Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Shenzhen Tellus Holding Co., Ltd.
Semi-annual Report 2023
August 2023
1
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Section I Important Notice, Contents and Interpretations
The Board of Directors, the Board of Supervisors, and directors, supervisors
and senior executives of the Company guarantee that the present semi-annual
report is true, accurate, and complete without false records, misleading
statements, or major omissions, and undertake the joint and several legal
liabilities arising therefrom.
Fu Chunlong, head of the Company, Huang Tianyang, the person in charge
of accounting, and Yu Taiping, the person in charge of the accounting firm
(accountant in charge) declare to guarantee the truthfulness, accuracy, and
completeness of the financial report in this semi-annual report.
All directors of the Company have attended the board meeting to review the
semi-annual report.
The Company has described the potential risks in detail in this report.
Investors are hereby kindly requested to pay attention to and read "X. Risks
Faced by the Company and Countermeasures" of "Section III Management
Discussion and Analysis" within this report.
The Company has no plans to distribute cash dividends, issue bonus shares
and transfer from capital surplus to share capital.
2
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Contents
Section I Important Notice, Contents and Interpretations .................................................................................. 2
Section II Company Profile and Major Financial Indicators .............................................................................. 6
Section III Management Discussion and Analysis ................................................................................................ 9
Section IV Corporate Governance ....................................................................................................................... 22
Section V Environmental and Social Responsibility ........................................................................................... 24
Section VI Important Matters .............................................................................................................................. 25
Section VII Changes in Shares and Shareholders............................................................................................... 36
Section VIII Preferred Shares .............................................................................................................................. 42
Section IX Relevant Information of Corporate Bonds ....................................................................................... 43
Section X Financial Report ................................................................................................................................... 44
3
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
List of Documents for Future Reference
I. Accounting statements signed and sealed by the legal representative, the person in charge of accounting, and the person in charge of
the accounting firm.
II. Originals of all company documents and announcements that have been publicly disclosed during the reporting period.
III. The above documents for future reference shall be kept at the Secretariat Office of the Board of Directors of the Company.
4
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Interpretations
Term refers to Interpretation
CSRC refers to China Securities Regulatory Commission
SZSE refers to Shenzhen Stock Exchange
China Securities Depository and
CSDC Shenzhen Branch refers to Clearing Corporation Limited Shenzhen
Branch
Company, the Company, and Tellus
refers to Shenzhen Tellus Holding Co., Ltd.
Holding
Reporting Period, This Reporting Period refers to FH 2023
State-owned Assets Supervision and
Shenzhen SASAC refers to Management Commission of Shenzhen
Municipal People's Government
SDG, SDG Group and controlling Shenzhen Special Economic Zone
refers to
shareholder Development Group Co., Ltd.
SIHC refers to Shenzhen Investment Holdings Co., Ltd.
Shenzhen Jewelry Industry Service Co.,
Shenzhen Jewelry Company refers to
Ltd.
Guorun and Guorun Gold refers to Guorun Gold Shenzhen Co., Ltd.
Treasury Supply Chain Company and Shenzhen Tellus Treasury Supply Chain
refers to
Tellus Treasury Tech Co., Ltd.
Shanghai Fanyue and Fanyue refers to Shanghai Fanyue Diamond Co., Ltd.
Zhongtian Company refers to Shenzhen Zhongtian Industry Co., Ltd.
Automobile Industry and Trade Shenzhen Automobile Industry and
refers to
Company Trade Co., Ltd.
Shenzhen SDG Huari Automobile
SDG Huari refers to
Enterprise Co., Ltd.
Shenzhen Huari Toyota Sales & Service
Huari Toyota refers to
Co., Ltd.
Shenzhen Renfu Tellus Automobiles
Renfu Tellus refers to
Service Co., Ltd.
Tellus Jewelry Building, Jewelry
refers to Tellus Shui Bei Jewelry Building
Building
Tellus Jinzuan Building, Jinzuan
refers to Tellus Jinzuan Trading Building
Building
Shenzhen International Jewelry and Jade
Comprehensive trade platform refers to
Comprehensive Trade Platform
5
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Section II Company Profile and Major Financial Indicators
I. Company Profile
Stock abbreviation Tellus A and Tellus B Stock code 000025 and 200025
Stock abbreviation before
N/A
change (if any)
Stock exchange on which the
Shenzhen Stock Exchange
shares are listed
Chinese name of the
Shenzhen Tellus Holding Co., Ltd.
Company
Chinese abbreviation (if any) 特力 A
English name of the Company
ShenZhen Tellus Holding Co.,Ltd.
(if any)
English abbreviation (if any) N/A
Legal representative of the
Fu Chunlong
Company
II. Contact Person and Contact Information
Secretary of the Board of Directors Securities representative
Name Qi Peng Liu Menglei
3F, Tellus Building, 2nd Shuibei Road, 3F, Tellus Building, 2nd Shuibei Road,
Address
Luohu District, Shenzhen Luohu District, Shenzhen
Tel. (0755) 83989390 (0755) 88394183
Fax (0755) 83989386 (0755) 83989386
E-mail ir@tellus.cn liuml@tellus.cn
III. Other Information
1. Contact information
Whether the Company's registered address, office address and postal code, company website, e-mail, etc. have changed during the
reporting period
□ Applicable Not applicable
There was no change in the Company's registered address, office address and postal code, website, e-mail, etc. during the reporting
period. Please refer to the 2022 Annual Report for details.
2. Information disclosure and keeping location
Whether the information disclosure and keeping location have changed during the reporting period
Applicable □ Not applicable
Website of the stock exchange for the Company to disclose its
Shenzhen Stock Exchange (http://www.szse.cn)
semi-annual report
Name and website of the newspapers for the Company to Securities Times and CNINFO (http://www.cninfo.com.cn)
6
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
disclose its semi-annual report
Location for keeping semi-annual report of the Company Secretary of the Board of Directors
3. Other relevant information
Whether other relevant information has changed during the reporting period
□ Applicable Not applicable
IV. Major Accounting Data and Financial Indicators
Whether the Company needs to retrospectively adjust or restate the accounting data for the previous years
□Yes No
Increase/decrease in the
Same period of the previous reporting period over the
Reporting period
year same period of the previous
year
Operating revenue (RMB) 704,836,410.94 250,015,152.23 181.92%
Net profit attributable to
shareholders of the listed 44,139,962.93 43,480,236.19 1.52%
company (RMB)
Net profit attributable to
shareholders of the listed
37,650,680.93 31,023,156.36 21.36%
company after deducting non-
recurring profit or loss (RMB)
Net cash flows from operating
-10,241,941.90 -11,318,295.41 9.51%
activities (RMB)
Basic earnings per share
0.1024 0.1009 1.49%
(RMB/share)
Diluted earnings per share
0.1024 0.1009 1.49%
(RMB/share)
Weighted average return on net
2.89% 3.00% -0.11%
assets
Increase/decrease at the end
End of the reporting of the reporting period as
End of the previous year
period compared with the end of the
previous year
Total assets (RMB) 2,512,971,777.36 2,232,028,554.57 12.59%
Net assets attributable to
shareholders of the listed 1,537,709,193.28 1,505,638,863.31 2.13%
company (RMB)
V. Discrepancy of Accounting Data under the Domestic and Foreign Accounting Standards
1. Discrepancy of net profit and net assets in the financial report disclosed simultaneously according to
international accounting standards and Chinese accounting standards
□ Applicable Not applicable
During the reporting period of the Company, there is no discrepancy of net profit and net assets in the financial report disclosed
simultaneously according to international accounting standards and Chinese accounting standards.
7
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
2. Discrepancy of net profit and net assets in the financial report disclosed simultaneously according to
foreign accounting standards and Chinese accounting standards
□ Applicable Not applicable
During the reporting period of the Company, there is no discrepancy of net profit and net assets in the financial report disclosed
simultaneously according to foreign accounting standards and Chinese accounting standards.
VI. Non-recurring Profit or Loss Items and Amounts
Applicable □ Not applicable
Unit: RMB
Item Amount Note
Government subsidies included in the current
profits and losses (except those closely related to
the Company's normal operations, conforming to
4,475,465.94 Government subsidies
the state policies and regulations and enjoyed
persistently in line with certain standard ratings
or rations)
Except for the effective hedging activities related
to the Company’s ordinary activities, profit or
loss arising from changes in fair value from
holding trading financial assets and trading
3,220,569.71 Wealth management income
financial liabilities, and investment income from
disposal of trading financial assets and trading
financial liabilities and available-for-sale
financial assets
Mainly due to the early surrender of
Other non-operating revenue and expenses other
297,499.01 lease and payment of liquidated damages
than the above
for house leasing
Less: effect on income tax 1,998,431.62
Effect on minority equity (after-tax) -494,178.96
Total 6,489,282.00
Specific conditions of other profit or loss conforming to the definition of non-recurring profit or loss:
□ Applicable Not applicable
The Company has no other profit or loss conforming to the definition of non-recurring profit or loss.
Explanation on defining the non-recurring profit or loss set out in the Explanatory Announcement No. 1 on Information Disclosure
for Companies Offering Securities to the Public - Non-Recurring Profit or Loss as recurring profit or loss
□ Applicable Not applicable
The Company does not define any non-recurring profit or loss as defined or listed in the Explanatory Announcement No. 1 on
Information Disclosure for Companies Offering Securities to the Public - Non-Recurring Profit or Loss as a recurring profit or loss
during the reporting period.
8
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Section III Management Discussion and Analysis
I. Main Business of the Company during the Reporting Period
I. The main businesses of the Company during the reporting period are jewelry service business and commercial operation and
management.
1. Jewelry service business: Shenzhen Jewelry Company carried out its business steadily and orderly in H1 this year. It proactively
expanded into new categories and services while hosting a total of 9 exhibitions. The cumulative value of import and export goods
reached RMB 1,167 million, indicating a YoY growth of 240%. The domestic sales revenue amounted to RMB 75.89 million, reflecting
a YoY increase of 35.3%. Guorun Gold's main businesses include investment gold bar sales, gold recovery, gold purification/exchange
services, etc. During the reporting period, it continued to carry out business innovation, including using intelligent recycling machines
to expand its C-end recycling business, online and offline sales of investment products, and building the cooperative exhibition hall
and shared exhibition hall for gold ornaments to broaden the content of third-party services, and it is planned to gradually integrate
resources from all parties to jointly build a sound industrial ecology. The comprehensive trade platform with establishment led by the
Company is one of the five major trading platforms in Shenzhen. The Company held special promotion conferences held in Hangzhou
and Nanjing respectively for its nationwide promotion, effectively promoting cooperation with clients in the relevant regions and
further enhancing the Company's industry influence. During the reporting period, the Company actively carried out operation
management improvement planning for industrial digitalization and was committed to empowering its business development and
efficiency improvement through digital transformation for improving quality, reducing costs, and increasing efficiency.
2. Commercial operation and management: The agglomeration effect of Tellus-Gmond Industrial Park and its attraction to
merchants at other locations in the Shuibei area have gradually increased. Additionally, customer traffic in shopping malls in the
industrial park has significantly increased compared with last year. The Tellus Jewelry Building vigorously promotes the adjustment
and value enhancement of the commercial layout of the podium building and increases the external influence of the industrial park by
planning the lottery for island freezers in the underground area and bidding for shops. At present, Tellus Jinzuan Building is preparing
for its opening in an orderly manner. The effect of the investment promotion efforts exceeds expectations and well-known domestic
jewelry enterprises have been introduced to preliminarily build the podium building into a professional jewelry market.
(II) Description of main business models of the jewelry business
The Company shall abide by the disclosure requirements of the Guidelines of Shenzhen Stock Exchange for Self-Regulatory
Supervision of Listed Companies No. 3 - Industry Information Disclosure for "jewelry-related business".
1. Sales mode
At present, the Company adopts wholesale as the main sales mode of gold and jewelry, and also provides certain supporting
services including customs declaration, gold purification/exchange, and safe deposit box leasing. The sales revenue composition of the
jewelry business in H1 2023 is as follows:
Amount of operating revenue Operating cost amount
Sales mode Gross margin in H1 2023
(RMB 10,000) (RMB 10,000)
Wholesale 52,769.88 51,462.11 2.48%
Other services 967.17 590.02 39.00%
Total 53,737.05 52,052.13 3.14%
9
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
2. Production mode
At present, the Company mainly adopts the entrusted processing mode for gold and its products, while diamonds and colored
gemstones do not involve processing. The production mode composition in H1 2023 is as follows:
Production mode Amount (RMB 10,000) Proportion
Consigned processing 53,212.12 100.00%
Total 53,212.12 100.00%
3. Purchase mode
Gold and its products: by purchasing gold raw materials from Shanghai Gold Exchange or qualified units, or by renting gold from
banks;
Diamonds: by purchasing finished diamonds from overseas diamond suppliers and importing them through the Shanghai Diamond
Exchange;
Other jewelry jade: by purchasing products from overseas jewelry jade suppliers, and going through the import formalities of tax
payment through Shenzhen Jewelry Company.
The procurement model in H1 2023 is as follows:
Procurement Procurement quantity Procurement amount
Raw materials
mode (kg, ct) (RMB 10,000)
Spot trading Gold 1,861.40KG 52,676.95
Spot trading Diamonds 469.89CT 934.56
Gold rental
Gold 66.00KG 2,634.75
business
Total 56,246.26
4. Operation of physical stores during the reporting period
As of the end of the reporting period, the Company has no physical stores.
5. Online sales during the reporting period
During the reporting period, the Company has not carried out online sales.
6. Inventory of jewelry business during the reporting period
As of June 30, 2023, the inventory balance of the Company's jewelry business was RMB 41,513,394.65, of which the amount
measured at fair value was RMB 41,506,358.65, corresponding to hedged items with commodity futures contracts and T+D contracts
as hedging instruments and the value of gold leased from China Everbright Bank.
II. Analysis of Core Competitiveness
1. Deepening of industrial distribution, continuously enhancing third-party comprehensive jewelry service capabilities
Relying on the physical platform resources in the Shuibei area known for its jewelry industry cluster, the Company has given full
play to the advantages of a state-owned listed company, solidly promoted the construction of the third-party jewelry ecosystem, kept
trying to innovate business models, deeply entered the jewelry industry chain, and continuously improved the third-party
comprehensive jewelry service capability. In 2019, Treasury Supply Chain Company was established to carry out the gold and jewelry
supply chain business. In 2020, Shenzhen Jewelry Company was established and focused on building five centers: bonded commodity
exhibition center, bonded processing and manufacturing center, bonded R&D and design center, bonded commodity appraisal center,
and bonded financial service center, creating a comprehensive bonded service platform integrating warehousing, logistics, insurance,
import and export agency, settlement, and other supporting services to provide customers with convenient and efficient cross-border
10
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
bonded exhibitions and comprehensive trading services. The Shenzhen Jewelry Project was established and operated with the approval
of the government and customs, which has strong credibility. On December 23, 2022, the platform was approved to be upgraded and
listed as "Shenzhen International Jewelry and Jade Comprehensive Trade Platform". In 2021, Shanghai Fanyue was set up, achieving
a closed loop from bonded exhibitions to general trade import of diamonds. In 2022, Guorun Gold was set up to build a comprehensive
service platform for gold circulation, further consolidating the overall layout of the jewelry industry and gradually establishing the
Company's competitive advantages.
2. High-quality development of the commercial operation sector, providing stable business revenue and financial support
The Company is the largest owner of Tellus-Gmond Gold Jewelry Industrial Park in the Shuibei area. The Tellus Jewelry Building
was fully put into use in 2019, with a high occupancy rate. The construction of the Tellus Jinzuan Trading Building is promoted
according to the working plan and is planned to be officially opened in 2023. At the same time, the Company plans to implement
innovative industrial projects in the Buxin area in line with the overall strategic layout of the city, district, and the Company by means
of renovation. In addition, the Company holds a large number of property resources in Luohu, Futian and other areas of Shenzhen. On
the basis of maintaining the stability of the original leasing business, the Company would actively promote the improvement of property
quality, and transform its old properties from the traditional way of simple leasing to the direction of commercial property operation,
so as to fully enhance and tap the added value of the property brand, bring stable business revenue and cash flow to the Company and
provide a solid foundation for the long-term development of the Company.
3. Continuous optimization of management, providing effective guarantee for the development of the Company
In recent years, with the transformation and upgrading of the Company's business sectors, internal management has also been
greatly improved, becoming the driving force and guarantee for the Company's development. From the perspective of management
promotion and operation, the Company has established a "4S" management mainline system based on the management orientation and
the actual situation of the Company. From strategic planning and business plan to management statements and assessment and
evaluation, scientific and closed-loop management concepts have been established and various management actions have been linked,
which serve the Company's strategic implementation in a unified way. The Company leverages various work with performance
management as a "lever", and continuously evaluates and optimizes the organizational structure to improve operational efficiency.
Adhering to the cultural construction purpose of refining the corporate culture from business, the Company collects the conventions of
strivers from the grassroots to build a consensus among all employees.
III. Analysis of Main Business
Overview
See "I. Main Business of the Company during the Reporting Period" for relevant contents.
YoY changes in main financial data
Unit: RMB
Same period of the Year-on-year
Reporting period Reason of change
previous year increase/decrease
Increase in gold
Operating revenue 704,836,410.94 250,015,152.23 181.92% business during the
reporting period
Increasing with the
Operating cost 608,604,638.40 188,344,177.55 223.13% introduction of the gold
business
Selling expenses 11,963,099.01 10,947,318.15 9.28%
Mainly due to the
Administrative increase in
28,817,829.38 19,832,917.21 45.30%
expenses management costs as a
result of the increase in
11
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
the gold business
compared with the
same period last year
during the reporting
period; Secondly, due
to the transformation of
the Tellus Jinzuan
Building into fixed
assets, with the
subsequent portion of
the expenditure being
charged to
administrative
expenses
Mainly due to the
increase in the interest
expenditures on gold
financing and the
Financial expenses 1,391,732.79 -2,701,556.39 151.52% expensed interest
expenditures after the
transformation of the
Tellus Jinzuan Building
into fixed assets
Income tax expenses 12,466,659.92 10,808,747.89 15.34%
Net cash flow from
-10,241,941.90 -11,318,295.41 9.51%
operating activities
Mainly due to the fact
Net cash flow from that the purchased bank
-272,561,687.30 -29,463,885.19 -825.07%
investing activities financial products have
not yet expired
Mainly due to new
Net cash flows from
152,917,899.92 18,016,923.17 748.75% loans from Guorun
financing activities
Gold
Mainly due to the year-
on-year decrease in the
Net increase in cash redemption of wealth
-129,885,729.28 -22,764,976.83 -470.55%
and cash equivalents management products
during the reporting
period
Significant changes in the Company's profit composition or source during the reporting period
□ Applicable Not applicable
There are no significant changes in the Company's profit composition or source during the reporting period.
Operating revenue composition
Unit: RMB
Reporting period Same period of the previous year
Year-on-year
Proportion in Proportion in increase/decrease
Amount Amount
operating revenue operating revenue
Total operating
704,836,410.94 100% 250,015,152.23 100% 181.92%
revenue
By segment
Wholesale and
536,696,671.25 76.14% 48,246,045.45 19.30% 1,012.42%
retail of jewelry
Property lease and 115,235,431.84 16.35% 89,143,718.75 35.66% 29.27%
12
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
service
Automobile sales 41,890,016.34 5.94% 90,748,050.16 36.30% -53.84%
Automobile
inspection and
11,014,291.51 1.56% 21,877,337.87 8.75% -49.65%
maintenance and
spare parts sales
分产品
Wholesale and
536,696,671.25 76.14% 48,246,045.45 19.30% 1,012.42%
retail of jewelry
Property lease and
115,235,431.84 16.35% 89,143,718.75 35.66% 29.27%
service
Automobile sales 41,890,016.34 5.94% 90,748,050.16 36.30% -53.84%
Automobile
inspection and
11,014,291.51 1.56% 21,877,337.87 8.75% -49.65%
maintenance and
spare parts sales
By region
Shenzhen 704,836,410.94 100.00% 250,015,152.23 100.00% 181.92%
Industries, products or regions with operating revenues or operating profits accounting for more than 10% of that of the Company
Applicable □ Not applicable
Unit: RMB
Increase/dec
Increase/decrea
Increase/decrea rease in
se in operating
se in operating gross margin
Gross revenue over
Operating revenue Operating cost cost over the over the
margin the same
same period of same period
period of
previous year of previous
previous year
year
By segment
Wholesale and
536,696,671.25 521,308,410.69 2.87% 1,012.42% 907.59% 10.11%
retail of jewelry
Property lease
115,235,431.84 38,610,978.43 66.49% 29.27% 30.08% -0.21%
and service
Automobile sales 41,890,016.34 38,325,556.22 8.51% -53.84% -56.94% 6.59%
Automobile
inspection and
11,014,291.51 10,359,693.06 5.94% -49.65% -42.17% -12.18%
maintenance and
spare parts sales
By product
Wholesale and
536,696,671.25 521,308,410.69 2.87% 1,012.42% 907.59% 10.11%
retail of jewelry
Property lease
115,235,431.84 38,610,978.43 66.49% 29.27% 30.08% -0.21%
and service
Automobile sales 41,890,016.34 38,325,556.22 8.51% -53.84% -56.94% 6.59%
Automobile
inspection and
11,014,291.51 10,359,693.06 5.94% -49.65% -42.17% -12.18%
maintenance and
spare parts sales
By region
Shenzhen 704,836,410.94 608,604,638.40 13.65% 181.92% 223.13% -11.01%
The main business data adjusted at the end of the reporting period will be taken for the recent one period if the Company's statistical
caliber of main business data is adjusted during the reporting period
13
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
□ Applicable Not applicable
IV. Analysis of Non-main Business
Applicable □ Not applicable
Unit: RMB
Proportion to total
Amount Reasons Sustainable or not
profits
Wealth management income and
investment income by the recognition
Investment income 8,923,017.80 15.50% Yes
of the equity method of shareholding
enterprises
Changes in fair value of unexpired
Profits or losses from
-5,265,810.16 -9.15% wealth management products and gold No
changes in fair value
leasing business
Provision for impairment loss on
Impairment of assets -3,700.50 -0.01% No
inventory
Gains from damage and scrapping of
Non-operating
417,182.13 0.72% non-current assets, and gains from No
revenue
unpayable payments
Non-operating Non-current assets retirement losses
119,683.12 0.21% No
expenses and liquidated damages expenses
V. Analysis of Assets and Liabilities
1. Major changes in asset composition
Unit: RMB
End of the reporting period As of the end of the previous year
Proportion
Proportion Explanation on
Proportion to increase/decrea
Amount to total Amount major changes
total assets se
assets
Cash at bank
272,420,241.88 10.84% 413,028,327.36 18.50% -7.66%
and on hand
Accounts
182,214,051.47 7.25% 41,752,179.56 1.87% 5.38%
receivable
Contract asset 0.00% 0.00 0.00% 0.00%
Inventories 41,770,590.06 1.66% 116,069,675.39 5.20% -3.54%
Investment
1,031,138,405.32 41.03% 516,360,139.45 23.13% 17.90%
properties
Long-term
equity 69,035,977.23 2.75% 81,024,365.94 3.63% -0.88%
investment
Fixed assets 84,382,315.00 3.36% 102,689,546.42 4.60% -1.24%
Projects under
6,860,682.96 0.27% 409,933,559.27 18.37% -18.10%
construction
Right-of-use
74,582,096.36 2.97% 4,181,242.86 0.19% 2.78%
assets
Short-term 170,000,000.00 6.76% 20,000,000.00 0.90% 5.86%
14
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
borrowings
Contract
37,702,112.40 1.50% 9,259,658.43 0.41% 1.09%
liabilities
Long-term
168,005,447.69 6.69% 144,820,511.42 6.49% 0.20%
borrowings
Lease liabilities 73,155,478.11 2.91% 2,926,184.93 0.13% 2.78%
2. Primary foreign assets
□ Applicable Not applicable
3. Assets and liabilities at fair value
Applicable □ Not applicable
Unit: RMB
Accumula Impair
Profits or losses ted change ment Purchase Sales
Beginning from changes in in fair accrued amount in amount in Other Ending
Item
amount fair value in the value in the the current the current changes amount
current period included current period period
in equity period
Financial
assets
1. Trading
financial
assets
176,133,56 320,000,00 200,000,00 293,350,36
(excluding -2,783,204.51 0.00 0.00
9.95 0.00 0.00 5.44
derivative
financial
assets)
2.
Derivative
0.00 1,760.00 0.00 1,760.00
financial
assets
4. Other
equity
10,176,617. 19,224,692. 29,401,309.
instrument
20 65 85
investment
s
Sub-total of
186,310,18 320,000,00 200,000,00 19,224,692. 322,753,43
financial -2,781,444.51 0.00 0.00
7.15 0.00 0.00 65 5.29
assets
Hedged 79,191,876. 370,719,25 449,058,49
-19,895.65 898,501.98
item 11 6.67 3.52
Total of the 265,502,06 690,719,25 649,058,49 19,224,692. 323,651,93
-2,801,340.16 0.00 0.00
above 3.26 6.67 3.52 65 7.27
Financial 19,062,044. 8,662,500.0 30,104,994.
-2,464,470.00
liabilities 91 0 27
Other changes
15
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Shenzhen SDG Huari Automobile Enterprise Co., Ltd. has entered the stage of compulsory liquidation. The Company has lost
control over it and has transferred its investment into financial assets.
Whether major changes occur to the measurement attributes of the main assets of the Company within the reporting period
□Yes No
4. Restriction on asset rights as at the end of the reporting period
Unit: RMB
Item Book value on June 30, 2023 Reasons for restriction
Cash at bank and on hand 10,899,141.80 See the description in this table
Intangible assets 44,960,423.01 Bank borrowing mortgage
Total 55,859,564.81 -
Descriptions: RMB 10,665,656.00 in the bank deposits is the supervision fund for the Company's Tellus-Gmond Gold Jewelry
Industrial Park Upgrading and Reconstruction Project Plot 03; RMB 233,485.80 is the futures option account deposit. In addition,
there are no other funds with limited use and potential recovery risk due to mortgage, pledge or freezing in the ending cash at bank
and on hand.
VI. Analysis of Investment
1. Overall conditions
Applicable □ Not applicable
Investment in the reporting period Amount of investment in the same period
Changes rate
(RMB) of the previous year (RMB)
81,253,722.19 50,926,786.82 59.55%
2. Significant equity investment acquired in the reporting period
□ Applicable Not applicable
3. Significant non-equity investment ongoing in the reporting period
□ Applicable Not applicable
4. Financial assets investment
(1) Security investment
□ Applicable Not applicable
The Company has no securities investment during the reporting period.
16
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
(2) Investment in derivatives
Applicable □ Not applicable
1) Investment in derivatives for hedging purposes during the reporting period
Applicable □ Not applicable
Unit: RMB 10,000
Proportion of
the ending
Cumulative Buying Selling amount
Type of Initial Gains or losses investment
change in fair amount during during the
investment in investment from changes Ending amount amount to the
value included the reporting reporting
derivatives amount in fair value ending net
in equity period period
assets of the
Company
Futures (via
account at
38.2 0.18 0 4,410.92 4,954.37 23.35 0.01%
Everbright
Futures)
Futures ( via
account at Ping 77.6 0 0 198.55 549.21 0 0.00%
An Futures)
Total 115.8 0.18 0 4,609.47 5,503.58 23.35 0.01%
Accounting
policies and
specific
principles of
accounting for
hedging
transactions
during the
reporting
No
period and
whether there
is any
significant
change in them
compared to
the previous
reporting
period
Actual gains
and loss during
Due to the rise in gold price, the actual loss of futures account hedging was RMB 2,556,800 during the reporting period.
the reporting
period
Measurement method of hedge effectiveness: hedge effectiveness = change in price of hedging futures position /change in the
price of hedged spot position. A value closer to 100% indicates a higher level of hedge effectiveness. According to the
Hedge Accounting Standards for Business Enterprises of China promulgated in 2006, a hedge is considered highly effective when its
effectiveness effectiveness ranges from 80% to 125%. The Company sustained a loss of RMB 2.55 million due to futures price fluctuations,
which was offset by a gain of RMB 2.57 million resulting from a rise in the spot price during the reporting period. The hedge
effectiveness was above 99%, which demonstrates that the Company's hedge was highly effective.
Source of
funds for Own funds
investment in
17
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
derivatives
Risk analysis
and control
measures for
The Company's hedging transactions follow the following basic principles: The value change and contract quantity of the
positions in
futures products are approximately equivalent to the spot positions; the futures positions are taken in the opposite direction of
derivatives
the spot positions; and the holding period of the futures positions matches the risk exposure period in the spot market. The main
during the
risks of positions in gold futures include basis risk, forced liquidation risk, and operational error risk. To manage basis risk, the
reporting
Company utilizes leased gold as inventory when the basis is narrowed, and builds less or no self-owned inventory. For forced
period
liquidation risk, the Company establishes risk early warnings and advance funding plans to maintain sufficient margins if gold
(including but
prices fluctuate violently. In case of forced liquidation emergencies, Management is notified immediately, and hedging
not limited to
positions are replenished in a timely manner. To control operational error risk, the Company implements a trader training
market risk,
program, ensures trading and reviews adhere to system and workflow requirements, and requires daily reporting. The Company
liquidity risk,
has established a scientific and effective hedging management system, which is implemented through four key aspects:
credit risk,
organizational structure design, planning systems, management and evaluation procedures, and dynamic risk monitoring..
operational
risk, and legal
risk)
Changes in
market price or
product fair
value during
the reporting
period of
invested
derivatives
( the analysis
of the fair During the reporting period, the fair value change of the futures contracts held for hedging purposes was RMB 1,800. The
value of Company determined the fair value using the closing price on June 30, 2023 of the futures contracts held on the Shanghai Gold
derivatives Exchange, with the floating gain and loss representing the change in fair value.
should disclose
the specific
valuation
methodologies
utilized and the
related
assumptions
and parameter
inputs)
Involvement in
litigation (if N/A.
applicable)
Special 1. The Company utilizes its own funds to establish gold stock and uses instruments such as gold futures to hedge the Company's
opinions of own gold stock. The Company utilizes its own funds to engage in hedging transactions while ensuring normal production and
independent operations. This hedging strategy allows the Company to lock in expected profits on products, control operational risks, and
directors on improve resilience against market fluctuations, without damaging the interests of the Company and all shareholders.
investment in 2. The Company has established robust governance for its hedging transactions during the reporting period, including
derivatives and organizational structure, business operation processes, approval procedures, and Hedging Transaction Management Guidelines.
risk control of 3. The approval procedures followed by the Company to utilize its own funds for hedging transactions comply with relevant
the Company national laws, regulations, and the Company's Articles of Association.
2) Investment in derivatives for speculative purposes during the reporting period
□ Applicable Not applicable
During the reporting period, the Company had no investment in derivatives for speculative purposes.
18
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
5. Usage of raised funds
□ Applicable Not applicable
No raised funds are used within the reporting period of the Company.
VII. Sales of Major Assets and Equity
1. Sales of major assets
□ Applicable Not applicable
No major asset is sold during the reporting period of the Company.
2. Sales of major equity
□ Applicable Not applicable
VIII. Analysis of Main Holding Companies and Joint-stock Companies
Applicable □ Not applicable
Main subsidiaries and joint-stock companies affecting over 10% of the Company’s net profit
Unit: RMB
Company Type of Main Registered Operating Operating
Total assets Net assets Net profit
name company business capital revenue profit
Shenzhen
Automobile
Subsidiar Property RMB 58.96 272,373,40 226,659,20 17,559,481. 13,001,845. 10,355,120.
Industry and
y lease million 1.17 9.87 99 80 22
Trade Co.,
Ltd.
Shenzhen
RMB
Zhongtian Subsidiar Property 630,522,28 486,520,50 56,271,928. 32,800,482. 24,967,176.
366.2219
Industry Co., y lease 6.17 4.50 30 62 90
million
Ltd.
Shenzhen
Huari Toyota
Subsidiar Automobil RMB 2 35,929,794. 11,503,618. 52,130,699. 1,150,338.0
Sales & 551,789.40
y e sales million 62 31 28 9
Service Co.,
Ltd.
Shenzhen
Xinyongton
g Motor
Subsidiar Property RMB 9.61 9,917,007.2 4,226,869.8 3,541,502.4 1,843,838.3 1,749,540.1
Vehicle
y lease million 5 4 8 6 5
Inspection
Equipment
Co., Ltd.
Shenzhen
Tellus
Xinyongton
Subsidiar Property RMB 32.9 100,665,13 81,213,393. 5,908,138.3 4,571,598.9 3,428,699.1
g
y lease million 6.60 19 3 0 7
Automobile
Developmen
t Co., Ltd.
Shenzhen Subsidiar Property RMB 14 20,779,637. 19,589,391. 4,516,886.3 2,090,302.2 2,090,302.2
Tellus y lease million 82 90 0 6 7
19
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Chuangying
Technology
Co., Ltd.
Purchase,
sale and
leasing of
gold
Shenzhen ornaments
Tellus and
- -
Treasury Subsidiar precious RMB 50 69,289,324. 44,706,277. 1,488,251.6
1,389,765.9 1,389,765.9
Supply y metal million 18 91 3
9 9
Chain Tech products,
Co., Ltd. leasing of
safe deposit
boxes and
warehousin
g services
Jewelry fair
planning,
jewelry
Shenzhen consignme
Jewelry nt,
Subsidiar RMB 100 59,011,438. 31,381,947. 7,623,229.6
Industry exhibition 281,397.10 281,397.10
y million 92 51 1
Service Co., planning,
Ltd. conference
services,
marketing
planning
Sales of
gold bar for
investment,
Guorun
gold
Gold Subsidiar RMB 200 405,692,36 198,648,26 520,277,94 - -
recycling,
Shenzhen y million 3.60 0.22 8.63 740,865.07 792,883.11
gold
Co., Ltd.
purification
/exchange
services
Shenzhen
Automobil
Renfu Tellus - -
Subsidiar e sales and RMB 30 158,387,79 41,936,395. 529,459,35
Automobiles 15,787,654. 14,291,457.
y maintenanc million 4.94 97 1.87
Service Co., 04 36
e
Ltd.
Investment
Shenzhen in
Tellus- industrial, RMB
Subsidiar 375,842,88 81,056,767. 54,145,037. 22,398,380. 16,769,327.
Gmond property 53.70496
y 5.70 28 15 87 00
Investment manageme million
Co., Ltd. nt and
leasing
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable Not applicable
Description of main holding and joint-stock companies
20
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
IX. Structured Entities Controlled by the Company
□ Applicable Not applicable
X. Risks Faced by the Company and Countermeasures
(1) Risk 1: risks caused by market fluctuations
Affected by the international situation and other factors, the domestic economic growth slows down, the pressure on industrial
restructuring increases, and the overall economic environment has an uncertain impact on the Company's operation.
Countermeasures: In view of this risk, the Company will actively take various preventive measures. First, continuously strengthen
risk management, establish and improve risk prevention and control mechanism to ensure the Company's compliance operation and
steady development; Second, firmly advance the Company's strategic transformation pace, promote the implementation of
transformation projects through innovative business models, explore incremental markets, expand business scale, seek new profit
growth points, and continuously improve the Company's competitiveness to provide a good foundation for the Company's long-term
stable development.
(2) Risk 2: insufficient talent team building
With the implementation of transformation projects and the rapid development of the Company, the demand for various talents in
the industry and management is increasing, and the existing talent team is gradually unable to meet the requirements of development.
Countermeasures: First, set "top-down" talent training objectives and establish talent training plans; Second, expand talent
introduction channels and recruit talents through multiple channels; Third, adjust the organizational structure and staffing of front-line
business departments to improve organizational efficiency; Fourth, strengthen a diligent and hard-working style of work, and enhance
cohesion and execution to ensure the stability of enterprise transformation.
21
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Section IV Corporate Governance
I. Annual General Meeting of Shareholders and Extraordinary General Meetings of
Shareholders during the Reporting Period
1. Situation of General Meeting of Shareholders during the reporting period
Attendanc
e
Session of
Type of meeting proportion Holding date Disclosure date Meeting resolution
meeting
of
investors
For details, please refer to the
Announcement on
Resolutions of 2022 Annual
2022 Annual Annual General
General Meeting of
General Meeting Meeting of 55.92% May 18, 2023 May 19, 2023
Shareholders (Announcement
of Shareholders Shareholders
No.: 2023-025) of Securities
Times and CNINFO
(www.cninfo.com.cn).
For details, please refer to the
Announcement on
The First Resolutions of the First
Extraordinary
Extraordinary Extraordinary General
General
General Meeting 56.30% February 21, 2023 February 22, 2023 Meeting of Shareholders in
Meeting of
of Shareholders 2023 (Announcement No.:
Shareholders
in 2023 2023-009) of Securities
Times and CNINFO
(www.cninfo.com.cn).
2. Preferred shareholders with resumed voting rights request to convene an Extraordinary General
Meeting of Shareholders
□ Applicable Not applicable
II. Change in the Directors, the Supervisors and the Senior Executives of the Company
Applicable □ Not applicable
Name Position Type Date Reason
Zhang Resign from the position due to work
Supervisor Resigned April 20, 2023
Baojun arrangements.
Zeng Resign from the position due to work
Supervisor Resigned April 20, 2023
Xingyu arrangements.
He was elected as a supervisor of the 10th
Dai Board of Supervisors at the 7th Meeting of the
Supervisor Elected May 18, 2023
Zhiwei 10th Board of Supervisors and the 2022 Annual
General Meeting of Shareholders.
He was elected as a supervisor of the 10th
Board of Supervisors at the 7th Meeting of the
Ye Cao Supervisor Elected May 18, 2023
10th Board of Supervisors and the 2022 Annual
General Meeting of Shareholders.
22
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
III. Profit Distribution and Capital Reserves Converted to Share Capital in the Reporting
Period
□ Applicable Not applicable
The Company plans to not distribute cash dividends, issue bonus shares, or transfer share capital from capital reserve in the half year.
IV. Implementation of the Company's Equity Incentive Plan, Employee Stock Ownership Plan
or Other Employee Incentive Measures
□ Applicable Not applicable
During the reporting period, there is no equity incentive plan, employee stock ownership plan or other employee incentive measures
and their implementation for the Company.
23
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Section V Environmental and Social Responsibility
I. Major Environmental Protection Issues
Whether the listed company and its subsidiaries belong to the key pollutant-discharging entities announced by the environmental
protection authorities
□Yes No
Administrative penalties imposed for environmental problems during the reporting period
Impact on the
Rectification
Name of company Reason for production and
Violations Penalty measures of the
or subsidiary punishment operation of listed
Company
companies
None None None None None None
Disclosure of other environmental information with reference to key pollutant-discharging entities
During the reporting period, the Company and its subsidiaries have not been subject to administrative punishment due to
environmental problems.
Measures and effects to reduce carbon emissions during the reporting period
□ Applicable Not applicable
Reasons for failure to disclose other environmental information
Reasons for failure to disclose other environmental information: The Company and its subsidiaries are not key pollutant discharge
units announced by the environmental protection department, and there was no punishment due to violations of laws and regulations
during the reporting period.
