重庆建设摩托车股份有限公司
CHONGQING JIANSHE MOTORCYCLE CO.,LTD.
Interim Report 2011 (Full Version)
Important Statement: The Board of Directors and the directors of the Company guarantee that there are no significant
omissions, fictitious or misleading statements carried in the Report and we will accept individual and joint
responsibilities for the truthfulness, accuracy and completeness of the Report.
Mr. Li Huaguang, the Legal Representative of the Company, Mr. Teng Feng, the Financial Officer, Mr. Cheng Fukai,
the manager of accounting department, hereby declare: the truthfulness and completeness of the Financial Report are
guaranteed.
The Chairman:
Table of Contents
I. COMPANY PROFILE .......................................................................................................................................................................... ２
II. MAJOR FINANCIAL INFORMATION ........................................................................................................................................... ３
III. MOVEMENT OF CAPITAL SHARE AND TOP TEN SHAREHOLDERS ................................................................................. ４
IV. PARTICULARS ABOUT THE DIRECTORS, SUPERVISORS AND SENIOR EXECUTIVES ................................................ ５
V. REPORT OF THE BOARD ................................................................................................................................................................ ６
VI. SIGNIFICANT EVENTS .................................................................................................................................................................. ８
VII. FINANCIAL REPORT (NOT AUDITED) ................................................................................................................................. １１
VIII. DOCUMENTS FOR INQUIRING ................................................................................................................................................ 55
建设摩托 Interim Report 2011
I. Company Profile
(I) Statutory Chinese name: 重庆建设摩托车股份有限公司（缩写：建设摩托）
Statutory English name: CHONGQING JIANSHE MOTORCYCLE CO.,LTD. (Abbr.
JSMC-B)
(II) Stock listed in: Shenzhen Stock Exchange
Abbreviation of the stock: Jianmo B
Stock code: 200054
(III) Registered address: No.1 Jianshe Road, Huaxi Industrial Zone, Banan District,
Chongqing
Office address: No.1 Jianshe Road, Huaxi Industrial Zone, Banan District,
Chongqing
Post Code: 400054
Official Website: http://www.jianshe.com.cn
Official Email: cqjsmc@jianshe.com.cn
(IV) Legal representative: Li Huaguang
(V) Secretary of the Board: Teng Feng
Contact address: No.1 Jianshe Road, Huaxi Industrial Zone, Banan District,
Chongqing
Tel/Fax: (023)66295333
Email: cqjsmc@jianshe.com.cn
(VI) Information disclosure media:
Website: http://www.cninfo.com.cn
Press media: Securities Times, Hong Kong Commercial Daily
Place where the reports and announcement are ready for inquiry:: Office of the Board of the Company
(VII) Misc. Information
Primary registration date: July 19th, 1995
Registration modified on: March 11, 2003
Primary registration place: Shenzhen Industry & Commerce Administrative Bureau
Secondary registration place: Chongqing Industry & Commerce Administrative Bureau
Business license No. 5000001805583
Taxation registration No. National: 500107747482423
Local: 500107747482423
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建设摩托 Interim Report 2011
II. Major Financial Information
(I) Financial highlights of the report term and at the end of last year
RMB0000
Items Ended this report Ended previous Increase/decrease over the beginning of
term year year (%)
Gross Assets 266,579.57 319,888.25 -16.66
Shareholders equity 47,627.29 47,490.86 0.29
Net asset per share (RMB) 1.00 0.99 0.29
Current term Same period last Increase/decrease over same period of
(Jan-Jun) year last year(%)
Operation profit -108.63 1,128.03 -109.63
Total profit 4.05 1,320.73 -99.69
Net profit 136.44 1,339.44 -89.81
Net profit deducted non-recurring 23.76 1,146.75 97.93
gain/loss
Basic earnings per share (RMB) 0.00 0.03 -89.81
Diluted earnings per share (RMB) 0.00 0.03 -98.23
Net earnings / capital ratio (%) 0.29 2.79 -2.50
Cash flow generated by business -3,186.83 -12,363.23 74.22
operation, net
Net Cash flow per share generated -0.07 -0.26 74.22
by business operation (RMB)
Note: Income items after deducting of non-recurring gain/loss include: RMB1.6273 million of non-operational
income, and RMB0.5050 million of non-operational expenditures.
(II) There was no difference between the net profit figures generated under Chinese accounting
standard and international accounting standard
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建设摩托 Interim Report 2011
III. Movement of Capital Share and Top Ten Shareholders
(I) None of the total number of shares and share structure were changed in the report term
(II) Top Ten Shareholders and Top Ten Negotiable Share Holders
Total shareholders at the end of the report period 15,786
Top Ten Shareholders
Full name of the Changed in the Shares held at the Proportion % Class of share Pledged Properties of
shareholder report term end of term or frozen shareholder
(shares) (shares) (State-owned or
foreign investors)
China Southern 0 339,625,000 71.13 Non-negotiable 0 State-owned
Industry Group
Co., Ltd.
Gu Zuocheng 0 8,875,000 1.86 Non-negotiable 0 State-owned
Yangpu Xinyufeng 0 7,000,000 1.47 Non-negotiable 0 State-owned
Investment Co.,
Ltd.
Feng Yonghui 0 2,000,000 0.42 Non-negotiable 0 State-owned
Wang Chuxin 180500 1,411,100 0.30 Negotiable 0 Foreign shares
Yang Shuitian -20300 610,200 0.13 Negotiable 0 Foreign shares
Cai Yugui 25200 525,200 0.11 Negotiable 0 Foreign shares
Peng Daqiang 0 470,849 0.10 Negotiable 0 Foreign shares
Zhang Shaoqin 0 420,800 0.09 Negotiable 0 Foreign shares
Shanghai Hong 0 420,000 0.09 Negotiable 0 Foreign shares
Kong Wanguo
Securities
Top Ten Shareholders of Negotiable Shares
Full name of the Negotiable shares held at the end of term Share categories (A, B, H or
shareholder (shares) others)
Wang Chuxin 1,411,100 Current B shares
Yang Shuitian 610,200 Current B shares
Cai Yugui 525,200 Current B shares
Peng Daqiang 470,849 Current B shares
Zhang Shaoqin 420,800 Current B shares
Shanghai Hong Kong 420,000 Current B shares
Wanguo Securities
Luo Hongbo 400,000 Current B shares
Huang Lianna 392,000 Current B shares
Li Mingya 385,800 Current B shares
Xu Shaolin 347,900 Current B shares
Notes to relationship or There isnt any associated relationship between the sponsoring shareholder and the
“ action in concert ” other shareholders among the top-10 list. None of them are regarded as Acting in
among the top ten concert in accordance with The rules of information disclosure on change of
shareholders. shareholding. Foreign shareholders are unknown for their condition of Associated
relationship and Acting in concert.
(III) No change occurred to the controlling shareholder and substantial holders in the report
term.
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建设摩托 Interim Report 2011
IV. Particulars about the Directors, Supervisors and Senior Executives
(I) Leaving and engaging of directors, supervisors or executives
1. In the report term, Mr. Yang Rongqin left the position of employees director due to reelecting of the Board. At
the Shareholders Meeting 2010, Li Huaguang, Lv Hongxian, Yan Xuechuan, Teng Feng, Wang Kun, and Hao Lin
were elected the directors of the 6th term of Board; while Chen Xingshu, Wang Jun, Yu Jianfeng, and Cheng
Yuanwei the independent directors of the 6th term of Board. Along with director Tang Wenquan elected by the
Employees Congress, they form the 6th term of Board of Directors of the Company.
2. In the report term, Mr. Cheng Fukai left the position of employees supervisor due to reelecting of the
Supervisory Committee.At the Shareholders Meeting 2010, Chen Fengzhen, Han Jinke, and Wu Weigang were
elected the supervisors of the 6th term of Supervisory Committee; along with Tao Xuqian and Lv Cuiwei elected
by the Employees Congress, they form the 6th term of the Supervisory Committee.
3. In the report term, the 1st meeting of the 6th term of Board was held. Mr. Li Huaguang was elected Chairman of
the 6th term of Board, Mr. Lv Hongxian was engaged the General Manager, Mr. Teng Feng, Mr. Wen Hong, Mr.
Yu Jiang, Mr. Ye Wenhua, and Mr. Liu Hui were engaged the Vice General Managers of the Company. Mr. Teng
Feng was engaged the CFO, Mr. Wu Dadong were engaged Secretary of the Board, and Ms. Lv Cuiwei was
engaged the manager of Internal Auditing Department.
4. At the 1st meeting of the 6th term of Board held in the report term, Mr. Li Huaguang, Mr. Lv Hongxian, Mr.
Chen Xingshu, and Mr. Yu Jianfeng were elected members of the Strategy Committee, Mr. Li Huaguang was
elected the Chief Commissioner of the Strategy Committee; Mr. Chen Xingshu, Mr. Yu Jianfeng, Mr. Li Huaguang,
and Mr. Teng Feng were elected members of the Auditing Committee, Mr. Chen Xingshu was elected the Chief
Commissioner of Auditing Committee; Mr. Wang Jun, Mr. Cheng Yuanwei, Mr. Li Huaguang, Mr. Lv Hongxian
were elected members of the Nominating Committee, Mr. Wang Jun was elected the Chief Commissioner of the
Nominating Committee; Mr. Wang Jun, Mr. Cheng Yuanwei, Mr. Li Huaguang, and Mr. Lv Hongxian were elected
the members of the Remuneration and Assessment Committee, and Mr. Wang Jun was elected the Chief
Commissioner of the Remuneration and Assessment Committee.
(II) None of the directors, supervisors or management is holding the Company’s shares.
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建设摩托 Interim Report 2011
V. Report of the Board
(I) Financial indices and analyzing
In the first half of 2011, the Company realized motorcycle sales of 694000 units, which was 19.82% of increase from
the same period of last year. In which 309000 were sold by the headquarter, which was a 2.71% of decrease than the
same period of last year. According to the statistics by the Auto Industry Association, the Company was taking 5.27%
of the whole market and ranged the 6th in the first half of this year. The sales of auto A/C compressor was 983000
units, a 35.65% of increase over the same period of last year, and hold the 3rd place of the industry.
Financial situation and business performance
RMB0000
Items Jan-Jun 2011 Jan-Jun 2010 Changed by (%) Cause of change
Turnover 137,144 128,532 6.70 Note 1
Operation profit -109 1,128 -109.66 Note 2
Net profit 136 1,339 -89.84
Note 1. Increase of turnover was mainly caused by increase of sales volume of auto air-conditioners.
Note 2. Decrease of operational profit was caused by decrease of gains from investment in joint ventures and increase
of costs in the report term.
(II) Major business range and operation position
The Company is mainly devoted in manufacturing and technical service of motorcycles, electronic bikes, auto parts,
accessories, and machinery products; designing, manufacturing, and service of industrial modules (except for
national special items); R&D, production, and sales of motorcycle engines; R&D and manufacturing of
electro-mechanical products, home appliances, bicycles, environmental protection products; import, wholesale, retail,
and agency (exclude auction) of the above products (except for special items recognized by the authority).
1. Industrial segment
RMB0000
On industries Turnover Operation cost Gross profit ratio %
Manufacturing 135,670.98 117,990.25 13.03
Products account for over 10% of the major business income
RMB0000
Major products Product Product Gross profit Account in main business income
turnover cost ratio % (%)
Motorcycle and parts 94,725.78 85,175.80 10.08 69.82
Compressor for vehicle air 40,945.20 32,814.45 19.86 30.18
conditioner
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建设摩托 Interim Report 2011
2. Geographic segment
RMB0000
Major business Main business
Regions Major business cost
turnover gross profit
North 19,656.66 15,778.37 19.73
East 9,430.19 8,423.60 10.67
Mid-south 5,378.16 4,966.48 7.65
South-west 70,505.82 61,177.79 13.23
North-east 5,080.90 4,716.27 7.18
North-west 5,034.15 4,708.80 6.46
South 4,571.92 4,239.22 7.28
Sub-total of domestic
119,657.80 104,010.54 13.08
sales
Overseas sales 16,013.18 13,979.70 12.70
Total 135,670.98 117,990.25 13.03
3. None of the profit structure, main business or its structure, and main business profitability has changed
significantly.
4. Other business operation which made great influence on the profitability in the report term
RMB0000
Other business operation Gain/loss Portion in net profit (%)
Rent of fixed assets 389.96 285.81%
5. Business operation of the holding companies and joint ventures
RMB0000
Name of companies Shares Registered Capital scale Major products or service Net profit
held capitalRMB0000 RMB0000 (RMB0000)
Chongqing Jianshe 50.00% 37,993 108,956 Manufacturing and sales of 1,402
YAMAHA Motorcycle motorcycles and engine parts
Co., Ltd.
Zhuzhou Jianshe 50.00% 49,786 Manufacturing and sales of 2,896
YAMAHA Motorcycle 73,538 motorcycles and engine parts
Co., Ltd.
Chongqing Pingshan 49.00% 15,876 Manufacturing and sales of 532
Taikai Carburetor Co., 17,587 carburetors, general gas engines
Ltd. and parts
Chongqing Tongsheng 30.00% 1,000 Production and sales of 119
Jianshe Industry Co., 4,366 motorcycle parts
Ltd.
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建设摩托 Interim Report 2011
(III) Investment in the Report Term
1. In the report term, no capital was newly introduced by financing, nor using of proceeds from previous financing
activities.
2. Investment financed by resources other than share issuing in the report.
On May 31, 2011, the Shareholders Annual Meeting 2010 has adopted the “Proposal of Technical Reconstruction of
Turbine Type Compressor Production”. The project was budgeted for investment of RMB154.10 million. In which
Jianshe will invest RMB130 million. RMB88.45 million was invested in the report, namely the works of bidding
competition for purchasing of 39 equipment under 24 items have been finished.
(IV) In the report term, the Company had made no modification on the Company’s annual
business plan.
VI. Significant Events
(I) Company Administration
In the first half of year, the Company enhanced the training programs for the directors, supervisors and executives,
further improved the overall supervising system and fundamental administration rules, promoted risk control and
internal management reforming. Followings are the details:
1. To reinforce supervising over shareholding position of directors, supervisors and executives of the Company, the
Company produced the “Regulations of Holding the Companys Shares by Directors, Supervisors, and Executives”.
2. To reinforce information reporting and administration during the period of making, examining and disclosing of
the periodic reports and material issues, the Company has produced the “Regulations of Information Report and
Using”.
3. To standardize the internal auditing works, lift up auditing quality, and protect the legal benefits of investors, the
Company has produced “Internal Auditing Criteria”.
4. To regulate the related transactions between the Company (and its subsidiaries) and related parties and make sure
all related transactions are legal, fair, and rational, the Company produced the “Regulations of Related Transactions”.
5. To regulate capital interchange among the Company and the holding shareholder, the substantial controlling party,
and other related parties, and protect the legal benefits of the investors, avoid capital adoption by the holding
shareholder, substantial controlling and related parties, the Company produced the “Regulations of Capital
Interchange with Related Parties”.
(II) None of profit distribution plan, common reserve capitalizing plan or new share issuing plan
was produced before the report term which need to be carried out in the report term. None of
profit distribution or common reserve capitalizing will be carried out for the report term. Profits
will be used to neutralize previous losses.
(III) Major lawsuit and arbitration issues
1. No new major lawsuit or arbitration issues happened in the report term.
2. Unsettled material lawsuit or arbitration in the report period.
(1) On January 5, 2009, Chongqing Northern Jianshe Import & Export Co., Ltd. appealed to Chongqing Jiulongpo
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建设摩托 Interim Report 2011
Peoples Court against Chongqing Huiyao Motorcycle Co., Ltd. for returning of trade account of RMB3.3 million,
and L/C credit interest of RMB75 thousand, and relative interest losses (basing on RMB3.375 million, at the bank
loan interest rate at the same period since August 16, 2007 till the account was cleared). On May 20, 2009, the court
opened trial on this case and judged in favor of the Import & Export Co. The defender appealed to No.5 Middle
Court but rejected for it has failed to pay the appeal fee. This case is now in execution period.
(2) Jiang Fuqiang and Chongqing Qianhua Machinery Co., Ltd. sued to the 1st middle court of Chongqing on
December 17, 2009 claiming for recognition of motorcycle cargo trestle manufactured and sold by Congqing Jianshe
Sales Co., Ltd. and Chongqing Feida Surface Processing Center Ltd. to be one of the protected patents of the claimer.
