Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
Chongqing Jianshe Motorcycle Co., Ltd.
Interim Report 2014
2014-060
July 2014
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
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 travel Tang Wenquan
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 2014 Full Text
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 ...................................................................................................................................................8
Chapter V. Significant Events .............................................................................................................................................................13
Chapter VI. Change of Share Equity and Shareholders .........................................................................................................................20
Chapter VII. Particulars about Preference Shares ..................................................................................................................................24
Chapter VIII. Particulars about the Directors, Supervisors and Senior Executives ...............................................................................25
Chapter IX. Financial Report.................................................................................................................................................................26
Chapter X. Documents For Reference .............................................................................................................................................. 119
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
Glossary
Terms Description
Defined as
Company, the Company Defined as Chongqing Jianshe Motorcycle Co., Ltd.
Shenjianmo Defined as Shenzhen North Jianshe Motorcycle Co., Ltd. (predecessor of the Company)
China Military Equipment Group Co., Ltd. (China Southern Industry Group Co.,
Military Equipment Group Defined as
Ltd.)
Southern Group Defined as China Southern Industry Group Co., Ltd.
Military Finance Co. Defined as Military Equipment Group Finance Co., Ltd.
Southern Motorcycle Defined as Chongqing Southern Motorcycle Co., Ltd.
Southern Motorcycle R&D
Defined as Chongqing Southern Motorcycle Technologies Development Co., Ltd.
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.
Jianshe Machinery Defined as Chongqing Jianshe Machinery Co., Ltd.
China Jialin Defined as China Jialin Industry Co., Ltd. (Group)
Jinan Qingqi Defined as Jinan Qingqi Motorcycle Co., Ltd.
Changan Auto Defined as Chongqing Changan Automobile Co., Ltd.
Luoyang Northern Defined as Luoyang Northern Enterprise Group Co., Ltd.
Jianshe Sales Co. Defined as Chongqing Jianshe Sales Co., Ltd.
Auto Air-conditioner Co. Defined as Chognqing Jianshe Automobile Air-conditioner Co., Ltd.
Import & Export Co. Defined as Chongqing Northern Jianshe Import & Export Co., Ltd.
Shanghai Jianshe Defined as Shanghai Jianshe Motorcycle 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 Construction Defined as Chongqing Tongsheng Jianshe Industry Co., Ltd.
Jianshe Industry & Trading Defined as Chongqing Jianshe Industry & Trade Co., Ltd.
Fuyeda Defined as Chongqing Fuda Property Management Co., Ltd.
Jiangmen Qingqi Defined as Jiangmen Qingqi South China Motorcycle Co., Ltd.
Changan SUZUKI Defined as Chongqing Changan SUZUKI Automobile Co., Ltd.
Changhe SUZUKI Defined as Jiangxi Changhe SUZUKI Automobile Co., Ltd.
Hebei Changan Defined as Hebei Changan Automobile Co., Ltd.
Nanjing Changan Defined as Nanjing Changan Auto Co., Ltd.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
Chapter II. Company Profile
I. Company profile
Stock ID Jianmo B Stock Code 200054
Stock Exchange Listed in Shenzhen Stock Exchange
Company Name in Chinese Chongqing Jianshe Motorcycle Co., Ltd.
Abbreviation in Chinese (if any) Jianshe Motorcycle
Company Name in English CHONGQING JIANSHE MOTORCYCLE CO.,LTD.
Short form of Company Name in English JSMC-B
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, Banan District, No.1 Jianshe Road, Huaxi Industrial Zone, Banan District,
Address
Chongqing 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
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 2013.
2. Information inquiry
None of the official presses, website, and place of enquiry has been changed in the report period. For details
please find the Annual Report 2013.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
3. Change of business registration
Registration No. of Incorporation No. of Taxation Organization
Registration place
date Certificate Registration code
Chongqing Bureau of
Registration at beginning of
June 22, 2011 Commerce and 500000400001350 500113747482423 74748242-3
period
Industry
Chongqing Bureau of
Last registration before the end February 21,
Commerce and 500000400001350 500113747482423 74748242-3
of report period 2014
Industry
Date of provisional
announcement on official March 5, 2014
website (if any)
Inquiry website of the
Announcement on modification of business license
Companys announcements
4. Misc. Information
The abbreviation ID of the Company has been changed from “ST Jianmo B” to “Jianmo B” since May 22, 2014,
with stock code unchanged, namely 200054. And the limitation of price variation was restored from 5% to 10%.
For details please find the “Announcement on Retrieving of Special Treatment Alert on the Companys Stocks”
released by Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn dated May 21, 2014.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
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
Same period last
This report term Increase/decrease (%)
year
Turnover (RMB) 947,170,876.95 926,465,613.86 2.23%
Net profit attributable to shareholders of the listed
-59,961,821.44 -33,126,243.42 -81.01%
company (yuan)
Net profit attributable to the shareholders of the listed
company and after deducting of non-recurring -57,020,609.43 -34,008,280.76 -67.67%
gain/loss(RMB)
Net Cash flow generated by business operation (RMB) 104,646,875.40 -18,374,177.59 669.53%
Basic earnings per share (Yuan/share) -0.5023 -0.2775 -0.22%
Diluted earnings per share (Yuan/share) -0.5023 -0.2775 -0.22%
Net income on asset, weighted -49.39% -26.31% -23.08%
Ended this report Changed at end of report period
End of prev. year
term over end of previous period
Gross Assets (RMB) 2,642,256,186.60 2,744,421,025.89 -3.72%
Net asset attributable to owners of the PLC 91,421,378.11 151,383,199.55 -39.61%
II. Differences in accounting information under IAS and domestic accounting standard
1. No differences in net profit and net asset under domestic and international accounting standards in the report
period
2. No differences in net profit and net asset under domestic and overseas accounting standards
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 related to normal business and in line with national policy , or in accordance with fixed 200,000.00
standards or quantities
Other non-business income and expenditures other than the above -3,141,212.01
Total -2,941,212.01 --
If the company defines those items to recurring gain/loss items, which were defined by “Regulations of
Information Disclosure of PLCs, Explanation 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 193,525.36
Anticipated liabilities (lawsuit) -3,226,654.00
Loss from disposal of fixed assets -108,083.37
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
Chapter IV. Board of Directors’ Report
I. Business overview
In the first half of year, the Company and the affiliates realized production of 458 thousand units and 460
thousand units of motorcycles respectively, namely 17.19% and 16.52% of decline; whereas production of 979
thousand units and 952 thousand units of automobile conditioner compressors, namely 12.63% and 20.55% of
incline respectively.
II. Analysis of main business
Change in main financial data
In RMB Yuan
Same period last Change over same
This report term Cause of change
year period last year
Turnover 947,170,876.95 926,465,613.86 2.23%
Operation cost 830,409,735.03 794,114,222.16 4.57%
Sales expense 48,705,024.38 56,501,111.61 -13.80%
Administrative expense 81,594,632.24 76,760,982.40 6.30%
Financial expenses 50,277,451.79 52,395,890.25 -4.04%
Income tax expenses 218,486.34 75,293.70 190.18% Increase of tax paid by Shanghai Jianshe
Input to R&D 15,419,127.85 12,955,991.35 19.01%
Increase of sales of airconditional compressor
Cash flow generated by
104,646,875.40 -18,374,177.59 560.68% company and delay of payment by the parent
business operation, net
company
Net cash flow generated by Increase of cash dividend and decrease of fixed
31,049,156.48 21,618,494.10 43.62%
investment asset purchase
Net cash flow generated by
-287,477,608.52 4,714,167.22 -6,198.16% Repaying of loans
financing
Net increasing of cash and
-151,222,227.78 6,921,215.59 -2,284.91% Repaying of loans
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:
No material change in development strategy of the Company. In the report period, the headquarter realized sales
of motorcycles and engines by 185 thousand units, which was 61.67% of the target set at the beginning; sales of
compressors by 952 thousand units, 52.89% of the target; consolidated turnover by RMB1.886 billion, 50.23% of
the target.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
III. Main business composition
In RMB Yuan
Gross profit Change in Change in operation Change in gross
Turnover Operation cost
ratio % turnover YoY cost YoY profit YoY
On Industries
Industry 917,744,345.68 806,352,064.93 12.14% 3.73% 5.58% -1.54%
On Products
Motorcycle and
538,575,208.54 486,872,485.96 9.60% -5.93% -2.80% -2.91%
parts
Vehicle air
379,169,137.14 319,479,578.97 15.74% 21.44% 21.57% -0.09%
conditioner
On territories
North 122,995,286.73 100,612,282.16 18.20% -1.44% -3.45% 1.71%
East 52,831,289.72 45,902,914.17 13.11% -15.95% -14.04% -1.93%
Mid-south 99,299,739.67 89,892,839.42 9.47% 77.51% 85.47% -3.89%
South-west 447,357,040.29 392,092,949.55 12.35% 19.21% 21.27% -1.49%
North-east 10,112,241.99 9,098,154.23 10.03% -48.17% -45.28% -4.75%
North-west 19,451,436.33 17,485,748.33 10.11% -19.10% -14.30% -5.03%
South 31,989,495.78 28,692,768.76 10.31% -52.83% -53.14% 0.59%
Overseas sales 133,707,815.17 122,574,408.30 8.33% -13.49% -9.90% -3.64%
IV. Analyze of competitive edge
There wasnt any change in core business operation and competition in the report term. For details please find the
Annual Report 2013.
V. Investment
1. External equity investment
(1) External investment
No external investment in the report period.
(2) Shareholding in financial enterprises
No holding of shares of financial institutions in the report period.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
(3) Stock investment
No securities investment in the report period.
2. Trusted financing, derivate instruments, and trusted loans
(1) Trusted financing
No trust financial management in the report period.
(2) Derivate instrument investment
No derivate instrument investment in the report period.
(3) Trusted loans
No trusted loans in the report period.
3. Using of proceeds from share placing.
(1) Overall situation of capital from share issuing
[] Applicable; [V] Not applicable
(2) Projects financed by share issuing
[] Applicable; [V] Not applicable
(3) Change of projects financed by proceeds
No change of projects financed by proceeds from share issuing.
(4) Projects financed by share issuing
None
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
4. Analyze of main subsidiaries and affiliates
In RMB Yuan
Name of Type of Major products Operation
Industry Registered capital Gross Assets Net asset Turnover Net profit
companies business or service profit
Motorcycle and
Sales Co. Subsidiaries wholesale RMB12,000,000 379,659,553.97 -178,438,058.93 146,913,697.01 -18,928,019.18 -19,046,181.71
parts
Sales and
Vehicle air Machinery
Subsidiaries service of auto RMB160,000,000 855,201,345.72 224,133,297.19 422,431,196.09 -4,052,158.42 -3,901,258.42
conditioner manufacturing
air-conditioners
Chongqing Shareholding Machinery Motorcycle and
USD65000000 924,703,735.04 628,738,350.13 832,929,635.79 10,744,686.80 20,007,480.72
Yamaha company manufacturing parts
Zhuzhou Shareholding Machinery Motorcycle and
USD57200000 671,384,767.41 537,598,641.43 401,397,349.05 14,017,564.40 14,026,806.41
Jianya company manufacturing parts
5. Major projects using non-raised capital
No major projects using non-raised capital.
VI. Business performance forecast for Jan-Sept 2014
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
VII. Statement of the Board on the “Non-standard auditors’ report” issued by the CPA on the
current report period
[] Applicable; [V] Not applicable
VIII. The Board’s statement on “Non-standard Auditors’ Report” of previous year
[] Applicable; [V] 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
None of cash dividend, bonus shares, or capitalizing of common reserves was carried out for the previous year.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
X. Profit distribution for the report period.
[] Applicable; [V] Not applicable
None of cash dividend, bonus shares, or capitalizing of common reserves will be carried out for the first half of
year.
XI. Reception of investigations, communications, or interviews
Type of
Time/date Place Way Visitors Main content involved and material provided
visitors
Q: Will the “ST” been canceled after releasing of the annual
January 27 The Telephone
Individual Investor report? A: Please refer to the official announcement of the
2014 Company communication
Company.
Q: Why hasnt the ST alert been cancelled? A: It is subject to
May 6, The Telephone
Individual Investor approval of the stock exchange. Please keep informed by the
2014 Company communication
announcement of the Company.
May 29, The Telephone Q: If it will be an lose for the interim period? A: Performance
Individual Investor
2014 Company communication will be announced upon completion of accounting process.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
Chapter V. Significant Events
I. Administrative Position
There is no material difference between the administration practice and the requirements of the Company Law and
CSRC in the report period.
II. Material lawsuits
If
Amount Progress
constitute Progress of the Date of Index of information
Profile of the claim involved Results and influence of
expected lawsuit disclosure disclosure
(RMB0000) execution
liabilities
On July 17, 2013,
Ningbo Zhenhai
Yongzheng
Investment Co., Ltd.
(Yongzheng
Investment) raised
lawsuit to the 5th
The Company and Mr.
Peoples Court of
Sun Weibao were
Chongqing, claiming
judged by the first
for RMB3.1943
sentence to undertake
million of joint The Company
the liability of clearing
liabilities from claims that the
the debit of
Ningbo Jianshe and first sentence
RMB3194300 and the
lawsuit fees for was not made For details
lawsuit fee of
Chongqing Jianshe basing on clear please find
RMB32354, totally
Motorcycle Co., Ltd. facts and Announcement of
RMB3226654. But Mr.
(the Company) and appropriate Judgment No.
Sun Weibao is missing
Mr. Sun Weibao failed adopting of 2014-056 released by
without contact. July 12,
to liquidate Ningbo 322.67 Yes laws. Therefore Securities Times,
Therefore the 2014
Jianshe Motorcycle the Company Hong Kong
Company is providing
Co., Ltd. (Ningbo raised appeal to Commercial Daily
full liability provision
Jianshe). Court Chongqing and
in the 1st half of 2014.
hearing was on High Court on www.cinfo.com.cn
The Company has
January 16, 2014 and May 28, 2014. dated July 12, 2014
raised appeal to the
the first sentence was It was accepted
High Court, and
made on May 22 by the High
influence of this issue
thereafter, by which, Court.
on the Companys
the Company and Mr.
profit is subject to the
Sun Weibao were
sentence of the 2nd
judged to undertake
trial.
the liability of clearing
the debit of
RMB3194300 and the
lawsuit fee of
RMB32354.
III. Media queries
No media queries raised in the report period.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
IV. Receivership and bankruptcy
No bankruptcy or capital reorganizing issues occurred in the report period.
V. Asset transactions
1. Acquisition of assets
No acquisition of assets at the end of report period.
2. Disposal of assets
No disposal of assets at the end of report period.
3. Merger of entities
No merger or takeover of entities in the report period.
VI. Implementation of share incentive program and influences
No stock incentive plan composed nor implemented in the report period.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
VII. Material related transactions
1. Related transactions related to daily operation
Market
Principle of Ratio
Subjects of Price Amount of price of Index of
Related Type of pricing the in Way of Date of
Relationship the related of trade similar information
parties trade related similar payment disclosure
transactions trade RMB0000 trade disclosure
transactions trades
available
Subsidiaries
of the
Jianshe Purchase Fuel & Fair market
common 1,118 1.39%
Industry of goods power price
holding
shareholder
Tongsheng Purchase Fair market
Affiliates Spare parts 705 0.87%
Construction of goods price
Chongqing Joint Sales of Finished Fair market
16,756 18.26%
Yamaha ventures goods products price
Grand
subsidiaries
Changan Sales of Finished Fair market
of common 12,501 13.62%
Auto goods products price
holding
shareholder
Chongqing Joint Sales of Price on
Parts 1,073 1.17%
Yamaha ventures goods agreement
Grand For details please find
subsidiaries Announcement No.
Jianxing Purchase Fair market
of common Parts 1,770 2.20% 2014-02 about routine
Machinery of goods price
holding related transactions
shareholder issued by Securities
Pingshan Joint Purchase Fair market Times, Hong Kong
Parts 123 0.15%
Taikai ventures of goods price Commercial Daily and
Subsidiaries www.cninfo.com.cn
Purchase
of the dated April 26 2014.
Jianshe of goods Price on
common Spare parts 408 0.51%
Industry and agreement
holding
services
shareholder
Chongqing Joint Purchase Price on
Spare parts 4,014 4.98%
Yamaha ventures of goods agreement
Jiangmen Under same Sales of Finished Price on
399 0.43%
Qingqi control goods products agreement
Affiliated Accept Labour Price on
Fuyeda 28 0.03%
company labor service agreement
Under same Purchase Finished Fair market
China Jialin 0.7 0.00%
control of goods products price
Zhuzhou Joint Sales of Price on
Spare parts 452 0.49%
Jianya ventures goods agreement
Tongsheng Affiliated Sales of Fair market
Spare parts 168 0.18%
Construction company goods price
Under same Sales of Finished Fair market
China Jialin 0.1 0.00%
control goods products price
Total -- -- 39,515.8 -- -- -- -- --
Details about major returning of goods Not applicable
For year 2014, the related transactions are predicted to RMB916.95 million in
total, and actually RMB395.16 million in the first half. To breakdown,
Please provide actual situation of routine related
RMB201.80 million predicted for purchasing of goods and services, actually
transactions if they are forecasted in categories
RMB81.67 million; RMB714.50 million predicted for providing of goods and
(if any)
services, actually RMB313.49 million; RMB650 thousand predicted for leasing of
property, and actually RMB0.