II. Social Responsibilities
The Company has always taken repaying shareholders, achieving employees, and giving back to society as its own responsibility.
Adhering to the principle of fairness, the Company actively safeguards the legitimate rights and interests of shareholders. It advocates
the realization of self-value while achieving enterprise value, creating a corporate atmosphere that cares for employees, fosters their
love for the Company, and promotes harmonious mutual development. Firstly, the Party Committee of Tellus Holding actively
responded to the arrangements and deployments of the superior party organization in implementing the national rural revitalization
plan. In 2021, one outstanding party member was selected and sent to Shangyan Village, Chengtian Town, Shantou City for a period
of two years, providing assistance to the rural revitalization work. Secondly, the registered members of Tellus Holding's volunteer
service team totaled 180 people, and the total duration of volunteer activities reached 5,800 hours. During the reporting period, four
volunteer activities were organized with the participation of 85 volunteers.
24
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Section VI Important Matters
I. Commitments that have been fulfilled by the actual controllers, shareholders, related
parties, purchasers and other relevant parties of the Company during the reporting
period and have not yet been fulfilled as of the end of the reporting period
Applicable □ Not applicable
Commitmen Commit Commitm Commitm Commitm Performa
Commitment content
t cause ted party ent type ent time ent period nce
The Company will maintain the independence
of the listed company, and maintain personnel During the
independence, institutional independence, period of
financial independence and asset integrity with being the
Commitmen Shenzhe
the listed company. The listed company will indirect
t made in n Ensure the
still have independent operation ability, controllin
acquisition Investm independe In
independent procurement, production and sales December g
report or ent nce of performa
system and independent intellectual property 30, 2022 sharehold
report of Holding listed nce
rights. er of
equity s Co., companies
In case of violation of the above commitments, Tellus
change Ltd.
the Company will bear corresponding legal Holding, a
responsibilities, including but not limited to listed
compensation for all losses caused to the listed company
company.
1. As of the signing date of this Letter of
Commitment, the Company and other
enterprises controlled by the Company have not
engaged in businesses and activities that are in
direct competition with or may constitute direct
competition with Tellus, and will not engage in
businesses and activities that are in direct
competition with or may constitute direct
competition with Tellus in the future (except
those arranged based on the Shenzhen SASAC During the
or similar government agencies); period of
2. During the period of being the indirect being the
Commitmen Shenzhe
controlling shareholder of Tellus and during indirect
t made in n
Avoid Tellus's listing on Shenzhen Stock Exchange, controllin
acquisition Investm In
horizontal the Company will fully respect the independent December g
report or ent performa
competitio operation autonomy of all subsidiaries 30, 2022 sharehold
report of Holding nce
n controlled by the Company and ensure that the er of
equity s Co.,
legitimate rights and interests of Tellus and its Tellus
change Ltd.
minority shareholders will not be infringed; Holding, a
3. The Company promises not to seek listed
illegitimate interests with the status of company
controlling shareholder of Tellus, thus
damaging the rights and interests of Tellus and
its minority shareholders;
4. The Company promises not to assist any
party to engage in any business activities that
are in substantial competition or potential
competition with the main business of Tellus by
using the information learned or known from
Tellus;
25
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
5. If the Company or other enterprises
controlled by the Company violate the above
commitments and guarantees, the Company
shall bear the economic losses caused to the
listed company.
1. The Company and the companies, enterprises
and economic organizations controlled or
actually controlled by the Company (excluding
enterprises controlled by listed companies,
hereinafter collectively referred to as "affiliated
companies") will exercise the rights of
shareholders, fulfill the obligations of
shareholders, and maintain the independence of
listed companies in terms of assets, finance,
personnel, business and institutions in strict
accordance with the provisions of laws,
regulations and other normative documents;
2. The Company promises not to use its
position as a controlling shareholder to urge the
General Meeting of Shareholders or the Board
of Directors of the listed company to make
resolutions that infringe upon the legitimate
rights and interests of other shareholders of the
listed company;
3. The Company or its affiliated companies will During the
try to avoid related party transactions with period of
listed companies. If it is inevitable to have being the
Commitmen Shenzhe Reduce
related party transactions with listed companies, indirect
t made in n and
the Company or its affiliated companies will controllin
acquisition Investm standardiz In
urge the controlled entities to trade with listed December g
report or ent e related performa
companies on an equal and voluntary basis in 30, 2022 sharehold
report of Holding party nce
accordance with fair, reasonable and normal er of
equity s Co., transactio
commercial transaction conditions; Tellus
change Ltd. ns
4. The Company or its affiliated companies will Holding, a
perform the decision-making procedures of listed
related party transactions and the corresponding company
information disclosure obligations in strict
accordance with the Articles of Association of
the listed company and relevant laws and
regulations;
5. The Company or its affiliated companies will
ensure that they will not seek special interests
beyond the above provisions through related
party transactions with the listed company,
illegally transfer the funds and profits of the
listed company through related party
transactions, and maliciously damage the
legitimate rights and interests of the listed
company and its shareholders through related
party transactions.
In case of violation of the above commitments,
the Company will bear corresponding legal
responsibilities, including but not limited to
compensation for all losses caused to the listed
company.
Shenzhe In the future, the Company will disclose In
Commitmen October
n Tellus Others relevant information regarding the progress of Long term performa
t made 17, 2014
Holding its new businesses in a timely, accurate and nce
26
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
during the Co., sufficient manner in accordance with relevant
initial public Ltd. requirements.
offering or
refinancing
Shenzhen Special Economic Zone
Development Group Co., Ltd., the controlling
shareholder of the Company, issued the Letter
of Commitment to Avoiding Horizontal
Competition on May 26, 2014. The
commitments are as follows:
1. The Company and other enterprises
controlled by the Company other than Tellus
Holding are not engaged in businesses that are
in substantial competition with the main
business of Tellus Holding, and there is no
Shenzhe
horizontal competition relationship with Tellus
n
Other Holding;
Special
commitment 2. The Company and other enterprises
Econom
s made for Horizontal controlled by the Company shall not directly or In
ic Zone May 26,
minority competitio indirectly engage in or participate in any Long term performa
Develop 2014
shareholders n business that constitutes or may constitute nce
ment
of the competition with the main business of Tellus
Group
Company Holding in any form;
Co.,
3. If the Company and other enterprises
Ltd.
controlled by the Company can engage in or
participate in any business opportunity that may
compete with the main business of Tellus
Holding, they shall notify Tellus Holding of the
above business opportunity before
implementing or signing relevant agreements. If
Tellus Holding makes a positive reply within a
reasonable period specified in the notice that it
is willing to take advantage of the business
opportunity, the business opportunity will be
given priority to Tellus Holding.
From 2023 to 2025, the Company's profits will
be first used to cover the losses of previous
years; After making up for the losses of
Other
previous years, on the premise that the
commitment Shenzhe
Company's profits and cash flow meet the
s made for n Tellus Dividend In
normal operation and long-term development of April 27, December
minority Holding commitme performa
the Company, the Company will implement an 2023 31, 2025
shareholders Co., nt nce
active profit distribution method to return it to
of the Ltd.
shareholders. For details, please refer to the
Company
Shareholder Return Plan for the Next Three
Years (2023-2025) disclosed on
www.cninfo.com.cn on April 27, 2023.
Whether the
commitment
Yes
s are duly
performed
If the
commitment
is not
N/A
fulfilled
after the
time limit,
27
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
the specific
reasons for
the failure of
fulfillment
and the next
work plan
shall be
specified
II. Occupation of Non-operating Funds of the Listed Company of Controlling Shareholder
and Other Related Parties
□ Applicable Not applicable
Non-operating fund occupied by the controlling shareholder and other related parties towards the listed company is not identified
within the reporting period of the Company.
III. Illegal Foreign Guarantee
□ Applicable Not applicable
During the reporting period, the Company has no illegal foreign guarantees.
IV. Employment and Dismissal of Accounting Firms
Whether the Semi-Annual Financial Report has been audited
□Yes No
The Semi-Annual Report of the Company is unaudited.
V. Description of the Board of Directors and the Board of Supervisors on the "Non-Standard
Auditor’s Report" Issued by the Accounting Firm during the Reporting Period
□ Applicable Not applicable
VI. Description of the Board of Directors on the “Non-Standard Auditor's Report” of the
Previous Year
□ Applicable Not applicable
VII. Matters Relating to Bankruptcy Reorganization
□ Applicable Not applicable
Matters concerning bankruptcy reorganization are not identified within the reporting period of the Company.
VIII. Lawsuit Proceedings
Major litigation and arbitration matters
□ Applicable Not applicable
The Company has no significant matters of litigation and arbitration during the reporting period.
Other lawsuit proceedings
28
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Applicable □ Not applicable
Execution
Basic Amount Litigation of
Estimated Progress of
information involved (arbitration) litigation Disclosure
accrual of litigation Disclosure index
of litigation (RMB trial results (arbitratio date
liabilities (arbitration)
(arbitration) 10,000) and impacts n)
judgment
Land Lease
Contract
The first instance
Dispute
was held on
(Automobile
March 15, 2023,
Industry and
1,403.76 No but the first Pending None
Trade
instance judgment
Company v.
has not yet been
Shenzhen
received
Dongfeng
Company)
The appeal
Announcement on the
after
Progress of Lawsuit
judgment of
Proceedings of
Shareholder the second
Holding Subsidiaries
Qualification instance is July 7,
19.84 No Closed - (Announcement No.:
Confirmation dismissed 2023
2023-030) of
Dispute and the
Securities Times and
original
CNINFO
judgment is
(www.cninfo.com.cn)
affirmed.
IX. Punishment and Rectification
□ Applicable Not applicable
X. Integrity Situation of the Company and its Controlling Shareholder and Actual Controllers
□ Applicable Not applicable
XI. Major Related Party Transactions
1. Related party transactions concerning daily operations
Applicable □ Not applicable
Mark
Price Amou Propo et
Cont Pricin Settle
of nt of rtion Appro Whet price
ent g ment
Type relate relate to ved her of
Relate Relati of princi metho
of d d transa transac exce availa Disc
d onship relat ple of ds of
related party party ction tion eding ble losu Disclosu
transac of ed relate relate
party transa transa amou amount the simila re re index
tion related party d d
transa ction( ction nt of (RMB appr r date
parties parties trans party party
ctions RMB (RMB the 10,000 oved transa
actio transa transa
10,00 10,00 same ) limit ction(
n ction ction
0) 0) kind RMB
10,00
29
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
0)
A
Direct
Shenz Accor
or of Prov
hen ding
the ide
Renfu Daily to the
Comp prop Refer
Tellus related contra
any erty to the 272.5 272.5
Autom party 272.5 2.36% 545 No ct
concur leasi marke 0 0
obiles transa amou
rently ng t price
Servic ctions nt or
serves servi
e Co., agree
as its ces
Ltd. ment
Direct
or
Shenz
Accor
hen Prov
ding
SDG Subsid ide
Daily to the
Tellus iary of prop Refer
related contra
Proper contro erty to the
party 6.90 6.9 0.06% 21 No ct 6.90
ty lling leasi marke
transa amou Announ
Manag shareh ng t price
ctions nt or cement
ement older servi
agree on Daily
Co., ces
ment Related
Ltd.
Party
Prov
Transact
ide
Accor ions in
prop
Shenz ding 2023
Subsid erty
hen Daily to the (Annou
iary of leasi Refer Apri
SDG related contra ncement
contro ng to the l 27,
Microf party 63.47 63.47 0.55% 150 No ct 63.47 No.:
lling and marke 202
inance transa amou 2023-
shareh man t price 3
Co., ctions nt or 018) of
older age
Ltd. agree Securiti
ment
ment es Times
servi
and
ces
CNINF
Shenz Accor
Prov O
hen ding
Subsid ide (www.c
SDG Daily to the
iary of prop Refer ninfo.co
Servic related contra
contro erty to the 120.8 120.8 120.8 m.cn)
e Co., party 1.05% 510 No ct
lling leasi marke 7 7 7
Ltd. transa amou
shareh ng t price
and its ctions nt or
older servi
branch agree
ces
es ment
Shenz Prov
hen ide
Accor
Specia vehi
ding
l cle
Daily to the
Econo Contr main Refer
related contra
mic olling tena to the
party 0.82 0.82 0.08% 3 No ct 0.82
Zone shareh nce marke
transa amou
Develo older and t price
ctions nt or
pment testi
agree
Group ng
ment
Co., servi
Ltd. ces
Shenz Subsid Daily Prov Refer 0.13 0.13 0.01% 2 No Accor 0.13
30
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
hen iary of related ide to the ding
SDG contro party vehi marke to the
Tellus lling transa cle t price contra
Proper shareh ctions main ct
ty older tena amou
Manag nce nt or
ement and agree
Co., testi ment
Ltd. ng
servi
ces
Acce
Shenz Accor
pt
hen ding
Subsid engi
SDG Daily to the
iary of neeri Refer
Engine related contra
contro ng to the 100.0
ering party 68.98 68.98 200 No ct 68.98
lling supe marke 0%
Manag transa amou
shareh rvisi t price
ement ctions nt or
older on
Co., agree
servi
Ltd. ment
ces
Shenz Acce Accor
hen pt ding
Subsid
SDG Daily prop to the
iary of Refer
Servic related erty contra
contro to the 698.3 698.3 73.87 698.3
e Co., party man 1,816 No ct
lling marke 7 7 % 7
Ltd. transa age amou
shareh t price
and its ctions ment nt or
older
branch servi agree
es ces ment
Shenz
Acce Accor
hen
pt ding
SDG Subsid
Daily prop to the
Tellus iary of Refer
related erty contra
Proper contro to the 188.4 188.4 19.93 188.4
party man 340 No ct
ty lling marke 2 2 % 2
transa age amou
Manag shareh t price
ctions ment nt or
ement older
servi agree
Co.,
ces ment
Ltd.
1,420.
Total -- -- -- 3,587 -- -- -- -- --
46
Details of large sales return None
The actual performance during the
reporting period (if any) if the total
amount of daily related party
Normal performance
transactions occurring in the
current period is estimated by
category
Reasons for the great difference
between the transaction price and
N/A
market reference price (if
applicable)
31
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
2. Related party transactions from acquisition and disposal of assets or equity
□ Applicable Not applicable
During the reporting period, the Company has no related party transaction from the acquisition and sale of assets or equities.
3. Related party transaction of joint foreign investment
□ Applicable Not applicable
During the reporting period, the Company has no related party transaction of joint foreign investment.
4. Transaction related to credit and debt
Applicable □ Not applicable
Whether there are transactions of non-operating related credits and debts
□Yes No
During the reporting period, the Company has no transactions related to credit and debt.
5. Transactions with correlated finance companies
□ Applicable Not applicable
There is no deposit, loan, credit or other financial business between the Company and related finance companies.
6. Transactions between finance companies controlled by the Company and related parties
□ Applicable Not applicable
There is no deposit, loan, credit or other financial business between the finance companies controlled by the Company and related
parties.
7. Other major related party transactions
□ Applicable Not applicable
During the reporting period, the Company has no other major related party transactions.
XII. Major Contracts and Performance
1. Trusteeship, contracting and leasing events
(1) Trusteeship
□ Applicable Not applicable
During the reporting period, the Company has no trusteeship.
(2) Contracting
□ Applicable Not applicable
During the reporting period, the Company has no contracting.
32
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
(3) Leasing
□ Applicable Not applicable
During the reporting period, the Company has no leasing.
2. Significant guarantees
Applicable □ Not applicable
Unit: RMB 10,000
External guarantees of the Company and its subsidiaries (excluding the guarantees to subsidiaries)
Disclosure
Whether
date of the
Actual it is
Name of relevant Actual Type of Counter- Whethe
Guarante date of Collatera Guarante provide
guaranteed announcemen guarante guarante guarante r it is
e amount occurrenc l (if any) e period d to
party t of the e amount e e (if any) fulfilled
e related
guarantee
parties
amount
Shenzhen Until the
Renfu expiry
Tellus September March 15, date of
3,500 1,277.5 Pledge No No No Yes
Automobile 30, 2014 2022 the Joint
s Service Venture
Co., Ltd. Contract
Total actual external
Total external guarantee
guarantee amount in
amount approved in the 0 1,277.5
the reporting period
reporting period (A1)
(A2)
Total external
Total external guarantee
guarantee balance at
amount approved at the end 3,500 3,500
the end of reporting
of the reporting period (A3)
period (A4)
Guarantee to subsidiaries
Disclosure
Whether
date of the
Actual it is
Name of relevant Actual Type of Counter- Whethe
Guarante date of Collatera Guarante provide
guaranteed announcemen guarante guarante guarante r it is
e amount occurrenc l (if any) e period d to
party t of the e amount e e (if any) fulfilled
e related
guarantee
parties
amount
Guarantee between subsidiaries
Disclosure
Whether
date of the
Actual it is
Name of relevant Actual Type of Counter- Whethe
Guarante date of Collatera Guarante provide
guaranteed announcemen guarante guarante guarante r it is
e amount occurrenc l (if any) e period d to
party t of the e amount e e (if any) fulfilled
e related
guarantee
parties
amount
Total amount of the Company’s guarantee (i.e. total of the first three items)
Total actual guarantee
Total guarantee amount
amount in the
approved in the reporting 0 1,277.5
reporting period (A2
period (A1 + B1 + C1)
+ B2 + C2)
33
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Total guarantee amount Total actual guarantee
approved at the end of the balance at the end of
3,500 3,500
reporting period (A3 + B3 + the reporting period
C3) (A4 + B4 + C4)
Proportion of total actual guarantee amount (i.e. A4 + B4
2.28%
+ C4) to the Company’s net assets
Where:
The balance of guarantees provided for the shareholder,
0
actual controller, and related parties (D)
The balance of debt guarantees provided directly or
indirectly for guaranteed parties with an asset-liability 0
ratio of more than 70% (E)
The portion of total guarantee amount which exceeds
0
50% of the net assets (F)
Total of above three guarantee amounts (D+E+F) 0
For guarantee contracts that remained unexpired, disclose
whether any guarantee obligations were incurred or
whether there was evidence indicating the possible None
assumption of joint and several repayment obligations
during the reporting period (if any)
External guarantees provided in violation of prescribed
None
procedures (if any)
Specific composite guarantees
3. Entrusted financial management
Applicable □ Not applicable
Unit: RMB 10,000
Impairment
provision for
Capital source of Amount of Overdue overdue
Outstanding
Category entrusted financial entrusted financial irrecoverable unrecovered
balance
management management amount wealth
management
products
Bank financial
Own funds 59,000 43,000 0 0
products
Total 59,000 43,000 0 0
Details of high-risk entrusted financial management with large individual amount or low security and poor liquidity
□ Applicable Not applicable
Principal unable to be recovered or other conditions causing impairment for entrusted financial management
□ Applicable Not applicable
4. Other major contracts
□ Applicable Not applicable
During the reporting period, the Company has no major contracts.
34
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
XIII. Clarification on Other Major Matters
□ Applicable Not applicable
The Company has no other major matters that need to be stated during the reporting period.
XIV. Major Matters of the Company’s Subsidiaries
Applicable □ Not applicable
1. After the expiration of the business term of the Company's holding subsidiary SDG Huari, the shareholders could not reach an
agreement, and the Company applied to the People's Court of Qianhai Cooperation Zone in Shenzhen for the compulsory liquidation
of SDG Huari. The court has ruled to accept the liquidation application for SDG Huari filed by the Company and has designated Beijing
King & Wood Mallesons (Shenzhen) as the liquidation team for SDG Huari. At present, all work is being carried out according to legal
procedures. For details, please refer to the Company's Announcement on the Court's Acceptance of the Application for Compulsory
Liquidation of Holding Subsidiaries (Announcement No.: 2023-003), Announcement on the Progress of Compulsory Liquidation of
Holding Subsidiaries (Announcement No.: 2023-010) and other relevant contents.
2. Since the business premises of Huari Toyota were properties owned by SDG Huari, after a long period of exploration, Huari
Toyota still faced the situation of having no business premises. Additionally, the economic benefits and strategic significance of Huari
Toyota were not prominent enough. In view of this, the Company decided to dissolve Huari Toyota. For details, please refer to the
Company's Announcement on the Dissolution of a Holding Subsidiary (Announcement No.: 2023-034) and other relevant contents.
35
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Section VII Changes in Shares and Shareholders
I. Change in Shares
1. Changes in shares
Unit: share
Before the change Increase (+)/decrease (-) in this change After the change
Conversio
Issuance n of the
Proportio Bonus Proportio
Quantity of new reserve Others Subtotal Quantity
n shares n
shares funds into
shares
I.
Restricted 0 0.00% 0 0 0 0 0 0 0.00%
shares
1. State
sharehold 0 0.00% 0 0 0 0 0 0 0.00%
ing
2.
State-
owned
legal 0 0.00% 0 0 0 0 0 0 0.00%
person
sharehold
ing
3.
Other
domestic 0 0.00% 0 0 0 0 0 0 0.00%
sharehold
ing
Inclu
ding:
Domestic
legal 0 0.00% 0 0 0 0 0 0 0.00%
person
sharehold
ing
Dom
estic
natural
0 0.00% 0 0 0 0 0 0 0.00%
person
sharehold
ing
4.
Foreign
0 0.00% 0 0 0 0 0 0 0.00%
sharehold
ing
Inclu
ding: 0 0.00% 0 0 0 0 0 0 0.00%
Foreign
36
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
legal
person
sharehold
ing
Forei
gn natural
person 0 0.00% 0 0 0 0 0 0 0.00%
sharehold
ing
II.
431,058,3 431,058,3
Unrestrict 100.00% 0 0 0 0 0 100.00%
20 20
ed shares
1.
RMB-
denomina 392,778,3 392,778,3
91.12% 0 0 0 0 0 91.12%
ted 20 20
ordinary
shares
2.
Domestic
38,280,00 38,280,00
listed 8.88% 0 0 0 0 0 8.88%
0 0
foreign
shares
3.
Foreign
listed 0 0.00% 0 0 0 0 0 0 0.00%
foreign
shares
4.
0 0.00% 0 0 0 0 0 0 0.00%
Others
III. Total
431,058,3 431,058,3
amount of 100.00% 0 0 0 0 0 100.00%
20 20
shares
Reasons for changes in shares
□ Applicable Not applicable
Status of authorization for changes in shares
□ Applicable Not applicable
Status of transfer for changes in shares
□ Applicable Not applicable
Progress in the implementation of share repurchase
□ Applicable Not applicable
Progress in the implementation of share repurchase reduction through centralized bidding
□ Applicable Not applicable
Effect of changes in shares on the financial indicators including basic earnings per share and diluted earnings per share in the most
recent year and in the most recent period as well as net asset per share attributable to the ordinary shareholders of the Company
□ Applicable Not applicable
Other information that the company deems necessary or as required by securities regulators
□ Applicable Not applicable
37
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
2. Changes in restricted shares
□ Applicable Not applicable
II. Conditions on Securities Issuance and Listing
□ Applicable Not applicable
III. Number of shareholders of the Company and their shareholding conditions
Unit: share
Total number of ordinary Total number of preferred shareholders (if
shareholders as of the end of 62,735 any) resuming voting rights at the end of 0
the reporting period the reporting period (see Note 8)
Ordinary shareholders holding more than 5% shares of the Company or ordinary shareholdings of the top 10 shareholders
Number Pledged, marked
of or frozen shares
Number of ordinary Number of
Shareho ordinary sharehol ordinary
Nature of Increase/decreas
Name of lding shares held at dings shareholdings
sharehold e during the Status
shareholder proporti the end of the with without trading Quantit
er reporting period of
on reporting trading limited y
period limited conditions shares
conditio
ns
Shenzhen
Special
State-
Economic
owned 202,524,621.0
Zone 46.98% -2,274,000.00 0 202,524,621.00 0
legal 0
Development
person
Group Co.,
Ltd.
Shenzhen
Capital
Fortune Domestic
Jewelry non-state-
Industry owned 6.13% 26,439,453.00 -10,173,479.00 0 26,439,453.00 0
Investment legal
Enterprise person
(Limited
Partnership)
Domestic
Li Xiaoming natural 0.71% 3,069,500.00 177,800.00 0 3,069,500.00 0
person
China State-
Merchants owned
0.48% 2,050,216.00 1,147,738.00 0 2,050,216.00 0
Securities Co., legal
Ltd. person
GUOTAIJUN
ANSECURITI Overseas
ES legal 0.40% 1,741,491.00 0 0 1,741,491.00 0
(HONGKON person
G) LIMITED
Industrial and Others 0.30% 1,279,975.00 442,500.00 0 1,279,975.00 0
38
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Commercial
Bank of China
Limited—
Southern CSI
All Index Real
Estate ETF
Ningbo
Meishan
Bonded Port
Area Lingding
Investment
Management
Co., Ltd.— Others 0.29% 1,250,000.00 1,250,000.00 0 1,250,000.00 0
Lingding
Wangyue No.
27 Private
Securities
Investment
Fund
Shanghai V-
Invest Co.,
Ltd.—V-Invest
Cornerstone
Others 0.23% 1,000,000.00 1,000,000.00 0 1,000,000.00 0
No. 15 Private
Securities
Investment
Fund
Hong Kong
Securities Overseas
Clearing legal 0.17% 748,865.00 748,865.00 0 748,865.00 0
Company person
Limited
Domestic
Chen Yun natural 0.15% 636,617.00 236,607.00 0 636,617.00 0
person
Status of the strategic
investor or general legal
person becoming one of the
None
top 10 ordinary shareholders
due to equity offering (if
any) (see Note 3)
Explanations of
Among the top ten shareholders, Shenzhen Special Economic Zone Development Group Co., Ltd.
relationships between or
was not related to other shareholders and was not a person acting in concert as stipulated in the
concerted actions of the
Measures for the Administration of the Takeover of Listed Companies. It was unknown whether
aforementioned
other shareholders of tradable shares were persons acting in concert.
shareholders
Description of the above-
mentioned shareholders'
involvement in
N/A
entrusting/being entrusted
with the right to vote and
giving up the right.
Special description of
repurchase special account
None
among the top 10
shareholders (if any) (see
39
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Note 11)
Shareholding of top 10 ordinary shareholders without trading limited conditions
Number of shareholdings without trading limited Type
Name of shareholder
conditions as of the end of the reporting period Type Quantity
Shenzhen Special Economic
RMB ordinary
Zone Development Group 202,524,621.00 202,524,621.00
shares
Co., Ltd.
Shenzhen Capital Fortune
Jewelry Industry Investment RMB ordinary
26,439,453.00 26,439,453.00
Enterprise (Limited shares
Partnership)
RMB ordinary
Li Xiaoming 3,069,500.00 3,069,500.00
shares
China Merchants Securities RMB ordinary
2,050,216.00 2,050,216.00
Co., Ltd. shares
GUOTAIJUNANSECURITI
Domestic listed
ES (HONGKONG) 1,741,491.00 1,741,491.00
foreign shares
LIMITED
Industrial and Commercial
Bank of China Limited— RMB ordinary
1,279,975.00 1,279,975.00
Southern CSI All Index Real shares
Estate ETF
Ningbo Meishan Bonded
Port Area Lingding
Investment Management RMB ordinary
1,250,000.00 1,250,000.00
Co., Ltd.—Lingding shares
Wangyue No. 27 Private
Securities Investment Fund
Shanghai V-Invest Co.,
Ltd.—V-Invest Cornerstone RMB ordinary
1,000,000.00 1,000,000.00
No. 15 Private Securities shares
Investment Fund
Hong Kong Securities RMB ordinary
748,865.00 748,865.00
Clearing Company Limited shares
RMB ordinary
Chen Yun 636,617.00 636,617.00
shares
Explanations of the related
relationship or acting in
concert among the top 10
Among the top ten shareholders, Shenzhen Special Economic Zone Development Group Co., Ltd.,
ordinary shareholders
a state-owned corporate shareholder, was not related to other shareholders and was not a person
without trading limited
acting in concert as stipulated in the Measures for the Administration of the Takeover of Listed
conditions, and between the
Companies. It was unknown whether other shareholders of tradable shares were persons acting in
top 10 ordinary shareholders
concert.
without trading limited
conditions and the top 10
ordinary shareholders
1. The controlling shareholder of the Company, Shenzhen Special Economic Zone Development
Group Co., Ltd. (SDG Group) was engaged in refinancing business. The number of shares held at
the end of this reporting period decreased by 2,274,000 compared to the end of 2022. This
Description of participation
decrease in the number of shares held was caused by the lending of shares by SDG Group, and the
of the top ten ordinary
ownership of the lent shares would not be transferred.
shareholders in securities
2. The shareholder Ningbo Meishan Bonded Port Area Lingding Investment Management Co.,
margin trading (if any) (see
Ltd.—Lingding Wangyue No. 27 Private Securities Investment Fund held 1,250,000 shares of the
Note 4)
Company through guaranteed credit accounts and 0 shares of the Company through ordinary
securities accounts, holding a total of 1,250,000 shares.
3. The shareholder Shanghai V-Invest Co., Ltd.—V-Invest Cornerstone No. 15 Private Securities
40
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Investment Fund held 1,000,000 shares of the Company through guaranteed credit accounts and 0
shares of the Company through ordinary securities accounts, holding a total of 1,000,000 shares.
4. The shareholder Chen Yun held 636,617 shares of the Company through guaranteed credit
accounts and 0 shares of the Company through ordinary securities accounts, holding a total of
636,617 shares.
Whether the top 10 ordinary shareholders and the top 10 ordinary shareholders without trading limited conditions have performed the
agreed repurchase transactions during the reporting period
□Yes No
The top 10 ordinary shareholders and the top 10 ordinary shareholders without trading limited conditions have not performed the
agreed repurchase transactions during the reporting period.
IV. Changes in Shareholding of Directors, Supervisors, and Senior Executives
□ Applicable Not applicable
There was no change in the shareholding of directors, supervisors and senior executives during the reporting period. Please refer to
the 2022 Annual Report for details.
V. Change of the Controlling Shareholder or Actual Controllers
Change in controlling shareholder in the reporting period
□ Applicable Not applicable
During the reporting period, the Company had no change in the controlling shareholder.
Change in actual controller during the reporting period
□ Applicable Not applicable
During the reporting period, the Company had no change in the actual controller.
41
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Section VIII Preferred Shares
□ Applicable Not applicable
During the reporting period, the Company has no preferred shares.
42
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Section IX Relevant Information of Corporate Bonds
□ Applicable Not applicable
43
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Section X Financial Report
I. Auditor's Report
Whether the Semi-Annual Report has been audited
□Yes No
The Semi-Annual Financial Report of the Company is unaudited.
II. Financial Statements
All amounts are in RMB
1. Consolidated Balance Sheet
Prepared by: Shenzhen Tellus Holding Co., Ltd.
June 30, 2023
Unit: RMB
Item June 30, 2023 January 1, 2023
Current assets:
Cash at bank and on hand 272,420,241.88 413,028,327.36
Settlement reserves
Loans to banks and other financial
institutions
Trading financial assets 293,350,365.44 176,133,569.95
Derivative financial assets 1,760.00
Notes receivable 20,000,000.00 87,812,500.00
Accounts receivable 182,214,051.47 41,752,179.56
Receivables financing
Advances to suppliers 53,601,354.65 8,127,252.94
Premiums receivable 0.00
Reinsurance premium receivable
Reinsurance contract provision
receivable
Other receivables 23,916,989.20 7,663,570.87
Including: interest receivable
Dividends receivable 1,852,766.21 1,852,766.21
Financial assets purchased under
agreements to resell
Inventories 41,770,590.06 116,069,675.39
Contract asset
Held-for-sale assets
Current portion of non-current assets
Other current assets 119,139,175.51 18,346,711.55
44
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Total current assets 1,006,414,528.21 868,933,787.62
Non-current assets:
Disbursement of loans and advances to
customers
Creditor's rights investment
Other creditor's right investments
Long-term receivables
Long-term equity investment 69,035,977.23 81,024,365.94
Other equity instrument investments 29,401,309.85 10,176,617.20
Other non-current financial assets
Investment properties 1,031,138,405.32 516,360,139.45
Fixed assets 84,382,315.00 102,689,546.42
Projects under construction 6,860,682.96 409,933,559.27
Productive biological assets
Oil and gas assets
Right-of-use assets 74,582,096.36 4,181,242.86
Intangible assets 4,836,199.49 49,808,015.72
Development expenditures
Goodwill
Long-term deferred expenses 29,477,828.69 25,876,099.49
Deferred tax assets 8,771,445.01 8,518,233.77
Other non-current assets 168,070,989.24 154,526,946.83
Total non-current assets 1,506,557,249.15 1,363,094,766.95
Total assets 2,512,971,777.36 2,232,028,554.57
Current liabilities:
Short-term borrowings 170,000,000.00 20,000,000.00
Borrowings from the central bank
Borrowings from banks and other
financial institutions
Trading financial liabilities 30,104,994.27 18,572,684.91
Derivative financial liabilities 489,360.00
Notes payable
Accounts payable 168,223,689.80 124,716,800.71
Advances from customers 11,644,915.56 6,119,377.90
Contract liabilities 37,702,112.40 9,259,658.43
Financial assets sold under agreements
to repurchase
Deposits from banks and other
financial institutions
Customer brokerage deposits
Securities underwriting brokerage
deposits
Employee compensation payable 37,615,719.86 38,550,181.70
Taxes payable 14,278,675.79 18,891,792.84
45
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Other payables 111,852,691.67 105,180,279.00
Including: interest payable
Dividends payable 12,069,632.96
Handling charges and commission
payable
Reinsurance premium payable
Held-for-sale liabilities
Current portion of non-current
1,565,376.12 2,009,819.15
liabilities
Other current liabilities 84,119.73 68,361,007.70
Total current liabilities 583,072,295.20 412,150,962.34
Non-current liabilities:
Insurance contract reserves
Long-term borrowings 168,005,447.69 144,820,511.42
Bonds payable
Including: preferred shares
Perpetual bonds
Lease liabilities 73,155,478.11 2,926,184.93
Long-term payables 3,920,160.36 3,920,160.36
Long-term employee compensation
payable
Estimated liabilities 268,414.80 268,414.80
Deferred income 10,738,917.98 10,579,545.71
Deferred tax liabilities 1,190,386.83 1,135,031.11
Other non-current liabilities
Total non-current liabilities 257,278,805.77 163,649,848.33
Total liabilities 840,351,100.97 575,800,810.67
Owners' equity:
Share capital 431,058,320.00 431,058,320.00
Other equity instruments
Including: preferred shares
Perpetual bonds
Capital reserves 431,449,554.51 431,449,554.51
Less: Treasury shares
Other comprehensive income 26,422.00 26,422.00
Special reserve
Surplus reserve 52,499,172.13 52,499,172.13
General risk provision
Undistributed profit 622,675,724.64 590,605,394.67
Total owners' equity attributable to the
1,537,709,193.28 1,505,638,863.31
parent company
Minority equity 134,911,483.11 150,588,880.59
Total owners' equity 1,672,620,676.39 1,656,227,743.90
Total liabilities and owners' equity 2,512,971,777.36 2,232,028,554.57
Legal representative: Fu Chunlong Person in charge of accounting: Huang Tianyang Person in charge of the
accounting firm: Yu Taiping
46
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
2. Parent Company's Balance Sheet
Unit: RMB
Item June 30, 2023 January 1, 2023
Current assets:
Cash at bank and on hand 47,267,133.50 169,733,887.28
Trading financial assets 263,350,365.44 176,133,569.95
Derivative financial assets
Notes receivable
Accounts receivable 16,476,251.31 147,200.91
Receivables financing
Advances to suppliers 11,252,585.50 249,559.50
Other receivables 9,067,314.66 4,966,987.96
Including: interest receivable
Dividends receivable 1,852,766.21 1,852,766.21
Inventories
Contract asset
Held-for-sale assets
Current portion of non-current assets
Other current assets 111,086,319.66 137,126.11
Total current assets 458,499,970.07 351,368,331.71
Non-current assets:
Creditor's rights investment
Other creditor's right investments
Long-term receivables
Long-term equity investment 829,000,757.31 865,313,838.67
Other equity instrument investments 29,401,309.85 10,176,617.20
Other non-current financial assets
Investment properties 560,082,724.67 26,915,545.20
Fixed assets 15,752,690.13 16,433,526.75
Projects under construction 6,735,838.64 419,793,938.49
Productive biological assets
Oil and gas assets
Right-of-use assets 71,099,342.15
Intangible assets 2,884,646.47 48,413,279.08
Development expenditures
Goodwill
Long-term deferred expenses 8,840,254.53 8,465,289.34
Deferred tax assets 3,415,402.97 3,415,402.97
Other non-current assets 36,156,297.96 73,340,576.28
Total non-current assets 1,563,369,264.68 1,472,268,013.98
Total assets 2,021,869,234.75 1,823,636,345.69
Current liabilities:
47
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Short-term borrowings
Trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 104,710,137.44 58,797,324.02
Advances from customers 1,246,647.00 962,064.00
Contract liabilities
Employee compensation payable 31,412,035.82 28,220,652.45
Taxes payable 1,297,346.95 3,317,946.24
Other payables 315,400,572.57 249,870,213.63
Including: interest payable
Dividends payable 12,069,632.96
Held-for-sale liabilities
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 454,066,739.78 341,168,200.34
Non-current liabilities:
Long-term borrowings 168,005,447.69 144,820,511.42
Bonds payable
Including: preferred shares
Perpetual bonds
Lease liabilities 71,953,729.20
Long-term payables
Long-term employee compensation
payable
Estimated liabilities
Deferred income
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 239,959,176.89 144,820,511.42
Total liabilities 694,025,916.67 485,988,711.76
Owners' equity:
Share capital 431,058,320.00 431,058,320.00
Other equity instruments
Including: preferred shares
Perpetual bonds
Capital reserves 428,256,131.23 428,256,131.23
Less: Treasury shares
Other comprehensive income
Special reserve
Surplus reserve 52,499,172.13 52,499,172.13
Undistributed profit 416,029,694.72 425,834,010.57
Total owners' equity 1,327,843,318.08 1,337,647,633.93
Total liabilities and owners' equity 2,021,869,234.75 1,823,636,345.69
48
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
3. Consolidated Income Statement
Unit: RMB
Item FH 2023 FH2022
I. Total operating revenue 704,836,410.94 250,015,152.23
Including: Operating revenue 704,836,410.94 250,015,152.23
Interest revenue
Earned premiums
Handling charges and
commission revenue
II. Total operating cost 655,633,026.03 220,692,103.94
Including: operating cost 608,604,638.40 188,344,177.55
Interest expenses
Handling charges and
commission expenses
Surrender value
Net payments for insurance
claims
Net provision for insurance
liability reserves
Policy dividend expenses
Reinsurance expenses
Taxes and surcharges 4,855,726.45 4,269,247.42
Selling expenses 11,963,099.01 10,947,318.15
Administrative expenses 28,817,829.38 19,832,917.21
R&D expenses
Financial expenses 1,391,732.79 -2,701,556.39
Including: interest expenses 3,437,880.65 108,391.88
Interest revenue 1,835,834.14 2,843,386.98
Add: other incomes 4,475,465.94 1,575,990.30
Investment income (loss to be
8,923,017.80 23,487,946.52
listed with “-”)
Including: income from
investment in associates and joint 3,011,611.29 7,927,787.58
ventures
Income from
derecognition of financial assets at
amortized cost
Exchange income (loss to be
listed with “-”)
Net exposure hedging income
(loss to be listed with “-”)
Income from fair value changes
-5,265,810.16 -617,068.50
(loss to be listed with "-")
Credit impairment loss (loss to be
6,669.80 -200,149.24
listed with "-")
49
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Asset impairment loss (loss to be
-3,700.50
listed with "-")
Income of assets disposal (loss to
-81,800.45 40,765.92
be listed with “-”)
III. Operating profit (loss to be listed
57,257,227.34 53,610,533.29
with "-")
Add: Non-operating revenue 417,182.13 295,807.48
Less: Non-operating expenses 119,683.12 237.72
IV. Total profit (total losses to be listed
57,554,726.35 53,906,103.05
with "-")
Less: Income tax expenses 12,466,659.92 10,808,747.89
V. Net profit (net loss to be listed with "-
45,088,066.43 43,097,355.16
")
(I) Classified by continuity of
operation
1. Net profit from continuing
45,088,066.43 43,097,355.16
operations (net loss to be listed with “-”)
2. Net profit from discontinued
operations (net loss to be listed with "-")
(II) Classified by the attribution of
ownership
1. Net profit attributable to the
shareholders of the parent company (net 44,139,962.93 43,480,236.19
loss to be listed with “-”)
2. Minority interest income (net loss
948,103.50 -382,881.03
to be listed with "-")
VI. Net of tax of other comprehensive
income
Net after-tax amount of other
comprehensive income attributable to the
owner of the parent company
(I) Other comprehensive income
that cannot be reclassified through profit
or loss
1. Changes arising from the re-
measurement in the defined benefit plan
2. Other comprehensive income
that cannot be reclassified into profit or
loss under the equity method
3. Changes in fair value of other
equity instrument investments
4. Changes in fair value of the
Company's own credit risk
5. Others
(II) Other comprehensive income to
be reclassified into profit or loss
1. Other comprehensive income
that can be reclassified into profit or loss
under the equity method
2. Changes in fair value of other
debt investment
3. Amount of financial assets
reclassified into other comprehensive
income
4. Provisions for credit
50
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
impairment of other debt investments
5. Cash flow hedge reserve
6. Translation difference arising
from foreign currency financial
statements
7. Others
Net after-tax amount of other
comprehensive income attributable to
minority shareholders
VII. Total comprehensive income 45,088,066.43 43,097,355.16
Total comprehensive income
attributable to owners of the parent 44,139,962.93 43,480,236.19
company
Total comprehensive income
948,103.50 -382,881.03
attributable to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.1024 0.1009
(II) Diluted earnings per share 0.1024 0.1009
In case of a business merger under common control in the current period, the net profit realized by the merged party before the
merger is RMB and the net profit realized by the merged party in the previous period is RMB .
