承德大路股份有限公司 2012 年半年度报告全文
承 德 大 路 股 份 有 限 公 司
CHENGDE DALU CO．，LTD.
SEMI-ANNUAL REPORT 2012
(Full-Text)
（January – June 2012）
August 2012
Chengde China
1
承德大路股份有限公司 2012 年半年度报告全文
Contents
I. Important Notice ------------------------------------------------------------------------------------------3
II. Company Profile------------------------------------------------------------------------------------------3
III. Summary of Accounting Highlights and Business Highlights----------------------------------4
IV. Changes in Share Capital and Particulars about Shareholders--------------------------------6
V. Directors, Supervisors and Senior Executives -------------------------------------------------------9
VI. Report of the Board of Directors --------------------------------------------------------------------13
VII. Significant Events -------------------------------------------------------------------------------------20
VIII. Financial Report --------------------------------------------------------------------------------------35
IX. Documents for Reference -----------------------------------------------------------------------------145
2
承德大路股份有限公司 2012 年半年度报告全文
SEMI-ANNUAL REPORT 2012
I. Important Note
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of
Chengde Dalu Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no
any fictitious statements, misleading statements, or important omissions carried in this report, and
shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of the
whole contents.
All directors are attending the Meeting for deliberation and approval for the semi-annual report.
Financial report of this semi-annual repot has not been audited by CPA.
Lin Lixin, person in charge of the Company, Zhao Yongsheng, person in charge of accounting
works and Liu Guofeng, person in charge of accounting institution (accounting officer) hereby
confirm the truthfulness and completeness of the Financial Report in the Semi-annual Report 2012.
II. Company Profile
(I) Company information
Short form for A-share Short form for B-share 200160
Code for A-share Code for B-share ST Dalu-B
Listing stock exchange Shenzhen Stock Exchange
Legal Chinese name of
承德大路股份有限公司
the Company
Abbr. of legal Chinese
ST 大路 B
name of the Company
Legal English name of the
CHENGDE DALU CO．，LTD.
Company
Abbr. of legal English
name of the Company
Legal English name of the
Lin Lixin
Company
Abbr. of legal English
Xiabancheng Town, Chengde County, Hebei
name of the Company
Post Code of registered
067400
add.
Office Add. Xiabancheng Town, Chengde County, Hebei
Post Code of office add. 067400
Internet website http://www.dxtex.com
E-mail dxgs-9@ heinfo.net
(II) Contact person and ways
Secretary of the Board Rep. of security affairs
Name Lin Lixin
Xiabancheng Town, Chengde
Contact adds.
County, Hebei
Tel. 0314-3115048
Fax. 0314-3111475
E-mail llx5048@126.com
3
承德大路股份有限公司 2012 年半年度报告全文
(III) Information disclosure and place for preparation
Newspapers Designated for
Domestic: Securities Times; Overseas: Hong Kong Commercial Daily
indormation disclosure
Website desinated by CSRC for
http://www.cninfo.com.cn
publishing semi-annual report
place for preparation of semi-annual
Security department of the Company
report
III. Major accounting data and business abstract
(I) Major accounting data and financial indexes
Whether retroactive adjusted on previous financial report or not
□Yes √No □Non-applicable
Major accounting data
Increase/decrease in this
Reporting period (Jan.
Major accounting data Same period of last year report period
to June)
year-on-year (%)
Total business revenue(RMB) 481,640.00 21,250.00 2,166.54%
Business profit(RMB) -7,711,444.59 -5,254,012.57 -46.77%
Total profit(RMB) -17,630,458.39 -4,385,273.08 -302.04%
Total business revenue(RMB) -15,704,981.50 -4,069,051.79 -285.96%
Business profit(RMB) -7,740,409.84 -4,937,791.28 -56.76%
Total profit(RMB) 2,360,386.21 -20,647,074.69 111.43%
Increase/decrease in this
End of this period End of last period period-end over that of
last period-end (%)
Total assets(RMB) 222,919,812.62 219,022,670.81 1.78%
Owners equity attributable to
shareholders of the listed -39,587,020.07 -23,882,038.57 -65.76%
company(RMB)
Share capital(Share) 706,320,000.00 706,320,000.00
Major financial indexes
Increase/decrease in this
Reporting period (Jan.
Major financial indexes Same period of last year report period
to June)
year-on-year (%)
Basic earnings per share
-0.022 -0.006 -266.67%
(RMB/Share)
Diluted earnings per share
-0.022 -0.006 -266.67%
(RMB/Share)
Basic EPS after deducting
non-recurring gains/losses -0.011 -0.007 -57.14%
(RMB/Share)
Fully diluted ROE (%)
Weighted average ROE (%)
Fully diluted ROE after deducting
non-recurring gains/losses (%)
Weighted average ROE after
deducting non-recurring gains/losses
(%)
4
承德大路股份有限公司 2012 年半年度报告全文
Net cash flow per share arising from
0.003 -0.029 111.43%
operating activities (RMB/Share)
Increase/decrease in this
period-end over same
End of this period End of last period
period of last
period-end (%)
Net assets per share attributable to
shareholder of listed company -0.056 -0.034 -65.76%
(RMB/ Share)
Asset-liability ratio (%) 117.8% 110.01% 7.04%
Explanation on accounting data and financial index at period-end (stating adjustment explanation if there has
retroactive adjustment)
(II) Difference of accounting data under CAS and IAS
1. Difference of net profit and net assets disclosed in financial report based on IAS and CAS
□ Applicable √ Non-applicable
2. Difference of net profit and net assets disclosed in financial report based on foreign
accounting standards and CAS
□ Applicable √ Non-applicable
3. Detail items for major differences
Explanation on IAS
Items with major
Amount involved (RMB) Reasons for differences and(or) foreign accounting
differences
standards involved
4. Explanation on accounting data difference under the foreign/domestic accounting
standards
(III) Item and amount with non-recurring gains/losses deducted
√applicable □Non-applicable
Items Amount (RMB) Note
Gains and losses from disposal of non-current
-8,762,601.63
assets
Tax refund or exemption out of authorization, with
absence of official approval document or
accidentally
Governmental subsidy calculated into current gains
and losses(while closely related with the normal
business of the Company, excluding the
fixed-amount or fixed-proportion governmental
subsidy according to the unified national standard)
Fund occupation expenses received from
non-financial enterprises that reckon into current
gains/losses
Income occurred when investment cost paid by
enterprise for obtaining subsidiaries, associates and
joint ventures are lower than its share in fair
value of net realizable assets of invested units
Gains and losses from exchange of non-monetary
assets
Gains and losses from entrusted investment or
management assets
Various asset impairment reserve provided for force
5
承德大路股份有限公司 2012 年半年度报告全文
majeure, such as natural disaster;
Gains/losses from debt reorganization
Reorganization expenses, such as expenditure for
allocation of employees and integration fee
Gains and losses from excess of transaction which
are conducted on a non-fair-valued basis over its
fair value
Current net gains and losses of subsidiaries
occurred from combination under the same control
commencing from period-begin to combination
date
Gains and losses from contingent events which has
no relation with normal business of the Company
Gains and losses from change of fair values of
held-for-transaction financial assets and financial
liabilities except for the effective hedge business
related to normal business of the Company, and
investment income from disposal of transactional
financial assets and liabilities and financial assets
available for sale
Reversal of impairment reserve for account
receivable with separate impairment testing
gains/ losses from external entrustment loans
Gains and losses arising from change of fair value
of investment properties whose follow-up
measurement are at fair value
Affect upon current gains/losses arising from the
one-off adjustment in subject to requirement of
laws and rules in relation to taxation and
accounting
Income from entrusted custody operation
Other non-operating income and expenditure
-1,156,412.17
except the abovementioned
Other item that satisfied the definition of
non-recurring gains and losses
Influenced amount of minority shareholders equity 1,954,442.14
Impact on income tax
Total -7,964,571.66 --
Explanation on “Other item that satisfied the definition of non-recurring gains and losses” and defined non-recurring gains and losses
as recurring gain/loss according to natures and characteristic of self-operation status
Amount involved
Item Note
(RMB)
IV. Changes in Share Capital and Particular about Shareholders
(I) Changes in share capital
1. Statement of changes in shares
□applicable √Non-applicable
6
承德大路股份有限公司 2012 年半年度报告全文
2. Changes in restricted shares
□applicable √Non-applicable
(II) Security offering and listing
1. Security offering in previous three years
□applicable √Non-applicable
2. Changes of total shares and structures as well as outcome of asset-liability structures
□applicable √Non-applicable
3. Current shares held by internal staffs
□applicable √Non-applicable
(III) Shareholders and actual controller
1. Total shareholders at period-end
Shareholders at period-end amounting to 21,189
2. Shares held by top ten shareholders
√applicable □Non-applicable
Particulars about the shares held by the top ten shareholders
Proportio
Nature of Amount of the Shares pledged or frozen
n of Total amount of
Shareholders (full name) shareholder non-circulated Share
shares shares held Amount
s shares held status
held (%)
Domestic
Wang Dong nature pers 29.49% 208,324,800 208,324,800
on
GUOTAI JUNAN Foreign
SECURITIES(HONGKON legal 9.84% 69,536,410 0
G) LIMITED person
Domestic
non-state
Shanghai Wanguo (H.K)
owned 3.6% 25,418,517 0
Securities
legal
person
Domestic
non-state
Chengde North Industrial
owned 2.62% 18,517,651 18,517,651
Corporation
legal
person
Domestic
non-state
Shanghai Wanguo (H.K)
owned 1.89% 13,327,891 13,327,891
Securities
legal
person
Domestic
non-state
Chengde North Industrial
owned 1.38% 9,778,106 0
Corporation
legal
person
Domestic
non-state
Shanghai Wanguo (H.K)
owned 1.24% 8,792,000 0
Securities
legal
person
Chengde North Industrial Domestic 1.03% 7,258,007 0
7
承德大路股份有限公司 2012 年半年度报告全文
Corporation non-state
owned
legal
person
Domestic
non-state
Shanghai Wanguo (H.K)
owned 0.58% 4,101,958 0
Securities
legal
person
Domestic
non-state
Chengde North Industrial
owned 0.5% 3,513,264 0
Corporation
legal
person
Explanation on shareholders
Particulars about the shares held by the top ten circulation shareholders
√applicable □Non-applicable
Amount of Type/amount of shares
Shareholders circulated shares
held at period-end Type Amount
GUOTAI JUNAN
69,536,410 B-share 69,536,410
SECURITIES(HONGKONG) LIMITED
Shanghai Wanguo (H.K) Securities 25,418,517 B-share 25,418,517
Zhou Xiaomin 9,778,106 B-share 9,778,106
Yu Sanxi 8,792,000 B-share 8,792,000
Wang Wensheng 7,258,007 B-share 7,258,007
CORE PACIFIC-YAMAICHI
4,101,958 B-share 4,101,958
INTERNATIONAL (H.K.) LIMITED
Liu Tingyu 3,513,264 B-share 3,513,264
Peng Wei 2,978,525 B-share 2,978,525
Zhao Ziying 2,853,616 B-share 2,853,616
Li Siquan 1,726,133 B-share 1,726,133
Explanation on associated relationship among the top ten shareholders or (and) consistent action
The Company is unknown whether there exists associated relationship or belongs to consistent actor regulated by “management
method for acquisition of listed company” among the above said shareholders.
Strategy investor or general legal person comes to top ten shareholders of the Company due to new shares
allocation
□applicable √Non-applicable
3. Controlling shareholders and actual controller
(1) Changes of controlling shareholders and actual controller
√applicable □Non-applicable
Name of new controlling
Wang Dong
shareholder
Date of new controlling
2012-04-06
shareholder changed
Disclosure dated for new
2012-04-07
controlling shareholder changed
Newspaper with new controlling
Securities Times, Hong Kong Commercial Daily
shareholder changed disclosed
8
承德大路股份有限公司 2012 年半年度报告全文
Name of new actual controller Wang Dong
Date of new actual controller
2012-04-06
changed
Disclosure dated for new actual
2012-04-07
controller changed
Newspaper with new actual
Securities Times, Hong Kong Commercial Daily
controller changed disclosed
(2) Introduction of controlling shareholders and actual controller
Whether has new actual controller or not
√Yes □No □Non-applicable
Name of actual controller Wang Dong
Type of actual controller Individual
Situation statement
On Apr. 6 of 2012, original shareholder Mr. Chen Rong and Mr. Wang Dong signed equity transfer term. Mr.
Chen Rong transferred his shares to Mr. Wang Dong. After then, Mr. Wang Dong became controlling and actual
shareholder of the Company. Details are as follow:
Mr. Wang Dong, born in 1973, Chinese, post graduate. He ever was in position in president of Shenzhen Nanjiang
Investment Controlling Co., Ltd and director of NANJIANG DIAMOND CO.，LIMITED. Mr. Wang Dong held
208，324，800 shares of the Company, accounting for 29.49% of total share capital, becoming the 1st largest
shareholder and actual controller of the Company. Now he is director.
(3) Block diagram of property rights and controlling relationship between the Company and actual
controller
Wang Dong
29.49%
CHENGDE DALU CO., LTD.
(4) Actual controller controlling the Company by means of entrust or other assets
management
□applicable √Non-applicable
4. Other legal person’s shareholders with over ten percent shares held
□applicable √Non-applicable
(IV) Convertible bonds
□applicable √Non-applicable
V. Directors, Supervisors and Senior Executives
9
承德大路股份有限公司 2012 年半年度报告全文
(I) Changes of shares held by directors, supervisors and senior executive
Whether
Amount of received
Amount of Amount of
Shares held shares Including: remuneration
shares Shares held stock option
Office dated Office dated at increase in restricted Reasons for from
Name Title Sex Age decreased in at period-end held at
from ended period-begin( this shares held changes shareholders
this period (Share) period-end
Share) period(Share (Share) unit or other
(Share) (Share)
) related unit
or not
Chairman
and
Lin Lixin M 50 2012-04-27 2015-04-27 Yes
Secretary of
the Board
Zhao Director, GM
M 35 2012-04-27 2015-04-27 No
Yongsheng and CFO
Cheng Ducai Director M 43 2012-04-27 2015-04-27 Yes
Independent
Cao Guohua M 45 2012-04-27 2015-04-27 No
director
Independent
Fan Rong M 49 2012-04-27 2015-04-27 No
director
Chairman of
Xie Yu Supervisory M 38 2012-04-27 2015-04-27 Yes
Committee
Wei Lei Supervisor F 34 2012-04-27 2015-04-27 Yes
Hao Staff
M 36 2012-04-27 2015-04-27 5,900 0 0 5,900 4,425 No
Guangxin supervisor
Hu Wenxi Deputy GM M 57 2012-04-27 2015-04-27 No
10
承德大路股份有限公司 2012 年半年度报告全文
Shi Bainian Deputy GM M 40 2012-04-27 2015-04-27 No
Assistant of
Wang Xiashu M 55 2012-04-27 2015-04-27 No
GM
Total -- -- -- -- -- -- --
Directors, supervisor and senior executives who awarded equity incentive in report period
□applicable √Non-applicable
11
承德大路股份有限公司 2012 年半年度报告全文
(II) Post holding
Post holding in shareholders unit
□applicable √Non-applicable
Job holding in other unit
√applicable □Non-applicable
Whether received
Position in Office term End of office remuneration
Name Name of other unit
other unit start from term from other unit or
not
Director,
Lin Lixin Ningbo Moxi Technology Co., Ltd. 2012-05-02 Yes
GM
Beijing Xinlian Jinda Investment
Cheng Ducai GM 2005-04-15 Yes
Co., Ltd.
Shenzhen Xinjinda Investment
Wei Lei Accountant 2009-01-15 Yes
Holding Co., Ltd.
Explanations
on job
holding in
other unit
(III) Remuneration of directors, supervisors and senior executives
Decision-Making Process Of
Remuneration and appraisal commission raised up plan, being appraised after Board of
Compensation Of Directors,
Directors, submitting to shareholders meeting for appraisal.
Supervisors And Senior Management
Decision Basis Of Compensation Of
Formulating according to remuneration standard of industry and scale the Company is
Directors, Supervisors And Senior
located in, as well as actual operation of the Company.
Management
Actual payment of the compensation of
Directors, Supervisors And Senior Giving out monthly according to remuneration plan
Management
(IV) Changes of directors, supervisors and senior executives
Name Duty Change Date of change Reasons for change
Yan Position-leaving
2012-04-27 Session changes of the Board
Qizhong Chairman
Position-leaving
Chen Jie 2012-04-27 Session changes of the Board
Director
Wang Position-leaving
2012-04-27 Session changes of the Board
Ansheng Director, CFO
Position-leaving
Liu Wei independent 2012-04-27 Session changes of the Board
director
Position-leaving
Li Min 2012-04-27 Session changes of the Board
independent
12
承德大路股份有限公司 2012 年半年度报告全文
director
Position-leaving
Yuan chairman of
2012-04-27 Session changes of the Supervisory Committee
Runbin supervisory
committee
Position-leaving
Wu Yijin 2012-04-27 Session changes of the Supervisory Committee
supervisor
Position-leaving
Xu Xue 2012-04-27 Session changes of the Supervisory Committee
staff supervisor
Position-leaving
Han
secretary of the 2012-03-05 Work changes
Zhigang
Board
(V) Staff of the Company
Person on-jobs 63
Retirement person whose charges undertake by the
0
Company
Professional categories
Types of professional category Numbers of professional category
Production staff 0
Salesman 2
Technician 13
Financial staff 6
Administration staff 11
Education background
Type of education background Numbers (people)
Doctor 1
Master 5
Undergraduate 11
Junior college 12
High school and below 34
Explanations on staff of the Company
VI. Report of the Board
(I) Management discussion and analysis
The first half year of 2012 is a key transition stage of the Company. In reporting period, main business was still
un-revived, facing with complicated environment. Board of Directors concentrated on governance structure
perfection of executives. We boosted normalized operation, positively coordinated various parties based on
normal daily operation. Historical left problems had been solved for laying a foundation for implementation of
13
承德大路股份有限公司 2012 年半年度报告全文
main business.
In the first half year, real estate industry has been in floundering stage affected by national macro adjustment to
real estate policy. Encountering serious external situation, the Company timely regulated sales strategy and
enhanced marketing promotion. Presently, main project of wholly owned subsidiary Chengde Rongyida Real
Estate Development Co., Ltd, namely the 2nd phase of sale of Dalu Qianyuan is progressing.
In reporting period, the Company realized operating income RMB 481,640 with an increase rate of 2166.54.
While total operating profit reached RMB -7,711,444.59 with a decrease rate of 46.77. Net profit attributable to
shareholders was RMB -15,704,981.50, decreasing by 285.96% over the same period of last year.
Actual operating performance is lower by 20% (including above 20%) over the profit prediction that ever was
disclosed in reporting period or operation plan or not:
□ yes √no □ not applicable
Operation and performance analysis of subsidiaries and share-taking companies
1. Chengde Rongyida Real Estate Development Co., Ltd, wholly subsidiary, founded in Feb. 20 of 2009, RMB 10
million of registered capital, operation scope: real estate development, spinning, clothes manufacture, export and
import of clothes, leasing service. Main project Dalu Qianyuan (commercial and residential) is in process,
predicted to be accomplished at end of 2012. Till Jun. 30 of 2012, this companys total capital reached RMB
188,773,626.37, RMB 46,740,960.44 for net capital, RMB 481,640.00 for operating income and RMB
-6,402,290.88 for net profit.
2. Hebei Xiabancheng Knit Clothes Co., Ltd, wholly owned subsidiary, Sino-foreign joint venture founded in July
9 of 2012 by previous Spin Headquarter and foreign merchant, RMB 4 million of registration capital. Operation
scope: production and sale of clothes, various spinning clothes for main products. In Feb. 8 of 2009, Xiabancheng
Spin Company declared bankruptcy. The accounts have been settled.
3. Chengde Dixian Fashion Company, Sino-foreign joint venture founded by the Company and Yufa Company in
May 23 of 2000, RMB 24 million of registration capital. Its 75% of shares held directly and 25% of shares held
indirectly by the Company. Operation scope of it: production and sale of yarn and compound silk which constitute
its main products. In Feb. 8 of 2009, Dixian Fashion Company declared its bankruptcy and the accounts had been
completely settled.
4. Chengde Xingye Papermaking Co., Ltd was established by the Company and Hong Kong Zhanxi International
Co., Ltd with RMB 0.1 billion of register capital, respectively 75% and 25% of shares held by the Company and
Zhanxi Group. Operation scope: production and sale of high-end coated paper and kraft board paper and series of
products. Stuck in shortage in capital, Xingye Paper had been in suspension in this year. In Dec. 8 of 2008,
Xingye Paper was required to apply bankruptcy and accounts-settlement. On May 8 of 2009, Xingye Paper
reconciled with creditors.
5. Suning Banhe, share-taking subsidiary of the Company, founded in Nov. 7 of 2004 by the Company and Japan
YAMASHITA SHOJI CO., LTD. The Company invested RMB 5.8 million, taking up 20% of the total RMB 29
million of registered capital. But this company has not put into operation yet.
6. Chengde Dahua Paper Co., Ltd (with primitive name as Rizhi Co., Ltd) was founded by the Company and
Japan Paper Shoji with JPY 11 billion of total investment. The Company and Japan Paper respectively held 45%
and 55% shares of its register capital accounting for JPY 6.364 billion. Main business lies in production and sale
of various high-end paper with a production scale of 15 tons paper per year. In 2005, the Company transferred its
45% of shares holding from Chengde Rizhi to controlled subsidiary Chengde Xingye Paper Co., Ltd. while Japan
Paper transferred its 55% of shares holding from Chengde Rizhi to Japan New Age Trade Shoji. After transfer,
Chengde Rizhi Co., Ltd changed its name to Chengde Dahua Paper Co., Ltd. Investment in Chengde Dahua will
14
承德大路股份有限公司 2012 年半年度报告全文
be accomplished by Chengde Xingye Paper Co., Ltd and Japan New Age Trade. Appliances of Dahua Paper
havent been installed yet, becoming a half-project.
All risks which may cause unfavorable effect on future development strategy and operation goal of the Company
are as follow:
1. Several years of suspension made the Company lose its previous market. Thus the Company had some
difficulties in reviving production and market, facing tough trouble.
2. Governments macro policy on real estate produced significant impact on real estate development of wholly
owned subsidiary.
3. Restructure of the Company left a lot of problems here. So the solution of those problems threw a challenge.
1. Main business and operations
(1)Statement of main business classified according to industries and products
Unit: RMB
Increase or Increase or Increase or
Classified decrease of decrease of decrease of gross
according to Operating Gross profit ratio operating revenue operating cost profit ratio over
Operating cost
industries or revenue (%) over the last same over the last same the last same
products period of last year period of last year period of last year
(%) (%) (%)
According to industries
- 0.00 0.00 0% 0% 0% 0%
According to products
- 0.00 0.00 0% 0% 0% 0%
Explanation on main business classified according to industries and products
Explanation on major changes of gross profit over same period of last year
(2) Main business classified according to areas
Unit: RMB
Increase/decrease in revenue from
Areas Operating revenue operations over the same period of
last year (%)
Domestic sales 0.00 0%
Overseas sales 0.00 0%
Explanation on main business according to areas
Explanation on main business institution
(3) Explanation on reasons of material changes in main operations and its structure
□Applicable √Non-applicable
(4) Explanation on reasons of material changes in profitability (gross profit ratio) of main
operations compared with that of last year
□Applicable √Non-applicable
(5) Analysis on reasons of material changes in profit structure compared with the previous
year
15
承德大路股份有限公司 2012 年半年度报告全文
□Applicable √Non-applicable
(6) Business nature, main products or service as well as net profit for stock jointly enterprises
who take over 10% of the net profit
□Applicable √Non-applicable
(7) Problems and difficulties in operation
2. Internal control mechanism related with fair-value measurement
□Applicable √Non-applicable
3. Foreign currency financial assets and financial liabilities held
□Applicable √Non-applicable
(II) Investment of the Company
1. General Application of the raised proceeds
□Applicable √Non-applicable
16
承德大路股份有限公司 2012 年半年度报告全文
2. Commitments on projects of raised funds
□Applicable √Non-applicable
17
承德大路股份有限公司 2012 年半年度报告全文
3. Changes of projects of raised funds
□Applicable √Non-applicable
4. Investment on major projects of non-raised funds
□Applicable √Non-applicable
(III) The modification of Board to the business plan for the second half of the year
□Applicable √Non-applicable
(IV) Prediction of business performance from January – September 2012
Estimation on 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 on reason
□Applicable √Non-applicable
(V) Explanation on “Qualified Opinion” from the Certified Public Accountants in the report
period by the Board of Directors
□Applicable √Non-applicable
(VI) Explanation of the Management on changes and disposal of the issues involved in
“Qualified Opinion” from the Certified Public Accountants in the last year by the Board of
Directors
√Applicable □Non-applicable
(I) Statement on audit report issued by CPA taking events-focused phase unqualified opinions
We remind users of the financial sheet of the following things:
1. As saying as annotation IV 1(1) ③, Chengde Xingye Paper Co., Ltd was founded by Dalu Co., Ltd and (Hong
Kong) Zhanxi International Group Co., Ltd, with register capital USD 250000000. Paid-up capital was USD 100
million, taking up 40% of register capital. Including, Dalu Co., Ltd invested USD 75 million (75% of equity) and
(Hong Kong) Zhanxi International Group Co., Ltd invested USD 25 million (25% of equity). On Oct. 28 of 2002,
Chinese external trade and economy corporation department (the previous Commerce Department) ruled in the
Reply to Increasing Investment in Joint Chengde Xingye Paper Co., Ltd, WJMZEH [2001] No. 969. Register
capital increased from USD 100 million to USD 250 million. The new register capital should be paid off within 3
years by both joint parties in accordance with methods issued in contract and Article of Association. Dalu and
Zhanxi International hadn't paid the new register capital yet.
According to verification from corporation registration department of Hong Kong government, (Hong Kong)
Zhanxi International Group Co., Ltd had declared dis-incorporate on May 20 of 2005. On Apr. 23 of 2009, (2009)
JXEZZ No. 44 of the Criminal Ruling Letter issued by superior peoples court of Hebei Province ruled that
Chengde Xingye Paper actually was a faked foreign joint venture founded by previous shareholder of Dalu Co.,
Ltd Wang Shuxian in name of (Hong Kong) Zhanxi International Group Co., Ltd.
2. As saying as Note V 6, Chengde Dahua Paper Co., Ltd is joint venture of Dalu Co., Ltd with initial capital USD
5 million. After equity transfer and investment increase, its register capital increased to JPY 6.364 billion. The
increasing part wasnt verified by China PAC. For Chengde Dahua Paper didnt submit 2007 annual documents
about annual industrial and commercial check, on Apr. 28 of 2009 Chengde Industrial and Commercial
Administration Bureau cancelled its operation certificate through administration penalty letter CGSCZ (2009) No.
75.
3. As saying as Note VII 3, Li Rui sued Dalu Co., Ltd and its subsidiary Chengde Rongyida Real Estate
Development Co., Ltd for tort, calling for economic compensation RMB 15 million. This case was put into court
for hearing on Apr. 20 of 2012, unanswered yet till Apr. 22 of 2012.
4. Till Dec. 31 of 2011, owners equity attributable to parent company of Dalu Co., Ltd was RMB -23,882,038.57.
The Company didnt gain main business income and its lasting operating ability was unsure.
18
承德大路股份有限公司 2012 年半年度报告全文
This paragraph content wont affect audit opinion which had been disclosed.
(II) Aiming at emphasized events in audit opinion, the Board of Directors issued the following statements:
The Board of Directors believed, there existed events focused on phase of unqualified opinion issued by Growe
Horwath CPA (extraordinary general partner). Those were all historically left problem which won't create actual
impact on operation of the Company. The Company concentrated hard on events stressed in audit report and is
coordinating with related department about solution plan.
As for the above lawsuits, the Company positively responded and disclosed the progress. On Jun. 29 of 2012,
coordinating with Chengde Dixian Work Team, wholly owned subsidiary Chengde Rongyida Real Estate
Development had reconciled with Li Rui.
After restructure, main business production and operation of the Company couldn't be restored thus solving
problems fundamentally. The Company rapidly promoted real estate projects and carried out main business
projects. We believed that along with gradual stepping into normal track, the above concerning events could be
solved one by one.
(VII)Stating the discussion results issued by the Board on changes in the Company’s
accounting policies and accounting estimates or reasons for material accounting error
correction and influences thereof
□Applicable √Non-applicable
(VIII) Determination and implementation of cash dividend policies of the Company
In accordance with related requirements of Notice to Further Implementing Cash Dividend of Listed Companies
issued by CSRC and Notice to Transfer the Notice to Further Implementing Cash Dividend of Listed Companies
Issued by CSRC, on July 29 of 2012, the 3rd extraordinary shareholders' meeting of 2012 reviewed and passed
Proposal of Revising Article of Association.
