深圳深宝实业股份有限公司 2016 年半年度报告全文
深圳深宝实业股份有限公司
SHENZHEN SHENBAO INDUSTRIAL CO., LTD.
SEMI-ANNUAL REPORT 2016
August 2016
1
深圳深宝实业股份有限公司 2016 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 2016 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 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.
2
深圳深宝实业股份有限公司 2016 年半年度报告全文
Content
Section I. Important Notice, Contents and Paraphrase ................................................. 2
Section II Company profile ........................................................................................... 5
Section III. Accounting data and summary of financial indexes .................................. 7
Section IV. Report of the Board of Directors ................................................................ 9
Section V. Important Events ........................................................................................ 16
Section VI. Changes in Shares and Particulars about Shareholders ........................... 19
Section VII. Directors, Supervisors and Senior Executives ........................................ 23
Section VIII. Financial Report .................................................................................... 24
Section IX. Documents available for Reference ....................................................... 127
3
深圳深宝实业股份有限公司 2016 年半年度报告全文
Paraphrase
Items Refers to Contents
Shenshenbao/Shenbao Company/ Listed
Refers to Shenzhen Shenbao Industrial Co., Ltd
Company /the Company/
Shenbao Huacheng Refers to Shenzhen Shenbao Huacheng Science and Technology Co.,Ltd
Wuyuan Ju Fang Yong Refers to Wuyuan County Ju Fang Yong Tea Industry Co., Ltd.
Hangzhou Ju Fang Yong Refers to Hangzhou Ju Fang Yong Holding Co., Ltd.
Shenbao Technology Center Refers to Shenzhen Shenbao Technology Center Co., Ltd.
Huizhou Shenbao Science & Technology Refers to Huizhou Shenbao Science & Technology Co., Ltd.
Shenbao Sanjing Refers to Shenzhen Shenbao Sanjing Food & Beverage 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.
Shenbao Yuxing Refers to Fujian Mount Wuyi Shenbao Yuxing Tea Co., Ltd.
Fuhaitang Ecological Refers to Fuhaitang Tea Ecological Technology Co., Ltd.
Chunshi Network Refers to Hangzhou Chunshi Network Technology Co.,Ltd.
Shenshenbao Tea Culture Refers to Shenzhen Shenshenbao Tea Culture Management Co., Ltd.
Pu’er Tea Trading Center Refers to Yunnan Pu’er Tea Trading Center Co., Ltd.
Pu’er Supply Chain Refers to Yunnan Shenbao Pu’er Supply Chain Management Co., Ltd.
Jufangyong Trading Refers to Hangzhou Jufangyong Trading Co., Ltd
Agricultural Products Refers to Shenzhen Agricultural Products Co., Ltd
Shenzhen Investment Holding Refers to Shenzhen Investment Holding Co., Ltd
Shenzhen Municipal People’s Government State-owned Assets
Shenzhen SASAC Refers to
Supervision & Administration Commission
CBC Refers to Shenzhen China Bicycle Company (Holdings) Limited
CSRC Refers to China Securities Regulation Commission
Article of Association Refers to Article of Association of Shenzhen Shenbao Industrial Co., Ltd
RMB/10 thousand Yuan Refers to CNY/ten thousand Yuan
4
深圳深宝实业股份有限公司 2016 年半年度报告全文
Section II Company profile
I. Company information
Short form for share SHENSHENBAO-A, SHENSHENBAO-B Stock code 000019, 200019
Listing stock exchange Shenzhen Stock Exchange
Chinese name of the Company 深圳深宝实业股份有限公司
Abbr. of Chinese name of the
深宝
Company(if applicable)
English name of the
SHENZHEN SHENBAO INDUSTRIAL CO.,LTD.
Company(if applicable)
Abbr. of English name of the
SBSY
Company(if applicable)
Legal Representative Zheng Yuxi
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Li Yiyan Huang Bingxia
8/F, Tower-B, Building 4, Software 8/F, Tower-B, Building 4, Software
Industry Base, Science & Technology Park Industry Base, Science & Technology Park
Contact add.
(South), Xuefu Road, Nanshan District, (South), Xuefu Road, Nanshan 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 no change in
reporting period, found more details in Annual Report 2015
5
深圳深宝实业股份有限公司 2016 年半年度报告全文
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 2015
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 2015
6
深圳深宝实业股份有限公司 2016 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
Current period Same period of last year
this report y-o-y
Operating revenue (RMB) 149,155,529.71 163,356,143.27 -8.69%
Net profit attributable to shareholders of the listed
-15,099,180.63 5,317,533.95 -383.95%
company(RMB)
Net profit attributable to shareholders of the listed
company after deducting non-recurring gains and -20,333,457.37 -2,504,499.15 -711.88%
losses(RMB)
Net cash flow arising from operating
31,597,947.36 21,913,616.18 44.19%
activities(RMB)
Basic earnings per share (RMB/Share) -0.0334 0.0118 -383.05%
Diluted earnings per share (RMB/Share) -0.0334 0.0118 -383.05%
Weighted average ROE -1.63% 0.55% -2.18%
Increase/decrease in
this report-end over
End of current period End of last period
that of last
period-end
Total assets (RMB) 1,047,312,328.49 1,060,458,757.46 -1.24%
Net assets attributable to shareholder of listed
920,523,179.31 935,622,280.75 -1.61%
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)
√ Applicable □ Not applicable
In RMB
Net profit attributable to shareholders of Net assets attributable to shareholders of listed
listed company company
7
深圳深宝实业股份有限公司 2016 年半年度报告全文
Amount in last Amount at
Amount in this period Amount at period-end
period period-begin
Chinese GAAP -15,099,180.63 5,317,533.95 920,523,179.31 935,622,280.75
Items and amount adjusted by IAS
Adjustment for other payable fund of
0 0 1,067,000.00 1,067,000.00
stock market regulation
IAS -15,099,180.63 5,317,533.95 921,590,179.31 936,689,280.75
III. Items and amounts of extraordinary profit (gains)/loss
√ Applicable □ Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the write-off that
-6,410.81
accrued for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not including the subsidy
enjoyed in quota or ration according to national standards, which are closely relevant 1,876,962.20
to enterprise’s business)
Profit and loss of assets delegation on others’ investment or management 665,169.36
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
-848,856.19
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 the aforementioned items 3,976,775.16
Less: impact on income tax 304,198.28
Impact on minority shareholders’ equity (post-tax) 125,164.70
Total 5,234,276.74 --
8
深圳深宝实业股份有限公司 2016 年半年度报告全文
Section IV. Report of the Board of Directors
I. Introduction
During the reporting period, challenged by the changing market conditions, the Company endeavored to
implement various operating measures to strengthen major science and technology power, promote product
upgrade and innovation, expand main business operation and accelerate progress of each business segment.
Benefitting from the core strengths of scientific innovation, the Company dramatically developed three businesses,
namely business of healthcare technology which mainly referred to the technology of plant extraction developed
by Shenbao Huacheng, business of industrial service which mainly referred to industrial financing, e-commerce
and modern logistics developed by the Tea Exchange as well as the business of life experience which mainly
referred to modern tea culture consumption engaged by Tanbank/Fuhaitang. Based on these, we succeeded to
establish our industrial layout consisting of four major business segments including further processing, sales of
quality tea, tea life experience and E-commerce of tea related products. During the first half year of 2016, the
Company managed to increase sales, seek for substantial change, and thus to implement our development strategy
on a stable basis, enabling itself to transform to an enterprise highlighting in technology, service and commerce in
general.
During the reporting period, the Company fully capitalized the effect of Shenbao technology center as the main
R&D entity, continued to reinforce its core strengths in scientific research, activated value increment, and realized
product innovation and upgrade. It successfully developed nearly 30 tea drinking products which were launched to
market during the first half year, providing strong support for market expansion, customer service and
improvement of industrial chain technology of our Company. Puer tea trading center commenced construction for
trading system. till now, it has completed comprehensive test in respect of the trading software, and succeeded to
launch the first kind of product in the system. as new products would continue to be listed in the system for sale,
puer tea trading center will experience steady trading business, continue to increase market share, form its trading
products to a certain extent, realize combination between trading and consumption and improve value of the
platform. Our high-end tea brands were continuously dedicated to satisfy the customer base which was deeply
fond of tea leaf, which in turn enabled us to consolidate loyalty of our customers. The fashion and fast-drinking
brand “Fuhaitang” operated traditional tea leaf drinking industry by adoption of internet model, through which, it
succeeded to act as the pioneer of a young, fashion and healthy tea life through the innovative business model
integrating improved experiment space, Wechat platform and E-commerce platform and integration of business
resources. the brand Teabank promoting for tea life experience space was offering all the products, including raw
leaf tea, drinking, tea sneak, teapot and tea book, both online and offline, aiming to diversify experience space for
tea culture, which in turn helped the Company to integrate effect of marketing, promotion and brand
dissemination.
9
深圳深宝实业股份有限公司 2016 年半年度报告全文
For the first half year of 2016, the Company recognized total operating income of RMB149,155,529.71,
representing a year-on-year decrease of 8.69%; recognized operating profit of RMB(25,809,361.48), representing
a year-on-year decrease of 2,031.54%; and recognized net profit attributable to shareholders of listed company of
RMB(15,099,180.63), representing a year-on-year decrease of 383.95%. the major reason accounting for the
change of operating profit and net profit attributable to shareholders of listed company was that the Company
recorded revenue from the project of Emerald Apartment for the corresponding period of last year, while these
was no such revenue for this period; Shenzhen Shenshenbao Tea Culture Business Management Company
Limited recorded increased losses as compared to the corresponding period of last year.
II. Main business analysis
Y-o-y changes of main financial data
In RMB
Y-o-y
Same period of last
Current period increase/decre Reasons for changes
year
ase
Operation revenue 149,155,529.71 163,356,143.27 -8.69%
Operation cost 116,893,235.04 105,577,753.76 10.72%
Sales expenses 20,601,283.18 16,889,715.14 21.98%
Management
34,369,699.17 34,606,106.08 -0.68%
expenses
Financial expenses 213,297.58 -461,784.95 146.19% Interest revenue in the Period declined
Income tax expense -501,745.09 4,685,304.78 -110.71% Income tax in the Period declined
R&D investment 1,442,268.22 1,405,033.17 2.65%
Net cash flow
arising from 31,597,947.36 21,913,616.18 44.19% Large margin received in the Period
operation activities
Net cash flow
The investment amount paid in last period was
arising from -33,549,430.36 -74,385,187.66 54.90%
collected in the Period
investment activities
Net cash flow
arising from -790,774.97 -33,859,000.00 97.66% Bank loans are paid in last period
financing activities
Net increase of cash Bank loans are paid in last period and
-2,614,834.69 -86,373,233.51 96.97%
and cash equivalent investment amount paid
Account paid in Account paid in advance for raw materials are
9,341,482.72 18,601,600.34 -49.78%
advance received in the Period
Other current assets 23,953,138.43 2,012,976.56 1,089.94% Purchasing financial products in the Period
Other non-current 0 9,381,000.00 -100.00% The account paid in advance for lands in the
10
深圳深宝实业股份有限公司 2016 年半年度报告全文
assets Period are transferred to intangible assets
Performance pay for last year was paid in the
Wages payable 8,012,313.98 12,357,984.32 -35.16%
Period
Other payables 45,362,209.13 23,637,606.15 91.91% Large margin received in the Period
Business tax and There were large land VAT paid in last period
945,881.40 9,353,461.16 -89.89%
surcharge and no such payment occurred in the Period
Income of change of Mainly due to the change of market value of
-848,856.19 3,176,115.41 -126.73%
fair value shares in the period
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 141,888,486.47 115,218,062.64 18.80% 21.95% 16.88% 3.53%
Trading 3,344,094.13 1,581,833.40 52.70% 100% 100% 52.70%
Real estate 0 0 0 -100.00% -100.00% -84.92%
Tenancy services 1,337,229.31 93,339.00 93.02% 144.16% 100% -6.98%
According to products
Soft drink 12,094,356.04 9,909,269.02 18.07% 9.41% 20.97% -7.83%
Condiment 4,414,608.86 2,743,442.34 37.86% -0.39% 3.94% -2.58%
Tea products 128,723,615.70 104,147,184.68 19.09% 27.62% 18.68% 6.09%
Commercial
residential 0 0 0 -100.00% -100.00% -84.92%
building
11
深圳深宝实业股份有限公司 2016 年半年度报告全文
Property leasing 1,337,229.31 93,339.00 93.02% 144.16% 100% -6.98%
According to region
Exportation 8,922,956.61 6,632,031.14 25.67% 101.64% 105.08% -1.25%
South China 47,302,677.70 32,653,969.36 30.97% -42.81% -8.19% -26.03%
North China 7,128,216.90 6,811,535.12 4.44% -21.38% -15.04% -7.14%
East China 69,508,340.44 59,462,469.60 14.45% 41.24% 39.84% 0.85%
Central China 9,596,643.41 7,862,214.16 18.07% -31.75% -36.15% 5.63%
Other 4,110,974.85 3,471,015.66 15.57% 8.57% -11.53% 19.18%
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) Foreign investment
√ Applicable □ Not applicable
Foreign investment
Investment amount in the Period
Investment amount in same period of last year(RMB) Changes
(RMB)
6,375,000.00 3,825,000.00 66.67%
Invested company
Equity ratio of the listed
Company Main business company in invested
company
Wholesale of non-alcoholic beverage and tea leaf; retailing of
non-alcoholic beverage and tea leaf; talent training; package
decoration design service; wholesale of tea leaf plants and beverage
plants; import & export of merchandises (excluding those subject to
special operation and special management); occupational skill
Guangzhou Shenbao Mendao Tea
training (excluding those the operation of which is subject to 45.00%
Co., Ltd.
approval); other storage (excluding storage of prude oil, completed
oil, storage of gas, and storage of dangerous items) and storage of
other agricultural products. With respect to projects which are
subject to approval by laws, their operation shall commence only
when the approval is obtained.
Prepare construction of Puer Tea Trading Center which provides
Yunnan Pu’er Tea Trading Center premise and facilities for bulk transaction of tea and other
55.00%
Co., Ltd. agricultural by-products an industrial-based raw materials and
relevant financial services, and provides intermediary, broker,
12
深圳深宝实业股份有限公司 2016 年半年度报告全文
auction, financing and consultancy services; investment and
management associated with other projects; conference and
exhibition service. With respect to projects which are subject to
approval by laws, their operation shall commence only when the
approval is obtained.
(2) Securities investment
√ Applicable □ Not applicable
Proporti
Amount of Proporti
on of Amount of
Initial stock-hold on of
Variet stock-ho stock-hold
Code of Short form investme ing at the stock-ho Book value at the Gains and loss
y of lding at ing at the Accounti Source
securitie of nt beginning lding at end of the period in the reporting
securit the end of the ng subject of stock
s securities cost(RM of the the end (RMB) (RMB)
ies beginnin period
B) period of the
g of the (Share)
(Share) period
period
Paid
shares
Financial
Zhonghua- assets from
Stock 000017 -- 258,011 0.05% 258,011 0.05% 2,737,496.71 -848,856.19
A available debt
for sale
reorgani
zation
Total -- 258,011 -- 258,011 -- 2,737,496.71 -848,856.19 -- --
2. Trust management, derivative investment and entrusted loans
(1) Trust management
√ Applicable □ Not applicable
In 10 thousand Yuan
Principal
Relate Related Remun Provision Amount
Amount actually Predicte
d transacti eration for actually
Trustee Products entruste Stars Ended received d
relatio on determ impairment loss in the
d in the income
nship (Y/N) ination (if any) Period
period
Pledge
Shenzhen
Financial able
branch of N/A N 3,000 2016-01-22 2016-04-22 3,000 -- 22.5 22.5
product incom
SPDB
e
Floatin
China CITIC Financial
N/A N 5,000 2016-01-21 2016-02-17 g 5,000 -- 20.02 20.02
Bank product
profit
Shenzhen Financial Pledge
N/A N 3,000 2016-02-26 2016-05-26 3,000 -- 24 24
branch of product able
13
深圳深宝实业股份有限公司 2016 年半年度报告全文
SPDB incom
e
Pledge
Shenzhen
Financial able
branch of N/A N 2,000 2016-06-17 2016-09-18 -- 15.5
product incom
SPDB
e
Total 13,000 -- -- -- 11,000 -- 82.02 66.52
Capital source of the trust management Owned fund
Accumulative overdue principal and
0
income unrevoked
Cases involving lawsuit(if applicable) Not applicable
Date of the Board disclosed for trust 2015-03-21
management approval (if any) 2016-04-26
Date of the shareholder’s general meeting
disclosed for trust management approval (if Not applicable
any)
3. Application of raised proceeds
□Applicable √ Not applicable
There are no applications of raised proceeds in the period
4. Main subsidiaries and stock-jointly companies
√ Applicable □ Not applicable
Particular about main subsidiaries and stock-jointly companies
In RMB
Main
Company Register Operating Operating
Type Industries products or Total assets Net Assets Net profit
name capital revenue profit
service
Hangzhou Comprehen Production
175,000,00 154,262,23 137,566,39 14,730,047. -5,756,82
Ju Fang Subsidiary sive and sales of -4,894,912.46
0.00 8.79 4.74 95 3.57
Yong tea products
Shenshenba Comprehen Investment
50,000,000. 44,112,044. 37,268,137. 3,256,699.3 -7,455,83
o Subsidiary sive managemen -7,457,045.09
00 24 70 6 7.59
Investment t
VI. Prediction of business performance from January – September 2016
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
14
深圳深宝实业股份有限公司 2016 年半年度报告全文
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
Implementation of the plan relating to conversion of capital reserve into share capital during the reporting period:
On 17 May 2016, the Company convened annual general meeting for 2015, to consider and approve the Equity
Distribution Preplan for 2015 which stated that: based on the total share capital of 301,080,184 shares as of 31
December 2015, 5 shares are issued to all the members of the Company for each 10 shares they hold out of the
capital reserve. The Company determined not to pay cash dividends, and bonus shares neither. As of 24 June 2016,
the above equity distribution plan has been implemented in full.
Prior to this equity distribution, the total share capital of the Company is 301,080,184, upon completion of the
equity distribution, the total share capital increases to 451,620,276 shares.
Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article of Association (Y/N): Y
Well-defined and clearly dividend standards and proportion (Y/N): Y
Completed relevant decision-making process and mechanism (Y/N): Y
Independent directors perform duties completely and play a proper role (Y/N): Y
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 changed
Y
(Y/N):
VIII. Profit distribution and share converted from capital reserve in the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital
reserve either in semi-annual of the Year.
IX. In the report period, reception of research, communication and interview
□Applicable √Not applicable
15
深圳深宝实业股份有限公司 2016 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. Lawsuits
Significant lawsuits and arbitrations
□ Applicable √ Not applicable
There are no significant lawsuits and arbitrations occurred in the period
Other lawsuits
□ Applicable √ Not applicable
III. Media questioned
□ Applicable √ Not applicable
The Company has no media universality query in the Period
IV. Significant contracts and its implementation
Guarantees
√ Applicable □ Not applicable
In 10 thousand Yuan
Guarantee for the subsidiaries (not including guarantees to subsidiaries)
Guarante
Actual date of Complete
Name of the Related Guaran e for
happening (Date Actual Guarantee Guarantee implemen
Company Announcement tee related
of signing guarantee limit type term tation
guaranteed disclosure date limit party
agreement) (Y/N)
(Y/N)
Guarantee for the subsidiaries
Guarante
Actual date of Complete
Name of the Related Guaran e for
happening (Date Actual Guarantee Guarantee implemen
Company Announcement tee related
of signing guarantee limit type term tation
guaranteed disclosure date limit party
agreement) (Y/N)
(Y/N)
Shenzhen Shenbao
Joint liability
Huacheng Science 2015-04-21 3,000 2015-07-27 3,000 One year N Y
assurance
and Technology
16
深圳深宝实业股份有限公司 2016 年半年度报告全文
Co.,Ltd
Total amount of approving Total amount of actual
guarantee for subsidiaries in report occurred guarantee for
0 3,000
period (B1) subsidiaries in report period
(B2)
Total amount of approved guarantee Total balance of actual
for subsidiaries at the end of guarantee for subsidiaries at
3,000 3,000
reporting period (B3) the end of reporting period
(B4)
Guarantee to subsidiary from subsidiary
Related Guarante
Actual date of Complete
Name of the Announce e for
Guarantee happening (Date Actual Guarantee Guarantee implemen
Company ment related
limit of signing guarantee limit type term tation
guaranteed disclosure party
agreement) (Y/N)
date (Y/N)
Total amount of guarantee of the Company( total of three abovementioned guarantee)
Total amount of approving Total amount of actual
guarantee in report 0 occurred guarantee in report 3,000
period(A1+B1+C1) period(A2+B2+C2)
Total amount of approved Total balance of actual
guarantee at the end of report 3,000 guarantee at the end of report 3,000
period (A3+B3+C3) period(A4+B4+C4)
The proportion of the total amount of actually guarantee in the
3.26%
net assets of the Company(that is A4+ B4+C4)
Including:
Amount of guarantee for shareholders, actual controller and its
0
related parties(D)
The debts guarantee amount provided for the guaranteed
parties whose assets-liability ratio exceed 70% directly or 0
indirectly(E)
Proportion of total amount of guarantee in net assets of the
0
Company exceed 50%(F)
Total amount of the aforesaid three guarantees(D+E+F) 0
Explanations on related discharge duty from overdue guarantee
Not applicable
(if any)
Explanations on external guarantee against regulated
Not applicable
procedures (if any)
V. Commitments from the Company or shareholder with over 5% share held in reporting period or continues to
reporting period
√ Applicable □Not applicable
Commitmen Commitment Implementati
Commitments Promisee Content of commitments
t date term on
Commitments for
Share Merger Reform
Commitments in report of
acquisition or equity change
17
深圳深宝实业股份有限公司 2016 年半年度报告全文
Commitments in assets
reorganization
Commitments in initial public
offering or re-financing
Some of the directors, supervisors
and senior executives 1. Completed
commitment that volunteer to overweight
Zheng Yuxi, Yan increasing holding-share of the before 10
Zesong, Ling Company’s A-stock (stock code August 2015;
Other commitments for
Hong, Li Fang, Li 000019) with self-raised funds 2. Not to
medium and small 2015-07-10 Completed
Yiyan, Yao within one month since 10 July reducing
shareholders
Xiaopeng and 2015, and promise not to reducing holding-shares
Wang Zhiping the shares within six months. within six
Found more in the announcement months after
released on Juchao Website dated overweight
10 July 2015
Completed on time(Y/N) Y
18
深圳深宝实业股份有限公司 2016 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
Bon
New Ot
us Capitalization of
Amount Proportion shares he Subtotal Amount Proportion
shar public reserve
issued rs
es
I. Restricted shares 17,615,441 5.85% 8,807,720 8,807,720 26,423,161 5.85%
1. State-owned shares 0 0 0 0 0 0
2. State-owned corporate
8,140,475 2.70% 4,070,238 4,070,238 12,210,713 2.70%
shares
3. Other domestic shares 9,442,641 3.14% 4,721,320 4,721,320 14,163,961 3.14%
Including: Domestic legal
9,324,141 3.10% 4,662,070 4,662,070 13,986,211 3.10%
person’s shares
Domestic nature
118,500 0.04% 59,250 59,250 177,750 0.04%
person’s shares
4. Foreign shares 32,325 0.01% 16,162 16,162 48,487 0.01%
Including: Foreign
0 0 0 0 0 0
corporate shares
overseas nature
32,325 0.01% 16,162 16,162 48,487 0.01%
person’s share
II. Un-restricted shares 283,464,743 94.15% 141,732,372 141,732,372 425,197,115 94.15%
1. RMB common shares 252,101,543 83.73% 126,050,772 126,050,772 378,152,315 83.73%
2. Domestically listed
31,363,200 10.42% 15,681,600 15,681,600 47,044,800 10.42%
foreign shares
3. Foreign listed foreign
0 0 0 0 0 0
shares
4. Other 0 0 0 0 0 0
III. Total shares 301,080,184 100.00% 150,540,092 150,540,092 451,620,276 100.00%
Reasons for share changed
√Applicable □Not applicable
In June 2016, the Company carried out the interest distribution plan for year of 2015, that is, based on total shares
301,080,184 at end of 2015, distributed 5 shares for every 10 shaers held by whole shareholders of the Company
with capital reserves, totally 150,540,092 shares are incerase by transferring. Found more in the annoucement
released on Juchao Website (www.cninfo.com.cn) dated 15 June 2016
Approval of the share changed
19
深圳深宝实业股份有限公司 2016 年半年度报告全文
√Applicable □Not applicable
The interest distribution plan for year of 2015 has been deliberated and approved by the 4th session of 9th BOD
held on 22 April 2016 and the AGM of 2015 held on 17 May 2016.