Legal representative: Fu Chunlong Person in charge of accounting: Huang Tianyang
Person in charge of the accounting firm: Yu Taiping
4. Parent Company's Income Statement
Unit: RMB
Item FH 2023 FH2022
I. Operating revenue 34,050,043.81 12,666,278.27
Less: Operating costs 14,948,857.82 5,003,948.63
Taxes and surcharges 98,447.27 609,206.45
Selling expenses 436,485.01
Administrative expenses 22,825,529.80 16,849,325.25
R&D expenses
Financial expenses 1,078,785.57 -1,323,024.22
Including: interest expenses 1,763,223.12
Interest revenue 691,617.24 1,330,174.79
Add: other incomes 111,156.14
Investment income (loss to be
10,449,577.73 13,643,736.16
listed with “-”)
Including: income from
investment in associates and joint 3,011,611.29 7,927,787.58
ventures
Income from
derecognition of financial assets at
amortized cost (loss to be listed with "-")
Net exposure hedging income
(loss to be listed with “-”)
Income from fair value changes
-2,783,204.51 -390,005.49
(loss to be listed with "-")
Credit impairment loss (loss to be
51
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
listed with "-")
Asset impairment loss (loss to be
listed with "-")
Income of assets disposal (loss to
be listed with “-”)
II. Operating profit (loss to be listed with
2,328,311.56 4,891,708.97
“-”)
Add: Non-operating revenue 48,428.55 74,563.02
Less: Non-operating expenses 111,423.00
III. Total profit (total losses to be listed
2,265,317.11 4,966,271.99
with “-”)
Less: Income tax expenses 554,379.86
IV. Net profit (net loss to be listed with
2,265,317.11 4,411,892.13
“-”)
(I) Net profit from continuing
2,265,317.11 4,411,892.13
operations (net loss to be listed with "-")
(II) Net profit from discontinued
operations (net loss to be listed with "-")
V. Net of tax of other comprehensive
income
(I) Other comprehensive income
that cannot be reclassified through profit
or loss
1. Changes arising from the re-
measurement in the defined benefit plan
2. Other comprehensive income
that cannot be reclassified into profit or
loss under the equity method
3. Changes in fair value of other
equity instrument investments
4. Changes in fair value of the
Company's own credit risk
5. Others
(II) Other comprehensive income to
be reclassified into profit or loss
1. Other comprehensive income
that can be reclassified into profit or loss
under the equity method
2. Changes in fair value of other
debt investment
3. Amount of financial assets
reclassified into other comprehensive
income
4. Provisions for credit
impairment of other debt investments
5. Cash flow hedge reserve
6. Translation difference arising
from foreign currency financial
statements
7. Others
VI. Total comprehensive incomes 2,265,317.11 4,411,892.13
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
52
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
5. Consolidated Cash Flow Statement
Unit: RMB
Item FH 2023 FH2022
I. Cash flows from operating activities:
Cash received from sales of goods or
935,209,100.94 233,540,881.93
rendering of services
Net increase in deposits from
customers and placements from banks
and other financial institutions
Net increase in borrowings from the
central bank
Net increase in placements from other
financial institutions
Cash received for receiving premium
of original insurance contract
Net cash received from reinsurance
business
Net increase in policyholders' deposits
and investments
Cash received from interest, handling
charges and commission
Net increase in placements from banks
and other financial institutions
Net increase in capital for repurchase
Net cash received from securities
trading agency services
Refund of taxes received 1,968,553.13 11,847,129.45
Other cash received relating to
167,102,933.78 95,434,828.86
operating activities
Subtotal of cash inflows from operating
1,104,280,587.85 340,822,840.24
activities
Cash paid for goods and services 865,723,685.98 173,793,008.62
Net increase in loans and advances to
customers
Net increase in deposits in the central
bank and other financial institutions
Cash paid for claim settlements on
original insurance contract
Net increase in placements from banks
and other financial institutions
Cash paid for interest, handling
charges and commission
Cash paid for policy dividends
Cash paid to and on behalf of
39,083,559.60 32,931,967.00
employees
Various taxes paid 33,660,817.78 48,368,592.66
Other cash paid relating to operating
176,054,466.39 97,047,567.37
activities
Subtotal of cash outflows from operating
1,114,522,529.75 352,141,135.65
activities
Net cash flow from operating activities -10,241,941.90 -11,318,295.41
53
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
II. Cash flow from investing activities:
Cash received from the return of
132,000,000.00 699,334,600.00
investment
Cash received from investment
21,303,117.33 21,775,312.96
income
Net cash received from the disposal of
fixed assets, intangible assets, and other 1,644,282.00 361,050.00
long-term assets
Net cash received from the disposal of
subsidiaries and other business entities
Other cash received relating to
827,883.63
investing activities
Subtotal of cash inflows from investing
155,775,282.96 721,470,962.96
activities
Cash paid to purchase fixed assets,
intangible assets, and other long-term 50,769,515.45 50,916,178.95
assets
Cash paid to acquire investments 370,000,000.00 700,000,000.00
Net increase in pledge loans
Net cash paid for acquisition of
subsidiaries and other business entities
Other cash paid relating to investing
7,567,454.81 18,669.20
activities
Subtotal of cash outflows from investing
428,336,970.26 750,934,848.15
activities
Net cash flow from investing activities -272,561,687.30 -29,463,885.19
III. Cash flow from financing activities:
Cash received from investment
absorption
Including: Cash received by
subsidiaries absorbing minority
shareholders' investments
Cash received from borrowings 175,693,122.83 34,897,377.72
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
175,693,122.83 34,897,377.72
activities
Cash paid for debt repayment 13,535,116.94 5,000,000.00
Cash paid for distribution of
3,711,261.97 11,880,454.55
dividends, profits or interest repayment
Including: cash payments for
dividends or profits to minority
shareholders of subsidiaries
Other cash paid relating to financing
5,528,844.00
activities
Subtotal of cash outflows from financing
22,775,222.91 16,880,454.55
activities
Net cash flows from financing activities 152,917,899.92 18,016,923.17
IV. Effect of exchange rate changes on
280.60
cash and cash equivalents
V. Net increase in cash and cash
-129,885,729.28 -22,764,976.83
equivalents
Add: Beginning balance of cash and
391,406,829.36 211,655,585.86
cash equivalents
VI. Ending balance of cash and cash
261,521,100.08 188,890,609.03
equivalents
54
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
6. Parent Company’s Cash Flow Statement
Unit: RMB
Item FH 2023 FH2022
I. Cash flows from operating activities:
Cash received from sales of goods or
13,832,800.09 9,407,009.79
rendering of services
Refund of taxes received 8,332,462.70
Other cash received relating to
63,832,096.54 90,848,952.57
operating activities
Subtotal of cash inflows from operating
77,664,896.63 108,588,425.06
activities
Cash paid for goods and services 2,170,256.29
Cash paid to and on behalf of
21,827,096.56 16,512,716.41
employees
Various taxes paid 4,568,154.92 1,644,445.17
Other cash paid relating to operating
9,260,460.69 11,334,575.98
activities
Subtotal of cash outflows from operating
37,825,968.46 29,491,737.56
activities
Net cash flow from operating activities 39,838,928.17 79,096,687.50
II. Cash flow from investing activities:
Cash received from the return of
137,100,000.00 550,000,000.00
investment
Cash received from investment
21,303,117.33 20,715,948.58
income
Net cash received from the disposal of
fixed assets, intangible assets, and other
long-term assets
Net cash received from the disposal of
subsidiaries and other business entities
Other cash received relating to
46,628.16
investing activities
Subtotal of cash inflows from investing
158,449,745.49 570,715,948.58
activities
Cash paid to purchase fixed assets,
intangible assets, and other long-term 50,544,766.31 50,177,507.00
assets
Cash paid to acquire investments 290,000,000.00 639,500,000.00
Net cash paid for acquisition of
subsidiaries and other business entities
Other cash paid relating to investing
activities
Subtotal of cash outflows from investing
340,544,766.31 689,677,507.00
activities
Net cash flow from investing activities -182,095,020.82 -118,961,558.42
III. Cash flow from financing activities:
Cash received from investment
absorption
Cash received from borrowings 25,693,122.83 34,897,377.72
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
25,693,122.83 34,897,377.72
activities
Cash paid for debt repayment 1,192,522.00
Cash paid for distribution of
2,711,261.96 11,880,454.55
dividends, profits or interest repayment
55
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Other cash paid relating to financing
activities
Subtotal of cash outflows from financing
3,903,783.96 11,880,454.55
activities
Net cash flows from financing activities 21,789,338.87 23,016,923.17
IV. Effect of exchange rate changes on
cash and cash equivalents
V. Net increase in cash and cash
-120,466,753.78 -16,847,947.75
equivalents
Add: Beginning balance of cash and
157,068,231.28 95,207,575.71
cash equivalents
VI. Ending balance of cash and cash
36,601,477.50 78,359,627.96
equivalents
7. Consolidated Statement of Changes in Owners' Equity
Amount in the current period
Unit: RMB
FH 2023
Owners' equity attributable to the Parent Company
Other equity Oth Tota
instruments Less er Gen Und l
Min
Item Shar Capi : com Spe Surp eral istri ority own
e Pref Perp tal Trea preh cial lus risk bute Oth Subt equi ers'
capi erre etua rese sury ensi rese rese prov d ers otal
Oth ty equi
tal d l rves shar ve rve rve isio prof
ers ty
shar bon es inco n it
es ds me
I. Ending 431, 431, 52,4 590, 1,50 150, 1,65
26,4
balance of 058, 449, 99,1 605, 5,63 588, 6,22
22.0
the previous 320. 554. 72.1 394. 8,86 880. 7,74
0
year 00 51 3 67 3.31 59 3.90
Add:
changes in
accounting
policies
Co
rrection of
prior period
errors
Bu
siness merger
under
common
control
Ot
hers
II. Beginning 431, 431, 52,4 590, 1,50 150, 1,65
26,4
balance of 058, 449, 99,1 605, 5,63 588, 6,22
22.0
the current 320. 554. 72.1 394. 8,86 880. 7,74
0
year 00 51 3 67 3.31 59 3.90
32,0 32,0 - 16,3
III.
70,3 70,3 15,6 92,9
56
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Increases/dec 29.9 29.9 77,3 32.4
reases in the 7 7 97.4 9
current 8
period
(decreases to
be listed with
"-")
44,1 44,1 45,0
(I) Total 948,
39,9 39,9 88,0
comprehensi 103.
62.9 62.9 66.4
ve income 50
3 3 3
(II) Capital - -
invested and 4,90 4,90
decreased by 0,00 0,00
owners 0.00 0.00
1. Ordinary - -
shares 4,90 4,90
contributed 0,00 0,00
by owners 0.00 0.00
2. Capital
contributed
by the
holders of
other equity
instruments
3. Amount of
share-based
payments
charged to
owners'
equity
4. Others
- - -
12,0 12,0 12,0
(III) Profit
69,6 69,6 69,6
distribution
32.9 32.9 32.9
6 6 6
1.
Withdrawal
of surplus
reserve
2.
Appropriatio
n to general
risk
provision
- - -
3.
12,0 12,0 12,0
Distribution
69,6 69,6 69,6
to owners (or
32.9 32.9 32.9
shareholders)
6 6 6
4. Others
(IV) Internal
carryover of
57
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
owners'
equity
1. Capital
reserves
converting
into paid-in
capital (or
share capital)
2. Surplus
reserve
converting
into paid-in
capital (or
share capital)
3. Recovery
of losses by
surplus
reserve
4. Retained
earnings
carried
forward from
changes in
defined
benefit plan
5. Retained
earnings
carried
forward from
other
comprehensi
ve income
6. Others
(V) Special
reserve
1.
Appropriatio
n in the
current
period
2. Use in the
current
period
- -
11,7 11,7
(VI) Others 25,5 25,5
00.9 00.9
8 8
IV. Ending 431, 431, 52,4 622, 1,53 134, 1,67
26,4
balance of 058, 449, 99,1 675, 7,70 911, 2,62
22.0
the current 320. 554. 72.1 724. 9,19 483. 0,67
0
period 00 51 3 64 3.28 11 6.39
Amount in the previous year
58
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Unit: RMB
FH2022
Owners' equity attributable to the Parent Company
Other equity Oth Tota
instruments Less er Gen Und Min l
Item Shar Capi : com Spe Surp eral istri ority own
e Pref Perp tal Trea preh cial lus risk bute Oth Subt
erre etua equi ers'
capi Oth rese sury ensi rese rese prov d ers otal ty equi
tal d l rves shar ve rve rve isio prof
ers ty
shar bon es inco n it
es ds me
I. Ending 431, 431, 26,5 543, 1,43 24,2 1,45
26,4
balance of 058, 449, 46,4 843, 2,92 65,5 7,18
22.0
the previous 320. 554. 80.0 496. 4,27 52.3 9,82
0
year 00 51 9 85 3.45 5 5.80
Add:
changes in
accounting
policies
Co
rrection of
prior period
errors
Bu
siness merger
under
common
control
Ot
hers
II. Beginning 431, 431, 26,5 543, 1,43 24,2 1,45
26,4
balance of 058, 449, 46,4 843, 2,92 65,5 7,18
22.0
the current 320. 554. 80.0 496. 4,27 52.3 9,82
0
year 00 51 9 85 3.45 5 5.80
III.
Increases/dec
reases in the 32,6 32,6 - 32,3
current 98,6 98,6 382, 15,8
period 90.4 90.4 881. 09.4
(decreases to 4 4 03 1
be listed with
"-")
43,4 43,4 - 43,0
(I) Total
80,2 80,2 382, 97,3
comprehensi
36.1 36.1 881. 55.1
ve income
9 9 03 6
(II) Capital
invested and
decreased by
owners
1. Ordinary
shares
contributed
59
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
by owners
2. Capital
contributed
by the
holders of
other equity
instruments
3. Amount of
share-based
payments
charged to
owners'
equity
4. Others
- - -
10,7 10,7 10,7
(III) Profit
81,5 81,5 81,5
distribution
45.7 45.7 45.7
5 5 5
1.
Withdrawal
of surplus
reserve
2.
Appropriatio
n to general
risk
provision
- - -
3.
10,7 10,7 10,7
Distribution
81,5 81,5 81,5
to owners (or
45.7 45.7 45.7
shareholders)
5 5 5
4. Others
(IV) Internal
carryover of
owners'
equity
1. Capital
reserves
converting
into paid-in
capital (or
share capital)
2. Surplus
reserve
converting
into paid-in
capital (or
share capital)
3. Recovery
of losses by
surplus
reserve
60
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
4. Retained
earnings
carried
forward from
changes in
defined
benefit plan
5. Retained
earnings
carried
forward from
other
comprehensi
ve income
6. Others
(V) Special
reserve
1.
Appropriatio
n in the
current
period
2. Use in the
current
period
(VI) Others
IV. Ending 431, 431, 26,5 576, 1,46 23,8 1,48
26,4
balance of 058, 449, 46,4 542, 5,62 82,6 9,50
22.0
the current 320. 554. 80.0 187. 2,96 71.3 5,63
0
period 00 51 9 29 3.89 2 5.21
8. Parent Company’s Statement of Changes in Owners' Equity
Amount in the current period
Unit: RMB
FH 2023
Other equity instruments Other
Capita Less: compr Specia Surplu Undist Total
Item Share Prefer Perpet l Treasu ehensi l s ribute owner
Others
capital red ual Others reserv ry ve reserv reserv d s'
shares bonds es shares incom e e profit equity
e
I. Ending
431,0 428,2 52,49 425,8 1,337,
balance of
58,32 56,13 9,172. 34,01 647,6
the previous
0.00 1.23 13 0.57 33.93
year
Add:
changes in
accounting
policies
Co
rrection of
61
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
prior period
errors
Ot
hers
II. Beginning
431,0 428,2 52,49 425,8 1,337,
balance of
58,32 56,13 9,172. 34,01 647,6
the current
0.00 1.23 13 0.57 33.93
year
III.
Increases/dec
reases in the - -
current 9,804, 9,804,
period 315.8 315.8
(decreases to 5 5
be listed with
"-")
(I) Total 2,265,
2,265,
comprehensi 317.1
317.11
ve income 1
(II) Capital
invested and
decreased by
owners
1. Ordinary
shares
contributed
by owners
2. Capital
contributed
by the
holders of
other equity
instruments
3. Amount of
share-based
payments
charged to
owners'
equity
4. Others
- -
(III) Profit 12,06 12,06
distribution 9,632. 9,632.
96 96
1.
Withdrawal
of surplus
reserve
2. - -
Distribution 12,06 12,06
to owners (or 9,632. 9,632.
shareholders) 96 96
3. Others
62
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
(IV) Internal
carryover of
owners'
equity
1. Capital
reserves
converting
into paid-in
capital (or
share capital)
2. Surplus
reserve
converting
into paid-in
capital (or
share capital)
3. Recovery
of losses by
surplus
reserve
4. Retained
earnings
carried
forward from
changes in
defined
benefit plan
5. Retained
earnings
carried
forward from
other
comprehensi
ve income
6. Others
(V) Special
reserve
1.
Appropriatio
n in the
current
period
2. Use in the
current
period
(VI) Others
IV. Ending
431,0 428,2 52,49 416,0 1,327,
balance of
58,32 56,13 9,172. 29,69 843,3
the current
0.00 1.23 13 4.72 18.08
period
Amount in the previous year
Unit: RMB
63
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
FH2022
Other equity instruments Other
Capita Less: compr Specia Surplu Undist Total
Item Share Prefer Perpet l Treasu ehensi l s ribute owner
Others
capital red ual Others reserv ry ve reserv reserv d s'
shares bonds es shares incom e e profit equity
e
I. Ending
431,0 428,2 26,54 203,0 1,088,
balance of
58,32 56,13 6,480. 41,32 902,2
the previous
0.00 1.23 09 7.99 59.31
year
Add:
changes in
accounting
policies
Co
rrection of
prior period
errors
Ot
hers
II. Beginning
431,0 428,2 26,54 203,0 1,088,
balance of
58,32 56,13 6,480. 41,32 902,2
the current
0.00 1.23 09 7.99 59.31
year
III.
Increases/dec
reases in the - -
current 6,369, 6,369,
period 653.6 653.6
(decreases to 2 2
be listed with
"-")
(I) Total 4,411, 4,411,
comprehensi 892.1 892.1
ve income 3 3
(II) Capital
invested and
decreased by
owners
1. Ordinary
shares
contributed
by owners
2. Capital
contributed
by the
holders of
other equity
instruments
3. Amount of
share-based
payments
64
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
charged to
owners'
equity
4. Others
- -
(III) Profit 10,78 10,78
distribution 1,545. 1,545.
75 75
1.
Withdrawal
of surplus
reserve
2. - -
Distribution 10,78 10,78
to owners (or 1,545. 1,545.
shareholders) 75 75
3. Others
(IV) Internal
carryover of
owners'
equity
1. Capital
reserves
converting
into paid-in
capital (or
share capital)
2. Surplus
reserve
converting
into paid-in
capital (or
share capital)
3. Recovery
of losses by
surplus
reserve
4. Retained
earnings
carried
forward from
changes in
defined
benefit plan
5. Retained
earnings
carried
forward from
other
comprehensi
ve income
6. Others
(V) Special
65
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
reserve
1.
Appropriatio
n in the
current
period
2. Use in the
current
period
(VI) Others
IV. Ending
431,0 428,2 26,54 196,6 1,082,
balance of
58,32 56,13 6,480. 71,67 532,6
the current
0.00 1.23 09 4.37 05.69
period
III. Company Profile
Shenzhen Tellus Holding Co., Ltd. (hereinafter referred to as "the Company") is a limited
liability company registered in Shenzhen Administration for Industry and Commerce on November
10, 1986. The Company was reorganized and established from the former Shenzhen Machinery
Industry Company with the approval of the Reply on the Reorganization of Shenzhen Machinery
Industry Company into Shenzhen Tellus Machinery Co., Ltd. (SFBF [1991] No. 1012) issued by the
General Office of Shenzhen Municipal People's Government. The Company currently holds a
business license with a unified social credit code of 91440300192192210U, with a registered capital
of RMB 431,058,320.00 and a total of 431,058,320 shares, including 392,778,320 A shares and
38,280,000 B shares without trading restrictions. The business address of the Company's headquarters
is Floors 3 and 4, Tellus Building, 2nd Shuibei Road, Luohu District, Shenzhen. The legal
representative is Fu Chunlong.
In 1993, with the approval from the Reply on the Reorganization of Shenzhen Tellus Machinery
Co., Ltd. into a Public Company Limited by Shares (SFBF [1992] No. 1850) issued by the General
Office of Shenzhen Municipal People's Government and the Reply on the Issuance of Shares by
Shenzhen Tellus Machinery Electric Co., Ltd. (SRYFZ [1993] No. 092) issued by Shenzhen Special
Economic Zone Branch of the People's Bank of China, the Company was reorganized into a public
limited liability company through an initial public offering, with a registered capital of RMB
166,880,000.00 and a total share capital of 166,880,000 shares. 120,900,000 shares were converted
from former assets, 25,980,000 were issued as A shares and 20,000,000 were issued as B shares.
66
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Shares issued by the Company had a par value of RMB 1 per share. On June 21, 1993, the Company's
shares were listed and traded on the Shenzhen Stock Exchange.
According to the resolution of the Company's 1993 Annual General Meeting of Shareholders,
based on the share capital of 166,880,000 shares as of December 31 of that year, the Company
distributed a cash dividend of RMB 0.5 and issued 2 bonus shares to all shareholders for every 10
shares held, totaling 33,376,000 shares, which was implemented in 1994. After the share dividend,
the registered capital was increased to RMB 200,256,000.00.
According to the resolution of the Company's 1994 annual general meeting of shareholders,
based on the share capital of 200,256,000 shares as of December 31 of that year, the Company
distributed a cash dividend of RMB 0.5 and issued 0.5 bonus shares to all shareholders for every 10
shares held, with 0.5 additional shares, totaling 20,025,600 shares, which was implemented in 1995.
The registered capital was increased to RMB 220,281,600.00 after the share dividend and transfer.
According to the resolution of the fourth extraordinary general meeting of shareholders of the
Company in 2014, upon the approval of the Reply to the Approval of Non-public Offering of Shares
by Shenzhen Tellus Holding Co., Ltd. (ZJXK [2015] No.173) issued by the China Securities
Regulatory Commission, the Company issued 77,000,000 ordinary A shares to Shenzhen Special
Economic Zone Development Group Co., Ltd. and Shenzhen Capital Fortune Jewelry Industry
Investment Enterprise (Limited Partnership) in 2015. After the issuance, the registered capital was
increased to RMB 297,281,600.00.
According to the resolution of the Company's 2018 annual general meeting of shareholders,
based on the share capital of 297,281,600 shares as of December 31 of that year, the Company
increased 4.5 shares for every 10 shares to all shareholders with capital reserves, totaling 133,776,720
shares, which were implemented in 2019. After the transfer, the registered capital was increased to
RMB 431,058,320.00.
The Company's main business activities are automobile sales, automobile maintenance and testing, jewelry
operation, property leasing and services, etc.
Shareholding
S/N Full name of subsidiary Abbreviation of subsidiary
proportion %
67
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Direct Indirect
Shenzhen Tellus Xinyongtong Automobile Xinyongtong Automobile
1 5 95
Development Co., Ltd. Development Co.
2 Shenzhen Bao'an Shiquan Industry Co., Ltd. Bao'an Shiquan Company 100
3 Shenzhen SDG Tellus Real Estate Co., Ltd. Tellus Real Estate Company 100
Shenzhen Tellus Chuangying Technology
4 Chuangying company 100
Co., Ltd.
Shenzhen Xinyongtong Motor Vehicle
5 Testing Equipment Company 51
Inspection Equipment Co., Ltd.
Shenzhen Automobile Industry and Trade Automobile Industry and
6 100
Co., Ltd. Trade Company
Shenzhen Automobile Industry Supply and Automobile Supply and
7 100
Marketing Company Marketing Company
8 Shenzhen Zhongtian Industry Co., Ltd. Zhongtian Company 100
Shenzhen Huari Toyota Sales & Service Co.,
9 Huari Toyota 60
Ltd.
Shenzhen Tellus Treasury Supply Chain Treasury Supply Chain
10 100
Tech Co., Ltd. Company
11 Shenzhen Jewelry Industry Service Co., Ltd. Shenzhen Jewelry Company 65
12 Shanghai Fanyue Diamond Co., Ltd. Shanghai Fanyue 100
13 Guorun Gold Shenzhen Co., Ltd. Guorun Gold 36 5
IV. Basis for Preparation of the Financial Statements
1. Basis
The Company has prepared its financial statements on a going-concern basis and in accordance
with the actual transactions and items, and recognition and measurement under provisions of ASBE
(Accounting Standards for Business Enterprises) and their application guidelines and interpretations.
In addition, the Company also disclosed relevant financial information in accordance with the Rules
for the Preparation of Information Disclosure of Companies Issuing Securities to the Public No.15 -
General Provisions on Financial Reports (revised in 2014) issued by the CSRC.
68
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
2. Going concern
The Company evaluated its ability to continue as a going concern for the 12 months from the
end of the reporting period, and no events affecting the going concern of the Company. It is believed
reasonable that the Company's financial statements have been prepared based on going concern.
V. Significant Accounting Policies and Accounting Estimates
Notes to specific accounting policies and accounting estimates:
None
1. Statement of compliance with Accounting Standards for Business Enterprises
The financial statements prepared by the Company conform to the requirements of the
Accounting Standards for Business Enterprises and truly and completely reflect the Company's
financial position, operating results, changes in owners' equity, cash flows and other relevant
information.
2. Accounting period
The accounting year of the Company is from January 1 to December 31.
3. Business cycle
The normal operating cycle of the Company is one year.
4. Bookkeeping base currency
The Company's bookkeeping currency is RMB.
5. Accounting treatment method for business merger under common control and not under common
control
(1) Business merger under common control
The assets and liabilities obtained by the Company in business merger shall be calculated based
on the book value of the merged party gained by the ultimate controlling party in its consolidated
69
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
financial statements on the merger date. Where the accounting policies adopted by the merged party
and the Company before the business merger are different, the accounting policies shall be adjusted
based on the principle of materiality, that is, the book value of the assets and liabilities of the merged
party shall be adjusted in accordance with the accounting policies of the Company. If there is a
difference between the book value of the net assets obtained by the Company in the business merger
and the book value of the consideration paid, the capital reserves (capital premium or share premium)
shall be adjusted first. If the balance of the capital reserve (capital premium or share premium) is
insufficient to be offset, the surplus reserve and undistributed profits shall be offset in turn.
See Note V. 6(6) for the accounting treatment method for business merger under common
control realized through step-by-step transactions.
(2) Business merger not under common control
The identifiable assets and liabilities of the acquiree acquired by the Company in a business
merger shall be measured at their fair values on the acquisition date. Where the accounting policies
adopted by the acquiree and the Company before the business merger are different, the accounting
policies shall be unified based on the principle of materiality, that is, the book value of the assets and
liabilities of the acquiree shall be adjusted in accordance with the accounting policies of the Company.
The difference between the merger costs of the Company on the acquisition date and the fair value of
the identifiable assets and liabilities obtained from the acquiree in the business merger is recognized
as goodwill. If the merger cost is less than the difference of the fair value of the identifiable assets
and liabilities acquired from the acquiree in the business merger, the merger cost and the fair value
of the identifiable assets and liabilities of the acquiree obtained in the business merger shall be
reviewed first. If the merger cost is still less than the fair value of the identifiable assets and liabilities
obtained from the acquiree after review, the difference shall be recognized as the current profits and
losses of the merger.
See Note V. 6(6) for the accounting treatment method for business merger under different control
realized through step-by-step transactions.
(3) Disposal of related handling charges for business merger
70
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Intermediation costs such as audit, legal service and assessment and consultation and other
administrative expenses incurred shall be included in the current profits and losses when incurred
during the business merger. The transaction expenses of equity securities or debt securities issued as
merger consideration shall be included in the initially recognized amount of equity securities or debt
securities.
6. Preparation methods of consolidated financial statements
(1) Determination of consolidation scope
The scope of consolidation of consolidated financial statements shall be defined on the basis of
control, including not only subsidiaries defined according to voting rights (or similar voting rights)
themselves or in combination with other arrangements, but also structured entities defined based on
one or more contractual arrangements.
Control refers to the power of the Company over the investee, and the investor can enjoy variable
returns through participating in related activities of the investee and is able to influence its amount of
return with the power over the investee. Subsidiaries refer to the entities controlled by the Company
(including the divisible parts of enterprises and investees, and structured entities controlled by
enterprises). Structured entities refer to entities designed without taking voting rights or similar rights
as decisive factors when determining their controllers (Note: they are sometimes referred to as special
purpose entities).
(2) Special provisions on the parent company being the investment entity
If the parent company is an investment entity, only those subsidiaries that provide relevant
services for the investment activities of the investment entity shall be included in the scope of
consolidation, and other subsidiaries shall not be consolidated. The equity investors of the subsidiaries
that are not included in the scope of consolidation shall be recognized as financial assets at fair value
through profit or loss.
When the parent company meets the following conditions at the same time, the parent company
belongs to the investment entity:
71
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
① The entity obtains funds from one or more investors for the purpose of providing investment
management services to investors.
② The entity's sole objective of operation is to provide a return to the investors through capital
appreciation, investment income or both.
③ The entity considers and evaluates the performance of almost all investments at fair value.
When the parent company changes from a non-investment entity to an investment entity, except
that only the subsidiaries that provide relevant services for its investment activities are included in
the consolidated financial statements for preparation of consolidated financial statements, other
subsidiaries will not be consolidated by the entity from the date of change, and treatment will be
conducted according to the principle of partially disposing of the subsidiary's equity without losing
control.
When the parent company changes from an investment entity to a non-investment entity, the
subsidiaries that are not originally included in the scope of the consolidated financial statements shall
be included in the scope of the consolidated financial statements on the date of change, and the fair
value of the subsidiaries that are not originally included in the scope of the consolidated financial
statements on the date of change shall be regarded as the transaction consideration for acquisition, in
accordance with the accounting treatment method of business merger not under common control.
(3) Preparation methods of consolidated financial statements
The Company prepares the consolidated financial statements based on the financial statements
of itself and all its subsidiaries and in accordance with other relevant materials.
The Company prepares the consolidated financial statements by taking the entire group as an
accounting entity in accordance with the requirements for recognition, measurement and presentation
in relevant accounting standards for business enterprises, and the unified accounting policies and
accounting periods, with the aim of reflecting the overall financial positions, operating results and
cash flows of the enterprise group.
72
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
① Consolidate assets, liabilities, owner's equity, revenue, expenses, cash flows and other items
of the parent company and subsidiaries.
② Offset long-term equity investment of the parent company to the subsidiaries and the parent
company’s share in the owners’ equity of subsidiaries.
③ Offset the impact of internal transactions between the parent company and its subsidiaries
and between subsidiaries. If internal transactions indicate relevant assets have suffered impairment
loss, the loss shall be recognized in full.
④ Adjust the special transactions from the perspective of the enterprise group.
(4) Treatment of increase/decrease in subsidiaries during the reporting period
① Increase of subsidiaries or business
A. Subsidiaries or businesses increased due to business merger under common control
(a) When preparing the consolidated balance sheet, the opening amount of the consolidated
balance sheet shall be adjusted, and the relevant items of the comparative statements shall be adjusted
at the same time. It shall be deemed that the consolidated reporting entity has always existed since
the time point when the ultimate controlling party starts to control.
(b) When preparing the consolidated income statement, the revenue, expenses and profits of the
subsidiary and the business merger from the beginning of the current period to the end of the reporting
period shall be included in the consolidated income statement, and the relevant items of the
comparative statements shall be adjusted at the same time. It shall be deemed that the consolidated
reporting entity has always existed since the time point when the ultimate controlling party begins to
control.
(c) When preparing the consolidated cash flow statement, the cash flows of the subsidiary and
the business from the beginning of the current period to the end of the reporting period are included
in the consolidated cash flow statement. At the same time, the relevant items of the comparative
73
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
statements are adjusted. It is deemed that the consolidated reporting entity has always existed since
the time point when the ultimate controlling party begins to control.
B. Subsidiaries or businesses increased due to business merger not under common control
(a) In preparing the consolidated balance sheet, the beginning amounts of the consolidated
balance sheet are not adjusted.
(b) When preparing the consolidated income statement, the revenue, expenses and profits of the
subsidiary and the business from the acquisition date to the end of the reporting period shall be
included into the consolidated income statement.
(c) When the consolidated statement of cash flows is prepared, the cash flows of the subsidiary
from the acquisition date to the end of the reporting period shall be included in the consolidated
statement of cash flow.
② Disposal of subsidiaries or business
A. In preparing the consolidated balance sheet, the beginning amounts of the consolidated
balance sheet are not adjusted.
B. When preparing the consolidated income statement, the revenue, expenses and profits of the
subsidiary and the business from the beginning of the period to the disposal date shall be included in
the consolidated income statement.
C. When preparing the consolidated cash flow statement, the cash flows of the subsidiaries and
the business from the beginning of the period to the disposal date shall be included in the consolidated
cash flow statement.
(5) Special considerations in the consolidated offset
① Long-term equity investment of the Company held by subsidiaries should be treated as the
treasury shares of the Company and deduction item of owners’ equity and listed as "Less: treasury
shares" under owners’ equity in the consolidated balance sheet.
74
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
For the long-term equity investments held by subsidiaries, the long-term equity investment and
the share of the owner's equity of the corresponding subsidiary shall be offset with each other by
reference to the offset method of the Company's equity investment in subsidiary.
② Since the items of "special reserve" and "general risk reserve" are neither paid-in capital (or
share capital) nor capital reserves, nor the same as retained earnings and undistributed profits, they
shall be restored according to the share attributable to owners of the parent company after the long-
term equity investments offset each other with the owners' equity of the subsidiaries.
③ Where there is a temporary difference between the book value of assets and liabilities in the
consolidated balance sheet and the tax base of the taxable entity to which they belong due to the offset
of unrealized gains and losses from internal sales, the deferred tax assets or deferred tax liabilities
shall be recognized in the consolidated balance sheet, and the income tax expenses in the consolidated
income statement shall be adjusted at the same time, except for the deferred tax related to transactions
or events directly included in owners' equity and business merger.
④ The gains and losses from unrealized internal transactions arising from the sale of assets by
the Company to subsidiaries shall fully offset the "net profit attributable to owners of the parent
company". The unrealized gains and losses from internal transactions arising from the sale of assets
by subsidiaries to the Company shall be allocated and offset between the "net profit attributable to
owners of the parent company" and the "minority interest income" according to the distribution
proportion of the Company to subsidiaries. The unrealized gains and losses from internal transactions
arising from the sale of assets between subsidiaries shall be allocated and offset between the "net
profit attributable to owners of the parent company" and the "minority interest income" according to
the distribution proportion of the Company to the selling subsidiary.
⑤ Where the current losses shared by minority shareholders of a subsidiary exceed the shares
enjoyed by minority shareholders in the owners' equity of the subsidiary at the beginning of the period,
the balance shall still offset the minority equity.
(6) Accounting treatment for special transactions
75
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
① Purchasing minority shareholders' equity
Where the Company purchases the equity of a subsidiary owned by minority shareholders of the
subsidiary, in the individual financial statements, the investment cost of the long-term equity
investment newly acquired for the purchase of minority equity is measured at the fair value of the
consideration paid. In the consolidated financial statements, the capital reserves (capital premium or
share premium) shall be adjusted according to the difference between the long-term equity investment
newly acquired for the purchase of minority equities and the share of net assets of the subsidiary
calculated continuously from the acquisition date or merger date according to the newly increased
shareholding ratio. If the capital reserves are insufficient to be offset, the surplus reserve and
undistributed profits shall be offset in turn.
