in the stock exchange. In 1992, one bonus share was dispatched
for each 10 shares held by its shareholders, thus totally 10,731,290 shares were increased. In 1993, one bonus
share and one allotted share were dispatched for each 10 shares held by its shareholders, thus totally 20,878,845
shares were increased. Subsequently, one bonus share was dispatched for each 10 shares held by shareholders
upon the basis of total share capital as at the end of 1996, and capitalizing of capital reserves was carried out at
one to ten basis, thus totally 27,784,614 shares were increased. In 2001, based on the total share capital as at the
end of 1999, three shares were allotted for each 10 shares held by shareholders, and totally 15,215,404 shares
were allotted. The registered capital of the Company amounts to RMB181, 923,088.
On 22 June 2011, the Company privately offering 68,977,066 shares of RMB ordinary share (A share) to target
investors with issuing price of RMB 8.70 each while book value of RMB 1.00. Total monetary capital RMB
600,100,474.20 was raised. Change procedures of industrial and commerce has completed on 12 July 2011. Register
capital of the Company changed as RMB 250,900,154.00.
On 16 May 2014, in base of total share capital ended as 2013, the Company capitalizing of public reserves as two
to every ten shares, shares increased 50,180,030 in total, and the shares have been verified by verification reprot
Da Hua Yan Zi [2014] No. 000236 issued from Da Hua CPA, the changes of industrial and commerce still in
process.
Registed address of the Company: South 20/F, Education Technology Mansion, Zhuzilin, Futian District,
Shenzhen, P.R. China; license No.: 440301103223954
(II) Nature of business
The Company belongs to the drinks and refined tea manufacturing
(III) Business scope
General business scope including: production of tea, tea products, extract of tea and natural plant, canned food,
beverage and native products ( business license for the production place should apply separately); technology
development and technology service of tea, plant products, soft beverage and foods; info tech development and
supporting service; on-line trading; invesetment, operation, management and development of tea plantation;
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
investment in industrial projects (apply separately for detail projects); domestic trading(excluding special sales,
specific control and exclusive commodity); import and export business; engaged in real estate development and
operation in the land legally obtained; lease and sales of the self-owned property and property management.” (as
for the projects subject to examination and approval regulated by the state laws, administrative regulations and
state council, approval should be obtained before operation). Business in license: wholesale of prepackaged food
(excluding reheating prepackaged food) (in non-physical way)
(IV) Main products and labor service
The Company mainly engaged in the products of tea series of “Jindiao” brand including instant tea power and tea
concentrate; rock tea of “Xing Jiu” serial; “Jufangyong” Longjingg green tea; “Gutan” red tea and serials of “Fu
Hai Tang”; seasoning series under “Sanjing” brand include oyster sauce, olive vegetable, and soy; beverages
series under “Shenbao” brand include daisy tea, lemon tea, and wax gourd tea
(V) Basic structure of the Company
The highest authority organ of the Company is general meeting, and general manager take charge of the company
under the board. Based on the needs for business development, the Company set function departments like office
of the Board, office of GM, HR Dept., Financial management Dept., investment development dept., brand
planning dept., caffeine deep processing division, R&D center, monitor room and internal auditing dept.
IV. Major accounting policy, accounting estimation and prior-period errors correction
1. Basis of preparation of financial statements
Based on continuing operation, the Company conducts recognition and measurement according to actual
occurrence of transactions and issues, pursuant to the accounting principles for enterprise-basic rules and No.38
detailed accounting principle issued by the ministry of finance on 15 February 2006 as well as the application
guidance for the accounting principles for enterprise, interpretation to the accounting principles for enterprise and
other related requirements (hereinafter referred to as Enterprise Accounting Principles) later issued by the ministry
of finance, as well as the Information Disclosure Preparation Rules for Company Public Issuing Securities
No.15-General Rules for Financial Report (amended in 2010) of the CSRC. And financial report is prepared on
such basis.
2. Statement for observation of Accounting Standard for Enterprise
The financial statements prepared by the Company are in accordance to requirements of Accounting Standard for
Enterprise, which truly and completely reflect the information related to financial position, operational results and
cash flow of the Company.
3. Accounting period
One accounting period falls to the range starting from Gregorian calendar of 1 January to 31 December.
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
4. Standard 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) Business combination under the same control
(1) Individual financial statements
Where the consideration for the combination is the cash paid, the non-cash assets transferred and the liabilities
assumed and equity securities issued, it shall, on the combining day, treat the share of the carrying amount of
owner's equity of the combined party as the initial cost of long-term equity investment. Difference between the
initial cost of the long-term equity investment and the consideration paid for the combination is adjusted to capital
reserve. If the capital reserve is not sufficient to absorb the difference, any excess shall be adjusted against
retained earnings.
Any cost directly attributable to the combination should, including the expenses for audit, assessment and legal
services, be recognized in profit or loss for the current period. Where there are consolidated financial statements
of the combined party, the initial cost of the long-term equity investment shall be determined on the basis of
owner's equity of the combined party in its consolidated financial statements on the combining day.
(2) Consolidated financial statements
Assets and liabilities obtained by the absorbing party are measured at their carrying amounts on the combining day.
Where the accounting policy adopted by the combined party is different from that adopted by the Company, the
Company shall, according to accounting policy it adopts, adjust the relevant items in the financial statements of
the combined party, and shall, pursuant to the accounting standards for enterprises, recognize them on the basis of
such adjustment.
(2) Business combination not under the same control
As for the business combination not under the same control, combination costs shall be the fair value of assets
paid, liabilities occurred or assumed and equity securities issued by the acquirer for the purpose of acquiring the
control over the acquiree on the purchase date. In combination agreement, as for the contract made for the
influence that probably impact the combination costs, if the future event probably impact on the combination cost
on purchasing date, which can be measured reliably, than reckoned into combination cost.
The intermediate expenses occurred for business combination such as audit, legal service and appraisal
consultation expenses and other related management expenses shall be recorded in current gains and losses when
occurred; the trading expenses for such equity securities or debt securities issued by acquirer as combination
consideration shall be recorded in initial recognition amount of the equity securities or debt securities.
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
Goodwill is realized by the Company as for the difference between the combination cost and the fair value of the
recognizable net assets of the acquiree acquired by acquirer in such business combination. In case that the above
cost is less than the above fair value even with re-review, then the difference shall be recorded in current gains
and losses.
As for the business combination not under the same control realized through several exchange transactions step by
step, related accounting treatment shall be conducted based on individual financial statement and combined
financial statement:
1)in individual financial statement, book value of the equity investment held in the acquiree prior to the
acquisition date and the new investment cost of the acquisition date shall be the initial investment cost of this
investment; if the equity investment held in the acquiree prior to the acquisition date involves other
comprehensive income, such comprehensive income related to this investment (i.e. change of fair value of
financial assets available for sale which is recorded in capital reserve) shall be transferred to current investment
income.
2) in combined financial statement, the equity investment held in the acquiree prior to the acquisition date shall be
re-measured under its fair value as at the acquisition date; difference between the fair value and its book value
shall be recorded in current investment income. If the equity investment held in the acquiree prior to the
acquisition date involves other comprehensive income, such comprehensive income related to this investment
shall be transferred to current investment income as of the acquisition date.
6. Detail accounting policy with disposal equity step by step until loss of control falls concerned
(1) Judgment rule of “package deal”
If the terms, conditions and economic impact of each transaction involved in the disposal by steps of investment
in subsidiaries fall into one or more of the following situations, such transactions will be accounted for as a
package deal:
1. Such transactions are entered into simultaneously or in the case of considering the impact of each other;
2. Such transactions as a whole in order to reach a complete business results;
3. The occurrence of a transaction subject to that of at least one other transaction;
4. One transaction alone is not economic, but otherwise when considered with other transactions.
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(2) Accounting method of “package deal”
Each transaction involved in the disposal of equity investments of subsidiaries until loss of control falls into a
package deal and should be accounted for accordingly in differentiation with individual financial statements and
consolidated financial statements:
(1) In individual financial statements, each transaction should be accounted for as a transaction-involving disposal
of subsidiaries and loss of control. When disposing the investments in subsidiaries by enterprises, difference
between the payment and the carrying amount should be recognized as investment gain for the period in
individual financial statements of parent company;
(2) In consolidated financial statements, difference between each payment from disposal of a subsidiary and the
share of its net assets through investment before the loss of control should be recognized as other comprehensive
income and at the time of loss of control, transferred to profit or loss for the current period.
(3) Accounting method of non-“package deal”
Enterprises that lose control of their original subsidiaries due to the disposal of partial equity investment or
otherwise, and therefore disqualify a package deal, should prepare the relevant accounting treatment in
differentiation with individual financial statements and consolidated financial statement:
(1) In individual financial statements, equity disposed should be accounted for in accordance with the Accounting
Standards for Enterprises No. 2 – Long-term equity investments. Meanwhile, remaining equity should be
recognized at its carrying amount as long-term equity investment or other relevant financial asset. Remaining
equity after disposal that can exercise common control or significant influence on original subsidiaries should be
accounted for in accordance with the relevant regulations on the exchange between cost approach and equity
method.
(2) In consolidated financial statements, remaining equity should be re-measured according to its fair value on the
day of its loss of control. The sum of consideration gained from the disposal of equity and the fair value of
remaining equity minus the share of net assets of original subsidiaries since the day of purchase and based on its
original shareholding ratio is credited into investment gain for the current period. Other comprehensive income in
relation to equity investments of original subsidiaries should be transferred to investment gain for the period at the
time of loss of control. Enterprises should disclose in the notes the fair value of remaining equity after disposal on
the day of loss of control and the amount of gain or loss arising from the re-measurement at fair value.
7. Methods for preparation of consolidated financial statements
(1) Methods for preparation of consolidated financial statements
The consolidation scope of the consolidated financial statements of the Company is fixed on the basis of control,
and all subsidiaries have been consolidated.
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The accounting policies and accounting period adopted by the subsidiaries taken into account of the consolidation
scope are in line with the Company. If it is not the same as the Company, necessary adjustments will be made
when preparing consolidated financial statements according to the accounting policy and accounting period of the
Company.
Based on the financial statements of the Company and its subsidiaries, the Company prepares the consolidated
financial statements by reference to other related information after adjustment in its long-term equity investments
to subsidiaries by equity method.
When consolidating financial statements, the Company shall offset all effects upon consolidated balance sheet,
consolidated profit statement, consolidated cash flow statement and consolidated statement of changes in equity
arising from the internal transactions between the Company and each subsidiary and between various subsidiaries.
Concerning the balance between the current losses shared by minority shareholders of subsidiaries exceeding the
proportion shared by those shareholders in beginning owners’ equity of those subsidiaries, the balance shall be
used to offset minority equity.
During the report period, beginning amounts in consolidated balance sheet shall be subject to adjustment if
business combination under the same control results in additional subsidiaries; income, expense and profit of such
subsidiaries occurred during the whole consolidation period shall be accounted into consolidated profit statement;
and the cash flow of subsidiaries occurred during the whole consolidation period shall be accounted into
consolidated cash flow statement.
During the report period, beginning amounts in consolidated balance sheet is not subject to adjustment if business
combination not under the same control results in additional subsidiaries; income, expense and profit of such
subsidiaries occurred during the period commencing from purchase day to the end of reporting year shall be
accounted into consolidated profit statement; and the cash flow of such subsidiaries occurred during the period
commencing from purchase day to the end of reporting year shall be accounted into consolidated cash flow
statement.
During the report period, if the Company disposes subsidiaries, then the income, expense and profit of the
subsidiaries occurred during the period commencing from period-begin to the disposal day shall be written into
consolidated profit statement; and cash flow arising during such period of such subsidiaries shall be written into
consolidated cash flow statement.
In case that a company losses control over the original subsidiary due to disposal of certain equity investment or
other reasons, then in combined financial statement, the remaining equities shall be re-measured based on its fair
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
value as at the date when the control is lost. The sum between the consideration received from equity disposal and
fair value of the remaining equity less the net assets of the original subsidiary entitled by the company calculated
under the previous shareholding proportion on a continuing basis since the acquisition date shall be recorded in
investment income of the period when the control is lost. Other comprehensive income related to equity
investment in original subsidiary shall be transferred to current investment income when the control is lost.
8. Recognition standards for cash and cash equivalents
When preparing cash flow statement, the Company recognized the stock cash and deposits available for payment
at any time as cash, and investments featuring with the following four characters at the same time as cash
equivalents: short term (expire within 3 months commencing from purchase day), active liquidity, easy to convert
to already-known cash, and small value change risks.
9. Foreign currency business and conversion of foreign currency statement
(1) Foreign currency business
For the foreign currency business, the Company converts the foreign currency into RMB for book-keeping based
on spot exchange rate at date of trading occurred.
Balance of foreign currency monetary items shall be converted based on the spot rate as at the balance sheet date,
and the arising exchange difference shall be recorded in current gains and losses other than those arising from the
special foreign currency borrowings related to purchasing assets qualifying for capitalization which is treated
under the principle of borrowing expense capitalization. As for the foreign currency non-monetary items measured
in historical cost, conversion is still conducted with the spot rate as at the transaction date, without any change to
its functional currency; as for the foreign currency non-monetary items measured in fair value, conversion is
conducted with the spot rate as at the date for determination of fair value, and the arising exchange difference
shall be recorded in current gains and losses or capital reserve.
10. Financial instruments
Financial instruments include financial assets, financial liabilities and equities instruments.
(1) Categories of financial instruments
According to the purposes held for financial assets and liabilities, the management categorizes them into: financial
assets or financial liabilities at fair value through current gains and losses, including transactional financial assets
or financial liabilities; held-to-maturity investment; accounts receivable; financial assets available for sale; other
financial liabilities, etc.
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(2) Recognition evidence and measurement methods for financial instruments
1. Financial assets (financial liabilities) at fair value through current gains and losses
Such assets bear initial recognition amounts at fair value (after deduction of cash dividends declared but not
granted yet or bond interests which arrives at settlement moment but not collected yet) when being obtained, and
relevant transaction expense falls into current gains and losses.
Interests or cash dividends acquired during holding are recognized as investment income, and movement of fair
value is recorded in current gains and losses as at year end.
When disposing such assets or liabilities, the Company shall recognize the difference between fair value and
initial booking amount as investment income, and gains and losses from movements of fair value shall be subject
to adjustment at the same time.
2. Held-to-maturity investment
Held-to-maturity investment bears initial recognition amount at aggregate of fair value (after deduction of bond
interests which arrives at settlement moment but not collected yet) and relevant transactional expenses when being
obtained.
When holding such investments, interest income is calculated and recognized according to remaining amortized
cost and effective interest rate, and then written into investment income. Effective interest rate is recognized when
obtaining such investments, and not subject to change during the expected duration period or applicable shorter
period.
When disposing such investments, the Company shall treat the balance between the payment for obtaining such
investments and carrying value thereof as investment income.
3. Account receivables
As for the creditor’s right receivables arising from commodity sales or labor service provision and the creditor’s
right arising from holding debt instruments of other companies (excluding those which have quotation on active
market) such as account receivables, other receivables, note receivables, account paid in advance and long term
account receivables, the initial recognition amount shall be determined based on the contract or agreement amount
receivable from the purchaser. If such creditor’s right has financing nature, then initial recognition shall be made
based on its present value.
Difference between the amount received from recover or disposal and the book value of the account receivables
shall be recorded in current gains and losses.
4. Financial assets available for sale
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Financial assets available for sale bear initial recognition amount at aggregate of fair value (after deduction of
cash dividends declared but not granted yet or bond interests which arrive at settlement moment but not collected
yet) and relevant transactional expenses when being obtained.
Interests or cash dividends acquired during holding are recognized as investment income. They will be measured
at fair value and movements of their fair values shall be recorded in capital reserve (other capital reserve) at year
end.
When disposing such assets, the Company shall treat the balance between the payments for obtaining such
financial assets and carrying value thereof as investment gains and losses; meanwhile, the amounts
correspondingly disposed due to accumulative movements of fair value originally recorded in owners’ equity
directly shall be reversed out and recorded in investment gains and losses.
5. Other financial liabilities
Other financial liabilities bear initial recognition amount at aggregate of fair value and relevant transactional
expenses. Subsequent measurement is conducted at amortized cost.
(3) Confirmation evidence and measurement methods for transfer of financial assets
When transfer of financial assets occurs, the Company shall stop recognition of such financial assets if all risks
and remunerations related to ownership of such financial assets have almost been transferred to the receiver; while
shall continue to recognize such financial assets if all risks and remunerations related to ownership of such
financial assets have almost been retained.
When judging whether or not the aforesaid terminal recognition condition for financial assets is arrived at for
transfer of financial assets, the Company generally adopts the principle that substance overweighs format. The
Company divides such transfer into entire transfer and part transfer. As for the entire transfer meeting condition
for discontinued recognition, balance between the following two items is recorded in current gains and losses:
(1)Carrying value of financial assets in transfer;
(2)Aggregate of the consideration received from transfer and accumulative movements of fair value originally
recorded in owners’ equity directly (applicable when financial assets involved in transfer belong to financial assets
available for sale).
As for the part transfer meeting condition for discontinued recognition, entire carrying value of financial assets in
transfer is shared by discontinued recognition part and continued recognition part, in light of their respective fair
value. Balance between the following two items is recorded in current gains and losses:
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
(1)Carrying value of discontinued recognition part;
(2)Aggregate of the consideration of discontinued recognition part and amount of such part attributable to
accumulative movements of fair value originally recorded in owners’ equity directly (applicable when financial
assets involved in transfer belong to financial assets available for sale).
Financial assets are still subject to recognition if transfer of such assets doesn’t satisfy the condition for
discontinued recognition. And consideration received is recognized as financial liability.
(4) De-recognition condition for financial liability
As for the financial liabilities with its whole or part present obligations released, the company shall de-realize
such financial liabilities or part of it. if the company enters into agreement with its creditor to substitute for the
existing financial liabilities by means of assuming new financial liabilities, then the company shall de-realize the
existing financial liabilities and realize the new financial liabilities provided that the contract clauses of the new
and the existing financial liabilities are different in substance.
If the company makes substantial amendment to the whole or part contract clauses of the existing financial
liabilities, it shall de-realize the existing financial liabilities or part of it. Meanwhile, the financial liabilities with
amendment to its clauses shall be realized as new financial liabilities.
In case of derecognizing of financial liabilities in whole or part, the difference between the carrying value of such
de-realized financial liabilities and consideration paid (including the non-cash assets exchanged or new financial
liabilities assumed) shall be recorded in current gains and losses.
In case that the company repurchases part of financial liabilities, based on the comparative fair value of the
continuing recognition part and the derecognizing part, the company shall allocate the carrying value of the
financial liabilities in whole on the repurchase date. Difference between the carrying value allocated to the
derecognizing part and the consideration paid (including the non-cash assets exchanged or new financial liabilities
assumed) shall be recorded in current gains and losses.
(5) Determination method for fair value of financial assets and financial liabilities
As for the financial assets and financial liabilities measured by fair value and in case that there are active market
for those assets and liabilities, then the fair value shall be determined based on the quotation on active market; in
case that there are no such active market for financial assets and financial liabilities, the fair value shall be
determined by evaluation technology (including by reference to the price adopted by the willing parties who are
familiar with the situation in their latest market transaction, by reference to the prevailing fair value of other
financial instruments which are the same in substance, cash flow discount method and option pricing pattern); as
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for the financial assets initially acquired or financial liabilities assumed, their fair value are determined based on
the market transaction prices.