New Article of Association clearly formulated cash dividend policy, standards and ratio. Decision procedure and
mechanism about profit distribution were complete. Independent directors issued independent opinion on profit
distribution, having played complete role. Shareholders' meeting approved specific plans of cash dividend, fully
listened appeal of minority shareholders and protected their legal rights.
(IX) Plan of profit distribution or capital reserve capitalizing
□Applicable √Non-applicable
(X) Positive retained profit accumulated at end of 2011 without cash distribution carried out
□Applicable √Non-applicable
(XI) Other events disclosed
1. The Company issued the Notice of Plan about Restructure and De-list of Major Assets on July 26 of 2012
(Notice No. 2012-048). We're planning restructure and de-list of major assets thus stock had been delisted on July
26 of 2012. On August 1, 8, 15 of 2012 we respectively issued Notice to Progress of Restructure and De-list of
Major Assets (Notice No. 2012-050, 2012-052, 2012-055). On August 22, the Company issued Notice to Progress
of Restructure of Major Assets and Postponing Re-listing (Notice No. 2012-0). The Company would disclose
progress timely according to actual situation.
(XII) Liabilities, credit changes and cash arrangement for debt paying in later year (Only
applies to listed company with corporate convertible bonds offered)
19
承德大路股份有限公司 2012 年半年度报告全文
□Applicable √Non-applicable
VII. Significant Event
(I)Corporate governance
In reporting period, the Company strictly complied with rules of Company Law, Securities Law and Governance
Rules of Listed Companies and other related regulations of securities inspection department. Thus we perfected
corporate governance structure and normalized operation of the Company.
In reporting period, the Company revised and issued Administration System of Insiders of Internal Information. In
accordance with Basic Normalization to Internal Control and related affiliated guidance requirements as well as
Notice to Companies in Jurisdiction Conduct Normalization on Internal Control issued by CSRC Hebei
department, the Company formulated Working Plan of Normalization of Internal Control of Chengde Dalu Co.,
Ltd, combining with actual situation and future development requirements. The 22nd meeting of the 4th Board of
Directors approved and passed it.
In reporting period, preparation of shareholders meeting, Board of Directors and Board of Supervisors, disclosure
of meeting decision were progressing in accordance with Article of Association, Discussing Rules of
Shareholders Meeting, Discussing Rules of Board of Directors and Discussing Rules of Board of Supervisors. All
the directors, supervisors and senior executives are diligent and honest in responsibility, conforming to
requirements of normalized documents about corporate governance issued by CSRC.
(II) Implementation of profit distribution plan, capital reserve capitalizing or shares offering
that plan out previously and carry out in this reporting period
□Applicable √Non-applicable
20
承德大路股份有限公司 2012 年半年度报告全文
(III) Material lawsuits and arbitrations
√Applicable □Non-applicable
Disclosure date Number of
Jointly and Basic Concerning
Prosecution Results and of related related
Respondent severally Type of lawsuit information of amounts Progress Implementation
impact temporary temporary
responsible party lawsuit (RMB0000)
reports reports
Chengde Dalu Creditors right
Wang Shuxian Civil lawsuit 8,437.15 Judgment not yet 2011-04-29 2011-011
Co., Ltd dispute
2011-12-23 2011-023
Chengde Dalu Reputation right
Xu Xue Civil lawsuit 0 In hearing 2012-03-31 2012-008
Co., Ltd dispute
2012-06-21 2012-040
On June 29 of 2012-04-20 2012-018
Chengde
2012, with 2012-06-15 2012-038
Rongyida Real
coordination of
Estate
Chengde Dixian
Li Rui Development Civil lawsuit Tort dispute 2,147.42 Reconciled Accomplished
Work Team,
Co., Ltd 2012-07-02 2012-042
Rongyida
Chengde Dalu
reconciled with
Co., Ltd
Li Rui.
On June 29 of 2012-06-15 2012-038
2012, with
Chengde
coordination of
Rongyida Real
Counterclaim to Chengde Dixian
Estate Li Rui Civil lawsuit 3,000 Reconciled Accomplished
tort dispute Work Team, 2012-07-02 2012-042
Development
Rongyida
Co., Ltd
reconciled with
Li Rui.
Concerning amount to significant lawsuit and arbitration events after annual report of last year was RMB 0.
Concerning amount to significant lawsuits and arbitration events which hadnt been settled but enrolled in annual report of last year was RMB 135,845,700.
Predicted liability resulting from lawsuit and arbitration was RMB 0.
Detailed statement on significant lawsuit and arbitration
1. On Apr. 17 of 2011, Chengde Medium Peoples Court accepted creditors right dispute appealed by Wang Shuxian over Chengde Dalu Co., Ltd. The Company received Responding Notice Letter and
Civil Lawsuit from Hebei Chengde Medium Peoples Court. Prosecution asked the court to judge the respondent to pay back RMB 84,371,544.00 and litigation fee. Details could be seen from
Significant Lawsuit Report disclosed on Securities Times, Hong Kong Commercial Daily and Juchao website http://www.cninfo.com.cn. Till reporting period-end, this case hadnt been settled.
2. On Dec. 22 of 2012, to protect interest of the Company, the Company counterclaimed to Beijing Xicheng Area over that respondent Xu Xue intentionally fabricated information and spread fictional
information and whistle-bowling to media which severally hurt reputation of the Company. The Company received ruling letter from the court in Mar. of 2012 with (2012) XMCZ No. 1093, rejecting
lawsuit of Chengde Dalu Co., Ltd. The Company thought respondent intentionally concealed facts which had been answered thus impacted the court to make a fair justice. Thus we appealed to Beijing
1st Medium Peoples Court. In June of 2012, the Company received ruling letter from the court with (2012) YZMZZ No. 6804, which cancelled judgment of Beijing Xicheng Area Peoples Court and
called them to hear this case. Till reporting period-end, this case has been in process.
3. On Dec. 5 of 2012, Chengde Medium Peoples Court accepted lawsuit from Li Rui to wholly subsidiary Chengde Rongyida Real Estate Development and Chengde Dalu Co., Ltd over tort dispute.
The Company received Responding Notice Letter and Civil Lawsuit from the court which showed prosecution asked the court to judge the respondent to pay back RMB 15000000 and litigation fee as
21
承德大路股份有限公司 2012 年半年度报告全文
well as appraisal cost. Rongyida counterclaimed it, requiring the court to reject requirements of Li Rui. We called the counterclaimed should pay deposit RMB 500,000 and penal sum in accordance with
contract, compensate economic loss RMB 18 million, immediately stop excreting equipment and assume the litigation cost. In court hearing on Apr. 20 of 2012, Li Rui increased the lawsuit requirement
to RMB 21,474,200 while Rongyida increased it to RMB 30 million. On June 29 of 2012, with coordination of Chengde Dixian Work Team, Rongyida reconciled with Li Rui. Details could be seen
from related reports disclosed on Securities Times, Hong Kong Commercial Daily and Juchao website http://www.cninfo.com.cn.
22
承德大路股份有限公司 2012 年半年度报告全文
(IV) Related event of bankruptcy reorganization
□Applicable √Non-applicable
(V) Equity of other listed company and stock jointly financial enterprise held by the Company
1. Security investment
□Applicable √Non-applicable
Explanation on security investment
2. Equity of other listed company held by the Company
□Applicable √Non-applicable
Explanation on equity of other listed company held by the Company
3. Equity of non-listed financial enterprise held by the Company
□Applicable √Non-applicable
Explanation on equity of non-listed financial enterprise held by the Company
4. Buying and selling shares of other listed company
□Applicable √Non-applicable
Explanation on shares dealing of other listed company
(VI) Assets transaction
23
承德大路股份有限公司 2012 年半年度报告全文
1. Assets purchased or acquired
□Applicable √Non-applicable
Explanation on assets purchased
2. Assets sold
□Applicable √Non-applicable
Explanation on assets sold
3. Assets replacement
□Applicable √Non-applicable
Explanation on assets replacement
24
承德大路股份有限公司 2012 年半年度报告全文
4. Business combination
□Applicable √Non-applicable
5. Progress of the events and their influence on the Company’s operating results and
financial status in the report period after the Report on Assets Restructure or Public Notice
on Acquisition and Sales of Assets being published
□Applicable √Non-applicable
(VII) Explanation on shareholding increase proposed or implemented by largest shareholder
of the Company and its persons acting in concert in reporting period
□Applicable √Non-applicable
(VIII) Implementation and its influence of equity incentive
□Applicable √Non-applicable
(XI) Significant related transaction
25
承德大路股份有限公司 2012 年半年度报告全文
1. Related transaction related to daily operation
□Applicable √Non-applicable
2. Related transaction incurred by purchase or sales of assets
□Applicable √Non-applicable
3. Significant related transaction from jointly investment outside
□Applicable √Non-applicable
4. Current related liabilities and debts
□Applicable √Non-applicable
Fund occupation in reporting period as well as paying-off progress
□Applicable √Non-applicable
Till end of reporting period, accountability plan proposed by the Board for completed no non-operational fund occupation from listed company
□Applicable √Non-applicable
26
承德大路股份有限公司 2012 年半年度报告全文
5. Other significant related transaction
Nil
(X) Significant contracts and its implementation
1. Profits earned from trusteeship, contract and lease reached over 10% (10% included)
of total profit in this period
(1) Trusteeship
□Applicable √Non-applicable
(2) Contract
□Applicable √Non-applicable
(3) Lease
□Applicable √Non-applicable
2. Guarantees
□Applicable √Non-applicable
27
承德大路股份有限公司 2012 年半年度报告全文
3. Trust financing
□Applicable √Non-applicable
28
承德大路股份有限公司 2012 年半年度报告全文
4. Implementation of material contracts entered into during the normal operation
Nil
29
承德大路股份有限公司 2012 年半年度报告全文
5. Other significant contract
□Applicable √Non-applicable
(XI) Explanation on corporate bonds offering
□Applicable √Non-applicable
(XII) Implementation of commitments
1. Commitments made by the Company or shareholders holding above 5%
shares of the Company in reporting period or extending to reporting period.
□Applicable √Non-applicable
2. Explanation on assets or projects that reached the original profit forecast as
well as its reasons while the reporting period still in forecast period, and there
are profit forecast on assets or projects of the Company
□Applicable √Non-applicable
(XIII) Items of other consolidated income
Unit: RMB
Items This period Last period
1. Gains(losses) from financial assets available for sales
Less: Income tax influences from financial assets available
for sales
Net amount reckoned into other consolidated income in
previous period but transferred into gains/losses in current
period
Subtotal
2. Shares in the other consolidated income of the investee
calculated based on equity method
Less: Income tax influences of shares in the other
consolidated income of the investee calculated based on
equity method
Net amount reckoned into other consolidated income in
previous period but transferred into gains/losses in current
period
Subtotal
3. Gains(losses) from cash flow hedge instrument
Less: Income tax influences from cash flow hedge
Net amount reckoned into other consolidated income in
previous period but transferred into gains/losses in current
period
Adjusted amount transferred to initial confirmed amount of
the arbitraged items
Subtotal
4. Differences from translating foreign currency financial
statements
Less: Net amount of disposing overseas business transferred
to current gains/losses
Subtotal
5. Others
Less: Income tax influences by others reckoned into other
consolidated income
Net amount reckoned into other consolidated income in
previous period but transferred into gains/losses in current
30
承德大路股份有限公司 2012 年半年度报告全文
period
Subtotal
Total
(XIV)Registration form of receiving research, communication and interview in
the report period
Content discussed and
Date Place Way Type Object
documents provided
Security
Telephone Government subsidy,
2012-01-09 department of Individual Investor
communication no files provided
the Company
Security Share reduction
Telephone
2012-01-23 department of the Individual Investor information, no files
communication
Company provided
Security Current situation of
Telephone
2012-02-16 department of Individual Investor the Company, no files
communication
the Company provided
Security Suspension event and
Telephone
2012-03-30 department of the Individual Investor lawsuit progress, no
communication
Company files provided
Security
Telephone Equity transfer and no
2012-04-09 department of Individual Investor
communication files provided
the Company
Security Session transition of
Telephone
2012-04-12 department of the Individual Investor the Board, no files
communication
Company provided
Security
Telephone Resume production
2012-05-16 department of Individual Investor
communication and no files provided
the Company
Security Current situation of
Telephone
2012-06-29 department of the Individual Investor the Company, no files
communication
Company provided
(XV) Engagement and non-reappointment of CPA
Whether the semi-annual report was audited or not
□ Yes √ No □ Non-applicable
Whether re-engaged the CPA or not
□ Yes √ No □ Non-applicable
(XVI) Punishment and rectification for listed company and its directors,
supervisor, senior executives, shareholders of the Company, actual controller
and purchasers
□Applicable √Non-applicable
(XVII) Explanation on other significant events
√Applicable □Non-applicable
1. The Company issued the Notice of Plan about Restructure and De-list of Major Assets on July
31
承德大路股份有限公司 2012 年半年度报告全文
26 of 2012 (Notice No. 2012-048). We're planning restructure and de-list of major assets thus
stock had been delisted on July 26 of 2012. On August 1, 8, 15 of 2012 we respectively issued
Notice to Progress of Restructure and De-list of Major Assets (Notice No. 2012-050, 2012-052,
2012-055). On August 22, the Company issued Notice to Progress of Restructure of Major Assets
and Postponing Re-listing (Notice No. 2012-0). The Company would disclose progress timely
according to actual situation.
(XVIII) Major changes of profitability of turn debt guarantor, assets status and
credit standings
(Only applies to listed company with corporate convertible bonds offered)
□Applicable √Non-applicable
(XIX) Index for information disclosure
Name and page of Internet website and searching
Event Date of disclosed
publishing press route
Notice of Government Securities Times, Hong
2012-01-06 http://www.cninfo.com.cn
Grant Obtained Kong Commercial Daily
Notice of Performance Securities Times, Hong
2012-01-14 http://www.cninfo.com.cn
Forecast for year of 2011 Kong Commercial Daily
Correction Explanation on
Miss-disclosure of holding
reduction for simple Securities Times, Hong
2012-01-20 http://www.cninfo.com.cn
changes in equity from Li Kong Commercial Daily
Tianyun and other 4 nature
person disclosed previous
Notice of changes for Securities Times, Hong
2012-01-20 http://www.cninfo.com.cn
shareholders Kong Commercial Daily
Simple Equity Changes Securities Times, Hong
2012-01-20 http://www.cninfo.com.cn
Report Kong Commercial Daily
System Changes and Name
Securities Times, Hong
changes for CPA appointed 2012-02-25 http://www.cninfo.com.cn
Kong Commercial Daily
by the Company
Resignation of Secretary of Securities Times, Hong
2012-03-08 http://www.cninfo.com.cn
the Board Kong Commercial Daily
Resolution Notice of 22nd
Securities Times, Hong
Meeting of 4th Session of 2012-03-29 http://www.cninfo.com.cn
Kong Commercial Daily
the Board
Suspension for Material Securities Times, Hong
2012-03-30 http://www.cninfo.com.cn
Un-certain Event Kong Commercial Daily
Securities Times, Hong
Lawsuit progress – Xu Xue 2012-03-31 http://www.cninfo.com.cn
Kong Commercial Daily
Progress of Material Event
Securities Times, Hong
and Continuous to 2012-03-31 http://www.cninfo.com.cn
Kong Commercial Daily
Suspension
32
承德大路股份有限公司 2012 年半年度报告全文
Securities Times, Hong
Notice of Equity Changes 2012-04-09 http://www.cninfo.com.cn
Kong Commercial Daily
Equity Transfer Agreement Securities Times, Hong
2012-04-10 http://www.cninfo.com.cn
and Resumption Notice Kong Commercial Daily
Resolution Notice of 23rd
Securities Times, Hong
Meeting of 4th Session of 2012-04-11 http://www.cninfo.com.cn
Kong Commercial Daily
the Board
Resolution Notice of 9th
Securities Times, Hong
Meeting of 4th Session of 2012-04-11 http://www.cninfo.com.cn
Kong Commercial Daily
supervisory committee
Convening the 1st
Securities Times, Hong
extraordinary shareholders 2012-04-11 http://www.cninfo.com.cn
Kong Commercial Daily
meeting of 2012
Performance forecast for Securities Times, Hong
2012-04-13 http://www.cninfo.com.cn
first quarter of 2012 Kong Commercial Daily
Performance Express of Securities Times, Hong
2012-04-13 http://www.cninfo.com.cn
2011 Kong Commercial Daily
Abnormal Changes in Securities Times, Hong
2012-04-13 http://www.cninfo.com.cn
Stock Exchange Kong Commercial Daily
Securities Times, Hong
Material Lawsuits 2012-04-20 http://www.cninfo.com.cn
Kong Commercial Daily
Detail Equity Changes Securities Times, Hong
2012-04-24 http://www.cninfo.com.cn
Report Kong Commercial Daily
Convening Annual
Securities Times, Hong
Shareholders General 2012-04-24 http://www.cninfo.com.cn
Kong Commercial Daily
Meeting of 2011
Resolution Notice of 26th
Securities Times, Hong
Meeting of 4th Session of 2012-04-24 http://www.cninfo.com.cn
Kong Commercial Daily
the Board
Resolution Notice of 20th
Securities Times, Hong
Meeting of 4th Session of 2012-04-24 http://www.cninfo.com.cn
Kong Commercial Daily
supervisory committee
2 Annual report 2011 and Securities Times, Hong
2012-04-24 http://www.cninfo.com.cn
its summary Kong Commercial Daily
Resolution Notice of 27th
Securities Times, Hong
Meeting of 4th Session of 2012-04-27 http://www.cninfo.com.cn
Kong Commercial Daily
the Board
Resolution Notice of 13th
Securities Times, Hong
Meeting of 4th Session of 2012-04-27 http://www.cninfo.com.cn
Kong Commercial Daily
supervisory committee
33
承德大路股份有限公司 2012 年半年度报告全文
Text of firs quarterly report Securities Times, Hong
2012-04-27 http://www.cninfo.com.cn
2012 Kong Commercial Daily
Resolution Notice of 1st
Securities Times, Hong
Meeting of 5th Session of 2012-04-28 http://www.cninfo.com.cn
Kong Commercial Daily
the Board
Resolution Notice of 1st
Securities Times, Hong
Meeting of 5th Session of 2012-04-28 http://www.cninfo.com.cn
Kong Commercial Daily
supervisory committee
Resolution Notice of 1st
Securities Times, Hong
extraordinary shareholders 2012-04-28 http://www.cninfo.com.cn
Kong Commercial Daily
general meeting of 2012
Completion of Equity Securities Times, Hong
2012-05-08 http://www.cninfo.com.cn
Ownership Transfer Kong Commercial Daily
Internet Seminar for Securities Times, Hong
2012-05-18 http://www.cninfo.com.cn
Performance of 2011 Kong Commercial Daily
Resolution Notice of 2nd
Securities Times, Hong
Meeting of 5th Session of 2012-05-21 http://www.cninfo.com.cn
Kong Commercial Daily
the Board
Convening the 2nd
Securities Times, Hong
extraordinary shareholders 2012-05-21 http://www.cninfo.com.cn
Kong Commercial Daily
general meeting of 2012
Resolution Notice of
Securities Times, Hong
annual shareholders 2012-05-21 http://www.cninfo.com.cn
Kong Commercial Daily
general meeting of 2012
”Warning Letter to
Chengde Dalu Co., Ltd.
and its related staff” Securities Times, Hong
2012-05-23 http://www.cninfo.com.cn
obtained from Hebei Kong Commercial Daily
Security Regulatory
Bureau
postpone the 2nd
Securities Times, Hong
extraordinary shareholders 2012-06-01 http://www.cninfo.com.cn
Kong Commercial Daily
general meeting of 2012
Resolution Notice of 2nd
Securities Times, Hong
extraordinary shareholders 2012-06-11 http://www.cninfo.com.cn
Kong Commercial Daily
general meeting of 2012
Material Lawsuit and Securities Times, Hong
2012-06-15 http://www.cninfo.com.cn
Correction Kong Commercial Daily
Assets Dealing of Chengde Securities Times, Hong
2012-06-20 http://www.cninfo.com.cn
Rongyida Real Estate Kong Commercial Daily
34
承德大路股份有限公司 2012 年半年度报告全文
Development Co.,
Ltd,-wholly-owned
subsidiary of the Company
Securities Times, Hong
Lawsuit progress – Xu Xue 2012-06-21 http://www.cninfo.com.cn
Kong Commercial Daily
VIII. Financial Report
(I) Auditing Report
Whether the report has been audited or not
□ Yes √ No □Non applicable
(II) Financial Statement
Whether consolidated statement or not:
√ Yes □ No □Non applicable
Unless otherwise, currency for this statement refers to RMB (Yuan)
Currency used in note of financial statement is RMB (Yuan)
1. Consolidated Balance Sheet
Prepared by Chengde Dalu Co., Ltd
Unit: RMB
Items Note Balance at period-end Balance at period-begin
Current assets:
Monetary funds 1,571,028.20 5,517,692.29
Settlement provisions 0.00 0.00
Capital lent 0.00 0.00
Transaction finance asset 0.00 0.00
Notes receivable 0.00 0.00
Accounts receivable 0.00 0.00
Accounts paid in advance 20,488,196.25 21,059,096.25
Insurance receivable 0.00 0.00
Reinsurance receivables 0.00 0.00
Contract reserve of
0.00 0.00
reinsurance receivable
Interest receivable 0.00 0.00
Dividend receivable 0.00 0.00
Other receivables 34,940,783.67 33,632,142.25
Purchase restituted
0.00 0.00
finance asset
Inventories 56,505,152.59 39,698,800.27
35
承德大路股份有限公司 2012 年半年度报告全文
Non-current asset due
0.00 0.00
within one year
Other current assets 1,093,527.39 1,093,527.39
Total current assets 114,598,688.10 101,001,258.45
Non-current assets:
Granted loans and
0.00 0.00
advances
Finance asset available
0.00 0.00
for sales
Held-to-maturity
0.00 0.00
investment
Long-term account
0.00 0.00
receivable
Long-term equity
2,215,729.65 2,215,729.65
investment
Investment real estate 0.00 0.00
Fixed assets 50,038,133.41 60,092,006.51
Construction in progress 6,721,818.00 6,721,818.00
Engineering material 0.00 0.00
Disposal of fixed asset 0.00 0.00
Productive biological
asset
Oil and gas asset 0.00 0.00
Intangible assets 23,891,528.51 24,202,279.25
Expense on Research and
0.00 0.00
Development
Goodwill 0.00 0.00
Long-term expenses to be
320,976.00 356,640.00
apportioned
Deferred income tax asset 0.00 0.00
Other non-current asset 25,132,938.95 24,432,938.95
Total non-current asset 108,321,124.52 118,021,412.36
Total assets 222,919,812.62 219,022,670.81
Current liabilities:
Short-term loans 422,261.91 422,261.91
Loan from central bank 0.00 0.00
36
承德大路股份有限公司 2012 年半年度报告全文
Absorbing deposit and
0.00 0.00
interbank deposit
Capital borrowed 0.00 0.00
Transaction financial
0.00 0.00
liabilities
Notes payable 0.00 0.00
Accounts payable 1,225,343.22 231,175.82
Accounts received in
54,821,272.50 30,028,613.02
advance
Selling financial asset of
0.00 0.00
repurchase
Commission charge and
0.00 0.00
commission payable
Wage payable 6,176,635.66 6,707,882.20
Taxes payable 68,963,013.99 69,588,226.39
Interest payable 0.00 0.00
Dividend payable 0.00 0.00
Other accounts payable 113,498,698.64 116,572,501.13
Reinsurance payables 0.00 0.00
Insurance contract reserve 0.00 0.00
Security trading of agency 0.00 0.00
Security sales of agency 0.00 0.00
Non-current liabilities due
0.00 0.00
within 1 year
Other current liabilities 0.00 0.00
Total current liabilities 245,107,225.92 223,550,660.47
Non-current liabilities:
Long-term loans 6,801,600.00 6,801,600.00
Bonds payable 0.00 0.00
Long-term account
0.00 0.00
payable
Special accounts payable 10,598,000.03 10,598,000.03
Projected liabilities 0.00 0.00
Deferred income tax
0.00 0.00
liabilities
Other non-current 0.00 0.00
37
承德大路股份有限公司 2012 年半年度报告全文
liabilities
Total non-current liabilities 17,399,600.03 17,399,600.03
Total liabilities 262,506,825.95 240,950,260.50
Owners equity (or
shareholders equity):
Paid-up capital (or share
706,320,000.00 706,320,000.00
capital)
Capital public reserve 450,765,443.10 450,765,443.10
Less: Inventory shares 0.00 0.00
Reasonable reserve 0.00 0.00
Surplus public reserve 76,791,550.17 76,791,550.17
Provision of general risk 0.00 0.00
Retained profit -1,273,464,013.34 -1,257,759,031.84
Balance difference of
0.00 0.00
foreign currency translation
Total owners equity
-39,587,020.07 -23,882,038.57
attributable to parent company
Minority interests 6.74 1,954,448.88
Total owners equity(or
-39,587,013.33 -21,927,589.69
shareholders equity)
Total liabilities and owners
222,919,812.62 219,022,670.81
equity(or shareholders equity)
2. Balance Sheet of parent company
Unit: RMB
Items Note Balance at period-end Balance at period-begin
Current assets:
Monetary funds 4,019.80 4,019.80
Transaction finance asset 0.00 0.00
Notes receivable 0.00 0.00
Accounts receivable 0.00 0.00
Accounts paid in advance 20,084,632.25 20,084,632.25
Interest receivable 0.00 0.00
Dividend receivable 0.00 0.00
Other receivables 564,846.74 350,389.52
Inventories 0.00 0.00
Non-current asset due
0.00 0.00
within one year
38
承德大路股份有限公司 2012 年半年度报告全文
Other current assets 0.00 0.00
Total current assets 20,653,498.79 20,439,041.57
Non-current assets:
Finance asset available for
0.00 0.00
sales
Held-to-maturity
0.00 0.00
investment
Long-term account
0.00 0.00
receivable
Long-term equity
58,925,880.26 58,925,880.26
investment
Investment real estate 0.00 0.00
Fixed assets 0.00 0.00
Construction in progress 0.00 0.00
Engineering material 0.00 0.00
Disposal of fixed asset 0.00 0.00
Productive biological
0.00 0.00
asset
Oil and gas asset 0.00 0.00
Intangible assets 0.00 0.00
Expense on Research and
0.00 0.00
Development
Goodwill 0.00 0.00
Long-term expenses to be
0.00 0.00
apportioned
Deferred income tax asset 0.00 0.00
Other non-current asset 0.00 0.00
Total non-current asset 58,925,880.26 58,925,880.26
Total assets 79,579,379.05 79,364,921.83
Current liabilities:
Short-term loans 422,261.91 422,261.91
Transaction financial
0.00 0.00
liabilities
Notes payable 0.00 0.00
Accounts payable 218,802.27 218,802.27
Accounts received in 0.00 0.00
39
承德大路股份有限公司 2012 年半年度报告全文
advance
Wage payable 38,587.58 489,639.20
Taxes payable -44,092.73 169,855.54
Interest payable 0.00 0.00
Dividend payable 0.00 0.00
Other accounts payable 103,332,356.54 101,813,353.28
Non-current liabilities due
0.00 0.00
within 1 year
Other current liabilities 0.00 0.00
Total current liabilities 103,967,915.57 103,113,912.20
Non-current liabilities:
Long-term loans 0.00 0.00
Bonds payable 0.00 0.00
Long-term account
0.00 0.00
payable
Special accounts payable 98,000.03 98,000.03
Projected liabilities 0.00 0.00
Deferred income tax
0.00 0.00
liabilities
Other non-current
0.00 0.00
liabilities
Total non-current liabilities 98,000.03 98,000.03
Total liabilities 104,065,915.60 103,211,912.23
Owners equity (or
shareholders equity):
Paid-up capital (or share
706,320,000.00 706,320,000.00
capital)
Capital public reserve 449,365,886.69 449,365,886.69
Less: Inventory shares 0.00 0.00
Reasonable reserve 0.00 0.00
Surplus public reserve 76,791,550.17 76,791,550.17
Retained profit -1,256,963,973.41 -1,256,324,427.26
Balance difference of
0.00 0.00
foreign currency translation
Total owners equity(or
-24,486,536.55 -23,846,990.40
shareholders equity)
40
承德大路股份有限公司 2012 年半年度报告全文
Total liabilities and owners
79,579,379.05 79,364,921.83
equity(or shareholders equity)
3. Consolidated Profit Statement
Unit: RMB
Items Note Amount in this period Amount in last period
I. Total operating income 481,640.00 21,250.00
Including: Operating
income
Interest income
Insurance gained
Commission charge
and commission income
II. Total operating cost 8,193,084.59 5,275,262.57
Including: Operating cost 0.00 0.00
Interest expense
Commission
charge and commission
expense
Cash surrender
value
Net amount of
expense of compensation
Net amount of
withdrawal of insurance
contract reserve
Bonus expense of
guarantee slip
Reinsurance
expense
Operating tax and
49,187.20 10,295.16
extras
Sales expenses
Administration
6,493,740.82 5,260,118.42
expenses
Financial expenses 1,650,156.57 4,848.99
Losses of
0.00 0.00
devaluation of asset
Add: Changing income of 0.00 0.00
41
承德大路股份有限公司 2012 年半年度报告全文
fair value(Loss is listed with
“-”)
Investment
0.00 0.00
income (Loss is listed with “-”)
Including:
Investment income on
0.00 0.00
affiliated company and joint
venture
Exchange income
(Loss is listed with “-”)
III. Operating profit (Loss is
-7,711,444.59 -5,254,012.57
listed with “-”)
Add: Non-operating
0.00 1,021,011.00
income
Less: Non-operating
9,919,013.80 152,271.51
expense
Including:
Disposal loss of non-current 8,762,601.63 0.00
asset
IV. Total Profit (Loss is listed
-17,630,458.39 -4,385,273.08
with “-”)
Less: Income tax expense 28,965.25 3,500.64
V. Net profit (Net loss is listed
-17,659,423.64 -4,388,773.72
with “-”)
Including: net profit
realized before consolidation 0.00 0.00
by mergered party
Net profit attributable to
-15,704,981.50 -4,069,051.79
owners of parent company
Minority shareholders
-1,954,442.14 -319,721.93
gains and losses
VI. Earnings per share -- --
i. Basic earnings per share -0.022 -0.006
ii. Diluted earnings per
-0.022 -0.006
share
VII. Other consolidated
0.00 0.00
income
VIII. Total comprehensive
-17,659,423.64 -4,388,773.72
income
42
承德大路股份有限公司 2012 年半年度报告全文
Total consolidated income
attributable to owners of parent -15,704,981.50 -4,069,051.79
company
Total consolidated income
attributable to minority -1,954,442.14 -319,721.93
shareholders
The merger realized net profit RMB 0.00 before consolidation during enterprises consolidation
under a same control.