They claimed to stop manufacturing and sales of the subject and RMB500 thousand of compensation, and the lawsuit
fees. During the trial period, Chongqing Feida Surface Processing Center Ltd. claimed for invalid patent to the
Reviewing Committee of National Committee of Patents. Therefore the 1st Middle Court of Chongqing suspended
the trial. As of the date of this report, the trial has not been restored.
Chongqing Northern Jianshe Import and Export Co., Ltd. sued to Chongqing No.5 Middle Court in September 2010,
claiming for USD1.390472 million of trade account and interests from Weiran Motorcycle (Nigeria) Co., Ltd. The
Court has accepted the application on October 19, 2010. Serving of court notice will be through diplomatic channel
for it involves in international lawsuit. The first trial is primarily scheduled on March 1, 2012.
3. There is no major lawsuits or arbitration issues closed in the report term.
(IV) As of end of the report term, the Company holds no share equities of other PLCs, neither
financial institutions such as commercial banks, securities brokers, insurance companies, trust
companies, or future companies, nor companies planning to go public.
(V) The Company conducted no major acquisition, selling, or merger operations in the report
term.
(VI) Related transactions
1. For details of related transactions please go to the financial report.
2. No credit or debt involved with related parties.
3. No other material related transaction
(VII) Material Contracts and Implementation
1.No events concerning trusteeship, contracting or lease of assets in which the Company was involved
2. Guarantee issues
As of the end of report term, the Company has provided guarantee to Chongqing Jianshe Vehicle Air Conditioner
Compressor Co., Ltd. – one of the fully-owned subsidiaries for loan of RMB149 million; and provided guarantee on
accepted bank draft of RMB105.72 million for Chongqing Jianshe Sales Co., Ltd. – one of the fully-owned
subsidiaries. The above guarantees accounted for 53.64% of the net asset provided by the latest auditing report. They
were approved by the Shareholders Annual Meeting 2010.
3. No providing or accepting of cash asset management to or from other parties occurred during the report term.
(VIII) No commitment issues involved with shareholders with over 5% of shares in the report
term
(IX) No correction of major accounting error or retrospective adjustment operation occurred in
the report term.
(X) The interim financial report of 2011 was not audited.
(XI) Capital adoption and settling in the first half of 2011
As of June 30, 2011, the Company has not involved in any capital adoption by the holding shareholder as described
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建设摩托 Interim Report 2011
by [The notice about capital interchange between PLCs and related parties and providing of external guarantee] (证
监发[2003]56 号) issued by CSRC; no payment made on behalf of the holding shareholder regarding wages,
welfares, insurances, or advertisements.
Independent opinions of the independent directors on capital adoption by related parties and providing of external
guarantees:
1. As of June 30, 2011, no capital adopted by the holding shareholder or other related parties.
2. As of the end of report term, the Company has provided RMB254.72 million of guarantee to the Sales Co. and
Air-conditioner Co. which were the holding subsidiaries of the Company, accounted for 53.64% of the net asset of
the Company as provided by the latest auditing report. Both of these two companies are the fully-owned subsidiaries
of the Company, directly or indirectly, and under full control of the Company. Providing of the guarantees will not
impact the interests of the Company and the shareholders. The Company didnt provide any guarantee to any of the
holding shareholder or the other related parties or entities the Company was holding less than 50% of the shares.
None of the holding shareholder and the related parties has forced the Company to provide any guarantee to any
other parties.
(XII) None of the Company, the Board of Directors, the directors, the shareholders, the
executives, or the substantial controller was under investigation, administrative punishment,
criticized, disqualified, restricted by CSRC or public condemn by stock exchange in the report
period.
(XIII) Reception of visiting and investigations
In the report term, on basis of open, fairness, and justice, the Company received the investigation, communication,
and visiting requests from the investors fully pursuant to the provisions of “Guide to Fair Information Disclosure of
Listed Companies” provided by Shenzhen Stock Exchange. No classified important information was disclosed
under-table, ahead of schedule, or to selective objects. The fairness of information disclosure was therefore
guaranteed.
Reception Records of Investigations, Communications, and Visiting
Date Location Means Visitors Contents and information referred
2011-7-7 The Telephone Individual Q: According to the “Production and Sales Express, June
Company communication investors 2011”, the sales of motorcycles has decreased by 20% in
the first half of year. Will this influence the Companys
interim business performance?
A: Financial settlement is not completed yet for the 1st
half of year. It will be released duly according to the
Share Listing Rules of SSE and related regulations.
１０
建设摩托 Interim Report 2011
VII. Financial Report (Not audited)
Balance Sheet
Prepared by Chongqing Jianshe Motorcycle Co., Ltd. Ended June 30, 2011 RMB Yuan
Balance at the end of term Balance at the beginning of year
Items
Consolidated Parent company Consolidated Parent company
Current asset:
Monetary capital 234,921,989.79 155,791,640.27 825,440,026.90 427,024,050.29
Settlement provision
Outgoing call loan
Transactional financial assets
Notes receivable 103,656,774.26 27,719,987.00 113,287,107.16 7,890,000.00
Account receivable 258,659,893.12 28,772,347.25 175,805,282.76 5,727,805.75
Prepayment 86,227,701.91 32,529,537.26 103,649,799.91 79,713,229.02
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Interest receivable
Dividend receivable
Other account receivable 49,854,110.16 172,834,501.43 32,085,914.13 201,171,446.05
Repurchasing of financial assets
Inventories 278,417,221.24 59,826,226.73 300,495,276.28 57,564,284.39
Non-current asset due in 1 year
Other current asset
Total of current asset 1,011,737,690.48 477,474,239.94 1,550,763,407.14 779,090,815.50
Non-current assets
Disburse of consigned loans
Available-for-sale financial asset
Expired investment in possess
Long-term receivable
Long-term share equity investment 654,988,631.20 804,245,159.08 631,736,542.30 781,197,070.18
Investment properties
Fixed assets 838,475,692.92 636,266,183.12 855,597,461.88 650,107,621.77
Construction in process 814,265.96 814,265.96 1,040,282.31 1,040,282.31
Engineering goods
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 86,554,330.90 64,053,069.74 90,185,914.33 66,573,220.08
R&D expense 50,697,629.20 50,697,629.20 46,372,717.73 46,372,717.73
Goodwill
Long-term amortizable expenses 11,597,985.66 2,027,143.74 12,812,902.71 2,550,355.83
Differed income tax asset 9,501,441.36 1,335,305.09 8,741,293.83 1,170,239.51
Other non-current asset 1,428,000.00 1,632,000.00
Total of non-current assets 1,654,057,977.20 1,559,438,755.93 1,648,119,115.09 1,549,011,507.41
Total of assets 2,665,795,667.68 2,036,912,995.87 3,198,882,522.23 2,328,102,322.91
１１
建设摩托 Interim Report 2011
Current liabilities
Short-term loans 750,220,000.00 651,720,000.00 415,611,440.00 361,950,000.00
Loan from Central Bank
Deposit received and hold for others
Call loan received
Trade off financial liabilities
Notes payable 184,290,000.00 30,000,000.00 1,192,183,328.82 690,160,140.40
Account payable 455,229,960.54 304,923,268.80 483,750,526.61 364,985,581.76
Prepayment received 49,901,483.64 6,128,531.18 81,587,932.62 3,771,303.87
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 1,298,935.07 741,043.68 2,591,770.66 1,123,194.06
Tax payable 120,094,199.60 118,261,961.40 130,292,791.35 128,907,519.65
Interest payable
Dividend payable
Other account payable 30,198,950.51 27,490,342.02 38,746,970.04 42,091,175.90
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1 year 62,500,000.00 62,500,000.00 62,500,000.00 62,500,000.00
Other current liability
Total of current liability 1,653,733,529.36 1,201,765,147.08 2,407,264,760.10 1,655,488,915.64
Non-current liabilities
Long-term borrowings 531,300,000.00 233,500,000.00 312,000,000.00 82,000,000.00
Bond payable
Long-term payable
Special payable 2,613,000.00 2,613,000.00 2,269,250.00 2,269,250.00
Expectable liabilities
Differed income tax liability
Other non-recurring liabilities
Total of non-current liabilities 533,913,000.00 236,113,000.00 314,269,250.00 84,269,250.00
Total of liability 2,187,646,529.36 1,437,878,147.08 2,721,534,010.10 1,739,758,165.64
Owners’ equity (or shareholders’ equity)
Capital paid in (or share capital) 477,500,000.00 477,500,000.00 477,500,000.00 477,500,000.00
Capital reserves 603,180,517.59 601,240,294.29 603,180,517.59 601,240,294.29
Less: Shares in stock
Special reserves
Surplus reserves 125,686,000.00 125,686,000.00 125,686,000.00 125,686,000.00
Common risk provision
Retained profit -730,093,575.01 -605,391,445.50 -731,457,938.07 -616,082,137.02
Different of foreign currency translation
Total of owner’s equity belong to the parent
476,272,942.58 599,034,848.79 474,908,579.52 588,344,157.27
company
Minor shareholders’ equity 1,876,195.74 2,439,932.61
Total of owners’ equity 478,149,138.32 599,034,848.79 477,348,512.13 588,344,157.27
Total of liabilities and owners’ equity 2,665,795,667.68 2,036,912,995.87 3,198,882,522.23 2,328,102,322.91
１２
建设摩托 Interim Report 2011
Income Statement
Prepared by: Chongqing Jianshe Motorcycle Co., Ltd. Jan-Jun 2011 RMB Yuan
Amount of the Current Term Amount of the Previous Term
Items Parent
Consolidated Consolidated Parent company
company
I. Total revenue 1,371,442,562.50 869,013,591.47 1,285,320,978.49 1,474,723,970.07
Incl. Business income 1,371,442,562.50 869,013,591.47 1,285,320,978.49 1,474,723,970.07
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 1,396,576,936.65 883,758,716.59 1,313,713,756.58 1,510,407,278.74
Incl. Business cost 1,187,779,750.98 786,669,103.83 1,094,442,596.50 1,391,086,918.44
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy reserves
provided
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 18,305,481.31 16,158,602.42 18,016,511.79 16,837,151.08
Sales expense 73,664,530.50 14,753,048.40 90,852,618.36 23,487,383.46
Administrative expense 77,855,241.42 38,914,464.32 75,542,764.72 57,461,068.88
Financial expenses 35,548,776.33 26,163,060.43 31,443,524.59 23,184,059.74
Asset impairment loss 3,423,156.11 1,100,437.19 3,415,740.62 -1,649,302.86
Plus: Gains from change of fair value (“-
“ for loss)
Investment gain (“-“ for loss) 24,048,088.90 24,048,088.90 39,673,118.18 39,673,118.18
Incl. Investment gains from
24,551,493.73 24,551,493.73 40,176,523.01 40,176,523.01
affiliates
Gains from currency exchange (“-“ for
loss)
III. Operational profit (“-“ for loss) -1,086,285.25 9,302,963.78 11,280,340.09 3,989,809.51
Plus: Non business income 1,627,284.19 1,375,977.59 2,218,525.56 1,575,867.68
Less: Non-business expenses 500,520.28 153,315.43 291,568.56 177,218.18
Incl. Loss from disposal of non-current
34,263.43 164,553.18 164,553.18
assets
IV. Gross profit (“-“ for loss) 40,478.66 10,525,625.94 13,207,297.09 5,388,459.01
Less: Income tax expenses -760,147.53 -165,065.58 247,395.42 247,395.42
V. Net profit (“-“ for net loss) 800,626.19 10,690,691.52 12,959,901.67 5,141,063.59
Net profit attributable to the owners of
1,364,363.06 10,690,691.52 13,394,416.92 5,141,063.59
parent company
Minor shareholders’ equity -563,736.87 -434,515.25
VI. Earnings per share:
(I) Basic earnings per share 0.00 0.03
(II) Diluted earnings per share 0.00 0.03
VII. Other misc. incomes -235,200.00
VIII. Total of misc. incomes 800,626.19 10,690,691.52 12,724,701.67 5,141,063.59
Total of misc. incomes attributable to the
1,364,363.06 10,690,691.52 13,159,216.92 5,141,063.59
owners of the parent company
Total misc gains attributable to the minor
-563,736.87 -434,515.25
shareholders
Merger of entities under common control, the net profit realized by the merged party was RMB0.00.
１３
建设摩托 Interim Report 2011
Cash Flow Statement
Prepared by: Chongqing Jianshe Motorcycle Co., Ltd. Jan-Jun 2011 RMB Yuan
Amount of the Current Term Amount of the Previous Term
Items
Consolidated Parent company Consolidated Parent company
I. Net cash flow from business operation
Cash received from sales of products
1,004,125,594.48 662,647,162.18 961,943,428.51 708,625,432.12
and providing of services
Net increase of customer deposits and
capital kept for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from
other financial bodies
Cash received against original
insurance contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Net increase of trade financial asset
disposal
Cash received as interest, processing
fee, and commission
Net increase of inter-bank fund
received
Net increase of repurchasing business
Tax returned 11,118,487.53 6,176,961.92 15,144,359.23 9,765,069.17
Other cash received from business
7,650,196.61 2,380,454.13 37,953,097.92 24,485,934.72
operation
Sub-total of cash inflow from
1,022,894,278.62 671,204,578.23 1,015,040,885.66 742,876,436.01
business activities
Cash paid for purchasing of
855,773,303.08 661,091,330.53 959,985,708.92 863,436,887.78
merchandise and services
Net increase of client trade and
advance
Net increase of savings in central bank
and brother company
Cash paid for original contract claim
Cash paid for interest, processing fee
and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 101,859,179.83 79,187,793.49 97,558,813.14 75,738,248.65
Taxes paid 45,547,207.49 20,047,186.05 37,783,054.59 24,220,104.67
Other cash paid for business activities 51,582,896.87 19,731,587.19 43,345,744.27 10,604,114.14
Sub-total of cash outflow from
1,054,762,587.27 780,057,897.26 1,138,673,320.92 973,999,355.24
business activities
Cash flow generated by business
-31,868,308.65 -108,853,319.03 -123,632,435.26 -231,122,919.23
operation, net
II. Cash flow generated by investing
Cash received from investment
retrieving
Cash received as investment gains 11,000,000.00 11,000,000.00 12,000,000.00 12,000,000.00
Net cash retrieved from disposal of
14,869.04 6,410.26 22,080.00
fixed assets, intangible assets, and other
１４
建设摩托 Interim Report 2011
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received 1,258,801.19 457,995.75 20,169,248.43 15,165,198.80
Sub-total of cash inflow due to
12,273,670.23 11,464,406.01 32,191,328.43 27,165,198.80
investment activities
Cash paid for construction of fixed
assets, intangible assets and other long-term 14,932,612.53 11,489,095.82 37,001,761.01 23,458,785.64
assets
Cash paid as investment 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00
Net increase of loan against pledge
Net cash received from subsidiaries
and other operational units
Other cash paid for investment
20,855,546.38 20,128,000.00
activities
Sub-total of cash outflow due to
45,788,158.91 41,617,095.82 47,001,761.01 33,458,785.64
investment activities
Net cash flow generated by
-33,514,488.68 -30,152,689.81 -14,810,432.58 -6,293,586.84
investment
III. Cash flow generated by financing
Cash received as investment
Incl. Cash received as investment from
minor shareholders
Cash received as loans 1,030,720,000.00 898,220,000.00 474,800,000.00 374,000,000.00
Cash received from bond placing
Other financing-related cash received 795,533,127.24 1,802,966,824.12 2,275,478,452.04 2,132,845,932.84
Subtotal of cash inflow from
1,826,253,127.24 2,701,186,824.12 2,750,278,452.04 2,506,845,932.84
financing activities
Cash to repay debts 308,450,000.00 308,450,000.00 365,500,000.00 249,600,000.00
Cash paid as dividend, profit, or
184,108,283.25 174,016,143.41 32,171,359.92 16,488,136.60
interests
Incl. Dividend and profit paid by
subsidiaries to minor shareholders
Other cash paid for financing activities 1,316,018,251.24 2,089,783,422.90 2,170,846,628.55 1,936,799,385.65
Subtotal of cash outflow due to
1,808,576,534.49 2,572,249,566.31 2,568,517,988.47 2,202,887,522.25
financing activities
Net cash flow generated by
17,676,592.75 128,937,257.81 181,760,463.57 303,958,410.59
financing
IV. Influence of exchange rate alternation on
-753,290.07 -585,600.54 -281,399.56 -39,375.62
cash and cash equivalents
V. Net increase of cash and cash equivalents -48,459,494.65 -10,654,351.57 43,036,196.17 66,502,528.90
Plus: Balance of cash and cash
248,884,345.21 166,262,402.29 399,379,360.33 330,985,587.79
equivalents at the beginning of term
VI. Balance of cash and cash equivalents at
200,424,850.56 155,608,050.72 442,415,556.50 397,488,116.69
the end of term
１５
建设摩托 Interim Report 2011
Consolidated Statement of Change in Owners’ Equity
Prepared by: Chongqing Jianshe Motorcycle Co., Ltd. Interim 2011 in RMB yuan
Amount of the Current Term Amount of Last Year
Owners’ Equity Attributable to the Parent Company Owners’ Equity Attributable to the Parent Company
Capital Minor Total of Capital Minor Total of
Items Less: Common Less: Common
paid in (or Capital Special Surplus Retained shareholde owners’ paid in (or Capital Special Surplus Retained shareholde owners’
Shares in risk Others rs’ equity equity Shares in risk Others rs’ equity equity
share reserves reserves reserves profit share reserves reserves reserves profit
stock provision stock provision
capital) capital)
477,500,0 603,180,5 125,686,0 -731,457,9 2,439,932. 477,348,5 477,500,0 601,303,2 125,686,0 -743,414,4 2,399,273. 463,474,0
I. Balance at the end of last year
00.00 17.59 00.00 38.07 61 12.13 00.00 17.59 00.00 52.61 87 38.85
Plus: Change of accounting policy
Correcting of previous errors
Others
II. Balance at the beginning of current 477,500,0 603,180,5 125,686,0 -731,457,9 2,439,932. 477,348,5 477,500,0 601,303,2 125,686,0 -743,414,4 2,399,273. 463,474,0
year 00.00 17.59 00.00 38.07 61 12.13 00.00 17.59 00.00 52.61 87 38.85
III. Changed in the current year ( - for 1,364,363. -563,736.8 800,626.1 1,877,300. 11,956,51 13,874,47
40,658.74
decrease) 06 7 9 00 4.54 3.28
1,364,363. -563,736.8 800,626.1 11,956,51 11,997,17
(I) Net profit 40,658.74
06 7 9 4.54 3.28
-3,122,700 -3,122,700
(II) Other misc. income
.00 .00
1,364,363. -563,736.8 800,626.1 -3,122,700 11,956,51 8,874,473.