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
√Applicable □Not applicable
During the period, after interest distribution plan for year of 2015, as for the diluted calculation based on new
shares 451,620,276, The basic EPS for year of 2015 and for semi-annual of 2016 was counted as -0.0781
Yuan/Share and -0.0334 Yuan/Share respectively; net assets PS respectively was 2.07 Yuan/Share and 2.04
Yuan/Share.
Explanation on changes of total shares of the Company as well as the shareholders structure and assets &
liabilities structure
√Applicable □Not applicable
The Company carried out interest distribution plan for year of 2015 in the Period, total shares of the Company
increase to 451,620,276 shares from 301,080,184 shares, the restricted shares comes to 26,423,161 shares from
17,615,441 shares, and un-restricted shares increased to 425,197,115 shares from 283,464,743 shares.
II. Amount of shareholders of the Company and particulars about shares holding
In Share
Total preference shareholders
Total common shareholders at with voting rights recovered at
71,493 0
period-end end of reporting period (if any)
(see Note 8)
Particulars about common shares held above 5% by shareholders or top 10 common shareholding
Total common Amount of Number of share
Proporti Amount of pledged/frozen
Full name of Nature of on of shareholders Changes in restrict un-restrict
Shareholders shareholder shares common shares State of Amoun
at the end of report period common
held held
share t
report period shares held
Shenzhen Agricultural
Other 19.09% 86,211,176 28,737,059 13,986,211 72,224,965
Products Co., Ltd
Shenzhen Investment State-owned
16.00% 72,258,457 24,086,153 12,210,713 60,047,744
Holding Co., Ltd legal person
Domestic
Sun Huiming 0.72% 3,263,775 1,087,925 0 3,263,775
nature person
Domestic
Liang Deshao 0.38% 1,693,800 1,693,800 0 1,693,800
nature person
20
深圳深宝实业股份有限公司 2016 年半年度报告全文
Domestic
Yang Huijuan 0.33% 1,490,000 1,490,000 0 1,490,000
nature person
Central Huijin Assets State-owned
0.30% 1,338,750 446,250 0 1,338,750
Management Co., Ltd. legal person
Domestic
Liu Qingfu 0.27% 1,231,800 0 0 1,231,800
nature person
Domestic
Wang Guanghua 0.26% 1,163,250 409,150 0 1,163,250
nature person
Domestic
Zhu Xiaowei 0.24% 1,074,000 74,000 0 1,074,000
nature person
Domestic
Feng Yanmin 0.23% 1,035,693 1,035,693 0 1,035,693
nature person
Shenzhen SASAC directly holds 26.76%equity interests of Agricultural Products, indirectly
holds 5.24% equity interests of Agricultural Products and directly holds 00% equity interests
Explanation on associated relationship
of Shenzhen Investment Holding. Except for this, the Company was not aware of any
among the aforesaid shareholders
related relationship between other 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 common shareholders with un-restrict shares held
Amount of listed common shares held at Type of shares
Shareholders
end of the Period Type Amount
Shenzhen Agricultural Products Co.,
72,224,965 RMB common shares 72,224,965
Ltd
Shenzhen Investment Holding Co.,
60,047,744 RMB common shares 60,047,744
Ltd
Overseas listed foreign
Sun Huiming 3,263,775 3,263,775
shares
Liang Deshao 1,693,800 RMB common shares 1,693,800
Yang Huijuan 1,490,000 RMB common shares 1,490,000
Central Huijin Assets Management
1,338,750 RMB common shares 1,338,750
Co., Ltd.
Liu Qingfu 1,231,800 RMB common shares 1,231,800
Wang Guanghua 1,163,250 RMB common shares 1,163,250
Zhu Xiaowei 1,074,000 RMB common shares 1,074,000
Feng Yanmin 1,035,693 RMB common shares 1,035,693
Expiation on associated relationship Shenzhen SASAC directly holds 28.76%equity interests of Agricultural Products, indirectly
or consistent actors within the top 10 holds 5.24% equity interests of Agricultural Products and directly holds 00% equity interests
un-restrict common shareholders and of Shenzhen Investment Holding. Except for this, the Company was not aware of any
between top 10 un-restrict common related relationship between other shareholders above, and whether they belonged to parties
21
深圳深宝实业股份有限公司 2016 年半年度报告全文
shareholders and top 10 common acting in concert as defined by the Acquisition Management Method of Listed Company.
shareholders
During the reporting period, shareholder of the Company Liu Qingfu holds 1,231,800 shares
through the guarantee securities account of client credit trading under the name of Haitong
Explanation on top 10 common Securities Co., Ltd.; shareholder of the Company Zhu Xiaowei holds 1,074,000 shares
shareholders involving margin through the guarantee securities account of client credit trading under the name of Central
business (if any) (see note 4) China Securities Co., Ltd.; shareholder of the Company Liang Deshao holds 578,250 shares
through the guarantee securities account of client credit trading under the name of CITIC
Securities Co., Ltd.
Agreed to buy back deals occurred in Period from top 10 common shareholders, top 10 un-restricted common
shareholders
□Yes √ No
There no agreed to buy back deals occurred in Period from top 10 common shareholders, top 10 un-restricted
common shareholders
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.
22
深圳深宝实业股份有限公司 2016 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 2015
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 2015
23
深圳深宝实业股份有限公司 2016 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
2016-06-30
In RMB
Items Ending balance Opening balance
Current assets:
Monetary funds 145,399,052.46 148,013,887.15
Financial liability measured by fair
value and with variation reckoned into 2,737,496.71 3,586,352.90
current gains/losses
Notes receivable 38,922.90
Accounts receivable 68,740,022.82 75,948,016.12
Accounts paid in advance 9,341,482.72 18,601,600.34
Interest receivable
Dividend receivable
Other receivables 22,161,701.78 22,019,771.94
Inventories 164,387,452.83 175,822,373.53
Divided into assets held for sale
Non-current asset due within one year
Other current assets 23,953,138.43 2,012,976.56
Total current assets 436,720,347.75 446,043,901.44
Non-current assets:
24
深圳深宝实业股份有限公司 2016 年半年度报告全文
Financial assets available for sale 57,500.00 57,500.00
Hold-to-maturity investment
Long-term account receivable
Long-term equity investment 6,187,132.90 7,034,953.91
Investment real estate 19,146,870.15 18,809,193.68
Fixed assets 357,206,702.46 358,418,473.54
Construction in process 7,122,414.37 6,790,574.90
Engineering material
Disposal of fixed asset
Productive biological assets 431,309.82 436,156.00
Intangible assets 199,348,761.23 193,057,370.27
Expense on Research and Development 1,438,666.69
Goodwill
Long-term expenses to be apportioned 14,952,938.94 15,993,354.47
Deferred income tax asset 4,699,684.18 4,436,279.25
Other non-current asset 9,381,000.00
Total non-current asset 610,591,980.74 614,414,856.02
Total assets 1,047,312,328.49 1,060,458,757.46
Current liabilities:
Short-term loans
Financial liability measured by fair
value and with its variation reckoned
into current gains/losses
Notes payable
Accounts payable 19,406,017.30 24,821,587.58
Accounts received in advance 4,137,758.58 3,714,591.93
Wage payable 8,012,313.98 12,357,984.32
Taxes payable 17,685,277.49 21,308,373.62
Interest payable
Dividend payable 2,909,182.74 2,909,182.74
Other accounts payable 45,362,209.13 23,637,606.15
Divided into liability held for sale
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 97,512,759.22 88,749,326.34
25
深圳深宝实业股份有限公司 2016 年半年度报告全文
Non-current liabilities:
Long-term loans
Long-term account payable
Long-term wages payable
Special accounts payable
Projected liabilities
Deferred income 12,411,354.41 12,932,278.81
Deferred income tax liabilities 1,149,043.82 1,639,143.22
Other non-current liabilities
Total non-current liabilities 13,560,398.23 14,571,422.03
Total liabilities 111,073,157.45 103,320,748.37
Owners’ equity:
Share capital 451,620,276.00 301,080,184.00
Capital public reserve 367,646,647.78 518,186,660.59
Less: Inventory shares
Other comprehensive income
Surplus public reserve 49,670,863.23 49,670,863.23
Retained profit 51,585,392.30 66,684,572.93
Total shareholders’ equity attributable
920,523,179.31 935,622,280.75
to parent Company
Minority interests 15,715,991.73 21,515,728.34
Total shareholders’ equity 936,239,171.04 957,138,009.09
Total liabilities and shareholders’ equity 1,047,312,328.49 1,060,458,757.46
Legal person: Zheng Yuxi
Person in Charge of Accounting Works: Wang Zhiping
Person in Charge of Accounting Institution: Xu Qiming
2. Balance sheet of parent company
Prepared by Shenzhen Shenbao Industrial Co., Ltd
2016-06-30
In RMB
Items Ending balance Opening balance
Current assets:
Monetary funds 127,785,850.91 116,074,656.42
Financial assets measured by fair value
and with variation reckoned into current 2,737,496.71 3,586,352.90
gains/losses
26
深圳深宝实业股份有限公司 2016 年半年度报告全文
Notes receivable
Accounts receivable 27,755,196.01 32,750,583.18
Accounts paid in advance 2,903,020.00 6,476,875.00
Interest receivable
Dividend receivable
Other receivables 217,511,407.87 222,807,412.34
Inventories 10,143,654.38 40,232,342.98
Divided into assets held for sale
Non-current asset due within one year
Other current assets 20,276,861.86 267,230.32
Total current assets 409,113,487.74 422,195,453.14
Non-current assets:
Financial assets available for sale
Hold-to-maturity investment
Long-term account receivable
Long-term equity investment 899,247,650.39 892,812,451.85
Investment real estate 40,091,792.64 40,167,700.24
Fixed assets 34,764,455.40 34,546,366.05
Construction in process
Engineering material
Disposal of fixed asset
Productive biological assets 431,309.82 436,156.00
Intangible assets 7,724,944.23 7,692,860.86
Expense on Research and Development
Goodwill
Long-term expenses to be apportioned 948,920.45 1,060,072.56
Deferred income tax asset 3,269,308.15 3,005,903.22
Other non-current asset
Total non-current asset 986,478,381.08 979,721,510.78
Total assets 1,395,591,868.82 1,401,916,963.92
Current liabilities:
Short-term loans
Financial liability measured by fair
value and with its variation reckoned
into current gains/losses
27
深圳深宝实业股份有限公司 2016 年半年度报告全文
Notes payable
Accounts payable 30,965,544.26 50,179,887.87
Accounts received in advance 1,270,817.01 377,054.09
Wage payable 2,707,724.69 6,073,389.24
Taxes payable 16,197,380.03 19,194,680.96
Interest payable
Dividend payable 2,909,182.74 2,909,182.74
Other accounts payable 223,624,209.42 200,789,188.11
Divided into liability held for sale
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 277,674,858.15 279,523,383.01
Non-current liabilities:
Long-term loans
Long-term account payable
Long-term wages payable
Special accounts payable
Projected liabilities
Deferred income 49,457.80 49,920.00
Deferred income tax liabilities 452,164.28
Other non-current liabilities
Total non-current liabilities 49,457.80 502,084.28
Total liabilities 277,724,315.95 280,025,467.29
Shareholders’ equity:
Share capital 451,620,276.00 301,080,184.00
Capital public reserve 382,444,482.45 532,984,495.26
Less: Inventory shares
Other comprehensive income
Surplus public reserve 49,670,863.23 49,670,863.23
Retained profit 234,131,931.19 238,155,954.14
Total shareholders’ equity 1,117,867,552.87 1,121,891,496.63
Total liabilities and shareholders’ equity 1,395,591,868.82 1,401,916,963.92
Legal person: Zheng Yuxi
Person in Charge of Accounting Works: Wang Zhiping
Person in Charge of Accounting Institution: Xu Qiming
28
深圳深宝实业股份有限公司 2016 年半年度报告全文
3. Consolidate profit statement
Prepared by Shenzhen Shenbao Industrial Co., Ltd
Semi-annual 2016
In RMB
Items Amount in this period Amount in last period
I. Total operating income 149,155,529.71 163,356,143.27
Including: Operating income 149,155,529.71 163,356,143.27
II. Total operating cost 173,217,380.85 165,826,500.44
Including: Operating cost 116,893,235.04 105,577,753.76
Operating tax and extras 945,881.40 9,353,461.16
Sales expenses 20,601,283.18 16,889,715.14
Administration expenses 34,369,699.17 34,606,106.08
Financial expenses 213,297.58 -461,784.95
Losses of devaluation of asset 193,984.48 -138,750.75
Add: Changing income of fair value
-848,856.19 3,176,115.41
(Loss is listed with “-”)
Investment income (Loss is listed
-898,654.15 630,451.04
with “-”)
Including: Investment income on
-2,144,995.21 23,717.03
affiliated Company and joint venture
Exchange income (Loss is listed
with “-”)
III. Operating profit (Loss is listed with
-25,809,361.48 1,336,209.28
“-”)
Add: Non-operating income 6,218,417.29 5,923,714.27
Including: Disposal gains of
1,609.60
non-current asset
Less: Non-operating expense 371,090.74 49,812.21
Including: Disposal loss of non-current
8,020.41 14,032.21
asset
IV. Total Profit (Loss is listed with “-”) -19,962,034.93 7,210,111.34
Less: Income tax -501,745.09 4,685,304.78
V. Net profit (Loss is listed with “-”) -19,460,289.84 2,524,806.56
Net profit attributable to owner’s
-15,099,180.63 5,317,533.95
equity of parent Company
Minority shareholders’ gains and
-4,361,109.21 -2,792,727.39
losses
VI. Net after-tax of other comprehensive
income
29
深圳深宝实业股份有限公司 2016 年半年度报告全文
Net after-tax of other comprehensive
income attributable to owners of parent
company
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
(II) Other comprehensive income items
which will be reclassified subsequently to
profit or loss
1. Share of the other
comprehensive income of the investee
accounted for using equity method which
will be reclassified subsequently to profit
or loss
2. Gains or losses arising from
changes in fair value of available-for-sale
financial assets
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total consolidated income -19,460,289.84 2,524,806.56
Total consolidated income
-15,099,180.63 5,317,533.95
attributable to owners of parent Company
Total consolidated income attributable
-4,361,109.21 -2,792,727.39
to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share -0.0334 0.0118
(II) Diluted earnings per share -0.0334 0.0118
Legal person: Zheng Yuxi
Person in Charge of Accounting Works: Wang Zhiping
Person in Charge of Accounting Institution: Xu Qiming
4. Profit statement of parent company
Prepared by Shenzhen Shenbao Industrial Co., Ltd
Semi-annual 2016
In RMB
Item Amount in this period Amount in last period
I. Operation income 65,133,125.18 85,480,126.14
Less: Operation cost 59,896,259.51 43,785,055.08
Operating tax and extras 139,061.20 8,801,662.97
Sales expenses 1,653,570.46 2,071,906.33
30
深圳深宝实业股份有限公司 2016 年半年度报告全文
Administration expenses 11,125,199.86 12,442,266.36
Financial expenses 214,502.26 -271,686.64
Losses of devaluation of asset 199,473.50 -26,186.58
Add: Changing income of fair
-848,856.19 3,176,115.41
value (Loss is listed with “-”)
Investment income (Loss is listed
100,367.90 606,734.01
with “-”)
Including: Investment income on
-564,801.46
affiliated Company and joint venture
II. Operating profit (Loss is listed with
-8,843,429.90 22,459,958.04
“-”)
Add: Non-operating income 4,103,837.74 3,554,722.34
Including: Disposal gains of
non-current asset
Less: Non-operating expense
Including: Disposal loss of
non-current asset
III. Total Profit (Loss is listed with “-”) -4,739,592.16 26,014,680.38
Less: Income tax -715,569.21 4,603,015.34
IV. Net profit (Loss is listed with “-”) -4,024,022.95 21,411,665.04
V. Net after-tax of other comprehensive
income
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1. Share of the other
comprehensive income of the investee
accounted for using equity method
which will be reclassified subsequently
to profit or loss
2. Gains or losses arising from
changes in fair value of
available-for-sale financial assets
VI. Total consolidated income -4,024,022.95 21,411,665.04
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
Legal person: Zheng Yuxi
31
深圳深宝实业股份有限公司 2016 年半年度报告全文
Person in Charge of Accounting Works: Wang Zhiping
Person in Charge of Accounting Institution: Xu Qiming
5. Consolidated cash flow statement
Prepared by Shenzhen Shenbao Industrial Co., Ltd
Semi-annual 2016
In RMB
Item Amount in this period Amount in last period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 180,368,265.08 231,581,682.29
services
Write-back of tax received 182,087.90 940,545.56
Other cash received concerning
31,164,007.17 9,049,894.30
operating activities
Subtotal of cash inflow arising from
211,714,360.15 241,572,122.15
operating activities
Cash paid for purchasing
commodities and receiving labor 105,153,288.36 124,449,613.36
service
Cash paid to/for staff and workers 38,530,123.70 34,380,163.13
Taxes paid 13,663,894.12 22,788,110.39
Other cash paid concerning
22,769,106.61 38,040,619.09
operating activities
Subtotal of cash outflow arising from
180,116,412.79 219,658,505.97
operating activities
Net cash flows arising from operating
31,597,947.36 21,913,616.18
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
113,825,000.00 60,000,000.00
investment
Cash received from investment
665,169.36 606,734.01
income
Net cash received from disposal of
fixed, intangible and other long-term 13,245.00 7,000.00
assets
Net cash received from disposal of
-919,992.72
subsidiaries and other units
Other cash received concerning
investing activities
32
深圳深宝实业股份有限公司 2016 年半年度报告全文
Subtotal of cash inflow from investing
113,583,421.64 60,613,734.01
activities
Cash paid for purchasing fixed,
13,638,864.72 11,998,921.67
intangible and other long-term assets
Cash paid for investment 134,648,200.00 123,000,000.00
Net cash received from
-1,154,212.72
subsidiaries and other units
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
147,132,852.00 134,998,921.67
activities
Net cash flows arising from investing
-33,549,430.36 -74,385,187.66
activities
III. Cash flows arising from financing
activities:
Cash received from absorbing
6,300,000.00
investment
Including: Cash received from
absorbing minority shareholders’
investment by subsidiaries
Cash received from loans 50,000,000.00
Other cash received concerning
79.19
financing activities
Subtotal of cash inflow from financing
50,000,079.19 6,300,000.00
activities
Cash paid for settling debts 50,000,000.00 40,000,000.00
Cash paid for dividend and profit
790,854.16 159,000.00
distributing or interest paying
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
Other cash paid concerning
financing activities
Subtotal of cash outflow from financing
50,790,854.16 40,159,000.00
activities
Net cash flows arising from financing
-790,774.97 -33,859,000.00
activities
IV. Influence on cash due to fluctuation
127,423.28 -42,662.03
in exchange rate
V. Net increase of cash and cash
-2,614,834.69 -86,373,233.51
equivalents
Add: Balance of cash and cash
147,513,887.15 266,847,778.44
equivalents at the period -begin
33
深圳深宝实业股份有限公司 2016 年半年度报告全文
VI. Balance of cash and cash
144,899,052.46 180,474,544.93
equivalents at the period -end
Legal person: Zheng Yuxi
Person in Charge of Accounting Works: Wang Zhiping
Person in Charge of Accounting Institution: Xu Qiming
6. Cash flow statement of parent company
Prepared by Shenzhen Shenbao Industrial Co., Ltd
Semi-annual 2016
In RMB
Item Amount in this period Amount in last period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 82,209,684.08 143,902,587.96
services
Write-back of tax received 27,140.22 222,117.20
Other cash received concerning
42,175,322.72 7,389,813.31
operating activities
Subtotal of cash inflow arising from
124,412,147.02 151,514,518.47
operating activities
Cash paid for purchasing
commodities and receiving labor 57,018,521.50 67,408,641.10
service
Cash paid to/for staff and workers 10,874,944.58 9,165,978.50
Taxes paid 4,566,555.47 15,035,678.71
Other cash paid concerning
11,571,284.84 10,445,172.69
operating activities
Subtotal of cash outflow arising from
84,031,306.39 102,055,471.00
operating activities
Net cash flows arising from operating
40,380,840.63 49,459,047.47
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
110,000,000.00 60,000,000.00
investment
Cash received from investment
665,169.36 606,734.01
income
Net cash received from disposal of
fixed, intangible and other long-term
assets
Net cash received from disposal of
34
深圳深宝实业股份有限公司 2016 年半年度报告全文
subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from investing
110,665,169.36 60,606,734.01
activities
Cash paid for purchasing fixed,
1,546,631.28 667,787.00
intangible and other long-term assets
Cash paid for investment 137,000,000.00 120,000,000.00
Net cash received from subsidiaries
and other units
Other cash paid concerning investing
activities
Subtotal of cash outflow from investing
138,546,631.28 120,667,787.00
activities
Net cash flows arising from investing
-27,881,461.92 -60,061,052.99
activities
III. Cash flows arising from financing
activities:
Cash received from absorbing
investment
Cash received from loans 50,000,000.00
Other cash received concerning
79.19
financing activities
Subtotal of cash inflow from financing
50,000,079.19
activities
Cash paid for settling debts 50,000,000.00 40,000,000.00
Cash paid for dividend and profit
790,854.16 159,000.00
distributing or interest paying
Other cash paid concerning
financing activities
Subtotal of cash outflow from financing
50,790,854.16 40,159,000.00
activities
Net cash flows arising from financing
-790,774.97 -40,159,000.00
activities
IV. Influence on cash and cash
equivalents due to fluctuation in 2,590.75 -62.06
exchange rate
V. Net increase of cash and cash
11,711,194.49 -50,761,067.58
equivalents
Add: Balance of cash and cash
116,074,656.42 150,507,919.56
equivalents at the begin of year
VI. Balance of cash and cash
127,785,850.91 99,746,851.98
equivalents at the end of period
35
深圳深宝实业股份有限公司 2016 年半年度报告全文
Legal person: Zheng Yuxi
Person in Charge of Accounting Works: Wang Zhiping
Person in Charge of Accounting Institution: Xu Qiming
36
深圳深宝实业股份有限公司 2016 年半年度报告全文
7. Consolidated Statement of Changes of Owners’ Equity
Prepared by Shenzhen Shenbao Industrial Co., Ltd
Semi-annual 2016
In RMB
Current period
Owners’ equity attributable to parent company
Other
Total
Item equity instrument Minority
Less: Other Provision
Reasonable Surplus shareholders’
