Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Chongqing Jianshe Motorcycle Co., Ltd.
Interim Report 2013
2013-056
August 2013
1
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Chapter I. Important Prompts, Table of Contents, and Definitions
The Board of Directors, the Supervisory Committee, the directors, the supervisors, and executives 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.
Directors other than the followings presented the Board Meeting at which this report was examined:
Reason for not presenting the
Name of the director absented Position Name of consignee
meeting
Hao Lin Director On business trip Tang Wenquan
Chen Xingshu Independent Director On business trip Wang Jun
The Company will not distribute cash dividend or bonus shares, neither capitalizing of common reserves for
the report period.
Mr. Li Huaguang, the responsible people of the Company, Mr. Teng Feng, the Chief Financial Officer, and
Mr. Liao Jian manager of accounting department declare: the Financial Report carried in this report is authentic
and completed.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Table of Contents
Chapter I. Important Prompts, Table of Contents, and Definitions ..........................................................................................................2
Chapter II. Company Profile....................................................................................................................................................................5
Chapter III. Financial Highlights .............................................................................................................................................................7
Chapter IV. Board of Directors Report ...................................................................................................................................................9
Chapter V. Significant Events .............................................................................................................................................................17
Chapter VI. Change of Share Equity and Shareholders .........................................................................................................................25
Chapter VII. Particulars about the Directors, Supervisors and Senior Executives .................................................................................28
Chapter VIII. Financial Report ..............................................................................................................................................................29
Chapter IX. Documents for Reference.................................................................................................................................................134
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Glossary
Terms Defined as Description
Company, the
Defined as Chongqing Jianshe Motorcycle Co., Ltd.
Company
Shenjianmo Defined as Shenzhen North Jianshe Motorcycle Co., Ltd. (predecessor of the Company)
Military Equipment China Military Equipment Group Co., Ltd. (China Southern Industry Group Co.,
Defined as
Group Ltd.)
Southern Group Defined as China Southern Industry Group Co., Ltd.
Military Finance Co. Defined as Military Equipment Group Finance Co., Ltd.
Chongqing Jianshe Industry Co., Ltd. – former State-owned Jianshe Machinery
Jianshe Industry Defined as
Factory, Jianshe Industry (Group) Co., Ltd.
Jianshe Group Defined as Jianshe Industrial (Group) Co., Ltd.
Changan Auto Defined as Chongqing Changan Automobile Co., Ltd.
Sales Co. Defined as Chongqing Jianshe Sales Co., Ltd.
Vehicle air conditioner Defined as Chognqing Jianshe Automobile Air-conditioner Co., Ltd.
Import & Export Co. Defined as Chongqing Northern Jianshe Import & Export Co., Ltd.
Chongqing Yamaha Defined as Chongqing Jianshe YAMAHA Motorcycle Co., Ltd.
Zhuzhou Jianya Defined as Zhuzhou Jianshe YAMAHA Motorcycle Co., Ltd.
Pingshan Taikai Defined as Chongqing Pingshan Taikai Carburetor Co., Ltd.
Jianxing Machinery Defined as Chongqing Jianxing Machinery Co., Ltd.
Tongsheng
Defined as Chongqing Tongsheng Jianshe Industry Co., Ltd.
Construction
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Chapter II. Company Profile
I. Company profile
Stock ID Jianmo B Stock Code 200054
Abbreviation of stock ID (if
*ST Jianmo B
any)
Stock Exchange Listed in Shenzhen Stock Exchange
Company Name in Chinese Chongqing Jianshe Motorcycle Co., Ltd.
Abbreviation in Chinese (if
Jianshe Motorcycle
any)
Company Name in English CHONGQING JIANSHE MOTORCYCLE CO.,LTD.
Shortform of Company Name
JSMC-B
in English
Legal representative: Li Huaguang
II. Contacts
Secretary of the Board Representative of Stock Affairs
Name Teng Feng Liu Hongyu
No.1 Jianshe Road, Huaxi Industrial Zone, No.1 Jianshe Road, Huaxi Industrial Zone,
Address
Banan District, Chongqing Banan District, Chongqing
Tel. 023-66295333 023-66295333
Fax. 023-66295333 023-66295333
Email. cqjsmc@jianshe.com.cn cqjsmc@jianshe.com.cn
III. Other info.
1. Contacts
Any change to the registered address, office address, postal code, official website, and email address of the Company
[] Applicable; [V] Not applicable
No change to the registered address, office address, postal code, official website, and email address of the Company. For details
please find the Annual Report 2012.
2. Information inquiry
Whether the place for information enquiry has been changed in the report term
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
[] Applicable; [V] Not applicable
None of the official presses, website, and place of enquiry has been changed in the report period.
3. Change of business registration
Whether the business registration has been changed in the report period
[] Applicable; [V] Not applicable
None of the registration date and place, the license number, tax number, organization number has been changed in the report period.
For details please find Annual Report 2012.
4. Misc. Information
Was there any other changes to the misc. information
[] Applicable; [V] Not applicable
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Chapter III. Financial Highlights
I. Main accounting data and indices
Are there any retrospective adjustment or restatement of financial information of previous year due to change of accounting policies
or correcting of accounting errors
[] Yes [V] No
This report term Same period last year Increase/decrease (%)
Turnover (RMB) 926,465,613.86 968,858,593.63 -4.38%
Net profit attributable to shareholders of
-33,126,243.42 -33,707,653.70 1.72%
the listed company (yuan)
Net profit attributable to the shareholders
of the listed company and after deducting -34,008,280.76 -33,930,823.74 -0.23%
of non-recurring gain/loss(RMB)
Net Cash flow generated by business
-18,374,177.59 -41,048,514.26 -55.24%
operation (RMB)
Basic earnings per share (Yuan/share) -0.0694 -0.0706 1.7%
Diluted earnings per share (Yuan/share) -0.0694 -0.0706 1.7%
Weighted average net
-26.31% -12.5% -13.81%
income/asset ratio (%)
Changed (%) over end of
Ended this report term End of prev. year
prev. year
Gross Assets (RMB) 2,916,509,280.00 2,885,170,689.64 1.09%
Net asset attributable to owners of the PLC 109,325,807.67 142,442,251.09 -23.25%
II. Differences in accounting information under IAS and domestic accounting standard
1. Differences in net profit and net asset under domestic and international accounting standards
In RMB Yuan
Net profit attributable to the shareholders of the Net asset attributable to the shareholders of the
listed company listed company
Current term Amount of last term End of term Beginning of term
On Chinese Accounting
-33,126,243.42 -33,707,653.70 109,325,807.67 142,442,251.09
Standard
Items and amounts adjusted on IAS
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
2. Differences in net profit and net asset under domestic and overseas accounting standards
In RMB Yuan
Net profit attributable to the shareholders of the Net asset attributable to the shareholders of the
listed company listed company
Current term Amount of last term End of term Beginning of term
On Chinese Accounting
-33,126,243.42 -33,707,653.70 109,325,807.67 142,442,251.09
Standard
Accounts and amounts adjusted according to overseas accounting standard
3. Statement on the differences of accounting information on IAS and domestic accounting standard
III. Non-recurring gain/loss items and amounts
In RMB Yuan
Items Amount Remarks
Gains and losses included in the current period of government
subsidies, excluding those government grants which are closely
679,789.17
related to normal business and in line with national policy , or in
accordance with fixed standards or quantities
Other gain/loss items satisfying the definition of non-recurring
202,248.17
gain/loss account
Total 882,037.34 --
If the company defines those items to recurring gain/loss itmes, which were defined by “Regulations of Information Disclosure of
PLCs, Explaination No.1 - Non-recurring gain/loss” as non-recurring gain/loss, please provide reason here.
[V] Applicable Not applicable
Items Amount involved (RMB) Causation
罚没收入及违约金收入 234,813.96
Overdue tax penalty 18,629.71
Loss from disposal of current
13,936.08
assets
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Chapter IV. Board of Directors’ Report
I. Business overview
The declining trend has extended to the first half of 2013 in the whole motorcycle industry and is becoming
more severe. According to the information provided by the Association of Auto Industry, the Company had sold
out 551.2 thousand motorcycles in the period of Jan-Jun, which was a decline of 1.98%, and ranked 6th in the
whole industry. However thank to the effort of the Company paid on auto compressor products, the sales of auto
compressor was 789.7 thousand units during Jan-Jun – an increase of 19.46%, and took the 3rd place in the
industry.
Under the impact of declining motorcycle business, the Company has failed to turn around its losing
situation.
II. Analysis of main business
Overview
The Company is mainly involved in general assembling, processing, and sales of motorcycles, motorcycle parts,
and auto parts. In which motorcycle business accounts for 64.71% of the main business income, and the other
35.29% is contributed by auto compressor products.
Change in main financial data
In RMB Yuan
This report term Same period last year Changed by % YoY Cause of change
Turnover 926,465,613.86 968,858,593.63 -4.38%
Operation cost 794,114,222.16 814,535,168.88 -2.51%
Sales expense 56,501,111.61 61,805,964.91 -8.58%
Administrative expense 76,760,982.40 70,934,694.54 8.21%
Financial expenses 52,395,890.25 58,650,249.34 -10.66%
Income tax expenses 75,293.70 100%
Input to R&D 12,955,991.35 17,870,508.48 -27.5%
Cash flow generated by Increase of air
-18,374,177.59 -41,048,514.26 55.24%
business operation, net conditioner compressor
Increase of cash dividend
Net cash flow generated
21,618,494.10 -10,096,204.44 314.12% and decrease of fixed
by investment
asset purchase
Net cash flow generated Change of financing
4,714,167.22 34,731,395.68 -86.43%
by financing method
Net increasing of cash 6,921,215.59 -16,225,808.46 142.66%
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
and cash equivalents
Material changes in profit composition or sources
[] Applicable; [V] Not applicable
No change in profit composition or sources in the report period.
Business plans scheduled in Share Offer Prospectus or Capital Reconstruction Report which are extended to the report period
[] Applicable; [V] Not applicable
No business plans scheduled in Share Offer Prospectus or Capital Reconstruction Report which are extended to the report period
Implementation and progress of business plan provided by the previous periodic report:
In the first half of 2013, the Company had been implementing the “231” programme, focusing on the two
main businesses (motorcycle and auto parts). Great effort had been made on the three key businesses, which are
international cooperation, motorcycles under Jianshe brand, and automobile air conditioner compressors:
1. Cooperation with YAMAHA was further expanded and deepened.
Firstly the volume of OEM was 19.6 thousand units, increased by 68%.
Secondly the first sample of ATV400CC motor (F33) will be completed in September; YAMAHA ZTR125
technical upgrading project will be completed, which will lay a solid foundation for the cooperation in off-road
motorcycles.
2. The motorcycles under Jianshe brand is facing a period of difficulties.
Nevertheless, the Company has been doing all efforts to reinforce domestic promotion, expand its
distribution networks, push forward e-commerce process, and accelerate product upgrading.
In the first half year, the international sales was in a steady position. Export targets were fulfilled.
3. Structural adjustment has taken effect with the air conditioner compressor business.
Development of the three major customers, namely the Greatwall, Dongfeng Nissan, and Peugeot, had pull up the
whole business by 13.3%, which was 0.74% over the whole growth of the automobile industry. Business targets
for the 1st half year were achieved.
III. Main business composition
In RMB Yuan
Increase/decrease Increase/decrease
Increase/decrease
of operation cost of gross profit
Gross profit of turnover over
Turnover Operation cost over the same ratio over the
ratio % the same period
period of last year same period of
of last year (%)
(%) last year (%)
On Industries
Industries 884,769,840.44 763,701,975.49 13.68% -1.69% -0.18% -1.31%
On Products
Motorcycle and
572,536,578.10 500,904,721.00 12.51% -9.64% -6.43% -3%
parts
Vehicle air
312,233,262.38 262,797,254.51 15.83% 17.24% 14.41% 2.08%
conditioner
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
On territories
North 124,787,879.02 104,208,806.35 16.49% 17.29% 11.79% 4.11%
East 62,857,269.76 53,400,596.94 15.04% -22.58% -25.06% 2.81%
Mid-south 55,939,792.59 48,466,567.99 13.36% 5.86% 4.62% 1.03%
South-west 375,256,162.44 323,318,088.41 13.84% -6.98% -0.42% -5.68%
North-east 19,509,472.26 16,625,704.11 14.78% -54.94% -55.84% 1.76%
North-west 24,042,660.05 20,402,881.46 15.14% -32.8% -34.29% 1.94%
South 67,823,774.26 61,233,025.57 9.72% 108.65% 121.12% -5.09%
Overseas sales 154,552,830.06 136,046,304.67 11.97% 6.94% 2.16% 4.11%
IV. Analyze of competitive edge
As for the motorcycle industry, the Company has under its possession of a national technical center, a
national certified lab, and 9000 square meter testing track. As of the energy saving technique, the Company has
under its possession of the external cleaning of electro-injection technology and automatic indicating of
electro-injection. As of the designing aspect, 3D designing technologies were developed, including 3D curve
surface designing. In the aspect of engine, a working process testing platform was constructed. All testing process
can be done by the Company independently. In the aspect of comfort technologies, the Company has a range of
technologies including objective and subjective evaluation, whole testing and part testing, engine vibration test.
As for the air conditioner compressor, the Company has engaged long cooperation with universities about
noise controlling. Turbine compressor will be further developed to meet the needs of international competition. It
will be the future cutting edge of the Companys business.
V. Investment
1. External equity investment
(1) External investment
External Investment
Investment of same period of last year
Investment of the period (RMB) Scale of change %
(RMB)
0.00 0.00 0%
Particulars of the invested company
Name of companies Main Business Equity share in the invested company (%)
(2) Shareholding in financial enterprises
Name of Type of Original Openning Share Shares Share Close Gain/loss Accountin Source of
companies company investment amount of proportion held at the proportion balance of in report g subject shares
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
cost shares (%) at end of at end of book value period
(RMB) beginning term period % (RMB) (RMB)
of period (shares)
Total 0.00 0 -- 0 -- 0.00 0.00 -- --
(3) Stock investment
Share Shares Share Close
Original Gain/loss
Openning proportio held at proportio balance
Stock Stock investmen in report Accounti Source of
Stock ID amount of n (%) at the end of n at end of book
category Code t cost period ng subject shares
shares beginning term of value
(RMB) (RMB)
of period (shares) period % (RMB)
Total 0.00 0 -- 0 -- 0.00 0.00 -- --
Statement on holding of other PLCs shares.
[] Applicable; [V] Not applicable
2. Trusted financing, derivate instruments, and trusted loans
(1) Trusted financing
In RMB10 thousand
Impairme
Principal Actual
Related nt
Title of Relations Type of Amount Expired Mean of retreived Predicted gain/loss
transactio Started on provision
entrustee hip product entrusted on reward this income of the
n or not provided
period period
(if any)
Total 0 -- -- -- 0 0 0 0
Resource of capital trusted Not applicable
Accumulated principal and gains overdue 0
(2) Derivate instrument investment
In RMB10 thousand
Proportion
of
Operator of Impairment Actual
Related Openning Closing investment
the Type of Initial Started Expired provision gain/loss
Relationship transaction balance of balance of in the net
derivate instruments investment on on provided of the
or not investment investment asset at
instruments (if any) period
end of
period
Total 0 -- -- 0 0 0 0% 0
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Resource of capital for derivate instruments Not applicable
(3) Trusted loans
In RMB10 thousand
Related
Amount of Interest Guarantor or Capital application
Object of loan party or
loan rate pledge of the object
not
Total -- 0 -- -- --
3. Using of proceeds from share placing.
(1) Overall situation of capital from share issuing
In RMB10 thousand
Total of proceeds 0
Total of proceeds invested in the report term 0
Total of proceeds invested 0
Total of proceeds changed to other use in the report
0
term
Accumulated proceeds changed to other use 0
Percentage of accumulated proceeds changed to other
0%
use on total proceeds %
Statement on overall application of finance raised
(2) Projects financed by share issuing
In RMB10 thousand
If
Total of Investment Date
investment Amount
Project proceeds Total Accumulated progress at when the Gains
project invested Major
promised to be to be investment investment at end of project in the Gains as
changed this change in
invested by the invested after end of report report become report expected
(including report feasibility
proceeds as adjustment term (2) term(%)(3) useable as term
partially term
proposed ＝(2)/(1) proposed
change)
Project set by the prospectus
Subtotal of
investment -- 0 0 0 0 -- -- 0 -- --
promised
Investment project of premium surplus
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Total -- 0 0 0 0 -- -- 0 -- --
Amount, usage
and progress of Not applicable
premium surplus
Change of
location of Not applicable
project to invest
Adjustment on
implementation
Not applicable
of project
invested
Pre-investment
and replacement Not applicable
by proceeds
Idle proceed
used as working Not applicable
capital
Surplus of
investment and Not applicable
causation
(3) Change of projects financed by proceeds
In RMB10 thousand
Date when Is there any
Total Actual Accumulated Progress of Gains
Project the project major change
New investment investment investment at investment at end in the Gains as
promised become in feasibility
project after change in report end of report of report period report expected
originally useable as about the
(1) period period (2) (%)(3)=(2)/(1) term
proposed projects
Total -- 0 0 0 -- -- 0 -- --
Reasons, decision-making
process, and information
Not applicable
disclosure of change (on each
project)
Reasons of not on schedule or
making profit as expected (on Not applicable
each project)
Major change in feasibility after
Not applicable
change
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
(4) Projects financed by share issuing
Overview of projects Date of disclosure Index of information disclosure
4. Analyze of main subsidiaries and affiliates
Profiles of main subsidiaries and affiliates
In RMB Yuan
Major
Name of Type of Registered Gross Operation
Industry products or Net asset Turnover Net profit
companies business capital Assets profit
service
Jianshe Motorcycle RMB12,000 583,783,439 -152,902,84 338,705,935 -6,268,274. -6,281,236.
Subsidiaries wholesale
Sales Co. and parts ,000 .11 9.82 .58 87 56
Sales and
Auto Machinery service of
RMB160,00 753,255,909 204,184,413 312,577,725 8,855,150.4 9,292,066.7
Air-conditio Subsidiaries manufacturi auto
0,000 .44 .61 .38 6 4
ner Co. ng air-conditio
ners
Machinery
Chongqing Shareholdin Motorcycle USD650000 1,070,393,1 633,822,079 1,065,958,1 28,053,733. 28,176,173.
manufacturi
Yamaha g company and parts 00 22.96 .88 15.85 49 59
ng
Machinery
Zhuzhou Shareholdin Motorcycle USD572000 713,964,507 547,956,640 455,615,420 27,863,912. 28,538,685.
manufacturi
Jianya g company and parts 00 .64 .02 .81 41 33
ng
5. Major projects using non-raised capital
In RMB10 thousand
Accumulation of
Amount invested Investment progress Turnover of the
Projects Planned investment actual input at end of
this report term of the project project
period
Total 0 0 0 -- --
VI. Prediction of business performance for Jan-Sept 2013
Alert of loss or significant change in net profit from the beginning of year to the end of next report period or comparing with the
same period of last year, and statement of causations.
[] Applicable; [V] Not applicable
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
VII. Statement of the Board on the “Non-standard auditors’ report” issued by the CPA on the
current report period
Not applicable
VIII. The Borad’s statement on “Non-standard Auditors’ Report” of previous year
Not applicable
IX. Profit distribution carried out in the report period
Execution or adjustment of profit distribution, especially cash dividend, and capitalizing of reserves in the report period.
[] Applicable; [V] Not applicable
It had been decided by the Shareholders Meeting 2012 that neither profit distribution nor capitalizing of reserves will be carried out.
X. Profit distribution for the report period.
Particulars about the profit distribution and capitalizing reserves plan for the report period
XI. Reception of investigations, communications, or interviews
Type of
Time/date Place Way Visitors Main content involved and material provided
visitors
Q: When stock trading will be restored after implementation of the
stock draw back plan A: Implementation of the plan will be
Investors of
Jan 25 The Telephone following legal procedures such as examination by the
Individual the
2013 Company communication shareholders meeting, information to creditors, amending of
Company
Articles of Association, and reporting to the authorities. Please
follow the announcement issued by the Company.
Q: What is the influence of stock draw back A: Implementation of
Investors of this plan will not make any better to the Companys business
March 26, The Telephone
Individual the operation. However the executives of the Company will do their
2013 Company communication
Company best to improve production composition, increase competition, and
overall operation of the Company.
Investors of
Apr 11 The Telephone Q: When will stock restored A: Please follow the announcement
Individual the
2013 Company communication issued by the Company.
Company
Q: Does the Company produced plans to turn around the negative
Investors of
May 3 The Telephone profit A: Please see the business plan for the coming three years
Individual the
2013 Company communication and arrangements for year 2013 provided by the Annual Report
Company
2012.
Investors of
June 27 The Telephone Q: When will stock restored A: Please follow the announcement
Individual the
2013 Company communication issued by the Company.
Company
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Chapter V. Significant Events
I. Administrative Position
There isnt any difference between the management practise and the regulations of the Company Law and CSRC.
II. Material lawsuits
[V] Applicable Not applicable
Index
If
of
Amount constitut Date
Progress infor
involved e Results and of
Profile of the claim Progress of the lawsuit of matio
(RMB0 expected influence disclos
execution n
000) liabilitie ure
disclo
s
sure
The 5th Middle Court openned trial on April
27, 2013 for the lawsuit raised by
The Import & Export Co.
Chongqing Huiyao Motorcycle Import &
rejected the order and
Export Co., Ltd. against the subsidiary
appeal to the High Court
Import & Export Co. of the Company. The
claiming for withdrawing
judge ordered the defender to pay 421.8 No
of the Middle Courts
RMB4159562.39 and interests (since July 7,
Judge. The trial was
2007 to the date of payment), and
scheduled for July 23,
RMB58514.4 of lawsuit fee. The other
2013.
claims of the Huiyao Co. were rejected by
the court.
III. Media queries
[] Applicable; [V] Not applicable
No media queries raised in the report period.
IV. Receivership and bankrupcy
Not applicable
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
V. Asset transactions
1. Acquisition of assets
Percenta
The other ge of the Relationsh
party of Asset net profit ip with the
Impact on the Impact on the Related
the trade sold out Price contribut other party Date of Index of
Progress Companys Companys transact
or or RMB00 ed by the (applicable disclosure information
(Note 2) operation profit ion or
ultimate purchase 00 asset in to related (Note 5) disclosure
(Note 3) (Note 4) not
dominato d in the total transaction
r net profit s)
of %
2. Disposal of assets
Net
profit Percenta
contribu ge of
ted to the net
the PLC profit
since contribu
the Impact ted by Relation Complet Debt & Index of
The Related
Price beginni on the the asset ship ely credit Date of informat
other Asset Date of Pricing transacti
RMB0 ng of Compan up to with the transferr transferr disclosu ion
party of traded disposal policies on or
000 the y (Note the date other ed or ed or re disclosu
trade not
current 3) of party not not re
period disposal
to the in the
date of total net
disposal profit
RMB0 of %
000
3. Merger of entities
Not applicable
VI. Implementation of share incentive program and influences
No share equity motivation scheme has been implemented in the report term.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
VII. Material related transactions
1. Related transactions related to daily operation
Market
Principle of
Subjects of Price Amount of Percentage price of Index of
Related Type of pricing the Way of Date of
Relationship the related of trade in similar similar information
parties trade related payment disclosure
transactions trade RMB0000 trades % trade disclosure
transactions
available
Subsidiaries
of the
Jianshe Purchasing Fuel & April 24,
common Fair price 1,050.93 1.81%
Industry of goods power 2013
holding
shareholder
Tongsheng Purchasing April 24,
Affiliates Spare parts Fair price 1,165.25 2%
Construction of goods 2013
Chongqing Joint sales of Finished April 24,
Fair price 6,777.56 7.66%
Yamaha ventures goods products 2013
Grand
subsidiaries
Changan sales of Finished April 24,
of common Fair price 7,870 8.89%
Auto goods products 2013
holding
shareholder
Chongqing Joint sales of April 24,
Parts Fair price 1,811.42 2.05%
Yamaha ventures goods 2013
Jianxing sales of April 24,
Parts Fair price 1,176.18 2.02%
Machinery goods 2013
Pingshan Joint sales of April 24,
Parts Fair price 735.66 1.26%
Taikai ventures goods 2013
Total -- -- 20,587 -- -- -- -- --
2. Related transactions related to asset purchasing or disposal
Principle Evaluati
Book
Subjects of on value Fair Gain / Index of
value of Transacti
of the pricing of asset market loss of Date of informati
Related Relations Type of asset on price Way of
related the transferr value trade disclosur on
parties hip trade transfer (RMB0 payment
transacti related ed (RMB0 (RMB0 e disclosur
(RMB0 000)
ons transacti (RMB0, 000) 000) e
000)
ons 000)
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
3. Material related transactions related to collaborated external investment
Pricing Registered
Main Total asset of Net asset of Net profit of
policies for Name of the capital of the
Joint investor Relationship business of the investee the investee the investee
joint investee invested
the investee (RMB0000) (RMB0000) (RMB0000)
investment enterprise
4. Debtors and credits with related parties
Non-operational transaction of credits and debts with related parties
[] Yes [V] No
Is there any
Openin Occurred Closing
Type of credit non-operation
Related parties Relationship Cause balance current period balance
or debt al capital
(RMB0000) (RMB0000) (RMB0000)
appropriation
5. Other material related transactions
None
Online inquiry of provisional announcements about major related transactions
Title of website for the provisional
Title of provisional announcement Date of provisional accouncement
announcement
VIII. Material contracts and execution
1. Entrustment, contracting, and leasing issues
(1) Trusteeship
Statement on entrustment
Not applicable
Projects brought the Company with gain/loss for over 10% of the total profit of the report period.