(6) Provision of impairment reserve for impairment of financial assets (excluding account receivables)
The company reviews the carrying value of the financial assets (excluding those measured by fair value and the
change thereof is recorded in current gains and losses) on the balance sheet date, if there is objective evidence
showing impairment of the financial assets, it shall provide impairment reserve.
Objective evidence that a financial asset is impaired includes the following observable events:
1. Significant financial difficulty of the issuer or obligor;
2. A breach of contract by the borrower, such as a default or delinquency in interest or principal payments;
3. The creditor, for economic or legal reasons relating to the borrower’s financial difficulty, granting a concession
to the borrower;
4. It becoming probable that the borrower will enter bankruptcy or other financial reorganizations;
5. The disappearance of an active market for that financial asset because of financial difficulties of the issuer;
6. observable data indicating that there is a measurable decrease in the estimated future cash flows from a group
of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with
the individual financial assets in the group, including: adverse changes in the payment status of borrowers in the
group, an increase in the unemployment rate in the country or geographical area of the borrowers, a decrease in
property prices for mortgages in the relevant area, or adverse changes in industry conditions that affect the
borrowers in the group;
7. Significant adverse changes in the technological, market, economic or legal environment in which the issuer
operates, indicating that the cost of the investment in the equity instrument may not be recovered by the investor;
8. a significant or prolonged decline in the fair value of an investment in an equity instrument below its cost;
Recognition standards for impairment of financial assets available for sale
11. Recognition standards and accrual method for bad debt provision for accounts receivable
Receivable refers to account receivable and other account receivable
The Company adopts the following standards for recognition of bad debt: ①debts which can not be collected by
settlement with bankruptcy properties or heritage of debtors who face revoke, bankruptcy or death, and cash flow
is in serious shortage; ②debts which are past due while not settled by debtors and featured with obvious
characteristics indicating that it is not able to collect. Account receivable is recognized as bad debt losses if there
are obvious evidences indicating that the accounts are not possible to collect, and the provision of bad debt reserve
shall then be offset.
The Company adopts allowance method to calculate bad debt reserve which is likely to happen.
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(1) Bed debt provision for account receivable with single significant item
Determine basis or amount standards for single Details standards: Amount occupied 10 percent (including 10 percent) of
significant amount the balance of account receivable.
Withdrawal method forbad debt provision of single significant
receivables: conducted impairment testing separately, balance between
Withdrawal method for account with single significant the present value of future cash flow and its carrying value, bad debt
amount and withdrawal single item bad debt provision provision withdrawal and reckoned into current gains/losses. For those
receivables without impairment occurred, included in corresponding
combination for bad debt provision
(2) Accounts receivables whose bad debts provision was accrued by combination
Methods on withdrawal of bad debt
Combination Basis for combination recognized
provision based on combination
Age analysis Age analysis
In combination, accounts whose bad debts provision was accrued by age analysis:
√ Application □ Not application
Withdrawal proportion for account
Aging Withdrawal proportion for other account receivable
receivable
Within one year (one year
0.00% 0.00%
included)
1－2 years 5.00% 5.00%
2－3 years 10.00% 10.00%
Over 3 years 15.00% 15.00%
3－4 years 15.00% 15.00%
4－5 years 15.00% 15.00%
Over 5 years 15.00% 15.00%
In combination, withdrawal proportion of bad debt provision based on balance proportion:
□ Application √ Not application
In combination, withdrawal proportion of bad debt provision based on other methods:
□ Application √ Not application
(3) Accounts receivables with single minor amount but with bad debts provision accrued individually
Existence of objective evidence showing possible impairment, such as withdrawal,
Reasons for provision of bad debt reserve
bankruptcy or death of debtor, debt can not be recovered or insufficient cash flow
individually
after settlement with the bankruptcy property or heritage.
As for the account receivables where objective evidence shows impairment may
Provision method of bad debt reserve occur, it shall be separated from the related group and conduct impairment test
individually, thus to realize impairment losses.
12. Inventories
(1) Classification
Inventory means finished goods and merchandise that are ready for sale, work-in-progress, or material used in the
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process of production or provision of service in the ordinary course of business. Inventory includes merchandise
in warehouse, delivered goods, work- in-progress, raw materials, packing materials, low value consumables,
subcontracted materials, development cost, and land proposed for development, developed products and those for
lease, etc.
(2) Send out stocks and valuate
Valuation method: weighted average
Exercised weighted average method when stock deliverred out
(3) Recognized standards of the net realizable value for inventory and withdrawal method on provision of
inventory
After inventory at period-end, the inventories are accounted depending on which is lower between the cost and the
net realizable value or adjusted the provision of inventory. The net realizable value of finished goods, inventory
products and sellable materials, in normal business production, is measured as the residual value after deducting
the estimated sales expense and related taxes and fees from the estimated selling price; the net realizable value of
an item of inventories subject to further processing, in normal business production, is measured as the residual
value after deducting the sum of the estimated costs of completion, sales expense and related taxes and fees from
the estimated selling price of the sellable item. The net realizable value of the quantity of inventories held to
satisfy firm sales or service contracts is based on the contract price. If the sales contracts are for less than the
inventory quantities held, the net realizable value of the excess is based on general selling prices.
An impairment allowance, if any, is generally individually recognized for each type of inventories at period-end
except: For an individual impairment allowance, if any, is recognized for the whole category of inventories of low
value and large quantities; and for an individual impairment allowance, if any, is recognized for a group of
inventories, which are held for the production and sales of products of a single territory and for identical or similar
usages or purposes, and which are indistinguishable from other types of inventories within the group.
If the previous factors resulting in deduction of inventories values disappear, then such deduction of value shall be
reversed back from the original provision of inventory depreciation reserve, and turns to current gains and losses.
(4) Inventory system
Inventory system: perpetual inventory system
Perpetual inventory system adopted
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(5) Amortization of low-value consumables and packaging materials
Low-value consumables
Amortization method: five-five amortization
Adopt five-five amortization for low-value consumables;
Packing materials
Amortization method: one-off amortization
Packing materials are recorded in production cost at once when being received.
13. Long-term equity investment
1. Recognition of investment cost
(1) As for the long-term equity investment formed from business combination under the same control, accounting
policy found in (V) Accounting method for busines combination (not) under the same control of Note II
(2) Long-term equity investment obtained by other means
For long-term equity investments obtained through payment with cash, then the actual payment shall be viewed as
initial investment cost.
For long-term equity investments obtained through issuance of equity securities, then the fair value of such
securities shall be viewed as initial investment cost.
For long-term equity investments input by investors, then the value agreed in investment contract or agreement
(after deduction of cash dividend or profit declared while not granted yet) shall be viewed as initial investment
cost, while excluding the value agreed in contract or agreement is not fair valued.
Under the precedent condition that non-monetray assets exchanges are featured with commercial nature and fair
values of exchange-in or exchange-out assets can be reliably measured, long-term equity investment exchange-in
through non-monetary assets exchange shall be recognized with initial investment cost on the basis of the fair
value of the assets exchange-out, unless there is obvious evidence showing that fair value of exchange-in assets is
more reliable; as for non-monetray assets exchanges not satisfying such precedent condition, initial investment
cost of exchange-in long-term equity investment falls to the carrying value of exchange-out assets and relevant
taxes payable.
For long-term equity investments obtained through debt reorgnization, its initial investment cost is recognized
based on fair value.
(2) Subsequent measurement and recognition of gains and losses
(1) Subsequent measurement:
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As for long-term equity investment made by the Company to its subsidiaries, calculation is conducted by cost
method, while equity method is adopted for adjustment when preparing consolidated financial statements.
Cost method is used for calculation when the Company has no common control or significant influence over the
invested units. Besides, such long-term equity investments have no quotation in an active market and their fair
values can’t be reliably measured.
Equity method is used for calculation when the Company has common control or significant influence over the
invested units. When initial investment cost is higher than the share of fair value of net realizable assets of the
invested unit, then the initial investment cost of the long-term equity investment remains with no adjustment;
while if the aforesaid former is lower than the later, then difference shall be recorded in current gains and losses.
Disposal of other changes in owners’ equity (except for changes in net gains and losses) of the invested units: for
other changes in owners’ equity (except for changes in net gains and losses) of the invested units, with
shareholding proportion held constant, the Company computers how much it should share or undertake according
to the shareholding proportion, adjusts carrying value of such long-term equity investment and increase or
decrease capital reserve (other capital reserve) at the same time. In period of investment held, if invested units
provide consolidated financial statements, should calculated base on consolidated financial statement, net profit
and other changes of investment.
(2) Recognition of gains and losses
Under cost method for recognition of gains & losses, other than payment actually paid for obtaining investment or
cash dividend or profit included in consideration which has been declared while not granted yet, the Company
recognizes investment income according to its share in the cash dividend or profit declared for grant by the
invested unit.
Under equity method, investment enterprise should recognized net profit of invested unit after adjustment, based
on fair value of vary identifiable assets of invested unit while obtained investment, while recognized net profit or
net losses of invested units that should be enjoy by investment enterprise; the transaction gains/losses attributable
to investment enterprise, internally occurred between investment enterprise, affiliated units and joint-ventures
should calculated by proportion of shares-holding which should be offset, than recognized investment gains/losses;
when the Company is confirmed to share losses of the invested units, the following order shall prevail for disposal:
first of all, offset carrying value of long-term equity investment. Second, for long-term equity investment whose
carrying value is not enough for offset, investment loss should be continued to recognize within the limit of
carrying value of other long-term equity which substantially forms net investment to invested units, to offset
carrying value of long-term items receivable. At last, after the aforesaid treatment, if enterprise still bears
additional duties according to investment contract or agreement, projected liabilities are recognized in accordance
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to the the obligations which are expected to undertake, and then recorded in current gains and losses.
In the event that the invested unit realizes profit in later periods, the Company will adopt disposal adversed to the
above order after deduction the unrecognized share of loss, i.e. write off the carrying value of the recognized
projected liabilities, recover carrying value of long-term equity which substantially forms net investment to
invested unit and long-term equity investment, and recognize investment income at the same time.
(3) Evidence showing common control and significant influence with invested units
Common control over certain economic activity agreed by contract only exist when investors who need to share
control power on material financial and operation decisions related to such economic activity make unanimous
agreement, and then it is deemed as common control implemented by other parties to invested unit; if a party has
power to join decision-making related to finance and operation of an enterprise, while no ability of control or joint
control with other parties upon establishement of such decisions, the party is then deemed that it has significant
influence upon invested unit.
(4) Impairment testing and withdrawal of the impairment
At the balance sheet date, if there are indications that a long-term equity investment has impaired due to a
sustained decline in market price or deterioration in the operation conditions of the investee unit, the recoverable
amount of the long-term equity investment is determined based on the higher of the fair value net of disposal costs
and the present value of the estimated future cash flow of the long-term equity investment. If the recoverable
amount of the long-term equity investment is lower than the carrying amount, the carrying amount of the asset is
reduced to the recoverable amount and the amount so reduced is recognized as impairment loss and recognized in
profit or loss for the period, and corresponding provision for impairment is allocated.
For long-term equity investment with no significant influence, no quotation in active market and whose fair value
could not be reliably measured, its impairment reserve is recognized based on the balnce between its carrying
value and present value recognized through discounted future cash flow of similar financial assets at the
prevailing market rate of return.
For other long-term equity investments (except for goodwill) formed from business combination where
impairment signs appear, if the measurement on the recoverable amount shows that the recoverable amount of
such long-term equity investment is lower than its fair value, then the difference is recognized as impairment loss.
Long-term equity investment calculated base on cost, take depreciation into consideration for long-term equity
investment after recognized investment income from cash bonus or profit distribution announced by the invested
units.
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Once impairment loss is recognized for long-term equity investment, there will be no stand for any reversal.
14. Investment real estate
Investment real estate is defined as the real estate with the purpose to earn rent or capital appreciation or both,
including the rented land use rights and the land use rights which are held and prepared for transfer after
appreciation, the rented buildings.
The investment property of the Company is accounted at its cost. Cost of investment property purchased from the
external sources includes purchase payment, related taxes and other expenditures which can be directly
attributable to such assets; Cost of investment property constructed by the Company comprise of the necessary
expenditure occurred during the construction for reaching the condition of planned use.
The Company adopts cost method for subsequent measurement of investment property. As for the investment
property measured at cost method – buildings for lease are depreciated under the policies which are the same as
fixed assets, and land use right for lease are amortized under the policies which are the same as intangible assets.
When use of investment property changes to be used by the company itself, the company shall transfer the
investment property to fixed assets or intangible assets since the change date; when use of the self-use real estate
changes for earning rental or capital appreciation, the company shall transfer the fixed assets or intangible assets
to investment property since the change date; for such transfer, the carrying value prior to the transfer is deemed
to be the value accounted after the transfer.
For those where impairment indication exists, the company estimates the recoverable amount. Where the
recoverable amount is less than its carrying value, the company shall realize related impairment losses.
As for investment property, once impairment loss is realized, it shall not be written back.
The company would de-realize investment property when the same is disposed or out of use forever and no
economic benefit would be obtained from such disposal. The disposal income from sale, transfer, dump or destroy
of investment property less its carrying value and related taxes is recorded in current gains and losses.
15. Fixed asset
(1) Recognition of fixed assets
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing
services, lease or for operation & management, and have more than one year of service life. Fixed assets should be
recognized for qualified the followed conditions at the same time:
(1) It is probable that the economic benefits associated with the assets will flow into the Company; and
(2) The cost of the assts can be measured reliably.
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(2) Recognition and measurement of fixed assets held under finance lease
A fixed asset leased by the Company is recognized as the fixed asset held under finance lease if one or more of the
following criteria are met:
(1) Upon the expiry of the lease term, the ownership is transferred to the Company.
(2) the Company has the option to purchase the asset at a predetermined price that is expected to be sufficiently
lower than the fair value at the date the option becomes exercisable and it is reasonably ascertained at the
inception of lease that the option will be exercised.
(3) the lease term approximates the useful life of the relevant asset even if the ownership is not transferred.
(4) at the inception of the lease, the present value of the minimum lease payments is substantially equivalent to the
fair value of the leased asset.
(5) the leased assets are of such a specialized nature that only the Company can use them without major
modification.
A fixed asset held under finance lease is initially recognized at the lower of fair value of the leased asset and the
present value of the minimum lease payments, while the amount of the minimum lease payments will be
recognized as the entry value of long-term account payable, the difference between them will be recognized as
unrecognized financing costs. The initial direct costs such as commissions, attorney’s fees, and travelling
expenses, stamp duties attributable to the leased item incurred during the process of lease negotiating and signing
the leasing agreement shall be recorded in the asset value. Unrealized finance costs will be amortized using actual
interest rate method over each period during the lease terms.
The Company adopts depreciation policies for leased assets consistent with those of self-owned fixed assets for
the purpose of calculating the depreciation of a leased asset. If it is reasonable to be certain that the lessee will
obtain the ownership of the leased asset when the lease term expires, the leased asset shall be fully depreciated
over its useful life. If it is not reasonable to be certain that the lessee will obtain the ownership of the leased asset
at the expiry of the lease term, the leased asset shall be fully depreciated over the shorter one of the lease term or
its useful life.
(3) Depreciation on various fixed assets
Except for the fixed assets that continue using after depreciation withdrawal totally, the fixed assets are
withdrawal by classification on the age average basis, according to the categories, predicted service life and
predicted net salvage, depreciation was recognized.
Fixed assets leased on a financing lease which it can be reasonably assured that ownership of the leased asset can
be obtained upon expiration of lease, the leased asset is depreciated over its remaining useful life; if ownership of
the leased asset cannot be reasonably determined upon expiration of lease, the shorter of the lease term and the
remaining useful life of the leased asset is used for allocation of depreciation.
Fixed assets formed using special reserve expense are deducted against the special reserve based on the cost of
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forming the fixed assets and corresponding amount is recognized in accumulated depreciation. No further
allocation for depreciation can be made for such fixed assets in future periods.
The Company determines the useful life and estimated residual value of fixed assets based on their nature and use
condition. The useful life, estimated residual value and method of depreciation of fixed assets are re-assessed at
the end of the period, corresponding adjustment is made when any difference from the originally estimated
amount is found.
Annual
Type Depreciation term(year) Salvage value
depreciation ratio
Machinery equipment 12 5.00% 7.92%
Transportation facility 9 5.00% 10.56%
Buildings: Consistenc– Production
35 5.00% 2.71%
buildings
Buildings: Consistenc–Non-production
40 5.00% 2.38%
buildings
Buildings: Temporary buildings 9 5.00% 10.56%
Other equipment 6 5.00% 15.83%
(4) Impairment test on fixed asset and providing of impairment provision
Judging the fixed assets at each period-end for probably evidence of impairment exists.
If evidence of impairment has been found on fixed assets, evaluate its recoverable value. The recoverable value
was determined by the higher one between the amount of fair value of the fixed assets minors the net amount after
disposal expenses and the current value of predicted cash flow in future of the fixed assets.
While the recoverable amount of the fixed assets lower its carrying value, the carrying value should be reduced
counted as recoverable amount. The reduced amount recognized as impairment losses for fixed assets reckoned
into current gains and losses and withdrawal relevant impairment losses for fixed assets.
After the impairment losses being recognized, depreciation of the impairment on fixed assts should be adjusted
correspondingly in future period. And during the rest of service life, the fixed assts should be amortized the book
value of fixed assts (with predicted net salvage deducted) after adjustment systematically.
Once fixed asset impairment is recognized, it shall not be written back in subsequent fiscal periods.
When evidence showing that impairment has occurred, the recoverable value shall be assessed.
Assessment of recoverable value is based on individual asset. If the recoverable value was hard to evaluate
separately, it shall be decided along with the group of assets it belongs to.
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16. Construction in process
(1) Classification of constructions under progress
Self-constructed constructions under progress of the Company are carried at actual costs. Actual costs include the
necessary expenses for constructing such asset to the expected useable condition, including material costs for
project, labor cost, related taxes and fees paid, borrowing expenses to be capitalized and indirect costs to be
amortized. The constructions under progress of the Company are accounted for by project category.
(2) Standard and point of time for construction in process carrying forward to fixed assets
Fixed asset is booked with the entire expenditures occurred in the construction in process till it arrives at predicted
state for use. For those constructions in process of fixed assets which have already arrived at the predicted state
for use, while still with absence of completion settlement, they shall be carried forward to fixed assets at the
estimated value based on engineering budget, construction cost or actual cost commencing from the date of arrival
of the predicted state for use. Meanwhile, they shall be also subject to the depreciation policies applicable to fixed
assets of the Company for provision of depreciation. Once completion settlement is made, the original temporary
estimated value shall be adjusted at the effective cost. However, the original provision of depreciation remains
unchanged.
(3) Methods of impairment testing and provision of impairment reserve for construction in process
The Company makes judgment at end of each year on whether there is indication showing that impairment is
likely to happen in construction in process.
In case of existence of impairment indication in construction in process, the recoverable amount thereof shall be
estimated. And the recoverable amount is confirmed at fair value of construction in process less the higher of net
amount after disposal expense and present value of predicted future cash flow of such construction in process.
In the event that the recoverable amount of construction in process is lower than its carrying value, then the
carrying value shall be reduced to the recoverable amount, and the reduced part is recognized as impairment loss
of such construction in process through current gains and losses. Meanwhile, corresponding impairment reserve
for construction in process shall be provided.
Once impairment loss is recognized in construction in process, it will not be reversed in subsequent accounting
periods.