Total of (I) and (II) 40,658.74
06 7 9 .00 4.54 28
(III) Investment or decreasing of 5,000,000. 5,000,000.
capital by owners 00 00
1. Capital inputted by owners
2. Amount of shares paid and
accounted as owners’ equity
5,000,000. 5,000,000.
3. Others
00 00
(IV) Profit allotment
1. Providing of surplus reserves
2. Common risk provision
3. Allotment to the owners (or
shareholders)
4. Others
(V) Internal transferring of owners’
equity
1. Capitalizing of capital reserves
(or to capital shares)
2. Capitalizing of surplus reserves
(or to capital shares)
3. Making up losses by surplus
reserves
4. Others
(VI) Special reserves
1. Provided this year
2. Used this term
(VII) Others
477,500,0 603,180,5 125,686,0 -730,093,5 1,876,195. 478,149,1 477,500,0 603,180,5 125,686,0 -731,457,9 2,439,932. 477,348,5
IV. Balance at the end of this term
00.00 17.59 00.00 75.01 74 38.32 00.00 17.59 00.00 38.07 61 12.13
１６
建设摩托 Interim Report 2011
Change in Owners’ Equity (Parent Co.)
Prepared by: Chongqing Jianshe Motorcycle Co., Ltd. Interim 2011 in RMB yuan
Amount of the Current Term Amount of Last Year
Capital paid Total of Capital paid Total of
Items Capital Less: Shares Special Surplus Common risk Retained Capital Less: Shares Special Surplus Common risk Retained
in (or share owners’ in (or share owners’
reserves in stock reserves reserves provision profit reserves in stock reserves reserves provision profit
capital) equity capital) equity
477,500,000. 601,240,294. 125,686,000. -616,082,137 588,344,157. 477,500,000. 596,240,294. 125,686,000. -665,775,039 533,651,254.
I. Balance at the end of last year
00 29 00 .02 27 00 29 00 .73 56
Plus: Change of accounting policy
Correcting of previous errors
Others
II. Balance at the beginning of current 477,500,000. 601,240,294. 125,686,000. -616,082,137 588,344,157. 477,500,000. 596,240,294. 125,686,000. -665,775,039 533,651,254.
year 00 29 00 .02 27 00 29 00 .73 56
III. Changed in the current year ( - for 10,690,691.5 10,690,691.5 49,692,902.7 54,692,902.7
5,000,000.00
decrease) 2 2 1 1
10,690,691.5 10,690,691.5 49,692,902.7 49,692,902.7
(I) Net profit
2 2 1 1
(II) Other misc. income
10,690,691.5 10,690,691.5 49,692,902.7 49,692,902.7
Total of (I) and (II)
2 2 1 1
(III) Investment or decreasing of
5,000,000.00 5,000,000.00
capital by owners
1. Capital inputted by owners
2. Amount of shares paid and
accounted as owners’ equity
3. Others 5,000,000.00 5,000,000.00
(IV) Profit allotment
1. Providing of surplus reserves
2. Common risk provision
3. Allotment to the owners (or
shareholders)
4. Others
(V) Internal transferring of owners’
equity
1. Capitalizing of capital reserves
(or to capital shares)
2. Capitalizing of surplus reserves
(or to capital shares)
3. Making up losses by surplus
reserves
4. Others
(VI) Special reserves
1. Provided this year
2. Used this term
(VII) Others
477,500,000. 601,240,294. 125,686,000. -605,391,445 599,034,848. 477,500,000. 601,240,294. 125,686,000. -616,082,137 588,344,157.
IV. Balance at the end of this term
00 29 00 .50 79 00 29 00 .02 27
１７
建设摩托 Interim Report 2011
Chongqing Jianshe Motorcycle Co., Ltd.
Notes to Financial Statements Interim 2011
(In RMB except for otherwise stated)
I. Company Profile
Chongqing Jianshe Motorcycle Co., Ltd. (formerly Shenzhen Northern Jianshe Motorcycle Co., Ltd.) (“the
Company” hereinafter) was founded on July 19, 1995 by Jianshe Industry (Group) Co., Ltd. (Jianshe Group) and
China Northern Industry (Shenzhen) Co., Ltd. The Company was registered in Chongqing with the certificate of
business No. 5000001805583. The Company listed its B-shares in Shenzhen Stock Exchange on July 25, 1995.
On Dec. 30, 2002, the companys temporary general meeting of shareholders passed a resolution of changing the
company nameShenzhen Northern Jianshe Motorcycle Co., Ltd. as Chongqing Jianshe Motorcycle Co., Ltd..
The business administrative registration was completed on March 11, 2003.
Jianshe Group and the China Southern Industrial Group (Southern Group) signed an Agreement of Equity
Transfer on Dec. 3, 2004 and a Supplementary Agreement of Equity Transfer on Jan. 22, 2005. According to
these agreements, Jianshe Group transferred 339,625,000 of state-owned legal representative shares to Southern
Company. The transfer had been approved by State-owned Assets Supervision and Management Committee of
State Council on March 9, 2005 and approved by the China Securities Regulatory Commission to exempt
Southern Groups obligations of Takeover Offer on May 2005.
In September 2005, under the approval the Foreign capital [2005] certificates No. 0628 of the People's Republic
of China Department of Commerce, the company changed from the domestic-fund corporation to the
foreign-fund corporation and completed the registration of business change in August 2007, receiving new legal
representative business license Registered No.500000400001350, and the registered address is Chongqing. The
original registered capital was RMB 477.5 million Yuan.
In April 2007, according to the Guangdong Province Shenzhen Intermediate People's Court (2006) second
instance judgement No.21-4 on bankruption by Intermediate People's Court of Shenzhen city, 17.875 million
shares of state-owned legal representative shares by China Northern Industrial Shenzhen Company were
transferred to Yangpu New Yufeng Investment Co., Yonghui FENG and Zuocheng GU. Yangpu New Yufeng
Investment Co. held 7 million shares, Yonghui FENG held 2 million shares and Zuocheng GU held 8.875 million
shares.
The controlling shareholder of the company is Southern Group, the largest shareholder of which is State-owned
Assets Supervision and Management Committee of State Council. The Committee hold 100% shares of Southern
Group.
Business scope: motorcycle and parts (including engine), automobile parts (excluding engine), common
machinery, industrial equipment module manufacturing and processing, home appliance and material sales.
II. Statement on the Accounting Standard Followed by the Company
The companys financial statements are prepared basing on the principles described in Note III – Basis of
preparing the financial statements, which are satisfying the requirements of the Enterprise Accounting Standard.
The financial statements are reflecting the financial situation, business performance, and cash flow situation of
the Company truthfully, fairly, and completely.
18
建设摩托 Interim Report 2011
III. Basis for Preparing the Financial Statements
The Company follows the 38 practical rules including Enterprise Accounting Standard – Basic Rules and
Enterprise Accounting Standard No.1 – Inventory, as well as the guidelines issued by the Department of Finance
in 2006, known as the New Accounting Standard.
The Company adopts perpetual operation as the basis of financial statements.
IV. Major accounting policies and estimations
1. Accounting period
The Company uses the calendar year for its fiscal year. A fiscal year is from January 1 to December 31.
2. Standard currency for bookkeeping
The Company uses Renminbi (RMB) as the standard currency for book keeping.
3. Accounting measurement properties
Historical cost measurement is mainly adopted in preparing the financial statements. Finance asset, finance debt,
available-for-sale finance asset, derived finance tools were calculated by fair value; delayed stock products, fixed
asset caused by exceeding normal credit when purchasing were calculated by current value of purchasing price;
stock products which subtracted value were calculated by real value, other assets which subtracted value were
calculated by returnable value (the higher between fair value and current value); Asset inventory surplus was
calculated by replacement cost.
4. Cash equivalents
Cash equivalent refers to the investment held by the Company with short term (due within 3 months from the
purchase date), strong liquidity and low risk of value fluctuation that is easy to be converted into cash of known
amount.
5. Translation of foreign currencies
Business transactions involving with foreign currencies occurred in the fiscal year are booked and translated into
RMB at the central parity rate announced by Peoples Bank of China at the end of previous month.
At the balance sheet day, foreign currency items are translated at the rate of instant date, however the exchange
differences caused by the difference between the rates at the balance sheet date and the initial recognition date or
at the previous balance sheet date, shall be accounted into current gain/loss account; the amount in standard
currency of non-monetary items accounted in foreign currencies and on historical cost basis shall not be changed.
Exchange differences caused by foreign currency loans relating to purchasing or constructing of assets which
satisfy the conditions of capitalization, are accounted according to the principles adopted for loan expenses.
6. Financial instruments
(1) Categories
The Company classifies financial assets and financial liabilities into: transactional financial assets and liabilities,
investment equity held to maturity, receivable accounts, disposable financial assets, and other financial liabilities.
(2) Recognition of financial instruments
When the Company becomes one of the parties of a financial instrument contract, the financial asset or liability
is recognized.
(3) Measurement of financial instruments
19
建设摩托 Interim Report 2011
Fair value is adopted at initial recognition of financial assets or liabilities. The related transaction expenses of
transactional financial assets or liabilities are accounted directly to current gain/loss account; transaction
expenses of other financial assets or liabilities are accounted into initial recognition amount.
The Company uses fair value in subsequent accounting of financial assets, and will not deduct the contingent
expenses that may occur in future disposal. Whereas investment held to maturity and receivable accounts are
accounted on actual interest basis and at the amortized costs.
The Company uses fair value in accounting of transactional financial liabilities, and will not deduct the
contingent expenses that may occur in future clearance. Whereas other financial liabilities are accounted on
actual interest basis and at the amortized costs.
Gains or losses formed by change of fair value of transactional financial assets or liabilities are accounted into
current gain/loss account; gains or losses formed by change of fair value of disposable financial assets, except for
impairment losses and exchange gain/loss formed by financial assets in foreign currencies, are accounted into
owners equity directly, and transferred out to current gain/loss as soon as the financial asset is terminated.
The gains or loss occurred at termination recognition, impairment, or amortizing of financial assets or liabilities
accounted at amortized costs are accounted into current gain/loss account directly.
(4) Recognition of financial asset transferring
The financial assets are recognized for termination when almost all the risks and rewards of the ownership rights
are transferred; if almost all the risks and rewards of the ownership right are reserved, no termination will be
recognized.
(5) Measurement of financial asset transferring
If the termination conditions are satisfied when a financial asset is transferred in full, the differences between the
following items are accounted into current gain/loss: a. book value of the financial asset to be transferred; b. the
sum of consideration received for the financial asset and the accumulative change of fair value originally
accounted into owners equipty (if the financial asset to be transferred is disposable financial asset).
(6) Recognition of fair value
If there is an active market, the fair value of financial asset or liability is recognized at the price in the active
market.
If there is no such active market, the fair value of financial instruments is recognized by estimation technique.
(7) Impairment of financial assets
At the balance sheet day, the Company investigates the book value of financial assets other than transactional
financial assets, when impairment is proved by objective evidences, impairment provisions shall be provided.
When impairment happened to a financial asset accounted at amortized costs, the book value of this financial
asset shall be reduced to the current value of predicted future cash flow, the reduced amount shall be recognized
as asset impairment loss and accounted into current gain/loss account.
When objective evidence showing that the value of a financial asset accounted at amortized cost has been
restored after recognition of impairment, and substantially related to the issues occurred after recognition of the
impairment (for instance the credit grade of the debtor has increased), the impairment loss recognized originally
shall be restored and accounted into current gain/loss account. However, the book value shall not be exceeding
the amortized costs of the financial asset at the restoring date provide the impairment provision has never been
provided.
7. Bad debt provisions on receivable accounts
If there are any objective evidence showing that impairment has occurred to a receivable account (including
receivable account and other receivables), the difference between the book value and the present value of
expected future cash flows is recognized as bad debt provision.
For individual account receivable with minor amount, and those with major amount but suggested no impairment
when separate test was performed (include account receivable and other capital receivable), the Company
conduct the proportion of all the compositions bad debt plans according to the actual loss rate of the similar
account receivable composition with same account age together with the current conditions. The rates are:
20
建设摩托 Interim Report 2011
Age Provision rate
within 1 year 5%
1-2 years 10%
2-3 years 20%
Over 3 years 50%
Bad debt provisions shall be provided on individual recognition basis when solid evidence showing that there is
difference between the possibilities of recovering.
The book value of receivable accounts are reduced by provision account (bad debt provisions). If an impaired
credit is evaluated as unrecoverable, termination recognition shall be performed.
8. Inventories
Inventories are categorized as raw materials, products in process, and finished products, etc.
Inventories are accounted at actual costs, which include purchase costs, processing costs, and other costs. When
inventories are delivered, the costs are recognized by weighted average method or FIFO method. At the balance
sheet day, the inventories are measured at the lower of the costs and net realizable value.
Low-value consumables and packing materials are amortized at one-off basis.
The company adopt perpetual method for inventory counting.
Recognition basis of net realizable value of inventories：? the net realizable net of finished goods is the estimated
selling price less the estimated costs to sell and the relevant tax ； ”when the net realizable value of
held-for-production materials is higher than the costs, they are measured at the costs；when the price of the
materials decrease, which indicates the net realizable value of the finished goods is lower than the costs，the net
realizable value is the estimated selling price less the estimated costs incurred until the completion of production,
and the estimated costs to sell and the relevant tax; “ the net realizable value of held-for-sale materials is the
market price.
Method for providing inventory impairment provision: at the balance sheet date, inventory impairment
provisions are provided at the difference of book value over realizable net value, and accounted to current
gain/loss account. If the value restored in subsequent periods, the impairment provision provided previously shall
be restored and accounted into current gain/loss account.
9. Enterprise merger
(1) Merger of enterprise under common control
For merger of enterprise under common control, the Company uses equity integration method in accounting
treatment. For those assets and liabilities acquired through merger shall be accounted at original book value
except for those according to different accounting standard, no goodwill will be calculated anyway. The
difference between the book value of considerations and the book value of the net asset acquired will be adjusted
to capital reserves, when the capital reserve is not enough for adjusting, the balance shall be adjusted to retained
profit. Net profit of the merged enterprise realized prior to the merger shall be accounted into consolidated
income statement.
