承德南江股份有限公司 2014 年半年度报告全文
CHENGDE NANJIANG CO．，LTD.
SEMI-ANNUAL REPORT 2014
August 2014
1
承德南江股份有限公司 2014 年半年度报告全文
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of Chengde Nanjiang 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 attended the Board Meeting for report deliberation.
The Company has no plan of cash dividends carried out, bonus issued and
capitalizing of common reserves either.
Li Weimin, Principal of the Company, Zhao Yongshen, person in charger of
accounting works and Liu Fengguo, person in charge of accounting organ
(accounting principal) hereby confirm that the Financial Report of 2014
Semi-annual Report is authentic, accurate and complete.
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承德南江股份有限公司 2014 年半年度报告全文
Content
Semi-Annual Report 2014 ................................................................................................................. 1
Section I Important Notice, Contents and Paraphrase .................................................................. 1
Section II Company Profile ............................................................................................................... 3
Section III Accounting data and summary of finnaical indexes .................................................... 4
Section IV Report of the Board of Directors ................................................................................... 6
Section V Important Events ............................................................................................................ 12
Section VI Changes in shares and particular about shareholders............................................... 22
Section VII Preferred Stock………………………………………………………………………23
Section VIII Directors, Supervisors and Senior Executives ....................................................... 24
Section IX Financial Report ............................................................................................................ 27
Section X Documents Available for Reference ........................................................................... 118
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承德南江股份有限公司 2014 年半年度报告全文
Paraphrase
Items Refers to Contents
CSRC, SRC Refers to China Securities Regulatory Commission
SZ Stock Exchange, Exchange Refers to Shenzhen Stock Exchange
Company, The Company or Chengde Nanjiang Refers to Chengde Nanjiang Co., Ltd.
Nanjiang Investment Refers to Chengde Nanjiang Investment Co., Ltd.
Nanjiang Real Estate Refers to Chengde Nanjiang Real Estate Development Co., Ltd.
Chengde Morsh, Morsh Technology Refers to Chengde Morsh Technology Co., Ltd.
Nanjiang Ecological Agriculture, Ecological
Refers to Chengde Nanjiang Ecological Agriculture Co., Ltd.
Agriculture, Agriculture Company
Company Law Refers to Company Law of the Peoples Republic of China
Securities Law Refers to Securities Law of the Peoples Republic of China
Rules Governing the Listing of Securities Refers to Rules Governing the Listing of Securities on Shenzhen Stock Exchange
Yuan, 10 thousand Yuan Refers to RMB, RMB 10 thousand
Runhua RW, Tianjin Runhua RW Refers to Runhua Rural Water (Tianjin) International Trade Co., Ltd.
Material Assets Restructuring, the The Company acquires 30 percent equity of the Runhua Rural Water
Refers to
Restructuring (Tianjin) International Trade Co., Ltd. in cash
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承德南江股份有限公司 2014 年半年度报告全文
Section II Company profile
I. Company information
Short form for share Nanjiang-B Stock code 200160
Listing stock exchange 深圳证券交易所
Chinese name of the Company 承德南江股份有限公司
Abbr. of Chinese name of the
Nanjiang-B
Company(if applicable)
English name of the
CHENGDE NANJIANG CO.,LTD
Company(if applicable)
Abbr. of English name of the
NANJIANG-B
Company(if applicable)
Legal Representative Li Weimin
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Li Wenying
XiaBanCheng Town, Chengde County,
Contact add.
Hebei Province
Tel. 0314-3115048
Fax. 0314-3111475
E-mail liwy@cdnanjiang.com
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or
not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period,
found more details in Annual Report 2013.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
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承德南江股份有限公司 2014 年半年度报告全文
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation
place for semi-annual report have no change in reporting period, found more details in Annual Report 2013.
3. Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable √ Not applicable
Date/place for registration of the Company, registration number for enterprise legal license, number of taxation registration and
organization code have no change in reporting period, found more details in Annual Report 2013.
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承德南江股份有限公司 2014 年半年度报告全文
Section III. Accounting data and summary of financial indexes
I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not
□Yes √No
Increase/decrease in this
Current period Same period of last year
report y-o-y
Operating revenue (RMB) 216,832,416.09 16,818,678.04 1,189.24%
Net profit attributable to shareholders of
19,331,150.10 86,021,262.29 -77.53%
the listed company(RMB)
Net profit attributable to shareholders of
the listed company after deducting -11,202,241.58 -7,930,312.87 -41.26%
non-recurring gains and losses(RMB)
Net cash flow arising from operating
-39,839,229.21 -162,574,578.72 75.49%
activities(RMB)
Basic earnings per share (RMB/Share) 0.03 0.12 -75.00%
Diluted earnings per share (RMB/Share) 0.03 0.12 -75.00%
Weighted average ROE (%) 8.81% 54.48% -45.67%
Increase/decrease in this
End of current period End of last period report-end over that of last
period-end
Total assets (RMB) 481,392,711.34 380,763,274.72 26.43%
Net assets attributable to shareholder of
229,032,632.87 209,701,482.77 9.22%
listed company(RMB)
II. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
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承德南江股份有限公司 2014 年半年度报告全文
The Company has no difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) in reporting period
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company has no difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and
Chinese GAAP (Generally Accepted Accounting Principles) in reporting period
III. Items and amounts of extraordinary profit (gains)/loss
√Applicable □Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the
34,647,779.07 --
write-off that accrued for impairment of assets)
Other non-operating income and expenditure except for the
-4,114,387.39 --
aforementioned items
Total 30,533,391.68 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss
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承德南江股份有限公司 2014 年半年度报告全文
Section IV. Report of the Board of Directors
I. Introduction
During the reporting period, the Company has continued to enhance the management level, constantly improve the governance
structure, and actively promote the main business in accordance with the stated objectives so that the company has maintained the
steady development. In the real-estate field, the company has spent a huge sum of money to build Nanjiang Huijing Tiandi in the
prime location of the county, and market response is good and the project goes well; in the ecological agriculture field, the
companys production and management is stable, and the product supply and marketing is normal; in the field of new materials, the
preparation work for "the functional coating of current collectors based on graphene applications" project is progressing smoothly.
During the reporting period, the Company achieved main operating income of 216,832,400 Yuan, representing year-on-year growth
of 1,189.24%, including net profit attributable to parent company 19,331,200 Yuan, down 77.53% over the previous year. By the end
of the reporting period, total assets reached 481,392,700 Yuan, including net assets 229,032,600 Yuan.
II. Main business analysis
Y-o-y changes of main financial data
In RMB
Y-o-y
Same period of
Current period increase/decreas Reasons for changes
last year
e
Runhua RW included in consolidation
Operation revenue 216,832,416.09 16,818,678.04 1,189.24%
range in the Period
Runhua RW included in consolidation
Operation cost 218,143,237.30 12,003,739.65 1,717.29%
range in the Period
Runhua RW included in consolidation
Sales expenses 1,746,266.78 -- --
range in the Period
Runhua RW included in consolidation
Administrative expenses 10,192,427.86 7,999,177.06 27.42%
range in the Period
Expense of loan interest decreased in
Financial cost -32,775.12 428,022.67 -107.66%
Period.
The taxable income decreased in the
Income tax expense -23,637.85 4,944,803.47 -100.48% Period and make up the annual losses of
previous years
Net cash flow arising from Housing money received in advance
-39,839,229.21 -162,574,578.72 75.49%
operation activities increased in Period.
Net cash flow arising from Land assets recovered by the
28,646,487.02 195,376,676.06 -85.34%
investment activities Government decreased in Period.
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承德南江股份有限公司 2014 年半年度报告全文
Net cash flow arising from
2,548,500.00 -30,300,000.00 108.41% Repayment of loans decreased in Period.
financing activities
Net increase of cash and cash
-8,644,242.19 2,502,097.34 -445.48% Inventory increased in Period.
equivalent
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period
The future development and planning extended to reporting period that published in disclosure documents as prospectus, private
placing memorandum and recapitalize statement
□ Applicable √ Not applicable
No future development and planning extended to reporting period that published in disclosure documents as prospectus, private
placing memorandum and recapitalize statement
Review on the previous business plan and its progress during reporting period
Nil
III. Composition of main business
In RMB
Increase or Increase or Increase or
decrease of decrease of decrease of gross
Operating
Operating cost Gross profit ratio operating revenue operating cost profit ratio over
revenue
over same period over same period same period of
of last year of last year last year
According to industries
Agriculture 2,094,025.07 3,148,746.79 -50.37% -- -- --
Business 213,935,345.40 214,526,444.89 -0.28% -- -- --
According to products
Agricultural
2,094,025.07 3,148,746.79 -50.37% -- -- --
products
Chemical
213,935,345.40 214,526,444.89 -0.28% -- -- --
materials
According to region
Chengde 2,094,025.07 3,148,746.79 -50.37% -- -- --
Tianjin 213,935,345.40 214,526,444.89 -0.28% -- -- --
IV. Core competitive-ness analysis
Core competitive-ness of the Company has no major changes in the Period.