4. Profit Statement of parent company
Unit: RMB
Items Note Amount in this period Amount in last period
I. Operating income
Less: operating cost 0.00 0.00
Operating tax and extras
Sales expenses
Administration expenses 639,530.65 171,257.42
Financial expenses 15.50 15.50
Losses of devaluation of
0.00 0.00
asset
Add: Changing income of
fair value(Loss is listed with 0.00 0.00
“-”)
Investment income (Loss is
0.00 0.00
listed with “-”)
Including: Investment
income on affiliated company 0.00 0.00
and joint venture
II. Operating profit (Loss is
-639,546.15 -171,272.92
listed with “-”)
Add: Non-operating income 0.00 0.00
Less: Non-operating expense 0.00 2,271.51
Including: Disposal loss of
non-current asset
III. Total Profit (Loss is listed
-639,546.15 -173,544.43
with “-”)
Less: Income tax expense
IV. Net profit (Net loss is listed
-639,546.15 -173,544.43
with “-”)
V. Earnings per share -- --
43
承德大路股份有限公司 2012 年半年度报告全文
i. Basic earnings per share -0.0009 -0.0002
ii. Diluted earnings per
-0.0009 -0.0002
share
VI. Other consolidated income 0.00 0.00
VII. Total comprehensive
-639,546.15 -173,544.43
income
5. Consolidated Cash Flow Statement
Unit: RMB
Items Amount in this period Amount in last period
I. Cash flows arising from
operating activities:
Cash received from selling
commodities and providing labor 25,081,497.08
services
Net increase of customer
deposit and interbank deposit
Net increase of loan from
central bank
Net increase of capital
borrowed from other financial
institution
Cash received from original
insurance contract fee
Net cash received from
reinsurance business
Net increase of insured
savings and investment
Net increase of disposal of
transaction financial asset
Cash received from interest,
commission charge and
commission
Net increase of capital
borrowed
Net increase of returned
business capital
Write-back of tax received
Other cash received
2,131,881.19 2,292,951.24
concerning operating activities
44
承德大路股份有限公司 2012 年半年度报告全文
Subtotal of cash inflow arising
27,213,378.27 2,292,951.24
from operating activities
Cash paid for purchasing
commodities and receiving labor 14,998,621.22 1,751,364.70
service
Net increase of customer
loans and advances
Net increase of deposits in
central bank and interbank
Cash paid for original
insurance contract compensation
Cash paid for interest,
commission charge and
commission
Cash paid for bonus of
guarantee slip
Cash paid to/for staff and
1,270,834.36 280,550.00
workers
Taxes paid 3,245,986.75 3,465,899.30
Other cash paid concerning
5,337,549.73 17,442,211.93
operating activities
Subtotal of cash outflow arising
24,852,992.06 22,940,025.93
from operating activities
Net cash flows arising from
2,360,386.21 -20,647,074.69
operating activities
II. Cash flows arising from
investing activities:
Cash received from
recovering investment
Cash received from investment
income
Net cash received from
disposal of fixed, intangible and 967,298.00
other long-term assets
Net cash received from
disposal of subsidiaries and other 0.00 0.00
units
Other cash received concerning 0.00 0.00
45
承德大路股份有限公司 2012 年半年度报告全文
investing activities
Subtotal of cash inflow from
0.00 967,298.00
investing activities
Cash paid for purchasing
fixed, intangible and other 102,569.50
long-term assets
Cash paid for investment
Net increase of mortgaged
loans
Net cash received from
0.00 0.00
subsidiaries and other units
Other cash paid concerning
700,000.00 0.00
investing activities
Subtotal of cash outflow from
802,569.50 0.00
investing activities
Net cash flows arising from
-802,569.50 967,298.00
investing activities
III. Cash flows arising from
financing activities
Cash received from absorbing
investment
Including: Cash received
from absorbing minority
shareholders investment by
subsidiaries
Cash received from loans 13,000,000.00
Cash received from issuing
bonds
Other cash received
0.00 0.00
concerning financing activities
Subtotal of cash inflow from
0.00 13,000,000.00
financing activities
Cash paid for settling debts 2,283,616.44
Cash paid for dividend and
profit distributing or interest 2,414,480.80
paying
Including: Dividend and profit
of minority shareholder paid by
subsidiaries
46
承德大路股份有限公司 2012 年半年度报告全文
Other cash paid concerning
3,090,000.00 0.00
financing activities
Subtotal of cash outflow from
5,504,480.80 2,283,616.44
financing activities
Net cash flows arising from
-5,504,480.80 10,716,383.56
financing activities
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash
-3,946,664.09 -8,963,393.13
equivalents
Add: Balance of cash and
cash equivalents at the period 5,517,692.29 9,723,008.25
-begin
VI. Balance of cash and cash
1,571,028.20 759,615.12
equivalents at the period -end
6. Cash Flow Statement of parent company
Unit: RMB
Item Amount in this period Amount in last period
I. Cash flows arising from operating activities:
Cash received from selling commodities and
providing labor services
Write-back of tax received
Other cash received concerning operating
283,269.76 337,509.50
activities
Subtotal of cash inflow arising from operating
283,269.76 337,509.50
activities
Cash paid for purchasing commodities and
receiving labor service
Cash paid to/for staff and workers 17,900.00 93,600.00
Taxes paid 50.00
Other cash paid concerning operating
265,319.76 247,722.30
activities
Subtotal of cash outflow arising from operating
283,269.76 341,322.30
activities
Net cash flows arising from operating activities 0.00 -3,812.80
II. Cash flows arising from investing activities:
Cash received from recovering investment
47
承德大路股份有限公司 2012 年半年度报告全文
Cash received from investment income
Net cash received from disposal of fixed,
intangible and other long-term assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning investing
0.00 0.00
activities
Subtotal of cash inflow from investing activities 0.00 0.00
Cash paid for purchasing fixed, intangible
and other long-term assets
Cash paid for investment
Net cash received from subsidiaries and other
units
Other cash paid concerning investing
0.00 0.00
activities
Subtotal of cash outflow from investing
0.00 0.00
activities
Net cash flows arising from investing activities 0.00 0.00
III. Cash flows arising from financing activities
Cash received from absorbing investment
Cash received from loans
Cash received from issuing bonds
Other cash received concerning financing
0.00 0.00
activities
Subtotal of cash inflow from financing activities 0.00 0.00
Cash paid for settling debts
Cash paid for dividend and profit
distributing or interest paying
Other cash paid concerning financing
0.00 0.00
activities
Subtotal of cash outflow from financing
0.00 0.00
activities
Net cash flows arising from financing activities 0.00 0.00
IV. Influence on cash and cash equivalents due
to fluctuation in exchange rate
V. Net increase of cash and cash equivalents 0.00 -3,812.80
Add: Balance of cash and cash equivalents at 4,019.80 37,197.70
48
承德大路股份有限公司 2012 年半年度报告全文
the period -begin
VI. Balance of cash and cash equivalents at the
4,019.80 33,384.90
period -end
7. Consolidated Statement on Changes of Owners' Equity
Amount in this period
Amount in this period
Owners' equity attributable to the parent company
Paid-up General Total
Items Minoritys
Less: Reasona
capital Capital Surplus risk Retaine owners
Treasur ble Others equity
(Share reserves reserves provisio d profit equity
y Stock reserve
capital) n
-1,257,7
I. Balance at the end of last 706,320 450,765, 76,791, 1,954,448 -21,927,58
59,031.8
year ,000.00 443.10 550.17 .88 9.69
4
Add: Changes of accounting
policy
Error correction of
the last period
Others
-1,257,7
II. Balance at the beginning of 706,320 450,765, 76,791, 1,954,448 -21,927,58
59,031.8
this year ,000.00 443.10 550.17 .88 9.69
4
III. Increase/ Decrease in this
year (Decrease is listed
with'"-")
-15,704, -1,954,44 -17,659,42
(i) Net profit
981.50 2.14 3.64
(ii) Other consolidated income
-15,704, -1,954,44 -17,659,42
Subtotal of (i)and (ii)
981.50 2.14 3.64
(III) Owners' devoted and
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
decreased capital
1. Owners' devoted capital
2. Amount calculated into
owners' equity paid in shares
3. Others
(IV)Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1．Withdrawal of surplus
0.00
reserves
49
承德大路股份有限公司 2012 年半年度报告全文
2．Withdrawal of general risk
0.00
provisions
3．Distribution for owners
(shareholders)
4. Others
(V) Carrying forward internal
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners' equity
1．Capital reserves conversed to
capital (share capital)
2．Surplus reserves conversed
to capital (share capital)
3．Remedying loss with
surplus reserve
4. Others
(VI) Reasonable reserve 0.00
1．Withdrawal in this period
2．Usage in this period
(VII) Other
-1,273,4
IV. Balance at the end of the 706,320 450,765, 76,791, -39,587,01
64,013.3 6.74
report period ,000.00 443.10 550.17 3.33
4
Amount in last period
Unit: RMB
Amount in last period
Owners' equity attributable to the parent company
Paid-up General Total
Items Less: Reasona Minoritys
capital Capital Surplus risk Retaine owners
Treasur ble Others equity
(Share reserves reserves provisio d profit equity
y Stock reserve
capital) n
-1,261,4
I. Balance at the end of last 706,320, 450,765, 76,791, 2,869,338 -24,655,90
02,234.3
year 000.00 443.10 550.17 .07 2.96
0
Add: retroactive
adjustment arising from
enterprise consolidation under
the same control
Add: Changes of
accounting policy
Error correction of
50
承德大路股份有限公司 2012 年半年度报告全文
the last period
Others
-1,261,4
II. Balance at the beginning of 706,320, 450,765, 76,791, 2,869,338 -24,655,90
02,234.3
this year 000.00 443.10 550.17 .07 2.96
0
III. Increase/ Decrease in this
3,643,20 -914,889. 2,728,313.
year (Decrease is listed
2.46 19 27
with'"-")
3,643,20 -914,889. 2,728,313.
(i) Net profit
2.46 19 27
(ii) Other consolidated income
3,643,20 -914,889. 2,728,313.
Subtotal of (i)and (ii)
2.46 19 27
(III) Owners' devoted and
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
decreased capital
1. Owners' devoted capital
2. Amount calculated into
owners' equity paid in shares
3. Others
(IV)Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1．Withdrawal of surplus
0.00
reserves
2．Withdrawal of general risk
0.00
provisions
3．Distribution for owners
(shareholders)
4. Others
(V) Carrying forward internal
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners' equity
1．Capital reserves conversed
to capital (share capital)
2．Surplus reserves conversed
to capital (share capital)
3．Remedying loss with
surplus reserve
4．Others
(VI) Reasonable reserve
1．Withdrawal in this period
51
承德大路股份有限公司 2012 年半年度报告全文
2．Usage in this period
(VII) Other
-1,257,7
IV. Balance at the end of the 706,320, 450,765, 76,791, 1,954,448 -21,927,58
59,031.8
report period 000.00 443.10 550.17 .88 9.69
4
8. Statement on Changes of Owners' Equity of Parent Company
Amount in this period
Unit: RMB
Amount in this period
Paid-up
Less: General Total
Item capital Capital Reasonable Surplus Retained
Treasury risk owners
(Share reserves reserve reserves profit
Stock reserve equity
capital)
706,320,00 449,365,88 76,791,550 -1,256,324, -23,846,99
I. Balance at the end of last year
0.00 6.69 .17 427.26 0.40
Add: Changes of accounting
policy
Error correction of the
last period
Others
II. Balance at the beginning of 706,320,00 449,365,88 76,791,550 -1,256,324, -23,846,99
this year 0.00 6.69 .17 427.26 0.40
III. Increase/ Decrease in this
year (Decrease is listed with'"-")
-639,546.1 -639,546.1
(i) Net profit
5 5
(ii) Other consolidated income
-639,546.1 -639,546.1
Subtotal of (i)and (ii)
5 5
(III) Owners' devoted and
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
decreased capital
1. Owners' devoted capital
2. Amount calculated into
owners' equity paid in shares
3. Others
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1．Withdrawal of surplus reserves
2. Withdrawal of general risk
52
承德大路股份有限公司 2012 年半年度报告全文
reserve
3. Distribution for owners
(shareholders)
4. Others
(V) Carrying forward internal
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners' equity
1. Capital reserves conversed to
capital (share capital)
2. Surplus reserves conversed to
capital (share capital)
3. Remedying loss with surplus
reserves
4. Others
(VI) Reasonable reserve 0.00
1. Withdrawal in this period
2. Usage in this period
(VII) Other
IV. Balance at the end of the 706,320,00 449,365,88 76,791,550 -1,256,963, -24,486,53
report period 0.00 6.69 .17 973.41 6.55
Amount in last year
Unit: RMB
Amount in last year
Paid-up
Less: General Total
Item capital Capital Reasonabl Surplus Retained
Treasury risk owners
(Share reserves e reserve reserves profit
Stock reserve equity
capital)
706,320,00 449,365,88 76,791,550 -1,271,759, -39,281,78
I. Balance at the end of last year
0.00 6.69 .17 225.93 9.07
Add: Changes of accounting
policy
Error correction of the
last period
Others
II. Balance at the beginning of 706,320,00 449,365,88 76,791,550 -1,271,759, -39,281,78
this year 0.00 6.69 .17 225.93 9.07
III. Increase/ Decrease in this
year (Decrease is listed with'"-")
(i) Net profit 15,434,798 15,434,798
53
承德大路股份有限公司 2012 年半年度报告全文
.67 .67
(ii) Other consolidated income
15,434,798 15,434,798
Subtotal of (i)and (ii)
.67 .67
(III) Owners' devoted and
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
decreased capital
1. Owners' devoted capital
2. Amount calculated into
owners' equity paid in shares
3. Others
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Withdrawal of surplus reserves
2. Withdrawal of general risk
reserve
3. Distribution for owners
(shareholders)
4. Others
(V) Carrying forward internal
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners' equity
1. Capital reserves conversed to
capital (share capital)
2. Surplus reserves conversed to
capital (share capital)
3. Remedying loss with surplus
reserves
4. Others
(VI) Reasonable reserve
1. Withdrawal in this period
2. Usage in this period
(VII) Other
IV. Balance at the end of the 706,320,00 449,365,88 76,791,550 -1,256,324, -23,846,99
report period 0.00 6.69 .17 427.26 0.40
(III) Basic information
1. Background
Chengde DaLu Co., Ltd.( Hereinafter referred to as " the Company" or the "Company") was formerly known as
54
承德大路股份有限公司 2012 年半年度报告全文
Chengde DiXian Knitting Co., Ltd( Hereinafter referred to as "DIXIAN stock), and was reorganized on November
3, 1999 by sponsorship, approved by the people's Government of Hebei Province with the issue of Ji shares do
[1999]36, The sponsors were Mr. Wang Shuxian, Hebei province Chengde County North Industrial Company,
Chengde City Longfeng cosmetics company and Chengde County Board Town of Red Star plastic products factory
and Mr. Wang Zhengsong. The registered capital was RMB100, 000,000 at establishment, and it was divided into
100,000,000 shares with one Yuan of face value per share, during which 85,100,000 shares were held by Mr. Wang
Shuxian. On November 13, 2009, the company changed its name to Chengde DaLu Co., Ltd upon resolution of the
board of directors.
According to the issue [2000] 121 by the China Securities Regulatory Commission (hereinafter referred to as "
CSRC “) on August 29, 2000, the company issued 100,000,000 foreign capital stocks listed in China (hereinafter
referred to as the " B “) on September 19, 2000 on Shenzhen stock exchange; and excised the overallotment option
to increase issuing 15,000,000 B shares from September 29to October 29, 2000. The registered capital of the
company after the issuance of B shares was RMB 215,000,000, and was divided into 215,000,000 shares with one
Yuan of face value per share.
According to the resolution of the shareholders meeting on March 12, 2002, The Company allotted 43,000,000
bonus shares to all of the shareholders according to the proportion of 2 free shares for every 10 shares, and
meanwhile increased 107500000 shares to all of the shareholding by transferring from capital reserve according to
5 shares free for every 10 shares. The registered capital of the company was changed to RMB 365,500,000 after it
allotted bonus shares and increased by transferring.
According to the resolution of the shareholders meeting on July 22, 2003, The Company allotted 73,100,000
bonus shares to all of the shareholders according to the proportion of 2 free shares for every 10 shares, and the
registered capital of the company was changed to RMB 438,600,000 after such bonus shares were allotted.
On March 11, 2004, approved by the Ministry of Commerce of the People's Republic of China, the company was
allowed to be changed to Foreign-Funded Joint Stock Companies Limited.
On July, 2004, the company increased 150,000,000 B shares directionally, during which 91,300,000 shares were
subscribed in HK$, and another 58,700,000 shares were subscribed in RMB, upon check by China Securities
Regulatory Commission with the issue [2004] No.101.
According to the resolution of the shareholders meeting on June 8, 2006, The Company allotted 117,720,000
bonus shares to all of the shareholders according to the proportion of 2 free shares for every 10 shares,
On August 4, 2008, according to the judgment ruled by Shenzhen Intermediate People's court, 112,324,800
sponsor shares held by Wang Shuxian was compensated to ChenRong for RMB 45,491,544 Yuan, and on August
15, 2008, 96,000,000 sponsor shares held by Wang Shuxian was compensated to Chenrong for RMB 38,880,000
Yuan according to the judgment ruled by Dalian Intermediate People's court.
On November 11, 2009, according to “reply to the approval of capital increase, and change of share as well as
name of Chengde DiXian Knitting Co., Ltd” with No.143 [2009] by Bureau of Commerce of Hebei Province, it
agreed that the company increased 150,000,000 foreign shares listed in China in 2004 and allotted 2 bonus shares
free for every 10 shares in 2006; and it agreed that 208324800 shares of Dixian stock held by Wang Shuxian
Dixian was changed to Chen Rong ; as well as the name of the company changed to Chengde DaLu Co., Ltd
The total share capital was 706,320,000 shares and the registered capital of the company was RMB 706,320,000
Yuan after the company increased and allotted, which has been validated by ZhongLei CPA Co., Ltd, who
provided the capital verification report with [2010] No. 10009.
On April 6, 2012, Mr. Chen Rong, as the largest shareholder of company, signed a share transfer agreement with
Mr. Wang Dong, and transferred all of the 208,324,800 shares held by himself (accounting for 29.49% of total
55
承德大路股份有限公司 2012 年半年度报告全文
capital stock of the company) to Mr. Wang Dong. The procedure for equity transfer has been finished.
2. Business scope
Production and processing of series of knitting, woven series, high-grade suits, children series, packing materials,
paper and paper products as well as all kinds of paper and synthetic silk, sales of self-made products. The company
and its subsidiaries imports knitted fabrics, woven fabrics of various raw materials for the production and the
production equipment and accessories for self-use.
The company subsidiary, Chengde County Rong Tatsu Real Estate Development Company Limited, is engaged in
real estate development.
(IV) Major accounting policies, accounting estimates and correction of prior period
errors
1. Basis of preparation of the financial statements
The company shall, on the basis of continuous operation, recognize and measure the actually occurred transactions
and events according to “the accounting standards for enterprises-basic standards” issued by the Ministry of
Finance on February 2006 and thirty-eight concrete accounting standards and its application guidance and its
interpretation as well as the provision of other accounting standards, and then prepare the financial statements.
2. A declaration on the compliance with the Accounting Standards for Enterprises
The financial statements of the company has been prepared in accordance with the regulations of enterprise
accounting standards, and present fairly, in all material respects, the financial position of the company, and the its
operation results and cash flows.
3. Accounting fiscal year
The fiscal year begins on the Gregorian calendar January 1st, and ends on December 31st. and this reporting
period began on January 1st, and ended on June 30th 2012.
4. Reporting Currency
The reporting currency of the company is Renminbi (“RMB”).
The reporting currency of the oversea subsidiaries
5. Accounting for business combinations under the same control and not under the same
control
(1) Business combinations under the same control
Equity method is adopted by the company for the business combination under the same control, and the assets and
liabilities of the combined party in a business combination shall be measured on the basis of their carrying amount
56
承德大路股份有限公司 2012 年半年度报告全文
in the combined party on the combining date, except the necessary adjustment due to different accounting policy.
As for the balance between the carrying amount of the consideration paid by it (or the total par value of the shares
issued) and the carrying amount of the net assets obtained by the combining party, the additional paid-in capital
shall be adjusted. If the additional paid-in capital is not sufficient to be offset, the retained earnings shall be
adjusted.
The cost for the business combination of the company as the combining party shall, including the expenses for
audit, legal services and assessment, be recorded into the profits and losses at the current period. The bonds issued
for a business combination or the handling fees and commissions for assuming other liabilities shall be recorded
into the amount of initial measurement of the bonds or other debts. The handling fees and commissions for the
issuance of equity securities for the business combination shall be credited against the surplus of equity securities;
if the surplus is not sufficient, the retained earnings shall be offset.
(2) Business control not under the same control
The purchase method is adopted by the company for the business combination not under the same control. The
combination costs shall be the fair values, on the acquisition date, of the assets paid, the liabilities incurred or
assumed and the equity securities issued by the acquirer in exchange for the control on the acquiree. The cost for
the business combination of the company as the acquirer shall, including the expenses for audit, legal services and
assessment as well as other related management expenses be recorded into the profits and losses at the current
period. The transaction cost for the issuance of equity securities or debt securities for the consideration shall be
recorded into the initial recognition amount of the equity securities or debt securities.
The combination costs determined at the acquisition date shall be the initial investment cost of the long-term
equity investment acquired from acquisition of common stock not under the same control, and the identifiable
assets and liabilities acquired from the statutory merger not under the same control shall be stated at their fair value
on the acquisition date. The positive balance between the combination costs and the fair value of the identifiable
net assets it obtains from the acquiree shall be stated as business reputation; and the negative difference of the
combination costs and the fair value of the identifiable net assets is obtains from the acquire shall be recorded into
combined current profit and loss after check.
6. Preparation method for consolidated financial statements
(1) Preparation method for consolidated financial statements
The financial statements are prepared on the basis of control, and the scope of the consolidated financial
statements includes the company and all of its subsidiaries.
The consolidated financial statements of the company are prepared according to “Accounting Standards for
Enterprises No.33–Consolidated Financial Statements” and related regulations, and all of the significant internal
transactions and business contacts in the consolidated scope shall be offset at the combination. The shareholders
equity of the subsidiaries not belonging to the parent company shall be listed singly as the ministry interest under
the shareholders equity in the consolidated financial statements.
If the accounting policy or the accounting period is different between the subsidiaries and the company, it is
necessary to adjust the financial statements of the subsidiaries according to the accounting policy or accounting
57
承德大路股份有限公司 2012 年半年度报告全文
period of the company at the preparation of the consolidated financial statements.
For the subsidiaries acquired from the business combination not under the same control, it shall adjust the
individual financial statements based on its fair value of the identifiable net assets at the acquisition date; for the
subsidiaries acquired from the business combination under the same control, it shall be regarded as the reporting
entity formed after combination and continues to exist integratedly from the control by the final controlling party
comes into operation, and it shall adjust the beginning amount of the consolidated balance sheet, as well as the
related items of the comparative financial statements at the same time.
(2) Accounting for the equity of the same subsidiaries to be disclosed that is purchased and
then sold, or sold and then purchased during two accounting periods continuously
7. Recognition for cash and cash equivalents
Cash and cash equivalents included in cash-flow statement are short-term(within three months of maturity since
purchase date), highly liquid investments that are readily convertible to known amounts of cash and subject to
limited risk on changes in value.
8. Foreign currency transaction and translation of foreign currency statements
(1) Foreign currency transaction
Transactions denominated in foreign currencies are translated into the reporting currency at the spot exchange rates
prevailing on the day when the transactions take place.
Monetary assets denominated in foreign currency at the balance sheet date are translated at the spot exchange rate,
and the exchange difference arising from the different spot exchange date at the balance sheet date and at the initial
recognition or the previous balance sheet date shall be recorded into finance expenses; the non-monetary items
denominated in foreign currency stated at its historical cost shall be translated at the spot exchange rate on the day
when the transactions take place; and non-monetary item denominated in foreign currency stated at its fair value
shall be translated at the spot exchange date on the day when the fair value is determined, and the difference
between the amount in reporting currency after translation and the carrying amount in original reporting currency
shall be recorded into current profit and loss as income from changes in fair value, and the exchange difference
related to non-monetary items in foreign currency available for sale shall be recorded into capital reserves.
(2) Translation of foreign currency statements
Translation of items in foreign currency at the balance sheet date: the assets and liabilities in the balance sheet
shall be translated at the spot exchange rate at the balance sheet, and the items of owners equity except
“undistributed profit” shall be translated at the spot exchange rate on occurrence. The income and expense in the
income statement shall be translated at the spot exchange date on the day when the transactions take place.
58
承德大路股份有限公司 2012 年半年度报告全文
When the consolidated financial statement is prepared, the converted difference in foreign currency statements
shall be listed singly as “translation reserve” under the owners equity in the consolidated balance sheet.
9. Financial instruments
"Financial instruments" refers to the financial assets of the business and constitute the financial liability or equity
instruments of other business
(1) Classification of financial instruments
The financial assets and financial liabilities of the company are divided into five types at the initial recognition:
Financial asset measured by fair value and which change is recorded into current profit and loss, Held-to-maturity
investment, accounts receivable, financial assets available for sale and other financial liabilities.
(2) Recognition and Measurement of Financial Instruments
The financial assets or financial liabilities are stated at their fair value at initial recognition. For the financial assets
and liabilities measured at their fair values and of which the variation is recorded into the profits and losses of the
current period, the transaction expenses thereof shall be directly recorded into the profits and losses of the current
period, and the related transaction expenses of other kinds of financial assets or financial liabilities is recorded into
its initial recognition amount.
①The financial assets and liabilities measured at their fair values and of which the variation is recorded into the
profits and losses of the current period
The financial assets or liabilities which are measured at their fair values and the variation of which is recorded into
the profits and losses of the current period, including transactional financial assets and liabilities and the financial
assets and liabilities which are measured at their fair values and of which the variation is included in the current
profits and losses; the transactional financial assets refers to the stock, bonds, fund and the derivative instruments
not as effective hedging instrument or the assumed financial liabilities to be repurchased in the near future; the
financial assets and liabilities which are measured at their fair values and of which the variation is included in the
current profits and losses is mainly designated on the basis of risk management and strategic investment.