② Acquisition of control of subsidiaries step by step through multiple transactions
A. Business merger under common control realized step-by-step through multiple transactions
On the merger date, in the individual financial statements of the Company, the initial investment
cost of the long-term equity investment is determined according to the share of the book value of the
net assets of the subsidiary that shall be enjoyed after the merger in the consolidated financial
statements of the ultimate controlling party; Capital reserves (capital premium or share premium)
shall be adjusted according to the difference between the initial investment cost and the sum of the
book value of the long-term equity investment before the merger and the book value of the
consideration paid for further shares on the merger date. If the capital reserves (capital premium or
stock premium) are insufficient to be offset, the surplus reserves and undistributed profits shall be
offset in turn.
In the consolidated financial statements, except for the adjustment made according to the
accounting policies, the assets and liabilities of the merged party obtained by the merging party shall
be measured according to the book value on the merger date in the consolidated financial statements
of the ultimate controlling party. According to the difference between the sum of the book value of
holding investment before merger and the book value of newly paid consideration on the merger date
and the book value of net assets obtained by merging, the capital reserves (share premium/capital
76
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
premium) shall be adjusted; if the capital reserves are not sufficient for offset, the retained earnings
may be adjusted.
For the equity investment held by the merging party before obtaining the control of the merged
party and accounted for under the equity method, the relevant profit and loss, other comprehensive
income and other changes in owners' equity that have been recognized between the later of the date
of acquisition of the original equity and the date when the merging party and the merged party are
under the final control of the same party and the merger date shall be offset against the retained
earnings at the beginning of the comparative statement period.
B. Business merger not under common control realized step-by-step through multiple
transactions
On the merger date, in the individual financial statements, the sum of the book value of the long-
term equity investment originally held and the newly increased investment costs on the merger date
shall be recognized as the initial investment cost of the long-term investment in equity on the merger
date.
In the consolidated financial statements, the acquiree's equity held before the acquisition date is
re-measured at the fair value of the equity at the acquisition date, and the difference between the fair
value and its book value is included in the current investment income. Where the acquiree's equity
held before the acquisition date is related to any other comprehensive income under the equity method,
other comprehensive income related thereto shall be transferred to the current income corresponding
to the acquisition date, excluding other comprehensive income resulting from changes in net liabilities
or net assets arising from the defined benefit plan through the re-measurement on the merged party.
In the notes, the Company discloses the fair value of the acquiree's equity held by it before the
acquisition date on the acquisition date and the amount of relevant gains or losses arising from the
re-measurement at fair value
③ The Company's disposal of long-term equity investments in subsidiaries without loss of
control
77
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
For partial disposal of long-term equity investment in a subsidiary by the parent company
without loss of control, in the consolidated financial statements, the capital reserves (capital premium
or share premium) shall be adjusted by the difference between the disposal price and the share of net
assets of the subsidiary that would continue to be calculated from the acquisition date or the merger
date corresponding to the disposal of the long-term equity investment, or if the capital reserves are
insufficient to be written down, the retained earnings shall be adjusted.
④ The Company's disposal of long-term equity investments in subsidiaries with the loss of
control
A. Disposal with a single transaction
In the event that the Company losses the right of control over an investee due to disposal of
partial equity investments or other reasons, in the preparation of consolidated financial statements,
the residual equity interest shall be measured again according to its fair value on the day when the
Company loses the right of control. The difference by using the sum of value received from the
disposal of equity and fair value of the residual equity to deduct share in net assets continually counted
from the acquisition date or merger date of the original subsidiary (calculated as per original share
proportion) shall be recorded in the investment income of the current period without the right of
control.
Other comprehensive income and other changes in owners' equity related to the equity
investment of the original subsidiary shall be transferred to the current profits and losses when the
control right is lost, except for other comprehensive income arising from the re-measurement of net
liabilities or net assets of the defined benefit plan by the investee.
B. Step-by-step disposal through multiple transactions
Determine whether the step-by-step transaction belongs to "a package deal" in consolidated
financial statements first.
78
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
If the step-by-step transaction does not belong to a "package deal", in the individual financial
statements, the book value of the long-term equity investment corresponding to each disposal of
equity shall be carried forward for each transaction before the loss of control of the subsidiary, and
the difference between the proceeds and the book value of the disposal of the long-term equity
investment shall be included in the current investment income; In the consolidated financial
statements, it shall be treated in accordance with the relevant provisions stating that "the parent
company's disposal of long-term equity investments in subsidiaries without loss of control".
If a step-by-step transaction belongs to a "package deal", each transaction shall be accounted for
as a transaction that disposes of subsidiaries and loses control; In the individual financial statements,
the difference between each disposal price before the loss of control and the book value of the long-
term equity investment corresponding to the equity disposed of shall be recognized as other
comprehensive income first, and then transferred to the current profits and losses on the loss of control
when the control is lost; In the consolidated financial statements, for each transaction before the loss
of control, the difference between the disposal price and the share of net assets of the subsidiary
corresponding to the disposal of investment shall be recognized as other comprehensive income, and
shall be transferred to the current profits and losses when the control is lost.
Where the terms, conditions and economic impact of various transactions meet one or more of
the following circumstances, multiple transactions are generally accounted for as a "package deal":
(a) These transactions are concluded simultaneously or in consideration of mutual influence.
(b) These transactions can achieve a complete commercial result only when they are treated as
a whole.
(c) The occurrence of one transaction depends on the occurrence of at least one other transaction.
(d) A transaction is uneconomical on its own, but is economical when considered together with
other transactions.
79
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
⑤ Dilution of equity ratio owned by the parent company due to the capital increase of minority
shareholders of the subsidiary
Other shareholders (minority shareholders) of the subsidiary increase the capital of the
subsidiary, thereby diluting the proportion of the parent company's equity in the branch. In the
consolidated financial statements, its share in the book net assets of the subsidiary before the capital
increase is calculated according to the shareholding ratio of the parent company before the capital
increase. The capital reserves (capital premium or share premium) are adjusted according to the
difference between the share and share of book net assets of the subsidiaries after the capital increase
calculated according to the shareholdings ratio of the parent company after the capital increase. If the
capital reserves (capital premiums or share premiums) are insufficient to be offset, the retained
earnings are adjusted.
7. Classification of joint arrangements and accounting treatment methods for joint operations
Joint arrangement refers to an arrangement jointly controlled by two or more participants. Joint
arrangement of the Company can be classified into joint operations and joint ventures.
(1) Joint operation
Joint operation refers to a joint arrangement in which the Company enjoys assets related to the
arrangement and bears liabilities related to the arrangement.
The Company recognizes the following items related to the Company among the interest shares
of joint operation, and performs accounting treatment in accordance with relevant regulations of
ASBE:
① Recognizing the assets held solely and the assets held jointly identified as per its shares;
② Recognizing the liabilities held solely and the liabilities held jointly identified as per its shares;
③ Recognizing the revenue generated from the sale of shares enjoyed in the joint operations;
④ Recognizing the revenue generated from the sale of joint operation output as per its shares;
80
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
⑤ Recognizing the expenses incurred separately and the expenses arising from joint operation
as per its shares.
(2) Joint ventures
Joint venture refers to a joint arrangement in which the Company only has rights over the net
assets of the arrangement.
The Company carries out accounting treatment for investment in joint ventures according to the
provisions on equity method accounting of long-term equity investments.
8. Standards for defining cash and cash equivalents
Cash comprises cash on hand and deposits that can be readily drawn on demand. The cash
equivalents are recognized as an investment that is short-term (generally due within three months
from the acquisition date), highly liquid and readily convertible to a known amount of cash, and has
an insignificant risk of changes in value.
9. Foreign currency transaction and foreign currency statement translation
(1) Recognition method of exchange rate upon the translations of foreign currency
transactions
At the time of initial recognition, foreign currency transactions of the Company shall be
translated into bookkeeping base currency at the spot exchange rate on the transaction date or at an
exchange rate determined by a systematic and reasonable method that is similar to the spot exchange
rate on the transaction date (hereinafter referred to as the approximate exchange rate of the spot
exchange rate).
(2) Translation method of foreign currency monetary items on the balance sheet date
The foreign currency monetary items are translated based on the spot exchange rate on the
balance sheet date. Foreign exchange differences arising from the difference between the prevailing
exchange rate on that date and the prevailing exchange rate on initial recognition or on the previous
81
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
balance sheet date are recognized in current profits and losses. Foreign currency non-monetary items
measured at historical cost are still converted as per the spot exchange rate on the transaction date;
the foreign currency non-monetary items measured at fair value are converted as per the spot
exchange rate on the date of fair value determination, and the difference between the converted
bookkeeping base currency amount and the original bookkeeping base currency amount is included
in the current profits and losses.
10. Financial instruments
Financial instruments refer to contracts that form the financial assets of one party and financial
liabilities or equity instruments of other parties.
(1) Recognition and derecognition of financial instruments
When the Company becomes a party to the contract of financial instruments, relevant financial
assets or financial liabilities are recognized.
A financial asset is derecognized if it meets one of the following conditions:
① The contractual right to receive cash flow from the financial asset is terminated;
② The financial asset has been transferred, and is in accordance with the following conditions
for derecognition.
Under the circumstance that the current obligation of the financial liabilities in whole (or
partially) has been relieved, the Company will derecognize the financial liabilities in whole (or
partially). The Company (the Borrower) and the Lender sign an agreement in which the original
financial liabilities are replaced by undertaking new financial liabilities; The contract terms of new
financial liabilities and those of original financial liabilities are different in essence. Therefore, the
original financial liabilities shall be derecognized, while the new financial liabilities shall be
recognized. If the Company makes any substantial modification to the contract terms of the original
financial liabilities in whole (or partially), the original financial liabilities shall be derecognized and
one new financial liability shall be recognized in accordance with the modified terms.
82
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Financial assets sold and bought in a conventional way are subject to accounting recognition and
derecognition at the transaction date. Buying and selling financial assets in a conventional way refers
to the delivery of financial assets according to the time arrangement prescribed by the terms of the
contract, and the laws, regulations or market practices. The transaction date is the date when the
Company makes commitments to buy or sell the financial assets.
(2) Classification and measurement of financial assets
During the initial recognition, according to the business mode of financial assets management
and the contractual cash flow characteristics of financial assets, the Company classifies financial
assets into financial assets at amortized cost, financial assets at fair value through profit or loss, and
financial assets at fair value through other comprehensive income. Financial assets shall not be
reclassified after initial recognition unless the Company changes its business model for managing
financial assets, in which case all affected related financial assets are reclassified on the first day of
the first reporting period following the change in the business model.
Financial assets are measured at fair value upon initial recognition. For financial assets at fair
value through profit or loss, related transaction expenses shall be directly included in the current
profits and losses; the related transaction expenses of other financial assets shall be included in the
initially recognized amount. Notes receivable and accounts receivable arising from sales of goods or
provision of labor services that do not include or consider significant financing components are
initially measured by the Company according to the transaction price defined in the revenue standards.
Subsequent measurement of financial assets depends on their classification:
① Financial assets at amortized cost
Where the financial assets meet all the following conditions, they will be classified as financial
assets at amortized cost. The business mode of the Company for managing such financial assets is to
collect contractual cash flow. The contract of such financial assets specifies that the cash flow
generated at a particular date is only for the payment of principal and interest based on the amount of
outstanding principal. Such financial assets are measured subsequently by the effective interest
83
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
method and based on the amortized cost, and all profit or loss due to derecognition, impairment, or
amortization as per effective interest method are included in the current profits and losses.
② Financial assets at fair value through other comprehensive income
Where the financial assets meet all the following conditions, they will be classified as financial
assets at fair value through other comprehensive income. The business mode of the Company for
managing such financial assets is to collect contractual cash flows and to sell the financial assets. The
contract of such financial assets specifies that the cash flows generated at a particular date are only
for the payment of principal and interest based on the amount of outstanding principal. For such
financial assets, subsequent measurement shall be based on fair value. Except that the impairment
gain or loss and the exchange gain or loss are recognized as current profits and losses, changes in fair
value of such financial assets are recognized as the other comprehensive income, and the accumulated
profit or loss are transferred into current profits and losses until the financial assets are derecognized.
However, the relevant interest revenue from the financial assets calculated by the effective interest
method is included in the current profits and losses.
The Company irrevocably chooses to designate some non-trading equity instrument investments
as financial assets at fair value through other comprehensive income, and only includes the relevant
dividend revenue in the current profits and losses. The changes in fair value are recognized as other
comprehensive income and, until the derecognition of such financial assets, the accumulated profit
or loss is transferred into the retained earnings.
③ Financial assets at fair value through profit or loss
The financial assets other than the above financial assets at amortized cost and financial assets
at fair value through other comprehensive income will be classified into the financial assets at fair
value through profit or loss. Such financial assets are subsequently measured at the fair value and the
changes in fair value are included in current profits and losses.
(3) Classification and measurement of financial liabilities
84
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
The Company classifies financial liabilities into the financial liabilities at fair value through
profit or loss, the loan commitment and liabilities under financial guarantee contract with an interest
rate lower than the market interest rate and the financial liabilities at amortized cost.
Subsequent measurement of financial liabilities depends on their classification:
① Financial liabilities at fair value through profit or loss
These financial liabilities include trading financial liabilities (including derivative instruments
classified as financial liabilities) and financial liabilities designated as at fair value through profit or
loss. After the initial recognition, such financial liabilities are subsequently measured at fair value.
Unless related to the hedge accounting, the profit or loss (including interest expenses) generated is
included in current profits and losses. However, for designated financial liabilities at fair value
through profit or loss by the Company, the changes in fair value of such financial liabilities caused
by changes in the credit risk. Upon the derecognition of such financial liabilities, the accumulated
profit or loss previously included in other comprehensive income shall be transferred out from other
comprehensive income and included in retained earnings.
② Loan commitment and liabilities under financial guarantee contract
Loan commitment is a commitment provided by the Company to the client to issue a loan to the
client under the established contract terms within the commitment period. For the loan commitment,
the impairment loss shall be withdrawn according to the expected credit loss model.
A financial guarantee contract is a contract in which the Company is required to pay a specified
amount of money to the contract holder who has suffered a loss because the specific debtor failed to
make due payment of debts in accordance with the original or modified terms for debt instruments.
The liabilities under financial guarantee contract are subsequently measured according to the amount
of the provision for loss recognized according to the impairment principle for financial instruments
or the balance of initially recognized amount after deducting the accumulated amortized amount
recognized according to the revenue confirmation principles, whichever is lower.
85
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
③ Financial liabilities at amortized cost
After the initial recognition, other financial liabilities are measured by the effective interest
method based on the amortized cost.
Except for special circumstances, financial liabilities and equity instruments are distinguished
according to the following principles:
① If the Company fails to unconditionally perform one contractual obligation by delivering cash
or other financial assets, the contractual obligation satisfies the definition of financial liability. While
some financial instruments do not expressly include the terms and conditions for the obligation to
deliver cash or other financial assets, it is possible to form contractual obligations indirectly through
other terms and conditions.
② If one financial instrument must or can be settled by the Company’s own equity instrument,
the Company’s own equity instrument used for settling such instrument shall be considered as a
substitute of cash or other financial assets, or as residual equity in the issuer’s assets that the
instrument holder enjoys after deducting all the liabilities. If it is the former one, the instrument is
then the financial liabilities of the issuer. If it is the latter, the instrument is then the equity instrument
of the issuer. Under certain circumstances, a financial instrument contract requires that the Company
must or may settle the financial instrument with its own equity instruments, where the amount of
contractual rights or contractual obligations is equal to the number of own equity instruments
available or to be delivered multiplied by the fair value upon its settlement. In this case, regardless of
whether the amount of the contractual right or obligation is a fixed value or changes based in whole
or in part on changes in variables other than the market price of the Company's own equity instrument
(such as interest rates, the price of a good or the price of a financial instrument), the contract is
classified as financial liabilities.
(4) Derivative financial instruments and embedded derivative instruments
Derivative financial instruments are initially measured at the fair value on the date when the
derivative deal contract is signed, and subsequently measured at fair value. Derivative financial
86
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
instruments with positive fair value are recognized as an asset, and derivative financial instruments
with negative fair value are recognized as a debt.
Except that the cash flow hedge belonging to the effective part of the hedge is included in other
comprehensive income and transferred out and included in the current profits and losses, the gain or
loss incurred by the changes in fair value of derivative instruments are directly included in current
profits and losses.
For hybrid instruments containing embedded derivative instruments, if the main contract is
financial assets, the relevant provisions of financial asset classification shall apply to the hybrid
instruments as a whole. Where the main contract is not for financial assets and such hybrid
instruments are not subject to the accounting treatment at fair value through profit or loss, if the
embedded derivative instruments are not closely related to the main contract in terms of economic
characteristics and risks, the conditions of the hybrid instruments match the conditions of embedded
derivative instruments, and the instruments existing solely conform to definition of derivative
instrument, the embedded derivative instruments shall be separated from the hybrid instruments and
disposed as separate derivative financial instruments. If the fair value of such embedded derivative
instruments on the acquisition date or subsequent balance sheet date cannot be separately measured,
the hybrid instruments shall be wholly designated as financial assets or financial liabilities at fair
value through profit or loss.
(5) Impairment of financial instruments
For the financial assets at amortized cost and the creditor's rights investment, contract assets,
rental receivables, loan commitments and financial guarantee contracts at fair value through other
comprehensive income, the Company recognizes the provision for loss on the basis of expected credit
loss.
① Measurement of expected credit loss
The expected credit loss refers to the weighted average of the credit losses of financial
instruments that are weighted by the risk of default. Credit loss refers to the difference between all
87
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
contractual cash flows receivable according to the contract and discounted according to the original
effective interest rate and all cash flows receivable of the Company, that is, the present value of all
cash shortages. The financial assets that are purchased or derived by the Company and subject to
credit impairment shall be discounted on the basis of the credit-adjusted actual interest rate of the
financial assets.
The expected credit loss during the whole duration refers to the expected credit loss caused by
all possible default events during the whole expected duration of financial instruments.
The expected credit loss in the next 12 months refers to the expected credit loss caused by the
possible default events of financial instruments within 12 months after the balance sheet date (or, if
the expected duration of financial instruments is less than 12 months, the expected duration), which
is part of the expected credit loss in the whole duration.
On each balance sheet date, the Company separately measures the expected credit losses of
financial instruments at different stages. If the credit risk of financial instruments has not increased
significantly since the initial recognition, it is in the first stage. The Company will measure the
provision for loss according to the expected credit loss in the next 12 months. If the credit risk of
financial instruments has increased significantly since its initial recognition but no credit impairment
has occurred, it is in the second stage, and the Company measures the provision for loss according to
the lifetime expected credit loss of the instrument. If financial instruments have suffered credit
impairment since their initial recognition, it is in the third stage, and the Company measures the
provision for loss according to the lifetime expected credit loss of the instrument.
For financial instruments with low credit risk on the balance sheet date, the Company assumes
that the credit risk has not increased significantly since the initial recognition, and measures the
provision for loss according to the expected credit loss in the next 12 months.
For financial instruments in the first and second stages and with low credit risk, the Company
calculates interest revenue according to the book balance before deducting provision for impairment
and the actual interest rate. For financial instruments in the third stage, interest revenue is calculated
88
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
according to their book balance minus the amortized cost for which impairment provision has been
made and the effective interest rate.
For notes receivable, accounts receivable, receivables financing and contract assets, regardless
of whether there is any significant financing component, the Company measures the provision for
losses based on expected credit losses over the whole duration.
A. Receivables/contract assets
For notes receivable, accounts receivable, other receivables, receivables financing, contract
assets and long-term receivables with objective evidence showing impairment and other accounts
receivable suitable for single evaluation, impairment test shall be conducted separately to recognize
expected credit loss and accrue single provision for impairment. For notes receivable, accounts
receivable, other receivables, receivables financing, contract assets and long-term receivables without
objective evidence of impairment or when information of the expected credit loss for a single financial
asset cannot be evaluated at a reasonable cost, the Company divides the notes receivable, accounts
receivable, other receivables, receivables financing, contract assets and long-term receivables into
several portfolios according to the credit risk characteristics, calculates the expected credit loss on
the basis of the portfolios, and determines the portfolio on the following basis:
Basis for portfolio determination of notes receivable:
Notes receivable portfolio 1 - commercial acceptance bill
Notes receivable portfolio 2 - bank acceptance bill
For notes receivable divided into portfolios, the Company refers to the historical credit loss
experience, combines the current situation with the forecast of the future economic situation, and
calculates the expected credit loss through default risk exposure and the expected credit loss rate for
the whole duration.
Basis for portfolio determination of accounts receivable:
89
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Accounts receivable portfolio 1 - aging portfolio
Accounts receivable portfolio 2 - jewelry sales business portfolio
For the accounts receivable divided into portfolios, the Company refers to the historical credit
loss experience, combines the current situation with the forecast of the future economic situation,
formulates the comparison table of aging of accounts receivable and the lifetime expected credit loss
rate, and calculates the expected credit loss.
Basis for portfolio determination of other receivables:
Basis for portfolio determination of other receivables:
Other receivables portfolio 1 - interest receivable
Other receivables portfolio 2 - dividends receivable
Other receivables portfolio 3 - aging portfolio
Other receivables portfolio 4 - deposit receivable and security portfolio
Other receivables portfolio 5 - portfolio of concerned intercourse funds within the consolidation
scope of receivables
For other receivables divided into portfolios, the Company refers to the historical credit loss
experience, combines the current situation with the forecast of the future economic situation, and
calculates the expected credit loss through default risk exposure and the expected credit loss rate in
the next 12 months or for the whole duration.
Basis for portfolio determination of long-term receivables:
Long-term receivables portfolio 1 - other receivables
For long-term receivables divided into portfolio 1, the Company refers to the historical credit
loss experience, combines the current situation with the forecast of the future economic situation, and
90
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
calculates the expected credit loss through default risk exposure and the expected credit loss rate for
the whole duration.
B. Creditor's rights investment and other creditor's rights investment
For debt instruments and investments in other debentures, the Company calculates the expected
credit loss according to the nature of the investment and various types of counterparty and risk
exposure through default risk exposure and the expected credit loss rate within the next 12 months or
the whole duration.
② Rather low credit risk
If the default risk of a financial instrument is rather low, the borrower has a strong ability to
fulfill its contractual cash flow obligations in a short period and, even if there are adverse changes in
the economic situation and operating environment for a long period of time, it may not necessarily
for the borrower to reduce the ability to fulfill its contractual cash flow obligations, the financial
instrument shall be considered to have a low credit risk.
③ Significant increase in credit risk
The Company compares the default probability of financial instruments in the expected duration
determined at the balance sheet date with the default probability in the expected duration determined
upon the initial recognition to determine the relative change in the default probability of financial
instruments in the expected duration, thus evaluating whether the credit risk of financial instruments
has increased significantly since the initial recognition.
When determining whether the credit risk has significantly increased since the initial recognition,
the Company considers the reasonable and well-founded information that can be obtained without
unnecessary additional cost or effort, including the forward-looking information. The information to
be considered by the Company is as follows:
A. Whether the internal price index has changed significantly due to the changes in credit risk;
91
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
B. Adverse changes in business, financial or economic conditions expected to lead to significant
changes in the capability of the debtor to fulfill its debt payment obligations;
C. Whether there has been any significant change in the actual or expected financial performance
of the debtor; whether the regulatory, economic or technological environment in which the debtor is
located has undergone significant adverse changes;
D. Whether there has been any significant change in the value of collateral used as debt collateral
or the quality of guarantee or credit enhancement provided by a third party. Such changes are expected
to reduce the debtor's economic motivation to repay the loan within the time limit stipulated in the
contract or affect the probability of default;
E. Whether there has been any significant change in the economic motivation that is expected to
reduce the debtor's repayment within the time limit agreed in the contract;
F. Expected changes in the loan contract, including whether the expected breach of contract may
result in exemption or revision of contractual obligations, granting of interest-free period, interest rate
jump, demand for additional collateral or guarantees, or other changes in the contractual framework
of financial instruments;
G. Whether there has been any significant change in the debtor's expected performance and
repayment behavior;
H. Whether the contract payment is overdue for more than (including) 30 days.
According to the nature of financial instruments, the Company evaluates whether the credit risk
has increased significantly on the basis of individual financial instruments or portfolios of financial
instruments. When evaluating on the basis of portfolios of financial instruments, the Company may
classify the financial instruments based on common credit risk characteristics, such as overdue
information and credit risk rating.
Under normal circumstances, if it is overdue for more than 30 days, the Company determines
that the credit risk of the financial instrument has significantly increased, unless the Company can
92
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
obtain reasonable and reliable information without paying too much cost or effort to prove that the
credit risk has not increased significantly since the initial recognition although the payment period
stipulated in the contract has elapsed for more than 30 days.
④ Credit-impaired financial assets
On the balance sheet date, the Company evaluates whether the credit impairment has occurred
to financial assets at amortized cost and the creditor's rights investment at fair value through other
comprehensive income. When one or more events that have an adverse effect on the expected future
cash flow of a financial asset occur, the financial asset becomes a credit-impaired financial asset.
Evidence for credit-impaired financial assets includes the following observable information:
The issuer or the debtor has major financial difficulties; the debtor violates the contract, such as
default or overdue payment of interest or principal; the creditor makes the concession that the debtor
will not make under any other circumstances due to the economic or contractual considerations
related to the debtor's financial difficulties; the debtor is likely to go bankrupt or undergo other
financial restructuring; the financial difficulties of the issuer or debtor cause the disappearance of the
active market of financial assets; a financial asset is purchased or generated at a substantial discount
which reflects the fact that the credit losses have occurred.
⑤ Presentation of provision for expected credit loss
In order to reflect the changes in the credit risk of financial instruments since the initial
recognition, the Company re-measures the expected credit loss on each balance sheet date. The
increase or reversal amount of provision for loss therefrom shall be regarded as impairment loss or
gain and included in current profits and losses. For financial assets at amortized cost, the provision
for loss shall be used to offset against the book value of financial assets presented in the balance sheet;
for the debt investments at fair value through other comprehensive income, the Company recognizes
the provision for loss in other comprehensive income, and the book value of financial assets will not
be deducted.
⑥ Write-off
93
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
When the Company no longer reasonably expects that the contractual cash flow of the financial
asset can be recovered in whole or in part, the book balance of the financial asset is directly written
down. Such write-off constitutes the derecognition of related financial assets. This usually happens
when the Company determines that the debtor has no assets or sources of revenue to generate
sufficient cash flow to repay the amount to be written off.
If the written-off financial assets are recovered later, they shall be regarded as the reversal of
impairment loss and included in the current profit or loss.
(6) Transfer of financial assets
Transfer of financial assets refers to the following two situations:
A. The contractual right for collecting this financial asset cash flow is transferred to the other
party;
B. All or part of the financial assets are transferred to the other party, but the contractual rights
to collect the cash flow of financial assets are reserved, and the contractual obligation to pay the
collected cash flow to one or more recipients is fulfilled.
① Derecognition of transferred financial assets
If almost all risks and rewards from the ownership of financial assets have been transferred to
the transferee, or almost all risks and rewards from the ownership of financial assets are neither
transferred nor retained, but the control of such financial assets have been abandoned, such financial
assets will be derecognized.
When judging whether the control over the transferred financial assets has been abandoned, pay
attention to the actual ability of the transferee to sell the financial assets. If the transferee can
unilaterally sell the transferred financial assets to an unrelated third party and there are no additional
conditions to restrict the sales, the Company has given up its control over the financial assets.
94
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
When judging whether the transfer of financial assets meets the conditions for the derecognition
of financial assets, the Company shall pay attention to the essence of the transfer of financial assets.
If the entire transfer satisfies the derecognition criteria, the difference between the following
amount should be included in current profits and losses:
A. Book value of the transferred financial assets;
B. Sum of the consideration received from transfer and the proportion – corresponding to the
derecognized portion of the cumulative changes in fair value and directly included in other
comprehensive income (the financial assets involved in the transfer are classified as financial assets
at fair value through other comprehensive income according to Article 18 of Accounting Standards
for Enterprises No. 22 – Recognition and Measurement of Financial Instruments).
If the partial transfer of financial assets satisfies the derecognition criteria, the book value,
between the part for derecognition and the rest (in this case, the retained service assets shall be deemed
as a part of the continuously recognized financial assets), of the financial assets transferred as a whole
should be amortized at their respective fair values on the transfer date, and the difference between the
following amount should be included in the current profits and losses:
A. Book value of the derecognized portion on the derecognition date;
B. Sum of the consideration received from disposal of the derecognized portion and the
proportion – corresponding to the derecognized portion of the cumulative changes in fair value
through other comprehensive income (the financial assets involved in the transfer are classified as
financial assets at fair value through other comprehensive income according to Article 18 of
Accounting Standards for Enterprises No. 22 – Recognition and Measurement of Financial
Instruments).
② Further involvement of the transferred financial assets
Where there is neither transfer nor retention of any risks and rewards on the financial asset
ownership, if the control over the financial asset is not waived, relevant financial assets shall be
95
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
recognized to the extent of further involvement in the transferred financial assets, and relevant
liabilities shall be recognized correspondingly.
The extent of further involvement in the transferred financial asset refers to the extent to which
the Company bears the risks or rewards of changes in the value of transferred financial assets.
③ Further recognition of the transferred financial assets
Where almost all risks and returns related to the ownership of the financial assets transferred are
still retained, the entirety of financial assets transferred are continued to be recognized, with the
consideration received being recognized as a financial liability.
The financial assets and the recognized related financial liabilities shall not be offset against
each other. In the subsequent accounting period, the Company shall further recognize the revenue (or
profits) generated by the financial assets and the expenses (or losses) generated by the financial
liabilities.
(7) Offset of financial assets and financial liabilities
Financial assets and financial liabilities shall be presented separately in the balance sheet and
shall not offset each other. However, the net amount is presented in the balance sheet after mutual
offset, when the following conditions are met simultaneously:
The Company has the legal right to offset the recognized amount and such a legal right is
currently enforceable;
The Company plans to settle on a net basis, or realize the financial assets and settle the financial
liabilities simultaneously.
For the transfer of financial assets that do not meet the conditions for derecognition, the
transferor shall not offset the transferred financial assets and related liabilities.
The Company shall abide by the disclosure requirements of the Guidelines of Shenzhen Stock Exchange for Self-Regulatory
Supervision of Listed Companies No. 3 - Industry Information Disclosure for "jewelry-related business".
96
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
11. Inventories
The Company shall abide by the disclosure requirements of the Guidelines of Shenzhen Stock Exchange for Self-Regulatory
Supervision of Listed Companies No. 3 - Industry Information Disclosure for "jewelry-related business".
(1) Classification of inventories
Inventory refers to finished products or commodities held by the Company for sale in daily
activities, products under production, materials and supplies consumed in the process of production
or rendering labor services, including raw materials, inventory commodities, consigned goods and
revolving materials.
(2) Valuation methods for inventories transferred out
The Company's inventories are measured by the first-in first-out method and the specific
measurement method when being dispatched.
(3) Inventory system
The Company adopts the perpetual inventory system for its inventory and carries out inventory
inspection at least once a year. The amount of inventory profit and inventory loss is included in the
profit or loss of the year.
(4) Method for providing provision for decline in the value of inventories
The inventories on the balance sheet date shall be valued by the lower one between cost and net
realizable value. If the inventory cost is greater than the net realizable value, provision for decline in
the value of inventories shall be withdrawn and included in the current profits and losses.
The inventory net realizable value shall be recognized based on the obtained hard evidence,
taking into account of purpose of holding inventory and its impact on events after the balance sheet
date.
① For the finished products, commodities, materials for sale and other inventory directly for
sale, during the normal production and operation process, the amount of the estimated sale price of
the inventory deducting the estimated selling expenses and relevant taxes shall be determined as the
97
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
net realizable value. For inventory held for implementing sales contract or labor service contract, the
net realizable value thereof shall be calculated based on the contract price. If the quantity of
inventories held is greater than the ordered quantity of the sales contract, the net realizable value of
the excessive part shall be calculated based on the general selling price. For materials used for sale,
the market price shall be taken as the measurement basis of their net realizable value.
② For material inventories requiring to be processed, during the normal production and
operation process, the net realizable value is taken as the difference between the estimated selling
prices of these inventories and their estimated cost to be incurred till completion, estimated selling
expenses and associated taxes. If the net realizable value of the finished product is higher than the
cost, the material shall be measured with the cost; if the reduction of the material price indicates that
the net realizable value of the finished product is lower than the cost, the material shall be measured
with the net realizable value and the provision for decline in the value of inventories shall be
withdrawn by the balance.
③ In principle, the provision for decline in the value of inventories will be withdrawn in
accordance with the individual inventory items; but for large quantity of inventories at low price, such
provision can be withdrawn according to the inventory category.
④ On the balance sheet date, if the factors affecting write-down of the inventories value no
longer exist, the write-down amount shall be recovered and reversed from the provision for decline
in the value of inventories which has been drawn, and the recovered amount shall be included in the
current profits and losses.
12. Contract assets
The Company presents the contract assets in the balance sheet in accordance with the
relationship between the performance obligations and the payment by the customer. The
consideration to which the Company is entitled to receive for the transfer of goods or services to a
customer (and the right depends on other factors excluding the passage of time) is presented as
contract assets.
98
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Please refer to Note V. 10 for details of the determination method and accounting treatment
method of the expected credit losses of the Company's contract assets.
Contract assets are presented separately in the Balance Sheet. Contract assets under the same contract
shall be presented at net amount. If the net amount is the debit balance, it shall be presented in the
item of "contract assets" or "other non-current assets" according to its liquidity.
13. Contract cost
The contract cost is divided into the contract performance cost and the contract acquisition cost.
The cost incurred by the Company in performing the contract shall be recognized as an asset of
the contract performance cost when the following conditions are met at the same time:
① The cost is directly related to a current or expected contract, including direct labor, direct
materials, manufacturing costs (or similar costs), the costs clearly borne by the customer, and other
costs incurred only by the contract.
② This cost increases the Company’s resources for performing the performance obligations in
the future.
③ This cost is expected to be recovered.
If the incremental cost incurred by the Company in obtaining the contract is expected to be
recoverable, it will be recognized as an asset of the contract acquisition cost.
Assets related to the contract cost are amortized on the same basis as revenue from goods or
services related to the asset is recognized; however, if the contract acquisition cost is amortized for
less than one year, the Company will include it in current profits and losses at the time of occurrence.
If the book value of the assets related to the contract cost exceeds the difference between the
following two items, the Company will make preparation for impairment provision of the excess and
recognize it as the impairment loss of the assets, and further consider whether to withdraw estimated
liabilities related to onerous contracts:
99
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
① Residual consideration expected to be obtained in connection with the transfer of goods or
services related to the asset;
② The cost expected to be incurred for the transfer of the relevant goods or services.
If the provision for impairment of the above assets is subsequently reversed, the book value of
the assets reversed will not exceed the book value of the assets at the date of reverse assuming no
provision for impairment is made.
The contract performance cost that is recognized as assets is presented in the item of
"Inventories" if the amortization period at initial recognition is not more than one year/normal
operating cycle; or presented in the item of "Other non-current assets" if the amortization period at
initial recognition is more than one year/normal operating cycle.
The contract acquisition cost that is recognized as assets is presented in the item of "Other current
assets" if the amortization period at initial recognition is not more than one year/normal operating
cycle; or presented in the item of "Other non-current assets" if the amortization period at initial
recognition is more than one year/normal operating cycle.
14. Held-for-sale assets
(1) Classification of held-for-sale non-current assets or disposal groups
The Company recognizes the non-current assets or disposal groups meeting all the following
conditions as the held-for-sale:
① Based on the practice of selling such assets or disposal groups in similar transactions, those
can be sold immediately under current conditions;
② Their sales are very likely to happen, that is, the Company has already made a resolution on
a sales plan and obtained a certain purchase commitment and their sales are expected to be completed
within one year. The relevant approval has been obtained from relevant authorities of the Company
or regulators for those available for sale as required by the relevant regulations.
100
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
The Company classifies the non-current assets or disposal groups that are acquired exclusively
for resale, meet the specified conditions of “the sales are expected to be completed within one year”
on the acquisition date and are likely to meet other conditions for classifying the held-for-sale assets
in a short time (usually 3 months) as the held-for-sale assets on the acquisition date.
If the Company loses control over its subsidiaries due to the sales of investment in subsidiaries
and other reasons, whether the Company reserves some of its equity investments after the sales or
not, when the investment in subsidiaries to be sold meets the conditions for the held-for-sale assets,
the investment in subsidiaries will be classified as the held-for-sale assets as a whole in the individual
financial statements of the parent company and all the assets and liabilities of subsidiaries will be
classified as the held-for-sale assets in the consolidated financial statements.
(2) Measurement of held-for-sale non-current assets or disposal groups
The measurement of investment properties that are subsequently measured at fair value,
biological assets that are measured by the net amount of fair value minus selling expenses, the assets
formed by employee compensation, the deferred tax assets, the financial assets subject to the financial
instrument related accounting standards, and rights arising from insurance contracts subject to
insurance contract relevant accounting standards are applicable to other relevant accounting standards
respectively.
When the held-for-sale non-current assets or disposal groups are measured initially or
remeasured on the balance sheet date, if the book value is higher than the net amount obtained by
deducting the selling expenses from the fair value, the book value shall be reduced to the net amount
obtained by deducting the selling expenses from the fair value, and the write-down amount shall be
recognized as the asset impairment losses and shall be included in the current profits and losses and
the impairment provision of held-for-sale assets shall be made at the same time. If the net amount
obtained by deducting the selling expenses from the fair value of held-for-sale non-current assets or
disposal groups on the subsequent balance sheet date increases, the previous write-down amount shall
be recovered and reversed from the asset impairment losses recognized after being classified as the
held-for-sale assets, and the reversed amount shall be included in the current profits and losses. The
book value of goodwill deducted shall not be reversed.
101
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
When a non-current asset or disposal group ceases to be classified as held for sale because it no
longer meets the criteria for classification of held for sale or a non-current asset is excluded from a
disposal group held for sale, it is measured at the lower of:
① The book value before being classified as held for sale, adjusted according to depreciation,
amortization or impairment that should have been recognized if it had not been classified as held for
sale;
② Recoverable amount.
(3) Presentation
In the balance sheet, the Company shall separately present the non-current assets held for sale
or the assets in the disposal group held for sale different from other assets, and separately present the
liabilities in the disposal group held for sale different from other liabilities. Non-current assets held
for sale or assets in the disposal group held for sale and liabilities in the disposal group held for sale
shall not offset each other and shall be presented as current assets and current liabilities respectively.
15. Long-term equity investments
The long-term equity investments of the Company include the equity investment to control or
significantly influence the investees and the equity investments of the joint ventures. Where the
Company can exercise significant influence over the investee, the investee is an associate.
(1) Basis for determining the existence of common control or significant influence over
investees
Common control refers to the sharing of control over certain arrangements under related
agreements, and related activities of the arrangement can be determined only when the unanimous
consent of the parties sharing the control is obtained. In assessing whether common control of an
arrangement exists, the Company firstly assesses whether all the parties or a group of the parties
control the arrangement collectively. When all the parties or a group of the parties must act together
unanimously in directing the relevant activities, all the parties or a group of the parties are regarded
as having common control of an arrangement. It then assesses whether decisions about the relevant
102
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
activities require the unanimous consent of those parties that control the arrangement collectively.