(2) Merger of enterprises under different control
The difference of the acquisition cost greater than the fair value of recognizable net asset of the enterprise
acquired is accounted as goodwill, and measured as the cost less accumulative impairment provisions; The
difference of the acquisition cost shorter than the fair value of recognizable net asset of the enterprise acquired is
accounted into current gain/loss.
Business results of the acquired enterprise are consolidated since the date of merger, till the controlling power is
transferred out of the Company.
10. Long-term equity investment
(1) Categories of long-term equity investment
21
建设摩托 Interim Report 2011
Long-term equity investment is categorized as: long-term equity investment to subsidiaries, long-term equity
investment to joint-ventures, long-term equity investment to associated enterprises, long-term equity investment
to enterprise without mutual control or major influence, and has no quotation in an active market, and the fair
value is not able to be measured reliably (“other equity investment”).
(2) Initial measurement of long-term equity investment
The initial costs of long-term equity investment formed in enterprise merger will be decided at the following
basis: For long-term equity investment formed in merger of enterprises under same controlling, the initial
investment cost of the long-term equity investment will be the share of booked owners equity of the enterprise
been merged. The expenses directly related to the merger will be counted as gain/loss of the current term
instantly. For long-term equity investment formed in merger of enterprises under different controlling, the initial
investment cost of the long-term equity investment will be upon the capital paid to acquire the ownership,
liabilities undertaken, and the fair value of equity securities placed. The expenses directly related to the merger
will be counted as initial investment cost directly.
For long-term investment obtained in term of cash payment, its initial investment cost will be the actual price
paid. Initial investment cost includes expenses, taxes and other necessary expenditures directly related to
obtaining of the long-term investment, however the cash dividend announced but not collected included in the
actual price shall be booked particularly as one of the receivables.
Long-term equity investment obtained through issuing of equity stocks, the initial investment cost shall be
accounted at the fair value of the equity stocks issued.
Long-term equity investments input by investors are initialized at the value stipulated by the investment contract
or agreement, except for those contracted values are not fairly acceptable.
Long-term equity investment obtained through exchange of non-monetary assets, if this trade is commercial and
the fair values of the assets been traded are able to be reliably measured, then the fair value of outgoing asset will
be used as the initial investment cost. The difference between the fair value and book value of the outgoing asset
is accounted into current gain/loss account. If the non-monetary asset trade is not satisfying both of the above
conditions, then the book value of the outgoing asset and taxes will be adopted as the initial investment cost.
Long-term equity investments acquired through debt reorganizing, the initial investment costs are recognized at
the fair value of the equity acquired. The differences between the investment cost and the book value of the
credit are accounted into current gain/loss account.
(3) Subsequent measurement of long-term equity investment
The Company adopts cost basis for accounting of long-term equity investments in subsidiaries and other equity
investments. At preparing of the consolidated financial statements, the long-term equity investment in
subsidiaries are adjusted on equity basis.
Equity basis is also adopted in accounting of long-term equity investment in joint ventures and associated
enterprises.
At balance sheet day, if there is indication showing impairment occurred on the long-term equity investment in
subsidiaries, long-term equity investment in joint-ventures, and long-term equity investment in associated
enterprises, the recoverable amount shall be evaluated, when the recoverable amount is lower than the book
value, the impairment loss shall be recognized and accounted into current gain/loss, and long-term equity
investment impairment provision shall be provided thereof. When impairment occurred to other equity
investment, the differences between the current value of future cash flow determined with reference to the
income rate of similar financial assets in the market shall be recognized as impairment losses and accounted into
current gain/loss, and long-term equity investment impairment provision shall be provided thereof. None of the
above long-term equity investment impairment prevision shall be written back in subsequent terms.
(4) Recognition of income from long-term equity investment
Long-term equity investments accounted on cost basis are priced at initial investment costs. Supplementary or
retrieved investments are adjusted to the cost of long-term equity investment. Cash dividend or profit distribution
announced by the investee are recognized as investment gains of the current term. Recognition of investment
gains is limited to the allocated amount of the accumulated net profit after the investment has been made. The
exceeding part of profit or cash dividend over the above amount is treated as retrieving of initial investment cost.
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建设摩托 Interim Report 2011
Long-term equity investment accounted on equity basis, investment gain/loss is recognized at the share of net
gain/loss realized by the investee and adjusted to the book value of the long-term equity investment. Profit
distribution or cash dividend announced or delivered by the investee shall be deducted from the book value of
long-term equity investment. Other change of owners equity by the investee other than net gain/loss shall be
adjusted to the book value of the long-term equity investment and accounted into owners equity.
At disposal of long-term equity investment, the difference between the book value and actual consideration shall
be accounted into current gain/loss account. For long-term equity investment on equity basis, the changes in
owners equity other than gain/loss accounted into owners equity, it will be transferred over to current gain/loss
from the part originally accounted into owners equity when disposed.
11. Investment property
The investment properties of the company are classified as land-use right for lease, buildings for lease and
land-use right held for transfer when value added.
The investment properties are measured initially at the costs, and the subsequent measurement is by cost method.
The Company adopts depreciation or amortizing methods on investment properties which are the same with
fixed assets and intangible assets.
When evidence showing that the investment properties are impaired at the balance sheet day, investment property
impairment provisions shall be provided with the method described in 15. Asset impairment hereafter.
12. Fixed assets
(1) Standards of fixed assets
The fixed assets are the tangible assets held for goods produced, services rendered, leasing or administration and
the using life are over one accounting period.
(2) Fixed assets are recognized by satisfying all of the following conditions：
a. The economic benefits related to the fixed asset probably flow to the company.
b. The costs of the fixed asset can be measured reliably.
(3) Categories of fixed assets
The fixed assets of the company is classified as house and buildings, machinery equipments, electronic
equipments, transport equipments and office appliances.
(4) Depreciation basis
The depreciation method is by straight-line method, and depreciation ratio is decided in accordance with the
original value and useful life after deducting of predicted scrap value (3% of original value). Depreciation ratio
on useful life are:
Category of assets Expected service life Annual depreciation ratio %
Houses & buildings 30-35 yrs 2.77-3.23
Equipment & machinery 7-14 yrs 6.93-13.86
Transportation equipment and office 5-8 yrs 12.13-19.40
appliances
（5）Fixed asset impairment provision
On the balance sheet day, the company should check whether or not there has the indication that the fixed assets
might be impaired. If the indication exists, it will be taken the impairment test to recognize its recoverable
amount and should be made provision at the low of the book value and the recoverable cost.
When one of the following becomes true, fixed asset impairment provision shall be provided at the book value in
full:
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建设摩托 Interim Report 2011
a. Fixed asset has been idle for a long time, and is not expected to be put into use again, and no value recovering
through disposal;
b. Fixed asset becomes unusable due to technical upgrading;
c. The fixed asset is still usable, but could produce large amount of defective products;
d. Damaged and not usable or disposable.
e. Othe fixed assets practically unable to bring financial benefits to the Company.
Once fixed asset impairment is recognized, it shall not be written back in subsequent fiscal periods.
13. Construction-in-progress
Construction-in-process refers to necessary expenses occurred before the constructed or purchased fixed asset
reaches its usable status, including direct materials, direct wages, equipment to be installed, construction &
installation fee, project management fee, net gain/loss of project trial operation and loan expenses allowed to be
capitalized, etc.
Construction-in-process is transferred to fixed assets as soon as it becomes usable.
At the balance sheet day, if evidence showing that impairment occurred to the construction-in-process,
impairment provisions shall be provided according to 15. Asset Impairment hereafter.
14. Intangible assets
(1) Initial recognition
Intangible assets are land using rights, patents, and non-patent technologies, which are measured at cost basis.
(2) Subsequent measurement
Intangible assets are categorized to limited useful life and unlimited useful life according to their estimated
beneficial period, whereas those cant be estimated are categorized as intangible assets without definite useful
life.
For intangible assets with limited useful life, its amortizable amount shall be amortized rationally through its
useful life, if the realizing way is not able to be reliably predicted, straight amortizing shall be applied.
The Company reviews, at least once at end of each year, the useful life and amortizing method of the intangible
assets with limited useful life, and shall adjust when necessary.
Intangible assets without definite useful life are not amortized, but reviewing shall be performed on the useful
life, and impairment test as well.
On the balance sheet day, when there is sign of impairment on the intangible asset, intangible asset impairment
provision shall be provided according to 15. Asset Impairment hereafter.
(3) Estimation of useful life
The company consider the following factors when estimating the life of intangible assets with finite life:
- the life cycle of the products produced by the assets, and the available information of the similar assets life；
- the current stage of technology, technique and so on, and the evaluation of future development trend；
- the market demand of products or services provided by the assets；
- current or potential competitors are expected to take action；
- expected maintenance expenses for maintaining the ability of the assets to bring economic benefits, and the
companys ability of expected to pay the expenses；
- relevant laws and regulations or similar restrictions for the controlling period of the assets, such as licensed
using period and the leasing period；
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建设摩托 Interim Report 2011
- relevance that is related to service life of other assets held by the company.
(4) Specific standards of R&D stage in internal R&D projects and specific standards of expenditure on
development
The expenditure on internal R&D are recorded in gain or loss at the occurrence time.
The expenditure incurred on development are recognized as intangible assets when satisfying the following
conditions simultaneously:
- the technical availability of finishing the intangible asset that can be used or sold；
- equipped with the intention of use and sale after the completion of the intangible asset；
- The mode of creating the economic benefits from the intangible asset includes can demonstrate there is the
market for the products of the intangible asset or the intangible asset itself. If the intangible asset is used
internally, the usability can be demonstrated；
- there has the supporting by sufficient technique, financial resources and other resources to complete the
development of the intangible asset and the company have the competence of using or selling this intangible
asset；
- The expenditure on the development stage of the intangible asset can be measured reliably.
15. Asset impairment
On the balance sheet day, if there is sign of impairment on particular asset (refers to assets other than inventory,
equity instruments without quotation in an active market and cannot be measured reliably, investment property
uses fair value, consumable biological assets, assets formed by construction contracts, deferred income tax assets,
the unsecured balance among the financed leasing, and financial assets), recoverable amount shall be evaluated
for each individual asset; When the recoverable value could not be estimated on a single asset, it can be decided
along with the portfolio it belongs to.
The returnable amount is the higher value of net value of individual asset, asset composition, asset composition
groups fair value deduct dealing expenditures and anticipating future cash flow net value of the individual asset,
asset composition, asset composition group.
When the recoverable amount of single asset is lower than its book value, asset impairment provision shall be
provided at the difference of the book value and the recoverable value. If the recoverable value of a portfolio or a
group of portfolios is lower than its book value, the balance shall be recognized as impairment loss, which shall
be firstly deducted from the book value of the portfolio or the group of portfolios, and then deducted from the
book value of other assets according to the portion of book value of the portfolio or group of portfolios other
than goodwill; deduction of above book values of assets shall be provided for impairment provisions individually
(including goodwill).
Once impairment losses are confirmed upon the above assets, they wont be restored in successive accounting
periods.
16. Borrowing expenses
Borrowing expenses are those interests and costs of raising loans, including interests, amortizing of discount or
premium, supplementary expenses, and exchange difference caused by loans in foreign currencies.
Borrowing expenses for purchasing or construction of assets that are satisfying the conditions of capitalization
shall be capitalized, other borrowing expenses are accounted into current gain/loss account. Assets satisfying the
conditions of capitalization are those fixed assets, investment assets or inventories which need a long period of
time to purchase, construct, or manufacturing before becoming usable.
(1) Capitalizing shall be performed when all of the following conditions are satisfied:
- asset expenditure has already occurred;
- Loan expenses has already occurred;
- Construction or production activities that are essential to make the asset usable or sellable have started.
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建设摩托 Interim Report 2011
Capitalizing of borrowing expenses is suspended as soon as the asset has reached the expected usable or sellable
situation. The subsequent borrowing expenses shall be accounted into current gain/loss account.
If the asset satisfying the capitalizing conditions was abnormally suspended in the process of purchasing or
construction for over three months, capitalizing of borrowing expenses shall be suspended, borrowing expenses
occurred in the suspension period shall be accounted into current gain/loss account.
(2) In the period of capitalization, the amount of interest to be capitalized in each fiscal period is decided with the
following method:
- For special borrowings, the amount is decided at the actual interest occurred in the current term less provisional
interest income or investment gains.
- For common borrowings, the amount is decided by the weighted average of accumulated asset expenditure over
special borrowings multiply the capitalization ratio of common borrowings. Capitalization ratio is decided by the
weighted average of common borrowing interests.
17. Predicted liabilities
When the liability related to contingent issues is satisfying all of the following conditions, they are recognized as
predicted liabilities
- this liability is a current liability assumed by the Company;
- executing of this liability may cause outflow of financial interests;
- the amount of the liability may be measured reliably.
At recognizing of liability amount, if there is a limited range of expenditure to settle the liability, it can be
decided at the average of upper and lower limit; and the following method shall be adopted if there isnt any
limited range of expenditure:
- When the intangible item is involving with a single subject, it is decided at the most possible amount;
- When the intangible item is involving with multiple items, it is calculated according to the possible amount and
its probability.
18. Turnover
Revenue is recognized when the financial benefit will possibly inflow to the Company, the amount is reliably
measurable, and the following conditions shall be satisfied in all:
(1) Goods sold
Sales income is recognized when: Major risks and rewards attached to the goods have been transferred to the
purchaser; The Company holds neither successive management power which is normally attached to ownership,
nor effective control, over the goods which have been sold out; Amount of income may be reliably measured;
when the costs, occurred or will occur, may be measured reliably.
(2) Providing of services
At balance sheet day, those service trades (simultaneously satisfying the requirements of those: income can be
measured reliably, related economic benefit will flow in very possibly, transaction procedure can be confirmed
reliably, happened and happening cost can be measured reliably) which can be reliably estimated are recognized
at the percentage of completion, and progress of completion of service is decided by the portion of costs occurred
over the estimated total costs. At balance sheet day, those service trades which can not be reliably estimated, if
the happened services cost will be compensated, the services income are recognized according to happened
service cost and transited to service cost according to same amount; if the happened services cost will not be
compensated, the happened services cost are accounted into current terms gain or loss and the services income
will not be recognized.
(3) Rendering of right to use
The interest income are measured by the time of others using the assets and the effective interest. The use costs
are measured by agreed charging time and method in the contract or agreement.
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建设摩托 Interim Report 2011
19. Income tax
Income tax is including current income tax and differed income tax. Except for those goodwill adjustment by
income tax occurred due to merger of enterprises, or income tax from trade accounted as owners equity which
are accounted into owners equity, all of them are accounted into income tax expenses or gains under current
gain/loss account.
The Company accounts the income tax liabilities or assets formed in current or previous terms basing on the
payable or refunding amount according to the taxation law.
Differed income taxes are drawn by balance sheet liability method according to the provisional differences
between the book value of asset and liabilities and the tax basis.
All of the provisional differences of payable taxes provide the basis of differed income tax liabilities, unless the
provisional differences are formed in the following trades:
- Initial recognition of goodwill;
- the trade is not a merger of enterprises, however it made no influence on the accounting profit nor on the
taxable income (or deductible loss);
- For provisional differences of tax payable related to investment in subsidiaries, joint-ventures or affiliate
enterprises, the timing of writing back of the provisional difference is under control, and it is not possible to be
written back in a expectable future.
Differed income tax asset generated by deductible provisional difference is recognized to the limitation of the
amount of tax payable on the provisional differences possibly used to deduct, unless the provisional difference is
generated by one of the following trade:
- the trade is not a merger of enterprises, however it made no influence on the accounting profit nor on the
taxable income (or deductible loss);
- For provisional differences of tax payable related to investment in subsidiaries, joint-ventures or affiliate
enterprises, recognition of the differed income tax asset is on: it is possible to be written back in a expectable
future, and the taxable income amount probably be obtained to neutralize the deductible provisional differences.
On the date of balance sheet, if there is solid evidence showing that sufficient tax payable could be obtained in
future to neutralize the deductible provisional differences, the differed income tax asset not recognized in
previous term shall be recognized.
On the date of balance sheet, as for the differed income tax asset and differed income tax liabilities, according to
the tax law, are measured at the tax rate applicable to the expected period of the asset to be retrieved or liabilities
to be settled, and shall reflect the income tax influence of the expected asset retrieving or liability settling on the
balance sheet date.
At the balance sheet day, verification will be performed on the book value of differed income tax assets. If it is
not possible to obtain enough taxable income to neutralize the benefit of differed income tax assets, then the
book value of the differed income tax assets shall be reduced. Whenever obtaining of taxable income became
possible, the reduced amount shall be restored.