Subsequent measurement shall be carried through for these financial assets or financial liabilities at their fair value.
All realized and unrealized profit and loss of these financial assets or financial liabilities shall be recorded into
current profit and loss except those as effective hedging instruments.
② Held-to-maturity investment
"Held-to-maturity investment" refers to a non-derivative financial asset with the maturity date being fixed, the
repayment being fixed or confirmed and the company has a clear purpose or is capable to hold to maturity.
Effective interest method is adapted to measure held-to-maturity investment at the post-amortization cost during
the holding period. The gains and loss arising from the impairment, amortization or recognition termination of
held-to-maturity investment shall be recorded into current profit and loss. The balance between the price obtained
and the carrying amount of the investment shall be recorded into investment income when held-to-maturity
investment is disposed.
③ Accounts receivable
“Accounts receivable” is the claims of the sale of goods or rendering of service, including accounts receivable,
other receivables and long-term receivables.
59
承德大路股份有限公司 2012 年半年度报告全文
The accounts receivable shall be recognized initially at the price stipulated in the contract or agreement to be
received from the purchaser and it is measured at the post-amortization cost using the effective interest method.
The balance between the price obtained and the carrying amount of the accounts receivable shall be recorded into
current profit and loss at recovery and disposal.
④ Financial assets available for sale
Financial assets available for sale refers to the non-derivative financial assets available for sale designated at initial
recognition, and the financial assets except those three kinds of financial assets above. Subsequent measurement
shall be carried through for such kind of financial assets at their fair value, and the discount and premium shall be
amortized using effective interest method and recognized as interest income. The change in the fair value of the
financial assets available for sale shall be recognized as the independent part of capital reserve when the said
financial assets is stopped from recognition or is impaired with the exception of the impairment loss and the
exchange difference arising from the monetary financial assets in foreign currency which shall be recorded into
current profit and loss, and the accumulative gains or loss recorded into capital reserve before shall be transferred
into current profit and loss. The dividends or interest income related to the financial assets available for sale shall
be recorded into current profit and loss.
⑤ Other financial liabilities
Other financial liabilities refer to the financial liabilities which isnt designated to be measured by fair value and
which change is recorded in current profit and loss.
Other liabilities are measured at the post-amortization cost or cost. The gains or loss arising from the amortization
and the recognition termination of the other liabilities shall be recorded into current profit and loss.
(3) Recognition and measurement for transfer of financial assets
①Where the company has transferred nearly all of the risks and rewards related to the ownership of the financial
asset to the transferee; or it does not transfer or retain nearly all of the risks and rewards related to the ownership of
a financial asset but gives up its control over the financial asset, it shall stop recognizing the financial asset.
②If the transfer of an entire financial asset satisfies the conditions for stopping recognition; the difference between
the amounts of the following two items shall be recorded in the profits and losses of the current period:
A. The book value of the transferred financial asset
B. The sum of consideration received from the transfer and the accumulative amount of the changes of the fair
value originally recorded in the owner's equities.
③If the transfer of partial financial asset satisfies the conditions to stop recognition, the entire book value of the
transferred financial asset shall, between the portion whose recognition has been stopped and the portion whose
recognition has not been stopped, be apportioned according to their respective relative fair value, and the
difference between the amounts of the following two items shall be included into the profits and losses of the
current period:
A. The book value of the portion whose recognition has been stopped;
B. The sum of consideration of the portion whose recognition has been stopped, and the portion of the
accumulative amount of the changes in the fair value originally recorded in the owner's equities which is
corresponding to the portion whose recognition has been stopped
④ If the transfer of the financial asset doesnt satisfy the condition to stop the recognition, it shall continue to
recognize the financial asset and shall recognize the consideration it receives as a financial liability.
⑤ If the company is continuously involved in the transferred financial asset, it shall recognize a financial asset
according to the extent of its continuous involvement in the transferred financial asset, and recognize a financial
60
承德大路股份有限公司 2012 年半年度报告全文
liability at the same time.
(4) Recognition for termination of financial liabilities
Only when the prevailing obligations of a financial liability are relieved in all or in part may the recognition of the
financial liability be terminated in all or partly.
(5) Determination method for the fair value of financial assets and financial liabilities
①As for the financial assets or financial liabilities for which there is an active market, the quoted prices in the
active market shall be used to determine the fair values thereof.
②Where there is no active market for a financial instrument; the company shall adopt value appraisal techniques
to determine its fair value.
(6) Provision for impairment of financial assets(except accounts receivable)
The company shall carry out an inspection, on the balance sheet day, on the carrying amount of the financial assets
(except accounts receivable). Where there is any objective evidence proving that such financial asset has been
impaired, an impairment provision shall be made.
①Held-to-maturity investment
The loss on impairment shall be determined according to the balance of the carrying amount and the present value
of the predicted future cash flow. It is accounted for according to the measurement method for loss impairment of
accounts receivable.
If there is any objective evidence proving that the value of the said financial asset has been restored, and it is
objectively related to the events that occur after such loss is recognized, the impairment loss as originally
recognized shall be reversed and be recorded into the profits and losses of the current period. However, the
reversed carrying amount shall not be any more than the post-amortization costs of the said financial asset on the
day of reverse under the assumption that no provision is made for the impairment.
② Financial assets available for sale
If there is any objective evidence proving that the fair value of the financial assets available for sale drops
significantly or not contemporarily, it can recognize that such financial assets available for sale has been impaired,
and shall recognize loss on impairment. Where the financial asset available for sale is impaired, the accumulative
losses arising from the decrease of the fair value of the owners equity which was directly included shall be
transferred out at the same time when the impairment loss is recognized and recorded into the profits and losses of
the current period. The said accumulative loss transferred out equals the balance of the initial acquisition cost of
the financial asset available for sale deducting the reversed principal, the amortized amount, current fair value and
the impairment loss that has been recorded into profit and loss originally.
As for the sellable debt instruments whose impairment losses have been recognized, if, within the accounting
period thereafter, the fair value has risen and are objectively related to the subsequent events that occur after the
originally impairment losses were recognized, the originally recognized impairment losses shall be reversed and be
recorded into the profits and losses of the current period. The impairment losses incurred to a sellable equity
instrument investment shall not be reversed through profits and losses.
61
承德大路股份有限公司 2012 年半年度报告全文
(7) The outstanding held-to-maturity investment is to be re-classifies as the financial asset
available for sale, and the basis of explanation to the intention and capability of holding
investment are being changed
10. Recognition of provision for bad debts of account receivable
The company conducts an impairment test on the financial assets with significant single amounts. If any objective
evidence shows that it has been impaired, the impairment losses shall be recognized and the provision for bad
debts shall be made.
Except the accounts receivable which the impairment loss have been made singly and those receivables inside the
consolidated scope, the company regards aging as credit risk feature grouping, and based on actual loss ratio of
receivables in different groups divided as per account age in previous ears and in consideration of current status,
the Company shall decide the ratio for appropriation of provisions for doubtful accounts in different account age
segments in current year, and thus calculate the appropriated provisions for doubtful accounts.
(1) Bad debt provision for accounts receivable with significant single amounts
The Company deems the receivables with single amount over RMB
Judgment basis or amount standard for
1,000,000 (RMB 1,000,000) as significant single amount according to
significant single amount
the operation scale and business character.
Receivables with significant single The company conducts an impairment test on the accounts receivable
amount and with appropriation of with significant single amounts. If any objective evidence shows that it
provisions for doubtful accounts on has been impaired, the impairment losses shall be recognized and the
single amount provision for bad debts shall be made.
(2) Accounts receivable with appropriation of provisions for bad debt as per grouping
Standard for bad debt
Name of grouping provision against group of Basis of group determination
accounts receivables
Amounts of bad debt provision for
accounts receivable which single The accounts receivable which obvious evidence exists
amount is not significant, but the Aging analysis method showing that it is unrecoverable, and with over three years of
portfolio risk is significant after aging.
grouped by credit risk feature
Bad debt provision is made in group using aging analysis method:
√A □NA
Provision proportion for accounts Provision proportion for other
Aging
receivable (%) receivables (%)
62
承德大路股份有限公司 2012 年半年度报告全文
Within one year (including one
5% 5%
year)
One to two years 20% 20%
Two to three years 50% 50%
Over three years 100% 100%
Three to four years
Four to five years
Over five years
Bad debt provision is made using Percentage of total account receivable outstanding
□ A √NA
Bad debt provision is made using other methods:
□A √ NA
(3) Receivables with non-significant amount but with appropriation of provision for bad
debts on single amount
Reason for appropriation of provision for bad debts on single amount:
For receivables which have non-significant amount but clearly different individual credit risk feature and have
been depreciated with objective evidences, the provision for doubtful accounts appropriated as per aging analysis
method cannot reflect actual conditions.
Provision for bad debt:
The company shall conduct impairment test singly, and recognize impairment loss according to the present value
of future cash flow lower than its carrying amount, and then make corresponding provision for bad debt on the
basis of provision for bad debt which has been made by aging.
11. Inventories
(1) Classification of inventory
Inventory means the materials, Auxiliary Material, spare parts for repair, revolving materials, merchandise
inventory, work-in-process under production, finished goods, development cost and products to be developed etc.
the development cost includes the land cost, construction cost and other cost related to real estate development
under construction; the product to be developed refers to the land purchased and prepared to be developed into real
estate development.
(2) Valuation method for issuing of inventories
□First-in first-out method (FIFO) √Weighed average method □Specific identification method □other
63
承德大路股份有限公司 2012 年半年度报告全文
The Company shall valuate the issuing of inventories as per weighed average method once at the end of month.
The actual cost of the developed products include land-transferring fees, and expenditure of basic supporting
facilities, expenditure of construction installment project, and borrowing expense related before the completion of
developed project and other related expenses during the process of development. The actual cost shall be
confirmed using specific identification method when the developed product is issued.
(3) Determination standard for the net realizable value of inventory and provision for
depreciation of inventory
During regular production and operation process, for the inventories directly used for sale such as merchandise
inventory and the materials for sale etc, the net realizable value shall be decided as per its estimated selling price
reduced by estimated selling expenses and related tax.
For the materials inventory needed to be built or processed,, during regular production and operating process, the
net realizable value shall be decided according to the estimated price of the finished goods built or processed less
the cost to be generated, and the estimated selling expenses and related tax until completion of the project,
For the inventories held for implementing sales agreement or service contract, the Company shall make the
contract price as valuation basis of the net realizable value; if the amount of inventories held are bigger than the
order amount in the sales contract, the Company shall make general sales price as the valuation basis for the net
realizable value of the exceeding part of the inventories. For the inventories without sales agreement(excluding
materials for sale), the company shall make the general sales price (namely marketing price) as the valuation basis
for its net realizable value; For material used for sale, the Company shall make market price as the valuation basis
for its net realizable value.
The company shall check over the inventories at the balance sheet date, and the provision for depreciation of
inventories shall be made or adjusted according to the lower of inventories cost and its net realizable value. The
provision for depreciation of inventories shall be appropriated as per individual inventories, and for the inventories
with big amount and lower price, appropriated as per classified groups of inventories. For the inventories related to
the series of products manufactured and sold in the same area, and of which the final use or purpose is identical or
similar there to, and if it is difficult to measure them by separating them from other items, the provision for
depreciation of inventories shall be made on a combination basis.If the influencing factors for writing down
inventory value before the date of balance sheet have disappeared, the Company shall restore the amount written
down, and return the amount in the appropriated provision for depreciation of inventories, which shall be attributed
to the net profit or loss of current period.
(4) Inventory system
√Perpetual inventory system □Periodic inventory system □Other
The company adopts perpetual inventory system.
(5) Amortization method for low value consumables and packing materials
Low value consumables
64
承德大路股份有限公司 2012 年半年度报告全文
Amortization method: one-off amortization method
The low-value consumables shall be amortized using one-off amortization method upon incurring.
Packing materials
Amortization method: one-off amortization method
The packing materials shall be amortized using one-off amortization method.
12. Long-term equity investment
(1) Recognition of initial investment cost
①Long-term equipment due to business merger under the same control
The initial investment cost for long-term equity investment due to business merger under the same control shall be
stated at the net attributable carrying value of the merged party after being adjusted according to the accounting
policies of the company and obtained at the date of merger.
②Long-term equipment due to business merger not under the same control
The initial investment cost for long-term equity investment due to business merger not under the same control shall
be stated at the combined cost at the purchasing date.
If the business merger which is not under the same control is realized via several transactions in process, the initial
investment cost shall be stated at the sum of the carrying value of held equity investment of the purchased party
before the purchasing date and the newly-increased investment cost at the purchasing date.
③long-term equity invest obtained by other means
The initial investment cost of a long-term equity investment obtained by making payment in cash shall be the
purchase cost which is actually paid.
For the long-term equity investment acquired by issuing equity securities, the fair value of equity securities
(excluding the declared but not distributed cash dividends and profits obtained from the investee) shall be made as
the investment cost.
For the long-term equity investment made by the investors, the value specified in the investment contract or
agreement shall be made as the investment cost, except that the value specified in the contract or agreement is
unfair.
Where a non-monetary assets transaction that the transaction is commercial in nature; and the fair value of the
assets received or surrendered can be measured reliably, the fair value of the assets surrender shall be regarded as
the initial investment cost for the long-term equity investment received in exchange for non-monetary assets.,
unless there is any exact evidence showing that the fair value of the assets received is more reliable. Where any
non-monetary assets transaction does not meet the above conditions, the carrying value and relevant payable taxes
of the assets surrendered shall be the initial investment cost of the assets received. The initial cost of a long-term
equity investment obtained by recombination of liabilities shall be stated according to the fair value.
(2) Subsequent measurement and confirmation method for profit and loss
Where the company has joint control or significant influence over the investee, and the investment is not quoted in
an active market and its fair value cant be reliably measured, a long-term equity investment is accounted for using
the cost method. Where the company has joint control or significant influence over the investee, a long-term equity
investment is accounted for using the equity method
65
承德大路股份有限公司 2012 年半年度报告全文
When a long-term equity investment is accounted for using Cost method:
1. If the initial investment cost of long-term equity investment is larger than the fair value of identifiable net assets
of the investee entitled to from the investment, the initial investment cost of long-term equity investments shall not
be adjusted; If the initial investment cost of long-term equity investment is smaller than the fair value of
identifiable net assets of the invested entity gained from the investment, the difference between them shall be
recognized in the consolidated income statement and cost of long-term equity investments adjusted.
After the company obtains a long-term equity investment, it shall, in accordance with the attributable share of the
net profits or losses of the investee, recognize the investment profits or losses and adjust the book value of the
long-term equity investment. The company shall, on the ground of the fair value of all identifiable assets of the
investee when it obtains the investment and offset the shareholding proportion of the unrealized profit and loss
from internal transactions between the Company, affiliated enterprises and joint ventures which is attributable to
the company through calculation according to the accounting policy and accounting period of the company(it shall
recognize entirely if the unrealized internal transaction loss belongs to assets impairment loss), recognize the
attributable share of the net profits and losses of the investee after it adjusts the net profits of the investee.
2. The company shall recognize the net losses of the investee until the book value of the long-term equity
investment and other long-term rights and interests which substantially form the net investment made to the
investee are reduced to zero, unless it has the obligation to undertake extra losses stipulated in the contract or
agreement. If the investee realizes any net profits later, the company shall, after the amount of its attributable share
of profits offsets against its attributable share of the unrecognized losses, resume recognizing its attributable share
of profits.
④The carrying value of long-term equity investment shall be written down against the proportion of profit or cash
dividend to be entitled which has been declared to be distributed by the investee.
⑤As for other changes of owners equity except the net profit and loss of the investee, the company shall adjust
the carrying value of the long-term equity investment against the attributable share calculated in accordance with
shareholding proportion, and increase or decrease capital reserves at the same time.
The company continues using the equity method to account for remaining investment if the investee is sill the
affiliated enterprise or joint ventures after the shareholding proportion decreases, and the profit or loss recognized
in other integrated income (capital reserves) previously shall be carried forward to current profit and loss
according to the proportion of investment disposed.
The company continues using the equity method to account for the investment according to new shareholding
proportion if the investee is sill the affiliated enterprise or joint ventures after the shareholding proportion increases.
The difference between the newly-increased investment cost and the fair value of net identifiable assets of the
investee which is calculated according to newly-increased shareholding proportion shall be disposed in accordance
with above principle; the company shall adjust the carrying amount of long-term equity investment and capital
reserves against the balance between the original carrying amount of such long-term equity investment on the
acquisition of new investment and the fair value of net attributable identifiable assets of the investee which is
calculated according to the shareholding proportion after investment increase less the proportion after the
shareholding proportion is newly-increased.
66
承德大路股份有限公司 2012 年半年度报告全文
(3) Recognition basis for joint control or significant influence over the investee
1. Confirmation of joint control
Joint control means that none of the parties can control the production and operating activities of the joint venture
independently and the decision-making for basic operating activities of the joint venture needs unanimous
agreement of all the Parties.
2. Confirmation of significant influence
Significant influence means having the power to participate in the formulation of financial and operating policies
of an enterprise, but not the power to control or jointly control the formulation of these policies together with other
parties. When the company holds more than 20% (including 20%) but less than 20% voting shares of the investee
directly or indirectly through subsidiaries, the significant influence on the investee shall be confirmed unless there
exists obvious evidence showing the company cant participate in the formulation of production and operating
policies of the investee under such circumstance and no significant influence forms accordingly; when the
company holds less than 20% (excluding 20%) voting shares of the investee, it shall not confirm that it has
significant influence on the investee generally, unless there exits obvious evidence showing the company can
participate in the formulation of production and operation under such circumstance, and can form significant
influence.
(4) Testing method for impairment of long-term equity investment and the way for
appropriation of provision for impairment
1. The Company, at the date of balance sheet, makes estimate of long-term equity investment on subsidiaries, joint
venture and affiliated enterprises, and recognizes the impairment loss against its reclaimable amount lower than its
carrying value. The reclaimable amount shall be determined according to the higher of the fair value of assets
deducting the disposal expenses and its present value of future cash flow. As for the long-term equity investment
that the company has no joint control or significant influence, and no price is quoted in an active market and its
fair value cant be measured reliably, the impairment loss shall be recognized against the difference between its
carrying value and the present value of the future cash flow discounted according the prevailing market return ratio
for similar financial assets when it is impaired. The impairment loss shall be recorded into current profit and loss,
and provision for impairment of long-term equity investment shall be made at the same time.
The provision for impairment of long-term equity investment shall not be returned once being confirmed.
2. Provision for goodwill impairment
The company carries through impairment test at the end of every year against the goodwill arising from business
merger, and the provision for impairment shall be made according to the test results. The provision for goodwill
impairment shall not be returned once being confirmed.
13. Investment real estate
67
承德大路股份有限公司 2012 年半年度报告全文
14. Fixed assets
(1) Recognition of fixed assets
Fixed assets are the tangible assets with service life of more than one year held for production of goods, rendering
of service, lease or operating management. Fixed assets shall be confirmed while following conditions can all be
met:
①The economic interest related to the fixed assets will most likely flow into the company；
②The cost of the fixed assets can be measured reliably.
(2) Recognition and valuation of fixed assets under finance lease
(3) Depreciation method for various fixed assets
Depreciation of fixed assets is provided using the straight line method. The Company shall, since fixed assets
reach the specified usable condition, appropriate depreciation, and terminate to appropriate depreciation when the
fixed asset is stopped to be confirmed or divided into non-current assets held for sale(the fixed assets that have
been fully depreciated but are still in use and the land that is separately measured and included shall be excluded),
without considering the provision for impairment, the economic life and residual value of the fixed asset shall be
estimated according to the type of fixed assets, the annual depreciation rate for each type of fixed asset of the
company are as follows:
Type Depreciation period (year) Residual rate(%) Annual depreciation rate(%)
House and building 25.00 5 3.8
Machinery equipment 7-15 5 6.33-13.57
Electronic equipment 5-10 5 9.5-19
Transportation equipment 5-10 5 9.5-19
Other equipments
Fixed assets under finance lease -- -- --
Including: house and building
Machinery equipment
Electronic equipment
Transportation equipment
Other equipments
(4) Testing method for depreciation of fixed assets and the way for appropriation of
provision for depreciation
At the date of balance sheet, when the assets have an evidence of depreciation, the Company shall estimate its
reclaimable amount; if the reclaimable amount of the assets is lower than its book value, the Company shall write
68
承德大路股份有限公司 2012 年半年度报告全文
down the book value of the assets to its reclaimable amount, the reduced amount shall be recorded into current
profit and loss. The reclaimable amount shall be determined in light of the higher one of net amount of its fair
value less disposal expenses and the present value of the expected future cash flow of the assets. The company
estimates its reclaimable amount based on single-item asset in principal, Where it is difficult to do so, it shall
determine the reclaimable amount of the group assets on the basis of the asset group to which the asset belongs.
Once being confirmed, not be returned in the accounting period afterwards.
(5) Other explanation
15. Construction in progress
(1) Type of construction in progress
The construction in progress refers all necessary expenditure before the fixed assets under acquisition are ready for
their intended use state, including the direct material of project, direct employee compensation, the equipment to
be installed, civil and erection cost, project management cost and net profit and loss of trial run expenses and the
borrowing cost which can be capitalized etc.
(2) The standard and time point for construction in progress transferred to fixed assets
For construction in progress, the Company shall make all the expenditures for this asset to reach usable condition
as the account value of the fixed assets. For the fixed assets reaching usable condition but not preparing the final
account for completion, the Company shall, since the date of reaching usable condition, transfer the estimated
value into fixed assets according to project budget and cost or actual cost of the project and appropriate the
provision for depreciation according to the Company's policy for depreciation of fixed assets; after the procedure
for final account for completion has been ended, the Company shall adjust the original temporarily estimated value
as per actual cost, but not adjust the original appropriated provision for depreciation.
(3) Testing method for depreciation of construction in progress and the way for
appropriation of provision for depreciation
At the date of balance sheet, when the construction in progress have an evidence of depreciation, the Company
shall carry through impairment test singly, and estimate its reclaimable amount; if the reclaimable amount is lower
than its book value, the Company shall write down the book value of the assets to its reclaimable amount, the
reduced amount shall be recorded into current profit and loss and provision for depreciation shall be made at the
same time. The reclaimable amount shall be determined in light of the higher one of net amount of its fair value
less disposal expenses and the present value of the expected future cash flow of the assets. Once being confirmed,
not be returned in the accounting period afterwards.
69
承德大路股份有限公司 2012 年半年度报告全文
16. Borrowing cost
(1) Confirmation principle for capitalization of borrowing cost
The assets eligible for capitalization shall refer to the fixed assets, investment real estate, inventories and other
assets, of which the acquisition and construction or production may take quite a long time to get ready for its
intended use or for sale. The borrowing costs shall include interest on borrowings, amortization of discounts or
premiums on borrowings, ancillary expenses, and exchange balance on foreign currency borrowings etc.
Where the borrowing costs incurred to the company can be directly attributable to the acquisition and construction
or production of assets eligible for capitalization, it shall be capitalized and recorded into the costs of relevant
assets. Other borrowing costs shall be recognized as expenses on the basis of the actual amount incurred, and
shall be recorded into the current profits and losses.
The borrowing costs shall not be capitalized unless they simultaneously meet the following requirements:
①The asset disbursements have already incurred, which shall include the cash, transferred non-cash assets or
interest bearing debts paid for the acquisition and construction or production activities for preparing assets eligible
for capitalization;
②The borrowing costs has already incurred; and
③The acquisition and construction or production activities which are necessary to prepare the asset for its
intended use or sale have already started.
(2) The capitalization period of borrowing cost
The borrowing cost incurred in connection with the assets qualified for capitalization under acquisition and
construction, shall be recorded into the cost of the assets before it is ready for the intended use or sale, and those
incurred after a qualified asset under acquisition and construction or production is ready for the intended use or
sale shall be recorded into the profits and losses of the current period.
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and the
interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended.
Where part of a qualified asset under acquisition and construction is completed separately and can be used singly,
the capitulation of the borrowing costs incurred in connection with such part of assets shall be ceased.
(3) Termination period of capitalization
(4) Calculation procedure for the capitalized amount of borrowing cost
The company calculates the capitalized amount of borrowing costs quarterly.
The to-be-capitalized amount of interests of the specially borrowed loans (minus the income of the
interests earned on the unused borrowing loans as a deposit in the bank or as a temporary investment)
and the ancillary expense incurred to the specifically borrowed loans incurred before a qualified asset
under acquisition, construction or production is ready for the intended use or sale, shall be capitalized
at the incurred amount when they are incurred.
The Company shall calculate and determine the to-be-capitalized amount of interests on the general
70
承德大路股份有限公司 2012 年半年度报告全文
borrowing by multiplying the weighted average asset disbursement of the part of the accumulative
asset disbursements minus the general borrowing by the capitalization rate of the general borrowing
used. The capitalization rate shall be calculated and determined in light of the weighted average interest
rate of the general borrowing.
Where there is any discount or premium, the amount of discounts or premiums that shall be amortized
during each accounting period shall be determined by the real interest rate method, and an adjustment
shall be made to the amount of interests in each period. During the period of capitalization, the
exchange balance on foreign currency borrowings shall be capitalized, and shall be recorded into the
cost of assets eligible for capitalization.
17. Biological assets
18. Oil & gas assets
19. Intangible assets
(1)Valuation method for intangible assets
(1) Initial measurement of intangible assets
The Company accounts its intangible assets at their real acquisition cost.
Where the payment of purchase price for intangible assets is delayed beyond the normal credit
conditions, which is of financing intention, the cost of intangible assets shall be determined on the basis
of the current value of the purchase price.
The book value of the intangible assets acquired as debt assets through the recombination of liabilities
shall be accounted on basis of the fair value of the intangible assets；Under the conditions that the
exchange of non-monetary assets is characterized with business essence, and the fair value of the assets
received or surrendered can be accounted in a reliable way, the book value of assets received is defined
on basis of the fair value of assets surrendered, except there are conclusive evidences for the stronger
reliability of the fair value of assets received. For the exchange of those non-monetary assets not
meeting the above premises, the book value of assets surrendered and related taxes should be
accounted as cost of assets received and the profits and losses shouldnt be concluded.
(2) Subsequent measurement of intangible assets
①Service life of intangible assets
The Company analyzes the service life of the acquired intangible assets. For the intangible assets with limited
service life, the company shall estimate the years of its service life, or the amount of the output or any other similar
measurement unit, which constitutes its service life; If it is unable to forecast the period when the intangible asset
can bring economic benefits to the enterprise, it shall be regarded as an intangible asset with uncertain service life.
71
承德大路股份有限公司 2012 年半年度报告全文
②Amortization of intangible assets
For the intangible assets with limited service life, the economic benefits should be amortized with
Straight-line method; and the company wont adopt amortization upon the intangible assets with indefinite service
life.
At the end of report period, the Company should recheck the service life and amortization method of the intangible
assets and carry through necessary adjustment.
③In case no economic benefit is expected to be brought by some intangible assets to the company at the end of
period, the carrying value of the intangible assets shall be transferred into current profit and loss.
④depreciation of intangible assets
(2) Estimate of service life for the intangible assets with limited life
As for the intangible assets with limited life, its service life shall be estimated taking such factors as follows into
consideration:
-The usual life period of the products made with such assets and the information related to the service life of
similar assets available;
- The ongoing circs on the aspect such as technology and technics and estimation of the development trend in the
future;
- The market demand of the products or rending of service with such assets;
- Ongoing or potential action of the competitor expected to take;
- The expected maintenance expenditure to maintain the ability that economic benefit can be brought by the assets,
and the ability of the expected expenses to be paid out;
- The legal regulations related to the control period of the assets or similar limitation, such as franchise period and
lease period etc;
-The relevance with the service life of other assets held by the company
item estimated service life basis
(3) The judgment basis of the intangible assets with indefinite life.
(4) Provision for depreciation of intangible assets
For the intangible assets with definite service life, the Company practices the impairment testing at end of period
when there is obvious indications of impairment, and estimates its reclaimable amount, When the reclaimable
amount of intangible assets is less than their book value, the book value of intangible assets should be written
down to its reclaimable amount, and the amount of write-down is recognized as an intangible asset impairment
losses, included in current profits and losses, and the corresponding provision for depreciation should be accrued at
the same time. For the intangible assets with uncertain service life, impairment testing should be realized at the end
of each period.