Remarks on material differences between the
Not applicable
trade price and market price (if any)
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
2. Related transactions related to asset purchasing or disposal
No related transaction regarding asset purchase or disposal up to the end of report period.
3. Related transaction of joint external investment
No related transaction of joint external investment in the report period.
4. Debtors and credits with related parties
No debtors and credits with related parties in the report period.
5. Other material related transactions
Financial business with Military Group Finance Co.
Category of trade Transaction Units Closing balance
Saving balance Chongqing Jianshe Motorcycle Co., Ltd. 82,757.10
Chognqing Jianshe Automobile Air-conditioner Co., Ltd. 98,305.23
Chongqing Northern Jianshe Import & Export Co., Ltd. 3,976.44
Chongqing Jianshe Sales Co., Ltd. 350,279.41
Sub-total 535,318.18
Loan balance Chongqing Jianshe Motorcycle Co., Ltd. 70,000,000.00
Interest payment of loans and discount Chongqing Jianshe Motorcycle Co., Ltd. 3,011,472.11
Chognqing Jianshe Automobile Air-conditioner Co., Ltd. 10,295,750.15
Chongqing Jianshe Sales Co., Ltd. 3,254,372.20
Sub-total 16,561,594.46
Online inquiry of provisional announcements about major related transactions
Title of website for the provisional
Title of provisional announcement Date of provisional announcement
announcement
Announcement on accepting of financial
January 9, 2014 www.cninfo.com.cn
service and related transactions
VIII. Non-operational capital appropriation by holding shareholder and related parties
No non-operational capital appropriation by holding shareholder or related parties occurred in the report period.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
IX. Material contracts and execution
1. Entrustment, contracting, and leasing issues
(1) Trusteeship
No trusteeship in the report period.
(2) Contracting
No contracting in the report period.
(3) Leasing
No Leasing in the report period.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
2. Guarantees
In RMB10 thousand
External Guarantee (Exclude controlled subsidiaries)
Amount of Actual date of occurring
Guarantee Amount of Actual amount of Completed Related
guarantee and date (signing date of Type of guarantee Term
provided to the guarantee guarantee or not guarantee
of disclosure agreements
Total of external guarantee approved Total of external guarantee actually
0 0
in the report term (A1) occurred in the report term (A2)
Total of external guarantee approved Total of external guarantee actually
0 0
as of end of report term (A3) occurred as of end of report term (A4)
Guarantee provided to controlled subsidiaries
Amount of Actual date of occurring
Guarantee Amount of Actual amount of Completed Related
guarantee and date (signing date of Type of guarantee Term
provided to the guarantee guarantee or not guarantee
of disclosure agreements
6
Sales Co. April 26, 2014 3,150 March 5, 2014 3,150 Joint liabilities Yes No
months
6
Sales Co. April 26, 2014 2,800 July 7, 2014 2,800 Joint liabilities No No
months
Vehicle air 9
April 26, 2014 5,000 July 21, 2014 5,000 Joint liabilities No No
conditioner months
Vehicle air 6
April 26, 2014 2,450 July 24, 2014 2,450 Joint liabilities No No
conditioner months
Vehicle air 11
April 26, 2014 2,550 July 30, 2014 2,550 Joint liabilities No No
conditioner months
6
Sales Co. April 26, 2014 2,800 May 20, 2014 2,800 Joint liabilities Yes No
months
6
Sales Co. April 26, 2014 2,997 June 12, 2014 2,997 Joint liabilities Yes No
months
Vehicle air 9
April 26, 2014 3,500 December 11, 2014 3,500 Joint liabilities No No
conditioner months
6
Sales Co. April 26, 2014 3,150 October 11, 2014 3,150 Joint liabilities No No
months
6
Sales Co. April 26, 2014 2,800 November 20, 2014 2,800 Joint liabilities No No
months
6
Sales Co. April 26, 2014 2,996 December 03, 2014 2,996 Joint liabilities No No
months
12
Sales Co. April 26, 2014 2,800 June 11, 2015 2,800 Joint liabilities No No
months
Total of guarantee to subsidiaries Total of guarantee to subsidiaries actually
34,300 36,993
approved in the report term (B1) occurred in the report term (B2)
Total of balance of guarantee actually
Total of guarantee to subsidiaries
34,300 provided to the subsidiaries as of end of 28,046
approved as of the report term (B3)
report term (B4)
Total of guarantee provided by the Company (i.e. total of the above two items)
Total of guarantee approved in the
34,300 Total of guarantee occurred in the report term (A2+B2) 36,993
report term (A1+B1)
Total of guarantee approved as of
34,300 Total of guarantee occurred as of the end of report term 28,046
end of report term (A3+B3)
Percentage of the total guarantee occurred (A4+B4) on net asset
306.78%
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
28,046
70% of liability on asset ratio (D)
The part of total amount of guarantee exceeded 50% of net asset
20,476.84
(E)
Total of the above 3 * (C+D+E) 28,046
Particulars about combined guarantees
Illegal providing of external guarantees
No illegal providing of external guarantees in the report period.
18
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
3. Other material contracts
No other material contract in the report period.
4. Other material trades
No other material trade in the report period.
X. Commitment issues by shareholders with 5% or over of shares in the report period or
carried over to the report period from previous periods
No commitment issues by shareholders with 5% or over of shares in the report period or carried over to the report
period from previous periods
XI. Engaging and dismissing of CPAs
Whether the Interim Report was audited or not
XII. Punishment and improvement
No punishment or improving approach in the report period.
XIII. Disclosure of illegal action causing risk of delisting.
No such illegal action causes risk of delisting.
XIV. Statement on other material issues
No other material issues to be stated for the report period.
19
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
Chapter VI. Change of Share Equity and Shareholders
I. Statement of change in shares
In shares
Before the change Changed Currently (+,-) After the change
Issuing of Bonus Transferred from
Amount Proportion Others Sub-total Amount Proportion
new shares shares reserves
I. Shares with trade
89,375,000 74.87% 0 0 0 0 0 89,375,000 74.87%
restriction conditions
1. State-owned shares 0 0.00% 0 0 0 0 0 0 0.00%
2. State-owned legal
84,906,250 71.13% 0 0 0 0 0 84,906,250 71.13%
person shares
3. Other domestic shares 4,468,750 3.74% 0 0 0 0 0 4,468,750 3.74%
Incl. Shares held by
1,750,000 1.46% 0 0 0 0 0 1,750,000 1.46%
domestic legal persons
Domestic natural
2,718,750 2.28% 0 0 0 0 0 2,718,750 2.28%
person shares
4. Share held by foreign
0 0.00% 0 0 0 0 0 0 0.00%
investors
Incl. Shares held by
0 0.00% 0 0 0 0 0 0 0.00%
foreign legal persons
Foreign natural
0 0.00% 0 0 0 0 0 0 0.00%
person shares
II. Shares without
trading limited 30,000,000 25.13% 0 0 0 0 0 30,000,000 25.13%
conditions
1. Common shares in
0 0.00% 0 0 0 0 0 0 0.00%
RMB
2. Foreign shares in
30,000,000 25.13% 0 0 0 0 0 30,000,000 25.13%
domestic market
3. Foreign shares in
0 0.00% 0 0 0 0 0 0 0.00%
overseas market
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
III. Total of capital
119,375,000 100.00% 0 0 0 0 0 119,375,000 100.00%
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:
Upon completion of stock drawback, the Companys total capital shares were reduced to 119,375,000 shares
(RMB Yuan). None of the total asset, liabilities, owners equity, and net profit would be changed because of the
drawback, except for net asset per share and gains per share though. Contrast of financial indices as of June 30,
2014 before and after the drawback
20
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
Accounts After Before
Total capital share (shares) 119,375,000 477,500,000
Gross Assets (RMB) 2,642,256,186.60 2,642,256,186.60
Liabilities (RMB) 2,550,290,285.23 2,550,290,285.23
Owners equity attributable to the parent 91,421,378.11 91,421,378.11
company (RMB)
Net profit attributable to the owners of the -59,961,821.44 -59,961,821.44
parent company (RMB)
Retained profit (RMB) -1,114,154,939.48 -1,114,154,939.48
Capital reserves (RMB) 960,515,317.59 602,390,317.59(including transferred from registered
capital358,125,000.00 )
Surplus reserves (RMB) 125,686,000.00 125,686,000.00
Net asset per share (RMB) 0.7658 0.1915
Earnings per share (RMB) -0.5023 -0.1256
Other information the Company thinks necessary or required by the authority to be disclosed
[] Applicable; [V] Not applicable
Change of total shares and shareholding structures, assets and liabilities
[] Applicable; [V] Not applicable
21
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
II. Number of shareholders and shareholding positions
in shares
Total of shareholders of
Total common shareholders at preference shares with restored
12,641 0
the end of the report period voting power at end of report
period (if any) (See Note 8)
Particulars about shareholders with over 5% of shares, or top 10 shareholders
Frozen or
Share Shares held at Changed in Amount of Amount of
Properties of pledged
Name of the shareholder proportion the end of the report unconditional unconditio
shareholder Status of Amo
% report term period shares held nal shares
shares unt
China Southern Industry State-owned
71.13% 84,906,250 84,906,250 0
Group Co., Ltd. legal person
Domestic
Gu Zuocheng 1.89% 2,261,000 2,261,000 0
natural person
Domestic
Anhui Hengsheng
non-state-own
Economic Development 1.46% 1,750,000 1,750,000 0
ed legal
Group Co., Ltd.
person
Domestic
Feng Yonghui 0.42% 500,000 500,000 0
natural person
Domestic
Liu Dan 0.42% 495,676 0 495,676
natural person
Domestic
Hu Zhihong 0.31% 366,864 0 366,864
natural person
Domestic
Chen Houping 0.25% 301,779 0 301,779
natural person
Domestic
Fei Shunying 0.24% 280,740 0 280,740
natural person
Domestic
Xue Fang 0.21% 250,000 0 250,000
natural person
Domestic
Wang Chuxin 0.18% 220,425 0 220,425
natural person
There isnt any associated relationship between the sponsoring shareholder and the other
shareholders among the top-10 list. None of them are regarded as Acting in concert in
Notes to relationship or “action in
accordance with The rules of information disclosure on change of shareholding.
concert” among the top ten shareholders. Foreign shareholders are unknown for their condition of Associated relationship and
Acting in concert.
Top 10 holders of unconditional shares
Name of the Amount of unconditional shares held at Category of shares
shareholder end of period Category of shares Amount
Liu Dan 495,676 Foreign shares placed in domestic exchange 495,676
Hu Zhihong 366,864 Foreign shares placed in domestic exchange 366,864
Chen Houping 301,779 Foreign shares placed in domestic exchange 301,779
Fei Shunying 280,740 Foreign shares placed in domestic exchange 280,740
Xue Fang 250,000 Foreign shares placed in domestic exchange 250,000
Wang Chuxin 220,425 Foreign shares placed in domestic exchange 220,425
He Lizhuan 160,000 Foreign shares placed in domestic exchange 160,000
Luo Xiangwei 136,771 Foreign shares placed in domestic exchange 136,771
Huang Lianna 134,950 Foreign shares placed in domestic exchange 134,950
Chen Yuqi 128,000 Foreign shares placed in domestic exchange 128,000
Action-in-concert
among top 10
non-restricted
There isnt any associated relationship between the sponsoring shareholder and the other shareholders among the
current share
top-10 list. None of them are regarded as Acting in concert in accordance with The rules of information
holders, top 10
disclosure on change of shareholding. Foreign shareholders are unknown for their condition of Associated
non-restricted
relationship and Acting in concert.
current share
holders and top
10 shareholders
22
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Was there any agreed repurchasing trade by shareholders in the report period
[] Yes [V] No
No agreed repurchasing trade by shareholders in the report period
III. Change of holding shareholder or substantial controller
Change of holding shareholder
[] Applicable; [V] Not applicable
No change of holding shareholder in the report period.
Change of substantial controller
[] Applicable; [V] Not applicable
No change of substantial controller in the report period.
IV. Proposals raised by the shareholders or their action-in-concert parties about increasing of
shareholding
To the knowledge of the Company, there is not any proposal raised by the shareholders or their action-in-concert
parties about increasing of shareholding.
23
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
Chapter VII. Particulars about Preference Shares
I. Offering and listing of preference shares in the report period
[] Applicable; [V] Not applicable
II. Number of shareholders and shareholding status of preference shares
[] Applicable; [V] Not applicable
III. Repurchasing or converting of preference shares
1. Repurchasing of preference shares
[] Applicable; [V] Not applicable
2. Converting of preference shares
[] Applicable; [V] Not applicable
IV. Restoring and executing of voting powers attached to preference shares
[] Applicable; [V] Not applicable
V. Accounting polices on preference shares and reasons
[] Applicable; [V] Not applicable
24
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
Chapter VIII. Particulars about the Directors, Supervisors and Senior
Executives
I. Change of shareholding of directors, supervisors and senior executives
No changes happened to any of the directors, supervisors, or executives in the report period. For details please
refer to the Annual Report 2013.
II. Replacing of directors, supervisors, and executives
Name Jobs taken Type Date Causation
Chen Xingshu Independent Director Expiration of term May 23, 2014 Shifting of terms
Wang Jun Independent Director Expiration of term May 23, 2014 Shifting of terms
Yu Jianfeng Independent Director Expiration of term May 23, 2014 Shifting of terms
Cheng Yuanwei Independent Director Expiration of term May 23, 2014 Shifting of terms
Li Dingqing Independent Director Elected May 23, 2014 Shifting of terms
Li Jiaming Independent Director Elected May 23, 2014 Shifting of terms
Peng Yu Independent Director Elected May 23, 2014 Shifting of terms
Liu Zhiqiang Independent Director Elected May 23, 2014 Shifting of terms
25
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
Chapter IX. Financial Report
I. Auditors’ Report
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 Opening balance
Current asset:
Monetary capital 326,386,848.15 388,314,602.28
Settlement provision
Outgoing call loan
Transactional financial assets
Notes receivable 107,985,994.18 81,253,424.87
Account receivable 295,262,525.96 311,899,501.77
Prepayment 34,268,675.30 32,738,242.83
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable
Dividend receivable
Other account receivable 23,530,757.14 23,946,335.95
Repurchasing of financial assets
Inventories 285,155,181.44 299,191,811.74
Non-current asset due in 1 year
Other current asset
Total of current asset 1,072,589,982.17 1,137,343,919.44
Non-current assets
Disburse of consigned loans
Sellable financial asset
Expired investment in possess
Long-term receivable
Long-term share equity investment 671,133,878.34 689,241,790.19
Investment real estates
Fixed assets 743,028,849.83 763,705,401.21
Construction in process 12,140,234.86 11,013,703.97
Engineering goods
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 95,948,083.77 103,611,915.99
R&D expense 34,878,570.44 27,603,929.21
Goodwill
Long-term amortizable expenses 8,768,232.55 7,928,011.24
Deferred income tax asset 3,564,354.64 3,564,354.64
Other non-current asset 204,000.00 408,000.00
Total of non-current assets 1,569,666,204.43 1,607,077,106.45
Total of assets 2,642,256,186.60 2,744,421,025.89
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
Current liabilities
Short-term loans 685,151,878.05 896,805,047.85
Loan from Central Bank
Deposit received and hold for others
Call loan received
Transactional financial liabilities
Notes payable 901,622,914.28 742,696,400.00
Account payable 562,692,125.34 536,553,953.76
Advances received 33,528,097.89 29,177,260.79
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 2,437,706.87 2,619,043.15
Tax payable 116,985,001.35 124,374,241.36
Interest payable
Dividend payable
Other account payable 21,907,907.45 32,539,679.76
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1 year 52,000,000.00 98,000,000.00
Other current liability
Total of current liability 2,376,325,631.23 2,462,765,626.67
Non-current liabilities
Long-term borrowings 170,000,000.00 129,000,000.00
Bond payable
Long-term payable
Special payable 738,000.00 738,000.00
Expected liabilities 3,226,654.00
Deferred income tax liability
Other non-recurring liabilities
Total of non-current liabilities 173,964,654.00 129,738,000.00
Total of liability 2,550,290,285.23 2,592,503,626.67
Owners’ equity (or shareholders’ equity)
Capital paid in (or share capital) 119,375,000.00 119,375,000.00
Capital reserves 960,515,317.59 960,515,317.59
Less: Shares in stock
Special reserves
Surplus reserves 125,686,000.00 125,686,000.00
Common risk provision
Retained profit -1,114,154,939.48 -1,054,193,118.04
Different of foreign currency translation
Total of owner’s equity belong to the parent company 91,421,378.11 151,383,199.55
Minor shareholders’ equity 544,523.26 534,199.67
Total of owners equity (or shareholders equity) 91,965,901.37 151,917,399.22
Total of liability and shareholders equity (or owners equity) 2,642,256,186.60 2,744,421,025.89
Legal representative: Li Huaguang CFO: Teng Feng Accounting Manager: Liao Jian
27
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
2. Balance Sheet of the Parent Company
Prepared by: Chongqing Jianshe Motorcycle Co., Ltd.