When more than one combination of the parties can control an arrangement collectively, common
control does not exist. Protective rights are not taken into account in determining whether or not there
is common control.
Significant influence means the power of the investor to participate in making decisions on the
financial and operating policies of an investee, but the investor cannot control or jointly control with
other parties over the formulation of these policies. When determining whether significant influence
can be exerted on the investee, consider the impact of voting shares directly or indirectly held by the
investor and current executable potential voting rights held by the investor and other parties after they
are assumed to be converted into equity in the investee, including the impact of current convertible
warrants, share options and convertible corporate bonds issued by the investee.
It shall be regarded as a significant influence on the investee when the Company directly or
indirectly through a subsidiary owns 20% (included) – 50% voting shares of the investee. However,
if there is any clear evidence showing that the Company cannot participate in making decisions on
production and operation activities of the investee under such a condition, constituting no significant
influence.
(2) Recognition of initial investment cost
Cost of long-term equity investment arising from business merger should be determined as follows:
A. Business merger under common control: If the merging party carries out merger consideration
through cash payment, transfer of non-cash assets, assumption of liabilities, the share of the book
value of the owners' equity of the merged party in the consolidated financial statements of the ultimate
controlling party should be recognized as the initial investment cost of long-term equity investment
on the merger date. The difference between the initial investment cost of the long-term equity
investment and the paid cash, transferred non-cash assets and the book value of assumed debts is
adjusted to capital reserves. If the capital reserve is not sufficient to absorb the difference, any excess
is adjusted to retained earnings;
103
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
B. Business merger under common control: If the merging party uses the issuance of equity
securities as the merger consideration, the share of book value of the owners' equity of the merged
party in the consolidated financial statements of the ultimate controlling party should be recognized
as the initial investment cost of long-term equity investment on the merger date. According to the
total carrying amount of the issued shares as the share capital, the difference between the initial
investment cost of the long-term equity investment and the total carrying amount of the shares issued
shall be adjusted to the capital reserve; if the capital reserve is insufficient to offset, the retained
earnings shall be adjusted;
C. Business merger not under common control: merger cost and initial costs for long-term equity
investment shall be determined based on the assets paid on the date of purchase for the right of control
over the purchased party, liabilities occurred or undertaken, as well as the fair value of the issued
equity securities. Any intermediary expenses such as audit, legal services, assessment and
consultation and other related administrative expenses incurred by the merging party in the business
merger are included in the current profits and losses when incurred.
Except for the long-term equity investment formed by business merger, the investment cost of long-term
equity investment acquired in other ways shall be determined in accordance with the following
provisions:
A. For long-term equity investment obtained by cash payment, the actual purchase price shall
be regarded as the investment cost. The initial investment cost includes expenses, taxes and other
necessary fees which are directly related to acquiring the long-term equity investment.
B. For the long-term equity investment obtained by issuing equity securities, the fair value of
the issued equity securities shall be taken as the initial investment cost;
C. For long-term equity investment obtained through non-monetary asset exchange, if the
exchange has commercial essence and the fair value of the exchanged assets or the exchanged assets
can be reliably measured, the fair value of exchanged assets and relevant taxes and fees shall be
regarded as the initial investment cost, and the difference between the fair value of the exchanged
assets and the book value shall be included in the current profits and losses. If the exchange of
monetary assets does not meet the above two conditions at the same time, the book value of the
exchanged assets and relevant taxes and fees shall be regarded as the initial investment cost.
104
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
D. For long-term equity investments acquired through debt restructuring, the entry value should
be determined according to the fair value of the debt waived, taxes generated from such assets and
other costs, and the difference between the fair value and the book value of the debt waived should
be included in the current profits and losses.
(3) Subsequent measurement and recognition of profit or loss
The Company adopted the cost method for accounting of the long-term equity investment
implementing control over the investee and equity method for accounting of long-term equity
investment in joint ventures and associates.
① Cost method
The long-term equity investment will be calculated by the cost method: Add or recover the
investment to adjust the investment cost of the long-term equity. The distributed cash dividend or
profit declared by the investees is recognized as investment income in the current period.
② Equity method
Long-term equity investments calculated by using the equity method are generally subject to the
accounting treatment as follows:
Where the Company's investment costs of long-term equity investments exceed the share of the
fair value of the investee’s identifiable net assets at the time of the investment, the initial investment
costs of the long-term equity investment are not adjusted; where their initial investment costs of long-
term equity investments are less than the share of the fair value of the investee’s identifiable net assets
at the time of the investment, the balance shall be included in the current profits and losses and the
costs of the long-term equity investment are adjusted accordingly.
The Company recognizes the investment income and other comprehensive income respectively
according to its share of net profit or loss and other comprehensive income of the investee, and
meanwhile adjusts the book value of long-term equity investments; the part of due share is calculated
according to the profit distribution or cash dividends declared by the investee, and the book value of
105
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
the long-term equity investments is reduced accordingly; for other changes of owners’ equity in
addition to the net profit or loss and other comprehensive income and profit distribution, the book
value of long-term equity investments is adjusted and included in owners’ equity. When recognizing
the share of net profits and losses of the investee, the Company recognizes the net profit of the
investee after adjustment based on the fair value of the net identifiable assets of the investee when
acquiring the investment. Where there are any inconsistencies between the accounting policies and
accounting period adopted by the investee and the Company, financial statements of the investee shall
be adjusted according to the accounting policies and accounting period of the Company based on
which the investment income and other comprehensive incomes are recognized. For transaction
incurred between the Company and the associates/joint ventures, the unrealized profit or loss arising
from the internal transactions amongst the Company and the investees are eliminated in proportion
to the Company’s equity interest in the investees, and then based on which the investment profit or
loss are recognized. Where the internal trading losses incurred but not realized between the Company
and the investees belong to asset impairment losses, such losses shall be recognized in full amount.
If it is possible to exert significant influence on the investee or implement common control but
does not constitute control due to additional investment and other reasons, the sum of the fair value
of the original equity investment plus the new investment cost shall be taken as the initial investment
cost calculated by the equity method. If the originally-held equity investment is classified as other
equity instrument investments, the difference between its fair value and book value, and the
accumulated gains or losses originally included in other comprehensive income shall be transferred
from other comprehensive income and included in retained earnings in the current period when
accounting is changed to the equity method.
In case the Company loses the common control of or the significant influence on the investee
due to the disposal of part of the equity investment, the residual equity after the disposal shall be
measured by fair value, and the balance between the fair value and the book value since the date of
losing the common control or significant influence shall be included in the current profits and losses.
For other comprehensive income from original equity investment recognized by the equity method,
106
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
such income is subject to the accounting treatment on the same basis as that adopted by the investee
for directly handling related assets or liabilities when the equity method is not used anymore.
(4) Equity investment held for sale
For equity investments in associates or joint ventures that are classified in whole or in part as
held-for-sale assets, please refer to Note V. 15 for relevant accounting treatment.
For the remaining equity investments not classified as held-for-sale assets, the equity method is
adopted for accounting treatment.
If the equity investment in an associate or joint venture that has been classified as held for sale
no longer meets the classification conditions of held-for-sale assets, it shall be retroactively adjusted
by the equity method from the date of being classified as held-for-sale assets. Financial statements
classified as held for sale shall be adjusted accordingly.
(5) Impairment test method and providing methods for impairment provision
For investments in subsidiaries, associates and joint ventures, please refer to Note V. 22 for the
method of provision for asset impairment.
16. Investment properties
Measurement mode of investment properties: depreciation or amortization measured by the cost method
(1) Classification of investment properties
Investment properties mean the properties held for earning rent or capital appreciation, or both,
mainly including:
① Rented land use rights
② Land use rights possessed and ready for transfer after appreciation
③ Rented buildings
(2) Measurement mode of investment properties
107
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
The Company adopts the cost model for the subsequent measurement of investment properties.
Please refer to Note V. 22 for the method of provision for asset impairment.
The Company calculates the depreciation or amortization based on the straight-line method after
deducting the accumulated impairment and the net salvage value from the cost of investment
properties. The category, estimated economic service life and estimated net residual rate of
investment properties are as follows:
Annual depreciation rate
Category Depreciation life (year) Residual value rate (%)
(%)
Premises and buildings 35-40 3 2.77-2.43
Land use right 50 — 2.00
17. Fixed assets
(1) Recognition condition
Fixed assets shall be recognized as the actual cost obtained when all the following conditions
are met:
① Economic benefits associated with such fixed assets are likely to flow into the enterprises.
② The cost of such fixed assets can be measured reliably.
Subsequent expenditure related to fixed assets complying with confirmation conditions of
fixed assets shall be included in cost of fixed assets and those failing to comply with confirmation
conditions of fixed assets shall be included in the current profits and losses when it occurs.
(2) Depreciation method
The Company shall withdraw the depreciation according to the straight-line method from the
month following the fixed assets reach the preset serviceable conditions. The depreciation life and
annual depreciation rate shall be determined according to the category, estimated economic service
life and estimated net residual rate of fixed assets as follows:
Depreciation Depreciation life Residual value Annual depreciation
Category
method (year) rate (%) rate (%)
108
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Straight-line 10, 35-40 0、3 2.43-2.77, 10.00
Premises and buildings
method
Including: decoration Straight-line 10 0 10.00
of self-owned houses method
Straight-line 12 3 8.08
Machinery equipment
method
Transportation Straight-line 7 3 13.86
equipment method
Straight-line 5-7 3 13.86-19.40
Electronic equipment
method
Office and other Straight-line 7 3 13.86
equipment method
For the fixed assets with the provision for impairment withdrawn, the withdrawn provision for
impairment of fixed assets is deducted upon the depreciation withdrawal.
At the end of every year, the Company shall recheck the service life and expected net residual
value, as well as the depreciation methods for the fixed assets. If there is difference between estimated
service life and original estimate, the service life of fixed assets shall be adjusted.
18. Construction in progress
(1) Construction in progress is checked based on category of the proposed projects.
(2) Criteria and time-point for transferring construction in progress to fixed assets
For the construction in progress, all expenditures incurred before the asset is ready for its
serviceable condition will be used as the entry value of the fixed asset, including construction costs,
original prices of machinery and equipment, other necessary expenses incurred to make the
construction in progress reach the working condition for its intended use, borrowing costs incurred
for special borrowings of the project before the assets reach the working condition for their intended
use and borrowing costs incurred for occupied general borrowings. The Company transfers the works
under construction to fixed assets when the installation or construction of the works is completed and
ready for the intended use. For the fixed assets that have reached the working condition for their
109
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
intended use but for which the final accounts for completion have not been handled, they shall be
transferred into the fixed assets at the estimated value according to the project budget, cost or actual
cost from the date when they reach the working condition for their expected use, and the depreciation
of the fixed assets shall be accrued according to the Company's depreciation policy for fixed assets.
After the final accounts for completion are handled, the original estimated value shall be adjusted
according to the actual cost, but the original depreciation amount shall not be adjusted.
19. Borrowing costs
(1) Recognition principle and capitalization period of borrowing cost capitalization
Where the borrowing costs incurred to the Company are directly attributable to the acquisition,
construction and production of assets eligible for capitalization, the costs shall be capitalized and
included into the relevant asset cost when all of the following conditions are met:
① The asset expenditure has already occurred;
② Borrowing costs are being incurred; and
③ Acquisition, construction or production activities necessary to bring the asset ready for its
intended use are in progress.
Other interest, discount or premium on borrowings and balance arising from fluctuation in the
foreign exchange rate should be included in the current profits and losses.
Where the acquisition and construction or production of assets eligible for capitalization are
abnormally interrupted and the interruption lasts for more than three months, the capitalization of
borrowing costs shall be suspended.
When the assets eligible for capitalization acquired, constructed or produced are available for
intended use or sale, the capitalization of their borrowing costs shall be stopped, and the subsequent
borrowing costs are recognized as expenses for the corresponding period of occurrence.
(2) Capitalization rate and calculation method of capitalization amount of borrowing costs
110
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
As to special borrowings borrowed for acquiring and constructing or producing assets that
conform to capitalization conditions, the capitalization amount of interest is determined by the
balance of interest cost incurred in the current period minus interest revenue gained from the unspent
borrowings deposited in bank, or investment profit gained from the unspent borrowings temporarily
invested, as the capitalization amount of borrowing interest expenses.
Where the acquisition and construction or production of assets eligible for capitalization
occupies general borrowings, the interest amount of general borrowings to be capitalized shall be
calculated and determined by multiplying the weighted average of asset disbursements of the part of
accumulated asset disbursements exceeding special borrowings by the capitalization rate of the used
general borrowings. The capitalization rate shall be calculated and determined based on the weighted
average interest rate of the general borrowings.
20. Right-of-use assets
The right-of-use assets refer to the lessee's right to use the leased assets during the lease term.
The right-of-use assets shall be initially measured at their cost on the commencement of the lease
term. The cost includes:
Initial measurement amount of lease liabilities;
Lease payments paid on or before the commencement of the lease term. The relevant amount of lease
incentives enjoyed shall be deduced if such incentives exist;
Initial direct cost of the lessee;
Cost expected to be occurred by the lessee due to dismantling and removing the leasing asset, recovering
its location or recovering it to the state agreed in the leasing terms. The Company recognizes and
measures the cost according to the recognition standard and measurement method of estimated liabilities
detailed in Note V. 27. The above-mentioned cost is included in the inventory cost incurred for the
production of inventory.
The Company classifies and accrues the depreciation of the right-of-use assets by the straight-
line method. If it is possible to reasonably determine that the ownership of the leased asset can be
acquired at the expiration of the lease term, the depreciation rate shall be determined according to the
111
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
category and the estimated ratio of net residual value of the right-of-use assets within the remaining
service life of the leased asset; if it is impossible to reasonably determine that the ownership of the
leased asset can be acquired at the expiration of the lease term, the depreciation rate shall be
determined according to the category of the right-of-use assets within the shorter period of the lease
term and the remaining service life of the leased asset.
21. Intangible assets
(1) Valuation method, service life and impairment test
(1) Valuation method for intangible assets
They are recorded according to the actual cost when acquired.
(2) Service life and amortization of intangible assets
① Service life estimation for intangible assets with limited service life:
Estimated service
Item Basis
life
Land use right 50 years Legal right to use
Determine the service life with reference to the term
Computer software 5 years
that can bring economic benefits to the Company
Determine the service life with reference to the term
Trademark 10 years
that can bring economic benefits to the Company
At the end of each year, the Company shall re-check the service life and the amortization method
of intangible assets with limited service life. According to the review, the service life and amortization
method of the intangible asset at the end of the current period are the same as those estimated
previously.
② If the economic interest period to be brought by the intangible assets to the Company is
unforeseeable, then the service life of the intangible assets shall be deemed as uncertain. For the
intangible assets with uncertain service life, the Company shall check at the end of each year the
112
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
service life of the intangible assets with uncertain service life. If the service life is still uncertain after
such check, impairment test shall be conducted on the balance sheet date for such assets.
③ Amortization of intangible assets
For the intangible assets with limited service life, such service life shall be determined at the
moment of acquisition of such assets, the amount that shall be amortized shall be systematically and
reasonably amortized within the service life through straight-line method, and the amount of
amortization shall be included in the current profits and losses according to the income items. The
specific amount to be amortized is the amount after deducting the estimated residual value from its
cost. For intangible assets with impairment provisions provided, the accumulative amount of
impairment provision of intangible assets shall also be deducted. The residual value of an intangible
asset with limited service life is regarded as zero, except for the following circumstances: a third party
promises to purchase the intangible asset at the end of its service life or can obtain the expected
residual value information according to the active market, and the market is likely to exist at the end
of its service life.
Intangible assets with uncertain service life shall not be amortized. The Company shall review
the expected service life of intangible assets with uncertain service life at the end of each year. If any
evidences indicate that the service life of intangible assets is limited, the service life shall be estimated
and amortized properly within the expected service life.
(3) Long-term asset impairment
For long-term equity investment in subsidiaries, associates and joint ventures, investment real
estate which follow-up measurement is carried out by cost pattern, fixed assets, construction in
progress, intangible assets, business reputation, etc. (excluding inventory, investment properties
measured by fair value pattern, deferred tax assets, financial assets), the impairment of assets shall be
determined according to the following methods: The Company judges whether there is a sign of
impairment to assets on the balance sheet date. If such sign exists, the Company estimates the
recoverable amount and conducts the impairment test. The goodwill formed due to business merger,
113
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
intangible assets with uncertain service life and intangible assets that have not yet reached the usable
state shall be tested for impairment every year regardless of whether there is any sign of impairment.
The recoverable amount is determined based on the higher of the net amount obtained by
deducting disposal expenses from the fair value of assets and the present value of expected future
cash flow of assets. The recoverable amount is estimated of the individual asset. If it is not possible
to estimate the recoverable amount of the individual asset, the Company determines the recoverable
amount of the asset group to which the asset belongs. The identification of the asset group is based
on whether the major cash flow generated from the asset group is independent of the cash inflows
from other assets or asset groups.
When the asset or asset group’s recoverable amount is lower than its book value, the Company
reduces its book value to its recoverable amount, the reduced amount is recorded in the current profits
and losses and the provision for impairment of assets is recognized.
For the impairment test of goodwill, the book value of goodwill formed by business merger shall
be amortized to relevant asset groups with a reasonable method since the acquisition date; if it is
difficult to amortize to relevant asset groups, it shall be amortized to relevant asset group portfolios.
Asset group or portfolio of asset group is asset group or portfolio of asset group which can benefit
from synergies of a business merger and is not greater than the reportable segment of the Company.
During the impairment test, if there is any sign of impairment in the asset group or portfolio of
asset groups related to goodwill, first conduct an impairment test on the asset group or portfolio of
asset groups that does not contain goodwill, calculate the recoverable amount and recognize the
corresponding impairment loss. Then asset group or portfolio of asset group containing goodwill is
conducted impairment test by comparing its book value and its recoverable amount. If the recoverable
amount is less than the book value, impairment loss of goodwill is recognized.
An impairment loss once recognized not be reversed in the subsequent period.
114
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
22. Long-term asset impairment
For long-term equity investment in subsidiaries, associates and joint ventures, investment real
estate which follow-up measurement is carried out by cost pattern, fixed assets, construction in
progress, intangible assets, business reputation, etc. (excluding inventory, investment properties
measured by fair value pattern, deferred tax assets, financial assets), the impairment of assets shall be
determined according to the following methods:
The Company judges whether there is a sign of impairment to assets on the balance sheet date.
If such sign exists, the Company estimates the recoverable amount and conducts the impairment test.
The goodwill formed due to business merger, intangible assets with uncertain service life and
intangible assets that have not yet reached the usable state shall be tested for impairment every year
regardless of whether there is any sign of impairment.
The recoverable amount is determined based on the higher of the net amount obtained by
deducting disposal expenses from the fair value of assets and the present value of expected future
cash flow of assets. The recoverable amount is estimated of the individual asset. If it is not possible
to estimate the recoverable amount of the individual asset, the Company determines the recoverable
amount of the asset group to which the asset belongs. The identification of the asset group is based
on whether the major cash flow generated from the asset group is independent of the cash inflows
from other assets or asset groups.
When the asset or asset group’s recoverable amount is lower than its book value, the Company
reduces its book value to its recoverable amount, the reduced amount is recorded in the current profits
and losses and the provision for impairment of assets is recognized.
For the impairment test of goodwill, the book value of goodwill formed by business merger shall
be amortized to relevant asset groups with a reasonable method since the acquisition date; if it is
difficult to amortize to relevant asset groups, it shall be amortized to relevant asset group portfolios.
Asset group or portfolio of asset group is asset group or portfolio of asset group which can benefit
from synergies of a business merger and is not greater than the reportable segment of the Company.
115
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
During the impairment test, if there is any sign of impairment in the asset group or portfolio of
asset groups related to goodwill, first conduct an impairment test on the asset group or portfolio of
asset groups that does not contain goodwill, calculate the recoverable amount and recognize the
corresponding impairment loss. Then asset group or portfolio of asset group containing goodwill is
conducted impairment test by comparing its book value and its recoverable amount. If the recoverable
amount is less than the book value, impairment loss of goodwill is recognized.
An impairment loss once recognized not be reversed in the subsequent period.
23. Long-term deferred expenses
Long-term deferred expenses are expenses that have been incurred but should be borne by the
current period and subsequent periods with an allocation period of more than one year.
The Company's long-term deferred expenses shall be subject to average amortization within the
benefit period.
24. Contract liabilities
The Company presents the contract liabilities in the balance sheet in accordance with the
relationship between the performance obligations and the payment by the customer. The Company's
obligations to transfer goods or services to the customer due to customer consideration received or
receivable shall be presented as contract liabilities.
Contract liabilities are presented separately in the Balance Sheet. The contractual assets and
contract liabilities under the same contract are presented on a net basis. If the net amount is the credit
balance, it shall be presented in items of "Contractual liabilities" or "Other non-current liabilities"
item according to its liquidity. Contract assets and contract liabilities under different contracts are not
mutually offset.
25. Employee compensation
(1) Accounting treatment for short-term compensation
① Basic employee compensation (wages, bonuses, allowances and subsidies)
116
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
The Company recognizes, in the accounting period in which an employee provides service,
short-term compensation actually incurred as liabilities, with a corresponding charge to current profits
and losses or the cost of a relevant asset, otherwise than those recognized as cost of capital required
or permitted by other accounting standards.
② Employee benefits
The employee benefits incurred by the Company are included in the current profits and losses
or relevant asset cost according to the actual amount incurred when it is actually incurred. If the
employee benefits are non-monetary, they shall be measured at fair value.
③ Medical insurance premium, work injury insurance premium, maternity insurance premium
and other social insurance premiums and housing provident fund, labor union funds and employee
education funds
For social insurance premiums such as medical insurance, work injury insurance and maternity
insurance, as well as housing provident fund paid by the Company for the employees, and for labor
union funds and employee education funds accrued by the Company as specified, during the
accounting period when the employees work for the Company, the amount of employee compensation
relevant are calculated according to the basis and proportion of calculation and accruing as specified,
to determine the corresponding liabilities, which is to be included in the current profits and losses or
relevant asset cost.
④ Short-term compensated absence
When the rights of compensated absence enjoyed by the staff of the Company in the future in
the provision of services are increased, the employee compensation related to the cumulative
compensated absence shall be confirmed and calculated according to the expected payment amount
increased due to the cumulative unexercised rights. The Company recognizes the employee
compensation related to non-cumulative paid leaves in the period of the actual occurrence of the leave.
⑤ Short-term profit sharing plan
117
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
The Company recognizes the relevant employee compensation payable, provided that the profit
sharing plan also meets the following conditions:
A. The enterprise currently has legal obligation or constructive obligation to pay employee
compensation as a result of past events;
B. The amount of employee compensation payable generated from the profit sharing plan can
be estimated reliably.
(2) Accounting treatment of post-employment benefits
① Defined contribution plans
The Company shall recognize, in the accounting period in which the staff provides service, the
contribution payable to a defined contribution plan as a liability, and include it in current profits and
losses or relevant asset cost.
According to the defined contribution plan, if all the deposit amounts are expected not to be paid
within 12 months at the end of the annual reporting period during which the employees provide
relevant services, with reference to the corresponding discount rate, the employee compensation
payable shall be measured by the Company at the discounted amount of all the deposit amounts. The
discount rate is determined based on the market return on the national bonds matching with the
obligations under the defined contribution plan in terms of the term and currency or based on the
high-quality corporate bonds in the active market on the balance sheet date.
② Defined benefit plan
A. Determining the present value of the defined benefit plan obligation and the current service
cost
According to the projected unit credit method, the unbiased and mutually agreed actuarial
assumptions are adopted by the Company to estimate the relevant demographic variables and
financial variables, calculate the obligations arising from the defined benefit plan and determine the
118
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
period of relevant obligations belonging thereto. The Company discounts the obligations arising from
the defined benefit plan at a corresponding discount rate (determined according to the market return
on national bonds or high-quality corporate bonds in the active market that match the term and
currency of obligations under the defined benefit plan on the balance sheet date) to determine the
present value of obligations under the defined benefit plan and the current service cost.
B. Recognition of net liabilities or net assets of defined benefit plan
If there are assets in the defined benefit plan, the deficit or surplus formed by the present value
of obligations under defined benefit plan minus the fair value of assets under defined benefit plan
should be recognized by the Company as a net liability or a net asset under defined benefit plan.
In case that the defined benefit plan has surplus, the Company measures the net asset under
defined benefit plan as per the surplus under defined benefit plan and the upper asset limit, whichever
is lower.
C. Determining the amount to be included in asset cost or current profits and losses
Service costs, including current service costs, past service costs, and settlement gains or losses.
Among them, except for the current service cost required or allowed to be included in the asset cost
by other accounting standards, other service costs are included in the current profits and losses.
Net interest of net liabilities or net assets of the defined benefit plan, including interest income
of planned assets, interest expense of defined benefit plan obligations, and interest affected by asset
ceiling, shall be included in the current profits and losses.
D. Determination of the amount that should be included in other comprehensive income.
Changes arising from re-measurement of net liabilities or net assets of defined benefit plan,
including:
(a) Actuarial gains or losses, i.e. the increase or decrease in the present value of defined benefit
plan obligations measured previously due to actuarial assumptions and experience adjustments;
119
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
(b) Return on plan assets, deducting the amount included in the net interest of net liabilities or
net assets of defined benefit plan;
(c) Changes in the effect of the asset ceiling, deducting the amount included in the net interest
on net liabilities or net assets of defined benefit plans.
The changes arising from the above-mentioned re-measurement of net liabilities or net assets of
the defined benefit plan are directly included in other comprehensive income and are not allowed to
be reversed back to profit or loss in subsequent accounting periods, but the Company can transfer
these amounts recognized in other comprehensive income within the scope of equity.
(3) Accounting treatment for termination benefits
When termination benefits are provided, the employee compensation liabilities for termination
benefits will be recognized by the Company and included in the current profits and losses, at the
earlier of the following dates:
① The date when the Company cannot unilaterally withdraw the offer of termination benefits
because of an employment termination plan or a curtailment proposal;
② The Company recognizes the costs or expenses related to the restructuring of termination
benefits payment;
If the termination benefits are expected not to be fully paid within 12 months after the end of the
annual reporting period, the amount of termination benefits shall be discounted with reference to the
corresponding discount rate (determined according to the market yield of national bonds or high-
quality corporate bonds in the active market that match the obligation period and currency of the
defined benefit plan on the balance sheet date), and the employee compensation payable shall be
measured at the discounted amount.
(4) Accounting treatment for other long-term employee benefits
① Qualified for defined contribution plan
120
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
For other long-term employee benefits provided by the Company to employees that meet the
conditions of defined contribution plan, the employee compensation payable shall be measured at the
discounted amount of all payables.
② Qualified for the defined benefit plan
At the end of the reporting period, the Company shall recognize the following components of
employee compensation cost arising from other long-term employee benefits:
A. Service costs;
B. Net interest for net liabilities or net assets of other long-term employee benefits;
C. Change arising from remeasurement of other net long-term employee benefits liabilities or
net assets.
In order to simplify the relevant accounting treatment, the total net amount of the above items
shall be included in the current profits and losses or the related cost of assets.
26. Lease liabilities
Lease liabilities shall be initially measured according to the present value of lease payments that
have not yet been made on the commencement date of lease term. The lease payment includes the
following five items:
For the fixed payment and substantial fixed payment, the amount related to lease incentive shall be
deducted if there is lease incentive;
Variable lease payment depending on index or ratio;
The exercise price of the purchase option, provided that the lessee reasonably determines that the option
will be exercised;
The amount to be paid for exercising the termination option, provided that the lease term reflects that the
lessee will exercise the termination option;
The amount expected to be paid according to the guaranteed residual value provided by the lessee.
121
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
In calculating the present value of the lease payment, the Company adopts the interest rate
implicit in the lease as the discount rate. If it is impossible to determine the interest rate implicit in
the lease, the Company will adopt the incremental borrowing rate as the discount rate. The difference
between the lease payments and their present value is recognized as an unrecognized financing
expense, and the interest expense is recognized at the discount rate of the present value of the
recognized lease payments during each period of the lease period and is charged to the current profits
and losses. Variable lease payments not considered in the measurement of lease liabilities are charged
to the current profits and losses when actually incurred.
In case of any changes in the amount of substantive fixed payments, the amount expected to be
payable for the residual guarantee, the index or rate used to determine the lease payments, or the
evaluation result or actual exercise of the call option, renewal option or termination option after the
inception date of the lease term, the Company will remeasure the lease liabilities at the present value
of the changed lease payments and adjust the book value of the right-of-use assets accordingly.
27. Estimated liabilities
(1) Criteria for recognition of estimated liabilities
Obligations related to contingencies, if satisfying the following conditions at the same time, will
be recognized as provisions by the Company:
① The obligation is the current obligation of the Company;
② Performance of this obligation will probably cause outflow of economic interest of the
Company;
③ The amount of such obligation can be measured reliably.
(2) Measurement method for estimated liabilities
Estimated liabilities are initially measured at the best estimation of the expenses to exercise the
current obligations, with considerations to the risks, uncertainty, time value of currency, and other
122
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
factors pertinent to the contingencies. The book value of the estimated liabilities shall be reviewed
on each balance sheet date. If there is concrete evidence showing that the book value cannot truly
reflect the current best estimate, the book value shall be adjusted as per the current best estimate.
28. Revenue
The Company shall abide by the disclosure requirements of the Guidelines of Shenzhen Stock Exchange for Self-Regulatory
Supervision of Listed Companies No. 3 - Industry Information Disclosure for "jewelry-related business".
(1) General principle
Revenue refers to the gross inflow of economic benefits formed during the course of ordinary
activities of the Company, which may increase the shareholders' equity and is irrelevant to the
invested capital of shareholders.
The Company recognizes the revenue when it has fulfilled its performance obligations of the
Contract, i.e. the customer has acquired the control over the relevant goods. The acquisition of control
over the relevant goods refers to being able to dominate the use of the goods and obtain almost all the
economic benefits.
If the contract contains two or more performance obligations, the Company shall, at the
beginning date of the contract, apportion the transaction price to each performance obligation
according to the relative proportion of the individual selling price of the commodities or services
promised by each performance obligation, and measure the revenue according to the transaction price
apportioned to each performance obligation.
The transaction price is the amount of consideration that the Company is expected to be entitled
to receive for the transfer of commodities or services to the customer, excluding payments received
on behalf of third parties. In determining the contract transaction price, if there is a variable
consideration, the Company will determine the best estimate of the variable consideration on the basis
of the expected value or the amount most likely to occur, and include it in the transaction price in an
amount not exceeding the amount most likely not to be materially reversed by accumulating the
recognized revenue when the relevant uncertainty is eliminated. If a significant financing component
is involved in a contract, the Company will determine the transaction price in the amount payable by
123
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
the customer in cash when the customer obtains control over the goods, and the difference between
the transaction price and the contract consideration will be amortized by the effective interest method
over the contract term. If the interval between the transfer of control and the payment by the customer
does not exceed one year, the Company does not consider the financing components therein.
In case one of the following conditions is met, the Company will perform the performance
obligations within a period of time. Otherwise, the Company will perform the performance
obligations at a time point:
① The customer obtains and consumes the economic benefits brought by the performance of
the contract by the Company at the same time;
②The customer can control the goods under construction during the Company's performance;
③ The goods generated during the performance of the Company are irreplaceable, and the
Company is entitled to receive payment for the performance accumulated so far throughout the term
of the contract.
For the performance obligations performed within a certain period of time, the Company shall
recognize the revenue according to the performance progress within that period, except that the
performance progress cannot be reasonably determined. The Company determines the progress of
performance for the rendering of services using the input method (or output method). If the
performance progress cannot be reasonably confirmed, and the costs incurred by the Company can
be expected to be compensated, the revenue shall be recognized according to the amount of costs
incurred until the performance progress can be reasonably confirmed.
For performance obligations performed at a certain time point, the Company shall confirm the
revenue at the time point when the customer gains control rights of the relevant goods. In determining
whether a customer has obtained the control rights of the goods or services, the Company shall take
the following indications into consideration:
124
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
① The Company enjoys the current collection right in regard to such goods or services, i.e., the
customers have the obligation to pay immediately with respect to the goods;
② The Company has transferred the legal ownership of the goods to the customer, i.e., the
customer owns the legal ownership of the goods;
③ The Company has transferred the goods to the customer in kind, i.e. The customer has
possessed the goods;
④ The Company has transferred the major risks and remuneration on the ownership of the goods
to the customer, i.e., the customer has obtained the major risks and remuneration on the ownership of
the goods;
⑤ The customer has accepted the goods.
Sales return terms
For any sales with a sales return clause, when the customer obtains control over relevant goods,
the Company recognizes the revenue according to the amount of consideration it is entitled to obtain
due to the transfer of goods to the customer and recognizes the amount to be returned due to sales
return as estimated liabilities; at the same time, according to the book value of the returned goods
when they are expected to be transferred, the balance after deducting the expected cost of recovering
the goods (including the impairment of the value of the returned goods) is recognized as an asset, that
is, the return cost receivable, and the net amount of the above asset cost is carried forward according
to the book value of the transferred goods when they are transferred. On each balance sheet date, the
Company re-estimates the return of future sales and re-measures the above assets and liabilities.
Warranty obligations
According to the contract agreement, laws, and regulations, the Company provides quality
assurance for the goods sold and the projects constructed. The Company carries out accounting
treatment in accordance with the Accounting Standards for Business Enterprises No. 13 –
Contingencies for guarantee quality assurance to assure customers that the goods sold meet the
125
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
established standards. For the service quality assurance that provides a separate service in addition to
ensuring that the sold goods meet the established standards, the Company takes it as a single
performance obligation. Part of the transaction price is amortized to the service quality assurance
according to the relative proportion of the separate selling price for providing the commodity and
service quality assurance, and revenue is recognized when the customer obtains control over the
service. When assessing whether the quality assurance provides a separate service to the customer
that the sold goods meet the established standards, the Company shall consider whether the quality
assurance is a legal requirement, quality assurance period, and the Company's commitment to
performing the task.
Principal responsible person and agent
The Company determines whether it is the principal responsible person or agent at the time of
the transaction based on whether it has control of the goods or services prior to the transfer of the
goods or services to the customer. If the Company is able to control the goods or services before
transferring the goods or services to the customer, the Company is the main responsible person and
recognizes the revenue according to the total consideration received or receivable. Otherwise, the
Company, as an agent, recognizes revenue according to the amount of commission or handling charge
that it is expected to be entitled to receive. The amount shall be determined based on the net amount
after deducting the price payable to other related parties from the total consideration received or
receivable, or in accordance with the established commission amount or proportion.
Consideration payable to a customer
Where there is consideration payable to a customer in a contract, unless the consideration is for
the purpose of obtaining other goods or services that are distinct from the customer, the Company
offsets the consideration payable against the transaction price and deducts the current revenue at a
later point between the recognition of the relevant revenue and the payment (or committed payment)
of the customer consideration.
Contractual rights not exercised by the customer
126
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
If the Company receives the payment for selling goods or services from the customer in advance,
the amounts received shall be first recognized as liabilities, and then be converted into revenue when
the relevant performance obligations are fulfilled. When the advances from customers do not need to
be recovered, and the customer may abandon all or part of its contract rights, if the Company is
expected to obtain the amount related to the contract rights abandoned by the customer, the above
amount shall be recognized as revenue in proportion according to the mode of the customer exercising
the contract rights; otherwise, the Company will convert the balance of the above liabilities into
revenue only when there is little possibility that the customer requires the fulfillment of the remaining
performance obligations.
Change of contract
In case of a change in the construction contract between the Company and the customer:
① The Company will treat the change as a separate contract for accounting if the change
increases the clearly distinguishable construction services and contract price, and the additional
contract price reflects the separate selling price of additional construction services;
②The change will be deemed as the termination of the original contract, and the outstanding
portion of the original contract will be combined with the change portion to form a new contract for
accounting if the change does not fall within the definition of ①, and if there is a clear distinction
between the transferred construction services and the non-transferred construction services on the
date of the change;
③ The change will be considered as part of the original contract for accounting, and the revenue
of the current period will be adjusted to reflect the resulting impact on the recognized revenue if the
change does not fall into the definition of ① and if there is no clear distinction between the transferred
construction services and the non-transferred construction services on the date of the change.
(2) Specific method
Specific revenue recognition method of the Company is as follows:
① Contract for sale of goods
127
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
The contract for sale of goods between the Company and the customer includes the performance
obligation of the transferred goods, which belongs to the performance obligation at a certain time
point.
The recognition of automobile sales revenue and jewelry wholesale revenue shall meet the
following conditions: The Company has delivered the goods to the Customer according to the contract
agreement and the Customer has accepted the goods, the payment for goods has been recovered or
the receipt voucher has been obtained, the related economic benefits are likely to flow in, the major
risks and rewards on the ownership of the goods have been transferred and the legal ownership of the
goods has been transferred.
② Vehicle maintenance and testing contract
The performance obligations contained in the vehicle maintenance and testing contract between
the Company and the customer belong to the performance obligations at a certain time point.
The recognition of vehicle maintenance and testing revenue shall meet the following conditions:
The Company has completed vehicle maintenance and testing services according to the contract,
settled all materials and man-hour expenses with the customer, and allowed the customer's vehicle to
leave the Company's maintenance shop.
③ Contract for provision of services
The contract for provision of services between the Company and the customer includes the
performance obligation of services related to the lease of real estate. Since the customer obtains and
consumes the economic benefits brought by the performance of the Company at the same time, the
Company regards it as the performance obligation to be performed within a certain period of time,
which is equally apportioned and recognized during the service provision period.
④ Real estate lease contract
See Note V. 28 for the recognition method of the real estate rent revenue of the Company.
128
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
29. Government subsidies
(1) Recognition of government subsidies
The government subsidies shall meet all of the following conditions for recognition:
① The Company can meet the conditions of acquisition of government subsidies;
② The Company can receive government subsidies.
(2) Measurement of government subsidies
The government subsidies considered as monetary assets are measured at the amount received
or receivable. The government subsidies considered as non-monetary assets are measured based on
the fair value, or the nominal amount of RMB 1, if the fair value cannot be acquired reliably.
(3) Accounting treatment for government subsidies
① Asset-related government subsidies
The Company classifies the government subsidies acquired for establishing or forming long-
term assets in other ways as asset-related government subsidies. Asset-related government subsidies
shall be recognized as deferred incomes, and they shall be included in the profit or loss with a
reasonable and systematic method within the service life of related assets. Government subsidies
measured at the nominal amount shall be directly included in the current profits and losses. When the
related assets are sold, transferred, scrapped or damaged before the end of service life, all the
undistributed deferred incomes shall be transferred to the current profits and losses disposal.
② Income-related government subsidies
Other than asset-related government subsidies, other government subsidies are income-related
government subsidies. Accounting treatment shall be conducted for the income-related government
subsidies as per the following provisions according to different situations:
129
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
If used to compensate for related costs or losses during future periods of the Company, the
income-related government subsidies shall be recognized as deferred incomes, and shall be included
in the current profits and losses at the period when it is recognized;
The amount used to compensate for the incurred related cost expenses or losses of the Company
shall be included in the current profits and losses.