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承德南江股份有限公司 2014 年半年度报告全文
V. Investment analysis
1. Equity investment outside
(1) Investment outside
□ Applicable √ Not applicable
The Company has no investment outside in the Period
(2) Holding equity of financial enterprise
□ Applicable √ Not applicable
The Company has no equity of financial enterprise held in the Period
(3) Securities investment
□ Applicable √ Not applicable
The Company has no securities investment in the Period
2. Trust financing, investment of derivatives and entrustment loan
(1) Trust financing
□ Applicable √ Not applicable
The Company has no trust financing in the Period
(2) Investment of derivatives
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period
(3) Entrustment loan
□ Applicable √ Not applicable
The Company has no entrustment loan in the Period
3. Main subsidiaries and joint-stock companies analysis
√ Applicable □ Not applicable
Main subsidiaries and joint-stock companies
In RMB
Company Industr Main products or Register Operating Operating
Type Total assets Net Assets Net profit
name ies service capital revenue profit
Chengde
Nanjiang Real Subsid Real Development and 270,401,40 199,780,49 -5,571,57
10,000,000 335,000.00 -5,549,293.57
Estate iary Estate sales of real estate 0.33 1.43 1.42
Development
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承德南江股份有限公司 2014 年半年度报告全文
Co., Ltd.
Industrial investment,
Chengde investment
Nanjiang Subsid Invest management, 99,921,454. 89,783,677. -62,370.3
90,000,000 -- -62,370.33
Investment iary ment investment consulting 03 33 3
Co., Ltd. and import & export
trading
Cultivation and sales
Chengde of field crop, edible
Nanjiang mushrooms, fruit and
Subsid Agricu 18,612,054. 6,280,753.1 2,348,768.4 -2,306,74
Ecological vegetables as well as 10,000,000 -2,196,501.52
iary lture 36 1 3 4.15
Agriculture Chinese Herbs;
Co., Ltd. breeding and sales of
livestock
R&D, manufacture
and sales of
grapheme, grapheme
application materials,
power cell & battery
New
materials,
Chengde energy
high-performance
Morsh Subsid and 51,289,366. 49,749,056. -38,470.1
membrane material 50,000,000 -- -38,470.10
Technology iary new 71 71 0
and nano materials as
Co., Ltd. materi
well as the
als
technology
promotion and
technical service for
the above said
products.
Import trade,
Runhua Rural
domestic agents and
Water Joint
distribution of the
(Tianjin) stock Tradin 93,038,449. 28,889,872. 213,935,34 -3,002,34
plastic raw materials 30,000,000 -3,001,617.63
International compa g 11 63 5.40 7.61
of polyethylene (PE)
Trade Co., ny
and polypropylene
Ltd.
(PP)
Chengde Proper
Huijing ty
Subsid Property management
Property manag 500,000 498,935.22 498,935.22 -- 843.56 843.56
iary service
Service Co., ement
Ltd. service
Nanjiang Asia Subsid Trade International US$ 20 5,000,009.9 5,000,009.9 -- -156.74 -156.74
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承德南江股份有限公司 2014 年半年度报告全文
Investment iary investment and million 0 0
Co., Ltd. trading, sales and
lease of the ship
4. The significant progress of non-raised proceeds investment
√Applicable □Not applicable
In ten thousand Yuan
Accumulation of
Investment amount
Total investment actual investment Progress of the Earnings of the
Name of the project in the reporting
amount planned amount ended of the project project
period
reporting period-end
Nanjiang Huijing
57,000 7,594 23,754 -- --
Tiandi
Total 57,000 7,594 23,754 -- --
VI. Prediction of business performance from January – September 2014
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 √ Not applicable
VII. Explanation from the Board and Supervisory Committee for “Qualified Opinion” from
the CPA of this year’s
□ Applicable √ Not applicable
VIII. Explanation on “Qualified Opinion” of previous year from the Board
□ Applicable √ Not applicable
IX. Implementation of profit distribution in reporting period
Implementation or adjustment of profit distribution plan in reporting period, cash dividend plan and shares converted from capital
reserve in particular
□ Applicable √ Not applicable
Previous years profit distribution plan was no profit distribution and shares converted from capital reserve either
X. Profit distribution and capitalization of capital reserves in the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for
the semi-annual year
13
承德南江股份有限公司 2014 年半年度报告全文
XI. In the report period, reception of research, communication and interview
√Applicable □Not applicable
Contents discussed and
Time Place Way Type Reception
material provided
Foreign investment and
Security Telephone
2014-01-09 Individual Investor progress of the Company,
Department communication
no materials required
Routine operation status of
Security Telephone
2014-01-24 Individual Investor the Company, no materials
Department communication
required
Current condition of the
Security Telephone
2014-03-10 Individual Investor Company, no materials
Department communication
required
Operation performance of
Security Telephone
2014-03-25 Individual Investor the Company, no materials
Department communication
required
Operation performance of
Security Telephone
2014-04-16 Individual Investor the Company, no materials
Department communication
required
Current condition of the
Security Telephone
2014-05-22 Individual Investor Company, no materials
Department communication
required
Foreign investment of the
Security Telephone
2014-06-12 Individual Investor Company, no materials
Department communication
required
14
承德南江股份有限公司 2014 年半年度报告全文
Section V. Important Events
I. Corporate governance
During the reporting period, the Company constantly improves the corporate governance structure, regulates the operations strictly in
accordance with the "Company Law", "Securities Law", "Listing Corporation Management Standards" and other laws, regulations
and relevant provisions of the securities regulatory authorities.
During the reporting period, the preparations, organization and resolution disclosure for the general meeting of shareholders, board of
directors and board of supervisors were all conducted according to the "Articles of Association" and “Assembly Rules of
Shareholders of General Meeting ", " Assembly Rules of Board of Directors and "Assembly Rules of Board of Supervisors". All the
directors, supervisors, and senior management personnel can perform their duties with honesty, diligence. All these comply with
requirements of normative documents for the listing Corporation governance issued by China Securities Regulatory Commission.
II. Significant lawsuits and arbitrations of the Company
□Applicable √Not applicable
The Company has no significant lawsuits and arbitrations in Period
III. Questioned from media
□ Applicable √ Not applicable
No common media questioned for the Company in reporting period
IV. Bankruptcy reorganization
□ Applicable √ Not applicable
In reporting period, the Company has no bankruptcy reorganization occurred.
V. Assets trading
1. Acquisition of assets
√Applicable □Not applicable
Impact The
on Ratio of net Rela related
The other
Purchase gains/los profit ted relationshi Date of
party of Assets Progress Impact on
price(10 ses of contributed to trans p(applicab disclosur Index of
transaction purchase (Note 2) operation of the
thousand the listed actio le for e disclosure
or final d Company (Note 3)
Yuan) Compan company in n or related (Note5)
controller
y (Note total net profit not transactio
4) n)
Chengde The The lands will Hong Kong
Not 2014-04
bureau of Land 648 property constructed for the -- -- No Commercial
applicable -09
Land&Res rights with production and Daily,
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承德南江股份有限公司 2014 年半年度报告全文
ources assets operation sits for Securities
involved Morsh Times and
have not Technology, and Juchao
transferred shows an active Website:
totally impact on http://www.c
operation of the ninfo.com.cn
Company
2. Sales of assets
□ Applicable √ Not applicable
The Company did not sell assets in the Period
3. Business combination
□ Applicable √ Not applicable
The Company has no business combined in the Period
VI. Implementation of the Company’s equity incentive and the effects
□ Applicable √ Not applicable
No equity incentive in reporting period
VII. Significant related transaction
1. Related transaction connected to routine operations
√Applicable □Not applicable
Related Proportio
Related Similar
Related transactio n in the
Related Related Related Related transactio trading
transactio Pricing n amount amount of Date of Index of
transactio relationsh transactio transactio n market
n principal (in 10 the same disclosure disclosure
n parties ip n content n price settlement price
type thousand transactio
mode available
Yuan) n
Child Hong
company Kong
Counterp
of the Commerc
arty is the Agreed in
Beijing Company, ial Daily,
related line with
Xiangeqi Sales of Eco-agric Market 2013-11- Securities
legal -- 81.23 32.47% the 81.23
ng Co., goods ulture price 09 Times
person of agreemen
Ltd. provided and
the t
agricultur Juchao
Company
e Website:
products http://ww
16
承德南江股份有限公司 2014 年半年度报告全文
to Beijing w.cninfo.
Xiangeqi com.cn
ng for a
long-term
Total -- -- 81.23 -- -- -- -- --
Detail of sales return with major amount
N/A
involved
Report the actual implementation of the
normal related transactions which were
N/A
projected about their total amount by types
during the reporting period(if applicable)
Reasons for major differences between
trading price and market reference price(if Not applicable
applicable)
2. Related transaction incurred by purchase or sales of assets
□ Applicable √ Not applicable
No related transaction incurred by purchase or sales of assets in Period
3. Related transaction from jointly investment outside
□ Applicable √ Not applicable
No related transaction from jointly investment outside occurred in Period
4. Credits and liability of related party
□ Applicable √ Not applicable
No credits or liability of related party occurred in Period
5. Other significant related transactions
□ Applicable √ Not applicable
The Company had no other significant related transactions in the reporting period
VIII. Non-business capital occupying by controlling shareholders and its related parties
□ Applicable √ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period
IX. Major contract and implantation
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
The Company had no trusteeship in the reporting period.
17
承德南江股份有限公司 2014 年半年度报告全文
(2) Contract
□ Applicable √ Not applicable
The Company had no contract in the reporting period.