In RMB Yuan
Items Closing balance Opening balance
Current asset:
Monetary capital 123,750,443.34 228,624,992.89
Transactional financial assets
Notes receivable 52,712,228.89 39,803,978.66
Account receivable 3,764,958.75 4,802,644.17
Prepayment 19,356,042.59 18,601,531.02
Interest receivable
Dividend receivable
Other account receivable 205,965,529.71 208,879,559.83
Inventories 75,151,046.02 79,555,340.09
Non-current asset due in 1 year
Other current asset
Total of current asset 480,700,249.30 580,268,046.66
Non-current assets
Sellable financial asset
Expired investment in possess
Long-term receivable
Long-term share equity investment 819,166,406.22 837,478,318.07
Investment real estates
Fixed assets 600,628,901.97 615,254,019.58
Construction in process 12,130,957.86 11,013,703.97
Engineering goods
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 83,470,971.51 90,978,642.33
R&D expense 34,878,570.44 27,603,929.21
Goodwill
Long-term amortizable expenses 2,636,688.14 1,815,694.12
Deferred income tax asset
Other non-current asset
Total of non-current assets 1,552,912,496.14 1,584,144,307.28
Total of assets 2,033,612,745.44 2,164,412,353.94
Current liabilities
Short-term loans 378,800,000.00 420,000,000.00
Transactional financial liabilities
Notes payable 418,525,714.28 439,186,400.00
Account payable 526,760,690.60 504,942,097.46
Advances received 5,662,539.58 3,162,370.27
Employees’ wage payable 1,510,404.44 1,356,068.19
Tax payable 123,425,180.62 125,804,653.87
Interest payable
Dividend payable
Other account payable 184,320,158.09 239,108,166.57
Non-current liability due in 1 year 6,000,000.00 94,000,000.00
Other current liability
Total of current liability 1,645,004,687.61 1,827,559,756.36
Non-current liabilities
Long-term borrowings 132,000,000.00 47,000,000.00
Bond payable
Long-term payable
Special payable 738,000.00 738,000.00
Expected liabilities 3,226,654.00
28
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
Deferred income tax liability
Other non-recurring liabilities
Total of non-current liabilities 135,964,654.00 47,738,000.00
Total of liability 1,780,969,341.61 1,875,297,756.36
Owners’ equity (or shareholders’ equity)
Capital paid in (or share capital) 119,375,000.00 119,375,000.00
Capital reserves 958,575,094.29 958,575,094.29
Less: Shares in stock
Special reserves
Surplus reserves 125,686,000.00 125,686,000.00
Common risk provision
Retained profit -950,992,690.46 -914,521,496.71
Different of foreign currency translation
Total of owners equity (or shareholders equity) 252,643,403.83 289,114,597.58
Total of liability and shareholders equity (or owners equity) 2,033,612,745.44 2,164,412,353.94
Legal representative: Li Huaguang CFO: Teng Feng Accounting Manager: Liao Jian
29
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
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 947,170,876.95 926,465,613.86
Incl. Business income 947,170,876.95 926,465,613.86
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 1,021,120,764.61 988,966,564.36
Incl. Business cost 830,409,735.03 794,114,222.16
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 11,202,024.04 9,109,594.93
Sales expense 48,705,024.38 56,501,111.61
Administrative expense 81,594,632.24 76,760,982.40
Financial expenses 50,277,451.79 52,395,890.25
Asset impairment loss -1,068,102.87 84,763.01
Plus: gains from change of fair value (“-“ for loss)
Investment gains (“-“ for loss) 17,158,088.15 28,962,896.45
Incl. Investment gains from affiliates 17,362,088.15 29,397,912.33
Exchange gains (“-“ for loss)
III. Operational profit (“-“ for loss) -56,791,799.51 -33,538,054.05
Plus: Non business income 409,274.21 914,603.13
Less: Non-business expenses 3,350,486.22 32,565.79
Incl. Loss from disposal of non-current assets 110,483.37
IV. Gross profit (“-“ for loss) -59,733,011.52 -32,656,016.71
Less: Income tax expenses 218,486.34 75,293.70
V. Net profit (“-“ for net loss) -59,951,497.86 -32,731,310.41
Including: Net profit realized by the entity taken over before the
takover
Net profit attributable to the owners of parent company -59,961,821.44 -33,126,243.42
Minor shareholders’ equity 10,323.58 394,933.01
VI. Earnings per share: -- --
(I) Basic earnings per share -0.5023 -0.2775
(II) Diluted earnings per share -0.5023 -0.2775
VII. Other misc. incomes
VIII. Total of misc. incomes -59,951,497.86 -32,731,310.41
Total of misc. incomes attributable to the owners of the parent
-59,961,821.44 -33,126,243.42
company
Total misc gains attributable to the minor shareholders 10,323.58 394,933.01
Legal representative: Li Huaguang CFO: Teng Feng Accounting Manager: Liao Jian
30
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
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 828,171,046.63 915,410,829.46
Less: Operation cost 775,195,001.89 854,745,965.65
Business tax and surcharge 9,001,316.89 8,339,913.14
Sales expense 7,659,386.88 8,290,613.47
Administrative expense 61,989,417.90 57,067,182.54
Financial expenses 24,870,945.77 34,658,008.15
Asset impairment loss 1,543.84 -45,535.88
Plus: gains from change of fair value (“-“ for loss)
Investment gains (“-“ for loss) 17,158,088.15 28,962,896.45
Incl. Investment gains from affiliates 17,362,088.15 29,397,912.33
II. Operational profit (“-“ for loss) -33,388,478.39 -18,682,421.16
Plus: Non business income 160,221.33 268,345.85
Less: Non-business expenses 3,242,936.69
Incl. Loss from disposal of non-current assets 3,983.84
III. Total profit (“-“ for loss) -36,471,193.75 -18,414,075.31
Less: Income tax expenses
IV. Net profit (“-“ for net loss) -36,471,193.75 -18,414,075.31
V. Earnings per share -- --
(I) Basic earnings per share -0.3055 -0.1543
(II) Diluted earnings per share -0.3055 -0.1543
VI. Other misc gains
VII. Total of integrated income -36,471,193.75 -18,414,075.31
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 602,732,563.44 655,679,900.14
Net increase of customer deposits and capital kept for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Net increase of trade financial asset disposal
Cash received as interest, processing fee, and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned 7,424,555.79 11,334,284.89
Other cash received from business operation 4,423,843.54 11,479,176.23
Sub-total of cash inflow from business activities 614,580,962.77 678,493,361.26
Cash paid for purchasing of merchandise and services 346,854,154.55 533,660,228.09
Net increase of client trade and advance
Net increase of savings in central bank and brother company
31
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
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 94,882,001.88 109,255,745.27
Taxes paid 34,976,551.72 15,771,556.13
Other cash paid for business activities 33,221,379.22 38,180,009.36
Sub-total of cash outflow from business activities 509,934,087.37 696,867,538.85
Cash flow generated by business operation, net 104,646,875.40 -18,374,177.59
II. Cash flow generated by investing
Cash received from investment retrieving 1,181.71
Cash received as investment profit 35,470,000.00 30,470,000.00
Net cash retrieved from disposal of fixed assets, intangible assets, and
6,150.00 1,850.00
other long-term assets
Net cash received from disposal of subsidiaries or other operational units
Other investment-related cash received 3,359.73
Sub-total of cash inflow due to investment activities 35,476,150.00 30,476,391.44
Cash paid for construction of fixed assets, intangible assets and other
4,426,993.52 8,857,897.34
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 4,426,993.52 8,857,897.34
Net cash flow generated by investment 31,049,156.48 21,618,494.10
III. Cash flow generated by financing
Cash received as investment
Incl. Cash received as investment from minor shareholders
Cash received as loans 604,502,536.33 626,071,134.54
Cash received from bond placing
Other financing-related cash received 782,532,081.15 783,245,051.60
Subtotal of cash inflow from financing activities 1,387,034,617.48 1,409,316,186.14
Cash to repay debts 754,354,202.21 636,415,323.25
Cash paid as dividend, profit, or interests 41,261,669.10 56,575,611.69
Incl. Dividend and profit paid by subsidiaries to minor shareholders
Other cash paid for financing activities 878,896,354.69 711,611,083.98
Subtotal of cash outflow due to financing activities 1,674,512,226.00 1,404,602,018.92
Net cash flow generated by financing -287,477,608.52 4,714,167.22
IV. Influence of exchange rate alternation on cash and cash equivalents 559,348.86 -1,037,268.14
V. Net increase of cash and cash equivalents -151,222,227.78 6,921,215.59
Plus: Balance of cash and cash equivalents at the beginning of term 170,222,347.76 81,609,913.40
VI. Balance of cash and cash equivalents at the end of term 19,000,119.98 88,531,128.99
Legal representative: Li Huaguang CFO: Teng Feng Accounting Manager: Liao Jian
32
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6. Cash Flow Statement of the Parent Co.
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 370,834,572.00 528,449,926.55
Tax returned 3,620,265.99 3,833,989.64
Other cash received from business operation 1,144,720.91 294,143.17
Sub-total of cash inflow from business activities 375,599,558.90 532,578,059.36
Cash paid for purchasing of merchandise and services 300,883,941.50 464,480,646.09
Cash paid to staffs or paid for staffs 73,190,739.04 83,520,212.50
Taxes paid 11,367,643.37 10,991,492.52
Other cash paid for business activities 10,117,170.75 11,693,009.43
Sub-total of cash outflow from business activities 395,559,494.66 570,685,360.54
Cash flow generated by business operation, net -19,959,935.76 -38,107,301.18
II. Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment profit 35,470,000.00 30,470,000.00
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
Sub-total of cash inflow due to investment activities 35,470,000.00 30,473,036.29
Cash paid for construction of fixed assets, intangible assets and other
3,502,656.72 7,525,352.34
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 3,502,656.72 7,525,352.34
Net cash flow generated by investment 31,967,343.28 22,947,683.95
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 459,771,901.03 499,000,000.00
Cash received from bond placing
Other financing-related cash received 1,462,577,362.13 1,528,592,481.14
Subtotal of cash inflow from financing activities 1,922,349,263.16 2,027,592,481.14
Cash to repay debts 543,200,000.00 519,000,000.00
Cash paid as dividend, profit, or interests 25,122,234.72 35,986,667.10
Other cash paid for financing activities 1,510,137,084.48 1,450,129,661.64
Subtotal of cash outflow due to financing activities 2,078,459,319.20 2,005,116,328.74
Net cash flow generated by financing -156,110,056.04 22,476,152.40
IV. Influence of exchange rate alternation on cash and cash equivalents
V. Net increase of cash and cash equivalents -144,102,648.52 7,316,535.17
Plus: Balance of cash and cash equivalents at the beginning of term 148,232,292.69 51,835,684.99
VI. Balance of cash and cash equivalents at the end of term 4,129,644.17 59,152,220.16
Legal representative: Li Huaguang CFO: Teng Feng Accounting Manager: Liao Jian
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
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
Capital Minor Total of
Items Less: Common
paid in (or Capital Special Surplus Retained shareholders owners’
Shares in risk Others ’ equity
share reserves reserves reserves profit equity
stock provision
capital)
119,375,0 960,515,3 125,686,0 -1,054,19 151,917,399.
I. Balance at the end of last year 534,199.68
00.00 17.59 00.00 3,118.04 23
Plus: Change of accounting
policy
Correcting of previous
errors
Others
II. Balance at the beginning of current 119,375,0 960,515,3 125,686,0 -1,054,19 151,917,399.
534,199.68
year 00.00 17.59 00.00 3,118.04 23
III. Amount of change in current term -59,961,8 -59,951,497.8
10,323.58
(“-“ for decrease) 21.44 6
-59,961,8 -59,951,497.8
(I) Net profit 10,323.58
21.44 6
(II) Other misc. income
-59,961,8 -59,951,497.8
Total of (I) and (II) 10,323.58
21.44 6
(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
119,375,0 960,515,3 125,686,0 -1,114,15 91,965,901.3
IV. Balance at the end of this term 544,523.26
00.00 17.59 00.00 4,939.48 7
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
Amount of Last Year
In RMB Yuan
Amount of Last Year
Owners’ Equity Attributable to the Parent Company
Capital Minor Total of
Items Less: Common
paid in (or Capital Special Surplus Retained shareholders owners’
Shares in risk Others ’ equity
share reserves reserves reserves profit equity
stock provision
capital)
477,500,0 602,880,5 125,686,0 -1,063,62 2,548,718.2 144,990,969.
I. Balance at the end of last year
00.00 17.59 00.00 4,266.50 9 38
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 current 477,500,0 602,880,5 125,686,0 -1,063,62 2,548,718.2 144,990,969.
year 00.00 17.59 00.00 4,266.50 9 38
III. Amount of change in current term -33,126,2 -32,721,510.4
9,800.00 394,933.01
(“-“ for decrease) 43.42 1
-33,126,2 -32,731,310.4
(I) Net profit 394,933.01
43.42 1
(II) Other misc. income
-33,126,2 -32,731,310.4
Total of (I) and (II) 394,933.01
43.42 1
(III) Investment or decreasing of
9,800.00 9,800.00
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)
4. Others
(V) Internal transferring of owners’
equity
1. Capitalizing of capital reserves (or
to capital shares)
2. Capitalizing of surplus reserves (or
to capital shares)
3. Making up losses by surplus
reserves
4. Others
(VI) Special reserves
1. Provided this year
2. Used this term
(VII) Others
477,500,0 602,890,3 125,686,0 -1,096,75 2,943,651.3 112,269,458.
IV. Balance at the end of this term
00.00 17.59 00.00 0,509.92 0 97
Legal representative: Li Huaguang CFO: Teng Feng Accounting Manager: Liao Jian
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
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
Capital paid Total of
Items Capital Less: Shares Special Surplus Common risk Retained
in (or share owners’
reserves in stock reserves reserves provision profit
capital) equity
119,375,000. 958,575,094. 125,686,000. -914,521,496 289,114,597.
I. Balance at the end of last year
00 29 00 .71 58
Plus: Change of accounting policy
Correcting of previous errors
Others
II. Balance at the beginning of current 119,375,000. 958,575,094. 125,686,000. -914,521,496 289,114,597.
year 00 29 00 .71 58
III. Amount of change in current term -36,471,193. -36,471,193.
(“-“ for decrease) 75 75
-36,471,193. -36,471,193.
(I) Net profit
75 75
(II) Other misc. income
-36,471,193. -36,471,193.
Total of (I) and (II)
75 75
(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
119,375,000. 958,575,094. 125,686,000. -950,992,690 252,643,403.
IV. Balance at the end of this term
00 29 00 .46 83
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
Amount of Last Year
In RMB Yuan
Amount of Last Year
Capital paid Total of
Items Capital Less: Shares Special Surplus Common risk Retained
in (or share owners’
reserves in stock reserves reserves provision profit
capital) equity
477,500,000. 600,940,294. 125,686,000. -919,389,711 284,736,583.
I. Balance at the end of last year
00 29 00 .10 19
Plus: Change of accounting policy
Correcting of previous errors
Others
II. Balance at the beginning of current 477,500,000. 600,940,294. 125,686,000. -919,389,711 284,736,583.
year 00 29 00 .10 19
III. Amount of change in current term -18,414,075. -18,404,275.
9,800.00
(“-“ for decrease) 31 31
-18,414,075. -18,414,075.
(I) Net profit
31 31
(II) Other misc. income
-18,414,075. -18,414,075.
Total of (I) and (II)
31 31
(III) Investment or decreasing of capital
9,800.00 9,800.00
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)
4. Others
(V) Internal transferring of owners’
equity
1. Capitalizing of capital reserves (or to
capital shares)
2. Capitalizing of surplus reserves (or to
capital shares)
3. Making up losses by surplus reserves
4. Others
(VI) Special reserves
1. Provided this year
2. Used this term
(VII) Others
477,500,000. 600,950,094. 125,686,000. -937,803,786 266,332,307.