Should be there any indication showing possible impairment of one item construction in process, enterprise will
estimate its recoverable amount based on the single construction in process. If enterprise has difficulty in
estimating recoverable amount of such single construction in process, it shall turn to estimation of the recoverable
amount of the assets portfolio to which such single construction in process belongs.
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17. Borrowing expenses
(1) Recognition of the borrowing expenses capitalization
Borrowing expenses that attributed for purchasing or construction of assets that are complying with capitalizing
conditions start to be capitalized and counted as relevant assts cost; other borrowing expenses, reckoned into
current gains and losses after expenses recognized while occurred.
Assets satisfying the conditions of capitalization are those assets of fixed, investment real estate etc. which need a
long period of time to purchase, construct, or manufacturing before becoming usable.
Capitalizing for borrowing expenses by satisfying the followed at same time:
(1) Assets expense occurred, and paid as expenses in way of cash, non-cash assets transfer or debt with interest
taken for purchasing, constructing or manufacturing assets that complying with capitalizing condition;
(2) Borrowing expenses have occurred;
(3) Necessary activities occurred for reaching predicted usable statues or sale-able status for assets purchased,
constructed or manufactured.
(2) Period of capitalization
Capitalizing period was from the time star capitalizing until the time of suspended capitalization. The period for
borrowing expensed suspended excluded in the period.
If purchasing, construction, or manufacturing process of an asset satisfying the conditions of capitalization
reached its predicted usable status or sale-able status, capitalization suspended for borrowing expenses.
If purchasing, construction, or manufacturing process of an asset satisfying the conditions of capitalization
completed projects and usable independently for part of the projects, borrowing expenses for this kind of assts
shall suspended capitalization.
If the assets have been completed in every part, but can be reached the useful status or sale-able status while
completed entirely, the borrowing expense shall be suspended for capitalization while the assets completely
finished in whole.
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(3) Period of suspended
If purchasing, construction, or manufacturing process of an asset satisfying the conditions of capitalization is
suspended abnormally for over 3 months, capitalizing of borrowing expenses shall be suspended; the suspended
assets that satisfying the conditions of capitalization meets the necessary procedure of reaching predicted usable
status or sellable status, capitalizing of borrowing expenses shall be resumed. The borrowing expenses occurred
during the period of suspended shall reckon into current gains and losses until the purchasing, construction, or
manufacturing process is resumed for capitalizing.
(4) Calculation for capitalization amount
Interest expenses practically occurred at the current term of a special borrowing are capitalized after deducting of
the bank saving interest of unused borrowed fund or provisional investment gains
Capitalization amounts of common borrowings are decided by the weighted average of exceeding part of
accumulated asset expenses over the special borrowing assets multiply the capitalizing rate of common
borrowings adopted. Capitalization rates are decided by the weighted average of common borrowings.
For those expenses with discount or premium, determined the amortizable discount or premium in every fiscal
year by effective interest method, than adjusted interest amount in every period
18. Biological assets
Biological assets of the Company refer to the productive biological assets
Biological assets are recognized when the following three conditions are fully satisfied:
(1) an enterprise owns or controls such biological assets due to the past transactions or events；
(2) it may result in the inflow of economic benefits or service potential in relation to such biological assets;
(3) cost of such biological assets can be reliably measured.
Biological assets used for production are stated at cost at initial recognition. The cost of biological asset used for
production purchased from the outside includes the purchase price, related taxes, transportation expense,
insurance premium and other charges directly attributable to the purchase of such asset. Biological asset used for
production input by investors is stated at its entry value which is calculated based on the value as stipulated in the
investment contract or agreement plus the related taxes payable. Where value stipulated in the contract or
agreement is not fair, the actual cost is fixed at fair value. The cost of self-bred biological asset used for
production is determined based on the necessary expenses incurred so as to achieve the anticipated production and
operation purposes, including feed costs, labor costs and indirect costs to be allocated.
Management and protection and feed expenses of the Company’s biological assets used for production incurred
after the canopy closure or achievement of the expected production and operation purposes are charged to profit or
loss for the current period.
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Biological assets of the Company refer to the tea plants. For those productive biological assts that reached it’s
predicted productive purpose, withdrawal depreciation by average age method. The service life was determined by
the residual terms of the residual term of land use after deducting the un-maturity period (5-year) of the tea plants
with 5 percent salvage value calculated. Reviewing the service life, predicted salvage vale and depreciation
method at year-end, if there have difference between the predicted number and original estimated number or have
major changes on way of profit earning, than adjusted the service life or predicted salvage value or depreciation
method as account estimation variation.
At the balance sheet date, biological assets used for production of the Company are measured at the lower of their
carrying amount and recoverable amount, and provision for impairment is made according to the difference
between the recoverable amount and carrying amount on an individual basis. An impairment loss recognized on
the biological assets used for production shall not be reversed in a subsequent period.
Gain and disposal of biological assets: the cost of biological assets after the shift of use is stated at the carrying
amount at the time of shift of use. When sold, destroyed and inventory losses occurred, the disposal income of
biological assets net of carrying amount and related taxes shall be charged to profit or loss for the current period.
19. Intangible assets
(1) Measurement of intangible assets
(1) Intangible assets are initially measured at cost while obtained.
For those intangible assets purchased from outside, the purchase value, relevant taxes and other payments
attributable to predicted purpose obtained should recognized as cost for this assts. For those purchased amount
that paid overdue exceeded the normal credit condition, owns financing natures actually, the cost should be
recognized based on the current value while purchased
As for the intangible assets acquired from the debtor in debt restructuring for the purpose of settlement of debt, the
fair value of the intangible assets shall be based to determine the accounting value. The difference between the
carrying value of restructured debt and the fair value of the intangible assets use for settlement of debt shall be
recorded in current gains and losses.
With the preceding conditions that non-monetary assets exchange has commerce nature and the fair value of the
assets exchanged in or out can be measured reliably, the intangible assets exchanged in through non-monetary
assets exchange are accounted at the value based on the fair value of assets exchanged out, unless there is obvious
evidence showing the fair value of assets exchanged in is more reliable; for non-monetary assets exchange not
qualifying for the preceding conditions, the carrying value of assets exchanged out and related taxes payable shall
be viewed as the cost of intangible assets exchanged in, without recognition of gains and losses.
Intangible assets obtained by means of enterprise mergered under common control, recognized book-keeping
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value by the book value of mergered party; Intangible assets obtained by means of enterprise mergered under
different control, recognized book-keeping value by the its fair value.
For those cost of intangible assets development internally including: the used materials, labor cost and register
charge for development; amortization for other patent and concession used and interest expense satisfying the
capitalization condition during process of development; other directly expense before reached its predated useful
purpose.
(2) Subsequent measurement
Analysis and determined the service life for intangible assts while obtained.
Those intangible assets with limited useful life are evenly amortized on straight basis from the date when they
become useable to the end of expected useful life; for those intangible assts without limited useful life predicted,
amortized nothing due to intangible assts without certain service life.
(2) Particular about the estimation on intangible assets with limited service life
At end of report term, revising will be performed on the useful life of intangible assets with limited useful life and
the methods of amortizing.
Being revised, the useful life of intangible assets and amortization method at period-end shows the same as
previous
Item Predicted useful life Basis
Amortized the actual rest of life after certificate
Land use right Certificate of land use right
of land use right obtained
Proprietary technology 20-year Actual situation of the Company
(3) Basis for intangible assets without certain service life:
No intangible assts without certain service life has been found in the period-end for the Company.
(4) Accrual of impairment provision for intangible assets
For those intangible assets with certain service life, conducting impairment testing at period-end if there has
clearly evidence of impairment.
Concerning the intangible assets without certain service life, conducted impairment testing at every end of the
term.
Estimated the revocable amount for those intangible assets with impairment testing conducted; the recoverable
amount was determined by the higher one between the net amount resulted from fair value for intangible assets
minor disposal expenses and current value of the predicted future cash flow.
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
If the recoverable amount lower its book value, than the book value shall reckoned as recoverable amount. The
minor amount recognized as depreciation losses for intangible assets reckoned into current gains and losses. And
withdrawal relevant impairment reserves for intangible assets.
After impairment loses recognized, adjusted correspondingly in future period for depletion or amortized expenses
of intangible assets depreciated, make sure that the book value (with predicted salvage value deduction) of
intangible assets should systematically amortized after adjustment in rest of the service life of intangible assets.
Once intangible asset impairment loss was recognized, shall not be written back in subsequent fiscal periods.
When evidence showing that impairment has occurred, estimated its recoverable amount by individual assets; if
the recoverable value was hard to evaluate separately, it shall be decided along with the group of assets it belongs
to.
(5) Detail standard for classification on research stage and exploitation stage
Research stage: stage of the investigation and research activities exercising innovative-ness for new science or
technology knowledge obtained and understanding.
Exploitation stage: stage of the activities that produced new or material advance materials, devices and products
that by research results or other knowledge adoption in certain plan or design before the commercial production or
usage.
The expenditure of the research stage in R&D project internally shall reckon into current gains and losses while
occurred.
(6) Calculation on internal R&D expenses
Intangible assets recognized for expenditure in exploitation stage by satisfying the followed at same time:
(1) Owes feasibility in technology and completed the intangible assets for useful or for sale;
(2) Owes the intention for completed the intangible assets and for sale purpose;
(3) Way of profit generated including: show evidence that the products generated from the intangible assets owes
a market or owes a market for itself; if the intangible assets will use internally, than show evidence of useful-ness;
(4) Possess sufficient technique, financial resources and other resources for the development of kind of intangible
assets and has the ability for used or for sale;
(5) The expenditure attributable to the exploitation stage for intangible assets could be measured reliably.
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
20. Long-term expenses to be amortized
Long-term expense is amortized at straight line method, averagely during the beneficial period.
21. Accrual liability
(1) Recognition standards for accrual liability
Responsibilities connected to contingent issues and satisfied all of the following conditions are recognized as
accrual liabilities:
--The responsibility is a current responsibility undertaken by the Company;
-- Fulfilling of the responsibility may lead to financial benefit outflow;
-- The responsibility can be measured reliably for its value.
(2) Measurement
Accrual liabilities shall conduct initial measurement by best estimation of expenditures needed by fulfillment of
current responsibilities.
While determined the best estimation, take the risks, uncertainty and periodic value of currency that connected to
the contingent issues into consideration.
For major influence from periodic value of currency, determined best estimation after discount on future relevant
cash out-flow.
Treatment for best estimation:
If the expenditure has a continuous range, and with similar possibility within the range, the best estimation should
determined by the middle value within the range, that is the average amount between the up and low limit.
If the expenditure has no continuous range, or has a continuous range but with different possibility within the
range, the possibility amount shall determined as the best estimation while single events involved by contingency;
if many events were involved by contingency, the best estimation shall be determined by various results and
relevant probability.
If the expenses for clearing of predictive liability is fully or partially compensated by a third party, and the
compensated amount can be definitely received, it is recognized separated as asset. Though the compensated
amount shall not greater than the book value of the predictive liability
22. Income
(1) Recognition of the income from commodity sales
When main risks and rewards attached to the ownership of goods have been transferred to the buyer, reserved
neither continuous management power nor effective control over the goods, incoming payment can be measured
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
reliably, relative financial benefit possibly inflow to the company, cost occurred or will occur can be reliably
measured, sales income of goods is recognized. As for main sales in the Company, according to the arrival of
acceptance period agreed in the contract, income shall be recognized after the period expired
(2)Basis on use right income for transaction assets
Financial benefit attached to the contract is possibly inflow to the company; Overall income of the contract can be
measured reliably. Determined the use right income for transaction assts respectively as followed:
(1) Amount of interest income: determined by the time and effective interest rate of the currency capital used by
other people.
(2) Amount of income from use: determined by the charge time and calculation method agreed in the relevant
contract or agreement.
(3) Basis and methods on completion while determined income of labor provided and income of construct
contracts by percentage of completion
When the results of construct contracts can be reliably estimated, income and costs are recognized at the
percentage of completion at the balance sheet day. Percentage of completion of the construction contracts are
decided by estimation of completed work and other whole work.
Total labor income provided determined by the amount of contract or agreement received or receivable except the
un-fair contract and agreement. At balance sheet date, recognized current labor income provided by the amount
resulted from the total labor income provided multiplied by the amount of completion process after accumulative
labor income confirmed in previously accounting period deduction; meanwhile, transferred current labor cost by
amount of completion process after accumulative labor income confirmed in previously accounting period
deduction.
If the results of construction contract are not able to reliably estimated at balance sheet date, treatment as:
(1) Labor cost occurred expected to be compensated; recognized labor income by amount of labor cost occurred
and transferred labor cost at same amount.
(2) Labor cost occurred un-expected to be compensated, reckoned the labor cost occurred into current gains and
losses without labor income recognized.
23. Government grants
(1) Type
Governments grants of the Company refer to the monetary and non-monetary assets obtained from government
for free, and are divided into those related to assets and others related to revenues Government subsidies related to
assets refer to those obtained by the Company and used for purchase or construction of or otherwise to form
long-term assets. Government subsidies related to revenue refer to those other than government subsidies related to
assets.
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
(2) Accounting policy
Recognition of government subsidies: Government subsidies in the form of monetary assets are stated at the
amount received or receivable. Government subsidies in the form of non-monetary assets are measured at fair
value; if fair value cannot be obtained, a nominal amount (RMB1) is used. Government subsidies measured at
nominal amount is recognized immediately in profit or loss for the current period.
Government grants in relation to purchase of long-term assets such as fixed assets or intangible assets shall be
recognized as deferred income, and are recorded in non-operating income according to service life of such
constructed or purchased assets by installments;
Government grants in relation to revenues, shall be recognized as deferred income upon acquisition and recorded
in current non-operating income during the periods in which relevant expenses are recognized when such grants
are for the purposes of compensating relevant expenses or losses of an enterprise in future periods; and shall be
directly credited to current non-operating income upon acquisition when such grants are for the purposes of
compensating occurred relevant expenses or losses of an enterprise.
When there is reversal of the government grants recognized, if the relevant deferred income exists, such deferred
income is offset against the balance of the carrying value with the excess dealt with in the profit or loss for the
period. If the relevant deferred income does not exist, it will be directly dealt with in the profit or loss for the
period.
24. Deferred income tax assets and deferred income tax liabilities
(1) Reference for recognition of deferred income tax assets
Under the limit of the taxable income which is very likely to be obtained by the Company for use of offsetting
deductible temporary difference, the Company recognizes the deferred income tax assets arising from such
deductible temporary difference.
(2) Reference for recognition of deferred income tax liabilities
The Company recognizes taxable temporary difference of current and prior periods which should have been taxed
while not paid yet as deferred income tax liabilities, while other than the temporary differences formed from
transactions constituted by combination of goodwill and non-enterprises, meanwhile, such transactions bring no
affect on accounting profit and taxable income when happening.
25. Operating lease, finance lease
(1) Accounting treatment for operating lease
1. As lessee of operating leases, rental payments under operating leases are recognized as costs or expenses on a
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
straight-line basis over the lease term (including rent-free periods). Initial direct costs that are attributable to an
operating lease incurred by the Company are credited into expenses for the period.
When the lessor bears the lease related expenses that shall be undertaken by the Company, such expenses shall be
deducted from the rent and amortized at the net amount over the lease term and credited into expenses for the
period.
2. As lessor of operating leases, rental payment from operating leases is recognized as rental income on a
straight-line basis over the lease term (including rent-free periods). Initial direct costs in relation to lease
transaction paid by the Company are credited into expenses for the period. If with significant amount, they are
capitalized when incurred, and are recognized in revenue for the current period on the same basis as rental income
over the lease term.
When the Company bears the lease related expenses, which should be undertaken by the lessee, the Company
should deduct this part of expense from the rent income, and amortize the net amount over the lease term.
26. Changes of main accounting policy and estimation
Main accounting policy and estimation changed in the Period
□Yes √No
Accounting policy of the Company has no changed in the Period
Accounting estimation of the Company has no changed in the Period
(1) Changes of accounting policy
Accounting policy changed in the Period
□Yes √No
Accounting policy has no changed in the Period
(2) Changes of accounting estimation
Accounting estimation changed in the Period
□Yes √No
Accounting estimation has no changed in the Period
27. Correction for previous errors
Correction for previous errors occurred in the Period
□Yes √No
Correction for previous errors did not occurred in the Period
(1) Retrospective restatement
Errors with retrospective restatement being performed in the Period
□Yes √No
No errors with retrospective restatement being performed in Period
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
(2) Prospective approach
Previous accounting errors with prospective restatement being performed in the Period
□Yes √No
No previous accounting errors with prospective restatement being performed in Period
V. Taxes
1. Major taxes and rates applicable to the Company
Taxes Basis Rate
VAT Sales of goods 17%
Business tax Taxable turnover 5%
Urban maintenance and construction tax Payable turnover taxes 5%、7%
Corporate income tax Taxable income 25%、15%
Educational surtax Payable turnover taxes 5%
Rate of income tax in vary subsidiary and plants
Name of company Tax rate Note
The Company 25% ---
Shenzhen Shenbao Huacheng Technology Co., Ltd. (Shenbao Huacheng ) 15% Wholly-owned subsidiaries
Including: Shantou Branch of Shenbao Huacheng(Huacheng Shantou) 25% Branch of Shenbao Huacheng
Jufangyong Tea Industry Co., Ltd. in Wuyuan County(Wuyuan Jufangyong) 25% Wholly-owned subsidiaries
Shenzhen Shenbao Sanjing Food & Beverage Development Co., Ltd. 25% Wholly-owned subsidiaries
(Shenbao Sanjing)
Huizhou Shenbao Technologies Co., Ltd. (Huizhou Shenbao Technologies) 25% Wholly-owned subsidiaries
Shenzhen Shenbao Properties Management Co., Ltd. (Shenbao Properties) 25% Wholly-owned subsidiaries
Shenzhen Shenbao Industrial &Trade Co., Ltd. (Shenbao Industrial & Trade) 25% Wholly-owned subsidiaries
Hangzhou Jufangyong Holding Co., Ltd. (Hangzhou Jufangyong) 25% Wholly-owned subsidiaries
Fujian Mount. Wuyi Shenbao Yuxing Tea Co., Ltd. (Shenbao Yuxing) 25% Controlling subsidiary
Fuhaitang Tea Ecological Technology Co., Ltd. (Fuhaitang) 25% Controlling subsidiary
Hangzhou Chunshi Network Technology Co., Ltd. (Chunshi Network) 25% Wholly-owned subsidiaries
Shenzhen Shenbao Technology Center Co., Ltd. (Shenbao Technology 25% Wholly-owned subsidiaries
Center)
Shenzhen Shenshenbao Investment Co., Ltd. (Shenshenbao Investment) 25% Wholly-owned subsidiaries
83
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Shenbao Huacheng, a wholly-owned subsidiary of the Company, has been granted High-tech Enterprise
Certification (No. GF201144200112) jointly promulgated by Shenzhen Technology & Information Bureau,
Bureau of Finance of Shenzhen, Shenzhen Municipal Bureau of State Taxation and Shenzhen Municipal Bureau
of Local Taxation as at the date of 7 March 2012. Such certificate was released on 3 November 2011, with a valid
term of 3 years. With relevant preferential policies adopted by the State in favor of high-tech enterprises, all
qualified high-tech enterprises are able to enjoy the lower income tax rate of 15% for collection of corporate
income tax, capable for 3 years commencing from the year when they are deemed as qualified. Shenbao
Huacheng has favored from this preferential policy from 2011 to 2013. Currently Shenbao Huacheng in the
review of High and New Technology Enterprise, corporate income tax levy on 15% temporary.
