Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Chongqing Jianshe Motorcycle Co., Ltd.
The Semi-Annual Report 2016
2016-060
August 2016
1
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
I. Important Prompts, Table of Contents, and Definitions
The Board of Directors, The Supervisory Committee, the supervisors and the directors of the Company guarantee
that there are no significant omissions, fictitious or misleading statements carried in the Report and we will accept
individual and joint responsibilities for the truthfulness, accuracy and completeness of the Report.
All directors presented the Board Meeting at which this report was examined:
The Company will not distribute cash dividend or bonus shares, neither capitalizing of common reserves for the
report period.
Mr. Lv Hongxian, The Company leader, Mr. Xue Gangyi, Chief financial officer and the Ms.Niu Yanli, the person
in charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity
and completeness of the financial report enclosed in the semi-report.
Prospective statements carried in this report, such as business plans for future are not constituting any substantial
commitment to the investors. Please be cautious to the risks.This report is prepared both in English and Chinese.
When there is any conflict in understanding, the Chinese version shall prevail.
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Table of Contents
2016 Semi-Annual Report
I..Important Notice, Table of contents and Definitions
II. Basic Information of the Company
III. Summary of Accounting Highlights and Business Highlights
IV. Report of the Board of Directors
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Financial Report
X. Documents available for inspection
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Definition
Terms to be defined Defined as Definition
Defined as
Company, the Company, Jianmo Stock Chongqing Jianshe Motorcycle Co., Ltd.
Shenjianmo Defined as Shenzhen North Jianshe Motorcycle Co., Ltd. (predecessor of the
Company)
Military Equipment Group Defined as China Military Equipment Group Co., Ltd. (China Southern Industry
Group Co., 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 Co., Ltd. Defined as Chongqing Southern Motorcycle Technologies Development Co.,
Ltd.
Jianshe Industry Defined as Chongqing Jianshe Industry Co., Ltd. – former State-owned Jianshe
Machinery Factory, Jianshe Industry (Group) Co., Ltd.
Jianshe Group Defined as Jianshe Industrial (Group) Co., Ltd.
Jianshe Machinery Defined as Chongqing Jianshe Machinery Co., Ltd.
Jianshe Mechanical and Electric Defined as Chongqing Jianshe Mechanical and Electric 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.
Sales Co. Defined as Chongqing Jianshe Sales Co., Ltd.
Vehicle air conditioner Defined as Chognqing Jianshe Automobile Air-conditioner Co., Ltd.
Import & Export Co. Defined as Chongqing Northern Jianshe Import & Export Co., Ltd.
Shanghai Jianshe Defined as Shanghai Jianshe Motorcycle Co., Ltd.
Slaes Company Defined as Chongqing Jianshe Motorcycle Sales 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.
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 Chang’an SUZUKI Automobile Co., Ltd.
Changhe SUZUKI Defined as Jiangxi Changhe SUZUKI Automobile Co., Ltd.
Hebei Changan Defined as Hebei Changan Automobile Co., Ltd.
Hefei Changan Defined as Hefei Changan Automobile Co., Ltd.
Hafei Automobile Defined as Harbin Hafei Automobile Co., Ltd.
Changan Ford ,Harbin Branch Defined as Changan Ford Automobile Co., Ltd. Harbin Branch
Harbin Dongan Auto Engine Defined as Harbin Dongan Auto Engine Co., Ltd.
South Air International Defined as South Air International Co., Ltd.
Nanjing Changan Defined as Nanjing Changan Automobile Co., Ltd.
The company has made an agreement to sale the 100% stake of
Jianshe Mechanical and Electric Company-the company’s subsidiary
Major asset restructuring Defined as
funded by the liabilities and the motorcycle business related assets
held by the company to Military Equipment Group.
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
II. Basic Information of the Company
I. Basic Information
Stock ID Jianmo B Stock Code 200054
Stock Exchange Listed in Shenzhen Stock Exchange
Company Name in Chinese 重庆建设摩托车股份有限公司
Short form of Company Name
建设摩托
in Chinese
Company Name in English CHONGQING JIANSHE MOTORCYCLE CO.,LTD.
Short form of Company Name
JSMC-B
in English
Legal representative: Li Huaguang
2. Contact person and contact manner
Secretary of the Board Representative of Stock Affairs
Name Lv Hongxian（Interim） Liu Hongyu
No.1 Jianshe Road, Huaxi Industrial Zone, No.1 Jianshe Road, Huaxi Industrial Zone,
Address
Ba’nan District, Chongqing Ba’nan District, Chongqing
Tel. 023-66295333 023-66295333
Fax. 023-66295333 023-66295333
Email. cqjsmc@jianshe.com.cn cqjsmc@jianshe.com.cn
3.Other
(1)Way to contact the Company
Whether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable □√ Not Applicable
The registered address, office address and their postal codes, website address and email address of the Company
did not change during the reporting period. The said information can be found in the 2015 Annual Report.
（2）About information disclosure and where this report is placed
Did any change occur to information disclosure media and where this report is placed during the reporting period?
□ Applicable √ Not applicable
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
The newspapers designated by the Company for information disclosure, the website designated by CSRC for
disclosing this report and the location where this report is placed did not change during the reporting period. The
said information can be found in the 2015 Annual Report.
（3）Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable √ Not applicable
Date/place for registration of the Company, registration nmber for enterprise legal license number of taxation
registration and organization code have no change in reporting period, found more details in annual report 2015.
III. Summary of Accounting Highlights and Business 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
Reporting period Same period of last year YoY+/-（%）
Operating income（RMB） 468,177,291.88 719,655,702.47 -34.94%
Net profit attributable to the shareholders
8,502,845.42 -70,888,688.67 -111.99%
of the listed company（RMB）
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of 8,361,806.82 -71,762,547.09 -111.65%
listed company（RMB）
Cash flow generated by business operation,
61,939,737.79 32,461,743.06 90.81%
net（RMB）
Basic earning per share(RMB/Share) 0.0712 -0.5938 -111.99%
Diluted gains per
0.0712 -0.5938 -111.99%
share(RMB/Share)(RMB/Share)
Weighted average ROE(%) 3.32% -391.15% 394.48%
As at the end of the
As at the end of last year YoY+/-（%）
reporting period
Gross assets (RMB) 1,566,022,192.97 1,550,615,831.44 0.99%
Shareholders’ equity attributable to
264,618,930.93 256,116,085.51 3.32%
shareholders of the listed company（RMB）
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
II.The differences between domestic and international accounting standards
1.Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed
in the financial reports of differences in net income and net assets.
□ Applicable √Not applicable
No difference .
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable √Not applicable
No difference .
III．Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount Notes
Govemment subsidies recognized in currentgain and
loss(excluding those closely related to the Company’s business 449,200.00
and granted under the state’s policies)
Other non-business income and expenditures other than the above -308,161.40
Total 141,038.60 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/itesm as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
IV. Board of Directors’ Report
I. Business overview
After the first half of 2016, the company implemented a major reorganization of assets to complete the main
industry structural adjustment to vehicle air conditioning compressor products industry.
In the first half, according to the company vehicle air-conditioning compressor industry, high standard,
large-scale and efficiency of the development goals. The company actively involved in project development of
new large customers, large customers to maintain and consolidate resources; and the development of multi-species
carried out an electric compressor market expansion in three directions pure electric, low-speed electric bus and
electric; continue to increase new customers and to develop new models and optimize the market structure. With
technical reformation of rotating air-conditioner compressor production (0.5 million productivity expanding)
gradually put into operation (expected to achieve full production in 2016), the company level of automation,
on-line monitoring capabilities, automatic error proofing capability and capacity has been further enhanced to
provide strong support for the product on the scale. January to June, vehicle air-conditioning compressor products
company realized a total production of 1.1172 million units, up 16.92 percent; total sales of 1.0811 million units,
up 8.38%, 54.06% in early completion of the sales plan.
II. Analysis on principal Business
Year-on-year changes in major financial statistics
In RMB
This report period Same period last year YOY change（%） Cause change
2015 annual
implementation of major
Operating income
468,177,291.88 719,655,702.47 -34.94% asset restructuring
changes in the scope of
consolidation.
Operating cost 394,452,147.33 636,112,118.81 -37.99% Same as above
Sale expenses 12,291,404.24 40,324,769.84 -69.52% Same as above
Administrative expenses 36,444,955.02 71,548,604.11 -49.06% Same as above
Financial expenses 16,021,092.40 51,928,828.76 -69.15% Same as above
Income tax expenses 300,493.66 1,335,610.09 -77.50% Same as above
R & D investment 6,559,902.33 14,677,302.23 -55.31% Same as above
Net cash flows from
61,939,737.79 32,461,743.06 90.81% Same as above
operating activities
Net cash flows from
-9,545,403.02 21,603,762.66 -144.18% Same as above
investing activities
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Net cash flows from
40,435,547.04 -56,066,007.50 -172.12% Same as above
financing activities
Net increase in cash and
92,829,881.81 -1,700,403.73 -5,559.28% Same as above
cash equivalents
Major changes in profit composition or cources during the report period
□ Applicable √ Not applicable
The profit composition or sources of the Company have remained largely unchanged during the report period.
Delay of future development and plan disclosed in Company’s IPO prospectus, fund raising prospectus and capital
reorganization report into this report period.\
□ Applicable √ Not applicable
No future development and plan disclosed in Company’s IPO prospectus, fund raising prospectus and capital
reorganization report into this report period.\
Implementation of business plans disclosed in previous periods in this period.
In ther reporting period, the company's development strategy has not changed substantially. January-June sales
vehicle air-conditioning compressor 1.0811 million units, up 54.06 percent year to complete the program
objectives; to achieve sales revenue of 468 million RMB, 59.24%
III. Business composition
In RMB
Increase/decrease Increase/decrease
Increase/decrease
of rincipal of gross profit
of reverue in the
Gross profit business cost over rate over the
Turnover Operation cost same period of
rate(%) the same period same period of
the previous
of previous year the previous year
year(%)
(%) (%)
On Industries
Industry 426,970,591.80 355,926,496.00 16.64% -37.21% -40.92% 45.96%
On products
Motorcycle and
4,360,940.17 4,790,273.92 -9.84% -98.43% -98.22% -408.62%
parts
Vehicle air
422,609,651.60 351,136,222.09 16.91% 5.26% 5.50% -1.10%
conditioner
On Area
Domestic 397,665,088.70 331,909,949.50 16.54% -35.48% -39.27% 45.94%
Overseas 29,305,503.03 24,016,546.53 18.05% -53.91% -57.03% 49.28%
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
IV. Core competitive-ness analsis
Automobile air-conditioner compressor business: Through over 20 years of technical research and digestion, as
well as independent innovation, the Company has been able to produce compressors with high performance and
competition. Rotating compressor products were taking steady market share in the whole industry. Over 80% of
production equipment were imported from multiple countries including the US, Germany, Swiss, and Japan. In the
report period, the Company has been reinforce investment on fixed assets, and has achieved productivity of 2
million units per year. Online testing, quality control, and researching were fully upgraded.
V. Analysis on investment Status
1. Foreign Equity investment
（1）External investment
□ Applicable √ Not applicable
There was no foreign investment of the Company in the reorting period.
2）Holding of the equipty in financial enterprises
□ Applicable √ Not applicable
There was no Holding of the equipty in financial enterprises.
（3）Investment in Securities
□ Applicable √ Not applicable
The Company had no investment in securities in period.
（4）Explanation on equity of other listed company held
□ Applicable √ Not applicable
The Company had no equity of other listed company held in period.
2.Information of trust management, derivative investment and entrusted loan
（1）Trust management
□ Applicable√ Not applicable
There was no trust management of the Company in the reorting period.
（2）Derivative investment
□ Applicable√ Not applicable
There was no derivative investment of the Company in the reporting period.
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
（3）Entrusted loan
□ Applicable√ Not applicable
There was no entrusted loan of the Company in the reporting period.
3．Changes of raised funds projects
□ Applicable√ Not applicable
There was no raised funds of the Company in the reporting period.
4.Analysis on principal subsidiaries and Mutual Shareholding Companies
√Applicable □Not applicable
Particulars about the principal subsidiaries and Mutual shareholding companies
In RMB
Leading Total Operating
Company Company Sectors Registered Net assets Tumover Net Profit
products assets(RMB profit
Name type engaged in capital (RMB) (RMB) (RMB)
and services ) (RMB)
Manufactur
ing and
Vehicle air 160,000,00 1,200,238,8 239,915,69 423,964,01 -691,059.
Manufactur sales of
conditioner Subsidiaries -497,716.14
ing auto 0 32.57 1.64 2.35 43
Co.
air-conditio
ners
5. Major projects using non-raised capital
√ Applicable □Not applicable
RMB’0000
Amount Accumulation Investment
Planned Turnover of the Disclosure Disclosure inde
Projects invested this of actual input progress of the
investment project date(if any) x(if any)
report term at end of period project
Technical
reformation of See on
rotating www.cninfo.co
air-conditioner Generally m.cn company
compressor 10,700 0 9,485 100.00% achieve the April 22,2011 announcement,
production (1.5 design goal Announcement
million No. 2011-010
productivity
expanding)
Implementatio Investment See on
1,800 0 1,460 100.00% August 5,2014
n of Experiment www.cninfo.co
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Experimental Equipment has m.cn company
Testing been installed announcement,
Capability in the plant, Announcement
Construction where No. 2014-063
Project experiment
condition are
offered to the
Company’s
development in
high-emission
and electric
compressor
by this project
Technical
Renovation
Project of
See on
Automotive
Predict to put www.cninfo.co
Rotary-vane
into full m.cn company
Air Condition 10,341 509 8,990 86.94% August 5,2014
production this announcement,
Compressor
year Announcement
（New
No. 2014-064
500,000 of
Expending
Capacity）
Total 22,841 509 19,935 -- -- -- --
VI. Prediction of business performance for January -September 2016.
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss
probably or the warning of its material change compared with the corresponding period of the last year and
explanation of reason.
□ Applicable √ Not applicable
VII. Explanation by the Board of Directors and the Supervisory Committee about the “ non-standard audit
report” issued by the CPAs firm for the reporting period.
□ Applicable √ Not applicable
VIII. Explanation by the Board of Directors about the “ non-standard audit report “ for lastyear.
□ Applicable √ Not applicable
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
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 √ Not applicable
Previous year’s profit distribution plan was no profit distribution and shares converted from capital reserve either
X. Preplan for profit distribution and turning capital reserve into share capital in the reporting period
□ Applicable √ Not applicable
The Company planed that no to distribute cash dividend, bonus shares and there was no turning of capital reserve
into share capital.
XI. Particulars about researches, visits and interviews received in this reporting period
√ Applicable □ Not applicable
Discussion topics and
Reception time Reception place Way of reception Types of visitors Vistors rece3ived
provision of materials
Q: When will the Company
issue the earnings
pre-announcement? A: The
January 12,2016 The Company Telephone Individual Investor
earnings pre-announcement
of 2015 will be completed
by the end of this month.
Q:Has the implementation
of the Company’s
significant asset
reorganization completed?
A:Up to now, the Company
has completed the changes
procedure in registration of
Jianshe Mechanical and
January 29,2016 The Company Telephone Individual Investor
Electrical and has received
the deal payment from
Military Equipment Group.
The asset transfer and the
transfer of creditor’s rights
and liability related with
this reorganization are
being orderly promoted
Q: What’s the progress of
February 1,2016 The Company Telephone Individual Investor CRSC’s application for
exempting the tender offer
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
obligation of Jianshe
Mechanical and Electrical?
A: On January 26, 2016,
Jianshe Mechanical and
Electrical received “Reply
on Approving Exempting
Chongqing Jianshe
Mechanical and Electrical
Co., Ltd.’s tender offer
obligation of Chongqing
Jianshe Motorcycle Co.,
Ltd.”from CSRC, see
details at the announcement
published by the Company
on January 29, 2016.
Q: At this sales of
significant asset, all
motorcycle capital was
offered for sales, but why
Shangjian Jianshe was
kept? A:At present,
Shanghai Jianshe has
engaged in the production
February 16,2016 The Company 公司 Telephone Individual Investor
and sales of moped,
moreover, the Company has
a plan of disposing the
holding share rights of
Shanghai Jianshe, thus
which has not been
included in the
reorganization scope
Q:Is the company in the
first quarter profitable? A:
April 11,2016 The Company Telephone Individual Investor The company recently
released results notice, so
stay tuned.
Q: Why does the company
did not disclose the sales
announcement? A: The
May 5,2016 The Company Telephone Individual Investor company production and
sales information will be
disclosed in the periodic
reports.
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
V. Important Events
I．Administrative position
2015 year the company implemented a major reorganization of assets, restructuring before the company in
accordance with "Company Law", "Securities Law", "Corporate Governance Guidelines" and other laws and
regulations and the "Articles of Association" the establishment of a sound corporate governance structure and
standardized operation, while strengthening information disclosure. General meeting of shareholders, board of
directors, board of supervisors with clear rules of procedure and effective implementation.
During the implementation of the reorganization, the company in accordance with the "Articles" completed
the directors and supervisors and senior management personnel structure adjustment, this adjustment in line with
corporate governance requirements.
After completion of the reorganization, the company will continue to maintain the effective functioning of the
governance structure of the provisions of "Articles of Association" and continue to improve corporate governance
and information disclosure quality, protection of shareholders, especially minority shareholders. At present, the
actual corporate governance and the "Company Law" and the China Securities Regulatory Commission
requirements there is no significant difference.
II. Lawsuits affairs
Major lawsuits and Arbitration affairs
□ Applicable √ Not applicable
The Company has no major lawsuit or arbitration in the report period.
III. Query form media
□ Applicable √ Not applicable
In the reporting year, the Company had no query from media
IV. Bankruptcy or Reorganization Events
□ Applicable √ Not applicable
There Company was not involved in any bankruptcy or reorganization events in the reporting period.
V. Transaction in Assets
1. Purchase of assets
□ Applicable √ Not applicable
There is no purchase of assets in the Company during the reporting period.
2. Sale of assets
□ Applicable √ Not applicable
There is no sale of assets in the Company during the reporting period
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
3. Business combination
□ Applicable √ Not applicable
There is no Bubiness combination in the Company during the reporting period
VI. Implementation and Influence of Equity Incentive Plan of the Company
□ Applicable √ Not applicable
There is no equity incentive plan and its implementation in the Company during the reporting period.
VII. Significant related-party transactions
1. Related-party transactions concerning routine operation
Whether
Trading
Principl over the
limit Market
Subjects e of approve
Amount price of Index of
of the pricing Ratio in approve Date of
Related Relation Type of Price of of trade Way of similar informatio
related the similar d disclosu
parties ship trade trade RMB0’ payment trade n
transacti related trades d re
000 availabl disclosure
ons transacti limited e
ons （RMB
or not
’0000）
(Y/N)
www.cninf
Grand
subsidia o.com.cn.A
ries of April nnounceme
Changan Sales of Finished agreed
common 18,157 18,157 38.78% 31,747 No Cash 18,157
Auto goods products price 30,2016 nt
holding
sharehol No.:2016-0
der
27
www.cninf
o.com.cn.A
Under Purchas April nnounceme
Jianshe Fuel & agreed
same e of 97 97 0.25% 200 No Cash 97
Industry power price 30,2016 nt
control goods
No.:2016-0
27
www.cninf
Purchas
o.com.cn.A
Import&Exp Under e of Purchas
agreed April nnounceme
ort same goods e of 4,230 4,230 10.72% 3,800 Yes Cash 4,230
price 30,2016 nt
Company control and goods
No.:2016-0
services
27
www.cninf
Jianshe Under Purchas
Finished agreed April o.com.cn.A
mechanical same e of 878 878 2.23% 1,500 No Cash 878
products price 30,2016 nnounceme
and electrical control goods
nt
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
No.:2016-0
27
www.cninf
o.com.cn.A
Jianshe Under
Sales of Finished agreed April nnounceme
mechanical same 184 184 0.39% Yes Cash 184
goods products price 30,2016 nt
and electrical control
No.:2016-0
27
www.cninf
o.com.cn.A
Jianshe Under Purchas
agreed April nnounceme
mechanical same e of rental. 113 113 0.29% Yes Cash 113
price 30,2016 nt
and electrical control goods
No.:2016-0
27
www.cninf
o.com.cn.A
Jianshe Under
Sales of agreed April nnounceme
mechanical same rental. 464 464 0.99% 1,000 No Cash 464
goods price 30,2016 nt
and electrical control
No.:2016-0
27
Total -- -- 24,123 -- 38,247 -- -- -- -- --
Details of any sales return of a large
Nome
amount
In 2016, the estimated amount of daily connected transaction was 388.12 million in total and the
Give the actual situation in the report
actual transaction volume was 241.23 million. The predicted cost of commodities purchased/labor
period where a forecast had been made for
services received among them was about 60.65 million, while the actual cost was 53.18 million.
the total amounts of routine related-party
The estimated amount of commodity sales/ render service was about 327.47 million, while the
transactions by type to occur in the
actual amount was 188.05 million.
current period(if any)
Reason for any significant difference
between the transaction price and the Not applicable
market refernce price (if applicable)
2. Related-party transactions arising from asset acquisition or sale
□ Applicable √ Not applicable
The Company was not involved in any related-party transactions arising from asset acquisition or sale during the
reporting period.
3. Related-party transitions with joint investments
□ Applicable √ Not applicable
The Company was not involved in any related-party transaction with joint investments during the reporting
period.
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
4. Debtors and credits with related parties
□ Applicable √ Not applicable
The Company was not involved in any Debtors and credits with related parties during the reporting period.
5. Other related transactions
√ Applicable □ Not applicable
The company implemented a momentous asset restructuring this year, not only to improve assets quality and
profitability, but also safeguard the interests of shareholders, especially the minority shareholders. Under the sale
agreement with the Bingzhuang Group Corporation, the company took August 31, 2015 as the base date to sell the
100% stock equity of Jianshe Mechanical and Electric Corporation, the wholly-owned subsidiary which was
founded by motorcycle business-related assets and liabilities of the company. The transaction price of the
underlying asset was assessed by asset evaluation agencies which possessed securities practice qualifications.
After the completion of this transaction, the main business of the company will transform from the production and
sales of motorcycle and car air-conditioning compressor to the production and sales of automotive
air-conditioning compressor. For details, please refer to the company announcements published on Securities
Times, Hong Kong Commercial Daily, and the Cninfo Network (cninfo.com.cn).
Website for temporary disclosure of the connected transaction
Announcement Date of disclosure Website for disclosure
Announcement of 8th meeting of the seventh http//www.cninfo.com.cn. Announcement
October 29,2015
board of directors No.2015-080
Plan on the Company’s Significant Asset Sales http//www.cninfo.com.cn. Announcement
October 29,2015
and Related Transaction No.2015-082
Announcement on the “Asset Sales
http//www.cninfo.com.cn. Announcement
Agreement” with Valid Condition Signed by October 29,2015
No.2015-083
the Company
The Report of Significant Asset Sales and http//www.cninfo.com.cn. Announcement
October 29,2015
Related Transaction(Draft) No.2015-084
Summary (Draft) of the Report of Significant http//www.cninfo.com.cn. Announcement
October 29,2015
Asset Sales and Related Transaction No.2015-085
Independent Financial Adviser Report of
China Securities Co, Ltd. on Chongqing http//www.cninfo.com.cn. Announcement
October 29,2015
Jianshe Motorcycle Co., Ltd.’s Significant No.2015-086
Asset Sales and Related Transaction
Commitment on the Relevant Issues of http//www.cninfo.com.cn. Announcement
October 29,2015
Significant Asset Sales No.2015-089
Audit Report and Proforma Financial
http//www.cninfo.com.cn. Announcement
Statement of Chongqing Jianshe Motorcycle October 29,2015
No.2015-092
Co., Ltd.
Assessment Report of Chongqing Jianshe October 29,2015 http//www.cninfo.com.cn. Announcement
18
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Motorcycle Co., Ltd’s Planned Transfer of No.2015-094
Chongqing Jianshe Mechanical and Electric
Co., Ltd.’s Share Right Assessment Items
Legal Opinion of Chongqing Solton & Parents
Law Office on Chongqing Jianshe Motorcycle http//www.cninfo.com.cn. Announcement
October 29,2015
Co., Ltd.’s Significant Asset Sales and Related No.2015-098
Transaction
Announcement on the Significant Asset Sales
http//www.cninfo.com.cn. Announcement
related with the Changes from Internal November 7,2015
No.2015-104
Guarantee to External Guarantee
Announcement on Disclosing the Significant
http//www.cninfo.com.cn. Announcement
Asset Sales Report’s Revised Draft and the November 11,2015
No.2015-106
Resumption of the Company’s Share
Written Reply on the Inquiry Letter of http//www.cninfo.com.cn. Announcement
November 11,2015
Reorganization No.2015-108
Revised Draft of the Significant Asset Sales http//www.cninfo.com.cn. Announcement
November 11,2015
and Related Transaction Report (Draft) No.2015-109
Summary’s Revised Draft of the Significant
http//www.cninfo.com.cn. Announcement
Asset Sales and Related Transaction Report November 11,2015
No.2015-110
(Draft)
Announcement of Resolutions of the first http//www.cninfo.com.cn. Announcement
November 18,2015
provisional shareholders’ general meeeting No.2015-114
VIII. Particulars about the non-operating occupation of funds by the controlling shareholder
and other related parties of the Company
√ Applicable □Not applicable
In RMB’0000
The total
The newly amount of
Shareholder Amount at Amount at Expected Expected Expected
Time increased reimbursem
sorassociate Reasons the the end of repayment amountof payback
occupied occupancy ent in the
sname beginning period method payment time(month)
amount reimbursem
ent
Financial
Jianshe debt
mechanical June restructurin December
21,399.2 21,399.2 Other 21,399.2
and 30,2016 g process is 31,2016
electrical not yet
completed
19
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
the
procedures
for
transferring
formed
Total 21,399.2 21,399.2 -- 21,399.2 --
The end of the latest issue of the total
value of accounts audited net assets 80.87%
ratio
Relevant decision-making procedures As below
The major assets restructuring in the company was put into practice after being reviewed
and passed by the first extraordinary general meeting 2015 on November 17, 2015. The
major assets restructuring stripped the major assets and debts involved in the motorcycle
business off Jianshe Mechanical and Electric . and transferred them to Military Equipment
Group. Wherein, the transferrable financial institution debts totaled 807.50 million yuan.