IV. Balance at the end of this term
00 29 00 .41 88
Legal representative: Li Huaguang CFO: Teng Feng Accounting Manager: Liao Jian
III. Company Profiles
Chongqing Jianshe Motorcycle Co., Ltd. (formerly Shenzhen Northern Jianshe motorcycle Co., Ltd., hereafter
referred as the Company) was incorporated on July 15, 1995 with business license No. 5000001805583. Office
address is No.1 Jianshe Road, Huaxi Industrial Zone, Banan, Chongqing, legal representative is Mr. Li Huaguang.
The Company is mainly devoted in manufacturing and technical service of motorcycles, electronic bikes, auto
parts, accessories, and machinery products; designing, manufacturing, and service of industrial modules (except
for national special items); R&D, production, and sales of motorcycle engines; R&D and manufacturing of
electro-mechanical products, home appliances, bicycles, environmental protection products; import, wholesale,
retail, and agency (exclude auction) of the above products (except for special items recognized by the authority).
The B-stocks issued by the Company were listed in Shenzhen Stock Exchange on July 25, 1995.
The Company is a corporation promoted by Jianshe Industry (Group) Co., Ltd. (Jianshe Group) and China
Northern Industry Shenzhen Company. On Dec. 30, 2002, the companys provisional 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.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
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 judgment No.21-4 on bankruptcy 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.
On March 21, 2012, Anhui Hengsheng Economic Development Group took over the 7 million shares of
the Company formally held by Yangpu Xinyufeng Investment Co., Ltd.
As of December 31, 2012, the Company had four subsidiaries, which were: Chongqing Jianshe Sales Co., Ltd.,
Chongqing Northern Import & Export Co., Ltd., Chongqing Jianshe Automobile Air conditioner Co., Ltd., and
Shanghai Jianshe Motorcycle Co., Ltd, and another three joint ventures, which were Chongqing Jianshe Yamaha
Motorcycle Co., Ltd., Zhuzhou Jianshe Yamaha Motorcycle Co., Ltd. and Chongqing Pingshan Taikai Carburetor
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. Principal Accounting Policies, Estimations and Correcting of Previous Errors
1. Basis of financial statement
The Company prepares its financial statements on perpetual basis and accrual basis, with accordance with the
Enterprise Accounting Standard issued by the Department of Finance on February 15, 2006 – the basic rules and
38 principles, as well as the proceeding instructions, interpretations, and other rules (regarded collectively as “the
Enterprise Accounting Standard”), and also the Information Disclosure Rules No.15 – General rules of financial
statements (Revised 2010) issued by China Securities Regulatory Commission.
2. Statement of compliance to the Enterprise Accounting Standard
The financial statements present truly and completely the financial position, operation results and cash flow of the
company.
3. Accounting period
A fiscal year starts from January 1 and ends at December 31 of a calendar year.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
4. Standard currency for bookkeeping
The Company uses Renminbi (RMB) as the standard currency for 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.
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. Accounting policies on losing of control by disposal of share equity in multiple stages
(1) Recognition of “packaged trade”
(2) Accounting of “packaged trade”
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
(3) Accounting of “non-packaged trade”
7. Preparing method of consolidated financial statements
(1) Preparation of consolidated financial statements
The scope of consolidation of consolidated financial statements is determined based on control. All the subsidies
have been consolidated into the scope of consolidation for this period ended.
(2) Accounting process on purchasing and selling, or selling and purchasing of the shares of the same
subsidiary in successively two years
The accounting policy and accounting period of the subsidiaries within the consolidation scope shall be in
accordance with those of “the Company”. If not, it is necessary to make the adjustment according to the
Companys accounting policies and accounting period when preparing the consolidated financial statements.
The impact of transactions between the Company and its subsidiaries and inter-subsidiaries for the consolidated
balance sheet, consolidated income statement, consolidated statement of cash flow and consolidated statement of
changes of equity are eliminated when preparing the consolidated financial statements.
Where losses applicable to the minority exceed the minority’ interests in the beginning equity of a subsidiary, the
excess, are charged against the minoritys interests.
a. Increase of subsidiaries
During the reporting period, if the increase in 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.
b. The disposal of subsidiaries
i. General method
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.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
ii. Disposal in steps
Generally
When the situation is that the main company disposes subsidiaries in steps of several trading until losing controls,
if the terms of trading which affect the equity investment in subsidiaries satisfied one or more conditions below, it
should be recognized as a package deal and the relevant accounting treatment should be followed:
The transactions are made under considerations or made at the same time
The transactions will turn out a business result when they are treated as a whole
One transaction depends on another
One transaction is not beneficial while it is beneficial with another one
If the disposal belong the package deal, main company should record the dealings as disposal of subsidiaries until
losing controls. However, the differences between disposal expenses and incomes without losing controls should
be presented as other comprehensive income in the consolidated financial statements which will be transferred
into the profit and loss of current period.
Before losing controls, the disposal of subsidiaries under one package deal, the accounting treatment should abide
by Note 6 (2) d disposal of partly share investment in subsidiaries without losing controls. When controls are
losing, the accounting treatment should follow the Note 6 (2) b i general methods.
c. Purchasing minority shares of subsidiaries
The difference between newly acquired long-term equity investment due to purchasing minority shares from
subsidiaries and identified assets in subsidiaries due to new ratio of shareholding from the purchasing date, should
be recorded as an adjustment in the term of Equity of premium of Capital reserves in the consolidated statements.
When equity of premium is not enough to reduce, retained earnings should be adjusted.
d. Disposal of partly share investment in subsidiaries without losing controls
The difference between disposal prices and identified net assets in subsidiaries which are relevant to the long-term
investments of main company should be adjusted into equity of premium of capital reserves in consolidated
financial statements. When equity of premium is not enough to reduce, retained earnings should be adjusted.
8. Recognition basis of cash and cash equivalents
At preparing of cash flow statement, those investments, which are featured with short term (expire within 3
months since purchased), high liquidity, easy to convert to know cash, low in risk of value change, could be
recognized as cash equivalents. Equity investment are not recognized as cash equivalents.
9. Translation of businesses and accounts in foreign currency
(1) Business in foreign currency
Business transactions involving with foreign currencies occurred are booked and translated into RMB at the rate
announced by Peoples Bank of China of the day.
(2) Translating of financial statements in foreign currencies
The foreign currency monetary items shall be translated at the spot exchange rate on the balance sheet date. The
balance of exchange arising from the difference between the spot exchange rate on the balance sheet date and the
spot exchange rate at the time of initial recognition or prior to the balance sheet date shall be recorded into the
profits and losses at the current period. The foreign currency non-monetary items measured at the historical cost
shall still be translated at the spot exchange rate on the transaction date, of which the amount of functional
currency shall not be changed. The foreign currency non-monetary items measured at the fair value shall still be
translated at the spot exchange rate on the date of confirming the fair value and the balance of exchange arising
from it shall be recorded into profits and losses at the current period or capital reserves.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
10. Financial instruments
Financial instruments include financial assets, financial liabilities and equity instruments.
(1) Categorising 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.
(2) Recognition basis and measurement of financial instruments
(3) Recognition basis and measurement for transferred financial assets
(a) The financial assets(financial liabilities) at fair value through profit or loss includes:
The financial assets (financial liabilities) at fair value through profit or loss are recognized initially at fair value
(minus cash dividends declared but not received or bond interest matured but not drawn yet). The relevant
transaction cost is recognized in the income statement when occurred.
Interests or cash dividends during the period of holding are recognized as investment gains. The fair value will be
adjusted and accounted as current gain/loss.
When disposed, the differences between fair value and initial amount are recognized as investment gains, and thus
adjust the gain/loss of fair value.
(b) Held-to-maturity investment
The Held-to-maturity investments are recognized initially at fair value (minus bond interest matured but not
drawn yet). The relevant transaction cost is recognized in the income statement when occurred.
The held-to-maturity investments are measured at amortized cost using the effective interest rate. The interest
income is recognized as investment income. The effective interest will be determined at the initial recognition and
will not be changed in the holding period or within the applicable period.
When disposing the held-to-maturity investment, the difference between the investing proceeds and the carrying
value is recognized as investment income.
(c) 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
Available for sale financial assets are initially recorded at fair value plus any directly attributable transaction costs
on the trade date and subsequently re-measured at fair value. The price including the declared but not received
bond interest or cash dividend is recognized as a separate item.
The Company recognizes the interest or cash dividends as investment income. At each balance sheet date,
available-for-sale financial assets are measured at fair value and the fair value changes are recognized in the
capital reserve - other capital reserve.
The difference between the proceeds of the disposal and the carrying value should be recognized as investment
income. And the related fair value change in the equity should be transferred out, and recorded as investment
income.
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
(e) Other financial liabilities
For other financial liabilities, they are initially recognized at fair value plus any directly attributable transaction
costs. After the initial recognition, the other financial liabilities are measured at amortized cost.
(4) Termination condition for recognition of financial liabilities
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.
(a) Book value of the financial asset to be transposed;
(b) 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 :
(a) The book value of the portion whose recognition has been stopped;
(b) 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.
(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)
Except for financial assets that are measured at fair value and its change is recognized in profit or loss, account
amount of financial assets will be checked at the end of the balance date. If there is an evidence that the fair value
decreased, the provision of impairment loss should be recorded.
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
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.
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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 relocated to sellable financial assets, please state the intention or
evidence of change in capability
Impairment provision on hold-to-mature investment
Measurement of impairment provision of hold-to-mature investment is according with the methods adopted in
accounting of receivable account impairment provision.
11. 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
Individual account receivable over 5 millions, other individual receivable over 3 millions
of individual account with large amount
For large amount receivable accounts which been proved with solid evidence to impair,
the difference between the future cash flow and its book value shall be provided as bad
Basis of bad debt provision debt provision.
For large amount receivable accounts which was tested not impaired, bad debt provision
shall be provided on age analyse basis.
(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 risk group (Age analysis
Group 1 Age analysis method
method)
Bad debt provisions are provided on age analyze basis in the portfolio
[V] Applicable Not applicable
Rate of provision on receivable
Age Rate of provision on other receivable accounts
accounts
1-6 months (included) 0.00% 0.00%
6-12 Months 5.00% 5.00%
1-2 yrs 10.00% 10.00%
2-3 yrs 30.00% 30.00%
3-4 yrs 50.00% 50.00%
4-5 yrs 80.00% 80.00%
over 5 yrs 100.00% 100.00%
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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 receivable accounts with minor amount individually but proved of impairment
Basis of providing bad debt individually
with solid evidence.
For receivable accounts with minor amount individually but proved of impairment
Basis of bad debt provision with solid evidence, bad debt provision shall be recognized individually. No bad debt
provision shall be provided for the related parties in the consolidation range.
12. Inventories
(1) Inventory classification
Inventories are categorized as raw materials, products in process, and finished products, etc.
(2) Pricing of inventory to be delivered
Pricing base: weighted average
(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 the inventories 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.
Net realizable value of inventories are market price at balance date unless any indication that the market price at
balance date appears abnormally.
Recognition of irregular market price on the balance sheet date:
Recognition of realizable net value of inventory at end of period:
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(a) Realizable net value of finished products is recognized as the estimated sales price less sales expense and tax;
(b) Materials held for production are measured on costs when the realizable value is higher than the costs; whereas
when the realizable value is lower than the costs due to decline of prices, the realizable net value shall be
recognized as the estimated sales price less estimated sales expense and taxes.
(c) Realizable net value is the market price for materials for sale.
(4) Inventory system
Inventory system: perpetual inventory system
(5) Amortization of low-value consumables and packaging materials
Low price consumable
Basis of amortizing: one-off
Packaging materials
Basis of amortizing: one-off
13. Long-term equity investment
(1) Recognition of initial investment costs
The initial costs of long-term equity investment formed in enterprise merger will be decided at the following basis:
For long-term equity investment formed in merger of enterprises under same controlling, the initial investment
cost of the long-term equity investment will be the share of booked owners equity of the enterprise been merged.
The expenses directly related to the merger will be counted as gain/loss of the current term instantly. For
long-term equity investment formed in merger of enterprises under different controlling, the initial investment
cost of the long-term equity investment will be upon the capital paid to acquire the ownership, liabilities
undertaken, and the fair value of equity securities placed. The expenses directly related to the merger will be
counted as initial investment cost directly.
For long-term investment obtained in term of cash payment, its initial investment cost will be the actual price paid.
Initial investment cost includes expenses, taxes and other necessary expenditures directly related to obtaining of
the long-term investment, however the cash dividend announced but not collected included in the actual price
shall be booked particularly as one of the receivables.
Long-term equity investment obtained through issuing of equity stocks, the initial investment cost shall be
accounted at the fair value of the equity stocks issued.
Long-term equity investments input by investors are initialized at the value stipulated by the investment contract
or agreement, except for those contracted values are not fairly acceptable.
Long-term equity investment obtained through exchange of non-monetary assets, if this trade is commercial and
the fair values of the assets been traded are able to be reliably measured, then the fair value of outgoing asset will
be used as the initial investment cost. The difference between the fair value and book value of the outgoing asset
is accounted into current gain/loss account. If the non-monetary asset trade is not satisfying both of the above
conditions, then the book value of the outgoing asset and taxes will be adopted as the initial investment cost.
Long-term equity investments acquired through debt reorganizing, the initial investment costs are recognized at
the fair value of the equity acquired. The differences between the investment cost and the book value of the credit
are accounted into current gain/loss account.
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(2) Successive measurement and recognition of gain/loss
The Company adopts cost basis for accounting of long-term equity investments in subsidiaries and other equity
investments. At preparing of the consolidated financial statements, the long-term equity investment in subsidiaries
are adjusted on equity basis.
Equity basis is also adopted in accounting of long-term equity investment in joint ventures and associated
enterprises.
At balance sheet day, if there is indication showing impairment occurred on the long-term equity investment in
subsidiaries, long-term equity investment in joint-ventures, and long-term equity investment in associated
enterprises, the recoverable amount shall be evaluated, when the recoverable amount is lower than the book value,
the impairment loss shall be recognized and accounted into current gain/loss, and long-term equity investment
impairment provision shall be provided thereof. When impairment occurred to other equity investment, the
differences between the current value of future cash flow determined with reference to the income rate of similar
financial assets in the market shall be recognized as impairment losses and accounted into current gain/loss, and
long-term equity investment impairment provision shall be provided thereof. None of the above long-term equity
investment impairment provision shall be written back in subsequent terms.
Long-term equity investments accounted on cost basis are priced at initial investment costs. Supplementary or
retrieved investments are adjusted to the cost of long-term equity investment. Cash dividend or profit distribution
announced by the investee are recognized as investment gains of the current term. Recognition of investment
gains is limited to the allocated amount of the accumulated net profit after the investment has been made. The
exceeding part of profit or cash dividend over the above amount is treated as retrieving of initial investment cost.
Long-term equity investment accounted on equity basis, investment gain/loss is recognized at the share of net
gain/loss realized by the investee and adjusted to the book value of the long-term equity investment. Profit
distribution or cash dividend announced or delivered by the investee shall be deducted from the book value of
long-term equity investment. Other change of owners equity by the investee other than net gain/loss shall be
adjusted to the book value of the long-term equity investment and accounted into owners equity.
At disposal of long-term equity investment, the difference between the book value and actual consideration shall
be accounted into current gain/loss account. For long-term equity investment on equity baisis, the changes in
owners equity other than gain/loss accounted into owners equity, it will be transferred over to current gain/loss
from the part originally accounted into owners equity when disposed.
(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.
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14. Investment property
15. 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
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.
(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.
Categories Depreciation age (year) Retain value rate Annual depreciation ratio
Houses & buildings 30-35 3.00% 2.77-3.23
Equipment & machinery 7-14 3.00% 6.93-13.86
Transportation equipment 8 3.00% 12.13
Office device and others 5 3.00% 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.
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(5) Other remarks
16. Construction-in-process
(1) Categories of construction-in-process
Construction-in-process is accounted according by subject categories.
(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.
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 Company 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 current gain/loss account. Impairment provisions shall be
provided correspondingly.
Impairment loss shall not be written back as soon as recognized.
17. 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
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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) Capitalizing period of borrowing expenses
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) Temporarily suspension of capitalizing period
If the construction or production of assets satisfying the capitalizing conditions is suspended abnormally for over
3 months, capitalizing of borrowing expenses shall be suspended. Borrowing expenses occurred in the suspension
period are recognized as expenses and recorded to current income account, until the construction or production is
resumed. If the suspension is an essential process to make the asset usable or sellable, capitalizing of borrowing
expenses shall be carried forward.
(4) Calculating of borrowing expense capitalizing
The computation of the capitalization amount：
1- the 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；
2- using 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；
3- the 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.
18. Biological assets
19. Petroleum assets
20. Intangible assets
(1) Pricing of intangible assets
(a) Initial recognition
Intangible assets are land using rights, patents, and non-patent technologies, which are measured at cost basis.
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(b) Subsequent measurement
Intangible assets are categorized to limited useful life and unlimited useful life according to their estimated
beneficial period, whereas those cant be estimated are categorized as intangible assets without definite useful life.