For the government subsidies including both assets-related government subsidies and income-
related government subsidies, such two parts shall be separately provided with accounting treatment;
where such two parts cannot be distinguished, all government subsidies shall be classified as income-
related government subsidies.
The government subsidies related to daily activities of the Company shall be included in other
incomes based on the substance of business transactions. Government subsidies irrelevant to daily
activities of the Company shall be included in non-operating incomes and expenses.
③ Policy-based preferential loan discount
Where the finance allocates the discount fund to the lending bank and the lending bank provides
a loan at the policy-based preferential interest rate for the Company, the Company includes the
actually received loan amount as the entry value of the loan and counts relevant borrowing costs
based on loan principal and the policy-based preferential interest rate.
Where the finance directly allocates the discount fund to the Company, the Company shall use
the corresponding discount to offset relevant borrowing costs.
④ Refund of government subsidies
For the government subsidies recognized to be refunded, if the government subsidies are used
to offset the book value of the related assets when they are initially recognized, the book value of
assets shall be adjusted. If there is deferred income concerned, the government subsidies shall be
offset against the book balance of the deferred income, and the excess shall be included in the current
profit or loss. They shall be directly included in the current profit or loss in other cases.
130
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
30. Deferred tax assets/deferred tax liabilities
According to the temporary differences between the book value of assets and liabilities on the
balance sheet date and the tax basis, the Company generally adopts the balance sheet liability method
to recognize and measure the effect of taxable temporary difference or deductible temporary
differences on income tax as the deferred tax liabilities or the deferred tax assets. The Company will
not perform the discounting for deferred tax assets and deferred tax liabilities:
(1) Recognition of deferred tax assets
For deductible temporary differences, deductible losses and tax credits which can be transferred
to future years, the effect on income tax shall be calculated as per the income tax rate during the
expected reversal period, and the effect is recognized as the deferred tax assets to the extent of future
taxable income the Company may obtain to deduct the deductible temporary differences, deductible
losses and tax credit.
The effect on income tax of deductible temporary difference incurred in the initial recognition
of assets or liabilities arising from transactions or events having the following characteristics at the
same time is not recognized as deferred tax assets:
A. The transaction is not a business merger;
B. The transaction affects neither the accounting profit nor the taxable income (or deductible
loss) when it occurs.
For the deductible temporary differences related to the Company's investments in subsidiaries,
associates and joint ventures, if the following two conditions are met at the same time, the amount of
influence on income tax is recognized as deferred tax assets:
A. It is likely that the temporary difference will be reversed in the foreseeable future;
B. It is likely that taxable income will be available in the future for deducting the temporary
differences;
131
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
On the balance sheet date, if there is conclusive evidence that it is probable that sufficient taxable
income will be obtained in future periods to offset the deductible temporary differences, the deferred
tax assets not recognized in previous periods shall be recognized
The book value of deferred tax assets is reviewed by the Company on each balance sheet date.
If it is likely that sufficient taxable profits will not be available in future periods to deduct the benefit
of the deferred tax assets, the book value of the deferred tax assets is reduced. Any such write-down
shall be subsequently reversed where it becomes probable that sufficient taxable income will be
available.
(2) Recognition of deferred tax liabilities
All taxable temporary differences of the Company shall be measured according to the income
tax rate during the expected reversal period, and such effect shall be recognized as deferred tax
liabilities, except for the following circumstances:
① The influence of taxable temporary differences on income tax arising from the following
transactions or events is not recognized as deferred tax liabilities:
A. Initial recognition of goodwill;
B. Initial recognition of assets or liabilities arising from a transaction with the following
characteristics: the transaction is not a business merger, and the transaction affects neither accounting
profit nor taxable income or deductible losses when it occurs.
②The effect of taxable temporary difference related to the investment of the Company, its
subsidiaries, joint ventures and associates on income tax is generally recognized as deferred tax
liabilities, but the following two conditions shall be met simultaneously:
A. The Company can control the time for the reversal of the temporary difference;
B. It is unlikely that the temporary difference will be reversed in the foreseeable future;
132
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
(3) Recognition of deferred tax liabilities or assets involved in specific transactions or
events
① Deferred tax liabilities or assets related to business merger
For taxable temporary differences or deductible temporary differences arising from business
merger not under common control, upon the recognition of deferred tax liabilities or deferred tax
assets, the goodwill recognized in the business merger is generally adjusted according to the relevant
deferred tax expenses (or gains).
② Items directly recognized as the owners' equity
The current income tax and deferred tax related to the transactions or events directly included in
the owners' equity will be included in the owners' equity. Transactions or events in which the effect
of temporary differences on income tax is included in owners' equity are as follows: other
comprehensive income formed by changes in fair value of other creditor's rights investment, the
adjustment of retained earnings by retroactive adjustment method for changes in accounting policies
or retrospective restatement method for the correction of prior (important) accounting errors, and the
hybrid financial instruments simultaneously containing liability component and equity component
included in the owners’ equity upon the initial recognition.
③ Deductible losses and tax credits
A. Deductible losses and tax credits arising from the own operations of the Company
Deductible losses refer to the losses that are calculated and determined in accordance with the
provisions of tax law and allowed to be compensated by the taxable income in the following years.
Unrecovered losses (deductible losses) and tax credits that can be carried forward to the following
years according to the provisions of the tax law shall be deemed as deductible temporary differences
for treatment. When it is expected that sufficient taxable income can be obtained from available
recoverable losses or tax credits in the future, with the possibly achieved taxable income as the limit,
133
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
the corresponding deferred tax assets shall be recognized, and the income tax expenses in the current
income statement shall be reduced.
B. Deductible but unrecovered losses of the merged enterprise generated by business merger
In the business merger, should the deductible temporary difference of the acquiree gained by the
Company not meet the recognition conditions of the deferred tax assets on the acquisition date, the
Company will not recognize such difference. Where new or further information obtained within 12
months since the acquisition date reveals that relevant conditions were present at the acquisition date,
and the economic benefit brought by deductible temporary difference at the acquisition date can be
realized for expected acquiree, relevant deferred tax assets shall be recognized, goodwill shall be
decreased; where the goodwill is not sufficient to offset, the balance shall be recognized as current
profits and losses; except aforesaid conditions, deferred tax assets which are recognized to be linked
with business merger must be included in the current profits and losses.
④ Temporary difference generated by consolidation and offset
When the Company prepares the consolidated financial statements, where there is a temporary
difference between the book value of assets and liabilities in the consolidated balance sheet and the
tax base of the taxable entity to which they belong due to the offset of unrealized gains and losses
from internal sales, the deferred tax assets or deferred tax liabilities shall be recognized in the
consolidated balance sheet, and the income tax expenses in the consolidated income statement shall
be adjusted at the same time, except for the deferred income tax related to transactions or events
directly included in owners' equity and business merger.
⑤ Equity-settled share-based payment
If the tax law stipulates that the expenses related to share-based payment are allowed to be
deducted before tax, during the period when the costs and expenses are recognized in accordance
with the provisions of the accounting standards, the Company calculates and determines the tax base
and the temporary differences arising therefrom according to the estimated amount deductible before
tax obtained at the end of the accounting period, and recognizes the relevant deferred income tax
134
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
when the recognition conditions are met. Where the amount that can be deducted before tax in the
future period is expected to exceed the costs and expenses related to share-based payment recognized
in accordance with the provisions of the accounting standards, the income tax impact of the excess
part shall be directly included in the owners' equity.
31. Lease
(1) Accounting for operating leases
(1) Identification of lease
On the commencement date of the contract, the Company evaluates whether the contract is a
lease or includes a lease. If one party to the contract abalienates the right to control the use of one or
more identified assets within a certain period of time in exchange for consideration, the contract
should be a lease or should include a lease. In order to determine whether one party to the contract
has abalienated the right to control the use of the identified assets within a certain period of time, the
Company evaluates whether the customers in the contract are entitled to obtain almost all the
economic benefits arising from the use of the identified assets during the use period and to dominate
the use of the identified assets during the use period.
(2) Identification of separate lease
If the contract contains multiple separate leases at the same time, the Company will split the
contract and carry out accounting treatment on each separate lease. If the following conditions are
met at the same time, the right to use the identified assets constitutes a separate lease in the contract:
① the lessee may benefit from the separate use of the assets or the use of the assets with other easily
available resources; ② the assets are not highly dependent on or related to other assets in the contract.
(3) Accounting treatment method of the Company as the lessee
On the commencement date of the lease term, the Company recognizes leases with a lease term
of not more than 12 months and without a purchase option as short-term leases and leases with a
lower value when the single leased asset is a brand-new asset as leases of low-value assets. Where
135
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
the Company subleases or intends to sublease the leased asset, the original lease shall not be
recognized as a lease of low-value assets.
For all short-term leases and leases of low-value assets, the Company charges lease payments
on a straight-line basis over the respective periods of the lease term to the cost of the related assets or
to the current profits and losses.
Except for the above short-term leases and leases of low-value assets that are simplified, the
Company recognizes right-of-use assets and lease liabilities for leases at the beginning of the lease
term.
① Right-of-use assets
The right-of-use assets refer to the lessee's right to use the leased assets during the lease term.
The right-of-use assets shall be initially measured at their cost on the commencement of the lease
term. The cost includes:
Initial measurement amount of lease liabilities;
Lease payments paid on or before the commencement of the lease term. The relevant amount of lease
incentives enjoyed shall be deduced if such incentives exist;
Initial direct cost of the lessee;
Cost expected to be occurred by the lessee due to dismantling and removing the leasing asset, recovering
its location or recovering it to the state agreed in the leasing terms. The Company recognizes and
measures the cost according to the recognition standard and measurement method of estimated liabilities
detailed in Note V. 27. The above-mentioned cost is included in the inventory cost incurred for the
production of inventory.
The Company classifies and accrues the depreciation of the right-of-use assets by the straight-
line method. If it is possible to reasonably determine that the ownership of the leased asset can be
acquired at the expiration of the lease term, the depreciation rate shall be determined according to the
category and the estimated ratio of net residual value of the right-of-use assets within the remaining
service life of the leased asset; if it is impossible to reasonably determine that the ownership of the
leased asset can be acquired at the expiration of the lease term, the depreciation rate shall be
136
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
determined according to the category of the right-of-use assets within the shorter period of the lease
term and the remaining service life of the leased asset.
② Lease liabilities
Lease liabilities shall be initially measured according to the present value of lease payments that
have not yet been made on the commencement date of lease term. The lease payment includes the
following five items:
For the fixed payment and substantial fixed payment, the amount related to lease incentive shall be
deducted if there is lease incentive;
Variable lease payment depending on index or ratio;
The exercise price of the purchase option, provided that the lessee reasonably determines that the option
will be exercised;
The amount to be paid for exercising the termination option, provided that the lease term reflects that the
lessee will exercise the termination option;
The amount expected to be paid according to the guaranteed residual value provided by the lessee.
In calculating the present value of the lease payment, the Company adopts the interest rate
implicit in the lease as the discount rate. If it is impossible to determine the interest rate implicit in
the lease, the Company will adopt the incremental borrowing rate as the discount rate. The difference
between the lease payments and their present value is recognized as an unrecognized financing
expense, and the interest expense is recognized at the discount rate of the present value of the
recognized lease payments during each period of the lease period and is charged to the current profits
and losses. Variable lease payments not considered in the measurement of lease liabilities are charged
to the current profits and losses when actually incurred.
In case of any changes in the amount of substantive fixed payments, the amount expected to be
payable for the residual guarantee, the index or rate used to determine the lease payments, or the
evaluation result or actual exercise of the call option, renewal option or termination option after the
inception date of the lease term, the Company will remeasure the lease liabilities at the present value
of the changed lease payments and adjust the book value of the right-of-use assets accordingly.
137
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
(4) Accounting treatment method of the Company as the lessor
On the lease commencement date, the Company divides the lease that substantially transfers
almost all risks and rewards related to the ownership of the leased assets into a finance lease, and
other leases other than finance leases are operating leases.
① Operating lease
During each period of the lease term, the Company recognizes lease receipts as rent revenue on
a straight-line basis and capitalizes and apportions the initial direct costs incurred on the same basis
as rent revenue, which shall be charged to the current profits and losses. The Company's variable
lease payment which is related to operating lease and not included in lease receipts is included in the
current profits and losses when it actually occurs.
② Finance lease
On the lease commencement date, the Company recognizes the finance leases receivable
according to the net investment in a lease (equivalent to the sum of the unguaranteed residual value
and the present value of the lease receipts that have not yet been received at the commencement of
lease term which is discounted at the interest rate implicit in lease), and derecognizes the finance
lease assets. During each period of the lease term, the Company calculates and recognizes interest
revenue at the interest rate of the lease.
The Company's variable lease payment which is not included in the measurement of net
investment in a lease is included in the current profits and losses when it actually occurs.
(5) Accounting treatment on lease change
① Lease change taken as a separate lease
If the lease changes and meets the following conditions at the same time, the Company will take
the lease change as a separate lease for the accounting treatment: A. The lease change expands the
lease scope by increasing the right to use one or more leased assets; B. The increased consideration
138
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
is equivalent to the amount by adjusting the separate price of the expanded lease scope according to
the contract.
② Lease change not taken as a separate lease
A. The Company as the lessee
On the effective date of the lease change, the Company will determine a new lease term and use
the revised discount rate to discount the changed lease payment to re-measure the lease liabilities. In
calculating the present value of the changed lease payment, the Company adopts the interest rate
implicit in lease in the remaining lease term as the discount rate. If it is impossible to determine the
interest rate implicit in lease in the remaining lease term, the Company will adopt the incremental
borrowing rate on the effective date of the lease change as the discount rate.
As for the impact of the above adjustment of lease liabilities, the Company carries out the
accounting treatment according to the following circumstances:
If the lease scope is reduced or the lease term is shortened due to the lease change, the Company will
reduce the book value of the right-of-use asset and include the relevant gains or losses from the partial
termination or complete termination of the lease in the current profits and losses.
For other lease changes, the Company will adjust the book value of the right-to-use asset accordingly.
B. The Company as the lessor
If there is a change in the operating lease, the Company will take it as a new lease from the
effective date of the change to carry out accounting treatment, and the lease receipts received in
advance or receivable related to the lease before the change will be regarded as the receipts for the
new lease.
For the change of finance lease not regarded as a separate lease for accounting treatment, the
Company shall treat the changed lease under the following circumstances respectively: If the lease
change takes effect on the lease commencement date and the lease will be classified as an operating
lease, the Company will take it as a new lease for accounting treatment from the effective date of
lease change, and take the net investment in the lease before the effective date of lease change as the
139
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
book value of the leased asset. If the lease change takes effect on the lease commencement date and
the lease will be classified as a finance lease, the Company shall carry out accounting treatment in
accordance with the provisions on modifying or renegotiating the contract.
(6) Sale and leaseback transaction
The Company evaluates the asset transfer in the sale and leaseback transaction to assess and
determine whether it is classified as sales according to Note V. 31.
① The Company as the seller (lessee)
If the asset transfer in the sale and leaseback transaction is not classified as sales, the Company
will continue to recognize the transferred asset, and meanwhile, recognize a financial liability equal
to the transferred revenue, and carry out accounting treatment on the financial liability in accordance
with Note III. 10. If the asset transfer is classified as sales, the Company will measure the right-of-
use assets formed by sale and leaseback according to the part of the book value of the original asset
related to the right of use obtained by leaseback, and recognize the related gains or losses for the
rights transferred to the lessor only.
② The Company as the buyer (lessor)
If the transfer of assets in the sale and leaseback transaction is not a sale, the Company does not
recognize the transferred assets, but recognizes a financial asset with an amount equal to the
transferred revenue, and carries out accounting treatment for the financial assets according to Note
III. 10. If the transfer of assets is a sale, the Company carries out accounting treatment for asset
purchase and asset lease according to other applicable accounting standards for business enterprises.
(2) Accounting for finance leases
32. Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
□ Applicable Not applicable
140
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
(2) Changes in significant accounting estimates
□ Applicable Not applicable
(3) Conditions of the first implementation of new accounting standards from 2023 to adjust the relevant items in financial
statements at the beginning of the first implementation year
□ Applicable Not applicable
VI. Taxes
1. Main taxes and tax rates
Tax type Taxation basis Tax rate
Value-added tax (VAT) Sales of goods or provision of taxable services 13%, 9%, 5%, 6%, 3%
Consumption tax Sales of goods 10%
City maintenance and construction tax Turnover taxes payable 7%
Corporate income tax Taxable income 20%、25%
For ad valorem collection, 1.2% of the remaining
value after 30% of the original value of the property is
Property tax 1.2%、12%
deducted by lump sum; for rent-based collection, 12%
of the rent revenue
Educational surcharges Turnover taxes payable 3%
Local educational surcharges Turnover taxes payable 2%
Disclosure statement of taxable entities with different corporate income tax rates
Name of taxable entity Income tax rate
Shenzhen Xinyongtong Motor Vehicle Inspection Equipment
20%
Co., Ltd.
Shenzhen Tellus Chuangying Technology Co., Ltd. 20%
Other taxable entities other than the above 25%
2. Tax preference
According to the Notice on Implementing the Inclusive Tax Reduction and Exemption Policies
for Micro and Small Enterprises (CS [2019] No.13) issued by the State Taxation Administration,
Shenzhen Xinyongtong Motor Vehicle Inspection Equipment Co., Ltd. and Shenzhen Tellus
Chuangying Technology Co., Ltd. enjoy preferential tax policies for small and micro enterprises. The
enterprise income tax is calculated and paid at the rate of 20%.
VII. Notes to Consolidated Financial Statements
1. Cash at bank and on hand
Unit: RMB
Item Ending balance Beginning balance
141
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Cash on hand 11,377.69 25,673.67
Cash at bank 207,324,785.31 394,258,891.55
Other cash at bank and on hand 65,084,078.88 18,743,762.14
Total 272,420,241.88 413,028,327.36
Other instructions
RMB 10,665,656.00 in the bank deposits is the supervision fund for the Company's Tellus-Gmond Gold Jewelry
Industrial Park Upgrading and Reconstruction Project Plot 03; RMB 233,485.80 is the futures option account
deposit. In addition, there are no other funds with limited use and potential recovery risk due to mortgage, pledge
or freezing in the ending cash at bank and on hand.
2. Trading financial assets
Unit: RMB
Item Ending balance Beginning balance
Financial assets at fair value through
293,350,365.44 176,133,569.95
profit or loss
Where:
Structured deposits and financial
293,350,365.44 176,133,569.95
products
Where:
Total 293,350,365.44 176,133,569.95
3. Derivative financial assets
Unit: RMB
Item Ending balance Beginning balance
Hedging instruments 1,760.00 0.00
Total 1,760.00
4. Notes receivable
(1) Classified presentation of notes receivable
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance notes 20,000,000.00 87,812,500.00
Total 20,000,000.00 87,812,500.00
If the bad debt provision for notes receivable is withdrawn in accordance with the general model of expected credit losses, information
related to bad debt provision shall be disclosed by reference to the disclosure method of other receivables:
□ Applicable Not applicable
(2) Notes receivable endorsed or discounted by the Company at the end of the period and not yet due at the
balance sheet date:
Unit: RMB
142
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Derecognition amount at the end of the Non-derecognition amount at the end of
Item
period the period
Bank acceptance notes 67,812,500.00 20,000,000.00
Total 67,812,500.00 20,000,000.00
5. Accounts receivable
(1) Classified disclosure of accounts receivable
Unit: RMB
Ending balance Beginning balance
Provision for bad Provision for bad
Book balance Book balance
debts debts
Categor
y Proporti Book Proporti Book
Proporti on of value Proporti on of value
Amount Amount Amount Amount
on provisio on provisio
n n
Account
s
receivab
le with
provisio 48,746,5 48,746,5 48,781,4 48,781,4
21.07% 100.00% 53.63% 100.00%
n for bad 83.16 83.16 85.16 85.16
debts
made on
a single
basis
Wher
e:
Account
s
receivab
le with
182,630, 416,552. 182,214, 42,175,5 423,402. 41,752,1
provisio 78.93% 0.23% 46.37% 1.00%
603.90 43 051.47 81.79 23 79.56
n for bad
debts
made by
portfolio
Wher
e:
Aging 45,336,5 416,552. 44,920,0 41,508,6 416,732. 41,091,8
19.59% 0.92% 45.64% 1.00%
portfolio 97.14 43 44.71 02.26 43 69.83
Jewelry
sales 137,294, 137,294, 666,979. 660,309.
59.34% 0.00% 0.73% 6,669.80 1.00%
business 006.76 006.76 53 73
portfolio
231,377, 49,163,1 182,214, 90,957,0 49,204,8 41,752,1
Total 100.00% 21.25% 100.00% 54.10%
187.06 35.59 051.47 66.95 87.39 79.56
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general mode
of expected credit loss to withdraw bad debt provision of other receivables.
Applicable □ Not applicable
143
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (inclusive) 182,627,243.90
Over 3 years 48,749,943.16
Over 5 years 48,749,943.16
Total 231,377,187.06
(2) Bad debt provision provided, recovered or reversed in the current period
Bad debt provision provided in the reporting period:
Unit: RMB
Amount changed in the current period
Category Beginning balance Recovery or Ending balance
Provision Write-off Others
reversal
Provision for
bad debts made
48,781,485.16 34,902.00 48,746,583.16
on an
individual basis
Provision for
bad debts made 423,402.23 6,669.80 180.00 416,552.43
by portfolio
Total 49,204,887.39 0.00 6,669.80 0.00 35,082.00 49,163,135.59
(3) Accounts receivable of the top five ending balance by the owing party
Unit: RMB
Proportion in the total
Ending balance of Ending balance of provision
Item ending balance of
accounts receivable for bad debts
accounts receivable
Shenzhen Foreway Jewellery Group Co.,
49,639,310.00 21.45%
Ltd.
Shenzhen Mingfeng Jewelry Co., Ltd. 29,853,960.00 12.90%
Shenzhen Yuepengjin E-commerce Co.,
29,768,050.00 12.87%
Ltd.
Shenzhen Xingguangda Jewelry
13,849,800.00 5.99%
Industrial Co., Ltd.
Shenzhen Zhanpeng Jewelry Co., Ltd. 12,695,200.00 5.49%
Total 135,806,320.00 58.70%
6. Advances to suppliers
(1) Advances to suppliers by aging
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 53,588,828.71 99.98% 8,114,727.00 99.92%
144
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
1-2 years 0.00% 0.00
2-3 years 0.00% 0.00
Over 3 years 12,525.94 0.02% 12,525.94 0.08%
Total 53,601,354.65 8,127,252.94
(2) Advances to suppliers with top five ending balances by the suppliers
Proportion in total ending
Item Balance as of June 30, 2023 balance of advances to suppliers
(%)
Shanghai Gold Exchange 25,500,000.00 47.57%
LAXMI DIAMOND PVT LTD 8,659,197.28 16.15%
RIOGANIC LIMITED 6,320,980.01 11.79%
Shenzhen Tiangang Commercial Exhibition
846,531.78 1.58%
Equipment Technology Co., Ltd.
FAW Toyota Motor Sales Co., Ltd. 634,600.37 1.18%
Total 41,961,309.44 78.28%
7. Other receivables
Unit: RMB
Item Ending balance Beginning balance
Dividends receivable 1,852,766.21 1,852,766.21
Other receivables 22,064,222.99 5,810,804.66
Total 23,916,989.20 7,663,570.87
(1) Dividends receivable
1) Category of dividends receivable
Unit: RMB
Project (or Investee) Ending balance Beginning balance
China Pufa Machinery Industry Co., Ltd. 1,852,766.21 1,852,766.21
Total 1,852,766.21 1,852,766.21
2) Significant dividends receivable aged over 1 year
Unit: RMB
Whether impairment
Reason for non-
Project (or Investee) Ending balance Aging occurs and its
recovery
judgment basis
The financial and
operating conditions of
China Pufa Machinery the Company are
547,184.35 3-4 years Not paid yet
Industry Co., Ltd. normal, and the
dividends receivable
are not impaired.
145
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Total 547,184.35
3) Withdrawal of bad debt provision
□ Applicable Not applicable
(2) Other receivables
1) Classification of other receivables by nature
Unit: RMB
Payment nature Ending book balance Beginning book balance
Security deposit 948,438.95 1,182,793.87
Reserve fund 100,440.00 0.00
Suspense payment receivable 71,491,665.80 57,765,312.21
Total 72,540,544.75 58,948,106.08
2) Withdrawal of bad debt provision
Unit: RMB
Stage I Stage II Stage III
Expected credit loss
Expected credit loss
Provision for bad debts Expected credit within the whole Total
within the whole
loss in the next 12 duration (credit
duration (credit
months impairment not
impairment occurred)
occurred)
Balance as of January 1, 2023 42,417.67 0.00 53,094,883.75 53,137,301.42
Balance as of January 1, 2023 in
the current period
Other changes 8,637.92 0.00 2,652,341.74 2,660,979.66
Balance as of June 30, 2023 33,779.75 0.00 50,442,542.01 50,476,321.76
Changes of book balance with significant amount changed of loss provision in the reporting period
□ Applicable Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (inclusive) 18,809,481.17
1-2 years 295,930.24
2-3 years 446,078.00
Over 3 years 52,989,055.34
Over 5 years 52,989,055.34
Total 72,540,544.75
3) Other receivables of the top five ending balances by the owing party
Unit: RMB
146
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Proportion to
Ending balance
Nature of ending balance
Item Ending balance Aging of provision for
payment of other
bad debts
receivables
China Automobile South China Transaction Over 3
9,832,956.37 13.56% 9,832,956.37
Automobile Sales Co., Ltd. payments years
Shenzhen Nanfang Industry and Transaction Over 3
7,359,060.75 10.14% 7,359,060.75
Trade Industrial Co., Ltd. payments years
Shenzhen Zhonghao (Group) Co., Transaction Over 3
5,000,000.00 6.89% 5,000,000.00
Ltd. payments years
Shenzhen Kaifeng Special Transaction Over 3
4,413,728.50 6.08% 2,206,864.25
Automobile Industry Co., Ltd. payments years
Shenzhen Jinbeili Electric Transaction Over 3
2,706,983.51 3.73% 2,706,983.51
Appliance Co., Ltd. payments years
Total 29,312,729.13 40.41% 27,105,864.88
8. Inventories
Whether the Company needs to comply with the disclosure requirements for the real estate industry
No
(1) Inventory classification
Unit: RMB
Ending balance Beginning balance
Provision for Provision for
decline in the decline in the
value of value of
Item inventories or inventories or
Book balance impairment Book value Book balance impairment Book value
provisions of provisions of
contract contract
performance performance
cost cost
Raw materials 35,338,496.85 14,915,234.15 20,423,262.70 32,186,382.35 14,959,426.51 17,226,955.84
Goods in stocks 29,308,360.41 8,859,535.03 20,448,825.38 35,204,271.37 15,553,427.93 19,650,843.44
Hedged item 898,501.98 898,501.98 79,191,876.11 79,191,876.11
Total 65,545,359.24 23,774,769.18 41,770,590.06 146,582,529.83 30,512,854.44 116,069,675.39
The Company shall abide by the disclosure requirements of the Guidelines of Shenzhen Stock Exchange for Self-Regulatory
Supervision of Listed Companies No. 3 - Industry Information Disclosure for "jewelry-related business".
(2) Provision for decline in the value of inventories/contract performance cost impairment
Unit: RMB
Increase in the current period Decrease in the current period
Beginning
Item Reversal or Ending balance
balance Provision Others Others
write-off
Raw materials 14,959,426.51 3,700.50 159.29 47,733.57 14,915,234.15
Goods in stocks 15,553,427.93 1,402,510.65 5,291,382.25 8,859,535.03
Total 30,512,854.44 3,700.50 1,402,669.94 5,339,115.82 23,774,769.18
147
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
9. Other current assets
Unit: RMB
Item Ending balance Beginning balance
Input VAT to be deducted 8,050,745.85 17,764,057.26
Taxes pre-paid 582,654.29
Large-denomination certificates of
111,088,429.66
deposit maturing within one year
Total 119,139,175.51 18,346,711.55
10. Long-term receivables
(1) Long-term receivables
Unit: RMB
Ending balance Beginning balance Interval
of
Item Provision for bad Book Provision for Book
Book balance Book balance discount
debts value bad debts value rate
Concerned
intercourse 2,179,203.68 2,179,203.68 0.00 2,179,203.68 2,179,203.68 0.00
funds
Total 2,179,203.68 2,179,203.68 2,179,203.68 2,179,203.68
Changes of book balance with significant amount changed of loss provision in the reporting period
□ Applicable Not applicable
11. Long-term equity investments
Unit: RMB
Changes in the current period
Othe
Profit or Ending
r
loss on balance
Beginnin Addi comp Chan Cash Ending
Red investme of
g balance tiona rehen ges dividends Impai balance
Investee uced nts impairm
(book l sive in and rment Oth (book
inve recogniz ent
value) inves inco other profits provis ers value)
stme ed under provisio
tmen me equit declared ion
nt the n
t adjus y to pay
equity
tmen
method
ts
I. Joint ventures
Shenzhen
Tellus-Gmond 47,143,72 8,384,66 15,000,00 40,528,3
Investment Co., 0.13 3.51 0.00 83.64
Ltd.
Shenzhen
-
Telixing 14,200,89 13,829,8
371,042.
Investment Co., 7.13 55.00
13
Ltd. [Note 3]
61,344,61 8,013,62 15,000,00 54,358,2
Subtotal
7.26 1.38 0.00 38.64
148
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
II. Associates
Shenzhen
Renfu Tellus -
19,679,74 14,677,7
Automobiles 5,002,01
8.68 38.59
Service Co., 0.09
Ltd.
Shenzhen
Xinyongtong
Oil Pump and
Environmental
Protection Co.,
Ltd.
Shenzhen
Xinyongtong
Consulting Co.,
Ltd.
Shenzhen Tellus
Automobile
Service Chain
Co., Ltd. [Note
2]
Shenzhen
Xinyongtong
Automobile
Service Co.,
Ltd. [Note 2]
Shenzhen
Yongtong
Xinda Testing
Equipment Co.,
Ltd. [Note 2]
Hunan
Changyang 1,810,54
Industrial Co., 0.70
Ltd. [Note 1]
Shenzhen
Jiecheng 3,225,00
Electronics Co., 0.00
Ltd. [Note 1]
Shenzhen
Xiandao New 4,751,62
Materials Co., 1.62
Ltd. [Note 1]
China
Automotive
Industry 400,000.
Shenzhen 00
Trading Co.,
Ltd. [Note 1]
Shenzhen
Universal
500,000.
Standard Parts
00
Co., Ltd. [Note
1]
Shenzhen China
2,250,00
Automobile
0.00
South China
149
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Automobile
Sales Co., Ltd.
[Note 1]
Shenzhen
Bailiyuan
1,320,00
Power Supply
0.00
Co., Ltd. [Note
1]
Shenzhen
Yimin Auto 200,001.
Trading Co., 10
Ltd. [Note 1]
Shenzhen Torch
Spark Plug 17,849.2
Industry Co., 0
Ltd.
-
19,679,74 14,677,7 14,475,0
Subtotal 5,002,01
8.68 38.59 12.62
0.09
81,024,36 3,011,61 15,000,00 69,035,9 14,475,0
Total
5.94 1.29 0.00 77.23 12.62
Other instructions
Note 1: The industrial and commercial registration of such companies has been revoked, and the Company has
made full provision for the impairment of such long-term equity investments.
Note 2: After the book balance of such long-term equity investments is adjusted according to the profit and
loss recognized by the equity method, the book balance is RMB 0.
Note 3: The Company holds 51% equity of such company. According to the relevant provisions of the Articles
of Association of such company, the voting rights held by the Company are not sufficient to unilaterally pass the
voting of the Board of Shareholders and the Board of Directors on the relevant decision-making proposals of such
company, and the Company does not control such company.
The operation period of Shenzhen Hanli High Tech Ceramics Co., Ltd. is from September 21, 1993 to
September 21, 1998. The operation period of Shenzhen South Automobile Maintenance Center is from July 12,
1994 to July 11, 2002. These companies have ceased their business activities for many years and have not
participated in the annual industrial and commercial inspection, so their industrial and commercial registration has
been revoked. The Company cannot effectively control these companies, and these companies are not included in
the consolidation scope of the Company's consolidated financial statements. The book value of the Company's
investment in these companies is zero.
150
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
12. Other equity instrument investments
Unit: RMB
Item Ending balance Beginning balance
Investment in unlisted equity instruments 29,401,309.85 10,176,617.20
Total 29,401,309.85 10,176,617.20
Non-trading equity instrument investment in the reporting period disclosed by items
Unit: RMB
Amount of Reason for
Dividen other other
d Cumula Cumul comprehensiv Reasons for being designated as comprehensi
Description revenue tive ative e income at fair value through other ve income
recogniz profits losses transferred to comprehensive income transferred
ed retained to retained
earnings earnings
China Pufa Machinery Strategic investments expected
Industry Co., Ltd. to be held in the long term
At present, it has entered the
stage of compulsory
liquidation. The parent
Shenzhen SDG Huari
company no longer has control,
Automobile Enterprise Co.,
common control or significant
Ltd.
influence over it and has
transferred its investment into
financial assets.
13. Investment properties
(1) Investment properties measured at cost
Applicable □ Not applicable
Unit: RMB
Projects
Premises and under
Item Land use right Total
buildings constructi
on
I. Original book value
1. Beginning balance 630,510,174.94 49,079,520.00 679,589,694.94
2. Increase in the current period 481,077,213.60 46,587,562.86 527,664,776.46
(1) Outsourcing
(2) Transferred from inventories, fixed
481,077,213.60 46,587,562.86 527,664,776.46
assets or construction in progress
(3) Increase from business merger
3. Decrease in the current period
(1) Disposal
(2) Other transfer-out
151
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
4. Ending balance 1,111,587,388.54 95,667,082.86 1,207,254,471.40
II. Accumulated depreciation and accumulated
amortization
1. Beginning balance 158,767,972.34 4,461,583.15 163,229,555.49
2. Increase in the current period 12,635,590.14 250,920.45 12,886,510.59
(1) Provision or amortization 12,635,590.14 250,920.45 12,886,510.59
3. Decrease in the current period
(1) Disposal
(2) Other transfer-out
4. Ending balance 171,403,562.48 4,712,503.60 176,116,066.08
III. Provision for impairment
1. Beginning balance
2. Increase in the current period
(1) Provision
3. Decrease in the current period
(1) Disposal
(2) Other transfer-out
4. Ending balance
IV. Book value
1. Ending book value 940,183,826.06 90,954,579.26 1,031,138,405.32
2. Beginning book value 471,742,202.60 44,617,936.85 516,360,139.45
(2) Investment properties measured at fair value
□ Applicable Not applicable
(3) Investment properties whose property certificates are not obtained
Unit: RMB
Reason(s) for the failure to transact the
Item Book value
property certificate
The property ownership certificate has
CNNC office building 4,069,138.47 not been handled due to historical
reasons.
The property ownership certificate has
Building 12, Sungang 8,910.05 not been handled due to historical
reasons.
The property ownership certificate has
Shops in Building 12, Sungang 27,102.03 not been handled due to historical
reasons.
Total 4,105,150.55
152
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
14. Fixed assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 84,382,315.00 102,689,546.42
Total 84,382,315.00 102,689,546.42
(1) Details of fixed assets
Unit: RMB
Premises and Machinery Transportation Electronic Office and other
Item Total
buildings equipment equipment equipment equipment
I. Original book
value:
1. Beginning 284,069,783. 22,298,159.4 12,363,375.3 332,181,147.
5,475,367.29 7,974,462.51
balance 17 0 8 75
2. Increase in the
559,625.73 195,678.96 755,304.69
current period
(1) Purchase 559,625.73 195,678.96 755,304.69
(2) Transfer
from construction in
progress
(3) Increase
from business merger
3. Decrease in 64,346,975.9 77,252,472.1
4,641,519.00 3,900,602.04 3,571,624.05 791,751.15
the current period 1 5
(1) Disposal
2,962,403.88 2,955.00 25,424.42 2,990,783.30
or retirement
64,346,975.9 74,261,688.8
(2) Others 4,641,519.00 938,198.16 3,568,669.05 766,326.73
1 5
4. Ending 219,722,807. 17,656,640.4 255,683,980.
2,134,390.98 8,987,430.29 7,182,711.36
balance 26 0 29
II. Accumulated
depreciation
1. Beginning 197,916,077. 10,908,592.9 225,122,748.
3,795,449.74 8,693,486.83 3,809,141.48
balance 02 4 01
2. Increase in the
2,936,987.04 510,513.85 215,038.04 403,457.57 415,271.08 4,481,267.58
current period
(1)
2,936,987.04 510,513.85 215,038.04 403,457.57 415,271.08 4,481,267.58
Provision
3. Decrease in 53,277,719.2 62,646,493.5
3,773,863.98 2,234,132.29 3,048,838.23 311,939.80
the current period 6 6
(1) Disposal
1,389,753.95 2,866.35 1,392,620.30
or retirement
53,277,719.2 61,253,873.2
(2) Others 3,773,863.98 844,378.34 3,045,971.88 311,939.80
6 6
147,575,344. 166,957,522.
4. Ending 7,645,242.81 1,776,355.49 6,048,106.17 3,912,472.76
80 03
153
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
balance
III. Provision for
impairment
1. Beginning
3,836,768.43 411,135.22 6,165.00 49,924.86 64,859.81 4,368,853.32
balance
2. Increase in the
current period
(1)
Provision
3. Decrease in
5,215.34 19,494.72 24,710.06
the current period
(1) Disposal
or retirement
(2) Others 5,215.34 19,494.72 24,710.06
4. Ending
3,836,768.43 405,919.88 6,165.00 30,430.14 64,859.81 4,344,143.26
balance
IV. Book value
1. Ending book 68,310,694.0 84,382,315.0
9,605,477.71 351,870.49 2,908,893.98 3,205,378.79
value 3 0
2. Beginning 82,316,937.7 10,978,431.2 102,689,546.
1,673,752.55 3,619,963.69 4,100,461.22
book value 2 4 42
(2) Fixed assets leased out by operating lease
Unit: RMB
Item Ending book value
Premises and buildings 56,228,095.65
Total 56,228,095.65
(3) Fixed assets whose property certificates are not obtained
Unit: RMB
Reason(s) for the failure to transact the
Item Book value
property certificate
The property ownership certificate has
Yongtong Building 23,859,074.77 not been handled due to historical
reasons.
The property ownership certificate has
Automobile Building 13,224,506.59 not been handled due to historical
reasons.
Underground Parking Lot of Tellus The property ownership certificate of the
7,707,820.28
Building parking lot cannot be handled.
The property ownership certificate has
Floor 3-5, Plant 1#, 2# and 3#, Taoyuan
2,881,040.65 not been handled due to historical
Road
reasons.
Property ownership certificate
Transfer floor of Tellus Building 1,258,630.64
unavailable
The property ownership certificate has
Building 16, Taohuayuan 1,068,260.34 not been handled due to historical
reasons.