There were quite a big workload and a tight time schedule for the assets and debts transfer
involved in this assets restructuring, and some financial institutions spent much time in
approving the transfer procedure. Since so, by April 30, 2016, the debts transferred by
financial institutions totaled 593.50 million yuan, and 214 million yuan of debts were still
being transacted. I. The explanation on the risk of un-transferred financial institution debt
was audited by Shu Lun Pan CPA Co., Ltd. By April 30, 2016, the un-transferred financial
institution debt totaled 214,000,000 yuan and was processed as other receivables tentatively.
According to the Agreement on the Arrangement of Assets and Liabilities Injection signed
Add the current major shareholder and between the company and Jianshe Electromechanical Co., Ltd. (as detailed in related
its affiliated non-operating capital Announcement on Major Assets Restructuring disclosed on Cninf November 11, 2015 ),
occupation reasons, the case be held both parties should complete the procedures for transferring assets and debts no later than
responsible and the Board has December 31, 2016. As the aforementioned debts are un-matured, the company doesn’t
developed a description of measures need to pay and the financial institution doesn’t press for payment, thus no capital flow has
taken. been formed. At the same time, there will no such circumstance where the company has to
pay the debts on behalf of Jianshe Mechanical and Electric . The processing of this
accounting doesn’t constitute the Chongqing Jianshe Mechanical and Electric ’s substantial
possession of the company’s non-operating funds. To this end, the board of directors
believes that the un-transferred financial institution debts are just a tentative processing of
the company’s accounting and won’t pose any debt risk to the company. II. On top of the
major assets restructuring, the company and Jianshe Mechanical and Electric . have been
following the terms and conditions as set forth in Agreement on Arrangement of Assets and
Liabilities Injection and carried out the assets and liabilities transfer work. The transfer of
related assets and liabilities is to be completed before the expiry date December 31, 2016.
During the period, if the creditor requires the company to pay off the debts, Jianshe
Mechanical and Electric . shall pay the creditor directly or through the company. If it must
be performed by the company, Jianshe Mechanical and Electric shall bear all losses arising
from the company’s paying the debts. Upon expiration, if the aforementioned debts are not
20
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
transferred yet, Jianshe Mechanical and Electric will pay the company the un-transferred
but due debts.
Failed to explain measures planned
liquidation of non-operating capital
occupation reasons, conditions and Noe applicable
accountability of the Board of
Directors proposed action
Disclosure date for specific approval
April 30,2016
opinion on fund occupation from CPA
Refer to www.cninfo.com.cn on April 30, 2016, Announcement No. 2016-041 ,Chongqing
Disclosure index for specific approval
Jianshe Motorcycle Co., Ltd. the Statement of Special Auditing on Capital Appropriation by
opinion on fund occupation from CPA
Holding Shareholder or Related Parties
IX. Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
□ Applicable √ Not applicable
There was no any trusteeship of the Company in the reporting period.
(2) Contract
□ Applicable √ Not applicable
There was no any contract of the Company in the reporting period.
(3) Lease
□ Applicable √ Not applicable
There was not involved in any lease of the Company in the reporting period.
2. Guarantees
√ Applicable □Not applicable
RMB’0000
External Guarantee (Exclude controlled subsidiaries)
Guarante
Relevant
Date of e
disclosure Complete
happening Actual for
Name of the date/No. of Amount of Guarantee Guarantee implemen
(Date of mount of associate
Company the Guarantee type term tation
signing guarantee d
guaranteed or not
agreement) parties
amount
(Yes or
21
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
no)
November Vehicle air
Sales Co. 3,000 June 1,2015 3,000 9 months Yes Yes
7,2015 conditioner
May 25, Vehicle air
Jianmo B 100 April 12,2014 100 23 moths Yes No
2016 conditioner
May 25, Vehicle air
Jianmo B 100 March 31,2014 100 23 months Yes No
2016 conditioner
May 25, September 24, Vehicle air
Jianmo B 2,500 2,500 6 months Yes No
2016 2015 conditioner
May 25, September 29, Vehicle air
Jianmo B 2,500 2,500 6 months Yes No
2016 2015 conditioner
May 25, Vehicle air
Jianmo B 2,400 May 22,2013 2,400 37 months Yes No
2016 conditioner
May 25, Vehicle air
Jianmo B 50 July 25,2014 50 24 months No No
2016 conditioner
May 25, Vehicle air
Jianmo B 2,000 March 31,2014 2,000 30 moths No No
2016 conditioner
May 25, Vehicle air
Jianmo B 2,000 April 13,2014 2,000 29 months No No
2016 conditioner
May 25, Vehicle air
Jianmo B 200 July 25,2014 200 31 months No No
2016 conditioner
May 25, Vehicle air
Jianmo B 2,100 March 31,2014 2,100 37 months No No
2016 conditioner
May 25, Vehicle air
Jianmo B 2,100 April 14,2014 2,100 36 months No No
2016 conditioner
May 25, Vehicle air
Jianmo B 300 July 25,2014 300 37 months No No
2016 conditioner
Vehicle air May 25, Vehicle air
2,500 August 26,2015 2,500 12 months No Yes
conditioner 2016 conditioner
Vehicle air May 25, September Vehicle air
2,500 2,500 12 months No Yes
conditioner 2016 1,2015 conditioner
Vehicle air May 25, Vehicle air
3,000 March 11,2016 3,000 6 months No Yes
conditioner 2016 conditioner
Vehicle air May 25, December Vehicle air
3,500 3,500 10 months No Yes
conditioner 2016 14,2015 conditioner
Total amount of approved Total actually amount of
108,200 30,850
external guarantee in the report external guarantee in the
22
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
period(A1) report period(A2)
Total amount of approved Total actually amount of
external guarantee at the end of 108,200 external guarantee at the end 20,250
the report period(A3) of the report period(A4)
Guarantee of the company for its subsidiaries
Guarante
Related Date of Complete
Name of the Actually e for
announcem Amount of happening(date Guarantee Guarantee implemen
company guarantee related
ent date and guarantee of signing type term tation or
guaranteed amount party(yes
no. agreement) not
or no)
Vehicle air May 25, Joint
7,000 February 4,2015 7,000 12 months Yes No
conditioner 2016 liabilities
Vehicle air May 25, Joint
4,000 June 1,2015 4,000 9 months Yes No
conditioner 2016 liabilities
Vehicle air May 25, Joint
2,000 August 31,2015 2,000 6 months Yes No
conditioner 2016 liabilities
Vehicle air May 25, Joint
2,450 October 8,2015 2,450 6 months Yes No
conditioner 2016 liabilities
Vehicle air May 25, Joint
2,849 October 10,2015 2,849 6 months Yes No
conditioner 2016 liabilities
Vehicle air May 25, Joint
2,000 October 19,2015 2,000 6 months Yes No
conditioner 2016 liabilities
Vehicle air May 25, November 12, Joint
2,800 2,800 6 months Yes No
conditioner 2016 2015 liabilities
Vehicle air May 25, November 17, Joint
2,550 2,550 6 months Yes No
conditioner 2016 2015 liabilities
Vehicle air May 25, December 24, Joint
2,500 2,500 6 months Yes No
conditioner 2016 2015 liabilities
Vehicle air May 25, December 25, Joint
2,500 2,500 6 months Yes No
conditioner 2016 2015 liabilities
Vehicle air May 25, January 4, Joint
1,701 1,701 6 months No No
conditioner 2016 2016 liabilities
Vehicle air May 25, January 13, Joint
2,450 2,450 6 months No No
conditioner 2016 2016 liabilities
Vehicle air May 25, September 25, Joint
3,000 3,000 12 months No No
conditioner 2016 2015 liabilities
Vehicle air Joint
May 25, 1,200 October 30, 1,200 12 months No No
conditioner liabilities
23
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
2016 2015
Vehicle air May 25, November 4, Joint
3,000 3,000 12 months No No
conditioner 2016 2015 liabilities
Vehicle air May 25, November Joint
3,000 3,000 12 months No No
conditioner 2016 6,2015 liabilities
Vehicle air May 25, February 22, Joint
2,000 2,000 6 months No No
conditioner 2016 2016 liabilities
Vehicle air May 25, February 3, Joint
3,500 3,500 12 months No No
conditioner 2016 2016 liabilities
Vehicle air May 25, February 4, Joint
3,500 3,500 12 months No No
conditioner 2016 2016 liabilities
Vehicle air May 25, February 16, Joint
3,500 3,500 12 months No No
conditioner 2016 2016 liabilities
Vehicle air May 25, February 18, Joint
3,500 3,500 12 months No No
conditioner 2016 2016 liabilities
Vehicle air May 25, Joint
2,450 April 8,2016 2,450 6 months No No
conditioner 2016 liabilities
Vehicle air May 25, Joint
2,849 April 12,2016 2,849 6 months No No
conditioner 2016 liabilities
Vehicle air May 25, Joint
1,120 May 16,2016 1,120 6 months No No
conditioner 2016 liabilities
Vehicle air May 25, Joint
1,430 May 18,2016 1,430 6 months No No
conditioner 2016 liabilities
Vehicle air May 25, Joint
2,800 May 12,2016 2,800 12 months No No
conditioner 2016 liabilities
Vehicle air May 25, Joint
2,500 June 3,2016 2,500 6 months No No
conditioner 2016 liabilities
Vehicle air May 25, Joint
2,500 June 8,2016 2,500 6 months No No
conditioner 2016 liabilities
Total amount of actual
Total amount of approving
occurred guarantee for
guarantee for subsidiaries in 92,000 76,649
subsidiaries in reportperiod
report period（B1）
（B2）
otal amount of actual occurred
Total amount of approved
guarantee for subsidiaries at
guarantee for subsidiaries at the 92,000 46,000
the end of reporting period
end of reporting period（B3）
（B4）
24
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Guarantee of the subsidiaries for its subsidiaries
Guarante
Related Date of Complete
Name of the Actually e for
announcem Amount of happening(date Guarantee Guarantee implemen
company guarantee related
ent date and guarantee of signing type term tation or
guaranteed amount party(yes
no. agreement) not
or no)
Total amount of guarantee to
Total guarantee quota to the
the subsidiaries actually
subsidiaries approved in the 0 0
incurred in the reporting
reporting period (C1)
period (C2)
）otal balance of actual
Total guarantee quota to the
guarantee to the subsidiaries at
subsidiaries approved at the end 0 0
the end of the reporting period
of the reporting period (C3)
(C4)
Total of Company’s guarantee（namely total of the large three aforementioned）
Total of guarantee in the Period Total of actual guarantee in
200,200 107,499
（A1+B1+C1） the Period（A2+B2+C2）
Total of actual guarantee at
Total of guarantee at Period-end
200,200 Period-end 66,250
（A3+B3+C3）
（A4+B4+C4）
The Company’s total guarantee(i.e.total of the first three main
250.36%
items)（A4+B4+C4）
Incluidng：
Amount of guarantee for shareholders, actual controller and its
0
associated parties（D）
The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed 46,000
70% directly or indirectly（E）
Proportion of total amount of guarantee in net assets of the
53,444.2
company exceed 50%（F）
Total guarantee Amount of the abovementioned guarantees
66,250
（D+E+F）
Description of the guarantee with complex method
(1) Particulars about illegal external guarantee
□ Applicable √ Not applicable
There was no particular about illegal external guarantee of the Company in the reporting period.
3. Other significant contracts
25
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
□ Applicable √ Not applicable
There was no other significant contract of the Company in the reporting period.
4. Other significant transactions
□ Applicable √ Not applicable
There was no other significant transaction of the Company in the reporting period.
X. Commitments made by the Company or shareholders holding over 5% of the Company’s shares in the
reporting period or such commitments carried down into the reporting period
√ Applicable□ Not applicable
Commitment Time of making Period of
Commitment Contents Fulfillment
maker commitment commitment
Commitment on
share reform
Commitment in
the acquisition
report or the
report on equity
changes
The reason why listed companies offer
external guarantee is that the conditioning
company,as the subsidiary corporation of
Jianshe stock , provided credit guarantee
186 million yuan for its parent company’
bank loan. And as the relevant liabilities of
Jianshe stock’s motorbike business has
been transferred into Jianshe Mechanical
and Electrical , corresponding secured After the
Jianshe party should be Jianshe Mechanical and guarantee period
Mechanical Electrical .Moreover,Jianshe Stock stipulated in the
Commitment
and provided credit guarantee 30 million yuan October 20, contract expires, Under
made upon the
Electrical , for the wholly-owned subsidiary,the sales 2015 the above Fulfillment
assets replacement
Air-conditione company,after this transaction, Jianshe financing
r Co Mechanical and Electrical ,whose’ sales assurance will
company is subsidiary Jianshe Mechanical be lifted
and Electrical , will be wholly-owned
subsidiaries under Military Equipment
Group control.Above-mentioned the
guarantees formed the external guarantees
of the conditioning company, which has
gained the permission from the company’
general meeting of stockholders. Jianshe
stock and the conditioning company has
26
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
made promise respectively on October 20,
2015,after guarantee expires in the
guarantee period, above financing
guarantee will be lifted . For the Jianshe
stock’s guarantee for the sales company,
Mechanical and Electrical has promised
that it will ensure the debtor to repay its
creditors to protect listed company’s legal
interests, and if there are any loss for the
listed company,Jianshed Mechanical and
Electrical will give first dollar coverage
for Jianshe stock. And Jianshe Mechanical
and Electrical has presented
Commitment to provide counter guarantee
after the reorganization about above
related-party guarantee.1, after the sales of
substantial assets and the relevant matters
of related-party guarantee provided by
Jianshe stock, which has been approved by
general meeting of stockholders of Jianshe
stock the company will provide the equal
counter guarantee for Jianshe stock 2.If
the company violates the above pledge and
caused any damages or negative effects for
Jianshe stock,the Company will assume
full financial responsibility and liability.
Equity incentive
commitment
Other
commitments
made to minority
shareholders
Executed timely
Yes
or not?
XI. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
□ Yes √ No
The semi-annual financial report has not been audited.
27
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
XII. Punishment and Rectification
□ Applicable √ Not applicable
There was no any punishment and rectification of the Company in the reporting period.
XIII. Reveal of the delisting risks of illegal or violation
□ Applicable √ Not applicable
There was no any delisting risk of illegal or violation of the Company in the reporting period.
XIV. Explanation about other significant matters
√ Applicable □Not applicable
Military Equipment Group , the controlling shareholder of the company, signed the agreement of free share
transfer with Jianshe Mechanical and Electric Corporation on December 10th, 2015. According to the agreement,
Military Equipment Group gratuitously transferred 84,906,250 state-owned corporate shares，which occupied
71.13% of company’s general capital， to Jianshe Mechanical and Electric Corporation. The share transfer
registers and formalities were successfully completed at China Securities Depository and Clearing Limited
Liability Company, Shenzhen subsidiary on March 2, 2016. After the completion of equity transfer, the Military
Equipment Group no long held share of the company, instead Jianshe Mechanical and Electric Corporation
became the controlling shareholder which held 84,906,250 share with 71.13% stock-keeping ratio, and the
property of stock system was state-own initiator. The actual controller of the company was not changed, and the
state-owned Assets Supervision and Administration Commission was still in power. Detailed information was
posted in Securities Times, Hong Kong Commercial Daily, and Cninfo Network (cninfo.com.cn) from December
15th, 2015 to March 8th, 2016, where the Construction of Chongqing Motorcycle Co., Ltd. Purchase Report and
other company announcements were also published.
XV. Issuance of corporate bonds
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due but not folly cashed on the approval date of annual report
No.
28
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
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 Transferre
Bonus Proportio
Amount Proportion new d from Others Sub-total Amount
shares n
shares reserves
I. Shares with trade 89,375,00 89,375,00
74.87% 0 0 0 0 0 74.87%
restriction conditions 0 0
1. State-owned shares 0 0.00% 0 0 0 0 0 0 0.00%
2. State-owned legal 84,906,25 84,906,25
71.13% 0 0 0 0 0 71.13%
person shares 0 0
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 person
2,718,750 2.28% 0 0 0 0 0 2,718,750 2.28%
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 person
0 0.00% 0 0 0 0 0 0 0.00%
shares
II. Shares without trading 30,000,00 30,000,00
25.13% 0 0 0 0 0 25.13%
limited conditions 0 0
1. Common shares in RMB 0 0.00% 0 0 0 0 0 0 0.00%
2. Foreign shares in 30,000,00 30,000,00
25.13% 0 0 0 0 0 25.13%
domestic market 0 0
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%
119,375,0 119,375,0
III. Total of capital shares 100.00% 0 0 0 0 0 100.00%
00 00
Reasons for share changed:
□ Applicable √ Not applicable
Approval of Change of Shares
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
29
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
√Applicable □Not applicable
Military Equipment Group , the controlling shareholder of the company, signed the agreement of free share
transfer with Jianshe Mechanical and Electric Corporation on December 10th, 2015. According to the agreement,
Military Equipment Group gratuitously transferred 84,906,250 state-owned corporate shares，which occupied
71.13% of company’s general capital，to Jianshe Mechanical and Electric Corporation. The share transfer registers
and formalities were successfully completed at China Securities Depository and Clearing Limited Liability
Company, Shenzhen subsidiary on March 2, 2016. After the completion of equity transfer, the Military Equipment
Group no long held share of the company, instead Jianshe Mechanical and Electric Corporation became the
controlling shareholder which held 84,906,250 share with 71.13% stock-keeping ratio, and the property of stock
system was state-own initiator. The actual controller of the company was not changed, and the state-owned Assets
Supervision and Administration Commission was still in power.
Explanation on changes in aspect of total shares, shareholders structures as well as structure of assets and liability
of the Company
□ Applicable √ Not applicable
II. Number of shares and shares held
In shares
Total number of preferred
Total number of common shareholders that had restored
shareholders at the end of the 8,395 the 0
reporting period voting right at the end of the
reporting period (if any) (note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Number Amount Number os share pledged/frozen
Amount of
Proportion of shares Changes in of
Nuture of un-restricte
Shareholders of shares held at reporting restricted
shareholder d shares State of share Amount
held（%） period period shares
held
-end held
Chongqing
Jianshe
State-owned legal 84,906,25 84,906,25
Mechanical and 71.13% 84,906,250 0 0
person 0 0
Electric Co.,
Ltd.
Domestic natural
Gu Zuocheng 1.86% 2,218,750 0 2,218,750 0 0
person
Anhui Domestic
Hengsheng non-state-owned 1.47% 1,750,000 0 1,750,000 0 0
Economic legal person
30
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Development
Group Co., Ltd.
Domestic natural
Feng Yonghui 0.42% 500,000 0 500,000 0 0
person
Domestic natural
Liu Dan 0.92% 1,098,301 -177700 0 1,098,301 0
person
Domestic natural
Chen Xinqiang 0.51% 612,400 -50852 0 612,400 0
person
Domestic natural
Xu Yuanhui 0.51% 608,089 68100 0 608,089 0
person
Domestic natural
Xie Qingjun 0.51% 606,650 606650 0 606,650 0
person
GUOTAI
JUNAN
Overseas legal
SECURITIES( 0.46% 547,497 393522 0 547,497 0
person
HONGKONG)
LIMITED
Domestic natural
Zhang Meilan 0.43% 513,560 6300 0 513,560 0
person
There isn’t any associated relationship between the sponsoring shareholder and the other
Explanation on associated shareholders among the top-10 list. None of them are regarded as ‘Acting in concert’ in
relationship among the aforesaid accordance with ‘The rules of information disclosure on change of shareholding.’ Foreign
shareholders shareholders are unknown for their condition of ‘Associated relationship’ and ‘Acting in
concert’.
Top 10 holders of unconditional shares
Amount of unconditional shares Category of shares
Name of the shareholder
held at end of period Category of shares Amount
Foreign shares placed in domestic
Liu Dan 1,098,301 1,098,301
exchange
Foreign shares placed in domestic
Chen Xinqiang 612,400 612,400
exchange
Foreign shares placed in domestic
Xu Yuanhui 608,089 608,089
exchange
Foreign shares placed in domestic
Xie Qiangjun 606,650 606,650
exchange
GUOTAI JUNAN
Foreign shares placed in domestic
SECURITIES(HONGKONG) 547,497 547,497
exchange
LIMITED
Foreign shares placed in domestic
Zhang Meilan 513,560 513,560
exchange
Foreign shares placed in domestic
Yu Lingfeng 494,125 494,125
exchange
CREDIT SUISSE (HONG KONG) Foreign shares placed in domestic
489,160 489,160
LIMITED exchange
31
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Foreign shares placed in domestic
Feng Yongxia 398,575 398,575
exchange
Foreign shares placed in domestic
Chen Houping 312,800 312,800
exchange
There isn’t any associated relationship between the sponsoring shareholder and the other
Action-in-concert among top 10
shareholders among the top-10 list. None of them are regarded as ‘Acting in concert’ in
non-restricted current share holders,
accordance with ‘The rules of information disclosure on change of shareholding.’ Foreign
top 10 non-restricted current share
shareholders are unknown for their condition of ‘Associated relationship’ and ‘Acting in
holders and top 10 shareholders
concert’.
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
III. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
√ Applicable □Not applicable
Name of the new controlling shareholder Chongqing Jianshe Mechanical and Electric Co., Ltd.
Change date March 2,2016
Web index www.cninfo.com.cn,Announcement No.:2016-011
Date of disclosure March 8,2016
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
IV. Particulars on shareholding increase scheme during the reporting period proposed or implemented by
the shareholders and act-in-concert persons
□ Applicable √ Not applicable
Within the scope known to the Company, there was no any shareholding increase scheme during the reporting
period proposed or implemented by the shareholders and act-in-concert persons.
32
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
33
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
□ Applicable √ Not Applicable
There was no change in shareholding of directors, supervisors and senior management staffs, for the specific
information please refer to the 2015 Annual Report.
II. Changes in directors, supervisors and senior management staffs
√ Applicable □ Not applicable
Name Positions Types Date Reason
Board chairm,director, Strategy
Committee chairman and member
of the Audit Committee, Due to changes in work,
Li Huaguang Resignation May 25,2016
Nomination Committee, apply for resignation.
Remuneration and Evaluation
Committee duties
Due to changes in work,
Yan Xuechuan Director Resignation May 25,2016
apply for resignation.
Due to changes in work,
Ni Erke Director Resignation May 25,2016
apply for resignation.
Director , member of the Audit
Due to changes in work,
Teng Feng Committee,Deputy GM, CFO and Resignation May 25,2016
apply for resignation.
Secretary to the board of directors
Due to changes in work,
Tang Wenquan Employee, director Resignation March 10,2016
apply for resignation.
Chairman of the supervisory Due to changes in work,
Cha Changli Resignation May 25,2016
committee, Supervisor apply for resignation.
Due to changes in work,
Tan Mingxian Supervisor Resignation May 25,2016
apply for resignation.
Due to changes in work,
Mu Jun Supervisor Resignation May 25,2016
apply for resignation.
Due to changes in work,
Lv Cuiwei Employee supervisor Resignation March 10,2016
apply for resignation.
Due to changes in work,
Tao Xuqian Employee supervisor Resignation March 10,2016
apply for resignation.
Lv Hongxian GM Resignation March 18,2016 Due to changes in work,
34
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
apply for resignation.
Due to changes in work,
Wen Hong Deputy GM Resignation March 18,2016
apply for resignation.
Due to changes in work,
Yu Jiang Deputy GM Resignation March 18,2016
apply for resignation.
Due to changes in work,
Yu Wenbiao Deputy GM Resignation March 18,2016
apply for resignation.
Due to changes in work,
Fan Aijun Deputy GM Resignation March 18,2016
apply for resignation.
Board chairm,director, Strategy
Lv Hongxian Committee chairman and member Be elected March 18,2016
of the Audit Committee
Zhou Yongqiang Director Be elected May 25,2016
Ye Yuxin Director Be elected May 25,2016
Yu Wenbiao Director Be elected May 25,2016
Fan Aijun Director Be elected May 25,2016
Wang Jun Director Be elected May 25,2016
Deng Gang Employee director Be elected March 10,2016
Chairman of the supervisory
Lv Cuiwen Be elected May 25,2016
committee, Supervisor
Tao Xuqian Supervisor Be elected May 25,2016
Wu Haiwen Supervisor Be elected May 25,2016
Xu Dongxia Employee supervisor Be elected March 10,2016
Wang Mao Employee supervisor Be elected March 10,2016
Fan Aaijun GM Appointment March 18,2016
Zhang
Deputy GM Appointment March 18,2016
Xiangdong
Xue Gangyi Deputy GM.CFO Appointment March 18,2016
Zhang Guofeng Deputy GM Appointment March 18,2016
Deng Xianming Deputy GM Appointment March 18,2016
Cao Bing Deputy GM Appointment March 18,2016
35
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
IX. Financial Report
1. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.
II. Financial statements
Currency unit for the statements in the notes to these financial statements:RMB
1. Consolidated Balance Sheet
Prepared by: Chongqing Jianshe Motorcycle Co., Ltd.