72
承德大路股份有限公司 2012 年半年度报告全文
(5) Criteria for the division of research stage and development stage during internal R&D
(6) Accounting for the expenses during the development stage of internal R&D projects
20. Amortization method for long-term prepaid expenses
Long-term prepaid expenses are expenses that should be allocated into the period in which they are incurred and in
subsequent periods, and be amortized more than one year. Long-term prepaid expenses shall be amortized
averagely during the benefiting period.
If the projects of long-term prepaid expenses are not benefited during the future accounting period, the amortized
value of the projects that have not been amortized shall be transferred to the current profit and loss.
21. Asset transfer with condition of repurchase
22. Accrued liabilities
The company recognizes as accrued liabilities those matters involving the Company in litigation, products quality
guarantees, loss of contracts and reconstruction, which are likely to cause the outflow of economic benefit of the
company, and whose amount can be reliably measured.
(1) Criteria of contingent liabilities
The obligations related to contingent items are defined as accrued liabilities when satisfying the following
conditions:
This obligation means a present obligation for the Company;
The fulfillment of this obligation is likely to lead to outflow of economic benefits of the Company;
The amount of this obligation can be reliably measured.
(2) Measurement of accrued liabilities
On defining the accrued liabilities, if there is a scope of required expenditure to pay off the liabilities, the best
estimated amount should be defined by the average amount of upper and lower limits of the range; if it doesnt
exist a scope, the best estimated amount should be defined by:
The most possibly occurred amount when the contingent items are related to individual project, and by
The combination of different possible results and their probabilities when the contingent items are related to
multiple items.
73
承德大路股份有限公司 2012 年半年度报告全文
23. Share - based payment and equity instrument
(1) Category of share-based payment
(2) Recognition method for fair value of equity instrument
(3) Methods for determining best estimate of quantity of executable equity instruments
(4) Accounting for the implementation, modification and termination of share-based
payment plan
24. Repurchased shares of the company
25. Revenue
(1) Judgment standard for revenue from sales of goods
The Company has already transferred main risk and reward for the property in the goods to the purchaser; it has
neither kept the right of continuous management related to the property in that goods, nor exercised control to the
sold goods; the amount of income can be calculated reliably. The confirmation for revenue shall be recognized.
(2) Income from acquisition of assets use right
The amount of interest income shall be calculated and confirmed according to the time and actual interest rate of
the Company's monetary fund used by other entities. The amount of use right income shall be calculated and
confirmed according to the chargeable time and way specified in a contract or agreement.
(3) The standard and method to recognize the percentage of completion of contract when
income from rendering of service and construction contract income is determined according
to percentage-of-completion method
If the outcome of a construction contract can be estimated in a reliable way, the contract revenue and contract costs
shall be recognized in light of the percentage-of- completion method on the date of the balance sheet. If the
74
承德大路股份有限公司 2012 年半年度报告全文
outcome of a construction contract cannot be estimated in a reliable way, and the contract costs can be recovered,
the contract revenue shall be acknowledged in accordance with contract costs that can be recovered and the
contract costs shall be acknowledged as contract expenses in the current period they are incurred; and If the
contract costs cannot be recovered, these costs shall be acknowledged as contract expenses immediately when
incurred and no contract revenue shall be acknowledged. If the total expected contract costs exceed the total
expected contract revenue, the expected loss shall be recognized as the current expenses.
The company determines the schedule of the project on the basis of the proportion of accumulative actual contract
costs incurred against the expected total contract costs.
The current contract revenues in the current period shall, on the balance sheet date, be recognized in accordance
with the balance of the total contract revenues times the schedule of completion then deducting the accumulated
revenue recognized in previous accounting periods. As for the disbursement which the interest is calculated
according to the stipulated interest rate in construction contract, such as expense for land requisition, survey and
design expenses, Housing construction and installation construction cost, Residential infrastructure construction
cost, it shall calculate the capital occupancy expense singly, which shall be regarded as “financial expenses-interest
income” to write down the total revenue of contract; meanwhile, the current contract expenses in the current period
shall be recognized in accordance with the balance of the expected total contract costs times the schedule of
completion then deducting the accumulated expenses recognized in previous accounting periods.
26. Government subsidy
(1) Classification
Government subsidy means that the Company shall get monetary assets or non monetary assets from the
government without consideration, but the government subsidy shall not include the capital invested by the
government as an enterprise owner. It is divided into the one related to assets and the one related to income.
(2) Accounting method
(1) Confirmation and measurement of government subsidy
The government subsidy meeting attached conditions and actually received by the Company, shall be confirmed as
government subsidy.
If the government subsidy is a monetary asset, it shall be measured as per the amount received or to be received; if
the government subsidy is a non-monetary asset, it shall be measured as per fair value; and if the fair value cannot
be obtained reliably, measured as per nominal amount.
(2) Accounting for government subsidy
The government subsidy related to assets shall be confirmed as deferred income, and allocated averagely during
the service life of the related assets and attributed into the profit and loss of current period.
But the government subsidy measured in nominal amount shall be directly attributed to profit or loss of current
75
承德大路股份有限公司 2012 年半年度报告全文
period.
The government subsidy related to income and used as compensation for related expenses or loss of the Company
during future period shall be confirmed as deferred income, and attributed into the profit and loss of current period
during the period for confirmation of related cost, and the subsidy used as compensation for the related cost or loss
of the Company which has already occurred, shall be directly attributed into the profit and loss of current period.
27. Deferred income tax assets and deferred income tax liabilities
(1) Confirmation of deferred income tax assets
The Company shall, based on the temporary difference between the book value and taxation base of assets and
liability at the date of balance sheet, use debt method of balance sheet to calculate the deferred income tax.
Deferred Income taxes are included into profit or loss for the current period, except for the adjusted goodwill due
to business merger and those related to transactions or events directly recognized in owners equity, which are
recognized directly in owners equity.
For the deductible temporary difference, deductible loss and tax credits which can be transferred to subsequent
years, the Company shall confirm resulted deferred income tax assets within the limit of the future taxable income
amount which is very likely obtained to offset the deductible temporary difference, deductible loss and tax credits,
except for the following
（1）Deductible temporary differences arise from a transaction which is neither a business combination nor affects
accounting profit or taxable profit (or deductible loss) at the time of the transaction;
（2）For deductible temporary differences associated with investments in subsidiaries, associates and joint
ventures, if it is probable that the temporary difference will reverse in the foreseeable future and it is probable that
taxable profits will be available in the future, against which the temporary difference can be utilized, the company
recognizes the corresponding deferred tax asset.
(2) Confirmation of deferred income tax liabilities
The liabilities for deferred income tax shall be confirmed according to various temporary difference of tax payable;
except for temporary difference of tax payable which is generated in following transactions:
（1）Initial confirmation of goodwill
（2）Initial confirmation of assets or liabilities generated from the transactions with following features: Such
transaction is not a business merger, and the occurring of the transaction influences neither taxable income amount
nor deductible loss.
（3）For the temporary difference of tax payable related to investment in subsidiaries, joint ventures and affiliated
enterprises, the time for return of such temporary difference can be controlled and such temporary difference will
most likely not returned in foreseeable future.
76
承德大路股份有限公司 2012 年半年度报告全文
At the balance sheet date, deferred tax assets and deferred tax liabilities are measured at the tax rates that are
expected to apply to the period when the asset is realized or the liability is settled, according to the requirements of
tax laws, and reflect the tax effect of the expected realization of asset and settlement of liability.
At the date of balance sheet, the Company shall recheck the book value of deferred income tax assets. If in future
period, the Company will most likely not obtain adequate taxable amount of income to offset the benefit of the
deferred income tax assets, the Company shall write down the book value of the deferred income tax assets, and
the written-down amount shall be recorded into current income tax expenses. As for the deferred income tax asset
which has been recorded into owners equity at original recognition, its written-down amount also shall be
recorded into owners equity. If it can most likely obtain adequate taxable amount of income, the amount wrote
down shall be returned.
28. Operating lease and financing lease
(1) Accounting for operating lease
The lease fee paid for the assets leased by the company shall be amortized using the straight line method within the
whole lease period without deducting rent-free period, and recorded into current expenses. The initial direct
expense related to lease transaction paid by the company shall be recorded into current expenses.
If the lessor assumes some expense of the leaseholder, the Company shall make amortization in the leasing period
as per the balance of rent expense reduced by above expense, and record it into current expenses.
The lease fee obtained by the company for leasing asset as a lessor shall be amortized using the straight line
method, and recorded as lease income. The initial direct expense related to lease transaction shall be recorded into
current expenses; the expense with big amount shall be capitalized, and shall be attributed to net profit or loss of
current period in total leasing period according to the basis same as that for confirmation of rent income.
If the company assumes some expense related to lease and attributable to the lease, the Company shall make
amortization in the leasing period as per the balance of total rent income educed by above expense.
(2) accounting for financing lease
29. Assets held for sale
(1) Recognition of assets held for sale
(2) Accounting for assets held for sale
77
承德大路股份有限公司 2012 年半年度报告全文
30. Asset Securitization
31. Hedge accounting
32. Changes in major accounting policies and accounting estimate
Was the major accounting policies and accounting estimate changed during the reporting period?
□ Yes √ No □ N/A
(1)Changes in accounting policies
Was the major accounting policies changed during the reporting period?
□ Yes √ No □ N/A
(2) Changes in accounting estimate
Was the major accounting estimate changed during the reporting period?
□ Yes √ No □ N/A
33. Early correction of accounting error
Was the accounting error found during the reporting period?
□ Yes √ No □ N/A
(1)Retrospective restatement method
Was the preliminary accounting error discovered by using the retrospective restatement method during the
reporting period?
□ Yes √ No □ N/A
(2) Prospective application method
Was the preliminary accounting error found by using the prospective application method during the reporting
period?
□ Yes √ No □ N/A
34. Other major accounting policies, accounting estimate and financial statement
preparation method
(V)Tax
1. Main categories of taxes and tax rates
Tax category Tax basis Tax rate
VAT VAT payable 17%
Consumption tax
Business tax Taxable turnover 5%
City maintenance and construction tax Transfer tax payable 5%
Taxable income; 15% of the taxable
Corporate Income Tax 25%
income
78
承德大路股份有限公司 2012 年半年度报告全文
The income tax rate applicable for each branch and subsidiary plant.
The enterprises income tax of the subsidiary Chengde County RongYida Real Estate Development Company
Limited should be calculated at 15% of the taxable income
.
2. Tax incentives and approval
3. Other statements
(VI) Enterprise merger and consolidation of financial statements
General instructions of enterprise merger and consolidation of financial statements:
(1)The principle of consolidated accounting statements
All subsidiaries are included in the consolidated financial statements.
(2) Preparation method of Consolidated Financial Statements
Based on the principle of the financial statements of the parent company and the subsidiaries included in the scope
of consolidation, the insider trading between the parent company and the subsidiaries such as important investment,
contacts, inventory, buying& selling and the unrealized profits offset itemized merger are combined, at the same
time, it should be Calculated the minority shareholders and minority shareholders profit and loss.
(3) presentation of Minority interest and profit or loss
The net profit or loss in current period of Subsidiary company attributable to the minority shareholders' interests,
which should be listed as “Minority interest " under the item of net profit in the consolidated income statement.
The shareholders equity of the Subsidiary attributable to the minority interest, which should be listed as
“shareholders equity” in the consolidated balance sheet.
(4) Excess losses treatment
When the current losses of minority shareholders of subsidiaries exceed the shareholders equity attributable to
minority shareholder at the beginning of period, if it is stipulated that the minority shareholder is responsible to
assume in the articles of association or agreement, as well as the minority shareholder has the ability to
compensate, it should write down minority interest against such extra loss. Otherwise it will write down the
owners equity of parent company. The profit of the subsidiaries in future period should attribute to the owners
equity holders of parent company before offsetting the minority shareholders loss assumed by owners equity of
the parent company.
(5) Treatment of consolidated financial statement when the subsidiaries increase or decrease in current
period.
During the reporting period, if the increase of a subsidiary due to business merger under the same control, all of the
income, expense, profits of the subsidiary from the beginning of the period when the merger takes place to the end
of the reporting period should be included in the consolidated profit statement. If the increase of a subsidiary due
to business merger not under the same control, the income, expense, profits of the subsidiary from the purchase
date to the end of the reporting period should be included in the consolidated profit statement. During the reporting
period, when the subsidiary is disposed, the income, expenses, profits of the subsidiary from the beginning period
to disposal date should be included in the consolidated income statement.
79
承德大路股份有限公司 2012 年半年度报告全文
Subsidiary company
The subsidiary acquired through establishment or investment
Unit :RMB
Loss for the
period more
than offset
against the
share of
minority
shareholders in
subsidiaries
Used to offset from the
the amount of parent
Balance of
Consolidated minority company
Subsidiary The final other project Shareholding The rights of
Subsidiary Place of business Registered Voting rights financial shareholder's equity
company Currency Business scope actual which forms ratio minority
company type registration characteristics capital ratio (%) statements or net income of minority
name investment net investment (%) shareholders
not the rights of shareholders
on subsidiaries
minority exceed the
shareholders minority
enjoyed the
balance in the
share of
owner's equity
in the
subsidiary in
early
Production and
marketing of
Chengde
Chengde City, high-grade
XingYe Paper A subsidiary Paper 250,000,000.0
Hebei USD coated paper 75,000,000.00 75% 75% Yes
Limited of holdings production 0
province and kraft liner
company
board paper
series
Hebei production and
Xiabancheng A wholly Chengde City, export of all
Clothing
Knitting owned Hebei 4,000,000.00 USD kinds of 4,000,000.00 100% No
production
Garment Co., subsidiary province knitted
Ltd. Clothing
Production and
Chengde
A wholly Hebei marketing of
DiXian Clothing
owned province 24,000,000.00 USD high 24,000,000.00 100% No
Fashion Co., production
subsidiary Chengde City simulation of
Ltd.
chemical fiber
80
承德大路股份有限公司 2012 年半年度报告全文
clothing and
cloth
Chengde Processing and
Huaxing Waste A subsidiary sales recovery
Hebei
paper of the Recycling of of various
province 1,000,000.00 CNY 900,000.00 90% 90% Yes 6.74
recycling subsidiary of waste paper waste paper
Chengde City
Limited holdings and paper
company products
Gold Axe A wholly Investment
The British
Investment owned Export 1.00 USD and export 1.00 100% 100% Yes
Virgin Islands
Group Limited subsidiary business
The other descriptions on the subsidiaries acquired through establishment or investment:
The other descriptions about Subsidiary:
①On February 8, 2009, Hebei Xiabancheng Knitting Garment Co., Ltd. was declared to bankrupt by Hebei province Chengde City Intermediate People's Court with the issuance of civil award
of No. (2008)12-1.
②On February 8, 2009,Chengde DiXian Fashion Co., Ltd. was declared to bankrupt by Hebei province Chengde City Intermediate People's Court with the issuance of civil award of No.
(2008)11-1;
③Chengde XingYe Paper Limited company is established by the company together with (Hongkong)Zhanxi International Group Co., Ltd. the registered capital of Chengde XingYe Paper
Limited company was 250 million U.S. dollars，the paid-in capital was $100000000, Shareholders' contribution accounts for 40% of the registered capital, and in which the company invests
75000000 dollar ( accounting for 75%), (Hong Kong)Zhanxi invests 25000000 dollar ( proportion 25%).On October 28, 2002, according to the regulation of “ reply to investment increase of
joint ventures of Chengde XingYe Paper Limited company” approved by the people's Republic of China Ministry of foreign trade and Economic Cooperation ( the former of the Ministry of
Commerce ) with the issuance of No.[2001]969, the registered capital was increased to $ 250 million from $ 10,000 million, The new registered capital has been paid by the two sides in
accordance with the contract, articles of agreement within three years from the date of the business license renewal. The registered capital of Chengde XingYe Paper Limited Company isnt paid
fully within the prescribed period.
Chengde XingYe Paper Limited company had been shut down completely suffered from December 2006 serious loss since the original largest shareholder Wang Shuxian and senior executives
involved in smuggling effect, On December 8, 2008, Hebei province Chengde City Intermediate People's Court issued the No (2008)13 Chengde Civil Award and confirmed the bankruptcy
liquidation of the application of Chengde XingYe Paper Limited company. On March 11, 2009, Hebei province Chengde City Intermediate People's Court approved the settlement request of
Chengde XingYe Paper Limited Company according to the Civil Award with No. (2008)13. On May 10, 2009, Hebei province Chengde City Intermediate People's Court confirmed the
settlement agreement reached on May 8, 2009between Chengde XingYe Paper Limited Company and the creditors and terminated the reconciliation procedure. On April 23, 2009, the Hebei
Provincial Higher People's Court issued No.(2009) 44 Hebei ”criminal Award” and confirmed that Chengde XingYe Paper Limited company was a false foreign investment enterprise which was
registered in the name of the Hong Kong ZhanXi by the company's original shareholders of Wang Shuxian. Because Chengde XingYe Paper Limited Company didnt submit the materials for
2009 annual industrial and commercial enterprises inspection, its business license was already revoked by Chengde Administration for Industry and Commerce according to administrative
punishment decision of No. (2011)185 on January 21, 2011.
④Because Chengde Huaxing Waste paper recycling Limited company didnt submit the materials for 2007 industrial and commercial enterprises inspection, its business license was already
revoked by Chengde Administration for Industry and Commerce according to No.(2009)73 administrative punishment decision on April 28, 2009, and it did not handle the liquidation
procedures by the end of December 31, 2011.
81
承德大路股份有限公司 2012 年半年度报告全文
(2)Subsidiaries acquired by business combination under common control
Unit: RMB
Balance
between the
owners
equity in
parent
offsetting the
current losses
Balance of Amount in attributable to
other items minority minority
Actual
which Consolidated interest shareholders
Full name of Type of Registered Business Registered Business investment Holding Voting Minority
Currency actually statement available to of subsidiaries
subsidiary subsidiary place nature capital scope amount at proportion% proportion% interests
constitutes net Yes/No offset over the share
period-end
investment in minority gains of beginning
subsidiaries and losses owners
equity in such
subsidiaries
by the
minority
shareholders
Other explanation for subsidiaries acquired by business combination under the common control:
（3）Subsidiaries acquired by business combination not under the common control
In 2009, Mr. Chen Rong, the original large shareholder, transferred 100% equity interest in Chengde Rongyida Real Estate Development Co., Ltd. to the Company with
consideration of RMB1.
Unit: RMB
Balance
between the
Balance of
Amount in owners
minority equity in
other items
Actual interest parent
which Consolidated
Full name of Type of Registered Business Registered investment Holding Voting Minority available to offsetting the
Currency Business scope actually statement
subsidiary subsidiary place nature capital amount at proportion% proportion% interests offset current losses
constitutes net Yes/No
period-end minority attributable to
investment in
gains and minority
subsidiaries
losses shareholders
of
subsidiaries
82
承德大路股份有限公司 2012 年半年度报告全文
over the share
of beginning
owners
equity in such
subsidiaries
by the
minority
shareholders
Real Estate
Development；
Chengde
Rongyida textile, clothes
Wholly-owned Chengde, Real Estate manufacture,
Real Estate 10,000,000.00 CNY 1.00 100% 100% Yes
subsidiary Hebei Development import &
Development
export of
Co., Ltd.
clothes, leasing
service
Other explanation for subsidiaries acquired by business combination not under the common control:
83
承德大路股份有限公司 2012 年半年度报告全文
2. Special purposes entity or operation entity where controlling right is formed under entrusted operation or
leasing
□ Applicable √ Non-applicable
Other explanation for special purposes entity or operation entity where controlling right is formed under entrusted
operation or leasing:
3. Explanation for changes in consolidation scope
Explanation for changes in consolidation scope:
□ Applicable √ Non-applicable
4. Entities newly included in consolidate scope during the reporting period and entities ceasing to be included in
consolidate scope during the reporting period
Subsidiaries, special purposes entities, operation entity where controlling right is formed under entrusted operation or
leasing newly included in consolidation scope during the period
Unit: RMB
Name Net assets as at period-end Net profit for the period
Subsidiaries, special purposes entities, operation entity where controlling right is formed under entrusted operation or
leasing ceasing to be included in consolidation scope during the period
Unit: RMB
Net profit from the year-begin
Name Net assets as at the disposal date
to the disposal date
Other explanation on entities newly included in consolidation scope and entities ceasing to be included in consolidation
scope:
5. Business combination under the common control during the reporting period
Unit: RMB
Basis for Consolidated
Consolidated
determination of Consolidated net operating
Actual controller income for the
Party to be business profit from this activities cash
under the period from the
consolidated combination period to flow from this
common control period-begin to
under the consolidation date period to
consolidation date
common control consolidation date
Other explanation for business combination under the common control:
6. Business combination not under the common control during the reporting period
Unit: RMB
Party to be consolidated Amount of goodwill Calculation method for goodwill
Other explanation for business combination not under the common control:
84
承德大路股份有限公司 2012 年半年度报告全文
7. Loss of subsidiaries due to disposal of equity interests without controlling rights during the reporting period
Recognition method for gains and
Subsidiary Disposal date
losses
Other explanation for loss of subsidiaries due to disposal of equity interests without controlling rights:
8. Counter purchase occurred during the reporting period
Calculation method for
goodwill recognized in
Basis for determination of Determination method for consolidation or recorded in
Backdoor
counter purchase consolidated costs current gains and losses
Other explanation for counter purchase:
9. Absorption consolidation occurred during the reporting period
Unit: RMB
Types of absorption consolidation Major assets consolidated Major liabilities consolidated
Absorption consolidation under common
Item Amount Item Amount
control
Absorption consolidation not under
Item Amount Item Amount
common control
Other explanation for absorption consolidation:
10. Translation exchange rates for items in major statements of overseas operating entities
(VII) Notes to major items in consolidated financial statements
1. Monetary capital
Unit: RMB
Amount at period-end Amount at period-beginning
Item Exchan Original Exchange
Original currency RMB conversion RMB conversion
ge rate currency rate
Cash: -- -- 42,185.38 -- -- 103,766.34
RMB -- -- 42,185.38 -- -- 103,766.34
Bank deposits: -- -- 1,458,163.53 -- -- 468,956.88
RMB -- -- 1,421,094.78 -- -- 431,984.61
USD 5,258.26 6.3249 33,257.97 5,258.26 6.3009 33,131.77
EUR 105.82 7.871 832.91 105.82 8.1625 863.76
HKD 2,862.32 0.8152 2,333.36 2,862.32 0.8107 2,320.48
JPY 8,092.00 0.0796 644.51 8,092.00 0.0811 656.26
Other monetary capital: -- -- 70,679.29 -- -- 4,944,969.07
RMB -- -- 70,679.29 -- -- 4,944,969.07
Total -- -- 1,571,028.20 -- -- 5,517,692.29
85
承德大路股份有限公司 2012 年半年度报告全文
Separate explanation is required for accounts with restricted application purposes, deposited overseas and of potential
recovery risks arising from pledge, mortgage or frozen:
2. Transactional financial assets
(1) Transactional financial assets
Unit: RMB
Item Fair value as at period-end Fair value as at period-begin
Transactional debt investments
Transactional equity instrument investments
Financial assets designated at fair value through
profit and losses
Derivative financial assets
Hedge instruments
Others
Total 0.00 0.00
（2） realization of restricted transactional financial assets
Unit: RMB
Other significant restrictions on restriction
Item Amount as at period-end
conditions for sale or realization
（3）Explanation for hedge instruments and related hedge transactions
3. Notes receivables
（1）Classification of notes receivables
Unit: RMB
Types Amount at period-end Amount at period-begin
Total 0.00 0.00
（2）Notes receivables pledged at period-end
Issuer Issue date Expiring date Amount Notes
Total -- -- 0.00 --
Explanation:
(3)Transfer of notes to notes receivable due to the issuer’s impossibility to perform its obligations, and
un-matured notes endorsed to others by the Company as at the period-end
86
承德大路股份有限公司 2012 年半年度报告全文
Unit: RMB
Issuer Issue date Expiring date Amount Notes
Total -- -- 0.00 --
Explanation:
Un-matured notes endorsed to others by the Company
Unit: RMB
Issuer Issue date Expiring date Amount Notes
Total -- -- 0.00 --
Explanation:
Explanation for commercial acceptance notes discounted or pledged:
4. Dividend receivables
Unit: RMB
Amount at
Items Increase in this period Decrease in this period Amount at period-end
period-begin
Dividend receivables
0.00 0.00 0.00 0.00
aging within 1 year
Including:
Dividend receivables
0.00 0.00 0.00 0.00
aging over 1 year
Including: -- -- -- --
Total 0.00 0.00 0.00 0.00
Explanation:
5. Interests receivables
(1) Interests receivables
Unit: RMB
Amount at Decrease in this
Items Increase in this period Amount at period-end
period-begin period
Total 0.00 0.00 0.00 0.00
(2)Overdue interests
Unit: RMB
Loan provider Times overdue (days) Overdue interests
Total -- 0.00
87
承德大路股份有限公司 2012 年半年度报告全文
(3)Explanation for interests receivables
6. Account receivables
（1）account receivables disclosed by categories
Unit: RMB
Amount at period-end Amount at period-begin
Book balance Bad debt reserve Book balance Bad debt reserve
Categories
Proportion Proportion Proportion Proportion(
Amount Amount Amount Amount
(%) (%) (%) %)
Account receivable
with single significant
amount and withdrawal 0.00 0% 0.00 0% 0.00 0% 0.00 0%
bad debt provision
separately
Account receivable provided for bad debt provision by group
Subtotal of group 0.00 0% 0.00 0% 0.00 0% 0.00 0%
Account receivable
with single minor
amount but withdrawal 0.00 0% 0.00 0% 0.00 0% 0.00 0%
bad debt provision
separately
Total 0.00 -- 0.00 -- 0.00 -- 0.00 --
Explanation for category of account receivables:
Account receivable with single significant amount and withdrawal bad debt provision separately
√ Applicable □ Non-applicable
Unit: RMB
Provision Reason for
Contents of account receivables Book balance Bad debt provision
proportion provision
Total 0.00 0.00 --
Account receivable provided for bad debt reserve under aging analysis method in the groups:
√ Applicable □ Non-applicable
Unit: RMB
Amount at period-end Amount at period-begin
Book balance Book balance
Aging
Proportion bad debt reserve Proportion bad debt reserve
Amount Amount
(%) (%)
within 1 year
Including: -- -- -- -- -- --
Subtotal of
0.00 0% 0.00 0.00 0% 0.00
within 1 year
1-2 years
2-3 years
88
承德大路股份有限公司 2012 年半年度报告全文
Over 3 years
3-4 years
4-5 years
Over 5 years
Total 0.00 -- 0.00 0.00 -- 0.00
Account receivables provided for bad debt reserve under balance percentage method in the groups:
√ Applicable □ Non-applicable
Unit: RMB
Name of group Book balance Provision proportion Bad debt reserve
Total 0.00 -- 0.00
Account receivables provided for bad debt reserve under other method in the groups:
√ Applicable □ Non-applicable
Unit: RMB
Name of group Book balance Bad debt reserve
Total 0.00 0.00
Account receivable with single minor amount but withdrawal bad debt provision separately as at period-end
√ Applicable □ Non-applicable
Unit: RMB
Contents of account
Book balance Bad debt provision Provision proportion Reason for provision
receivables
Total 0.00 0.00 0% --
（2）Reversal or recovery of account receivables during the reporting period
Unit: RMB
Basis for Accumulated
Contents of account Reason for reversal determination of provision of bad debt Amounts reversed or
receivables of recovery original bad debt reserve before reversal recovered
reserve or reovery
Total -- -- 0.00 --
Provision for bad debt reserve for account receivable with single significant or minor amount but tested for impairment
separately as at period-end:
Contents of account Provision proportion
Book balance Bad debt amount Reasons
receivables (%)
Total 0.00 0.00 -- --
Explanation for account receivable with single minor amount while the risks of the group categorized with similar risk
characteristics are relative significant:
89
承德大路股份有限公司 2012 年半年度报告全文
（3）Account receivables actually written-off during the reporting period
Unit: RMB
Whether arising
Nature of account Amount written Reason for
Name of unit Time of write-off from related
receivables off write-off
transactions
total -- -- 0.00 -- --
Explanation for write-off of account receivables:
（4）Account receivables due from the shareholders holding 5% or above voting shares of the Company during
the reporting period
√Applicable □Non-applicable
Unit: RMB
Amount at period-end Amount at period-begin
Name of unit
Book balance Dad debt provision Book balance Dad debt provision
Total 0.00 0.00 0.00 0.00
（5）Top 5 account receivable
Unit: RMB
Proportion in total
Relationship with the
Name of the company Amount Terms account receivables
Company
(%)
Total -- 0.00 -- 0%
（6）Account receivables due from related parties
Unit: RMB
Relationship with the Proportion in total account
Name of the company Amount
Company receivables (%)
Total -- 0.00 0%
（7）Account receivables derecognized
Unit: RMB
Item De-recognition amount Gains or losses related to derecognition
Total 0.00 0.00
90
承德大路股份有限公司 2012 年半年度报告全文
（8）As for securities with account receivables as target subject, list the assets and liabilities arising from further
involvement
Unit: RMB
Item Period-end
Assets:
Assets subtotal 0.00
Liabilities:
Liabilities subtotal 0.00
7. Other receivables
（1）Disclosure of other receivables by category
Unit: RMB
Amount at period-end Amount at period-begin
Book balance Bad debt reserve Book balance Bad debt reserve
Categories
Proporti Proporti Proportion Proporti
Amount Amount Amount Amount
on(%) on(%) (%) on(%)
Other receivable with
single significant
74,832,730. 44,196,901. 74,832,730. 44,196,901.2
amount and 94.35% 59.06% 95.93% 59.06%
76 26 76 6
withdrawal bad debt
provision separately
Other receivable provided for bad debt provision by group
Group by book aging 4,480,543.7 3,171,902.3
5.65% 175,589.56 3.92% 4.07% 175,589.56 5.54%
analysis 3 1
4,480,543.7 3,171,902.3
Subtotal of group 5.65% 175,589.56 3.92% 4.07% 175,589.56 5.54%
3 1
Other receivable with
single minor amount
while withdrawal bad 0.00 0.00 0.00 0.00
debt provision
separately
79,313,274. 44,372,490. 78,004,633. 44,372,490.8
Total -- -- -- --
49 82 07 2
Explanation for types of other receivables:
The definition for account receivables with significant single amount determined by the Company based on its
operation scale and business nature is RMB1 million. As for account receivables with significant single amount, if no
impairment is found after impairment test in respect of separate item, the Company will provide for bad debt reserve by
aging percentage method.