(3) Leasing
□ Applicable √ Not applicable
The Company had no leasing in the reporting period.
2. Guarantee
□ Applicable √ Not applicable
The Company had no guarantee in the reporting period.
(1) Guarantee outside against the regulation
□ Applicable √ Not applicable
No guarantee outside against the regulation in Period
3. Other material contracts
□ Applicable √ Not applicable
The Company had no other material contracts in the reporting period.
4. Other material transactions
□ Applicable √ Not applicable
The Company had no other material transactions in the reporting period.
X. Commitments made by the Company or shareholders holding above 5% shares of the
Company in reporting period or occurred in the previous reporting period but continued to
reporting period
√Applicable □Not applicable
Commitmen Promise Commitm Commitm Implementa
Content of commitments
ts e ent date ent term tion
1. Commitments in aspect of independency of listed company:
For the equity changes, that is 208,324,800 shares of Chengde Dalu
Commitmen Co., Ltd held by Chen Rong was transfer, Wang Dong guarantee there
ts in report Controlli are no influence on the independent of employee, financial, institution,
Duration
of ng business and integrity of assets of Chengde Dalu Co., Ltd. After 2012-04-2 Implementi
of the
acquisition sharehol transaction, Chengde Dalu Co., Ltd still has the ability of independent 4 ng
Company
or equity der operation and owes independent legal person, and continues to owes
change the independency of institution, assts, employees, production and
financial. 2. Commitments for horizontal competition: after
208,324,800 shares of Chengde Dalu Co., Ltd held by Chen Rong was
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承德南江股份有限公司 2014 年半年度报告全文
transfer, Wang Dong guarantee there are no or potential horizontal
competition between the Chengde Dalu Co., Ltd and Wang Dong and
related parties of Wang Dong
The performance compensation commitment: net profit (deducting
non-recurring gains and losses) for 2012, 2013, 2014 and 2015 for
Commitmen Controlli
Runhua RW (Tianjin) International Trade Co., Ltd. Respectively cant Implementi
ts in assets ng 2013-04-1
be less than 306,300 Yuan, 904,000 Yuan, 1,500,000 Yuan and 2012-2015 ng
reorganizati sharehol 0
3,400,000 yean. If the actual net profit is less than the promised, the normally
on der
controlling shareholders shall perform the obligations of profit
compensation accordingly.
In order to prevent stock price from falling after its relisting and
Other endanger status of the Company, the board of directors and the senior
Director
commitment management make commitment: Based on Listing Rules of Shenzhen
s and
s for Stock Exchange and other applicable laws and regulations, we make a 2013-01-0 In later 12 Implemente
senior
medium and plan in next 12 months, increasingly hold shares of the Company in 9 months d
executiv
small secondary market using own funds. The holding price will not exceed
es
shareholders HK$1.3 / shares. While the total amount of increase accumulated will
not be less than HK$10 million not more than HK$40 million
Completed
on Y
time(Y/N)
Detail
reasons for
un-complem
ent and N/A
further plan
(if
applicable)
XI. Engagement and non-reappointment of CPA
Whether the semi-annual report was audited or not
□ Yes √ No
VIII. Penalty and rectification
√Applicable □Not applicable
Type of Conclusion
Disclosure
Name Type Reasons investigation and (if Index of disclosure
date
penalty applicable)
Violation of Initiated an
Hong Kong Commercial Daily,
Chengde Dalu securities laws investigation or
Other N/A 2013-05-15 Securities Times, Juchao Website
Co., Ltd. and administrative
http://www.cninfo.com.cn
regulations penalties by CSRC
19
承德南江股份有限公司 2014 年半年度报告全文
Particular about directors, supervisors, senior executives and shareholders with over 5% shares held suspected illegal dealings of the
stock of the Company and earnings of illegal dealings taken back by the Company that disclosed
□ Applicable √ Not applicable
The Company had no particular about directors, supervisors, senior executives or shareholders with over 5% shares held suspected
illegal dealings of the stock of the Company and earnings of illegal dealings taken back by the Company that disclosed in Period.
XIII. Risk disclosure of delisting with laws and rules violated
□ Applicable √ Not applicable
The Company has no delisting risks with laws and rules violated in Period
XIV. Explanation on other significant events
√Applicable □Not applicable
th
1. On 14 May 2013, because Chengde Dalu Co., Ltd. violated the related provisions of the securities laws and
regulations, the Company received a notification of investigation (No. 2013 investigation notice Zi No.16) issued
by the China Securities Regulatory Commission, who decided to register and investigate the company according to
the relevant provisions of "The Securities Law of the People's Republic of China ".
This investigation does not involve the companys current production and operating activities, and the company is
operating normally. During the investigation, the company will actively cooperate with the investigation of the
China Securities Regulatory Commission, and timely fulfill the obligation of information disclosure.
20
承德南江股份有限公司 2014 年半年度报告全文
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
In Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
New Capitalization
Bonus Subt
Amount Proportion shares of public Others Amount Proportion
shares otal
issued reserve
I. Unlisted shares 244,800,000 34.66% -- -- -- -- -- 244,800,000 34.66%
1. Sponsors shares 244,800,000 34.66% -- -- -- -- -- 244,800,000 34.66%
Domestic legal
23,147,309 3.28% -- -- -- -- -- 23,147,309 3.28%
persons shares
Other 221,652,691 31.38% -- -- -- -- -- 221,652,691 31.38%
II. Listed shares 461,520,000 65.34% -- -- -- -- -- 461,520,000 65.34%
2. Domestically listed foreign
461,520,000 65.34% -- -- -- -- -- 461,520,000 65.34%
shares
III. Total shares 706,320,000 100.00% -- -- -- -- -- 706,320,000 100.00%
Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
Explanation on changes in aspect of total shares, shareholders structures as well as structure of assets and liability of the Company
□ Applicable √ Not applicable
II. Number of shares and shares held
In Share
Total preference shareholders
Total common shareholders at with voting rights recovered at
18,735 0
period-end end of reporting period (if
applicable) (see Note 8)
Particulars about shares held above 5% by shareholders and top 10 shareholders
Full name of Nature of Proporti Total Changes in Amount of Amount of listed Number of share
21
承德南江股份有限公司 2014 年半年度报告全文
Shareholders shareholder on of shareholders report period un-listed shares shares held pledged/frozen
shares
held at the end held
State of Amoun
of report
share t
period
Domestic
Wang Dong 29.49% 208,324,800 0 208,324,800 0 -- --
nature person
GUOTAI JUNAN
Overseas legal
SECURITIES(HON 13.72% 96,937,736 1,514,214 0 96,937,736 -- --
person
GKONG) LIMITED
Everbright
Overseas legal
Securities (H.K.) 6.35% 44,866,976 6,897,289 0 44,866,976 -- --
person
Co., Ltd.
Shanghai Wanguo Overseas legal
2.62% 18,532,274 1,671,550 0 18,532,274
(H.K) Securities person
Domestic
Chengde North
non-state
Industrial 2.62% 18,517,651 0 18,517,651 0 -- --
owned legal
Corporation
person
Domestic
Wang Zhengsong 1.89% 13,327,891 0 13,327,891 0 -- --
nature person
Domestic
Wang Wensheng 1.03% 7,258,007 0 0 7,258,007 -- --
nature person
Domestic
Zhou Haihong 0.95% 6,708,495 0 0 6,708,495 -- --
nature person
Domestic
Yu Sanxi 0.83% 5,888,900 0 0 5,888,900 -- --
nature person
Domestic
Li Tianyun 0.73% 5,158,000 0 0 5,158,000 -- --
nature person
Strategy investors or general legal
person becomes top 10 shareholders
N/A
due to rights issued (if applicable)
(see note 3)
Explanation on associated The Company is unknown whether there exists associated relationship or belongs to
relationship among the aforesaid consistent actor regulated by “management method for acquisition of listed company” among
shareholders the above said shareholders.
Particular about top ten circulated shareholders
Type of shares
Shareholders name Amount of listed shares held at period-end
Type Amount
Domestically
GUOTAI JUNAN 96,937,736 96,937,736
listed foreign
22
承德南江股份有限公司 2014 年半年度报告全文
SECURITIES(HONGKONG) LIMITED shares
Domestically
Everbright Securities (H.K.) Co., Ltd. 44,866,976 listed foreign 44,866,976
shares
Domestically
Shanghai Wanguo (H.K) Securities 18,532,274 listed foreign 18,532,274
shares
Domestically
Wang Wensheng 7,258,007 listed foreign 7,258,007
shares
Domestically
Zhou Haihong 6,708,495 listed foreign 6,708,495
shares
Domestically
Yu Sanxi 5,888,900 listed foreign 5,888,900
shares
Domestically
Li Tianyun 5,158,000 listed foreign 5,158,000
shares
Domestically
Zhao Ziying 3,016,916 listed foreign 3,016,916
shares
Domestically
Peng Wei 2,978,525 listed foreign 2,978,525
shares
Domestically
VANGUARD TOTAL INTERNATIONAL
2,677,475 listed foreign 2,677,475
STOCK INDEX FUND
shares
Expiation on associated relationship or
The Company is unknown whether there exists associated relationship or belongs to
consistent actors within the top 10 un-restrict
consistent actor regulated by “management method for acquisition of listed
shareholders and between top 10 un-restrict
company” among the above said shareholders.
shareholders and top 10 shareholders
Explanation on shareholders involving margin
N/A
business (if applicable) (see note 4)
Whether has a buy-back agreement dealing in reporting period
□Yes √No
The shareholders o f the Company had no buy-back agreement dealing in reporting period.