June 30, 2016
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 357,074,497.26 302,660,758.76
Settlement provision
Outgoing call loan
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Bill receivable 50,637,161.19 47,008,704.63
Account receivable 253,694,248.13 217,759,208.43
Prepayments 17,233,263.77 9,309,626.86
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Interest receivable
Dividend receivable
Other account receivable 164,143,405.67 257,809,644.42
36
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Repurchasing of financial assets
Inventories 154,144,290.55 146,350,934.34
Assets held for sales
Non-current asset due in 1 year
Other current asset 1,291,816.53 5,430,548.06
Total of current assets 998,218,683.10 986,329,425.50
Non-current assets：
Loans and payment on other’s behalf
disbursed
Disposable financial asset
Expired investment in possess
Long-term receivable
Long term share equity investment 81,197,752.83 83,381,316.13
Property investment
Fixed assets 423,832,625.71 395,975,005.27
Construction in progress 13,097,409.12 40,435,429.90
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 27,905,209.57 28,270,393.63
R & D petrol
Goodwill
Long-germ expenses to be amortized 3,198,840.25 3,926,091.85
Differed income tax asset 1,784,393.31 1,819,643.46
Other non-current asset 16,787,279.08 10,478,525.70
Total of non-current assets 567,803,509.87 564,286,405.94
Total of assets 1,566,022,192.97 1,550,615,831.44
Current liabilities
Short-term loans 212,000,000.00 217,000,000.00
Loan from Central Bank
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair
value with variations accounted into
37
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
current income account
Derivative financial liabilities
Bill payable 748,561,150.00 760,555,000.00
Account payable 212,596,799.83 75,885,325.83
Advance payment 3,158,220.35 1,401,319.97
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 2,115,621.00 1,654,497.94
Tax payable 19,587,185.21 16,857,642.89
Interest payable
Dividend payable
Other account payable 13,335,306.79 16,874,326.53
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liability due in 1 year 11,100,000.00 75,000,000.00
Other current liability
Total of current liability 1,222,454,283.18 1,165,228,113.16
Non-current liabilities：
Long-term loan 77,890,000.00 128,490,000.00
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable
Long-term payable employees’s
remuneration
Special payable
Expected liabilities
Deferred income
Deferred income tax liability
Other non-current liabilities
Total non-current liabilities 77,890,000.00 128,490,000.00
Total of liability 1,300,344,283.18 1,293,718,113.16
38
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Owners’ equity
Share capital 119,375,000.00 119,375,000.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 958,575,094.29 958,575,094.29
Less：Shares in stock
Other comprehensive income
Special reserves
Surplus reserves 125,686,000.00 125,686,000.00
Common risk provision
Undistributed profit -939,017,163.36 -947,520,008.78
Total of owner’s equity belong to the
264,618,930.93 256,116,085.51
parent company
Minority shareholders’ equity 1,058,978.86 781,632.77
Total of owners’ equity 265,677,909.79 256,897,718.28
Total of liabilities and owners’ equity 1,566,022,192.97 1,550,615,831.44
Legal Representative:Li Huaguang
Person in charge of accounting：Xue Gangyi
Accounting Dept Leader: Niu Yanli
2. Balance sheet of Parent Company
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 150,250,092.25 47,345,832.30
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Bill receivable 2,000,000.00
Account receivable 514,369.84 527,570.36
Prepayments 12,333,124.40
39
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Interest receivable
Dividend receivable
Other account receivable 181,666,227.02 253,605,619.11
Inventories
Assets held for sales
Non-current asset due in 1 year
Other current asset
Total of current assets 344,763,813.51 303,479,021.77
Non-current assets：
Disposable financial asset
Expired investment in possess
Long-term receivable
Long term share equity investment 249,357,752.83 251,541,316.13
Property investment
Fixed assets 177,408,105.74 183,278,272.00
Construction in progress
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 16,052,742.91 16,261,765.57
R & D petrol
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset
Other non-current asset
Total of non-current assets 442,818,601.48 451,081,353.70
Total of assets 787,582,414.99 754,560,375.47
Current liabilities
Short-term loans 25,000,000.00
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Bill payable 142,850,000.00 152,850,000.00
40
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Account payable 154,912,614.07 42,646,214.18
Advance payment 688,915.52 220,124.53
Employees’ wage payable 163,519.58 58,886.32
Tax payable 17,975,799.76 15,268,307.65
Interest payable
Dividend payable
Other account payable 273,796,845.53 216,034,017.49
Liabilities held for sales
Non-current liability due in 1 year 67,000,000.00
Other current liability
Total of current liability 590,387,694.46 519,077,550.17
Non-current liabilities：
Long-term loan 47,000,000.00
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable
Employees’ wage payable
Special payable
Expected liabilities
Deferred income
Deferred income tax liability
Other non-current liabilities
Total of Non-current liabilities 47,000,000.00
Total of liability 590,387,694.46 566,077,550.17
Owners’ equity
Share capital 119,375,000.00 119,375,000.00
Other equity instrument
Including：preferred stock
Sustainable debt
Capital reserves 958,575,094.29 958,575,094.29
Less：Shares in stock
Other comprehensive income
Special reserves
41
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Surplus reserves 125,686,000.00 125,686,000.00
Undistributed profit -1,006,441,373.76 -1,015,153,268.99
Total of owners’ equity 197,194,720.53 188,482,825.30
Total of liabilities and owners’ equity 787,582,414.99 754,560,375.47
3.Consolidated Income Statement
In RMB
Items Report period Same period of the previous year
I. Income from the key business 468,177,291.88 719,655,702.47
Incl：Business income 468,177,291.88 719,655,702.47
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 460,454,082.01 801,675,733.97
Incl：Business cost 394,452,147.33 636,112,118.81
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 1,499,484.01 1,737,032.68
Sales expense 12,291,404.24 40,324,769.84
Administrative expense 36,444,955.02 71,548,604.11
Financial expenses 16,021,092.40 51,928,828.76
Asset impairment loss -255,000.99 24,379.77
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 1,216,436.70 11,722,758.01
Incl: investment gains from affiliates 1,216,436.70 11,722,758.01
Gains from currency exchange（“-”for
loss）
III. Operational profit（“-”for loss） 8,939,646.57 -70,297,273.49
42
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Add ：Non-operational income 459,509.47 1,242,323.98
Including：Income from disposal of
non-current assets
Less：Non business expenses 318,470.87 368,465.56
Incl：Loss from disposal of non-current
18,231.69
assets
IV.Total profit(“-”for loss) 9,080,685.17 -69,423,415.07
Less：Income tax expenses 300,493.66 1,335,610.09
V. Net profit 8,780,191.51 -70,759,025.16
Net profit attributable to the owners of
8,502,845.42 -70,888,688.67
parent company
Minority shareholders’ equity 277,346.09 129,663.51
VI. Other comprehensive income
Net of profit of other comprehensive inco
me attributable to owners of the parent co
mpany.
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pla
ns of changes in net debt or net assets
2.Other comprehensive income under the
equity method investee can not be reclass
ified into profit or loss.
(II)Other comprehensive income that will
be reclassified into profit or loss.
1.Other comprehensive income under the
equity method investee can be reclassifie
d into profit or loss.
2.Gains and losses from changes in fair v
alue available for sale financial assets
3.Held-to-maturity investments reclassifi
ed to gains and losses of available for sal
e financial assets
4.The effective portion of cash flow hedg
es and losses
5.Translation differences in currency fina
ncial statements
43
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
6.Other
7.Net of profit of other comprehensive i
ncome attributable to Minority
shareholders’ equity
VII. Total comprehensive income 8,780,191.51 -70,759,025.16
Total comprehensive income attributable
8,502,845.42 -70,888,688.67
to the owner of the parent company
Total comprehensive income attributable
277,346.09 129,663.51
minority shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.0712 -0.5938
(II)Diluted earnings per share 0.0712 -0.5938
The current business combination under common control, the net profits of the combined party before achieved ne
t profit of RMB 0, last period the combined party realized RMB 0.
Legal Representative:Li Huaguang
Person in charge of accounting：Xue Gangyi
Accounting Dept Leader: Niu Yanli
4. Income statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I. Income from the key business 336,824,318.43 554,797,443.95
Incl：Business cost 313,550,271.27 543,691,486.17
Business tax and surcharge 241,560.44 139,356.48
Sales expense 5,678,433.04
Administrative expense 10,596,697.69 49,664,641.37
Financial expenses 4,913,633.54 27,051,136.19
Asset impairment loss 6,659.35
Add：Gains from change of fir value （“-”for
loss）
Investment gain（“-”for loss） 1,216,436.70 11,722,758.01
Incl: investment gains from affiliates 1,216,436.70 11,722,758.01
II. Operational profit（“-”for loss） 8,738,592.19 -59,711,510.64
Add ：Non-operational income 144,259.69
44
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Including：Income from disposal of non-current
assets
Less：Non business expenses 26,696.96 289,962.60
Incl：Loss from disposal of non-current assets
III.Total profit(“-”for loss) 8,711,895.23 -59,857,213.55
Less：Income tax expenses
IV. Net profit（“-”for net loss） 8,711,895.23 -59,857,213.55
V.Net of profit of other comprehensive income
（I）Other comprehensive income items that will
not be reclassified into gains/losses in the
subsequent accounting period
1.Re-measurement of defined benefit plans of ch
anges in net debt or net assets
2.Other comprehensive income under the equity
method investee can not be reclassified into profi
t or loss.
(II)Other comprehensive income that will be recl
assified into profit or loss.
1.Other comprehensive income under the equity
method investee can be reclassified into profit or
loss.
2.Gains and losses from changes in fair value av
ailable for sale financial assets
3.Held-to-maturity investments reclassified to ga
ins and losses of available for sale financial asset
s
4.The effective portion of cash flow hedges and l
osses
5.Translation differences in currency financial st
atements
6.Other
VI. Total comprehensive income 8,711,895.23 -59,857,213.55
VII. Earnings per share：
（I）Basic earnings per share 0.0730 -0.5014
(II)Diluted earnings per share 0.0730 -0.5014
45
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
5. Consolidated Cash flow statement
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or
238,598,416.24 470,857,947.16
rending of services
Net increase of customer deposits
and capital kept for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from
other financial bodies
Cash received against original insurance
contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Net increase of amount from disposal
financial assets that measured by fair
value and with variation reckoned into
current gains/losses
Net increase of inter-bank fund
received
Net increase of trade financial asset
disposal
Net increase of repurchasing business
Tax returned 3,714,512.19 3,779,424.68
Other cash received from business
4,572,178.51 4,586,659.28
operation
Sub-total of cash inflow 246,885,106.94 479,224,031.12
Cash paid for purchasing of
138,732,260.06 318,734,463.96
merchandise and services
Net increase of client trade and advance
Net increase of savings n central bank
and brother company
Cash paid for original contract claim
Cash paid for interest, processing fee
46
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 27,812,463.74 81,688,184.30
Taxes paid 9,112,317.40 18,992,536.22
Other cash paid for business activities 9,288,327.95 27,347,103.58
Sub-total of cash outflow from business
184,945,369.15 446,762,288.06
activities
Cash flow generated by business
61,939,737.79 32,461,743.06
operation, net
II.Cash flow generated by investing
Cash received from investment
retrieving
Cash received as investment gains 3,400,000.00 34,500,000.00
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 104,466.45
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received
Sub-total of cash inflow due to
3,400,000.00 34,604,466.45
investment activities
Cash paid for construction of
fixed assets, intangible assets 12,945,403.02 13,000,703.79
and other 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
12,945,403.02 13,000,703.79
investment activities
Net cash flow generated by investment -9,545,403.02 21,603,762.66
III.Cash flow generated by financing
Cash received as investment
Incl: Cash received as investment from
minor shareholders
47
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Cash received as loans 222,500,000.00 391,800,000.00
Cash received from bond placing
Other financing –related ash received 1,338,108,850.64 778,707,557.01
Sub-total of cash inflow from financing
1,560,608,850.64 1,170,507,557.01
activities
Cash to repay debts 412,800,000.00 648,214,611.10
Cash paid as dividend, profit, or
17,899,685.36 55,844,249.46
interests
Incl: Dividend and profit paid by
subsidiaries to minor shareholders
Other cash paid for financing activities 1,089,473,618.24 522,514,703.95
Sub-total of cash outflow due to
1,520,173,303.60 1,226,573,564.51
financing activities
Net cash flow generated by financing 40,435,547.04 -56,066,007.50
IV. Influence of exchange rate
300,098.05
alternation on cash and cash equivalents
V.Net increase of cash and cash
92,829,881.81 -1,700,403.73
equivalents
Add: balance of cash and cash
23,643,515.81 35,555,585.06
equivalents at the beginning of term
VI ..Balance of cash and cash
116,473,397.62 33,855,181.33
equivalents at the end of term
6. Cash flow statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or
140,584,159.57 221,390,185.62
rending of services
Tax returned 1,694,201.68
Other cash received from business
162,250.98 1,471,385.63
operation
Sub-total of cash inflow 140,746,410.55 224,555,772.93
Cash paid for purchasing of
81,695,480.33 287,039,188.03
merchandise and services
Cash paid to staffs or paid for staffs 13,993,730.48 67,135,296.30
Taxes paid 4,961,700.84 3,887,287.07
48
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Other cash paid for business activities 984,106.09 10,082,216.82
Sub-total of cash outflow from business
101,635,017.74 368,143,988.22
activities
Cash flow generated by business
39,111,392.81 -143,588,215.29
operation, net
II.Cash flow generated by investing
Cash received from investment
retrieving
Cash received as investment gains 3,400,000.00 34,500,000.00
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 98,316.45
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received
Sub-total of cash inflow due to
3,400,000.00 34,598,316.45
investment activities
Cash paid for construction of
fixed assets, intangible assets 450,000.00 2,434,576.27
and other 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
450,000.00 2,434,576.27
investment activities
Net cash flow generated by investment 2,950,000.00 32,163,740.18
III.Cash flow generated by financing
Cash received as investment
Cash received as loans 202,500,000.00 292,800,000.00
Cash received from bond placing
Other financing –related ash received 1,538,413,233.34 1,143,615,681.08
Sub-total of cash inflow from financing
1,740,913,233.34 1,436,415,681.08
activities
Cash to repay debts 379,300,000.00 429,500,000.00
Cash paid as dividend, profit, or 5,375,548.25 31,351,610.93
49
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
interests
Other cash paid for financing activities 1,295,397,905.00 881,092,856.76
Sub-total of cash outflow due to
1,680,073,453.25 1,341,944,467.69
financing activities
Net cash flow generated by financing 60,839,780.09 94,471,213.39
IV. Influence of exchange rate
alternation on cash and cash equivalents
V.Net increase of cash and cash
102,901,172.90 -16,953,261.72
equivalents
Add: balance of cash and cash
4,486,524.01 22,292,965.15
equivalents at the beginning of term
VI ..Balance of cash and cash
107,387,696.91 5,339,703.43
equivalents at the end of term
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity
Minor
instrusment Total of
Items Other Commo
Share Less: Speciali Attribut shareho
Capital Compre Surplus n risk owners’
Capita prefer Shares zed able lders’
Sustai reserves hensive reserves provisio equity
l red Other in stock reserve profit equity
nable Income n
stock
debt
119,37 -947,52
I.Balance at the 958,575 125,686 781,632 256,897
5,000. 0,008.7
end of last year ,094.29 ,000.00 .77 ,718.28
00 8
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the 119,37 958,575 125,686 -947,52 781,632 256,897
beginning of 5,000. ,094.29 ,000.00 0,008.7 .77 ,718.28
50
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
current year 00 8
III.Changed in the 8,502,8 277,346 8,780,1
current year 45.42 .09 91.51
（1）Total
8,502,8 277,346 8,780,1
comprehensive
45.42 .09 91.51
income
（II）Investment
or decreasing of
capital by owners
1．Ordinary Share
s invested by hare
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Amount of
shares paid and
accounted as
owners’ equity
4．Other
（III）Profit
allotment
1.Providing of
surplus reserves
2.Providing of
common risk
provisions
3．Allotment to the
owners (or
shareholders)
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
51
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
shares)
3．Making up
losses by surplus
reserves.
4. Other
(V). Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
119,37 -939,01
IV. Balance at the 958,575 125,686 1,058,9 265,677
5,000. 7,163.3
end of this term ,094.29 ,000.00 78.86 ,909.79
00 6
Amount in last year
In RMB
Amount in last year
Owner’s equity Attributable to the Parent Company
Other Equity
Minor
instrusment Total of
Items Other Commo
Less: Speciali Attribut shareho
share Capital Compre Surplus n risk owners’
prefer Shares zed able lders’
Capita Sustai reserves hensive reserves provisio equity
red Other in stock reserve profit equity
nable Income n
stock
debt
119,37 -1,188,2
I.Balance at the 960,515 125,686 586,313 17,907,
5,000. 55,120.
end of last year ,317.59 ,000.00 .91 510.52
00 98
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of entities
under common
control
Other
II.Balance at the 119,37 960,515 125,686 -1,188,2 586,313 17,907,
beginning of 5,000. ,317.59 ,000.00 55,120. .91 510.52
52
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
current year 00 98
III.Changed in the -70,888, 129,663 -70,759,
current year 688.67 .51 025.16
（1）Total
-70,888, 129,663 -70,759,
comprehensive
688.67 .51 025.16
income
（II）Investment
or decreasing of
capital by owners
1．Ordinary Share
s invested by hare
holders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
owners (or
shareholders)
4．Other
(IV) 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. Other
(VI )Special
reserves
1. Provided this
year
2．Used this term
（VII）Other
53
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
IV. Balance at the
end of this term
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
119,37 -1,259,1
IV. Balance at the 960,515 125,686 715,977 -52,851,
5,000. 43,809.
end of this term ,317.59 ,000.00 .42 514.64
00 65
8. Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Amount in this period
Other Equity instrusment
Other
Less: Total of
Items Share Capital Compreh Specialize Surplus Attribut
preferre Sustain Shares in able owners’
cpaital Other reserves ensive d reserve reserves profit
d stock able stock equity
Income
debt
-1,015,1
119,375, 958,575,0 125,686,0 188,482,8
53,268.
I.Balance at the 000.00 94.29 00.00 25.30
end of last year 99
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the -1,015,1
119,375, 958,575,0 125,686,0 188,482,8
beginning of 53,268.
000.00 94.29 00.00 25.30
current year 99
III.Changed in the 8,711,8 8,711,895
current year 95.23 .23
（1）Total
8,711,8 8,711,895
comprehensive
95.23 .23
income
54
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
（II）Investment or
decreasing of
capital by owners
1．Ordinary Share
s invested by hareh
olders
2 ． Holders of oth
er equity instrume
nts invested capital
3．Allotment to the
owners (or
shareholders)
4．Other
（III）Profit
allotment
1.Providing of
surplus reserves
2．Allotment to the
owners (or
shareholders)
3．Other
(IV)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. Other
(V) Special
reserves
1. Provided this
year
55
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
2．Used this term
（VI）Other
-1,006,4
IV. Balance at the 119,375, 958,575,0 125,686,0 197,194,7
41,373.
end of this term 000.00 94.29 00.00 20.53
76
Amount in last year
In RMB
Amount in last year
Other Equity instrusment
Other
Less: Total of
Items Share Capital Compreh Specialize Surplus Attribut
preferre Sustain Shares in able owners’
Capital Other reserves ensive d reserve reserves profit
d stock able stock equity
Income
debt
-1,016,9
119,375, 958,575,0 125,686,0 186,662,7
73,343.
I.Balance at the 000.00 94.29 00.00 51.12
end of last year 17
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the -1,016,9
119,375, 958,575,0 125,686,0 186,662,7
beginning of 73,343.
000.00 94.29 00.00 51.12
current year 17
III.Changed in the -59,857, -59,857,2
current year 213.55 13.55
（1）Total
-59,857, -59,857,2
comprehensive
213.55 13.55
income
（II）Investment or
decreasing of
capital by owners
1．Ordinary Share
s invested by hareh
olders
2 ． Holders of oth
er equity instrume
56
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
nts invested capital
3．Allotment to the
owners (or
shareholders)
4．Other
（III）Profit
allotment
1.Providing of
surplus reserves
2．Allotment to the
owners (or
shareholders)
3．Other
(IV)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. Other
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
-1,076,8
IV. Balance at the 119,375, 958,575,0 125,686,0 126,805,5
30,556.
end of this term 000.00 94.29 00.00 37.57
72
III.Corporate information
Chongqing Jianshe Motorcycle Co., Ltd. (hereinafter referred to as the "Company", "Company" or "Chongqing
57
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Jianshe Motorcycle ") was jointly set up in July 1995 by the Construction Industry (Group) Co., Ltd. and China
North Industries Shenzhen Corporation. The Business License of the Enterprise Legal Person of the Company: No.
500000400001350.The Company was listed in July 1995 at the Shenzhen Stock Exchange. The Company is
engaged in the manufacturing industry.
As at December 31, 2015, the Company issued 119,375,000 shares in total and had the registered capital of
119,375,000. The registration place: NO.1, Jianshe Road Huaxi Industry Park, Banan District, Chongqing; the
headquarters address: Banan District, Chongqing Municipality. Legal representative: Li Huaguang. The main
business activities: research and development, processing, manufacturing and related technical services of
Motorcycles, auto parts, accessories, machinery products, design , manufacturing and related technical services of
tooling (except for those subject to national special provisions) ; R & D, production and sales of motorcycle
engines; research , development and processing of mechanical and electrical products, home appliances,
bicycles, environmental protection product; imports, wholesale, retail, commission agency (except auction) of
similar products of these products. The parent company and the actual controller of the Company is China South
Industries Group Corporation, and the ultimate controller of the Company is the State-owned Assets Supervision
and Administration Commission (SASAC).
The Company which is formerly known as "Shenzhen North Jianshe Motorcycle Co., Ltd." and set up jointly by
Construction Industry (Group ) Co., Ltd. (hereinafter referred to as the "Jianshe Group") and China North
Industries Shenzhen Co., Ltd. was renamed "Chongqing Jianshe Motorcycle Co., Ltd.", according to the
resolution adopted at the extraordinary shareholders' meeting on March 30, 2002, which was registered with the
industrial and commercial administration on March 11, 2003, with the business license for enterprise legal person
of which the registration No. 5000001805583 obtained from Chongqing Industrial and Commercial
Administration.
Jianshe Group and Military Equipment Group signed the "Equity Transfer Agreement" on December 3, 2004 and
the "supplementary agreement on Equity Transfer" on January 22, 2005, for transfer of 339,625,000 shares of
state-owned legal person to Military Equipment Group , as approved by SASAC under the State Council on
March 9, 2005 and by China Securities Regulatory Commission exempting the tender offer obligation of Military
Equipment Group in May 2005.
In September 2005, the Company was changed to foreign-invested joint stock company from the domestic joint
stock company, according to the approval of WZSZ [2005] No. 0628 of the Ministry of Commerce of the People's
Republic of China; the Company went through the alternation formalities with the industrial and commercial
administration and obtained the business license for enterprise legal person of which the registration No. is
500000400001350 in August 2007; the registration place is Chongqing Municipality and the registered capital is
RMB477,500,000.
In April 2007, according to the (2006) SZFMEZ No. 21-4 civil ruling by Shenzhen Intermediate People's Court of
Guangdong Province, 17,875,000 shares of state-owned legal person of the Company, which had been held by
China North Industries Shenzhen Corporation, should be owned by the buyers Yangpu Xinyufeng investment Co.,
Ltd. Feng Yonghui and Gu Zuocheng, of which 7 million shares should be held by Yangpu Xinyufeng investment
Co., Ltd. 2 million shares by Feng Yonghui and 8,875,000 shares by Gu Zuocheng.
In 2012, Yangpu Xinyufeng Investment Co., Ltd. transferred 7 million shares of the Company it had then to Anhui
Hengsheng Economic Development Group Co., Ltd.
In September 2013, according to the resolutions of the shareholders' meeting and the revised Articles of
Association and under the Reply of Foreign Trade and Economic Commission of Chongqing Municipality on
Approval for the Reduction of Registered Capital of Chongqing Jianshen Motorcycle Co., Ltd. (YWJMH [2013]
No. 219) and Reply of Military Equipment Group. on Issues Concerning the Stock Shrinkage by Chongqing
Jianshen Motorcycle Co., Ltd. (BZZ[2013] No. 60), the Company carried out the stock shrinkage at a ratio of 4: 1
to reduce the total share capital to 119,375,000 shares from 477,500,000 shares and to reduce the registered capital
to RMB119,375,000 from RMB477,500,000, which alternation was registered with the industrial and commercial
administration, with the business license for enterprise legal person of which the registration No. is
500000400001350 obtained from the Industrial and Commercial Administration of Chongqing Municipality.
58
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
In July 2015, the company started to transfer the motorcycle business to the original controlling shareholder
CSGS, restructuring plan is as follows:
1.In August 26, 2015, approved by the 7th meeting of 7th board of dirctors, the company involved in motorcycle
business assets and liabilities as of June 30, 2015 net assessment set up wholly owned subsidiary of Chongqing
Jianshe mechanical and electrical Co., Ltd. (hereinafter referred to as the "Jianshe mechanical and electrical), as a
set of assets operation main body;
2. After establishing the Jianshe mechanical and electrical, Chongqin Jianshe motorcycle based onAugust 31,
2015, revaluated 100% equity of Chongqing Jianshe mechanical and electrical (refered as Jianshe mechanic and
electrical), and transfer to Military Equipment Group, to complete the set out of the motorcycle business;
3. Military Equipment Group will hold 71.13% equity of company, corresponding to 84,906,250 state-owned legal
person shares free transfer to Chongqin Jianshe machinical and electrical Co., Ltd. .
After the restructuring, the shareholder changes to Chongfqing Jianshe mechanical and electrical Co., Ltd.
Military Equipment Group is still the actual controllers which has not be changed, and the ultimate controller of
the Company is The State-owned Assets Supervision and Administration Commission of the State Council.
After the reconstruction, the main business of company changes, gradually withdraw from the motorcycle and
accessories business, and shift to automotive air conditioning compressor and other auto accessories business;
Company mainly buy assets: chongqing construction motor spin off the motorcycle business related major assets,
liabilities, personnel, technology, etc.; wholly owned subsidiary of chongqing North Jianshe import and export
trade Co., Ltd., Chongqing Jianshe motorcycle sales Co., Ltd., Chongqing Jianshe distribution Co., Ltd. 100%
stake in; The joint venture company of chongqing construction, Yamaha motorcycle Co., Ltd of 50% stake,
Zhuzhou Jianshe Yamaha motorcycle Co., Ltd. 50% stake in; Associated companies in chongqing construction of
tong sheng industrial Co., Ltd. 30% stake, Chongqing south vehicle technology Co., Ltd. 23.5294% stake.
The main reserve asset: subsidiary of Chongqing Jianshe vehicle air conditioner Co., Ltd. 100% stake in the
motorcycle Co., Ltd. 51% stake in Shanghai Jiaanshe; The joint venture company chongqing hirayama Thai kay
carburetor Co., Ltd. 49% stake.
As of December 31, 2015, the significant sale of assets has been authorized and approvaled. the mainly underlying
assets involved the delivery has been completed. The company needs to continue to cooperate to complete finance
transfer of follow-up matters.
On December 10, 2015, the company controlling shareholder., Military Equipment Group and Chongqing Jianshe
mechanical and electrical Co., Ltd..(hereinafter referred to "Jianshe mechanical and electrical") signed the
shares transfer agreement and free of charge, Military Equipment Group transfer its 71.13% of state-owned legal
person share, which corresponding 84,906,250 shares for Jianshe mechanical and electrical for free. The
transction was approved by the state council, (PRA[2015] No.1324) on December 25, 2015. On January 26,
2016, the China securities regulatory commission < approval exemption from Chongqing Jianshe mechanical and
electrical Co., Ltd offer the acquisition for Chongqing Jianshe motorcycle Co., Ltd. >(regulatory permission [2016]
no.160.), to Approval the exemption the obligation of making a takeover bid for construction mechanical and
electrical with the state-owned assets administrative transfer shares held by the company
On March 4, 2016, the company received the securities transfer registration confirmation, which issued by the
China securities depository and clearing Co., Ltd. Shenzhen branch. The procedures have been completed on
March 2, 2016 in China securities registration and clearing Co., Ltd. Shenzhen branch.