[] Applicable; [V] Not applicable
(2) Contracting
Statement on contracting
Not applicable
Projects brought the Company with gain/loss for over 10% of the total profit of the report period.
[] Applicable; [V] Not applicable
20
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
(3) Leasing
Statement on the leasing
Not applicable
Projects brought the Company with gain/loss for over 10% of the total profit of the report period.
[] Applicable; [V] Not applicable
2. Guarantees
In RMB10 thousand
External Guarantee (Exclude controlled subsidiaries)
Amount of Actual date of
Amount of Related
Guarantee provided guarantee occurring Actual amount Type of Complete
the Term party or
to and date of (signing date of of guarantee guarantee d or not
guarantee not
disclosure agreements
April 24, Joint
The Company Feb 23, 2013 4,800 Yes No
2013 liabilities
April 24, Joint
The Company Feb 27 2013 1,000 Yes No
2013 liabilities
April 24, Joint
The Company Feb 3 2014 2,500 No No
2013 liabilities
April 24, Joint
Sales Co. Mar 19 2013 350 Yes No
2013 liabilities
April 24, Joint
Sales Co. Sept 25 2013 2,450 No No
2013 liabilities
Vehicle air April 24, Joint
Sept 29 2013 500 No No
conditioner 2013 liabilities
April 24, Joint
Sales Co. April 22, 2013 2,650 Yes No
2013 liabilities
April 24, Joint
Sales Co. May 5 2013 3,600 Yes No
2013 liabilities
Vehicle air April 24, Joint
Oct 12 2013 2,500 No No
conditioner 2013 liabilities
April 24, Joint
Sales Co. May 12 2013 5,000 Yes No
2013 liabilities
April 24, Joint
The Company May 25 2013 2,850 Yes No
2013 liabilities
April 24, Joint
The Company Nov 8 2013 2,970 No No
2013 liabilities
April 24, Joint
Sales Co. Nov 17 2013 5,000 No No
2013 liabilities
April 24, Joint
The Company Nov 1 2013 100 No No
2013 liabilities
April 24, Joint
The Company May 1 2014 100 No No
2013 liabilities
April 24, Joint
The Company Nov 1 2014 100 No No
2013 liabilities
April 24, Joint
The Company May 1 2015 100 No No
2013 liabilities
April 24, Joint
The Company Nov 1 2015 2,200 No No
2013 liabilities
April 24, Joint
The Company May 21 2016 2,400 No No
2013 liabilities
Vehicle air April 24, Joint
Dec 24 2013 3,000 No No
conditioner 2013 liabilities
Total of external guarantee
Total of external guarantee
36,850 actually occurred in the report 44,170
approved in the report term (A1)
term (A2)
Total of external guarantee Total of external guarantee
36,850 23,920
approved as of end of report term actually occurred as of end of
21
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
(A3) report term (A4)
Guarantee provided to controlled subsidiaries
Amount of Actual date of
Amount of Related
Guarantee provided guarantee occurring Actual amount Type of Complete
the Term party or
to and date of (signing date of of guarantee guarantee d or not
guarantee not
disclosure agreements
Vehicle air April 24, Joint
Jan 13 2013 2,000 Yes No
conditioner 2013 liabilities
Vehicle air April 24, Joint
Jun 14 2013 2,000 No No
conditioner 2013 liabilities
April 24, Joint
Sales Co. Feb 8 2013 2,800 Yes No
2013 liabilities
April 24, Joint
Sales Co. Feb 18 2014 2,800 No No
2013 liabilities
Vehicle air April 24, Joint
Sept 18 2013 2,450 No No
conditioner 2013 liabilities
April 24, Joint
Sales Co. Apr 15 2013 2,400 Yes No
2013 liabilities
April 24, Joint
Sales Co. Oct 23 2013 3,150 No No
2013 liabilities
April 24, Joint
Sales Co. May 5 2013 3,600 Yes No
2013 liabilities
April 24, Joint
Sales Co. Nov 7 2013 4,950 No No
2013 liabilities
April 24, Joint
Sales Co. Jun 5 2013 4,950 Yes No
2013 liabilities
Vehicle air April 24, Joint
Jun 14 2013 1,500 Yes No
conditioner 2013 liabilities
Vehicle air April 24, Joint
Jun 14 2013 2,000 Yes No
conditioner 2013 liabilities
April 24, Joint
Sales Co. Dec 6 2013 2,800 No No
2013 liabilities
Vehicle air April 24, Joint
Jun 21 2014 3,500 No No
conditioner 2013 liabilities
Total of guarantee to
Total of guarantee to subsidiaries
39,300 subsidiaries actually occurred 40,900
approved in the report term (B1)
in the report term (B2)
Total of balance of guarantee
Total of guarantee to subsidiaries
actually provided to the
approved as of the report term 39,300 21,650
subsidiaries as of end of report
(B3)
term (B4)
Total of guarantee provided by the Company (i.e. total of the above two items)
Total of guarantee approved in the Total of guarantee occurred in
76,150 85,070
report term (A1+B1) the report term (A2+B2)
Total of guarantee approved as of Total of guarantee occurred as
76,150 45,570
end of report term (A3+B3) of the end of report term
Percentage of the total guarantee occurred (A4+B4) on net asset
416.83%
of the Company
In which:
Guarantees provided to the shareholders, substantial controllers
0
and the related parties (C)
Guarantee provided directly or indirectly to objects with over
85,070
70% of liability on asset ratio (D)
The part of total amount of guarantee exceeded 50% of net asset
77,820
(E)
Total of the above 3 * (C+D+E) 85,070
Particulars about combined guarantees
3. Other material contracts
The The other Date of Book Evaluated Name of Base date Pricing Price Related Relations Position
Company party of contract value of value of the of policy RMB000 transactio hip at the end
22
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
s party of contract asset asset evaluatin evaluatio 0 n or not of report
contract involved involved g institute n if any period
(RMB00 (RMB00 if any
00) if any 00) if any
4. Other material trades
None
IX. Commitment issues by shareholders with 5% or over of shares in the report period or
carried over to the report period from previous periods
Party of Content of Date of Term of Status of
Commitments
commitment Commitments commitment commitment fulfilling
Commitment in share equity relocation
Commitment made in acquisition report or
equity alternation report
Commitment at capital reconstruction
Commitments made at initial share issuing
or secondary issuing
Other commitments to mid-small
shareholders
Whether the commitment fulfilled duly Yes
X. Engaging or dismissing of CPAs
Whether the Intrim Report was audited or not
[] Yes [V] No
XI. Punishment and improving approach
Type of Index of
Conclusion (if
Name/title Type Causation investigation or Date of disclosure information
any)
punishment disclosure
Statement on improving approach
[] Applicable; [V] Not applicable
XII. Remarks on other material issues
To keep the Company listed in the stock exchange, and for the interest of investors, the
Board of Directors adopted the Stock Drawing Back Plan and approved at the 1st provisional
shareholders meeting 2013 thereafter. Namely the Companys stock will be drawn back on 4:1
23
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
basis. After the plan was implemented, the total capital share of the Company would be reduced
from 477,500,000 shares (yuan) down to 119,375,000 shares (yuan). For details please find the
Resolutions of the 9th Meeting of the 6th Term of Board, Announcement of Stock Drawing Back,
and Resolutions of the 1st Provisional Shareholders Meeting 2013 released by Securities Times,
Hong Kong Commercial Daily and http://www.cninfo.com.cn dated January 25, 2013 and February
23, 2013.
24
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Chapter VI. Change of Share Equity and Shareholders
I. Statement of change in shares
Before the change Changed Currently (+,-) After the change
Issuing of Bonus Transferred
Amount Proportion % Others Sub-total Amount Proportion %
new shares shares from reserves
I. Shares with trade
357,500,000 74.87% 0 0 0 0 0 357,500,000 74.87%
restriction conditions
1. State-owned shares 0 0% 0 0 0 0 0 0 0%
2. State-owned legal
339,625,000 71.13% 0 0 0 0 0 339,625,000 71.13%
person shares
3. Other domestic
17,875,000 3.74% 0 0 0 0 0 17,875,000 3.74%
shares
Incl. Shares held by
domestic legal 7,000,000 1.46% 0 0 0 0 0 7,000,000 1.46%
persons
Domestic natural
10,875,000 2.28% 0 0 0 0 0 10,875,000 2.28%
person shares
4. Share held by
0 0% 0 0 0 0 0 0 0%
foreign investors
Incl. Shares held by
0 0% 0 0 0 0 0 0 0%
foreign legal persons
Foreign natural
0 0% 0 0 0 0 0 0 0%
person shares
5. Management shares 0 0% 0 0 0 0 0 0 0%
II. Shares without
trading limited 120,000,000 25.13% 0 0 0 0 0 120,000,000 25.13%
conditions
1. Common shares in
0 0% 0 0 0 0 0 0 0%
RMB
2. Foreign shares in
120,000,000 25.13% 0 0 0 0 0 120,000,000 25.13%
domestic market
3. Foreign shares in
0 0% 0 0 0 0 0 0 0%
overseas market
4. Others 0 0% 0 0 0 0 0 0 0%
III. Total of capital
477,500,000 100% 0 0 0 0 0 477,500,000 100%
shares
Causation of change in share equity
[] Applicable; [V] Not applicable
Approval of change in share capital
[] Applicable; [V] Not applicable
Situation of registration process of transferred shares
[] Applicable; [V] Not applicable
Influences of the change of share equity on financial indices such as basic earning per share, dilluted earning per share, and net asset
per share attributed to common shareholders:
[] Applicable; [V] Not applicable
Other information the Company thinks necessary or required by the authority to be disclosed
[V] Applicable Not applicable
The Company was about to undertake stock drawing back plan. (For details please find the Resolutions of the 9th
Meeting of the 6th term of Board released on January 25, 2013 and the Resolutions of the 1st Provisional
25
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Shareholders Meeting 2013 released on February 23, 2013.) Upon completion of the stock drawing back plan, the
shareholding structure will be changed. For details please find the “Particulars about the change of shareholding
structure after completion of share drawing back plan” provided in the Announcement of Stock Drawing Back
released on January 25, 2013.
Change of total shares and shareholding structures, assets and liabilities
[] Applicable; [V] Not applicable
II. Number of shareholders and shareholding positions
in shares
Total shareholders at the end of the
15,284
report period
Shareholders with over 5% or above of the Companys shares
Frozen or
Share Shares held at Changed in Amount of Amount of pledged
Name of the Properties of
proportion the end of the report unconditional unconditional Status
shareholder shareholder
(%) report term period shares held shares of Amount
shares
China Southern
State-owned legal
Industry Group 71.13% 339,625,000 No change 339,625,000 0
person
Co., Ltd.
Domestic natural
Gu Zuocheng 1.89% 9,044,000 No change 8,875,000 169,000
person
Anhui
Hengsheng Domestic
Economic non-state-owned 1.46% 7,000,000 No change 7,000,000 0
Development legal person
Group Co., Ltd.
Domestic natural
Feng Yonghui 0.42% 2,000,000 No change 2,000,000 0
person
Shanghai Hong
Overseas legal
Kong Wanguo 0.27% 1,271,001 No change 0 1,271,001
person
Securities
Domestic natural
Wang Chuxin 0.22% 1,050,000 No change 0 1,050,000
person
Domestic natural
Chen Hanjie 0.13% 630,000 No change 0 630,000
person
Domestic natural
Huang Lianna 0.11% 539,800 No change 0 539,800
person
Domestic natural
Cai Yugui 0.11% 530,300 No change 0 530,300
person
Domestic natural
Peng Daqiang 0.09% 470,849 No change 0 470,849
person
Particulars about strategic investors
or general corporations becoming
None
among the top 10 shareholders due
to share placing (if any) (See Note 3)
There isnt any associated relationship between the sponsoring shareholder and the other
Notes to relationship or “action in shareholders among the top-10 list. None of them are regarded as Acting in concert in
concert” among the top ten accordance with The rules of information disclosure on change of shareholding. Foreign
shareholders. shareholders are unknown for their condition of Associated relationship and Acting in
concert.
Top 10 holders of unconditional shares
Amount of unconditional Category of shares
Name of the shareholder
shares held at end of period Category of shares Amount
Shanghai Hong Kong Wanguo Securities 1,271,001 Foreign shares placed in domestic exchange 1,271,001
Wang Chuxin 1,050,000 Foreign shares placed in domestic exchange 1,050,000
Chen Hanjie 630,000 Foreign shares placed in domestic exchange 630,000
Huang Lianna 539,800 Foreign shares placed in domestic exchange 539,800
Cai Yugui 530,300 Foreign shares placed in domestic exchange 530,300
26
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Peng Daqiang 470,849 Foreign shares placed in domestic exchange 470,849
Fang Hongzhen 432,201 Foreign shares placed in domestic exchange 432,201
Li Mingya 424,400 Foreign shares placed in domestic exchange 424,400
Luo Hongbo 400,000 Foreign shares placed in domestic exchange 400,000
Zhu Gengxin 391,811 Foreign shares placed in domestic exchange 391,811
Action-in-concert among top 10
It was not to the information of the Company that whether there was any related
non-restricted current share holders, top 10
relationship or action-in-concert among the top 10 unconditional current share holders,
non-restricted current share holders and top
and the top 10 shareholders.
10 shareholders
Particulars about shareholders took part in
financing or stock exchanging business (if None
any) (see Note 4)
Was there any agreed repurchasing trade by shareholders in the report period
[] Yes [V] No
III. Change of holding shareholder or substaintial controller
Change of holding shareholder
[] Applicable; [V] Not applicable
Change of substaintial controller
[] Applicable; [V] Not applicable
27
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Chapter VII. Particulars about the Directors, Supervisors and Senior
Executives
I. Change of shareholding of directors, supervisors and senior executives
[] Applicable; [V] Not applicable
No changes happened to any of the directors, supervisors, or executives in the report period. For details please refer to the Annual
Report 2012.
II. Leaving or dismissing of directors, supervisors, and executives
Name Jobs taken Type Date Causation
28
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Chapter VIII. Financial Report
I. Auditors’ Report
If the Interim Report is audited
[] Yes [V] No
The Semi-annual Financial Report is not audited.
II. The Financial Statements
All figures in the Notes to the Financial Statements are in RMB Yuan
1. Consolidated Balance Sheet
Prepared by: Chongqing Jianshe Motorcycle Co., Ltd.
In RMB Yuan
Items Closing balance Openning balance
Current asset:
Monetary capital 429,736,939.93 456,794,093.39
Settlement provision
Outgoing call loan
Transactional financial assets
Notes receivable 61,198,085.20 74,465,864.34
Account receivable 344,434,145.84 288,659,903.69
Prepayment 60,100,298.50 49,946,177.48
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable
Dividend receivable
Other account receivable 31,411,399.54 36,132,451.85
Repurchasing of financial assets
Inventories 321,295,556.74 290,979,725.84
Non-current asset due in 1 year
Other current asset
Total of current asset 1,248,176,425.75 1,196,978,216.59
Non-current assets
Disburse of consigned loans
Sellable financial asset
Expired investment in possess
Long-term receivable
Long-term share equity investment 682,267,219.56 683,560,523.11
Investment real estates
Fixed assets 799,086,736.61 825,584,794.37
Construction in process 22,952,154.97 15,642,058.43
Engineering goods
Fixed asset disposal 18,653.97
Production physical assets
Gas & petrol
Intangible assets 112,612,542.60 118,116,994.56
R&D expense 38,548,720.74 30,641,485.76
Goodwill
Long-term amortizable expenses 9,110,971.45 10,706,762.47
29
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Deferred income tax asset 3,123,854.35 3,123,854.35
Other non-current asset 612,000.00 816,000.00
Total of non-current assets 1,668,332,854.25 1,688,192,473.05
Total of assets 2,916,509,280.00 2,885,170,689.64
Current liabilities
Short-term loans 799,671,134.54 756,115,520.89
Loan from Central Bank
Deposit received and hold for others
Call loan received
Transactional financial liabilities
Notes payable 803,658,775.00 768,980,000.00
Account payable 577,133,256.73 502,109,222.01
Advances received 47,053,967.16 90,756,705.60
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 2,013,594.36 2,014,669.47
Tax payable 116,345,115.10 115,199,322.99
Interest payable
Dividend payable
Other account payable 33,825,978.14 26,566,279.30
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1 year 293,000,000.00 231,500,000.00
Other current liability
Total of current liability 2,672,701,821.03 2,493,241,720.26
Non-current liabilities
Long-term borrowings 130,800,000.00 246,200,000.00
Bond payable
Long-term payable
Special payable 738,000.00 738,000.00
Anticipated liabilities
Deferred income tax liability
Other non-recurring liabilities
Total of non-current liabilities 131,538,000.00 246,938,000.00
Total of liability 2,804,239,821.03 2,740,179,720.26
Owners’ equity (or shareholders’ equity)
Capital paid in (or share capital) 477,500,000.00 477,500,000.00
Capital reserves 602,890,317.59 602,880,517.59
Less: Shares in stock
Special reserves
Surplus reserves 125,686,000.00 125,686,000.00
Common risk provision
Retained profit -1,096,750,509.92 -1,063,624,266.50
Different of foreign currency translation
Total of owner’s equity belong to the parent company 109,325,807.67 142,442,251.09
Minor shareholders’ equity 2,943,651.30 2,548,718.29
Total of owners equity (or shareholders equity) 112,269,458.97 144,990,969.38
Total of liability and shareholders equity (or owners equity) 2,916,509,280.00 2,885,170,689.64
Legal representative: Li Huaguang CFO: Teng Feng Accounting Manager: Liao Jian
2. Balance Sheet of the Parent Company
Prepared by: Chongqing Jianshe Motorcycle Co., Ltd.
In RMB Yuan
Items Closing balance Openning balance
Current asset:
Monetary capital 121,075,066.75 98,471,012.44
30
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Transactional financial assets
Notes receivable 6,748,316.38 41,601,148.48
Account receivable 42,846,119.69 31,772,300.19
Prepayment 21,359,073.70 22,300,611.50
Interest receivable
Dividend receivable
Other account receivable 171,168,853.39 60,256,620.47
Inventories 73,557,410.18 75,514,644.92
Non-current asset due in 1 year
Other current asset
Total of current asset 436,754,840.09 329,916,338.00
Non-current assets
Sellable financial asset
Expired investment in possess
Long-term receivable
Long-term share equity investment 830,707,747.44 832,205,050.99
Investment real estates
Fixed assets 626,780,886.15 645,043,821.42
Construction in process 9,285,810.38 10,694,018.19
Engineering goods
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 91,107,090.88 96,431,840.98
R&D expense 38,548,720.74 30,641,485.76
Goodwill
Long-term amortizable expenses 2,306,949.37 3,211,035.43
Deferred income tax asset
Other non-current asset
Total of non-current assets 1,598,737,204.96 1,618,227,252.77
Total of assets 2,035,492,045.05 1,948,143,590.77
Current liabilities
Short-term loans 590,000,000.00 560,500,000.00
Transactional financial liabilities
Notes payable 278,000,000.00 273,000,000.00
Account payable 542,785,162.47 468,248,185.25
Advances received 3,079,066.22 6,669,564.17
Employees’ wage payable 1,282,343.06 1,130,732.50
Tax payable 118,672,313.55 125,615,885.22
Interest payable
Dividend payable
Other account payable 91,602,851.87 35,004,640.44
Non-current liability due in 1 year 95,000,000.00 100,500,000.00
Other current liability
Total of current liability 1,720,421,737.17 1,570,669,007.58
Non-current liabilities
Long-term borrowings 48,000,000.00 92,000,000.00
Bond payable
Long-term payable
Special payable 738,000.00 738,000.00
Anticipated liabilities
Deferred income tax liability
Other non-recurring liabilities
Total of non-current liabilities 48,738,000.00 92,738,000.00
Total of liability 1,769,159,737.17 1,663,407,007.58
Owners’ equity (or shareholders’ equity)
Capital paid in (or share capital) 477,500,000.00 477,500,000.00
Capital reserves 600,950,094.29 600,940,294.29
Less: Shares in stock
Special reserves
Surplus reserves 125,686,000.00 125,686,000.00
Common risk provision
Retained profit -937,803,786.41 -919,389,711.10
Different of foreign currency translation
31
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Total of owners equity (or shareholders equity) 266,332,307.88 284,736,583.19
Total of liability and shareholders equity (or owners equity) 2,035,492,045.05 1,948,143,590.77
Legal representative: Li Huaguang CFO: Teng Feng Accounting Manager: Liao Jian
3. Consolidated Income Statement
Prepared by: Chongqing Jianshe Motorcycle Co., Ltd.
In RMB Yuan
Amount of the Current Amount of the Previous
Items
Term Term
I. Total revenue 926,465,613.86 968,858,593.63
Incl. Business income 926,465,613.86 968,858,593.63
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 988,966,564.36 1,021,906,634.08
Incl. Business cost 794,114,222.16 814,535,168.88
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 9,109,594.93 11,529,258.24
Sales expense 56,501,111.61 61,805,964.91
Administrative expense 76,760,982.40 70,934,694.54
Financial expenses 52,395,890.25 58,650,249.34
Asset impairment loss 84,763.01 4,451,298.17
Plus: gains from change of fair value (“-“ for loss)
Investment gains (“-“ for loss) 28,962,896.45 19,789,628.97
Incl. Investment gains from affiliates 29,397,912.33 20,293,033.80
Exchange gains (“-“ for loss)
III. Operational profit (“-“ for loss) -33,538,054.05 -33,258,411.48
Plus: Non business income 914,603.13 380,369.83
Less: Non-business expenses 32,565.79 157,199.79
Incl. Loss from disposal of non-current assets 73,623.94
IV. Gross profit (“-“ for loss) -32,656,016.71 -33,035,241.44
Less: Income tax expenses 75,293.70
V. Net profit (“-“ for net loss) -32,731,310.41 -33,035,241.44
Including: Net profit realized by the entity taken over before the
takover
Net profit attributable to the owners of parent company -33,126,243.42 -33,707,653.70
Minor shareholders’ equity 394,933.01 672,412.26
VI. Earnings per share: -- --
(I) Basic earnings per share -0.0694 -0.0706
(II) Diluted earnings per share -0.0694 -0.0706
VII. Other misc. incomes
VIII. Total of misc. incomes -32,731,310.41 -33,035,241.44
Total of misc. incomes attributable to the owners of the parent
-33,126,243.42 -33,707,653.70
company
Total misc gains attributable to the minor shareholders 394,933.01 672,412.26
Legal representative: Li Huaguang CFO: Teng Feng Accounting Manager: Liao Jian
32
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
4. Income Statement of the Parent Co.
Prepared by: Chongqing Jianshe Motorcycle Co., Ltd.
In RMB Yuan
Items Amount of the Current Term Amount of the Previous Term
I. Turnover 915,410,829.46 984,607,056.86
Less: Operation cost 854,745,965.65 930,917,606.93
Business tax and surcharge 8,339,913.14 9,970,504.17
Sales expense 8,290,613.47 10,544,518.21
Administrative expense 57,067,182.54 53,528,756.14
Financial expenses 34,658,008.15 36,996,624.26
Asset impairment loss -45,535.88 558,876.57
Plus: gains from change of fair value (“-“ for loss)
Investment gains (“-“ for loss) 28,962,896.45 19,789,628.97
Incl. Investment gains from affiliates 29,397,912.33 20,293,033.80
II. Operational profit (“-“ for loss) -18,682,421.16 -38,120,200.45
Plus: Non business income 268,345.85 219,216.35
Less: Non-business expenses 12,690.18
Incl. Loss from disposal of non-current assets 8,938.40
III. Total profit (“-“ for loss) -18,414,075.31 -37,913,674.28
Less: Income tax expenses
IV. Net profit (“-“ for net loss) -18,414,075.31 -37,913,674.28
V. Earnings per share -- --
(I) Basic earnings per share -0.0386 -0.0794
(II) Diluted earnings per share -0.0386 -0.0794
VI. Other misc gains
VII. Total of integrated income -18,414,075.31 -37,913,674.28
Legal representative: Li Huaguang CFO: Teng Feng Accounting Manager: Liao Jian
5. Consolidated Cash Flow Statement
Prepared by: Chongqing Jianshe Motorcycle Co., Ltd.