20. Government allowance
Government subsidies are recognized at their fair value whenever they are definite to be obtained and all
supplementary conditions are satisfied. If the income-related government subsidy is only applicable to makeup
future expenses or losses, it is recognized as differed income and accounted into current gain/loss of the period
when the expense or loss is recognized. Asset-related government subsidies are recognized as differed income,
and amortized straightly to the useful life of the related assets, and accounted into current gain/loss account.
21. The Consolidated Financial Statements
(1) Principles of consolidated accounts
All of the subsidiaries of the Company are included in the consolidated accounts.
(2) Preparing of consolidated accounts
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建设摩托 Interim Report 2011
Basing on the accounts of the parent company and the subsidiaries included in the consolidation range, major
investments, trades, inventory purchasing or sales, and internal transactions are neutralized before consolidated
one after another, and the minority shareholders equity and gain/loss shall be calculated.
(2) Presenting of minor shareholders equity and gain/loss
The share of current net gain/loss attributable to the minority shareholders shall be presented under Minority
Shareholders Gain/loss of the Net Profit in the consolidated income statement.
The share of owners equity in the subsidiary attributable to the minority shareholders, is demonstrated as
Minority Shareholders Equity under the owners equity item in the consolidated balance sheet.
(4) Treatment of exceeding losses
When the current loss of minority shareholders of a subsidiary is greater than the share of the minority
shareholders in the owners equity, if the minority shareholders are obligated by the Articles of Association or
investment agreement for this, and the minority shareholders are capable to make it up, the minority
shareholders equity shall be deducted at the amount of exceeded loss. Or otherwise it will be deducted from the
owners equity of the parent company. Profits realized by the subsidiaries in subsequent periods are attributable
to the owners equity of the parent company prior to making up of the minority shareholders losses undertaken
by the owners equity of the parent company.
(5) Treatment of subsidiaries added or eliminated in the current term
In the report term, new subsidiaries added by merger of enterprises under common control, the revenue, expenses
and profits of the subsidiary from the beginning of current fiscal term to the end of report term are consolidated
to the consolidated income statement. New subsidiaries added by merger of enterprises under different control,
the revenue, expenses and profit of the subsidiary since the day of merger to the end of report term are
consolidated into the consolidated income statement.
When a subsidiary is disposed, the revenue, expenses and profits since the beginning of report term to the day of
disposal are included in the consolidated income statement.
V. Change in accounting policy and accounting estimation, retrospect of
accounting errors
No change in accounting policies and accounting estimations nor retrospect of accounting errors occurred in the
report term.
VI. Taxation
Categories and rates of taxes applicable to the Company:
Class of taxes Tax basis Tax ratio
VAT Income from sales of products, processing and repairing 17%
services
Business tax Income from leasing and taxable services 5%
Consumption tax Income from sales of consuming products 3%
City maintenance and construction VAT, business tax, consumption tax already paid 7%
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建设摩托 Interim Report 2011
tax
Education surtax VAT, business tax, consumption tax already paid 3%
Enterprise income tax Amount of income taxable 15%、25%
According to the tax laws, the consumption tax rate applicable to the company was changed from 10% to 3%
since April 1, 2006.
The company and its subsidiary (Chongqing Jianshe Vehicle-used Airconditioning LLC.) can enjoy the lower tax
rate under the tax policies of Western large-scale development, according to the regulation of Guo Shui Fa
［2002］No. 47Notice of specific implementation opinion towards the tax policies of Western large-scale
development from State Taxation Administration. Corporate income tax of the company and its subsidiary
(Chongqing Jianshe Vehicle-used Airconditioning LLC.) is paid at the rate of 15% from 2007 to 2010 after the
application of the company and the approval of taxation administration.
Corporate income tax of other subsidiaries is paid at the rate of 25%.
VII. Consolidation of entities and consolidated financial statements
1. Subsidiaries obtained through merger of firms under common control
Full name of the Reg. Add. Business scope Registered Actual Percentage Voting Consolidated?
entity invested in capital investment of of share rights
RMB0000 parent co. (%) (%)
(RMB0000)
Chongqing Chongqing International trading and 6,037.80 6,037.80 100% 100% Yes
Northern Jianshe agency of various
Import & Export merchandises and
Co., Ltd. (1) technologies (other than those
restricted by national
government)
2. Subsidiaries acquired through merger of companies under common control
Full name of the Reg. Add. Business scope Registered Actual investment of Percentag Voting Consoli
entity invested in capital parent co. e of rights (%) dated?
RMB0000 (RMB0000) share
(%)
Shanghai Jianshe Shanghai Motorcycle with two wheels, portable 1,600 816 51% 51% Yes
Motorcycle Co., motorcycle with two wheels and
Ltd. installation kits manufacturing and
(2) sale, moped manufacturing and sale,
power-driven bicycle and its parts
manufacturing and sale (license when
required)
3. Subsidiaries incorporated in other ways
Full name of the entity Reg. Add. Business scope Registered Actual Percentag Voting Consoli
invested in capital investment of e of rights dated?
RMB0000 parent co. share (%)
(RMB0000) (%)
Chongqing Jianshe Chongqing Sales of motorcycles and parts, vehicle 1,200 1,200 100% 100% Yes
Sales Co., Ltd. air-conditioner and parts,
electro-mechanical products, metal
materials, home appliances, repairing of
home appliances
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建设摩托 Interim Report 2011
Chognqing Jianshe Chongqing Production, sales, and services of 16,000 16,000 100% 100% Yes
Automobile automobile air-conditioners and parts
Air-conditioner
Compressor Co., Ltd.
Note (3)
Guangxi Jianshe Nanning Sales of motorcycle and parts 150 78 52% 52% Yes
Motorcycle Co., Ltd.
Note (4)
Chengdu Jianshe Sales Chengdu Wholesale and retail of motorcycle and 50 50 100% 100% Yes
Co., Ltd. parts with “Jianshe” trademark
Note (4)
Huhehaote Jianshe Huhehaote Wholesale and retailing of motorcycles 50 50 100% 100% Yes
Motorcycle Sales Co., and parts
Ltd.
Note (4)
Chongqing Jianshe Chongqing Sales of vehicles, motorcycles, and parts 50 50 100% 100% Yes
Motorcycle Sales Co.,
Ltd.
Note (5)
Ningbo Jianshe Chongqing Manufacturing and sales of motorcycles 1,600 816 51% 51% No
Motorcycle and parts
Manufacturing Co., Ltd.
Note (6)
Note (1) The Company is directly holding 95.14% of the shares of Chongqing Northern Jianshe Import & Export
Co., Ltd. (the Import & Export Co.), Chongqing Jianshe Sales Co., Ltd. – one of the full subsidiaries of the
Company is holding 4.86% of the shares, thus the Company is holding 100% of the shares of the Import &
Export Co.
(2) Shanghai Jianshe Motorcycle Co., Ltd. is a subsidiary of the Company acquired through merger of enterprise
under different control. For the Company is not able to amortize the balance of fair value of recognizable asset
and liabilities of Shanghai Jianshe Motorcycle Co., Ltd. less the amortized amount to the recognizable asset and
liabilities of Shanghai Jianshe Motorcycle Co., Ltd. in a reasonable way, therefore according to the “Opinion of
Specialists on Implementing of the Enterprise Accounting Standard”, the Company decided to amortize the
balance to the retained life circle straightly, the retained balance is demonstrated as “Other non-current assets” in
the consolidated balance sheet.
(3) The Company is directly holding 43.75% of the shares of Chongqing Jianshe Automobile Air-conditioner Co.,
Ltd. (the Air-conditioner Co.), while Chongqing Jianshe Sales Co., Ltd. – one of the fully –owned subsidiaries is
holding 37.50% of the shares, the Import & Export Co. is holding 18.75% of the shares, therefore the Company
is holding 100% of the shares of the Air-conditioner Co.
(4) The Company is holding 52% of shares in Guangxi Jianshe Motorcycle Co., Ltd. through Chongqing Jianshe
Sales Co., Ltd. – the fully owned subsidiary; holding 100% of the shares of Chengdu Jianshe Sales Co., Ltd.
through Chongqing Jianshe Sales Co., Ltd.; holding 100% of the shares of Huhehaote Jianshe Motorcycle Sales
Co., Ltd.
(5) The Company is directly holding 45% of the shares of Chongqing Jianshe Motorcycle Sales & Marketing Co.,
Ltd. (the Sales & Marketing Co.), Chongqing Jianshe Sales Co., Ltd. – the fully-owned subsidiary of the
Company, is holding 55% of the shares, therefore the Company is holding 100% of the shares of the Sales &
Marketing Co.
(6) For Ningbo Jianshe Motorcycle Manufacturing Co., Ltd. is still in clearing process, the Company has
provided long-term investment impairment provision on it, therefore it was not included in the consolidated
accounts.
4. Minority shareholders’ equity as of June 30, 2011
1 Name of the companies 1 June 30, 2011 1 June 30, 2011
2 Minority shareholders’ 2 Amount of minority
share shareholders’ equity (yuan)
2 Guangxi Jianshe Motorcycle Co., Ltd. 3 48% 3 22,358.21
Shanghai Jianshe Motorcycle Co., Ltd. 4 49% 1,853,837.53
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建设摩托 Interim Report 2011
1 Name of the companies 1 June 30, 2011 1 June 30, 2011
2 Minority shareholders’ 2 Amount of minority
share shareholders’ equity (yuan)
1 Total 5 1 1,876,199.74
VIII. Notes to Consolidated Financial Statements
1. Monetary capital
June 30th, 2011 December 31st, 2004
Original currency Exchangerate Translatedto RMB Original currency Exchangerate Translatedto RMB
Cash RMB 160,395.32 1 160,395.32 108,533.28
USD 40 6.48 259.2 - -
EUR - -
JPY - -
BRC - -
Subtotal 160,654.52 108,533.28
BanksavingsRMB 196,232,059.94 1 196,232,059.94 234,390,860.47
USD 564,498.56 6.54 3,689,278.81 2,197,430.12 6.6227 14,552,920.45
EUR 37,917.93 9.04 342,857.29 16,928.81 8.8065 149,083.57
JPY
Subtotal 200,264,196.04 249,092,864.49
Other monetarycapitalRMB 34,462,794.2 1 34,462,794.2 576,238,629.13
USD
EUR 34,345.03
Subtotal 34,497,139.23
Total 234,921,989.79 825,440,026.90
Note: (1) The balance of monetary capital at end of June 2011 has decreased by 71.54% over the end of 2010,
which was caused by decrease of bank accepted notes balance and deposit for issuing of the notes has decreased
thereof.
(2) As of June 30, 2011, there was RMB34,107,000.00 among above of deposit for bank accepted notes and
RMB390,139.23 was for deposit of L/C.
2. Notes receivable
Items June 30, 2011 December 31, 2010
Bank acceptance 103,656,774.26 113,287,107.16
Commercial acceptance
Total 103,656,774.26 113,287,107.16
Note: No notes receivable used for collateral in the report term.
3. Account receivable
(1) Account receivable
Account receivable categorized as following:
Items June30,2011 December31,2010
Amount Proportion % Baddebtprovision Amount Proportion % Baddebtprovision
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建设摩托 Interim Report 2011
Items June30,2011 December31,2010
Amount Proportion % Baddebtprovision Amount Proportion % Baddebtprovision
Accountreceivablewith majorsingle
189,146,256.15 67.37 9,457,312.81 113,705,824.15 58.50 5,715,821.24
amount
Accountreceivablewithout major
amountbut greater riskafter combined 8,265,053.64 2.94 7,580,263.17 7,449,829.22 3.83 7,449,829.22
into group ofsimilarrisks
Other minoraccountreceivable 83,359,162.12 29.69 5,073,002.81 73,222,153.78 37.67 5,406,873.93
Total 280,770,471.91 100.00 22,110,578.79 194,377,807.15 100.00 18,572,524.39
Note: The Company recognizes account receivable with RMB5 million or over of single amount as major
amount basing on the business scale and characteristics. For account receivable with major amount, if no
impairment proved by impairment test, the Company provides bad debt provisions basing on their ages.
Account receivable without major amount, but with greater risk after combined with accounts with similar risks,
is recognized when there is obvious sign of hard to retrieve and aged over three years.
Age of account receivable
Age June 30, 2011 December 31, 2010
Amount Proportion % Bad debt provision Amount Proportion % Bad debt provision
within 1 year 269,099,898.01 95.84 13,454,994.9 173,116,666.72 89.06 8,671,627.82
1-2 years 136,304.55 0.05 13,630.45 8,749,636.52 4.50 874,963.66
2-3 years 1,617,077.4 0.58 323,415.48 3,021,235.82 1.55 604,247.17
Over 3 years 9,917,191.95 3.53 8,318,537.96 9,490,268.09 4.88 8,421,685.74
Total 280,770,471.91 100.00 22,110,578.79 194,377,807.15 100.00 18,572,524.39
Note: (1) The receivable accounts due from top 10 debtors were amounted to RMB197,225,799.98, accounted
for 70.24% of the total receivable accounts, details are:
The debtors Amount Property of the debt Age
Chongqing Changan Automobile Co., Ltd. 41,887,346.91 Trade Within 1 year
China Northern Vehicle Co., Ltd. 39,261,306.38 Trade Within 1 year
Greatwall Automobile Co., Ltd. 24,863,981.20 Trade Within 1 year
Chongqing Jianshe YAMAHA Motorcycle Co., Ltd. 22,678,054.18 Trade Within 1 year
Jiangxi Changhe SUZUKI Automobile Co., Ltd. 13,966,017.74 Trade Within 1 year
Baoding Greatwall Northern China Automobile Co., Ltd. 13,137,423.43 Trade Within 1 year
Nigeria CHONGQING SALES LIMITED 7,140,670.47 Trade Within 1 year
Tianjing Greatwall Wantong Auto Parts Co., Ltd. 6,092,246.18 Trade Within 1 year
IRAN DOCHARKH 5,764,591.59 Trade Within 1 year
YAMAHA MOTOR CO.,LTD 5,538,525.05 Trade Within 1 year
Jiangxi Changhe SUZUKI Auto Co., Ltd. Jiujiang Branch 5,140,731.89 Trade Within 1 year
Yuxin Automobile Air-Conditioner Co., Ltd. 4,464,126.25 Trade Within 1 year
Nanjing Changan Auto Co., Ltd. 3,852,678.71 Trade Within 1 year
Chongqing Lvjia Auto Airconditioner Parts Co., Ltd. 3,438,100.00 Trade Within 1 year
Sub-total 197,225,799.98
(2) No debts in this account due from shareholders holding 5% or over of the Companys shares.
(3) Receivable accounts due from related parties are accounted for 34.69% of the total.
(2) Other receivable accounts
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建设摩托 Interim Report 2011
Other receivable accounts are categorized as:
June 30, 2011 December 30, 2010
Items Amount Proportion % Bad debt Amount Proportion % Bad debt
provision provision
Account receivable with major 20,616,162.60 3,405,264.36 8,667,116.73 3,296,336.64
single amount 36.99 22.76
Account receivable without
major amount but greater risk 1,204,370.74 2.16 1,204,370.74 1,204,370.74 3.16 1,204,370.74
after combined into group of
similar risks
33,906,856.51 60.84 1,263,644.59 28,202,604.64 74.07 1,487,470.60
Other minor account receivable
Total 55,727,389.85 100.00 5,873,279.69 38,074,092.11 100.00 5,988,177.98
Note: The Company recognizes other account receivable with RMB3 million or over of single amount as major
amount basing on the business scale and characteristics. Including: RMB3,013,664.00 credit due from Shenzhen
Jianshe Motorcycle Co., Ltd., which was formed when the company was founded. For the company has not put
into normal operation, the Company has provided bad debt provision in full after performing of individual
impairment test.
Other account receivable without major amount, but with greater risk after combined with accounts with similar
risks, is recognized when there is obvious sign of hard to retrieve and aged over three years.
Age of other account receivable
Age June 30, 2011 December 30, 2010
Amount Proportion % Bad debt provision Amount Proportion % Bad debt provision
within 1 year 50,658,730.83 90.90 1,055,341.69 31,078,325.55 81.63 638,811.14
1-2 years 30,435.97 0.05 3,043.60 1,320,118.89 3.47 132,011.89
2-3 years 279,160.81 0.50 55,832.16 916,585.43 2.41 458,292.72
Over 3 years 4,759,062.24 8.54 4,759,062.24 4,759,062.24 12.50 4,759,062.24
Total 55,727,389.85 100.00 5,873,279.69 38,074,092.11 100.00 5,988,177.98
Note (1) No account in the balance of above account was due from shareholders with 5% or over of the
Companys shares.