The disclosure of the financial statements was approved by the Board of Directors on August 29,2016.
As at June 30, 2016, the subsidiaries included in the scope of consolidated financial statements of the Company
are presented as set out below:
Name of the subsidiary
Chongqing Jianshe Automobile A/C Co., Ltd.
59
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Shanghai Jianshe Motorcycle Co., Ltd.
See "Note 8 Change in the scope of consolidation" and "Note 9 Interests in other entities" for details of scope
consolidated financial statements and the change therein.
IV.Basis of preparation for financial statements
1.Basis of preparation
The Company prepares the financial statements on the basis of going concern, according to actual transactions and
events, the subsequently issued Accounting Standards for Business Enterprises – Application Guidelines, and the
Accounting Standards for Business Enterprises – Interpretations and other relevant provisions (hereinafter
collectively referred to as “Accounting Standards for Business Enterprises”), as well as Compilation Rules for
Information Disclosure by Companies Offering Securities to the Public No. 15 - General Provisions on Financial
Reports issued by China Securities Regulatory Commission.
2.Going concern
The Company was on a going concern basis in 12 months as of the end of the current reporting period and was not
affected by any material event having impact on the going concern.
V. Principal accounting policies and accounting estimates
Specific accounting policies and accounting estimates:
The disclosure as set out below cover the specific accounting policies and accounting estimates developed by the
Company in accordance with the actual production and management features. See "Note 3.11 Provision for bad
debts of accounts receivables, "Note 3.12 Inventories", "Note 3.16 Fixed assets", "Note 3.19 Intangible assets"
and "3.25 Revenues" for details.
1.Statements on Compliance with Accounting Standards for Business Enterprises
The financial statements prepared by the Company meet the requirements of the Accounting Standards for
Business Enterprises and truly and completely reflect the Company’s financial position, operating results and cash
flows, etc. for the reporting period.
2.Accounting period
The accounting year is from January 1 to December 31.
3.Operating cycle
The Company has an operating cycle of 12 months.
4.Functional currency
The functional currency is Renminbi.
5.Accounting treatments of the combination of enterprises under common control and the combination of
enterprises not under the common control
Business combination under common control: The assets and liabilities acquired by the Company in a business
combination are stated at the book value of the assets and liabilities (including the goodwill arising from the
acquisition of the acquiree by the ultimate controller) of the acquiree on the combination date. The stock premium
in the capital reserve is adjusted according to the difference between the book value of net assets acquired through
combination and the book value of consideration paid for the combination (or total par value of shares issued). If
the stock premium in the capital reserves is insufficient to cover the difference, the remaining amount shall be
charged against retained earnings.
Combination of enterprises not under the common control: The assets paid and liabilities incurred or assumed by
60
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
the Company on the acquisition date for the business combination are measured at their fair values, and the
difference between the fair value and book value is charged to the current profit or loss. The Company shall
recognize the difference of the combination costs in excess of the fair value of the identifiable net assets acquired
from the acquiree as goodwill. The difference of the combination costs in short of the fair value of the identifiable
net assets acquired from the acquiree is charged to the current profit and loss after review.
The intermediary service charges incurred for audit, legal service, consulting services and other direct relevant
expenses are charged to the current profit and loss; the transaction costs incurred for issuance of equity securities
for business combination offest the equities.
6.Preparation of consolidated financial statements
1.Scope of consolidation
The scope of consolidated financial statements is determined on the basis of control, and all subsidiaries
(including the divisable portion of the investee under the control of the Company) are included in the consolidated
financial statements.
2.Combination procedures
The Company prepares the consolidated financial statements on the basis of the financial statements of itself and
its subsidiaries, according to other relevant information. When preparing the consolidated financial statements, the
Company regards the whole group as an accounting entity to reflect the overall financial position, operating
results and cash flow of the Group, in accordance with requirements of relevant accounting standards for the
recognition, measurement and presentation, on the basis of the uniform accounting policies.
The accounting polidies and accounting period adopted by the subsidiaries included in the scope of consolidated
financial statements are in line with those adopted by the Company. In case any disrepancy between the
accounting policies and accounting period adopted by the subsidiary and those adopted by the Company, the
adjustment will be made in light of the accounting policies and accounting period adopted by the Company, when
the consolidated financial statements are prepared.The financial statements of the subsidiary acquired through the
combination of enterprises not under common control are adjusted on the basis of the fair value of the identifiable
net assts on the acquisition date. The financial assets of the subsidiary acquired through the combination of
enterprises under the common control are adjusted on the basis of the book value of the assets and liabilities
(including the goodwill arising from the acquisition of such subsidiary by the ultimate controller) as stated in the
financial statements of the ultimate controller.
The owners' equities, current net profit or loss and current comprehensive income attributable to minority
shareholders are separately presented under the owners' equities item of the consolidated balance sheet, net profit
item and total comprehensive income item of the consolidated income statement, respectively. Where the current
losses attributable to minority shareholders of the subsidiary exceed the owners' equities attributable to the same at
the period beginning, the difference between them will offset the minority equity.
(1) Increase of the subsidiary or business
In case of increase of subsidiary or business as a result of combination of enterprises under common control
during the reporting period, the beginning amount stated in the consolidated balance sheet will be adjusted; the
income, expense and profit generated from the subsidiary or business from the beginning of the period of
combination to the end of reporting period will be included in the consolidated statement of cash flows, with the
adjustment made to the relevant items of the comparative statement, as if the reporting entity after the
combination still existed from the beginning of control of the ultimate controller.
Where the additional investment or other reason leads to the control over the investee under the common control,
all entities considered to take a part in the combination will be adjusted to the extent that they are in the current
status as they come to be under the control of the ultimate controller. The retained earnings or the current profit or
loss at the period beginning during the statement period are offset by equity investment held before the control
over the mergee is obtained, and the equity investments held before the control over the acquiree is obtained, and
the related profit or loss, other comprehensive income and change in other net assets that are recognized during
the period which starts on the later of the date when the original equities are obtained and the date when both
61
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
merger and mergee are under the common control and ends on the combination date, respectively.
In case of increase of subsidiary or business during the reporting period as a result of combination of enterprises
not under the common control, the beginning amount stated in the consolidated balance sheet will not be adjusted;
the income, expense and profit generated from such subsidiary or business from the acquisition date to the end of
reporting period will be included in the consolidated income statement; and the cash flow generated from such
subsidiary or business from the acquisition date to the end of reporting period will be incldued in the consolidated
statement of cash flows.
Where the additional investment or other reason leads to the control over the investee not under the common
control, the equities of the mergee held before the acquisition date will be remeasured at the fair value of such
equities on the acquisition date, and the difference between the fair value and book value thereof will be charged
to the current investment income. Where the equities of the acquiree held before the acquisition date involves the
change in other comprehensive income or in other owners' equities other than the net profit or loss, other
comprehensive income and profit distribution, the change in other comprehensive income or other owners'
equities will be converted into tthe investment income for the period covering the acquisition date, except for the
other comprehensive income arising from the change on remeasurement of the net liabilities or net assets under
the defined benefit plan by the investee.
(2) Disposal of the subsidiary or business
a. General method of treatment
In case of treatment of subsidiary or business during the reporting, the the income, expense and profit generated
from such subsidiary or business from the period beginning to the disposal date will be included in the
consolidated income statement; and the cash flow generated from such subsidiary or business from the period
beginning to the disposal date will be incldued in the consolidated statement of cash flows.
Where the control over the investee is lost due to the disposal of some of equity investments or other reasons, the
remaining equity investment after disposal will be re-measured at fair value on the day when the control is
lost.The sum of the consideration received for disposal of equities and the fair value of the remaining equities, less
the difference between the net assets of the former subsidiary of which the continuous calculation starts from the
acquisition date or combination date and the goodwill, should be charged to the investment income for the period
during which the control is lost.Changes in other comprehensive income related to the equity investment in the
former subsidiary or in owners' equities other than the net profit or loss, other comprehensive income and profit
distribution are converted into the current investment income upon the loss of control, except for the other
comprehensive income arising from the change on remeasurement of the net liabilities or net assets under the
defined benefit plan by the investee.
b. Disposal of subsidiary by stages
In case of disposal of investment in the equity of subsidiary by stages through a number of transactions, such
transactions will be treated as a package deal, provided that the terms and conditions on and the economic effect
of the equity investment in the subsidiary meet one of more of the following conditions:
ⅰ. These transactions are entered into considering their effects are considered;
ⅱ. These transactions can lead to a complete business result as a whole;
ⅲ. The occurrence of a transaction depends on the occurrence of at least one of others; and
ⅳ. A single transaction is deemed uneconomical, but the economical efficiency can be seen when it is put
together with other transactions;
Where the transctions involved in the disposal of the equity investment in the subsidiary are package deals, the
Company will treat each transaction as the one involved in the disposal of the subsidiary with loss of control;
however, the difference between the consideration for each disposal before the loss of control and the net assets of
such subsidiary corresponding to the disposal of investment will be recognized as other comprehensive income in
the consolidated financial statements, and will be transferred to the loss or profit for the period during which the
control is lost, upon the loss of control.
Where the transctions involved in the disposal of the equity investment in the subsidiary are not package deals,
62
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
these transactions will be treated according to the policies on the disposal of part of the equity investments in the
subsidiary without loss of control, before the loss of control; or treated in the general treatment method of disposa
of subsidiary, upon the loss of control.
(3) Acquisition of minority equity of subsidiary
The stock premium under the capital reserve in the consolidated balance sheet is adjusted at the difference
between the long-term equity investment newly acquired as a result of acquisition of minority equity and the net
assets of the subsidiary attributable to the Company, of which the continuous calculation starts from the
acquisition date (or combination date); and the retained earnings will be adjusted if the stock premium under the
capital reserve is insufficient as to the offset.
(4) Disposal of part of the equity investments in the subsidiary without loss of control
The stock premium under the capital reserve in the consolidated balance sheet is adjusted at the difference
between the consideration received for the disposal of part of the long-term equity investments in the subsidiary
without loss of control and the net assets of the subsidiary attributable to the Company, of which the continuous
calculation starts from the acquisition date (or combination date); and the retained earnings will be adjusted if the
stock premium under the capital reserve is insufficient as to the offset.
7.Classification and accounting treatment of joint venture arrangement
Joint venture arrangement is classified into joint operation and joint ventures.
In terms of the joint operation, the Company is the joint venturer under the joint venture arrangement and is
entitled to the assets and bear the liabilities under such arrangement.
The Company recognizes the following items in relation with the share of interest in the joint operation, and
conducts the accounting treatment of the the said items according to the provisions of Accounting Standards for
Enterprises:
(1) Recognition of the assets held separately by the Company and of the assets held by the Company jointly
others in proportion;
(2) Recognition of the liabilities separately borne by the Company and of the liabilities borne by the Company
jointly others in proportion;
(3) Recognition of proportioned income generated attributable to the Company as one of the co-operators;
(4) Recognition of income generated fattributible to the Company as one of the co-sellers;
(5) Recognition of the expenses incurred separately and the proportioned expenses incurred by the Company as
one of the co-opeartors.
See "Note 3.14 Long-term equity investments" for detailed of accounting policies on the investment
of the Company in joint ventures.
8.Recognition criteria of cash and cash equivalents
For the purpose of preparing the statement of cash flows, the term “cash” refers to cash on hand and deposits of
that are readily available for payment. And the term “cash equivalents” refers to short-term (maturing within three
months from acquisition) and highly liquid investments that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of change in value.
9.Foreign currency business and foreign currency translation
1.Foreign currency business:
Transactions denominated in foreign currency are translated into RMB for accounting purpose at the spot
63
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
exchange rate on the day when the transaction occurs.
The balances of foreign currency monetary items are converted at the spot exchange rate prevailing on the balance
sheet date. The exchange differences arising from the conversion, other than those arising from specific-purpose
borrowings in foreign currencies related to acquisition and construction of assets eligible for capitalization, which
shall be measured in accordance with principle of capitalization of the borrowing costs, shall be charged to the
current profit or loss.
2.Translation of financial statement denominated in foreign currency
The asset and liability items in the balance sheet shall be converted at the spot exchange rates prevailing on the
balance sheet date. Except retained profit, the owners’ equity items shall be converted at the spot exchange rates
on the occurrence date.The income and expense items in the income statement shall be converted at the spot
exchange rates which are determined by systematic and reasonable methods and similar to the spot exchange rate
on the date of occurrence of transaction.
On disposal of a foreign operation, the difference arising from the converstion of financial statements
denominated in foreign currency and related to such foreign operation should be transferred to the current gain or
loss on disposal, from the owners' equities.
10.Financial instruments
Financial instruments include financial assets, financial liabilities and equity instruments.
1 Classification of financial instruments
Upon the initial recognition, fFinancial assets and liabilities are classified into the following categories according
to the purpose of acquisition: the financial assets or financial liabilities measured at fair value through current
profit and loss, including financial assets or financial liabilities held for trading (and those financial assets or
financial liabilities directly designated under this category), held-to-maturity investments, receivables, financial
assets available for sale and other financial liabilities, etc.
2.Recognition and measurement of financial instruments
(1) Financial assets (financial liabilities) measured at fair value through current profit and loss
Financial assets (financial liabilities) are initially stated at fair values when acquired (deducting cash dividends
that have been declared but not distributed and bond interests that have matured but not been drawn), and relevant
transaction expenses are included in the current profit and loss.
The interests or cash dividends to be received during the holding period are recognized as investment income.
Change in fair values is included in the current profit and loss at the end of the period.
Upon the disposal, the difference between the fair value and initial book-entry value is recognized as investment
income upon disposal; meanwhile, adjustment is made to gains or losses from changes in fair values.
(2) Held-to-maturity investments
Held-to-maturity investments are initially recorded at fair values when acquired (deducting cash dividends that
have been declared but not distributed and bond interests that have matured but not been drawn).
The interest income is calculated and recognized at amortized cost and effective interest rates (or the nominal
interest rate, if there is small difference between the effective interest rate and the nominal interest rate) and is
charged to the investment income. The effective interest rates are determined upon acquisition and remain
unchanged during the expected remaining period, or a shorter period if applicable.
Difference between the proceeds and the book value of the investment is recognized as investment income upon
disposal.
(3) Accounts receivable
For creditor’s rights receivable arising from external selling commodities or providing service by the Company
and other creditor's rights in respect of liability instruments of other enterprises (excluding those quoted in an
active market) held by the Company, including accounts receivable, other receivables, notes receivables,
prepayments, long-term receivables etc., the initial recognition amount shall be the contract price or agreed price
receivable due from purchasing party. The initial amount of the accounts receivable with financing nature are
recognized based on the present value.
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The difference between the amount obtained and the book value of the accounts receivable is included in current
profit and loss upon recovery or disposal.
(4) Available-for-sale financial assets
Available-for-sale financial assets are initially recorded at the sum of fair values (deducting cash dividends that
have been declared but not distributed and bond interests that have matured but not been drawn) and transaction
costs when acquired.
The interests or cash dividends to be received during the holding period are recognized as investment income.
Available-for-sale financial assets are measured at fair value at the end of the period, and changes in fair value are
included in the capital reserves (other capital reserves). those equity instrument investments not quoted in an
active market and whose fair value cannot be reliably measured, and the derivative financial assets linked to and
settled by way of delivery of such equity investments are measured at the cost.
Difference between the proceeds and the book value of the financial assets is recognized as gain or loss on
investment upon disposal; meanwhile, amount of disposal corresponding to the accumulated change in fair value
which is originally and directly included in the owners’ equity shall be transferred out and charged to the current
gains or losses.
(5) Other financial liabilities
Other financial liabilities are initially recognized at the sum of fair value and transaction expenses. The subsequent
measurement is based on amortized costs. They are subsequently measured at amortized cost.
3.Recognition and measurement for transfer of financial assets
If the Company has transferred nearly all of the risks and rewards relating to the ownership of the financial assets
to the transferee, they shall be derecognized. If it retains nearly all of the risks and rewards relating to the
ownership of the financial assets, they shall not be derecognized.
In judging whether the transfer of a financial asset meets the above requirements of derecognizing financial assets,
the principle of substance over form is adopted. The Company divides the transfer of a financial asset into entire
financial asset transfer and partial transfer. As for the entire financial asset transfer which is qualified for
derecognition, the difference between the following two amounts is recognized in the current profit and loss: The
Company divides the transfer of a financial asset into entire financial asset transfer and partial transfer. As for the
entire financial asset transfer which is eligible for derecognition, the difference between the following two
amounts is recognized in the current profit and loss:
i) Book value of the transferred financial assets;
ii) Sum of the price received from the transfer with the cumulative change in the amount of fair value directly
recorded in the original owners’ equity (involving the case when the transferred financial assets are those
available for sale).
As for the partial financial assets transfer which are eligible for derecognition, the whole book value of the
transferred financial assets should be apportioned in accordance with their respective relative fair value between
the derecognized parts and the recognized parts; and the difference between the following two amounts is
recognized in the current profit and loss:
(i) book value of the derecognized parts;
(ii) sum of the consideration received from the derecognized parts with the amount of the derecognized parts
corresponding to the cumulative changes in the amount of fair value directly included in the original owners’
equity (involving the case when the transferred financial assets are those available for sale).
If the transfer of financial assets does not satisfy requirements for derecognition, the financial assets shall
continue to be recognized, and the consideration received will be recognized as financial liabilities.
4.Conditions for derecognition of financial liabilities
Financial liabilities shall be entirely or partially derecognized if the present obligations derived from them are
entirely or partially discharged. Where the Company enters into an agreement with a creditor so as to substitute
the current financial liabilities with new ones, and the contract clauses of which are substantially different from
those of the current ones, it shall recognize the new financial liabilities in place of the current ones.
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If material amendments have been made to all or part of contract terms of current financial liabilities, all or part of
current financial liabilities are derecognized, and the financial liabilities with amended terms are recognized as
new financial liabilities.
Upon entire or partial derecognition of financial liabilities, differences between the carrying amounts of the
derecognized financial liabilities and the consideration paid (including non-monetary assets surrendered or new
financial liabilities assumed) are charged to profit or loss for the current period.
If the Company repurchases part of financial liabilities, it shall distribute, on the repurchase day, the whole book
value of the financial liabilities in accordance with the relatively fair value between the part to be recognized
continuously and the part to be derecognized. The balance between the book value distributed to the part which
has been derecognized and the consideration paid to it (including non-cash assets which have been transferred out
or the new financial liabilities it assumed), shall be included in current profit and loss.
5.Recognition of fair values of financial assets and financial liabilities
The fair value of the financial instrument with an active market is determined based on the quotation in the active
market. The fair value of the financial instrument without an active market is determined using valuation
techniques. In terms of the estimation, the estimation technology which is applicable in the current circumstance
and supported by enough available data and other information is adopted and the input value which is similar to
the features of assets and liabilities and taken into account of by the market participants in the transaction of
relevant assets or liabilities are selected by the Company, which give priority in use of the relevant observable
value. The unobservable value is used only when the relevant observable value cannot be obtained or is
impracticable.
6.Testing and accounting treatment of financial assets (excluding accounts receivable)
Except for the financial assets measured at fair values through current profit and loss, the book value of financial
assets on the balance sheet date should be checked. If there is objective evidence that a financial asset is impaired,
provision for impairment shall be made.
(1) Provision for impairment of available-for-sale financial assets:
If the fair values of available-for-sale financial assets have significantly declined at the period end, or it is
expected that the trend of decreases in values is non-temporary after consideration of all the relevant factors,
impairment shall be recognized, and the accmulated loss on decreases in fair values previously charged directly to
capital reserves are reversed and recognized as impairment loss.
For available-for-sale debt instruments whose impairment losses have been recognized, if their fair values rise in
the subsequent accounting period and such rise is objectively related to the matters occurring after the recognition
of impairment loss, the previously recognized impairment loss shall be reversed and recorded into the current
profit and loss.
Impairment losses on available-for-sale equity instruments shall not be reversed through profit or loss.
(2) Provision for impairment of held-to- maturity investments:
Measurement of provisions for impairment loss on held-to-maturity investments is similar to that applicable to
provisions for impairment loss on receivables.
11.Account receivable
(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.
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(2) Accounts receivable with provision for bad debts accrued by credit risk features portfolio
Name Basis of bad debt provision
Age analysis method
In Group ,Accounts on age basis in the portfolio：
√ Applicable □ Not applicable
Proportion of provision for accounts Provision for bad debt of other
Aging
receivable (%) receivables ( % )
1-6 months（Including 6 months） 0.00% 0.00%
6-12 months 5.00% 5.00%
1－2 years 10.00% 10.00%
2－3 years 30.00% 30.00%
3－4 years 50.00% 50.00%
4－5 years 80.00% 80.00%
Over 5 years 100.00% 100.00%
Receivable accounts on which had debt provisions are provided on percentage analyze basis in a portfolio
□Applicable √Not applicable
Receivable accounts on which had debt provisions are provided by other ways in the portfolio
□Applicable √Not applicable
(3)Account receivable with non-material specific amount but specific bad debt preparation
Reasons for individual provision for bad debts: If there is any clear evidence indicating that the
receivables cannot or are unlikely to be recovered, for example, the bankruptcy, insolvency, insufficient
Reasons of Withdrawing
cash flow of the debtor, or the insolvency in a short time due to the production halt resulting from the
Individual Bad Debt
severe natural disaster, or the accounts receivable may be exposed to risk as indicated by other
Provision
evidence, the individual provision for bad debt will be made.
Method of provision for bad debt: The provision for bad debt is individually recognized at the
Withdrawing Method of difference between the book value and the present value of estimated future cash flow. Method of
Bad Debt Provision provision for bad debt: The provision for bad debt is individually recognized at the difference between
the book value and the present value of estimated future cash flow.
12.Inventories
1.Classification of inventories
Inventories are classified into: raw materials, revolving materials, consigned processing materials, low-cost
consumables, packaging materials, stock commodities, goods in progress, semi-finished goods, finished goods,
etc.
2.Valuation of dispatched inventories
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The inventories dispatched are measured by weighted average method.
3.Basis for determination of net realizable value of different categories of inventories
Net realizable values of merchandise inventories held directly for sale, such as finished goods, merchandise
inventories, and available-for-sale materials, are measured at the estimated selling prices less estimated sales
expenses and relevant taxes and surcharges in the normal production process. Net realizable values of material
inventories which need further processing are measured at the estimated selling prices less the estimated costs of
completion, estimated sales expenses and relevant taxes and surcharges in the normal production process. Net
realizable values of inventories held for the purpose of fulfillment of sales contracts or service contracts should be
calculated on the basis of the contract prices; if the quantity of inventories held exceeds that stated in the contract,
the net realizable values of the excessive part should be calculated on the basis of normal selling prices.
The Company shall make provisions for impairment loss on diminution in value of inventories on an individual
basis at the year end. For inventories with large quantities and relatively low unit prices, the provisions for loss on
diminution in value of inventories shall be made on a category basis. For the inventories related to the product
portfolios manufactured and sold in the same area, and of which the final usage or purpose is identical or similar
thereto, and which is difficult to separate from other items for measurement purposes, the provisions for
impairment loss on diminution in value of inventories may be made on a portfolio basis.
The net realizable value of inventory items is determined based on the market price on the balance sheet date,
unless there is clear evidence that the market price is abnormal on the balance sheet date.
The net realizable value of inventory items as at the end of the period is determined based on the market price on
the balance sheet date.
4.Inventory system
The perpetual inventory system is adopted.
5.Amortization of low-cost consumables and packaging materials
(1) Low-cost consumables are amortized under the lump-sum method;
(2) Packing materials are amortized under the lump-sum method.
13 .Assets classified as held-for-sale assets
The component (or non-current asset) will be recognized as the thing held for sale, if all the following conditions
are met at the same time:
(1) Such component can be sold as it is, in accordance with the usual terms on its sales;
(2)The Company has been an integral part of the disposal of the (non-current assets) made a resolution, such as
the need to obtain the required shareholder approval, has the approval of the shareholders' meeting or the
appropriate authority;
(3)The Company has signed an irrevocable transfer agreement with the transferee;
(4)Such transfer will be completed within one year.
14.Long-term equity investment
1.Judgment criteria of joint control or effect of material impact
Common control refers to the control shared over an arrangement in accordance with the relevant stipulations, and
the decision-making of related activities of the arrangement should not be made before the party sharing the
control right agrees the same. Where the Company exercises common control over the investee together with
other parties to the joint venture and enjoys the right on the investee's net assets, the investee is a joint venture of
the Company.
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Significant influence is the power to participate in the financial and operating policy decisions of the investee but
is not control or joint control over those polices. Where the Company has significant influences on an investee, the
investee shall be an associate of the Company.
2.Determination of initial investment cost
(1) Long-term equity investment acquired from business combination
For business combination under common control: If the Company makes payment in cash, transfers non-cash
assets or bears debts and issues equity securities as the consideration for the business combination, the share of
owners' equity of the acquiree obtained on the combination date in the book value of the ultimate controller's
consolidated financial statement is recognized as the initial cost of the long-term equity investment. Where
additional investment or other reasons make the control over the investee under the same control possible, the
initial investment cost of the long-term equity investments is measured at the share of net assets of the acquiree on
the combination date in the book value of the ultimate controller's consolidated financial statements. The stock
premium is adjusted according to the difference between the initial cost of long-term equity investments on the
combination date and the sum of the book value of long-term equity investments before combination and the book
value of the consideration further paid for obtaining shares; if there is no sufficient share premium for
write-downs, the retained earnings are offset.
For business combination not under common control: the Company recognizes the combination cost determined
on the combination date as the initial cost of long-term equity investment. Where additional investment, or other
reasons make the control over the investee not under the same control possible, the initial investment cost under
the cost method will be the sum of the book value of the equity investments previously held and the newly
increased investment costs.
(2)Long-term equity investment acquired by other means
The initial costs of a long-term equity investments obtained by payments of cash shall be the purchase prices
actually paid.
The initial costs of long-term equity investments in equity securities shall be stated at their fair values.
If the exchange of non-monetary assets has commercial substance and the fair values of assets traded out and
traded in can be measured reliably, the initial cost of long-term equity investment traded in with non-monetary
assets are determined based on the fair values of the assets traded out unless there is any conclusive evidence that
the fair values of the assets traded in are more reliable; if the exchange of non-monetary assets does not meet the
above criteria, the book value of the assets traded out and the relevant taxes and surcharges payable are recognized
as the initial cost of long-term equity investment traded in.