In RMB Yuan
Amount of the Current Amount of the Previous
Items
Term Term
I. Net cash flow from business operation
Cash received from sales of products and providing of services 655,679,900.14 584,202,387.98
Net increase of customer deposits and capital kept for brother company
33
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
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 11,334,284.89 6,546,244.41
Other cash received from business operation 11,479,176.23 5,143,315.69
Sub-total of cash inflow from business activities 678,493,361.26 595,891,948.08
Cash paid for purchasing of merchandise and services 533,660,228.09 463,639,185.92
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 109,255,745.27 102,231,217.82
Taxes paid 15,771,556.13 28,642,320.15
Other cash paid for business activities 38,180,009.36 42,427,738.45
Sub-total of cash outflow from business activities 696,867,538.85 636,940,462.34
Cash flow generated by business operation, net -18,374,177.59 -41,048,514.26
II. Cash flow generated by investing
Cash received from investment retrieving 1,181.71
Cash received as investment profit 30,470,000.00 16,000,000.00
Net cash retrieved from disposal of fixed assets, intangible assets, and
1,850.00 3,721.35
other long-term assets
Net cash received from disposal of subsidiaries or other operational units
Other investment-related cash received 3,359.73 8,035,069.11
Sub-total of cash inflow due to investment activities 30,476,391.44 24,038,790.46
Cash paid for construction of fixed assets, intangible assets and other
8,857,897.34 34,134,994.90
long-term assets
Cash paid as investment
Net increase of loan against pledge
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment activities 8,857,897.34 34,134,994.90
Net cash flow generated by investment 21,618,494.10 -10,096,204.44
III. Cash flow generated by financing
Cash received as investment
Incl. Cash received as investment from minor shareholders
Cash received as loans 626,071,134.54 748,024,001.92
Cash received from bond placing
Other financing-related cash received 833,245,051.60 367,350,408.84
Subtotal of cash inflow from financing activities 1,459,316,186.14 1,115,374,410.76
Cash to repay debts 636,415,323.25 864,774,861.50
Cash paid as dividend, profit, or interests 56,575,611.69 54,948,383.96
Incl. Dividend and profit paid by subsidiaries to minor shareholders
Other cash paid for financing activities 761,611,083.98 160,919,769.62
Subtotal of cash outflow due to financing activities 1,454,602,018.92 1,080,643,015.08
Net cash flow generated by financing 4,714,167.22 34,731,395.68
IV. Influence of exchange rate alternation on cash and cash equivalents -1,037,268.14 187,514.56
V. Net increase of cash and cash equivalents 6,921,215.59 -16,225,808.46
Plus: Balance of cash and cash equivalents at the beginning of term 81,609,913.40 161,078,406.88
VI. Balance of cash and cash equivalents at the end of term 88,531,128.99 144,852,598.42
Legal representative: Li Huaguang CFO: Teng Feng Accounting Manager: Liao Jian
6. Cash Flow Statement of the Parent Co.
Prepared by: Chongqing Jianshe Motorcycle Co., Ltd.
34
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
In RMB Yuan
Amount of the Current Amount of the Previous
Items
Term Term
I. Net cash flow from business operation
Cash received from sales of products and providing of services 528,449,926.55 498,515,072.48
Tax returned 3,833,989.64 3,518,656.47
Other cash received from business operation 294,143.17 1,590,221.08
Sub-total of cash inflow from business activities 532,578,059.36 503,623,950.03
Cash paid for purchasing of merchandise and services 464,480,646.09 426,118,461.86
Cash paid to staffs or paid for staffs 83,520,212.50 78,878,864.63
Taxes paid 10,991,492.52 15,462,766.01
Other cash paid for business activities 11,693,009.43 10,880,852.43
Sub-total of cash outflow from business activities 570,685,360.54 531,340,944.93
Cash flow generated by business operation, net -38,107,301.18 -27,716,994.90
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment profit 30,470,000.00 16,000,000.00
Net cash retrieved from disposal of fixed assets, intangible assets, and
other long-term assets
Net cash received from disposal of subsidiaries or other operational units
Other investment-related cash received 3,036.29 8,005,552.48
Sub-total of cash inflow due to investment activities 30,473,036.29 24,005,552.48
Cash paid for construction of fixed assets, intangible assets and other
7,525,352.34 32,739,135.67
long-term assets
Cash paid as investment
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment activities 7,525,352.34 32,739,135.67
Net cash flow generated by investment 22,947,683.95 -8,733,583.19
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 499,000,000.00 568,500,000.00
Cash received from bond placing
Other financing-related cash received 1,528,592,481.14 1,236,001,035.11
Subtotal of cash inflow from financing activities 2,027,592,481.14 1,804,501,035.11
Cash to repay debts 519,000,000.00 741,500,795.56
Cash paid as dividend, profit, or interests 35,986,667.10 31,425,641.98
Other cash paid for financing activities 1,450,129,661.64 972,904,136.98
Subtotal of cash outflow due to financing activities 2,005,116,328.74 1,745,830,574.52
Net cash flow generated by financing 22,476,152.40 58,670,460.59
IV. Influence of exchange rate alternation on cash and cash equivalents 424.99
V. Net increase of cash and cash equivalents 7,316,535.17 22,220,307.49
Plus: Balance of cash and cash equivalents at the beginning of term 51,835,684.99 92,026,931.24
VI. Balance of cash and cash equivalents at the end of term 59,152,220.16 114,247,238.73
Legal representative: Li Huaguang CFO: Teng Feng Accounting Manager: Liao Jian
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
7. Statement of Change in Owners’ Equity (Consolidated)
Prepared by: Chongqing Jianshe Motorcycle Co., Ltd.
Amount of the Current Term
In RMB Yuan
Amount of the Current Term
Owners’ Equity Attributable to the Parent Company
Minor
Items Less: Total of owners’
Capital paid in (or Capital Special Surplus Common risk shareholders’
Shares in Retained profit Others equity
share capital) reserves reserves reserves provision equity
stock
I. Balance at the end of last
477,500,000.00 602,880,517.59 125,686,000.00 -1,063,624,266.50 2,548,718.29 144,990,969.38
year
Plus: Change of
accounting policy
Correcting of
previous errors
Others
II. Balance at the beginning
477,500,000.00 602,880,517.59 125,686,000.00 -1,063,624,266.50 2,548,718.29 144,990,969.38
of current year
III. Amount of change in
current term (“-“ for 9,800.00 -33,126,243.42 394,933.01 -32,721,510.41
decrease)
(I) Net profit -33,126,243.42 394,933.01 -32,731,310.41
(II) Other misc. income
Total of (I) and (II) -33,126,243.42 394,933.01 -32,731,310.41
(III) Investment or decreasing
9,800.00 9,800.00
of capital by owners
1. Capital inputted by owners
2. Amount of shares paid and
accounted as owners’ equity
3. Others 9,800.00 9,800.00
(IV) Profit allotment
1. Providing of surplus
reserves
2. Common risk provision
3. Allotment to the owners (or
shareholders)
36
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
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
IV. Balance at the end of this
477,500,000.00 602,890,317.59 125,686,000.00 -1,096,750,509.92 2,943,651.30 112,269,458.97
term
Amount of Last Year
In RMB Yuan
Amount of Last Year
Owners’ Equity Attributable to the Parent Company
Minor
Items Less: Total of owners’
Capital paid in (or Capital Special Surplus Common risk shareholders’
Shares in Retained profit Others equity
share capital) reserves reserves reserves provision equity
stock
I. Balance at the end of last year 477,500,000.00 603,180,517.59 125,686,000.00 -919,900,424.03 1,711,694.85 288,177,788.41
Plus: Retrospective adjustment
caused by merger of entities under
common control
Plus: Change of accounting
policy
Correcting of previous
errors
Others
II. Balance at the beginning of
477,500,000.00 603,180,517.59 125,686,000.00 -919,900,424.03 1,711,694.85 288,177,788.41
current year
III. Amount of change in current
-33,707,653.70 672,412.26 -33,035,241.44
term (“-“ for decrease)
(I) Net profit -33,707,653.70 672,412.26 -33,035,241.44
(II) Other misc. income
Total of (I) and (II) -33,707,653.70 672,412.26 -33,035,241.44
(III) Investment or decreasing of
capital by owners
1. Capital inputted by owners
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
2. Amount of shares paid and
accounted as owners’ equity
3. Others
(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
IV. Balance at the end of this term 477,500,000.00 603,180,517.59 125,686,000.00 -953,608,077.73 2,384,107.11 255,142,546.97
Legal representative: Li Huaguang CFO: Teng Feng Accounting Manager: Liao Jian
8. Statement of Change in Owners’ Equity (Parent Co.)
Prepared by: Chongqing Jianshe Motorcycle Co., Ltd.
Amount of the Current Term
In RMB Yuan
Amount of the Current Term
Items Capital paid in (or share Capital Less: Shares in Special Surplus Common risk Total of owners’
Retained profit
capital) reserves stock reserves reserves provision equity
I. Balance at the end of last year 477,500,000.00 600,940,294.29 125,686,000.00 -919,389,711.10 284,736,583.19
Plus: Change of accounting policy
Correcting of previous errors
Others
II. Balance at the beginning of current year 477,500,000.00 600,940,294.29 125,686,000.00 -919,389,711.10 284,736,583.19
III. Amount of change in current term 9,800.00 -18,414,075.31 -18,404,275.31
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
(“-“ for decrease)
(I) Net profit -18,414,075.31 -18,414,075.31
(II) Other misc. income
Total of (I) and (II) -18,414,075.31 -18,414,075.31
(III) Investment or decreasing of capital by
9,800.00 9,800.00
owners
1. Capital inputted by owners
2. Amount of shares paid and accounted as
owners’ equity
3. Others 9,800.00 9,800.00
(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
IV. Balance at the end of this term 477,500,000.00 600,950,094.29 125,686,000.00 -937,803,786.41 266,332,307.88
Amount of Last Year
In RMB Yuan
Amount of Last Year
Items Capital paid in (or share Capital Less: Shares in Special Surplus Common risk Total of owners’
Retained profit
capital) reserves stock reserves reserves provision equity
I. Balance at the end of last year 477,500,000.00 601,240,294.29 125,686,000.00 -772,034,270.87 432,392,023.42
Plus: Change of accounting policy
Correcting of previous errors
Others
II. Balance at the beginning of current year 477,500,000.00 601,240,294.29 125,686,000.00 -772,034,270.87 432,392,023.42
III. Amount of change in current term
-37,913,674.28 -37,913,674.28
(“-“ for decrease)
(I) Net profit -37,913,674.28 -37,913,674.28
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
(II) Other misc. income
Total of (I) and (II) -37,913,674.28 -37,913,674.28
(III) Investment or decreasing of capital by
owners
1. Capital inputted by owners
2. Amount of shares paid and accounted as
owners’ equity
3. Others
(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
IV. Balance at the end of this term 477,500,000.00 601,240,294.29 125,686,000.00 -809,947,945.15 394,478,349.14
Legal representative: Li Huaguang CFO: Teng Feng Accounting Manager: Liao Jian
40
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
III. Company Profiles
Chongqing Jianshe Motorcycle Co., Ltd. (the precursor is Shenzhen Northern Jianshe motorcycle Co., Ltd., hereafter referred as the
Company) was incorporated on July 19, 1995 by Jianshe Industry (Group) Co., Ltd. (Jianshe Group) and China Northern Industry
Shenzhen Co., Ltd. The business license was numbered 5000001805583 and the registered address was Chongqing. The B-stocks of
the Company was listed 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.
In 2012, Yangpu New Yufeng Investment Co. transferred 700 million shares to Anhui Hengsheng Economic Development
Ltd.
As to 31th December of 2012, the company has four subsidiaries, namely, Chongqing Jianshe Marketing LLC., Chongqing
Northern Import and Export Trade LLC., Chongqing Jianshe Vehicle-used Air-conditioning LLC. And Shanghai Jianshe
Motorcycle LLC. and three associates, namely, Chongqing Jianshe Yamaha Motorcycle Co., Ltd., Zhuzhou Jianshe Yamaha
Motorcycle Co., Ltd. and Chongqing Pingshan Taikai Co., Ltd.
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.
IV.Significant accounting policies and estimates and error correction of previous years
1. Basis of financial statement
The companys financial statements are prepared on a going concern basis and are prepared basing on transactions
and matters occurred actually. The financial statements are prepared in according with “Corporate Accounting
41
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Standards-The Principles” which was published by Ministry of Finance at 15 February 2006, and “the 38 specific
accounting standards”, its application guide, interpretations for accounting standards, and other relevant
regulations (collectively “CAS”). And the financial statements are prepared on the basis of accounting policies
and estimates expressed as followed. Financial statements are also be prepared with Prepared to publicly issue
securities according to the company information disclosure rules. 15 - the general provisions of the financial
reporting which is issued by China Securities Regulatory Commission.
2. Statement of compliance to the Enterprise Accounting Standard
Statement of the Company: the financial statements prepared by the Company basing on Note III “basis of financial statements” were
complying with the requirements of the Enterprise Accounting Standard and reflecting the financial positions, business results, and
cash flow in all material aspects truthfully, fairly, and completely.
3. Accounting period
A fiscal year is the year from January 1 to December 31 of the solar calendar.
4. Standard currency for bookkeeping
Renmingbi is the standard currency in book keeping.
5. Accounting treatment of the merging entities under common control and different control
(1) Merger of entities under common control
To the business combination under common control, the assets and liabilities obtained by the acquirer shall be measured at carrying
amount in the acquiree's accounts as at the date of combination. If the accounting policies which are applied by acquiree are
different from the acquirer, the carrying amounts shall be adjusted on the basis of the acquirers accounting policies.
The difference between the carrying amount of the net assets obtained and the cost of combination (or the total face value of shares
issued), capital surplus shall be adjusted. Where the capital surplus is not sufficient to o be subtracted, retained earnings shall be
adjusted.
The direct cost for the business combination of the combining party shall, including the expenses for audit,
assessment and legal services, be recorded into the profits and losses at the current period.
The handling fees, commissions and other expenses for the issuance of equity securities for the business
combination shall be credited against the surplus of equity securities; if the surplus is not sufficient, the retained
earnings shall be offset.
(2) Merger of enterprises under different control
For business combination under non-common control, the considerations of the acquirer are the fair value of assets paid, liabilities
occurred or undertaken and equity securities issued for the combination. The difference between the carrying amounts and the fair
value should be recorded as profit or loss.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
At the acquiring day, acquirer confirms the fair value of assets, liabilities, and contingent liabilities from acquiree.
For the surplus between of payment and the fair value of the acquiree, it shall be recorded as goodwill. Otherwise, it should be
recorded as losses.
Except intangible assets, assets of acquiree which bring benefits to acquirer and the fair values are estimated reliably during the
combination should be recognized respectively in fair value. Intangible assets in reliable fair value should be recorded independently.
Except the contingent liabilities of acquiree, other liabilities should be recognized in fair value respectively. Otherwise the contingent
value shall be recognized in fair value.
The Deductible temporary difference during the business combination cannot be confirmed if the conditions of deferred tax assets
cannot be satisfied. Before the 12th day after the combination, if the conditions of deferred tax assets are satisfied, DTA should be
recognized. Meanwhile, goodwill will be deducted. Where the goodwill is not sufficient to be subtracted, the differences shall be
recorded as profit or loss. Except the situation stated above, DTA shall be recognized and recorded in profit or loss.
For company consolidation under non-common control, auditing fees, law consultation fees, estimation fee and other relevant
management fees shall be recorded as profit or loss in acquirers. The buyer as of issuing equity securities or debt securities,
transaction costs, shall be included in the equity securities or the initially recognized amount of the debt securities.
6. Preparing method of consolidated financial statements
(1) Preparation of consolidated financial statements
The consolidation scope of consolidated financial statements is determined on the basis of control. The consolidated financial
statements include the financial statements of the Company and its subsidiaries. The subsidiaries are entities that are controlled by the
Company. It should be consistent with the main Company that the accounting policies adopted by all subsidiaries included in the
consolidated financial statements of the scope of consolidation and the accounting period. When the accounting policies or periods in
the subsidiary and the Company are inconsistent, the adjustment of the accounting policies or periods in the subsidiary is carried out
in accordance with the accounting policies or periods of the Company. For the subsidiaries acquired through business combination
under non-common control, their financial performance and cash flow shall be included in the consolidated financial statements from
the combination date, as long as they are under control by the Company. The consolidated financial statements are based on the
financial statements of the Company and its subsidiaries, according to other relevant information; it should be accordance with the
equity method adjustments on long-term equity investment prepared by the Company. When the consolidated financial statements of
the main company and its subsidiaries, parent company should offset the affects which are the consolidated balance sheet,
consolidated income statement, consolidated cash flow statement, consolidated equity table between the main company with the each
subsidiary and the internal transactions between each subsidiaries.
The equity and profit or loss which should occupy of the minority shareholders of subsidiaries should separately presented under the
owner's equity in the consolidated balance sheet and consolidated income statement net profit. The current losses that more than the
minority shareholders entitled to share in the owners' equity of the subsidiary's opening balance are shared by the minority
shareholders of subsidiaries, which decrease the equity of the minority shareholders. During the reporting period, if the increase in
43
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
business combinations under common control subsidiaries, it should adjust the opening balance of the consolidated balance sheet and
the income, expenses and profits of the subsidiaries from the combined beginning to the end of the reporting period should included
in the consolidated income statement; the cash flow of the subsidiaries from the beginning of the reporting period to the end should
also included in the consolidated statement of cash flows, at the same time, adjusting the comparative financial statements related
projects and the body of the report regarding that there has been in previous periods.
During the reporting period, if the increase in business combinations under uncommon control subsidiaries, it does not require to
adjust the opening balance of the consolidated balance sheet and the income, expenses and profits of the subsidiaries from the
acquisition date to the end of the reporting period should included in the consolidated income statement; The subsidiaries from the
acquisition date to the end of the reporting period cash flow is included in the consolidated statement of cash flows. When the
business Combinations which are under the uncommon control and through multiple transactions step-by-step implementation, the
options which is the equity before the acquisition date of the buyer who be purchased will be re- measured at fair value of the date of
purchase by the main company and the difference between the fair value and book value are included in investment income in the
current period. If the options which is the equity before the acquisition date of the buyer who be purchased involved in other
comprehensive incomes which have to transfer to the period when investment income of the date of purchase.
During the reporting period, if the Company disposed of a subsidiary, the income, expenses and profits of the subsidiary are included
in the consolidated income statement from the beginning to the disposal date and the cash flows of the subsidiary should be included
in the consolidated statement from the beginning to the disposal date. When the company loses control of a subsidiarys rights due to
the disposal of part of the equity investment or other reasons, the company after the disposal of the remaining equity investment will
be in accordance with the re- measured at fair value at the date of loss of control. The aggregate which is the price of disposal of
equity and the fair value of the remaining equity minus the proportionate calculation which should be entitled to the difference
between the shares of the net assets of the original continuous basis since the acquisition date have to include in the loss of control of
the current investment income. The other comprehensive incomes which are related to the former subsidiary's equity investment
should transfer to investment income when it is in loss of control.
The main company could enjoy the difference which is between the identifiable net assets share of the subsidiaries and the part of the
disposal of equity investments of subsidiaries without loss of control in the case of the disposal cost and disposal of long-term equity
investments which relative to the difference between the share of the net assets of subsidiaries, due to buy a minority stake in the
newly acquired long-term equity investment calculated in accordance with the new stake. Which means there all should round to
share premium in capital reserve in the consolidated balance sheet. If the share premium in capital reserve is insufficient to dilute, it
should adjusted to retained earnings.
(2) Accounting process on purchasing and selling, or selling and purchasing of the shares of the same
subsidiary in successively two years
7. 7、Cash and cash equivalents
44
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Cash comprises cash on hand and demand deposit. Cash equivalents refers to short-term, highly liquid investments that are readily
convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.
8. Foreign currency transactions
For any foreign currency transactions, they are recorded in functional currency. Transactions in currencies other
than the reporting currency are translated into the reporting currency at spot rate on the transaction dates.
Monetary assets and liabilities denominated in foreign currencies are restated into the reporting currency using the
rates of exchange ruling at the balance sheet date. The exchange gains or losses dealt with in the income statement,
except the exchange difference that is created by foreign-currency loan relating to the constructed or produced
assets that meet the capitalization condition is recognized as the cost of the assets before the assets reach the
expected usable or available-for-sale conditions.
Non-monetary items denominated in foreign currencies which are measured at historical cost are translated using
the exchange rates on their transaction dates. Non-monetary foreign items denominated in foreign currencies
which are measured at fair value are translated using the exchange rates on balance sheet date, and any difference
is recognized in income statement or other comprehensive income.
9. Financial instruments
Financial instruments are classified as financial assets, financial liabilities and equity tools.
(1)Classification of financial instruments
Financial assets recognized initially are classified as financial assets that are measured at fair value and its change
is recognized in profit or loss, account receivables, available-for-sale financial assets and held-to-maturity
investments that are measured at fair value and recognized in profit or loss. The classification of financial assets is
subject to the holding intention and holding ability of the company and its subsidiaries.
Financial liabilities recognized initially are classified as financial liabilities that are measured at fair value and its
change is recognized in profit or loss, and other financial liabilities.
Once the company becomes one side of financial instrument contract, the financial asset or liability is recognized.
(2) Recognition of financial instrument
a. The financial assets or liabilities of the company are measured initially at fair value.
The financial assets or liabilities are measured initially at fair value. Relevant expenses are recognized in gain or
loss.
Interest and cash dividends are recognized as investment revenue during holding period. Premium oor discount in
fair value shall be recorded in gain or loss.
Difference between fair value and initial cost shall be recorded as investment revenue. Fair value at the end of the
reporting period shall be recorded in gain or loss.
b. held-to-maturity investment
held-to-maturity investment is initially recorded in fair value and relevant costs.
45
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
the interests and cash dividends obtained over the period of assets held are recognized as investment income.
Interest rate will keep steady during held to maturity period.
when treating with the disposal, the difference between the amount received actually and the initial recorded
amount is recognized as investment income, and the changing gain or loss of fair value is adjusted.
c. account receivables
accounts receivables obtaining from selling goods and providing services, and other receivables except for those
with fair value in markets, include account receivables, other receivables, note receivables and prepayments.
Initial amount shall be written in contracts. Financial receivables is recognized in present value.
When treating with the disposal, difference between contract price and book value is recognized in gain or loss.
d. available-for-sale financial assets
the change of fair value of available-for-sale financial assets is recorded in capital reserve. The interests calculated
by the effective interest rate over the holding periods are recorded in investment income. The cash dividends from
the available-for-sale equity instruments are recorded in investment income at the time of the investee declaring
the dividend distribution. When treating with the disposal, the difference between the amount received actually
and the book value less the accumulated amount of fair values change that recorded in capital reserve previously
is recognized as investment income.
e. other financial liabilities
other financial liabilities is initially recognized in fair value and relevant costs. In subsequent period, book value
equals to initial amount deducts amortization.
(3) Recognition basis and measurement for transferred financial assets
Where an enterprise has transferred nearly all of the risks and rewards related to the ownership of the financial
asset to the transferee, it shall stop recognizing the financial asset. If it retained nearly all of the risks and rewards
related to the ownership of the financial asset, it shall not stop recognizing the financial asset.
To judge whether the transfer of a financial asset can satisfy the conditions as prescribed in these Standards for
stopping the recognition of a financial asset, the enterprise shall pay more attention to the essential of the transfer
of the financial asset.
(1) Book value of the financial asset to be transposed;
(2) The sum of price received due to the transposition, and the accumulation of change in fair value originally
accounted as owners equity (when the asset to be transposed is saleable financial asset).
If the transfer of partial financial asset satisfies the conditions to stop the recognition, the entire book value of the
transferred financial asset shall, between the portion whose recognition has been stopped and the portion whose
recognition has not been stopped, be apportioned according to their respective relative fair value, and the
difference between the amounts of the following 2 items shall be included into the profits and losses of the
current period :
(1) The book value of the portion whose recognition has been stopped;
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
(2) The sum of consideration of the portion whose recognition has been stopped, and the portion of the
accumulative amount of the changes in the fair value originally recorded in the owner's equities which is
corresponding to the portion whose recognition has been stopped (in the event that the financial asset involved in
the transfer is a financial asset available for sale).
If the transfer of financial assets does not satisfy the conditions to stop the recognition, it shall continue to be
recognized as financial assets and the consideration received shall be recognized as financial liabilities.
(4) Temination condition for recognition of financial liabilities
Only when the prevailing obligations of a financial liability are relieved in all or in part may the recognition of the
financial liability be terminated in all or partly. Where an enterprise (debtor) enters into an agreement with a
creditor so as to substitute the existing financial liabilities by way of any new financial liability, and if the
contractual stipulations regarding the new financial liability is substantially different from that regarding the
existing financial liability, it shall terminate the recognition of the existing financial liability, and shall at the same
time recognize the new financial liability.
Where an enterprise makes substantial revisions to some or all of the contractual stipulations of the existing
financial liability, it shall terminated the recognition of the existing financial liability or part of it, and at the same
time recognize the financial liability after revising the contractual stipulations as a new financial liability.
Where the recognition of a financial liability is totally or partially terminated, the enterprise concerned shall
include into the profits and losses of the current period the gap between the carrying amount which has been
terminated from recognition and the considerations it has paid (including the non-cash assets it has transferred out
and the new financial liabilities it has assumed).
If the company repurchase partial financial liabilities, at the repurchasing date, book value of the financial liability is confirmed
according to fair value of initial part and repurchased part. Difference between book value and initial purchasing price of releasing
financial liability shall be recorded in gain or loss.