Share capital Perpetual Capital reserve Inventory comprehensive of general Retained profit interests
Preferred reserve reserve equity
capital Other shares income risk
stock
securities
I. Balance at the
end of the last 301,080,184.00 518,186,660.59 49,670,863.23 66,684,572.93 21,515,728.34 957,138,009.09
year
Add:
Changes of
accounting
policy
Error
correction of the
last period
Enterprise
combine under
the same
control
Other
II. Balance at the
301,080,184.00 518,186,660.59 49,670,863.23 66,684,572.93 21,515,728.34 957,138,009.09
beginning of this
37
深圳深宝实业股份有限公司 2016 年半年度报告全文
year
III. Increase/
Decrease in this
150,540,092.00 -150,540,012.81 -15,099,180.63 -5,799,736.61 -20,898,838.05
year (Loss is
listed with “-”)
(i) Total
comprehensive -15,099,180.63 -4,361,109.21 -19,460,289.84
income
(ii)
Shareholders’
-1,438,627.40 -1,438,627.40
devoted and
decreased capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with share-based
payment
4. Other -1,438,627.40 -1,438,627.40
(III) Profit
distribution
1. Withdrawal of
surplus reserves
38
深圳深宝实业股份有限公司 2016 年半年度报告全文
2. Withdrawal
of general risk
provisions
3. Distribution
for shareholders
4. Other
(IV) Carrying
forward internal
150,540,092.00 -150,540,012.81 79.19
shareholders’
equity
1. Capital
reserves
conversed to 150,540,092.00 -150,540,092.00
share capital (or
share capital)
2. Surplus
reserves
conversed to
share capital (or
share capital)
3. Remedying
loss with surplus
reserve
4. Other 79.19 79.19
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
39
深圳深宝实业股份有限公司 2016 年半年度报告全文
report period
(VI) Others
IV. Balance at
the end of the 451,620,276.00 367,646,647.78 49,670,863.23 51,585,392.30 15,715,991.73 936,239,171.04
report period
Legal person: Zheng Yuxi
Person in Charge of Accounting Works: Wang Zhiping
Person in Charge of Accounting Institution: Xu Qiming
In RMB
Last period
Owners’ equity attributable to parent company
Other
Total
Item equity instrument Less: Other Provision Minority
Reasonable Surplus shareholders’
Share capital Perpetual Capital reserve Inventory comprehensive of general Retained profit interests
Preferred reserve reserve equity
capital Other shares income risk
stock
securities
I. Balance at the
end of the last 301,080,184.00 518,186,429.67 49,483,448.58 102,128,156.68 22,760,111.15 993,638,330.08
year
Add:
Changes of
accounting
policy
Error
correction of the
last period
Enterprise
40
深圳深宝实业股份有限公司 2016 年半年度报告全文
combine under
the same
control
Other
II. Balance at the
beginning of this 301,080,184.00 518,186,429.67 49,483,448.58 102,128,156.68 22,760,111.15 993,638,330.08
year
III. Increase/
Decrease in this
230.92 187,414.65 -35,443,583.75 -1,244,382.81 -36,500,320.99
year (Loss is
listed with “-”)
(i) Total
comprehensive -35,256,169.10 -7,704,382.81 -42,960,551.91
income
(ii)
Shareholders’
6,460,000.00 6,460,000.00
devoted and
decreased capital
1.Common
shares invested 6,460,000.00 6,460,000.00
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with share-based
41
深圳深宝实业股份有限公司 2016 年半年度报告全文
payment
4. Other
(III) Profit
187,414.65 -187,414.65
distribution
1. Withdrawal of
187,414.65 -187,414.65
surplus reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for shareholders
4. Other
(IV) Carrying
forward internal
230.92 230.92
shareholders’
equity
1. Capital
reserves
conversed to
share capital (or
share capital)
2. Surplus
reserves
conversed to
share capital (or
share capital)
3. Remedying
loss with surplus
reserve
42
深圳深宝实业股份有限公司 2016 年半年度报告全文
4. Other 230.92 230.92
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
(VI) Others
IV. Balance at
the end of the 301,080,184.00 518,186,660.59 49,670,863.23 66,684,572.93 21,515,728.34 957,138,009.09
report period
Legal person: Zheng Yuxi
Person in Charge of Accounting Works: Wang Zhiping
Person in Charge of Accounting Institution: Xu Qiming
8. Statement on Changes of Owners’ Equity of Parent Company
Prepared by Shenzhen Shenbao Industrial Co., Ltd
Semi-annual 2016
In RMB
Current period
Other
equity instrument Less: Other
Item Reasonable Surplus Total shareholders’
Share capital Perpetual Capital reserve Inventory comprehensive Capital reserve
Preferred reserve reserve equity
capital Other shares income
stock
securities
I. Balance at the end of the
301,080,184.00 532,984,495.26 49,670,863.23 238,155,954.14 1,121,891,496.63
last year
43
深圳深宝实业股份有限公司 2016 年半年度报告全文
Add: Changes of
accounting policy
Error correction of the
last period
Other
II. Balance at the beginning
301,080,184.00 532,984,495.26 49,670,863.23 238,155,954.14 1,121,891,496.63
of this year
III. Increase/ Decrease in
this year (Loss is listed 150,540,092.00 -150,540,012.81 -4,024,022.95 -4,023,943.76
with “-”)
(i) Total comprehensive
-4,024,022.95 -4,024,022.95
income
(ii) Shareholders’ devoted
and decreased capital
1.Common shares invested
by shareholders
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned into
owners equity with
share-based payment
4. Other
(III) Profit distribution
1.Withdrawal of surplus
reserves
2.Distribution for
shareholders
44
深圳深宝实业股份有限公司 2016 年半年度报告全文
3. Other
(IV) Carrying forward
internal shareholders’ 150,540,092.00 -150,540,012.81 79.19
equity
1. Capital reserves
conversed to share capital 150,540,092.00 -150,540,092.00
(or share capital)
2. Surplus reserves
conversed to share capital
(or share capital)
3. Remedying loss with
surplus reserve
4. Other 79.19 79.19
(V) Reasonable reserve
1. Withdrawal in the report
period
2. Usage in the report
period
(VI) Others
IV. Balance at the end of
451,620,276.00 382,444,482.45 49,670,863.23 234,131,931.19 1,117,867,552.87
the report period
Legal person: Zheng Yuxi
Person in Charge of Accounting Works: Wang Zhiping
Person in Charge of Accounting Institution: Xu Qiming
In RMB
Last period
Item
Share capital Other Capital reserve Less: Other Reasonable Surplus Capital reserve Total shareholders’
45
深圳深宝实业股份有限公司 2016 年半年度报告全文
equity instrument Inventory comprehensive reserve reserve equity
Perpetual shares income
Preferred
capital Other
stock
securities
I. Balance at the end of the
301,080,184.00 532,984,264.34 49,483,448.58 236,469,222.31 1,120,017,119.23
last year
Add: Changes of
accounting policy
Error correction of the
last period
Other
II. Balance at the beginning
301,080,184.00 532,984,264.34 49,483,448.58 236,469,222.31 1,120,017,119.23
of this year
III. Increase/ Decrease in
this year (Loss is listed with 230.92 187,414.65 1,686,731.83 1,874,377.40
“-”)
(i) Total comprehensive
1,874,146.48 1,874,146.48
income
(ii) Shareholders’ devoted
and decreased capital
1.Common shares invested
by shareholders
2. Capital invested by
holders of other equity
instruments
3. Amount reckoned into
owners equity with
share-based payment
4. Other
46
深圳深宝实业股份有限公司 2016 年半年度报告全文
(III) Profit distribution 187,414.65 -187,414.65
1.Withdrawal of surplus
187,414.65 -187,414.65
reserves
2.Distribution for
shareholders
3. Other
(IV) Carrying forward
internal shareholders’ 230.92 230.92
equity
1. Capital reserves
conversed to share capital
(or share capital)
2. Surplus reserves
conversed to share capital
(or share capital)
3. Remedying loss with
surplus reserve
4. Other 230.92 230.92
(V) Reasonable reserve
1. Withdrawal in the report
period
2. Usage in the report
period
(VI) Others
IV. Balance at the end of
301,080,184.00 532,984,495.26 49,670,863.23 238,155,954.14 1,121,891,496.63
the report period
Legal person: Zheng Yuxi
Person in Charge of Accounting Works: Wang Zhiping
Person in Charge of Accounting Institution: Xu Qiming
47
深圳深宝实业股份有限公司 2016 年半年度报告全文
III. Company profile
1.Company registration, organization form and headquarters address
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 9 April 2014, the equity allocation plan was deliberated and approved by Annual General Meeting of 2013.
Based on 250,900,154 shares dated 31st December 2013, increase 2 shares by each 10 shares transferring to all
shareholders. Share capital increased to 301,080,184 shares after transferring.
On 17 May 2016, the equity allocation plan was deliberated and approved by Annual General Meeting of 2015.
Based on 301,080,184 shares dated 31st December 2015, increase 5 shares by each 10 shares transferring to all
shareholders. Share capital increased to 451,620,276 shares after transferring.
Register address of the Company: 8/F, B Section, 4th Tower, Software Industrial Base, South Technology Park,
Xuefu Street, Yuehai Avenue, Nanshan District, Shenzhen, P.R. China; license No.: 91440300192180754J.
2. Business nature and major operation activities of the Company
The Company mainly engaged in the products of tea series of “Jindiao” brand including instant tea power and tea
concentrate; “Xing Jiu”; “Ju Fang Yong”; “Gutan” 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.
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
48
深圳深宝实业股份有限公司 2016 年半年度报告全文
development and technology service of tea, plant products, soft beverage and foods; info tech development and
supporting service; on-line trading; investment, operation, management and development of tea plantation;
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)
3. 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.
4. Report approval for the financial statement
The statement has been approved by the Board dated 19 August 2016 for reporting
5. Consolidate statement scope
Totally 16 subsidiaries are included in consolidate financial statement, mainly including:
Shareholding Voting rights
Subsidiaries Type Level
ratio (%) ratio (%)
Shenzhen Shenbao Huacheng Science and Technology Co.,Ltd Wholly-owned 100 100
First grade
(hereinafter referred to as Shenbao Huacheng ) subsidiary
Wuyuan County Ju Fang Yong Tea Industry Co., Ltd.(hereinafter Wholly-owned 100 100
First grade
referred to asWuyuan Ju Fang Yong ) subsidiary
Shenzhen Shenbao Sanjing Food & Beverage Development Co., Wholly-owned 100 100
First grade
Ltd(hereinafter referred to asShenbao Sanjing ) subsidiary
Huizhou Shenbao Science & Technology Co., Ltd.(hereinafter Wholly-owned 100 100
First grade
referred to asHuizhou Shenbao Science & Technology ) subsidiary
Shenzhen Shenbao Properties Management Co., Ltd. (hereinafter Wholly-owned 100 100
First grade
referred to asShenbao Properties ) subsidiary
Shenzhen Shenbao Industrial & Trading Co., Ltd.(hereinafter Wholly-owned 100 100
First grade
referred to as Shenbao Industrial & Trading ) subsidiary
Hangzhou Ju Fang Yong Holding Co., Ltd. (hereinafter referred to Wholly-owned 100 100
First grade
asHangzhou Ju Fang Yong ) subsidiary
Shenzhen Shenbao Technology Center Co., Ltd.(hereinafter referred Wholly-owned 100 100
First grade
to asShenbao Technology Center) subsidiary
Shenzhen Shenshenbao Investment Co., Ltd.(hereinafter referred to Wholly-owned 100 100
First grade
asShenshenbao Investment ) subsidiary
49
深圳深宝实业股份有限公司 2016 年半年度报告全文
Yunnan Shenbao Pu’er Supply Chain Management Co., Wholly-owned 100 100
First grade
Ltd.(hereinafter referred to asPu’er Supply Chain) subsidiary
Yunnan Pu’er Tea Trading Center Co., Ltd. (hereinafter referred to Holding 55 55
First grade
asPu’er Tea Trading Center ) subsidiary
Fujian Mount Wuyi Shenbao Yuxing Tea Co., Ltd.( hereinafter Holding Second 51.75 51.75
referred to asShenbao Yuxing) subsidiary grade
Hangzhou Fuhaitang Tea Ecological Technology Co., Holding Second 92 92
Ltd.(hereinafter referred to asFuhaitang Ecological) subsidiary grade
Hangzhou Chunshi Network Technology Co.,Ltd.(hereinafter Wholly-owned Second 100 100
referred to asChunshi Network ) subsidiary grade
Shenzhen Shenshenbao Tea Culture Management Co., Ltd. Holding Second 65 65
(hereinafter referred to asShenshenbao Tea Culture ) subsidiary grade
Hangzhou Jufangyong Trading Co., Ltd (hereinafter referred to Holding Second 60 60
asJufangyong Trading ) subsidiary grade
Body included in consolidated financial statement in the period has 1 increased and 1 reduced by compare with
same period of last year, including:
1. Subsidiary newly included in consolidated financial statement
Item Reasons for change
Pu’er Tea Trading Center Combined due to equity ratio increased
2. Subsidiary excluded in consolidated financial statement
Item Reasons for change
Shenzhen Shengyuan (Beijing) Food Co., Ltd. Transfer
3. Subsidiary has not in consolidated financial statement yet
(1) Shenzhen Shenbao (Liaoyuan) Industrial Company has established for a long time without normal operation,
Industry and Commerce Bureau has canceled the business license of the company, the long-term equity
investment for the company has been accrual for impairment totally. Financial statement of the company is out of
the consolidation range.
(2) Shenzhen Baomanan Biotechnology Co., Ltd. is a subsidiary of the Company, set up by Huizhou Shenbao
Technology and Guangzhou Shen Guangsheng biotechnology limited liability Company, according to the contract
signed by both parties on March 28, 2014, Huizhou Shenbao Technology does not have the right to manage this
company, thus it is accounted by the equity method.
(3) Shenzhen Shichumingmen Restaurant Management Co., Ltd. (hereinafter referred to as "Shichumingmen
Company"), set up by a subsidiary of the Company Shenshenbao tea culture and Shenzhen Investment Co., Ltd. F.
according to Articles of Association, the Board of Directors to vote by one vote one person. Attendees to the
board of directors should be more than 2/3 of the whole number of directors, and all participants aaprove the
resolution thus it is effective. The Company only accounted for 3/5 of the voting rights in Shichumingmen
Company, control can not be reached, so it is accounted for by the equity method.
50
深圳深宝实业股份有限公司 2016 年半年度报告全文
IV. Basis of preparation of financial statements
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 specific
accounting principle 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) issued by the ministry of finance, on that basis, combining the Information Disclosure
Preparation Rules for Company Public Issuing Securities No.15-General Rules for Financial Report (amended in
2014) of the CSRC for statement preparation.
2. Going concern
The Company was evaluated on continued viability of 12 months for the reporting period and found to have no
significant doubt. Accordingly, the financial statements have been prepared on the basis of going concern
assumptions.
V. Major accounting policy, accounting estimation
Specific accounting policy and estmation: 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.
1. 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.
2. Accounting period
Calendar year is the accounting period for the Company, that is falls to the range starting from 1 January to 31
December.
3. Operating cycle
Operating cycle of the Company was 12 months, and the operating cycle is the determining criterion for liquidity
of assets and liabilities.
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. If the terms, conditions, and economic impact of each transaction involved in business combination
achieved in stages fall within 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;
51
深圳深宝实业股份有限公司 2016 年半年度报告全文
(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.
2. Business combination under the same control
The assets and liabilities the Company acquired in a business combination shall be measured in accordance with
book value of assets, liabilities (including the ultimate controlling party of goodwill acquired by the merging
parties and the formation of) stated in combined financial report of the ultimate controlling party on the merger
date. The net book value of assets and the payment of the merger consideration in the merger book value (or
nominal value of shares issued) shall be adjusted in the share premium of reserve capital. the share premium in
capital reserve is not enough for deducting, retained earnings .
If the capital reserve is not sufficient to absorb the difference, any excess shall be adjusted against retained
earnings. In case there is existence of contingent consideration which needs to confirm projected liabilities or
assets, then the difference between the projected liabilities or assets and settlement amount for consequent
contingent consideration is utilized to adjust capital reserve (capital premium or equity premium); in case of
insufficient capital reserve, adjust retained earnings.
As for business combination realized through numbers of transactions, and if these transactions belong to a bundle
of transactions, then each of them shall be accounted as a transaction to acquire controlling right; and if not belong
to a bundle of transactions, then the difference between the initial investment cost of the long term equity
investment as of the date on which the Company obtains controlling right and the carrying value of the long term
equity investment prior to combination plus the carrying value of the new consideration paid for further
acquisition of shares as of the combination date shall be used to adjust capital reserve; in case of insufficient
capital reserve, adjust retained earnings. For equity investment held prior to the combination date, the other
comprehensive income recognized due to calculation by equity method or based on recognition and measurement
principles for financial instruments would not be accounted for temporarily until the Company disposes of this
investment on the same basis as the investee directly disposes of relevant assets or liabilities; other changes of
owners’ equity in the net assets of investee as recognized under equity method, except for net profit or loss, other
comprehensive income and profit distribution, shall not be accounted for until being transferred to current profit
or loss when this investment is disposed of.
3. Business combination not under the same control
Assets paid and liabilities taken for business combination on the acquisition date shall be measured at fair value.
The difference between the fair value and book value is recognized in profit or loss.
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, part of the package deal, than carrying accounting treatment on transactions with controlling rights obtained
through vary transactions; as for non-package: for equity investment held prior to combination date which is
52
深圳深宝实业股份有限公司 2016 年半年度报告全文
calculated under equity method, the sum between carrying value of the equity investment prior to acquisition date
and cost of additional investment made on the acquisition date is deemed to be the initial investment cost of this
investment. Other comprehensive income recognized for equity investment held prior to combination date under
equity method shall be accounted for when the Company disposes of this investment on the same basis as the
investee directly disposes of relevant assets or liabilities. In case that equity investment held prior to combination
date is calculated based on recognition and measurement principles for financial instruments, then the fair value of
this equity investment as of combination date plus new investment cost shall be deemed as initial investment cost.
The difference between fair value and carrying value of the originally held equity interests and the accumulated
fair value movements as originally recorded in other comprehensive income shall be all transferred to investment
income of the period in which the combination date falls.
4. Expenses related to the merger
Audit, legal, consulting services, and other intermediary costs and other expenses directly related to the business
combination, shall be included in current profit or loss in the event; any transaction fee for issuing equity
securities for business combination which can be directly attributable to the equity transaction shall be deducted
from equity.
6. Methods for preparation of consolidated financial statements
1. Merger scope
The consolidation scope of the consolidated financial statements of the Company is fixed on the basis of control, and all
subsidiaries have been consolidated.
2. Merger procedure
The Company edits the consolidated financial statements based on its own financial statements and the
subsidiaries’, as well as other relevant information. The consolidated financial statements hold the enterprise
group as a whole accounting entity. It is recognized in accordance with relevant Accounting Standards,
measurement and presentation requirements. Uniform accounting policies reflect the overall financial position of
the Group's business, operating results and cash flow.
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.
Internal transactions between the Company and its subsidiaries and between subsidiaries to each other shall put
impact on the consolidated balance sheet, consolidated income statement, consolidated cash flow statement, the
consolidated shareholders' equity. The impact shall be offset when combing financial statements. If it is not the
same when you stand Enterprise Group and the angle of the Company or its subsidiaries as the accounting entity
identified on the same transaction, the business point of view shall be adjusted to the Group's transactions.
Subsidiary's equity, current net profits or losses and current comprehensive income belonging to minority
shareholders shall be listed respectively under item of owners’ equity in the consolidated balance sheet, item of
net profit in profit sheet and item of total comprehensive income. Current loss minority shareholders of a
subsidiary exceed the minority shareholders in the subsidiary's opening owners' equity share and the formation of
53
深圳深宝实业股份有限公司 2016 年半年度报告全文
balance, offset against minority interests.
For the subsidiaries acquired through business combination under common control, its assets and liabilities
(including goodwill formed from ultimate controlling party acquiring the subsidiary to) shall be adjusted based on
the book value in the financial statements of the ultimate controlling party.
For the subsidiaries acquired through business combination under uncommon control, financial statements shall
be adjusted based on the fair value of the identifiable net assets on acquiring date.