The initial costs of long-term equity investments arising from debt restructuring shall be stated at their fair values.
3.Subsequent measurement and recognition of profit or loss
(1) Long-term equity investment calculated under the cost method
The Company applies cost method to account for the long-term equity investments of subsidiaries. Except for the
price actually paid upon acquisition or the cash dividends or profit included in the price that are declared but not
yet paid, the Company recognizes investment income for the current period at the share of the cash dividends or
profits declared and released by the investee.
(2)Long-term equity investment calculated under the equity method
Long-term equity investments in associates and in joint ventures are accounted for under the equity method. If the
cost of initial investment is in excess of the proportion of the fair value of the net identifiable assets in the investee
when the investment is made, the difference will not be adjusted to the initial cost of long-term equity investment;
if the cost of initial investment is in short of the proportion of the fair value of the net identifiable assets in the
investee when the investment is made, the difference will be included in the current profit and loss.
The Company recognizes the investment income and other comprehensive income according to the net gain or
loss and other comprehensive income of the investee attributable to the Company, and adjusts the book value of
long-term equity investment; reduces the book value of long-term equity investments according to the profit or
cash dividends declared by the investee and attributable to the Company; and adjusts the book value of the
long-term equity investments in the investee, as to the change in owners' equities other than the net gain or loss,
other comprehensive income and profit distribution of the investee, and charges the same to the owners' equities.
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When the share in net profit and loss of the investee is recognized, the fair value of the identifiable net assets of
the investee when the investment is obtained shall be taken as a basis and the share will be determined after the
net profit is adjusted in accordance with the Company's accounting policies and accounting periods. During the
period of holding the investment, if the investee is capable of providing consolidated financial statements, the
profit or loss shall be measured based on the net profit and other changes in equity recorded in the consolidated
financial statements.
The profit and loss of the internal transactions that are not realized arising among the Company, affiliated
enterprises, and joint ventures will be offset at the part attributable to the Company and the investment income
will be recognized on that basis. For internal trading losses that have not occurred with the investee, they will be
fully recognized if they belong to the asset impairment losses. The trading of assets between the Company and its
associates or joint ventures, which constitutes business, are treated according to the policies disclosed in "Note 3.5
Accounting Treatment of Combination of enterprises under common control and enterprises not under common
control" and "Note 3.6 Preparation of consolidated financial statements".
When the Company confirms that it should share losses of the investee, treatment shall be done in following
sequence: Firstly, the book value of the long-term equity investment shall be reduced. Secondly, where the book
value is insufficient to cover the share of losses, investment losses are recognized to the extent of book value of
other long-term equity which form net investment in the investee in substance and the book value of long term
receivables shall be reduced. finally, after all the above treatments, if the Company is still responsible for any
additional liabilities in accordance with the provisions stipulated in the investment contracts or agreements,
estimated liabilities are recognized and included into current investment loss according to the obligations
estimated to undertake.
(3)Disposal of long-term equity investment
Upon disposal, the difference between the book value and the price obtained is recognized in current profit and
loss.
Disposal of long-term equity investments accounted for under the equity method, which is previously charged to
other comprehensive income is treated in proportion on the same basis for direct disposal of relevant assets of
liabilities by the investee. Owner's equities recognized arising from change in other owners' equities other than net
gain or loss, other comprehensive income and profit distribution of the investee are carried forward to the current
profit or loss in proportion, except for the other comprehensive income arising from the change on
re-measurement of the net liabilities or net assets under the defined benefit plan by the investee.
In case of loss of common control over or material impact on the investee due to the disposal of part of the equity
investments, the remaining equity after the disposal are computed according to the principles for recognition and
measurement of financial instruments, and the difference between the fair value and book value on the day of loss
of common control or material impact is charged to the current profit or loss. For other comprehensive income
that is recognized from original equity investment by using the equity method, the accounting treatment will be
made on the basis the same as that for the direct disposal of related assets and liabilities with the investee when
the equity method is terminated for accounting purpose. Owner's equities recognized arising from change in other
owners' equities other than net gain or loss, other comprehensive income and profit distribution of the investee are
entirely transferred to the current profit or loss when the accounting under the equity method is ended.
In case of loss of common control over or material impact on the investee due to the disposal of part of the equity
investments, the remaining equity after the disposal are computed under the equity method, with the adjustment
made as if such remaining equities are calculated under the equity method after they are obtained, when the
separate financial statement is prepared; the remaining equities after disposal leading to the incapable exercise of
common control over or material impact on the investee shall be treated according to the principles for recognition
and measurement of financial instruments, and the difference between the fair value and book value on the day of
loss of common control or material impact is charged to the current profit or loss.
If the equities disposed were obtained from the business merger by reason of additional investment or others, and
the remaining equities after disposal are calculated under the cost method or equity method when the individual
financial statement is prepared, other comprehensive income and other owners' equities recognized and arising
from the calculation of the equity investment held before the acquisition date under the equity method will be
carried forward in proportion; if the remaining equities after disposal are treated according to the principles for
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recognition and measurement of financial instruments, both of other comprehensive income and other owners'
equities are entirely carried forward.
15. Investment property
The measurement mode of investment property
The measurement by the cost method
Depreciation or amortization method
Investment properties are properties to earn rentals or for capital appreciation or both. Examples include land
leased out under operating leases, land held for long-term capital appreciation, buildings leased out under
operating leases, (including buildings that have been constructed or developed for future lease out under operating
leases, and buildings that are being constructed or developed for future lease out under operating leases).
The Company adopts cost model to measure all current investment properties. The Company adopts the same
depreciation policy for the investment property measured at cost model building for renting as that for the
Company’s fixed assets and the same amortization policy of land use right for renting as that for the Company’s
intangible assets.
16.Fixed assets
（1） Criteria for recognition of fixed assets
Fixed assets refer to tangible assets held for the purpose of producing commodities, providing services, renting or
business management with useful lives exceeding one accounting year. Fixed assets will only be recognized when
all the following criteria are satisfied: Fixed assets will only be recognized when all the following criteria are
satisfied:
(1) It is probable that the economic benefits relating to the fixed assets will flow into the Company; and
(2)The costs of the fixed asset can be measured reliably.
（2）Depreciation method
The method for Expected useful life
Category Estimated residual value Depreciation
depreciation （Year）
Buildings and Straight-line method 3 2.77-3.88
constructions
Straight-line method 3 6.47-13.86
Machinery equipment
Transportation Straight-line method 3 9.70-12.13
equipment
Straight-line method 3 9.70-19.40
Other equipment
Depreciation of fixed assets is provided on a category basis using the straight-line method. The depreciation rates
are determined according to the categories, estimated useful lives and estimated net residual rates of fixed assets.
If the components of a fixed asset have different useful lives or cause economic benefit for the Company in
different ways, different depreciation rate or method shall be adopted for depreciation on an individual component
basis.
For fixed assets acquired under finance leases, if it is reasonably certain that the ownership of the leased assets
will be transferred to the lessee by the end of the lease term, they shall be depreciated over their remaining useful
lives; otherwise, the leased assets shall be depreciated over the shorter of the lease terms or their remaining useful
lives.
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（3）Basis for recognition and measurement of fixed assets acquired under the finance lease
The fixed assets acquired under financing lease are recognized if one of the following conditions is specified by
the Company and the leaser in their lease agreement:
(1)The ownership of the leased assets is transferred to the Company by the end of the lease terms;
(2)The Company has the option to purchase the assets at prices which are expected to be sufficiently lower than
fair values at the date the option becomes exercisable that, at the inception of the leases, it is reasonably
certain that the option will be exercised;
(3)The lease terms cover the major part of the economic lives of the assets, even if titles are not transferred;
(4)At the inception of the leases, the present values of the minimum lease payments amount to at least
substantially all of the fair values of the leased assets. On the lease commencement date, the book-entry value of
a fixed asset acquired under financing lease is measured at the asset’s fair value or the present value of the
minimum lease payment, whichever is the lower. The minimum lease payment is recorded as the book-entry
value of the long-term payables, and the difference between them is deemed as the unrecognized financing
expenses.
17.Construction in progress
The book values of the construction in progress are stated at total expenditures incurred before reaching working
condition for their intended use. For construction in progress that has reached working condition for intended use
but relevant budgets for the completion of projects have not been completed, the estimated values of project
budgets, prices, or actual costs should be included in the costs of relevant fixed assets, and depreciation should be
provided according to relevant policies of the Company when working condition is reached. After the completion
of budgets needed for the completion of projects, the estimated values should be substituted by actual costs, but
depreciation already provided is not adjusted.
18.Borrowing costs
1.Principles for recognition of capitalization of borrowing costs
Borrowing costs include the interest on borrowings, the amortization of discount or premium, auxiliary expenses,
exchange differences incurred by foreign currency borrowings, etc.
The borrowing costs incurred to the Company and directly attributable to the acquisition and construction or
production of assets eligible for capitalization should be capitalized and recorded into asset costs; other borrowing
costs should be recognized as costs according to the amount incurred and be included into current profit and loss.
Assets eligible for capitalization refer to fixed assets, investment property, inventories and other assets which may
reach their intended use or sale status only after long-time acquisition and construction or production activities.
Borrowing costs may be capitalized only when all the following conditions are met at the same time:
(1)The asset disbursements have already incurred, which shall include the cash paid, non-cash assets transferred
or interest bearing debts undertaken for the acquisition and construction or production activities for preparing
assets eligible for capitalization;
(2)The borrowing costs has already incurred; and
(3)The acquisition and construction or production activities which are necessary to prepare the asset for its
intended use or sale have already started.
2.Capitalization period of borrowing costs
Capitalization period refers to the period from commencement of capitalization of borrowing costs to its cessation;
period of suspension for capitalization is excluded.
When the qualified asset under acquisition and construction or production is ready for the intended use or sale, the
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capitalization of the borrowing costs shall be ceased.
Where construction for assets purchased, constructed or manufactured eligible for capitalization is completed in
stages, which can be used while construction of the other parts continues, capitalization of attributable borrowing
costs should cease when substantially all of the activities necessary to prepare that part for its intended use or sale
are complete.
Where construction for each part of assets purchased, constructed or manufactured has been completed separately
but can be used or sold only after the entire assets have been completed, capitalization of attributable borrowing
costs should cease at the completion of the entire assets.
3.Period of capitalization suspension
If the acquisition and construction or production activities of assets eligible for capitalization are interrupted
abnormally and this condition lasts for more than three months, the capitalization of borrowing costs should be
suspended; if the interruption is necessary for the acquisition and construction or production to prepare the assets
for their intended use or sale, the capitalization of borrowing costs should continue. The borrowing costs incurred
during interruption are recognized in the current profit and loss, and the capitalization of borrowing costs
continues after the restart of the acquisition and construction or production activities of the assets.
4,Capitalization rate and measurement of capitalized amount of borrowing costs
As for special borrowings borrowed for acquiring and constructing or producing assets eligible for capitalization,
the to-be-capitalized amount shall be determined at interest expense of special borrowing actually incurred in the
current period less the interest income of the borrowings unused and deposited in bank or return on temporary
investment.
As for general borrowings used for acquiring and constructing or producing assets eligible for capitalization, the
to-be-capitalized amount should be calculated by multiplying the weighted average of asset disbursements of the
part of accumulated asset disbursements exceeding special borrowings by the capitalization rate of used general
borrowings. The capitalization rate is calculated by using the weighted average interest rate of general borrowings.
19. Biological assets
20. Oil-gas assets
21. Intangible assets
1 Pricing method, useful life and impairment test
(1) The Company initially measures intangible assets at cost on acquisition;
The costs of external purchase of intangible assets comprise their purchase prices, related taxes and surcharges
and any other directly attributable expenditure incurred to prepare the asset for its intended use. If payments for
the purchase of intangible assets are extended beyond the normal credit terms with financing nature, the costs of
intangible assets are determined on the basis of present values of the purchase prices.
For intangible assets obtained from debtors in settlement of his liabilities in case of debt restructuring, they should
be initially stated at their fair values. Differences between the book values and the fair values of the intangible
assets are charged to profit or loss for the current period.
If the exchange of non-monetary assets has commercial substance, and the fair values of these assets can be
measured reliably, the book-entry values of intangible assets traded in are based on the fair values of the intangible
assets traded out unless there is any conclusive evidence that the fair values of the assets traded in are more
reliable. If the exchange of non-monetary assets does not meet the above criteria, the costs of the intangible assets
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traded in should be the book values of the assets traded out and relevant taxes and surcharges paid, and no profit
or loss shall be recognized.
(2) Subsequent measurement
The useful lives of the intangible assets are analyzed and determined on their acquisition.
As for intangible assets with limited useful life, straight-line amortization method is adopted in the period when
the intangible assets generate economic benefit for enterprise; if the period when the intangible assets generate
economic benefit for enterprise cannot be forecasted, the intangible assets shall be deemed as those with indefinite
useful life and shall not be amortized.
2.Estimate of the useful life of the Intangible assets with finite useful lives:
The useful lives and amortization methods of intangible assets with limited useful lives are reviewed at each year
end.
Upon review, the useful lives and amortization method of the intangible assets as at the end of the year were not
different from those estimated before.
3.Basis for judgment of intangible assets with indefinite useful life and procedures for review of the life
thereof
The useful lives and amortization method of intangible assets with limited useful lives are reviewed at the end of
each period.
Upon review, the useful lives and amortization method of the intangible assets as at the end of the year were not
different from those estimated before.
4.Specific criteria of classification into the research phase and the development phase
Expenditures on an internal research and development project shall be classified into expenditures on the research
phase and expenditures on the development phase.
Research phase: Research is original and planned investigation, undertaken with the prospect of gaining new
scientific or technical knowledge and understanding.
Development phase: Development is the application of research findings or other knowledge to a plan or design
for the production of new or substantially improved materials, devices, or products before the start of commercial
production or use.
5.Criteria for capitalization of qualifying expenditures during the development phase
Expenditures arising from development phase on internal research and development projects must be capitalized if
the Company can satisfy all of the following criteria:
(1) It is technically feasible to finish intangible assets for use or sale;
(2) It is intended to finish and use or sell the intangible assets;
(3) the method that the intangible assets generate economic benefits, including existence of a market for products
produced by the intangible assets or for the intangible assets themselves, shall be proved. Or, if to be used
internally, the usefulness of the assets shall be proved;
(4) adequate technical, financial, and other resources are available to complete the assets, and the Company has
the ability to use or sell the assets; and
(5) The expenditures attributable to the intangible assets during their development phase can be reliably
measured.
If the above conditions are not satisfied, expenditures on the development phase shall be included in current profit
and loss when they occur. Expenditures on the research phase shall be included in current profit and loss when
they occur.
According to the Accounting Standards for Enterprises in combination with the actual situation of the Company,
the period between the report on pre-study of project to the issuance of project assessment and examination report
is defined as the research state, in which the expenditures incurred are expensed when incurred and charged to the
current profit or loss.
In the development stage, research findings or other knowledge is applied to a plan or design for the production of
new or substantially improved materials, devices, or products before the start of commercial production or use.
This phase is equipped with the basic conditions for the formation of a new product or technology to a greater
extent.
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
According to the actual situation of the Company, the period between the adoption of project assessment and
examination with the assessment and examination report issued to the batched production is defined as the
development stage. The project development expenditures will be capitalized, if the conditions for capitalization
of development expenditures are met.
All expenditures incurred on research of application of basic techniques are classified as research stage
expenditures and charged to the current profit or loss when incurred.
22. Impairment of long-term assets
The Company will conduct the impairment test if any evidence suggests that the long assets, such as the long-term
equity investment and the investment property, fixed assets, construction in progress and intangible assets, are
impaired on the balance sheet date. If impairment test results indicate that the recoverable amounts of the assets
are lower than their carrying amounts, the provision for impairment is made based on the differences which are
recognized as impairment losses. The recoverable amounts of intangible assets are the higher of their fair values
less costs to sell and the present values of the future cash flows expected to be derived from the assets. The
provision for assets impairment is calculated and recognized by the individual asset. If it is difficult to estimate the
intangible amount of an individual asset, the Company shall estimate the recoverable amount of the asset portfolio
that the individual asset belongs to. The asset portfolio is the minimum asset group that can independently
generate the cash inflow.
At least the goodwill impairment test is conducted at the year-end.
The Company conducts an impairment test for the goodwill. The book value of goodwill arising from business
combinations is amortized to relevant asset groups with a reasonable method since the date of acquisition; or
amortized to relevant combination of asset groups if it is difficult to be amortized to relevant asset groups. The
book value of goodwill is amortized to relevant asset groups or combinations of asset groups according to the
proportion of the fair value of such asset groups or combinations of asset groups in the total fair value of relevant
asset groups or combinations of asset groups. Where the fair value cannot be reliably measured, it should be
amortized according to proportion of the book value of each asset group or combination of asset group in the total
book value of relevant asset groups or combinations of asset groups.
When making an impairment test on the relevant asset groups or combination of asset groups containing goodwill,
if any indication shows that the asset groups or combinations of asset groups related to the goodwill may be
impaired, the Company shall first conduct an impairment test on the asset groups or combinations of asset groups
not containing goodwill, calculate the recoverable amount and compare it with the relevant book value to
recognize the corresponding impairment loss. Then the Company shall conduct an impairment test on the asset
groups or combinations of asset groups containing goodwill, and compare the book value of these asset groups or
combinations of asset groups (including the book value of the goodwill apportioned thereto) with the recoverable
amount. Where the recoverable amount of the relevant asset groups or combinations of asset groups is lower than
the book value thereof, the Company shall recognize the impairment loss of the goodwill.
The above impairment loss is not reversed in the future accounting period once recognized.
23.Long-term deferred expenses
Long-term deferred expenses refer to the expenses which have been already incurred but will be borne in the
current period and in the future with an amortization period of over 1 year. Long-term deferred expenses are
evenly amortized over the benefit period.
24.Employee compensation
1.Accounting treatment of short-term remuneration
During the accounting period in which employees provide service to the Company, the short-term remuneration
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
actually incurred is recognized as liabilities and charged to the current profit or loss or the relevant assets cost.
The medical insurance premium, work-related injury insurance premium and the housing provident fund paid by
the Company for its employees, together with the labor union expenditures and employee education are used to
calculate and determine the relevant employee compensation amount based on the prescribed accrual basis and
accrual proportion.
The non-monetary benefits for employees that can be measured reliably are measured at fair value.
2.Accounting treatment of benefits paid after departure
The basic endowment insurance premium and unemployment insurance premium paid by the Company for its
employees in accordance with relevant provisions of the local government are recognized as liabilities and
charged to the current profit or loss or the relevant assets cost, with the payable amount calculated based on the
local prescribed payment base and percentage, during the accounting period in which the employees provide
services to the Company.
In addition to the basic endowment insurance, the Company also build the enterprise annuity payment system
(supplementary pension insurance) in accordance with relevant national policies established a pension payment
system / corporate pension plans. The Company pays a certain percentage of the total employee compensation to
the local social institution for the payment/payment under annuity plan, and record the relevant expenditures into
the current profit or loss or the relevant assets cost.
See "Note 5.22 Employee compensation payable" for details.
3.Accounting treatment of dismissal welfare
Where the Company cannot unilaterally withdraw when termination benefits due to termination of employment or
layoff proposal offered, or confirm the reorganization involves the payment of termination benefits when
associated costs or expenses (both what early), confirm termination benefits employees pay liabilities, and profit
or loss.
4 .Accounting treatment of other long term employee benefits
25.Estimated liabilities
1.Recognition criteria for estimated liabilities
The Company recognizes the estimated liabilities when the obligations relating to litigation, debt-guarantee, loss
contract, restructuring and other contingencies satisfy the following conditions simultaneously:
(1)That obligation is a present obligation of the Company;
(2)The performance of such obligation is likely to result in outflow of economic benefits from the Company; and
(3)The amount of the obligation can be measured reliably.
2.Measurement of a variety of estimated liabilities
The estimated liabilities of the Company are initially measured as the best estimate of expenses required for the
performance of relevant present obligations.
When determining the best estimate, the Company shall comprehensively consider the risks, uncertainties, time
value of money, and other factors relating to the contingencies. If the time value of money is significant, the best
estimates shall be determined after discount of relevant future cash outflows.
The best estimates shall be treated as follows in different circumstances:
If there is continuous range (or interval) for the necessary expenses, and probabilities of occurrence of all the
outcomes within this range are equal, the best estimate shall be determined at the average amount of upper and
lower limits within the range.
Given the fact that there is no continuous range (or interval) for the necessary expenses, or probabilities of
occurrence of all the outcomes within this range are unequal despite such a range exists, in case that the
contingency involves a single item, the best estimate shall be determined at the most likely outcome; if the
contingency involves two or more items, the best estimate should be determined according to all the possible
outcomes with their relevant probabilities.
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
When all or part of the expenses necessary for the settlement of an estimated liabilities are expected to be
compensated by a third party or other parties, the compensation shall be separately recognized as an asset only
when it is virtually certain that the compensation will be received. The amount recognized for the compensation
shall not exceed the book value of the estimated liabilities.
26.Share-based payment
The share-based payment is the transaction the Company has to grant the equity instrument to employees or
assume the liability determined based on the equity instrument, for the service provided by the employees [or
other parties]. The share-based payments of the Company can be divided into the equity-settled share-based
1.Equity-settled share-based payments and equity instruments
In case of the equity-settled share-based payment for the service provided by employees, the measurement is
based on the fair value of the equity instruments granted to employees. Where the Company carries out a
restricted share-based payment, the employees subscribe shares by contributing capital, and the shares cannot be
traded or transferred in the market until they satisfy the conditions for removing the freeze; if the conditions for
removing the freeze as prescribed by the ultimate stock stimulating plan fail to be satisfied, the Company shall
repurchase the shares as previously agreed. When the Company receives the payments for subscription of
restricted shares from the employees, it shall recognize the share capital and capital reserves (share capital
premiums) according to the payments for subscription received, and recognize a liability and treasury shares with
respect to the repurchase obligation. On every balance sheet date during the waiting period, the Company
estimates the quantity of the exercisable equity instruments in light of the latest subsequent information, such as
the change in the number of employees obtaining the exercisable equity instrument or whether the specified
performance requirements are met, based on which the services obtained in the current period are charge to the
relevant costs or expenses at the fair value on the grant date, with the capital reserves added correspondingly.
Those payments which are exercisable immediately after the grant are charged to the relevant costs or expenses,
with the capital reserves added correspondingly. After the vesting date, the recognized relevant costs or expenses
or total amount of owners' equity shall not be adjusted any more.
No cost or expense is recognized for awards that do not ultimately vest, except for awards where vesting is
conditional upon a market condition, which are treated as vesting irrespective of whether or not the market
condition is satisfied, provided that all other performance conditions are satisfied.
Where the terms of an equity-settled award are modified, as a minimum an expense is recognized as if the terms
had not been modified. In addition, an expense is recognized for any modification which increases the total fair
value of the share-based payment arrangement, or is otherwise beneficial to the employee as measured at the date
of modification.
Where an equity-settled share-based payment is cancelled, it is treated as if it had vested on the date of
cancellation, and any expense not yet recognized for the award is recognized immediately. Where employees or
other parties are permitted to choose to fulfill non-vesting conditions but have not fulfilled during the pending
period, equity-settled share-based payments are deemed cancelled. However, if a new equity instrument is
substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the new
equity instrument are treated as if they were a modification of the original award.
2.Cash-settled share-based payments and equity instruments
The cash-settled share-based payment is measured in accordance with the fair value of liability calculated and
confirmed based on the shares or other equity instruments undertaken by the Company. The cash-settled
share-based payment is initially measured in accordance with the fair value on the vesting date, in consideration of
the terms and conditions for granting the equity instruments. If the right may be exercised immediately after the
grant, the fair value of the liabilities shall, on the vesting date, be included in the costs or expenses, together with a
corresponding increase in the liabilities; if the right cannot be exercised until the vesting period comes to an end
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
or until the prescribed performance conditions are met, then within the vesting period, the services obtained in the
current period shall, based on the best estimate of the number of vested equity instruments, be included in the
relevant costs or expenses at the fair value of the liabilities on the vesting date, together with a corresponding
increase in the liabilities. On each balance sheet date and on each account date prior to the settlement of the
relevant liabilities, the fair values of the liabilities are re-measured and the changes i
27. Other financial instruments such as preferred shares and perpetual capital securities
28.Revenues
1 General principles for recognition of revenues from sales of goods:
(1) The Company has transferred to the buyer the significant risks and rewards of ownership relevant to the
goods in question;
(2) The Company retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;
(3) The relevant amount of revenue can be measured reliably;
(4) It is probable that the economic benefits related to the transaction will flow into the Company; and
(5) The relevant costs incurred or to be incurred can be measured reliably.
2 Concrete principles for revenues from primary businesses
(1) Sales of complete vehicles: the operation management department of the Sale Company shall research and
review the "saved" orders submitted by the dealers; after an approval upon review, the finance department shall, in
accordance with the lines of credit of customers, check the situation regarding collection of payments and conduct
a financial audit on these orders; the warehousing department shall issue an ex-warehouse list according to the
recognized orders, which will be marked with the words "Delivered"; then, a delivery people of the third party, i.e.
a transport company shall sign the ex-warehouse list, upload the goods and transport them; After the acceptance
by the customers upon check, the ex-warehousing list shall be signed for confirmation. According to the
information relating to the sales orders indicating that the relevant goods "have been delivered", the finance
department shall check the ex-warehouse list signed by the delivery person on behalf of his or her transport
company with the corresponding sales contract that no error has been committed; subsequently, it shall recognize
that the major risks and rewards relating to the goods' properties have been transferred to the buyer and then issue
a sales invoice as well as recognize the sales revenues;
(2) Sales of engines: at the beginning of every year, the Company enters into a sales contract including the terms
relating to basic unit price with the customers; the method of delivery after payment is adopted for the sales of
engines; the goods shall be arranged to be delivered after the payments for goods are paid up as stipulated by the
orders, a sales invoice shall be issued when the goods are delivered and the revenues from sales are recognized.
(3) Sales of automobile air-conditioner: the Air-conditioner Company deliveries goods according to the
customers' production plans and safty stock; after the customers use the products, the salesmen issue a notification
of making out an invoice according to the customers' monthly usage amounts and contracted prices, the finance
department issues an invoice and the revenues from sales shall be recognized.