(5) Recognition of fair values of financial assets and liabilities
The fair values of the financial assets or financial liabilities measured at fair value shall be determined by
reference to the quoted prices in the active market.
(6) Impairment test and basis of provisions on financial assets (exclude receivable accounts)
At balance date, the company will check the book value of all the financial assets except for those measured by
fair value and changes in fair value included in the gain or loss. If there are objective evidences that a financial
asset is impaired, impairment losses should be provided.
a.Provision for impairment of available-for-sale financial assets:
At the end of the accounting period if the fair value of available-for-sale financial assets decline severely, or it is
expected that this decline is not temporary after consideration of all relevant factors, we can affirm that it has been
impaired. Originally recorded in the owner the cumulative loss of the decline in fair value of equity shall be
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
transferred out, the impairment loss is recognized.
Impairment losses recognized on available-for-sale debt instruments, in a subsequent period, the fair value has
risen and objective matters occurring after the recognition of the impairment loss was recognized, the previously
recognized impairment loss shall be reversed, namely, the income statement.
Impairment losses of available-for-sale equity instruments, shall not be reversed through profit or loss.
b. Provision for impairment of held-to-maturity investments
Same approach as accounts receivable impairment loss measurement approach.
(7) If investment held to mature is recategorized to sellable financial assets, please state th intention or
evidence of change in capability
10. Recognition standard and providing basis of bad debt provision on receivable accounts
(1) Bad debt provision on receivable accounts with major amount individually
Basis of recognition or standard amount of individual account with Individual account receivable over 5 millions, other
large amount individual receivable over 3 millions
Account receivables with the significant amount and with the
objective evidence that can demonstrate the value has been
written down are made bad debt provision in accordance with
Basis of bad debt provision the difference of the present value of future cash flows less
than the book value. Account receivables with the significant
amount that are not written down through individual check
are made bad debt provision by account aging analysis
(2) Receivable accounts on which bad debt provisions are provided as groups
Name of the portfolio Basis of bad debt provision Basis of recognition for portfolios
Method of bad debt provision of Method of bad debt provision of risk group (Age analysis
Age analysis method
risk group method)
Bad debt provisions are provided on age analyze basis in the portfolio
[V] Applicable Not applicable
Age Rate for receivables (%) Rate for other receivables (%)
1-6 months (included) 0% 0%
6-12 Months 5% 5%
1-2 yrs 10% 10%
2-3 yrs 30% 30%
3-4 yrs 50% 50%
4-5 yrs 80% 80%
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
over 5 yrs 100% 100%
Bad debt provisions are provided on percentage basis in the portfolio
[] Applicable; [V] Not applicable
Bad debt provisions are provided on other basis in the portfolio
[] Applicable; [V] Not applicable
(3) Receivable accounts with minor amount but bad debt provisions are provided individually
For receivables with minor individual amount but with physical evidence showing
Basis of providing bad debt individually
that impairment has already happened.
Bad debt provision provided at the balance of future cash flow lower than the book
Basis of bad debt provision value (individual recognition). No bad debt provision shall be provided upon related
parties in the consolidation range.
11. Inventories
(1) Inventory classification
Raw materials, ready-for-sale products, and products in process.
(2) Pricing of inventory to be delivered
Pricing base: weighted average
When inventories are delivered, the effective costs are recognized by weighted average method.
(3) Recognition of realizable net value of inventory and providing of inventory impairment provision
At the year end, complete check of the inventories shall be carried out and on the date of balance sheet, the
inventories shall be measured whichever is lower in accordance with the cost and the net realizable value.
The net realizable value of inventories (finished products, stock commodity, material etc.) held for direct selling
in the daily business activity shall be calculated by deducting the estimated sale expense and relevant taxes from
the estimated sale price of inventories. The net realizable value of inventories for further processing in the daily
business activity shall be calculated by deducting the estimated cost of completion, estimated sale expense and
relevant taxes from the estimated sale price of inventories. The net realizable value of inventories held for the
execution of sales contracts or labor contracts shall be calculated on the ground of the contract price. If an
enterprise holds more inventories than the quantities subscribed in the sales contract, the net realizable value of
the excessive part of theInventories shall be calculated on the ground of the general sales price.
The Company shall make provision for loss on decline in value of inventories on the ground of each item of
inventories at the year end. For inventories with large quantity and relatively low unit prices, the provision for
loss on decline in value of inventories shall be made on the ground of the categories of inventories.
When the circumstances of deducting the inventory value have eliminated, the deducted amount should be
restored and written back within the original amount of impairment provision provided previously.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Net realizable value of inventories are market price at balance date unless any indication that the market price at balance date
appears abnormally.
Evidence of abnormal price at balance date:
At the end of the reporting period, evidence of inventories net realizable value:
a. the net realizable net of finished goods is the estimated selling price less the estimated costs to sell and the
relevant tax; b. 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; c.the net
realizable value of held-for-sale materials is the market price.
(4) Inventory system
Inventory system: perpetual inventory system
The Company use perpetual inventory system.
(5) Amortization of low-value consumables and packaging materials
Low price consumable
Basis of amortizing: one-off
Low-value consumables are amortized by one-off write-off method.
Packaging materials
Basis of amortizing: one-off
Packing materials are amortized by one-off write-off method.
12. Long-term equity investment
(1) Recognition of initial investment costs
a. The initial costs of the long-term equity investments obtained by the combination.
Under common control, company pays cash, non-monetary assets, taking on bet or issuing equity bond as the
price of consolidation. The initial costs should be recognized in terms of the book value of owners equity in the
acquiree. Difference between long-term equity investments and purchasing price shall be adjusted in premium of
capital reserves. Residual amount will be adjusted in retained earnings. Costs which include auditing expenses,
estimation expenses and law consultation expenses, shall be recorded in gain or loss.
Under non-common control, initial costs should be recognized in terms of the consolidation costs at the
acquisition costs. The initial costs of the long-term equity investment obtained by cash are the acquisition price
paid actually. The initial costs of the long-term equity investment obtained by equity securities issued are the fair
value of equity securities issued. The investment from investor is recorded at value agreed in the investment
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
contract as initial cost. The initial costs of the long-term equity investment obtained by exchange of non-monetary
assets or debt restructure are recognized in accordance with the regulation of Standards.
b. other long-term equity investments
long-term equity investments which is obtained by cash shall be recognized as actual amount paid.
Long-term equity investments which is obtained by issuing equity bonds shall be recognized as fair value of
bonds.
Investor shall recognize the contract price as the initial cost except for those contracts without fair value.
In actual business transactions, long-term equity investments which are exchanged by non-monetary assets shall
be recognized in fair value of assets outputs, unless the fair value of assets inputs are more reliable. If the fair
value is not reliable, book value and other expenses of assets output will be recorded as initial cost.
Long-term equity investments obtaining by liabilities restructuring will be recognized in its fair value.
(2)Subsequent measurement and recognition method of gain or loss
a. Subsequent measurement
When the company do long-term equity investments in subsidiaries, cost method will be used. When the company
is preparing financial statement, equity method will be used.
Cost method will be used if the company does not have control or significant influence to investee. There is no
market price or reasonable far value will be at the same situation.
Otherwise, equity method will be used. When initial investing cost is higher than net reliable assets value, there is
no adjustment in initial cost of long-term equity investment. On the other hand, the difference shall be recorded in
gain or loss.
Subsequent measurement when owners equity changed in investees:
As steady percentage of holding shares in investees, gain or loss shall be computerized as the ration of holding
shares. Book value of long-term equity investments shall be adjusted. Capital reserves will be adjusted either.
b. Recognition of gain or loss
Under cost method, accounting policies and accounting periods shall be the same in the company and its
subsidiaries. Any difference shall be adjusted according to the methods in parent company. Depreciation and
amortization based on fair value of fixed assets, intangible assets hall be adjusted. Inter-group transaction in joint
ventures shall be adjusted. Investees gain or loss shall be recognized.
As the investees loss is recognized, the order of accounting treatment will be:
First of all, book value of long-term equity investment will be deducted. Then, when book value is not sufficient
to be deducted, other actual book value of long-term investments will be deducted. Last, beside the liabilities
written in contracts, expected liabilities will be recognized as accrued liabilities. As the investees gain is
recognized, accounting treatment shall be opposite as the statement above.
During the period of holding the investment, net gain and other equity changes shall be recogized as their amount
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
in the consolidate financial statements.
(3) Basis to recognize common control and material influence on invested entities
Common control is the mutual control of investors over an economic action basing on a contract, only effective when it is agreed by
all of the investors who have the share of control on the financial and business control power. When the investors hold common
control over the investee, the investee is regarded as their affiliate. Significant influences mean an entity has the power to participate
in the decision making of another, but cannot dominate individually or jointly with other parties. When the investor may significantly
influence the investee, the investee is regarded as the affiliate.
(4) Impairment test and providing of impairment provisions
Under significant influence, long-term equity investments without market price or fair value shall be impaired
according to difference between fair value and present value as the similar financial instruments.Except goodwill
by business combination, if there is any evidence to impairment loss, or recoverable amount is lower than book
value, the difference shall be recognized as impairment loss. Once made provision for impairment loss, it cannot
be reversed in the subsequent accounting periods.
13. Investment property
14. Fixed assets
(1) Recognition of fixed assets
The term "fixed assets" refers to the tangible assets that simultaneously possess the features as follows: (1) They are held for the sake
of producing commodities, rendering labor service, renting or business management; and (2) Their useful life is in excess of one
fiscal year.
(2) Recognition and pricing of fixed asset leased by financing
(3) Depreciation of different fixed assets
Depreciation method shall be recognized in yearly average method according to category of fixed assets, expected useful life and
expected residual value. Different parts of an asset shall use different depreciation method according to different useful life and
contribution to benefit.
Fixed assets rented in by finance, if it is reasonably predictable that the property rights can be acquired when the
rental period is expired, depreciation will be upon the retained useful life. If it cant be reasonably predictable that
the property rights can be acquired when the rent period is expired, depreciation will be upon the shorter one of
the rental period and the retained useful life.
Categories Depreciation age (year) Salvage Value Rate (%) Annual depreciation rate (%)
Houses & buildings 30-35 3% 2.77-3.23
Equipment & machinery 7-14 3% 6.93-13.86
Transportation equipment 8 3% 12.13
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Office device and others 5 3% 19.40
(4) Impairment test and providing of impairment provisions on fixed assets
On each balance sheet date, the Company made assessment on whether or not there is any indication of potential
impairment of fixed asset.
If there is any evidence that indicates the possibility of impairment, it will be taken the impairment test to
recognize its recoverable amount and should be made provision at the lower of the carrying value and the
recoverable cost. Once made provision for impairment loss, it cannot be reversed in the subsequent accounting
periods.
The recoverable amount of fixed asset is the higher of present value of the expected cash flow and its fair value
less costs to sell. The net amount of the fair value of the fixed asset less the disposal costs is recognized in
accordance with the amount of the agreed price in contract less the amount that are attributable directly to the
disposal costs, if there has the agreed price in the contract. Or if there has no fair trade agreement but has the
active market or the trade price of like-asset, the net amount of the fair value is recognized in terms of the market
price less the disposal costs. Or the recoverable amount of the net amount of the fair value that cannot be
estimated reliably is recognized as the present value of expected future cash flows over the periods of the fixed
asset held and disposed.
(5) Other remarks
15. Construction-in-process
(1) Categories of construction-in-process
Constructions in process are accounted at each category.
(2) Standard and timing for transferring of construction-in-process to fixed assets
The entire expenses occurred before the construction-in-process reaches useable status are recognized as the book value of the fixed
asset. When the construction-in-process has reached the useable status but not performed completion settlement, it is transferred into
fixed asset at estimated value according to the budget and actual costs since the day when it reaches the useable status. Depreciation
shall be provided according to the Companys policies about fixed asset depreciation. Upon completion of the settlement process, the
original estimated value should be adjusted according to the actual costs. However the depreciations already provided are not going
to be adjusted.
(3) Impairment test and providing of impairment provisions on construction-in-process
On each balance sheet date, the Company made assessment on whether or not there is any indication of potential impairment of
construction in progress.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
In case any construction in process were impaired, its recoverable value shall be estimated. In case there is
evidence showing that any construction in process were impaired, the Compay shall estimate the recoverable
amount basing on the individual project. In case it is hard to estimate the recoverable value, it shall be evaluated
along with the group of constructions in process.
The recoverable amount of construction in progress is measured at the higher of the assets fair value less costs to sell and the present
value of the expected cash flow.
If the recoverable value is lower than the book value of the particular construction in process. The book value of
the construction shall be written down to the recoverable amount. The written down amount shall be recognized as
impairment loss of the project and accounted into cuurent gain/loss account. Impairment provisions shall be
provided correspondingly.
Impairment loss shall not be written back as soon as recognized.
16. Borrowing expenses
(1) Principle of the recognition of capitalized borrowing costs
Borrowing costs include loan interest, discount or premium amortization, ancillary expenses and exchange
differences.
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset
shall be capitalized as part of the cost of that asset. And other borrowing costs are debited to the income statement
according to the recognition of the incurred amount.
A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or
sale, those qualifying asset could be fixed assets, investment property and inventories.
Loan interest will be capitalized when:
a. Assets expenses which include cash paid for constructing and producing capital, cost for converting
non-monetary assets or other liabilities have happened.
b. Loan expenses have happened.
c. The activities which prepared for basic construction and production have started.
(2)Computation method of the capitalization amount
The period of capitalization is from the time point of borrowing costs starting capitalization to the time point of
ending capitalization. The period of capitalization suspended is excluded.
The capitalization should be suspended if the process of construction or production is interrupted improperly.
The capitalization should be suspended if the assets have been achieved individually.
The capitalization should be suspended if the whole process of construction or production is interrupted even if
some part of it have been achieved already.
(3) Suspended period of capitalization
The capitalization which is suspended over 3 months will purse to be capitalized. If the suspending is necessary
process to achieve construction or production of the assets, borrowing costs shall be continue to be capitalized.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
During the suspending period, borrowing expenses shall be recorded in income statement. Until the restart of the
activities, borrowing expenses will be capitalized.
(4) computation of capitalization amount
The computation of the capitalization amount：①the special borrowing is recognized by the interest expenses
incurred actually in current period of special borrowing less the interest income from unused borrowings
deposited in bank or the investment income from temporary investments；②using normal borrowings is
calculated by the weighted average amount of accumulated asset expenditure exceeding the special borrowing for
the asset expenditure times the capitalization rate of normal borrowings. The capitalization rate is calculated
using weighted average borrowing rate；③the amortized amount of the discounted value or premium of
borrowing in every accounting period is recognized by the effective interest rate, and the interest amount in every
period is also adjusted.
The effective interest method is the method used to calculating its amortized value or premium or interest
expenses by the effective interest rate of borrowings. The effective interest rate is the rate used to discounting the
future cash flows in the expected continual periods as the book value of the borrowing.
17. Biological assets
18. Petrolum assets
19. Intangible assets
(1) Pricing of intangible assets
a. Initial recognition
Cost of purchased intangible assets includes purchase cost, tax expenses, other expenses contributing to the
intangible assets. Purchase cost which is paid out of the contract period is financial cost. Actual cost of purchasing
intangible assets shall be recorded as its present value. Intangible assets from liabilities restructuring should be
recognized in its fair value. The difference between its book value and fair value shall be recorded in gain or loss.
In non-monetary assets exchanges, intangible assets is recognized in fair value of the old asset if the transaction is
substantial and its fair value is measured reliably unless the new asset is more reliable. Except for the situation
above, book value of old asset and relevant tax expense will be recorded as the cost of intangible assets.
Companies under common control, intangible assets which come from business consolidation are recognized in its
book amount. Under non-common control, the fair value will be the amount in recognition of intangible assets.
Costs of self-development intangible assets include: material of research and development, labor cost, registered
cost, amortization of other patent which is used in development and other interest expenses which is capitalized.
Other direct expenses which is for getting the purpose of the intangible assets will also be recorded.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
b. subsequent measurement
When the intangible assets are recognized, useful life of intangible assets should be analyzed.
The subsequent measurement of intangible assets is: ①the intangible assets with finite life are amortized using
straight-line method, and at the end of reporting period, the life and amortization method is reviewed. If there is
difference with the previous estimates, the adjustment will be carried out; ② the intangible assets with infinite
life are not amortized. At the end of reporting period, however, the life is reviewed. If there is any evidence that
can demonstrate the life is finite, the life of intangible assets will be estimated and amortized by straight-line
method.
(2) Estimation of service life of intangible assets with limited service life
At the end of the year, review the amortization method and finite useful life of intangible life.
There is no difference of amortization method and useful life as expected.
Items Expected useful life Basis
Land using right Useful life in certificate Certificate
Non-patent technologies 3 yrs Reasonable expectation
(3) Intangible assets without certain useful life
There is no intangible assets with infinite life as at the end of this period.
(4) Providing of intangible asset impairment provisions
Intangible assets with infinite life shall be impaired if there is evidence showing that. Impairment test shall be done at end of period.
Intangible assets with infinite life shall be impaired at end of each period.
Impairment test shall be done on the intangible asset to estimate its recoverable value. When evidence showing
that impairment may has happened to an intangible asset, its recoverable value shall be estimated basing on the
particular asset. If it is hard to estimate the recoverable amount, it shall be evaluated along with the group of assets
with similar characteristics.
The recoverable amount of construction in progress is measured at the higher of the assets fair value less costs to
sell and the present value of the expected cash flow.
When the result of prediction shows that the recoverable amount is lower than its book value, the book value
should be reduced down to the recoverable amount. The deducted amount is recognized as asset impairment loss,
accounted as gain/loss of current term, asset impairment provision is provided correspondingly.
As soon as the impairment on the intangible asset has been recognized, the depreciation or amortizable expense
shall be adjusted in proceeding periods, so that the book value of the intangible asset shall be amortized to the
retained useful life (after deducting of predicted residue value).
Impairment of intangible asset shall not be written back as soon as being recognized.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
(5) Dividing of research stage and development stage of internal R&D projects
The specific standards of differentiating research stage and development stage of internal R&D projects：
Research stage is the planned research for obtaining knowledge of new technology, the preparation for further development.
Development stage is applying specific researching results and other technologies to some plans or designs to produce new material,
devices and products.
(6) Accounting of internal R&D expenses
In development stage, costs will be recognized as intangible assets if satisfied:
a. the technical availability of finishing the intangible asset that can be used or sold; b. equipped with the intention
of use and sale after the completion of the intangible asset; c. 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; d. 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； e. the
expenditure on the development stage of the intangible asset can be measured reliably.
Development stage is applying specific researching results and other technologies to some plans or designs to
produce new material, devices and products. This phase to a great extent, has formed a basic requirement of a new
product or new technology.
According to the actual situation of the company, the period between estimation and production is development
stage. The cost of the project will be capitalized with capitalization criteria satisfied.
Projects of basic technology research belongs to research stage. All the cost of this stage is recorded in gain or
loss.
20. Long-term expenses to be amortized
Long-term expenses are those which already occurred and amortizable to the current period and proceeding
periods for over one year. Long-term expenses are amortized straightly to the beneficiary period.
21. Asset transferring with repurchasing terms
22. Anticipated liabilities
When the Company is involved with any lawsuit, guarantee for liabilities, or capital reorganizing, and the amount
of the expectible asset or services to be delivered is able to be measured reliably, it is recognized as anticipated
liabilities.
(1) Recognition of expectible liabilities
When all of the following conditions are satisfied, expectible liabilities are recognized.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
(1) This responsibility is a current responsibility undertaken by the Company;
(2) Executing of the obligation will cause outflowing of benefits.
(3) Amount of the liability can be reliably measured.
(2) Accounting of expectible liabilities
Expectible liabilities are measured initially according to the best estimation of amount to be paid when fulfilling
of the current liabilities.
23. Share payment and equity instruments
(1) Category of share payment
(2) Recognition of fair value of equity instruments
(3) Recognition basis of best estimation of exercisable equity instruments
(4) Accounting treatment of share payment plan to be implemented, revised, and terminated
24. Repurchasing of the Company’s shares
25. Revenue
(1) Recognition time for sales of goods
a. General principles of revenue recognition and measurement
① the risks and rewards of ownership have been transferred to buyers；② the company neither maintains the
right of continuing management that is related to ownership, nor implements control over goods sold；③ the
amount of revenue can be measured reliably；④ the future economic benefits probably flow to the company；
⑤ the relevant cost of goods sold that is incurred or will be incurred can be measured reliably.
b. Sales confirmation standard and the specific revenue recognition time judgment standard
①Motorcycle and engine mainly have the right to charge a price for finished goods warehouse and affirm income
for the basis ②Automotive air conditioner and fittings mainly have the right to charge a price to customer
acceptance and affirm income for the basis.
c. Accounting method of selling goods is normally same as other companies in the same industry.
(2) Transfer of asset-use right
Revenue arising from the transfer of asset-use right shall be recognized only when both of the following
conditions are satisfied: it is probable that the associated economic benefits will flow to the enterprise; the amount
of the revenue can be measured reliably.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
a. Amount of interest income, according to others to use the enterprise monetary fund of the calculate and
determine the time and real interest rates; b.Royalty revenue amount, in accordance with the relevant contract or
agreement, time and method to calculate and determine the fee
(3) Basis of recognizing service income
(4) Basis and method to determine completion progress for income from service providing and construction
contracts on percentage basis
At balance date, service providing transaction is measured reliably which will be recognized in percentage of
achievement. The recognition of service providing income depends on the percentage of achievement. In
accordance with the received or receivable ascertain the total revenue from the services of the contract or
agreement, received or the fair price stipulated in the contract or agreement is excluded. At the balance date,
working completion percentage times total service income substrates the service income which has been
recognized will be service income for this period. Meanwhile, working completion percentage times total service
cost substrates service cost which has been recognized will be service cost for this period.
At the balance date, service income and cost cannot be recognized reliably:
a. service cost which is expected to be recognized shall be recorded as service income. And the cost shall be
recorded.
b. service cost which is not expected to be recognized will be recorded in profit or loss in the period. And there is
no service revenue.
26. Government grants
(1)Types of government grant
Government grants include government grant related to assets and government grant related to income.
(2)Accounting treatment of government grants
Government grant that is related to fixed assets and intangible assets is recognized as deferred income and
allocated average over the relevant periods of usable life and recorded in other revenue.
Government grant related to income is treated as：①if the grant is a compensation for related expenses or losses
to be incurred by the Company in subsequent period, the grant shall be recognized as deferred income, and
recognized in profit or loss over the periods in which the related costs are recognized; ②if the grant is a
compensation for related expenses or losses that have incurred is recognized directly in income statement.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
27. Deferred income tax asset and deferred income tax liabilities
Deferred tax assets are recognized as the amount of income tax recoverable in future periods in respect of
deductible temporary difference.
Temporary difference will be recognized as deferred tax liability except for special situations.
The special situations that DTL or DTA will not be recognized:
Initial recognition of goodwill;
Except for enterprise merger, other transactions which will not affect the amount of revenue or tax payable.
When the company has legal right to calculate the net amount, and has intentions to receive assets or repay
liabilities in net amount at the same time, DTA and DTL in the period shall be recognized in the net amount after
amortization.
When the company has legal right to calculate DTA and DTL, and deferred tax assets and deferred tax liabilities
are with the same tax collection departments which is related to the income tax rate for the same entity or are
related to different tax payment main body, DTA and DTL in the period shall be recognized in the net amount
after amortization.
At the end of reporting period, if there is any evidence that can demonstrate the company probably recovers the
sufficient amount of income tax in future period offsetting deductible temporary difference, the deferred tax assets
unrecognized in previous accounting periods are recognized. If the company probably cannot recover the adequate
amount of income tax in future period offsetting deductible temporary difference, the book value of deferred tax
assets is written down.
To taxable temporary difference related to the subsidiaries and joint venture, the deferred tax liabilities are
recognized, unless the company can control the reverse time of temporary difference and this temporary
difference cannot be reversed in foreseeable future probably. To deductible temporary difference related to the
subsidiaries and joint venture, the deferred tax assets are recognized when this temporary difference can be
reversed in foreseeable future probably and the company can probably recover the sufficient amount of income
tax offsetting deductible temporary difference.
28. Operational leasing and financial leasing
(1) Accounting of operational leasing
a. Rent paid by the company ( with the free-rent periods) is amortized in straight line method to profit or loss.
Relevant rent fee will also be recognized as costs.
The relevant rent fee paid by lesser should be deduct from the total rent cost. The rest of rent cost will be
amortized in straight line method and recognized as cost.
b. As a lesser, the company should record rent received ( with the rent-free periods) as rent income which is
60
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
amortized in straight method. Relevant rent fees paid by the company should be recorded as costs. For large
amount of the costs, it will be capitalized. Throughout the lease period according to the basis of the same as the
rental revenue recognition in installment plan enter current earnings.
Rent costs paid by the company should be eliminated from the total rent income. Rest of the income will be
amortized during the leasing period.