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
VI. Business combination and consolidated financial statements
1. Particular about subsidiary
(1) Subsidiaries obtained by establishment or investment
In RMB
The balance after
the parent
company’s
The sum
owner’s equity
of
Other writing down the
money
balance excess of the
in
of items current loss
Plac Consol minority
constitut undertaken by
e of Nature idated equity
Subsidia Actual investment at e net Shares Voting minority
Type regis of Register capita Business scope
ratio held right ratio statem Minority equity which is
ries period-end investme shareholders of
trati business ent used to
nt in eth subsidiary
on (Y/N) write
subsidiar over the share
down
y enjoyed by
the
actually minority
minority
shareholders in
interest
the original
owners’ equity of
the subsidiary
Shenzhe Industrial investment (specific projects to be
n reported separately); information consultant, food
Wholly- Shen Manufac 153.4513
Shenbao owned technology development (not including the 168,551,781.80 100.00% 100.00% Y
zhen ture million Yuan
Huachen restrained items); import and export of goods and
g technology; production and sales of other foods
85
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Technol (Chrysanthemum extract instant powder for food
ogy Co., industry, Momordica grosvenori extract instant
Ltd. powder for food industry, HoneySuchle flowers
extract instant powder for food industry,
Composite ebony extract condensed juice, herbal
tea concentrate, herbal tea concentrate for food
industry, red date instant powder, blendimings
instant powder; Mesona instant powder, fresh
Imperata cylindrica ) ,production and sales of tea
products (instant tea)
Jufangy
Import and export trade of tea, natural plant,
ong Tea
extractive of tea and natural plant, cultivation and
Industry
Wholly- Wuy Manufac 290 million tea; agricultural and sideline products, native
Co., Ltd. 292,804,134.35 100.00% 100.00% Y
owned uan ture Yuan products, purchasing, processing and sales (for
in
special provision of goods from the State,
Wuyuan
effective certificate and licenses shall be required)
County
Shenzhe
n
Shenbao
Sanjing
Food & Wholly- Shen Manufac 30.15 million Import and export business, normal freight, whole
80,520,842.36 100.00% 100.00% Y
Beverag owned zhen ture Yuan sales of prepackaged foods
e
Develop
ment
Co., Ltd.
Huizhou Wholly- Huiz Compre 60 million Confirmed business scope in line with “National
60,000,000.00 100.00% 100.00% Y
Shenbao owned hou hensive Yuan Industrial Production License”; industrial
86
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Technol investment, property management (operated with
ogies certification only); domestic trading (excluding
Co., Ltd. the items forbidden by laws, regulations; license
are required for those items that restricted by laws
and regulations)
Shenzhe
n
Shenbao
Properti Wholly- Shen
Property 5 million Yuan Management of self-owned properties 5,000,000.00 100.00% 100.00% Y
es owned zhen
Manage
ment
Co., Ltd.
Shenzhe
n
Shenbao Commer
Wholly- Shen 5.5 million
Industria ce and Commercial wholesale 5,500,000.00 100.00% 100.00% Y
owned zhen Yuan
l& trade
Trade
Co., Ltd.
Whole sales and retail of tea sets; purchase: tea
Hangzho the enterprise need for sales (purchase from
u original manufacturer of the 1st industry directly
Jufangy Wholly- Han Compre 175 million only); service: investment and assets management
gzho 176,906,952.42 100.00% 100.00% Y
ong owned hensive Yuan of tea enterprises, technology development of tea
u
Holding and tea products, technology development of tea
Co., Ltd. cultivation and breeding, technology consultant,
technology service and results transfer
Wholly-
Shenzhe 54,676,764.11 100.00% 100.00% Y
owned Shen Develop 54 million Technology development, consultant, transfer and
87
深圳市深宝实业股份有限公司 2014 年半年度报告全文
n zhen ment, Yuan inspection service for tea, plant products, soft
Shenbao consulta drinks and foods
Technol nt and
ogy transfer
Center of
Co., Ltd. technolo
gy
Investm
ent,
Industrial investment (specific projects to be
Shenzhe consulta
reported separately); communication, promotion,
n nt,
consultant service and tea art training for tea
Shenshe trading
Wholly- Shen 50 million knowledge and culture; sales of tea sets, tea table
nbao and tea 5,000,000.00 100.00% 100.00% Y
owned zhen Yuan and root carving; cyber business, domestic trading
Investm knowled
(franchise, monopoly, exclusive control of goods
ent Co., ge and
excluded); engaged in both export and import
Ltd. culture
business (restricted projects excluded)
commun
ication
Fujian
Tea processing, tea planting, tea culture
Mount.
Tea communication, package design for tea, tea art
Wuyi Mou plantatio
Controlli nt n, 40 million training, e-ecological tea park sightseeing, sales
Shenbao 20,700,000.00 51.75% 51.75% Y 17,711,232.82
ng Wu producti Yuan of tea furniture, tea table and root carving;
Yuxing yi on and
sales Wholesales and retail of prepackaged food (tea
Tea Co.,
included) and bulk food (tea included)
Ltd.
Hangzho Manufac Green tea manufacturing, including tea products
Han
u Controlli ture and and substitute tea; wholesale and retail of
gzho 2 million Yuan 4,650,000.00 92.00% 92.00% Y 440,136.10
Fuhaitan ng process prepackaged food and bulk food. Development of
u
g Tea of tea; tea and tea products, tea breeding, development,
88
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Ecologic wholesal technology consultant, technology service and
al e and result transfer of cultivation technique,
Technol retails of sightseeing agriculture etc.
ogy Co., foods
Ltd.
Wholesa
Hangzho
le and
u
retail of Wholesale and retail of prepackaged food and
Chunshi Han
Wholly- foods, bulk foods. Technology development: CNT;
Network gzho 3 million Yuan 3,000,000.00 100.00% 100.00% Y
owned technolo wholesale and retails of tea sets, office supplies
Technol u
gy and glassware
ogy Co.,
develop
Ltd.
ment
Shenzhe
n
Shenbao
(Liaoyua
n)
Controlli Shen 2.3780 million
Industria Not operates formally 57,628.53 53.50% 53.50% Y
ng zhen Yuan
l Co.,
Ltd.
(“Shenb
ao
Liaoyua
n”)
Explanation on subsidiaries obtained by establishment or investment:
Shenzhen Shenbao (Liaoyuan) Industrial Co., Ltd.: the company has been established for a long time without officially operates, business license has been cancelled
by industrial and commerce bureau; the investment for the company has been accrual as long-term investment impairment totally. The company excluded in the
89
深圳市深宝实业股份有限公司 2014 年半年度报告全文
consolidation range of the Company in aspect of financial statement
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
2. Explanation on change of consolidation range
Explanation on change of consolidation range
1. three enterprise included in the consoldiation range in Period
(1) the Company established a wholly-owned subsidiary Shenzhen Shenshenbao Investment Co., Ltd in April
2014;
(2) Subordinate wholly-owned subsidiary Hangzhou Jufangyong acquired controlling subsidiary Hangzhou
Fuhaitang Tea Ecological Co., Ltd. in March 014;
(3) Subordinate wholly-owned subsidiary Hangzhou Jufangyong established a wholly-owned subsidiaries
Hangzhou Chunshi Network Technology Co., Ltd. in June 2014;
2. One enterprise decreased in consolidation range. The 51.72% equity of Shenshenbao Huafa, controlling
subsidiary, held by the Company was transferred.
√ Application □ Not application
Three enterprises increased in consolidation range compare with last year (period), reasons are:
(1) the Company established a wholly-owned subsidiary Shenzhen Shenshenbao Investment Co., Ltd in April
2014;
(2) Subordinate wholly-owned subsidiary Hangzhou Jufangyong acquired controlling subsidiary Hangzhou
Fuhaitang Tea Ecological Co., Ltd. in March 014;
(3) Subordinate wholly-owned subsidiary Hangzhou Jufangyong established a wholly-owned subsidiaries
Hangzhou Chunshi Network Technology Co., Ltd. in June 2014;
One enterprise decreased in consolidation range compare with last year (period), reasons are:
The 51.72% equity of Shenshenbao Huafa, controlling subsidiary, held by the Company was transferred.
3. Entities newly included in consolidate scope during the reporting period and entities ceasing to be
included in consolidate scope during the reporting period
Subsidiaries, special purposes entities, operation entity where controlling right is formed under entrusted
operation or leasing newly included in consolidation scope during the period
In RMB
Name Net assets as at period-end Net profit for the period
Shenzhen Shenshenbao Investment Co., Ltd. 50,042,083.25 42,083.25
Hangzhou Fuhaitang Tea Ecological Technology Co.,
4,456,613.83 222,856.18
Ltd.
Hangzhou Chunshi Network Technology Co., Ltd. 3,005,000.00 0.00
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
Subsidiaries, special purposes entities, operation entity where controlling right is formed under entrusted
operation or leasing ceasing to be included in consolidation scope during the period
In RMB
Net profit from the year-begin to
Name Net assets as at the disposal date
the disposal date
Zhejiang Shenshenbao Huafa Tea Co., Ltd. 66,828,214.87 0.00
Other explanation on entities newly included in consolidation scope and entities ceasing to be included in
consolidation scope:
VII. Annotation to main items of consolidated financial statements
1. Monetary fund
In RMB
Closing amount Opening amount
Item Conversion Conversion
Foreign currency In RMB Foreign currency In RMB
rate rate
Cash: -- -- 160,480.66 -- -- 181,781.97
RMB -- -- 156,013.60 -- -- 177,356.99
HKD 4,860.00 0.79375 3,857.63 4,860.00 0.7862 3,821.08
USD 99.05 6.1528 609.43 99.05 6.0969 603.90
Bank savings: -- -- 341,730,505.91 -- -- 257,547,160.08
RMB -- -- 341,556,502.74 -- -- 251,367,585.11
HKD 93,767.77 0.79375 74,428.17 62,496.46 0.7862 49,136.59
USD 16,183.69 6.1528 99,575.00 1,005,500.89 6.0969 6,130,438.38
Other monetary fund: -- -- 500,000.00 -- -- 500,000.00
RMB -- -- 500,000.00 -- -- 500,000.00
Total -- -- 342,390,986.57 -- -- 258,228,942.05
Separate explanation is required for accounts with restricted application purposes, deposited overseas and of
potential recovery risks arising from pledge, mortgage or frozen:
The restricted monetary fund details are as follows:
Item Closing balance Opening balance
Guarantee deposit 500,000.00 500,000.00
Total 500,000.00 500,000.00
While prepare the cash flow statement, the money has deducted from the cash and cash equivalents at period-end
92
深圳市深宝实业股份有限公司 2014 年半年度报告全文
2. Transaction financial assets
(1) Transaction financial assets
In RMB
Item Closing fair value Opening fair value
Transactional equity instrument investment 1,532,585.34 1,389,288.09
Total 1,532,585.34 1,389,288.09
3. Accounts receivable
(1) Account receivable classified according to types
In RMB
Closing amount Opening amount
Type Book balance Bad debt provision Book balance Bad debt provision
Amount Ratio Amount Ratio Amount Ratio Amount Ratio
Account receivable withdrawal bad debt provision by group
Aging of accounts 54,785,693.27 73.86% 719,147.29 1.31% 107,383,248.43 84.70% 719,147.29 0.67%
Group subtotal 54,785,693.27 73.86% 719,147.29 1.31% 107,383,248.43 84.70% 719,147.29 0.67%
Accounts
receivables with
single minor
amount but with 19,391,001.77 26.14% 19,391,001.77 100.00% 19,391,001.77 15.30% 19,391,001.77 100.00%
bad debts
provision accrued
individually
Total 74,176,695.04 -- 20,110,149.06 -- 126,774,250.20 -- 20,110,149.06 --
Explanation on type of account receivables
Receivables refers to account receivable and other account receivable
The Company realizes bad debt under the following standards: ①due to withdrawal, bankruptcy or death of
debtor, debt can not be recovered or insufficient cash flow after settlement with the bankruptcy property or
heritage; ②debtor can’t perform his debt obligations within the time limit, and there is obvious characteristics
showing that the debt can’t be recovered. As for the account receivables where there is obvious evidence showing
that it is impossible to recover the same, the account receivables shall be realized as bad debt losses, and the bad
debt reserve provided shall be written off accordingly.
The Company calculates the possible bad debt loss by allowance method.
1. Account receivables with significant amount of single item and bad debt reserve provided item by item
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
Standards for realization of account receivables with significant amount of single item and bad debt reserve
provided item by item:
Specific standards for single item with significant amount: account for 10% (10% included) of the balance of
account receivables.
Provision method for bad debt reserve of account receivables with significant amount of single item: conduct
impairment test individually, provide bad debt reserve based on the difference between the present value of
predicted future cash flow and its carrying value, and recorded in current gains and losses. For those receivables
without impairment occurred, included in corresponding group for bad debt provision accrual.
2. Account receivables with bad debt reserve provided under groups
(1) The group belongs to account receivables which are not impaired after individual test.
(2) The group withdrawal bad debt provision in way of age analysis
Age Withdrawal proportion of account Withdrawal proportion of other account
receivable receivable
Within one year (one year included) 0% 0%
1－2 years 5% 5%
2－3 years 10% 10%
Over 3 years 15% 15%
3. Account receivables without significant amount of single item and bad debt reserve provided item by
item
Reasons for provision of bad debt reserve individually: there is objective evidence showing it maybe impaired.
For example, due to withdrawal, bankruptcy or death of debtor, debt can not be recovered or insufficient cash flow
after settlement with the bankruptcy property or heritage.
Provision method of bad debt reserve: as for the account receivables which maybe impaired proven by objective
evidence, the account shall be separated from the related group and experience individual impairment test, and
realize impairment losses.
Account receivable with single major amount and withdrawal bad debt provision for single item at period-end
□ Application √ Not application
In the combination, account receivable withdrawal bad debt provision by age combination
√ Application □ Not application
In RMB
Closing amount Opening amount
Age Book balance Book balance
Bad debt provision Bad debt provision
Amount Ratio Amount Ratio
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
Within 1 year
Including: -- -- -- -- -- --
Within 1 year
49,021,606.25 66.10% 101,619,161.41 80.15%
subtotal
1-2years 1,056,675.26 1.42% 52,833.77 1,056,675.26 0.83% 52,833.77
2-3years 795,964.83 1.07% 79,596.48 795,964.83 0.63% 79,596.48
Over 3 years 3,911,446.93 5.27% 586,717.04 3,911,446.93 3.09% 586,717.04
3-4years 148,429.72 0.20% 22,264.46 148,429.72 0.12% 22,264.46
4-5years 268,996.21 0.36% 40,349.43 268,996.21 0.21% 40,349.43
Over 5 years 3,494,021.00 4.71% 524,103.15 3,494,021.00 2.76% 524,103.15
Total 54,785,693.27 -- 719,147.29 107,383,248.43 -- 719,147.29
In combination, withdrawal proportion of bad debt provision based on balance proportion: account receivable
□ Application √ Not application
In combination, withdrawal proportion of bad debt provision based on other methods: account receivable
□ Application √ Not application
Accounts receivables with single minor amount but with bad debts provision accrued individually at period-end
√ Application □ Not application
In RMB
Account receivable Book balance Bad debt provision Withdrawal proportion Reasons
Account receivable with
over 3 years of minor 19,391,001.77 19,391,001.77 100.00% Minor possibility recover
possibility recovery
Total 19,391,001.77 19,391,001.77 -- --
(2) Account receivables due from the shareholders holding 5% or above voting shares of the Company
during the reporting period
In RMB
Closing amount Opening amount
Name of the unit Bad debt amount Bad debt amount
Book balance Book balance
withdrawal withdrawal
Shenzhen Agricultural Products
57,915.00 75,426.00
Co., Ltd.
Total 57,915.00 75,426.00
(3) The top 5 account receivables
In RMB
Name of the unit Relationship Amount Term Proportion in total
95
深圳市深宝实业股份有限公司 2014 年半年度报告全文
account receivable
Customers I Non-related party 7,754,777.16 Within 1 year 10.45%
Customers II Non-related party 3,749,332.00 Within 1 year 5.05%
Customers III Non-related party 2,073,980.00 Within 1 year 2.80%
Customers IV Non-related party 1,691,741.51 Within 1 year 2.28%
Customers V Non-related party 1,644,518.40 Within 1 year 2.22%
Total -- 16,914,349.07 -- 22.80%
(4) Account receivable from related parties
In RMB
Proportion in total account
Name of the unit Relationship Amount
receivable
Shenzhen Agricultural The first majority shareholder of
57,915.00 0.08%
Products Co., Ltd. the Company
Total -- 57,915.00 0.08%
4. Other receivables
(1) Other account receivable classified according to categories
In RMB
Closing amount Opening amount
Type Book balance Bad debt provision Book balance Bad debt provision
Amount Ratio Amount Ratio Amount Ratio Amount Ratio
Other receivable of bad debt provision withdrawal by combination
Aging of accounts 25,894,299.40 59.56% 2,609,112.70 10.08% 25,112,996.31 58.82% 2,609,112.70 10.39%
Group subtotal 25,894,299.40 59.56% 2,609,112.70 10.08% 25,112,996.31 58.82% 2,609,112.70 10.39%
Other account
receivable with
single minor amount
17,584,990.00 40.44% 17,584,990.00 100.00% 17,584,990.00 41.18% 17,584,990.00 100.00%
but withdrawal bad
debt provision for
single item
Total 43,479,289.40 -- 20,194,102.70 -- 42,697,986.31 -- 20,194,102.70 --
Explanation on type of other account receivables
Account receivables represent account receivables and other receivables.
The Company realizes bad debt under the following standards: ①due to withdrawal, bankruptcy or death of
debtor, debt can not be recovered or insufficient cash flow after settlement with the bankruptcy property or
heritage; ②debtor can’t perform his debt obligations within the time limit, and there is obvious characteristics
96
深圳市深宝实业股份有限公司 2014 年半年度报告全文
showing that the debt can’t be recovered. As for the account receivables where there is obvious evidence showing
that it is impossible to recover the same, the account receivables shall be realized as bad debt losses, and the bad
debt reserve provided shall be written off accordingly.
The Company calculates the possible bad debt loss by allowance method.
1. Account receivables with significant amount of single item and bad debt reserve provided item by item
Standards for realization of account receivables with significant amount of single item and bad debt reserve
provided item by item:
Specific standards for single item with significant amount: account for 10% (10% included) of the balance of
account receivables.
Provision method for bad debt reserve of account receivables with significant amount of single item: conduct
impairment test individually, provide bad debt reserve based on the difference between the present value of
predicted future cash flow and its carrying value, and recorded in current gains and losses. For those receivables
without impairment occurred, included in corresponding group for bad debt provision accrual.
2. Account receivables with bad debt reserve provided under groups
(1) The group belongs to account receivables which are not impaired after individual test.
(2) The group withdrawal bad debt provision in way of age analysis
Age Withdrawal proportion for accounts Withdrawal proportion for other
receivable receivable
Within one year (one year included) 0% 0%
1－2 years 5% 5%
2－3 years 10% 10%
Over 3 years 15% 15%
3. Account receivables without significant amount of single item and bad debt reserve provided item by
item
Reasons for provision of bad debt reserve individually: there is objective evidence showing it maybe impaired.
For example, due to withdrawal, bankruptcy or death of debtor, debt can not be recovered or insufficient cash flow
after settlement with the bankruptcy property or heritage.