III. Changes of controlling shareholders or actual controller
Changes of controlling shareholders in reporting period
23
承德南江股份有限公司 2014 年半年度报告全文
□ Applicable √ Not applicable
Changes of controlling shareholders had no change in reporting period.
Changes of actual controller in reporting period
□ Applicable √ Not applicable
Changes of actual controller in reporting period had no change in reporting period.
IV. Share holding increasing plan proposed or implemented in reporting period from
shareholder of the Company and its concerted action person
□ Applicable √Not applicable
As far as the Company know, there are no share holding increasing plan proposed or implemented in Period from shareholder of the
Company and its concerted action person
24
承德南江股份有限公司 2014 年半年度报告全文
Section VII. Preferred Stock
I. Issuance and listing of preferred stock in Period
□ Applicable √ Not applicable
II. Number of shareholders with preferred stock held and shareholdings
□ Applicable √ Not applicable
III. Repurchase and conversion of preferred stock
1. Preferred stock repurchased
□ Applicable √ Not applicable
2. Preferred stock converted
□ Applicable √ Not applicable
IV. Preferred stock with voting rights recovered and executed
□ Applicable √ Not applicable
V. Accounting policy taken for preferred stock and reasons
□ Applicable √ Not applicable
25
承德南江股份有限公司 2014 年半年度报告全文
Section VIII. Directors, Supervisors and Senior Executives
I. Changes of shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
Shares held by directors, supervisors and senior executives have no changes in reporting period, found more details in Annual Report
2013.
IV. Changes of directors, supervisors and senior executives
√Applicable □Not applicable
Name Title Type Date Reasons
Secretary of the
Li Weimin Leave office 2014-07-03 Post adjustment
Board
Secretary of the
Li Wenying Appointment 2014-07-04 Appointment as secretary of the Board
Board
26
承德南江股份有限公司 2014 年半年度报告全文
Section IX. Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was unaudited
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated balance sheet
Prepared by Chengde Nanjiang Co., Ltd.
In RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 78,234,149.03 89,426,891.22
Settlement funds -- --
Lending funds -- --
Tradable financial assets -- --
Notes receivable -- --
Accounts receivable 3,848,325.20 117,180.60
Prepayments 67,621,592.68 33,836,310.22
Premium receivable -- --
Reinsurance accounts receivable -- --
Reinsurance contract reserve
-- --
receivable
Interest receivable -- --
Dividend receivable -- --
Other account receivable 13,297,141.73 4,976,108.67
Buying back the sale of financial
-- ---
assets
Inventory 258,149,828.81 190,569,964.32
Non-current assets due within one
-- --
year
27
承德南江股份有限公司 2014 年半年度报告全文
Other current assets 7,037,093.63 4,478,158.24
Total current assets 428,188,131.08 323,404,613.27
Non-current assets:
Issuance of loans and advances -- --
Financial assets available for Sale -- --
Held-to-maturity investment -- --
Long-term receivables -- --
Long term equity investment 6,577,302.37 6,626,905.49
Investment real estate -- --
Fixed asset 10,771,989.42 11,296,353.61
Project in progress -- --
Project materials -- --
Liquidation of fixed asset -- --
Productive biological asset 705,116.63 258,190.34
Oil and gas asset -- --
Intangible asset 22,641,388.24 28,721,653.41
Development expenditure -- --
Goodwill 1,809,762.89 1,809,762.89
Long-term deferred expenditure 9,864,797.52 7,811,572.52
Deferred income tax asset 834,239.22 834,223.19
Other non-current asset -- --
Total non-current asset 53,204,580.26 57,358,661.45
Total Assets 481,392,711.34 380,763,274.72
Current Liabilities:
Short-term borrowing -- --
Borrowing from the central bank -- --
Deposits and interbank deposit -- --
Borrowed capital -- --
Transaction financial liabilities -- --
Notes payable 19,500,000.00 26,000,000.00
Accounts payable 7,488,618.46 3,660,631.16
Account received in advance 153,840,376.73 53,821,113.16
Financial assets sold for
-- --
repurchase
28
承德南江股份有限公司 2014 年半年度报告全文
Fees and commissions payable -- --
Salary payable 6,364,571.82 6,205,363.50
Taxes payable 9,344,881.67 18,026,904.58
Interest payable -- --
Dividend payable -- --
Other payables 30,623,813.29 36,044,983.70
Reinsurance payables -- --
Reserves for insurance contracts -- --
Agency securities trading -- --
Agency securities underwriting -- --
Non-current liabilities due within
-- --
one year
Other current liabilities -- --
Total current liabilities 227,162,261.97 143,758,996.10
Non-current liabilities
Long-term loans -- --
Bonds payable -- --
Long-term payables -- --
Special payables -- --
Accrued liabilities -- --
Deferred income tax liability -- --
Other non-current liability -- --
Total non-current liability -- --
Total liability 227,162,261.97 143,758,996.10
Owners equity (or Shareholders
equity):
Paid-in capital(share capital) 706,320,000.00 706,320,000.00
Capital surplus 456,470,250.78 456,470,250.78
Less: treasury stock -- --
Special reserve -- --
Surplus reserve 76,791,550.17 76,791,550.17
Reserve for general risks -- --
Retained profit -1,010,549,168.08 -1,029,880,318.18
Converted difference in foreign
--
currency Statements
29
承德南江股份有限公司 2014 年半年度报告全文
Total owners equity attributable to
229,032,632.87 209,701,482.77
parent company
Interest of minority shareholders 25,197,816.50 27,302,795.85
Total owners equity (or shareholders
254,230,449.37 237,004,278.62
equity)
Total liabilities and owners equity (or
481,392,711.34 380,763,274.72
shareholders equity)
Legal Representative: Li Weimin Person in Charge of Accounting: Zhao Yongsheng
Person in Charge of Accounting Department: Liu Fengguo
2. Balance Sheet of Parent Company
Prepared by: Chengde Nanjiang Co., Ltd.
In RMB
Item Closing balance Opening balance
Current assets:
Monetary fund 27,673,033.46 5,681,141.82
Tradable financial assets -- --
Notes receivable -- --
Accounts receivable 120,000.00 --
Prepayments 44,400,000.00 25,000,000.00
Interest receivable -- --
Dividend receivable -- --
Other account receivable 21,708,832.37 316,143.39
Inventory 237,545,564.50 161,600,661.40
Non-current assets due within one
-- --
year
Other current assets 4,550,133.82 --
Total current assets 335,997,564.15 192,597,946.61
Non-current assets:
Financial assets available for Sale -- --
Held-to-maturity investment -- --
Long-term receivables -- --
Long term equity investment 157,284,836.37 152,284,669.73
Investment real estate -- --
Fixed assets 1,283,117.24 1,314,384.81
30
承德南江股份有限公司 2014 年半年度报告全文
Project in progress -- --
Project materials -- --
Liquidation of fixed assets -- --
Productive biological asset -- --
Oil and gas asset -- --
Intangible assets 9,789,786.13 15,699,628.36
Development expenditure -- --
Goodwill -- --
Long-term deferred expenditure -- --
Deferred income tax asset 750.00 750.00
Other non-current assets -- --
Total non-current assets 168,358,489.74 169,299,432.90
Total assets 504,356,053.89 361,897,379.51
Current liabilities:
Short-term borrowing --
Transaction financial liabilities --
Notes payable --
Accounts payable 2,808,808.80 --
Account received in advance 131,928,060.17 40,423,500.00
Salary payable 258,190.22 --
Taxes payable -341,032.61 -58,959.68
Interest payable -- --
Dividend payable -- --
Others payables 319,016,458.33 299,169,464.74
Non-current liabilities due within
-- --
one year
Other current liabilities -- --
Total current liabilities 453,670,484.91 339,534,005.06
Non- current liabilities:
Long-term loans -- --
Bonds payable -- --
Long-term payables -- --
Special payables -- --
Accrued liabilities -- --
31
承德南江股份有限公司 2014 年半年度报告全文
Deferred income tax liability -- --
Other non-current liability -- --
Total non-current liability -- --
Total liabilities 453,670,484.91 339,534,005.06
Owners equity (or Shareholders
equity):
Paid-in capital(share capital) 706,320,000.00 706,320,000.00
Capital surplus 449,365,886.69 449,365,886.69
Less: treasury stock -- --
Special reserve -- --
Surplus reserve 76,791,550.17 76,791,550.17
Reserve for general risks -- --
Retained profit -1,181,791,867.88 -1,210,114,062.41
Converted difference in foreign
-- --
currency
Total owners equity (or shareholders
50,685,568.98 22,363,374.45
equity)
Total liabilities and owners equity (or
504,356,053.89 361,897,379.51
shareholders equity)
Legal Representative: Li Weimin Person in Charge of Accounting: Zhao Yongsheng
Person in Charge of Accounting Department: Liu Fengguo
3. Consolidated Income Statements
Prepared by: Chengde Nanjiang Co., Ltd.