(1) Increase of subsidiary or business
During the reporting period, the merger of the enterprises under the same control results in additional subsidiaries
or business, then adjust the opening amount of consolidated balance sheet; income, expenses and profit of the
subsidiaries or business from beginning to the end of the reporting shall be included in the consolidated profit
statement; cash flows of the subsidiaries or business from beginning to the end of reporting period shall be
included into the consolidated cash flow statement. And relevant comparative items of comparable statement shall
be adjusted since reporting entity is controlled by the ultimate controller.
If additional investment and other reasons can lead investee to be controlled under the same control, all parties
shall be adjusted at the beginning when the ultimate controlling party starts control. Equity investments made
before obtaining controlling right, relevant gains and losses and other comprehensive income as well as other
changes in net assets confirmed during the latter date between point obtaining original equity and merger and
mergeree under the same control day to the combined day, shall be offset against the retained earnings or profit or
loss of the comparative reporting period.
During the reporting period, opening amount of consolidated balance sheet shall not be adjusted since enterprise
under different control combine or increase holding of subsidiary or business; the income, expense and profit of
the subsidiaries or business from the acquisition date to the end of reporting period shall be included in the
consolidated profit statement; while cash flows shall be included into the consolidated cash flow statement.
Equity held from investee before acquisition date shall be measured at fair value of acquisition date if additional
investment and other reasons can lead investee to be controlled under the same control. difference between the fair
value and the book value is recognized as investment income. other comprehensive income and other owners'
equity except for net profit or loss, other comprehensive income and the distribution of profits related to equity
held from investee before acquisition date, as well as relevant other comprehensive income associated with all
other by changes in equity shall be included in current investment income, except for other comprehensive income
arising from change of net assets or net liabilities redefined by investee.
(2) Disposal of subsidiaries or business
1) The general approach
During the reporting period, the Company carry out disposal of subsidiaries or business, revenue, expense and
profit of the subsidiary or business included in the consolidated profit statement from the beginning to the disposal
date; while the cash flow into cash flow table.
If losing controlling right to investee due to disposal of partial equity, the remaining equity after the disposal shall
be re-measured at fair value at the date when control is lost. Price of equity disposal plus fair value of the
remaining equity, then subtracting net assets held from the former subsidiary from the acquisition date or
54
深圳深宝实业股份有限公司 2016 年半年度报告全文
combination date initially measured in accordance with original stake and goodwill, the difference shall be
included in investment income of the period losing controlling right. other comprehensive income and other
owners' equity except for net profit or loss, other comprehensive income and the distribution of profits related to
equity held from investee before acquisition date, as well as relevant other comprehensive income associated with
all other by changes in equity shall be included in current investment income, except for other comprehensive
income arising from change of net assets or net liabilities redefined by investee.
2) Step disposal of subsidiaries
As multiple transactions over disposal of the subsidiary's equity lead to loss of controlling right, if the terms of the
transaction, situation and economic impact subject to one or above of the following conditions, usually it indicates
repeated transactions should be accounted for as a package deal:
A. These transactions are made considering at the same time or in the case of mutual impact;
B. These transactions only reach a complete business results when as a whole;
C. A transaction occurs depending on the occurrence of at least one other transaction;
D. Single transaction is not economical, but considered together with other transactions it is economical.
If disposal of equity in subsidiaries lead the loss of control and the transactions can be seen as a package deal, the
Company will take accounting treatment of the transaction; however, before the loss of control the difference
between the disposal price and the corresponding net assets of the subsidiary, recognized as other comprehensive
income in the consolidated financial statements, into current profit and loss at current period when losing
controlling right.
If disposal of equity in subsidiaries lead the loss of control and the transactions doesn’t form a package deal,
equity held from subsidiary shall be accounted in accordance with relevant rules before losing controlling right,
while in accordance with general accounting treatment when losing controlling right.
(3) Purchase of a minority stake in the subsidiary
Long-term equity investment of the Company for the purchase of minority interests in accordance with the newly
acquired stake in the new calculation shall be entitled to the difference between the net assets from the acquisition
date (or combination date) initially measured between the consolidated balance sheet adjustment capital balance
of the share premium in the capital reserve share premium insufficient, any excess is adjusted to retained earnings.
(4) Disposal of equity in subsidiary without losing control
Disposal price and disposal of long-term equity investment without a loss of control due to partial disposal of
subsidiaries and long-term equity investment made between the relative net assets from the purchase date or the
date of merger were initially measured at the difference between the subsidiary shall enjoy , the consolidated
balance sheet adjustment in the balance of the share premium, capital balance of the share premium insufficient,
any excess is adjusted to retained earnings.
7. Classification of joint venture arrangement and accounting for joint operations
1. Classification of joint venture arrangement
The Company classifies joint venture arrangement into joint operations and joint ventures based on the structure,
legal form, agreed terms of the arrangement and other related facts and conditions.
Joint venture arrangement not concluded through separate entity is classified as joint operation; and those
55
深圳深宝实业股份有限公司 2016 年半年度报告全文
concluded through separate entity are generally classified as joint ventures. However, joint venture arrangement
which meets any of the following conditions as proven by obvious evidence and satisfies relevant laws and rules
is grouped as joint operation:
(1) The legal form of the arrangement shows that parties to the arrangement are entitled to and assume rights and
obligations in respect of the relevant assets and liabilities.
(2) It is agreed by the terms of the arrangement that parties to the arrangement are entitled to and assume rights
and obligations in respect of the relevant assets and liabilities.
(3) Other related facts and conditions show that parties to the arrangement are entitled to and assume rights and
obligations in respect of the relevant assets and liabilities. For instance, joint parties are entitled to almost all the
output related to joint venture arrangement and settlement of the liabilities under the arrangement continues to rely
on supports from the joint parties.
2. Accounting for joint operations
The Company recognizes its proportion of interests in joint operation as related to the Company, and accounts for
under relevant business accounting principles:
(1) To recognize separately-held assets and jointly-held assets under its proportion;
(2) To recognize separately-assumed liabilities and jointly-assumed liabilities under its proportion;
(3) To recognize revenue from disposal of the output which the Company is entitled to under the proportion;
(4) To recognize revenue from disposal of the output under the proportion;
(5) To recognize separately occurred expenses, and to recognize expenses occurred for joint operations under its
proportion.
For injection to or disposal of assets of joint operations (other than those assets constituting business operation),
gain or loss arising from the transaction is only recognized to the extent it is attributable to other parties to the
joint operation before the joint operation is sold to any third party. In case those assets injected or disposed satisfy
the condition for asset impairment loss under Business Accounting Principle No.8-Assets Impairment, the
Company recognizes this loss in full.
For acquisition of assets from joint operations (other than those assets constituting business operation), gain or
loss arising from the transaction is only recognized to the extent it is attributable to other parties to the joint
operation before the relevant assets are sold to any third party. In case that the acquired assets satisfy the condition
for asset impairment loss under Business Accounting Principle No.8-Assets Impairment, the Company recognizes
relevant loss according to the proportion it assumes.
The Company exercises no common control over joint operations. If the Company is entitled to relevant assets of
the joint operation and assure relevant liabilities, it shall be accounted for under the above principle, otherwise it
would be accounted for under the relevant business accounting principles.
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.
56
深圳深宝实业股份有限公司 2016 年半年度报告全文
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.
On balance sheet date, 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.
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.
2. Translation of foreign currency financial statement
Assets and liabilities in balance sheet are translated at the spot exchange rate at the balance sheet date. Equity
items, excluding “undistributed profit”, are translated at the spot exchange rates at the transaction dates. Income
and expenses of foreign operation are translated at the spot exchange rates at the transaction dates. The resulting
translation differences are recognized in other comprehensive income.
When disposing overseas operations, the foreign currency financial statement translation differences listed under
items of other comprehensive income in balance sheet and which are directly related to the overseas operations
are transferred to profit or loss in the period when the overseas operation is disposed. In the disposal of some
equity investments or other causes reduced proportion held overseas business interests but not a loss of control
over a foreign operation, and disposal of the foreign operation portion related to foreign currency translation
differences attributable to minority interests, not the income statement. In the disposal of foreign operation as part
of the equity joint venture or joint ventures, and foreign currency financial statements related to the foreign
operation translation difference in proportion of the foreign operation is disposed of into the disposal income
statement.
10. Financial instruments
Financial instruments include financial assets, financial liabilities and equities instruments.
57
深圳深宝实业股份有限公司 2016 年半年度报告全文
1. Categories of financial instruments
According to the contract terms of the financial instrument issued and economic substance reflects by such
instrument, not only in form of law, combine with purposes held for financial assets and liabilities, the
management categorizes financial assets and liability into different types: financial assets (or financial liabilities)
at fair value through current gains and losses; accounts receivable; financial assets available for sale; other
financial liabilities, etc.
2. Recognition and measurement for financial instrument
(1) Financial assets or liabilities at fair value through profit or loss
Financial assets or liabilities at fair value through profit or loss include transactional financial assets or financial
liabilities and financial assets or liabilities directly designated at fair value through profit or loss.
Transactional financial assets or financial liabilities refer to those meeting any of the following conditions:
1) Purpose for holding the assets or liabilities are to disposal, repurchase or redemption in a short time;
2) Constitute part of the identifiable financial instrument group for central management, and there is objective
evidence proving that the Company manages this group in a short-time-return way recently;
3) Belong to derivative financial instrument, other than those derivatives designated as effective hedge
instruments, belonging to financial guarantee contracts and those linked to equity instrument investment which is
not quoted in an active market and whose fair cannot be measured reliably and the settlement of which is
conditional upon delivery of the equity instrument.
Subject to satisfaction of any of the following conditions, financial assets or liabilities can be designated as
financial assets or liabilities at fair value through profit or loss upon initial measurement:
1) The designation can eliminate or substantially eliminate the inconsistencies between profit and loss from the
financial assets arising from different measurement basis;
2) The portfolio of financial assets and liabilities in which the financial asset belongs to are designated as
measured at fair value in the risk management report or investment strategic report handed in to key management
personnel;
3) Hybrid instruments which contains one or more embedded derivatives, unless the containing of embedded
derivatives does not have substantial effect on the cash flows of the hybrid instruments, or the embedded
derivatives obviously should not be separated from relevant hybrid instruments;
4) Hybrid instruments which contains embedded derivatives that should split, but cannot be measured separately
when acquired or on the subsequent balance sheet date.
The Company initially measures financial assets or liabilities at fair value through profit or loss at their fair values
when acquiring the assets or liabilities (after deducting cash dividend already declared but not paid or bond
interests which is due for interest payment but not received), and the relevant transaction fee is included in current
profit or loss. Interest or cash dividend acquired during the holding period shall be recognized as investment
income, and movement of fair value at the end of period is included in current profit or loss. Upon disposal, the
difference between its fair value and initial accounting amount shall be recognized as investment income, with
corresponding adjustment to gains and losses from movement of fair value.
58
深圳深宝实业股份有限公司 2016 年半年度报告全文
(2) Account receivables
The contract price charged to the buyers shall be recognized as initial value for those account receivables which
mainly comprise the receivable creditor’s right caused by the sale of goods and providing of labor service to
external customers by the Company, and receivables in other companies excluding debt instruments priced in
active markets, includes but not limited to trade receivables, notes receivables, account paid in advance and other
receivables. If characterized as of financing nature, the initial recognition shall be priced at the present value.
Upon disposal, the difference between the sale value and the book value of the receivables shall be accounted into
current profit or loss on its recovery or disposal.
(3) Held-to-maturity investment
The non-derivative financial assets with maturity date, fix return amount or amount able to determined, and the
Company held with specific intention and ability.
The Company takes the sum of fair value (after deducting bond interests which is due for interest payment but not
received) and related transaction fee as initial recognition amount in respect of held-to-maturity investment upon
acquisition of the investment. During the holding period, the Company recognizes interest income at amortized
cost and effective interest rate which is included in investment income. The effective interest rate is determined
upon acquisition of the investment and remains unchanged for the expected continuous period or appropriate
shorter period. Difference between sale price and carrying value of the investment is included in investment
income.
If held-to-maturity investment is disposed or reclassified as other types of financial asset, and the relevant amount
is relatively bigger than the total amount of our all held-to-maturity investments prior to disposal or
reclassification, the remaining held-to-maturity investments shall be reclassified as available-for-sale financial
assets immediately following such disposal or reclassification. On the reclassification date, difference between the
carrying value and fair value of the investment is included in other comprehensive income and is transferred out
into current profit or loss when the available-for-sale financial assets experience impairment or derecognition.
However, the followings are exceptions:
1) The date of disposal or reclassification is approaching to the date of expiration or redemption of the investment
(such as three months prior to expiration), and change of market rate has no material influences over the fair value
of the investment.
2) Company has already recovered nearly all initial principal under the repayment means as agreed in contract.
3) Disposal or reclassification is arising from separate matters which are out of our control, which are expected
not to occur repeatedly and which are difficult to predict reasonably.
(4) Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale upon
initial recognition and financial assets other than other categories of financial assets.
The Company initially measures available-for-sale financial assets at the sum between their fair values when
acquiring the assets or liabilities (after deducting cash dividend already declared but not paid or bond interests
which is due for interest payment but not received) and the relevant transaction fee. Interest or cash dividend
acquired during the holding period shall be recognized as investment income. Gains or losses arising from
59
深圳深宝实业股份有限公司 2016 年半年度报告全文
movement of fair value is directly included in other comprehensive income except for impairment loss and
exchange difference arising from foreign currency monetary financial assets. When disposing available-for-sale
financial assets, the Company includes the difference between the acquired price and carrying value of the
financial assets into investment profit or loss. Meanwhile, accumulated fair value movement attributable to the
disposed part which is originally directly included in other comprehensive income is transferred out and included
investment profit or loss.
For equity instrument investment which is not quoted in an active market and whose fair value cannot be reliably
measured, and derivative financial assets which are linked to the equity instrument and whose settlement is
conditional upon delivery of the equity instrument, they are stated at cost by the Company.
(5) Other financial liabilities
Initial recognition amount is determined at the sum of fair value and relevant transaction fee. 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:
(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
60
深圳深宝实业股份有限公司 2016 年半年度报告全文
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; The
initial acquisition or financial assets or financial liabilities assumed, market transaction price to determine the fair
value basis; there is no active market for a financial asset or financial liability, the valuation techniques to
determine its fair value. At the time of valuation, the Company adopted applicable in the present case and there is
enough available data and other information technology to support valuation, assets or liabilities of feature
selection and market participants in the trading of the underlying asset or liability considered consistent input
value and priority as the relevant observable inputs. Where relevant observable inputs can not get or do not get as
far as practicable, the use of unobservable inputs.
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
61
深圳深宝实业股份有限公司 2016 年半年度报告全文
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;
Details for impairment of financial assets are set out below:
(1)Impairment provision for available-for-sale financial assets
The financial assets available for sale are recognized individually assessed for impairment at the balance sheet
date, wherein: show sellable equity instrument investment objective evidence of impairment include the fair value
of equity instruments is serious or a decline in the specific quantitative criteria as follows: If the investments in
equity instruments at the balance sheet date the fair value below its cost is more than 50% (50% included) or
below its cost is the duration of more than one year (including one year) , it indicates that the impairment occurs.
The Group has separately tested various available-for-sale equity instruments at the balance sheet date. It will be
defined as impairment if the fair value is lower than the initial investment cost by more than 50% (including 50%)
or the low state has lasted for no less than 1 year. While the lower proportion is between 20% and 50%, the Group
will take other factors such as price fluctuation into consideration to estimate whether the equity instrument has
impaired or not.
Initial segment of the "cost" of the sale of equity instruments in accordance with available cost less any principal
repayment and amortization, impairment loss has been included in determining profit or loss; "fair value,"
according to the stock exchange closing price of the end OK, unless the existence of available for sale investments
in equity instruments restricted period. For the presence of restricted investments in equity instruments available
for sale, according to the end of the closing price of the stock exchange market participants by deducting the risk
equity instrument within a specified period cannot be sold on the open market and the requirements to obtain
compensation.
When an available-for-sale financial asset is impaired, the cumulative loss arising from decline in fair value that
had been recognized in other comprehensive income is reclassified to the profit or loss even though the financial
asset has not been derecognized. The amount of the cumulative loss that is removed from equity is the difference
between the acquisition cost (net of any principal repayment and amortization) and current fair value, less any
impairment loss on that financial asset previously recognized in profit or loss.
If there are objective evidences showing that the value of available-for-sale debt instrument is recovered and it
relates to the matters happened after the impairment loss recognition, the impairment loss recognized shall be
reversed and accounted in current profit or loss. Impairment losses recognized for equity instrument investments
classified as available-for-sale are reversed through equity. However, impairment loss occurred by equity
instrument investment which is not quoted in an active market and whose fair value cannot be measured reliably
and derivative financial assets which are linked to the equity instrument and whose settlement is conditional upon
delivery of the equity instrument, shall not be reversed.
(2) Impairment provision for held-to-maturity investment
62
深圳深宝实业股份有限公司 2016 年半年度报告全文
For held-to-maturity investment, if there is object evidence showing the investment is impaired, then impairment
loss is determined based on the difference between its fair value and present value of predicted future cash flow.
After provision, if there is evidence showing its value has been restored, the originally recognized impairment loss
can be reversed and included in current profit or loss, provided that the reversed carrying value shall not exceed
the amortized cost of the financial asset as at reversal date assuming no impairment provision had been made.
7. Offset of financial assets and financial liabilities
Financial assets and financial liabilities are stated in balance sheet separately without inner-offset. However, the
net amount after inner offset is stated in balance sheet date when the following conditions are all met:
(1) The Company has legal right to offset recognized amount and the right is enforceable;
(2) The Company plans to settle on a net basis, or simultaneously realize the financial assets and settle the
financial liabilities.
11. Account receivable
(1) Account receivable with single significant amount and withdrawal single item bad debt provision
Amount occupied 10 percent (including 10 percent) of the balance of account
Account with single significant amount
receivable.
Conducted impairment testing separately, balance between the present value
Withdrawal method for bad debt provision of of future cash flow and its carrying value, bad debt provision withdrawal and
account receivable with single significant amount reckoned into current gains/losses. For those without impairment being found
after test, collected into relevant combination for accrual.
(2) Accounts receivable whose bad debts provision was accrued by combination based on credit risk
characteristics portfolio
Combination Bad debt provision accrual
Aging of accounts group Age analysis method
Group with bad debt provision accrual by aging:
√ Applicable □ Not applicable
Age Accrual ratio Accrual ratio for other receivable
Within 1 year (one year included) 0.00% 0.00%
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
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods:
□ Applicable √ Not applicable
63
深圳深宝实业股份有限公司 2016 年半年度报告全文
(3) Account receivable with minor single amount but with withdrawal bad debt provision for single item
Reasons for provision of bad debt There is objective evidence that the Company will not be able to recover the money under the
reserve original terms of receivables.
Provision method of bad debt Withdrawn according to the difference between present value of expected future cash flows and
reserve the book value of the receivables.
12. Inventories
1. Classification
Inventory means finished goods and merchandise that are ready for sale, work-in-progress, or material used in the
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, developed products, subcontracted materials and
wrappage, etc.
2. Valuation method
Inventory carried initial measured by cost, including purchasing cost, processing cost and other costs. The
inventory in transit was valued by weighted average method.
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 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 is the perpetual inventory system.
5. Amortization of low-value consumables and packaging materials
(1) Adopt five-five amortization for low-value consumables;
(2) Adopt one-off writing off process for packaging materials
64
深圳深宝实业股份有限公司 2016 年半年度报告全文
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 business combination (not) under the same control of Note IV
(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. Initial investment cost including the expenses, taxes and other necessary costs that directly
concerned with the long-term equity investment that acquired.
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 transaction expenses from issuing or own equity
instrument acquired, it can be deducted from the equity when such expenses attributable directly to equity
transaction.
Under the precedent condition that non-monetary 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-monetary 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 reorganization, its initial investment cost is recognized
based on fair value.
2. Subsequent measurement and recognition of gains and losses
(1) Cost method
The long-term equity investment control by invested entity shall counted by cost method, and pricing on initial
investment cost, cost of the long-term equity investment shall be adjusted while additional investment or
dis-investment.
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.
(2)Equity method
The Company calculates long term equity investment in associates and joint ventures under equity method. For
certain equity investments in associates indirectly held through risk investment institutions, joint funds, trust
companies or similar entities including investment linked insurance fund, the Company measures the investment
at fair value through profit or loss.
Where the initial investment cost of a long-term equity investment exceeds the Group’s share of the fair value of
the investee’s identifiable net assets at the time of acquisition, no adjustment is made to the initial investment cost.
Where the initial investment cost is less than the Group’s share of the fair value of the investee’s identifiable net
65
深圳深宝实业股份有限公司 2016 年半年度报告全文
assets at the time of acquisition, the difference is recognized in profit or loss for the period.
Return on investments and other comprehensive income is recognized respectively by shares of net gains and
losses realized by the invested company and other comprehensive income after acquisition of long-term equity,
and book value of such investment is adjusted accordingly. Profit or cash dividends pro rata distributed by the
invested company are to minus book value of the relative long-term investment. Book value of long-term
investment is adjusted when changes occur other than net gains and losses, other comprehensive income and
profit distribution of the invested company, and is to reported in owners’ equity accordingly
The Company 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 un-realized transaction gains/losses attributable to
investment enterprise, internally occurred between the Company, 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
to 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 adverse 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. Transfer of calculation for long term equity investment
(1) Measure at fair value transfer to equity method
For the equity investment originally held by the Company in which it has no control, common control or
significant influence over the investee and which is accounted for under recognition and measurement principle as
financial assets, in case that the Company becomes able to exercise significant influence or common control upon
the investee due to additional investment while no control is reached, the sum of fair value of the originally held
equity investment as determined under Business Accounting Principles No.22- Recognition and Measurement
Principle as Financial Assets plus cost of the new investment shall be deemed as the initial investment cost upon
calculation under equity method.
If the originally held equity investment is classified as available for sale financial assets, the difference between its
fair value and carrying value and the accumulated fair value movement which is originally included in other
comprehensive income shall be transferred to current period gains and losses under equity method.
In case that the initial investment cost under equity method is lesser than share of fair value of the investee’s net
identifiable assets as of the date when additional investment is made as calculated based on the latest shareholding
66
深圳深宝实业股份有限公司 2016 年半年度报告全文
proportion upon additional investment, carrying value of the long term equity investment shall be adjusted against
such difference which is included in current period non-operating income.