As for account receivables without significant single amount while risk of group which is categorized by risk
characteristics is relatively significant, reference for determination of such group is existence of obvious characteristics
showing difficulty to recover such account receivables aging over 3 years.
91
承德大路股份有限公司 2012 年半年度报告全文
Other receivable with single significant amount and withdrawal bad debt provision separately
√ Applicable □ Non-applicable
Unit: RMB
Contents of other
Book balance Bad debt Provision proportion Reason
receivables
Stopped operation for
Chengde Dahua Paper
44,196,901.26 44,196,901.26 100% years, thus it was
Co., Ltd.
difficult to recover
Come-and-go accounts
30,635,829.50 0.00 0%
among management
Total 74,832,730.76 44,196,901.26 -- --
Other receivable provided for bad debt reserve under aging analysis method in the groups:
√ Applicable □ Non-applicable
Unit: RMB
period-end period-begin
Book balance Book balance
Aging Proport bad debt reserve Proport bad debt reserve
Amount ion Amount ion
(%) (%)
within 1 year
Including:
98.87
4,444,809.78 99.2% 156,808.41 3,136,168.36 156,808.41
%
Subtotal of within 1 98.87
4,444,809.78 99.2% 156,808.41 3,136,168.36 156,808.41
year %
1-2 years 2,049.00 0.05% 409.80 2,049.00 0.06% 409.80
2-3 years 30,627.20 0.68% 15,313.60 30,627.20 0.97% 15,313.60
Over 3 years 3,057.75 0.07% 3,057.75 3,057.75 0.1% 3,057.75
3-4 years
4-5 years
Over 5 years
Total 4,480,543.73 -- 175,589.56 3,171,902.31 -- 175,589.56
Other receivables provided for bad debt reserve under balance percentage method in the groups:
√ Applicable □Non-applicable
Unit: RMB
Name of group Book balance Provision proportion Bad debt reserve
Total 0.00 -- 0.00
Other receivables provided for bad debt reserve under other method in the groups:
√ Applicable □Non-applicable
Unit: RMB
Name of group Book balance Bad debt reserve
92
承德大路股份有限公司 2012 年半年度报告全文
Total 0.00 0.00
Other receivable with single minor amount but withdrawal bad debt provision separately as at period-end
√ Applicable □ Non-applicable
Unit: RMB
Contents of other
Book balance Bad debt provision Provision proportion Reason for provision
receivables
Total 0.00 0.00 --
（2）Reversal or recovery of other receivables during the reporting period
Unit: RMB
Basis for Accumulated
Contents of other Reason for reversal determination of provision of bad debt Amounts reversed or
receivables of recovery original bad debt reserve before reversal recovered
reserve or recovery
Total -- -- 0.00 --
Provision for bad debt reserve for other receivable with single significant or minor amount but tested for impairment
separately as at period-end:
Contents of account Provision proportion
Book balance Bad debt amount Reasons
receivables (%)
Total 0.00 0.00 -- --
Explanation for other receivable with single minor amount while the risks of the group categorized with similar risk
characteristics are relative significant:
（3）Other receivables actually written-off during the reporting period
Unit: RMB
Nature of other Amount written Reason for Whether arising from
Name of unit Time of write-off
receivables off write-off related transactions
Total -- -- 0.00 -- --
Explanation for write-off of other receivables:
（4）Other receivables due from the shareholders holding 5% or above voting shares of the Company during the
reporting period
√ Applicable □Non-applicable
Unit: RMB
Amount at period-end Amount at period-begin
Name of unit Provision of bad Provision of bad
Book balance Book balance
debt debt
93
承德大路股份有限公司 2012 年半年度报告全文
Total 0.00 0.00 0.00 0.00
（5）Nature or content of other receivables with significant amount
Unit: RMB
Nature or content of Proportion in total other
Name of the company Amount
account receivables (%)
1 44,196,901.26 Current account 55.72%
2 27,490,334.30 Current account 34.66%
3 2,859,600.00 Current account 3.61%
4 2,540,000.00 Current account 3.2%
Total 77,086,835.56 -- 97.19%
Explanation:
（6）Top 5 other receivable
Unit: RMB
Proportion in total
Relationship with the
Name of the company Amount Terms account receivables
Company
(%)
1 Associated company 44,196,901.26 Over 3 years 55.72%
2 Non-related party 27,490,334.30 Within 3 years 34.66%
3 Non-related party 2,859,600.00 2- 3 years 3.61%
4 Non-related party 2,540,000.00 Within 1 year 3.2%
5 Non-related party 285,895.20 Within 1 year 0.36%
Total -- 77,372,730.76 -- 97.55%
（7）Other receivables due from related parties
Unit: RMB
Relationship with the Proportion in total other
Name of the company Amount
Company receivables (%)
Chengde Dahua Paper Co.,
Associated company 44,196,901.26 55.72%
Ltd.
Suning Banhe Chemical
Fiber Emulation Textile
Co., Ltd. Associated company 15,361.00 0.02%
Total -- 44,212,262.26 55.74%
（8）Other receivables derecognized
Unit: RMB
Item De-recognition amount Gains or losses related to de-recognition
Total 0.00 0.00
94
承德大路股份有限公司 2012 年半年度报告全文
（9）As for securities with other receivables as target subject, list the assets and liabilities arising from further
involvement
Unit: RMB
Item Period-end
Assets:
Assets subtotal 0.00
Liabilities:
Liabilities subtotal 0.00
8. Payment in advance
（1）Analysis of payments in advance by aging
Unit: RMB
Amount at period-end Amount at period-begin
Aging proportion proportion
Amount Amount
（%） （%）
within 1 year 403,564.00 1.97% 974,464.00 4.63%
1-2 years
2-3 years
Over 3 years 20,084,632.25 98.03% 20,084,632.25 95.37%
Total 20,488,196.25 -- 21,059,096.25 --
Explanation for aging analysis of payments in advance:
（2）Top 5 of payments in advance
Unit: RMB
Relationship with the Reason for
Name of the company Amount Time
Company unsettlement
Payment for land
The Finance Bureau of acquisition (owners
Non-related party 20,084,632.25
Xiabancheng title has not been
obtained)
Dalu Qianyuan
Non-related party 167,985.59 Engineering account
construction team
Chengde Xingcheng
Construction
Non-related party 112,951.90 Engineering account
Installment
Engineering Co., Ltd.
Residential property
Non-related party 67,000.00 Deposit
guarantee company
95
承德大路股份有限公司 2012 年半年度报告全文
Chengde Yongwang
Construction
Non-related party 42,654.87 Engineering account
Installment
Engineering Co., Ltd.
Total -- 20,475,224.61 -- --
Explanation for major units paid in advance:
（3）Shareholders holding 5% or above voting shares of the Company in payments in advance during the
reporting period
√ Applicable □Non-applicable
Unit: RMB
Amount at period-end Amount at period-begin
Name of company Provision of bad Provision of bad
Book balance Book balance
debt debt
Total 0.00 0.00 0.00 0.00
（4）Explanation for payment in advance
9. Inventory
(1) Classification of inventory
Unit: RMB
Amount at period-end Amount at period-begin
Item devaluation devaluation
Book balance Book value Book balance Book value
provision provision
Raw materials 0.00 0.00 0.00 0.00 0.00 0.00
Products in
0.00 0.00 0.00 0.00 0.00 0.00
progress
Goods in stock 0.00 0.00 0.00 0.00 0.00 0.00
Turnover materials 0.00 0.00 0.00 0.00 0.00 0.00
Consumption
0.00 0.00 0.00 0.00 0.00 0.00
biological assets
Development costs 45,537,159.74 45,537,159.74 28,730,807.42 28,730,807.42
Planned
development 10,967,992.85 10,967,992.85 10,967,992.85 10,967,992.85
products
Total 56,505,152.59 0.00 56,505,152.59 39,698,800.27 0.00 39,698,800.27
(2) Inventory devaluation provision
Unit: RMB
Categories of Book balance at Provision for the Decrease for the period Book balance at
96
承德大路股份有限公司 2012 年半年度报告全文
inventory period-begin period Reversal Written-off period-end
Raw materials 0.00 0.00
Products in progress 0.00 0.00
Goods in stock 0.00 0.00
Turnover materials 0.00 0.00
Consumption
0.00 0.00
biological assets
Total 0.00 0.00 0.00 0.00 0.00
(3) Particulars about inventory devaluation provision
The proportion of reversal
Reference for provision of Reason for reversal of
for the period to the
Item inventory devaluation inventory devaluation
period-end balance of
provision provision for the period
inventory
Raw materials
Goods in stock
Products in progress
Turnover materials
Consumption biological
assets
Explanation for inventory:
10. Other current assets
Unit: RMB
Item Amount at period-end Amount at period-begin
Debt credit acquired 1,093,527.39 1,093,527.39
Total 1,093,527.39 1,093,527.39
Explanation for other current assets:
11. Financial assets available-for-sale
(1) Financial assets available-for-sale
Unit: RMB
Item Fair value at period-end Fair value at period-begin
Bonds available-for-sale
Equity instrument available-for-sale
Other
Total 0.00 0.00
Investment held-to-maturity was reclassified into financial assets available-for-sale in the period, with reclassification
amount of RMB0.00, accounting for 0% of total investment held-to-maturity before reclassification.
Explanation for financial assets available-for-sale
(2)Long-term debt investments in financial assets available-for-sale
Unit: RMB
Debt item Type of Carrying Initial Maturity Balance at Interests for Accumulate Balance at
97
承德大路股份有限公司 2012 年半年度报告全文
bond value investment date period-begi the period d accrued period-end
cost n and
received
interests
Total -- -- 0.00 -- 0.00 0.00 0.00 0.00
Explanation for long-term debt investments in financial assets available-for-sale:
12. Held-to-maturity investment
(1) Held-to-maturity investment
Unit: RMB
Item Book balance at period-end Book balance at period-begin
total 0.00 0.00
Explanation for held-to-maturity investment:
(2) Held-to-maturity investment disposed and un-matured in the reporting period
Unit: RMB
Proportion to the amount of investment before
Item Amount
disposal (%)
total 0.00 --
Explanation for held-to-maturity investment disposed and un-matured in the reporting period:
13. Long term account receivables
Unit: RMB
Type Amount at period-end Amount at period-begin
Financing lease
Including: unrealized financing
income
Sales of goods with collection in
instalment
Provision of labor service with
collection in instalment
Other
total 0.00 0.00
14. Investment in joint venture and associated company
Unit: RMB
Proport
ion of
Shareh voting Total Total
Total Total
olding right net operati Net
Type of Registe Legal Busine Registe assets liabiliti
Investe currenc held by held by assets on profit
enterpri red represe ss red at es at
e y the the at income for the
se place ntative nature capital period- period-
Compa Compa period- for the period
end end
ny (%) ny in end period
investe
e
98
承德大路股份有限公司 2012 年半年度报告全文
I. Joint venture
II. Associate company
Cheng
de Compa
Chdeng Paper 6,364,0 266,96 266,34
Dahua ny with Shi 624,57
de, product 00,000. JPY 45% 45% 9,909.2 5,329.6
Paper limited Bainian 9.62
Hebei ion 00 7 5
Co., liability
Ltd.
Suning
Banhe
Chemi
cal Compa
Wang Clothes
Fiber ny with Suning, 29,000,
Zhengs product USD 20% 20%
Emulat limited Hebei 000.00
ong s
ion liability
Textile
Co.,
Ltd.
Explanation for material difference between material accounting policy and accounting estimation of joint ventures and
associated company and the Company:
Chengde Dahua Paper Co., Ltd.(hereinafter referred to as “Dahua Paper”)was established by the Company and Japan
Papering Corporation(hereinafter referred to as “Japan Papering”), with original registered capital of USD5 million.
Upon equity transfer and capital increase, the registered capital of Dahua Paper was JPY6.364 billion, including
subscription contribution of JPY2.864 billion from Chengde Cingye Papering Co., Ltd. and JPY3.5 billion from Japan
New Century Trade Corporation. The capital increase of Dahua Papering has not been verified yet, and such equity
transfer has not completed registration procedures. Due to not submitting annual review materials for industry and
commercial registration in 2007, Dahua Paper was revoked with business license by Chengde Industry and Commercial
Administration Bureau on 28 April 2009 by issuance of administrative punishment document CGSCZi No.75(2009).
Suning Banhe Chemical Fiber Emulation Textile Co., Ltd. has stopped operation for years due to disposal of key
production equipments attributable to involvement in legal cases. The Company made impairment provision in full
for its long term equity investment in 2006. The Company didnt obtain financial statement of Suning Banhe
Chemical Fiber Emulation Textile Co., Ltd. for this reporting period.
15. Long term equity investment
99
承德大路股份有限公司 2012 年半年度报告全文
(1)Particulars about long term equity investment
Unit: RMB
Explanati
on for
Proport Impairm
inconsist
Sharehol ion of ent Cash
ence
Calculat Initial Balance at ding held voting provisio divide
Chan Balance at between Impairmen
Investee ion investment period-begi in rights n nd for
ge period-end sharehold t provision
method cost n investee in provide the
ing and
(%) investe d for the period
voting
e (%) period
rights in
investee
Suning
Banhe
Chemical
Cost 46,980,000 46,980,000 46,980,000 46,980,000
Fiber 20% 20%
method .00 .00 .00 .00
Emulatio
n Textile
Co., Ltd.
Chengde
Dahua Cost 206,215,72 206,215,72 206,215,72 204,000,00
45% 45%
Paper method 9.65 9.65 9.65 0.00
Co., Ltd.
Declared
Hebei
bankrupt
Xiabanch
cy,
eng Cost 441,303,75 441,303,75 441,303,75 441,303,75
100% pending
Textile method 9.82 9.82 9.82 9.82
for final
Clothes
settlemen
Co., Ltd.
t
Declared
bankrupt
Chengde
cy,
Dixian Cost 200,051,55 200,051,55 200,051,55 200,051,55
100% pending
Textile method 1.11 1.11 1.11 1.11
for final
Co., Ltd.
settlemen
t
894,551,04 894,551,04 894,551,04 892,335,31
total -- 0.00 -- -- -- 0.00 0.00
0.58 0.58 0.58 0.93
100
承德大路股份有限公司 2012 年半年度报告全文
(2)Restriction on transferring capital to investment enterprise
Unit: RMB
Long term equity investment subject
Accumulated unrecognized investment
to restriction on transferring capital to Reason for restriction
loss for the period
investment enterprise
Explanation for long term equity investment:
16. Investment property
(1) Investment property measured by cost
√ Applicable □ Non-applicable
Unit: RMB
Book balance at Decrease for the Book balance at
Item Increase for the period
period-begin period period-end
I. Total original
0.00 0.00 0.00 0.00
book value
1. Buildings and
constructions
2.Land use right
II. Total
accumulated
0.00 0.00 0.00 0.00
depreciation and
amortization
1. Buildings and
constructions
2.Land use right
III. Total net book
value of
0.00 0.00 0.00 0.00
investment
property
1. Buildings and
constructions
2.Land use right
IV. Total
accumulated
impairment
0.00 0.00 0.00 0.00
provision of
investment
property
1. Buildings and
constructions
2.Land use right
V. Total book
value of
0.00 0.00 0.00 0.00
investment
property
1. Buildings and
constructions
101
承德大路股份有限公司 2012 年半年度报告全文
2.Land use right
Unit: RMB
The current period
Depreciation and amortization for the period
Impairment provision for investment property for the period
(2)Investment property measured by fair value
√ Applicable □ Non-applicable
Unit: RMB
Increase for the period Decrease for the period
Fair value Transferred
Gains and Fair value
at from Transferred
Item losses from at
period-begi Purchase self-use Disposal to self-use period-end
n change of
property or property
fair value
inventory
1. Total costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(1) Buildings and
constructions
(2)Land use right
(3)Others
2. Total change of fair value 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(1) Buildings and
constructions
(2)Land use right
(3)Others
3. Total book value of
0.00 0.00 0.00 0.00 0.00 0.00 0.00
investment property
(1) Buildings and
constructions
(2)Land use right
(3)Others
Explain investment property which changed measurement method and which didnt obtain owners title, and explain the
reason for such failure to obtain owners title and estimated time to obtain:
17. Fixed assets
(1)Fixed assets
Unit: RMB
Book balance at Decrease for the Book balance at
Item Increase for the period
period-begin period period-end
I. Total original book
122,712,609.00 102,569.50 25,219,414.50 97,595,764.00
value:
Including: Buildings and
111,296,195.05 25,219,414.50 86,076,780.55
constructions
Machine equipments
Transportation
11,133,781.66 102,569.50 11,236,351.16
vehicles
102
承德大路股份有限公司 2012 年半年度报告全文
Electrical equipments 282,632.29 282,632.29
Book balance at Increase for the Provision for the Decrease for the Book balance at
--
period-begin period period period period-end
II. Total accumulated
27,259,039.48 0.00 1,393,840.97 5,553,576.93 23,099,303.52
depreciation
Including: Buildings and
18,513,213.45 1,367,892.59 5,553,576.93 14,327,529.11
constructions
Machine equipments
Transportation
8,675,216.17 20,627.40 8,695,843.57
vehicles
Electrical equipments 70,609.86 5,320.98 75,930.84
Book balance at Book balance at
-- --
period-begin period-end
III. Total net book value
95,453,569.52 -- 74,496,460.48
of fixed assets
Including: Buildings and
92,782,981.60 -- 71,749,251.44
constructions
Machine equipments --
Transportation
2,458,565.49 -- 2,540,507.59
vehicles
Electrical equipments 212,022.43 -- 206,701.45
IV. Total impairment
35,361,563.01 -- 24,458,327.07
provision
Including: Buildings and
33,129,463.59 -- 22,226,227.65
constructions
Machine equipments --
Transportation
2,117,353.38 -- 2,117,353.38
vehicles
Electrical equipments 114,746.04 -- 114,746.04
V. Total book value of
60,092,006.51 -- 50,038,133.41
fixed assets
Including: Buildings and
59,653,518.01 -- 49,523,023.79
constructions
Machine equipments --
Transportation
341,212.11 -- 423,154.21
vehicles
Electrical equipments 97,276.39 -- 91,955.41
Depreciation for the period was RMB 1,393,840.97; original value of construction in progress transferred into fixed
assets was RMB0.00.
(2)Idle fixed assets provisionally
Unit: RMB
Original book Accumulated Impairment
Item Net book value Notes
value depreciation provision
Buildings and Mainly included
79,541,707.92 13,696,953.11 22,226,227.65 43,618,527.16
constructions idle plants
Machine
0.00
equipments
Transportation 10,802,089.94 8,622,977.27 2,117,353.38 61,759.29
103
承德大路股份有限公司 2012 年半年度报告全文
vehicles
Electrical
170,613.50 55,867.46 114,746.04 0.00
equipments
(3)Fixed assets leased in by financing leasing
√ Applicable □ Non-applicable
Unit: RMB
Item Original book value Accumulated depreciation Net book value
Buildings and constructions 0.00
Machine equipments 0.00
Transportation vehicles 0.00
(4)Fixed assets leased out by operating leasing
□ Applicable √ Non-applicable
(5)Fixed assets held for sale at period-end
Unit: RMB
Estimated disposal
Item Book value Fair value Estimated disposal fee
time
(6)Fixed assets without completion of owner’s title
Reason for failure to complete
Item Estimated time to complete
procedure for owners title
Explanation for fixed assets:
18. Construction in progress
（1）
Unit: RMB
Amount at period-end Amount at period-begin
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
242,855,959. 238,027,341. 242,855,959. 238,027,341.
Papering project 4,828,618.00 4,828,618.00
62 62 62 62
16,752,062.4 14,858,862.4 16,752,062.4 14,858,862.4
Thermal plant 1,893,200.00 1,893,200.00
2 2 2 2
259,608,022. 252,886,204. 259,608,022. 252,886,204.
total 6,721,818.00 6,721,818.00
04 04 04 04
104
承德大路股份有限公司 2012 年半年度报告全文
(2)Change of significant construction in progress
Unit: RMB
Project Includin Capitaliz
input g: e
Increas Transferre Accumula Amount
Amount at Other taking capitaliz interest Capital
Ite Budg e for d into progres te at
period-beg decreas proportio e rate for resource
m et the fixed s capitalized period-en
in e n of interests the s
period assets interests d
budget for the period
(%) period (%)
tota
0.00 0.00 0.00 0.00 0.00 -- -- 0.00 0.00 -- -- 0.00
l
Explanation for change of construction in progress:
(3)Impairment provision of construction in progress
Unit:RMB
Amounts at Increased in this Decreased in this Amounts at
Item Reason for provision
period-begin period period period-end
Paper-making Suspension for many
238,027,341.62 238,027,341.62
project years
Thermal power Suspension for many
14,858,862.42 14,858,862.42
stations years
Total 252,886,204.04 0.00 0.00 252,886,204.04 --
(4)Progress of material construction in progress
Item Progress Remark
(5)Explanation of construction in process
19. Construction materials
Unit: RMB
Amounts at Increased in this Decreased in this
Item Amounts at period-end
period-begin period period
Total 0.00 0.00 0.00 0.00
Explanation on construction materials:
20. Disposal of fixed assets
Unit: RMB
Book value at
Item Book value at period-end Reasons for turn to disposal
period-begin
105
承德大路股份有限公司 2012 年半年度报告全文
Total 0.00 0.00 --
Explain the progress of disposal of fixed assets for which thetransferring intodisposal of fixed assets has been over one year:
21. Productive biological assets
(1) Measured by cost
√Applicable □ Non-applicable
Unit: RMB
Book balance at Book balance at
Item Increased in this period Decreased in this period
period-begin period-end
I. Plantation
II. Animal husbandry
III. Forestry
IV. Aquaculture
Total 0.00 0.00 0.00 0.00
(2)Measured by fair value
√Applicable □ Non-applicable
Unit: RMB
Book value at Book value at
Item Increased in this period Decreased in this period
period-begin period-end
I. Plantation
II. Animal husbandry
III. Forestry
IV. Aquaculture
Total 0.00 0.00 0.00 0.00
Explanation onproductive biological assets
22. Oil and gas asset
Unit: RMB
Book balance at Book balance at
Item Increased in this period Decreased in this period
period-begin period-end
I. Total original book value 0.00 0.00 0.00 0.00
1. Equity of mine
exploitation
2. Equity of mine
106
承德大路股份有限公司 2012 年半年度报告全文
un-exploited
3. Well and relevant
equipment
II. Total consumption
0.00 0.00 0.00 0.00
accumulative
1. Equity of mine
exploitation
2. Well and relevant
equipment
III. Total impairment of oil
0.00 0.00 0.00 0.00
and gas assets accumulative
1. Equity of mine
exploitation
2. Equity of mine
un-exploited
3. Well and relevant
equipment
IV. Total book value of oil
0.00 0.00 0.00 0.00
and gas assets
1. Equity of mine
exploitation
2. Equity of mine
un-exploited
3. Well and relevant
equipment
Explanation on oil and gas assets:
23. Intangible assets
(1)Particular aboutintangible assets
Unit: RMB
Book balance at Book balance at
Item Increased in this period Decreased in this period
period-begin period-end
I. Total of original value 31,075,075.63 0.00 0.00 31,075,075.63
Cheng Xian TuGuo Yong
8,718,530.30 8,718,530.30
(2000) Zi No. 169
Cheng Xian TuGuo Yong
912,279.36 912,279.36
(2000) Zi No. 410
Cheng Xian TuGuo Yong
8,702,035.52 8,702,035.52
(2001) Zi No. 133
Cheng De Xian TuGuo
2,782,907.20 2,782,907.20
Yong (2000) Zi No. 152
Cheng De Xian TuGuo
9,959,323.25 9,959,323.25
Yong (2000) Zi No. 151
II. Total accumulated
6,872,796.38 310,750.74 0.00 7,183,547.12
amortization
Cheng Xian TuGuo Yong
1,928,255.35 87,185.28 2,015,440.63
(2000) Zi No. 169
Cheng Xian TuGuo Yong
201,766.64 9,122.82 210,889.46
(2000) Zi No. 410
Cheng Xian TuGuo Yong
1,924,607.28 87,020.34 2,011,627.62
(2001) Zi No. 133
107
承德大路股份有限公司 2012 年半年度报告全文
Cheng De Xian TuGuo
615,488.63 27,829.08 643,317.71
Yong (2000) Zi No. 152
Cheng De Xian TuGuo
2,202,678.48 99,593.22 2,302,271.70
Yong (2000) Zi No. 151
III. Total net book value
24,202,279.25 0.00 0.00 23,891,528.51
ofintangible assets
Cheng Xian TuGuo Yong
6,790,274.95 6,703,089.67
(2000) Zi No. 169
Cheng Xian TuGuo Yong
710,512.72 701,389.90
(2000) Zi No. 410
Cheng Xian TuGuo Yong
6,777,428.24 6,690,407.90
(2001) Zi No. 133
Cheng De Xian
TuGuoYong (2000) Zi No. 2,167,418.57 2,139,589.49
152
Cheng De Xian TuGuo
7,756,644.77 7,657,051.55
Yong (2000) Zi No. 151
IV. Total impairment
0.00 0.00 0.00 0.00
provisions
Cheng Xian TuGuo Yong
(2000) Zi No. 169
Cheng Xian TuGuo Yong
(2000) Zi No. 410
Cheng Xian TuGuo Yong
(2001) Zi No. 133
Cheng De Xian TuGuo
Yong (2000) Zi No. 152
Cheng De Xian TuGuo
Yong (2000) Zi No. 151
Total of intangible asset
24,202,279.25 0.00 0.00 23,891,528.51
book value
Cheng Xian TuGuo Yong
6,790,274.95 6,703,089.67
(2000) Zi No. 169
Cheng Xian TuGuo Yong
710,512.72 701,389.90
(2000) Zi No. 410
Cheng Xian TuGuo Yong
6,777,428.24 6,690,407.90
(2001) Zi No. 133
Cheng De Xian TuGuo
2,167,418.57 2,139,589.49
Yong (2000) Zi No. 152
Cheng De Xian TuGuo
7,756,644.77 7,657,051.55
Yong (2000) Zi No. 151
The amount amortized in this period isRMB28,749.96.
(2)Expenditure of project development of the Company
Unit: RMB
Decreased in this period
Amounts at Increased in this Amounts at
Item Included into current Recognized as
period-begin period period-end
profit or loss intangible assets
Total 0.00 0.00 0.00 0.00 0.00
The proportion of development expenditure of total expenditure in R&D projects in reporting period.
The proportion of intangible assets formed by internal R&D of total book value of intangible assets at period-end.