154
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
The property ownership certificate has
Shuibei Zhongtian Complex Building 663,758.10 not been handled due to historical
reasons.
The property ownership certificate has
First Floor of Bao'an Commercial and
715,105.88 not been handled due to historical
Residential Building
reasons.
The property ownership certificate has
Warehouse 729,235.69 not been handled due to historical
reasons.
The property ownership certificate has
Warehouse of Trade Department 52,808.53 not been handled due to historical
reasons.
The property ownership certificate has
Songquan Apartment (mixed) 10,086.79 not been handled due to historical
reasons.
The property ownership certificate has
Guest House in Renmin North Road 5,902.41 not been handled due to historical
reasons.
Total 52,176,230.67
15. Construction in progress
Unit: RMB
Item Ending balance Beginning balance
Projects under construction 6,860,682.96 409,933,559.27
Total 6,860,682.96 409,933,559.27
(1) Information of construction in progress
Unit: RMB
Ending balance Beginning balance
Provision
Item Provision
for
Book balance for Book value Book balance Book value
impairme
impairment
nt
Tellus Jinzuan
409,808,714.95 409,808,714.95
Trading Building
Other works 6,860,682.96 6,860,682.96 124,844.32 124,844.32
Total 6,860,682.96 6,860,682.96 409,933,559.27 409,933,559.27
(2) Changes in major construction-in-progress projects in the current period
Unit: RMB
Prop
Othe Includin Capi
ortio
r g: taliz
Fixed n of Con Accumul
decr Amount ation
Increase assets Endi accu stru ated Sour
Beginnin ease of rate
Descri in the transferre ng mula ctio amount ce of
Budget g s in capitaliz for
ption current d into the bala ted n of fund
balance the ed curre
period current nce inves prog capitalize s
curre interest nt
period tmen ress d interest
nt in the inter
t in
perio current est
const
155
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
d ructi period
ons
to
budg
et
Tellus
Jinzua
n
491,060, 409,808, 81,253,7 491,062, 100.0 100 8,418,62 1,510,3 3.60 Othe
Tradin 0.00
000.00 714.95 22.19 437.14 0% % 2.82 24.98 % rs
g
Buildi
ng
491,060, 409,808, 81,253,7 491,062, 8,418,62 1,510,3 3.60
Total 0.00 0.00
000.00 714.95 22.19 437.14 2.82 24.98 %
16. Right-of-use assets
Unit: RMB
Item Premises and buildings Total
I. Original book value
1. Beginning balance 10,149,723.83 10,149,723.83
2. Increase in the current period 72,202,014.27 72,202,014.27
3. Decrease in the current period
4. Ending balance 82,351,738.10 82,351,738.10
II. Accumulated depreciation
1. Beginning balance 5,968,480.97 5,968,480.97
2. Increase in the current period 1,801,160.77 1,801,160.77
(1) Provision 1,801,160.77 1,801,160.77
3. Decrease in the current period
(1) Disposal
4. Ending balance 7,769,641.74 7,769,641.74
III. Provision for impairment
1. Beginning balance
2. Increase in the current period
(1) Provision
3. Decrease in the current period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 74,582,096.36 74,582,096.36
2. Beginning book value 4,181,242.86 4,181,242.86
156
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
17. Intangible assets
(1) Intangible assets
Unit: RMB
Non-
Paten patente
Item Land use right t d Trademark Software Total
rights technol
ogies
I. Original book value
1. Beginning balance 50,661,450.00 128,500.00 6,981,220.20 57,771,170.20
2. Increase in the current
1,485,157.77 0.00 1,228,679.24 2,713,837.01
period
(1) Purchase 1,485,157.77 1,228,679.24 2,713,837.01
(2) Internal R&D
(3) Increase from
business merger
3. Decrease in the current
50,178,756.77 50,178,756.77
period
(1) Disposal
(2) Transferred to investment
50,178,756.77 50,178,756.77
properties
4. Ending balance 1,967,851.00 128,500.00 8,209,899.44 10,306,250.44
II. Accumulated amortization
1. Beginning balance 3,945,345.32 104,392.52 3,913,416.64 7,963,154.48
2. Increase in the current
396,739.50 2,674.98 698,675.90 1,098,090.38
period
(1) Provision 396,739.50 2,674.98 698,675.90 1,098,090.38
3. Decrease in the current
3,591,193.91 3,591,193.91
period
(1) Disposal
(2) Transferred to investment
3,591,193.91 3,591,193.91
properties
4. Ending balance 750,890.91 107,067.50 4,612,092.54 5,470,050.95
III. Provision for impairment
1. Beginning balance
2. Increase in the current
period
(1) Provision
3. Decrease in the current
period
(1) Disposal
4. Ending balance
157
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
IV. Book value
1. Ending book value 1,216,960.09 21,432.50 3,597,806.90 4,836,199.49
2. Beginning book value 46,716,104.68 24,107.48 3,067,803.56 49,808,015.72
18. Long-term deferred expenses
Unit: RMB
Increase in the Amortization in
Item Beginning balance Other decreases Ending balance
current period the current period
Renovation costs 25,876,099.49 5,644,434.57 2,042,705.37 29,477,828.69
Total 25,876,099.49 5,644,434.57 2,042,705.37 29,477,828.69
19. Deferred tax assets/deferred tax liabilities
(1) Un-offset deferred tax assets
Unit: RMB
Ending balance Beginning balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
difference difference
Provision for credit
34,072,935.08 8,518,233.77 34,072,935.08 8,518,233.77
impairments
Differences in tax base 1,012,844.96 253,211.24
Total 35,085,780.04 8,771,445.01 34,072,935.08 8,518,233.77
(2) Un-offset deferred tax liabilities
Unit: RMB
Ending balance Beginning balance
Item Taxable temporary Taxable temporary
Deferred tax liabilities Deferred tax liabilities
difference difference
Taxable temporary
4,761,547.32 1,190,386.83 4,540,124.44 1,135,031.11
difference
Total 4,761,547.32 1,190,386.83 4,540,124.44 1,135,031.11
(3) Deferred tax assets or liabilities presented in net amount after being offset
Unit: RMB
Ending mutual offset Beginning mutual
Ending balance of Beginning balance of
amount between offset amount between
Item deferred tax assets or deferred tax assets or
deferred tax assets and deferred tax assets and
liabilities after offset liabilities after offset
liabilities liabilities
Deferred tax assets 8,771,445.01 8,518,233.77
Deferred tax liabilities 1,190,386.83 1,135,031.11
158
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
(4) Breakdown of unrecognized deferred tax assets
Unit: RMB
Item Ending balance Beginning balance
Deductible temporary difference 120,401,290.25 128,561,177.79
Deductible losses 23,458,252.21 23,458,252.21
Total 143,859,542.46 152,019,430.00
(5) Deductible losses of unrecognized deferred tax assets will become mature and due in the following years
Unit: RMB
Year Ending amount Beginning amount Remarks
2023 0.00
2024 113,396.51 113,396.51
2025 9,002,510.80 9,002,510.80
2026 8,816,324.17 8,816,324.17
2027 5,526,020.73 5,526,020.73
Total 23,458,252.21 23,458,252.21
20. Other non-current assets
Unit: RMB
Ending balance Beginning balance
Provision Provision
Item for for
Book balance Book value Book balance Book value
impairme impairmen
nt t
Prepaid amount
for engineering 52,199,850.63 52,199,850.63 49,631,706.19 49,631,706.19
and equipment
Reclassification of
11,419,610.83 11,419,610.83 8,572,664.86 8,572,664.86
VAT debit balance
Fixed deposits and
interest over one 104,451,527.78 104,451,527.78 96,322,575.78 96,322,575.78
year
Total 168,070,989.24 168,070,989.24 154,526,946.83 154,526,946.83
21. Short-term borrowings
(1) Classification of short-term borrowing
Unit: RMB
Item Ending balance Beginning balance
Credit borrowings 150,000,000.00
Discounted borrowings of notes
20,000,000.00 20,000,000.00
receivable not derecognized
Total 170,000,000.00 20,000,000.00
159
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
22. Trading financial liabilities
Unit: RMB
Item Ending balance Beginning balance
Where:
Financial liabilities at fair value through
30,104,994.27 18,572,684.91
profit or loss designated
Where:
Gold leasing 30,104,994.27 18,572,684.91
Total 30,104,994.27 18,572,684.91
23. Derivative financial liabilities
Unit: RMB
Item Ending balance Beginning balance
Hedging instruments 489,360.00
Total 489,360.00
24. Accounts payable
(1) Presentation of accounts payable
Unit: RMB
Item Ending balance Beginning balance
Purchase payment for goods and services 27,382,979.64 5,397,040.27
Payment for engineering and equipment 140,840,710.16 119,319,760.44
Total 168,223,689.80 124,716,800.71
(2) Significant accounts payable with the aging over 1 year
Unit: RMB
Reasons for not repaying or carrying
Item Ending balance
forward
Shenzhen Yinglong Jian'an (Group) Co.,
28,318,821.13 Outstanding engineering
Ltd.
Shenzhen SDG Real Estate Co., Ltd. 6,054,855.46 Outstanding by related companies
Shenzhen Yinuo Construction
3,555,095.22 Outstanding engineering
Engineering Co., Ltd.
Shenzhen Cuilu Jewelry Co., Ltd. 1,120,000.00 Outstanding
Total 39,048,771.81
25. Advances from customers
(1) Presentation of advances from customers
Unit: RMB
Item Ending balance Beginning balance
Rent 11,644,915.56 6,119,377.90
160
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Total 11,644,915.56 6,119,377.90
26. Contract liabilities
Unit: RMB
Item Ending balance Beginning balance
Goods fees receivable in advance 31,204,952.37 4,581,999.11
Services fees receivable in advance 6,497,160.03 4,677,659.32
Total 37,702,112.40 9,259,658.43
27. Employee compensation payable
(1) Presentation of employee compensation payable
Unit: RMB
Increase in the current Decrease in the current
Item Beginning balance Ending balance
period period
I. Short-term employee
38,550,181.70 33,944,688.64 34,879,150.48 37,615,719.86
compensation
II. Post-employment
benefits-defined 2,416,981.28 2,416,981.28 0.00
contribution plan
III. Termination
2,754,230.00 2,754,230.00 0.00
benefits
Total 38,550,181.70 39,115,899.92 40,050,361.76 37,615,719.86
(2) Presentation of short-term compensation
Unit: RMB
Increase in the Decrease in the current
Item Beginning balance Ending balance
current period period
1. Wages, bonuses, allowances
37,708,023.44 29,933,303.45 30,783,685.75 36,857,641.14
and subsidies
2. Employee benefits 566,700.00 36,599.86 36,599.86 566,700.00
3. Social insurance 1,179,167.95 1,179,167.95
Including: Medical
1,057,441.08 1,057,441.08
insurance
Work injury
33,690.14 33,690.14
insurance
Maternity insurance 86,892.73 86,892.73
Other insurance expenses 1,144.00 1,144.00
4. Housing provident fund 1,816,290.19 1,816,290.19
5. Labor union funds and
275,458.26 541,415.58 625,495.12 191,378.72
employee education funds
8. Non-monetary welfare 437,911.61 437,911.61
Total 38,550,181.70 33,944,688.64 34,879,150.48 37,615,719.86
161
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
(3) Presentation of defined contribution plan
Unit: RMB
Increase in the current Decrease in the current
Item Beginning balance Ending balance
period period
1. Basic endowment
2,395,356.60 2,395,356.60
insurance
2. Unemployment
21,624.68 21,624.68
insurance
Total 2,416,981.28 2,416,981.28 0.00
28. Taxes payable
Unit: RMB
Item Ending balance Beginning balance
Value-added tax (VAT) 1,070,570.04 3,220,124.57
Consumption tax 7,964.60
Corporate income tax 4,768,968.87 6,942,460.17
Individual income tax 657,680.57 1,895,926.96
City maintenance and construction tax 79,380.49 178,605.67
Educational surcharges 42,390.08 86,070.40
Local educational surcharges 30,152.42 57,380.27
Land appreciation tax 5,362,682.64 5,362,682.64
Land use tax 124,009.89 40,949.07
Others 2,142,840.79 1,099,628.49
Total 14,278,675.79 18,891,792.84
29. Other payables
Unit: RMB
Item Ending balance Beginning balance
Dividends payable 12,069,632.96
Other payables 99,783,058.71 105,180,279.00
Total 111,852,691.67 105,180,279.00
(1) Dividends payable
Unit: RMB
Item Ending balance Beginning balance
Ordinary share dividend 12,069,632.96
Total 12,069,632.96
(2) Other payables
1) Other payables by nature of payment
Unit: RMB
162
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Item Ending balance Beginning balance
Security deposit 52,496,072.98 42,765,478.88
Current accounts associated 19,327,827.90 18,990,738.98
Withholdings 3,072,114.15 11,499,312.36
Temporary receipts payable 24,887,043.68 31,924,748.78
Total 99,783,058.71 105,180,279.00
2) Other important payables at aging of more than 1 year
Unit: RMB
Reasons for not repaying or carrying
Item Ending balance
forward
Hongkong Yujia Investment Limited 2,164,650.90 Outstanding by related companies
Total 2,164,650.90
30. Current portion of non-current liabilities
Unit: RMB
Item Ending balance Beginning balance
Current portion of lease liabilities 1,565,376.12 2,009,819.15
Total 1,565,376.12 2,009,819.15
31. Other current liabilities
Unit: RMB
Item Ending balance Beginning balance
Output VAT to be transferred 84,119.73 548,507.70
Reversal of notes receivable not
67,812,500.00
derecognized
Total 84,119.73 68,361,007.70
32. Long-term borrowings
(1) Classification of long-term borrowings
Unit: RMB
Item Ending balance Beginning balance
Mortgage loans 168,005,447.69 144,820,511.42
Total 168,005,447.69 144,820,511.42
33. Lease liabilities
Unit: RMB
Item Ending balance Beginning balance
Lease liabilities 73,155,478.11 2,926,184.93
Total 73,155,478.11 2,926,184.93
163
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
34. Long-term payables
Unit: RMB
Item Ending balance Beginning balance
Long-term payables 3,920,160.36 3,920,160.36
Total 3,920,160.36 3,920,160.36
(1) Long-term payables by nature of payment
Unit: RMB
Item Ending balance Beginning balance
Employee housing deposit 3,908,848.40 3,908,848.40
Grants for technology innovation
11,311.96 11,311.96
projects
Subtotal 3,920,160.36 3,920,160.36
Less: Current portion of long-term
payables
Total 3,920,160.36 3,920,160.36
35. Estimated liabilities
Unit: RMB
Item Ending balance Beginning balance Reason
Pending litigation 268,414.80 268,414.80
Total 268,414.80 268,414.80
36. Deferred income
Unit: RMB
Increase in the Decrease in the
Item Beginning balance Ending balance Reason
current period current period
Government
10,579,545.71 785,610.00 626,237.73 10,738,917.98 Asset-related
subsidies
Total 10,579,545.71 785,610.00 626,237.73 10,738,917.98
Items related to government subsidies:
Unit: RMB
Amount Amount for
Amount
Increase in included in writing
included in
subsidies non- down the Asset-
Liability Beginning other Other Ending
for the operating costs and related/inco
item balance income in changes balance
current revenue in expenses in me-related
the current
period the current the current
period
period period
Elevator
renovation
subsidy Asset-
91,273.80 91,273.80
funds for related
old elevator
renovation
164
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
and
reconstructi
on working
group in
Futian
District
Special
Funds for
Industrial
Transforma
tion and
Upgrading
3,069,472.5 3,069,472.5 Asset-
in Luohu 110,587.17
2 2 related
District in
2021 -
Industrial
Service
Platform
Project
Special
Funds for
Industrial
Transforma
tion and
Upgrading
1,778,172.9 1,615,129.5 Asset-
in Luohu 163,043.46
7 1 related
District in
2021 -
Green
Building
Support
Subsidy
Subsidy
Income
from
Projects for
Promoting
Consumpti
on and 3,922,104.5 3,629,125.8 Asset-
182,391.57
Improving 5 1 related
Support of
Commerce
Bureau of
Shenzhen
Municipal
in 2020
Special
Funds for
Green
Innovation
and
Developme 1,718,521.8 1,581,040.0 Asset-
137,481.78
nt in the 7 9 related
Field of
Engineerin
g
Constructio
n of
165
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Shenzhen
Municipal
Housing
and Urban-
rural
Developme
nt Bureau
Project
Supported
by Funds
for
Developme Asset-
785,610.00 32,733.75 752,876.25
nt of related
Energy-
saving
Building in
2022
10,579,545. 10,738,917. Asset-
Total 785,610.00 0.00 626,237.73 0.00 0.00
71 98 related
37. Share capital
Unit: RMB
Increase or decrease (+, -)
Conversion
Beginning balance Issuance Ending balance
Bonus of the reserve
of new Others Subtotal
shares funds into
shares
shares
Total shares 431,058,320.00 431,058,320.00
38. Capital reserves
Unit: RMB
Increase in the current Decrease in the current
Item Beginning balance Ending balance
period period
Capital premium (share
425,768,053.35 425,768,053.35
premium)
Other capital reserves 5,681,501.16 5,681,501.16
Total 431,449,554.51 431,449,554.51
39. Other comprehensive income
Unit: RMB
Amount incurred in the current period
Less: Amount Less: Attribut Attribut
Amount
included in Amount able to able to
incurred
Beginning other included in Less: the the Ending
Item before
balance comprehensiv other Income parent minorit balance
income tax
e income in comprehensi tax compan y
in the
the previous ve income in expenses y - net shareho
current
period and the previous of lders -
period
transferred to period and income net of
166
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
profit and loss transferred to tax income
in the current retained tax
period earnings in
the current
period
II. Other
comprehensiv
e income to be
subsequently 26,422.00 26,422.00
reclassified
into profit or
loss
Including:
Other
comprehensiv
e income to be
26,422.00 26,422.00
reclassified
into profit or
loss by the
equity method
Total other
comprehensiv 26,422.00 26,422.00
e income
40. Surplus reserves
Unit: RMB
Increase in the current Decrease in the current
Item Beginning balance Ending balance
period period
Statutory surplus
52,499,172.13 52,499,172.13
reserves
Total 52,499,172.13 52,499,172.13
41. Undistributed profit
Unit: RMB
Item Current period Previous period
Undistributed profits at the end of the
590,605,394.67 543,843,496.85
previous period before adjustment
Undistributed profits at the beginning of the
590,605,394.67 543,843,496.85
period after adjustment
Add: Net profit attributable to owners of the
44,139,962.93 43,480,236.19
parent company during the current period
Ordinary share dividends payable 12,069,632.96 10,781,545.75
Undistributed profits at the end of the period 622,675,724.64 576,542,187.29
42. Operating revenue and operating cost
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
167
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Revenue Cost Revenue Cost
Main business 702,184,781.46 608,012,821.75 245,186,251.37 187,271,730.10
Other businesses 2,651,629.48 591,816.65 4,828,900.86 1,072,447.45
Total 704,836,410.94 608,604,638.40 250,015,152.23 188,344,177.55
Relevant information of revenue:
Unit: RMB
Classification of
Segment 1 Segment 2 Revenue Total
contract
By type of product
Where:
Automobile sales 41,890,016.34 41,890,016.34
Automobile
maintenance and 11,014,291.51 11,014,291.51
testing
Leasing and services 115,235,431.84 115,235,431.84
Wholesale and retail of
536,696,671.25 536,696,671.25
jewelry
By operating regions
Including:
Shenzhen 704,836,410.94 704,836,410.94
By type of market or
customer
Including:
By contract type
Including:
By time of transfer of
goods
Including:
By contract term
Including:
By sales channel
Including:
Direct sales 704,836,410.94 704,836,410.94
Total
Information related to performance obligations: N/A
43. Taxes and surcharges
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
City maintenance and construction tax 625,625.14 179,352.95
Educational surcharges 446,539.19 127,757.65
Property tax 3,126,665.09 3,595,591.57
168
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Land use tax 136,660.83 229,898.56
Stamp duty 518,916.20 133,976.69
Other taxes 1,320.00 2,670.00
Total 4,855,726.45 4,269,247.42
44. Selling expenses
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Employee compensation 6,048,479.76 6,697,191.21
Advertising marketing expenses 2,008,639.20 355,969.09
Depreciation and amortization 1,576,507.45 1,835,480.94
Office expenses 178,798.04 294,600.87
Property, water and electricity fees 81,594.29 239,436.33
Transport and travel expenses 344,110.00 173,322.82
Insurance supervisory charges 173,654.37 102,004.55
Others 1,551,315.90 1,249,312.34
Total 11,963,099.01 10,947,318.15
45. Administrative expenses
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Employee compensation 24,654,297.67 15,547,995.24
Office expenses 119,662.56 231,630.78
Transport and travel expenses 7,695.23 18,250.52
Business entertainment expenses 52,838.20 130,553.80
Depreciation and amortization 2,118,529.00 1,513,826.81
Intermediary service fee 906,265.09 1,223,090.79
Others 958,541.63 1,167,569.27
Total 28,817,829.38 19,832,917.21
46. Finance costs
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Interest expenses 4,751,743.88 2,303,220.59
Less: Interest revenue 1,835,834.14 2,843,386.98
Less: Capitalized interest 1,510,324.98 2,194,828.71
Exchange gain or loss -64,306.88 -65,959.60
Others 50,454.91 99,398.31
Total 1,391,732.79 -2,701,556.39
47. Other incomes
Unit: RMB
Sources of other incomes Amount incurred in the current period Amount incurred in the previous period
Refund of handling charges for
9,658.93 50,129.40
withholding individual income tax
Others 4,465,807.01 1,525,860.90
169
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Total 4,475,465.94 1,575,990.30
48. Investment income
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Income from long-term equity
investments calculated by the equity 3,011,611.29 7,927,787.58
method
Investment income from the disposal of
8,785,410.47
long-term equity investments
Investment income from holding trading
8,468,244.22 6,774,748.47
financial assets
Closing income from commodity futures
-2,556,837.71
contracts and T+D contracts (hedging)
Total 8,923,017.80 23,487,946.52
49. Income from changes in fair value
Unit: RMB
Sources of income from changes in fair
Amount incurred in the current period Amount incurred in the previous period
value
Trading financial assets -2,783,204.51 -617,068.50
Trading financial liabilities -2,464,470.00
Derivative instruments of effective
-18,135.65
hedges
Total -5,265,810.16 -617,068.50
50. Credit impairment loss
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Bad debt loss of accounts receivable 6,669.80 -200,149.24
Total 6,669.80 -200,149.24
51. Asset impairment loss
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
II. Loss on diminution in value of
inventories and impairment loss on -3,700.50
contract performance cost
Total -3,700.50
52. Income from disposal of assets
Unit: RMB
Sources of income from asset disposal Amount incurred in the current period Amount incurred in the previous period
170
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Profits and losses from disposal of fixed
assets, construction in progress,
productive biological assets and -81,800.45 40,765.92
intangible assets not identified to held-
for-sale assets
Including: Fixed assets -81,800.45 40,765.92
Total -81,800.45 40,765.92
53. Non-operating revenue
Unit: RMB
Amount included in non-
Amount incurred in the Amount incurred in the
Item recurring profits and losses of
current period previous period
the current period
Gains from destruction and
retirement of non-current 22,690.35 22,690.35
assets
Gains from unpayable
262,274.08 262,274.08
payments
Others 132,217.70 295,807.48 132,217.70
Total 417,182.13 295,807.48 417,182.13
54. Non-operating expenses
Unit: RMB
Amount included in non-
Amount incurred in the Amount incurred in the
Item recurring profits and losses of
current period previous period
the current period
Loss from retirement of non-
338.65 338.65
current assets
Others 119,344.47 237.72 119,344.47
Total 119,683.12 237.72 119,683.12
55. Income tax expenses
(1) Income tax expense sheet
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Current income tax expenses 12,425,602.60 10,808,747.89
Deferred income tax expenses -197,855.50
Income tax expenses in earlier period 238,912.82
Total 12,466,659.92 10,808,747.89
(2) Accounting profit and income tax expense adjustment process
Unit: RMB
Item Amount incurred in the current period
171
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Total profit 57,554,726.35
Income tax expenses calculated at the statutory/applicable tax
14,388,681.59
rate
Effects of different tax rates applied to subsidiaries -367,380.82
Effect of income tax during the period before adjustment 238,912.82
Effect of non-taxable revenue -1,595,698.17
Effect of deductible temporary difference or deductible losses
-197,855.50
on unrecognized deferred tax assets in the current period
Income tax expenses 12,466,659.92
56. Other comprehensive income
See Notes for details
57. Items in the cash flow statement
(1) Other cash received related to operating activities
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Security deposit 12,249,467.54 3,980,878.67
Interest revenue 1,848,535.56 2,843,386.98
Current accounts and others 153,004,930.68 88,610,563.21
Total 167,102,933.78 95,434,828.86
(2) Other cash paid related to operating activities
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Out-of-pocket expenses 15,722,806.60 20,599,573.29
Security deposit 7,957,202.52 4,263,044.41
Current accounts and others 152,374,457.27 72,184,949.67
Total 176,054,466.39 97,047,567.37
(3) Other cash received related to investing activities
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Income from futures liquidation 827,883.63
Total 827,883.63
(4) Other cash paid related to investing activities
Unit: RMB
172
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Item Amount incurred in the current period Amount incurred in the previous period
Handling charges for the listing of import
and export equity transfers on Shenzhen 18,669.20
United Property and Equity Exchange
Futures trading fee and liquidation loss 7,567,454.81
Total 7,567,454.81 18,669.20
(5) Other cash paid related to financing activities
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Refund of minority shareholders' capital
4,900,000.00
in subsidiaries*
Payments of principal and interest on
628,844.00
lease liabilities
Total 5,528,844.00
58. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
Unit: RMB
Supplementary information Amount in the current period Amount in the previous period
1. Reconciliation of net profit to cash
flows from operating activities:
Net profit 45,088,066.43 43,097,355.16
Add: Impairment provision of assets -2,969.30
Depreciation of fixed assets,
consumption of oil and gas assets, and
17,367,778.17 15,364,386.85
depreciation of productive biological
assets
Depreciation of right-of-use
1,801,160.77
assets
Amortization of intangible assets 1,098,090.38 623,161.70
Amortization of long-term
2,042,705.37 2,321,921.53
deferred expenses
Losses from disposal of fixed
assets, intangible assets and other long- 81,800.45 -40,765.92
term assets (gains to be listed with “-”)
Losses from retirement of fixed
237.72
assets (gains to be listed with “-”)
Losses from changes in fair value
5,265,810.16 617,068.50
(gains to be listed with “-”)
Financial expenses (gains to be
1,391,732.79 108,391.88
listed with "-")
Investment losses (gains to be
-8,923,017.80 -23,487,946.52
listed with "-")
173
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Decrease in deferred tax assets
-253,211.24
(increase to be listed with "-")
Increases in deferred tax
55,355.72
liabilities (decrease to be listed with "-")
Decrease in inventories (increase
74,299,085.33 -1,990,985.82
to be listed with "-")
Decrease in operating receivables
-174,414,312.99 -36,896,366.90
(increase to be listed with "-")
Increase in operating payables
24,859,983.86 -10,834,604.35
(decrease to be listed with “-”)
Others -200,149.24
Net cash flow from operating
-10,241,941.90 -11,318,295.41
activities
2. Major investing and financing
activities not involving cash receipts and
payments:
Conversion of debts into capital
Current portion of convertible
corporate bonds
Financing leased fixed assets
3. Net changes in cash and cash
equivalents:
Ending balance of cash 261,521,100.08 188,890,609.03
Less: Beginning balance of cash 391,406,829.36 211,655,585.86
Add: Ending balance of cash
equivalents
Less: Beginning balance of cash
equivalents
Net increase in cash and cash
-129,885,729.28 -22,764,976.83
equivalents
(2) Composition of cash and cash equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 261,521,100.08 391,406,829.36
Including: Cash on hand 11,377.69 25,673.67
Cash at bank available for
196,659,129.31 381,593,235.55
payments at any time
Other cash at bank and on hand
64,850,593.08 9,787,920.14
available for payment at any time
III. Ending balance of cash and cash
261,521,100.08 391,406,829.36
equivalents
59. Assets with restricted ownership or use right
Unit: RMB
174
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Item Ending book value Reasons for restriction
Cash at bank and on hand 10,899,141.80 See Note VII. 1 for details
Intangible assets 44,960,423.01 Bank borrowing mortgage
Total 55,859,564.81
60. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Ending foreign currency Ending balance of converted
Item Exchange rate
balance RMB
Cash at bank and on hand
Including: USD 7,048.62 7.3368 51,714.39
EUR
HKD 22,775.22 0.8920 20,315.79
29,823.84 72,030.18
Accounts receivable
Including: USD
EUR
HKD
Long-term borrowings
Including: USD
EUR
HKD
(2) The description of overseas operating entities, including main premises abroad, bookkeeping base
currency and selection basis to be disclosed for the important overseas operating entities; reasons shall also
be disclosed for the changed bookkeeping base currency.
□ Applicable Not applicable
61. Government subsidies
(1) Basic information about government subsidies
Unit: RMB
Amount included in current
Type Amount Item presented
profits and losses
Asset-related government
11,365,155.71 Deferred income 626,237.73
subsidies
Income-related government
3,849,228.21 N/A 3,849,228.21
subsidies
175
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Total 15,214,383.92 4,475,465.94
VIII. Changes in Consolidation Scope
1. Changes in consolidation scope for other reasons
Changes in the scope of consolidation due to other reasons (such as establishing new subsidiaries, liquidating subsidiaries) and
related information:
Shenzhen SDG Huari Automobile Enterprise Co., Ltd. (hereinafter referred to as SDG Huari), a
subsidiary of the Company, is a Sino-Japanese joint venture, with an operating period expired on
March 13, 2022. Before and after the expiration of the business term, the Company communicated
with Japanese shareholders for many times on the extension of the business term, equity trading,
dissolution and liquidation of SDG Huari, but failed to reach an agreement. If the business term of
SDG Huari has expired, and the Company and Japanese shareholders cannot establish a liquidation
team to carry out liquidation within fifteen days from the expiration date of the business term of SDG
Huari, the Company, as a shareholder holding 60% of the equity of SDG Huari, shall apply to the
People's Court of Shenzhen Qianhai Cooperation Zone for compulsory liquidation of SDG Huari
according to the relevant provisions of the Company Law. The Company received the Civil Ruling
((2022) Y0391 QS No. 9) from the People's Court of Shenzhen Qianhai Cooperation Zone in January
2023, which ruled to accept the liquidation application of the Company for SDG Huari. On March
21, 2023, the Company received the Decision on Appointing a Liquidation Team ([2023] Y0391 QQ
No. 4) served by the People's Court of Shenzhen Qianhai Cooperation Zone, which designated King
& Wood Mallesons, Beijing Office as the SDG Huari Liquidation Team.
Based on the above matters, the balance sheet of SDG Huari, a subsidiary of the Company, is
not included in the consolidation scope for the half-year period of 2023.
Amount of Proportion of
Company name
contribution contribution
Shenzhen SDG Huari Automobile Enterprise Co., Ltd. RMB 19.22 million 60.00%
176
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
IX. Equity in Other Entities
1. Interests in subsidiaries
(1) Composition of enterprise group
Main Shareholding
Place of Nature of proportion Acquisition
Subsidiary name place of
registration business method
business Direct Indirect
Shenzhen Tellus Xinyongtong Automobile Commerc
Shenzhen Shenzhen 5.00% 95.00% Establishment
Development Co., Ltd. e
Shenzhen Bao'an Shiquan Industry Co., Commerc
Shenzhen Shenzhen 0.00% 100.00% Establishment
Ltd. e
Shenzhen SDG Tellus Real Estate Co., Commerc
Shenzhen Shenzhen 100.00% 0.00% Establishment
Ltd. e
Shenzhen Tellus Chuangying Technology Commerc
Shenzhen Shenzhen 100.00% 0.00% Establishment
Co., Ltd. e
Shenzhen Xinyongtong Motor Vehicle Commerc
Shenzhen Shenzhen 51.00% 0.00% Establishment
Inspection Equipment Co., Ltd. e
Shenzhen Automobile Industry and Trade Commerc
Shenzhen Shenzhen 100.00% 0.00% Establishment
Co., Ltd. e
Shenzhen Automobile Industry Supply and Commerc
Shenzhen Shenzhen 0.00% 100.00% Establishment
Marketing Company e
Commerc
Shenzhen Zhongtian Industry Co., Ltd. Shenzhen Shenzhen 100.00% 0.00% Establishment
e
Shenzhen Huari Toyota Sales & Service Commerc
Shenzhen Shenzhen 60.00% 0.00% Establishment
Co., Ltd. e
Shenzhen Tellus Treasury Supply Chain Commerc
Shenzhen Shenzhen 100.00% 0.00% Establishment
Tech Co., Ltd. e
Shenzhen Jewelry Industry Service Co., Commerc
Shenzhen Shenzhen 65.00% 0.00% Establishment
Ltd. e
Commerc
Shanghai Fanyue Diamond Co., Ltd. Shanghai Shanghai 0.00% 100.00% Establishment
e
Commerc
Guorun Gold Shenzhen Co., Ltd. Shenzhen Shenzhen 36.00% 5.00% Establishment
e
Explanation of the fact that the shareholding percentage is different from proportion of votes in subsidiaries:
The shareholding proportion in Guorun Gold Shenzhen Co., Ltd.is different from the proportion
of voting rights, and the basis for holding half or less of the voting rights but still controlling the
investee:
In June 2022, the Company cooperated with its subsidiaries Shenzhen Jewelry Industry Service
Co., Ltd., Shenzhen HTI Group Co., Ltd., Chow Tai Fook Jewellery Park (Wuhan) Co., Ltd., Chow
Tai Seng Jewelry Co., Ltd., Beijing Caishikou Department Store Co., Ltd. and Shenzhen ZHL
Industrial Co., Ltd. to jointly invest in the establishment of Guorun Gold Shenzhen Co., Ltd. Among
them, the Company contributed RMB 72 million, with a shareholding ratio of 36%; Shenzhen Jewelry
Industry Service Co., Ltd., a subsidiary of the Company, contributed RMB 10 million, with a
177
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
shareholding ratio of 5%; Shenzhen HTI Group Co., Ltd. held 10%, and other shareholders held 49%
in total. The Company signed a concerted action agreement with Shenzhen HTI Group Co., Ltd.,
stipulating that Shenzhen Hi-tech Investment Group Co., Ltd. shall maintain a consensus with the
Company when voting at the shareholders' meeting and the board of directors of Guorun Gold
Shenzhen Co., Ltd. Therefore, the Company and its subsidiaries actually hold 51% of the voting rights
of Guorun Gold Shenzhen Co., Ltd., and have control over Guorun Gold Shenzhen Co., Ltd.
The basis for the Company's control over the investee when holding half or less of the voting rights and the Company's control over
the investee when holding more than half of the voting rights:
None
(2) Important non-wholly-owned subsidiaries
Unit: RMB
Dividends
Profit or loss
Shareholding declared to
attributable to Balance of minority
proportion of minority
Subsidiary name minority interests at the end of
minority shareholders in
shareholders in the period
shareholders the current
the current period
period
Shenzhen Huari Toyota Sales & Service Co.,
40.00% 220,715.76 4,601,447.32
Ltd.
Guorun Gold Shenzhen Co., Ltd. 60.75% -481,676.49 117,178,818.08
Notes on the difference between the shareholding percentage of minority shareholders of subsidiaries and the voting rights ratio:
None
(3) Main financial information of important non-wholly-owned subsidiaries
Unit: RMB
Ending balance Beginning balance
Subsidia Curr Curren Non- Curren Non-
Non- Total Non- Total
ry name ent Total t current Curren Total t current
current liabiliti current liabiliti
asset assets liabiliti liabiliti t assets assets liabiliti liabiliti
assets es assets es
s es es es es
Shenzhe
n Huari 34,8
35,929 24,426 24,426 64,370 67,179 56,227 56,227
Toyota 06,4 1,123, 2,808,
,794.6 ,176.3 ,176.3 ,969.9 ,668.7 ,839.7 ,839.7
Sales & 33.4 361.20 698.79
2 1 1 1 0 9 9
Service 2
Co., Ltd.
Guorun
351,
Gold 54,172 405,69 205,33 207,04 308,52 311,98 110,46 110,46
519, 1,707, 3,459,
Shenzhe ,437.1 2,363. 6,119. 4,103. 4,705. 4,196. 6,340. 6,340.
926. 983.94 491.14
n Co., 7 60 44 38 19 33 68 68
43
Ltd.
178
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Unit: RMB
Amount incurred in the current period Amount incurred in the previous period
Subsidiary Total Cash flows Total Cash flows
name Operating comprehen from Operating comprehen from
Net profit Net profit
revenue sive operating revenue sive operating
income activities income activities
Shenzhen
Huari
-
Toyota 52,130,699. 31,626,860. 15,892,157.
551,789.40 551,789.40 15,229,690. 798,121.42 798,121.42
Sales & 28 92 85
94
Service
Co., Ltd.
Guorun
-
Gold 520,277,94 - -
46,812,821.
Shenzhen 8.63 792,883.11 792,883.11
71
Co., Ltd.
2. Equities in joint ventures or associates
(1) Important associates or joint ventures
Shareholding proportion Accounting
Name of joint methods for the
Main place of Place of Nature of
venture or investment in
business registration business Direct Indirect
associate joint ventures
or associates
Shenzhen
Investing in the Accounted for
Tellus-Gmond
Shenzhen Shenzhen establishment 50.00% under the
Investment Co.,
of industries equity method
Ltd.
Shenzhen
Renfu Tellus Accounted for
Mercedes-Benz
Automobiles Shenzhen Shenzhen 35.00% under the
Auto Sales
Service Co., equity method
Ltd.
Explanation of the fact that the shareholding percentage is different from the proportion of voting rights in joint ventures or
associates:
None
Basis for determining a shareholder holding less than 20% of the voting rights has significant influence, or a shareholder holding
20% or more of the voting rights does not have significant influence:
None
(2) Main financial information of important joint ventures
Unit: RMB
Ending balance/amount incurred in the Beginning balance/amount incurred in
current period the previous period
Shenzhen Tellus-Gmond Investment Co., Shenzhen Tellus-Gmond Investment Co.,
Ltd. Ltd.
179
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Current assets 38,633,161.79 44,368,420.83
Including: Cash and cash equivalents 36,620,377.69 42,326,853.66
Non-current assets 337,209,723.91 346,703,460.52
Total assets 375,842,885.70 391,071,881.35
Current liabilities 44,754,118.42 37,674,441.11
Non-current liabilities 250,032,000.00 259,110,000.00
Total liabilities 294,786,118.42 296,784,441.11
Minority equity
Equity attributable to shareholders of the
81,056,767.28 94,287,440.24
parent company
Shares of net assets at the shareholding
40,528,383.64 47,143,720.12
percentage
Adjustments
--Goodwill
--Unrealized profit of internal transaction
--Others
Book value of equity investments in joint
40,528,383.64 47,143,720.13
ventures
Fair value of equity investment in joint
ventures with a public offer
Operating revenue 54,145,037.15 51,327,658.48
Financial expenses 5,391,641.93 7,454,900.88
Income tax expenses 5,589,775.67 5,826,094.71
Net profit 16,769,327.00 17,478,284.13
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 16,769,327.00 17,478,284.13
Dividends received from joint ventures
15,000,000.00
in the current year
(3) Main financial information of important associates
Unit: RMB
Ending balance/amount incurred in the Beginning balance/amount incurred in
current period the previous period
Shenzhen Renfu Tellus Automobiles Shenzhen Renfu Tellus Automobiles
Service Co., Ltd. Service Co., Ltd.