Provision method of bad debt reserve: as for the account receivables which maybe impaired proven by objective
evidence, the account shall be separated from the related group and experience individual impairment test, and
realize impairment losses.
Other account receivable with single major amount and withdrawal bad debt provision for single item at
period-end
□ Application √ Not application
In combination, accounts whose bad debts provision was accrued by age analysis: other account receivable
97
深圳市深宝实业股份有限公司 2014 年半年度报告全文
√ Application □ Not application
In RMB
Closing amount Opening amount
Age Book balance Book balance
Bad debt provision Bad debt provision
Amount Ratio Amount Ratio
Within 1 year
Including:
Within 1 year
7,502,723.40 17.26% 6,721,420.31 15.74%
subtotal
1-2years 969,291.22 2.23% 48,464.56 969,291.22 2.27% 48,464.56
2-3years 1,053,891.39 2.42% 105,389.14 1,053,891.39 2.47% 105,389.14
Over 3 years 16,368,393.39 37.65% 2,455,259.00 16,368,393.39 38.34% 2,455,259.00
3-4years 4,410,151.72 10.14% 661,452.22 4,410,151.72 10.34% 661,452.22
4-5years 2,469,415.86 5.68% 1,330,842.92 2,469,415.86 5.78% 1,330,842.92
Over 5 years 9,488,825.81 21.82% 462,893.33 9,488,825.81 22.22% 462,893.33
Total 25,894,299.40 -- 2,609,112.70 25,112,996.31 -- 2,609,112.70
In combination, withdrawal proportion of bad debt provision based on balance proportion: other account
receivable
□ Application √ Not application
In combination, withdrawal proportion of bad debt provision based on other methods: other account receivable
□ Application √ Not application
Other account receivable with single minor amount but withdrawal bad debt provision for single item at
period-end
√ Application □ Not application
In RMB
Other account receivable Book balance Bad debt provision Withdrawal proportion Reasons
Other account receivable Formed due to history
17,584,990.00 17,584,990.00 100.00%
with over 3 years reasons, hard to recover
Total 17,584,990.00 17,584,990.00 -- --
(2) No other account receivables due from the shareholders holding 5% or above voting shares of the
Company during the reporting period
(3) The top 5 other account receivables
In RMB
Name of the unit Relationship Amount Term Portion in total other
98
深圳市深宝实业股份有限公司 2014 年半年度报告全文
receivables
Changzhou Sanjing Oil Co., 1-3 years and over 3
Related party 18,268,423.34 42.02%
Ltd. years
Shenzhen Jinsailong
Non-related party 300,000.00 Over 3 years 0.69%
Equipment Company
Management committee of
Industry Part of Wuyuan Non-related party 256,296.20 Over 3 years 0.59%
County
Hangzhou Sangao Tea
Non-related party 208,536.78 Over 3 years 0.48%
Industry Company
Tea Garden Non-related party 200,326.72 Within 1 year 0.46%
Total -- 19,233,583.04 -- 44.24%
(4) Other receivables due from related parties
In RMB
Name of the unit Relationship Amount Portion in total other receivables
Changzhou Sanjing Oil Co.,
Affiliated company 18,268,423.34 42.02%
Ltd.
Total -- 18,268,423.34 42.02%
5. Account paid in advance
(1) Aging analysis
In RMB
Closing amount Opening amount
Age
Amount Ratio Amount Ratio
Within 1 year 11,398,048.79 97.33% 19,304,913.09 98.40%
1-2years 77,087.75 0.66% 77,087.75 0.39%
2-3years 195,397.64 1.67% 195,397.64 1.00%
Over 3 years 40,280.80 0.34% 40,280.80 0.21%
Total 11,710,814.98 -- 19,617,679.28 --
（2）The top 5 units in account paid in advance
In RMB
Name of the unit Relationship Amount Term Reasons for outstanding
Customers I Non-related party 1,398,000.00 Within 1 year Account paid in advance
99
深圳市深宝实业股份有限公司 2014 年半年度报告全文
for equipment
Amount of steam will
Customers II Non-related party 1,250,000.00 1-2 years deduct in later period
every month successively
Account paid in advance
Customers III Non-related party 1,197,250.00 Within 1 year
for equipment
Project reconstruction
Customers IV Non-related party 400,000.00 1-2 years
uncompleted
Earnest money paid in
Customers V Non-related party 327,000.00 Within 1 year
advance
Total -- 4,572,250.00 -- --
(3) Explanation on account paid in advance
6. Inventory
(1) Classification
In RMB
Closing amount Opening amount
Item Depreciation Depreciation
Book balance Book value Book balance Book value
provision provision
Raw materials 53,601,330.30 3,597,264.60 50,004,065.70 42,491,527.68 3,597,264.60 38,894,263.08
Product in process 37,532,821.74 37,532,821.74 19,416,441.85 19,416,441.85
Stock products 39,651,444.20 897,597.70 38,753,846.50 36,343,254.92 897,597.70 35,445,657.22
Wrappage 9,900,389.26 9,900,389.26 4,229,410.85 4,229,410.85
Goods delivered 5,244,842.26 5,244,842.26 4,111,657.13 4,111,657.13
OEM material 5,436,785.21 5,298,011.68 138,773.53 5,373,084.21 5,298,011.68 75,072.53
Low-value
528,858.95 528,858.95 618,278.69 618,278.69
consumption goods
Development costs 208,021,326.12 208,021,326.12 202,784,064.05 202,784,064.05
Total 359,917,798.04 9,792,873.98 350,124,924.06 315,367,719.38 9,792,873.98 305,574,845.40
(2) Inventory impairment provision
In RMB
Book-balance as at Provision for this Decrease during this period Book-balance as at
Kinds of inventories
period-begin period Reversal Written-off period-end
100
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Raw materials 3,597,264.60 3,597,264.60
Stock products 897,597.70 897,597.70
OEM material 5,298,011.68 5,298,011.68
Total 9,792,873.98 9,792,873.98
(3) Inventory falling price reserves
Proportion of the reversal
Accrual basis for inventory Reason for reversal during the amount during the year in the
Item
impairment provision period period-end balance of the
inventory (%)
Net realizable value lower than
Raw materials
the cost
Net realizable value lower than
Stock products
the cost
Entrust materials for handing Net realizable value lower than
over a completed project the cost
Explanation on inventory
No capitalization of borrowing costs that reckoned in cost of inventory in the Period
7. Other current assets
In RMB
Item Closing amount Opening amount
Input VAT ready for deduction 6,354,131.39 2,835,640.51
Total 6,354,131.39 2,835,640.51
Explanation on other current assets
Input VAT ready for deduction transfer to other current assets for listing at period-end
8. Investment for affiliated enterprise and joint ventures
In RMB
Proportion
Proportion of Total operati
Invested of shares Total assets at Total liabilities Total net assets Net profit in this
voting right to ng income in
company held to the period-end at period-end at period-end period
the Company this period
Company
I. Joint-venture
II. Affiliated enterprise
Changzhou 33.00% 33.00% 10,966,004.92 28,754,512.74 -17,788,507.82 246,480.00 -1,303,581.14
101
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Sanjing Oil
Co., Ltd.
9. Long-term equity investment
(1) Details of long-term equity investment
In RMB
Explana
Pro
tion on
visi
the
on
incongr
res Cas
Proport uity in
Shares erv h
ion of share
proporti e divi
Calcul Ch voting holding
Opening on held Impairment wit den
Invested unit ation Investment cost ang Closing balance rights proporti
balance in provision hdr d
method es held in on and
investe aw this
investe voting
d unit al peri
d unit proporti
in od
on in
this
invested
peri
compan
od
y
Shenzhen
Shenbao
Equity 2,870,000.00 2,870,000.00 2,870,000.00 49.14% 49.14% 2,870,000.00
(Xinmin) Foods
Co., Ltd.*1
Changzhou
Sanjing Oil Co., Equity 13,500,000.00 33.00% 33.00%
Ltd.*2
Shenzhen Sanjiu
Weitai Holdings Cost 2,480,000.00 2,480,000.00 2,480,000.00 0.95% 0.95% 2,480,000.00
Co., Ltd.
Shenzhen Tianji
Optical-Electric
Cost 15,000,000.00 15,000,000.00 15,000,000.00 3.77% 3.77% 15,000,000.00
Technologies
Co., Ltd.*3
Shenzhen
Shenbao
(Liaoyuan) Cost 57,628.53 57,628.53 57,628.53 53.50% 53.50% 57,628.53
Industrial Co.,
Ltd*1
102
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Beijing Tiantan
Holdings Co., Cost 57,500.00 57,500.00 57,500.00
Ltd *4
Total -- 33,965,128.53 20,465,128.53 20,465,128.53 -- -- -- 20,407,628.53
10. Fixed assets
(1) Particular about fixed assets
In RMB
Book balance at Decrease during this Book balance at
Item Increase during this period
period-begin period period-end
I. Total of book balance 427,736,966.69 10,130,454.91 10,822,303.77 427,045,117.83
Including: House &
206,270,686.25 1,194,290.21 9,070,520.40 198,394,456.06
buildings
Machinery
205,498,224.76 8,307,597.47 1,244,656.49 212,561,165.74
equipment
Transportation tools 7,518,428.45 214,857.99 440,585.00 7,292,701.44
Other equipment 8,449,627.23 413,709.24 66,541.88 8,796,794.59
Book balance at Increase during Accrual in this Decrease during this Book balance at
--
period-begin this period period period period-end
II. Total accumulated
116,869,128.52 11,500,244.58 470,007.49 127,899,365.61
depreciation
Including: House &
17,782,431.21 3,712,481.99 261,121.12 21,233,792.08
buildings
Machinery
92,435,406.08 6,811,706.31 6,851.25 99,240,261.14
equipment
Transportation tools 3,142,599.37 317,198.46 197,741.52 3,262,056.31
Other equipment 3,508,691.86 658,857.82 4,293.60 4,163,256.08
Book balance at Book balance at
-- --
period-begin period-end
III. Total net value of fixed
310,867,838.17 -- 299,145,752.22
assets
Including: House &
188,488,255.04 -- 177,160,663.98
buildings
Machinery
113,062,818.68 -- 113,320,904.60
equipment
Transportation tools 4,375,829.08 -- 4,030,645.13
Other equipment 4,940,935.37 -- 4,633,538.51
-- 2,647,112.69
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
IV. Total of impairment
2,647,112.69 -- 2,647,112.69
provision
Machinery
2,647,112.69 -- 2,647,112.69
equipment
Other equipment --
V. Total book value of fixed
308,220,725.48 -- 296,498,639.53
assets
Including: House &
188,488,255.04 -- 177,160,663.98
buildings
Machinery
110,415,705.99 -- 110,673,791.91
equipment
Transportation tools 4,375,829.08 -- 4,030,645.13
Other equipment 4,940,935.37 -- 4,633,538.51
Depreciation in this period amounts to 11,500,244.58 Yuan
(2) Fixed assets without un-completed property certificates
Item Reasons for un-completed certificate Times expected for certificate completed
To manage it after the new plan comes out
Dormitory of the Shantou Branch of
New plan for aged district and the company had been in the
Shenbao Huacheng processing.
Explantion on fixed assets:
Among the ending balance, the original value of fixed assets used for bank pledge was RMB30,567,419.75, and
the net value was RMB22,979,797.52. as for this pledge, the Company pledged No. 1# and 2# factories located at
He’ao village, Henggang town, Longgang district Shenzhen to Shenzhen Branch of Shanghai Pudong
Development Bank, in order to apply for comprehensive credit loan of RMB 80 million. the terms from 13 March
2013 to 12 March 2016
11. Construction in process
(1) Particular about construction in process
In RMB
Closing amount Opening amount
Item Provision Provision
Book balance Carrying value Book balance Carrying value
reserve reserve
Shenbao Plaza project 3,842,333.64 3,842,333.64 3,842,333.64 3,842,333.64
Comprehensive investment
project of tea industry 10,137,523.16 10,137,523.16 2,677,627.91 2,677,627.91
chain(the new factory project)
Production line of Huizhou
3,876,759.83 3,876,759.83 4,615,363.66 4,615,363.66
Technology Lile package
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
Equipment ready for setup of
282,889.56 282,889.56 251,449.56 251,449.56
Shenbao Technology Center
New finished product
warehouse of Phase II project 5,207,041.78 5,207,041.78 1,977,535.00 1,977,535.00
of Huizhou Technology
Nanshan office building 84,451,219.00 84,451,219.00 84,247,219.00 84,247,219.00
Other 903,189.74 903,189.74 903,189.74 903,189.74
Total 108,700,956.71 4,745,523.38 103,955,433.33 98,514,718.51 4,745,523.38 93,769,195.13
(2) Changes of major projects under construction
In RMB
Interes
Proporti Includin
Transf Accumu t
on of g: Capi
lated
erred interest capital
Item Increase during Other project Progre amount capitaliz tal
Budget Opening amount to of ization Closing amount
this period decrease investme ss interest ed sour
fixed amount rate of
nt in capitaliz ce
of the
assets ation the
budget year
year
Compr
ehensi
ve
invest
ment part of
Rais
project the
ed
of tea 150,000,000.00 2,677,627.91 8,055,173.25 595,278.00 91.17% project 10,137,523.16
proc
industr compl
eeds
y eted
chain(
new
factory
)
Total 150,000,000.00 2,677,627.91 8,055,173.25 595,278.00 -- -- -- -- 10,137,523.16
(3) Construction in process impairment provision
In RMB
Increase during this Decrease during this
Item Opening amount Closing amount Accrual Reason
period period
Shenbao Plaza
3,842,333.64 3,842,333.64
project
Other 903,189.74 903,189.74
105
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Total 4,745,523.38 4,745,523.38 --
(4) Progress of material construction in progress
Item Progress Note
Comprehensive investment project of tea
Part of the project completed
industry chain(the new factory project)
(5) Explanation on construction in progress
1. According to the condition of recoverable amount lower than the carrying value in aspect of construction in
progress, coresponding impairment for construction in progress was withdrawal at period-end
2. There is no capitalization of borrowing costs in closing balance of construction in progress
12. Productive biological assets
(1) Measured by cost
In RMB
Book balance at Increase during this Book balance at
Item Decrease during this period
period-begin period period-end
I. Farming industry
Tea plant 436,156.00 436,156.00
II. Animal husbandry and aquaculture
III. Forestry
IV. Aquatic
Total 436,156.00 436,156.00
13. Intangible assets
(1) Particular about intangible assets
In RMB
Book balance at Book balance at
Item Increased in the period decreased in the period
period-begin period-end
I. Total original value 235,971,181.27 7,215,581.58 13,874,682.00 229,312,080.85
Land use right 176,719,514.87 7,187,415.16 13,874,682.00 170,032,248.03
Proprietary technology 36,043,702.21 28,166.42 36,071,868.63
Use right of forest 15,599,089.65 15,599,089.65
Right to use a trademark 5,065,349.61 5,065,349.61
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
Software license 2,543,524.93 2,543,524.93
II. Total accumulated
30,230,264.74 3,362,054.19 356,464.16 33,235,854.77
amortization
Land use right 15,251,513.85 1,797,400.56 356,464.16 16,692,450.25
Proprietary technology 13,946,099.68 986,192.67 14,932,292.35
Use right of forest 722,728.56 162,148.74 884,877.30
Right to use a trademark 256,932.55 257,341.91 514,274.46
Software license 52,990.10 158,970.31 211,960.41
III. Total net book value of
205,740,916.53 3,853,527.39 13,518,217.84 196,076,226.08
intangible assets
Land use right 161,468,001.02 5,390,014.60 13,518,217.84 153,339,797.78
Proprietary technology 22,097,602.53 -958,026.26 21,139,576.28
Use right of forest 14,876,361.09 -162,148.74 14,714,212.35
Right to use a trademark 4,808,417.06 -257,341.91 4,551,075.15
Software license 2,490,534.83 -158,970.31 2,331,564.52
Land use right
Proprietary technology
Use right of forest
Right to use a trademark
Software license
Total of intangible asset book
205,740,916.53 3,853,527.39 13,518,217.84 196,076,226.08
value
Land use right 161,468,001.02 5,390,014.60 13,518,217.84 153,339,797.78
Proprietary technology 22,097,602.53 -958,026.26 21,139,576.28
Use right of forest 14,876,361.09 -162,148.74 14,714,212.35
Right to use a trademark 4,808,417.06 -257,341.91 4,551,075.15
Software license 2,490,534.83 -158,970.31 2,331,564.52
Amortization in the Period amounting as 3,362,054.19 Yuan
(2) Expenditure of development project
In RMB
Decreased
Item Opening amount Increased Intangible assets Closing amount
Current gains/losses
confirmed
Project I 88,621.07 88,621.07
107
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Project II 14,718.82 14,718.82
Project III 495,334.41 495,334.41
Project IV 52.03 52.03
Project V 205,358.58 205,358.58
Project VI 224,894.50 224,894.50
Project VII 220,117.24 220,117.24
Project VIII 468,270.29 468,270.29
Project IX 3,472.78 3,472.78
Project X 134,679.65 134,679.65
Project XI 87,100.18 87,100.18
Project XII 87,501.96 87,501.96
Project XIII 85,376.32 85,376.32
Project XIV 93,379.98 93,379.98
Project XV 28,166.41 28,166.41 0.00
Project XVI 577,153.91 164,268.93 741,422.84
Total 577,153.91 2,401,313.15 28,166.41 2,950,300.65
The expenditure for development in the Period occupied 100% in total expenses of R&D
The intangible assets from internal R&D occupied 0.01% in closing book value of the intangible assets
Explanation on development project: as for the amount with over one million Yuan occurred in the period and
accounted based on evaluation value, disclosed the evaluation institution and methods
14. Long-term deferred expense
In RMB
Amortization
Increased in the Reasons for other
Item Opening amount during this Other decrease Closing amount
period decreased
period
Decoration charge for
1,881,583.99 2,992,772.89 410,532.88 4,463,824.00
office rented-in
Project of
maintenance reform
on canned warehouse 1,239,312.77 222,492.81 1,016,819.96
and waste tea house of
Shenbao Huacheng
Affiliated project of
resident area in 723,865.33 90,417.88 633,447.45
Jufangyong Wuyuan
108
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Reform of tea park in
299,573.17 46,151.09 253,422.08
Wuyuan
Reform project of
2,557,312.28 149,196.59 279,038.95 2,427,469.92
warehouse and swage
Lease of workshop
1,595,637.64 365,109.66 1,635,257.69 325,489.61
and office building
Supporting project of
73,485.48 693,880.27 85,239.05 682,126.70
plant area
Other 598,909.90 1,153,396.23 636,088.27 1,116,217.86
Total 8,969,680.56 5,354,355.64 3,405,218.62 10,918,817.58 --
15. Deferred income tax assets and deferred income tax liabilities
(1) Net amount of deferred income tax assets and deferred income tax liabilities before deduction
Recognized deferred income tax assets and deferred income tax liabilities
In RMB
Item Closing amount Opening amount
Deferred income tax assets:
Impairment provision for assets 2,613,443.80 2,613,443.80
Income from changes of fair value 115,924.08 16,589.84
Subtotal 2,729,367.88 2,630,033.64
Deferred income tax liability:
Assessment appreciation from equity acquisition 1,300,508.81
Subtotal 1,300,508.81
Details of uncertain deferred income tax assets
In RMB
Item Closing amount Opening amount
Difference of temporary deductible 67,230,543.32 67,230,543.32
Losses deductible 59,169,544.63 34,058,166.22
Total 126,400,087.95 101,288,709.54
(2) Net amount of deferred income tax assets and deferred income tax liabilities after deduction
The grouped project of deferred income tax assets or liabilities after deduction
In RMB
Deductible or taxable
Deferred income tax Deferred income tax Deductible or taxable
temporary differences
assets or liabilities after assets or liabilities after temporary differences after
Item after deduction at the end
deduction at the end of deduction at the begin deduction at the begin of the
of the reporting
the reporting of the reporting reporting
109
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Deferred income tax
2,729,367.88 2,630,033.64
assets
Deferred income tax
1,300,508.81
liability
16. Details of asset impairment provision
In RMB
Balance as at Increase during this Decrease during this period Balance as at
Item
period-begin period Reversal Written-off period-end
I. Bad debt provision 40,304,251.76 40,304,251.76
II. Inventory impairment
9,792,873.98 9,792,873.98
provision
V. Long-term equity
investment impairment 20,407,628.53 20,407,628.53
provision
VII. Fixed asset impairment
2,647,112.69 2,647,112.69
provision
IX. Impairment provision for
4,745,523.38 4,745,523.38
construction materials
Total 77,897,390.34 77,897,390.34
17. Short-term loans
(1) Type of Short-term Loans
In RMB
Item Closing amount Opening amount
Ensure loans 90,000,000.00
Total 90,000,000.00
18. Account payables
(1) Particular about account payables
In RMB
Item Closing amount Opening amount
Within 1 year 21,873,165.40 25,942,875.26
Within 1 to 2 years 5,133,867.64 5,133,867.64
Within 2 to 3 years 20,419.10 20,419.10
Over 3 years 2,363,646.35 2,363,646.35
Total 29,391,098.49 33,460,808.35
110
深圳市深宝实业股份有限公司 2014 年半年度报告全文
(2)Statement of large accounts payable with age over 1 year
Name of the unit Amount Reason of not caring forward
Customer I 518,655.52 Whether need to pay with uncertainty
Customer II 515,892.30 Whether need to pay with uncertainty
Total 1,034,547.82
19. Account received in advance
(1) Particular about account received in advance
In RMB
Item Closing amount Opening amount
Within 1 year 88,914,636.14 13,955,504.00
More than one year and less than two years 420,000.00 420,000.00
More than two years and less than three years 109,940.50 109,940.50
Over 3 years 735,406.45 735,406.45
Total 90,179,983.09 15,220,850.95
20. Wages payable
In RMB
Balance as at Decrease during this Balance as at
Item Increase during this period
period-begin period period-end
I. Wage, bonus, allowance and
8,237,383.64 24,127,023.86 27,875,855.47 4,488,552.03
subsidy
II. Employees’ welfare 3,664,842.18 3,664,842.18
III. Social security 240,857.95 3,257,794.18 3,204,080.80 294,571.33
Including: medical insurance
24,277.58 778,190.84 758,634.97 43,833.45
premiums
Endowment insurance premium 209,340.25 2,183,184.65 2,156,586.46 235,938.44
Unemployment insurance expense 4,227.16 154,826.34 149,746.84 9,306.66
Industry injury insurance
949.05 87,476.15 87,044.45 1,380.75
premium
Birth insurance premium 2,063.91 54,116.20 52,068.08 4,112.03
IV. Housing public reserve 1,625,206.90 1,625,206.90
V. Compensation from labor
158,644.10 39,940.00 39,940.00 158,644.10
relationship dismissed
VII.Trade union fee and education 916,407.25 787,311.89 907,047.42 796,671.72
111
深圳市深宝实业股份有限公司 2014 年半年度报告全文
fee
Total 9,553,292.94 33,502,119.01 37,316,972.77 5,738,439.18
The arrears in wages payable was 0 Yuan
Labor union expenses and staff educational expenses amounting to 796,671.72 Yuan; non-monetary welfare
amounting to RMB 0 and compensation for dismiss of labor relationship amounting to 158,644.10 Yuan.