Explanation on project development of the Company, development projects, including single price over RMB 1 million in this period
108
承德大路股份有限公司 2012 年半年度报告全文
andthe assessment price has been kept in book, should disclose thename of assessment institution andmethod of assessment:
(3)Intangible assets without property certificate obtained
24. Goodwill
Unit: RMB
Impairment
The nameofinvested unitor the Balance at Increased in this Decreased in this Balance at
provision at
matters forminggoodwill period-begin period period period-end
period-end
Total 0.00 0.00 0.00 0.00 0.00
Explain the impairment testing method andwithdrawal method for impairment provision of goodwill:
25. Long-term deferred expense
Unit: RMB
Amortised
Amounts at Increased amount Other decreased Amounts at Reason for other
Item amount in this
period-begin in this period amount period-end decrease
period
Office
renovation 356,640.00 35,664.00 320,976.00
expense
Total 356,640.00 0.00 35,664.00 0.00 320,976.00 --
Explanation on long-term deferred expense:
26. Deferred income tax assets and deferred income taxliabilities
(1)Net amount of deferred income tax assets and deferred income taxliabilities before deduction
□ Applicable √ Non-applicable
(2)Net amount of deferred income tax assets and deferred income taxliabilities after deduction
□ Applicable √ Non-applicable
Explanation on deferred income tax assets and deferred income taxliabilities:
27. Breakdown ofasset impairment provision
Unit: RMB
Book balance at Increased in this Decreased in this period Book balance at
Item
period-begin period Reversal Written-off period-end
I. Bad debt provision 44,372,490.82 44,372,490.82
II. Inventory devalue
0.00 0.00 0.00 0.00 0.00
provision
III. Impairment provision for
financial assets available for
109
承德大路股份有限公司 2012 年半年度报告全文
sale
IV. Impairment provision for
investment held to maturity
V. Impairment provision for
892,335,310.93 0.00 892,335,310.93
long-term equity investment
VI. Impairment
provisionforinvestmentreal 0.00 0.00 0.00
estate
VII. Impairment
35,361,563.01 10,903,235.94 24,458,327.07
provisionfor fixed asset
VIII. Impairment provision
for construction materials
IX. Impairment provision
252,886,204.04 0.00 252,886,204.04
forconstructioninprocess
X. Impairment provision
forproductive biological
assets
Including: Impairment
provision for
matureproductive biological
assets
XI. Impairment provision for
0.00 0.00 0.00
oil and gas assets
XII. Impairment provision for
0.00 0.00 0.00
intangible assets
XIII. Goodwillimpairment
0.00
provision
XIV. Other
1,214,052,332.8
Total 1,224,955,568.80 0.00 0.00 10,903,235.94
6
Explanation on breakdown of asset impairment provision:
28. Other non-current assets
Unit: RMB
Item Amounts at period-end Amounts at period-begin
House and buildings 779,288.19 779,288.19
Landuse right 24,353,650.76 23,653,650.76
Total 25,132,938.95 24,432,938.95
Explanation onother non-current assets:
29. Short-term loans
(1)Classification of short-term loans
Unit: RMB
Item Amounts at period-end Amounts at period-begin
Pledged loans
Secured loans
Guaranteedloans
Credit loans 422,261.91 422,261.91
110
承德大路股份有限公司 2012 年半年度报告全文
Total 422,261.91 422,261.91
Explanation onclassification of short-term loans:
The Company’s creditloanswerevariousloansborrowed fromFinance BureauofChengde County, which wereoutstanding
and overduefor many years.Theprincipalamountoforiginal loansare RMB21,113,095.50, the Company’s repayable amount
is RMB422,261.91, which wascalculated pursuant tothefinalized settlement percentage of 2% based onbankruptcy and
restructuringin 2009.
(2)Short-term loans un-paid by expired
Unit: RMB
Reasons for un-paid by
Loan unit Loan amount Loan rates Use of loan funds Anticipated payment date
expired
Total 0.00 -- -- -- --
An amount has been paid after balance sheet date.
Explanation on short-term loans,including those expired short-term loans which have been extended, explain the extension condition
and new expiration date:
30. Transactional financialliabilities
Unit: RMB
Item Fair value at period-end Fair value at period-begin
Transactional bonds issued
Financial liability designated through fair value
and variation of fair value recon into current
profit or loss
Derivative financial liability
Other financial liability
Total 0.00 0.00
Explanation on transactional financialliabilities:
31. Note payable
Unit: RMB
Type Amounts at period-end Amounts at period-begin
Commercial promissory notes
Bank promissory notes
Total 0.00 0.00
Amount expired in next accounting period: RMB.
Explanation on note payable:
32. Account payables
(1)
Unit: RMB
Item Amounts at period-end Amounts at period-begin
Within 1 year 994,267.40 100.00
Over 1 year 231,075.82 231,075.82
111
承德大路股份有限公司 2012 年半年度报告全文
Total 1,225,343.22 231,175.82
(2)Accounts received in advance to shareholders holding 5% or above voting shares of the Company during
this period
√ Applicable □ Non-applicable
Unit: RMB
Unit name Amounts at period-end Amounts at period-begin
Total 0.00 0.00
Explanation on major account payable with age over one year:
33. Account received in advance
(1)
Unit: RMB
Item Amounts at period-end Amounts at period-begin
Within 1 year 54,821,272.50 30,028,613.02
Total 54,821,272.50 30,028,613.02
(2) Accounts received in advance to shareholders holding 5% or above voting shares of the Company
during this period
√ Applicable □ Non-applicable
Unit: RMB
Unit name Amounts at period-end Amounts at period-begin
Total 0.00 0.00
Explanation on major account received in advance withage over one year:
34. Remuneration due to employees
Unit: RMB
Book balance at Book balance at
Item Increased in this period Decreased in this period
period-begin period-end
I. Wage, bonus,
allowance and 377,800.00 635,576.90 995,576.90 17,800.00
subsidy
II. Employees
welfare
III. Social security 231,185.60 39,811.72 209,648.26 61,349.06
Social insurance of
231,185.60 39,811.72 209,648.26 61,349.06
employees
IV. Housing
provident fund
V. Compensation for
termination
VI. Other 6,098,896.60 0.00 1,410.00 6,097,486.60
112
承德大路股份有限公司 2012 年半年度报告全文
Others for
6,098,896.60 1,410.00 6,097,486.60
employees
Total 6,707,882.20 675,388.62 1,206,635.16 6,176,635.66
The amount within remuneration due to employees of the nature of arrears.
Outlay for labor union and staff educational charge amounting as RMB; non-monetary welfare amounting as RMB and compensation
for dismiss of labor relationship amounting toRMB.
Remuneration due to employees is expected to pay and the amount for payment:
35. Tax payable
Unit: RMB
Item Amounts at period-end Amounts at period-begin
VAT -29,992.98 151,107.41
Consumption tax
Business tax -1,038,688.96 -206,904.56
Enterprise income tax 53,748,673.54 54,549,500.97
Personal income tax -11,109.75 21,704.90
Citymaintenanceandconstructiontax
land VAT -787,977.19 -513,431.23
House title tax 3,513,019.74 2,982,346.66
Land use tax 13,812,727.95 12,492,077.71
Other -243,638.36 111,824.53
Total 68,963,013.99 69,588,226.39
Explanation on tax payable: if the local taxation bureau agrees mutual adjustment between vary branches andplants, explain taxation
calculation:
36. Interest payable
Unit: RMB
Item Amounts at period-end Amounts at period-begin
Interest of long-term loans of installment and interest
charges
Corporate bond interest
Interest payable for short-term loans
Total 0.00 0.00
Explanation on interest payable:
37. Dividend payable
Unit: RMB
Reasons for un-payment over one
Unit name Amounts at period-end Amounts at period-begin
year
Total 0.00 0.00 --
Explanation on dividend payable:
113
承德大路股份有限公司 2012 年半年度报告全文
38. Other payable
(1)
Unit: RMB
Item Amounts at period-end Amounts at period-begin
Within 1 year 17,756,264.92 17,743,067.41
1 - 2 years 12,199,349.31 15,286,349.31
2 - 3 years 81,858,728.62 81,858,728.62
Over 3 years 1,684,355.79 1,684,355.79
Total 113,498,698.64 116,572,501.13
(2) Other payable due to shareholders units holding 5% or more voting shares of the Company during this
period
√ Applicable □ Non-applicable
Unit: RMB
Unit name Amounts at period-end Amounts at period-begin
Total 0.00 0.00
(3)Explanation on other account payable with the age over one year
Unit name Balance at period-end Reasons for unpayment
Trustee in ChengdeDixian Fashion Co., 26,410,000.00 Not expired
Ltd.
Trustee inChengdeBanhe Chemical 19,750,000.00 Not expired
Simulation Textile Co., Ltd.
Shanghai Mineral Energy ElectricCo., 12,000,000.00 Loans not expired
Ltd.
Trustee inHebeiXiaban City 8,760,000.00 Not expired
KnittingGarmentCo., Ltd.
Zhang Xiao Ming 6,500,000.00 Loans not expired
Chengde county treasury payment center 6,000,000.00 Current account
Li Yan 6,349,083.21 Loans not expired
Chen Li Ping 5,000,000.00 Loans not expired
Total 90,769,083.21
(4) Explanation on unit of major connected amount for other account payable
39. Anticipated liability
Unit: RMB
Item Amounts at period-begin Increased in this period Decreased in this period Amounts at period-end
Guarantee provided
114
承德大路股份有限公司 2012 年半年度报告全文
externally
Pending lawsuit
Products quality security
Reorganization obligation
Dismiss welfare
Deficit contract to be
implemented
Other
Total 0.00 0.00 0.00 0.00
Explanation on anticipated liability:
40. Non-current liability due within one year
(1)
Unit: RMB
Item Amounts at period-end Amounts at period-begin
Long-term loans due within one year 0.00 0.00
Bond payable due within one year 0.00 0.00
Long-term account payable due within one year 0.00 0.00
Total 0.00 0.00
(2) Long-term loans due within one year
Long-term loans due within one year
Unit: RMB
Item Amounts at period-end Amounts at period-begin
Pledged loans
Secured loans
Guaranteed loans
Credit loans
Total 0.00 0.00
In long-term loans due within one year, amount of undue but with expansion time amounted to RMB.
Top five long-term loans due within one year
Unit: RMB
Amounts at period-end Amounts at period-begin
Starting date Termination
Date of loans Currency Rate(%) Foreign Local Foreign Local
for loans date for loans
currency currency currency currency
Total -- -- -- -- -- 0.00 -- 0.00
Overdue loans in long-term loans due within one year:
Unit: RMB
Reason for Expected
Unit of loans Amount of loans Undue date Annual rate (%) Use of loan fund
overdue payment date
Total 0.00 -- -- -- -- --
TotalingRMB has been paid after balance sheet date.
115
承德大路股份有限公司 2012 年半年度报告全文
Explanation on long-term loans due within one year:
(3)Bond payable due within one year
Unit: RMB
Interest
Interest Interest paid Interest
Name of Nominal Date of Term of Amount of payable at Balance at
payable in in this payable at
bond value issue bond issue period-begi period-end
this period period period-end
n
Explanation onbond payable due within one year:
(4) Long-term account payable due within one year
Unit: RMB
Balance at Condition for
Unit of loans Term Initial amount Rate(%) Interest payable
period-end loans
Explanation onlong-term account payable due within one year:
41. Other current liability
Unit: RMB
Item Book balance at period-end Book balance at period-begin
Total 0.00 0.00
Explanation on other current liability:
42. Long-term loan
(1) Category of long-term loans
Unit: RMB
Item Amounts at period-end Amounts at period-begin
Pledged loans
Secured loans
Guaranteed loans
Credit loans 6,801,600.00 6,801,600.00
Total 6,801,600.00 6,801,600.00
Explanation oncategory of long-term loans:
On 28 December 2005, the Finance Bureau ofChengde County released a treasury bond fund of RMB5
million toChengdeXingye Papermaking Co., Ltd., a subsidiary of the Company,forpaper producing,
water saving and comprehensive utilization of resourcespursuant to JiCaiJian [2005] No. 258.
As it is hard to pay the principal and interests asa result of thatcompanys operating difficulties,
the interests of such loan were RMB1,801,600.00, with principal and interests in aggregate were
RMB6,801,600.00 as at this period-end.
116
承德大路股份有限公司 2012 年半年度报告全文
(2) Top five long-term loans
Unit: RMB
Amounts at period-end Amounts at period-begin
Starting date Termination
Unit of loans Currency Rate (%) Foreign Local Foreign Local
for loans date for loans
currency currency currency currency
Finance
Bureau
CNY 6,801,600.00 6,801,600.00
ofChengde
County
Total -- -- -- -- -- 6,801,600.00 -- 6,801,600.00
Explanation on long-term loans: if there were long-term loans from undue with expansion obtained, explain the expansion condition,
principle, interest andanticipated payment arrange:
43. Bond payable
Unit: RMB
Interest
Interest Interest paid Interest
Name of Nominal Date of Term of Amount of payable at Balance at
payable in in this payable at
bond value issue bond issue period-begi period-end
this period period period-end
n
Bond payable including convertible corporate bonds condition and time for shares transfer:
44. Long-term account payable
(1) Top five long-term account payable
Unit: RMB
Balance at Condition for
Unit Term Initial amount Rate (%) Interest payable
period-end loans
(2) Breakdown of finance lease payable in long-term payable
Unit: RMB
Amounts at period-end Amounts at period-begin
Unit
Foreign currency RMB Foreign currency RMB
Total 0.00 0.00 0.00 0.00
Amount of guarantee from independent third party for thefinance lease of the Company was RMB.
Explanation on long-term payable:
45. Specific account payable
Unit: RMB
Amounts at Increased in this Decreased in Amounts at
Item Remarks
period-begin period this period period-end
117
承德大路股份有限公司 2012 年半年度报告全文
Paper producing, water
saving and
comprehensive 7,500,000.00 7,500,000.00 JiCaiJian[2005] No. 280
utilization of
resources
Demonstration project for
comprehensiveutilization of
3,000,000.00 3,000,000.00 JiCaiJian[2004] No.134
resource for waste paper
recycling industry chain
Finance Bureau of
98,000.03 98,000.03
ChengdeCounty
Total 10,598,000.03 0.00 0.00 10,598,000.03 --
Explanation on specific account payable:
46. Other non-current liability
Unit: RMB
Item Book balance at period-end Book balance at period-begin
Total 0.00 0.00
Other non-current liability, including various government subsidies related with assets and income as well as its balance at
period-end:
47. Share capital
Unit: RMB
Increased (decreased) in this year
Amounts at Shares Amounts at
period-begin New shares period-end
Bonus shares converted from Other Sub-total
issued
provident fund
Total number
706,320,000 0 706,320,000
of shares
Explanation on share capital changes, if there were capital increase/decrease in this reporting period, the CPAs name and verification
documents should bedisclosed; for the companieswith limited liabilities withoperation less than 3 years, the net assetsshould be
explained before establishment; for those companieswith limited liabilitiestransformedintojoint stock companies, explain the
verification condition while established:
48. Treasury shares
Explanation on treasury shares:
49. Specific reserve
Explanation onspecific reserve:
50. Capitalreserves
Unit: RMB
118
承德大路股份有限公司 2012 年半年度报告全文
Decreased in this Amounts at
Item Amounts at period-begin Increased in this period
period period-end
Capital premium (Share capital
391,996,587.96 391,996,587.96
premium)
Other capital reserve 58,768,855.14 58,768,855.14
Total 450,765,443.10 0.00 0.00 450,765,443.10
Explanation of capitalreserves:
51. Surplus reserves
Unit: RMB
Decreased in this Amounts at
Item Amounts at period-begin Increased in this period
period period-end
Statutory surplus reserves 76,791,550.17 76,791,550.17
Free surplus reserve
Service fund
Enterprise development fund
Other
Total 76,791,550.17 0.00 0.00 76,791,550.17
Explanation on surplus reserve, if share capital converted from surplus reserve, remedy deficit and dividend distributed, explain
relevant resolutions:
52. General risk provision
Explanation on general risk provision:
53. Undistributed profits
Unit: RMB
Withdrawal or allocation
Item Amount
proportion
Unallocated profits at the end of last year
-1,257,759,031.84 --
before adjustment
Adjust the total unallocated profits at the
--
beginning of the year (Increase +, Decrease -)
Unallocated profits at the beginning of the
-1,257,759,031.84 --
year after adjustment
Plus: net profits belonging to owners of patent
-15,704,974.76 --
company for this period
Less: withdraw legal surplus reserves
Withdraw free surplus reserves
Withdraw general risk reserves
Dividends of ordinary shares payable
Dividends of ordinary shares transferred into
share capital
Unallocated profits at the end of the period -1,273,464,013.34 --
Breakdown of adjusting the unallocated profits at the beginning of the year:
119
承德大路股份有限公司 2012 年半年度报告全文
1). The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the
unallocated profits at the beginning of the year amounting to RMB0.00.
2). The changes in accounting policies affect the unallocated profits at the beginning of the year amounting toRMB0.00.
3). The major accounting error correction affects the unallocated profits at the beginning of the year amounting to RMB0.00.
4). Merge scope changes caused by the same control affect the unallocated profits at the beginning of the year amounting
toRMB0.00.
5). Other adjustments affect the unallocated profits at the beginning of the year amounting to RMB0.00.
The unallocated profitsindicate that, for the company with initial public offering of securities should clearly state if the accumulated
profits are decided to be shared by old shareholders by general meeting before issuing; while the company should clearly disclose the
audited profits in the dividends payable belong to old shareholders.
54. Operating income and operating cost
(1)Operating income and operating cost
Unit: RMB
Item Amount generated in this period Amount generated inlast period
Principal business income 0.00 0.00
Other business income 481,640.00 21,250.00
Operating cost 0.00 0.00
(2)Principal business (by industries)
√ Applicable □ Non-applicable
Unit: RMB
Amount generated in this period Amount generated inlast period
Name ofindustries
Operating income Operating cost Operating income Operating cost
- 0.00 0.00
Total 0.00 0.00 0.00 0.00
(3)Principal business (by products)
√ Applicable □ Non-applicable
Unit: RMB
Amount generated in this period Amount generated inlast period
Name ofproducts
Operating income Operating cost Operating income Operating cost
- 0.00 0.00
Total 0.00 0.00 0.00 0.00
(4)Principal business (by districts)
√ Applicable □ Non-applicable
Unit: RMB
Amount generated in this period Amount generated inlast period
Name of districts
Operating income Operating cost Operating income Operating cost
Domestic sales 0.00
Foreign sales 0.00
Total 0.00 0.00 0.00 0.00
120
承德大路股份有限公司 2012 年半年度报告全文
(5)The operating income of the top five customers of the Company
Unit: RMB
The percentage in all operating income of the
Name of customers Principal business income
Company(%)
Total 0.00 0%
Explanation on operating income:
Other business income of the Company represents the income from leasing of certain vacant plants
and grounds.
55. Contract item income
√ Applicable □ Non-applicable
Unit: RMB
Accumulatedgross
Accumulated costs profit recgnised
Fixed costcontract Contract item Amount Amounts settled
incurred (with loss
represented by “-”)
Sub-total 0.00 0.00 0.00 0.00
Accumulated gross
Accumulated costs profit recgnised
Cost-plus contract Contract item Amount Amounts settled
incurred (with loss
represented by “-”)
Sub-total 0.00 0.00 0.00 0.00
Explanation on contract item:
56. Business tax and surcharges
Unit: RMB
Amount generated in this Amount generated inlast
Item Calculating and payment standards
period period
Consumption tax
Business tax 44,162.70 8,261.25 5%
City maintenance and construction
2,512.25 1,016.95 5%
tax
Education surcharge 2,512.25 1,016.96 2%,3%
Resources tax
Total 49,187.20 10,295.16 --
Explanation onbusiness tax and surcharges:
57. Income of fair value changes
Unit: RMB
Sources generating income of fair value changes Amount generated in this period Amount generated inlast period
Trading financial assets
121
承德大路股份有限公司 2012 年半年度报告全文
Including: Income of fair value changes generated
by derivative financial instruments
Trading financial assets liabilities
Investment real estate measured by fair value
Others 0.00 0.00
Total 0.00 0.00
Explanation onincome of fair value changes:
58. Investment income
(1)Breakdown of investment income
Unit: RMB
Item Amount generated in this period Amount generated inlast period
Income of long-term equity investment calculated
0.00 0.00
based on cost
Income of long-term equity investment calculated
0.00 0.00
based on equity
Investment income obtained from disposal of
long-term equity investment
Investment income obtained during holding trading
financial assets
Investment income obtained during held-to-maturity
investment gaining investment income
Investment income obtained during holding
available-for-sale financial assets
Investment income obtained on disposing of trading
financial assets
Investment income obtained from held-to-maturity
investment
Investment income obtained from available-for-sale
financial assets
Others
Total 0.00 0.00
(2)Income of long-term equity investment calculated based on cost
Unit: RMB
Amount generated in this Amount generated Reasons forincrease/decrease in this
Invested united
period inlast period period compared with last period
Total 0.00 0.00 --
(3)Income of long-term equity investment calculated based on equity
Unit: RMB
Amount generated in this Amount generated Reasons forincrease/decrease in this
Invested united
period inlast period period compared with last period
Total 0.00 0.00 --
122
承德大路股份有限公司 2012 年半年度报告全文
Explanation on investment income: it should be introduced if there is significant restrictions to repatriation of investment income; it
also should be introduced if there is no this kind of significant restrictions:
59. Impairment loss of asset
Unit: RMB
Item Amount generated in this period Amount generated inlast period
1. Bad debt loss
2. Inventory falling price loss
3. Impairment loss of available-for-sale financial assets
4. Impairment loss of held-to-maturity investment
assets
5. Impairment loss of long-term equity investment
6. Impairment loss of investment real estate
7. Impairment loss of fixed assets
8. Impairment loss of project goods and material
9. Impairment loss of construction in process
10. Impairment loss of productive living beings
11. Impairment loss of oil gas
12. Impairment loss of intangible assets
13. Impairment loss of goodwill
14. Others
Total 0.00 0.00
60. Non-operating income
(1)
Unit: RMB
Item Amount generated in this period Amount generated inlast period
Total gains on disposal ofnon-current assets 970,161.00
Including: gain ondisposal of fixed assets 970,161.00
Gain on disposal of intangible assets
Gain ondebt restructuring
Gain onexchange of non-monetary assets
Accepting donations
Government grants 0.00 0.00
Others 50,850.00
Total 0.00 1,021,011.00
(2) Breakdown of government grants
Unit: RMB
Amount generated in this Amount generated inlast
Item Description
period period
Total 0.00 0.00 --
Explanation onnon-operating income:
123
承德大路股份有限公司 2012 年半年度报告全文
61. Non-operating expenditure
Unit: RMB
Item Amount generated in this period Amount generated inlast period
Total loss on disposal ofnon-current assets 8,762,601.63 0.00
Including: loss on disposal of fixed assets 8,762,601.63
Loss on disposal of intangible assets
Loss on debt restructuring
Loss on exchange of non-monetary assets
Donations contributed
Others 1,156,412.17 152,271.51
Total 9,919,013.80 152,271.51
Explanation onnon-operating expenditure:
62. Income tax expense
Unit: RMB
Item Amount generated in this period Amount generated inlast period
Current income tax calculated based on tax law and relevant
28,965.25 3,500.64
rules
Deferred income tax adjustment
Total 28,965.25 3,500.64
63. Calculation of basic earnings per share and diluted earnings per share
Item Current period Last period
Net profit attributable to ordinary P1 -15,704,981.50 -4,069,051.79
shareholders of the Company during
the reporting period
Non-recurring gains and losses F -7,964,564.92 868,739.49
attributable to ordinary shareholders of
the Company during the reporting
period
Net profit attributable to ordinary P2=P1-F -7,740,409.84 -4,937,791.28
shareholders of the Company after
deduction of non-recurring gains and
losses during the reporting period
Effect of dilution events on the net P3
profit attributable to ordinary
shareholders of the Company
Effect of dilution events on the net P4
profit attributable to ordinary
shareholders of the Company after
deduction of non-recurring gains and
losses
Total number of share at the beginning S0 706,320,000.00 706,320,000.00
of the year
124
承德大路股份有限公司 2012 年半年度报告全文
Number of increased shares due to S1
conversion of reserve into share capital
or distribution of stock dividends
during the reporting period
Number of increased shares due to Si
issuance of new shares or bond
conversion during the reporting period
Number of months from the next month Mi
of share increase to the end of the
reporting period
Number of decreased shares due to Sj
repurchase during the reporting period
Number of months from the next month Mj
of share decrease to the end of the
reporting period
Number of decreased shares during the Sk
reporting period
Number of months during the reporting M0 6 6
period
Weighted average ordinary shares S=S0+S1+Si 706,320,000.00 706,320,000.00
outstanding *Mi/M0-Sj*
Mj/M0-Sk
Plus: weighted average ordinary shares X1
increased by assumption of conversion
of diluted potential ordinary shares into
ordinary shares in issue
Weighted average ordinary shares for X2=S+X1
diluted earnings per share
Including: weighted ordinary shares
increased by conversion of
convertible bonds
Weighted ordinary shares increased
by exercise of call warrants/stock
warrants
Weighted ordinary shares increased
by performance of repurchase
undertakings
Basic earnings per share attributable to Y1=P1/S - -0.006
ordinary shareholders of the Company 0.022
Basic earnings per share attributable to Y2=P2/S - -0.007
ordinary shareholders of the Company 0.011
after deduction of non-recurring gains
and losses
Diluted earnings per share attributable Y3=（P1＋ - -0.006
to ordinary shareholders of the P3）/X2 0.022
Company
Diluted earnings per share attributable Y4=（P2＋ - -0.007
to ordinary shareholders of the P4）/X2 0.011
Company after deduction of
non-recurring gains and losses
125
承德大路股份有限公司 2012 年半年度报告全文
64. Other comprehensive income
Unit: RMB
Item Current period Last period
Gains (losses) from available-for-sale financial assets
Less: effect of income tax from available-for-sale financial
assets
Net amount recorded into other comprehensive income in the
last period and transferred into gains and losses in the current
period
Subtotal 0.00 0.00
2. Share of other comprehensive income of investees based on
the equity method
Less: effect of income tax from the share of other
comprehensive income of investees based on the equity method
Net amount recorded into other comprehensive income in the
last period and transferred into gains and losses in the current
period
Subtotal 0.00 0.00
3. Gains (losses) from cash flow hedging instruments
Less: effect of income tax from cash flow hedging
instruments
Net amount recorded into other comprehensive income in the
last period and transferred into gains and losses in the current
period
Adjustment of the amount on initial recognition of the item
transferred as the hedged item
Subtotal 0.00 0.00
4. Difference of translation of financial statements in foreign
currencies
Less: net amount transferred into gains and losses from
disposal of overseas operations in the current period
Subtotal
5. Others
Less: effect of income tax from others recorded into other
comprehensive income
Net amount recorded into other comprehensive income in the
last period and transferred into gains and losses in the current
period
Subtotal 0.00 0.00
Total 0.00 0.00
Explanation on other comprehensive income:
65. Notes to cash flows statement
(1) Other cash received from operating activities
Unit: RMB
Item Amount
Current accounts received 1,829,870.20
Income from lease and sales of scraps 295,312.69
Others 6,698.30
Total 2,131,881.19
126
承德大路股份有限公司 2012 年半年度报告全文
Explanation on other cash received from operating activities
(2) Other cash paid to operating activities
Unit: RMB
Item Amount
Current accounts paid 2,737,000.00
Others 2,600,549.73
Total 5,337,549.73
Explanation on other cash paid to operating activities
(3) Other cash received from investing activities
Unit: RMB
Item Amount
Total 0.00
Explanation on other cash received from investing activities
(4) Other cash paid to investing activities
Unit: RMB
Item Amount
Other non-current assets purchased 700,000.00
Total 700,000.00
Explanation on other cash paid to investing activities
(5) Other cash received from financing activities
Unit: RMB
Item Amount
Total 0.00
Explanation on other cash received from financing activities
(6) Other cash paid to financing activities
Unit: RMB
Item Amount
Repayment of borrowings of non-related parties 3,090,000.00
Total 3,090,000.00
Explanation on other cash paid to financing activities:
66. Supplemental information for cash flow statement
(1) Supplemental information for cash flow statement
Unit: RMB
Supplemental information Current period Last period
127
承德大路股份有限公司 2012 年半年度报告全文
1. Adjustments to reconcile net profit to net cash
-- --
provided by operating activities:：
Net profit -17,659,423.64 -4,388,773.72
Add: Impairment provision for assets 0.00 0.00
Depreciation of fixed assets, consumption & depreciation
1,393,840.97 1,366,083.37
of fuel and gas, depreciation of production materials
Amortization for intangible assets 310,750.74 310,750.74
Amortization for long-term prepayment 35,664.00
Loss on disposal of fixed assets, intangible assets and
8,762,601.63 -967,298.00
others long-term assets(Income is listed with “-”)
Loss upon rejection of fixed assets(Income is listed with
“-”)
Loss on variance of fair value (Income is listed with “-”)
Finance cost (Income is listed with “-”)
Loss in investment(Income is listed with “-”)
Decrease of deferred tax assets(Increase is listed with “-”)
Liability increase of deferred tax(Decrease is listed with
“-”)
Decrease of inventories(Increase is listed with “-”) -16,806,352.32 -2,616,473.70
Decrease of operating receivable account items(Increase is
-737,741.42 -13,720,853.02
listed with “-”)
Increase of operating payable account items (Decrease is
27,061,046.25 -630,510.36
listed with “-”)
Others
Net cash flow from operating activities 2,360,386.21 -20,647,074.69
2. Significant investing and financing activities for non
-- --
cash items:
Liabilities capitalized
Convertible bonds payable mature in one year
Financing leased fixed assets
3. Net increase (decrease) for cash and cash equivalents: -- --
Ending balance for cash 1,571,028.20 759,615.12
Less: beginning balance for cash 5,517,692.29 9,723,008.25
Add: ending balance for cash equivalents
3. Net increase (decrease) for cash and cash equivalents:
Ending balance for cash -3,946,664.09 -8,963,393.13
(2) Other information in relation to acquisition or disposal of subsidiaries and other operating units during the reporting
period
Unit: RMB
Supplementary information Current period Last period
I. Relevant information of acquisition of subsidiaries and
-- --
other operating units:
1. Price of acquisition of subsidiaries and other operating
units
2. Cash and cash equivalents paid for acquisition of
subsidiaries and other operating units
Less: cash and cash equivalents held by subsidiaries and
other operating units:
3. Net cash paid for acquisition of subsidiaries and other 0.00 0.00
128
承德大路股份有限公司 2012 年半年度报告全文
operating units
4. Net assets of subsidiaries 0.00 0.00
Current assets
Non-current assets
Current liabilities
Non-current liabilities
II. Relevant information of disposal of subsidiaries and
-- --
other operating units:
1. Price of disposal of subsidiaries and other operating units
2. Cash and cash equivalents received from disposal of
subsidiaries and other operating units
Less: cash and cash equivalents held by subsidiaries
and other operating units
3. Net cash received from disposal of subsidiaries and other
0.00 0.00
operating units
4. Net assets of subsidiaries 0.00 0.00
Current assets
Non-current assets
Current liabilities
Non-current liabilities
(3) Constitution of cash and cash equivalents
Unit: RMB
Item Period-end Period-beginning
I. Cash 1,571,028.20 5,517,692.29
Including: Inventory cash 42,185.38 103,766.34
Bank deposit payable at any time 1,458,163.53 468,956.88
Other monetary fund payable at any time 70,679.29 4,944,969.07
Deposits in central bank available for payment
Deposits in other banks and financial institutions
Borrowings to other banks and financial institutions
II. Cash equivalents
Including: Bond investment due within 3 months
III. Balance of cash and cash equivalent at period-end 1,571,028.20 5,517,692.29
Explanation on supplementary information of cash flows statement
67. Notes to items of statement of changes of owners’ equity
Explanation on the names of “other” items adjusted for the balances at the end of last year and the adjustment amounts and
retrospective adjustments from business combination under common control:
(VIII) Accounting of the asset securitization business
1. Explanation on the major transaction arrangements of the asset securitization business and its accounting and its
bankruptcy segregation clause
129
承德大路股份有限公司 2012 年半年度报告全文
2. Special purpose entities in which the Company has no control right but actually burdens its risks
Unit: RMB
Operating income
Total assets at Total liabilities at Net assets at Net profit at the
Name at the current Remark
period-end period-end period-end current period
period
(IX) Related parties and related transactions
1. Parent company of the Company
Unit: RMB
Sharehold Percentag
ing e of
percentag voting
Ultimate
Name of Place of Legal e of right of Organizat
Relations Type of Business Registere controller
parent registratio representa Currency parent parent ional
hip enterprise nature d capital of the
company n tive company company code
Company
in the in the
Company Company
(%) (%)
Parent company of the Company
The Company has no parent company. The related parties with controlling relationship of the Company refer to Mr. Chen Rong who
held 29.49% equity of the Company.