(2) Accounting treatment of financed leasing
(3) Accounting treatment of renting back after sales
29. Sellable assets in possession
(1) Recognition criteria
Non-current assets which satisfy the conditions below will be recognized as assets held for sale:
a. Company have make any decision on the asset sale transaction.
b. The company has signed an irrevocable transfer agreement.
c. The asset transfer will be completed in one year
(2) Accounting method
For non-current assets conform to the conditions of holding for sale( excluding financial assets and DTA), picking
the lower one between book value and fair value minutes costs as the other current assets. Assets impairment loss
will be recognized if fair value minutes costs is lower than book value.
30. Securitilization of asset
31. Hedging instruments
32. Change of main accounting policies and estimations
Is there any material change of accounting policies occurred in the year.
[] Yes [V] No
No change in current reporting period.
(1) Change of accounting policies
Is there any change in accounting policies in the report period
[] Yes [V] No
(2) Change of accounting estimations
Is there any change in accounting estimations in the report period
61
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
[] Yes [V] No
33. Correction of accounting errors in previous period
Is there any accounting error with previous period found in the report period
[] Yes [V] No
No
(1) Retrospective restatement
Is there any retrospective restatement on the accounting error with previous periods done in the report term
[] Yes [V] No
There is no correction of prior period errors in this period.
(2) Future adoption method
Is there any future adoption method applyable to accounting errors with previous periods found in the report period.
[] Yes [V] No
There isnt any future adoption method applyable to accounting errors with previous periods found in the report period.
34. Other principal accounting policies, estimations and preparation method of financial statements
V. Taxation
1. Main categories and rates of taxes
Class of tax Tax basis Tax rate
Calculated on tax law from selling goods and taxable services based on the calculation of output
VAT tax, after deduction of input tax deductibility of the current period, the balance part of VAT 17%
payable
Consumption tax Revenue of taxable consumables 3%
Operational tax Revenue of leasing and taxable services 5%
City maintenance and
Value-added tax, operating tax and consumption tax paid 7%
construction tax
15%、
Enterprise income tax Taxable income
25%
Income tax rate applyable to branches and factories.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
2. Preferential tax and approving documents
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 Cai Shui[2011]No. 58Notice of implementation of tax
policies of Western large-scale development, Corporate income tax of the company and its subsidiary (Chongqing Jianshe
Vehicle-used Airconditioning LLC.) is paid at the rate of 15%.
Corporate income tax of other subsidiaries is paid at the rate of 25%.
The companys export tax rebate rate of Motorcycle is 14%, according to the regulation of Notice of increasing export tax rebate
rate of parts of machinery products (Cai Shui [2008] No. 177) issued by the Ministry of Finance and State Taxation Administration.
3. Other statements
63
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
VI. Enterprise Merger and Consolidating of Financial Statements
1. Particulars of the subsidiaries
(1) Subsidiaries obtained through incorporation or investment
In RMB
Balance of the
owners equity of
parent co. after
Amount for deducting of the
Balance of
deducting exceeding part of
other items
Minor minor minority
Full name Ownership Actual actually
Reg. Business Registered Business Share Voting shareholders shareholders
of the of the investment at formed net Consolidated shareholders’
Add. property capital Scope proportion % power % equity in the share of loss over
subsidiary subsidiary year end investment equity minor the share of
in the
shareholders minority
subsidiaries
equity shareholders in
the owners
equity at
beginning of year
Sale of motorcycle and
its parts, Vehicle-used
airconditioning,
electromechanical
Chongqing
products (exclude
Jianshe
Limited automobile), metal
Motorcycle
liabilitycompany
Chongqing Domestic sales 1,200
materials (exclude 12,000,000.00 100% 100% Yes
Marketing
precious metal),
Co.,Ltd.
household appliances,
maintenance and
repair of household
appliances
Chongqing Manufacturing, sale Yes
Jianshe and repair of
Limited Chongqing manufacture
Vehicle-used
liabilitycompany sales
16,000 Vehicle-used 160,000,000.00 100% 100%
Airconditioning airconditioning and its
LLC. parts
Guangxi Jianshe Yes
Sale of motorcycle and
Motorcycle LLC Nanning Sales 150
its installation kits 780,000.00 52% 52%
Co.,Ltd.
Chengdu Yes
Wholesale and retail
Jianshe
of Jianshe
Motorcycle LLC Chengdu Sales 50
motorcycle and its 500,000.00 100% 100%
Marketing Co.,
installation kits
Ltd.
Huhehot Jianshe Wholesale and retail
Motorcycle
LLC Huhehot Sales 50
of motorcycle and its 500,000.00 100% 100% Yes
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Marketing Co., parts
Ltd.
Chongqing Yes
Jianshe Sale of Vehicle,
Motorcycle LLC Chongqing Sales 50 motorcycle and its 500,000.00 100% 100%
Consignment installation kits
Co., Ltd.
Ningbo Jianshe
Production and sale of
Motorcycle
Manufacturing
LLC Ningbo Manufacture sales 1,600 motorcycle and its 8,160,000.00 51% 51% No
parts
Co., Ltd.
Supplementary remarks on subsidiaries obtained through incorporation or investment
(2) Subsidiaries procured through merger of entities under common control
In RMB
Balance of the
owners equity of
Amount for parent co. after
Balance of
deducting deducting of the
other items
minor exceeding part of
Full name Ownership Actual actually Minor
Business Registered Business Share Voting shareholders minority
of the of the Reg. Add. investment at formed net Consolidated shareholders’
property capital Scope proportion % power % equity in the shareholders share
subsidiary subsidiary year end investment in equity
minor of loss over the
the
shareholders share of minority
subsidiaries
equity shareholders in the
owners equity at
beginning of year
Operating and
agent all kinds of
Chongqing goods and
Northern technology import
and export
Jianshe Ltd. Intl (national limit or
Chongqing 60378000 prohibit the 60,378,000.00 100% 100% 是
Import & liability trade import and export
Export Co., company of
Ltd. goods and
technology
except)
Supplementary remarks on subsidiaries obtained through merger of entities under common control
(3) Subsidiaries procured through merger of entities under different control
In RMB
Full name Ownership Reg. Business Registered Business Actual Balance of Share Voting Minor Amount for Balance of the
Consolidated
of the of the Add. property capital Scope investment at other items proportion % power % shareholders’ deducting owners equity of
65
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
subsidiary subsidiary year end actually equity minor parent co. after
formed net shareholders deducting of the
investment in equity in the exceeding part of
the minor minority
subsidiaries shareholders shareholders share
equity of loss over the
share of minority
shareholders in the
owners equity at
beginning of year
Motorcycle with two
wheels, portable
motorcycle with two
Shanghai wheels and
installation kits
Jianshe Ltd. manufacturing and
Shanghai 16000000 sale, moped 8,160,000.00 51% 51% Yes 2,526,400.00
Motorcycle liability manufacturing and
Co., Ltd. sale, power-driven
bicycle and its parts
manufacturing and
sale
Supplementary remarks on subsidiaries obtained through merger of entities under different control
2. Entities with special purposes or entities on which the Company has cotrolling power thorugh entrusted operation or leasing
In RMB
Name Main trades with the Company Balance of assets and liabilities recognized in the consolidated financial statements
Other remarks on entities with special purpose or entities under control by entrustment or leasing
66
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
3. Change of consolidation range
Change of consolidation range:
(1)Subsidiaries that the company possess 50% or under 50% voting right and that are fit into consolidation range is not
exist.
(2)Invested companies that the company possess over 50% voting right but that are not fit into consolidation range
Name of companies Portion of Cause of not consolidated
voting rights
Ningbo Jianshe Motorcycle Manufacturing Co., 51% The company have stopped operation
Ltd. and have made the impairment
provision for full amount of equity.
[] Applicable; [V] Not applicable
4. Entities included or excluded in the consolidation range in the report period
Subsidiaries, entities with special purpose, or entities on which the Company has cotrolling power thorugh entrusted operation or
leasing added to the consolidation range in the report period.
In RMB
Name Net asset at end of term Net profit of the current term
Subsidiaries, entities with special purpose, or entities on which the Company has cotrolling power thorugh entrusted operation or
leasing excluded from the consolidation range in the report period.
In RMB
Net profit from beginning of year
Name Net asset at day of disposal
to the date of disposal
Supplementary statements on entities newly consolidated or eliminated from the consolidation
5. Merger of entities under common control in the report term
In RMB
Cash flow for
Recognition basis of Income from the Net profit of the
Substaintial business activities
Entities taken over entities under beginning of period period until the date
controller of the period until
common control to the date of merger of merger
the date of merger
Supplementary statements on merger of entities under common control
6. Merger of entities under different control in the report term
In RMB
67
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Entities taken over Amount of goodwill Accounting of goodwill
Supplementary statements on merger of entities under different control
7. Subsidiaries reduced for disposal of shares and lose of control power
Name of the subsidiaries Date of disposal Recognition of gain/loss
Supplementary statements on subsidiaries reduced by disposing of share equities
8. Reverse acquisition occurred in the report period
Goodwill recognized in merger
Basis for recognition of reverse
The undertaker Recognition of merger cost or accounting basis of current
acquisition
gain/loss
Supplementary remarks on reverse acquisition
9. Takeover occurred in the report period
In RMB
Type of takeover Main assets taken over Main liabilities taken over
Takeover under common control Items Amount Items Amount
Takeover under different control Items Amount Items Amount
Supplementary remarks on takeover
10. Exchange rate of main accounts of overseas businesses
VII. Notes to Items in the Consolidated Financial Statements
1. Monetary fund
In RMB
End of term Beginning of term
Items Amount of Exchange Amount of Exchange
Amount RMB Amount RMB
foreign currency rate foreign currency rate
Cash: -- -- 102,844.94 -- -- 69,530.86
RMB -- -- 102,844.94 -- -- 67,176.10
USD 374.63 6.29% 2,354.76
Bank account: -- -- 88,428,284.05 -- -- 81,540,382.54
RMB -- -- 82,057,258.87 -- -- 80,509,569.38
USD 175,387.67 6.19 1,085,259.34 160,353.39 6.29% 1,007,901.25
68
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
EURO 2,804.74 8.04 22,539.74 2,754.63 8.32% 22,911.91
Other monetary capital -- -- 341,205,810.94 -- -- 375,184,179.99
RMB -- -- 341,188,153.24 -- -- 375,168,838.18
USD
EURO 1,794.50 9.84 17,657.70 1,844.50 8.32% 15,341.81
Total -- -- 429,736,939.93 -- -- 456,794,093.39
Please state individually on accounts under pledge, mortgage, frozen, placed in overseas bank account, or with potential risk of
retrieving
Details of monetary capital under restriction:
Items Closing balance Balance at the
beginning of year
Deposit for bank accepted drafts 338864586.79 352,280,477.76
Guarantee deposit for L/C 2341224.15 22,903,702.23
Total 341,205,810.94 375,184,179.99
2. Transactional financial assets
(1) Transactional financial assets
In RMB
Items Fair value at end of term Fair value at beginning of term
(2) Transactional financial assets with restriction to liquefy
In RMB
Restriction for sale or other material restriction on
Items Amount at end of term
liquefying
(3) Remarks on hedging instruments and hedging trades
3. Notes receivable
(1) Categories of notes receivable
In RMB
Categories End of term Beginning of term
Bank acceptance 61,198,085.20 74,465,864.34
Commercial acceptance
Total 61,198,085.20 74,465,864.34
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
(2) Notes receivable under pledge
In RMB
Issuer Date of issue Expired on Amount Note
(3) Notes transferred to account receivable for the issuer is not able to execute the liability, and notes
endorsed to other parties but are not mature yet at the end of period
Notes transferred to account receivable due to failure of the issuer
In RMB
Issuer Date of issue Expired on Amount Note
Remarks
Notes endorsed to other parties but not due
In RMB
Issuer Date of issue Expired on Amount Note
Wanguo (Fujian)
Investment Group Co., Jun 17 2013 Dec 17 2013 3,000,000.00
Ltd. Fuzhou Branch
Changzhou Changcheng
Jun 14 2013 Dec 14 2013 2,500,000.00
Auto Sales Co., Ltd.
Suzhou Hengtong Auto
Jun 14 2013 Dec 14 2013 2,500,000.00
Sales Service Co., Ltd.
Zibo Juncheng Auto
Jun 19 2013 Dec 19 2013 2,500,000.00
Trade Co., Ltd.
Liaoning Xingrui Auto
Jun 19 2013 Dec 19 2013 2,500,000.00
Sales Service Co., Ltd.
Total -- -- 13,000,000.00 --
Remarks
Remarks on commercial accepted notes already discounted or put into pledge
4. Dividend receivable
In RMB
Beginning of Increased this Decreased this Cause for not Impairment of
Items End of term
term period period retrieved the account
Dividend
receivable with 30,470,000.00 30,470,000.00
age within 1 year
In which: -- -- -- -- -- --
70
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
(1) Chongqing
Jianshe Yamaha
15,000,000.00 15,000,000.00
Motorcycle Co.,
Ltd.
(2) Zhuzhou
Jianshe Yamaha
14,000,000.00 14,000,000.00
Motorcycle Co.,
Ltd.
(3) Chonqing
Pingshan Taikai
1,470,000.00 1,470,000.00
Carburetor Co.,
Ltd.
In which: -- -- -- -- -- --
Total 30,470,000.00 30,470,000.00 -- --
Remarks
5. Interest receivable
(1) Interest receivable
In RMB
Items Beginning of term Increased this period Decreased this period End of term
(2) Overdue interests
In RMB
Loan provided by Days overdue Amount of interests overdue
(3) Statement on interest receivable
6. Account receivable
(1) Account receivable presented on categories
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Categories
Proportion Proportion Proportion
Amount Amount Amount Amount Proportion %
% % %
Receivables provided bad debt provision in groups
71
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Receivables provided bad 353,813,89 9,379,749.5 297,845,0
97.66% 52.49% 97.23% 9,185,120.04 2.99%
debt provision in groups 5.40 6 23.73
353,813,89 9,379,749.5 297,845,0
Sub-total of group 97.66% 52.49% 97.23% 9,185,120.04 2.99%
5.40 6 23.73
Account receivable with
minor individual amount 8,490,093.3 8,490,093.3 8,490,093
2.34% 47.51% 2.77% 8,490,093.31 100%
but bad debt provision is 1 1 .31
provided
362,303,98 17,869,842. 306,335,1 17,675,213.3
Total -- -- -- --
8.71 87 17.04 5
Remarks on categories of receivable account
Receivable accounts with large amount individually and bad debt provisions were provided
[] Applicable; [V] Not applicable
Account receivable in the portfolio which are provided bad debt provision on age basis
[V] Applicable Not applicable
In RMB
End of term Beginning of term
Book balance Book balance
Age
Proportion Bad debt provision Proportion Bad debt provision
Amount Amount
% %
within 1 yr
In which: -- -- -- -- -- --
1-6 months 305,030,304.84 84.19% 253,387,131.62 82.72%
Subtotal of within
315,461,588.38 87.07% 521,564.18 258,355,758.83 84.34% 248,431.36
1 year
1-2 years 26,754,624.77 7.39% 2,675,462.48 27,864,677.24 9.1% 2,864,677.71
2-3 years 1,600,601.74 0.44% 480,180.52 1,636,125.03 0.53% 490,837.51
3-4 years 8,532,435.80 2.36% 4,270,525.18 8,644,703.37 2.82% 4,322,351.70
4-5 years 163,137.51 0.05% 130,510.01 33,637.51 0.01% 26,910.01
over 5 yrs 9,791,600.51 2.7% 9,791,600.51 9,800,215.06 3.2% 9,800,215.06
Total 362,303,988.71 -- 17,869,842.87 306,335,117.04 -- 17,675,213.35
Receivable accounts in the portfolio on which bad debt provisions are provided on percentage basis
[] Applicable; [V] Not applicable
Receivable accounts in the portfolio on which bad debt provisions are provided on other basis
[] Applicable; [V] Not applicable
Receivable accounts with minor amount but on which bad debt provisions are provided individually at end of period
[V] Applicable Not applicable
In RMB
72
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Description of the
Book balance Bad debt provision Providing rate (%) Reason to provide
receivable accounts
Domestic trade Overdue for a long term,
3,412,939.09 3,412,939.09 100%
receivable hard to retrieve
Overdue for a long term,
Overseas trade receivable 5,077,154.22 5,077,154.22 100%
hard to retrieve
Total 8,490,093.31 8,490,093.31 -- --
(2) Receivable accounts written back or retrieved in the report period
In RMB
Bad debt provision
Description of the receivable Reason to write back Basis of original bad Amount written back or
provided before writing
accounts or retrieve debt provision retrieved
back or retrieving
Bad debt provisions on receivable accounts with single large amount or minor amount but tested individually at end of report period
In RMB
Description of the
Book balance Amount of bad debt Providing rate (%) Reason
receivable accounts
Remarks on receivable accounts with minor single amount but with greater risks after combining with accounts with similar risks:
(3) Receivable accounts actually written off in the report period
In RMB
Name of the Property of the Reason of writing Occurred under
Date of written off Amount written off
companies receivable account off related relationship
Remarks on writing off of receivable accounts
(4) Particulars about the receivable accounts due from shareholders with 5% or over of the Company’s
shares
In RMB
End of term Beginning of term
Name of the companies Bad debt provision Bad debt provision
Book balance Book balance
provided provided
(5) Top 5 debtors in the receivable accounts
In RMB
Relation with the Portion in total
Name of the companies Amount Ages
Company receivables
73
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Chongqing Changan
Under same control 41,227,808.57 Within 1 year 11.96%
Automobile Co., Ltd.
Greatwall Automobile
33,536,402.93 Within 1 year 9.73%
Co., Ltd.
Chongqing Jianshe
YAMAHA Motorcycle Joint ventures 33,356,060.94 Within 1 year 9.68%
Co., Ltd.
Greatwall Automobile
24,142,322.82 Within 1 year 7.01%
Co., Ltd. Tianjin Branch
China Northern Vehicle
24,047,322.38 Within 2 years 6.98%
Co., Ltd.
Total -- 156,309,917.64 -- 45.36%
(6) Account due from related parties
In RMB
Name of the companies Relation with the Company Amount Portion in total receivables
Chongqing Changan
Under same control 41,227,808.57 11.37%
Automobile Co., Ltd.
Chongqing Jianshe YAMAHA
Joint ventures 33,356,060.94 9.2%
Motorcycle Co., Ltd.
Chongqing Changan
SUZUKI Automobile Co., Under same control 4,686,755.95 1.29%
Ltd.
Total -- 79,270,625.46 21.86%
(7) Recognition of receivable accounts terminated
In RMB
Items Amount terminated Gain/loss related to termination
(8) For securitization on receivable accounts, please provide the amount of asset and liability formed by
continuous involving
In RMB
Items End of term
Assets:
Liabilities:
74
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
7. Other account receivable.
(1) Other receivable account on categories
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Categories
Proportio Proportio Proportion Proportio
Amount Amount Amount Amount
n% n% % n%
Other receivables with
major individual amount
6,329,635.75 16.85% 3,013,664.00 48.97% 3,013,664.00 7.11% 3,013,664.00 48.1%
and bad debt provision
provided individually
Other receivables provided bad debt provision in groups
Other receivables
29,300,305.2 35,160,754.6
provided bad debt 78% 1,504,877.45 24.45% 82.93% 1,614,743.96 25.77%
4 4
provision in groups
29,300,305.2 35,160,754.6
Sub-total of group 78% 1,504,877.45 24.45% 82.93% 1,614,743.96 25.77%
4 4
Other account receivable
with minor individual
1,935,970.21 5.15% 1,635,970.21 26.58% 4,222,411.38 9.96% 1,635,970.21 26.12%
amount but bad debt
provision is provided
37,565,911.2 42,396,830.0
Total -- 6,154,511.66 -- -- 6,264,378.17 --
0 2
Remarks on other types of receivable accounts
Other receivable accounts with major single amount and bad debt provision drawn upon them
[V] Applicable Not applicable
In RMB
Description of other
Book balance Amount of bad debt Providing rate (%) Reason
receivables
Shanghai Jianshe Overdue for a long term,
3,013,664.00 3,013,664.00 100%
Motorcycle Co., Ltd. hard to retrieve
Export tax refund 3,315,971.75 Lower risks on retrieving
Total 6,329,635.75 3,013,664.00 -- --
Other receivable accounts in the portfolio on which bad debt provisions are provided on age basis
[V] Applicable Not applicable
In RMB
Age End of term Beginning of term
75
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Book balance Book balance
Proporti Bad debt provision Proporti Bad debt provision
Amount Amount
on % on %
within 1 yr
In which:
1-6 months (included) 17,589,191.04 46.82% 22,612,481.54 58.73%
Subtotal of within 1 year 29,389,010.81 78.23% 589,990.99 29,543,786.46 69.69% 232,243.19
1-2 years 266,466.98 0.71% 26,646.70 4,942,610.15 11.66% 494,261.02
2-3 years 2,960,799.20 7.88% 888,239.76 2,960,799.20 6.98% 888,239.76
3-4 years 300,000.00 0.8% 300,000.00 0.7%
over 5 yrs 4,649,634.21 12.36% 4,649,634.21 4,649,634.21 10.97% 4,649,634.21
Total 37,565,911.20 -- 6,154,511.66 42,396,830.02 -- 6,264,378.17
Other receivable accounts in the portfolio on which bad debt provisions are provided on percentage basis
[] Applicable; [V] Not applicable
Other receivable accounts in the portfolio on which bad debt provision are provided on other basis
[] Applicable; [V] Not applicable
Other receivable accounts with minor amount but were provided bad debt provisions individually at end of period
[V] Applicable Not applicable
In RMB
Description of other
Book balance Bad debt provision Providing rate (%) Reason to provide
receivables
Deposit in Industrial
300,000.00 Lower risks on retrieving
Bank
Due for over three years,
Other odd transition 1,635,970.21 1,635,970.21 100%
hard to retrieve
Total 1,935,970.21 1,635,970.21 -- --
(2) Other receivable accounts written back or retrieved in the report period
In RMB
Bad debt provision
Description of other Reason to write back Basis of original bad Amount written back or
provided before writing
receivables or retrieve debt provision retrieved
back or retrieving
Bad debt provisions on other receivable accounts with single large amount or minor amount but tested individually at end of report
period
In RMB
Description of the
Book balance Amount of bad debt Providing rate (%) Reason
receivable accounts
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Other receivable accounts in the portfolio which has minor single amount but with greater risk after combined in the portfolio
(3) Other receivable accounts actually written off in the report period
In RMB
Name of the Reason of writing Occurred under related
Property of account Date of written off Amount written off
companies off relationship
Remark on writing off of other receivable accounts
(4) Particulars about the other receivable accounts due from shareholders with 5% or over of the
Company’s shares in the report period
In RMB
End of term Beginning of term
Name of the companies Bad debt provision Bad debt provision
Book balance Book balance
provided provided
(5) Natures or contents of other receivable accounts with large amount
In RMB
Nature or content of the
Name of the companies Amount Portion in total other receivables (%)
account
Petty cash 14,332,682.05 Deparment borrowing 38.09%
Chongqing Jianshe YAMAHA
3,677,378.79 9.77%
Motorcycle Co., Ltd.
Total 18,010,060.84 -- 47.86%
Remarks
(6) Top 5 debtors of other receivable accounts
In RMB
Relation with the Portion in total other
Name of the companies Amount Ages
Company receivables (%)
Petty cash Emplyee 14,332,682.05 within 1 year 38.09%
Chongqing Jianshe YAMAHA Motorcycle
Joint ventures 3,677,378.79 within 1 year 9.77%
Co., Ltd.
Shanghai Jianshe Motorcycle Co., Ltd. Non-related 3,013,664.00 over 5 yrs 8.01%
within 6
Export tax refund receivable Non-related 3,315,971.75 8.81%
months
Ningbo Jianshe Motorcycle Manufacturing Company invested in 1,021,664.04 over 5 yrs 2.72%
77
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Co., Ltd.
Total -- 25,361,360.63 -- 67.4%
(7) Other accounts receivable from related parties
In RMB
Portion in total other receivables
Name of the companies Relation with the Company Amount
(%)
Chongqing Jianshe YAMAHA
Joint ventures 3,677,378.79 9.77%
Motorcycle Co., Ltd.