(2) Receivable accounts due from related parties are accounted for 26.48% of the total.
4. Prepayment
Items June 30, 2011 December 31, 2010
Amount Ratio (%) Amount Ratio (%)
within 1 year 65,275,569.01 75.70 85,715,147.23 82.70
1-2 years 18,314,676.72 21.24 14,968,867.02 14.44
2-3 years 353,320 0.41 939,283.57 0.90
Over 3 years 2,284,136.18 2..65 2,026,502.09 1.96
Total 86,227,701.91 100 103,649,799.91 100.00
Note (1) No account in the balance of above account was due from shareholders with 5% or over of the
Companys shares.
(2) Prepaid account aged over one year was because the Company has not settled with the supplier yet.
5. Inventory and inventory impairment provision
(1) Inventory
33
建设摩托 Interim Report 2011
Items 2010-12-31 2011-6-30
Raw materials 28,503,085.28 31,154,712.70
Product in process 13,011,398.77 8,899,810.34
Finished products 258,980,792.23 238,362,698.2
Others
Total 300,495,276.28 278,417,221.24
(2) Inventory impairment provision
Decreased this
Items 2010-12-31 Provided this term 2011-6-30
term
Raw materials
Product in process
Finished products
Total
Note: Inventory impairment provision was recognized according to the part of cost over the realizable net value.
The realizable net value means the amount of estimated value of inventory less estimated cost to finish it, sales
expenses and taxes.
6. Joint-ventures and affiliates
Items Reg. Add. Business property Share Portion of June 30, 2011 Jan-Jun 2011 Jan-Jun 2011
proportion % voting Net asset Turnover Net profit
rights
Joint ventures
Chongqing Pingshan
Manufacturing and
Taikai Carburetor Co.,Chongqing sales of carburetor 49% 49% 155,799,482.37 60,734,180.85 5,322,858.5
Ltd.
Chongqing Jianshe Manufacturing and
YAMAHA Motorcycle Chongqing sales of motorcycles 50% 50% 590,718,311.251,054,885,211.15 14,016,243.46
Co., Ltd. and parts
Zhuzhou Jianshe Manufacturing and
YAMAHA Motorcycle Zhuzhou sales of motorcycles 50% 50% 539,083,648.77 521,257,203.88 28,962,498.98
Co., Ltd. and parts
Affiliates
Chongqing Tongsheng
Production and sales of
Jianshe Industry Co.,Chongqing 30% 30% 4,518,154.35 59,323,835.46 1,186,406.14
motorcycle parts
Ltd. (Note)
Chongqing Fuda
Cargo transportation
Property Management Chongqing 20% 20% -193,514.62 10,420,166.8 105,411.41
and warehousing
Co., Ltd.
34
建设摩托 Interim Report 2011
7. Available-for-sale financial asset
Stock Code Stock ID Initial investment Share Book value at Gain/loss of Change of owners’ equity
portion end of term the report in the report term
term
Total
8. Long-term equity investment
Items June 30, 2011 December 31, 2010
Book balance Impairment Book value Book balance Impairment Book value
provision provision
Investment in
619,222,776.03
joint-venture 632,118,943.09 632,118,943.09 619,222,776.03
Investment in
associated 2,869,688.11 2,869,688.11 2,513,766.27 2,513,766.27
business
Other equity 4340915.04
14,340,915.04 4,340,915.04
investment 24,340,915.04 20,000,000.00 10,000,000.00
Total 4,340,915.04
659,329,546.24 654,988,631.20 636,077,457.34 4,340,915.04 631,736,542.30
Details:
Items Share Initial amount December 31, Increased this Decreased this June 30, 2011
proportion % 2010 term term
On cost basis
Chongqing Jingjian
Automobile
Air-conditioner Co.,
Ltd. 6.74% 3,200,000.00 3,200,000.00 3,200,000.00
Ningbo Jianshe
Motorcycle Co., Ltd. 51.00% 8,160,000.00 1,140,915.04 1,140,915.04
On equity basis
Chongqing Southern
Motorcycle
Technologies
Development Co.,
Ltd. 16.67% 20,000,000.00 10,000,000.00 10,000,000.00 - 20,000,000.00
Chongqing Jianshe
Warehouse and
Transportation Co.,
Ltd. (Fuyeda Property
Management Co.,
Ltd.) 20.00% 400,000.00 -
Chongqing
Tongsheng Jianshe
Industry Co., Ltd. 30.00% 3,000,000.00 2,513,766.27 355,921.84 - 2,869,688.11
Chongqing Pingshan
Taikai Carburetor
Co., Ltd. 49.00% 67,316,539.87 74,931,165.04 2,706,200.67 299,404.83 77,337,960.88
Chongqing Jianshe
YAMAHA
Motorcycle Co., Ltd. 50.00% 154,699,622.03 281,915,840.30 7,008,121.73 - 288,923,962.03
Zhuzhou Jianshe
YAMAHA
Motorcycle Co., Ltd. 50.00% 215,710,320.08 262,375,770.69 14,481,249.49 11,000,000.00 265,857,020.18
Total 472,486,481.98 636,077,457.34 34,551,493.73 11,299,404.83 659,329,546.24
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建设摩托 Interim Report 2011
Impairment of long-term equity investment
December 31, Provided this Written back Other June 30,
Items
2010 year this year decreases 2011
Chongqing Jingjian Automobile
3,200,000.00 3,200,000.00
Air-conditioner Co., Ltd.
Ningbo Jianshe Motorcycle Manufacturing
1,140,915.04 1,140,915.04
Co., Ltd.
Total 4,340,915.04 4,340,915.04
9. Fixed assets
Items December 31, Increased this Decreased this
June 30, 2011
2010 term term
I. Total of original value 1,468,224,650.66 82,178,148.58 72,193,360.05 1,478,209,439.19
Houses & buildings 421,201,810.19 67,436,488.27 488,638,298.46
Equipment & machinery 989,873,996.98 13,827,467.99 72,062,842.78 931,638,622.19
Transportation and office appliances 57,148,843.49 914,192.32 130,517.27 57,932,518.54
Others
II. Total of accumulative depreciation 612,627,188.78 27,213,592.03 107,034.54 639,733,746.27
Houses & buildings 26,003,669.37 8,985,607.14 34,989,276.51
Equipment & machinery 562,335,263.00 17,126,773.16 50,736.78 579,411,299.38
Transportation and office appliances 24,288,256.41 1,101,211.73 56,297.76 25,333,170.38
Others
III. Total of accumulative fixed asset
impairment provision
Houses & buildings
Equipment & machinery
Transportation and office appliances
Others
IV. Total of fixed asset book value 855,597,461.88 54,964,556.55 72,086,325.51 838,475,692.92
Houses & buildings 395,198,140.82 58,450,881.13 453,649,021.95
Equipment & machinery 427,538,733.98 -3,299,305.17 72,012,106.00 352,227,322.81
Transportation and office appliances 32,860,587.08 -187,019.41 74,219.51 32,599,348.16
Others
Note: (1) Shanghai Jianshe Motorcycle Co., Ltd. – one of the subsidiaries of the Company, uses the property with
book value of RMB7,819,328.23 (RMB20,000,000.00 as negotiated by the parties) as collateral for the
short-term loan of RMB4,000,000.00 from China Industrial & Commercial Bank Fengxian Branch.
(2) As of June 30, 2011, the original value of fixed assets which have been fully depreciated but still in service
were amounted to RMB308,645,049.67, and the accumulative depreciation was RMB299,445,529.53
10. Construction-in-progress
Project December 31, Increased Transferred to Other June 30, 2011 Fund
2010 this term fixed assets decreases recourse
(decrease)
Motorcycle
1,040,282.31 1,040,282.31 Independent
testing track
Maintaining of
367,725.15 367,725.15 Independent
parting lot
JOS phase II,
446,540.81 446,540.81 Independent
sales project
Total 104,0282.31 814,265.96 1,040,282.31 814,265.96
Note: No capitalized amount of borrowing expenses among the above construction-in-process balance.
11. Intangible assets
Items December 31, 2010 Increased this term Decreased this term June 30, 2011
I. Total of original value 107,631,735.42 839,397.23 106,792,338.19
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建设摩托 Interim Report 2011
Items December 31, 2010 Increased this term Decreased this term June 30, 2011
839,397.23 93,735,239.41
Land using right 94,574,636.64
13,057,098.78
Non-patent technologies 13,057,098.78
2,792,186.20 20,238,007.29
II. Total of accumulative amortizing 17,445,821.09
944,625.30 12,830,792.79
land using rights 11,886,167.49
1,847,560.90 7,407,214.50
Non-patent technologies 5,559,653.60
III. Total of impairment provisions
Land using right
Non-patent technologies
-2,792,186.20 839,397.23 86,554,330.90
IV. Total of book value 90,185,914.33
-944,625.30 839,397.23 80,904,446.62
Land using right 82,688,469.15
-1,847,560.90 5,649,884.28
Non-patent technologies 7,497,445.18
12. Development expenses
Balance at the beginning Increased this Decreased this Balance at the end of
Items of year term term year
JS400K 93,261.40 93,261.40
JS250ATV-8 3,368,548.54 3,368,548.54
JS150-B 4,325,342.61 4,325,342.61
JS150-B-1 247,272.55 247,272.55
JS150-3 4,391,913.55 51,151.42 4,443,064.97
JS150-3-1 1,089,168.04 1,089,168.04
JS110-K 4,774,053.97 342,880.58 5,116,934.55
JS110-K-1 457,282.00 457,282.00
JS125-6C 2,804,478.15 23,956.79 2,828,434.94
JS125-6C-1 422,136.75 422,136.75
JS400ATV-3 1,782,264.45 1,782,264.45
700 engine 2,709,587.23 119,464.11 2,829,051.34
Sub-project of F33 engine 1,000,453.57 233,721.28 1,234,174.85
F33 engine 2,272,753.91 61,337.88 2,334,091.79
JS400ATV-5 2,241,989.32 477,744.44 2,719,733.76
JS400ATV-5-1 160,112.98 160,112.98
JS400-7 1,973,762.83 73,843.21 2,047,606.04
JS700ATV 2,408,684.88 2,408,684.88
JS110-B(F3) 1,674,569.72 65,189.73 1,739,759.45
Euro III qualification 4,749,023.45 783,482.50 5,532,505.95
Models of “Chongqing” trademark 196.08 196.08
JS125-6H 415,719.21 122,149.23 537,868.44
JS125-7C 402,356.21 109,410.09 511,766.30
CQ110-9B 257,945.86 280,955.41 538,901.27
JS250ZH Tricycle 1,093,941.35 13,318.51 1,107,259.86
E-SOLEX Electric Bicycle 40,617.40 40,617.40
F52 14,302.15 14,302.15
F50 149,159.05 189,790.46 338,949.51
JS125-7E 152,819.60 105,374.90 258,194.50
JS125-13C 48,170.93 70,168.57 118,339.50
JS125-28G 149,352.99 57,977.25 207,330.24
CQ125-28H 143,870.64 143,870.64
JS150-7A 58,184.57 97,329.39 155,513.96
JS150-13C 52,469.85 222,508.48 274,978.33
JS150-28A 42,914.39 130,020.33 172,934.72
Light electric bicycle (Dove series) 404,037.55 85,979.42 490,016.97
Light electric bicycle (Wizard series) 392,358.97 392,358.97
E-SOLEX Electric Bicycle (Simplified) 110,554.30 110,554.30
F39 engine 44,023.73 44,023.73
JS150-28 60,220.49 60,220.49
Total 46,372,717.73 4,324,911.47 - 50,697,629.20
37
建设摩托 Interim Report 2011
Note: The Company has spent RMB20,528,430.77 in internal R&D projects, including RMB16,203,519.30
accounted into researching expenses, RMB4,324,911.47 into developing expenses.
13. Long-term expenses to be amortized
Category December 31, Increased this Decreased this Amortized this June 30, 2011
2010 term term term
Module expenses 2,550,355.83 2,418,402.19 2,941,614.28 2,027,143.74
83 machine technical
10,262,546.88 691,704.96 9,570,841.92
initial fee
Total 12,812,902.71 2,418,402.19 3,633,319.24 11,597,985.66
14. Deferred income tax asset and deferred income tax liabilities
(1) Differed income tax assets
June 30, 2011 December 31, 2010
Deductible provisional
Deductible provisional Deferred income difference of differed Deferred income
Items difference of differed tax income asset tax
income asset recognized Assets recognized Assets
Bad debt provision on
30,202,203.52 5,687,124.05 26,101,344.60 4,926,976.52
receivable accounts
Inventory impairment
provision
Long-term equity
investment impairment
provision
Fixed asset impairment
provision
Deductible losses 3,814,317.31 3,814,317.31
Total 30,202,203.52 9,501,441.36 26,101,344.60 8,741,293.83
(2) Differed income tax liabilities
June 30, 2011 December 31, 2010
Periodic difference of Provisional difference of Periodic difference of Provisional difference of
Items taxable differed income tax taxable differed income tax taxable differed income tax taxable differed income tax
liabilities recognized liabilities recognized liabilities recognized liabilities recognized
15. Detail of asset impairment provision
Provided
Items December 31, 2010 Written back Transferred June 30, 2011
current term
Bad debt provision on
18,572,524.39 3,538,054.40 22,110,578.79
receivables
Bad debt provision on
5,988,177.98 5,873,279.69
other receivable accounts 114,898.29
Long-term equity
investment impairment 4,340,915.04 4,340,915.04
provision
Fixed asset impairment
provision
Total 28,901,617.41 3,538,054.40 114,898.29 32,324,773.52
38
建设摩托 Interim Report 2011
16. Other non-current assets
December 31, Increased this Decreased this June 30,
Items
2010 term term 2011
Balance of difference of debit of Shanghai Jianshe 1,428,000.00
1,632,000.00 204,000.00
Motorcycle Co., Ltd. under original accounting policies
Note: Causation of other non-current assets (for details please go to Note VII. Enterprise merger and
consolidated accounts)
17. Short-term loans
Categories June 30, 2011 December 31, 2010
457,500,000.00 250,000,000.00
Credit loan
74,000,000.00 109,450,000.00
Pledged loan
218,720,000.00 33,000,000.00
Guarantee loan
23,161,440.00
Loan by pledge
750,220,000.00 415,611,440.00
Total
Note: (1) Guaranteed loans in the report term:
Loans from The creditor Total Amount Guarantor
Communication Bank Ltd.
48,500,000.00
Chongqing Jiulongpo Branch Chongqing Jianshe Sales Co., Ltd.
China Minsheng Bank Ltd. Chognqing Jianshe Automobile
17,220,000.00
Chongqing Branch Air-conditioner Compressor Co., Ltd.
CITIC Bank Ltd. Chongqing Chognqing Jianshe Automobile
30,000,000.00
Chongqing Jianshe Motorcycle Co., Ltd. Branch Air-conditioner Compressor Co., Ltd.
CITIC Bank Ltd. Chongqing Chognqing Jianshe Automobile
10,000,000.00
Branch Air-conditioner Compressor Co., Ltd.
Bank of China Ltd. Chongqing
20,000,000.00
Jiulongpo Branch South-western Military Industry Co.
Sub-total 125,720,000.00
CITIC Bank Ltd. Chongqing
30,000,000.00
Branch Chongqing Jianshe Sales Co., Ltd.
Chognqing Jianshe Automobile CITIC Bank Ltd. Chongqing
10,000,000.00
Air-conditioner Compressor Co., Ltd. Branch Chongqing Jianshe Sales Co., Ltd.
Bank of Chongqing Jiulong Plaza
50,000,000.00
Branch Chongqing Jianshe Motorcycle Co., Ltd.
Shanghai Fengxian Pufa Town Shanghai Yangwang Investment
3,000,000.00
Shanghai Jianshe Motorcycle Co., Ltd. Bank Development Co., Ltd.
Sub-total 93,000,000.00
Total 218,720,000.00
(2) Loans with collateral
Loans from The creditor Total Amount collateral
Chognqing Jianshe Automobile
Chongqing Jianshe
China Import & Export Bank Chongqing 70,000,000.00 Air-conditioner Compressor Co., Ltd.
Motorcycle Co., Ltd.