Current assets 135,445,308.26 206,438,043.83
Non-current assets 22,942,486.68 31,677,397.21
Total assets 158,387,794.94 238,115,441.04
Current liabilities 116,451,398.97 167,288,864.40
Non-current liabilities 14,598,723.35
Total liabilities 116,451,398.97 181,887,587.75
180
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Minority equity
Equity attributable to shareholders of the
41,936,395.97 56,227,853.29
parent company
Shares of net assets at the shareholding
14,677,738.59 19,679,748.68
percentage
Adjustments
--Goodwill
--Unrealized profit of internal transaction
--Others
Book value of equity investments in
14,677,738.59 19,679,748.68
associates
Fair value of equity investments in
associates with a public offer
Operating revenue 529,459,351.87 493,226,617.42
Net profit -14,291,457.36 -3,318,473.42
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income -14,291,457.36 -3,318,473.42
Dividends received from associates in
the current year
(4) Summary of financial information of unimportant joint ventures and associates
Unit: RMB
Ending balance/amount incurred in the Beginning balance/amount incurred in
current period the previous period
Joint ventures:
Total book value of investments 13,829,855.00 14,200,897.13
Total amount of the following items at
the shareholding percentage
--Net profit -371,042.13 686,492.55
--Total comprehensive income -371,042.13 686,492.55
Associates:
Total amount of the following items at
the shareholding percentage
(5) Explanation on major restrictions on the capability of transferring capital from joint ventures or
associates to the Company
None
(6) Excess losses incurred to joint ventures or associates
Unit: RMB
Name of joint venture or Unrecognized loss Unrecognized loss in the Unrecognized loss
181
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
associate accumulated in the previous current period (or net profit accumulated at the end of the
period shared in the current period) current period
Shenzhen Tellus Automobile
98,865.26 98,865.26
Service Chain Co., Ltd.
Shenzhen Yongtong Xinda
1,176,212.73 1,176,212.73
Testing Equipment Co., Ltd.
X. Risks Related to Financial Instruments
The risks related to financial instruments of the Company originate from financial assets and
financial liabilities recognized by the Company in the course of operation, including credit risk,
liquidity risk and market risk.
The management of the Company is responsible for the management objectives and policies of
risks related to financial instruments of the Company. The management is responsible for daily risk
management through functional departments (for example, the Credit Management Department of
the Company reviews the credit sales business of the Company one by one). The internal audit
department of the Company supervises the implementation of the Company's risk management
policies and procedures on a daily basis, and reports relevant findings to the Audit Committee of the
Company in a timely manner.
The overall objective of the Company’s risk management is to formulate risk management
policies that minimize the risks associated with various financial instruments without unduly affecting
the Company’s competitiveness and resilience.
1. Credit risk
Credit risk refers to the risk that one party to a financial instrument fails to perform its obligations,
resulting in financial losses to the other party. The credit risk of the Company mainly arises from cash
at bank and on hand, notes receivable, accounts receivable, receivables financing, other receivables,
contract assets, creditor's rights investment and long-term receivables. The credit risk of these
financial assets comes from the default of the counterparty, and the maximum risk exposure is equal
to the book amount of these instruments.
182
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
The Company's cash at bank and on hand are mainly deposited in commercial banks and other
financial institutions. The Company believes that these commercial banks have high reputation and
asset status and have low credit risk.
For notes receivable, accounts receivable, receivables financing, other receivables, contract
assets, creditor's rights investment and long-term receivables, the Company sets relevant policies to
control credit risk exposure. The Company evaluates clients’ credit rating and sets the credit period
based on their financial conditions, possibility of obtaining security from third party, credit record
and other factors, such as current market situation. The Company will monitor the credit record of
the customer periodically. For customers with poor credit record, measures such as written collection,
shortening credit period or canceling the credit period will be adopted by the Company, to ensure the
overall credit risk being in the controllable scope.
(1) Criteria for judging a significant increase in credit risk
The Company assesses whether the credit risk of the relevant financial instrument has increased
significantly since the initial recognition on each balance sheet date. In determining whether the credit
risk has increased significantly since initial recognition, the Company considers reasonable and
supportable information that can be obtained without unnecessary additional costs or efforts,
including the Company's qualitative and quantitative analysis based on historical data, external credit
risk ratings and forward-looking information. Based on a single financial instrument or a combination
of financial instruments with similar credit risk characteristics, the Company determines the changes
in the risk of default of the financial instrument during the expected life of the instrument by
comparing the risk of default on the financial instrument on the balance sheet date with that on the
date of initial recognition.
When one or more of the following quantitative and qualitative criteria are triggered, the
Company believes that the credit risk of financial instruments has increased significantly. The
quantitative criteria are mainly that the probability of default in the remaining duration at the reporting
date increases by more than a certain proportion compared with that at initial recognition. The
183
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
qualitative criteria are significant adverse changes in the operation or financial situation of the main
debtor, warning list of customers, etc.
(2) Definition of assets with credit impairment
In order to determine whether credit impairment occurs, the definition criteria adopted by the
Company are consistent with the internal credit risk management objectives for relevant financial
instruments, taking consideration into quantitative and qualitative indicators at the same time.
The Company mainly considers the following factors when assessing whether the debtor has
credit impairment: The issuer or the debtor has major financial difficulties; the debtor violates the
contract, such as default or overdue payment of interest or principal; the creditor makes the
concession that the debtor will not make under any other circumstances due to the economic or
contractual considerations related to the debtor's financial difficulties; the debtor is likely to go
bankrupt or undergo other financial restructuring; the financial difficulties of the issuer or debtor
cause the disappearance of the active market of financial assets; a financial asset is purchased or
generated at a substantial discount which reflects the fact that the credit losses have occurred.
The credit impairment of financial assets may be caused by the joint action of multiple events,
and may not be caused by separately identifiable event.
(3) Parameters of expected credit loss measurement
According to whether the credit risk has increased significantly and whether the credit
impairment has occurred, the Company measures the provision for impairment for different assets
with the expected credit loss of 12 months or the whole duration respectively. The key parameters of
ECL measurement include probabilities of default (PD), losses given default (LGD) and exposures at
default (EAD). The Company takes into account the quantitative analysis of historical statistics (such
as ratings of the counterparty, manners of guarantees and types of collateral, and repayments) and
forward-looking information in order to establish a model of PD, LGD and EAD.
Relevant definitions are as follows:
184
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
The probability of default refers to the possibility that the debtor will not be able to fulfill its
repayment obligations in the next 12 months or the whole remaining duration.
The loss given default refers to the Company's expectation on the degree of loss from default
risk exposure. According to the type of counterparty, the way and priority of recourse, and the
difference of collaterals, loss given default is also different. Loss given default refers to the percentage
of risk exposure loss at the time of default, which is calculated based on the next 12 months or the
whole duration;
The exposure at default refers to the amount that the Company should be reimbursed when
default occurs in the next 12 months or the whole remaining duration. Evaluation on significant
increase of forward-looking information credit risk and calculation of expected credit losses both
involve forward-looking information. Through historical data analysis, the Company has identified
key economic indicators that affect credit risks and expected credit losses of various business types.
The maximum credit risk exposure tolerable by the Company is the book amount of each of the
financial assets in the balance sheet. The Company does not provide any other guarantee that allows
the Company to accept credit risk.
2. Liquidity risks
Liquidity risk refers to the risk of capital shortage in performing obligation of settling accounts
by cash payment or other financial assets. The Company is responsible for the overall management
of cash of all subsidiaries in the Company, including short-term investment of cash surplus and raising
loans to meet the estimated cash requirements. It is the policy of the Company to regularly monitor
short-term and long-term liquidity requirements and compliance with the provisions of the loan
agreement to ensure sufficient cash reserves and readily realizable securities.
As of June 30, 2023, the maturity periods of the Company's financial liabilities are as follows:
June 30, 2023
Description
Within 1 year 1-2 years 2-3 years Over 3 years
Accounts payable 168,223,689.80
Other payables 111,852,691.67
185
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Current portion of non-
1,565,376.12
current liabilities
Long-term borrowings 10,781,488.70 10,566,560.92 10,399,607.84 200,807,962.69
Long-term payables 3,920,160.36
Lease liabilities 73,155,478.11
Total 369,498,884.76 10,566,560.92 10,399,607.84 200,807,962.69
(Continued)
December 31, 2022
Description
Within 1 year 1-2 years 2-3 years Over 3 years
Accounts payable 124,716,800.71
Other payables 105,180,279.00
Current portion of non-
2,009,819.15
current liabilities
Long-term borrowings 6,948,649.17 9,070,099.98 10,241,847.84 183,567,105.37
Long-term payables 3,920,160.36
Lease liabilities 268,414.80
Total 243,044,123.19 9,070,099.98 10,241,847.84 183,567,105.37
3. Market risks
(1) Exchange rate risk
The exchange rate risk of the Company mainly comes from foreign currency assets and liabilities
held by the Company and its subsidiaries that are not denominated in their bookkeeping base currency.
The Company operates in China's mainland. The main activities are counted in RMB. Therefore, the
market risk of foreign exchange changes borne by the Company is not significant.
On the balance sheet date, the Company's foreign currency monetary assets and liabilities are
detailed in Note VII. 60 to the Financial Statement.
(2) Interest rate risk
Interest rate risks faced by the Company are mainly incurred from long-term bank borrowings.
Due to financial liabilities with floating interest rate, the Company faces cash flow interest rate risk;
due to financial liabilities with fixed interest rate, the Company faces fair value interest rate risk. The
Company decides the relative proportion of the fixed interest rate and floating interest rate contracts
in accordance with the current market environment.
186
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
The financial department of the Company’s headquarters continuously supervises the
Company's interest rate level. Rising interest rates will increase the cost of new interest-bearing debt
and the interest expense of the Company's outstanding interest-bearing debt with floating interest
rates, and adversely affect the Company's financial performance. Management will make timely
adjustments according to the latest market conditions.
XI. Disclosure of Fair Value
1. Ending fair value of the assets and liabilities measured at fair value
Unit: RMB
Ending fair value
Item Level 2
Level 1 measurement Level 3 measurement
measurement at Total
at fair value at fair value
fair value
I. Continuous fair value
-- -- -- --
measurement
(I) Trading financial assets 293,350,365.44 293,350,365.44
1. Financial assets at fair value
293,350,365.44 293,350,365.44
through profit or loss
(4) Structured deposits and
293,350,365.44 293,350,365.44
financial products
(III) Other equity instrument
29,401,309.85 29,401,309.85
investments
Hedged item 898,501.98 898,501.98
Derivative financial assets 1,760.00 1,760.00
Total assets continuously
900,261.98 322,751,675.29 323,651,937.27
measured at fair value
(VII) Financial liabilities at fair
value through profit or loss 30,104,994.27 30,104,994.27
designated
(1) Gold leasing 30,104,994.27 30,104,994.27
Total liabilities continuously
30,104,994.27 30,104,994.27
measured at fair value
II. Non-continuous fair value
-- -- -- --
measurement
2. Basis for determining the market price of items subject to continuous and non-continuous level 1 fair
value measurement
The hedged items of the Company are gold product inventory, and the hedging instruments are
liabilities arising from changes in the fair value of gold futures contracts and gold spot deferred
settlement contracts held by the Company. The Company determines the fair value based on the
187
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
public quotations of gold spot transactions and futures transactions of Shanghai Gold Exchange and
Shanghai Futures Exchange.
The Company's gold leasing is a liability formed by borrowing gold in kind from banking
financial institutions, and the fair value is determined based on the public quotation of gold spot
transaction of Shanghai Gold Exchange.
3. Valuation techniques and qualitative and quantitative information about key parameters of items subject
to continuous and non-continuous level 3 fair value measurement
The trading financial assets are the purchased structured deposits and financial products. The
expected rate of return is used to predict the future cash flow, and the unobservable estimate is the
expected rate of return. Other equity instrument investments are measured by the Company based on
the investment cost as a reasonable estimate of the fair value, because the operating environment,
operating conditions and financial conditions of the investee China PUFA Machinery Industry Co.,
Ltd. have not changed significantly.
XII. Related Parties and Related Party Transactions
1. Parent company
Shareholding Votes proportion
Name of parent Place of proportion of the of the parent
Nature of business Registered capital
company registration parent company to company to the
the Company Company
Real estate
Shenzhen Special
development and
Economic Zone RMB
Shenzhen operation, 49.09% 46.98%
Development 4,582,820,000
domestic
Group Co., Ltd.
commerce
Information of the parent company
Shenzhen Special Economic Zone Development Group Co., Ltd.(hereinafter referred to as "SDG
Group") was established on August 1, 1981 with the investment of the State-owned Assets
Supervision and Management Commission of Shenzhen Municipal People's Government. The
Company now holds a business license with a unified social credit code of 91440300192194195C,
and a registered capital of RMB 4,582,820,000.
The reason for the inconsistency between the proportion of voting rights and the shareholding ratio
188
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
of SDG Group in the Company is that SDG Group has carried out the refinancing securities lending
business.
The ultimate controlling party of the Company: The State-owned Assets Supervision and
Management Commission of Shenzhen Municipal People’s Government.
2. Subsidiaries of the Company
For details of the Company's subsidiaries, please refer to Note IX.
3. Joint ventures and associates of the Company
The important joint ventures or associates of the Company are detailed in the Notes.
The information on other joint ventures or associates that produced balance by conducting related-party transactions with the
Company in the current period or in the earlier period is shown as follows:
Name of joint ventures or associates Relationship with the Company
Shenzhen Tellus Xinyongtong Automobile Service Co., Ltd. Associate
Shenzhen Tellus Automobile Service Chain Co., Ltd. Associate
Shenzhen Yongtong Xinda Testing Equipment Co., Ltd. Associate
Shenzhen Xiandao New Materials Co., Ltd. Associate
Shenzhen Telixing Investment Co., Ltd. Joint venture
4. Other related parties
Name of other related parties Relationship between other related parties and the Company
Shenzhen SDG Microfinance Co., Ltd. Controlled subsidiary of parent company
Shenzhen SDG Tiane Industrial Co., Ltd. Controlled subsidiary of parent company
Shenzhen Machinery & Equipment Import & Export Co., Ltd. Controlled subsidiary of parent company
Shenzhen SDG Real Estate Co., Ltd. Wholly-owned subsidiary of parent company
Hongkong Yujia Investment Limited Controlled subsidiary of parent company
Shenzhen SDG Engineering Management Co., Ltd. Controlled subsidiary of parent company
Shenzhen Tellus Yangchun Real Estate Co., Ltd. Controlled subsidiary of parent company
Shenzhen Longgang Tellus Real Estate Co., Ltd. Controlled subsidiary of parent company
Shenzhen SDG Tellus Property Management Co., Ltd. Controlled subsidiary of parent company
Shenzhen SDG Service Co., Ltd. Jewelry Park Branch Controlled subsidiary of parent company
Shenzhen Wahlai Decoration & Furniture Co., Ltd. Joint venture of parent company
Gu Zhiming Key management personnel
Enterprise subject to significant impact by key management
Shenzhen Zhigu Jinyun Technology Co., Ltd.
personnel
Shenzhen ZHL Industrial Co., Ltd. Minority shareholders of important subsidiaries
Enterprises controlled by minority shareholders of important
Shenzhen Niubisi Jewelry Trading Co., Ltd.
subsidiaries
Enterprises controlled by minority shareholders of important
Shenzhen Yuepengjin Jewelry Co., Ltd.
subsidiaries
Enterprises controlled by minority shareholders of important
Shenzhen Yuepengjin E-commerce Co., Ltd.
subsidiaries
189
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
5. Related party transactions
(1) Related party transactions of purchase/sales of commodities and rendering/receiving of labor services
Purchase of goods/receipt of services
Unit: RMB
Exceedin
Amount
Amount Approved g the
Content of related incurred in the
Related parties incurred in the transaction transactio
party transaction previous
current period amount n amount
period
or not
Shenzhen SDG Engineering Receiving labor
671,200.00 2,000,000.00 No
Management Co., Ltd. services
Shenzhen SDG Tellus Property Receiving labor
1,782,277.76 3,400,000.00 No 1,529,149.09
Management Co., Ltd. services
Shenzhen SDG Service Co., Ltd. and Receiving labor
6,681,836.37 18,161,500.00 No 5,236,179.69
its branches services
Shenzhen Wahlai Decoration & Receiving labor
7,373,982.82
Furniture Co., Ltd. services
Procurement of
Shenzhen Zhigu Jinyun Technology
goods and 1,248,224.49
Co., Ltd.
services
Procurement of
Shenzhen ZHL Industrial Co., Ltd. goods and 1,863,167.50
services
Shenzhen Yuepengjin Jewelry Co., Accepting
61,212.43
Ltd. services
Sale of goods and provision of services
Unit: RMB
Content of related Amount incurred in the Amount incurred in the
Related parties
party transaction current period previous period
Shenzhen SDG Microfinance Co., Rendering of labor
94,975.53
Ltd. services
Shenzhen Special Economic Zone Rendering of labor
7,244.25
Development Group Co., Ltd. services
Shenzhen SDG Tellus Property Rendering of labor
1,126.55 54,548.96
Management Co., Ltd. services
Rendering of labor
Shenzhen ZHL Industrial Co., Ltd. 44,150.94
services
Shenzhen Niubisi Jewelry Trading Rendering of labor
1,897,096.53
Co., Ltd. services
Shenzhen Yuepengjin E-commerce
Sales of goods 79,086,389.48
Co., Ltd.
(2) Related party leases
The Company as the lessor:
Unit: RMB
Lease revenue Lease revenue
Name of lessee Type of asset leased recognized in the recognized in the
current period previous period
190
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Shenzhen Renfu Tellus Automobiles Service Co.,
Lease of houses 2,725,000.00 2,595,238.12
Ltd.
Shenzhen SDG Microfinance Co., Ltd. Lease of houses 604,295.03 654,081.87
Shenzhen SDG Tellus Property Management Co.,
Lease of houses 65,730.00 15,155.24
Ltd.
Shenzhen SDG Service Co., Ltd. and its branches Lease of houses 1,150,990.47 1,108,284.57
Shenzhen Yongtong Xinda Testing Equipment Co.,
Lease of houses 16,000.00
Ltd.
Shenzhen Yuepengjin Jewelry Co., Ltd. Lease of houses 1,199,121.84
(3) Remuneration of key management personnel
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Remuneration of key management
4,131,300.00 3,258,800.00
personnel
6. Receivables and payables by related parties
(1) Receivables
Unit: RMB
Ending balance Beginning balance
Description Related parties Provision for Provision for
Book balance Book balance
bad debts bad debts
Accounts
Shenzhen SDG Service Co., Ltd. 20,977.40
receivable
Accounts
Shenzhen SDG Microfinance Co., Ltd. 263,272.29 3,555.66 355,565.61 3,555.66
receivable
Accounts Shenzhen SDG Tellus Property
5,362.00 53.62
receivable Management Co., Ltd.
Accounts Shenzhen Niubisi Jewelry Trading Co.,
1,109,046.76 6,669.80 666,979.53 6,669.80
receivable Ltd.
Accounts
Shenzhen Yuepengjin Jewelry Co., Ltd. 1,111,653.79
receivable
Accounts Shenzhen Yuepengjin E-commerce Co.,
29,768,050.00
receivable Ltd.
Accounts Shenzhen Renfu Tellus Automobiles
2,725,000.00
receivable Service Co., Ltd.
Total 34,998,000.24 10,225.46 1,027,907.14 10,279.08
Advances to Shenzhen Wahlai Decoration &
106,696.30 106,696.30
suppliers Furniture Co., Ltd.
Advances to Shenzhen SDG Engineering
6,900.00 6,900.00
suppliers Management Co., Ltd.
Total 113,596.30 113,596.30
Other Shenzhen Tellus Automobile Service
1,359,297.00 1,359,297.00 1,359,297.00 1,359,297.00
receivables Chain Co., Ltd.
Other Shenzhen Yongtong Xinda Testing
531,882.24 531,882.24 531,882.24 531,882.24
receivables Equipment Co., Ltd.
Other Shenzhen Xiandao New Materials Co.,
660,790.09 660,790.09 660,790.09 660,790.09
receivables Ltd.
Other Shenzhen Telixing Investment Co., Ltd. 258,033.80 376.09 37,608.61 376.09
191
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
receivables
Other Shenzhen SDG Tellus Property
16,959.19 409.59 16,959.19 409.59
receivables Management Co., Ltd.
Other
Shenzhen ZHL Industrial Co., Ltd. 1,203,324.33 100.00 10,000.00 100.00
receivables
Total 4,030,286.65 2,552,855.01 2,616,537.13 2,552,855.01
Long-term Shenzhen Tellus Automobile Service
2,179,203.68 2,179,203.68 2,179,203.68 2,179,203.68
receivables Chain Co., Ltd.
Total 2,179,203.68 2,179,203.68 2,179,203.68 2,179,203.68
(2) Payables
Unit: RMB
Description Related parties Ending book balance Beginning book balance
Accounts payable Shenzhen SDG Real Estate Co., Ltd. 6,054,855.46 6,054,855.46
Shenzhen Machinery & Equipment Import
Accounts payable 45,300.00 45,300.00
& Export Co., Ltd.
Accounts payable Shenzhen SDG Service Co., Ltd. 4,153,458.38 1,654,014.40
Shenzhen SDG Engineering Management
Accounts payable 108,038.46 2,568,038.46
Co., Ltd.
Shenzhen SDG Tellus Property Management
Accounts payable 0.00 336,533.57
Co., Ltd.
Shenzhen Wahlai Decoration & Furniture
Accounts payable 309,117.63 432,712.27
Co., Ltd.
Accounts payable Shenzhen ZHL Industrial Co., Ltd. 986,928.36 235,873.17
Shenzhen Zhigu Jinyun Technology Co.,
Accounts payable 500,000.00
Ltd.
Accounts payable Shenzhen Yuepengjin Jewelry Co., Ltd. 10,800.00 31,300.00
Total 12,168,498.29 11,358,627.33
Advances from Shenzhen SDG Tellus Property Management
5,234.34
customers Co., Ltd.
Total 0.00 5,234.34
Other payables Hongkong Yujia Investment Limited 2,164,650.90 2,164,650.90
Other payables Shenzhen SDG Tiane Industrial Co., Ltd. 28,766.05 28,766.05
Shenzhen Machinery & Equipment Import
Other payables 1,575,452.52 1,575,452.52
& Export Co., Ltd.
Shenzhen Special Economic Zone
Other payables 12,345,594.94
Development Group Co., Ltd.
Shenzhen Longgang Tellus Real Estate Co.,
Other payables 1,095,742.50 1,095,742.50
Ltd.
Shenzhen Tellus Yangchun Real Estate Co.,
Other payables 476,217.49 476,217.49
Ltd.
Shenzhen Yongtong Xinda Testing
Other payables 5,600.00 5,602.99
Equipment Co., Ltd.
Shenzhen SDG Tellus Property Management
Other payables 152,182.41 145,043.21
Co., Ltd.
Other payables Shenzhen SDG Service Co., Ltd. 22,680.00 25,596.00
Shenzhen Renfu Tellus Automobiles Service
Other payables 833,334.00 833,334.00
Co., Ltd.
Other payables Shenzhen SDG Microfinance Co., Ltd. 237,804.66 237,804.66
Shenzhen SDG Engineering Management
Other payables 0.00 40,000.00
Co., Ltd.
Shenzhen Wahlai Decoration & Furniture
Other payables 1,700.43 16,933.72
Co., Ltd.
Other payables Shenzhen Yuepengjin Jewelry Co., Ltd. 388,102.00
Total 6,982,232.96 18,990,738.98
192
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
XIII. Commitments and Contingencies
1. Important commitments
Important commitments existing on the balance sheet date
None
2. Contingencies
(1) Important contingencies existing at the balance sheet date
None
(2) In case of no important contingencies to be disclosed, a description shall be given
The Company has no important contingencies to be disclosed.
3. Others
None
XIV. Events after the Balance Sheet Date
1. Descriptions for other events after the balance sheet date
On July 31, 2023, after deliberation by the Board of Directors of the Company, a decision
was made to dissolve Shenzhen Huari Toyota Sales & Service Co., Ltd. (hereinafter referred to as
"Huari Toyota"), a holding subsidiary of the Company. The Company's Management was
authorized to handle relevant procedures for the dissolution and liquidation of Huari Toyota in strict
accordance with the relevant provisions of the Company Law and other applicable regulations.
XV. Other Significant Events
1. Segment information
(1) Determination basis and accounting policy of reporting segments
The Company determines the reporting segment based on its internal organizational structure,
management requirements and internal reporting system and takes the industry segment as the basis
to determine the reporting segment. The business performance of automobile sales, automobile
maintenance and testing, leasing and service, jewelry sales and service, etc. are assessed respectively.
193
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Assets and liabilities commonly used in all segments are distributed among different segments
according to the scale.
(2) Financial information of reporting segments
Unit: RMB
Automobile
Automobile Leasing and Wholesale and Inter-segment
Item maintenance Total
sales services retail of jewelry offset
and testing
Revenue from
main 41,890,016.34 12,278,958.67 114,750,014.55 536,696,671.25 -3,430,879.35 702,184,781.46
businesses
Cost of main
38,325,556.22 12,073,155.36 39,425,581.89 521,308,410.69 -3,119,882.41 608,012,821.75
businesses
-
3,075,301,730. 2,512,971,777.
Total assets 27,785,271.61 8,144,523.01 553,326,411.47 1,151,586,158.
19 36
92
-
Total liabilities 18,889,279.79 5,536,896.52 916,108,472.08 274,031,783.63 840,351,100.97
374,215,331.05
XVI. Notes to Major Items of the Parent Company’s Financial Statements
1. Accounts receivable
(1) Classified disclosure of accounts receivable
Unit: RMB
Ending balance Beginning balance
Provision for bad Provision for bad
Book balance Book balance
debts debts
Category Proporti Book Proporti Book
Amou Proporti on of value Proporti on of value
Amount Amount Amount
nt on provisio on provisio
n n
Accounts
receivable
with
provision
484,80 484,803. 484,803. 484,803.
for bad 2.86% 100.00% 0.00 76.33% 100.00%
3.08 08 08 08
debts
made on a
single
basis
Where:
Accounts
receivable
with 16,479
16,476,2 150,350. 147,200.
provision ,401.2 97.14% 3,149.91 0.02% 23.67% 3,149.91 2.10%
51.31 82 91
for bad 2
debts
made by
194
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
portfolio
Where:
16,476
1. Aging 16,472,8 150,350. 147,200.
,041.2 97.12% 3,149.91 0.02% 23.67% 3,149.91 2.10%
portfolio 91.31 82 91
2
16,964
487,952. 16,476,2 635,153. 487,952. 147,200.
Total ,204.3 100.00% 2.88% 100.00% 76.82%
99 51.31 90 99 91
0
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general mode
of expected credit loss to withdraw bad debt provision of other receivables.
Applicable □ Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (inclusive) 16,476,041.22
Over 3 years 488,163.08
3-4 years 3,360.00
Over 5 years 484,803.08
Total 16,964,204.30
(2) Bad debt provision provided, recovered or reversed in the current period
Bad debt provision provided in the reporting period:
Unit: RMB
Amount changed in the current period
Beginning
Category Recovery or Ending balance
balance Provision Write-off Others
reversal
Provision for
bad debt
484,803.08 484,803.08
reserves on an
individual basis
Provision for
bad debts made 3,149.91 3,149.91
by portfolio
Total 487,952.99 0.00 0.00 0.00 0.00 487,952.99
(3) Accounts receivable of the top five ending balance by the owing party
Unit: RMB
Proportion in the total
Ending balance of Ending balance of
Item ending balance of
accounts receivable provision for bad debts
accounts receivable
Shenzhen Renfu Tellus Automobiles Service
2,725,000.00 16.06%
Co., Ltd.
Chow Sang Sang (China) Co., Ltd. 1,647,952.52 9.71%
Zhongbao Jinyuan (Shenzhen) Industrial
1,581,974.99 9.33%
Development Co., Ltd.
195
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Shenzhen Southwest Gold Management
1,254,794.56 7.40%
Center Co., Ltd.
Shenzhen Helin Bijouterie Co., Ltd. 1,146,592.50 6.76%
Total 8,356,314.57 49.26%
2. Other receivables
Unit: RMB
Item Ending balance Beginning balance
Dividends receivable 1,852,766.21 1,852,766.21
Other receivables 7,214,548.45 3,114,221.75
Total 9,067,314.66 4,966,987.96
(1) Dividends receivable
1) Category of dividends receivable
Unit: RMB
Item (or the investee) Ending balance Beginning balance
China Pufa Machinery Industry Co., Ltd. 1,852,766.21 1,852,766.21
Total 1,852,766.21 1,852,766.21
2) Significant dividends receivable aged over 1 year
Unit: RMB
Whether impairment
Reason for non-
Item (or the investee) Ending balance Aging occurs and its
recovery
judgment basis
The financial and
operating conditions of
China Pufa Machinery the Company are
547,184.35 3-4 years Not paid yet
Industry Co., Ltd. normal, and the
dividends receivable
are not impaired.
Total 547,184.35
3) Withdrawal of bad debt provision
□ Applicable Not applicable
(2) Other receivables
1) Classification of other receivables by nature
Unit: RMB
Payment nature Ending book balance Beginning book balance
Other temporary payments of receivables 17,385,431.12 14,295,706.79
Concerned intercourse funds within the
3,490,729.22 2,480,126.85
consolidation scope of receivables
196
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Total 20,876,160.34 16,775,833.64
2) Withdrawal of bad debt provision
Unit: RMB
Stage I Stage II Stage III
Expected credit loss
Expected Expected credit loss
Provision for bad debts within the whole Total
credit loss in within the whole duration
duration (credit
the next 12 (credit impairment
impairment not
months occurred)
occurred)
Balance as of January 1, 2023 7,028.13 13,654,583.76 13,661,611.89
Balance as of January 1, 2023
in the current period
Balance as of June 30, 2023 7,028.13 13,654,583.76 13,661,611.89
Changes of book balance with significant amount changed of loss provision in the reporting period
□ Applicable Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (inclusive) 7,176,967.88
1-2 years 21,259.70
Over 3 years 13,677,932.76
3-4 years 46,698.00
Over 5 years 13,631,234.76
Total 20,876,160.34
3) Bad debt provision provided, recovered or reversed in the current period
Bad debt provision provided in the reporting period:
Unit: RMB
Amount changed in the current period
Beginning
Category Provisio Recovery or Ending balance
balance Write-off Others
n reversal
Provision for bad debt
reserves on an 13,631,234.76 13,631,234.76
individual basis
Provision for bad debts
30,377.13 30,377.13
made by portfolio
Total 13,661,611.89 13,661,611.89
4) Other receivables of the top five ending balances by the owing party
Unit: RMB
Proportion to Ending balance
Item Nature of payment Ending balance Aging
ending balance of provision for
197
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
of other bad debts
receivables
Shenzhen Zhonghao
Transaction payments 5,000,000.00 Over 5 years 23.95% 5,000,000.00
(Group) Co., Ltd.
Shenzhen Jinbeili
Electric Appliance Transaction payments 2,706,983.51 Over 5 years 12.97% 2,706,983.51
Co., Ltd.
Shenzhen Jewelry
Current accounts
Industry Service 2,094,145.03 Within 1 year 10.03%
within the Group
Co., Ltd.
Shenzhen
Petrochemical Transaction payments 1,919,733.45 Over 5 years 9.20% 1,919,733.45
Group
Creditor's rights for
of debt repayment of Transaction payments 1,212,373.79 Over 5 years 5.81% 1,212,373.79
Huatong Packaging
Total 12,933,235.78 61.96% 10,839,090.75
3. Long-term equity investment
Unit: RMB
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in
761,920,780.08 1,956,000.00 759,964,780.08 786,245,472.73 1,956,000.00 784,289,472.73
subsidiaries
Investment in
associates and 78,823,139.55 9,787,162.32 69,035,977.23 90,811,528.26 9,787,162.32 81,024,365.94
joint ventures
Total 840,743,919.63 11,743,162.32 829,000,757.31 877,057,000.99 11,743,162.32 865,313,838.67
(1) Investment in subsidiaries
Unit: RMB
Changes in the current period
Addi
Beginning Impa Ending balance
tiona Ending balance
Investee balance (book irme of impairment
l Reduced (book value)
value) nt Others provision
inve investment
provi
stme
sion
nt
Shenzhen
SDG Tellus
31,152,888.87 31,152,888.87
Real Estate
Co., Ltd.
Shenzhen
Tellus
Chuangying 14,000,000.00 14,000,000.00
Technology
Co., Ltd.
Shenzhen
Tellus 57,672,885.22 57,672,885.22
Xinyongtong
198
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Automobile
Development
Co., Ltd.
Shenzhen
Zhongtian
369,680,522.90 369,680,522.90
Industry Co.,
Ltd.
Shenzhen
Automobile
Industry and 126,251,071.57 126,251,071.57
Trade Co.,
Ltd.
Shenzhen
SDG Huari
Automobile 19,224,692.65 19,224,692.65 0.00
Enterprise
Co., Ltd.
Shenzhen
Huari Toyota
Sales & 1,807,411.52 1,807,411.52
Service Co.,
Ltd.
Shenzhen
Xinyongtong
Motor
Vehicle 10,000,000.00 5,100,000.00 4,900,000.00
Inspection
Equipment
Co., Ltd.
Shenzhen
Tellus
Treasury
50,000,000.00 50,000,000.00
Supply Chain
Tech Co.,
Ltd.
Shenzhen
Hanli High
Tech 0.00 1,956,000.00
Ceramics
Co., Ltd.
Shenzhen
Jewelry
Industry 32,500,000.00 32,500,000.00
Service Co.,
Ltd.
Guorun Gold
Shenzhen 72,000,000.00 72,000,000.00
Co., Ltd.
Total 784,289,472.73 5,100,000.00 19,224,692.65 759,964,780.08 1,956,000.00
(2) Investment in associates and joint ventures
Unit: RMB
Beginnin Changes in the current period Ending Ending
Investo
g balance Additi Reduc Profit Other Change Cash Impair balance balance
r Others
(book onal ed or loss compre s in dividen ment (book of
199
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
value) invest invest on hensive other ds and provisi value) impair
ment ment investm income equity profits on ment
ents adjustm declare provisi
recogni ents d to pay on
zed
under
the
equity
method
I. Joint ventures
Shenzh
en
Tellus-
47,143,72 8,384,6 15,000, 40,528,
Gmond
0.13 63.51 000.00 383.64
Investm
ent Co.,
Ltd.
Shenzh
en
Telixin -
14,200,89 13,829,
g 371,042
7.13 855.00
Investm .13
ent Co.,
Ltd.
Subtota 61,344,61 8,013,6 15,000, 54,358,
l 7.26 21.38 000.00 238.64
II. Associates
Shenzh
en
Renfu
Tellus -
19,679,74 14,677,
Autom 5,002,0
8.68 738.59
obiles 10.09
Service
Co.,
Ltd.
Hunan
Changy
ang 1,810,5
Industri 40.70
al Co.,
Ltd.
Shenzh
en
Jiechen
g 3,225,0
Electro 00.00
nics
Co.,
Ltd.
Shenzh
en
Xianda 4,751,6
o New 21.62
Materia
ls Co.,
200
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
Ltd.
-
Subtota 19,679,74 14,677, 9,787,1
5,002,0
l 8.68 738.59 62.32
10.09
81,024,36 3,011,6 15,000, 69,035, 9,787,1
Total
5.94 11.29 000.00 977.23 62.32
4. Operating revenue and operating cost
Unit: RMB
Amount incurred in the current period Amount incurred in the previous period
Item
Revenue Cost Revenue Cost
Main business 34,050,043.81 14,948,857.82 12,666,278.27 5,003,948.63
Total 34,050,043.81 14,948,857.82 12,666,278.27 5,003,948.63
5. Investment income
Unit: RMB
Amount incurred in the current
Item Amount incurred in the previous period
period
Income from long-term equity investments
3,011,611.29 7,927,787.58
calculated by the equity method
Investment income from holding trading
7,437,966.44 5,715,948.58
financial assets
Total 10,449,577.73 13,643,736.16
XVII. Supplementary Information
1. Breakdown of non-recurring profit or loss of the current period
Applicable □ Not applicable
Unit: RMB
Item Amount Note
Government subsidies included in the
current profits and losses (except those
closely related to the Company's normal
operations, conforming to the state 4,475,465.94 Government subsidies
policies and regulations and enjoyed
persistently in line with certain standard
ratings or rations)
Except for the effective hedging
activities related to the Company’s
ordinary activities, profit or loss arising
from changes in fair value from holding
trading financial assets and trading 3,220,569.71 Wealth management income
financial liabilities, and investment
income from disposal of trading financial
assets and trading financial liabilities and
available-for-sale financial assets
Other non-operating revenue and 297,499.01 Mainly due to the early surrender of
201
Full Text of the Semi-annual Report 2023 of Shenzhen Tellus Holding Co., Ltd.
expenses other than the above lease and payment of liquidated damages
for house leasing
Less: effect on income tax 1,998,431.62
Effect on minority interests -494,178.96
Total 6,489,282.00 --
Specific conditions of other profit or loss conforming to the definition of non-recurring profit or loss:
□ Applicable Not applicable
The Company has no other profit or loss conforming to the definition of non-recurring profit or loss.
Explanation on defining the non-recurring profit or loss set out in the Explanatory Announcement No. 1 on Information Disclosure
for Companies Offering Securities to the Public - Non-Recurring Profit or Loss as recurring profit or loss
□ Applicable Not applicable
2. Return on net profits and earnings per share
Earnings per share
Profit during the reporting Weighted average return on
period net assets Basic earnings per share Diluted earnings per share
(RMB/share) (RMB/share)
Net profit attributed to
ordinary shareholders of the 2.89% 0.1024 0.1024
Company
Net profit attributed to
ordinary shareholders of the
Company after deducting 2.47% 0.0873 0.0873
non-recurring profits and
losses
3. Difference in accounting data under domestic and foreign accounting rules
(1) Differences in net profits and net assets in the financial reports disclosed simultaneously according to
the International Accounting Standards and the Accounting Standards of the People's Republic of China
□ Applicable Not applicable
(2) Differences in net profits and net assets in the financial reports disclosed simultaneously according to
the foreign accounting standards and the Accounting Standards of the People's Republic of China
□ Applicable Not applicable
(3) Specify the reasons for differences in accounting data under domestic and foreign accounting standards
(if any); if the adjustment is made to data audited by the overseas audit firm, specify the name of such audit
firm
4. Others
202