Total -- 3,677,378.79 9.77%
(8) Termination of other receivable accounts
In RMB
Items Amount terminated Gain/loss related to termination
(9) For securitization on other receivable accounts, please provide the amount of asset and liability formed
by continuous involving
In RMB
Items End of term
Assets:
Liabilities:
8. Prepayment
(1) Prepayment presented by ages:
In RMB
End of term Beginning of term
Age
Amount Ratio (%) Amount Ratio (%)
within 1 yr 54,086,304.65 89.99% 43,550,528.55 87.19%
1-2 years 1,786,469.67 2.97% 2,249,672.39 4.51%
2-3 years 1,307,533.34 2.18% 1,269,398.90 2.54%
Over 3 yrs 2,919,990.84 4.86% 2,876,577.64 5.76%
Total 60,100,298.50 -- 49,946,177.48 --
Remarks on ages of prepayment
78
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
(2) Top 5 receivers of prepayments
In RMB
Relation with the Reason of
Name of the companies Amount Date
Company unsettled
Hong Kong Jiarun Industrial Co., Ltd. non-associated 21,587,261.69
Chongqing Custom non-associated 4,732,008.09
GFM Australia non-associated 3,440,360.34
Chonqing Maijun Trade Co., Ltd. non-associated 440,833.40
Pangang Group International Trade Co., Ltd. Chongqing
non-associated 9,458,903.99
Branch
Total -- 39,659,367.51 -- --
Remarks on main entities involved in the prepayment
(3) Prepayment received by shareholding parties holding 5% or above of the Company’s shares in the
report period
In RMB
End of term Beginning of term
Name of the companies Bad debt provision Bad debt provision
Book balance Book balance
provided provided
(4) Statements on prepayments
9. Inventories
(1) Categories of inventory
In RMB
End of term Beginning of term
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Raw materials 75,007,603.96 75,007,603.96 71,189,923.90 71,189,923.90
Product in process 13,079,559.63 13,079,559.63 13,416,844.61 13,416,844.61
Products in stock 233,208,393.15 233,208,393.15 206,372,957.33 206,372,957.33
Total 321,295,556.74 321,295,556.74 290,979,725.84 290,979,725.84
(2) Inventory impairment provision
In RMB
79
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Openning balance of Decreased this period Closing balance of
Categories Provided this term
book value Written back Transferred book value
(3) Inventory impairment provisions
Percentage of the writen back
Basis of providing impairment
Items Reason of written back amount on the balance of the
provision
inventory
Remarks on inventories
10. Other current assets
In RMB
Items End of term Beginning of term
Remarks on other current assets
11. Disposable financial asset
(1) Sellable financial assets
In RMB
Items Fair value at end of term Fair value at beginning of term
For investment held to mature relocated into sellable financial, the amount was RMB, and the percentage in original investment held
to mature.
Statement on sellable financial assets
(2) Long-term liability investment in the sellable financial assets
In RMB
Accumulated
Openning Interest of the interest Closing
Bond items Type of bond Face value Initial costs Expired on
balance period received or balance
receivable
Remarks on the long-term liability investment in the sellable financial assets
12. Investment held to mature
(1) Investment held to mature
In RMB
Items Closing balance of book value Openning balance of book value
80
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Remarks on investment held to mature
(2) Investment held to mature disposed in the report period before mature
In RMB
Items Amount Percentage in the total investment before disposed %
Remarks on Investment held to mature disposed in the report period before mature
13. Long-term receivables
In RMB
Categories End of term Beginning of term
14. Investment in affiliates and joint ventures
In RMB
Voting
Shares held power of Net profit of
Name of the Total asset at end Total liability at Total net asset Total of turnover
by the the the current
Companies of term end of term at end of term at current term
Company % Company in term
the entity %
I. Joint ventures
Chongqing
Pingshan
Taikai 49% 49% 180,345,617.19 18,917,522.52 161,428,094.67 62,580,567.15 2,123,434.42
Carburetor
Co., Ltd.
Chongqing
Jianshe
YAMAHA 50% 50% 1,070,393,122.96 436,571,043.08 633,822,079.88 1,065,958,115.85 28,176,173.59
Motorcycle
Co., Ltd.
Zhuzhou
Jianshe
YAMAHA 50% 50% 713,964,507.64 166,007,867.62 547,956,640.02 455,615,420.81 28,538,685.33
Motorcycle
Co., Ltd.
II. Affiliates
Chongqing
Tongsheng
Jianshe 30% 30% 45,334,683.59 40,539,862.31 4,794,821.28 54,685,823.06 227,963.19
Industry Co.,
Ltd.
Chongqing
Fuda Property
20% 20% 5,202,898.91 3,903,859.49 1,299,039.42 2,770,538.12 -127,112.19
Management
Co., Ltd.
Remarks on the material difference between the accounting policies, accounting estimations of the Company and those of the joint
ventures and affiliates
81
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
15. Long-term equity investment
(1) Details of long-term equity investment
In RMB
Statement
on
difference Impairme Cash
Percentag Voting
Company s between Impairme nt dividend
Calculatin Investme Openning Changed Closing e of share power in
invested the nt provision of the
g basis nt cost balance by balance in the the
in sharehold provision provided current
firm % firm %
ing and this term term
voting
rights
Chongqin
g Jingjian
Automobi
On cost 3,200,000 3,200,000 3,200,000 3,200,000
le 6.74% 6.74%
basis .00 .00 .00 .00
Air-condi
tioner
Co., Ltd.
Ningbo
Jianshe
On cost 8,160,000 1,140,915 1,140,915 1,140,915
Motorcyc 51% 51%
basis .00 .04 .04 .04
le Co.,
Ltd.
Chongqin
g
Southern
Motorcyc
le On equity 20,000,00 20,000,00 20,000,00
16.67% 16.67%
Technolo basis 0.00 0.00 0.00
gies
Develop
ment Co.,
Ltd.
Chongqin
g Jianshe
Warehous
e and
Transport
ation Co., On equity 400,000.0
20% 20%
Ltd. basis 0
(Fuyeda
Property
Managem
ent Co.,
Ltd.)
Chongqin
g
Tongshen On equity 3,000,000 2,959,154 3,027,543
68,388.96 30% 30%
g Jianshe basis .00 .47 .43
Industry
Co., Ltd.
Chongqi
ng
Pingshan
Taikai On equity 67,316,53 79,585,64 -719,121. 78,866,52 49% 49%
1,470,000
basis 9.87 7.42 96 5.46 .00
Carburet
or Co.,
Ltd.
Chongqin On equity 154,699,6 311,387,7 -911,913. 310,475,8 15,000,00
50% 50%
g Jianshe basis 22.03 59.56 20 46.36 0.00
82
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
YAMAH
A
Motorcyc
le Co.,
Ltd.
Zhuzhou
Jianshe
YAMAH
On equity 215,710,3 269,627,9 269,342.6 269,897,3 14,000,00
A 50% 50%
basis 20.08 61.66 6 04.32 0.00
Motorcyc
le Co.,
Ltd.
472,486,4 687,901,4 -1,293,30 686,608,1 4,340,915 30,470,00
Total -- -- -- --
81.98 38.15 3.54 34.61 .04 0.00
(2) Constrains on the ability to transfer capital to invested entities
In RMB
Constrains on the ability to transfer capital Accumulated investment loss not
Causation of constrain
to long-term invested entities recognized
Statement on long-term equity investment
16. Investment property
(1) Investment property on cost basis
In RMB
Openning balance of book Closing balance of book
Items Increased this period Decreased this period
value value
In RMB
Current term
(2) Investment property on fair value basis
In RMB
Increased this period Decreased this period
For own use
Fair value at Fair value
or Gain/loss
Items beginning of Transferred at end of
Purchased transferred from change Disposed
term for own use term
from of fair value
inventory
Remarks on the investment properties which has been changed of their measurement method and license not granted, please state the
reasons and predicted date of granting
83
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
17. Fixed assets
(1) Particulars of fixed assets
In RMB
Openning balance of Decreased this Closing balance of
Items Increased this period
book value period book value
I. Total of original book
1,568,455,320.76 7,343,305.15 5,864,121.23 1,569,934,504.68
value
Incl. House & Buildings 413,669,723.46 161,504.32 413,831,227.78
Equipment &
1,078,915,674.33 5,144,383.96 5,851,191.23 1,078,208,867.06
machinery
Transportation
75,869,922.97 2,037,416.87 12,930.00 77,894,409.84
facilities
Openning balance of Increased this Provided current Decreased this Balance at end of
--
book value term term period current term
II. Total of accumulative
742,870,526.39 33,637,668.30 5,660,426.62 770,847,768.07
depreciation
Incl. House & Buildings 53,343,449.75 6,340,915.27 59,684,365.02
Equipment &
650,386,023.82 20,959,185.76 5,592,043.03 665,753,166.55
machinery
Transportation
39,141,052.82 6,337,567.27 68,383.59 45,410,236.50
facilities
Openning balance of Balance at end of
-- --
book value current term
III. Total of net book value
825,584,794.37 -- 799,086,736.61
of fixed assets
Incl. House & Buildings 360,326,273.71 -- 354,146,862.76
Equipment &
428,529,650.51 -- 412,455,700.51
machinery
Transportation
36,728,870.15 -- 32,484,173.34
facilities
V. Total of fixed asset book
825,584,794.37 -- 799,086,736.61
value
Incl. House & Buildings 360,326,273.71 -- 354,146,862.76
Equipment &
428,529,650.51 -- 412,455,700.51
machinery
Transportation
36,728,870.15 -- 32,484,173.34
facilities
84
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Depreciated this period RMB; transferred from construction in process to fixed of RMB;
(2) Fixed assets temporarily in idle status
In RMB
Accumulated Impairment
Items Original book value Net book value Note
depreciation: provision
(3) Fixed assets leased by finance
In RMB
Items Original book value Accumulated depreciation: Net book value
(4) Fixed assets leased out on fiance
In RMB
Categories Closing book value
Houses & buildings 20,460,666.88
(5) Fixed assets held for sale at end of period
In RMB
Predicted disposal
Items Book value fair value Predicted disposal date
expense
(6) Fixed asset not licensed yet
Items Reason for not granted Expected date of grant
Remarks on fixed assets
18. Construction-in-process
(1) Particulars of construction-in-process
In RMB
End of term Beginning of term
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Upgrading and reconstruction
18,819,963.73 18,819,963.73 11,509,867.19 11,509,867.19
of equipment
Office building 4,132,191.24 4,132,191.24 4,132,191.24 4,132,191.24
85
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Total 22,952,154.97 22,952,154.97 15,642,058.43 15,642,058.43
(2) Material change in construction-in-progress
In RMB
Capitaliz
Includin
Accumul ing ratio
Transferr Investme g:
Increase Other ate of of
Beginnin ed into nt on interest Fund End of
Projects Budget d this decrease Progress interest interest
g of term fixed budget capitaliz recourse term
period s capitaliz of
assets (%) ed this
ed current
term
term
Remarks on changes of the construction-in-process
(3) Impairment provisions of construction-in-process
In RMB
Decreased this
Items Beginning of term Increased this period End of term Reason to provide
period
(4) Progress of material construction-in-process
Items Progress Note
(5) Statement on construction-in-process
19. Project material
In RMB
Increased this Decreased this
Items Beginning of term End of term
period period
Remarks on project material
20. Liquidation of fixed assets
In RMB
Items Openning book value Closing book value Reason of liquidation
Discarding of computers 18,653.97
Total 18,653.97 --
Progress of fixed assets turn to be liquidated for over one year:
86
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
21. Production biological assets
(1) On costs
In RMB
Openning balance of Closing balance of book
Items Increased this period Decreased this period
book value value
I. Farming
II. Aquaculture
III. Forestry
IV. Aquatic
(2) On fair value
In RMB
Items Openning book value Increased this period Decreased this period Closing book value
I. Farming
II. Aquaculture
III. Forestry
IV. Aquatic
Remarks on productive biological assets
22. Petrolum assets
In RMB
Openning balance of Closing balance of book
Items Increased this period Decreased this period
book value value
Remarks on petrolum assets
23. Intangible assets
(1) Profiles of intangible assets
In RMB
Openning balance of Closing balance of book
Items Increased this period Decreased this period
book value value
I. Total of original book
152,668,710.42 69,341.24 152,738,051.66
value
Land using right 94,683,939.28 94,683,939.28
87
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Non-patent technologies 57,984,771.14 69,341.24 58,054,112.38
II. Total of accumulative
34,551,715.86 5,573,793.20 40,125,509.06
amortizing
Land using right 15,683,702.13 825,556.32 16,509,258.45
Non-patent technologies 18,868,013.73 4,748,236.88 23,616,250.61
III. Total of book net value of
118,116,994.56 -5,504,451.96 112,612,542.60
intangible assets
Land using right 79,000,237.15 -825,556.32 78,174,680.83
Non-patent technologies 39,116,757.41 -4,678,895.64 34,437,861.77
Land using right
Non-patent technologies
Total of book value of
118,116,994.56 -5,504,451.96 112,612,542.60
intangible assets
Land using right 79,000,237.15 -825,556.32 78,174,680.83
Non-patent technologies 39,116,757.41 -4,678,895.64 34,437,861.77
Amortized this period is RMB.
(2) R&D expenses
In RMB
Decreased this period
Accounted into
Items Beginning of term Increased this period Recognized as End of term
current income
intangible asset
account
Junxinzi0804-1 5,883,311.97 2,388,767.89 8,272,079.86
Minxinzi 0702 69,341.24 69,341.24 0.00
Minxinzi 0713-1 1,132,125.89 64,693.52 1,196,819.41
Jianshe/ODM-11 1,426,506.77 -224.23 1,426,282.54
Xinzi10【CDG01】 2,364,736.41 526,303.77 2,891,040.18
Xinzi10【CDG02】 1,440,589.63 304,174.97 1,744,764.60
Xinzi0801 3,124,136.94 188,472.43 3,312,609.37
Xinzi0801-1 238,908.14 238,908.14
Xinzi10【CFZ01】 6,533,917.67 3,043,594.09 9,577,511.76
Xinzi11【MT2501】 823,042.88 823,042.88
Xinzi11【MTA001】
1,260,330.45 445,123.22 1,705,453.67
-R
88
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Xinzi12【MQA003】 702,296.00 917,318.73 1,619,614.73
Xinzi0816 73,654.33 73,654.33
Xinzi0803 2,558,576.88 2,558,576.88
Xinzi13【MF1403】 12,436.00 12,436.00
Xinzi13【MW5001】 6,856.00 6,856.00
MQA002-R 501,217.77 501,217.77
Xinzi12【MQ2208】 20,537.24 20,537.24
Xinzi0713 2,488,255.55 79,059.83 2,567,315.38
Total 30,641,485.76 7,976,576.22 69,341.24 38,548,720.74
Percentage in total amount of R&D
Intangible asset formed by internal R&D of the period accounted for 18.25% of the total book value of intangible assets.
Remarks on R&D projects, including those with single value over RMB1 million and booked at their evaluation value, please
provide the name of the evaluation agency and the method of evaluation
24. Goodwill
In RMB
Impairment
Name of the companies or Increased this Decreased this
Openning balance Closing balance provision at
goodwill item period period
end of term
Remarks on the impariment test method and providing of impairment provisions
25. Long-term expenses to be amortized
In RMB
Beginning of Increased this Amortized this Reason of other
Items Other decrease End of term
term term term decreasing
Module of casting
3,211,035.43 459,372.06 1,363,458.12 2,306,949.37
workshop
83 aluminum
technical initial 7,495,727.04 691,704.96 6,804,022.08
fee
Total 10,706,762.47 459,372.06 2,055,163.08 9,110,971.45 --
Remarks on long-term expenses to be amortized
26. Deferred income tax asset and deferred income tax liabilities
(1) Deferred income tax assets and liabilities are not presented as net amount after neutralization
Deferred income tax assets and liabilities already recognized
89
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
In RMB
Items End of term Beginning of term
Deferred income tax assets:
Asset impairment provision 3,123,854.35 3,123,854.35
Sub-total 3,123,854.35 3,123,854.35
Deferred income tax liabilities:
Details of un-recognized deferred income tax assets
In RMB
Items End of term Beginning of term
Deductible provisional differences 14,002,856.87 14,002,856.87
Neutralizable losses 862,747,671.80 862,747,671.80
Total 876,750,528.67 876,750,528.67
Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year End of term Beginning of term Note
2012
2013 211,366,725.94 211,366,725.94
2014 115,126,804.89 115,126,804.89
2015 75,337,093.67 75,337,093.67
2016 238,332,921.97 238,332,921.97
2017 222,584,125.33 222,584,125.33
Total 862,747,671.80 862,747,671.80 --
Details of taxable differences and deductible differences
In RMB
Amount of temporary differences
Items
At end of term At beginning of term
Differences in taxable items
Neutralizable different items
Asset impairment provision 14,277,649.69 14,277,649.69
Sub-total 14,277,649.69 14,277,649.69
(2) Deferred income tax assets and liabilities are presented as net amount after neutralization
Composition items of income tax asset and liabilities after neutralization
In RMB
Items Deferred income tax Deductible or taxable Deferred income tax Deductible or taxable
90
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
asset or liability after provisional asset or liability after provisional
neutralizing at end of difference after neutralizing at end of difference after
reprot period neutralizing at end of report period neutralizing at end of
report period report period
Deferred income tax asset 3,123,854.35 3,123,854.35
Details of deferred income tax asset and liabilities neutralized
In RMB
Items Amount neutralized this period
Remarks on deferred income tax assets and deferred income tax liabilities
27. Detail of asset impairment provision
In RMB
Openning balance Increased this Decreased this period Closing balance of
Items
of book value period Written back Transferred book value
I. Bad debt provision 23,939,591.52 84,763.01 24,024,354.53
V. Long-term equity
investment impairment 4,340,915.04 4,340,915.04
provision
Total 28,280,506.56 84,763.01 28,365,269.57
Remarks on detailed asset impairment
28. Other non-current assets
In RMB
Items End of term Beginning of term
Balance of difference of debit of Shanghai
Jianshe Motorcycle Co., Ltd. under original 612,000.00 816,000.00
accounting policies
Total 612,000.00 816,000.00
Statement on other non-recurring assets
29. Short-term loans
(1) Categories of short-term loans
In RMB
Items End of term Beginning of term
Loan by pledge 9,671,134.54 25,615,520.89
91
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Mortgage loan 7,000,000.00 67,000,000.00
Guarantee loan 283,000,000.00 243,500,000.00
Credit loan 500,000,000.00 420,000,000.00
Total 799,671,134.54 756,115,520.89
Remarks on categories of short-term loans
(2) Short-term loans expired but not repaid
In RMB
Loan provided by Amount of loan Interest rate Usage of loan Reason of overdue Scheduled repaying date
Amount repaid after the date of balance sheet
Remarks on short-term loans, provide terms and new mature date if already became mature and extended.
30. Transactional financial liabilities
In RMB
Items Fair value at end of term Fair value at beginning of term
Remarks on transactional financial liabilities
31. Notes payable
In RMB
Categories End of term Beginning of term
Commercial acceptance 50,000,000.00 50,000,000.00
Bank acceptance 753,658,775.00 718,980,000.00
Total 803,658,775.00 768,980,000.00
Amount will mature in next period is RMB
Remarks on notes payable
32. Account payable
(1) Account payable
In RMB
Items End of term Beginning of term
Account payable 577,133,256.73 502,109,222.01
Total 577,133,256.73 502,109,222.01
92
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
(2) Account payable to shareholders holding 5% or over of the Company’s shares in the report period
In RMB
Name of the companies End of term Beginning of term
(3) Remarks on large amount payable accounts aged for over one year
33. Accounts received in advance
(1) Advance payment received
In RMB
Items End of term Beginning of term
Advances received 47,053,967.16 90,756,705.60
Total 47,053,967.16 90,756,705.60
(2) Prepayment collected from shareholders holding 5% or over of the Company’s shares in the report
period.
In RMB
Name of the companies End of term Beginning of term
(3) Remarks on large amount advance payment received aged for over one year
34. Wage payable
In RMB
Openning balance of Closing balance of book
Items Increased this period Decreased this period
book value value
I. Wage, bonus,
1,118,315.07 67,674,766.58 67,645,253.06 1,147,828.59
allowances
II. Employees
0.00 7,961,381.86 7,961,381.86
welfare
III. Social security 232,429.53 14,754,122.29 14,745,351.10 241,200.72
Medical insurance 28,980.80 4,868,443.38 4,868,443.38 28,980.80
Basic pension 71,706.78 8,550,907.79 8,542,136.60 80,477.97
Annual fee 117,986.20 117,986.20
Unemployment
7,089.91 580,574.49 580,574.49 7,089.91
insurance
Labor injury 3,872.09 443,546.11 443,546.11 3,872.09
93
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
insurance
Breeding insurance 2,793.75 310,650.52 310,650.52 2,793.75
IV. Housing fund 194,577.24 5,530,154.00 5,704,076.00 20,655.24
V. Dismissing
2,530,467.56 2,530,467.56
welfare
VI. Others 469,347.63 4,225,232.79 4,090,670.61 603,909.81
Total 2,014,669.47 102,676,125.08 102,677,200.19 2,013,594.36
Overdue payment for welfares and wages amounted to
Trade Union fee and education fee amounted to RMB, non-currency welfare amounted to RMB, dismissing compensation amounted
to RMB
Arrangement for the payment to employees
35. Tax payable
In RMB
Items End of term Beginning of term
VAT -9,788,774.08 -11,875,241.40
Consumption tax 136,895,933.01 137,570,964.39
Business tax 1,346,345.06 1,530,823.99
Enterprise income tax -12,292,552.33 -12,292,552.33
Personal income tax 872.73 -35,542.84
City maintenance and construction tax 104,000.92 173,561.17
Others 79,289.79 127,310.01
Total 116,345,115.10 115,199,322.99
Remarks on tax payable. In case it was approved by the tax authority to neutralize the taxable income among the subsidiaries or
branch factories, please provide the calculation formula.
36. Interest payable
In RMB
Items End of term Beginning of term
Remarks on interest payable
37. Dividend payable
In RMB
Name of the companies End of term Beginning of term Reason of overdue for one year
Remark on dividend payable
94
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
38. Other account payable.
(1) Other accounts payable
In RMB
Items End of term Beginning of term
within 1 yr 25,168,206.17 11,664,734.99
1-2 yrs 3,114,848.58 9,358,620.92
2-3 yrs 3,481,189.59 3,481,189.59
Over 3 yrs 2,061,733.80 2,061,733.80
Total 33,825,978.14 26,566,279.30
(2) Other account payable due to shareholders with 5% or over of the Company’s shares in the report
period
In RMB
Name of the companies End of term Beginning of term
(3) Statement on large amount other payable accounts due for over one year
(4) Statement on large amount other payable accounts
39. Anticipated liabilities
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Remarks on anticipated liabilities
40. Non-current liabilities due in one year
(1) Non-current liabilities due in one year
In RMB
Items End of term Beginning of term
Long-term loans due in 1 year 293,000,000.00 231,500,000.00
Total 293,000,000.00 231,500,000.00
(2) Long-term loans due in 1 year
Long-term loans due in 1 year
In RMB
95
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Items End of term Beginning of term
Guarantee loan 95,000,000.00 100,500,000.00
Credit loan 198,000,000.00 131,000,000.00
Total 293,000,000.00 231,500,000.00
Among the long-term loans due in 1 year, the loans overdue but extended is amounted to RMB.
Top 5 long-term loans due in 1 year
In RMB
End of term Beginning of term
Commence Terminate Interest Amount of Amount of
Loan provided by Currency Amount of Amount of
date date rate % foreign foreign
original currency original currency
currency currency
Chognqing Jianshe
Automobile February 1, Feb 1, RMB
5.27% 68,200,000.00 68,200,000.00
Air-conditioner Co., 2011 2014 Yuan
Ltd.
Chognqing Jianshe
Automobile Aug 18, Aug 17, RMB
4.86% 48,500,000.00 48,500,000.00
Air-conditioner Co., 2010 2013 Yuan
Ltd.
Chognqing Jianshe
Automobile Dec 28, Dec 27, RMB
5.27% 48,500,000.00 48,500,000.00
Air-conditioner Co., 2010 2013 Yuan
Ltd.
Chongqing Jianshe Mar 31 RMB
Apr 1 2011 6.1% 45,000,000.00 45,000,000.00
Motorcycle Co., Ltd. 2013 Yuan
Chongqing Jianshe Apr 14 Apr 13 RMB
6.4% 45,000,000.00 45,000,000.00
Motorcycle Co., Ltd. 2011 2014 Yuan
Total -- -- -- -- -- 255,200,000.00 -- 255,200,000.00
Overdue account in long-term loans due in one year
In RMB
Annual interest Reason for Scheduled
Loan provided by Total Amount Date of mature Usage of loan
rate % overdue repaying date
Amoung repaid in post-balance-sheet day.
Remarks on long-term loans due in 1 year
(3) Bonds payable due in 1 year
In RMB
Bond Face value Date of Bond term Issuing Interest Interest Interest paid Interest Closing
96
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
issue amount payable at occurred this period payable at balance
beginning this period end of
of period period
Remarks on payable bonds due in 1 year
(4) Long-term payable account due in 1 year
In RMB
Loans from Term Initial amount Interest rate % Interest payable Closing balance Condition
Remarks on long-term payable account due in 1 year
41. Other current liability
In RMB
Items Closing balance of book value Openning balance of book value
Remarks on other current liabilities
42. Long-term loans
(1) Categories of long-term loans
In RMB
Items End of term Beginning of term
Guarantee loan 48,000,000.00 92,000,000.00
Credit loan 82,800,000.00 154,200,000.00
Total 130,800,000.00 246,200,000.00
Remarks on categories of long-term loans
(2) Top 5 long-term loans
In RMB
End of term Beginning of term
Commence Terminate Interest Amount of Amount of
Loan provided by Currency Amount of Amount of
date date rate % foreign foreign
original currency original currency
currency currency
Chognqing Jianshe
Automobile August 2, Feb 21 RMB
6.15% 26,000,000.00 26,000,000.00
Air-conditioner Co., 2012 2015 Yuan
Ltd.