(2) Measure at fair value or calculation under equity method transfer to calculation under cost method
For the equity investment originally held by the Company in which it has no control, common control or
significant influence over the investee and which is accounted for under recognition and measurement principle as
financial instrument, or for long term equity investment originally held in associates or joint ventures, in case that
the Company becomes able to exercise control over investee not under common control due to additional
investment, the sum of fair value of the originally held equity investment plus cost of the new investment shall be
deemed as the initial investment cost upon calculation under cost method when preparing separate financial
statement.
For other comprehensive income as recognized under equity method in respect of equity investment held prior to
acquisition date, when the Company disposes this investment, the aforesaid income shall be accounted for on the
same basis as the investee would otherwise adopt when it directly disposes relevant assets or liabilities.
For equity investment held prior to acquisition date which is accounted for under Business Accounting Principles
No.22- Recognition and Measurement of Financial Assets, the accumulated fair value movement which originally
included in other comprehensive income shall be transferred to current period gains and losses upon calculation
under cost method.
(3) Calculation under equity method transfer to fair value measurement
In case that the Company lost common control or significant influence upon investee due to disposal of part equity
investment, the remaining equity investment shall be calculated under Business Accounting Principles No.22-
Recognition and Measurement of Financial Assets, and the difference between its fair value and carrying value as
of the date when the Company lost common control or significant influence shall be included in current period
gains and losses.
For other comprehensive income as recognized under equity method in respect of the original equity investment,
when the Company ceases calculation under equity method, the aforesaid income shall be accounted for on the
same basis as the investee would otherwise adopt when it directly disposes relevant assets or liabilities.
(4) Cost method transfer to equity method
In case that the Company lost control upon investee due to disposal of part equity investment, and if the remaining
equity investment can exercise common control or significant influence over the investee, equity method shall be
adopted when preparing separate financial statement, and the remaining equity investment shall be adjusted as if it
had been stated under equity method since the acquisition.
(5) Cost method transfer to fair value measure
In case that the Company lost control upon investee due to disposal of part equity investment, and if the remaining
equity investment cannot exercise common control or significant influence over the investee, Business Accounting
Principles No.22- Recognition and Measurement of Financial Assets shall be adopted for accounting treatment
when preparing separate financial statement, and the fair value and carrying value as of the date when control is
lost shall be included in current period gains and losses.
67
深圳深宝实业股份有限公司 2016 年半年度报告全文
4. Disposal of long term equity investment
Difference between carrying value and actual acquisition price in respect of disposal of long term equity
investment shall be included in current period gains and losses. For long term equity investment under equity
method, the Company shall adopt the same basis as the investee directly disposes relevant assets or liabilities
when disposing this investment, and account for the part originally included in other comprehensive income under
appropriate proportion.
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 complete commercial results;
(3) The occurrence of one transaction is subject to that of at least one other transaction;
(4) A transaction alone is not economic, but otherwise when considered with other transactions.
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 separate financial statement, as for disposal of equity interest, difference between carrying value and actual
acquisition price shall be included in current period gains and losses. In case that the remaining equity interests
can exercise common control or significant influence over investee, it shall be stated under equity method in stead,
and shall be adjusted as if the remaining equity interests had been stated under equity method since the acquisition.
In case that the remaining equity interests cannot exercise common control or significant influence over investee,
it shall be accounted for under Business Accounting Principles No.22- Recognition and Measurement Principle of
Financial Instruments, and the difference between its fair value and carrying value as of the date then the
Company lost control shall be included in current period gains and losses.
(2) In consolidated financial statement, for those transactions occurred before lost of control in subsidiaries, the
difference between disposal price and share of net assets of subsidiaries since purchase date or combination date
shall be used to adjust capital reserve (equity premium), and if capital reserve is insufficient to offset, then it shall
adjust retained earnings; when the Company lost control in a subsidiary, the remaining equity interests would be
re-measured at the fair value as of the control-lost date. 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, and
off-set the goodwill at the same time. 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.
Each transaction involved in the disposal of equity investments of subsidiaries until loss of control falls into a
package deal, carrying accounting treatment on transaction of losing control rights and disposing the company,
and should be accounted for accordingly in differentiation with individual financial statements and consolidated
financial statements:
68
深圳深宝实业股份有限公司 2016 年半年度报告全文
(1) In consolidated financial statements, difference between each payment from disposal of an equity and the book
value of such long-term equity 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.
(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.
5. Criteria for common control and significant influence
Where the Company jointly controls an arrangement with other participators under agreed terms, and decisions
which materially affect return of such arrangement can only exist when other participators unanimously agree on
the decisions, the Company is deemed to jointly control this arrangement with other participators, and the
arrangement belongs to joint venture arrangement.
In case of a joint venture arrangement concluded through separate entity, when the Company is judged to be
entitled to the net assets of the separate entity under relevant agreements, the entity shall be viewed as a joint
venture under equity method. However, when the Company is judged to be not entitled to the net assets of the
separate entity under relevant agreements, the entity shall be viewed as a joint operation, in which case, the
Company recognizes items relating to its share of interests from the joint operation and accounts for according to
relevant business accounting rules.
Significant influence refers to that investor has right to participate in making decisions relating to the financial and
operational policies of the investee, while not able to control or jointly control (with others) establishment of these
policies. The following one or more conditions are based to judge whether the Company has significant influence
over investee with consideration of all facts and situations: (1)has delegate in the board of directors or similar
authority organs of investee; (2)participate in establishing financial and operational policies of the investee;
(3)occur material transactions with the investee; (4)delegate management to the investee; (5)provide key technical
data to the investee.
14. Investment real estate
Measurement: measured by cost
Depreciation or amortization method:
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
69
深圳深宝实业股份有限公司 2016 年半年度报告全文
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.
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;
(2) The cost of the assts can be measured reliably.
(2) Depreciation methods
Yearly
Years of
Categories Method Scrap value rate depreciation
depreciation
rate
Houses and buildings--production Straight-line
35 years 5% 2.71%
buildings depreciation
Houses and Straight-line
40 years 5% 2.38%
buildings--non-production buildings depreciation
Straight-line
Houses and buildings--makeshift 9 years 5% 10.56%
depreciation
Straight-line
Mechanical equipment 12 years 5% 7.92%
depreciation
Straight-line
Transportation vehicle 9 years 5% 10.56%
depreciation
Straight-line
Other equipment 6 years 5% 15.83%
depreciation
(3) Recognition, measurement and depreciation 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:
70
深圳深宝实业股份有限公司 2016 年半年度报告全文
(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.
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.
71
深圳深宝实业股份有限公司 2016 年半年度报告全文
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.
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.
72
深圳深宝实业股份有限公司 2016 年半年度报告全文
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.
Biological assets of the Company refer to the tea plants. For those productive biological assts that reached its
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.
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) Evaluation method, use life and impairment test
An intangible asset is an identifiable non-monetary asset without physical substance owned or controlled by the
Company, including land use right, technical know-how, forest tree use right, trademark use right and software
use right.
1. Initial measurement of intangible assets
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
73
深圳深宝实业股份有限公司 2016 年半年度报告全文
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
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. And classified into intangible assets
with limited useful life and assets without certain service life
Intangible assets with limited useful life
1. 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. Particular about the estimation on intangible assets with limited
service life:
Item Predicted useful life Basis
Certificate of land use
Land use right Amortized the actual rest of life after certificate of land use right obtained
right
Proprietary Actual situation of the
20-year
technology Company
forest tree use right Service life arranged Protocol agreement
Actual situation of the
trademark use right 10-year
Company
software use right 5-8-year Protocol agreement
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; if there is a differences been found with the original estimated number, corresponding
adjustment shall prevail.
Being revised, the useful life of intangible assets and amortization method at period-end shows the same as
74
深圳深宝实业股份有限公司 2016 年半年度报告全文
previous
2. Intangible assets without certain service life
Intangible assets for which it is impossible to predict the term during which the assets can bring in economic
benefits are viewed as intangible assets with indefinite life.
Intangible assets with indefinite life are not amortized during the holding period, and useful life is re-reviewed at
the end of each accounting period. In case that it is still determined as indefinite after such re-review, then
impairment test will be conducted continuously in every accounting period.
The Company has no such intangible assets without certain service life after review.
(2) Accounting policy of the internal R&D costs
1. 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.
2. Standards for capitalization satisfaction of expenditure in exploitation state
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.
Expenditure happened in development phase not satisfying the above conditions is included in current period
gains and losses when occurs. Development expenditure previously included in gains and losses in previous
periods will not be re-recognized as assets in later periods. Capitalized development expenditure is stated in
balance sheet as development expenditure, and is transferred to intangible assets when the project is ready for
planned use.
20. Impairment of long term assets
Long term asset is judged whether for which there is indication of impairment on balance sheet date. If there is
indication of impairment, the Company would estimate its recoverable amount based on single asset; if it is
difficult to estimate the recoverable amount of single asset, then the assets group which the single asset belongs to
is based to determine the recoverable amount of the assets group.
Recoverable amount of an asset is determined at the higher of its fair value less disposal fee and present value of
its predicted future cash flow.
75
深圳深宝实业股份有限公司 2016 年半年度报告全文
If measurement of recoverable amount shows that the recoverable amount of long term asset is lower than
carrying value, and then the carrying value shall be deducted to recoverable amount, with the deducted amount
recognized as impairment loss which is included in current period gains and losses, meanwhile, asset impairment
provision shall be made accordingly. Once recognized, asset impairment loss would not be reversed in future
accounting period.
Once an asset is recognized for impairment loss, its depreciation or amortization expense would be adjusted in
future periods, so as to systematically allocate the adjusted asset carrying value (after deduction of predicted net
residual value) during the remaining useful life.
Goodwill arising from business combination and intangible assets with indefinite useful life shall be tested
annually for impairment whether or not there is indication of impairment.
When goodwill impairment testing comes, book value of goodwill is allocated to asset group or combination
benefit from the synergies of the business combination. When conducting impairment test for relevant asset group
with inclusion of goodwill, in case that there is indication of impairment for such asset group, impairment test
would be firstly conducted in respect of the asset groups without inclusion of goodwill. Then, it shall calculate the
recoverable amount and determine the corresponding impairment loss as compared to its carrying value. Second,
asset group with inclusion of goodwill would be tested for impairment. If it is found after comparison between the
carrying value and recoverable amount of the asset group that the recoverable amount is less than carrying value,
the Company would recognize impairment loss for goodwill.
21. Long term prepaid expense
Long term prepaid expense represents the expense which the Company has occurred and shall be amortized in the
current and later periods with amortization period exceeding one year. Long term prepaid expense is amortized
during the beneficial period under straight line method.
22. Staff remuneration
(1)Accounting treatment for short term remuneration
Staff remuneration refers to various means of remuneration or compensation paid by the Company to acquire
service provided by its staff or to dismiss labor relationship with staff. Staff remuneration includes short term
remuneration, post-office benefits; dismiss benefits and other long term staff benefits.
1. short term remuneration
Short term remuneration refers to all the staff remuneration payable by the Company to its staff within 12 months
after the end of annual reporting period in which staff provides relevant services, other than post office benefit and
dismissal benefits. The Company recognizes short term remuneration payables as liabilities during the accounting
period during which staff provides services, and includes in cost and expense of relevant asset according to the
beneficial parties of such services.
(2) Accounting treatment for post office benefits
1. post office benefits
Post office benefits refer to kinds of remuneration or benefits granted by the Company to staff for their provision
of service upon retirement or release of employment, other than short term remuneration and dismissal benefits.
Post benefit plan is categorized as defined withdraw plan and defined benefit plan.
76
深圳深宝实业股份有限公司 2016 年半年度报告全文
Defined withdraw plan under post office benefit mainly represents participation into social basic pension
insurance and unemployment insurance operated by labor and social security authorities. During the accounting
period when employee provides services for the Company, the contribution calculated under defined withdraw
plan would be recognized as liabilities and included in current gains and losses or relevant asset cost.
Other than periodic payment of the aforesaid amounts in compliance with national standards, the Company is not
obliged to make other payment.
(3) Accounting treatment for dismissal benefit
1. Dismissal benefit
Dismissal benefit represents compensation paid to employees for release of employment before expiration or as
compensation for their willing of cut, Liabilities arising from dismiss benefit shall be included in current profit
and loss when the company cannot unilaterally withdraw from the termination plan or take redundancy offer and
when reorganize the payment of termination benefits related to the cost.
(4) Accounting treatment for other long term staff benefits
1. Other long term staff benefits
Other long term staff benefits refers to all the other staff benefits except for short term remuneration, post office
benefit and dismissal benefit.
For other long term staff benefits satisfying conditions under defined withdraw plan, the contribution payables
shall be recognized as liabilities and included in current gains and losses or relevant asset cost during the
accounting period in which the staff provides services to the Company.
23. 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:
(1) The responsibility is a current responsibility undertaken by the Company;
(2) Fulfilling of the responsibility may lead to financial benefit outflow;
(3) 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:
77
深圳深宝实业股份有限公司 2016 年半年度报告全文
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
24. Revenue
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
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.
25. Government Grants
(1) Determination basis and accounting for government grants related to assets
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.
2. Recognition of government subsidies
At end of the period, if there is evidence show that the Company qualified relevant condition of fiscal supporting
polices and such supporting funds are predicted to obtained, than recognized the amount receivable as government
subsidy. After that, government subsidy shall recognize while actually received.
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
78
深圳深宝实业股份有限公司 2016 年半年度报告全文
nominal amount (RMB1) is used. Government subsidies measured at nominal amount is recognized immediately
in profit or loss for the current period.
3. Accounting method
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;
(2) Determination basis and accounting for government grants related to income
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.
26. Deferred income tax assets and deferred income tax liabilities
Deferred income tax assets and liabilities are measured and recognized based on the difference (temporary
difference) between the taxation bases of the assets and liabilities and their carrying value. As of the balance
sheet date, deferred income tax assets and liabilities are measured at the tax rate applicable during the period
in which the assets are recovered or liabilities are settled.
1. Reference for recognition of deferred income tax assets
Deferred income tax asset arising from deductible temporary difference is recognized to the extent of assessable
income which is likely to acquire to offset deductible temporary difference and for which deductible losses and
tax credit for subsequent years can be carried forward. However, deferred income tax assets arising from initial
measurement of assets or liabilities in transactions with the following characteristics would not be recognized:
(1)the transaction is not business combination; (2)occurrence of the transaction would neither affect accounting
profit nor affect assessable income or deductible loss.
For deductible temporary difference relating to investment in associates, the Company would recognize deferred
income tax assets accordingly if the following conditions are met: temporary difference is likely to be reversed in
foreseeable future and it is likely to acquire assessable income against which deductible temporary difference is
utilized.
2. Basis for determination of deferred income tax liabilities
Assessable temporary difference which should be paid while not paid yet for the current and previous periods is
recognized as deferred income tax liabilities, excluding:
(1) Temporary difference arising from initial measurement of goodwill;
79
深圳深宝实业股份有限公司 2016 年半年度报告全文
(2) Transaction or issue arising from non business combination, and its occurrence would neither affect
accounting profit, nor affect temporary difference arising from assessable income (or deductible loss);
(3) For assessable temporary difference relating to investments in subsidiary or associate, timing for reversal of
the temporary difference can be controlled and it is likely that the difference would not be reversed in foreseeable
future.
3. Deferred tax assets and liabilities are offset if all the following conditions are met.
(1) An enterprise has the legal rights to settle the income tax assets and income tax liabilities for the current period
by net amount;
(2) They relate to income taxes levied by the same tax authority on either the taxable entity has a legally
enforceable right or set off current income tax assets against current income tax liabilities, and different taxable
entities which either intend to settle the current income tax liabilities and assets on a net basis, or to realize the
assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax
liabilities or assets are expected to be settled or recovered.
27. Changes of major accounting policy and estimation
(1) Changes of major accounting policy
□ Applicable √ Not applicable
( 2) Changes of major accounting estimation
□ Applicable √ Not applicable
VI. Taxes
1. Type of tax and rate for main applicable tax
Taxes Basis Rate
Sales of goods, rental revenue and service
VAT 17%, 11%, 6% and 3%
revenue
Business tax Taxable turnover 5%
Urban maintenance and construction tax Payable turnover taxes 5%, 7%
Educational surtax Payable turnover taxes 5%
Rate of income tax for different taxpaying body:
Taxpaying body Rate of income tax
The Company 25%
Shenbao Huacheng 15%
Including: Shantou Branch of Shenbao Huacheng 25%
Wuyuan Ju Fang Yong 15%
Shenbao Sanjing 25%
Huizhou Shenbao Science & Technology 25%
Shenbao Properties 25%
80
深圳深宝实业股份有限公司 2016 年半年度报告全文
Shenbao Industrial & Trading 25%
Hangzhou Ju Fang Yong 25%
Shenbao Yuxing 25%
Shenbao Technology Center 25%
Fuhaitang Ecological 25%
Chunshi Network 25%
Shenshenbao Investment 25%
Shenshenbao Tea Culture 25%
Pu’er Supply Chain 25%
Pu’er Tea Trading Center 25%
Jufangyong Trading 25%
2. Tax preferential
Shenbao Huacheng, a wholly-owned subsidiary of the Company, has been granted High-tech Enterprise
Certification (No. GF201444201602) jointly promulgated by Shenzhen Commission on Innovation & Technology,
Shenzhen Finance Committee, Shenzhen Municipal Bureau of State Taxation and Shenzhen Municipal Bureau of
Local Taxation as at the date of 30 September 2014 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 enterprise 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
2014 to 2016.
Wuyuan Jufangyong, a wholly-owned subsidiary of the Company, has been granted High-tech Enterprise
Certification (No. GF201436000182) jointly promulgated by Jiangxi Provincial Department of Science &
Technology, Shenzhen Finance Committee, Finance Bureau of Jiangxi Province, Jiangxi Municipal Bureau of
State Taxation and Local Taxation as at the date of 8 October 2014 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 enterprise income tax, capable for 3 years
commencing from the year when they are deemed as qualified. Wuyuan Jufangyong has favored from this
preferential policy from 2014 to 2016.
VII. Annotation to main items of consolidated financial statements
1. Monetary fund
In RMB
Item Ending balance Opening balance
319,321.77 184,337.59
Cash on hand
144,579,730.69 147,329,549.56
Cash in bank
500,000.00 500,000.00
Other monetary fund
81
深圳深宝实业股份有限公司 2016 年半年度报告全文
145,399,052.46 148,013,887.15
Total
Other explanation:
Monetary fund with restriction concerned:
Item Ending balance Opening balance
Guarantee deposit 500,000.00 500,000.00
Total 500,000.00 500,000.00
While presenting the cash flow statement, restricted other monetary fund has been deducted from the cash and
cash equivalent at period-end
2. Financial assets measured by fair value and with the variation recorded into current gains/losses
In RMB
Item Ending balance Opening balance
Tradable financial assets 2,737,496.71 3,586,352.90
Equity instrument investment 2,737,496.71 3,586,352.90
Total 2,737,496.71 3,586,352.90
Other explanation:
Closing balance refers to the 258,011 shares of A-stock under the name of “Shen Zhonghua-A”
3. Note receivables
(1) Classification of notes receivable
In RMB
Item Ending balance Opening balance
Bank acceptance bill 38,922.90
Total 38,922.90
4. Account receivable
(1) Account receivable classified according to types
In RMB
Ending balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Type Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
Ratio Ratio
Account receivable
withdrawal bad debt
70,004,4 1,264,41 68,740,02 77,217, 1,269,408 75,948,016.
provision by group of 78.31% 1.81% 79.93% 1.64%
42.07 9.25 2.82 424.39 .27 12
credit risk
characteristics
Account receivable 19,391,0 21.69% 19,391,0 100.00% 19,391, 20.07% 19,391,00 100.00%
82
深圳深宝实业股份有限公司 2016 年半年度报告全文
with single minor 01.77 01.77 001.77 1.77
amount but
withdrawal bad debt
provision for single
item
89,395,4 20,655,4 68,740,02 96,608, 20,660,41 75,948,016.
Total 100.00% 23.11% 100.00% 21.39%
43.84 21.02 2.82 426.16 0.04 12
Account receivable with single significant amount and withdrawal bad debt provision separately at period end:
□ Applicable √ Not applicable
Account receivable provided for bad debt reserve under aging analysis method in the groups:
√ Applicable □ Not applicable
In RMB
Ending balance
Age
Account receivable Bad debt reserve Accrual ratio
Sub item within 1 year
Within 1 year 55,095,814.39
1－2 yeas 8,570,623.80 428,531.20 5.00%
2-3 years 2,296,250.51 229,625.05 10.00%
Over 3 years 4,041,753.37 606,263.00 15.00%
3-4 years 678,033.35 101,705.00 15.00%
4-5 years 792,574.03 118,886.10 15.00%
Over 5 years 2,571,145.99 385,671.90 15.00%
Total 70,004,442.07 1,264,419.25 1.81%
Explanations on combination determine:
In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable:
(2) Top 5 account receivable collected by arrears party
Name Ending balance Proportion in total receivables at Bad debt provision
closing balance (%) accrual
Customer 1 9,823,366.00 10.99 ---
Customer 2 4,819,480.00 5.39 ---
Customer 3 4,803,698.40 5.37 237,321.84
Customer 4 4,696,360.00 5.25 ---
Customer 5 3,438,320.16 3.85 ---
83
深圳深宝实业股份有限公司 2016 年半年度报告全文
Total 27,581,224.56 30.85 237,321.84
5. Account paid in advance
(1) Aging analysis
In RMB
Ending balance Opening balance
Age
Amount Ratio Amount Ratio
Within 1 year 9,065,410.34 97.04% 16,227,516.31 87.24%
1－2 yeas 231,942.58 2.48% 1,844,886.90 9.92%
2-3 years 20,701.00 0.22% 505,768.33 2.72%
Over 3 years 23,428.80 0.25% 23,428.80 0.12%
Total 9,341,482.72 -- 18,601,600.34 --
2. Top 5 account paid in advance at closing balance collected by objects
Ratio in total account paid in advance
Name Closing amount
(%)
Supplier 1 1,661,520.00 17.79
Supplier 2 1,241,500.00 13.29
Supplier 3 712,153.26 7.62
Supplier 4 671,385.05 7.19
Supplier 5 501,840.00 5.37
Total 4,788,398.31 51.26
6. Other account receivable
(1) Other account receivable classified according to types:
In RMB
Ending balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Type Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Other account
receivable with
single major amount 19,308,7 8,402,58 10,906,13 19,103, 8,197,820 10,906,134.