21. Tax payable
In RMB
Item Closing amount Opening amount
Business tax -3,440,028.90 36,978.05
Corporate income tax 552,253.70 14,556,810.51
Individual income tax 152,283.26 123,369.58
Urban maintenance and construction tax -255,660.66 14,226.87
Housing property tax 148,805.38 47,440.64
Embankment fee 45,451.94 53,344.27
Educational surtax -183,850.96 8,925.86
Use tax of land 53,201.87 25,000.13
Land VAT -1,555,044.06
Other tax fee 75,450.13 140,006.43
Total -4,407,138.30 15,006,102.34
22. Dividend payable
In RMB
Name of the unit Closing amount Opening amount Reasons for un-payment over one year
Shares without trusted 218,212.60 218,212.60
Shenzhen Investment Original largest shareholder, formed from
2,690,970.14 2,690,970.14
Management Co., left-over of historical guarantee
Total 2,909,182.74 2,909,182.74 --
23. Other payables
(1) Particular about other payables
In RMB
Item Closing amount Opening amount
Within 1 year 72,862,147.13 86,632,457.69
More than one year and less than two years 76,544,967.60 76,544,967.60
112
深圳市深宝实业股份有限公司 2014 年半年度报告全文
More than two years sand less than three years 5,318,157.41 5,318,157.41
Over 3 years 64,562,912.32 64,562,912.32
Total 219,288,184.46 233,058,495.02
(2) Explanation on major other account payable
Name of the unit Amount Nature or content Age
Shenzhen Jitai Industrial Development Co., Ltd.* 179,827,654.20 Shenbao Building 1-4 years
project
Shenzhen Jitai Jianan Engineering Co., Ltd. 13,555,842.36 Shenbao Building Within 1 year
project
Zhongtai Construction Group Co., Ltd. 3,920,200.00 Shenbao Building Within 1 year
project
Shenzhen Yuezhong (Group) Co., Ltd. 2,051,923.58 Final payment of Within 1 year
construction in progress
Foshan Xintailong Enviornment Equpment Manufacture 1,706,085.50 Final payment of Within 1 year
Co., Ltd. construction in progress
Total 201,061,705.64
* The Company carried out project development with Shenzhen Jitai Industrial Development Co., Ltd. in aspect
of the 2,776.80 M2 lands (Land No.: H307-0018) locates at Wenjin North Road, Luohu District, Shenzhen;
according to the Cooperation Agreement of Construction Project, the whole capital for investment will contribute
by Shenzhen Jitai Industrial Development Co., Ltd., and reckoned into other accout payable for calculation.
24. Other non-current liability
In RMB
Item Book balance at period-end Book balance at period-begin
Government grants 15,626,282.48 15,745,161.90
Total 15,626,282.48 15,745,161.90
Liability with government grants involved
In RMB
Amount
Subsidy Assets
reckoned in Other Closing
Item Opening balance increased in related/income
non-operation changes balance
Period related
income
Subsidy for tea seeding of
New Tea Garden in 49,920.00 49,920.00 Assets related
Wangkou
Construction amount for
50 tons for clearly 1,125,000.00 62,500.00 1,062,500.00 Assets related
processing for Mingyou
113
深圳市深宝实业股份有限公司 2014 年半年度报告全文
tea *1
Industrialization project of
3,066,488.94 3,066,488.94 Assets related
instant tea power *2
Specific funds for
development of strategy 20,123.05 20,123.05 Assets related
emerging industry *3
Base of further processing
for tea and nature plants 2,475,000.00 2,475,000.00 Assets related
*4
Industrial technical
advance grants of
municipal R&D center 2,928,629.91 2,928,629.91 Assets related
from enterprise
technology center *5
Grants for research and
industrialization of key
1,000,000.00 1,000,000.00 Assets related
technology of instant tea
*6
Guangdong
province—subsidy of 80,000.00 56,379.42 23,620.58 Assets related
agricultural research
Special funds of Shenzhen
strategy emerging
industrial development
5,000,000.00 5,000,000.00 Assets related
(depth process of plant)
(Shen Fa Gai No.:
20131601) *7
Total 15,745,161.90 118,879.42 15,626,282.48 --
*1 Construction amount for 50 tons for clearly processing for Mingyou tea: the project was invested with the loan
interests and financial subsidy granted by the finance bureau of Shangrao in respect of the comprehensive
agriculture development operation of Wuyuan County. The total subsidy amounted to RMB 1.50 million; the
starting date of amortization was 1 January 2011, with amortization term of 12 years. RMB 62,500.00 was
realized as non-operating income in this period.
*2 Instant tea powder industry project: this project was based on the circular (SFG2012 No.1461) issued by the
development and reform commission of Shenzhen. The total subsidy amounted to RMB 4 million. Up to 30 June
2014, the rest amount for amortization was RMB 3,066,488.94.
*3Special fund project of strategic emerging industry development: this project was based on the circular
(SFG2012 No.1065) issued by the science and technology innovation commission of Shenzhen. The total subsidy
amounted to RMB1.50 million. Up to 30 June 2014, the rest amount for amortization was RMB 20,123.05.
*4Base of further processing for tea and nature plants: this project was based on the circular (SFG2011 No.468)
114
深圳市深宝实业股份有限公司 2014 年半年度报告全文
issued by the science and technology innovation commission of Shenzhen. The total subsidy amounted to
RMB3.3 million, amortization from 1 January 2011 for 12-year in total. Up to 30 June 2014, the rest amount for
amortization was RMB 2,475,000.00.
*5 Industrial technical advance grants of municipal R&D center from enterprise technology center: based on the
Shen Jin mao Xin Xi Mi Shu Zi [2012] No. 1781 issued by Economy, Trade and Information Commission of
Shenzhen Municipality, subsidy amounting as 3 million Yuan, and rest amount for amortization was 2,928,629.91
Yuan up to June 30 2014
*6 Grants for research and industrialization of key technology of instant tea: based on the Yue Cai Jiao [2012] No.
392 issued by Guangdong Provincial Development of Finance and Department of Science and Technology of
Guangdong Province, subsidy amounting as one million Yuan with construction period from 2014 to 2015, and
start for amortization after project completed.
*7 Special funds of Shenzhen strategy emerging industrial development (depth process of plant): based on Shen
Fa Gai[2013] No. 1601 issued by Development and Reform Commission of Shenzhen Municipality, subsidy
amounting as 5 million Yuan with construction period from 2014 to 2015, and start for amortization after project
completed.
25. Share capital
In RMB
Increased (decreased)
Shares converted
Opening amount New shares Bonus Closing amount
from public Other Sub-total
issued shares
reserve
Total
250,900,154.00 50,180,030.00 50,180,030.00 301,080,184.00
shares
Explanation on share capital changes, if there has capital increase/decrease in reporting period, disclosed the
CPA’s name and verification documents; for company limited within 3 years operation, explain the net assets
before establishment; for those company limited changed from limited liability company, explain the verification
condition while established.
Item Opening balance Increased (decreased) Closing balance
New Shares converted
Bonus
shares from public Other Sub-total
shares
issued reserve
1. Restricted shares
(1)state-owned shares --- --- --- --- --- ---
(2) State-owned corporate 6,783,729.00 --- --- 1,356,746.00 --- 1,356,746.00 8,140,475.00
shares
(3) Other domestic shares 15,252,932.00 --- --- 3,050,586.00 --- 3,050,586.00 18,303,518.00
115
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Including:
Domestic legal person’s 7,770,118.00 --- --- 1,554,023.00 --- 1,554,023.00 9,324,141.00
shares
Domestic nature person’s 7,482,814.00 --- --- 1,496,563.00 --- 1,496,563.00 8,979,377.00
shares
(4)Foreign shares --- --- --- --- --- --- ---
Including:
Foreign legal person --- --- --- --- --- --- ---
Foreign nature person --- --- --- --- --- --- ---
Total restricted shares 22,036,661.00 --- --- 4,407,332.00 --- 4,407,332.00 26,443,993.00
2. Circulated unrestricted
shares
(1) RMB common shares 202,727,493.00 --- --- 40,545,498.00 --- 40,545,498.00 243,272,991.00
(2) Domestically listed 26,136,000.00 --- --- 5,227,200.00 --- 5,227,200.00 31,363,200.00
foreign shares
(3) Foreign listed foreign --- --- --- --- --- --- ---
shares
(4) Other --- --- --- --- --- --- ---
Total unrestricted circulated 228,863,493.00 --- --- 45,772,698.00 --- 45,772,698.00 274,636,191.00
shares
Total 250,900,154.00 --- --- 50,180,030.00 --- 50,180,030.00 301,080,184.00
On 16 May 2014, in base of total share capital ended as 2013, the Company capitalizing of public reserves as two
to every ten shares, shares increased 50,180,030 in total, and the shares have been verified by verification reprot
Da Hua Yan Zi [2014] No. 000236 issued from Da Hua CPA, the changes of industrial and commerce still in
process.
26. Capital reserves
In RMB
Decrease during this
Item Opening amount Increase during the period Closing amount
period
Capital premium (Share capital
570,389,576.41 53,146,689.20 517,242,887.21
premium)
Other Capital reserves 939,554.31 939,554.31
Total 571,329,130.72 53,146,689.20 518,182,441.52
Explanation on capital reserve
1. Share capital premium decreased in the Period mainly due to the capitalizing of common reserves with
50,180,030.00 Yuan declined;
2. The 51.72% equity of Shenshenbao Huafa, orginal controlling subsidiary, was transferred in the Period, capital
reserve decrease 2,966,659.20 Yuan.
116
深圳市深宝实业股份有限公司 2014 年半年度报告全文
27. Surplus reserves
In RMB
Decrease during this
Item Opening amount Increase during the period Closing amount
period
Statutory surplus reserves 45,001,147.33 45,001,147.33
Total 45,001,147.33 45,001,147.33
28. Retained profit
In RMB
Withdrawal or Allocation
Item Amount
Ratio
Retained profits at the end of last year before
93,286,637.50 --
adjustment
Retained profits at the beginning of the year after
93,286,637.50 --
adjustment
Add: The net profits belong to owners of patent
-23,382,126.99 --
company of this period
Retained profit at period-end 69,904,510.51 --
Details about adjusting the retained profits at the beginning of the year:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations
affect the retained profits at the beginning of the year amounting to 0 Yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the year amounting to 0 Yuan.
3) The major accounting error correction affects the retained profits at the beginning of the year amounting to 0
Yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the year
amounting to 0 Yuan.
5) Other adjustments affect the retained profits at the beginning of the year amounting to 0 Yuan
The retained profits explain that the company initial public offering bonds should clearly state if the accumulated
profits are decided to be shared by old and new shareholders by general meeting of stockholders before issuing;
while the company should clearly disclose that the profits in the dividends payable belong to old shareholders
after auditing if the general meeting of stockholders decides the accumulated profits are allocated and shared by
old shareholders before issuing.