Chongqing Jianshe May 22 May 21 RMB
6.15% 24,000,000.00 24,000,000.00
Motorcycle Co., Ltd. 2013 2016 Yuan
Chongqing Jianshe May 22 Nov 1 RMB
6.15% 22,000,000.00 22,000,000.00
Motorcycle Co., Ltd. 2013 2015 Yuan
Chognqing Jianshe
Automobile August 2, Aug 1 RMB
6.15% 20,000,000.00 20,000,000.00
Air-conditioner Co., 2012 2015 Yuan
Ltd.
97
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Chognqing Jianshe
Automobile Sept 14 Mar 21 RMB
5.84% 9,000,000.00 9,000,000.00
Air-conditioner Co., 2012 2015 Yuan
Ltd.
Total -- -- -- -- -- 101,000,000.00 -- 101,000,000.00
Remarks on long-term loans. For long-term loans formed by extending of overdue loans, the conditions, amount of principal, interest,
and expected date of return
43. Bond payable
In RMB
Interest Interest
Interest
Date of Issuing payable at Interest paid payable at Closing
Bond Face value Bond term occurred
issue amount beginning this period end of balance
this period
of period period
Remarks on bond payable, including conditions and date to convert to shares for convertible bonds.
44. Long term payables
(1) Top 5 long-term payables
In RMB
Parties Term Initial amount Interest rate % Interest payable Closing balance Condition
(2) Details of finance leasing payments in long-term payables
In RMB
End of term Beginning of term
Parties
Foreign Currency RMB Foreign Currency RMB
Amount of financed leasing guaranteed by a third party RMB.
Remarks on long-term payables
45. Special payables
In RMB
Beginning of Increased this Decreased this
Items End of term Remarks
term period period
Others 738,000.00 738,000.00
Total 738,000.00 738,000.00 --
Remarks on special payables
98
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
46. Other non-current liabilities
In RMB
Items Closing balance of book value Openning balance of book value
Remarks on other non-current liabilities, including the amounts of asset-related and income-related government subsidies obtained in
the report term.
47. Capital Share
In RMB Yuan
Changed in the report period (+,-)
Beginning of
Issuing of new Transferred End of term
term Bonus shares Others Sub-total
shares from reserves
Total of capital
477,500,000.00 477,500,000.00
shares
Remarks on change of share capital. If there is change in capital in the report period, name of CPA and No. of Verification Report
shall be provided; for shareholding companies operated for less than three years, only net asset need to be provided for years before
establishing; for shareholding companies transformed from private limited companies, particulars about capital verification shall be
provided.
48. Shares in stock
Statement on shares in stock
49. Special reserves
Statement on special reserves
50. Capital reserves
In RMB
Items Beginning of term Increased this period Decreased this period End of term
Capital premium (share capital
344,407,741.07 344,407,741.07
premium)
Other capital reserves 258,472,776.52 9,800.00 258,482,576.52
Total 602,880,517.59 9,800.00 602,890,317.59
Remarks on capital reserves
51. Surplus reserves
In RMB
99
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Items Beginning of term Increased this period Decreased this period End of term
Statutory surplus reserves 125,686,000.00 125,686,000.00
Total 125,686,000.00 125,686,000.00
Remarks on surplus reserves. Related resolutions shall be provided if surplus reserves were used in capitalizing, making up losses, or
dividend.
52. Providing of common risk provisions
Statement on common risk provisions
53. Retained profit
In RMB
Percentage of drawing or
Items Amount
allocation
Adjustment on retained profit of previous year -1,063,624,266.50 --
Retained profit adjusted at beginning of year -1,063,624,266.50 --
Plus: Net profit attributable to owners of the
-33,126,243.42 --
parent company
Retained profit at the end of term -1,096,750,509.92 --
Details about adjustment of retained profit at beginning of year:
1) Retrospective adjustment due to adopting of the Enterprise Accounting Standard and related regulations, included the retained
profit by RMB0.
2) Variation of accounting policies, influenced the retained profit by RMB0.
3) Material correcting of accounting errors has influenced the openning balance of retained profit;
4) Change of consolidation range caused by merger of entities under common control, influenced the retained profit by RMB0.
5) Other adjustment influenced the retained profit by RMB0.
Remarks on retained profit. For companies first issue shares to the public, if the accumulated profit has been decided by the
shareholders meeting to be shared by the old and new shareholders, shall be stated particularly; if the accumulated profit has been
decided by the shareholders meeting to be allocated to the old shareholders before issuing of shares, the actual audited amount of
profit attributable to the old shareholders shall be stated particularly.
54. Operational turnover and cost
(1) Operation incomes and costs
In RMB
Items Occurred current term Occurred in previous term
Major business turnover 884,769,840.44 899,950,333.01
Other business income 41,695,773.42 68,908,260.62
100
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Operation cost 794,114,222.16 814,535,168.88
(2) Business segments (on industries)
In RMB
Occurred current term Occurred in previous term
Name of industry
Turnover Operation cost Turnover Operation cost
Industries 884,769,840.44 763,701,975.49 899,950,333.01 765,044,914.66
Total 884,769,840.44 763,701,975.49 899,950,333.01 765,044,914.66
(3) Business segments (on products)
In RMB
Occurred current term Occurred in previous term
Products or services
Turnover Operation cost Turnover Operation cost
Motorcycle and parts 572,536,578.06 500,904,720.98 633,626,513.96 535,339,578.16
Vehicle air conditioner 312,233,262.38 262,797,254.51 266,323,819.05 229,705,336.50
Total 884,769,840.44 763,701,975.49 899,950,333.01 765,044,914.66
(4) Business segments (on regions)
In RMB
Occurred current term Occurred in previous term
Name of districts
Turnover Operation cost Turnover Operation cost
North 124,787,879.02 104,208,806.35 106,393,837.49 93,217,660.68
East 62,857,269.76 53,400,596.94 81,191,969.24 71,254,472.91
Mid-south 55,939,792.59 48,466,567.99 52,841,162.17 46,325,295.45
South-west 375,256,162.44 323,318,088.41 403,423,014.50 324,683,670.25
North-east 19,509,472.26 16,625,704.11 43,291,987.47 37,652,801.57
North-west 24,042,660.05 20,402,881.46 35,775,716.14 31,052,009.45
South 67,823,774.26 61,233,025.57 32,505,376.53 27,692,076.43
Overseas sales 154,552,830.06 136,046,304.67 144,527,269.47 133,166,927.92
Total 884,769,840.44 763,701,975.50 899,950,333.01 765,044,914.66
(5) Revenue from top five customers
In RMB
Name of clients Major business turnover Percentage in total turnover of the Company %
101
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Chongqing Jianshe YAMAHA
85,885,719.39 9.71%
Motorcycle Co., Ltd.
Greatwall Automobile Co., Ltd. 56,075,933.12 6.34%
Chongqing Changan Automobile
44,872,917.95 5.07%
Co., Ltd.
Greatwall Automobile Co., Ltd.
36,221,934.91 4.09%
Tianjin Branch
Chongqing Changan SUZUKI
32,032,633.39 3.62%
Automobile Co., Ltd.
Total 255,089,138.76 28.83%
Statement on revenue.
55. Income from contract projects
In RMB
Construction Accumulative gross
Accumulated costs
contract with fixed Project Amount profit recognized Settled amount
occurred
price (“-“ for loss)
Accumulative gross
Contract on cost plus Accumulated costs
Project Amount profit recognized Settled amount
commission occurred
(“-“ for loss)
Remarkes on contract projects
56. Business tax and surcharge
In RMB
Occurred in previous
Items Occurred current term Rate
term
Consumption tax 7,331,781.26 8,985,422.43
Business tax 500,599.04 231,664.29
City maintenance and construction
732,999.97 1,319,859.64
tax
Education surtax 544,214.66 992,311.88
Total 9,109,594.93 11,529,258.24 --
Remarks on turnover tax and surcharges
57. Sales expenses
In RMB
102
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Items Occurred current term Occurred in previous term
Sales expense 56,501,111.61 61,805,964.91
Total 56,501,111.61 61,805,964.91
58. Administrative expenses
In RMB
Items Occurred current term Occurred in previous term
Administrative expense 76,760,982.40 70,934,694.54
Total 76,760,982.40 70,934,694.54
59. Financial expenses
In RMB
Items Occurred current term Occurred in previous term
Interest expense 56,304,915.82 60,474,644.47
Others -3,909,025.57 -1,824,395.13
Total 52,395,890.25 58,650,249.34
60. Income from fair value fluctuation
In RMB
Source of income from fluctuation of fair value Occurred current term Occurred in previous term
Remarks on income from fair value fluctuation
61. Investment income
(1) Details of investment gains
In RMB
Items Occurred current term Occurred in previous term
Long-term equity investment gains on equity basis 28,962,896.45 19,789,628.97
Total 28,962,896.45 19,789,628.97
(2) Long-term equity investment gains on cost basis
In RMB
Occurred in previous
Company invested in Occurred current term Causation of change
term
103
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
(3) Long-term equity investment gains on equity basis
In RMB
Occurred in previous
Company invested in Occurred current term Causation of change
term
Chongqing Tongsheng Jianshe Industry
68,388.96 9,529.71
Co., Ltd.
Chongqing Pingshan Taikai
741,078.03 979,956.58
Carburetor Co., Ltd.
Chongqing Jianshe YAMAHA
14,088,086.80 8,010,759.46
Motorcycle Co., Ltd.
Zhuzhou Jianshe YAMAHA
14,269,342.66 10,993,383.22
Motorcycle Co., Ltd.
Shanghai Jianshe Motorcycle Co., Ltd. -204,000.00 -204,000.00
Total 28,962,896.45 19,789,628.97 --
Remarks on investment gains. Statement shall be provided whether or not there is material limitation on retrieving of investment
gains.
62. Asset impairment loss
In RMB
Items Occurred current term Occurred in previous term
I. Bad debt loss 84,763.01 4,451,298.17
Total 84,763.01 4,451,298.17
63. Non-operational income
(1) Non-operational income
In RMB
Carried to current contingent
Items Occurred current term Occurred in previous term
gain/loss
Government subsidy 679,789.17 122,200.00
Others 234,813.96 258,169.83
Total 914,603.13 380,369.83
(2) Details of government subsidies
In RMB
104
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Items Occurred current term Occurred in previous term Remarks
Social security fund, Chongqing
108,600.00
Bureau of Finance
Fund for international marketing 11,200.00
Industrial support fund 2,400.00
Fund for innovative products 400,000.00
Allowance for guarantee insurance 149,000.00
Others 130,789.17
Total 679,789.17 122,200.00 --
Statement on non-operational income
64. Non-operational expenditures
In RMB
Occurred in previous Carried to current
Items Occurred current term
term contingent gain/loss
Total of loss from disposal of non-current assets 73,623.94
Donations 32,565.79 83,575.85
Total 32,565.79 157,199.79
Remarks on non-operational expenses
65. Income tax expenses
In RMB
Items Occurred current term Occurred in previous term
Income tax calculated according to the law and regulations of
75,293.70
current term
Total 75,293.70
66. Calculation of basic earning per share and diluted earning per share
Formula:
1. Basic earnings per share
Basic earnings per share=P0÷S
S= S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0–Sk
P0 = Net profit attributable to the common shareholders or net profit attributable to the common
shareholder after deducting of non-recurring gain/loss. S = weighted average of common shares issued
in the market S0 = Total shares at the beginning of term S1 = increased shares due to capitalizing of
common reserves or dividend Si = shares increased due to placing of new shares or transferred from
debt in the report term Sj = shares decreased due to actions such as repurchasing in the report term
105
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
SK = the amount of shares reduced M0 = number of months of the report term Mi = accumulative
number of months from the next month of share increasing to the end of report term; Mj = accumulative
number of months from the next month of share decreasing to the end of report term.
2. Diluted earnings per share
Diluted earning per share=P1/（S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0–Sk+ weighted average of common
shares increased by means of subscription certificates, share future options, or convertible bonds）
P1 = net profit attributable to common shareholders of the Company, or net profit attributable to common
shareholders after deducting of non-recurring gain/loss, with considering the influences of diluting
potential common shares, and adjusted according to Enterprise Accounting Standard and related
regulations. At calculating of diluted earnings per share, the Company has considered the influences
of the entire dilute potential common shares, until the diluted earnings per share had reached the
minimum value.
Calculation process:
(1) Basic earnings per share
Basic earnings per share is the result of consolidated net profit attributable to common shareholders
divided by the weighted average of common shares issued by the Company.
Items Amount of the Amount of the
Current Term Previous Term
consolidated net profit attributable to common
shareholders -33,126,243.42 -33,707,653.70
weighted average of common shares issued by the 477,500,000.00 477,500,000.00
Company
Basic earnings per share (Yuan/share) -0.0694 -0.0706
Calculating process of weighted average of common shares:
Items Amount of the Amount of the
Current Term Previous Term
Amount of common shares already issued at 477,500,000.00 477,500,000.00
beginning of year
Plus: Weighted amount of common shares issued
this term
Less: weighted amount of common shares
repurchased in current term
Weighted amount of common shares issued 477,500,000.00 477,500,000.00
outside at end of year
106
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
67. Other miscellaneous income
In RMB
Items Occurred current term Occurred in previous term
Remarks on other misc income
68. Notes to the cash flow statement
(1) Other cash inflow related to operation
In RMB
Items Amount
Interest income 5,639,476.98
Others 5,839,699.25
Total 11,479,176.23
Statement on other cash inflow related to operation
(2) Other cash paid related to operation
In RMB
Items Amount
Operation fees such as freight, warehousing fees 15,621,919.40
Administrative expenses such as office expenses and traveling expenses 4,628,053.23
Others 17,930,036.73
Total 38,180,009.36
Statement on other cash paid related to operation
(3) Other cash received related to investment
In RMB
Items Amount
Others 3,359.73
Total 3,359.73
Statement on other cash received related to investment
(4) Other cash paid related to investment
In RMB
Items Amount
107
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Statement on other cash paid related to investment
(5) Other cash received related to financing
In RMB
Items Amount
Financial note discount received 833,245,051.60
Total 833,245,051.60
Statement on other cash received related to financing
(6) Other cash paid related to financing
In RMB
Items Amount
Payment of due financing notes 748,980,000.00
Decrease of note deposite 12,631,083.98
Total 761,611,083.98
Remarks on other cash paid related to financing
69. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
Supplementary Info. Amount of the Current Term Amount of the Previous Term
1. Net profit adjusted to cash flow of business operation -- --
Net profit -32,731,310.41 -33,035,241.44
Plus: Asset impairment provision 84,763.01 4,451,298.17
Fixed asset depreciation, gas and petrol depreciation,
30,895,192.57 28,976,264.33
production goods depreciation
Amortizing of intangible assets 5,504,451.96 4,829,658.15
Amortizing of long-term expenses 2,055,163.08 1,878,982.45
Loss from disposal of fixed assets, intangible assets, and
1,850.00
other long-term assets (“-“ for gains)
Financial expenses (“-“ for gains) 52,395,890.25 58,650,249.34
Investment losses (“-“ for gains) -28,962,896.45
Decrease of inventory (“-“ for increase) -30,315,830.90 -4,232,512.97
Decrease of operational receivable items (“-“ for increase) -47,939,531.72 38,885,299.13
108
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Increase of operational payable items (“-“ for decrease) 30,638,081.02 -121,666,603.80
Cash flow generated by business operation, net -18,374,177.59 -41,048,514.26
2. Major investment and financing operation not involving
-- --
with cash
3. Net change of cash and cash equivalents -- --
Balance of cash at period end 88,531,128.99 144,852,598.42
Less: Initial balance of cash 81,609,913.40 161,078,406.88
Net increasing of cash and cash equivalents 6,921,215.59 -16,225,808.46
(2) Information about acquisition or disposal of subsidiaries or businesses
In RMB
Supplementary Info. Occurred current term Occurred in previous term
I. Acquisition of subsidiaries and businesses -- --
II. Disposal of subsidiaries and businesses -- --
(3) Composition of cash and cash equivalents
In RMB
Items End of term Beginning of term
I. Cash 88,531,128.99 81,609,913.40
Incl: Cash in stock 102,844.94 122,830.28
Bank savings could be used at any time 88,428,284.05 144,729,768.14
III. Balance of cash and cash equivalents at end of term 88,531,128.99 81,609,913.40
Statement on supplementary information of cash flow statement
70. Notes to statement of change in owners’ equity
Please state titles and amounts of “Other” items which have been adjusted for their closing balance of last year, and retrospective
adjustment caused by merger of entities under common control
VIII. Accounting treatment of asset securitization
1. Please state the main trade arrangement, accounting treatment, and bankrupcy isolating terms of capital
securitilizing.
2. Entities on which the Company has no control power but undertake the risks
In RMB
109
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Total asset at end Total liability at Net asset at end Turnover of the Net profit of the
Name Notes
of term end of term of term period current term
IX. Related parties and related transactions
1. Parent companies of the Company
Share of Voting
Ultimate
Name of Legal the parent power of
Relationsh Ownership Business Registered holder of Organizati
the parent Reg. Add. representat co. in the the parent
ip type property capital the on code
co. ive Company company
Company
% %
China
Southern Controllin National
sole Special
Industry g Tang 126452100 asset 71092604-
state-owne Beijing machinery 71.13% 71.13%
Group shareholde Dengjie 00 commissio 3
d production
(Southern r n
Group)
Particulars about the parent company of the Company
2. Subsidiaries of the Company
Full name Ownership Legal Share
Ownership Business Registered Voting Organizatio
of the of the Reg. Add. representati proportion
type property capital power % n code
subsidiary subsidiary ve %
Internationa
l trading
and agency
of various
Chongqing
merchandis
Northern
es and
Jianshe Controlled 60,377,527.
Ltd. liability Chongqing Wen Hong technologie 100% 100%
Import & subsidiaries 88
s (other than
Export Co.,
those
Ltd.
restricted by
national
government
)
Motorcycle
Shanghai
with two
Jianshe Controlled
Ltd. liability Shanghai Che Lianfu wheels, 16,000,000 51% 51%
Motorcycle subsidiaries
portable
Co., Ltd.
motorcycle
110
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
with two
wheels and
installation
kits
manufacturi
ng and sale,
moped
manufacturi
ng and sale,
power-drive
n bicycle
and its parts
manufacturi
ng and sale
(license
when
required)
Sales of
motorcycles
and parts,
vehicle
air-conditio
ner and
parts,
Chongqing
electro-mec
Jianshe Controlled Li
Ltd. liability Chongqing hanical 12,000,000 100% 100%
Sales Co., subsidiaries Huaguang
products,
Ltd.
metal
materials,
home
appliances,
repairing of
home
appliances
Production,
Chognqing
sales, and
Jianshe
services of
Automobile Controlled Lu
Ltd. liability Chongqing automobile 160,000,000 100% 100%
Air-conditio subsidiaries Hongxian
air-conditio
ner Co.,
ners and
Ltd.
parts
Guangxi Controlled Sales of
Ltd. liability Nanning 1,500,000 52% 52%
Jianshe subsidiaries motorcycle
111
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Motorcycle and parts
Co., Ltd.
Wholesale
Chengdu
and retail of
Jianshe Controlled
Ltd. liability Chengdu Jianshe 500,000 100% 100%
Sales Co., subsidiaries
motorcycle
Ltd.
and parts
Huhehaote Wholesale
Jianshe and
Controlled
Motorcycle Ltd. liability Huhehaote retailing of 500,000 100% 100%
subsidiaries
Sales Co., motorcycles
Ltd. and parts
Chongqing
Sales of
Jianshe
Controlled vehicles,
Motorcycle Ltd. liability Chongqing Wen Hong 500,000 100% 100%
subsidiaries motorcycles
Sales Co.,
, and parts
Ltd.
Ningbo Manufacturi
Jianshe ng and sales
Controlled
Motorcycle Ltd. liability Ningbo of 16,000,000 51% 51%
subsidiaries
Manufacturi motorcycles
ng Co., Ltd. and parts
3. Joint ventures and affiliates
Voting
Legal Shares held power of
Name of the Ownership Business Registered Relationshi Organizatio
Reg. Add. representati by the the
Companies type property capital p n code
ve Company % Company in
the entity %
I. Joint ventures
Chongqing
Jianshe
Yamaha Sino-foreig Production
Motorcycle n joint Lu and sales of Joint
Chongqing 65000000 50% 50% 621900263
Co., LTd. venture, Hongxian motorcycles ventures
(“Chongqin LTD and parts
g Jianshe
Yamaha”)
Zhuzhou Sino-foreig Production
Lu Joint
Jianshe n joint Zhuzhou and sales of 57200000 50% 50% 616774960
Hongxian ventures
YAMAHA venture, motorcycles
112
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Motorcycle LTD and parts
Co., Ltd.
(Zhuzhou
Jianshe)
Chongqing
Pingshan
Sino-foreig
Taikai Production
n joint Joint
Carbureto Chongqing Teng Feng and sales of 19000000 49% 49% 621907422
venture, ventures
r Co., Ltd. carburetor
LTD
(Pingshan
Taikai)
II. Affiliates
Chongqing
Tongsheng
Production
Jianshe
Ltd. Chen and sales of
Industry Chongqing 1000 30% 30% Affiliates 660868120
liability Guozhong motorcycle
Co., Ltd.
parts
(Tongsheng
Jianshe)
Chongqing
Cargo
Fuda
transportati
Property Ltd. Lei
Chongqing on and 200 20% 20% Affiliates 736584010
Managemen liability Qianhong
warehousin
t Co., Ltd.
g
(Fuyeda)
4. Other related parties
Name of the related parties Relation with the Company Organization code
Chongqing Jianshe Industry Co., Ltd.
Subsidiary of the controlling shareholder
(Jianshe Industry)
South-western Military Industry Co. Subsidiary of the controlling shareholder
Chongqing Jianshe Machinery Co., Ltd.
Subsidiary of the controlling shareholder
(“Jianshe Machinery”)
Military Equipment Group Finance Co.,
Subsidiary of the controlling shareholder
Ltd. (Military Finance)
Chongqing Changan Automobile Co., Ltd. Grand subsidiary of the controlling
(Changan Auto) shareholder
Chongqing Jianshe Industry & Trade Co., Grand subsidiary of the controlling
Ltd. (Jianshe Industry & Trade) shareholder
113
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Chongqing Jianxing Machinery
Affiliate of the subsidiary of the
Manufacturing Co., Ltd. (Jianxing
controlling shareholder
Machinery)
Chongqing Bailu Industry Co., Ltd. (Bailu Grand subsidiary of the controlling
Industry) shareholder
Statement on other related parties
5. Related Transactions
(1) Purchasing of goods and services
In RMB
Occurred current term Occurred in previous term
Pricing and Portion in Portion in
Subjects of the related
Related parties decision making similar similar
transactions Amount Amount
process transactio transactio
ns (%) ns (%)
Jianshe Industry Purchasing of goods Fair market price 10,509,133.62 10,368,989.92
Jianxing Machinery Purchasing of goods Fair market price 11,761,820.27 15,439,139.00
Chongqing Yamaha Purchasing of goods Fair market price 4,617,666.69 2,307,700.00
Jiangmen Qingqi
South China Purchasing of goods Fair market price 97,601.71 664,791.45
Motorcycle Co., Ltd.
Pingshan Taikai Purchasing of goods Fair market price 7,356,647.81 8,457,887.09
Jianshe Industry &
Purchasing of goods Fair market price 42,942.87 204,273.76
Trading
Tongsheng
Purchasing of goods Fair market price 11,652,457.46 10,656,641.96
Construction
Fuyeda Co. Accept labor Fair market price 270,714.00 125,739.77
Jianshe Industry Accept labor Fair market price 1,061,761.50 2,292,214.57
Sales of goods and services
In RMB
Occurred current term Occurred in previous term
Pricing and Portion in Portion in
Subjects of the related
Related parties decision making similar similar
transactions Amount Amount
process transactio transactio
ns (%) ns (%)
Zhuzhou Jianya sales of goods Fair market price 319,832.99
Chongqing Yamaha sales of goods Fair market price 85,885,719.39 56,911,295.71
114
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Changan Auto sales of goods Fair market price 78,704,079.55 128,937,000.50
Tongsheng
sales of goods Fair market price 3,744,783.03 4,485,465.75
Construction
(2) Related trusteeship or contracting
Related trusteeship or contracting in which the Company is the undertaker
In RMB
Nature of the Gains from the
Name of the Name of the
asset to be Start date Terminating date Pricing basis deal in report
employer undertaker
undertaken period
Related trusteeship or outsourcing in which the Company is the employer
In RMB
Amount of
Name of the Name of the Nature of the
Start date End date Pricing basis payment
employer undertaker entrust
recognized
Statement on the trusteeship and contracting:
(3) Related leasing
The Company is the lender
In RMB
Rental
Name of the Name of the Category of asset
Starting date Ending date Pricing basis recognized in the
owner tenant for rent
period
Chongqing
Jianshe Chongqing Price on
Warehouse May 31, 2013 May 30 2018 1,793,688.96
Motorcycle Co., Yamaha agreement
Ltd.