39.84% 43.52% 39.70% 42.91%
and withdrawal bad 17.85 3.56 4.29 954.35 .06 29
debt provision for
single item
Other account
receivable
withdrawal bad debt 11,579,2 323,648. 11,255,56 11,443, 329,438.8 11,113,637.
23.89% 2.80% 23.78% 2.88%
provision by group of 16.33 84 7.49 076.49 4 65
credit risk
characteristics
Other account 17,577,7 36.27% 17,577,7 100.00% 17,577, 36.52% 17,577,79 100.00%
84
深圳深宝实业股份有限公司 2016 年半年度报告全文
receivable with 95.82 95.82 795.82 5.82
single minor amount
but withdrawal bad
debt provision for
single item
48,465,7 26,304,0 22,161,70 48,124, 26,105,05 22,019,771.
Total 100.00% 54.27% 100.00% 54.24%
30.00 28.22 1.78 826.66 4.72 94
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period:
√ Applicable □ Not applicable
In RMB
Account Ending balance
receivable(units) Account receivable Bad debt reserve Accrual ratio Reasons
Changzhou Shenbao Accrued recoverable
Chacang E-commence 19,308,717.85 8,402,583.56 43.52% amount is under the book
Co., Ltd balance
Total 19,308,717.85 8,402,583.56 -- --
Other receivable with bad debt provision withdrawal by age analysis in group:
√ Applicable □ Not applicable
In RMB
Ending balance
Age
Other accounts receivable Bad debt provision Accrual ratio
Sub item within 1 year
Within 1 year 8,341,252.46
1－2 yeas 1,029,988.00 51,499.40 5.00%
2-3 years 1,180,938.60 118,093.86 10.00%
Over 3 years 1,027,037.27 154,055.58 15.00%
3-4 years 209,434.84 31,415.23 15.00%
4-5 years 57,236.34 8,585.45 15.00%
Over 5 years 760,366.09 114,054.91 15.00%
Total 11,579,216.33 323,648.84 2.80%
Explanations on combination determine:
In combination, withdrawal proportion of bad debt provision based on balance proportion for other account
receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable:
□ Applicable √ Not applicable
85
深圳深宝实业股份有限公司 2016 年半年度报告全文
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual was 204,763.50 Yuan; the amount collected or switches back amounting to 5,790.00
Yuan
( 3) Nature classification for other receivables
In RMB
Item Closing book balance Opening book balance
Margin and deposit 8,846,428.76 3,435,894.26
VAT rebates receivables 242,011.73 27,140.22
Intercourse funds and other 39,377,289.51 44,661,792.18
Total 48,465,730.00 48,124,826.66
( 4) Top 5 other account receivable collected by arrears party at balance of period-end
In RMB
Bad debt
Ratio in total other
Amount provision
Name Ending balance Age account receivable at
nature Closing
closing balance
balance
Changzhou Shenbao Chacang Intercourse Within 1 year and
19,308,717.85 39.84% 8,402,583.56
E-commence Co., Ltd funds over one year
Shenzhen Shichumingmen Restaurant Intercourse
1,272,635.63 Within 1 year 2.63%
Management Co., Ltd. funds
Hangzhou Shilongshan Ecological Intercourse
600,000.00 2－3 years 1.24% 60,000.00
Park Co., Ltd funds
Shenzhen Shenbao Manan Intercourse
500,000.00 Within 1 year 1.03%
Biotechnology Co., Ltd funds
Fujian Wuyishan Yuxing Tea Industry
Deposit 500,000.00 1-2 years 1.03% 25,000.00
Co., Ltd
Total -- 22,181,353.48 -- 45.77% 8,487,583.56
7. Inventory
(1) Types
In RMB
Ending balance Opening balance
Items
Falling price Falling price
Book balance Book value Book balance Book value
reserves reserves
Raw materials 75,423,703.60 3,893,177.28 71,530,526.32 58,516,983.93 3,893,177.28 54,623,806.65
Goods in process 36,102,426.61 81,052.46 36,021,374.15 27,601,507.25 81,052.46 27,520,454.79
Finished goods 48,067,429.79 810,517.22 47,256,912.57 79,669,708.08 810,517.22 78,859,190.86
Goods in transit 2,689,044.21 2,689,044.21 6,546,946.43 6,546,946.43
Materials
5,353,253.71 5,290,502.32 62,751.39 5,349,996.81 5,290,502.32 59,494.49
processed on
86
深圳深宝实业股份有限公司 2016 年半年度报告全文
commission
Wrappage 6,826,844.19 6,826,844.19 8,212,480.31 8,212,480.31
Total 174,462,702.11 10,075,249.28 164,387,452.83 185,897,622.81 10,075,249.28 175,822,373.53
(2) Inventory falling price reserves
In RMB
Current amount increased Current amount decreased
Item Opening balance Switch back/ Ending balance
Accrual Other Other
Written off
Raw materials 3,893,177.28 3,893,177.28
Goods in process 81,052.46 81,052.46
Finished goods 810,517.22 810,517.22
Work in
5,290,502.32 5,290,502.32
process-outsourced
Total 10,075,249.28 10,075,249.28
8. Other current assets
In RMB
Item Ending balance Opening balance
VAT input tax ready for deduction 3,953,138.43 2,012,976.56
Financial products 20,000,000.00
Total 23,953,138.43 2,012,976.56
9. Financial assets available for sale
(1) Financial assets available for sale
In RMB
Ending balance Opening balance
Item
Depreciation Depreciation
Book balance Book balance Book balance Book balance
reserves reserves
Instrument equity
17,537,500.00 17,480,000.00 57,500.00 17,537,500.00 17,480,000.00 57,500.00
available for sale:
Measured by cost 17,537,500.00 17,480,000.00 57,500.00 17,537,500.00 17,480,000.00 57,500.00
Total 17,537,500.00 17,480,000.00 57,500.00 17,537,500.00 17,480,000.00 57,500.00
(2) Financial assets available for sale measured by cost at period-end
In RMB
Book balance Depreciation reserves Ratio of
share-holdi Current
Investee
Opening Current Current Closing Opening Current Current Closing ng in cash
unit
balance increased decreased balance balance increased decreased balance invested dividend
entity
Shenzhen 2,480,000. 2,480,000. 2,480,000. 2,480,000.
0.95%
Sanjiu 00 00 00 00
87
深圳深宝实业股份有限公司 2016 年半年度报告全文
Weitai
Capsules
Co., Ltd.
Shenzhen
Tianji
Photoelect
ric 15,000,000 15,000,000 15,000,000 15,000,000
3.77%
Technolog .00 .00 .00 .00
y
Industrial
Co., Ltd
Beijing
Tiantan 57,500.00 57,500.00
Co., Ltd.
17,537,500 17,537,500 17,480,000 17,480,000
Total --
.00 .00 .00 .00
(3) Change of financial assets depreciation for sale during reporting period
In RMB
Instrument equity available for Instrument debt available
Type Total
sale for sale
Balance of impairment accrual at
17,480,000.00 17,480,000.00
period-begin
Balance of impairment accrual at
17,480,000.00 17,480,000.00
period-end
10. Long-term equity investment
In RMB
-,+ in the Period Ending
Investmen Other Cash balance
Addition Capi Impair
Opening t gains comprehe Other dividend Ending of
Investee unit al tal ment
balance recognized nsive equity or profit Other balance impairme
investme redu accrua
under income change announced nt
nt ction l
equity adjustment to issued provision
I. Joint venture
II. Associated enterprise
Shenzhen Shenbao
2,870,000. 2,870,000 2,870,000
(Xinmin) Food Co.,
00 .00 .00
Ltd*1
Changzhou Shenbao
Chacang
E-commence Co.,
88
深圳深宝实业股份有限公司 2016 年半年度报告全文
Ltd*2
Shenzhen Shenbao
(Liaoyuan)
57,628.53 57,628.53 57,628.53
Industrial Co.,
Ltd*1
Shenzhen Shenbao
Manan 1,062,646. 1,067,923
5,276.71
Biotechnology Co., 40 .11
Ltd
Yunnan Pu’er Tea
3,701,976. 1,875,00 -499,151.0 -5,077,8
Trading Center Co.,
81 0.00 1 25.80
Ltd. *3
Shenzhen
Shichumingmen
2,270,330. -1,585,470 684,860.2
Restaurant
70 .46 4
Management Co.,
Ltd.
Guangzhou Shenbao
4,500,00 4,434,349
Mendao Tea Co., -65,650.45
0.00 .55
Ltd.
9,962,582. 6,375,00 -5,077,8 9,114,761 2,927,628
Subtotal
44 0.00 25.80 .43 .53
9,962,582. 6,375,00 -2,144,995 -5,077,8 9,114,761 2,927,628
Total
44 0.00 .21 25.80 .43 .53
Other explanation
*1: these two companies have been established for a long time. At the current stage, their business licenses have been revoked.
Impairment provision is made in full due to absence of settlement.
*2: the long term equity investment in Changzhou Shenbao Tea Storage E-commerce Company is measured at equity method. Due to
that the company recorded serious losses, book balance for this long term equity investment is treated with nil.
*3: the Company’s subsidiary Hangzhou Jufangyong increased capital contribution of RMB1, 875,000 to Yunan Puer Tea Trading
Center Company Limited in May 2016. Upon completion of which, the shareholding of the Company in Yunan Puer Tea Trading
Center Company Limited increased from 40% to 55%. Accordingly, the Company changed to consolidate financial statement of
Yunan Puer Tea Trading Center Company Limited at cost rather than at equity.
11. Investment real estate
(1) Investment real estate measured at cost
√ Applicable □ Not applicable
In RMB
89
深圳深宝实业股份有限公司 2016 年半年度报告全文
Construction in
Item House and building Land use right Total
process
I. Total original book value
1.Opening balance 19,305,918.88 19,305,918.88
2.Current amount increased 528,724.63 528,724.63
( 1)Outsourcing 528,724.63 528,724.63
( 2)Stock\fixed assets \Transfer-in from
construction in process
( 3)Increased by combination
3.Current amount decreased
( 1) Disposal
(2)Other transfer-out
4.Ending balance 19,834,643.51 19,834,643.51
II. accumulated depreciation and
accumulated amortization
1.Opening balance 496,725.20 496,725.20
2.Current amount increased 191,048.16 191,048.16
(1) Accrual or amortization 191,048.16 191,048.16
3.Current amount decreased
( 1) Disposal
(2)Other transfer-out
4.Ending balance 687,773.36 687,773.36
III. impairment provision
1.Opening balance
2.Current amount increased
(1) Accrual
3. Current amount decreased
( 1) Disposal
(2)Other transfer-out
4.Ending balance
IV. Book value
1. Ending book value 19,146,870.15 19,146,870.15
2.Openingbook value 18,809,193.68 18,809,193.68
( 2) Investment real estate measured by fair value
□ Applicable √ Not applicable
90
深圳深宝实业股份有限公司 2016 年半年度报告全文
( 3) Certificate of title un-completed for investment real estate
In RMB
Item Book value Reasons
Obtained property certification on 6 July
Houses and buildings 19,146,870.15
2016
12. Fixed assets
(1) Fixed assets
In RMB
Houses and Mechanical Transportation
Item Other equipment Total
buildings equipment vehicle
I. Original book value:
1.Opening balance 278,320,081.26 223,496,629.95 7,305,114.52 13,701,871.16 522,823,696.89
2.Current amount
2,816,139.45 5,514,355.69 474,522.52 861,919.50 9,666,937.16
increased
(1) Purchase 846,906.65 2,564,507.79 25,681.97 3,437,096.41
(2) Transfer-in from
1,969,232.80 2,949,847.90 4,919,080.70
construction in process
( 3)Increased by
474,522.52 836,237.53 1,310,760.05
combination
3.Current amount
14,500.00 9,650.00 46,927.21 71,077.21
decreased
( 1) Disposal or scrap 14,500.00 9,650.00 46,927.21 71,077.21
4.Ending balance 281,136,220.71 228,996,485.64 7,769,987.04 14,516,863.45 532,419,556.84
II. accumulated depreciation
1.Opening balance 32,098,558.04 119,504,906.16 3,968,400.89 6,186,245.57 161,758,110.66
2.Current amount
2,656,591.53 7,024,514.67 356,255.03 921,888.88 10,959,250.11
increased
(1) Accrual 2,656,591.53 7,024,514.67 343,813.99 902,500.57 10,927,420.76
( 2)Increased by
12,441.04 19,388.31 31,829.35
combination
3.Current amount
2,869.80 140,108.24 8,641.04 151,619.08
decreased
( 1) Disposal or scrap 2,869.80 140,108.24 8,641.04 151,619.08
4.Ending balance 34,755,149.57 126,526,551.03 4,184,547.68 7,099,493.41 172,565,741.69
III. impairment provision
1.Opening balance 2,647,112.69 2,647,112.69
2.Current amount
91
深圳深宝实业股份有限公司 2016 年半年度报告全文
increased
(1) Accrual
3.Current amount
decreased
( 1) Disposal or scrap
4.Ending balance 2,647,112.69 2,647,112.69
IV. Book value
1. Ending book value 246,381,071.14 99,822,821.92 3,585,439.36 7,417,370.04 357,206,702.46
2.Openingbook value 246,221,523.22 101,344,611.10 3,336,713.63 7,515,625.59 358,418,473.54
(2) Certificate of title un-completed for fixed assets
In RMB
Item Book value Reasons
Obtained property certification on 6 July
R&D and premises 67,389,300.07
2016
Dormitory of Shantou Branch of Shenbao Handle after new regulations issued, the
1,810,185.43
Huacheng Company work in process
13. Construction in process
(1) Construction in process
In RMB
Ending balance Opening balance
Item
Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Shenbao Plaza project 3,842,333.64 3,842,333.64 3,842,333.64 3,842,333.64
Wuyuan factory
2,197,575.79 2,197,575.79 6,750,385.61 6,750,385.61
project
Land fence and road
1,408,026.25 1,408,026.25
project
Modification works
on production 38,574.34 38,574.34
equipment
Land project of
Supply Chain 2,462,814.87 2,462,814.87
Company
Project of Yunnan Tea
975,233.83 975,233.83
Trading Center
Other 943,379.03 903,189.74 40,189.29 943,379.03 903,189.74 40,189.29
Total 11,867,937.75 4,745,523.38 7,122,414.37 11,536,098.28 4,745,523.38 6,790,574.90
(2) Changes of major construction in process
92
深圳深宝实业股份有限公司 2016 年半年度报告全文
In RMB
Includin
Proporti g:
Accumul
Other on of amount Interest
Current ated
Opening Transfer- decrease Ending project of capitaliz Capital
Projects Budget amount in fixed Progress capitaliz
balance assets d in the balance investme capitaliz ation rate resources
increased ation of
Period nt in ation of in Period
interest
budget interest
in Period
Wuyuan
6,750,38 964,684. 4,666,58 850,905. 2,197,57 Self-rais
factory 49.19
5.61 05 8.58 29 5.79 ed
project
Land
fence 1,408,02 1,408,02 Self-rais
37.76
and road 6.25 6.25 ed
project
Land
project
of
2,462,81 2,462,81 Self-rais
Supply 11.19
4.87 4.87 ed
Chain
Compan
y
6,750,38 4,835,52 4,666,58 850,905. 6,068,41
Total -- -- --
5.61 5.17 8.58 29 6.91
14. Productive biological assets
(1) Productive biological assets measured by cost
√ Applicable □ Not applicable
In RMB
Item Plant Livestock Forestry Fisheries Total
Tea tree
I. original book
value
1.Opening balance 436,156.00 436,156.00
2.Current amount
increased
(1)Outsourcing
(2)self-cultivate
3.Current amount
decreased
93
深圳深宝实业股份有限公司 2016 年半年度报告全文
(1) Disposal
(2) Other
4.Ending balance 436,156.00 436,156.00
II. accumulated
depreciation
1.Opening balance
2.Current amount
4,846.18 4,846.18
increased
(1) Accrual 4,846.18 4,846.18
3.Current amount
decreased
(1) Disposal
(2) Other
4.Ending balance 4,846.18 4,846.18
III. impairment
provision
1.Opening balance
2.Current amount
increased
(1) Accrual
3.Current amount
decreased
(1) Disposal
(2) Other
4.Ending balance 431,309.82 431,309.82
IV. Book value
1. Ending book
431,309.82 431,309.82
value
2.Openingbook
436,156.00 436,156.00
value
15. Intangible assets
(1) Intangible assets
In RMB
Item Land using right Patent Un-patent tech Other Total
I. Original book
value
1.Opening balance 162,844,832.87 43,356,116.81 7,908,874.54 22,871,704.98 236,981,529.20
2.Current amount 9,423,090.00 291,262.15 9,714,352.15
94
深圳深宝实业股份有限公司 2016 年半年度报告全文
increased
( 1) Purchase 9,423,090.00 202,862.15 9,625,952.15
(2) internal R&D
( 3)Increased by
88,400.00 88,400.00
combination
3.Current amount
decreased
( 1) Disposal
4.Ending balance 172,267,922.87 43,356,116.81 8,200,136.69 22,871,704.98 246,695,881.35
II. accumulated
depreciation
1.Opening balance 21,766,135.30 18,057,291.32 2,596,105.35 1,504,626.96 43,924,158.93
2.Current amount
1,690,272.23 1,068,102.03 469,112.33 195,474.60 3,422,961.19
increased
(1) Accrual 1,690,272.23 1,068,102.03 467,639.00 195,474.60 3,421,487.86
( 2) Increased by
1,473.33 1,473.33
enterprise combine
3.Current amount
decreased
( 1) Disposal
4.Ending
23,456,407.53 19,125,393.35 3,065,217.68 1,700,101.56 47,347,120.12
balance
III. impairment
provision
1.Opening balance
2.Current amount
increased
(1) Accrual
3.Current amount
decreased
( 1) Disposal
4.Ending balance
IV. Book value
1. Ending book
148,811,515.34 24,230,723.46 5,134,919.01 21,171,603.42 199,348,761.23
value
2.Openingbook
141,078,697.57 25,298,825.49 5,312,769.19 21,367,078.02 193,057,370.27
value
16. Development expense
In RMB
95
深圳深宝实业股份有限公司 2016 年半年度报告全文
Opening
Item Current amount increased Current amount decreased Ending balance
balance
Item 1 159,475.33 159,475.33
Item 2 158,673.19 158,673.19
Item 3 132,035.69 132,035.69
Item 4 194,986.66 194,986.66
Item 5 123,965.22 123,965.22
Item 6 114,624.81 114,624.81
Item 7 124,924.35 124,924.35
Item 8 56,988.84 56,988.84
Item 9 65,638.07 65,638.07
Item 10 108,975.80 108,975.80
Item 11 72,975.83 72,975.83
Item 12 69,348.19 69,348.19
Item 13 46,738.29 46,738.29
Item 14 9,316.42 9,316.42
Total 1,438,666.69 1,438,666.69
17. Long-term deferred expense
In RMB
Current amount Current
Item Opening balance Other decreased Ending balance
increased amortization
Decoration charge for office
11,278,199.11 1,352,129.25 2,302,361.13 10,327,967.23
rented-in
Affiliated project of resident
1,008,682.43 154,681.60 854,000.83
area in Jufangyong Wuyuan
Reform of tea park in Wuyuan 114,968.82 46,151.09 68,817.73
Reform project of warehouse 3,082,061.73 522,648.35 272,409.54 3,332,300.54
Lease of workshop and office
249,424.40 116,237.64 133,186.76
building
Other 260,017.98 120,000.00 143,352.13 236,665.85
Total 15,993,354.47 1,994,777.60 3,035,193.13 14,952,938.94
18. Deferred income tax assets and deferred income tax liability
(1) Deferred income tax assets without offset
In RMB
Ending balance Opening balance
Item
Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Impairment provision for 19,193,997.51 4,487,470.13 18,989,234.01 4,436,279.25
96
深圳深宝实业股份有限公司 2016 年半年度报告全文
assets
Gains from changes of
-848,856.19 212,214.05
fair value
Total 18,345,141.32 4,699,684.18 18,989,234.01 4,436,279.25
(2) Deferred income tax liability without offset
In RMB
Ending balance Opening balance
Item
Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liability differences liability
Asset evaluation increment of
enterprise combine under different 4,596,175.27 1,149,043.82 4,747,915.76 1,186,978.94
control
Change of fair value for the financial
1,808,657.11 452,164.28
assets available for sale
Total 4,596,175.27 1,149,043.82 6,556,572.87 1,639,143.22
(3) Details of uncertain deferred income tax assets
In RMB
Item Ending balance Opening balance
Deductible temporary differences 65,845,729.11 65,651,744.63
Losses deductible 98,027,808.60 98,027,808.60
Total 163,873,537.71 163,679,553.23
19. Other non-current assets
In RMB
Item Ending balance Opening balance
Land purchase paid in advance 9,381,000.00
Total 9,381,000.00
20. Account payables
(1) Account payables
In RMB
Item Ending balance Opening balance
Within 1 year 12,032,146.76 16,248,897.59
1-2 years 294,497.56 1,493,317.01
2-3 years 291,331.73 291,331.73
Over 3 years 6,788,041.25 6,788,041.25
Total 19,406,017.30 24,821,587.58
(2) Major accounts payable with age over 1 year
In RMB
Item Ending balance Reasons of outstanding or carry-over
97
深圳深宝实业股份有限公司 2016 年半年度报告全文
Supplier 1 518,655.52 Uncertain whether need to be paid
Supplier 2 515,892.30 Uncertain whether need to be paid
Total 1,034,547.82 --
21. Account received in advance
(1) Account received in advance
In RMB
Item Ending balance Opening balance
Within 1 year 3,399,810.92 2,904,689.51
1-2 years 1,393.20 34,520.25
2-3 years 1,148.01 39,975.72
Over 3 years 735,406.45 735,406.45
Total 4,137,758.58 3,714,591.93
22. Wages payable
(1) Wages payable
In RMB
Item Opening balance Current increased Current decreased Ending balance
I. Short-term compensation 12,110,495.06 32,674,599.32 37,018,239.48 7,766,854.90
II. After-service welfare-defined
247,489.26 2,346,477.31 2,348,507.49 245,459.08
contribution plans
Total 12,357,984.32 35,021,076.63 39,366,746.97 8,012,313.98
(2) Short-term compensation
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Wage, bonus, allowance and
10,465,931.38 25,287,374.38 30,120,940.18 5,632,365.58
subsidy
2. Employees’ welfare 3,636,674.71 3,636,674.71
3. Social insurance charges 53,781.52 1,164,325.83 1,162,451.67 55,655.68
Including: basic medical
47,450.20 1,044,645.60 1,042,739.62 49,356.18
insurance premium
Industrial injury insurance
1,655.19 54,113.29 54,262.16 1,506.32
premiums
Maternity insurance
4,676.13 65,566.94 65,449.89 4,793.18
premiums
4. Housing public reserve 1,471,189.82 1,471,189.82
5. Trade union fee and education
1,590,782.16 1,115,034.58 626,983.10 2,078,833.64
fee
Total 12,110,495.06 32,674,599.32 37,018,239.48 7,766,854.90
(3) Defined contribution plans
In RMB
Item Opening balance Current increased Current decreased Ending balance
1. Basic endowment
239,024.92 2,262,796.28 2,263,923.05 237,898.15
insurance premiums
98
深圳深宝实业股份有限公司 2016 年半年度报告全文
2. Unemployment
8,464.34 83,681.03 84,584.44 7,560.93
insurance premiums
Total 247,489.26 2,346,477.31 2,348,507.49 245,459.08
23. Tax payable
In RMB
Item Ending balance Opening balance
Construction tax 722,432.24 743,463.75
business tax 28,118.29 73,967.84
Enterprise income tax 278,742.15 3,631,310.31
Personal income tax 528,101.63 512,502.60
Urban maintenance and construction tax 13,737.98 31,240.56
House property tax 212,077.20 212,077.17
Embankment fee -- 51,301.40
Surtax for education expenses 13,907.92 28,755.75
Use tax of land 15,721,488.76 15,721,488.76
Tenure tax 166,042.75 166,991.80
Other tax fee 628.57 135,273.68
Total 17,685,277.49 21,308,373.62
24. Dividend payable
In RMB
Item Ending balance Opening balance
Stocks without custody 218,212.60 218,212.60
Shenzhen Investment Management
2,690,970.14 2,690,970.14
Company
Total 2,909,182.74 2,909,182.74
Other explanation, including major payable dividends without paying over one year, disclosed non-payment
reasons:
Shenzhen Investment Management Company was the former majority shareholder of the Company, the payable
dividend left over by history guarantee
25. Other account payables
(1) Listed by nature
In RMB
Item Ending balance Opening balance
Deposit and margin 23,201,997.01 973,437.53
Engineering quality retention money and 3,656,479.77 2,474,634.27
99
深圳深宝实业股份有限公司 2016 年半年度报告全文
fund of tail
Intercourse funds and other 18,503,732.35 20,189,534.35
Total 45,362,209.13 23,637,606.15
(2) Significant other payable with over one year age
In RMB
Item Ending balance Reasons of un-paid or carry-over
Shenzhen Investment Management
3,510,297.20 Historical payment
Company
Total 3,510,297.20 --
26. Deferred income
In RMB
Increase during the Decreased during the
Item Opening balance Ending balance Causes
year year
Government grants 12,932,278.81 520,924.40 12,411,354.41
Total 12,932,278.81 520,924.40 12,411,354.41 --
Items involving governance grants:
In RMB
Grants Amount reckoned
increased into Other Assets-related/i
Liability Opening balance Ending balance
in the non-operating changes ncome-related
Period revenue
(1) Subsidy for tea seeding of New
49,920.00 -462.20 49,457.80 Assets-related
Tea Garden in Wangkou
(2) Construction amount for 50 tons
for clearly processing for Mingyou 875,000.00 875,000.00 Assets-related
tea
(3)Industrialization project of instant
2,673,474.29 98,222.94 2,575,251.35 Assets-related
tea power
(4) Special fund project of strategic
20,123.05 20,123.05 Assets-related
emerging industry development
(5) Base of further processing for tea
1,925,000.00 137,500.00 1,787,500.00 Assets-related
and nature plants
(6) Enterprise technology center is a
municipal R&D center. Subsidies for 2,599,374.61 102,012.23 2,497,362.38 Assets-related
industrial technological advancement
(7) Subsidies for key technology
research and industrialization of 195,746.24 7,122.51 188,623.73 Assets-related
instant tea powder
(8) Subsidy of Guangdong
1,120.58 1,120.58 Assets-related
–Agricultural public relation project
100
深圳深宝实业股份有限公司 2016 年半年度报告全文
(9) Special funds for Shenzhen
strategic emerging industrial
development (deep processing of 4,592,520.04 175,604.52 4,416,915.52 Assets-related
natural plant project) (Shen Fa Gai
No. 20131601)
Total 12,932,278.81 520,462.20 -462.20 12,411,354.41 --
27. Share capital
In RMB
Increased (decreased) in this year +,-
Opening balance Bonus Shares converted Ending balance
New shares
Other Sub-total
issued shares from public reserve
Total shares 301,080,184.00 150,540,092.00 150,540,092.00 451,620,276.00
28. Capital reserves
In RMB
Item Opening balance Current increased Current decreased Ending balance
Capital premium (Share
517,246,875.36 150,540,092.00 366,706,783.36
capital premium)
Other capital reserve 939,785.23 79.19 939,864.42
Total 518,186,660.59 79.19 150,540,092.00 367,646,647.78
29. Surplus reserves
In RMB
Item Opening balance Current increased Current decreased Ending balance
Statutory surplus
49,670,863.23 49,670,863.23
reserves
Total 49,670,863.23 49,670,863.23
30. Retained profit
In RMB
Item This period Last period
Retained profit at the end of the previous year
66,684,572.93 102,128,156.68
before adjustment
Total retained profit at the beginning of the
66,684,572.93 102,128,156.68
previous year before adjustment
Add: net profit attributable to shareholder of
-15,099,180.63 -35,256,169.10
parent company
Less: Exact Statutory surplus reserves 187,414.65
Retained profit at the begin of the year after
51,585,392.30 66,684,572.93
adjustment
Details about adjusting the retained profits at the beginning of the period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the retained
101
深圳深宝实业股份有限公司 2016 年半年度报告全文
profits at the beginning of the period amounting to 0 Yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0 Yuan.