For intangible assets with limited useful life, its amortizable amount shall be amortized rationally through its
useful life, if the realizing way is not able to be reliably predicted, straight amortizing shall be applied.
The Company reviews, at least once at end of each year, the useful life and amortizing method of the intangible
assets with limited useful life, and shall adjust when necessary.
Intangible assets without definite useful life are not amortized, but reviewing shall be performed on the useful life,
and impairment test as well.
On the balance sheet day, when there is sign of impairment on the intangible asset, intangible asset impairment
provision shall be provided according to 15. Asset Impairment hereafter.
(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
(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 intangible assets to estimate its recoverable value. When evidences showing that
impairment has happened on the intangible asset, the recoverable amount shall be estimated basing on the
individual intangible asset. If it is hard to evaluate the recoverable amount of the individual asset, it shall be
evaluated along with the group of intangible assets.
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.
(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：
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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.
21. 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 straight to the beneficiary period.
22. Asset transferring with repurchasing terms
17. 23. Accrued liabilities
When the company is involved in litigation, debt guarantees, loss of contracts, reorganization, it shall be
recognized as accrued liabilities if the company will pay assets or offer service in reliable amount in future
periods.
(1)Recognition standards of accrued liabilities
This obligation is the actual obligation the company undertakes.
a. This is the current obligation of the company
b. It probably leads to the outflow of economic benefits
c. the reliable estimate can be made of its amount.
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(2)Valuation method of accrued liabilities
The accrued liabilities are measured initially at the optimal estimates of the expenses of fulfilling the actual
obligation. If the expenses cover the serial range and the possibility of various results occurred is the same, the
optimal estimate is the mean of this range. If relating to several projects, the optimal estimate is identified in
accordance with the possible result of its probability.
At the end of reporting period, the book value of the accrued liabilities should be reviewed. If there is any
evidence that can demonstrate the book value does not reflect the current optimal estimate, the book value should
be adjusted to the current optimal estimate.
24. 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
25. Repurchasing of the Company’s shares
26. Revenue
(1) Recognition time for sales of goods
a. General principles of revenue recognition and measurement
the risks and rewards of ownership have been transferred to buyers; the company neither maintains the right of
continuing management that is related to ownership, nor implements control over goods sold; the amount of
revenue can be measured reliably； the future economic benefits probably flow to the company； 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)Recognition and measurement of 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.
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
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(3) Basis of recognizing service income
(4) According to the percentage completion method to confirm the income and the building contract
services revenue recognition and measurement principles
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.
27. Government allowance
(1) Categories
Government grant is the monetary and non-monetary assets of companies getting from government for free.
Government grants include government grant related to assets and government grant related to income.
Government grant related to assets, referred to those grant which are used to build long-term assets. It includes
grants to buy fixed assets and intangible assets, and compensations of interests of borrowings to buy fixed assets.
Government grants related profit and loss, excluded those grants related to assets.
The specific standard of grants related to assets: there is a government document which says the grants should
only be used to buy or build other long-term assets.
The specific standard of grants related to profit and expenses: there is a government document which says the
grants should only be used to relevant expenses and loss.
For those grants without specific government document, the standard is: according to the actual situation, if the
grants cannot be recognized as an investment grants, the standard should follow Accounting standard for business
enterprises NO.16---Government Grants.
(2) Accounting policy
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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28. 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
unrecognised 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.29. 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
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 instalment 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.
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(2) Accounting treatment of financed leasing
(3) Accounting treatment of renting back after sales
30. Sellable assets in possession
(1) Recognition of sellable assets in possession
Non-current assets satisfying all of the following conditions are recognized as sellable assets in possession:
(1) Resolutions had been made on selling of the asset by the Company;
(2) Irrevocable transferring agreement had been engaged;
(3) Transferring of the asset will be done within one year.
(2) Accounting treatment of sellable assets in possession
Non-current assets (excluding financial asset and deferred income tax asset) satisfying the conditions of hold for
sale assets are demonstrated as other current assets by the lower one of book value and fair value less disposal
expenses. Balance between the original book value and the fair value after deducting of disposal fees, is
recognized as asset impairment loss.
31. Securitilization of asset
32. Hedging instruments
33. 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
[] Yes [V] No
34. Correction of accounting errors in previous period
Is there any accounting error with previous period found in the report period
[] Yes [V] No
(1) Restatement by retrospection
56
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
There is no correction of prior period errors in this period.
(2) Future application basis
There isnt any future adoption method applicable to accounting errors with previous periods found in the report
period.
(1) Retrospective restatement
Is there any retrospective restatement on the accounting error with previous periods done in the report term
[] Yes [V] No
(2) Future adoption method
Is there any future adoption method applicable to accounting errors with previous periods found in the report
period.
[] Yes [V] No
35. 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 applicable to branches and factories.
2. Preferential tax and approving documents
The company and its subsidiary (Chongqing Jianshe Vehicle-used Air-conditioning 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 Air-conditioning 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 15%, according to the regulation of Notice of increasing
57
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
export tax rebate rate of parts of machinery products (Cai Shui [2009] No. 88) issued by the Ministry of Finance
and State Taxation Administration.
3. Other statements
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 deducting
Balance
for of the
of other
deducting exceeding
items
Minor minor part of
Actual actually
Full name Ownershi Share Portion of sharehold minority
Business Registere Business investmen formed Consolida sharehold
of the p of the Reg. Add. proportio voting ers sharehold
property d capital Scope t at year net ted? ers’
subsidiary subsidiary n% rights equity in ers share
end investmen equity the minor of loss
t in the
sharehold over the
subsidiari
ers share of
es
equity minority
sharehold
ers in the
owners
equity at
beginning
of year
Sales of
motorcycl
Chongqin e and
g Jianshe Ltd. Chongqin Home parts, auto 12,000,00
12000000 100.00% 100.00% Yes
Sales Co., liability g sales air 0.00
Ltd. condition
er and
parts
Productio
n, sales,
Chognqin
and
g Jianshe
services
Automobi Manufact
Ltd. Chongqin 16000000 of 160,000,0
le uring and 43.75% 100.00% Yes
liability g 0 automobil 00.00
Air-condit sales
e
ioner Co.,
air-conditi
Ltd.
oners and
parts
Chongqin Sales of
g Jianshe vehicles,
Ltd. Chongqin 500,000.0
Motorcycl Sales 500000 motorcycl 45.00% 100.00% Yes
liability g 0
e Sales es, and
Co., Ltd. parts
Ningbo
Manufact
Jianshe
uring and
Motorcycl Manufact
Ltd. sales of 8,160,000
e Ningbo uring and 16000000 51.00% 51.00% No
liability motorcycl .00
Manufact sales
es and
uring Co.,
parts
Ltd.
Supplementary remarks on subsidiaries obtained through incorporation or investment
58
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
(2) Subsidiaries procured through merger of entities under common control
In RMB
Balance
of the
owners
equity of
parent co.
after
Amount deducting
Balance
for of the
of other
deducting exceeding
items
Minor minor part of
Actual actually
Full name Ownershi Share Portion of sharehold minority
Business Registere Business investmen formed Consolida sharehold
of the p of the Reg. Add. proportio voting ers sharehold
property d capital Scope t at year net ted? ers’
subsidiary subsidiary n% rights equity in ers share
end investmen equity the minor of loss
t in the
sharehold over the
subsidiari
ers share of
es
equity minority
sharehold
ers in the
owners
equity at
beginning
of year
Operating
and agent
all kinds
of goods
and
technolog
y import
Chongqin
and
g
export
Northern
Ltd. Chongqin (national 60,378,00
Jianshe Intl trade 60378000 95.14% 100.00% Yes
liability g limit or 0.00
Import &
prohibit
Export
the import
Co., Ltd.
and
export
company
of goods
and
technolog
y except)
Supplementary remarks on subsidiaries obtained through merger of entities under common control
59
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
(3) Subsidiaries procured through merger of entities under different control
In RMB
Balance
of the
owners
equity of
parent co.
after
Amount deducting
Balance
for of the
of other
deducting exceeding
items
Minor minor part of
Actual actually
Full name Ownershi Share Portion of sharehold minority
Business Registere Business investmen formed Consolida sharehold
of the p of the Reg. Add. proportio voting ers sharehold
property d capital Scope t at year net ted? ers’
subsidiary subsidiary n% rights equity in ers share
end investmen equity the minor of loss
t in the
sharehold over the
subsidiari
ers share of
es
equity minority
sharehold
ers in the
owners
equity at
beginning
of year
Motorcycl
e with
two
wheels,
portable
motorcycl
e with
two
wheels
and
installatio
Shanghai n kits
Jianshe manufact
Ltd. 8,160,000 544,523.2
Motorcycl Shanghai 16000000 uring and 51.00% 51.00% Yes
liability .00 6
e Co., sale,
Ltd. moped
manufact
uring and
sale,
power-dri
ven
bicycle
and its
parts
manufact
uring 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
Balance of assets and liabilities recognized in the consolidated
Name Main trades with the Company
financial statements
Other remarks on entities with special purpose or entities under control by entrustment or leasing
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
3. Change of consolidation range
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.
[] 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 controlling power through
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 controlling power through
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
Substantial 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
Entities taken over Amount of goodwill Accounting of goodwill
Supplementary statements on merger of entities under different control
Is there any control power acquired from merger by multiple stages
[] Applicable; [V] Not applicable
7. Subsidiaries reduced for disposal of shares and lose of control power
Name of the subsidiaries Date of disposal Recognition of gain/loss
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
Supplementary statements on subsidiaries reduced by disposing of share equities
Is there any control power lost in the report period by disposal of subsidiaries by multiple stages
[] Applicable; [V] Not applicable
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 foreign Exchange Amount of foreign Exchange
Amount RMB Amount RMB
currency rate currency rate
Cash: -- -- 125,247.87 -- -- 55,321.10
RMB -- -- 125,247.87 -- -- 55,321.10
Bank account: -- -- 18,874,872.11 -- -- 170,167,026.66
RMB -- -- 17,263,098.19 -- -- 168,565,749.59
USD 258,135.80 6.15 1,588,224.29 258,764.31 6.0969 1,577,660.12
EURO 2,805.33 8.39 23,549.63 2,805.23 8.4189 23,616.95
Other monetary
-- -- 307,386,728.17 -- -- 218,092,254.52
capital
RMB -- -- 307,369,070.47 -- -- 218,077,146.80
EURO 1,794.50 9.84 17,657.70 1,794.50 8.4189 15,107.72
Total -- -- 326,386,848.15 -- -- 388,314,602.28
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 306770141.06 207,478,217.39
Guarantee deposit for L/C 616587.11 10,614,037.13
Total 307,386,728.17 218,092,254.52
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
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 104,007,994.18 81,086,424.87
Commercial acceptance 3,978,000.00 167,000.00
Total 107,985,994.18 81,253,424.87
(2) Notes receivable under pledge
In RMB
Issuer Date of issue Expired on Amount Remarks
(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 Remarks
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
Remarks
Notes endorsed to other parties but not due
In RMB
Issuer Date of issue Expired on Amount Remarks
Chongqing Changan Automobile Co., Ltd. June 20, 2014 December 09, 2014 9,000,000.00
Chongqing Changan Automobile Co., Ltd. March 20, 2014 September 03, 2014 5,000,000.00
Chongqing Changan Automobile Co., Ltd. May 22, 2014 November 07, 2014 4,390,000.00
Chongqing Jianshe Motorcycle Co., Ltd. May 08, 2014 November 08, 2014 1,400,000.00
Chongqing Jianshe Motorcycle Co., Ltd. May 08, 2014 November 08, 2014 1,400,000.00
Total -- -- 21,190,000.00 --
Remarks
Remarks on commercial accepted notes already discounted or put into pledge
4. Dividend receivable
In RMB
Beginning of Increased this Decreased this End of Cause for not Impairment of the
Items
term period period term retrieved account
Dividend receivable with age
35,470,000.00 35,470,000.00
within 1 year
In which: -- -- -- -- -- --
(1) Chongqing Jianya 15,000,000.00 15,000,000.00
(2) Zhuzhou Jianya 19,000,000.00 19,000,000.00
(3) Pingshan Taikai 1,470,000.00 1,470,000.00
In which: -- -- -- -- -- --
Total 35,470,000.00 35,470,000.00 -- --
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
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
(3) Statement on interest receivable
6. Account receivable
(1) Account receivable presented on categories
In RMB
End of term Beginning of term
Categories Book balance Bad debt provision Book balance Bad debt provision
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
Receivables provided bad debt provision in groups
Receivables provided bad debt 310,182,501.7 327,852,00 327,852,003.52
98.83% 14,919,975.74 80.28% 98.89% 15,952,501.75
provision in groups 0 3.52 %
310,182,501.7 327,852,00 327,852,003.52
Sub-total of group 98.83% 14,919,975.74 80.28% 98.89% 15,952,501.75
0 3.52 %
Account receivable with minor
3,672,247.9
individual amount but bad debt 3,665,443.42 1.17% 3,665,443.42 19.72% 1.11% 3,672,247.97 3,672,247.97%
7
provision is provided
313,847,945.1 331,524,25
Total -- 18,585,419.16 -- -- 19,624,749.72 --
2 1.49
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
Age Book balance Book balance
Bad debt provision Bad debt provision
Amount Proportion Amount Proportion
within 1 yr
In which: -- -- -- -- -- --
1-6 months 278,616,867.21 88.77% 290,812,062.12 88.70%
Subtotal of within 1 year 280,317,862.28 0.89% 85,049.76 294,652,679.12 89.87% 192,030.86
1-2 years 1,271,351.52 0.41% 127,135.16 1,473,279.67 0.45% 147,327.97
2-3 years 19,626,154.80 6.25% 5,887,902.44 22,765,716.18 6.94% 6,829,776.90
3-4 years 22,221.08 0.06% 11,110.54 30,838.96 0.01% 15,419.48
4-5 years 680,670.94 1.34% 544,536.75 801,553.06 0.24% 640,010.01
over 5 yrs 8,264,241.08 2.63% 8,264,241.08 8,127,936.53 2.48% 8,127,936.53
Total 310,182,501.70 -- 14,919,975.74 327,852,003.52 -- 15,952,501.75
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
65
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
In RMB
Description of the receivable accounts Book balance Bad debt provision Rate Reason to provide
Domestic trade receivable 3,462,514.08 3,462,514.08 100.00% Overdue for a long term, hard to retrieve
Overseas trade receivable 202,929.34 202,929.34 100.00% Overdue for a long term, hard to retrieve
Total 3,665,443.42 3,665,443.42 -- --
(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 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
66
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
(5) Top 5 debtors in the receivable accounts
In RMB
Relation with the Percentage in total
Name of the companies Amount Ages
Company receivables
1. Chongqing Changan Automobile Co.,
Under same control 60,127,276.96 Within 1 year 19.16%
Ltd.
2. Greatwall Automobile Co., Ltd. None related 36,382,424.17 Within 1 year 11.59%
3. Burma BIO None related 23,460,960.00 Within 1 year 7.48%
4. Shenlong Automobile Co., Ltd. None related 17,818,428.89 Within 1 year 5.68%
Within 2
5. China Northern Vehicle Co., Ltd. None related 17,369,088.00 5.53%
years
Total -- 155,158,178.02 -- 49.44%
(6) Account due from related parties
In RMB
Name of the companies Relation with the Company Amount Percentage in total receivables
China Changan Group Under same control 61,262,091.62 19.75%
Zhuzhou Jianya Joint ventures 1,005,252.00 0.32%
Total -- 62,267,343.62 20.07%
(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:
67
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
7. Other account receivable.
(1) Other receivable account on categories
In RMB
End of term Beginning of term
Categories Book balance Bad debt provision Book balance Bad debt provision
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
Other receivables provided bad debt provision in groups
Other receivables provided
28,505,141.69 88.49% 4,974,384.55 57.29% 28,949,492.81 88.64% 5,003,156.86 57.43%
bad debt provision in groups
Sub-total of group 28,505,141.69 88.49% 4,974,384.55 57.29% 28,949,492.81 88.64% 5,003,156.86 57.43%
Other account receivable
with minor individual
3,708,768.03 11.51% 3,708,768.03 42.71% 3,708,768.03 11.36% 3,708,768.03 42.57%
amount but bad debt
provision is provided
Total 32,213,909.72 -- 8,683,152.58 -- 32,658,260.84 -- 8,711,924.89 --
Remarks on other types of receivable accounts
Other receivable accounts with major single amount and bad debt provision drawn upon them
[] Applicable; [V] Not applicable
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
Age Book balance Book balance
Bad debt provision Bad debt provision
Amount Proportion Amount Proportion
within 1 yr
In which:
1-6 months (included) 20,725,886.17 66.69% 20,594,791.14 71.14%
Subtotal of within 1 year 22,488,680.62 72.17% 88,139.72 22,933,031.74 79.22% 116,912.03
1-2 years 906,800.80 2.81% 90,680.08 906,800.80 2.78% 90,680.08
2-3 years 420,412.48 6.41% 126,123.75 420,412.48 1.45% 126,123.75
3-4 years 39,613.58 4.17% 19,806.79 39,613.58 0.14% 19,806.79
over 5 yrs 4,649,634.21 14.43% 4,649,634.21 4,649,634.21 14.24% 4,649,634.21
Total 28,505,141.69 -- 4,974,384.55 28,949,492.81 -- 5,003,156.86
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 receivables Book balance Bad debt provision Rate Reason to provide
Transmitting of small amounts 3,708,768.03 3,708,768.03 100.00% Overdue for a long term, hard to retrieve
Total 3,708,768.03 3,708,768.03 -- --
68
Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
(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 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
In RMB
Nature or content of the
Name of the companies Amount Percentage in total of other receivables
account
Remarks
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
(6) Top 5 debtors of other receivable accounts
In RMB
Relation with the Percentage in total
Name of the companies Amount Ages
Company of other receivables
Shanghai Jianshe Motorcycle Co., Ltd. 3,013,664.00 over 5 yrs 9.36%
Ningbo Jianshe Motorcycle Manufacturing
1,021,664.04 over 5 yrs 3.17%
Co., Ltd.