In RMB
Item Current Amount Amount of the Previous Period
I. Total operation revenue 216,832,416.09 16,818,678.04
Including: Operating revenue 216,832,416.09 16,818,678.04
Interest income --
Earned premium --
Fee and commission
--
income
II Total Operating cost 230,284,671.75 19,894,604.22
Including: Operating costs 218,143,237.30 12,003,739.65
Interest costs --
32
承德南江股份有限公司 2014 年半年度报告全文
Fee and commission costs --
Cash surrender --
Net compensation expenses --
Net extraction reserves for
--
insurance contracts
Policy dividend payout --
Reinsurance expense --
Business tax and surcharge 235,514.93 911,510.90
Sales expenses 1,746,266.78 --
Administrative expenses 10,192,427.86 7,999,177.06
Financial expenses -32,775.12 428,022.67
Asset impairment losses -1,447,846.06
Add: gains from changes of
--
fair value (Loss is listed with “-”)
Investment gain (Loss is
121,396.88 77,868.49
listed with “-”)
Including: Investment gains
--
on affiliated Company and joint venture
Exchange gains (Loss is
--
listed with “-”)
III. Operating profits (Loss is listed
-13,330,858.78 -2,998,057.69
with “-”)
Add: Non-operating income 34,837,468.38 94,235,507.01
Less: Non-operating expenditure 4,304,076.70 283,931.85
Including: Disposal loss on
--
non-current liability
IV Total profits (Total loss is listed with
17,202,532.90 90,953,517.47
“-”)
Less: Income tax expenses -23,637.85 4,944,803.47
V. Net profit (Net loss is listed with “-”) 17,226,170.75 86,008,714.00
Including: Net profit generated by
--
combined party before merged
Net profit attribute to owners of
19,331,150.10 86,021,262.29
parent company
Minority interest -2,104,979.35 -12,548.29
VI. Earnings per share(EPS) -- --
33
承德南江股份有限公司 2014 年半年度报告全文
(i) Basic Earnings per share(EPS) 0.03 0.12
(ii) Diluted Earnings per
0.03 0.12
share(EPS)
VII. Other consolidated income --
VIII. Total consolidated income 17,226,170.75 86,008,714.00
Total consolidated income
attributable to owners of parent 19,331,150.10 86,021,262.29
company
Total consolidated income
-2,104,979.35 -12,548.29
attributable to minority shareholders
Legal Representative: Li Weimin Person in Charge of Accounting: Zhao Yongsheng
Person in Charge of Accounting Department: Liu Fengguo
4. Profit Statement of parent company
Prepared by: Chengde Nanjiang Co., Ltd.
In RMB
Items Current Amount Amount of the Previous Period
I. Operation revenue 4,068,045.62 20,183.93
Less: Operating costs 468,045.62 16,666.64
Business tax and surcharge 198,000.00 --
Sales expenses 279,848.00 --
Administrative expenses 4,879,036.88 3,727,090.00
Financial expenses 344,699.66 -300.80
Asset impairment losses -- --
Add: gains from changes of fair
-- --
value(Loss is listed with “-”)
Investment gain(Loss is listed
-- --
with “-”)
Including: Investment gains
-- --
on affiliated Company and joint venture
III. Operating profits (Loss is listed
-2,101,584.54 -3,723,271.91
with “-”)
Add: Non-operating income 34,647,779.07 13,990.00
Less: Non-operating expenditure 4,224,000.00 5,000.00
Including: Disposal loss on
-- --
non-current liability
III. Total profit (Loss is listed with “-”) 28,322,194.53 -3,714,281.91
34
承德南江股份有限公司 2014 年半年度报告全文
Less: Income tax expenses -- --
IV. Net profit (net loss is listed with “-”) 28,322,194.53 -3,714,281.91
V. Earnings per share(EPS): -- --
(i) Basic Earnings per share(EPS) -- --
(ii) Diluted Earnings per
-- --
share(EPS)
VI. Other consolidated income -- --
VII. Total consolidated income 28,322,194.53 -3,714,281.91
Legal Representative: Li Weimin Person in Charge of Accounting: Zhao Yongsheng
Person in Charge of Accounting Department: Liu Fengguo
5. Consolidated Cash Flow Statement
Prepared by: Chengde Nanjiang Co., Ltd.
In RMB
Items Current Amount Amount of the Previous Period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 301,623,200.23 19,460,726.98
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 -- --
35
承德南江股份有限公司 2014 年半年度报告全文
capital
Write-back of tax received 151,568.94 --
Other cash received concerning
52,632,278.66 34,121,294.98
operating activities
Subtotal of cash inflow arising from
354,407,047.83 53,582,021.96
operating activities
Cash paid for purchasing
commodities and receiving labor 363,427,051.94 171,080,376.89
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 workers 3,669,467.29 1,935,408.16
Taxes paid 14,510,446.47 11,507,173.62
Other cash paid concerning
12,639,311.34 31,633,642.01
operating activities
Subtotal of cash outflow arising from
394,246,277.04 216,156,600.68
operating activities
Net cash flows arising from operating
-39,839,229.21 -162,574,578.72
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
9,000,000.00
investment
Cash received from investment
171,000.00 77,868.49
income
Net cash received from disposal of
fixed, intangible and other long-term 30,125,895.00 131,328,521.00
assets
Net cash received from disposal of
-- --
subsidiaries and other units
36
承德南江股份有限公司 2014 年半年度报告全文
Other cash received concerning
57,483,537.07
investing activities
Subtotal of cash inflow from investing
30,296,895.00 197,889,926.56
activities
Cash paid for purchasing fixed,
1,650,407.98 2,513,250.50
intangible and other long-term assets
Cash paid for investment -- --
Net increase of mortgaged loans -- --
Net cash paid for obtaining
-- --
subsidiaries and other units
Other cash paid concerning
-- --
investing activities
Subtotal of cash outflow from investing
1,650,407.98 2,513,250.50
activities
Net cash flows arising from investing
28,646,487.02 195,376,676.06
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
-- 5,000,000.00
investment
Including: Cash received from
absorbing minority shareholders -- --
investment by subsidiaries
Cash received from loans -- --
Cash received from issuing bonds -- --
Other cash received concerning
2,600,000.00 --
financing activities
Subtotal of cash inflow from financing
2,600,000.00 5,000,000.00
activities
Cash paid for settling debts -- 35,300,000.00
Cash paid for dividend and profit
-- --
distributing or interest paying
Including: Dividend and profit of
minority shareholder paid by -- --
subsidiaries
Other cash paid concerning
51,500.00
financing activities
Subtotal of cash outflow from financing 51,500.00 35,300,000.00
37
承德南江股份有限公司 2014 年半年度报告全文
activities
Net cash flows arising from financing
2,548,500.00 -30,300,000.00
activities
IV. Influence on cash and cash
equivalents due to fluctuation in -- --
exchange rate
V. Net increase of cash and cash
-8,644,242.19 2,502,097.34
equivalents
Add: Balance of cash and cash
77,981,488.06 81,546,046.87
equivalents at the period -begin
VI. Balance of cash and cash
69,337,245.87 84,048,144.21
equivalents at the period -end
Legal Representative: Li Weimin Person in Charge of Accounting: Zhao Yongsheng
Person in Charge of Accounting Department: Liu Fengguo
6. Cash Flow Statement of parent company
Prepared by: Chengde Nanjiang Co., Ltd.
In RMB
Item Current Amount Amount of the Previous Period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 102,230,505.54 --
services
Write-back of tax received -- --
Other cash received concerning
20,287,177.62 44,065,925.29
operating activities
Subtotal of cash inflow arising from
122,517,683.16 44,065,925.29
operating activities
Cash paid for purchasing
commodities and receiving labor 89,171,684.36 153,850,000.00
service
Cash paid to/for staff and workers 2,375,405.09 590,449.08
Taxes paid 5,804,152.68 3,823,299.85
Other cash paid concerning
61,627,291.75 2,943,238.52
operating activities
Subtotal of cash outflow arising from
158,978,533.88 161,206,987.45
operating activities
Net cash flows arising from operating -36,460,850.72 -117,141,062.16
38
承德南江股份有限公司 2014 年半年度报告全文
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 other long-term 30,000,000.00 --
assets
Net cash received from disposal of
-- --
subsidiaries and other units
Other cash received concerning
-- --
investing activities
Subtotal of cash inflow from investing
30,000,000.00 --
activities
Cash paid for purchasing fixed,
47,091.00 737,062.00
intangible and other long-term assets
Cash paid for investment 5,000,166.64 49,170,370.00
Net cash paid for obtaining
-- --
subsidiaries and other units
Other cash paid concerning
-- --
investing activities
Subtotal of cash outflow from investing
5,047,257.64 49,907,432.00
activities
Net cash flows arising from investing
24,952,742.36 -49,907,432.00
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
-- --
investment
Cash received from loans 43,700,000.00 167,348,870.00
Cash received from issuing bonds -- --
Other cash received concerning
-- --
financing activities
Subtotal of cash inflow from financing
43,700,000.00 167,348,870.00
activities
Cash paid for settling debts 10,200,000.00 --
39
承德南江股份有限公司 2014 年半年度报告全文
Cash paid for dividend and profit
-- --
distributing or interest paying
Other cash paid concerning
35,000.00 --
financing activities
Subtotal of cash outflow from financing
10,235,000.00 --
activities
Net cash flows arising from financing
33,465,000.00 167,348,870.00
activities
IV. Influence on cash and cash
equivalents due to fluctuation in -- --
exchange rate
V. Net increase of cash and cash
21,956,891.64 300,375.84
equivalents
Add: Balance of cash and cash
5,681,141.82 777,456.70
equivalents at the period -begin
VI. Balance of cash and cash
27,638,033.46 1,077,832.54
equivalents at the period -end
Legal Representative: Li Weimin Person in Charge of Accounting: Zhao Yongsheng
Person in Charge of Accounting Department: Liu Fengguo
7. Consolidated Statement on Changes of Owners' Equity
Prepared by: Chengde Nanjiang Co., Ltd.