3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 0 Yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period amounting to 0 Yuan.
5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 Yuan
31. Operating income and cost
In RMB
Current Period Last Period
Items
Income Cost Income Cost
Main operating 146,569,809.91 116,893,235.04 163,268,288.38 105,574,687.77
Other operating 2,585,719.80 87,854.89 3,065.99
Total 149,155,529.71 116,893,235.04 163,356,143.27 105,577,753.76
32. Business tax and surcharges
In RMB
Items Current Period Last Period
Business tax 190,365.07 2,408,951.65
Urban maintenance and construction tax 431,109.87 475,029.71
Educational surtax 324,406.46 347,779.17
Land VAT 6,121,700.63
Total 945,881.40 9,353,461.16
33. Sales expenses
In RMB
Items Current Period Last Period
Employee compensation and employee
8,939,930.99 6,788,330.62
costs
Rental and utilities 3,068,591.19 1,765,201.15
Depreciation and amortization expenses 1,756,086.17 759,933.91
Goods transport miscellaneous expenses 3,357,828.74 2,342,091.04
Sales discounts, promotion fee and
1,614,396.47 2,331,330.29
advertising expenses
Daily office expenses 1,566,521.12 1,928,729.25
Other 297,928.50 974,098.88
Total 20,601,283.18 16,889,715.14
102
深圳深宝实业股份有限公司 2016 年半年度报告全文
34. Management expenses
In RMB
Items Current Period Last Period
Employee compensation and employee
17,348,437.24 15,375,532.32
costs
Rental and utilities 1,242,451.04 922,959.85
Depreciation and amortization expenses 7,744,370.44 7,595,340.46
Intermediary and disclosure expenses 838,287.74 2,508,098.86
Tax and fee 1,531,982.39 1,455,551.93
Daily office expenses 4,455,006.68 5,301,740.34
Other 1,209,163.64 1,446,882.32
Total 34,369,699.17 34,606,106.08
35. Financial expenses
In RMB
Items Current Period Last Period
Interest expense 920,938.21 92,388.89
Less: interest income 791,028.37 987,191.77
Exchange loss -74,745.56 280,869.62
Other 158,133.30 152,148.31
Total 213,297.58 -461,784.95
36. Asset impairment loss
In RMB
Items Current Period Last Period
1. Bad debt losses 193,984.48 -28,845.44
2. Inventory falling price loss -109,905.31
Total 193,984.48 -138,750.75
37. Gains from change of fair value
In RMB
Source of gains from change of fair value Current Period Last Period
Financial assets measured by fair value and
-848,856.19 3,176,115.41
with its variation reckoned into current
103
深圳深宝实业股份有限公司 2016 年半年度报告全文
gains/losses
Total -848,856.19 3,176,115.41
38. Investment gains
In RMB
Items Current Period Last Period
Long-term equity investment gains recognized
-2,144,995.21 23,717.03
under equity method
Investment income from disposal of long-term
581,171.70
equity investment
Income from financial products 665,169.36 606,734.01
Total -898,654.15 630,451.04
39. Non-operating income
In RMB
Amount included in the current
Items Current Period Last Period
non-recurring profit and loss
Total income from disposal of
1,609.60 1,609.60
non-current assets
Including: Gains from disposal
1,609.60 1,609.60
of fixed assets
Government grant 1,876,962.20 2,368,991.93 1,876,962.20
Other 606,091.10 606,091.10
Satisfaction 3,733,754.39 3,554,722.34 3,733,754.39
Total 6,218,417.29 5,923,714.27 6,218,417.29
Government grants reckoned into current gains/losses:
In RMB
Whether
the
impact Wheth
Assets
Issuin of er
Amount of this Amount of last related/In
Grants Issuing subject g Property type subsidie special
period period come
cause s on the subsidi
related
current es
profit
and loss
Transfer-in from
520,462.20 568,991.93
deferred income
Agriculture Shenzhen Subsid Subsidy for research and N N 1,400,000.00 Income
104
深圳深宝实业股份有限公司 2016 年半年度报告全文
development for Economic and y development, relatively
year of 2014 – Trade and technological upgrading
subsidy of the Information and transformation
solid milk tea Technology
project Commission
CPC
Subsidy for national
Committee’s
Xingjiang Talent commitment to safeguard
organization Income
866 project Award certain public utilities or N N 100,000.00 100,000.00
department of relatively
subsidy socially necessary product
Wuyuan
supply
County
CPC
Subsidy for national
Committee’s
Ganpan Talent commitment to safeguard
organization Income
555 project Award certain public utilities or N N 400,000.00 300,000.00
department of relatively
subsidy socially necessary product
Wuyuan
supply
County
Discount loans for
key leading Finance Subsidy for industries the
enterprise of Commission Subsid country encourage and Income
N N 79,500.00
agriculture of Shenzhen y support (according to relatively
industrialization Municipality national policy)
for year of 2016
Shenzhen
Market Subsidy for research and
Supervisory Subsid development, Income
Patent subsidies N N 10,000.00
Authority y technological upgrading relatively
( Administrati and transformation
on)
Subsidy for over
Shenzhen Subsidy for industries the
the years of
Municipal Subsid country encourage and Income
Agricultural N N 700,000.00
Administratio y support (according to relatively
Bureau of Xihu
n of Taxation national policy)
District
Subsidy for industries the
Award for large People’s
country encourage and Income
taxpayer of the tea Government Award N N 63,000.00
support (according to relatively
industry of Wuyishan
national policy)
The second batch Shenzhen Subsidy for industries the
of patent financing Market Subsid country encourage and Income
N N 4,000.00
costs for year of Supervisory y support (according to relatively
2015 received Authority national policy)
105
深圳深宝实业股份有限公司 2016 年半年度报告全文
from Shenzhen
Market
Supervisory
Authority
Total -- -- -- -- -- 1,876,962.20 2,368,991.93 --
40. Non-operating expenditure
In RMB
Amount reckoned into current
Items Current Period Last Period
non-recurring gains/losses
non-current assets disposal
8,020.41 14,032.21 8,020.41
losses
Including: fixed assets disposal
8,020.41 14,032.21 8,020.41
losses
Other 363,070.33 35,780.00 363,070.33
Total 371,090.74 49,812.21 371,090.74
41. Income tax expense
(1) Statement of income tax expenses
In RMB
Items Current Period Last Period
Current income tax expenses 213,824.12 3,714,074.24
Deferred income tax expenses -715,569.21 971,230.54
Total -501,745.09 4,685,304.78
(2) Adjustment process of accounting profit and income tax expenses
In RMB
Items Current Period
Total profit -19,962,034.93
Income tax expenses calculated by statutory tax rate -4,886,916.89
Impact from different tax rate apply with the subsidiary -181,189.61
Cost, expenses and loss which are not deductible 48,496.12
Impact on deductible temporary differences or losses deductible
4,516,546.11
which was un-recognized as deferred income tax assets
Impact on investment income after deduction on regulation 1,319.18
Income tax expense -501,745.09
106
深圳深宝实业股份有限公司 2016 年半年度报告全文
42. Items of cash flow statement
(1) Cash received with other operating activities concerned
In RMB
Items Current Period Last Period
Interest income 521,408.99 820,002.65
Government grants 1,214,000.00 1,890,000.00
Intercourse funds and other 29,428,598.18 6,339,891.65
Total 31,164,007.17 9,049,894.30
(2) Cash paid with other operating activities concerned
In RMB
Items Current Period Last Period
Expenses 15,943,042.18 21,227,901.03
Intercourse funds and other 6,826,064.43 16,812,718.06
Total 22,769,106.61 38,040,619.09
(3) Cash received with other financing activities concerned
In RMB
Items Current Period Last Period
Sales income from odd lots increase by
79.19
transferring
Total 79.19
43. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
Item This Period Last Period
1.Net profit adjusted to cash flow of operation activities: -- --
Net profit -19,460,289.84 2,524,806.56
Add: Impairment provision for assets 193,984.48 -138,750.75
Depreciation of fixed assets, consumption of oil assets and depreciation of
10,959,250.11 11,957,927.05
productive biology assets
Amortization of intangible assets 3,422,961.19 3,621,835.57
Amortization of long-term deferred expenses 3,035,193.13 3,171,284.76
Loss from disposal of fixed assets, intangible assets and other long-term assets
8,020.41 14,032.21
(income is listed with “-“)
Loss from change of fair value (income is listed with “-“) 848,856.19 -3,176,115.41
Financial expenses (income is listed with “-“) 663,430.88 201,662.03
107
深圳深宝实业股份有限公司 2016 年半年度报告全文
Investment loss (income is listed with “-“) 898,654.15 -630,451.04
Decrease of deferred income tax assets (increased is listed with “-“) -263,404.93 255,930.79
Increase of deferred income tax liability (loss is listed with “-“) -490,099.40 756,113.77
Decrease of inventory (increased is listed with “-“) 11,434,920.70 -3,922,049.83
Decrease of operating receivable accounts (increased is listed with “-“) 8,158,346.27 -188,460,222.53
Increase of operating payable accounts (loss is listed with “-“) 12,188,124.02 195,737,613.00
Net cash flow arising from operating activities 31,597,947.36 21,913,616.18
2.Material investment and financing not involved in cash flow: -- --
3.Net change of cash and cash equivalents -- --
Balance of cash at period end 144,899,052.46 180,474,544.93
Less: Balance of cash at year-begin 147,513,887.15 266,847,778.44
Net increasing of cash and cash equivalents -2,614,834.69 -86,373,233.51
( 2) Net cash paid for acquiring subsidiaries in the period
In RMB
Amount
Cash or cash equivalent paid in the Period for enterprise combine -1,154,212.72
Including: --
Yunnan Pu’er Tea Trading Center Co., Ltd. -1,154,212.72
Including: --
Including: --
Net cash paid for acquiring subsidiary in the Period -1,154,212.72
( 3) Net cash received from subsidiary disposal
In RMB
Amount
Including: --
Less: cash and cash equivalent held by subsidiary on date when
919,992.72
controlling rights loss
Including: --
Shenzhen Shengyuan (Beijing) Food Co., Ltd. 919,992.72
Including: --
Net cash received from subsidiary disposal in the Period -919,992.72
（4）Constitution of cash and cash equivalent
In RMB
108
深圳深宝实业股份有限公司 2016 年半年度报告全文
Items Ending balance Opening balance
Ⅰ. Cash 144,899,052.46 147,513,887.15
Including: Cash on hand 319,321.77 184,337.59
Bank deposit available for payment at
144,579,730.69 147,329,549.56
any time
Ⅲ. Balance of cash and cash equivalent at
144,899,052.46 147,513,887.15
period-end
44. Assets with ownership or use right restricted
In RMB
Items Ending Book value Reason
Monetary fund 500,000.00 Guarantee deposit
Total 500,000.00 --
45. Item of foreign currency
(1) Item of foreign currency
In RMB
Closing balance of foreign
Items Rate of conversion Ending RMB balance converted
currency
Including: USD 947,920.24 6.6312 6,285,848.70
HKD 98,704.53 0.8547 84,359.80
Including: USD 560,241.28 6.6312 3,715,071.98
Account paid in advance
Including: USD 319,712.40 6.6312 2,120,076.87
Account received in advance
Including: USD 7,448.88 6.6312 49,395.01
(2) Explanation on foreign business entity, including major business entity, should disclosed the main operation
place, book-keeping currency and basis, as for the changes of book-keeping currency, disclosed the reasons
□ Applicable √ Not applicable
109
深圳深宝实业股份有限公司 2016 年半年度报告全文
VIII. Changes of consolidation range
1. Consolidation not under the same control
( 1) Enterprise combine not under the same control in the Period
In RMB
Acquiree’s
Determina
revenue Acquiree’s net
Time-point Equity tion basis
Cost for equity Way of Purchasing from profit from
Acquiree when equity ratio for the
acquired acquired date purchasing purchasing date
acquired acquired purchasing
date to to period-end
date
period-end
Yunnan Pu’er
Tea Trading Capital
2015-07-07 5,000,000.00 40.00% 2015-07-07 1,509.43 -5,276,360.55
Center Co., injection
Ltd.
Yunnan Pu’er
Tea Trading Reached
2016-05-13 1,875,000.00 15.00% Acquisition 2016-05-13 1,509.43 -783,425.06
Center Co., controlling
Ltd.
( 2) Combination cost and goodwill
In RMB
Combination cost
--Cash 6,875,000.00
Total combination cost 6,875,000.00
Less: net identifiable assets fair value acquired 6,201,059.68
Amount the goodwill/combination cost lower than the net
673,940.32
identifiable assets fair value acquired
(3) Identifiable assets/liability of the acquiree on purchasing date
In RMB
Fair value on purchasing date Book value on purchasing date
Assets: 4,843,103.85 4,843,103.85
Monetary fund 1,154,212.72 1,154,212.72
Fixed assets 1,437,353.10 1,437,353.10
Intangible assets 83,980.00 83,980.00
Liability: 586,039.34 586,039.34
Net assets 4,257,064.51 4,257,064.51
Net assets acquired 1,201,059.68 1,201,059.68
110
深圳深宝实业股份有限公司 2016 年半年度报告全文
(4) Gains or losses of the equity held before purchasing date re-measured by fair value
Whether realized combination step by step through multiple transaction and transactions with controlling rights
obtained during the Period
√Yes □No
In RMB
Amount transfer in
Determine basis and investment income
Gains or losses of
Book value of the Fair value of the main hypothesis of from other
the equity held
former equity held former equity held the fair value for comprehensive
Acquiree before purchasing
before purchasing before purchasing former equity held income related with
date re-measured by
date date before purchasing former equity held
fair value
date before purchasing
date
Yunnan Pu’er Tea Fair value of the
Trading Center Co., 3,202,825.80 3,202,825.80 -1,797,174.20 book assets have no 0.00
Ltd. changes
(5) For the condition of unable to determine the combination consideration reasonably on purchasing date or
period-end of combination, or the acquiree’s fair value of identifiable assets/liabilities, explain reasons
( 6)Other explanation
2. Subsidiary disposal
Whether losing controlling rights when dispose the subsidiary on one-time
√ Yes □ No
In RMB
Difference
betweenthe
disposalprice Other
Determination
and proportion comprehensive
method and
ofthe income
main
Determinationsubsidiary’snetProportionofBook valueof Fair valueofGainsorlosses transferred into
hypothesisfor
Priceofthe Wayofthe Time pointof basis forthe assetsenjoyin theresidual theresidual theresidual oftheresidual investment
Ratioofthe theresidual
Subsidiary equity equity controlright time pointof aspectoftheequityon dateequityon dateequityon date equity income ,which
equitydisposed equity’s fair
disposed disposed lose controlright consolidated when control when control when controlre-measured by related with the
valueonthe
lose financial rightslose rightslose rightslose fair value equity
datewhen
statement, investmentof
controlright
which is original
lose
respond to the subsidiary
disposal
investment
Shenzhe 3,825,00 51.00% For sale 2016-1-1 Protocol 0.00 0.00% 0.00 0.00 0.00 Not 581,171.
111
深圳深宝实业股份有限公司 2016 年半年度报告全文
n 0.00 agreeme applicabl 70
Shengyu nt e
an
(Beijing)
Food
Co., Ltd.