29. Operating income and cost
(1) Operating income and cost
117
深圳市深宝实业股份有限公司 2014 年半年度报告全文
In RMB
Item Amount of this period Amount of last period
Main operating income 118,250,169.14 229,503,390.32
Other operating income 240,000.00
Operating cost 96,487,715.91 195,082,954.37
(2) Main business (By industries)
In RMB
Amount of this period Amount of last period
Industry
Operating income Operating cost Operating income Operating cost
Industry 117,956,769.14 96,487,715.91 124,711,542.13 100,329,761.24
Trading 104,498,448.19 94,656,064.73
Leasing service industry 293,400.00 293,400.00
Total 118,250,169.14 96,487,715.91 229,503,390.32 194,985,825.97
(3) Main business (By products)
In RMB
Amount of this period Amount of last period
Products
Operating income Operating cost Operating income Operating cost
Soft drinks 14,635,957.30 10,365,966.51 13,233,201.40 9,755,968.66
Condiment 5,524,229.27 3,329,381.37 5,352,419.86 3,442,198.14
Tea products 97,796,582.57 82,792,368.03 210,624,369.06 181,787,659.17
Property rental 293,400.00 293,400.00
Total 118,250,169.14 96,487,715.91 229,503,390.32 194,985,825.97
(4) Main business (By districts)
In RMB
Amount of this period Amount of last period
District
Operating income Operating cost Operating income Operating cost
Exportation 6,926,988.15 4,586,268.60 107,635,235.06 96,204,044.83
South China 47,829,313.49 37,062,592.99 39,280,797.60 28,814,228.01
North China 9,321,230.97 8,624,911.14 11,141,038.11 9,717,383.35
East China 44,868,581.17 37,726,432.79 50,035,273.72 41,443,043.14
Central China 6,103,966.38 5,545,732.82 16,850,592.77 15,017,767.32
118
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Other 3,200,088.98 2,941,777.57 4,560,453.06 3,789,359.32
Total 118,250,169.14 96,487,715.91 229,503,390.32 194,985,825.97
(5) The operating income of the top five customers of the Company
In RMB
Client Main operating income The percentage in all operating income of the Company
Client1 31,855,740.32 26.94%
Client2 11,203,050.34 9.47%
Client3 9,497,059.83 8.03%
Client4 9,070,376.07 7.67%
Client5 8,606,751.03 7.28%
Total 70,232,977.59 59.39%
30. Business tax and surcharges
In RMB
Item Amount of this period Amount of last period Taxation standards
Business tax 74,670.00 86,670.00 5%
Urban maintenance and construction
129,715.27 339,477.47 5%, 7%
tax
Educational surtax 159,178.47 357,931.24 5%
Total 363,563.74 784,078.71 --
31. Sales expenses
In RMB
Item Amount of this period Amount of last period
Remuneration and employee charges 5,632,456.90 4,269,343.14
Rental and utilities expenses 1,228,175.50 958,120.01
Depreciation and amortization expenses
205,761.60 44,622.05
Depreciation and amortization expenses
Good transportation charge 2,615,002.62 5,964,368.29
Sales discount, promotion charge and
2,556,056.62 3,826,497.20
advertisement fee
Routine office charge 1,258,232.40 1,037,784.20
Other 1,170,491.10 258,964.18
119
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Total 14,666,176.74 16,359,699.07
32. Administration expenses
In RMB
Item Amount of this period Amount of last period
Remuneration and employee charges 16,198,989.86 10,703,841.03
Rental and utilities expenses 1,423,397.02 1,119,969.97
Depreciation and amortization expenses 5,362,836.31 4,429,120.87
Agency and disclosure fee 2,922,220.78 1,566,030.55
Taxes 1,327,436.15 768,587.36
Routine office charge 5,645,941.33 4,505,588.10
Advertising fee 1,388,199.09 31,323.50
Other 2,684,696.07 2,065,281.12
Total 36,953,716.61 25,189,742.50
33. Financial expenses
In RMB
Item Amount of this period Amount of last period
Interest expenses 753,873.36 1,234,810.59
Less: interest income 1,720,498.76 3,728,310.33
Gains/losses from exchange -173,697.00 2,277,734.95
Other 106,678.39 103,591.22
Total -1,033,644.01 -112,173.57
34. Income of fair value changes
In RMB
Sources generating income of fair value changes Amount of this period Amount of last period
Financial assets available for sale 397,336.94
Total 397,336.94
35. Investment income
(1) Particulars about investment income
In RMB
120
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Item Amount of this period Amount of last period
Investment income obtained from disposal of
2,853,536.67
long-term equity investment
Investment income obtained from transactional
6,688.65
financial assets held
Investment income obtained from disposal of
-480.81
transactional financial assets
Total 2,853,055.86 6,688.65
36. Non-operating income
(1) Non-operating income
In RMB
Amount reckoned into
Item Amount of this period Amount of last period current non-recurring
gains/losses
Non-current assets disposal gains 1,000.00 5,720.73 1,000.00
Including: fixed assets disposal gains 1,000.00 5,720.73 1,000.00
Government subsidy 1,639,508.42 5,874,022.19 1,639,508.42
Other 286,559.99 253,966.23 286,559.99
Total 1,927,068.41 6,133,709.15 1,927,068.41
(2) Government subsidy reckoned into current gains/losses
In RMB
Assets-related/income Non-recurring
Item Amount of this period Amount of last period
-related gains/losses (Y/N)
Advanced enterprise award of
energy-saving and emission 10,000.00 Income-related Y
reduction for year of 2012
Grant of demonstration plant of Y
excellent-tea process for year of 60,000.00 Income-related
2012
Comprehensive investment award Y
3,988,745.00 Income-related
from Country Financial Bureau
Support fund for backbone Y
enterprise in Shenzhen for year of 180,000.00 Income-related
2011
121
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Deferred income transfer-in 118,879.42 1,635,277.19 Y
Supporting award of science & Y
300,000.00 Income-related
technology of Longgang District
The ninth batch of patent Y
financing costs for year of 2013
4,000.00 Income-related
from Market Supervisory
Authority
Special subsidy from technology Y
500,000.00 Income-related
center of finance bureau
Subsidy of energy auditing Y
projects for key energy enterprise
50,000.00 Income-related
(district-level) from finance
bureau
Patent application grants from Y
Shenzhen Market Supervisory 8,000.00 Income-related
Authority
Capital of agriculture Y
industrialization project
200,000.00 Income-related
(provincial level) for year of 2013
–brand reward
Tea project funds (provincial Y
40,000.00 Income-related
level) for year of 2012
Expenditure of national spark Y
program of mulberry tea 200,000.00 Income-related
institution in Jiangxi Province
The ninth batch of patent subsidy Y
for year of 2013 from Market 4,000.00 Income-related
Supervision
Special grants of famous Y
200,000.00 Income-related
trademark in Guangdong Province
Other government grants 14,629.00 Income-related Y
Total 1,639,508.42 5,874,022.19 -- --
37. Non-operating expenditure
In RMB
Amount reckoned into
Item Amount of this period Amount of last period current non-recurring
gains/losses
non-current assets disposal losses 36,018.31 3,410.56 36,018.31
122
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Including: fixed assets disposal losses 36,018.31 36,018.31 36,018.31
Total 36,018.31 3,410.56 36,018.31
38. Income tax expense
In RMB
Item Amount of this period Amount of last period
Current income tax calculated based on tax law and relevant
616,915.57 3,052,026.68
rules
Deferred income tax adjustment -99,334.24
Total 517,581.33 3,052,026.68
39. Calculation of basic earnings per share and diluted earnings per share
Calculation results:
Profit in the Period Current amount Last amount
Basic EPS Diluted EPS Basic EPS Diluted EPS
Net profit attributable to shareholders of ordinary shares -0.0777 -0.0777 -0.0237 -0.0237
of the Company(I)
Net profit attributable to shareholders of ordinary -0.0943 -0.0943 -0.0429 -0.0429
shares of the Company after deducting non-recurring
gains/losses (II)
Calculation of EPS
Item Serial Current Period Last Period
Net profit attributable to shareholders of ordinary 1 -23,382,126.99 -5,934,967.21
shares of the Company
Non-recurring gains/losses of net profit 2 5,013,522.41 4,837,500.11
attributable to common shareholders of parent
company after deducting impact on income tax
Net profit attributable to ordinary shareholders of 3=1-2 -28,395,649.40 -10,772,467.32
company after deducting non-recurring
gains/losses
Aggregate of shares as at period-begin 4 250,900,154.00 250,900,154.00
Share added due to conversion of public reserve 5 50,180,030.00 ---
to share capital or allocation of share dividends
during the report period
Share added due to new issuance of shares or 6 --- ---
shares converted from debts during the report 6 --- ---
period 6 --- ---
Months of the additional shares (new share issued or 7 --- ---
debt to equity) commencing from the next month 7 --- ---
123
深圳市深宝实业股份有限公司 2014 年半年度报告全文
till the end of the year 7 --- ---
Shares decreased due to purchase-back of its own 8 --- ---
shares during the period
Months of the decreased shares commencing from 9 --- ---
the next month till the end of the year
Shares diluted during the period 10 --- ---
Number of months for the period 11 6 6
12=4+5+6×7 301,080,184.00 250,900,154.00
Weighted average of ordinary shares issued (II)
÷11-8×9÷11-10
Weighted average of ordinary shares issued that 13 301,080,184.00 250,900,154.00
adjusted due to enterprise combine under the
same control (I)
Basic EPS(I) 14=1÷13 -0.0777 -0.0237
Basic EPS(II) 15=3÷12 -0.0943 -0.0429
Diluted potential ordinary shares dividend recognized as 16 --- ---
expense and impacts factors
Income tax rate 17 --- ---
Conversion expense 18 --- ---
Shares increased from conversion or exercise of 19 --- ---
convertible bonds, warrants and stock option
20=[1+(16-18)× -0.0777 -0.0237
Diluted EPS(I)
(100%-17)]÷(13+19)
Diluted EPS(II) 21=[3+(16-18) -0.0943 -0.0429
×(100%-17)]÷(12+19)
40. Notes to statement of cash flow
(1) Other cash received in relation to operation activities
In RMB
Item Amount
Government subsidy 1,537,390.44
Interest income 1,609,400.13
Current amount 371,745.37
Other 376,966.71
Total 3,895,502.65
(2) Other cash paid in relation to operation activities
In RMB
Item Amount
Administration expenses 15,499,803.91
124
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Sales expenses 9,695,314.86
Other 2,818,183.71
Total 28,013,302.48
41. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
Supplementary information This Period Last Period
1. Net profit adjusted to cash flow of operation activities: -- --
Net profit -24,563,498.28 -4,475,950.20
Depreciation of fixed assets, consumption of oil assets and
11,500,244.58 5,777,044.46
depreciation of productive biology assets
Amortization of intangible assets 3,362,054.19 2,824,173.78
Amortization of long-term deferred expenses 3,405,218.62 1,142,929.69
Loss from disposal of fixed assets, intangible assets and
35,018.31 -2,310.17
other long-term assets(gain is listed with “-”)
Loss from change of fair value (gain is listed with “-”) -397,336.94
Financial expenses (gain is listed with “-”) 1,033,927.18 2,882,324.52
Investment loss (gain is listed with “-”) -2,853,055.86 -6,688.65
Decrease of deferred income tax asset( (increase is listed
-99,334.24
with “-”)
Increase of deferred income tax liability (decrease is listed
1,300,508.81
with “-”)
Decrease of inventory (increase is listed with “-”) -39,883,531.72 -39,111,747.62
Decrease of operating receivable accounts (increase is listed
-101,345,713.03 -109,851,274.50
with “-”)
Increase of operating payable accounts (decrease is listed
165,291,618.92 128,973,918.85
with “-”)
Net cash flow arising from operating activities 16,786,120.54 -11,847,579.84
2. Material investment and financing not involved in cash
-- --
flow
3. Net change of cash and cash equivalents: -- --
Balance of cash at period end 341,890,986.57 309,611,598.60
Less: Balance of cash equivalent at year-begin 257,728,942.05 372,922,024.47
Net increasing of cash and cash equivalents 84,162,044.52 -63,310,425.87
125
深圳市深宝实业股份有限公司 2014 年半年度报告全文
(2) Relevant information about obtaining/disposal of subsidiary and other business unit in report period
In RMB
Supplementary information Amount of this period Amount of last period
I. Relevant information about obtaining subsidiary and
-- --
other business units:
2. cash and cash equivalent obtained from subsidiary and
4,617,194.45
other operation unit
3. net cash received from subsidiary and other operation
4,617,194.45
unit
II. Relevant information about disposal of subsidiary and
-- --
other business units:
2. Cash and cash equivalent obtained from disposal of
18,039,785.00
subsidiary and other business units:
3. net cash received from disposal of subsidiary and other
18,039,785.00
business units
(3) Constitution of cash and cash equivalent:
In RMB
Item Closing amount Opening amount
Ⅰ. Cash 341,890,986.57 257,728,942.05
Including: stock cash 160,480.66 181,781.97
Bank deposit available for payment at any time 341,730,505.91 257,547,160.08
Ⅲ. Balance of cash and cash equivalent at period-end 341,890,986.57 257,728,942.05
VIII. Related Parties and Transactions
1. Parent company of the Company
Proportion Proportion Final
Parent Registrat Legal
Relationsh Registered of shares of voting controller Organizatio
compan Nature ion represen Business nature
ip capital held to the right to the of the n code
y place tative
Company Company Company
Development,
Shenzhe construction,
n Controllin operation and
Stock RMB
Agricult g Shenzhe Chen management of SASAC of
limited 1,696,964,10 19.09% 19.09% 192179163
ural shareholde n Shaoqun agricultural Shenzhen
(listing) 0
Products r products retail
Co., Ltd. market, operation
of market leasing
2. Subsidiary of the Company
Subsidiary Type Nature Registrat Legal Business Registered capital Proportion Proportion of Organizatio
126
深圳市深宝实业股份有限公司 2014 年半年度报告全文
ion representativ nature of shares voting right n code
place e held
Shenzhen
Controlli
Shenbao
ng Shenzhe Manufactu
Huacheng LLC Zhou Weihe 153,451,300.00 100.00% 100.00% 73628169-3
subsidiar n ring
Technology
y
Co., Ltd.
Jufangyong
Controlli
Tea Industry
ng Manufactu
Co., Ltd. in LLC Wuyuan Zhou Weihe 290,000,000.00 100.00% 100.00% 77236879-6
subsidiar ring
Wuyuan
y
County
Shenzhen
Shenbao Controlli
Sanjing Food ng Shenzhe Yao Manufactu
LLC 30,150,000.00 100.00% 100.00% 19246379-7
& Beverage subsidiar n Xiaopeng ring
Development y
Co., Ltd.
Huizhou Controlli
Shenbao ng Yao Comprehe
LLC Huizhou 60,000,000.00 100.00% 100.00% 66495245-0
Technologies subsidiar Xiaopeng nsive
Co., Ltd. y
Shenzhen
Controlli
Shenbao
ng Shenzhe 27931409-
Properties LLC Li Fang Property 5,000,000.00 100.00% 100.00%
subsidiar n X
Management
y
Co., Ltd.
Shenzhen
Controlli
Shenbao Commerci
ng Shenzhe
Industrial & LLC Guan Lihua al 5,500,000.00 100.00% 100.00% 19218639-8
subsidiar n
Trade Co., wholesale
y
Ltd.
Hangzhou Controlli
Jufangyong ng Hangzho Qian Comprehe
LLC 175,000,000.00 100.00% 100.00% 59305626-0
Holding Co., subsidiar u Xiaojun nsive
Ltd. y
Developm
Shenzhen
Controlli ent,
Shenbao
ng Shenzhe Luo consultant
Technology LLC 54,000,000.00 100.00% 100.00% 59566405-9
subsidiar n Longxin and
Center Co.,
y transfer of
Ltd.
technolog
127
深圳市深宝实业股份有限公司 2014 年半年度报告全文
y
Investmen
t,
consultant
and
Shenzhen Controlli
trading,
Shenshenbao ng Shenzhe
LLC Li Yiyan communic 50,000,000.00 100.00% 100.00% 30591145-4
Investment subsidiar n
ation of
Co., Ltd. y
tea
knowledge
and
culture
Fujian
Controlli Plantation,
Mount. Wuyi
ng Wuyisha production
Shenbao LLC Chen Liang 40,000,000.00 51.75% 51.75% 05031666-0
subsidiar n and sales
Yuxing Tea
y of tea
Co., Ltd.
Tea
Hangzhou
manufactu
Fuhaitang Controlli
ring and
Tea ng Hangzho Qian
LLC processing 2,000,000.00 92.00% 92.00% 75173785-5
Ecological subsidiar u Xiaojun
; food
Technology y
wholesale
Co., Ltd.
and retails
Food
Hangzhou wholesale
Controlli
Chunshi and retails,
ng Hangzho Qian 09841557-
Network LLC technolog 3,000,000.00 100.00% 100.00%
subsidiar u Xiaojun X
Technology y
y
Co., Ltd. developme
nt
Shenzhen
Shenbao
Controlli
(Liaoyuan)
ng Shenzhe
Industrial LLC 2,378,000.00 53.50% 53.50%
subsidiar n
Co., Ltd.
y
(“Shenbao
Liaoyuan”)
3. Details of joint-venture and affiliated enterprise of the Company
Invested Type Register Legal rep. Business Register Equity Proportion of voting Relationshi Organizatio
128
深圳市深宝实业股份有限公司 2014 年半年度报告全文
company place nature capital proporti rights in invested p n code
on held company
by the
Compan
y
I. Joint venture
II. Associated company
Changzhou
Changzh Pan Manufactu 54,000,00 Associated
Sanjing Oil LLC 33.00% 33.00% 77052631-6
ou Guangsheng ring 0.00 enterprise
Co., Ltd.
4. Particulars about other related parties
Other Related parties Relationship Organization code
Shenzhen Investment Management The Company’s original largest
192197644
Company shareholder
Second-largest shareholder of the
Shenzhen Investment Holdings Co., Ltd. 76756642-1
Company
Changzhou Sanjing Oil Co., Ltd. Affiliated company 66382186-2
Minority shareholders of holding
Zhejiang Wafa Tea Co., Ltd. 05280263-8
subsidiary company
Minority shareholders of holding
Fujian Wuyishan Yuxing Tea Co., Ltd. 71730243-6
subsidiary company
Minority shareholders of holding
Xingjiu Tea Co.,Ltd. 58310361-7
subsidiary company
5. Related transaction
(1) Statement of commodity purchased and labor service received
In RMB
Amount of this period Amount of last period
Pricing way and Ratio in Ratio in
Related parties Content decision making similar similar
Amount Amount
procedures transactio transactio
ns ns
Zhejiang Wafa Tea
Purchase of tea Market price 108,602,905.57 59.74%
Co., Ltd.
Fujian Wuyishan
Purchase of tea Market price 5,234,000.00 6.32% 2,171,253.64 1.19%
Yuxing Tea Co., Ltd.
Shenzhen Purchase
Market price 84,247,219.00 100.00%
Investment Holdings Office space
129
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Co., Ltd.
Statement of commodity sales and labor service provided
In RMB
Amount of this period Amount of last period
Pricing way and Ratio in Ratio in
Related parties Content decision making similar similar
Amount Amount
procedures transactio transactio
ns ns
Shenzhen
Agricultural Sales of tea Market price 114,140.00 0.12% 258,046.00 0.12%
Products Co., Ltd.
(2) Related leasing
Statement of leasing
In RMB
Leasing income
Pricing basis for
Lessor Lessee Type of leasing Starting from Terminated dated recognized in
leasing income
period
Fujian
Fujian Wuyishan
Wuyishan Production
Yuxing Tea Co., 2012-9-9 2014-9-8 Market price 180,000.00
Shenbao Yuxing workshop
Ltd.
Tea Co., Ltd.
Explanation on related leasing:
The production workshop that provided for Fujian province Wuyishan Yuxing Tea Co., Ltd. located in
Huanglongzhou Huangbaicun Wuyi Street Wuyishan City Fujian province, and the rent was RMB 720,000 in total,
and the cost of the period was RMB 180,000. Related trade pricing was based on market price.
(3) Related guarantee
In RMB
Whether guarantee
Guarantee provided Guarantee received Guarantee amount Starting from Terminated dated
implemented or not
Shenzhen Shenbao
Sanjing Food &
Shenzhen Shenbao
Beverage 30,000,000.00 2014-4-14 2015-4-13 N
Industrial Co., Ltd*1
Development Co.,
Ltd.
Shenzhen Shenbao
Shenzhen Shenbao
Huacheng 30,000,000.00 2014-4-14 2015-4-13 N
Industrial Co., Ltd*2
Technology Co., Ltd.
Shenzhen Shenbao Shenzhen Shenbao
30,000,000.00 2014-4-14 2015-4-13 N
Huacheng Industrial Co., Ltd
130
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Technology Co.,
Ltd.*3
Particulars about related guarantees
*1: The Company entered into the “Contract of Warranty for the Maximum Amount” with town bank of
Baosheng Village, Nanshan disctrict, Shenzhen on 14 April 2014 for offering loan guarantee for Shenzhen
Sanjing, subsidiary of the Company with terms from 14 April 2014 to 13 April 2015.
Shenbao Sanjing entered into a contract of current capital loans with town bank of Baosheng Village, Nanshan
disctrict, Shenzhen on 14 April 2014 for loans RMB 30 million obtained with one-year term. The Company
offering joint liability guarantee for the loans.
*2 The Company entered into the “Contract of Warranty for the Maximum Amount” with town bank of Baosheng
Village, Nanshan disctrict, Shenzhen on 14 April 2014 for offering loan guarantee for Shenzhen Huacheng,
subsidiary of the Company with terms from 14 April 2014 to 13 April 2015.
Shenbao Huacheng entered into a contract of current capital loans with town bank of Baosheng Village, Nanshan
disctrict, Shenzhen on 14 April 2014 for loans RMB 30 million obtained with one-year term. The Company
offering joint liability guarantee for the loans
*3: Shenbao Huacheng entered into the “Contract of Warranty for the Maximum Amount” with town bank of
Baosheng Village, Nanshan disctrict, Shenzhen on 14 April 2014 for offering loan guarantee for parent company
Shenbao Industrial with terms from 14 April 2014 to 13 April 2015.
Shenbao Industrial entered into a contract of current capital loans with town bank of Baosheng Village, Nanshan
disctrict, Shenzhen on 14 April 2014 for loans RMB 30 million obtained with one-year term. Shenbao Huacheng
offering joint liability guarantee for the loans
6. Account receivable/payable for related parties
Account receivable from related parties
In RMB
Amount at period-end Amount at period-begin
Item Related parties
Book balance Bad debt provision Book balance Bad debt provision
Account Shenzhen Agricultural
57,915.00 75,426.00
receivable Products Co., Ltd.
Account paid in Fujian Wuyishan Yuxing Tea
1,457,375.73
advance Co., Ltd.
Other account Changzhou Sanjing Oil Co.,
18,268,423.34 2,334,271.52 17,935,501.33 2,334,271.52
receivable Ltd.
Account payable for related parties
In RMB
131
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Item Related parties Amount at period-end Amount at period-begin
Shenzhen Investment
Other payables 3,510,297.20 3,510,297.20
Management Company
Shenzhen Investment
Dividend payable 2,690,970.14 2,690,970.14
Management Company
IX. Contingency
1. Contingent liability and its financial influence formed by un-settle lawsuits or arbitration
The Company has no major contingency need to disclosed up to 30 June 2014
2. Contingent liability and its financial influence formed from debt guarantee offered to other units
The Company has no major contingency need to disclosed up to 30 June 2014
X. Commitments
1. Material commitments
The Company has no major comitments need to disclosed up to 30 June 2014
2. Commitments made previously
The Company has no major comitments need to disclosed up to 30 June 2014
XI. Subsequent events of balance sheet
1. Explanation on major event after balance sheet date
The Company has no major event after balance sheet date need to disclosed up to the reporting date
XII. Other major event
1. Assets and liability measured by fair value
In RMB
Changes of fair
Gains/losses of
Amount at value reckoned into Impairment accrual Amount at
Item change of fair
period-begin equity in this term period-end
value in this term
accumulatively
Financial assets
132
深圳市深宝实业股份有限公司 2014 年半年度报告全文
1. Financial assets measured
by fair value and with
changes reckoned in current 1,389,288.09 397,336.94 1,532,585.34
gains/losses (excluding
derivative financial assets)
Total 1,389,288.09 397,336.94 1,532,585.34
Financial liability 0.00 0.00 0.00
2. Other
1. The Proposal of 51.72% Equity of Zhejiang Shenshenbao Huafa Tea Co., Ltd. Transfer was deliberated and
approved in 9th meeting of 8th session of the Board held on 27 January 2014. Agrees to transfer 51.72% equity of
Zhejiang Shenshenbao Huafa Tea Co., Ltd. held by the Company to Zhejiang Wafa Tea Co., Ltd with
consideration of 34.50 million Yuan. Registration change of industrial and comemrce completed on 20 Feburary
2014. and equity tarnsfer amount 34.50 million Yuan has received up to 30 June 2014 by the Company.