Shanghai Yamaha Jianshe Motorcycle Sales
995,019.66 within 1 yr 3.09%
Co., Ltd.
Ningbo Jianshe Chongqing Office 692,035.31 within 1 yr 2.15%
Jiulongpo Construction Committee 400,000.00 within 1 yr 1.24%
Total -- 6,122,383.01 -- 19.01%
(7) Other accounts receivable from related parties
In RMB
Percentage in total of other
Name of the companies Relation with the Company Amount
receivables
(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:
(10) Government subsidy not recognized upon amount
In RMB
Remarks on not
Name of the Title of the Closing Age at end Expected received at expected
Expected amount Expected basis
companies projects balance of period retrieving date date or amount (if
any)
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
8. Prepayment
(1) Prepayment presented by ages:
In RMB
End of term Beginning of term
Age
Amount Proportion Amount Proportion
within 1 yr 31,258,581.23 91.22% 28,899,206.76 88.27%
1-2 years 997,360.04 2.91% 1,430,183.64 4.37%
2-3 years 335,261.60 0.98% 274,913.20 0.84%
Over 3 yrs 1,677,472.43 4.90% 2,133,939.23 6.52%
Total 34,268,675.30 -- 32,738,242.83 --
Remarks on ages of prepayment
(2) Top 5 receivers of prepayments
In RMB
Name of the companies Relation with the Company Amount Date Reason of unsettled
GFM GMBH(Australia） None 15,983,397.25 within 1 yr Project not received
Custom of Chongqing (VAT) None 4,674,521.79 within 1 yr Project not received
ASAHI TRADING CO，LTD (Japan) None 3,795,403.81 within 1 yr Project not received
LANDTOP TECHNOLOGIES CO., LIMITED None 3,594,961.10 within 1 yr Project not received
CESARE GALDABINI SPA None 3,390,545.07 within 1 yr Project not received
Total -- 31,438,829.02 -- --
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
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
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 74,776,629.79 4,618,914.59 70,157,715.20 76,599,709.05 4,618,914.59 71,980,794.46
Product in process 14,758,893.27 14,758,893.27 18,669,774.27 18,669,774.27
Products in stock 200,412,783.54 174,210.57 200,238,572.97 208,715,453.58 174,210.57 208,541,243.01
Total 289,948,306.60 4,793,125.16 285,155,181.44 303,984,936.90 4,793,125.16 299,191,811.74
(2) Inventory impairment provision
In RMB
Opening balance of Decreased this period Closing balance of
Categories Provided this term
book value Written back Transferred book value
Raw materials 4,618,914.59 4,618,914.59
Products in stock 174,210.57 174,210.57
Total 4,793,125.16 4,793,125.16
(3) Inventory impairment provisions
Percentage of amount written
Basis of providing impairment
Items Reason of written back back in the balance of the
provision
inventory at end of report term
Remarks on inventories
10. Other current assets
In RMB
Items End of term Beginning of term
Remarks on other current assets
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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
Opening 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
(3) Impairment of sellable financial assets
In RMB
Available-for-sale Debit instruments
Categories of sellable financial assets Others Total
equity instruments sellable
(4) Change of impairment of sellable financial assets in the report period
In RMB
Categories of sellable Available-for-sale Debit instruments
Others Total
financial assets equity instruments sellable
(5) Remarks on significant decline or continuous decline of fair value of sellable equity instruments
In RMB
Remarks on not providing
Sellable equity Decrease of Period of Amount of
impairment provision on the
instruments Cost fair value fair value continuous impairment
difference between cost and fair
(separated) from costs decrease provision
value
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12. Investment held to mature
(1) Investment held to mature
In RMB
Items Closing balance of book value Opening balance of book value
Remarks on investment held to mature
(2) Investment held to mature disposed in the report period before mature
In RMB
Percentage in the amount before selling of this
Items Amount
investment
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
Name of the Share Total asset at end Total liability at Total net asset at Total of turnover Net profit of the
right
Companies portion of term end of term end of term at current term current term
portion
I. Joint ventures
Chongqing
50.00% 50.00% 924,703,735.04 295,965,384.91 628,738,350.13 832,929,635.79 20,007,480.72
Yamaha
Zhuzhou Jianya 50.00% 50.00% 671,384,767.41 133,786,125.98 537,598,641.43 401,397,349.05 14,026,806.41
Pingshan Taikai 49.00% 49.00% 182,604,171.71 18,896,543.14 163,707,628.57 64,692,207.20 2,672,938.31
II. Affiliates
Tongsheng
30.00% 30.00% 109,435,810.67 105,502,169.20 3,933,641.47 64,309,254.82 -2,158,546.82
Construction
Southern
Motorcycle R&D 24.00% 24.00% 69,076,002.19 597,847.14 68,478,155.05 204.31 -1,348,233.02
Co., Ltd.
Fuyeda 20.00% 20.00% 4,627,322.58 4,382,940.94 244,381.64 3,133,250.48 902,927.52
Remarks on the material difference between the accounting policies, accounting estimations of the Company and
those of the joint ventures and affiliates
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15. Long-term equity investment
(1) Details of long-term equity investment
In RMB
Statement
on
Voting Impairment
Percentage differences Cash dividend
Company Calculating Investment Opening Closing power Impairment provision
Changed by of share in between the of the current
invested in basis cost balance balance in the provision provided
the firm % shareholding term
firm % this term
and voting
rights
Chongqing
Jingjian
On cost
Automobile 3,200,000.00 3,200,000.00 3,200,000.00 6.74% 6.74% 3,200,000.00
basis
Air-conditioner
Co., Ltd.
Ningbo Jianshe
On cost
Motorcycle 8,160,000.00 1,140,915.04 1,140,915.04 51.00% 51.00% 1,140,915.04
basis
Co., Ltd.
Southern
On equity
Motorcycle 20,000,000.00 16,429,730.15 -317,231.14 16,112,499.01 24.00% 24.00%
basis
R&D Co., Ltd.
Chongqing
Jianshe
Warehousing On equity
400,000.00 20.00% 20.00%
and Trucking basis
Co., Ltd.
(Fuyeda)
Tongsheng On equity
3,000,000.00 2,079,588.23 -647,564.05 1,432,024.18 30.00% 30.00%
Construction basis
Pingshan On equity
67,316,539.87 80,445,464.73 -160,260.23 80,285,204.50 49.00% 49.00% 1,470,000.00
Taikai basis
Chongqing On equity
154,699,622.03 312,930,241.12 -4,996,259.64 307,933,981.48 50.00% 50.00% 15,000,000.00
Yamaha basis
Zhuzhou On equity
215,710,320.08 277,356,765.96 -11,986,596.79 265,370,169.17 50.00% 50.00% 19,000,000.00
Jianya basis
Total -- 472,486,481.98 693,582,705.23 -18,107,911.85 675,474,793.38 -- -- -- 4,340,915.04 35,470,000.00
(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
Opening balance of book Closing balance of book
Items Increased this period Decreased this period
value value
In RMB
Current term
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(2) Investment property on fair value basis
In RMB
Increased this period Decreased this period
Fair value at Fair value at
Items For own use or transferred Gain/loss from Transferred for
beginning of term Purchased Disposed end of term
from inventory change of fair value own use
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
17. Fixed assets
(1) Particulars of fixed assets
In RMB
Opening balance of Closing balance of
Items Increased this period Decreased this period
book value book value
I. Total of original book value 1,557,170,080.50 11,830,979.31 2,165,052.00 1,566,836,007.81
Incl. House & Buildings 395,548,619.45 3,588,777.33 399,137,396.78
Equipment & machinery 1,074,292,860.55 7,718,972.28 8,400.00 1,082,003,432.83
Transportation facilities 23,157,903.33 523,229.70 2,156,652.00 21,524,481.03
Others
Opening balance of Balance at end of
-- Increased this term Provided current term Decreased this period
book value current term
II. Total of accumulative
793,464,679.29 32,401,000.21 2,058,521.52 823,807,157.98
depreciation
Incl. House & Buildings 62,823,495.89 6,472,287.27 69,295,783.16
Equipment & machinery 672,691,757.15 19,285,587.69 4,416.16 691,972,928.68
Transportation facilities 15,505,176.18 5,417,902.40 2,054,105.36 18,868,973.22
Others 42,444,250.07 1,225,222.85 43,669,472.92
Opening balance of Balance at end of
-- --
book value current term
III. Total of net book value of
763,705,401.21 -- 743,028,849.83
fixed assets
Incl. House & Buildings 332,725,123.56 -- 329,841,613.62
Equipment & machinery 401,601,103.40 -- 390,030,504.15
Transportation facilities 7,652,727.15 -- 2,655,507.81
Others 21,726,447.10 -- 20,501,224.25
Others --
V. Total of fixed asset book value 763,705,401.21 -- 743,028,849.83
Incl. House & Buildings 332,725,123.56 -- 329,841,613.62
Equipment & machinery 401,601,103.40 -- 390,030,504.15
Transportation facilities 7,652,727.15 -- 2,655,507.81
Others 21,726,447.10 -- 20,501,224.25
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 Remarks
depreciation: provision
(3) Fixed assets leased by finance
In RMB
Items Original book value Accumulated depreciation: Net book value
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(4) Fixed assets leased out on finance
In RMB
Categories Closing book value
(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 of
11,438,576.86 11,438,576.86 7,134,988.52 7,134,988.52
equipment
Office building 701,658.00 701,658.00 3,878,715.45 3,878,715.45
Total 12,140,234.86 12,140,234.86 11,013,703.97 11,013,703.97
(2) Material change in construction-in-progress
In RMB
Including: Capitalization
Increased Transferred Portion of Accumulate End
Beginning Other interest ratio of Fund
Projects Budget this into fixed investment Progress of interest of
of term decreases capitalized current recourse
period assets on budget capitalized term
this term period
Remarks on changes of the construction-in-process
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(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 Remarks
(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 Opening book value Closing book value Reason of liquidation
Progress of fixed assets turn to be liquidated for over one year:
21. Production biological assets
(1) On costs
In RMB
Opening 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
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Items Opening 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. Petroleum assets
In RMB
Opening balance of Closing balance of book
Items Increased this period Decreased this period
book value value
Remarks on petroleum assets
23. Intangible assets
(1) Profiles of intangible assets
In RMB
Opening balance of book Increased this Decreased this Closing balance of book
Items
value period period value
I. Total of original book value 146,934,884.54 146,934,884.54
Land using right 69,813,182.12 69,813,182.12
Non-patent technologies 77,121,702.42 77,121,702.42
II. Total of accumulative amortizing 43,322,968.55 7,663,832.22 50,986,800.77
Land using right 12,971,965.27 696,607.02 13,668,572.29
Non-patent technologies 30,351,003.28 6,967,225.20 37,318,228.48
III. Total of book net value of
103,611,915.99 -7,663,832.22 95,948,083.77
intangible assets
Land using right 56,841,216.85 56,144,609.83
Non-patent technologies 46,770,699.14 39,803,473.94
Land using right
Non-patent technologies
Total of book value of intangible
103,611,915.99 -7,663,832.22 95,948,083.77
assets
Land using right 56,841,216.85 56,144,609.83
Non-patent technologies 46,770,699.14 39,803,473.94
Amortized this period is RMB.
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(2) R&D expenses
In RMB
Decreased this period
Beginning of Increased this
Items Accounted into current Recognized as End of term
term period
income account intangible asset
Costs at the research stage of
3,789,670.50 3,789,670.50
automobile air conditioner
军新字 0804-1 10,503,513.58 3,337,924.32 13,841,437.90
民新字 0713-1 1,369,812.83 1,150,416.57 2,520,229.40
新字 10【CFZ01】 10,642,917.07 899,693.20 11,542,610.27
新字 12【MQA003】 2,502,242.89 575,865.60 3,078,108.49
新字 0713 2,585,442.84 369,003.72 2,954,446.56
新字 13【MF1403】 10,732.00 10,732.00
新字 13【MQ3203】 192.40 192.40
新字 11【MTA001】-R 738,395.08 738,395.08
新字 10【CDG02】 137,318.34 137,318.34
新字 0815 55,100.00 55,100.00
Total 27,603,929.21 11,064,311.73 3,789,670.50 34,878,570.44
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
Opening balance Closing balance provision at
goodwill item period period
end of term
Remarks on the impairment 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
1,815,694.12 1,220,769.22 60,978.73 2,975,484.61
workshop
83 aluminum
technical initial 6,112,317.12 759,136.06 1,078,705.24 5,792,747.94
fee
Total 7,928,011.24 1,979,905.28 1,139,683.97 8,768,232.55 --
Remarks on long-term expenses to be amortized
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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
In RMB
Items End of term Beginning of term
Deferred income tax assets:
Asset impairment provision 3,564,354.64 3,564,354.64
Sub-total 3,564,354.64 3,564,354.64
Deferred income tax liabilities:
Details of un-recognized deferred income tax assets
In RMB
Items End of term Beginning of term
Deductible provisional differences 19,834,858.33 19,834,858.33
Neutralizable losses 645,790,437.42 645,790,437.42
Total 665,625,295.75 665,625,295.75
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 Remarks
2013
2014 89,406,285.37 89,406,285.37
2015 75,337,093.67 75,337,093.67
2016 238,350,758.67 238,350,758.67
2017 228,864,550.40 228,864,550.40
2018 13,831,749.31 13,831,749.31
Total 645,790,437.42 645,790,437.42 --
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
(2) Deferred income tax assets and liabilities are presented as net amount after neutralization
Composition items of income tax asset and liabilities after neutralization
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In RMB
Deductible or taxable Deductible or taxable
Deferred income tax asset or Deferred income tax asset or
provisional difference after provisional difference after
Items liability after neutralizing at liability after neutralizing at
neutralizing at end of report neutralizing at end of report
end of report period end of report period
period period
Deferred
income tax 3,564,354.64 3,564,354.64
asset
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
Opening balance of Increased this Decreased this period Closing balance of book
Items
book value period Written back Transferred value
I. Bad debt provision 28,336,674.61 30,316.15 1,098,419.02 27,268,571.74
II. Inventory impairment provision 4,793,125.16 4,793,125.16
V. Long-term equity investment
4,340,915.04 4,340,915.04
impairment provision
Total 37,470,714.81 30,316.15 1,098,419.02 36,402,611.94
Remarks on detailed asset impairment
28. Other non-current assets
In RMB
End of Beginning of
Items
term term
Balance of difference of debit of Shanghai Jianshe Motorcycle Co., Ltd. under original accounting
204,000.00 408,000.00
policies
Total 204,000.00 408,000.00
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 151,305,047.85
Mortgage loan 7,000,000.00 7,000,000.00
Guarantee loan 212,000,000.00 218,500,000.00
Credit loan 466,151,878.05 520,000,000.00
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Total 685,151,878.05 896,805,047.85
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 901,622,914.28 742,696,400.00
Total 901,622,914.28 742,696,400.00
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
562,692,125.34 536,553,953.76
Total 562,692,125.34 536,553,953.76
(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
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(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 33,528,097.89 29,177,260.79
Total 33,528,097.89 29,177,260.79
(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
Opening balance of book Increased this Decreased this Closing balance of book
Items
value period period value
I. Wage, bonus,
1,233,049.19 60,337,396.00 60,701,547.59 868,897.60
allowances
II. Employees welfare 9,914,487.11 9,914,487.11
III. Social security 319,354.17 18,033,151.67 18,136,680.05 215,825.79
IV. Housing fund 345,382.00 5,973,211.68 5,986,806.58 331,787.10
V. Dismissing welfare 5,670,924.97 5,670,924.97
VI. Others 721,257.79 4,223,260.74 3,923,322.15 1,021,196.38
Total 2,619,043.15 104,152,432.17 104,333,768.45 2,437,706.87
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 -8,285,957.05 -1,968,912.69
Consumption tax 137,414,158.18 137,754,386.21
Operational tax 19,691.64 722,885.66
Enterprise income tax -12,292,552.33 -12,292,552.33
Personal income tax -53,747.39
City maintenance and construction tax -142,312.92 484,991.06
Others 325,721.22 -326,556.55
Total 116,985,001.35 124,374,241.36
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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