Whether dispose subsidiary step by step through multiple transaction and losing controlling rights during the
Period
□ Yes √No
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Main operation Share-holding ratio
Subsidiary Registered place Business nature Acquired way
place Directly Indirectly
Shenbao
Shenzhen Shenzhen Manufacturing 100.00% Establishment
Huacheng
Wuyuan Ju Fang
Shangrao Shangrao Manufacturing 100.00% Establishment
Yong
Shenbao Sanjing Huizhou Shenzhen Manufacturing 100.00% Establishment
Huizhou Shenbao
Science & Huizhou Huizhou Comprehensive 100.00% Establishment
Technology
Shenbao
Shenzhen Shenzhen Property management 100.00% Establishment
Properties
Shenbao
Industrial & Huizhou Shenzhen Wholesale 100.00% Establishment
Trading
Hangzhou Ju
Hangzhou Hangzhou Comprehensive 100.00% Establishment
Fang Yong
Shenbao Development, consulting
Technology Shenzhen Shenzhen and transfer of the 100.00% Establishment
Center technology
Shenbao Yuxing Wuyishan Wuyishan Manufacturing 51.75% Establishment
Fuhaitang Planting, production and
Hangzhou Hangzhou 92.00% Acquisition 收购
Ecological sales of tea
112
深圳深宝实业股份有限公司 2016 年半年度报告全文
Chunshi Network Hangzhou Hangzhou Wholesale 100.00% Establishment
Shenshenbao
Shenzhen Shenzhen Investment management 100.00% Establishment
Investment
Shenshenbao Tea
Shenzhen Shenzhen Comer and trade 65.00% Establishment
Culture
Jufangyong
Hangzhou Hangzhou Wholesale 60.00% Establishment
Trading
Pu’er Supply
Pu’er City Pu’er City Warehousing logistics 100.00% Establishment
Chain
Pu’er Tea Trading
Pu’er City Pu’er City Service 55.00% Establishment
Center
(2) Important non-wholly-owned subsidiary
In RMB
Share-holding ratio of Gains/losses attributable Dividend distribute for Balance of minority’s
Subsidiary
minority (%) to minority in the Period minority in the Period equity at period-end
Shenbao Yuxing 48.25% -1,540,977.28 14,996,052.95
Shenshenbao Tea Culture 35.00% -2,693,331.47 -1,147,878.08
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
Ending balance Opening balance
Subsidia Non-curr Non-curr Non-curr Non-curr
Current Total Current Total Current Total Current Total
ry ent ent ent ent
assets assets liability liability assets assets liability liability
assets liability assets liability
Shenbao 38,157,0 18,440,3 56,597,3 25,517,4 25,517,4 40,725,6 19,085,2 59,810,9 25,537,2 25,537,2
Yuxing 06.57 04.16 10.73 08.25 08.25 48.33 86.42 34.75 96.98 96.98
Shenshe
7,873,97 5,545,92 13,419,9 16,699,5 16,699,5 8,950,35 6,874,33 15,824,6 11,409,1 11,409,1
nbao Tea
5.67 8.55 04.22 55.87 55.87 2.67 2.58 85.25 04.13 04.13
Culture
In RMB
Current Period Last Period
Cash flow Cash flow
Total Total
Subsidiary Operation from Operation from
Net profit comprehensi Net profit comprehensi
Income operation Income operation
ve income ve income
activity activity
Shenbao 3,047,192.43 -3,193,735.29 -3,193,735.29 -866,646.70 3,127,627.09 -3,576,331.77 -3,576,331.77 -3,170,714.22
113
深圳深宝实业股份有限公司 2016 年半年度报告全文
Yuxing
Shenshenbao
3,256,699.36 -7,695,232.77 -7,695,232.77 -892,934.59 156,314.52 -2,712,464.39 -2,712,464.39 -4,397,196.44
Tea Culture
2. Equity in joint venture and cooperative enterprise
(1) Financial summary for un-important joint venture or cooperative enterprise
In RMB
Ending balance /Current Period Opening balance /Last Period
Joint venture: -- --
Total numbers measured by share-holding
-- --
ratio
Affiliated business: -- --
Total book value of the investment 6,187,132.90 7,034,953.91
Total numbers measured by share-holding
-- --
ratio
-- Net profit -2,144,995.21 46,503.98
--Other comprehensive income -2,144,995.21 46,503.98
(2) Excess losses from joint venture or cooperative enterprise
In RMB
Un-confirmed losses not
Cumulative un-confirmed recognized in the Period (or Cumulative un-confirmed
Name
losses net profit enjoyed in the losses at period-end
Period)
Changzhou Shenbao Chacang
7,033,470.42 409,368.28 7,442,838.70
E-commence Co., Ltd
X. Risks relating to financial instruments
Our business operation makes the Company exposed to various financial risks: credit risk, liquidity risk and
market risk (mainly refers to exchange risk and interest risk). The general risk management policy of the
Company is to minimize potential negative effects on our financial performance in view of the unforeseeable
financial market.
1. Credit risk
The credit risk mainly arises from monetary capital, notes receivables, trade receivables and other receivables.
The management has established adequate credit policies and continues to monitor exposure of these credit risks.
114
深圳深宝实业股份有限公司 2016 年半年度报告全文
Monetary capital held by the Company is mainly deposited with financial institutions such as commercial banks.
Management believes that these banks are relatively highly rated and possess sound assets and there is low credit
risk. The Company adopts amount-limitation policy to prevent credit risk from any financial institution.
For trade receivables, other receivables and note receivables, the Company establishes relevant policies to control
exposure of credit risk. The Company appraises customers’ credit quality based on their financial position,
possibility to obtain guarantee from third parties, credit history and other factors such as prevailing market
conditions, and set corresponding credit terms. Customers’ credit history would be regularly monitored by the
Company. For those customers who have bad credit history, the Company will call collection in written form,
shorten credit term or cancel credit term to ensure its overall credit risk is under control.
Up to 30 June 2016, the top five client’s account receivable takes 30.85% in total account receivable of the
Company (2015: 25.89%)
The maximum credit risk exposure equals to the carrying value of each financial asset in balance sheet (including
derivative financial instrument). The Company has not provided any guarantee which would otherwise make the
Company exposed to credit risk.
2. Liquidity risk
Liquidity risk represents the possibility that the Company is not able to acquire sufficient fund to satisfy business
requirement, settle debt when it is due and perform other obligation of payment.
The finance department continues to monitor capital requirement for short and long term, to ensure adequate cash
reserve. In addition, it continues to monitor whether borrowing agreement is complied with, and seeks for
commitment from major financial institutions for provision of sufficient back-up fund, so as to satisfy capital
requirement in a short and long term.
3. Market risks
1. Foreign exchange risk
The major operation of the Company is located in the PRC, and its major operation is settled in Renminbi.
However, there is also exchange risk in respect of the recognized foreign currency assets and liabilities and future
foreign currency transactions which are mainly denominated in US dollar. Our finance department is responsible
for monitoring scale of foreign currency assets and liabilities and foreign currency transactions, to minimize its
exposure to exchange risks. In 2015 and first half of 2016, the Company did not sign any forward exchange
contract or monetary exchange contract.
2. Interest risk
Our interest risk mainly arises from bank borrowings. Financial liabilities at floating rate expose the Company to
cash flow interest risk, and financial liabilities at fixed rate expose the Company to fair value interest risk. The
Company determines the respective proportion of contracts at fixed rate and floating rate based on prevailing
115
深圳深宝实业股份有限公司 2016 年半年度报告全文
market conditions.
Finacnial department of the Company continue to monitor the Company’s level of interest rates. The soaring
interest rate will increase the interest-bearing debt costs and interest costs for those outstanding interest-bearing
debt with interest measured by floating rate, and furthmore, it will bring a major adverse impact on financial
performance of the Company. The management will carry out adjustment according to the new market condition.
3. Price risk
The Company purchases and sells products at market prices; therefore it is affected by fluctuation of these prices.
XI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
In RMB
Ending fair value
Items
First-order Second-order Third-order Total
I. Sustaining measured by
-- -- -- --
fair value
( 2)Equity instrument
2,737,496.71 2,737,496.71
investment
II. Non-persistent measure -- -- -- --
XII. Related party and related transactions
1. Parent company
Registrati Registered Ratio of Ratio of voting
Parent company Business nature shareholding on the right on the
on place capital Company Company
Development, established,
operated and management the
Shenzhen Agricultural
Shenzhen agricultural wholesale market, 169,696.41 19.09% 19.09%
Products Co., Ltd
operates marketing leasing
business etc.
Parent company of the enterprise:
Ultimate controller of the Company is Shenzhen Municipal People’s Government State-owned Assets Supervision & Administration
Commission
2. Subsidiary of the Company
Found more in 1. equity in subsidiaries carried in Note IX
3. Joint venture and cooperative enterprise of the Company
Found more in 2. equity in joint venture and cooperative enterprise carried in Note IX
4. Other related parties
Other related parties Relationship with the Company
116
深圳深宝实业股份有限公司 2016 年半年度报告全文
Shenzhen Investment Management Company Former first majority shareholder of the Company
Shenzhen Investment Holding Co., Ltd Second largest shareholder of the Company
Fujian Wuyishan Yuxing Tea Industry Co., Ltd Minority shareholder of the holding subsidiary
Shenzhen Nongdimei Investment Management Co., Ltd. Minority shareholder of the holding subsidiary
Pu’er Tianxia Pu’er Chaguo Co., Ltd. Minority shareholder of the holding subsidiary
Shenzhen Shichumingmen Restaurant Management Co., Ltd. Cooperative enterprise
Changzhou Shenbao Chacang E-commence Co., Ltd Cooperative enterprise
Shenzhen Shenbao Manan Biotechnology Co., Ltd Cooperative enterprise
Guangzhou Shenbao Mendao Tea Co., Ltd. Cooperative enterprise
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods sold/labor service providing
In RMB
Related party Content Current Period Last Period
Shenzhen Investment Holding Co., Ltd Sales of tea 13,233.97
Shenzhen Shichumingmen Restaurant Revenue of activity
2,840.10
Management Co., Ltd. service
Shenzhen Agricultural Products Co., Ltd Sales of tea 175,626.91 143,130.77
(2) Related lease
As a lessor:
In RMB
lessee Assets type Rent recognized in the period Rent recognized in last period
Shenzhen Shichumingmen Restaurant
premises 423,150.00
Management Co., Ltd.
As a lessee:
In RMB
Lessor Assets type Rent recognized in the period Rent recognized in last period
Fujian Wuyishan Yuxing Tea Industry
Production plant 250,000.00
Co., Ltd
(3) Related guarantee
As a guarantor:
In RMB
117
深圳深宝实业股份有限公司 2016 年半年度报告全文
Secured party Guarantee amount starts Ends Completed or not (Y/N)
Shenzhen Shenbao Huacheng
30,000,000.00 2015-07-27 2016-07-26 N
Science and Technology Co.,Ltd
As a Secured party:
In RMB
Guarantor Guarantee amount starts Ends Completed or not (Y/N)
Shenzhen Shenbao Huacheng
50,000,000.00 2015-08-12 2016-08-11 N
Science and Technology Co.,Ltd
6. Balance of intercourse funds between related parties
(1) Account receivable
In RMB
Ending balance Opening balance
Item Related party Bad debt Bad debt
Book balance Book balance
provision provision
Account Shenzhen Investment Holding Co.,
3,552.75
receivable Ltd
Other account Shenzhen Investment Holding Co.,
317,433.36
receivable Ltd
Other account Shenzhen Shichumingmen Restaurant
1,272,635.63
receivable Management Co., Ltd.
Other account Shenzhen Shenbao Manan
500,000.00 1,304,148.50
receivable Biotechnology Co., Ltd
Other account Fujian Wuyishan Yuxing Tea Industry
500,000.00 500,000.00
receivable Co., Ltd
Other account Changzhou Shenbao Chacang
19,308,717.85 8,402,583.56 19,103,954.35 8,197,820.07
receivable E-commence Co., Ltd
(2) Account payable
In RMB
Item Related party Closing balance Opening balance
Shenzhen Investment
Dividend payable 2,690,970.14 2,690,970.14
Management Company
Investment Management
Other account payable 3,510,297.20 3,510,297.20
Company
Shenzhen Nongdimei
Other account payable Investment Management Co., 5,306,882.29 3,500,000.00
Ltd.
118
深圳深宝实业股份有限公司 2016 年半年度报告全文
Pu’er Tianxia Pu’er Chaguo
Other account payable 300,000.00
Co., Ltd.
Fujian Wuyishan Yuxing Tea
Other account payable 500,000.00 500,000.00
Industry Co., Ltd
XIII. Share-based payment
1. General condition
□ Applicable √ Not applicable
2. Share-based payment settled by equity
□ Applicable √ Not applicable
3. Share-based payment settled by cash
□ Applicable √ Not applicable
XIV. Commitment or contingency
1.Other
The Company has no commitment or contingency that needs to disclose up to 30 June 2016
XV. Event after balance sheet date
1. Other explanation on event after balance sheet date
The Company has no events after balance sheet date needs to disclose up to 30 June 2016
XVI. Other important events
1. Other
The Company has no other important events need to disclosed up to 30 June 2016
XVII. Annotation to main items in financial statements of parent company
1. Account receivables
(1) Disclosed by type
In RMB
Ending balance Opening balance
Type Book balance Bad debt provision Book balance Bad debt provision
Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Account receivable
withdrawal bad debt
27,755,5 27,755,19 32,750, 32,750,583.
provision by group of 99.90% 386.50 0.00% 99.91% 386.50 0.00%
82.51 6.01 969.68 18
credit risk
characteristics
119
深圳深宝实业股份有限公司 2016 年半年度报告全文
Account receivable
with single minor
amount but 28,453.0 28,453.0 28,453.
0.10% 100.00% 0.09% 28,453.08 100.00%
withdrawal bad debt 8 8 08
provision for single
item
27,784,0 28,839.5 27,755,19 32,779, 32,750,583.
Total 100.00% 0.10% 100.00% 28,839.58 0.09%
35.59 8 6.01 422.76 18
Account receivable with single significant amount and withdrawal bad debt provision separately at period end:
□ Applicable √ Not applicable
Account receivable provided for bad debt reserve under aging analysis method in the groups:
√ Applicable □ Not applicable
In RMB
Ending balance
Age
Account receivable Bad debt provision Accrual ratio (%)
Subitem within 1 year
Within 1 year 27,751,252.51
1－2 yeas 930.00 46.50 5.00%
2-3 years 3,400.00 340.00 10.00%
Explanations on combination determine:
In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable:
(2) Top 5 account receivable collected by arrears party
Top 5 account receivable collected by arrears party
Name Ending balance Proportion in total receivables at
Bad debt provision accrual
closing balance (%)
Customer 1 9,823,366.00 35.36 ---
Customer 2 4,819,480.00 17.35 ---
Customer 3 4,696,360.00 16.90 ---
Customer 4 2,601,415.00 9.36 ---
Customer 5 846,000.00 3.04 ---
Total 22,786,621.00 82.01 ---
120
深圳深宝实业股份有限公司 2016 年半年度报告全文
2. Other receivables
(1) Disclosed by type
In RMB
Ending balance Opening balance
Types Book balance Bad debt provision Book balance Bad debt provision
Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Other account
receivable with
single major amount 18,678,7 8,339,58 10,339,13 18,473, 8,134,820 10,339,134.
8.07% 44.65% 7.81% 44.03%
and withdrawal bad 17.85 3.56 4.29 954.35 .06 29
debt provision for
single item
Other account
receivable
withdrawal bad debt 207,213, 40,782.6 207,172,2 212,514 212,468,27
89.56% 0.02% 89.87% 46,072.65 0.02%
provision by group of 056.23 5 73.58 ,350.70 8.05
credit risk
characteristics
Other account
receivable with
single minor amount 5,472,39 5,472,39 5,472,3 5,472,398
2.37% 100.00% 2.32% 100.00%
but withdrawal bad 8.91 8.91 98.91 .91
debt provision for
single item
231,364, 13,852,7 217,511,4 236,460 13,653,29 222,807,41
Total 100.00% 5.99% 100.00% 5.77%
172.99 65.12 07.87 ,703.96 1.62 2.34
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period:
√ Applicable □ Not applicable
In RMB
Ending balance
Other receivables (unit)
Other receivables Provision for bad debt Accrue ratio Accrue reason
Changzhou Shenbao Accrued recoverable
Chacang E-commence 18,678,717.85 8,339,583.56 44.65% amount is under the book
Co., Ltd balance
Total 18,678,717.85 8,339,583.56 -- --
Other receivable with bad debt provision withdrawal by age analysis in group:
√ Applicable □ Not applicable
In RMB
121
深圳深宝实业股份有限公司 2016 年半年度报告全文
Ending balance
Age
Other receivable Bad debt provision Accrual ratio (%)
Sub item within 1 year
Within 1 year 206,813,340.13
1－2 yeas 191,747.69 9,587.39 5.00%
Over 3 years 207,968.41 31,195.26 15.00%
3-4 years 207,968.41 31,195.26 15.00%
Total 207,213,056.23 40,782.65 0.01%
Explanations on combination determine:
In combination, withdrawal proportion of bad debt provision based on balance proportion for other account
receivable
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable
□ Applicable √ Not applicable
(2) Bad debt provision accrual, collected or reversed
Accrual bad debt provision 204,763.50 Yuan; collected or reversed 5,290.00 Yuan.
(3) Other receivables by nature
In RMB
Nature Ending book balance Opening book balance
Deposit and margin 310,986.43 280,986.43
Intercourse accounts and other 231,053,186.56 236,179,717.53
Total 231,364,172.99 236,460,703.96
(4) Top five clients of other receivable at period-end
In RMB
Ratio in total ending
Ending balance of
Company Nature Ending balance Book age balance of other
bad bet provision
receivables
Huizhou Shenbao Science & Intercourse Within 1
153,314,184.10 66.27%
Technology funds year
Intercourse Within 1
Shenbao Sanjing 26,209,886.67 11.33%
funds year
Within 1
Changzhou Shenbao Chacang Intercourse year and
18,678,717.85 8.07% 8,339,583.56
E-commence Co., Ltd funds over one
year
Intercourse Within 1
Shenbao Yuxing 282,462.23 0.12%
funds year
122
深圳深宝实业股份有限公司 2016 年半年度报告全文
Intercourse Within 1
Shenbao Industrial & Trading 230,589.19 0.10%
funds year
Total -- 198,715,840.04 -- 85.89% 8,339,583.56
3. Long-term equity investment
In RMB
Ending balance Opening balance
Items
Book balance Impairment Book value Book balance Impairment Book value
Investment for
894,813,300.84 894,813,300.84 889,110,475.04 889,110,475.04
subsidiary
Investment for
associates and 7,361,978.08 2,927,628.53 4,434,349.55 6,629,605.34 2,927,628.53 3,701,976.81
joint venture
Total 902,175,278.92 2,927,628.53 899,247,650.39 895,740,080.38 2,927,628.53 892,812,451.85
(1) Investment for subsidiary
In RMB
Impairment Closing balance
Current
Investee unit Opening balance Current increased Ending balance reserve accrual in of impairment
decreased
the Period reserve
Shenbao
2,550,000.00 2,550,000.00
Properties
Shenbao
Industrial & 5,500,000.00 5,500,000.00
Trading
Shenbao Sanjing 80,520,842.36 80,520,842.36
Shenbao
168,551,781.80 168,551,781.80
Huacheng
Huizhou Shenbao
Science & 60,000,000.00 60,000,000.00
Technology
Wuyuan Ju Fang
280,404,134.35 280,404,134.35
Yong
Hangzhou Ju Fang
176,906,952.42 176,906,952.42
Yong
Shenbao
54,676,764.11 54,676,764.11
Technology Center
Shenshenbao
50,000,000.00 50,000,000.00
Investment
Pu’er Supply
10,000,000.00 2,500,000.00 12,500,000.00
Chain
123
深圳深宝实业股份有限公司 2016 年半年度报告全文
Pu’er Tea Trading
3,202,825.80 3,202,825.80
Center
Total 889,110,475.04 5,702,825.80 894,813,300.84
(2) Investment for associates and joint venture
In RMB
Increase & decrease in this period Ending
Investmen Other Cash balance
Additi Capita Impai
Opening t gains comprehe Other dividend Ending of
Company onal l rment
balance recognized nsive equity or profit Other balance impairme
invest reducti accru
under income change announced nt
ment on al
equity adjustment to issued provision
I. Joint venture
II. Associated enterprise
Yunnan Pu’er Tea
3,701,976. -499,151.0 -3,202,82
Trading Center
81 1 5.80
Co., Ltd.
Shenzhen
Shenbao
(Liaoyuan) 57,628.53 57,628.53 57,628.53
Industrial
Company
Shenzhen
2,870,000. 2,870,000 2,870,000
Shenbao (Xinmin)
00 .00 .00
Food Co., Ltd
Changzhou
Shenbao Chacang
E-commence Co.,
Ltd
Guangzhou
4,500, 4,434,349
Shenbao Mendao -65,650.45
000.00 .55
Tea Co., Ltd.
6,629,605. 4,500, -564,801.4 -3,202,82 7,361,978 2,927,628
Subtotal
34 000.00 6 5.80 .08 .53
6,629,605. 4,500, -564,801.4 -3,202,82 7,361,978 2,927,628
Total
34 000.00 6 5.80 .08 .53
4. Operating income and operating cost
In RMB
Current Period Last Period
Items
Income Cost Income Cost
124
深圳深宝实业股份有限公司 2016 年半年度报告全文
main business income 62,551,615.75 59,896,259.51 84,220,117.14 43,785,055.08
Other business income 2,581,509.43 1,260,009.00
Total 65,133,125.18 59,896,259.51 85,480,126.14 43,785,055.08
5. Investment earnings
In RMB
Item Current Period Last Period
Investment income of long-term equity
-564,801.46
based on equity
Earnings from financial products 665,169.36 606,734.01
Total 100,367.90 606,734.01
XVIII. Supplementary information
1. Current non-recurring gains/losses
√ Applicable □ Not applicable
In RMB
Item Amount Statement
Gains/losses from the disposal of non-current asset -6,410.81
Governmental subsidy calculated into current gains and losses(while closely related
with the normal business of the Company, excluding the fixed-amount or 1,876,962.20
fixed-proportion governmental subsidy according to the unified national standard)
Profit and loss of assets delegation on others’ investment or management 665,169.36
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
-848,856.19
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 the aforementioned items 3,976,775.16
Less: Impact on income tax 304,198.28
Affect on minority equity(after taxation) 125,164.70
Total 5,234,276.74 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure
for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as
recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on
Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss,
explain reasons
□ Applicable √ Not applicable
125
深圳深宝实业股份有限公司 2016 年半年度报告全文
2. Return on equity and earnings per share
Earnings per share
Profit during period Weighted average ROE Basic earnings per Diluted earnings per
share(RMB/Share) share(RMB/Share)
Net profit attributable to
shareholders of ordinary shares of -1.63% -0.0334 -0.0334
the Company
Net profit attributable to
shareholders of ordinary shares of
-2.19% -0.0450 -0.0450
the Company after non-recurring
gains/losses deducted
3. Difference of accounting data under CAS and IAS
(1) Difference of net profit and net assets disclosed in financial report based on IAS and CAS
√ Applicable □ Not applicable
In RMB
Net profit Net assets
Current Period Last Period Ending balance Opening balance
Chinese GAAP -15,099,180.63 5,317,533.95 920,523,179.31 935,622,280.75
Items and amount adjusted by IAS:
Adjustment for other
payable fund of stock 1,067,000.00 1,067,000.00
market regulation
IAS -15,099,180.63 5,317,533.95 921,590,179.31 936,689,280.75
(2) Difference of net profit and net assets disclosed in financial report based on foreign accounting rules and
Chinese GAAP
□Applicable √Not applicable
126
深圳深宝实业股份有限公司 2016 年半年度报告全文
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;
3. Original copies of 2016 Semi-Annual Report with signature of the Chairman.
Shenzhen Shenbao Industrial Co., Ltd.
Chairman of Board: Zheng Yuxi
19 August 2016
127