29.Government grants
(1) Judgment basis and accounting treatment of government subsidies related to assets
Government subsidies related to assets refer to the subsidies obtained by the Company from the government and
used to form long-term assets through acquisition and construction or otherwise, including the financial
appropriation for purchase of fixed assets or intangible assets and the finance discounts for special borrowings of
fixed assets.
Government grants related to assets are recognized as deferred income and included in non-operating income over
the useful lives of the assets constructed or purchased by stages;
(2) Judgment basis and accounting treatment of government subsidies related to profits
Government grants related to assets are recognized as deferred income and included in non-operating income over
the useful lives of the assets constructed or purchased by stages;
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
If government subsidies related to income are used to compensate the Company’s relevant expenses or losses in
future periods, such government subsidies should be recognized as deferred income on acquisition and be
included into the current non-operating income in the period of recognizing relevant expenses; if government
subsidies related to income are used to compensate the enterprise’s relevant expenses or losses incurred, such
government subsidies are directly included into the current non-operating income on acquisition.
30.Deferred income tax assets and deferred income tax liabilities
Deferred income tax assets shall be recognized for deductible temporary differences to the extent that it is
probable that taxable profit will be available against which the deductible temporary differences can be utilized.
As for any deductible loss or tax deduction that can be carried forward to the next year, the corresponding deferred
income tax assets shall be determined to the extent that the amount of future taxable income to be offset by the
deductible loss or tax deduction to be likely obtained.
Taxable temporary differences are recognized as deferred income tax liabilities except in special circumstances.
Special circumstances in which deferred income tax assets or deferred income tax liabilities shall not be
recognized include: the initial recognition of goodwill; other transactions or events excluding business
combinations, which affect neither accounting profits nor the taxable income (or deductible losses) when
occurred.
If the Company has the legal right of netting and intends to settle in net amount or to obtain assets and discharge
liabilities simultaneously, the income tax assets and income tax liabilities of the Company for the current period
shall be presented based on the net amount after offset.
When the Company has the legal rights to balance income tax assets and income tax liabilities for the current
period with net settlement, and deferred income tax assets and deferred income tax liabilities are related to the
income tax which are imposed on the same taxpaying subject by the same tax collection authority or on different
taxpaying subjects, but, in each important future period in connection with the reverse of deferred income tax
assets and liabilities, the involved taxpaying subject intends to balance income tax assets and liabilities for the
current period with net settlement at the time of obtaining assets and discharging liabilities, deferred income tax
assets and deferred income tax liabilities shall be presented based on the net amount after offset.
31.Leases
1.Accounting treatment of operating lease
(1) Lease fees paid by the Company for leased asset shall be amortized at straight-line method over the whole
lease period (including rent-free period) and shall be included in the current expenses. Initial direct costs relating
to lease transactions incurred by the Company shall be recognized as the current expenses.
If the expense related to the lease which shall be paid by the Company is assumed by the lessor of the asset, then
such expenses shall be deducted from total lease fees, and the balances shall be amortized over the lease term s
and charged to the current expenses.
(2) Lease fees received by the Company from leasing assets shall be amortized at straight-line method over the
whole lease period (including rent-free period), and shall be recognized as lease income. Initial direct costs
relating to lease transactions incurred by the Company shall be recognized as the current expenses; if the amounts
are material, they shall be capitalized and included in the current income on the same basis as the recognition of
lease income.
If expenses relating to leases which should be borne by the lessee of the assets are paid by the Company, they
shall be deducted from the total lease income and the balances shall be amortized over the lease terms by the
Company.
2.Accounting treatment of financing lease
(1) Assets acquired under financing leases: At the commencement of the lease terms, assets acquired under
financing leases shall be recorded at the lower of their fair values and the present values of the minimum lease
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
payments, and the Company shall recognize the long-term payables at amounts equal to the minimum lease
payments, and shall record the differences between book value of the leased assets and the long-term payables as
unrecognized finance charges. The Company adopts the effective interest rate method for unrecognized financing
charges, which shall be amortized over the lease terms and included in financial expenses. Initial direct costs
incurred by the Company shall be included in the value of leased assets.
(2) Assets rented out under financing leases: At the commencement of the lease terms, the Company shall
recognize the differences between the undiscounted rents receivable plus unguaranteed residual values and their
present values as unrealized financing income, and shall recognize them as lease income during each period when
rents are received. Initial direct costs associated with the lease transactions and incurred by the Company shall be
included in the initial measurement of the financing lease receivable and lease income recognized over the lease
terms shall be reduced accordingly.
32. Main accounting policies and accounting estimates
(1)Change of main accounting policies
None
（2）Change of main accounting estimations
None
33.Change of main accounting policies and estimations
(1)Change of main accounting policies
□ Applicable √ Not applicable
(2) Change of main accounting estimations
□ Applicable √ Not applicable
34.Other
VI. 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
VAT on the calculation of output tax, after deduction of input tax 17%
deductibility of the current period, the balance part of VAT payable
Consumption tax Revenue of taxable consumables 3%--10%
Operational tax Revenue of leasing and taxable services
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
City maintenance and construction tax Value-added tax, operating tax and consumption tax paid 7%
Enterprise income tax Taxable income 25%、15%
The disclosure on the rate of income tax of taxpayers in different enterprises is stated below
Name of Taxpayer Rate of Income Tax
Chongqing Jianshe Motorcycle Co., Ltd. 15%
Chongqing Jianshe Sales Co., Ltd. 25%
Chongqing Jianshe Motorcycle Sales Co., Ltd. 25%
Chongqing Beifang Jianshe Import and Export 25%
Shanghai Jianshe Motorcycle Co., Ltd. 25%
Chongqing Jianshe Automobile A/C Co., Ltd. 15%
Chongqing Jianshe Mechanical and Electric Co., Ltd. 15%
2. Preferential tax treatment
The Company and Chongqing Jianshe Mechanical and Electric Co., Ltd. is subject to the enterprise income tax
rate of 15% in 2015, as a result of the preferential enterprise income tax policies to promote the large-scale
development of the western region in accordance with the Announcement on Issues of Enterprise Income Tax
concerning In-depth Implementation of Western Region Large-scale Development Strategy (Announcement of the
State Administration of Taxation [2012] No.12).
The subsidiary Chongqing Jianshe Automobile A/C Co., Ltd. passed the qualification for new hi-tech company on
November 8, 2013 and acquired the qualification certificate for new hi-tech company, with the certificate No.
being GR201351100081 and its validity 3 years. From 2014 to 2016, the corporate income tax shall be paid at the
tax rate of 15%.
3.Other
VII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
In RMB
Items Closing balance Opening balance
Cash on hand 49,452.77 70,909.87
Bank deposits 116,423,944.85 23,572,605.94
Other cash and cash equivalents 240,601,099.64 279,017,242.95
Total 357,074,497.26 302,660,758.76
Other notes
Including: the details on restricted cash and cash equivalents due to mortgage, pledge or freezing are as follows:
Items Closing balance Opening balance
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Bank acceptance bills margin 240,601,099.64 157,344,806.52
L/C deposit 17,657.70
Guarantee deposit and notice deposit
Total 240,601,099.64 157,362,464.22
2. Financial assets measured at fair value through current profit and loss
In RMB
Items Closing balance Opening
Other notes：
3. Derivative financial assets
□ Applicable √Not applicable
4. Notes receivable
(1) Notes receivable listed by category
In RMB
Items Closing balance Opening balance
Bank acceptance bill 50,637,161.19 47,008,704.63
Total 50,637,161.19 47,008,704.63
(2) Notes receivable pledged by the Company at the period-end
In RMB
Items Amount
(3) Notes receivable which had endorsed by the Company or had discounted and had not due on the
balance sheet date at the period-end
In RMB
Amount of recognition termination at the Amount of not terminated recognition at
Items
period-end the period-end
(4) Notes transferred to accounts receivable because drawer of the notes fails to executed the contract or
agreement
In RMB
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Amount of the notes transferred to account receivable at the
Items
period-end
Other notes
5. Accounts receivable
(1) Accounts receivable disclosed by category
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Proportio Proportio Proportio Proportion Book value
Amount Amount value Amount Amount
n% n% n% %
Accounts receivable
with provision for
bad debt made on a 267,548, 13,853,8 253,694,2 232,282 14,522,93 217,759,20
100.00% 5.18% 100.00% 6.25%
portfolio with similar 126.64 78.51 48.13 ,147.28 8.85 8.43
risk credit
characteristics basis
267,548, 13,853,8 253,694,2 232,282 14,522,93 217,759,20
100.00% 5.18% 100.00% 6.25%
Total 126.64 78.51 48.13 ,147.28 8.85 8.43
Accounts receivable with significant single amount for which bad debt provision separately accrued at the
period-end
□ Applicable √ Not applicable
In the groups, accounts receivable adopting aging analysis method to accrue bad debt provision:
√ Applicable □ Not applicable
In RMB
Closing balance
Aging
Accounts receivable Provision for bad debts Proportion of provision (%)
Subitem within 1 year
1-6 months 237,298,760.01
Subtotal within 1 year 9,096,338.79 454,816.94 5.00%
Subtotal within 1 year 246,395,098.80 454,816.94 0.18%
1-2 years 4,720,084.24 472,008.42 10.00%
2-3 years 265,275.44 79,582.63 30.00%
Over 3 years 16,167,668.16 12,847,470.52 79.46%
3-4 years 1,418,244.68 338,966.94 23.90%
4-5 years 11,211,404.06 8,970,484.16 80.01%
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Over 5 years 3,538,019.42 3,538,019.42 100.00%
Total 267,548,126.64 13,853,878.51 5.18%
Notes of the basis of recognizing the group:
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to accrue bad debt provision:
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB0.00; the amount of the
reversed or collected part during the reporting period was of RMB 0.00.
Of which the significant amount of the reversed or collected part during the reporting period
In RMB
Items Reversed or collected amount Method
(3) The actual write-off accounts receivable
In RMB
Items Amount
Of which the significant actual write-off accounts receivable:
In RMB
Whether occurred
Name Nature Amount Reason Process from the related
transactions
Notes of the write-off the accounts receivable:：
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
Name Relationship Book balance Aging Proportion(%)
Great wall Automobile Co., 52,947,735.75 Within 6 months 19.79%
Ltd.Tianjing Hafo Branch
Chongqing Changan Automobile 19,545,806.15 Within 6 months 7.31%
Co., ltd.
Shenlong Qutomobile Co., Ltd. 27,415,995.87 Within 6 months 10.25%
China Beifang Vehicle Co., Ltd. 21,254,592.01 Within 6 months 7.94%
PSA(Peugeot) Company 26,355,856.60 Within 6 months 9.85%
Total 147,519,986.38 55.14%
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
Other notes:
6.Prepayments
(1) List by aging analysis:
In RMB
Closing balance Opening balance
Aging
Amount Proportion % Amount Proportion %
Within 1 year 16,618,310.51 96.43% 8,251,935.87 88.64%
1-2 years 236,598.11 1.37% 1,041,281.19 11.18%
2-3 years 8,859.80 0.05% 8,039.80 0.09%
Over 3 years 369,495.35 2.14% 8,370.00 0.09%
Total 17,233,263.77 -- 9,309,626.86 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time
(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target
Name Relationship Book balance Time Reason
Chongqing Bangzhou Import & Supplier 2,532,441.17 Within 1 year
exporttrade Co., Ltd.
Hardinge Machine Tool(Shanghai)Co., Supplier 503,552.50 Within 1 year
Ltd.
Changqing Dichuan Technology Supplier 301,000.00 Within 1 year
Co.,Ltd.
Mabosi (Shanghai )Trade Co., Ltd. Supplier 211,706.25 Within 1 year
Wuhan CoCinDa Mechanical and Supplier 177,000.00 Within 1 year
Electrical Equipment Co., Ltd.
Total 3,725,699.92
Other notes：
7. Interest receivable
(1) Category of interest receivable
In RMB
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Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Items Closing balance Opening balance
(2) Significant overdue interest
Whether occurred
Borrower Closing balance Overdue time Reason impairment and its
judgment basis
Other notes：
8. Dividend receivable
(1) Dividend receivable
In RMB
Items Closing balance Opening balance
(2) Significant dividend receivable aged over 1 year
In RMB
Whether occurred
Items Closing balance Aging Reason impairment and its
judgment basis
Other notes：
9. Other accounts receivable
(1) Other accounts receivable disclosed by category
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Proportio Proportio Proportio Proportion Book value
Amount Amount value Amount Amount
n% n% n% %
Other receivables
with provision for
bad debt made on a 168,459, 4,316,36 164,143,4 262,146 4,336,368 257,809,64
100.00% 2.56% 99.85% 1.65%
portfolio with similar 774.51 8.84 05.67 ,013.26 .84 4.42
risk credit
characteristics basis
Other receivables
with insignificant 405,125 405,125.3
single amount and 15.00% 100.00%
.35 5
provision for bad
debt made on an
86
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
individual basis
168,459, 4,316,36 164,143,4 262,551 4,741,494 257,809,64
100.00% 2.56% 100.00% 1.81%
Total 774.51 8.84 05.67 ,138.61 .19 4.42
Other accounts receivable with significant single amount for which bad debt provision separately accrued at the
period-end
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting aging analysis method to accrue bad debt provision:
√Applicable □ Not applicable
In RMB
Closing balance
Aging
Other receivables Provision for bad debts Proportion of provision (%)
Subitem within 1 year
0-6 months 429,923,021.18
6 months – withn 1 year 1,680,000.00 84,000.00 5.00%
Subtotal within 1 year 431,603,021.18 84,000.00 0.02%
1-2 years 13,950.24 1,395.02 10.00%
Over 3 years 4,234,208.59 4,230,973.82 99.92%
4-5 years 16,173.85 12,939.08 80.00%
Over 5 years 4,218,034.74 4,218,034.74 100.00%
Total 435,851,180.01 4,316,368.84 0.99%
Notes of the basis of recognizing the group:
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
√ Applicable □ Not applicable
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB 0.00；the amount of
the reversed or collected part during the reporting period was of RMB 000.
Of which the significant amount of the reversed or collected part during the reporting period
In RMB
Name Reversed or collected amount Method
(3) The actual write-off other accounts receivable
In RMB
Items Amount
87
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Of which the significant write-off other accounts receivable:
In RMB
Whether occurred
Name Nature Amount Reason Process from the related
transactions
Notes of write-off other accounts receivable:
(4) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Petty cash and borrowings with small
5,708,354.64 8,697,629.28
amount
Margins and others 326,300.00 326,300.00
Fully provided provision for bad debts
regarding long-term receivables and 4,218,034.74 4,218,034.74
payables
Export rebates receivable 78,825.35 78,825.35
Current account 158,128,259.78 249,230,349.24
Total 168,459,774.51 262,551,138.61
(5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party
In RMB
Proportion of the
total year end Closing balance of
Name Nature Closing balance Aging
balance of the bad debt provision
accounts receivable
(6) Accounts receivable involved with government subsidies
In RMB
Estimated received time,
Name Project of government Opening balance Closing balance
amount and basis
88
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
Other notes:
10. Inventory
(1) Category of inventory
In RMB
Closing balance Opening balance
Provision for Provision for
Items
Book balance inventory Book value Book balance inventory Book value
impairment impairment
Raw materials 45,274,698.11 4,618,914.59 40,655,783.52 59,287,827.35 4,618,914.59 54,668,912.76
Goods in progress 12,596,844.70 12,596,844.70 1,766,745.42 1,766,745.42
Stock goods 90,089,486.73 174,210.57 89,915,276.16
Turnover
101,065,872.90 174,210.57 100,891,662.33
materials
Total 158,937,415.71 4,793,125.16 154,144,290.55 151,144,059.50 4,793,125.16 146,350,934.34
(2) Falling price reserves of inventory
In RMB
Increased amount Decreased amount
Items Opening balance Reverse or Closing balance
Withdrawal Other Other
write-off
Raw materials 4,618,914.59 4,618,914.59
Stock goods 174,210.57
Turnover
174,210.57
materials
Total 4,793,125.16 4,793,125.16
(3) Notes of the closing balance of the inventory which includes capitalized borrowing expenses
(4) Completed unsettled assets formed from the construction contact at the period-end
In RMB
89
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Items Amount
Other notes:
11. Assets divided as held-to-sold
In RMB
Estimated disposal
Items Closing book value Fair value Estimated disposal time
expense
Other notes：
12. Non-current assets due within 1 year
In RMB
Itmes Closing balance Opening balance
Other notes：
13. Other current assets
In RMB
Items Closing balance Opening balance
Overpaid tax for offsetting the future tax
1,291,816.53 5,430,548.06
payable
Total 1,291,816.53 5,430,548.06
Other notes：
14. Available-for-sale financial assets
(1) List of available-for-sale financial assets
In RMB
Closing balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Available-for-sale equity
1,140,915.04 1,140,915.04 1,140,915.04 1,140,915.04
instruments
Measured at cost 1,140,915.04 1,140,915.04 1,140,915.04 1,140,915.04
Total 1,140,915.04 1,140,915.04 1,140,915.04 1,140,915.04
(2) Available-for-sale financial assets measured by fair value at the period-end
In RMB
90
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Category of the
Available –for-sale Available-for-sale
available-for –sale Total
equity instruments liabilities instruments
financial assets
(3) Available-for-sale financial assets measured by cost at the period-end
In RMB
Book balance Impairment provision Shareholdi Cash
ng bonus of
Investee Period-beg Period-beg proportion the
Increase Decrease Period-end Increase Decrease Period-end
in in among the reporting
investees period
Ningbo
Jianshe
Motorcycl
e 51.00%
Manufactu
ring Co.,
Ltd.
(4) Changes of the impairment of the available-for-sale financial assets during the reporting period
In RMB
Cagegory of the
Available-for-sale equity Available-for-sale
avalable-for-sale Total
instruments liabilities instruments
financial assets
(5) Relevant notes of the fair value of the available-for-sale equity instruments which seriously fell or
temporarily fell but not withdrawn the impairment provision
Items sof
Falling range of Withdrawn Reason of not
available-for-sale Fair value of the Continued falling
Investment cost the fair value amount of with drawn the
equity period-end time(month)
against the cost impairment impairment
instruments
Other notes
15. Investment held-to-maturity
(1) List of investment held-to-maturity
In RMB
91
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Closing balance Opening balance
Items Impairment Impairment
Book balance Book value Book balance Book value
provision provision
(2) Significant held-to-maturity investment at the period-end
In RMB
Bond item Par value Norminal interest rate Actual interest rate Due date
(3) Re-classified held-to-maturity investment during the reporting period
Other notes
16. Long-term accounts receivable
(1) List of long-term accounts receivable
In RMB
Closing balance Opening balance
Discount rate
Items Provision for Provision for
Book balance Book value Book balance Book value range
impairment impairment
(2) Long-term accounts receivable which terminate the recognition owning to the transfer of the financial assets
(3) The amount of the assets and liabilities formed by the transfer and the continues involvement of long-term
accounts receivable
Other notes
17. Long-term equity investment
In RMB
Increase /decrease
Closing
Gains and Adjustme
Cash Withdraw balance
losses nt of
Opening Additioal Reduced Chinges bonus or al of Closing of
Investees recognize other
balance investmen investmen of other profits impairme Other balance impairme
d under comprehe
t t equity announce nt nt
the equity nsive
d to issue provision provision
mithod incme
I. Joint ventures
Chongqing 83,381,31 -2,183,56 81,197,75
Pingshan TK 6.13 3.30 2.83
92
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Carburettor
Co., Ltd.
83,381,31 -2,183,56 81,197,75
Subtoal
6.13 3.30 2.83
II. Associates
83,381,31 -2,183,56 81,197,75
Total
6.13 3.30 2.83
Other notes
18. Investment property
(1) Investment property adopted the cost measurement mode
□ Applicable √Not applicable
(2) Investment property adopted fair value measurement mode
□ Applicable √Not applicable
(3) Details of investment property failed to accomplish certification of property
In RMB
Items Book value Reason
Other notes
19. Fixed assets
(1) List of fixed assets
In RMB
Electronic and office
Items House and Buildings Machinery equipment Vehicles Total
equipment
I. Original book
value：
1. Opening balance 220,860,967.06 570,104,727.83 8,924,256.63 14,390,721.93 814,280,673.45
2.Increased
amountof the 43,809,009.59 497,927.36 44,306,936.95
period
（1）Purchase 497,927.36 497,927.36
（2）Transfer of
project under 43,809,009.59 43,809,009.59
Construction
（3）Increased
fromenterprise
93
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
merger
3.Decreased amount
of the period
（1）Disposal
orscrap
4.Closing balance 220,860,967.06 613,913,737.42 8,924,256.63 14,888,649.29 858,587,610.40
II. Accumulative
depreciation
1.Opening balance 51,221,590.06 350,255,332.76 6,988,970.66 9,839,774.70 418,305,668.18
2.Increased
amountof the 3,482,750.52 12,166,925.26 261,428.70 538,212.03 16,449,316.51
period
（1）Withdrawal 3,482,750.52 12,166,925.26 261,428.70 538,212.03 16,449,316.51
3.Decreased
amountof the
period
（1）Disposalor
scrap
4.Closing balance 54,704,340.58 362,422,258.02 7,250,399.36 10,377,986.73 434,754,984.69
III. Depreciation
reserves
1. Opening
balance
2.Increased
amount of the period
（1）Withdrawal
3.Decreased
amount of the period
（1）Disposalor
scrap
4.Closing balance
94
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
IV. Book Value
1.Closing book value 166,156,626.48 251,491,479.40 1,673,857.27 4,510,662.56 423,832,625.71
2.Opening book
169,639,377.00 219,849,395.07 1,935,285.97 4,550,947.23 395,975,005.27
value
(2) List of temporarily idle fixed assets
In RMB
Accumulative Impairment
Items Original book value Book value Notes
depreciation provision
(3) Fixed assets leased in from financing lease
In RMB
Accumulative
Items Original book value Impairment provision Book value
depreciation
(4) Fixed assets leased out from operation lease
In RMB
Items Closing book value
(5) Details of fixed assets failed to accomplish certification of property
In RMB
Items Book value Reason
The formalities are handled with the
Houses and buildings 317,484,743.26
relevant authorities
Other notes
20. Construction in progress
（1）(1) List of construction in progress
In RMB
Closing balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Replacement of
12,911,031.74 12,911,031.74 40,366,114.52 40,366,114.52
equipment
Civil engineering 186,377.38 186,377.38 69,315.38 69,315.38
95
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Total 13,097,409.12 13,097,409.12 40,435,429.90 40,435,429.90
(2) Changes of significant construction in progress
In RMB
Of
Amount Proporti which：
Accumul
that on The Capitaliz
Other ative
Increase transferr estimate amount ation rate
Estimate decrease amount
Name of Opening d amount ed to Closing d of the Project of the of the Capital
d d amount of
items balance of the fixed balance project progress capitaliz interests resources
number of the capitaliz
period assets of accumul ed of the
period ed
the ative interests period
interests
period input of the
period
Capacity
Loans of
expansion
40,366,1 16,353,9 43,809,0 12,911,0 financial
of
14.52 26.81 09.59 31.74 institutio
air-conditi
ns
oner
Loans of
financial
Anechoic institutio
chamber ns
Decorative
Loans of
renovation
financial
engineerin
institutio
g of office
ns
building
Replaceme
nt of
technical Loans of
transforma financial
tion of a institutio
small
ns
amount of
equipment
Loans of
69,315.3 117,062. 186,377.
Other financial
8 00 38
institutio
96
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
ns
40,435,4 16,470,9 43,809,0 13,097,4
Total -- --
29.90 88.81 09.59 09.12
(3) List of the withdrawal of the impairment provision of the construction in progress
In RMB
Items Withdrawn amount Reason
Other notes
21. Engineering material
In RMB
Items Closing balance Opening balance
Other notes：
22. Liquidation of fixed assets
In RMB
Items Closing balance Opening balance
Other notes：
23. Productive biological assets
(1) Productive biological assets measured at cost methods
□ Applicable √ Not applicable
(2) Productive biological assets measured at fair value
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Inapplicable
25. Intangible assets
(1) Information
In RMB
Items Land use right Patent Non-patents Total
I. Total original book
value
97
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
1. Opening balance 36,670,885.45 36,670,885.45
2. Increase in the
reporting period
（1）Purchase
（2）Internal R&D
（3）Increase
fromenterprise
combination
3.Decrease in
thereporting period
（1）Disposal
4.Closing balance 36,670,885.45 36,670,885.45
II. Total
accoruedamortizati
on
1.Opening balance 8,400,491.82 8,400,491.82
2.Increased in the
365,184.06 365,184.06
reporting period
（1）Withdrawal
3.Decrease in the
reporting period
（1）Disposal
4.Closing balance 8,765,675.88 8,765,675.88
III. Impairment
provision
1.Opening balance
2.Increases in the
reporting period
（1）Withdrawal
3.Decrease in the
reporting period
（1）Disposal
98
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
4.Closing balance
IV. Book value
1.Book value of
27,905,209.57 27,905,209.57
theperiod-end
2.Book value of
28,270,393.63 28,270,393.63
theperiod-begin
The proportion the intangible assets formed from the internal R&D through the Company amount the balance of
the intangible assets at the period-end.