38. Other account payable.
(1) Other accounts payable
In RMB
Items End of term Beginning of term
within 1 yr 9,725,298.65 20,256,426.97
1-2 yrs 6,813,338.94 6,913,982.93
2-3 yrs 3,411,538.44 3,411,538.44
Over 3 yrs 1,957,731.42 1,957,731.42
Total 21,907,907.45 32,539,679.76
(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
Unsettled lawsuit 0.00 3,226,654.00 0.00 3,226,654.00
Total 3,226,654.00 0.00 3,226,654.00
Remarks on anticipated liabilities
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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 52,000,000.00 98,000,000.00
Total 52,000,000.00 98,000,000.00
(2) Long-term loans due in 1 year
Long-term loans due in 1 year
In RMB
Items End of term Beginning of term
Guarantee loan 6,000,000.00 94,000,000.00
Credit loan 46,000,000.00 4,000,000.00
Total 52,000,000.00 98,000,000.00
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
Loan provided Commence Interest
Terminate date Currency Amount of foreign Amount of original Amount of foreign Amount of original
by date rates
currency currency currency currency
CCB Yang August 2, RMB
Feb 21 2015 6.15% 26,000,000.00
Branch 2012 Yuan
CCB Yang RMB
Nov 02 2012 May 04 2015 5.84% 9,000,000.00
Branch Yuan
CCB Yang RMB
Sept 14 2012 Mar 21 2015 5.84% 9,000,000.00
Branch Yuan
CCB Yang August 2, RMB
Aug 21 2014 6.15% 1,000,000.00
Branch 2012 Yuan
CCB Yang RMB
Apr 09 2014 Sept 1 2014 6.15% 1,000,000.00
Branch Yuan
CCB Yang RMB
Apr 1 2011 Mar 31 2014 6.10% 45,000,000.00
Branch Yuan
CCB Yang RMB
Apr 14 2011 Apr 13 2014 6.40% 45,000,000.00
Branch Yuan
CCB Yang August 2, February 21, RMB
6.15% 1,000,000.00
Branch 2012 2014 Yuan
CCB Yang August 2, RMB
Aug 21 2014 6.15% 1,000,000.00
Branch 2012 Yuan
CCB Yang RMB
Apr 1 2011 Feb 2 2014 6.10% 1,000,000.00
Branch Yuan
Total -- -- -- -- -- 46,000,000.00 -- 93,000,000.00
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
Amount repaid in post-balance-sheet day.
Remarks on long-term loans due in 1 year
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(3) Bonds payable due in 1 year
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 payable bonds due in 1 year
(4) Long-term payable account due in 1 year
In RMB
Loans from Term Initial amount Interest rates 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 Opening 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 132,000,000.00 47,000,000.00
Credit loan 38,000,000.00 82,000,000.00
Total 170,000,000.00 129,000,000.00
Remarks on categories of long-term loans
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(2) Top 5 long-term loans
In RMB
End of term Beginning of term
Commence Terminate Interest
Loan provided by Currency Amount of foreign Amount of original Amount of foreign Amount of original
date date rates
currency currency currency currency
CCB Yangjiaping May 21 RMB
May 02 2013 6.15% 24,000,000.00
Branch 2016 Yuan
CCB Yangjiaping RMB
May 22 2013 Nov 1 2015 6.15% 22,000,000.00
Branch Yuan
CCB Yangjiaping Mar 30 RMB
Mar 31 2014 6.15% 21,000,000.00
Branch 2017 Yuan
CCB Yangjiaping RMB
Apr 14 2014 Apr 08 2017 6.15% 21,000,000.00
Branch Yuan
CCB Yangjiaping August 2, RMB
Aug 1 2015 6.15% 20,000,000.00
Branch 2012 Yuan
CCB Yangjiaping Mar 21 RMB
Sept 14 2012 5.84% 9,000,000.00
Branch 2015 Yuan
CCB Yangjiaping August 2, RMB
Aug 1 2015 6.15% 20,000,000.00
Branch 2012 Yuan
CCB Yangjiaping August 2, RMB
Feb 21 2015 6.15% 26,000,000.00
Branch 2012 Yuan
CCB Yangjiaping RMB
May 22 2013 Nov 1 2015 6.40% 22,000,000.00
Branch Yuan
CCB Yangjiaping May 21 RMB
May 22 2013 5.84% 24,000,000.00
Branch 2016 Yuan
Total -- -- -- -- -- 108,000,000.00 -- 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
Companies Term Initial amount Interest rates Interest payable Closing balance Condition
(2) Details of finance leasing payments in long-term payables
In RMB
End of term Beginning of term
Companies
Foreign Currency RMB Foreign Currency RMB
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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
46. Other non-current liabilities
In RMB
Items Closing balance of book value Opening balance of book value
Remarks on other non-recurring liabilities
Liability projects involved in government subsidy
In RMB
Amount
New subsidy in transferred to Closing Asset-related or
Liability projects Opening balance Other changes
current period non-operational balance income-related
income
47. Capital Share
单位：元
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
119,375,000.00 119,375,000.00
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
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Chongqing Jianshe Motorcycle Co., Ltd. Interim Report 2014 Full Text
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 616,107,576.52 616,107,576.52
Total 960,515,317.59 960,515,317.59
Remarks on capital reserves
51. Surplus reserves
In RMB
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 -1,054,193,118.04 --
Retained profit adjusted at beginning of year -1,054,193,118.04 --
Plus: Net profit attributable to owners of the
-59,961,821.44 --
parent company
Retained profit at the end of term -1,114,154,939.48 --
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.
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3) Material correcting of accounting errors has influenced the opening 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 917,744,345.68 884,769,840.44
Other business income 29,426,531.27 41,695,773.42
Operation cost 830,409,735.03 794,114,222.16
(2) Business segments (on industries)
In RMB
Occurred current term Occurred in previous term
Name of industry
Turnover Operation cost Turnover Operation cost
Industry 917,744,345.68 806,352,064.93 884,769,840.44 763,701,975.49
Total 917,744,345.68 806,352,064.93 884,769,840.44 763,701,975.49
(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 538,575,208.54 486,872,485.96 572,536,578.06 500,904,720.98
Vehicle air conditioner 379,169,137.14 319,479,578.97 312,233,262.38 262,797,254.51
Total 917,744,345.68 806,352,064.93 884,769,840.44 763,701,975.49
(4) Business segments (on regions)
In RMB
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Occurred current term Occurred in previous term
Name of districts
Turnover Operation cost Turnover Operation cost
North 122,995,286.73 100,612,282.16 124,787,879.02 104,208,806.35
East 52,831,289.72 45,902,914.17 62,857,269.76 53,400,596.94
Mid-south 99,299,739.67 89,892,839.42 55,939,792.59 48,466,567.99
South-west 447,357,040.29 392,092,949.55 375,256,162.44 323,318,088.41
North-east 10,112,241.99 9,098,154.23 19,509,472.26 16,625,704.11
North-west 19,451,436.33 17,485,748.34 24,042,660.05 20,402,881.46
South 31,989,495.78 28,692,768.76 67,823,774.26 61,233,025.57
Overseas sales 133,707,815.17 122,574,408.30 154,552,830.06 136,046,304.67
Total 917,744,345.68 806,352,064.93 884,769,840.44 763,701,975.50
(5) Revenue from top five customers
In RMB
Name of clients Major business turnover Portion in total turnover
Chongqing Yamaha 178,289,136.78 19.43%
Changan Auto 83,256,320.09 9.07%
Greatwall Automobile Co., Ltd.
63,647,541.60 6.94%
Tianjin Branch
Changan SUZUKI 40,880,462.92 4.45%
Shenlong Automobile Co., Ltd. 35,613,043.68 3.88%
Total 401,686,505.07 43.77%
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)
Remarks on contract projects
56. Business tax and surcharge
In RMB
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Occurred in previous
Items Occurred current term Rate
term
Consumption tax 8,111,340.25 7,331,781.26
Operational tax 147,794.65 500,599.04
City maintenance and construction
1,730,856.01 732,999.97
tax
Education surtax 1,212,033.13 544,214.66
Total 11,202,024.04 9,109,594.93 --
Remarks on turnover tax and surcharges
57. Sales expenses
In RMB
Items Occurred current term Occurred in previous term
Sales expense 48,705,024.38 56,501,111.61
Total 48,705,024.38 56,501,111.61
58. Administrative expenses
In RMB
Items Occurred current term Occurred in previous term
Administrative expense 81,594,632.24 76,760,982.40
Total 81,594,632.24 76,760,982.40
59. Financial expenses
In RMB
Items Occurred current term Occurred in previous term
Interest expense 53,387,859.35 56,304,915.82
Others -3,110,407.56 -3,909,025.57
Total 50,277,451.79 52,395,890.25
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
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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 17,158,088.15 28,962,896.45
Total 17,158,088.15 28,962,896.45
(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
Tongsheng Construction -647,564.05 68,388.96
Pingshan Taikai 1,309,739.77 741,078.03
Chongqing Yamaha 10,003,740.36 14,088,086.80
Zhuzhou Jianya 7,013,403.21 14,269,342.66
Southern Motorcycle R&D Co., Ltd. -317,231.14
Shanghai Jianshe Motorcycle Co., Ltd. -204,000.00 -204,000.00
Total 17,158,088.15 28,962,896.45 --
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 -1,068,102.87 84,763.01
Total -1,068,102.87 84,763.01
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63. Non-operational income
(1) Non-operational income
In RMB
Carried to current contingent
Items Occurred current term Occurred in previous term
gain/loss
Total of gains from disposal of non-current
2,400.00
assets
Incl. Gains from disposal of fixed assets 2,400.00
Government subsidy 200,000.00 679,789.17
Others 206,874.21 234,813.96
Total 409,274.21 914,603.13
Statement on non-operational income
(2) Government subsidy accounted to current gain/loss account
In RMB
Occurred in previous Asset-related or Non-recurring or
Subsidy titles Occurred current term
term income-related recurring
Social security fund,
Chongqing Bureau of
Finance
Fund for international
marketing
Industrial support fund
Fund for innovative
400,000.00
products
Allowance for guarantee
149,000.00
insurance
Others 200,000.00 130,789.17 Income related? Yes
Total 200,000.00 679,789.17 -- --
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 110,483.37
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Incl. Loss from disposal of fixed assets 110,483.37
Others 3,240,002.85 32,565.79
Total 3,350,486.22 32,565.79
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
218,486.34 75,293.70
current term
Total 218,486.34 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 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.
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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 Current Amount of the Previous
Term Term
consolidated net profit attributable to common -59961821.44 -33,126,243.42
shareholders
weighted average of common shares issued by the 119375,000.00 119375,000.00
Company
Basic earnings per share (Yuan/share) -0.5023 -0.2775
Calculating process of weighted average of common shares:
Items Amount of the Current Amount of the Previous
Term Term
Amount of common shares already issued at beginning of 119375,000.00 119375,000.00
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 outside at end 119375,000.00 119375,000.00
of year
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 3,144,823.68
Others 1,279,019.86
Total 4,423,843.54
Statement on other cash inflow related to operation
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(2) Other cash paid related to operation
In RMB
Items Amount
Operation fees such as freight, warehousing fees 11,903,205.87
Administrative expenses such as office expenses and traveling expenses 12,845,103.78
Others 8,473,069.57
Total 33,221,379.22
Statement on other cash paid related to operation
(3) Other cash received related to investment
In RMB
Items Amount
Statement on other cash received related to investment
(4) Other cash paid related to investment
In RMB
Items Amount
Statement on other cash paid related to investment
(5) Other cash received related to financing
In RMB
Items Amount
Financial note discount received 782,532,081.15
Total 782,532,081.15
Statement on other cash received related to financing
(6) Other cash paid related to financing
In RMB
Items Amount
Payment of due financing notes 763,396,400.00
Decrease of note deposit 115,499,954.69
Total 878,896,354.69
Remarks on other cash paid related to financing
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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 -59,951,497.86 -32,731,310.41
Plus: Asset impairment provision -1,068,102.87 84,763.01
Fixed asset depreciation, gas and petrol depreciation,
33,211,180.21 30,895,192.57
production goods depreciation
Amortizing of intangible assets 7,666,832.22 5,504,451.96
Amortizing of long-term expenses 1,867,252.71 2,055,163.08
Loss from disposal of fixed assets, intangible assets, and
108,083.37 1,850.00
other long-term assets (“-“ for gains)
Financial expenses (“-“ for gains) 50,277,451.79 52,395,890.25
Investment losses (“-“ for gains) -17,158,088.15 -28,962,896.45
Decrease of inventory (“-“ for increase) 14,036,630.30 -30,315,830.90
Decrease of operational receivable items (“-“ for increase) -11,210,447.16 -47,939,531.72
Increase of operational payable items (“-“ for decrease) 86,867,580.84 30,638,081.02
Cash flow generated by business operation, net 104,646,875.40 -18,374,177.59
2. Major investment and financing operation not involving
-- --
with cash
3. Net change of cash and cash equivalents -- --
Balance of cash at period end 19,000,119.98 88,531,128.99
Less: Initial balance of cash 170,222,347.76 81,609,913.40
Net increasing of cash and cash equivalents -151,222,227.78 6,921,215.59
(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
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Items End of term Beginning of term
I. Cash 19,000,119.98 170,222,347.76
Incl: Cash in stock 125,247.87 55,321.10
Bank savings could be used at any time 18,874,872.11 170,167,026.66
III. Balance of cash and cash equivalents at end of term 19,000,119.98 170,222,347.76
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 bankruptcy isolating terms of
capital securitization .
2. Entities on which the Company has no control power but undertake the risks
In RMB
Total asset at end Total liability at Net asset at end Turnover of the Net profit of the
Name Remarks
of term end of term of term period current term
IX. Related parties and related transactions
1. Parent companies of the Company
Percentage
of shares Voting
Name of Ultimate
of the rights of
the Ownership Reg. Legal Business Registered holder of Organization
Relationship parent the
parent type Add. representative property capital the code
company parent
co. Company
in the company
Company
Special National
Southern Controlling sole
Beijing Tang Dengjie machinery 12645210000 71.13% 71.13% asset 71092604-3
Group shareholder state-owned
production commission
Particulars about the parent company of the Company
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2. Subsidiaries of the Company
Full name of Ownership of Ownership Legal Business Registered Share Portion of Organization
Reg. Add.
the subsidiary the subsidiary type representative property capital proportion % voting rights code
International
trading and
agency of
various
merchandises
Import & Controlled and
Ltd. liability Chongqing Wen Hong 60,377,527.88 100.00% 100.00%
Export Co. subsidiaries technologies
(other than
those
restricted by
national
government)
Motorcycle
with two
wheels,
portable
motorcycle
with two
wheels and
installation
kits
manufacturing
Shanghai Controlled
Ltd. liability Shanghai Che Lianfu and sale, 16,000,000 51.00% 51.00%
Jianshe subsidiaries
moped
manufacturing
and sale,
power-driven
bicycle and its
parts
manufacturing
and sale
(license when
required)
Sales of
motorcycles
and parts,
vehicle
air-conditioner
and parts,
electro-mecha
Jianshe Sales Controlled
Ltd. liability Chongqing Li Huaguang nical products, 12,000,000 100.00% 100.00%
Co. subsidiaries
metal
materials,
home
appliances,
repairing of
home
appliances
Production,
sales, and
Air
Controlled services of
Conditioner Ltd. liability Chongqing Lu Hongxian 160,000,000 100.00% 100.00%
subsidiaries automobile
Co.
air-conditioner
s and parts
Chongqing Sales of
Jianshe Controlled vehicles,
Ltd. liability Chongqing Wen Hong 500,000 100.00% 100.00%
Motorcycle subsidiaries motorcycles,
Sales Co., Ltd. and parts
Ningbo
Manufacturing
Jianshe
Controlled and sales of
Motorcycle Ltd. liability Ningbo 16,000,000 51.00% 51.00%
subsidiaries motorcycles
Manufacturing
and parts
Co., Ltd.