Current Amount
In RMB
Current Amount
Owners' equity attributable to the parent company
Interest of
Paid-in Reserve Total
Item Less: minority
capital(s Capital Special Surplus for Retaine owners
treasury Other sharehold
hare surplus reserve reserve general d profit equity
stock ers
capital) risks
-1,029,8
I. Balance at the end of last 706,320 456,470, 76,791, 27,302,79 237,004,27
-- -- -- 80,318.1 --
year ,000.00 250.78 550.17 5.85 8.62
8
Add: Changes of
-- -- -- -- -- -- -- -- -- --
accounting policy
Error correction of
-- -- -- -- -- -- -- -- -- --
previous period
Others -- -- -- -- -- -- -- -- -- --
II. Balance at the beginning of 706,320 456,470, -- -- 76,791, -- -1,029,8 -- 27,302,79 237,004,27
40
承德南江股份有限公司 2014 年半年度报告全文
this year ,000.00 250.78 550.17 80,318.1 5.85 8.62
8
III. Increase/ Decrease in this
19,331,1 -2,104,97 17,226,170
year (Decrease is listed -- -- -- -- -- --
50.10 9.35 .75
with'"-")
19,331,1 -2,104,97 17,226,170
(i) Net profit -- -- -- -- --- --
50.10 9.35 .75
(ii) Other consolidated income -- -- -- -- -- -- -- -- -- --
19,331,1 -2,104,97 17,226,170
Subtotal of (i)and (ii) -- -- -- -- -- --
50.10 9.35 .75
(III) Owners' devoted and
-- -- -- -- -- -- -- -- -- --
decreased capital
1. Owners' devoted capital -- -- -- -- -- -- -- -- -- --
2. Amount calculated into
-- -- -- -- -- -- -- -- -- --
owners' equity paid in shares
3. Others -- -- -- -- -- -- -- -- -- --
(IV)Profit distribution -- -- -- -- -- -- -- -- -- --
1. Withdrawal of surplus
-- -- -- -- -- -- -- -- -- --
reserves
2. Withdrawal of general risk
-- -- -- -- -- -- -- -- -- --
provisions
3. Distribution for owners
-- -- -- -- -- -- -- -- -- --
(shareholders)
4. Others -- -- -- -- -- -- -- -- -- --
(V) Carrying forward internal
-- -- -- -- -- -- -- -- -- --
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) Special reserve -- -- -- -- -- -- -- -- -- --
1. Withdrawal in this period -- -- -- -- -- -- -- -- -- --
2. Usage in this period -- -- -- -- -- -- -- -- -- --
(VII) Other -- -- -- -- -- -- -- -- -- --
41
承德南江股份有限公司 2014 年半年度报告全文
-1,010,5
IV. Balance at the end of the 706,320 456,470, 76,791, 25,197,81 254,230,44
-- -- -- 49,168.0
report period ,000.00 250.78 550.17 6.50 9.37
8
Amount in last year
In RMB
Amount in last year
Owners equity attributable to the parent company
Interest of
Paid-in Reserve Total
Items Less: minority
capital(s Capital Special Surplus for Retaine owners
treasury Other sharehold
hare surplus reserve reserve general d profit equity
stock ers
capital) risks
-1,124,6
I. Balance at the end of last 706,320 456,470, 76,791, 114,894,67
-- -- -- 87,129.3 -- --
year ,000.00 250.78 550.17 1.61
4
Add: retroactive
adjustment arising from
-- -- -- -- -- -- -- -- -- --
enterprise consolidation under
the same control
Add: Changes of
-- -- -- -- -- -- -- -- -- --
accounting policy
Error correction of
-- -- -- -- -- -- -- -- -- --
previous period
Other -- -- -- -- -- -- -- -- -- --
-1,124,6
II. Balance at the beginning of 706,320 456,470, 76,791, 114,894,67
-- -- -- 87,129.3 -- --
this year ,000.00 250.78 550.17 1.61
4
III. Increase/ Decrease in this
94,806,8 27,302,79 122,109,60
year (Decrease is listed -- -- -- -- -- -- --
11.16 5.85 7.01
with”-”)
94,806,8 5,128,045 99,934,857
(i) Net profit -- -- -- -- -- -- --
11.16 .96 .12
(II) Other consolidated income -- -- -- -- -- -- -- -- -- --
94,806,8 5,128,045 99,934,857
Subtotal of (i)and (ii) -- -- -- -- -- -- --
11.16 .96 .12
(III) Owners devoted and 22,174,74 22,174,749
-- -- -- -- -- -- -- --
decreased capital 9.89 .89
5,000,000 5,000,000.
1. Owners devoted capital -- -- -- -- -- -- -- --
.00 00
2. Amount calculated into
-- -- -- -- -- -- -- -- -- --
owners equity paid in shares
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承德南江股份有限公司 2014 年半年度报告全文
17,174,74 17,174,749
3. Others -- -- -- -- -- -- -- --
9.89 .89
(IV)Profit distribution -- -- -- -- -- -- -- -- -- --
1. Withdrawal of surplus
-- -- -- -- -- -- -- -- -- --
reserves
2. Withdrawal of general risk
-- -- -- -- -- -- -- -- -- --
provisions
3. Distribution for owners
-- -- -- -- -- -- -- -- -- --
(shareholders)
4. Others -- -- -- -- -- -- -- -- -- --
(V) Carrying forward internal
-- -- -- -- -- -- -- -- -- --
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) Special reserve -- -- -- -- -- -- -- -- -- --
1. Withdrawal in this period -- -- -- -- -- -- -- -- -- --
2. Usage in this period -- -- -- -- -- -- -- -- -- --
(VII) Other -- -- -- -- -- -- -- -- -- --
-1,029,8
IV. Balance at the end of the 706,320 456,470, 76,791, 27,302,79 237,004,27
-- -- -- 80,318.1 --
report period ,000.00 250.78 550.17 5.85 8.62
8
Legal Representative: Li Weimin Person in Charge of Accounting: Zhao Yongsheng
Person in Charge of Accounting Department: Liu Fengguo
8. Statement on Changes of Owners' Equity of Parent Company
Prepared by: Chengde Nanjiang Co., Ltd.