2. Subsidiaries of the Company
Unit: RMB
Shareholdi
Place of Legal Percentage
Nature of Type of Business Registered ng Organizati
Name registratio representat Currency of voting
subsidiary subsidiary nature capital percentage onal code
n ive right (%)
(%)
Real
Chengde Rongyida Chengde Zhao
Controlled Limited Estate 10,000,000 68434235-
Real Estate city Hebei Yongsheng CNY 100% 100%
subsidiary liability developme .00 0
development province
nt
Chengde
Chengde Xingye Controlled Limited country Wang Paper 250,000,00 60125211-
USD 75% 75%
Paper Industry subsidiary liability Hebei Shuxian producing 0.00 5
province
Gold Axe British
Controlled Limited
Investment Group Virgin Export 1.00 USD 100% 100%
subsidiary liability
Limited Island
Chengde
Hebei Xiaban City Controlled Limited country Wang Clothing 4,000,000. 60126026-
USD 100%
Textile subsidiary liability Hebei Shuxian producing 00 2
province
Chengde
Chengde Dixian Controlled Limited country Wang Clothes 24,000,000 60126040-
USD 100%
fashion subsidiary liability Hebei Shuxian producing .00 6
province
Chengde Waste
Chengde Huaxin Controlled Limited country 1,000,000. 74544580-
Xu Sulian paper CNY 90% 90%
waste paper collection subsidiary liability Hebei 00 5
province recycling
130
承德大路股份有限公司 2012 年半年度报告全文
3. Joint ventures and associates of the Company
Unit: RMB
Percentag
e of Total Net
Shareholdin
voting Total operatin profit
g
Type of Place of Legal right of liabilities Total net g for
Business Registered Currenc percentage Total assets at Relationshi Organization
Investee enterpris registratio representativ the at assets at income the
nature capital y of the period-end p al code
e n e Company period-en period-end for the curren
Company
in d current t
(%)
investee period period
(%)
I. Joint
-- -- -- -- -- -- -- -- -- -- -- -- -- -- --
ventures
II.
Associate -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
s
Suning
Banhe Clothes
Limited Suning Wang
Simulatio manufactur 29,000,000.00 USD 20% 20%
liability Hebei Zhengsong
n Textile e
C., Ltd.
Chengde
Dahua Paper
Limited Chengde 6,364,000,000. 266,969,909.2 624,579.6 266,345,329.6
Paper Shi Bainian manufactur JPY 45% 45% 76033882-1
liability Hebei 00 7 2 5
Industry e
Co., ltd.
131
承德大路股份有限公司 2012 年半年度报告全文
4. Other related parties of the Company
Name of other related party Relationship with the Company Organizational code
Explanation on other related parties of the Company
5. Related party transactions
(1) Purchase f commodities and receipt of labors
Unit: RMB
Current period Last period
Percentag
Pricing method Percentag e in the
and e in the amounts
Related party Related transaction decision-making transactio of the
procedure of Amount Amount
ns in the transactio
related transaction same type ns in the
(%) same type
(%)
Sales of commodities and provision of labors
Unit: RMB
Current period Last period
Percentag
Pricing method Percentag e in the
and e in the amounts
Related party Related transaction decision-making transactio of the
procedure of Amount Amount
ns in the transactio
related transaction same type ns in the
(%) same type
(%)
(2) Related custody/contracting
Consignment/contracting of the Company
Unit: RMB
Consignme
Starting Terminating Basis of nt Effect of
Name of Type of
Name of Consigned/c Amount date of date of pricing of gains/contra consignmen
consignee involved in consigned/c
consignor/c ontracted consignmen consignmen consignmen cting gains t/contractin
and consigned/c ontracted
ontractor assets t/contractin t/contractin t recognized g on the
contractee ontracted assets
g g gains/contra during the Company
assets
cting gains reporting
period
Entrusted management/contracting of the Company
Unit: RMB
Type of Starting Terminating Basis of Entrustment Effect of
Name of Name of Entrusted/c Amount
entruster/co entrustee/co ontracted involved in entrusted/co date of date of pricing of fee/contract entrustment
ntractor ntractee assets entrusted/co ntracted entrustment/ entrustment/ entrustment ing fee /contracting
ntracted assets contracting contracting fee/contracti recognized gains on the
132
承德大路股份有限公司 2012 年半年度报告全文
assets ng fee during the Company
reporting
period
Explanation on related entrusted management/contracting
(3) Related lease
Lease of the Company
Unit: RMB
Lease gains
Amount Effect of
Type of Basis of recognized
Name of Name of Leased involved in Starting Terminating lease gains
leased pricing of during the
lessor lessee assets leased date of lease date of lease on the
assets lease gains reporting
assets Company
period
Lease by the Company
Unit: RMB
Lease gains
Amount Effect of
Type of Basis of recognized
Name of Name of Leased involved in Starting Terminating lease gains
leased pricing of during the
lessor lessee assets leased date of lease date of lease on the
assets lease gains reporting
assets Company
period
Explanation on related lease
(4) Related guarantee
Unit: RMB
Starting date of Maturity date of Guarantee completed
Guarantor Guarantee Guarantee amount
guarantee guarantee or not
Explanation on related guarantee
(5) Borrowing of related party funds
Unit: RMB
Related party Borrowed amount Starting date Maturity date Explanation
Borrowed
Lent
(6) Transfer of related party assets and debt reorganization
Unit: RMB
Current period Last period
Type of
Related party related Related transaction Pricing method Percentag Percentag
transaction and Amount e in the Amount e in the
decision-making amounts amounts
133
承德大路股份有限公司 2012 年半年度报告全文
procedure of of the of the
related transactio transactio
transaction ns in the ns in the
same type same type
(%) (%)
(7) Other related transactions
6. Amounts receivable from and payable to related parties
Amounts receivable from related parties
Unit: RMB
Item Related party Amount at period-end Amount at period-beginning
Chengde Dahua Paper
Other receivables 44,196,901.26 44,196,901.26
Co., Ltd.
Suning Banhe Fiber Co.,
Other receivables 15,361.00 15,361.00
Ltd.
Amounts payable to related parties
Unit: RMB
Amount at
Item Related party Amount at period-end
period-beginning
(X) Share payment
1. Overall share payment
Total amount of various equity instruments
granted by the Company in the period
Total amount of various equity instruments
exercised by the Company in the period
Total amount of various equity instruments
lapsed of the Company in the period
Range of exercise price and remaining contract
term of stock warrants outstanding of the
Company at the end of the period
Range of exercise price and remaining contract
term of other equity instruments of the
Company at the end of the period
Explanation of share payment
2. Equity-settled share payment
Unit: RMB
Determination of fair value of equity instruments on the grant
date
Determination of best estimates of number of exercisable equity
instruments
Reason for material difference between estimates in the current
period and in the last period
134
承德大路股份有限公司 2012 年半年度报告全文
Accumulated amount of equity-settled share payment in capital
reserves
Total expenses recognized from equity-settled share payment
Explanation on equity-settled share payment
3. Cash-settled share payment
Unit: RMB
Determination of fair value of liabilities undertaken by the
Company and based on shares or other equity instruments
Accumulated liabilities from cash-settled share payment in
liabilities
Total expenses recognized from cash-settled share payment
Explanation on cash-settled share payment
4. Share-paid services
Unit: RMB
Total amount of staff services exchanged with share payment
Total amount of other services exchanged with share payment
5. Alteration and termination of share payment
（XI）Contingency
1. Contingent liability arising from pending litigation or arbitration and its financial effects
1. Claims against the Company by Shuxian Wang in relation to dispute of creditors right
On 26 April 2011, the Company received a notice of appearance from Chengde Intermediate Peoples Court of Hubei Province,
the former major shareholder Shuxian Wang brought a lawsuit against the Company in relation to dispute of creditors right and
instituted legal proceedings to Chengde Intermediate Peoples Court of Hubei Province. Shuxian Wang alleged that his 208,324,800
shares of the Company was auctioned by the court to repay bank loan of RMB84,371,544.00 for the Company. He appealed to
dispose equity upon the completion of bankrupt reorganization and settlement and repay debts with relevant
proceeds
As of 30 June 2012, the case is still pending and there is no substantial progress.
2. Claim against Xue Xu by the Company in relation to infringement on reputation right
On Dec. 22 of 2012, to protect interest of the Company, the Company counterclaimed to Beijing Xicheng Area over that
respondent Xu Xue intentionally fabricated information and spread fictional information and whistle-bowling to media which
severally hurt reputation of the Company. The Company received ruling letter from the court in Mar. of 2012 with (2012) XMCZ No.
1093, rejecting lawsuit of Chengde Dalu Co., Ltd. The Company thought respondent intentionally concealed facts which had been
answered thus impacted the court to make a fair justice. Thus we appealed to Beijing 1st Medium Peoples Court. In June of 2012, the
Company received ruling letter from the court with (2012) YZMZZ No. 6804, which cancelled judgment of Beijing Xicheng Area
Peoples Court and called them to hear this case. Till reporting period-end, this case has been in process.
2、Contingent liability arising from guarantees for debt of other units and its financial effects
Other contingent liability and its financial effects:
135
承德大路股份有限公司 2012 年半年度报告全文
(XII) Commitments
1. Significant commitments
Capital commitment contracted but not recognized in Closing balance Opening balance
financial statements
Commitment on investment USD 112.50 million USD 112.50 million
Chengde Xingye Papermaking Co., Ltd. has the registered capital of USD 250,000,000.00, within which USD 187500000.00 (75%)
committed by the Company. According to the article of “Approval about the capital increase of Chengde Dexing Paper Industrial Co.,
Ltd” with WaiJingZi Er Han [2001] No.969 issued by the ministry of foreign trade and economic cooperation of the People's
Republic of China on 28th Oct 2002, the Company should pay the increased capital within 3 years since the change of the business
license which agreed in the agreement & the company articles. As of the date of the report , the paid-in capital is the amount of RMB
622,500,000.00（US$75,000,000.00），which accounts for 40% of the registered capital。
Except the matter stated above，there is no other major commitment need to be disclosed.
2. Fulfillment of early commitments
(XIII) Item after date of balance sheet
1. Explanation of significant items after date of balance sheet
Unit: RMB
Impact on financial position and
Item Content Reasons for inestimable impact
operating results
2. Explanation on profit distribution after date of balance sheet
Unit: RMB
Profit or dividend proposed to be distributed
Distributable profit or dividend approved and reviewed
3. Explanation on other items after date of balance sheet
（XIV）Explanation of other significant events
1. Exchange of non-monetary assets
2. Debt restructuring
136
承德大路股份有限公司 2012 年半年度报告全文
3. Business combination
4. Lease
5. Financial instruments issued at the period-end and convertible to shares
6. Primary coverage of annuity plan and significant changes
7. Other significant events required to be disclosed
(XV) Notes to major items of parent company’s financial statements
1. Accounts receivable
（1）Accounts receivable
Unit: RMB
Amount at period-end Amount at period-begin
Book balance Bad debt provision Book balance Bad debt provision
Category
Propo
Proporti Proporti Proporti
Amount rtion Amount Amount Amount
on (%) on (%) on (%)
(%)
Single item with
significant accounts
0.00 0.00 0.00 0.00
receivable provided as
single bad debt
Accounts receivable provided as bad debt by category
Subtotal 0.00 0% 0.00 0.00 0% 0.00
Single item without
significant accounts
0.00 0.00 0.00 0.00
receivable yet provided as
single bad debt
Total 0.00 -- 0.00 -- 0.00 -- 0.00 --
Notes to category of accounts receivable:
Single item with significant accounts receivable provided as single bad debt at the period-end:
□ Applicable □ inapplicable
In the combination, accounts receivable with accrual for bad debt provision using aging analysis method:
□ Applicable □ inapplicable
In the combination, accounts receivable with accrual for bad debt provision using percentage of total receivable outstanding method:
□ Applicable □ Inapplicable
In the combination, accounts receivable with accrual for bad debt provision using other methods:
□ Applicable □ Inapplicable
Single item without significant accounts receivable yet provided as single bad debt at the period-end:
137
承德大路股份有限公司 2012 年半年度报告全文
□ Applicable □ Inapplicable
(2) Switching back and recovery of Accounts receivable during the report period
Unit: RMB
Accumulative amount
Reasons for switching Basis for recognition of provided as bad debt Amount switched back
Item
back or recovery bad debt provision before switching-back or or received
recovery
Total -- -- --
Provision of bad debts for accounts receivable with single major amount or single minor amount but conducting impairment test
singly:
Withdrawal proportion
Item Book balance Amount of bad debt Reason
(%)
Total -- --
Notes to accounts receivable with single minor amount and high risk after combined on the basis of the characteristic of portfolio
credit risk:
(3) Actual write-off of accounts receivable during the report period
Unit: RMB
Caused due to
Nature of accounts
Name Write-off date Amount Reason related transaction or
receivable
not
Total -- -- 0.00 -- --
Notes to write-off of accounts receivable:
(4) Accounts receivable from shareholders holding over 5% (5% inclusive) of the Company’s shares with voting rights
during the reporting period
□ Applicable √ Inapplicable
(5) Nature and item of accounts receivable with major amount
(6) Top 5 units with an amount of other accounts receivable
Unit: RMB
Proportion of the
Relationship with
Name Amount Age total other accounts
the company
receivable (%)
Total -- 0.00 -- 0%
(7) Accounts receivable of related parties
Unit: RMB
Name Relationship with the Amount Proportion of the total other
138
承德大路股份有限公司 2012 年半年度报告全文
company accounts receivable (%)
Total -- 0.00 0%
(8)
Conversed accounts receivable met no qualification of discontinuing recognition is RMB []
(9) Brief explanation on transaction arrangement when accounts receivable is underlying assets of securitization
2. Other accounts receivable
（1）Other accounts receivable
Unit: RMB
Opening balance Closing balance
Provision for bad
Book balance Provision for bad debts Book balance
debts
Category
Propo Propo Propo Propo
Amount rtion Amount rtion Amount rtion Amount rtion
(%) (%) (%) (%)
Single item with significant
other receivables provided as 0.00 0.00 0.00 0.00
single bad debt
Other receivables provided as bad debt by category
Subtotal 586,130.07 100% 21,283.33 3.63% 371,672.85 100% 21,283.33 5.73%
Single item without
significant other receivables
0.00 0.00 0.00 0.00
yet provided as single bad
debt
Total 586,130.07 -- 21,283.33 -- 371,672.85 -- 21,283.33 --
Notes to category of other accounts receivable:
Single item with significant other receivables provided as single bad debt at the period-end:
□ Applicable √ Inapplicable
In the combination, OR with accrual for bad debt provision using aging analysis method:
√ Applicable □ Inapplicable
Unit: RMB
Opening balance Closing balance
Book balance Book balance
Age Provision for bad Provision for bad
Proporti debts Proporti debts
Amount Amount
on (%) on (%)
Within 1 year
Including: -- -- -- -- -- --
Subtotal 287,153.72 48.99% 2,502.18 72,696.50 20% 2,502.18
1-2 years 265,291.40 45.26% 409.80 265,291.40 71% 409.80
2-3 years 30,627.20 5.23% 15,313.60 30,627.20 8% 15,313.60
Over 3 years 3,057.75 0.52% 3,057.75 3,057.75 1% 3,057.75
139
承德大路股份有限公司 2012 年半年度报告全文
3-4 years
4-5 years
Over 5 years
Total 586,130.07 -- 21,283.33 371,672.85 -- 21,283.33
In the combination, OR with accrual for bad debt provision using percentage of total receivable outstanding method:
□ Applicable √ Inapplicable
In the combination, OR with accrual for bad debt provision using other method:
□ Applicable √ Inapplicable
OR with no individual significant amount but requires accrual for bad debt provision at the period-end:
□ Applicable √Inapplicable
（2）Switching back and recovery of other accounts receivable during the report period
Unit: RMB
Accumulative amount of
Reasons for switching Basis for recognition of bad debt before Amount switched back
Item
back or recovery bad debt switching-back or or received
recovery
Total -- -- --
Single item with or without significant other receivables provided as single bad debt yet conducting impairment test singly at the
period-end:
Withdrawal proportion
Item Book balance Amount of bad debt Reason
(%)
Total -- --
Notes to other accounts receivable with single minor amount and high risk after combined on the basis of the characteristic of
portfolio credit risk:
（3）Actual write-off of other accounts receivable during the report period
Unit: RMB
Nature of accounts Caused due to related
Name Write-off date Amount Reason
receivable transaction or not
Total -- -- 0.00 -- --
Notes to write-off of other accounts receivable:
（4）Other accounts receivable from shareholders holding over 5% (5% inclusive) of the Company’s shares with voting
rights during the reporting period
□ Applicable √ Inapplicable
（5）Nature and item of other accounts receivable with major amount
（6）Top 5 units with an amount of other accounts receivable
Unit: RMB
140
承德大路股份有限公司 2012 年半年度报告全文
Proportion of the
Relationship with
Name Amount Age total other accounts
the company
receivable (%)
Total -- 0.00 -- 0%
(7) Other accounts receivable of related parties
Unit: RMB
Relationship with the Proportion of the total other
Name Amount
company accounts receivable (%)
Suning Banhe Chemical Fiber
Affiliated company 15,361.00 2.62%
Facsimile Fabric Co., Ltd
Total -- 15,361.00 2.62%
（8）
Conversed accounts receivable met no qualification of discontinuing recognition was RMB []
(9) Brief explanation on transaction arrangement when other accounts receivable is the underlying assets of securitization
3. Long-term equity investment
Unit: RMB
explanati
on of
non-coinc
idence
Proportio between
Balance Change Balance Provision Accrual Cash
Proportio n of the
Invested Calculatio Investme at of at of provision bonus in
n of share voting proportio
company n method nt cost period-be increase/d period-en depreciati n in this this
held (%) right held n of share
gin ecrease d on period period
(%) held and
proportio
n of
voting
held
Chengde
Rongyida
Real
53,114,29 53,114,29 53,114,29
Estate Cost 100% 100%
9.73 9.73 9.73
developm
ent Co.,
Ltd.
Chengde
Xingye
622,500,0 622,500,0 622,500,0 616,688,4
Paper Cost 75% 75%
00.00 00.00 00.00 19.47
Industry
Co., Ltd.
Gold
Axe
8,300,000 8,300,000 8,300,000 8,300,000
Investme Cost 100% 100%
.00 .00 .00 .00
nt Group
Limited
Hebei Cost 100% Bankrupt 431,604,2
431,604,2 431,604,2 431,604,2
Xiaban
141
承德大路股份有限公司 2012 年半年度报告全文
City 03.41 03.41 03.41 03.41
Textile
Garment
Co., Ltd.
Chengde
Dixian 149,408,2 149,408,2 149,408,2 149,408,2
Cost 75% Bankrupt
Fashion 30.11 30.11 30.11 30.11
Company
Suning
Banhe
Chemical
46,980,00 46,980,00 46,980,00 46,980,00
Fiber Equity 20% 20%
0.00 0.00 0.00 0.00
Facsimile
Fabric
Co., Ltd
1,311,906 1,311,906 1,311,906 1,252,980
Total -- 0.00 -- -- -- 0.00 0.00
,733.25 ,733.25 ,733.25 ,852.99
Notes to Long-term equity investment
4. Operating revenue and operating cost
(1) Operating revenue and operating cost
Unit: RMB
Item Incurred during the current period Incurred during the prior period
Main business income
Other business income
operating cost 0.00 0.00
Total 0.00 0.00
(2) Main business (by industry)
□ Applicable √ Inapplicable
(3) Main business (by product)
□ Applicable √ Inapplicable
(4) Main business (by region)
□ Applicable √ Inapplicable
(5) Operating revenue of the top five clients of the Company
Unit: RMB
Proportion of
total revenue of
Name Total operating revenue
the Company
(%)
Total 0.00 0%
Notes to operatingrevenue
142
承德大路股份有限公司 2012 年半年度报告全文
5. Investment income
(1) Details of investment income
Unit: RMB
Item Incurred during the current period Incurred during the prior period
Investment income from long-term equity investment
0.00 0.00
recognized and measured by cost method
Investment income from long-term equity investment
0.00 0.00
recognized and measured by equity method
Investment income from disposal of long-term equity
investment
Investment income from transaction financial assets held
Investment income from held-to-maturity investment
Investment income from financial assets held available for
sale
Investment income from disposal of transaction financial
assets
Investment from investment held to maturity
Investment income from financial assets available for sal
Others
Total 0.00 0.00
(2) Investment income from long-term equity recognized and measured by cost method
Unit: RMB
Incurred during the Incurred during the
Invested company Reason for increase/decrease
current period prior period
Total 0.00 0.00 --
(2) Investment income from long-term equity recognized and measured by equity method
Unit: RMB
Incurred during the Incurred during the
Invested company Reason for increase/decrease
current period prior period
Total 0.00 0.00 --
Notes to investment income:
6. Supplemental Information for Cash Flow Statement
Unit: RMB
Incurred during the current Incurred during the prior
Supplemental information
period period
1. Adjustments to reconcile net income to net cash provided by
-- --
operating activities:
Net profit -639,546.15 -173,544.43
Add: provision for assets impairment 0.00 0.00
Depreciation of fixed assets, consumption & depreciation of fuel and
gas, depreciation of production materials
143
承德大路股份有限公司 2012 年半年度报告全文
Amortization for intangible assets
Amortization for long-term deferred expenses
Loss arising from disposal of fixed assets, intangible assets and other
long-term assets (Income is listed with “-”)
Loss arising from retirement of fixed assets (Income is listed with
“-”)
Loss arising from changes of fair value (Income is listed with “-”)
Finance cost (Income is listed with “-”)
Loss on investment (Income is listed with “-”)
Decrease in deferred tax assets (Increase is listed with “-”)
Increase in deferred tax liabilities (Decrease is listed with “-”)
Decrease of inventories (Increase is listed with “-”)
Decrease in operating receivables (Increase is listed with “-”) -214,457.22 -25,609.02
Increase in operating payables (Decrease is listed with “-”) 854,003.37 195,340.65
Others
Net cash flow from operating activities 0.00 -3,812.80
2. Significant investing and financing activities that do not involve
-- --
cash receipts and payments
Conversion of debt into capital
Convertible bonds due within 1 year
Financing leased fixed assets
3．Net increase/decrease in cash and cash equivalents: -- --
Closing balance of cash 4,019.80 33,384.90
Less: Opening balance of cash 4,019.80 37,197.70
Add: closing balance of cash equivalents
Less: opening balance of cash equivalents
Net increase in cash and cash equivalents 0.00 -3,812.80
7. Assets and liabilities recorded with estimated value under counterpurchase
Unit: RMB
Items Estimated value Original book value
Assets
Liabilities
(XVI) Supplementary information
1. Return on equity and earnings per share
Unit: RMB
Earnings per share
Weighted average of
Profit in report period Basic earnings per Diluted earnings
Return on equity（%）
share per share
Net profit attributable to shareholders holding
-0.022 -0.022
ordinary shares of the Company
Net profit attributable to shareholders holding -0.011 -0.011
ordinary shares of the Company after deducting
144
承德大路股份有限公司 2012 年半年度报告全文
non-recurring gains and losses
2. The explanation of abnormal circumstance and reasons of items in major accounting report
(1) Monetary capital: closing balance decreased by RMB3,946,664.09 as compared to the opening balance mainly due to
subsidiary Chengde County Rongyida Real Estate Development Co., Ltd paid projects payment for development of Dalu Qianyuan
Project;
(2)Inventory: closing balance increased by RMB16, 806,352.32 as compared to the opening balance mainly because the above
project was on the construction and has not completed as of the period-end;
(3) Advance receipt: closing balance increased by RMB24, 792,659.48 as compared to the opening balance mainly due to presale
of the above project of subsidiary;
(4) Finance cost: incurred amount during the current period increased by RMB1, 645,307.58 as compared to that of the prior
period, mainly due to withdrawal of interest on borrowings in this period;
(5) Non-operating income: incurred amount during the current period decreased by RMB1, 021,011.00 as compared to that of the
prior period, mainly due to income arising from disposal of non-current assets in the previous period;
(6) Non-operating expenditure: incurred amount during the current period increased by RMB9, 766,742.29 as compared to that of
the prior period, mainly due to loss from disposal of non-current assets in this period.
IX Content of Document Available for Reference
Content of document available for reference
1. Semi-annual accounting statements for 2012 carrying signatures and seals of legal person, person in charge of accounting work
and person in charge of accounting institution;
2. All originals of document and announcement of the Company publicly disclosed in the newspaper designated by CSRC during
the report period
Chairman of the Board: Lixin Lin
Reporting date approved by Board: 23 August 2012
145