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3. Joint ventures and affiliates
Voting
Name of the Legal Registered Share Organization
Ownership type Reg. Add. Business property right Relationship
Companies representative capital portion code
portion
I. Joint ventures
Chongqing Sino-foreign Production and sales of Joint
Chongqing Lu Hongxian 65000000 50.00% 50.00% 621900263
Yamaha joint venture motorcycles and parts ventures
Sino-foreign Production and sales of Joint
Zhuzhou Jianya Zhuzhou Lu Hongxian 57200000 50.00% 50.00% 616774960
joint venture motorcycles and parts ventures
Sino-foreign Production and sales of Joint
Pingshan Taikai Chongqing Teng Feng 19000000 49.00% 49.00% 621907422
joint venture carburetor ventures
II. Affiliates
Tongsheng Chen Production and sales of
Ltd. liability Chongqing 10000000 30.00% 30.00% Affiliates 660868120
Construction Guozhong motorcycle parts
Technical research and
Southern
consulting service of
Motorcycle R&D Ltd. liability Chongqing Song Legang 85000000 24.00% 24.00% Affiliates 556762414
motorcycle and general
Co., Ltd.
machinery
Cargo transportation and
Fuyeda Ltd. liability Chongqing Lei Qianhong 2000000 20.00% 20.00% Affiliates 736584010
warehousing
4. Other related parties
Name of the related parties Relation with the Company Organization code
Jianshe Industry Subsidiary of the controlling shareholder
South-western Military Industry Co. Subsidiary of the controlling shareholder
Jianshe Machinery Subsidiary of the controlling shareholder
Military Finance Co. Subsidiary of the controlling shareholder
Changan Auto Grand subsidiary of the controlling shareholder
Jianshe Industry & Trading Grand subsidiary of the controlling shareholder
Jianxing Machinery Affiliate of the subsidiary of the controlling shareholder
Chongqing Bailu Industry Co., Ltd. Grand subsidiary of the controlling shareholder
Statement on other related parties
5. Related Transactions
(1) Purchasing of goods and services
In RMB
Occurred current term Occurred in previous term
Subjects of the related Pricing and decision making
Related parties Ratio in similar Ratio in similar
transactions process Amount Amount
trades trades
Jianshe Industry Purchasing of goods Fair market price 11,180,293.63 10,509,133.62
Jianxing Machinery Purchasing of goods Fair market price 17,703,199.49 11,761,820.27
Chongqing Yamaha Purchasing of goods Fair market price 40,138,528.20 4,617,666.69
China Jialin Purchasing of goods Fair market price 7,106.54
Pingshan Taikai Purchasing of goods Fair market price 1,232,162.80 7,356,647.81
Jiangmen Qingqi Purchasing of goods Fair market price 97,601.71
Tongsheng Construction Purchasing of goods Fair market price 7,046,156.10 11,652,457.46
Jianshe Industry &
Purchasing of goods Fair market price 42,942.87
Trading
Fuyeda Accept labor Fair market price 284,394.90 270,714.00
Jianshe Industry Accept labor Fair market price 4,079,003.51 1,061,761.50
Sales of goods and services
In RMB
102
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Occurred current term Occurred in previous term
Pricing and
Subjects of the related Ratio in Ratio in
Related parties decision making
transactions Amount similar Amount similar
process
trades trades
Zhuzhou Jianya sales of goods Fair market price 4,515,219.39
Chongqing Yamaha sales of goods Fair market price 178,289,136.78 85,885,719.39
Changan Auto sales of goods Fair market price 125,005,671.87 78,704,079.55
Tongsheng
sales of goods Fair market price 1,677,475.60 3,744,783.03
Construction
Jiangmen Qingqi sales of goods Fair market price 3,985,624.78
China Jialin sales of goods Fair market price 1,460.49
(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
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
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(4) Related guarantees
In RMB
The provider The beneficiary Amount guaranteed Start date Due date Completed or not
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
Principle of Occurred current term Occurred in previous term
Type of Subjects of the pricing the Ratio in Ratio in
Related parties
trade related transactions related Amount similar Amount similar
transactions trades trades
(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
Account receivable Changan Auto 60,127,276.96 71,129,789.95
Account receivable Changan SUZUKI -423,154.66 1,250,214.42
Account receivable Nanjing Changan 100,000.00 61,431.05
Account receivable Hebei Changan 611,660.00 303,209.00
Account receivable Zhuzhou Jianya 1,005,251.57 1,195,573.72
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Account payable due to related parties
In RMB
Projects Related parties Amount at end of term Initial amount
Account payable
Jianxing Machinery 2,123,529.09 4,225,048.61
Pingshan Taikai 9,097,785.01 8,677,721.45
Chongqing Yamaha 19,339,393.72 9,151,010.24
Tongsheng Construction 6,819,352.95 3,453,707.29
Jianshe Industry 99,743.50 100,065.91
Other account payable
Jianshe Industry 5,404,748.05 3,165,080.41
Fuyeda 47,790.38 95,980.00
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
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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
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
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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 amount 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
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 amount 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
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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 Amount Amount Amount
rtion on on on
Receivables provided bad debt provision in groups
Receivables provided bad 100.0 100.00 100.00 100.00
5,496,931.10 1,731,972.35 6,504,300.37 1,701,656.20
debt provision in groups 0% % % %
100.0 100.00 100.00 100.00
Sub-total of group 5,496,931.10 1,731,972.35 6,504,300.37 1,701,656.20
0% % % %
Total 5,496,931.10 -- 1,731,972.35 -- 6,504,300.37 -- 1,701,656.20 --
Remarks on categories of receivable account
Receivable accounts with large amount individually and bad debt provisions were provided
[] Applicable; [V] Not applicable
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
Age Book balance Book balance
Bad debt provision Bad debt provision
Amount Proportion Amount Proportion
within 1 yr
In which: -- -- -- -- -- --
within 6 months 3,751,866.66 68.25% 4,771,202.79 73.36%
Subtotal of within 1 year 3,763,833.52 68.47% 598.34 4,771,202.79 73.36%
3-4 years 8,617.88 0.13% 4,308.94
4-5 years 8,617.88 0.16% 6,894.30 129,500.00 1.99% 102,367.56
over 5 yrs 1,724,479.70 31.37% 1,724,479.70 1,594,979.70 24.52% 1,594,979.70
Total 5,496,931.10 -- 1,731,972.35 6,504,300.37 -- 1,701,656.20
Receivable accounts in the portfolio on which bad debt provisions are provided on percentage basis
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[] 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
[] Applicable; [V] Not applicable
(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 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
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(6) Top 5 receivable accounts
In RMB
Relation with the Percentage in total
Name of the companies Amount Ages
Company receivables
Luoyang Yaolong None related 1,027,232.01 within 6 months 18.69%
Zhuzhou Jianya Joint venture 1,005,251.57 within 6 months 18.29%
YAMAHA Motor Trade
None related 540,667.12 within 6 months 9.84%
(Shanghai) Co., Ltd.
Wuhan Longchang
None related 473,539.96 over 5 yrs 8.61%
Hardware Shop
Changzheng Machinery
of China Aero Space None related 395,296.04 over 5 yrs 7.19%
Group
Total -- 3,441,986.70 -- 62.62%
(7) Account receivable from related parties
In RMB
Name of the companies Relation with the Company Amount Percentage in total receivables
(8) Amount of receivable transferred but not satisfying the conditions of termination recognition is RMB.
(9) If securitization 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
Proport Proport Proport Proport
Amount Amount Amount Amount
ion ion ion ion
Other receivables provided bad debt provision in groups
Other receivables provided bad 100.00 100.00
210,291,611.99 4,326,082.28 2.06% 213,234,414.42 4,354,854.59 2.04%
debt provision in groups % %
100.00 100.00
Sub-total of group 210,291,611.99 4,326,082.28 2.06% 213,234,414.42 4,354,854.59 2.04%
% %
Total 210,291,611.99 -- 4,326,082.28 -- 213,234,414.42 -- 4,354,854.59 --
Remarks on other types of receivable accounts
Other receivable accounts with major single amount and bad debt provision drawn upon them
[] Applicable; [V] Not applicable
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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
Age Book balance Book balance
Bad debt provision Bad debt provision
Amount Proportion Amount Proportion
within 1 yr
In which: -- -- -- -- -- --
1-6 months 205,243,495.80 97.60% 207,610,852.08 97.36%
Subtotal of within 1 year 205,807,403.40 97.87% 28,195.38 208,750,205.83 97.90% 56,967.69
2-3 years 266,173.85 0.13% 79,852.16 266,173.85 0.12% 79,852.16
over 5 yrs 4,218,034.74 2.01% 4,218,034.74 4,218,034.74 1.98% 4,218,034.74
Total 210,291,611.99 -- 4,326,082.28 213,234,414.42 -- 4,354,854.59
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
[] Applicable; [V] Not applicable
(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 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
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(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 Percentage in total of
Name of the companies Amount Ages
Company other receivables
Sales Co. Subsidiaries 196,337,842.75 within 6 months 93.36%
Petty cash 6,999,762.95 within 6 months 3.33%
Shanghai Jianshe
Non-related 3,013,664.00 over 5 yrs 1.43%
Motorcycle Co., Ltd.
Ningbo Jianshe
Non-related 692,035.31 over 5 yrs 0.33%
Chongqing Office
Ningbo Jianshe
Non-related 329,628.73 over 5 yrs 0.16%
Motorcycle
Total -- 207,372,933.74 -- 98.61%
(7) Other accounts receivable from related parties
In RMB
Percentage in total of other
Name of the companies Relation with the Company Amount
receivables
Sales Co. Subsidiaries 196,337,842.75 93.36%
Total -- 196,337,842.75 93.36%
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(8) Amount of other receivables transferred but not satisfying the conditions of termination recognition is
RMB.
(9) If securitirizing performed on target asset with purpose of other receivable account, please brief the
related arrangements
3. Long-term equity investment
In RMB
Statement
on
differences Impairment Cash
Percentage Voting
Company Calculating Investment Opening Closing between the Impairment provision dividend of
Changed by of share in power in
invested in basis cost balance balance shareholdin provision provided the current
the firm % the firm %
g and this term term
voting
rights
Chongqing 154,699,62 312,930,24 -4,996,259. 307,933,98 15,000,000.
Equity basis 50.00% 50.00%
Yamaha 2.03 1.12 64 1.48 00
Zhuzhou 215,710,32 277,356,76 -11,986,596 265,370,16 19,000,000.
Equity basis 50.00% 50.00%
Jianya 0.08 5.96 .79 9.17 00
Pingshan 67,316,539. 80,445,464. 80,285,204. 1,470,000.0
Equity basis -160,260.23 49.00% 49.00%
Taikai 87 73 50 0
Tongsheng
3,000,000.0 2,079,588.2 1,432,024.1
Constructio Equity basis -647,564.05 30.00% 30.00%
0 3 8
n
Chongqing
Jianshe
Motorcycle Cost basis 225,000.00 225,000.00 225,000.00 45.00% 100.00%
Sales Co.,
Ltd.
12,000,000. 12,000,000. 12,000,000.
Sales Co. Cost basis 100.00% 100.00%
00 00 00
Import & 57,443,527. 57,443,527. 57,443,527.
Cost basis 95.14% 100.00%
Export Co. 88 88 88
Shanghai
Jianshe 8,160,000.0 8,568,000.0 8,364,000.0
Cost basis -204,000.00 51.00% 51.00%
Motorcycle 0 0 0
Co., Ltd.
Air
70,000,000. 70,000,000. 70,000,000.
Conditioner Cost basis 51.00% 51.00%
00 00 00
Co.
Ningbo
Jianshe
Motorcycle 8,160,000.0 1,140,915.0 1,140,915.0 1,140,915.0
Cost basis 51.00% 51.00%
Manufactur 0 0 0 4
ing Co.,
Ltd.
Southern
Motorcycle 20,000,000. 16,429,730. 16,112,499.
Cost basis -317,231.14 24.00% 24.00%
R&D Co., 00 15 01
Ltd.
616,715,00 838,619,23 -18,311,911 820,307,32 1,140,915.0 35,470,000.
Total -- -- -- --
9.86 3.07 .85 1.22 4 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 475,869,829.22 483,307,091.32
Other business income 352,301,217.41 432,103,738.14
Total 828,171,046.63 915,410,829.46
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Operation cost 775,195,001.89 854,745,965.65
(2) Business segments (on industries)
In RMB
Occurred current term Occurred in previous term
Name of industry
Turnover Operation cost Turnover Operation cost
Industry 475,869,829.22 461,637,366.48 483,307,091.32 465,905,740.68
Total 475,869,829.22 461,637,366.48 483,307,091.32 465,905,740.68
(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 475,869,829.22 461,637,366.48 483,307,091.32 465,905,740.68
Total 475,869,829.22 461,637,366.48 483,307,091.32 465,905,740.68
(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 475,869,829.22 461,637,366.48 483,307,091.32 465,905,740.68
Total 475,869,829.22 461,637,366.48 483,307,091.32 465,905,740.68
(5) Revenue from top five customers
In RMB
Name of clients Total turnover Portion in total turnover
Air Conditioner Co. 264,079,004.21 31.89%
Chongqing Yamaha 178,289,136.81 21.53%
Sales Co. 92,349,584.53 11.15%
Luoyang Yaolong New Energy Automobile Co., Ltd. 18,801,526.50 2.27%
Chongqing Jinchen Machinery Co., Ltd. 10,162,565.15 1.23%
Total 563,681,817.20 68.07%
Statement on revenue.
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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 17,158,088.15 28,962,896.45
Total 17,158,088.15 28,962,896.45
(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
Tongsheng Construction -647,564.05 68,388.96
Pingshan Taikai 1,309,739.77 741,078.04
Chongqing Yamaha 10,003,740.36 14,088,086.80
Zhuzhou Jianya 7,013,403.21 14,269,342.66
Shanghai Jianshe Motorcycle Co., Ltd. -204,000.00 -204,000.00
Southern Motorcycle R&D Co., Ltd. -317,231.14
Total 17,158,088.15 28,962,896.46 --
Remarks on investment gains
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6. 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 -36,471,193.75 -18,414,075.31
Plus: Asset impairment provision 1,543.84 -45,535.88
Fixed asset depreciation, gas and petrol depreciation, production
24,651,699.89 21,426,048.72
goods depreciation
Amortizing of intangible assets 7,510,670.82 5,324,750.10
Amortizing of long-term expenses 1,175,547.75 1,363,458.12
Financial expenses (“-“ for gains) 24,870,945.77 34,658,008.15
Investment losses (“-“ for gains) -17,158,088.15 -28,962,896.45
Decrease of inventory (“-“ for increase) 4,404,294.07 1,957,234.74
Decrease of operational receivable items (“-“ for increase) -9,711,046.26 -86,191,682.52
Increase of operational payable items (“-“ for decrease) -19,234,309.74 30,777,389.15
Cash flow generated by business operation, net -19,959,935.76 -38,107,301.18
2. Major investment and financing operation not involving with cash -- --
3. Net change of cash and cash equivalents -- --
Balance of cash at period end 4,129,644.17 59,152,220.16
Less: Initial balance of cash 148,232,292.69 51,835,684.99
Net increasing of cash and cash equivalents -144,102,648.52 7,316,535.17
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-recurring gain/loss of the term
In RMB
Items Amount Remarks
Gains and losses included in the current period of government subsidies, excluding those government grants
which are closely related to normal business and in line with national policy , or in accordance with fixed 200,000.00
standards or quantities
Other non-business income and expenditures other than the above -3,141,212.01
Total -2,941,212.01 --
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If a government subsidy is a recurring income item accounted into current income account, please state basis of
recognition.
[V] Applicable Not applicable
Items Amount involved (RMB) Causation
Penalties received 193,525.36
Anticipated liabilities (lawsuit) -3,226,654.00
Gain/loss of non-current assets -108,083.37
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
-59,961,821.44 -33,126,243.42 91,421,378.11 151,383,199.55
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
-59,961,821.44 -33,126,243.42 91,421,378.11 151,383,199.55
Standard
Accounts and amounts adjusted according to overseas accounting standard
(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
Net income on asset,
Profit of the report period Diluted earnings per
weighted Basic earnings per share
share
Net profit attributable to common shareholders
-49.39% -0.5023 -0.5023
of the Company
Net profit attributable to the common owners of
the PLC after deducting of non-recurring -46.97% -0.4777 -0.4777
gains/losses
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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 amount of the Rate of Cause of
amount of the period) previous period) change change
Non-current liability due in 1 year -46.94% Note 1
52,000,000.00 98,000,000.00
Long-term borrowings 129,000,000.00 31.78% Note 2
170,000,000.00
Expected liabilities 100% Note 3
3,226,654.00
Investment income 28,962,896.45 -40.76% Note 4
17,158,088.15
Non-operational expenditure 10188.36% Note 5
3,350,486.22 32,565.79
Note 1, 2: Decrease of borrowings was caused by change of financial resource, and increase of note financing;
Note 3: Undertaking of joint liabilities of RMB3226654 as sentenced;
Note 4: Significant decrease of profit from joint venture.
Note 5: Non-operational expense was mainly undertaking of joint liabilities of RMB3226654 as sentenced;
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Chapter X. 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 5, 2014
119