(2) Details of fixed assets failed to accomplish certification of land use right
In RMB
Items Book value Reason
Other notes：
26. R&D expenses
In RMB
Opening Closing
Items Increase Decrease
balance balance
Expenditures
at the
research
5,147,997.85 5,147,997.85
phase of
automobile
air-condition
Development
of motorcycle 69,633.96 69,633.96
and engine
Total 5,217,631.81 5,217,631.81
Other notes
27. Goodwill
(1) Original book value of goodwill
In RMB
Name of the
investees or the
Opening balance Increase Decrease Closing balance
events formed
goodwill
99
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
（2）Goodwill Impairment provision
In RMB
Items Opening balance Increase Decrease Closing balance
Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwill
impairment losses:
Other notes
28. Long-term unamortized expenses
In RMB
Amortization
Items Opening balance Increase Decrease Closing balance
amount
Casting Mould
83 Aluminum
3,345,497.21 691,705.00 2,653,792.21
machine entry fee
Fixed asset repair
expenditure
96 Aluminum
machine technology 580,594.64 35,546.60 545,048.04
transfer fee
Total 3,926,091.85 727,251.60 3,198,840.25
Other notes
29. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
Closing balance Opening balance
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
12,130,956.41 1,784,393.31 12,130,956.41 1,819,643.46
provision
Total 12,130,956.41 1,784,393.31 12,130,956.41 1,819,643.46
(2) Deferred income tax liabilities had not been off-set
In RMB
Items Closing balance Opening balance
100
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
Mutual set-off amount of Amount of deferred Mutual set-off amount of Amount of deferred
deferred income tax income tax assets or deferred income tax income tax assets or
Items
assets and liabilities at liabilities after off-set at assets and liabilities at liabilities after off-set at
the period-end the period-end the period-begin the period-begin
Deferred income tax 1,784,393.31 1,819,643.46
(4) List of unrecognized deferred income tax assets
In RMB
Items Closing amount Opening amount
Deductible temporary difference 12,130,956.41 13,067,516.83
Deductible losses 521,367,078.98 521,367,078.98
Total 533,498,035.39 534,434,595.81
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
In RMB
Year Closing balance Opening balance Notes
2015
2016 192,548,500.65 192,548,500.65
2017 197,428,928.73 197,428,928.73
2018 25,332,418.05 25,332,418.05
2019 98,496,222.54 98,496,222.54
2020 7,561,009.01 7,561,009.01
Total 521,367,078.98 521,367,078.98 --
Other notes：
30. Other non-current assets
In RMB
Items Closing balance Opening balance
Advance purchase of long-term assets 16,787,279.08 10,478,525.70
Total 16,787,279.08 10,478,525.70
101
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Other notes：
31. Short-term loans
(1) Category of short-term loans
In RMB
Items Closing balance Opening balance
Mortgage loan 5,000,000.00 5,000,000.00
Guarantee loan 207,000,000.00 187,000,000.00
Credit loan 25,000,000.00
Total 212,000,000.00 217,000,000.00
Notes of short-term loans category
(2) List of the short-term loans overdue but not return
The total amount of the overdue but not return short-term borrowings at the period-end was of RMB 000, of
which the situation of the significant overdue but not return short-term borrowings as follows:
In RMB
Borrower Closing balance Borrowing rate Overdue time Overdue rate
Other notes:
32. Financial liabilities measured by fair value and the changes included in the current gains and losses
In RMB
Items Closing balance Opening balance
Other notes:
33. Derivative financial liabilities
□ Applicable √ Inapplicable
34. Notes payabl
In RMB
Items Closing balance Opening balance
Bank acceptance bill 748,561,150.00 760,555,000.00
Total 748,561,150.00 760,555,000.00
The total amount of the due but not pay notes payable at the period-end was of RMB 000.
102
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
35. Accounts payable
(1) List of accounts payable
In RMB
Items Closing balance Opening balance
Within 1 year 177,626,045.61 58,162,616.22
1-2 years 28,702,913.59 10,752,626.36
2-3 years 2,213,879.39 3,048,897.69
Over 3 years 4,053,961.24 3,921,185.56
Total 212,596,799.83 75,885,325.83
(2) Notes of the accounts payable aging over one year
In RMB
Items Closing balance Unpaid/un-carry-over reason
Other notes:
36. Advance from customers
(1) List of advance from customers
In RMB
Items Closing balance Opening balance
Within 1 year 2,935,600.19 1,178,699.81
1-2 years 76,766.60 76,766.60
2-3 years 20,950.10 20,950.10
Over 3 years 124,903.46 124,903.46
Total 3,158,220.35 1,401,319.97
(2) Significant advance from customers aging over one year
In RMB
Items Closing balance Unpaid/un-carry-over reason
(3) Particulars of settled but unfinished projects formed by construction contract at period-end.
In RMB
Items Amount
103
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Other notes:
37. Payroll payable
(1) List of Payroll payable
In RMB
Items Opening balance Increase Decrease Closing balance
Short-term compensation 1,512,042.07 30,536,504.46 30,603,019.51 1,445,527.02
Post-employment
benefits - defined 142,455.87 3,899,143.67 3,371,505.56 670,093.98
contribution plans
Dismissal welfare 881,438.60 881,438.60
Total 1,654,497.94 35,317,086.73 34,855,963.67 2,115,621.00
(2) List of Short-term salary
In RMB
Items Opening balance Increase Decrease Closing balance
(1)Salary, bonus,
573,666.05 23,203,622.52 23,127,049.60 650,238.97
allowance and subsidy
(2)Employee benefits 3,321,243.24 3,196,453.18 124,790.06
(3) Social insurance
641,203.70 960,072.41 1,528,350.79 72,925.32
expenses
Including: medical
638,649.12 736,539.19 1,343,121.84 32,066.47
insurance premium
Work-related injury
1,759.24 149,014.27 123,658.86 27,114.65
insurance premium
Maternity insurance
795.34 74,518.95 61,570.09 13,744.20
premium
(4) Housing fund 238,286.00 2,448,759.00 2,290,255.00 396,790.00
(5) Labor union
expenditures and
42,766.32 493,430.29 335,413.94 200,782.67
employee education
expenses
(7) short-term
16,120.00 109,377.00 125,497.00
profit-sharing plan
Total 1,512,042.07 30,536,504.46 30,603,019.51 1,445,527.02
(3) List of drawing scheme
In RMB
Items Opening balance Increase Decrease Closing balance
104
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Basic endowment
82,937.51 3,627,320.71 3,205,846.33 504,411.89
insurance premium
Unemployment insurance
59,518.36 271,822.96 165,659.23 165,682.09
premium
Total 142,455.87 3,899,143.67 3,371,505.56 670,093.98
Other notes：
38. Taxes payable
In RMB
Items Closing balance Opening balance
VAT 663,399.66 86,828.08
Business tax 339,682.43 444,503.71
Individual income tax 1,124,161.96 1,150,666.94
Urban maintenance and construction tax 3,419,642.10 3,297,977.21
Educational surtax 2,418,218.59 2,107,282.74
property tax 5,083,536.40 4,327,900.64
Land royalities 1,808,215.20 1,808,215.20
Other taxes and surcharges 4,730,328.87 3,634,268.37
Total 19,587,185.21 16,857,642.89
Other notes：
39. Interest payable
In RMB
Items Closing balance Opening balance
Particulars of significant overdue unpaid interes：
In RMB
Unit Overdue amount Overdue reason
Other notes:
40. Dividends payable
In RMB
Items Closing balance Unpaid/un-carry-over reason
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
105
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
41. Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
Items Closing balance Unpaid/un-carry-over reason
Within 1 year 9,274,108.45 13,157,054.05
1-2 years 680,701.88 557,016.70
2-3 years 1,673,143.54 1,500,583.22
Over 3 years 1,707,352.92 1,659,672.56
Total 13,335,306.79 16,874,326.53
(2) Other significant accounts payable with aging over one year
In RMB
Items Closing balance Unpaid/un-carry-over reason
Ningbo Shenjiang Technology Joint Stock
1,000,000.00
Limited Company
Total 1,000,000.00 --
Other notes:
42. Liabilities classified as holding for sale
In RMB
Items Closing balance Opening balance
Other notes:
43. Non-current liabilities due within 1 year
In RMB
Items Closing balance Opening balance
Long-term loans due within 1 year 11,100,000.00 75,000,000.00
Total 11,100,000.00 75,000,000.00
Other notes:
44. Other current-liabilities
In RMB
Items Closing balance Opening balance
Changes on short term bonds payable:
106
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
In RMB
Overflow
The Withdraw Pay in
Name of Book Issue Opening discount Closing
Issue date period current interest at current
the bond value amount balance amortizati balance
issue par period
on
Other notes:
45. Long-term loan
(1) Category of long-term loan
In RMB
Items Closing balance Opening balance
77,890,000.00 128,490,000.00
Total 77,890,000.00 128,490,000.00
Notes ：
Other notes，including interest rate range：
46. Bonds payable
(1) Bonds payable
In RMB
Items Closing balance Opening balance
(2) Changes on bonds payable (not including other financial instrument classified as preferred stock and perpetual
capital securities of financial liabilities)
(3) Note to conditions and time of share transfer of convertible bonds
(4) Note to other financial instrument classified as financial liabilities
Basic information of preferred stock, perpetual capital securities and other financial instruments outstanding
issued at period-end Change list of preferred stock, perpetual capital securities and other financial instruments
outstanding issued at period-end
In RMB
Financial Opening period Increase Decrease Closing period
instruments
outstanding Amount Book value Amount Book value Amount Book value Amount Book value
issued
Notes to the basis of other financial instrument classified as financial liabilities
Other notes:
107
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
47. Long-term payable
(1) Long-term payable listed by nature of the account
In RMB
Items Closing balance Opening balance
Other notes:
48. Long term payroll payable
(1) List of long term payroll payable
In RMB
Items Closing balance Opening balance
(2) Changes of defined benefit plans
Present worth of defined benefit plans obligation:
In RMB
Items Amount of the Current Term Amount of the Previous Term
Plan assets:
In RMB
Items Amount of the Current Term Amount of the Previous Term
Net liabilities (net assets) of defined benefit plans
In RMB
Items Amount of the Current Term Amount of the Previous Term
Notes to the influence of the content and related risk of defined benefit plans to the future cash flows, time and
uncertainty of the Company:
Notes to analysis results of major actuarial assumptions and sensibility of defined benefit plans
Other notes:
49. Special payable
In RMB
Items Opening balance Increase Decrease Closing balance Formation reasons
Other notes:
50. Accrued liabilities
In RMB
Items Closing balance Opening balance Formation reasons
108
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Other notes, including related important assumptions and estimates of accrued liabilities:
51. Deferred income
In RMB
Items Opening balance Increase Decrease Closing balance Formation reasons
Items involved in government subsidies:：
In RMB
Amount of newly Amount accrued Related to the
Items Opening balance Other changes Closing balance
subsidy in non-business assets/income
Other notes:
52. Other non-current liabilities
In RMB
Items Closing balance Opening balance
Other notes:
53. Share capital
In RMB
Increase ("+") /decrease ("-") for the current year
Opening Share Closing
balance Issuance of converted from balance
Share donation Others Sub-total
new shares public reserve
funds
Total shares 119,375,000.00 0.00 0.00 0.00 0.00 0.00 119,375,000.00
Other notes:
Remark:On December 10, 2015, the company the original controlling shareholder Military Equipment Group
and Chongqing Jianshe mechanical and electrical Co. Ltd. (hereinafter referred to as the "Jianshe mechanical
and electrical") signed the free transfer of shares agreement , Military Equipment Group transfers 71.13% equity,
which is 84,906,250 state-owned legal-person shareholder shares, to construction of mechanical and electrical for
free. These transfer was approved on December 25, 2015 by the state-owned assets supervision and administration
commission of the state council, the reply of Military Equipment Group transfer the stake of Jianshe mechanical
and electrical for free, ( APR [2015] no.1324). January 26, 2016, the China securities regulatory commission for
approval exemption from the obligation of Jianshe mechanical and electrical offer the acquisition of Chongqing
Jianshe motorcycle. "(regulatory permission [2016] no. 2016), the approval exemption Jianshe mechanical and
electrical for the state-owned assets administrative transfer shares held the company should be to perform its
obligation of making a takeover bid. On March 4, 2016, the company received from the Shenzhen Branch of China securities depository and clearing Co., Ltd. The transformation
was completed on March 2, 2016 by Shenzhen branch of China securities registration and clearing Co., Ltd. The
Jianshe of mechanical and electrical become the controlling shareholder of the company.
54. Other equity instruments
(1) Basic information of preferred stock, perpetual capital securities and other financial instruments outstanding
109
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
issued at period-end (2) Change list of preferred stock, perpetual capital securities and other financial instruments
outstanding issued at period-end
In RMB
Financial Opening balance Increase Decrease Closing balance
instruments
outstanding Amount Book value Amount Book value Amount Book value Amount Book value
issued
Changes, reason of change and basis of relevant accounting treatment of other equity instruments in reporting
period:
Notes:
55. Capital reserves
In ：RMB
Items Opening balance Increase Decrease Closing balance
Capital premium 344,407,741.07 344,407,741.07
Other capital reserves 614,157,553.22 614,157,553.22
Total 958,575,094.29 958,575,094.29
Other notes, including changes and reason of change:
56. Treasury stock
In RMB
Items Opening balance Increase Decrease Closing balance
Other notes, including changes and reason of change:
57. Other comprehensive income
In RMB
Reporting period
Less：Amount
transferred
into profit and
Amount loss in the After-tax After-tax
Opening Less： Closing
Items incurred current period attribute to attribute to
balance Income tax balance
before that recognied the parent minority
expenses
income tax into other company shareholder
comprehensive
income in
prior period
Other notes, including the adjustment of the recognition of initial amount of effective part of the cash flow
110
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
hedging gains and losses transfer into arbitraged items:
58. Special reserves
In RMB
Items Opening balance Increase Decrease Closing balance
Other notes, including changes and reason of change:
59. Surplus reserves
In RMB
Items Opening balance Increase Decrease Closing balance
Statutory surplus
56,724,000.00 56,724,000.00
reserves
Discretionary surplus
68,962,000.00 68,962,000.00
reserves
Total 125,686,000.00 125,686,000.00
Other note, including changes and reason of change
60. Retained profits
In RMB
Items Amount of the Current Term Amount of the Previous Term
Opening balance of retained profits before
-947,520,008.78 -1,188,255,120.98
adjustments
Opening balance of retained profits after
-947,520,008.78 -1,188,255,120.98
adjustments
Add: Net profit attributable to owners of the
8,502,845.42 -70,888,688.67
Parent company
Closing retained profits -939,017,163.36 -1,259,143,809.65
List of adjustment of opening retained profits:
1) RMB 000 opening retained profits was affected by retrospective adjustment conducted according to the
Accounting Standards for Business Enterprises and relevant new regulations.
2) RMB 000 opening retained profits was affected by changes on accounting policies.
3) RMB 000 opening retained profits was affected by correction of significant accounting errors.
4) RMB 000 opening retained profits was affected by changes in combination scope arising from same control.
5) RMB 000 opening retained profits was affected totally by other adjustments.
111
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
61. Revenue and Cost of Sales
In RMB
Amount of the Current Term Amount of the Previous Term
Items
Income Cost Income Cost
Main business 426,970,591.77 355,926,496.01 679,961,831.35 600,424,531.70
Other business 41,206,700.11 38,525,651.32 39,693,871.12 35,687,587.10
Total 468,177,291.88 394,452,147.33 719,655,702.47 636,112,118.80
62. Business tax and surcharges
In RMB
Items Amount of the Current Term Amount of the Previous Term
Business tax 77,605.24 135,173.28
Urban maintenance and construction tax 927,815.98 935,057.56
Educational surtax 494,062.79 666,801.84
Total 1,499,484.01 1,737,032.68
Other notes:
63. Sales expenses
In RMB
Items Amount of the Current Term Amount of the Previous Term
Employee compensation payable 1,990,950.83 9,372,264.70
Depreciation costs 32,025.64 844,807.30
Office costs 123,985.01 985,191.01
Loading and unloading expenses 13,646.99 204,948.28
Transportation cost 3,672,205.43 7,846,195.22
Insurance premium 35,884.13 -212,713.27
Operating funds 10,205.80 97,263.71
Exhibition fees 32,715.57 557,160.43
Advertising expenses 26,600.00 154,830.13
Travel expenses 636,794.69 2,269,211.05
Sale service fees 794,896.71 9,424,008.92
Repair charges 3,244,922.22 3,738,168.57
Warehousing custodian fees 1,342,686.29 3,178,861.28
Other expenses 333,884.93 1,864,572.51
112
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Total a 12,291,404.24 40,324,769.84
Other notes:
64. Administrative expenses
In RMB
Items Amount of the Current Term Amount of the Previous Term
Employee compensation payable 15,276,005.52 27,897,625.54
Depreciation costs 2,169,131.93 4,288,298.87
Office costs 570,834.88 646,878.74
Water and electric charge 328,348.25
Travel expenses 309,697.62 664,302.44
Transportation cost 45,211.30 427,930.39
Insurance premium 5,398.59 47,193.72
Repair charges 723,998.55 4,316,775.28
Consumption of goods and materials 328,172.92 414,597.54
Technological development expenses 5,275,038.66 13,459,265.75
Technological transfer fees 1,284,863.67 1,218,036.48
Taxes 2,062,876.53
Amortization of intangible assets 365,184.06 7,623,334.68
Entertainment expenses 162,536.00 1,164,649.57
Conference fees 86,094.22 97,265.34
Intermediary service expenses 738,601.23 921,018.01
Board meeting fees 39,499.88 219,532.43
Other 7,001,809.46 7,813,551.08
Total 36,444,955.02 71,548,604.11
Other notes：
65. Financial expenses
In RMB
Items Amount of the Current Term Amount of the Previous Term
Interest expenses 17,843,846.03 52,917,339.47
Less: Interest income 2,464,248.32 3,765,077.71
Gains or losses on exchange -115,884.16 -340,415.07
Other 757,378.85 3,116,982.07
113
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Total 16,021,092.40 51,928,828.76
Other notes:
66. Asset impairment loss
In RMB
Items Amount of the Current Term Amount of the Previous Term
I. Bad debt loss -255,000.99 24,379.77
Total -255,000.99 24,379.77
Other notes：
67. Gains on the changes in the fair value
In RMB
Source Amount of the Current Term Amount of the Previous Term
Other notes
68. Investment income
In RMB
Items Amount of the Current Term Amount of the Previous Term
Long-term equity investment income
1,216,436.70 11,722,758.01
calculated by equity method
Total 1,216,436.70 11,722,758.01
Other notes：
69. Non-operating gains
In RMB
Amount of the Current Term Amount of the Previous Term Recorded in the amount of the
Items
non-recurring gains and losses
Government subsidy 449,200.00 945,400.00
Other 10,309.47 296,923.98
Total 459,509.47 1,242,323.98
Government subsidies recorded into current profits and losses：
In RMB
Whether the Whhether Assets-relate
Issuing Amount of Amount of
Items Issuing body Nature impact of special d/income
Reason
subsidies on subsidies -related
current previous
114
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
the current
profit and period period
loss
Recruitment
subsidy of
Humanreso
urce and Related to
200.00
social income
bureau
industrial
enterprises
The funds for
international Related to
270,000.00
market income
development
Industrial
Related to
supporting 449,200.00 616,400.00
income
funds
Special funds
of foreign
Related to
trade and 58,800.00
income
economic
development
Other
Total -- -- -- -- -- 449,200.00 945,400.00 --
Other notes：
70. Non-operational expenditures
In RMB
Items Amount of the Current Term Amount of the Previous Term Carried to current contingent
gain/loss
Loss on disposal of non-current
18,231.69
assets
Including: Loss on disposal of
18,231.69
fixed assets
Other 318,470.87 350,233.87
Total 318,470.87 368,465.56
Other notes：
115
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
71. Income tax expense
(1) Lists of income tax expense
In RMB
Items Amount of the Current Term Amount of the Previous Term
Current income tax expense 300,493.66 1,335,610.09
Total 300,493.66 1,335,610.09
(2) Adjustment process of accounting profit and income tax expense
In RMB
Items June 30, 2016
Total profit 9,080,685.17
Income tax expenses 300,493.66
Other notes
72. Other comprehensive income
Refer to the notes
73. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
In RMB
Items Amount of the Current Term Amount of the Previous Term
Interest income 2,177,892.38 1,989,967.71
Other 2,394,286.13 2,596,691.57
Total 4,572,178.51 4,586,659.28
Other notes：
(2) Other cash paid related to operation
In RMB
Items Amount of the Current Term Amount of the Previous Term
Operation fees such as freight,
4,032,335.96 12,324,768.61
warehousing fees
Administrative expenses such as office
3,662,631.23 6,509,743.09
expenses and traveling expenses
Others 1,593,360.76 8,512,591.88
116
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Total 9,288,327.95 27,347,103.58
Statement on other cash paid related to operation
(3) Other cash received related to investment
In RMB
Items Amount of the Current Term Amount of the Previous Term
Statement on other cash received related to investment
(4) Other cash paid related to investment
In RMB
Items Amount of the Current Term Amount of the Previous Term
Statement on other cash paid related to investment
(5) Other cash received related to financing
In RMB
Items Amount of the Current Term Amount of the Previous Term
Financial note discount received 1,338,108,850.64 778,707,557.01
Total 1,338,108,850.64 778,707,557.01
Statement on other cash received related to financing
(6) Other cash paid relevant to financing activities
In RMB
Items Amount of the Current Term Amount of the Previous Term
Payment of due financing notes 1,051,057,474.94 475,011,000.00
Decrease of note deposit 38,416,143.30 47,503,703.95
Total 1,089,473,618.24 522,514,703.95
Other notes：
74. Supplementary information to cash flow statement
(1) Information of net profit to net cash flows generated from operating activities
In RMB
Items Amount of the Current Term Amount of the Previous Term
1. Net profit adjusted to cash flows from
-- --
operating activities
Net profits 8,780,191.51 -70,759,025.16
117
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Add：Provision for assets impairment -255,000.99 24,379.77
Depreciation of fixed assets, oil and gas
16,439,201.10 33,443,967.73
assets and consumable biological assets
Amortization of intangible assets 365,184.06 7,623,334.68
Amortization of Long-term deferred
727,251.60 1,913,948.97
expenses
Loss on disposal of fixed assets, intangible
18,231.69
assets and other long-term deferred assets
Financial expenses ("-" for income) 16,021,092.40 47,258,828.76
Investments losses ("-" for gains) -1,216,436.70 -11,722,758.01
Decreases in inventories ("-" for increases) -7,793,356.21 -2,475,256.76
Decreases in operating payables ("-" for
53,946,293.67 28,732,283.15
increases)
Increases in operating payables ("-" for
-25,074,682.65 -1,596,191.76
decreases)
Net cash flows from operating activities 61,939,737.79 32,461,743.06
2. Investing and financing activities that do
-- --
not involving cash receipts and payment:
3. Net increase in cash and cash equivalents -- --
Closing balance of cash 116,473,397.62 33,855,181.33
Less: Opening balance of cash 23,643,515.81 35,555,585.06
Net increase in cash and cash equivalents 92,829,881.81 -1,700,403.73
(2) Net Cash paid of obtaining the subsidiary
In RMB
Amount
Of which --
Of which --
Of which --
Notes:
(3) Net Cash receive of disposal of the subsidiary
In RMB
Amount
Of which --
Of which --
Of which --
Notes:
118
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
(4) Cash and cash equivalents
In RMB
Items Closing balance Opening balance
I.Cash 116,473,397.62 23,643,515.81
Including ：Cash on hand 49,452.77 70,909.87
Bank deposit on demand 116,373,944.85 23,572,605.94
III. Closing balance of cash and cash
116,473,397.62 23,643,515.81
equivalents
Notes:
75. Note of statement of changes in the owner's equity
Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.:
76. The assets with the ownership or use right restricted
In RMB
Items Closing book value Restricted reason
Provide a guarantee for issuance of bank
Monetary capital 240,601,099.64
acceptance bills
Total 240,601,099.64 --
Notes:
77. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Closing foreign currency Closing convert to RMB
Items Exchange rate
balance balance
Including :USD 452.03 6.4928 2,934.94
Notes:
(2) Note to oversea entities including: for significant oversea entities, shall disclose main operating place,
recording currency and selection basis, if there are changes into recording currency, shall also disclose the reason.
□ Applicable √Not applicable
119
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
78. Arbitrage
Arbitrage According to arbitrage category to disclose arbitrage item, relevant arbitrage tools and the
arbitraged risk qualitative and quantitative information:
79.Other
VIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
In RMB
Income of Net profits of
Time and
Cost of Way to gain Recognition acquiree acquiree
place of Proportion of
Name gaining the the stock Pruchase date basis of during the during the
gaining the stock rights
stock rights rights purchase date purchase date purchase date
stock right
to period-end to period-end
Other notes：
(2) Combined cost and goodwill
In RMB
Combined cost
Notes to determination method, consideration and changes of fair value of combined cost:
The main formation reason for the large goodwill:
Other notes:
(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
Fair value on purchase date Book value on purchase date
The recognition method of the fair value of identifiable assets and liabilities
Contingent liability of acquiree undertaken by business merger
Other notes:
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value measured
again、
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and
gaining the control during the reorting period
□ Yes √ No
120
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
(5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value of liabilities
of the acquiree at acquisition date or closing period of the merge
(6) Other notes:
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
In RMB
Income from Net profits
the from the
Recognition Income Net profits
period-begin reporting
Proportion of Combination basis of during the during the
Name Basis to the period to the
the profits date combination period of period of
combination combination
date comparison comparison
date of the date of the
combination combination
Notes:
(2) Combination cost
In RMB
Combination cost
Notes to contingent consideration or other changes:
Other notes:
In RMB
Combination date Last closing period
Contingent liabilities of the combined party undertaken in combination
Other notes:
3. Counter purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of
the listed companies whether constituted a business and its basis, the determination of the combination costs, the
amount and calculation of adjusted rights and interests in accordance with the equity transaction process.
121
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √ No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
reporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of
liquidation) and relevant information:
6. Other
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Main operating Nature of Proportion of shareholding
Name Registration place Way of gaining
place business Directly Indirectly
Production and
Air Conditioner sale of
Chongqing Chongqing 100.00% Investment
Co. automotive
air-conditioners
Domestic sales of Business
Shanghai Jianshe motorcycles and combination
Shanghai Shanghai 51.00%
Motorcycle the relevant under common
accessories control
Notes: holding proportion in subsidiary different from voting proportion:
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the
voting rights not been controlled investee:
Significant structure entities and controlling basis in the scope of combination:
Basis of determine whether the Company is the agent or the principal:
Other notes:
122
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
(2) Significant not wholly owned subsidiary
In RMB
The profits and losses Declaring dividends Balance of minority
Shareholding proportion
Name arbitrate to the minority distribute to minority shareholder at closing
of minority shareholder
shareholders shareholder period
Shanghai Jianshe
49.00%
Motorcycle Co., Ltd.
Holding proportion of minority shareholder in subsidiary different from voting proportion:
Other notes:
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Closing balance Opening balance
Non-curr Non-curr
Non-curr Current Total Non-curr Current Total
Name Current Total ent Current Total ent
ent Liabilitie Liabilitie ent Liabilitie Liabilitie
assets assets Liabilitie assets assets Liabilitie
assets s s assets s s
s s
Shanghai
Jianshe
11,472,0 7,714,01 19,186,0 17,024,8 17,024,8 8,774,35 7,988,92 16,763,2 15,168,1 15,168,1
Motorcy
19.94 4.69 34.63 53.29 53.29 5.60 8.55 84.15 15.23 15.23
cle Co.,
Ltd.