Current Amount
In RMB
Current Amount
Paid-in Less: Reserve Total
Items Capital Special Surplus Retained
capital(sha treasury for general owners
surplus reserve reserve profit
re capital) stock risks equity
I. Balance at the end of last year 706,320,00 449,365,88 -- -- 76,791,550 -- -1,210,114, 22,363,374
43
承德南江股份有限公司 2014 年半年度报告全文
0.00 6.69 .17 062.41 .45
Add: Changes of accounting
-- -- -- -- -- -- -- --
policy
Error correction of
-- -- -- -- -- -- -- --
previous period
Other -- -- -- -- -- -- -- --
II. Balance at the beginning of 706,320,00 449,365,88 76,791,550 -1,210,114, 22,363,374
-- -- --
this year 0.00 6.69 .17 062.41 .45
III. Increase/ Decrease in this 28,322,194 28,322,194
-- -- -- -- -- --
year (Decrease is listed with”-”) .53 .53
28,322,194 28,322,194
(i) Net profit -- -- -- -- -- --
.53 .53
(II) Other consolidated income -- -- -- -- -- -- -- --
28,322,194 28,322,194
Subtotal of (i)and (ii) -- -- -- -- -- --
.53 .53
(III) Owners devoted and
-- -- -- -- -- -- -- --
decreased capital
1. Owners devoted capital -- -- -- -- -- -- -- --
2. Amount calculated into
-- -- -- -- -- -- -- --
owners equity paid in shares
3. Others -- -- -- -- -- -- -- --
(IV)Profit distribution -- -- -- -- -- -- -- --
1. Withdrawal of surplus reserves -- -- -- -- -- -- -- --
2. Withdrawal of general risk
-- -- -- -- -- -- -- --
provisions
3. Distribution for owners
-- -- -- -- -- -- -- --
(shareholders)
4. Others -- -- -- -- -- -- -- --
(V) Carrying forward internal
-- -- -- -- -- -- -- --
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 -- -- -- -- -- -- -- --
44
承德南江股份有限公司 2014 年半年度报告全文
(VI) Special 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 -1,181,791, 50,685,568
-- -- --
report period 0.00 6.69 .17 867.88 .98
Amount in last year
In RMB
Amount in last year
Paid-in Less: Reserve Total
Item Capital Special Surplus Retained
capital(sha treasury for general owners
surplus reserve reserve profit
re capital) stock risks equity
706,320,00 449,365,88 76,791,550 -1,210,998, 21,478,537
I. Balance at the end of last year -- -- --
0.00 6.69 .17 899.43 .43
Add: Changes of accounting
-- -- -- -- -- -- -- --
policy
Error correction of previous
-- -- -- -- -- -- -- --
period
Other -- -- -- -- -- -- -- --
II. Balance at the beginning of 706,320,00 449,365,88 76,791,550 -1,210,998, 21,478,537
-- -- --
this year 0.00 6.69 .17 899.43 .43
III. Increase/ Decrease in this
-- -- -- -- -- -- 884,837.02 884,837.02
year (Decrease is listed with”-”)
(i) Net profit -- -- -- -- -- -- 884,837.02 884,837.02
(II) Other consolidated income -- -- -- -- -- -- -- --
Subtotal of (i)and (ii) -- -- -- -- -- -- 884,837.02 884,837.02
(III) Owners devoted and
-- -- -- -- -- -- -- --
decreased capital
1. Owners devoted capital -- -- -- -- -- -- -- --
2. Amount calculated into
-- -- -- -- -- -- -- --
owners equity paid in shares
3. Others -- -- -- -- -- -- -- --
(IV)Profit distribution -- -- -- -- -- -- -- --
1. Withdrawal of surplus reserves -- -- -- -- -- -- -- --
2. Withdrawal of general risk
-- -- -- -- -- -- -- --
provisions
3. Distribution for owners -- -- -- -- -- -- -- --
45
承德南江股份有限公司 2014 年半年度报告全文
(shareholders)
4. Others -- -- -- -- -- -- -- --
(V) Carrying forward internal
-- -- -- -- -- -- -- --
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) Special 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 -1,210,114, 22,363,374
-- -- --
report period 0.00 6.69 .17 062.41 .45
Legal Representative: Li Weimin Person in Charge of Accounting: Zhao Yongsheng
Person in Charge of Accounting Department: Liu Fengguo
III. Company profile
(I) Historical development of the Company
Chengde Nanjiang Co., Ltd. (Hereinafter referred to as "Nanjiang" or the "the Company") was formerly known as
Chengde Dixian Knitting Co., Ltd., and was reorganized on 3 November 1999 by sponsorship, approved by the
People's Government of Hebei Province with the issue of Ji Gu Ban [1999]No.: 36 with license of the business
corporation obtained from Hebei Administration for Industry & Commerce; registered capital while established
amounting as RMB 100,000,000, and RMB 1.00 per share. Among the abovementioned, RMB 85.10 million
contributed by Wang Shuxian, representing 7.56 percent of the registered capital; Wang Zhengsong invested RMB
5.4444 million with 5.44 percent in total registered capital presented; Chengde Longfeng Cosmetics Co., Ltd.
contributed RMB 0.9456 million, a 0.95 percent in registered capital and RMB 0.9456 million contributed by
Chengde Xiabancheng Hongxing Plastics Products Plant with 0.95 percent in registered capital presented.
On 29 August 2000, according to the Zheng Jian Fa Xing Zi [2000] No.: 121 issued by the China Securities
Regulatory Commission, the Company issued 100,000,000 domestically listed foreign shares in Shenzhen Stock
Exchange dated 19 September 2000; and excised the over-allotment option to increase issuing 15,000,000 B
shares from September 29, 2000 to October 29, 2000. The registered capital of the Company after the issuance of
B shares was RMB 215,000,000 with one Yuan of face value per share.
46
承德南江股份有限公司 2014 年半年度报告全文
According to the resolution of the shareholders general 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 general 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 as a foreign investment limited liability company.
In 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 general 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 Chen Rong for 45,491,544 Yuan, and on August 15,
2008, 96,000,000 sponsor shares held by Wang Shuxian was compensated to Chen Rong for 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 domestically listed foreign shares in 2004 and allotted 2 bonus
shares free for every 10 shares in 2006; and it agreed that 208,324,800 shares of Dixian stock held by Wang
Shuxian was changed to Chen Rong ; as well as the name of the Company changed to Chengde Dalu Co., Ltd.
Total share capital of the Company was 706,320,000 shares and the registered capital of the Company was
706,320,000 Yuan after the Companys share increased and allotted,
On 23 August 2011, the Company received the enterprise corporate business license issued from Chengde
Administration for Industry and Commerce, register serial was No.: 130000400001225; registered capital and
paid-up capital was 706.32 million Yuan with corporate type of limited liability company (Sino-foreign joint
venture, listed)
47
承德南江股份有限公司 2014 年半年度报告全文
On April 6, 2012, Chen Rong, shareholder of Company, signed a share transfer agreement with Mr. Wang Dong
for transferred all of the 208,324,800 shares held by himself (accounting for 29.49% of total capital of the
Company) to Mr. Wang Dong; After equity transfer the above mentioned, capital contribution proportion of the
shareholders of the Company were: 208.3248 million Yuan invested by Wang Dong, representing 29.49 percent of
the register capital; 18517651 Yuan contributed by Hebei Chengde Northern Industrial Corporation, representing
2.62 percent of the register capital; 13327891 Yuan invested by Wang Zhengsong, a 0.33 percent in register capital;
2314829 Yuan invested by Chengde Xiabancheng Hongxing Plastics Products Plant, a 0.33 percent in register
capital and 461.52 million Yuan contributed by shareholders of domestically listed foreign shares, representing
65.34 percent of the register capital.
On 19 September 2012, being verified and approved by Chengde Administration for Industry and Commerce, the
Companys name changed as Chengde Nanjiang Co., Ltd.
(II) Nature of business
Nanjiang engaged in the operation and development of real estate, subsidiary of the Company engaged in real
estate industry, international trading and agricultural farming industry
(III) Business scope
R&D and sales of new energy, and new material products as well as technology promotion and technical service;
scientific research of modern eco-agriculture and technology promotion service, wholesales of eco-agriculture
products; import and export trade of goods and technology; development and construction as well as sales and
operation of general residential and supporting commercial facilities for the two lands of NanjiangHuijing Tiandi
(2013-12 and 2013-13); property management.
(IV) Main products and labor service
Sales of the real estate development products, trading of plastic raw materials and product sales of animall and
plant breeding
(V) Basic framework of the Company
The high authority of the Company is shareholders general meeting, implemented the general-manager
responsibility system under the leadership of the Board. Set up the functional department of security,
administrative, H&R, financial, auditing, and sales, business department and research center etc. according to the
requirement of business development.
IV. Main Accounting policy, estimate and previous errors
1. Basis Preparation of the Financial Statements
The financial statements of the Company is prepared based on the going-concern in accordance with the actually
occurred transactions and events and the “Accounting Standards for Business Enterprises – Basic Standards” and
38 specific accounting standards promulgated by the ministry of finance on 15th, Feb., 2006, the subsequently
promulgated application guide and interpretation of the accounting standards for business enterprises and other
relevant provisions (hereinafter collectively referred to as “ASBE”), and China Securities Regulatory Commission
48
承德南江股份有限公司 2014 年半年度报告全文
“information disclosure regulations No.15 for the companies publicly issuing securities - general provisions of
financial reports” (2010 Revision)
2. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company meet the requirements of the Accounting Standards for
Business Enterprises; truthfully and completely reflect the financial status, operation results and cash flow etc. of
the Company.
3. Fiscal period
The fiscal year of the Company is from 1 January to 31 December on basis of Gregorian calendar.
4. Book-keeping currency
The Company adopts RMB (CNY) as the currency when preparing this financial statement.
5. Accounting treatment for business merge under the common/different control
(1) Business merger under the common control
(1)Individual financial statements
For the merger of enterprises under the same control, with payment of cash, transfer of non-cash assets or bearing
debt and issuance of equity securities as the consideration of the merger, the initial cost of the long-term equity
investment shall be recognized at the share of the book value of the owners equity of the merged enterprise. The
difference between the initial cost of the long-term equity investment and the payment of merger consideration
shall offset against the capital reserve. If the capital reserve is insufficient to offset, the retained earnings shall be
adjusted.
All directly relevant expenses incurred to the Company for the merger of enterprises, including auditing fees and
assessment fees and legal fees, shall be included in the current profit and loss at occurrence. In case that there is
consolidated financial statement of the party consolidated, the initial investment cost of long term equity
investment shall be determined based on the owners equity in the consolidated financial statement of such party
as at the merger date.
(2)Consolidated financial statement
The assets and liability obtained by merging party in business merge should be measured by the book value of the
merged party at date of business merger. In case of different acounting policy adoped by the parties in business
merger, the Company shall adjusted on consolidation date in line with the accounting policy of the Company, and
recognized on that basis according to the Accounting Standards for Business Enterprises (ASBE).
(2) Business merger under the different control
As for the business merger under the different control, the merger costs refers to the assets paid by the acquirer for
obtaining the control rights of the acquiree on the acquisition date, the liabilities incurred or assumed, and the fair
value of the issued equity securities. If there is agreement on such future events that may affect consolidated cost
49
承德南江股份有限公司 2014 年半年度报告全文
in the consolidation contract and if it is estimated that such event may happen on acquisition date, the affected
consolidated costs which could be measured reliably shall be recorded in consolidated cost.
As for the Company, the intermediary fees such as auditing, legal services and consulting services costs and other
administrative costs incurred by the business merger are charged to the current profit and loss; The transaction
costs of the equity securities or debt securities issued as the combination consideration by the Company are
reckoned in the initially recognized amount of the equity securities or debt securities.