The Company is the undertaker
In RMB
Rental
Name of the Name of the Category of asset
Starting date Ending date Pricing basis recognized in the
owner tenant for rent
period
Statement on related leasing
(4) Related guarantees
In RMB
Undertaker Beneficiary Amount guaranteed Start date Due date Completed or not
115
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Statement on related guarantees
(5) Capital borrowing with related parties
In RMB
Related parties Amount of demolition Start date Expired on Remarks
Borrow in
Lend out
(6) Asset transferring and debt reconstruction with related parties
In RMB
Occurred current term Occurred in previous term
Principle of
Portion in Portion in
Type of Subjects of the pricing the
Related parties similar similar
trade related transactions related Amount Amount
transactio transactio
transactions
ns (%) ns (%)
(7) Other related transactions
6. Receivable and payables due with related parties
Receivable accounts due from related parties
In RMB
At end of term At beginning of term
Projects Related parties
Book balance Bad debt provision Book balance Bad debt provision
Notes receivable Changan Auto 15,180,000.00 5,750,000.00
Notes receivable Hebei Changan 2,453,570.00
Notes receivable Nanjing Changan 525,093.00 218,669.00
Notes receivable Changhe SUZUKI 6,518,940.00 1,580,000.00
Account receivable Jianshe Yamaha 33,356,060.94 30,126,154.36
Account receivable Changan Auto 41,227,808.57 55,513,094.41
Account receivable Hebei Changan 1,504,403.00 485,150.00
Account receivable Nanjing Changan 203,084.64 909,831.64
Account receivable Changan SUZUKI 4,686,755.95 11,483,127.14
Account receivable Changhe SUZUKI 11,475,197.99 10,132,524.79
Account payable due to related parties
In RMB
116
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Projects Related parties Amount at end of term Initial ammount
Account payable Chongqing Yamaha
Account payable Jianxing Machinery 553,480.51 3,247,126.39
Account payable Pingshan Taikai 8,020,882.84 7,769,373.39
Chongqing Jianshe Industry
Account payable 38,000.00
& Trade Co., Ltd.
Account payable Tongsheng Construction 7,402,817.63 4,390,534.69
Other account payable Fuyeda 44,729.00 25,822.77
X. Share payment
1. Overall situation of share payment
In RMB
Statement on share payment
2. Share payment settled in term of equity
In RMB
Statement on share payment on equity basis
3. Share payment settled by cash
In RMB
Statement on share payment settled by cash.
4. Service paid by shares
In RMB
5. Revising and termination of share payment
XI. Contingent Events
1. Contingent liabilities formed by material lawsuit or arbitration, and their influences on the financial
position
2. Contingent liability formed by providing of guarantee to other parties and its influence on the financial
position
Other contingent liabilities and influences on finance position
117
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
XII. Commitment events
1. Major commitment issues
2. Fulfilling of commitments made in previous periods
XIII. Post Balance Sheet Issues
1. Statement on material post-balance-sheet events
In RMB
Influence on the financial
Reason for not able to estimate
Items Contents position and business
the influence
performance
2. Statement on profit distribution in post balance sheet period
In RMB
3. Statement on other issues in post balance sheet period
XIV. Other material events
1. Non-monetary asset exchange
2. Debt reconstruction
3. Enterprise merger
4. Rental
5. Financial instruments convertible to shares issued to outside
6. Assets and liabilities on fair value basis
In RMB
Accumulative
Gain/loss from Impairment
change in fair value Amount at end of
Items Initial ammount change of fair value provisions provided
accounted into term
in the term in the current term
equities
Financial assets
Total of above 0.00 0.00
Financial liabilities 0.00 0.00
118
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
7. Financial assets and liabilities in foreign currencies
In RMB
Accumulative
Gain/loss from Impairment
change in fair value Amount at end of
Items Initial ammount change of fair value provisions provided
accounted into term
in the term in the current term
equities
Financial assets
Subtotal of financial
0.00 0.00
assets
Financial liabilities 0.00 0.00
8. Main contents of annual rewarding plan and material changes
9. Others
XV. Notes to the Financial Statements of the Parent Company
1. Account receivable
(1) Account receivable
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Categories
Propo
Proporti Proporti Proporti
Amount rtion Amount Amount Amount
on % on % on %
%
Receivables provided bad debt provision in groups
Receivables provided bad 96.42
42,954,028.63 107,908.94 6.34% 31,839,635.55 95.23% 67,335.36 0.21%
debt provision in groups %
96.42
Sub-total of group 42,954,028.63 107,908.94 6.34% 31,839,635.55 95.23% 67,335.36 0.21%
%
Account receivable with
minor individual amount
1,594,979.70 3.58% 1,594,979.70 93.66% 1,594,979.70 4.77% 1,594,979.70 99.79%
but bad debt provision is
provided
Total 44,549,008.33 -- 1,702,888.64 -- 33,434,615.25 -- 1,662,315.06 --
Remarks on categories of receivable account
Receivable accounts with large amount individually and bad debt provisions were provided
[] Applicable; [V] Not applicable
119
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Receivable accounts in the portfolio on which bad debt provisions were provided on age basis
[V] Applicable Not applicable
In RMB
End of term Beginning of term
Book balance Book balance
Age
Proporti Bad debt provision Proporti Bad debt provision
Amount Amount
on % on %
within 1 yr
In which: -- -- -- -- -- --
within 6
42,815,910.75 96.11% 31,701,517.67 94.82%
months
Subtotal of
42,815,910.75 96.11% 31,701,517.67 94.82%
within 1 year
2-3 years 8,617.88 0.03% 2,585.36
3-4 years 8,617.88 0.02% 4,308.94 129,500.00 0.39% 64,750.00
4-5 years 129,500.00 0.29% 103,600.00
over 5 yrs 1,594,979.70 3.58% 1,594,979.70 1,594,979.70 4.77% 1,594,979.70
Total 44,549,008.33 -- 1,702,888.64 33,434,615.25 -- 1,662,315.06
Receivable accounts in the portfolio on which bad debt provisions are provided on percentage basis
[] Applicable; [V] Not applicable
Receivable accounts in the portfolio on which bad debt provisions are provided on other basis
[] Applicable; [V] Not applicable
Receivable accounts with minor amount but on which bad debt provisions are provided individually at end of period
[V] Applicable Not applicable
In RMB
Description of the
Book balance Bad debt provision Providing rate (%) Reason to provide
receivable accounts
Domestic trade Due for over three years,
1,594,979.70 1,594,979.70 100%
receivable hard to retrieve
Total 1,594,979.70 1,594,979.70 -- --
(2) Receivable accounts written back or retrieved in the report period
In RMB
Bad debt provision
Description of the receivable Reason to write back Basis of original bad Amount written back or
provided before writing
accounts or retrieve debt provision retrieved
back or retrieving
Bad debt provisions on receivable accounts with single large amount or minor amount but tested individually at end of report period
120
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
In RMB
Description of the
Book balance Amount of bad debt Providing rate (%) Reason
receivable accounts
Remarks on receivable accounts with minor single amount but with greater risks after combining with accounts with similar risks:
(3) Receivable accounts actually written off in the report period
In RMB
Name of the Property of the Reason of writing Occurred under
Date of written off Amount written off
companies receivable account off related relationship
Remarks on writing off of receivable accounts
(4) Particulars about the receivable accounts due from shareholders with 5% or over of the Company’s
shares
In RMB
End of term Beginning of term
Name of the companies Bad debt provision Bad debt provision
Book balance Book balance
provided provided
(5) Nature or description of other receivable accounts with large amount
(6) Top 5 receivable accounts
In RMB
Relation with the Portion in total
Name of the companies Amount Ages
Company receivables
Chongqing Jianshe
YAMAHA Motorcycle Joint venture 33,356,060.94 within 6 months 74.94%
Co., Ltd.
YAMAHA MOTOR
None related 807,877.05 within 6 months 1.82%
CO.,LTD
YAMAHA Motor Trade
None related 531,739.77 within 6 months 1.19%
(Shanghai) Co., Ltd.
Wuhan Longchang
None related 473,539.96 over 5 yrs 1.06%
Hardware Shop
Changzheng Machinery
of China Aero Space None related 395,296.04 over 5 yrs 0.89%
Group
Total -- 35,564,513.76 -- 79.9%
121
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
(7) Account receivable from related parties
In RMB
Name of the companies Relation with the Company Amount Portion in total receivables
Chongqing Jianshe YAMAHA
Joint venture 33,356,060.94 74.94%
Motorcycle Co., Ltd.
Total -- 33,356,060.94 74.94%
（8）
Amount of receivable transferred but not satisfying the conditions of termination recognition is RMB.
(9) If securitilizing performed on target asset with purpose of receivable account, please brief the related
arrangements
2. Other account receivable.
(1) Other receivable accounts
In RMB
End of term Beginning of term
Book balance Bad debt provision Book balance Bad debt provision
Categories Propo Propo Propo Propo
Amount rtion Amount rtion Amount rtion Amount rtion
% % % %
Other receivables with major
individual amount and bad 67.81 71.45 63.35 70.02
118,926,385.10 3,013,664.00 40,903,505.61 3,013,664.00
debt provision provided % % % %
individually
Other receivables provided bad debt provision in groups
Other receivables provided 29.95 32.17
52,521,011.28 0% 20,767,515.41 86,109.46 0.41%
bad debt provision in groups % %
29.95 32.17
Sub-total of group 52,521,011.28 0% 20,767,515.41 86,109.46 0.41%
% %
Other account receivable
with minor individual 28.55
3,939,491.75 2.25% 1,204,370.74 2,889,743.65 4.48% 1,204,370.74 2.95%
amount but bad debt %
provision is provided
Total 175,386,888.13 -- 4,218,034.74 -- 64,560,764.67 -- 4,304,144.20 --
Remarks on other types of receivable accounts
Other receivable accounts with major single amount and bad debt provision drawn upon them
122
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
[V] Applicable Not applicable
In RMB
Description of other
Book balance Amount of bad debt Providing rate (%) Reason
receivables
Shanghai Jianshe Overdue for a long term,
3,013,664.00 3,013,664.00 100%
Motorcycle Co., Ltd. hard to retrieve
Jianshe Sales Co. 115,912,721.10 Subsidiaries
Total 118,926,385.10 3,013,664.00 -- --
Other receivable accounts in the portfolio on which bad debt provisions are provided on age basis
[V] Applicable Not applicable
In RMB
End of term Beginning of term
Book balance Book balance
Age
Proporti Bad debt provision Proporti Bad debt provision
Amount Amount
on % on %
within 1 yr
In which: -- -- -- -- -- --
1-6 months 171,063,052.30 97.53% 59,462,453.81 92.11%
Subtotal of
171,063,052.30 97.53% 59,500,816.80 92.17% 1,918.15
within 1 year
1-2 years 117,556.72 0.07% 11,755.67 841,913.13 1.3% 84,191.31
over 5 yrs 4,218,034.74 2.4% 4,218,034.74 4,218,034.74 6.53% 4,218,034.74
Total 175,398,643.80 -- 4,229,790.41 64,560,764.67 -- 4,304,144.20
Other receivable accounts in the portfolio on which bad debt provisions are provided on percentage basis
[] Applicable; [V] Not applicable
Other receivable accounts in the portfolio on which bad debt provision are provided on other basis
[] Applicable; [V] Not applicable
Other receivable accounts with minor amount but were provided bad debt provisions individually at end of period
[V] Applicable Not applicable
In RMB
Description of other
Book balance Bad debt provision Providing rate (%) Reason to provide
receivables
Transition in the
Shanghai Jianshe
1,685,372.91 consolidation range,
Motorcycle Co., Ltd.
Lower risks on retrieving
Transition with other Overdue for a long term,
1,204,370.74 1,204,370.74 100%
clients hard to retrieve
123
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Transition in the
Chongqing North Jianshe
1,049,748.10 consolidation range,
Imp & Exp
Lower risks on retrieving
Total 3,939,491.75 1,204,370.74 -- --
(2) Other receivable accounts written back or retrieved in the report period
In RMB
Bad debt provision
Description of other Reason to write back Basis of original bad Amount written back or
provided before writing
receivables or retrieve debt provision retrieved
back or retrieving
Bad debt provisions on other receivable accounts with single large amount or minor amount but tested individually at end of report
period
In RMB
Description of the
Book balance Amount of bad debt Providing rate (%) Reason
receivable accounts
Other receivable accounts in the portfolio which has minor single amount but with greater risk after combined in the portfolio
(3) Other receivable accounts actually written off in the report period
In RMB
Name of the Reason of writing Occurred under related
Property of account Date of written off Amount written off
companies off relationship
Remark on writing off of other receivable accounts
(4) Particulars about the other receivable accounts due from shareholders with 5% or over of the
Company’s shares in the report period
In RMB
End of term Beginning of term
Name of the companies Bad debt provision Bad debt provision
Book balance Book balance
provided provided
(5) Natures or contents of other receivable accounts with large amount
(6) Top 5 debtors of other receivable accounts
In RMB
Relation with the Portion in total other
Name of the companies Amount Ages
Company receivables (%)
Chongqing Jianshe Sales Subsidiaries 115,912,721.10 within 6 months 66.07%
124
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Co., Ltd.
Chongqing Jianshe
Under same control 35,282,463.15 within 6 months 20.11%
Industry Co., Ltd.
Petty cash 8,436,387.90 within 6 months 4.81%
Chongqing Jianshe
YAMAHA Motorcycle Joint venture 3,677,378.79 within 6 months 2.1%
Co., Ltd.
Shanghai Jianshe
Non-related 3,013,664.00 over 5 yrs 1.72%
Motorcycle Co., Ltd.
Total -- 166,322,614.94 -- 94.81%
(7) Other accounts receivable from related parties
In RMB
Portion in total other receivables
Name of the companies Relation with the Company Amount
(%)
Chongqing Jianshe Sales Co.,
Subsidiaries 115,912,721.10 66.07%
Ltd.
Shanghai Jianshe Motorcycle
Subsidiaries 1,685,372.91 0.96%
Co., Ltd.
Chongqing Northern Jianshe
Subsidiaries 1,049,748.10 0.6%
Import & Export Co., Ltd.
Total -- 118,647,842.11 67.63%
（8）
Amount of other receivables transferred but not satisfying the conditions of termination recognition is RMB.
(9) If securitilizing performed on target asset with purpose of other receivable account, please brief the
related arrangements
3. Long-term equity investment
In RMB
Statement
on Impairme Cash
Percentag Voting
Company difference Impairme nt dividend
Calculatin Investme Openning Changed Closing e of share power in
invested s between nt provision of the
g basis nt cost balance by balance in the the
in the provision provided current
firm % firm %
sharehold this term term
ing and
125
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
voting
rights
Chongqin
g Jianshe
YAMAH
Equity 154,699,6 311,387,7 -911,913. 310,475,8 15,000,00
A 50% 50%
basis 22.03 59.56 20 46.36 0.00
Motorcyc
le Co.,
Ltd.
Zhuzhou
Jianshe
Yamaha Equity 215,710,3 269,627,9 269,342.6 269,897,3 14,000,00
50% 50%
Motorcyc basis 20.08 61.66 6 04.31 0.00
le Co.,
Ltd.
Chongqi
ng
Pingshan
Equity 67,316,53 79,585,64 -719,121. 78,866,52 1,470,000
Taikai 49% 49%
basis 9.87 7.42 96 5.46 .00
Carburet
or Co.,
Ltd.
Chongqin
g
Tongshen Equity 3,000,000 2,959,154 3,027,543
68,388.96 30% 30%
g Jianshe basis .00 .47 .43
Industry
Co., Ltd.
Chongqin
g Jianshe
225,000.0 225,000.0 225,000.0
Motorcyc Cost basis 45% 100%
0 0 0
le Sales
Co., Ltd.
Chongqin
g Jianshe 12,000,00 12,000,00 12,000,00
Cost basis 100% 100%
Sales Co., 0.00 0.00 0.00
Ltd.
Chongqin
g
57,443,52 57,443,52 57,443,52
Northern Cost basis 95.14% 100%
7.88 7.88 7.88
Jianshe
Import &
126
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Export
Co., Ltd.
Shanghai
Jianshe
8,160,000 8,976,000 -204,000. 8,772,000
Motorcyc Cost basis 51% 51%
.00 .00 00 .00
le Co.,
Ltd.
Chognqin
g Jianshe
Automobi
70,000,00 70,000,00 70,000,00
le Cost basis 51% 51%
0.00 0.00 0.00
Air-condi
tioner
Co., Ltd.
Ningbo
Jianshe
Motorcyc
8,160,000 1,140,915
le Cost basis 51% 51%
.00 .04
Manufact
uring Co.,
Ltd.
Chongqin
g
Southern
Motorcyc
le 20,000,00 20,000,00 20,000,00
Cost basis 16.67% 16.67%
Technolo 0.00 0.00 0.00
gies
Develop
ment Co.,
Ltd.
616,715,0 832,205,0 -1,497,30 830,707,7 1,140,915 30,470,00
Total -- -- -- --
09.86 50.99 3.54 47.44 .04 0.00
Statement on long-term equity investment
4. Operation income and operation cost
(1) Operation incomes
In RMB
Items Occurred current term Occurred in previous term
Major business turnover 483,307,091.32 527,984,440.32
127
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Other business income 432,103,738.14 456,622,616.54
Total 915,410,829.46 984,607,056.86
Operation cost 854,745,965.65 930,917,606.93
(2) Business segments (on industries)
In RMB
Occurred current term Occurred in previous term
Name of industry
Turnover Operation cost Turnover Operation cost
Industry 483,307,091.32 465,905,740.68 527,984,440.32 483,374,796.68
Total 483,307,091.32 465,905,740.68 527,984,440.32 483,374,796.68
(3) Business segments (on products)
In RMB
Occurred current term Occurred in previous term
Products or services
Turnover Operation cost Turnover Operation cost
Motorcycle and parts 483,307,091.32 465,905,740.68 527,984,440.32 483,374,796.68
Total 483,307,091.32 465,905,740.68 527,984,440.32 483,374,796.68
(4) Business segments (on regions)
In RMB
Occurred current term Occurred in previous term
Name of districts
Turnover Operation cost Turnover Operation cost
South-west 483,307,091.32 465,905,740.68 527,984,440.32 483,374,796.68
Total 483,307,091.32 465,905,740.68 527,984,440.32 483,374,796.68
(5) Revenue from top five customers
In RMB
Percentage in total
Name of clients Total turnover turnover of the
Company %
Chongqing Jianshe Sales Co., Ltd. 324,347,539.76 35.43%
Chognqing Jianshe Automobile Air-conditioner Co., Ltd. 275,286,778.06 30.07%
Chongqing Jianshe YAMAHA Motorcycle Co., Ltd. 67,775,623.08 7.4%
Chongqing Jianfeng Trade Co. 12,416,410.26 1.36%
128
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Chongqing International Trade Center 11,305,251.28 1.23%
Total 691,131,602.44 75.49%
Statement on revenue.
5. Investment income
(1) Details of investment gains
In RMB
Items Occurred current term Occurred in previous term
Long-term equity investment gains on equity basis 28,962,896.45 19,789,628.97
Total 28,962,896.45 19,789,628.97
(2) Long-term equity investment gains on cost basis
In RMB
Occurred in previous
Company invested in Occurred current term Causation of change
term
(3) Long-term equity investment gains on equity basis
In RMB
Occurred in previous
Company invested in Occurred current term Causation of change
term
Chongqing Tongsheng Jianshe Industry Co.,
68,388.96 9,529.71
Ltd.
Chongqing Pingshan Taikai Carburetor
741,078.04 979,956.58
Co., Ltd.
Chongqing Jianshe YAMAHA Motorcycle
14,088,086.80 8,010,759.46
Co., Ltd.
Zhuzhou Jianshe YAMAHA Motorcycle Co.,
14,269,342.66 10,993,383.22
Ltd.
Shanghai Jianshe Motorcycle Co., Ltd. -204,000.00 -204,000.00
Total 28,962,896.46 19,789,628.97 --
Remarks on investment gains
6. Supplementary data of cash flow statement
In RMB
Supplementary Info. Amount of the Current Term Amount of the Previous Term
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
1. Net profit adjusted to cash flow of business operation -- --
Net profit -18,414,075.31 -37,913,674.28
Plus: Asset impairment provision -45,535.88 558,876.57
Fixed asset depreciation, gas and petrol depreciation, production
21,426,048.72 19,335,247.48
goods depreciation
Amortizing of intangible assets 5,324,750.10 4,636,217.01
Amortizing of long-term expenses 1,363,458.12 1,187,277.49
Financial expenses (“-“ for gains) 34,658,008.15 36,996,624.26
Investment losses (“-“ for gains) -28,962,896.45 -19,789,628.97
Decrease of inventory (“-“ for increase) 1,957,234.74 -6,880,520.43
Decrease of operational receivable items (“-“ for increase) -86,191,682.52 -50,250,429.03
Increase of operational payable items (“-“ for decrease) 30,777,389.15 24,403,015.00
Cash flow generated by business operation, net -38,107,301.18 -27,716,994.90
2. Major investment and financing operation not involving with cash -- --
3. Net change of cash and cash equivalents -- --
Balance of cash at period end 59,152,220.16 114,247,238.73
Less: Initial balance of cash 51,835,684.99 92,026,931.24
Net increasing of cash and cash equivalents 7,316,535.17 22,220,307.49
7. Reverse purchasing of assets and liabilities booked at evaluated value
Reverse purchasing of the following assets and liabilities at fair value
In RMB
Basis of recognizing fair Calculating process of
Items fair value Original book value
value fair value
Long-term equity investment formed by reverse purchase
In RMB
Amount of Long-term equity investment Calculating process of Long-term equity
Items
formed by reverse purchase investment
XVI. Supplementary Information
1. Details of non-recuring gain/loss of the term
In RMB
Items Amount Remarks
Gains and losses included in the current period of government
679,789.17
subsidies, excluding those government grants which are closely
130
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
related to normal business and in line with national policy , or in
accordance with fixed standards or quantities
Other gain/loss items satisfying the definition of non-recurring
202,248.17
gain/loss account
Total 882,037.34 --
If the company defines those items to recurring gain/loss itmes, which were defined by “Regulations of Information Disclosure of
PLCs, Explaination No.1 - Non-recurring gain/loss” as non-recurring gain/loss, please provide reason here.
[V] Applicable Not applicable
Items Amount involved (RMB) Causation
Penalties received 234,813.96
Overdue tax penalty 18,629.71
Loss from disposal of current
13,936.08
assets
2. Differences of financial data under domestic and international accounting standards
(1) Differences in net profit and net assets under international and domestic standards
In RMB
Net profit attributable to the shareholders of the Net asset attributable to the shareholders of the
listed company listed company
Current term Amount of last term End of term Beginning of term
On Chinese Accounting
-33,126,243.42 -33,707,653.70 109,325,807.67 142,442,251.09
Standard
Items and amounts adjusted on IAS
(2) Differences in net profit and net assets under overseas and domestic standards
In RMB
Net profit attributable to the shareholders of the Net asset attributable to the shareholders of the
listed company listed company
Current term Amount of last term End of term Beginning of term
On Chinese Accounting
-33,126,243.42 -33,707,653.70 109,325,807.67 142,442,251.09
Standard
Accounts and amounts adjusted according to overseas accounting standard
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
(3) Remarks on the differences of financial data under overseas and domestic accounting standards
3. Net income on asset ratio and earning per share
In RMB Yuan
Earnings per share
Weighted average net
Profit of the report period Diluted earnings per
income/asset ratio (%) Basic earnings per share
share
Net profit attributable to common shareholders
-26.31% -0.0694 -0.0694
of the Company
Net profit attributable to the common owners of
the PLC after deducting of non-recurring -27.01% -0.0694 -0.0694
gains/losses
4. Irregular situation and causes of items in the financial statements
Statements on the items changed by 30% or over and accounted for 5% or over of the total asset or
10% or over of the total profit of the report period:
Items Closing balance (or Opening balance (or Rate of change Cause of change
amount of the period) amount of the
previous period)
Construction in process 46.73% Note 1
22,952,154.97 15,642,058.43
Advances received -48.15% Note 2
47,053,967.16 90,756,705.60
Long-term -46.87% Note 3
borrowings 130,800,000.00 246,200,000.00
Asset impairment -98.10% Note 4
loss 84,763.01 4,451,298.17
Investment income 46.35% Note 5
28,962,896.45 19,789,628.97
Non-operational income 140.45% Note 6
914,603.13 380,369.83
Note 1: Increase of construction in process was caused by the 1.5 million expanding project of
compressor.
Note 2: Mainly due to decrease of motorcycle sales, and decrease of prepayment received.
Note 3: Decrease of long-term borrowings was mainly caused by change of financing resources, and
increase of bill financing.
Note 4: Asset impairment loss decreased greatly for the change of accounting estimations. The Company
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
provides bad debt provisions on the receivable accounts within six months.
Note 5: Increase of investment income was caused by increasing of profitability of the joint venture.
Note 6: None-operational income was the increased government subsidies.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2013
Chapter IX. Documents for Reference
I. Interim Report carrying personal signature and seal of the Chairman of the Board;
II. Financial Statements with signatures of the legal representative, the financial officer, and accounting manager.
III. All of the originals of the Companys documents and public notices publicized by the presses designated by
China Securities Regulatory Commission in the report period;
Chongqing Jianshe Motorcycle Co., Ltd.
Li Huaguang - Chairman of the Board
August 6, 2013
134