In RMB
June 30, 2016 June 30, 2015
Total Total
Name Operation Operating Operation Operating
Net profit comprehensi Net profit comprehensi
revenue cash flow revenue cash flow
ve income ve income
Shanghai
Jianshe
7,505,633.73 566,012.42 566,012.42 1,754,089.07 7,548,232.74 264,619.41 264,619.41 869,848.00
Motorcycle
Co., Ltd.
Other notes:
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
(5) Provide financial support or other support for structure entities incorporate into the scope of consolidated
financial statements
Other notes:
123
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
(1) Note to owner’s equity share changed in subsidiary
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity of the
parent company
In RMB
Other notes
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Shareholding ratio (%) Accounting
treatment
Name of joint methods for the
Domicile of
venture or Registered place Business nature
primary operation Directly Indirectly investments in
associate
joint ventures or
associates
Production and
Chongqing sales of
Pingshan TK motorcycles and 49.00% Equity method
Carburettor Co., the relevant
Ltd. Chongqing Chongqing accessories
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting
rights but does not have a significant impact:
（2）Major joint ventures and associates
In RMB
Closing balance/June 30, 2016 Opening balance/June 30, 2015
Chongqing Pingshan Taikai Chongqing Jiansheyamaha
Current assets 160,614,325.51 164,628,842.24
Including：Cashand cash equivalents 102,589,181.55 97,262,431.46
Not-current assets 25,508,048.10 27,061,331.37
Total assets 186,122,373.61 191,690,173.61
Current Liabilities 20,502,330.42 21,524,222.37
Non-Current Liabilities 0.00
Total Liabilities 20,502,330.42 21,524,222.37
Equity attributable to the shareholders of 165,620,043.19 164,683,577.62
124
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
parent company
Shares in net assets calculated according to
81,153,821.16 80,694,953.05
the shareholding ratios
The fair values of equity investments in joint
81,197,752.83 83,381,316.13
ventures with a public offer
Operating income 60,652,899.25 59,051,666.78
Financial expenses -724,443.07 -1,148,019.36
Income tax expenses 557,822.50 601,274.45
Net profit 2,482,523.87 1,943,489.27
Total comprehensive income 2,482,523.87 1,943,489.27
Dividends received from joint ventures for
3,400,000.00 2,000,000.00
the current year
Other notes
(3) Main financial information of significant associated enterprise
In RMB
Closing balance/June 30, 2016 Opening balance/June 30, 2015
Other notes
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
Closing balance/June 30, 2016 Opening balance/June 30, 2015
Joint venture： -- --
The total of following items according to the
-- --
shareholding proportions
Associated enterprise: -- --
The total of following items according to the
-- --
shareholding proportions
Other notes:
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the
Company
(6) The excess loss of joint venture or associated enterprise
In RMB
Name The cumulative recognized The derecognized losses or the The noncumulative
125
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
losses in proevious share of net profit in reporting unrecognized losses in reporting
accumulatively derecognized period period
Other notes:
(7) The unrecognized commitment related to joint venture investment
(8) Contingent liabilities related to joint venture or associated enterprise investment
4. Significant common operation
Main operating Proportion /share portion
Name plance registration Registration place Business nature
Directly Indirectly
place
Note to holding proportion or share portion in common operation different from voting proportion:
Basis of common operation as a single entity, classify as common operation Other notes:
Other notes
5. Equity of structure entity not including in the scope of consolidated financial statements
Related notes to structure entity not including in the scope of consolidated financial statements
6.Other
X. The risk related financial instruments
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Closing fair value
Items Fair value measurement Fair value measurement Fair value measurement
Total
items at level 1 items at level 2 items at level 3
I. Consistent fair value
-- -- -- --
measurement
II Inconsistent fair
-- -- -- --
valuemeasuement
126
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
3. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 2
4. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 3
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and
closing book value of consistent fair value measurement items at level 3
6. Explain the reason for conversion and the policy governing when the conversion happens if conversion
happens among consistent fair value measurement items at different levels
7. Changes in the valuation technique in the current period and the reason for change
8. Fair value of financial assets and liabilities not measured at fair value
9. Other
XII. Related party and related Transaction
1. Information related to parent company of the Company
Name of the parent Shareholding ratio in Voting ratio in the
Registered place Business nature Registered capital
company the Company (%) Company (%)
chongqing
Production and sales
construction
Chongqing of motorcycles and 180.30 million 71.13% 71.13%
mechanical and
parts
electrical Co. Ltd.
Remark: after the restructuring, the shareholder changes to Jianshe mechanical and electrical., CSGS is still
the actual controllers which has not be changed, and the ultimate controller of the Company is The
State-owned Assets Supervision and Administration Commission of the State Council.
Other notes：
2. Subsidiaries of the Company
See the Note 7 Equity in Other Entities for the details of subsidiaries of the Company
127
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
3. Information on the joint ventures and associated enterprises of the Company
The details of significant joint venture and associated enterprise of the Company
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period, or form balance due to related party transactions in previous period:
Name of joint venture or associate Relationship with the company
Chongqing Jianshe Yamaha Motor., Ltd.("Chongqing Jianshe
Original Joint venture, now Joint venture of parent company
Yamaha ")
Zhuzhou Jianshe Yamaha Motor., Ltd.("Zhuzhou Jianshe
Original Joint venture, now Joint venture of parent company
Yamaha")
Chongqing Pingshan TK Carburettor Co., Ltd.("Pingshan TK") Joint venture
Chongqing Tongsheng Machinery Co., Ltd.("Tongsheng
Original associates venture, now associates of parent company
Jianshe")
Chongqing Fuyeda Property Management Co., Ltd.("Fuyeda") Original associates venture, now associates of parent company
Other notes
4.Other related parties of the Company
Name of other related parties Relationship with the Company
Chongqing Jianshe Industrial (Group) Co., Ltd. ("Jianshe
industry ") Under the common control of the same party
China South Industries Group Finance Co., Ltd. ("South Finance
Company ") Under the common control of the same party
Chongqing Jianxing Machinery Manufacturing Co., Ltd.
("Jianxing Machinery ") An associate of a subsidiary of a controlling shareholder
Chongqing Changan Motor Joint Stock Limited Company
("Changan Motor ") Under the common control of the same party
Chongqing Changan Suzuki Motor Co., Ltd. ("Changan Suzuki
") Under the common control of the same party
Hebei Changan Motor Co., Ltd. ("Hebei Changan ") Under the common control of the same party
Nanjing Changan Motor Co., Ltd. ("Nanjing Changan ") Under the common control of the same party
Hefei Changan Motor Co., Ltd. ("Nanjing Changan ") Under the common control of the same party
Chongqing Nanfang Motorcycle Co., Ltd. ("Nanfang Motorcycle
") Under the common control of the same party
Chongqing Jianshe Construction Engineering Co., Ltd.
("Construction Company ") Under the common control of the same party
Jiangmen Qingqi Huanan Motorcycle Co., Ltd. ("Jiangmen
Qingqi ") Under the common control of the same party
Chongqing Changan Motor Customer Service Co., Ltd.
("Changan Motor Customer Service ") Under the common control of the same party
China Jialing Industrial Joint Stock Limited Company (Group) Under the common control of the same party
128
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
("Jialing Industry ")
Chongqing North Construction import and export trade co.ltd
(“import and export company) Under the common control of the same party
Chongqing jianshe sales co. Ltd(“sales company) Under the common control of the same party
Hafei Motor share company(“Hafei motor”) Under the common control of the same party
Changan Ford Motor Co.Ltd Harbin branch (Changan Ford
Harbin branch) An Joint venture a subsidiary of a controlling shareholder
Harbin dongan Motor Power shares Co. Ltd(Harbin dongan
power) Under the common control of the same party
North Inter Airconditioner Co.Ltd (North Inter) Under the common control of the same party
Other notes
5. List of related-party transactions
(1) Information on acquisition of goods and reception of labor service
Acquisition of goods and reception of labor service
In RMB
Occurred current Trading limit Over the trading limit Occurred in previous
Related party Content
term approved or not? term
Purchasing of
Jianshe Industry 971,500.42 11,563,680.95
goods
Purchasing of
Jianxing Machinery 12,583,203.41
goods
Purchasing of
Chongqing Yamaha 21,825,031.18
goods
Purchasing of
China Jialin 505.12
goods
Purchasing of
Pingshan Taikai 3,556,461.49
goods
Tongsheng Purchasing of
2,287,159.23
Construction goods
Fuyeda Accept labor 216,534.54
Purchasing of
Jianshe Industry 44,807.68
goods
Import & export Co. Jianshe Industry 42,304,131.95
Jianshe mechanical
Jianshe Industry 8,786,404.73
and electrical
Sales of goods and services
In RMB
Subjects of the related
Related parties Occurred current term Occurred in previous term
transactions
Zhuzhou Jianshe Yamaha Sales of goods 3,916,527.72
129
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Chongqing Jianshe Yamaha Sales of goods 112,536,206.37
Changan Motor Sales of goods 181,578,578.06 149,688,290.88
Tongsheng Jianshe Sales of goods 778,299.00
Jiangmen Qingqi Sales of goods 107,288.20
China Jialin Sales of goods 218.44
Jianshe mechanical and
Sales of goods 1,844,995.60
electrical
Notes
(2) Related trusteeship/contract
Lists of related trusteeship/contract
In RMB
Name of the Name of the Income
entruster/Contract entrustee/Contrac Type Initial date Due date Pricing basis recognized in the
ee tor reporting period
Notes
Lists of entrust/contractee：
In RMB
Name eof the Name of the Charge
entruster/Contract entrustee/Contrac Type Initial date Due date Pricing basis recognized in the
ee tor reporting period
Notes:
(3) Information of related lease
The Company was lessor:
In RMB
The lease income confirmed in The lease income confirmed in
Name of lessee Category of leased assets
this year last year
Jianshe mechanical and
Workshop Equipment 1,844,995.60
electrical
The Company was lessee：
In RMB
The lease income confirmed in
Lessor Category of leased assets Category of leased assets
this year
Jianshe mechanical and
Workshop 1,131,405.41
electrical
Notes:
(4) Related-party guarantee
130
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
The Company was guarantor
In RMB
Execution accomplished
Secured party Guarantee amount Start date End date
or not
The Company was secured party
In RMB
Execution accomplished
Guarantor Guarantee amount Start date End date
or not
Notes
(5) Inter-bank lending of capital of related parties：
In RMB
Amount borrowed and
Related party Initial date Due date Notes
loaned
Borrowed
Loaned
(6) Related party asset transfer and debt restructuring
In RMB
Related party Content Occurred current term Occurred in previous term
(7) Rewards for the key management personnel
In RMB
Items Occurred current term Occurred in previous term
(8) Other related transactions
6. Receivable and payables due with related parties
（1）Receivables
In RMB
At end of term At beginning of term
Projects Related parties
Book balance Bad debt provision Book balance Bad debt provision
（2）Payables
In RMB
131
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Items Related party Closing book value Openting book value
Account payable
Jianxing Machinery
Pingshan Taikai
Chongqing Jianya
Tongsheng Jianshe
Jianshe Industry 77,720.44
Advance Payments
Changan SUZUKI
Other account payable
Jianshe Industry 4,648,674.19
Fuyeda 42,136.54
The Construction Company
132
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
7. Related party commitment
8. Other
XIII. Stock payment
1. The Stock payment overall situation
□ Applicable √ Not applicable
2. The Stock payment settled by equity
□ Applicable √ Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
5. Other
XIV. Commitments
1.Significant commitments
Significant commitments at balance sheet date
1. Commitment for reorganization and transfer the assets
As of December 31, 2015, the reorganization of the company transfer the material assets and liability to the
original controlling shareholder Military Equipment Group of assignment of the motorcycle business is mainly the
material assets reorganization of assets and liabilities, has not yet been involved the transfer formalities of assets
and liabilities. Chongqing Jianshe Motorcycle made a commitment in electromechanical subscribed deadline,
which stipulated in the articles of association, no later than December 31, 2016, company will be in accordance
with the relevant laws and regulations together with the construction of mechanical and electrical package to
complete the transaction assets equity, land, property, within the scope of the delivery of all machinery and
equipment, vehicles and other assets’ transfer, registration change under the name of construction of
electromechanical company through related legal procedures; In the above prior to the expiration of the period, all
the creditors in the debt transfer agreement letter, company will complete the work transfer formalities of all the
relevant liabilities.
Chongqing Jianshe Motorcycle should coordinate with and Jianshe Mechanical and Electric to extend the period
of capital funding or compensate the capital funding at the expense of an equivalent asses for Mechanical and
Electric , if Chongqing Jianshe Motorcycle and Jianshe Mechanical and Electric will not able to fulfill the
requirement of capital funding in accordance with the signed with
Jianshe Mechanical and Electric ; Chongqing Jianshe Motorcycle and Jianshe Mechanical and Electric will bear
the corresponding responsibilities agreed in if the abovementioned two
parties cannot undertake the liability transfer as stipulated.
The company has proposed a solution in terms of debt without creditors’ permission. According to mutually consented between Chongqing Jianshe Motorcycle and Jianshe
133
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Mechanical and Electric , Chongqing Jianshe Motorcycle will notify construction and machinery to liquidate the
debt directly if creditors ask Chongqing Jianshe Motorcycle to liquidate the debt as promised. Otherwise, Jdjs will
deal with the credits’ debt through Chongqing Jianshe Motorcycle . The aforesaid debt must be undertaken by
Chongqing Jianshe Motorcycle , and Jianshe Mechanical and Electric should bear the risk of losses arising from
paying off the debt by Chongqing Jianshe Motorcycle (including but not limited to the principal and interest of
loans, default interest and penalty due to outside parties, and tax).
2.About the specification of related party transactions
After the completion of the reorganization, enterprise will be as much as possible to avoid and decrease related
party transactions with listed companies. As for some related party transactions that cannot be avoided or have
reasonable grounds, enterprise and its control will sign the agreement with those listed companies to fulfill the
legitimate procedures and in accordance with the provisions of the relevant laws, regulations and other normative
documents to perform the related internal decision-making procedures for approval and in a timely manner to
fulfill the obligation of information disclosure in order to ensure the pricing of related party transactions is fair and
reasonable and no illegal transfer of listing corporation's funds, profits, or the use of such transactions that is
harmful to the legitimate rights and interests of the listing corporation and its shareholders. Military Equipment
Group is in violation of the above commitments that cause damage to the listing corporation, Military Equipment
Group will compensate the losses suffered by the listing corporation.
3 The dissociated guarantee matters and provide counter-guaranty
The company promises that after the expiration of the guarantee period, which stipulated in the contract of
guarantee, company will relieve of all warranties from mechanical and electrical construction company including
its subsidiary. Moreover, the company made commitments are as follows:
(1) After the major asset sale, the construction of Chongqing motorcycle (air conditioning company) provides
guarantee on the above, if approved by the general meeting of shareholders, Jianshe mechanical and electrical
company provides an equal amount of counter guarantee. (2) As a result of Jianshe of electrical and mechanical
company violates of the above commitments to the construction of Chongqing Jianshe motorcycle that results in
damages or adverse consequences, Jianshe electrical and mechanical will bear all the economic and legal
responsibilities.
2. Contingency
(1) Significant contingency at balance sheet date
By June 30, 2016 the company does not need to discourse
(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.
3. Other
XV. Events after balance sheet date
1. Significant events had not adjusted
In RMB
Influence number to the
Reason of unable to estimate
Items Conternt Financial position and operating
influence number
results
134
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
On December 10, 2015,
Military Equipment Group
which is an original
controlling shareholder And
Chongqing Jianshe Machinery
Co., Ltd. (hereinafter referred
to as the "Jianshe mechanical
and electrical") signed
[Unpaid shares transfer
agreement], Military
Equipment Group transferred
the holding 71.13% of
stakes(corresponding to
84906250 shares of
state-owned legal person
shares to the Chongqing
Jianshe Mechanical and
Electric Co., Ltd., for free of
charge. State-owned Assets
Supervision and
Administration Commission
of the State Council approved
Transfer of shares
that equity transfer by [written
reply to an issue which is
Military Equipment Group
transferred the holding shares
of Chongqing Jianshe
Mechanical and Electric Co.,
Ltd for free of charge] (assets
property rights [2015] no.
2015) on December 25, 2015,
and China Securities
Regulatory Commission
[written reply to examined and
approved exemption from the
obligation about Chongqing
Jianshe mechanical and
electrical Co., Ltd offered to
takeover Chongqing Jianshe
motorcycle Co., Ltd.]
(Regulatory permission [2016]
2016) The obligation of shares
approved and remit offer
acquisition obligation which is
135
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
caused by the state-owned
assets institutional transferred
the holding shares of company
on 26 January, 2016.
Chongqing Jianshe Machinery
Co.,Ltd accepted [Securities
transfer registration
confirmation] which is
provided by China Securities
Depository and Clearing
Company Limited, CSDCC
Shenzhen branch on 4
March,2016, and Equity
transfer registration
procedures has been
completed at China Securities
Depository and Clearing
Company Limited, CSDCC
Shenzhen branch on 2 March,
2016.
2. Profit distribution
3. Sales return
4. Notes of other significant events
XVI. Other significant events
1. The accounting errors correction in previous period
（1）Retrospective restatement
In RMB
Name of the influenced report
Content Processing program Accumulative impact
items during comparison period
（2）Prospective application
Content Processing program Reason of adopting prospective application
136
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
2. Debt restructuring
3. Replacement of assets
(1) Non-monetary assets exchange
(2) Other assets replacement
4. Pension plan
5. Discontinuing operation
In RMB
Termination of
the business
Income tax profits
Items Income Expenses Total profit Net profit
expenses attributable to the
parent company
owner
Other notes:
6. Segment information
(1) Recognition basis and accounting policies of reportable segment
(2) The financial information of reportable segment
In RMB
Items Offset during segments Total
(3) There was no reportable segment, or the total amount of assets and liabilities of each part of reportable
segment, shall disclose the reason.
(4) Other notes
7. Other important transactions and events have an impact on investors’ decision-making
8. Other
XVII. Notes of main items in the financial statements of the Company
1. Accounts receivable
(1) Accounts receivable classified by category
In RMB
137
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Closing balance Opening balance
Provision for bad
Category Book balance Book balance Provision for bad debts
debts Book Book
Proportion Proportion balance Proportion Proportion balance
Amount Amount Amount Amount
(%) (%) (%) (%)
Accounts receivable
with provision for
bad debt made on a 2,241,92 1,727,55 514,369.8 2,255,1 1,727,559
100.00% 77.06% 100.00% 76.61% 527,570.36
portfolio with similar 9.72 9.88 4 30.24 .88
risk credit
characteristics basis
2,241,92 1,727,55 514,369.8 2,255,1 1,727,559
Total 100.00% 77.06% 100.00% 76.61% 527,570.36
9.72 9.88 4 30.24 .88
Accounts receivable with insignificant single amount but large risks of groups after grouping by credit risks
characteristics at the end of reporting period.
□ Applicable √ Not applicable
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □Not applicable
In RMB
Closing balance
Aging
Account receivable Provision for bad debts Proportion %
Subitem wihin 1 year
Within 6 months(Including 6
508,832.14
months)
6－12 months
Subtotal of within 1 year 508,832.14
1-2 years 6,153.00 615.30 10.00%
Over 5 years 1,726,944.58 1,726,944.58 100.00%
Total 2,241,929.72 1,727,559.88 77.06%
Notes: In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
138
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
(2) Bad debt provision withdrawal, reversed or recovered in the report period
The amount of bad debt provision was RMB 0.00; the amount of reversed or recovered bad debt provision in the
report period was of RMB 0.00.
Significant amount of reversed or recovered bad debt provision
In RMB
Name Amount Method
（3）Particulars of the actual verification of account receivable during the reporting period
In RMB
Items Amount
Of Which : significant actual verification of accounts receivable：
In RMB
Whether occurred
Name Nature Amount Reason Procedure beause of related
party transactions
Notes：
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
(5) Derecogniziton of account receivable due to the transfer of financial assets
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
Other notes:
2. Other account receivable
(1) Other account receivable classified by category
In RMB
Closing balance Opening balance
Provision for bad
Book balance Book balance Provision for bad debts
Category debts Book Book
Proportio Proportio balance Proportio Proportion balance
Amount Amount Amount Amount
n% n% n% %
Other receivables
185,898, 4,232,36 181,666,2 257,837 4,232,368 253,605,61
with provision for 100.00% 2.28% 99.84% 1.64%
595.86 8.84 27.02 ,987.95 .84 9.11
bad debt made on a
139
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
portfolio with similar
risk credit
characteristics basis
Other receivables
with insignificant
single amount and 405,125 405,125.3
0.16% 100.00%
provision for bad .35 5
debt made on an
individual basis
185,898, 4,232,36 181,666,2 258,243 4,637,494 253,605,61
100.00% 2.28% 100.00% 1.80%
Total 595.86 8.84 27.02 ,113.30 .19 9.11
Other accounts receivable with insignificant single amount but large risks of groups after grouping by credit risks
characteristics at the end of reporting period
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
√Applicable □ Not applicable
In RMB
Closing balance
Aging
Other account receivable Provision for bad debts Proportion %
Subitem within 1 year
1-6 months (Including 6 months) 181,650,437.03
6-12 months
Subwithin 1 year 181,650,437.03
1-2 years 13,950.24 1,395.02 10.00%
4-5 years 16,173.85 12,939.08 80.00%
Over 5 years 4,218,034.74 4,218,034.74 100.00%
Total 185,898,595.86 4,232,368.84 2.28%
Notes:
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
□ Applicable √ Not applicable
140
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
(2) Bad debt provision withdrawal, reversed or recovered in the report period
The amount of bad debt provision was RMB 0.00, the amount of reversed or recovered bad debt provision in the
report period RMB 0.00.
Significant amount of reversed or recovered bad debt provision
In RMB
Name Amount Method
（3）Particulars of the actual verification of other accounts receivable during the reporting period
In RMB
Items Amount
Of which significant actual verfication of other accounts receivable：
In RMB
Whether occurred
Name Nature Amount Reason Procedure bacause of related
party transactions
Notes ：
（4）Other account receivable classified by account nature
In RMB
Property of account receivable Closing book value Opening book value
Current account 179,988,991.12 249,230,349.24
Petty cash and borrowings with small amount 1,691,570.00 4,565,415.08
Fully provided provision for bad debts
4,218,034.74 4,218,034.74
regarding long-term receivables and payables
Other 229,314.24
Total 185,898,595.86 258,243,113.30
（5）The top five other account receivable classified by debtor at period end
In RMB
Closing balance of
Name Nature Closing balance Aging Proportion %
bad debt provision
The top five other
recievables by the
141
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
credit balance as at
June 30, 2016 total
（6）Accounts receivable involved with government subsidies
In RMB
Project of government Estimated received time,
Nameof units Closing balance Closing age
subsidies amount and basis
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
Other Notes：
3. Long-term equity investment
In RMB
Closing balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investments in
168,160,000.00 168,160,000.00 168,160,000.00 168,160,000.00
subsidiaries
Investments in
associates and 81,197,752.83 81,197,752.83 83,381,316.13 83,381,316.13
joint ventures
Total 249,357,752.83 249,357,752.83 251,541,316.13 251,541,316.13
（1） Investments in subsidiaries
In RMB
Provision for Balance as at June
30, 2015 of
Investee Opening balance Increase Decrease Closing balance impairment in the
provision for
period impairment
Shanghai Jianshe
Motorcycle Co., 8,160,000.00 8,160,000.00
Ltd.
Chongqing Jianshe
Automobile A/C 160,000,000.00 160,000,000.00
Co., Ltd.
Total 168,160,000.00 168,160,000.00
142
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
（2）Investments in associates and joint ventures
In RMB
Increases/decreases in the current year Balance
profits as at June
and losses 30, 2015
on Declarati
Opening Additiona Decrease Other Impairme Closing of
Investee investmen Changes on of cash
Balance l in comprehe balance provision
ts in other nt Other
investmen investmen nsive dividends
recognize equity provision for
t t income
d under or profits
impairme
the equity
method nt
1. Joint ventures
Chongqin
g
Pingshan
83,381,31 1,216,436 3,400,000 81,197,75
TK
6.13 .70 .00 2.83
Carburett
or Co.,
Ltd.
83,381,31 1,216,436 3,400,000 81,197,75
Subtotal
6.13 .70 .00 2.83
2．Associates
83,381,31 1,216,436 3,400,000 81,197,75
Total
6.13 .70 .00 2.83
（3）Other Notes
4. Operation income and operation cost
In RMB
Occurred current term Occurred in previous term
Items
Income Cost Income Cost
Major business turnover 182,250.38 262,365,276.89 275,834,268.53
Other business income 336,824,318.43 313,368,020.89 292,432,167.06 267,857,217.64
Total 336,824,318.43 313,550,271.27 554,797,443.95 543,691,486.17
Other notes：
5. Investment income
In RMB
Items Occurred current term Occurred in previous term
143
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
Long-term equity investment gains on equity
1,216,436.70 11,722,758.01
basis
Total 1,216,436.70 11,722,758.01
6.Other
XVIII. Supplementary Information
1. Details of non-recurring gain/loss of the term
√ Applicable □ Not applicable
In RMB
Items Amount Remarks
Gains and losses included in the current
period of government subsidies, excluding
those government grants which are closely
449,200.00
related to normal business and in line with
national policy , or in accordance with fixed
standards or quantities
Other non-business income and expenditures
-308,161.40
other than the above
Total 141,038.60 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in
the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said
explanatory announcement as a recurrent gain/loss item
□ Applicable √Not applicable
2. Net income on asset ratio and earning per share
In RMB
Earnings per share
Profit of the report period Net income on asset, weighted Diluted earnings per
Basic earnings per share
share
Net profit attributable to common
3.32% 0.0712 0.0712
shareholders of the Company
Net profit attributable to the
common owners of the PLC after
3.26% 0.0700 0.0700
deducting of non-recurring
gains/losses
144
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
3. Differences between accounting data under domestic and overseas accounting standards
(1) Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese
accounting standards
□ Applicable √ Notapplicable
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards
□ Applicable √ Not applicable
(3) Explain reasons for the differences between accounting data under domestic and overseas accounting
standards, for audit data adjusting differences had been foreign audited, should indicate the name of the foreign
institutions
4.Other
145
Chongqing Jianshe Motorcycle Co., Ltd. The Semi-annual Report 2016
X. Documents available for inspection
I. The semi-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 Company’s documents and public notices publicized by the presses designated by
China Securities Regulatory Commission in the report period;
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