Branch Land and workshop
Sub-total 70,000,000.00
Shanghai Jianshe China Industrial & Commercial Bank
4,000,000.00 Property colleteral
Motorcycle Co., Ltd. Shanghai Branch Fengxian Sub-branch
Sub-total 4,000,000.00
Total 74,000,000.00
39
建设摩托 Interim Report 2011
(3) Credit loans of the report term:
Loans from The creditor Total Amount Collateral
China Industrial & Commercial Bank, Chonqing Yangjiaping Branch 16,000,000.00 Credit
China Industrial & Commercial Bank, Chonqing Yangjiaping Branch 20,000,000.00 Credit
China Industrial & Commercial Bank, Chonqing Yangjiaping Branch 20,000,000.00 Credit
Huaxia Bank, Jiulongpo Branch 16,000,000.00 Credit
Huaxia Bank, Jiulongpo Branch 14,000,000.00 Credit
Huaxia Bank, Jiulongpo Branch 20,000,000.00 Credit
China Agriculture Bank Banan Branch 40,000,000.00 Credit
China Agriculture Bank Banan Branch 20,000,000.00 Credit
Chongqing Jianshe China Agriculture Bank Banan Branch 40,000,000.00 Credit
Motorcycle Co., Ltd. China Agriculture Bank Banan Branch 25,000,000.00 Credit
China Agriculture Bank Banan Branch 25,000,000.00 Credit
China Agriculture Bank Banan Branch 50,000,000.00 Credit
China Merchants Bank Jiulongpo Branch 20,000,000.00 Credit
China Merchants Bank Jiulongpo Branch 30,000,000.00 Credit
Bank of Chongqing Jiulong Plaza Branch 50,000,000.00 Credit
Chian Everbright Bank Chongqing Branch 50,000,000.00 Credit
China Industrial & Commercial Bank, Chonqing Yangjiaping Branch 16,000,000.00 Credit
Sub-total 456,000,000.00
Shanghai Jianshe
1,500,000.00 Credit
Motorcycle Co., Ltd. Shanghai Yangwang Investment Development Co., Ltd.
Sub-total 1,500,000.00
Total 656,300,000.00
The Company demonstrates the bank loans received from transferring of receivable accounts not satisfying
termination recognition conditions as short-term loans.
18. Notes payable
Items June 30, 2011 December 31, 2010
184,290,000.00 1,192,183,328.82
Bank acceptance
Commercial
acceptance
184,290,000.00 1,192,183,328.82
Total
Note: (1) Among above notes payable:a. RMB30,000,000.00 was the bank accepted notes secured by the parent
company in term of credit;b. Chongqing Jianshe Sales Co., Ltd. issued the bank acceptance draft of
RMB146,190,000.00 against its bank savings of RMB34,030,000.00; c. Chongqing Jianshe Automobile
Air-conditioner Co., Ltd. issued RMB8,100,000.00 of bank acceptance draft in term of notes in collateral.
(2) No account payable to related parties in the notes payable.
(3) No account due to shareholders with 5% or over of shares in the notes payable account.
40
建设摩托 Interim Report 2011
19. Account payable
Items June 30, 2011 December 31, 2010
Account payable Amount Ratio (%) Amount Ratio (%)
within 1 year 476,396,281.77 98.48
442,334,276.71 97.17
1-2 years 5,197,638.34 1.14 3,953,356.23 0.82
2-3 years 4,785,146.89 1.05 2,580,142.58 0.53
Over 3 years 2,912,898.60 0.64 820,746.03 0.17
Total 455,229,960.54 100.00 483,750,526.61 100.00
Prepayment received
within 1 year 49,743,046.38 99.68 81,429,495.36 99.81
1-2 years 33,548.38 0.07 35,761.38 0.04
2-3 years 3,963.00 0.01 1,750.00 0.00
Over 3 years 120,925.88 0.24 120,925.88 0.15
Total 49,901,483.64 100.00 81,587,932.62 100.00
Other account payable
within 1 year 25,943,004.55 85.91 35,698,679.54 92.13
1-2 years 2,246,556.7 7.44 1,046,556.70 2.70
2-3 years 666,553.96 2.21 735,947.45 1.90
Over 3 years 1,342,835.3 4.45 1,265,786.35 3.27
Total 30,198,950.51 100.00 38,746,970.04 100.00
Note: (1) No account payable to shareholders with 5% or over of shares of the Company;
20. Wage payable
Items December 31, 2010 Increased this term Decreased this term June 30, 2011
Wages 2,030,158.18 59,310,418.98 60,437,105.01 903,472.15
Welfare fee 0.00 5,273,851.49 5,273,851.49 0.00
Trade union and education allowance 258,156.71 1,403,606.57 1,583,487.90 78,275.38
Social insurance 282,800.53 14,730,898.48 14,981,496.71 32,202.30
Housing fund 20,655.24 3,153,590.00 2,889,260.00 284,985.24
Executive awarding fund 0.00 0.00 0.00 0.00
Dismissing policy 0.00 0.00 0.00 0.00
Others 0.00 5,350.00 5,350.00 0.00
Total 2,591,770.66 83,877,715.52 85,170,551.11 1,298,935.07
21. Tax payable
Items June 30, 2011 December 31, 2010
VAT -5,805,249.08 1,215,595.31
Business tax 1,333,913.37 1,354,646.36
Consumption tax 137,688,448.43 139,565,535.78
City construction tax 167,497.02 295,949.57
Education surtax 67497.74 117,985.57
Enterprise income tax -12,292,552.33 -12,298,112.19
Other taxes -1,065,355.55 41,190.95
Total 120,094,199.60 130,292,791.35
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建设摩托 Interim Report 2011
22. Special payable
Items December 31, 2010 Increased this term Account June 30, 2011
transferred
this term
400kg mobile carrier research 1,531,250.00 343,750.00 1,875,000.00
Others 738,000.00 7,380,00.00
Total 2,269,250.00 343,750.00 2,613,000.00
23. Capital Share
Items December 31, 2010 Changed this year (+/-) June 30, 2011
Amount of Proportion Issuing Bonus Transferred Others Sub-total Amount of Proportion
shares of new shares from shares
shares reserves
I. None
negotiable
shares
Domestic
legal
357,500,000.00 74.87% 357,500,000.00 74.87%
person
shares
II.
Negotiable
shares
Foreign
shares 120,000,000.00 25.13% 120,000,000.00 25.13%
listed at
home
III. Total
of capital 477,500,000.00 100% 477,500,000.00 100%
shares
24. Capital reserves
Items December 31, 2010 Increased this term Decreased this term June 30, 2011
344,407,741.07 344,407,741.07
Share capital premium
258,772,776.52 258,772,776.52
Other capital reserves
603,180,517.59 603,180,517.59
Total
25. Surplus reserves
December 31, 2010 Increased this Decreased this June 30, 2011
Items Cause of change
term term
Statutory surplus reserves 125,686,000.00 125,686,000.00
Total 125,686,000.00 125,686,000.00
42
建设摩托 Interim Report 2011
26. Retained profit
Items June 30, 2011 December 31, 2010
Profit not distributed at the beginning of term -731,457,938.07 -743,414,452.61
Increased this term 1,364,363.06 11,956,514.54
- net profit of the year attributable to shareholders of the parent company 1,364,363.06 11,956,514.54
Decreased this term
- providing of statutory surplus reserves
- distribution of common share dividend
Retained profit at the end of term -730,093,575.01 -731,457,938.07
- cash dividend
27. Operation income and operation cost
(1) Operation incomes and costs
Items Jan-Jun 2011 Jan-Jun 2010
Turnover
- Main business income 1,356,709,772.34 1276,393,515.85
- Other business income 14,732,790.16 8,927,462.64
Total 1,371,442,562.50 1,285,320,978.49
Operation cost
- Main business cost 1,179,902,468.73 1,093,222,884.70
- Other business cost 7,877,282.25 1,219,711.80
Total 1,187,779,750.98 1,094,442,596.50
(2) Business segment of turnover:
Items Major business turnover
Jan-Jun 2011 Jan-Jun 2010
Motorcycle and parts 947,257,757.99 968,602,540.63
Vehicle air conditioner 409,452,014.35 307790,,975.22
Total 1,356,709,772.34 1,276,393,515.85
(3) Business segment of cost:
Items Major business cost
Jan-Jun 2011 Jan-Jun 2010
Motorcycle and parts 851,757,950.82 842,590,519.53
Vehicle air conditioner 328,144,517.91 250,632,365.17
Total 1,179,902,468.73 1,093,222,884.70
Note: Sales to top 5 clients in the report term:
Items Jan-Jun 2011 Jan-Jun 2010
Top 5 clients Top 5 clients
Sales volume Sales volume
Percentage in the category % Percentage in the category %
RMB0000 RMB0000
Sales to top 5 clients 45,687.11 33.67 37,105.45 29.07
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建设摩托 Interim Report 2011
Geographic segment of sales in Jan-Jun 2010:
Regions Major business turnover Major business cost Main business gross profit
North 196,566,591.63 157,783,743.12 19.73
East 94,301,949.69 84,236,035.54 10.67
Mid-south 53,781,557.43 49,664,848.15 7.65
South-west 705,058,225.77 611,777,939.06 13.23
North-east 50,808,996.82 47,162,652.46 7.18
North-west 50,341,462.78 47,088,048.72 6.46
South 45,719,211.85 42,392,161.43 7.28
Sub-total of domestic sales 1,196,577,995.97 1,040,105,428.49 13.08
Overseas sales 160,131,776.37 139,797,040.24 12.70
Total 1,356,709,772.34 1,179,902,468.73 13.03
(2) Business segment of other business incomes and costs
Items Jan-Jun 2011 Jan-Jun 2010
Other business income
Rent of fixed assets 3,986,425.41 3,840,212.88
Sales of materials 4,623,588.92 1,492,221.53
Trademark-using fee, technical consulting fee, administration fee 4,355,132.75 420,000.00
Others 1,767,643.08 3,175,028.23
Sub-total 14,732,790.16 8,927,462.64
Other business cost
Rent of fixed assets 86,860.40 272,366.95
Sales of materials 4,762,568.49 889,803.08
Trademark-using fee, technical consulting fee, administration fee - -
Others 3,027,853.36 57,541.77
Sub-total 7,877,282.25 1,219,711.80
Other business profit 6,855,507.91 7,707,750.84
28. Business tax and surcharge
Items Jan-Jun 2011 Jan-Jun 2010
Business tax 223,445.82
City maintenance and
2,271,168.17 765,362.64
construction tax
Education surtax 1,142,798.43 327,950.14
Consumption tax 14,668,068.89 16,923,199.01
18,305,481.31 18,016,511.79
Total
44
建设摩托 Interim Report 2011
29. Financial expenses
Items Jan-Jun 2011 Jan-Jun 2010
39,560,106.5 42,716,285.09
Interest expense
3,456,017.15 12,361,475.48
Less: Incoming interests
-409,159.38 26,464.33
Exchange gains/losses
-146,153.64 1,062,250.65
Others
35,548,776.33 31,443,524.59
Total
Note: Financial expenses increased by 13.16%, mainly because expanding of financing scale and increase of interest rates.
30. Asset impairment loss
Items Jan-Jun 2011 Jan-Jun 2010
Bad debt losses 3,423,156.11 5,327,390.89
Inventory impairment losses -1,911,650.27
Long-term investment impairment loss
Total 3,423,156.11 3,415,740.62
31. Investment income
Items Jan-Jun 2011 Jan-Jun 2010
Gains from investment in funds
Credit investment income
Profit distribution announced by the investee on cost basis
Net increase/decrease of owners equity of the investee adjusted at end of year 24,551,493.73 40,176,523.01
Amortizing of equity investment balance -503,404.83 -503,404.83
Gains from disposal of equity investment
Other investment income
Total 24,048,088.90 39,673,118.18
Note: Shanghai Jianshe Motorcycle Co., Ltd. is a subsidiary of the Company acquired through merger of
enterprise under different control. For the Company is not able to amortize the balance of RMB3,264,000.00 of
fair value of recognizable asset and liabilities of Shanghai Jianshe Motorcycle Co., Ltd. less the amortized
amount to the recognizable asset and liabilities of Shanghai Jianshe Motorcycle Co., Ltd. in a reasonable way,
therefore according to the “Opinion of Specialists on Implementing of the Enterprise Accounting Standard”,
the Company decided to amortize the balance to the retained life circle straightly, the retained balance is
demonstrated as “Other non-current assets” in the consolidated balance sheet. Amount amortized in this term was
RMB204,000.00.
Chongqing Pingshan Taikai Carburetor Co., Ltd. is a joint venture the Company invested in. Its original
investment credit balance at the primary date was RMB3,592,857.98, according to the Enterprise Accounting
Standard, it was transferred to long-term equity investment as the cost of long-term equity investment at the
primary date. Meanwhile, according to the requirement of Enterprise Accounting Standard – Interpret No.1, the
credit difference of the long-term equity investment in joint-ventures shall be amortized in the original retained
period, namely the amortized amount in the report term was RMB299,404.83.
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建设摩托 Interim Report 2011
32. Non-business income
Items Jan-Jun 2011 Jan-Jun 2010
Net income from disposing of fixed assets 6,410.26 3,325.77
Inventory overage of fixed assets
Gains from exchange of non-monetary assets
Net income of penalty 550.00
Government subsidy 1,315,524.60 1,876,491.71
Others 305,349.33 338,158.08
Total 1,627,284.19 2,218,525.56
Note: Government subsidy is mainly the social security fund of RMB0.74 million from Chongqing Bureau of
Finance.
33. Non-business expenditures
Items Jan-Jun 2011 Jan-Jun 2010
Net loss from fixed asset disposal 34,263.43 164,553.18
Outgoing donations 150,000
Penalty paid 307,933.54 9,359.24
Compensations paid
Others 8,323.31 117,656.14
Total 500,520.28 291,568.56
34. Income tax expenses
Items June 30, 2011 June 30, 2010
Income tax payable for the report term
Plus: Differed income tax liabilities at end of term
Less: Differed income tax liabilities at beginning of term
Less: Differed income tax asset at end of term 9,501,441.36 10,943,445.28
Plus: Differed income tax asset at beginning of term 8,741,293.83 11,190,840.70
Income tax expenses of the report term -760,147.53 247,395.42
35. Other cash received or paid related to operation, investment or financing
Cash flow with large amount:
Items Jan-Jun 2011 Jan-Jun 2010
Other cash paid related to operation
Operation fees such as freight, warehousing fees 13,632,127.00 13,223,495.01
Administrative expenses such as office expenses and traveling expenses 3,546,702.64 2,909,138.18
Others 34,404,067.23 27,213,111.08
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建设摩托 Interim Report 2011
Items Jan-Jun 2011 Jan-Jun 2010
Other cash inflow related to operation
Interest income 3,118,749.35 7,052,831.23
Others 4,531,447.26 30,900,266.69
Other cash received related to investment
097 project 15,000,000.00
Others 1,258,801.19 5,169,248.43
Other cash paid related to financing
Payment of due financing notes 1,316,018,251.24 2,170,846,628.55
Decrease of note deposit
Other cash received related to financing
Financial note discount received 1,337,599,654.74 2,412,906,595.27
Increase of note deposit -542,066,527.50 -137,428,143.23
Connections between net profit and cash flow of business operation:
Items Jan-Jun 2011 Jan-Jun 2010
Net profit 800,626.19 12,959,901.67
Plus: Asset impairment provision 3,423,156.11 3,415,740.62
Fixed asset depreciation, gas and petrol depreciation, production goods depreciation 27,106,557.49 25,453,765.92
Amortizing of intangible assets 2,792,186.2 2,080,704.66
Amortizing of long-term expenses 3,633,319.24 1,416,350.20
Loss from disposal of fixed assets, intangible assets and other long-term assets
(“-“ for gains) 27,853.17 161,227.41
Loss from fixed assets discarding (“-“ for gains)
Loss from fluctuate of fair value (“-“ for gains)
Financial expense (“-“ for gains) 35,556,761.37 31,443,524.59
Investment loss (“-“ for gains) -24,048,088.9 -39,673,118.18
Decrease of deferred income tax asset (“-“ for increase) -760,147.53 247,395.42
Increase of deferred income tax liabilities (- for decrease) -78,400.00
Decrease of inventory (- for increase) 22,078,055.04 -34,430,714.03
Decrease of operational receivables (- for increase) -22,232,125.11 -47,456,712.73
Increase of operational payables (- for decrease) -80,246,461.92 -79,172,100.81
Others
Cash flow generated by business operation, net -31,868,308.65 -123,632,435.26
Net change of cash and cash equivalents
Items Jan-Jun 2011 Jan-Jun 2010
Balance of cash at period end 200,424,850.56 442,415,556.50
Less: Initial balance of cash 248,884,345.21 399,379,360.33
Plus: Balance of cash equivalents at the period end
Less: Initial balance of cash equivalents
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建设摩托 Interim Report 2011
Items Jan-Jun 2011 Jan-Jun 2010
Net increasing of cash and cash equivalents -48,459,494.65 43,036,196.17
Note: the difference between the balance of cash and the balance of the monetary capital was because the
Company was not treating note deposit as cash and cash equivalents.