2. According to the construction project cooperation agreement entered into by the Company and Shenzhen Jitai
Industrial Development Co., Ltd.(hereinafter referred to as Jitai Industrial), the Company and Jitai Industrial
developed and built office building for its own use with the land located at Wenjin north road, Luohu district
Shenzhen(No. H307-0018). The Company would not increase any investment to this project and assume any cost,
Jitai Industrial shall be responsible for the entire capital for project construction. The Company determined the
property allocation proportion based on the appraisal value of the land (No. H307-0018) of RMB42 million. The
property allocation proportion of the Company was: based on the appraisal value of the land (No. H307-0018), to
determine the proportion that RMB42 million accounts for in the total construction cost (namely RMB42 million
plus the entire audited capital contributed by Jitai Industrial to the project); if the proportion is less than 20%, then
the smallest allocation proportion of the Company shall be 20%. In December 2012, both parties agreed to cancel
the purpose of the above office building, and transferred the construction in progress of RMB77,295,880.97
occurred by the project and land amortization cost of RMB58,892,053.48 to inventories-development cost for
calculation. As at 30 June 2014, Jitai Industrial has provided land premiums and construction account of RMB179,
827,654.20. The construction account of RMB 3,920,200.00 payable to Zhongtai Construction Group Co., Ltd.
still paid for provision and payment by Jitai Industrial.
3. According to the resolution of Annual General Meeting 2013 dated April 2014, based on total share capital
250,900,154 as at 31 December 2013, capitalizing 2 shares for each 10 shares to whole shareholders from capital
reserves. And completed on 16 May 2014. Share capital of the Company changed as 301,080,184; and registration
change for industrial and commerce still in process up to the reporting date.
133
深圳市深宝实业股份有限公司 2014 年半年度报告全文
XIII. Principle notes of financial statements of parent company
1. Accounts receivable
(1) Accounts receivable
In RMB
Closing amount Opening amount
Type Book balance Bad debt provision Book balance Bad debt provision
Amount Ratio Amount Ratio Amount Ratio Amount Ratio
Account receivable withdrawal bad debt provision by group
Aging of accounts 9,758,143.55 99.71% 26,786,709.08 99.89%
Group subtotal 9,758,143.55 99.71% 26,786,709.08 99.89%
Accounts receivables with
single minor amount but
28,453.08 0.29% 28,453.08 100.00% 28,453.08 0.11% 28,453.08 100.00%
with bad debts provision
accrued individually
Total 9,786,596.63 -- 28,453.08 -- 26,815,162.16 -- 28,453.08 --
Explanation on category of account receivables:
Account receivable with single major amount and withdrawal bad debt provision for single item at period-end
□ Application √ Not application
In combination, accounts whose bad debts provision was accrued by age analysis: Account receivable
√ Application □ Not application
In RMB
Closing amount Opening amount
Age Book balance Book balance
Bad debt provision Bad debt provision
Amount Ratio Amount Ratio
Within 1 year
Including: -- -- -- -- -- --
Within 1 year
9,758,143.55 99.71% 26,786,709.08 99.89%
subtotal
Total 9,758,143.55 -- 26,786,709.08 --
In combination, withdrawal proportion of bad debt provision based on balance proportion: Account receivable
□ Application √ Not application
In combination, withdrawal proportion of bad debt provision based on other methods: Account receivable
□ Application √ Not application
Accounts receivables with single minor amount but with bad debts provision accrued individually at period-end
134
深圳市深宝实业股份有限公司 2014 年半年度报告全文
√ Application □ Not application
In RMB
Account receivable Book balance Bad debt provision Withdrawal proportion Reasons
Hubei Botou Instrument
9,996.58 9,996.58 100.00% Un-likely to recover
and Meter Plant
Guo Wenhui 18,456.50 18,456.50 100.00% Un-likely to recover
Total 28,453.08 28,453.08 -- --
(2) Top 5 account receivable
In RMB
Proportion in total
Name of the unit Relationship Amount Terms
account receivable
Client 1 Non-related party 3,749,332.00 Within 1 year 38.31%
Client 2 Non-related party 2,073,980.00 Within 1 year 21.19%
Client 3 Non-related party 721,562.69 Within 1 year 7.37%
Client 4 Non-related party 665,660.00 Within 1 year 6.80%
Client 5 Non-related party 363,285.00 Within 1 year 3.71%
Total -- 7,573,819.69 -- 77.38%
2. Other accounts receivable
(1) Other accounts receivable
In RMB
Closing amount Opening amount
Type Book balance Bad debt provision Book balance Bad debt provision
Amount Ratio Amount Ratio Amount Ratio Amount Ratio
Other receivable of bad debt provision withdrawal by combination
Aging of accounts 264,844,793.77 97.98% 2,387,411.68 0.90% 197,412,613.85 97.30% 2,387,411.68 1.21%
Group subtotal 264,844,793.77 97.98% 2,387,411.68 0.90% 197,412,613.85 97.30% 2,387,411.68 1.21%
Other account
receivable with single
minor amount but
5,472,398.91 2.02% 5,472,398.91 100.00% 5,472,398.91 2.70% 5,472,398.91 100.00%
withdrawal bad debt
provision for single
item
Total 270,317,192.68 -- 7,859,810.59 -- 202,885,012.76 -- 7,859,810.59 --
135
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Explanation on category of other receivables:
Other account receivable with single major amount and withdrawal bad debt provision for single item at
period-end
□ Application √ Not application
In combination, accounts whose bad debts provision was accrued by age analysis: Other account receivable
√ Application □ Not application
In RMB
Closing amount Opening amount
Age Book balance Book balance
Bad debt provision Bad debt provision
Amount Ratio Amount Ratio
Within 1 year
Including: -- -- -- -- -- --
Within 1 year
247,974,137.97 91.74% 180,541,958.05 88.98%
subtotal
1-2years 957,624.79 0.35% 47,881.24 957,624.79 0.47% 47,881.24
2-3years 948,484.12 0.35% 94,848.41 948,484.12 0.47% 94,848.41
Over 3 years 14,964,546.89 5.54% 2,244,682.03 14,964,546.89 7.38% 2,244,682.03
3-4years 4,410,151.72 1.63% 661,522.76 4,410,151.72 2.17% 661,522.76
4-5years 2,288,838.66 0.85% 343,325.80 2,288,838.66 1.13% 343,325.80
Over 5 years 8,265,556.51 3.06% 1,239,833.48 8,265,556.51 4.07% 1,239,833.48
Total 264,844,793.77 -- 2,387,411.68 197,412,613.85 -- 2,387,411.68
In combination, withdrawal proportion of bad debt provision based on balance proportion: Other account
receivable
□ Application √ Not application
In combination, withdrawal proportion of bad debt provision based on other methods: Other account receivable
□ Application √ Not application
Other account receivable with single minor amount but withdrawal bad debt provision for single item at
period-end
□ Application √ Not application
(2) Top 5 other receivable
In RMB
Percentage in total
Name of the unit Relationship Amount Terms accounts receivable
amount
136
深圳市深宝实业股份有限公司 2014 年半年度报告全文
Huizhou Shenbao Wholly-owned
153,220,104.73 Within 1 year 56.68%
Technologies subsidiaries
Wholly-owned
Wuyuan Jufangyong 37,000,000.00 Within 1 year 13.69%
subsidiaries
Wholly-owned
Shenbao Sanjing 26,205,535.88 Within 1 year 9.69%
subsidiaries
Changzhou Sanjing Oil Co., Over more than 1 to 3
Joint venture 17,638,423.34 6.53%
Ltd. years
Controlling
Shenbao Yuxing 322,387.75 Within 1 year 0.12%
subsidiary
Total -- 234,386,451.70 -- 86.71%
(3) Other receivables due from related parties
In RMB
Proportion in total other
Name of the unit Relationship Amount
receivables (%)
Huizhou Shenbao
Wholly-owned subsidiaries 153,220,104.73 56.68%
Technologies
Wuyuan Jufangyong Wholly-owned subsidiaries 37,000,000.00 13.69%
Shenbao Sanjing Wholly-owned subsidiaries 26,205,535.88 9.69%
Changzhou Sanjing Oil Co.,
Joint venture 17,638,423.34 6.53%
Ltd.
Shenbao Yuxing Controlling subsidiary 322,387.75 0.12%
Shenbao Industrial & Trade Wholly-owned subsidiaries 230,589.19 0.09%
Total -- 234,617,040.89 86.80%
3. Long-term equity investment
In RMB
Explanati
Proporti on on the
Proporti Impairm
on of incongrui
on of ent Cash
share ty in
Calculati voting provision bonu
Invested Investment Opening Increase/decrease Closing holding share Impairment
on rights in of s this
company cost balance (+,-) balance in holding provision
method invested accruing perio
invested proportio
compan this d
compan n and
y (%) period
y (%) voting
proportio
137
深圳市深宝实业股份有限公司 2014 年半年度报告全文
n in
invested
company
Shenzhen
Bao’an
2,870,000.0 2,870,000.0 2,870,000.0 2,870,000.0
(Xinmin) Equity 49.14% 49.14%
0 0 0 0
Food Co.,
Ltd.
Changzhou
13,500,000.
Sanjing Oil Equity 33.00% 33.00%
00
Co., Ltd.
Shenbao 2,550,000.0 2,550,000.0 2,550,000.0
Cost 51.00% 51.00%
Properties 0 0 0
Shenbao
5,500,000.0 5,500,000.0 5,500,000.0 100.00 100.00
Industrial & Cost
0 0 0 % %
Trade
Shenbao 80,520,842. 80,520,842. 80,520,842. 100.00 100.00
Cost
Sanjing 36 36 36 % %
Shenbao 168,551,781 168,551,781 168,551,781 100.00 100.00
Cost
Huacheng .80 .80 .80 % %
Huizhou
Shenbao 60,000,000. 60,000,000. 60,000,000. 100.00 100.00
Cost
Technologie 00 00 00 % %
s
Wuyuan 280,404,134 280,404,134 280,404,134
Cost 95.72% 95.72%
Jufangyong .35 .35 .35
Hangzhou 176,906,952 176,906,952 176,906,952 100.00 100.00
Cost
Jufangyong .42 .42 .42 % %
Shenbao
54,676,764. 54,676,764. 54,676,764. 100.00 100.00
Technology Cost
11 11 11 % %
Center
Shenbao
Cost 57,628.53 57,628.53 57,628.53 53.50% 53.50% 57,628.53
Liaoyuan
Shenshenbao 30,000,000. 30,000,000.
Cost -30,000,000.00
Huafa 00 00
Shenzhen
Sanjiu
2,480,000.0 2,480,000.0 2,480,000.0 2,480,000.0
Weitai Cost 0.95% 0.95%
0 0 0 0
Holdings
Co., Ltd.
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
Shenzhen
Tianji
Optical-Elec 15,000,000. 15,000,000. 15,000,000. 15,000,000.
Cost 3.77% 3.77%
tric 00 00 00 00
Technologie
s Co., Ltd.
Shenshenbao 50,000,000. 50,000,000. 100.00 100.00
Cost 50,000,000.00
Investment 00 00 % %
943,018,103 879,518,103 899,518,103 20,407,628.
Total -- 20,000,000.00 -- -- --
.57 .57 .57 53
4. Operating income and operating cost
(1) Operating income
In RMB
Item Amount of this period Amount of last period
Main operating income 24,073,018.64
Other operating income 1,200,000.00 1,200,000.00
Total 25,273,018.64 1,200,000.00
Operating cost 22,911,987.88 0.00
(2) Main business (By industries)
In RMB
Amount of this period Amount of last period
Industry
Operating income Operating cost Operating income Operating cost
Industry 24,073,018.64 22,911,987.88
Total 24,073,018.64 22,911,987.88
(3) Main business (By products)
In RMB
Amount of this period Amount of last period
Products
Operating income Operating cost Operating income Operating cost
Tea products 24,073,018.64 22,911,987.88
Total 24,073,018.64 22,911,987.88
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
(4) Main business (By districts)
In RMB
Amount of this period Amount of last period
District
Operating income Operating cost Operating income Operating cost
Exportation 971,247.53 940,782.40
South China 5,342,196.33 5,090,060.94
North China 5,415,776.15 5,146,161.67
East China 8,687,170.61 8,262,182.00
Central China 841,834.35 799,743.47
Other area 2,814,793.67 2,673,057.40
Total 24,073,018.64 22,911,987.88
(5) The operating income of the top five customers of the Company
In RMB
The percentage in all
Client Total operation revenue operating income of the
Company
Client1 6,786,815.86 26.85%
Client2 4,054,153.85 16.04%
Client3 3,406,652.62 13.48%
Client4 2,450,500.90 9.70%
Client5 969,542.79 3.84%
Total 17,667,666.02 69.91%
5. Investment income
(1) Particulars about investment income
In RMB
Item Amount of this period Amount of last period
Investment income obtained from disposal of long-term
4,452,830.20
equity investment
Investment income obtained from disposal of transactional
-480.81
financial assets
Total 4,452,349.39
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
6. Supplementary information of cash flow statement
In RMB
Supplementary information This Period Last Period
1. Adjust the net profits to be cash flow for operating activities -- --
Net profits -8,573,943.81 -7,840,872.40
Fixed assets depreciation, oil-and-gas assets loss , productive living
642,883.04 624,570.06
beings depreciation
Intangible assets amortization 211,428.64 52,458.36
Long-term expenses amortization 131,497.64 132,681.36
Losses from handling fixed assets, intangible assets and
17,101.29 -2,248.14
assets(profits fill with “-“ )
Losses from change of fair value (profits fill with “-“ ) -397,336.94 1,270,042.56
Financial costs(profits fill with “-“ ) 585,578.24
Investment losses(profits fill with “-“) -4,452,349.39
Deferred income tax assets decrease(increases fill with “-“ ) -99,334.24
Stock decreases(increases fill with “-“ ) -3,245,303.86 -25,551,327.08
Operating receivables decrease(increases fill with “-“ ) -88,238,472.65 17,756,680.58
Operating payables increase(decreases fill with “-“ ) 89,773,413.85 24,176,050.67
Cash flow net amount generated by operating activities -13,644,838.19 10,618,035.97
2. Significant investment financial activities not involving and cash
-- --
deposit and withdrawal
3. Net changes of cash and cash equivalents -- --
Ending balance of cash 135,742,209.47 67,427,759.75
Less: opening balance of cash equivalents 105,859,108.94 55,033,726.34
Net increase of cash and cash equivalents 29,883,100.53 12,394,033.41
XIV. Supplementary Information
1. Current non-recurring gains/losses
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the
2,818,518.36
write-off that accrued for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to 1,639,508.42
national standards, which are closely relevant to enterprise’s
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
business)
Gains and losses from change of fair values of
held-for-transaction financial assets and financial liabilities except
for the effective hedge business related to normal business of the
396,856.13
Company, and investment income from disposal of transactional
financial assets and liabilities and financial assets available for
sale
Other non-operating income and expenditure except for the
286,559.99
aforementioned items
Less: Impact on income tax 129,282.25
Impact on minority shareholders’ equity (post-tax) -1,361.76
Total 5,013,522.41 --
Explain recognition reasons item-by-item if the government subsidy reckoned into current gains/losses was the
recurring gains/losses
□ Application √ Not application
2. 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)
In RMB
Net profit attributable to shareholders of listed Net assets attributable to shareholders of listed
company company
Amount in this period Amount in last period Closing amount Opening amount
Chinese GAAP -23,382,126.99 -5,934,967.21 934,168,283.36 960,517,069.55
Items and amount adjusted by IAS
Other payable stock market
1,067,000.00 1,067,000.00
regulation fund
IAS -23,382,126.99 -5,934,967.21 936,669,911.47 961,584,069.55
3. REO and earnings per share
In RMB
Earnings per share
Profits during report period Weighted average ROE (%)
Basic EPS Diluted EPS
Net profits belong to common stock
-2.47% -0.0777 -0.0777
stockholders of the Company
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深圳市深宝实业股份有限公司 2014 年半年度报告全文
Net profits belong to common stock
stockholders of the Company after deducting -3.00% -0.0943 -0.0943
nonrecurring gains and losses
4. Abnormalities and reasons of the accounting statement items of the Company
Item Closing balance (Current Opening balance (Last Changes % Reasons
Period) Period)
Monetary fund 342,390,986.57 258,228,942.05 32.59 *1
Account receivable 54,066,545.98 106,664,101.14 (49.31) *2
Account paid in advance 11,710,814.98 19,617,679.28 (40.30) *3
Other current assets 6,354,131.39 2,835,640.51 124.08 *4
Short-term loans 90,000,000.00 --- 100 *5
Account received in advance 90,179,983.09 15,220,850.95 492.48 *6
Wages payable 5,738,439.18 9,553,292.94 (39.93) *7
Taxes payable -4,407,138.30 15,006,102.34 (129.37) *8
Operating income 118,250,169.14 229,743,390.32 (48.53) *9
Operating cost 96,487,715.91 195,082,954.37 (50.54) *10
Administration expenses 36,953,716.61 25,189,742.50 46.70 *11
Investment income 2,853,055.86 6,688.65 42,555.18 *12
Non-operating revenue 1,927,068.41 6,133,709.15 (68.58) *13
Income tax expenses 517,581.33 3,052,026.68 (83.04) *14
*1: the amount of house sales of Emerald Apartment was received in advance in the Period;
*2: the amount for goods are collected;
*3: the goods received in the Period, account for tea paid in advance decreased;
*4: imput VAT ready for decduction increased in the Period;
*5: new bank loans increased in the Period;
*6: account of pre-sale of Emerald Apartment increased in the Period;
*7: performance for year of 2013 has paid in the Period;
*8:the income tax for year of 2013 was paid in the Period and tax for Emerald Apartment project was paid in
advance;
*9: equity of Shenshenbao Huafa transferred in the Period, and corresonding operating income decreased;
*10: equity of Shenshenbao Huafa transferred in the Period, and corresonding operating cost decreased;
*11: the charges for employee, intermediary, brand and promotion increased;
*12: obtained income from equity of Shenshenbao Huafa transferred;
*13: the government subsidy decreased in the Period;
*14: income tax expenses decreased in the Period
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Section IX. Documents available for Reference
The office of board in the company had the complete reference file for CSRC, Shenzhen Stock
Exchange and shareholders of the company to query, including:
1. Text of financial statement with signature and seals of legal person, person in charge of
accounting works and person in charge of accounting institution;
2. Original and official copies of all documents which have been disclosed on Securities Times,
China Securities Journal, and Hong Kong Commercial Daily in the report period;
4. Original copies of 2014 Semi-Annual Report with signature of the Chairman.
Shenzhen Shenbao Industrial Co., Ltd.
Chairman of Board: Zheng Yuxi
15 August 2014
144