IX. Notes to parent company financial statements
1. Account receivable
(1) Account receivable
Age June 30, 2011 December 30, 2010
Amount Proportion % Bad debt provision Amount Proportion % Bad debt provision
within 1 year 30,161,135.66 94.57 1,510,398.41 5,901,258.68 77.32 295,062.93
1-2 years 129,500.00 0.41 12,950.00 129,500.00 1.70 12,950.00
2-3 years 6,325.00 0.02 1,265.00 6,325.00 0.08 1,265.00
Over 3 years 1,594,979.70 5.00 1,594,979.70 1,594,979.70 20.90 1,594,979.70
Total 31,891,940.36 100.00 3,119,593.11 7,632,063.38 100.00 1,904,257.63
Note: No debt in the account due from shareholders with 5% or over of shares of the Company.
(2) Other receivable accounts
Age June 30, 2011 December 30, 2011
Amount Proportion % Bad debt provision Amount Proportion % Bad debt provision
within 1 year 173,257,992.46 97.62 423,491.03 225,835,440.27 98.17 538,389.32
1-2 years 0.00 0.00
2-3 years 0.00 0.00
Over 3 years 4,218,034.74 2.38 4,218,034.74 4,218,034.74 1.83 4,218,034.74
Total 177,476,027.20 100.00 4,641,525.77 230,053,475.01 100.00 4,756,424.06
Note: No debt in the account due from shareholders with 5% or over of shares of the Company.
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建设摩托 Interim Report 2011
2. Long-term equity investment
June 30, 2011 December 31, 2010
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment in
joint-venture 632,118,943.09 632,118,943.09 619,222,776.03 619,222,776.03
Investment in
associated
22,869,688.11 12,513,766.27 12,513,766.27
business 22,869,688.11
Investment in
1,140,915.04
subsidiaries 150,397,442.92 1,140,915.04 149,256,527.88 150,601,442.92 149,460,527.88
Total
805,386,074.12 1,140,915.04 804,245,159.08 782,337,985.22 1,140,915.04 781,197,070.18
Details:
Dividend
Share December 31, Increased this Decreased this received in
Items proportion % Initial amount 2010 term term June 30, 2011 current term
On equity basis:
Chongqing
Southern
Motorcycle
Technologies
Development Co.,
Ltd. 16.67% 20,000,000.00 10,000,000.00 10,000,000.00 20,000,000.00
Chongqing
Tongsheng Jianshe
Industry Co., Ltd. 30% 3,000,000.00 2,513,766.27 355,921.84 2,869,688.11
Chongqing
Pingshan Taikai
Carburetor Co.,
Ltd. 49% 67,316,539.87 74,931,165.04 2,706,200.67 299,404.83 77,337,960.88
Chongqing Jianshe
YAMAHA
Motorcycle Co.,
Ltd. 50% 154,699,622.03 281,915,840.30 7,008,121.73 288,923,962.03
Zhuzhou Jianshe
YAMAHA
Motorcycle Co.,
Ltd. 50% 215,710,320.08 262,375,770.69 14,481,249.49 11,000,000.00 265,857,020.18 11,000,000.00
Sub-total 460,726,481.98 631,736,542.30 34,551,493.73 11,299,404.83 654,988,631.20 11,000,000.00
On cost basis:
Chongqing Jianshe
Sales Co., Ltd. 100% 12,000,000.00 12,000,000.00 12,000,000.00
Chongqing
Northern Jianshe
Import & Export
Co., Ltd. 95.14% 57,443,527.88 57,443,527.88 57,443,527.88
Shanghai Jianshe
Motorcycle Co.,
Ltd. 51% 8,160,000.00 9,792,000.00 204,000.00 9,588,000.00
Chongqing Jianshe
Motorcycle Sales
Co., Ltd. 45% 225,000.00 225,000.00 225,000.00
Chognqing Jianshe
Automobile
Air-conditioner
Compressor Co.,
Ltd. 43.75% 70,000,000.00 70,000,000.00 70,000,000.00
Ningbo Jianshe
Motorcycle Co.,
Ltd. 51.00% 8,160,000.00 1,140,915.04 1,140,915.04
Sub-total 155,988,527.88 150,601,442.92 - 204,000.00 150,397,442.92 -
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建设摩托 Interim Report 2011
Total 616,715,009.86 782,337,985.22 34,551,493.73 11,503,404.83 805,386,074.12 11,000,000.00
Impairment of long-term equity investment
Items December 31, Provided this Written back this Other June 30,
2010 year year decreases 2011
Ningbo Jianshe Motorcycle
1,140,915.04 1,140,915.04
Manufacturing Co., Ltd.
Total 1,140,915.04 1,140,915.04
3. Operation income and operation cost
(1) Operation incomes and costs
Items Jan-Jun 2011 Jan-Jun 2010
Turnover
- Main business income 815,969,015.88 942,325,874.15
- Other business income 53,044,575.59 532,398,095.92
Total 86,9013,591.47 1,474,723,970.07
Operation cost
- Main business cost 753,719,876.25 865,035,252.01
- Other business cost 32,949,227.58 526,051,666.43
Total 786,669,103.83 1,391,086,918.44
(2) Business segment of main business incomes and costs
Items Major business turnover
Jan-Jun 2011 Jan-Jun 2010
Motorcycle and parts 815,969,015.88 942,325,874.15
Items Major business cost
Jan-Jun 2011 Jan-Jun 2010
Motorcycle and parts 753,719,876.25 865,035,252.01
(2) Business segment of other income and cost
Items Jan-Jun 2011 Jan-Jun 2010
Other business income
Rent of fixed assets 3,729,923.96 3,731,387.88
Sales of materials 47,547,008.55 525,752,326.19
Sales of waste material
Trademark royalty
Technical consulting and management fee
Others 1,767,643.08 2,914,381.85
Sub-total 53,044,575.59 532,398,095.92
Other business cost
Rent of fixed assets 86,860.40 272,366.95
Sales of materials 32,350,427.18 525,748,633.81
Sales of waste material
Trademark royalty
Technical consulting and management fee
Others 511,940.00 30,665.67
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建设摩托 Interim Report 2011
Sub-total 32,949,227.58 526,051,666.43
Other business profit 20,095,348.01 6,346,429.49
4. Investment income
Items Jan-Jun 2011 Jan-Jun 2010
Stock investment income
Credit investment income
Profit distribution announced by the investee on cost basis
Net increase/decrease of owners equity of the investee adjusted at end of year 24,551,493.73 40,176,523.01
Amortizing of equity investment balance -503,404.83 -503,404.83
Gains from disposal of equity investment
Income from outsourced financing
Income from entrusted loan
Investment impairment provision provided
Other investment income
Total 24,048,088.90 39,673,118.18
5. Connection of net profit and cash flow from business operation
Items Jan-Jun 2011 Jan-Jun 2010
Net profit 10,690,691.52 5,141,063.59
Plus: Asset impairment provision 1,100,437.19 -1,649,302.86
Fixed asset depreciation, gas and petrol depreciation, production goods depreciation 17,904,575.72 18,106,978.77
Amortizing of intangible assets 2,520,150.34 1,844,920.50
Amortizing of long-term expenses 2,941,614.28 1,416,350.20
Loss from fixed assets, intangible assets and other long-term assets disposal (“-“ for gains) -6,410.26 164,553.18
Loss from fixed assets discarding (“-“ for gains)
Loss from fluctuate of fair value (“-“ for gains)
Financial expenese (“-“ for gains) 26,163,060.43 23,184,059.74
Investment loss (“-“ for gains) -24,048,088.90 -39,673,118.18
Decrease of deferred income tax asset (“-“ for increase) -165,065.58 247,395.42
Increase of deferred income tax liabilities (“-“ for decrease)
Decrease of inventory (“-“ for increase) -2,261,942.34 4,446,290.48
Decrease of operational receivables (“-“ for increase) -60,358,713.27 -140,717,785.94
Increase of operational payables (“-“ for decrease) -83,333,628.16 -103,634,324.13
Others
Cash flow generated by business operation, net -108,853,319.03 -231,122,919.23
6. Net change of cash and cash equivalents
Items Jan-Jun 2011 Jan-Jun 2010
155,608,050.72 397,488,116.69
Balance of cash at period end
166,262,402.29 330,985,587.79
Less: Initial balance of cash
Plus: Balance of cash equivalents at the period end
Less: Initial balance of cash equivalents
-10,654,351.57 66,502,528.90
Net increasing of cash and cash equivalents
Note: the discordance between the cash balance and the monetary capital carried in the financial statement of the
parent company was because the Company hasnt treated bank note deposit as cash and cash equivalents.
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建设摩托 Interim Report 2011
X. Related parties and transactions
1. Related parties
(1) The parent company and substantial controller
Name of the companies Reg. Add. Business Relation with the Registered capital Shareholding position in Voting
property Company (RMB0000) the Company power in the
Company
China Southern Industry Militiary Controlling
Beijing 1,264,521 71.13% 71.13%
Group Co., Ltd. industry shareholder
(2) Remarks on the subsidiaries
For details please see “VII. Merger of enterprises and consolidated financial statements”
(3) Properties of related parties without controlling relationships
Name of the parties Connection with the Company
Chongqing Jianshe Industry Co., Ltd. (“Jianshe Industry”) Subsidiary of the controlling shareholder
South-western Military Industry Co. Subsidiary of the controlling shareholder
Chongqing Jianshe Machinery Co., Ltd. (“Jianshe Machinery”) Subsidiary of the controlling shareholder
Military Equipment Group Finance Co., Ltd. Subsidiary of the controlling shareholder
(“Military Finance”)
Chongqing Changan Automobile Co., Ltd. Grand subsidiary of the controlling
(“Changan Automobile”)
shareholder
Chongqing Fuda Property Management Co., Ltd. Grand subsidiary of the controlling shareholder
(“Fuyeda Co.”) Note
Chongqing Jianshe Industry & Trade Co., Ltd. Grand subsidiary of the controlling
(“Jianshe Industry & Trade”)
shareholder
Chongqing Jianshe YAMAHA Motorcycle Co., Ltd. Joint venture of the Company
(“Chongqing Jianshe Yamaha”)
Zhuzhou Jianshe YAMAHA Motorcycle Co., Ltd. Joint venture of the Company
(“Zhuzhou Jianshe Yamaha”)
Chongqing Pingshan Taikai Carburetor Co., Ltd. Affiliate of the Company
(“Pingshan Taikai”)
Chongqing Jianxing Machinery Co., Ltd. Affiliate of the subsidiary of the controlling shareholder
(“Jianxing Machinery”)
Chongqing Tongsheng Jianshe Industry Co., Ltd. Affiliate of the Company
(“Tongsheng Jianshe”)
Chongqing Bailu Industry Co., Ltd. Grand subsidiary of the controlling shareholder
(“Bailu Industry”)
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建设摩托 Interim Report 2011
2. Related Transactions
(1) Selling of goods
Pricing was on fair market prices.
Name of the parties Jan-Jun 2011 Jan-Jun 2010
Chongqing Southern Motorcycle Co., Ltd. Sales Company 90,276,735.57
Jianshe Industry 792,175.64
Chongqing Qiantai Industry & Trade Co., Ltd. 12,094,500.94 24,115,196.51
Chongqing Jianxing Rubber Products Factory 8,368,392.69
Chongqing Fuda Property Management Co., Ltd. 214,179.89
Jianshe Yamaha 158,878,884.60 19,765,056.38
Pingshan Taikai 16,669,686.38
Chongqing Jianxing Machinery Co., Ltd. 3,066,347.07
Changan Auto 59,992,047.70
69,824,836.37
Tongsheng Construction 5,565,903.15
Jianshe Industry & Trading 219,209.44
(2) Purchasing of goods
Name of the parties Jan-Jun 2011 Jan-Jun 2010
Jianshe Industry 1,076,923.08
Jianxing Machinery 14,039,615.01 7,104,275.62
Jianxing Rubber 17,300,615.53
Chongqing Yamaha 223,060.00 1,119,452.83
Pingshan Taikai 2,281,159.05 12,228,802.56
Jianshe Industry & Trading 248,065.37 481,344.77
Chongqing Qiantai Industry & Trade
41,825,518.11 53,474,081.93
Co., Ltd.
Tongsheng Construction 15,485,885.78 2,951,171.81
Pricing was on fair market prices.
(3) Providing of services
Name of the parties Jan-Jun 2011 Jan-Jun 2010
Jianshe Industry
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建设摩托 Interim Report 2011
Fuyeda Co.
Pricing was on fair market prices.
(4) Accepting of services
Name of the parties Jan-Jun 2011 Jan-Jun 2010
Fuyeda Co. 1,463,482.33 1,065,596.62
Jianshe Industry 11,163,214.13 15,617,807.97
Jianxing Rubber 119,860.25
Jianxing Machinery 7,774.36
Pricing was on fair market prices.
(5) Leasing
Name of the parties Jan-Jun 2011 Jan-Jun 2010
Jianshe Yamaha 1,878,249.63 2,191,887.06
Shanghai Jianshe Yamaha 1,851,674.33 1,539,500.82
Prices were negotiated and decided by contracts.
(6) Accepting of fixed assets
Name of the parties Jan-Jun 2011 Jan-Jun 2010
Prices were negotiated and decided by contracts.
(7) Selling of assets
Name of the parties Jan-Jun 2011 Jan-Jun 2010
(8) Accepting of guarantees
As of June 30, 2011, South-Westerm Military Industry Co., Ltd. provided guarantee of RMB266,000,000 to the
Company short-term loans.
3. Receivable and payables due with related parties
June 30, 2011 December 31, 2010
Name of the parties
Amount Amount
Notes receivable
Changan Auto 33,120,000.00 5,100,000.00
Hebei Changan 2,453,570.00 3,453,570.00
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建设摩托 Interim Report 2011
June 30, 2011 December 31, 2010
Name of the parties
Amount Amount
Nanjing Changan 1,846,430.00 346,430.00
Changhe SUZUKI 6,518,940.00 4,800,000.00
Account receivable
Jianshe Yamaha 22,678,054.18
Changan Auto 41,887,346.91 15,183,875.06
Hebei Changan 45,006.00
Nanjing Changan 3,852,678.71 7,248,568.63
Changhe SUZUKI 13,966,017.74 9,177,257.05
Other account receivable
Chongqing Yamaha 3,390,481.51 5,408,802.25
Account payable
Jianxing Machinery 779,828.02 3,446,839.14
Pingshan Taikai 6,144,364.18 5,754,124.28
Chongqing Yamaha 2,148,466.72 1,887,486.51
Qiantai Industry 3,168,549.48
Tongsheng Construction 3,320,327.24 2,685,537.39
Other account payable
Jianxing Machinery 3,278.968.88
Fuyeda 853,852.27 848,226.53
Jianshe Industry
Yunlong Co. 35,737.53 37,775.26
XI. Post balance sheet issues
No post-balance-sheet issue to be disclosed.
Chongqing Jianshe Motorcycle Co., Ltd.
Supplementary Information of the Financial Statements
Calculating formula of net IOE and Earning per share
Income on asset and earning per share are calculated according to the “Information disclosure regulations of
public limited companies” No. 9 issued by China Securities Regulatory Committee as the following:
Net earnings / capital ratio
Earnings per share (RMB)
(%)
Profit of the report period On full
weighted Basic earnings Diluted earnings
amortizing
average per share per share
basis
Net profit attributable to common
0.0029 0.0029 0.0029 0.0029
shareholders of the Company
Net profit attributable to the common
owners of the PLC after deducting of 0.0005 0.0005 0.0005 0.0005
non-recurring gains/losses
VIII. Documents for Inquiring
(I) Interim Report carried with personal signature and seal of the Chairman of the Board;
(II) Financial report with the signature and seal of the legal representative, CFO, and accounting manager of the
55
建设摩托 Interim Report 2011
Company.
(III) All of the documents have disclosed by Securities Times and Hong Kong Commercial Daily.
(IV) The Articles of Association of the Company
The Chairman:
Chongqing Jianshe Motorcycle Co., Ltd.
August 1, 2011
56