The balance of which the merger costs are more than the net identifiable assets fair value share of the acquiree
obtained in the merger is recognized as goodwill. For those whose merger costs are less than the net identifiable
assets fair value share of the acquiree obtained in the merger, while those whose merger costs are still less than
the net identifiable assets fair value share of the acquiree obtained in the merge after rechecking, reckon its the
balance in the current profit and loss.
As for the business merger under different control achieved in stages by multiple exchanges and transactions,
relevant accounting treatment shall be made by distinguishing the individual financial statement and consolidated
financial statement:
(1) In individual financial statement, the total of book value of equity investment held by the acquiree before
acquisition date and the investment cost, which has increased, shall be consider as the initial investment cost for
the investment; If the equity of acquiree party held before acquisition date related to other consolidated
income(such as the parts reckoned into capital reserves from the variation of fair value of financial assets
available for sales, the same below), the other consolidated income shall transfer to current investment income
while disposed the investment.
(2) In consolidated financial statement, re-measured the fair value of the equity on acquisition dated for those
equity of acquiree party held before acquisition date, the difference of the fair value and its book value shall
reckoned into current investment income; If the equity of acquiree party held before acquisition date related to
other consolidated income, other consolidated income related with them shall transfer to investment income of the
period while acquisition date occurred.
6. Relevant specific accounting policy for equity disposal on step-by-step basis to lose control
(1) A principle of judgment of “Package Deal”
Make the clauses, conditions and economic impact of all transactions that meet with one or more of the following
circumstances in the process of realizing the business combination step by step, and take multiple transactions as a
package deal and do the accounting treatment.
50
承德南江股份有限公司 2014 年半年度报告全文
(2) Accounting method for “Package Deal”
Dispose the clauses, conditions and economic impact of all transactions to the equity investment of the
subsidiaries that meet with one or more of the following circumstances, and take multiple transactions as a
package deal and do the accounting treatment: ① These transactions are made simultaneously or in considering
the effects of each other; ② Only these overall transactions can reach a complete business results; ③ The
occurrence of one transaction depends on the occurrence of at least one other transaction; ④ It is uneconomical to
see a transaction alone, but economical to consider along with all the others. All transactions disposing the equity
investment of the subsidiaries until losing the control right are a package deal, distinguish the individual financial
statements from the consolidated financial statements and do the relevant accounting treatment: ①In the
individual financial statements, take all transactions as one that disposes the subsidiaries and loses the control
right and do the accounting treatment, the company disposes the investments in subsidiaries, and the balance
between the disposal costs and the book value corresponding to the disposal of investment should be recognized
as the current investment income in the parent company's individual financial statements; ② In the consolidated
financial statements, the balance between each disposal cost and the share of the net assets of this subsidiary
corresponding to the disposal of investment before losing the control right should be recognized as other
consolidated income, and be transferred into the current profit and loss when losing control right.
(3) Accounting method for Non “Package Deal”
The enterprises that lose the control right of the subsidiaries due to the disposal of some equity investment or
other reasons, which doesnt belong to a package deal, should do the accounting treatment by distinguishing the
individual financial statements and the consolidated financial statements: ① In the individual financial statements,
the equity to be disposed should get accounting treatment in accordance with the provisions of "Accounting
Standards For Business Enterprises No. 2 - long-term equity investment"; at the same time, the residual equity
should be recognized as the long-term equity investment or other related financial assets according to the book
value. The residual equity that can carry out a joint control or have a significant impact on the existing
subsidiaries after the disposal should get the accounting treatment according to the related regulations of
transferring the cost method to the equity method. ②In the consolidated financial statements, the residual equity
should be re-measured in accordance with its fair value on the date of losing the control right. The balance by
subtracting the sum of the consideration achieved by disposing the stock rights and the fair value of the residual
equity from the share of the net assets of the original subsidiary being calculated according to the original
shareholding ratio since the purchase date should be reckoned in the current investment income at the period of
losing the control right. The other consolidated income related to the equity investment of the original subsidiary
should be transferred into the current investment income when losing the control right. The enterprise should
disclose the fair value of the residual equity on the date losing the control right after disposal in the annotations,
and re-measure the generated gains or the lost amount according to the fair value.
7. Preparing method of consolidated financial statements
(1) Preparing method of consolidated financial statements
When preparing the consolidated financial statements, for the accounting policies adopted by the subsidiaries and
the Company being inconsistent during the accounting time period, adjust in accordance with the accounting
policies of the Company and the financial statements of the subsidiaries during the accounting time period.
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承德南江股份有限公司 2014 年半年度报告全文
The consolidated financial statements are prepared by the Company based on the individual financial statement of
the Company and subsidiaries by reference to other related information after adjustment to the long term equity
investments of the subsidiaries at equity method.
The influence on consolidated balance sheet, consolidated profit statement, consolidated cash flow statement and
consolidated changes of owners equity from inner transactions shall be neutralized between the Company and its
subsidiaries and between the subsidiaries while prepared the consolidated financial statement.
Reduce the minority interest for those that the subsidiaries losses shared by the minority shareholders exceed the
shares that the minority shareholders gained from the owner's equity at the beginning period of this subsidiary.
In reporting period, for the subsidiaries increased by the business merger under the common control, opening
amount of the consolidated balance sheet shall be adjusted; the revenue, expenses and profit of the subsidiary
from the beginning period of the merger to end of the Period shall included in the consolidated profit statement;
and the cash flow statement of the subsidiary from the beginning period of the merger to end of the Period shall
included in consolidated cash flow statement.
In reporting period, for the subsidiaries increased by the business merger under the different control, dont adjust
the opening amount of the consolidated balance sheet; the revenue, expenses and profit of the subsidiary from the
purchase date to end of the Period shall included in the consolidated profit statement; and the cash flow statement
of the subsidiary from the purchase date to end of the Period shall included in consolidated cash flow statement.
In reporting period, as for the disposed subsidiaries, the revenue, expenses and profit of the subsidiary from the
beginning of the Period to disposal date shall included in the consolidated profit statement; and the cash flow
statement of the subsidiary from the beginning of the Period to disposal date shall included in consolidated cash
flow statement.
When losing the control rights of the original subsidiaries because of disposing some equity investment or other
reasons, in consolidated financial statement, re-measure the residual equity in accordance with its fair value on the
date of losing the control rights. Use the sum of the consideration obtained by disposing the stock rights and the
fair value of the residual equity to minus the balance among the net assets shares of the original sub companies
continuously calculated since the acquisition date in accordance with the original shareholding ratio, and then
reckon in the current investment income when losing the control rights. Transfer the other consolidated incomes
related to the equity investment of the original subsidiaries to the current investment income when losing the
control rights.
(2)Disclosure of related accounting method for buy-and-resell or sell-and-repurchase of equities in the same
subsidiary within two successive accounting years
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8. Determination criteria of cash and cash equivalent
When prepared the cash flow statement, the stock cash and deposits available for payment at any time of the
Company are recognized as cash. The investment with the follow characters obtained at the same time is
recognized as cash equivalent: short term (expire within 3 months commencing from purchase day), active
liquidity, easy to convert to already-known cash, and small value change risks.
9. Foreign currency business and foreign currency statement translation
(1)Foreign currency business
The foreign currency business shall be translated to the RMB amount at the spot exchange rate on the transaction
date.
For the foreign currency monetary items translated at the spot exchange rate, all differences are included in the
current gains/losses except for the differences arising from foreign currency borrowings related to the acquisition
or construction of fixed assets which are qualified for capitalization. The foreign currency non-monetary items
measured at historical cost shall still be measured by the functional currency translated at the spot exchange rate
on the date of the transaction without its book-keeping currency changed. Foreign currency non-monetary items
measured at fair value are translated at the spot exchange rate on the date of determination of the fair value, the
translation differences occurred will included in the current gains/losses or capital reserves.
(2) Foreign currency statement translation
The assets and liabilities items in the balance sheet are translated at the spot rate of the balance sheet date; as for
owners equity items, items are translated at the spot rate of the occurrence date other than the item of “retained
profit”. In profit statement, revenue and expense items are translated at the spot rate of the transaction occurrence
date. The balance arising from the translation of foreign currency financial statements on above-mentioned, such
balance are separately listed in the owners equity in balance sheet.
When disposal of any overseas business, the balance arising from the translation of foreign currency financial
statements, which related to the overseas business, listed under the owners equity in balance sheet shall transfer to
disposal of current gains/losses from item of owners equity; while part of the overseas business disposed, the
balance arising from the translation of foreign currency financial statements shall transfer to disposal of current
gains/losses by disposal proportion.
10. Financial instruments
Financial instruments including financial assets, financial liability and equity instrument
(1) Classification of financial instruments
In terms of purposes of obtained and holding the financial assets and financial liability undertake, the Company
divides them into financial assets and financial liability, measured by fair value and with variation of fair value
reckoned into current gains/losses, which including transactional financial assets or financial liability ( and
financial assets and financial liability, measured by fair value and with variation of fair value reckoned into
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current gains/losses appointed directly); held-to-maturity investment, account receivables, financial assets
available for sales and other financial liability etc.
(2) Recognition basis and measurement method for financial instruments
(1) Financial assets (financial liability) measured by fair value and with variation of fair value reckoned into
current gains/losses
Amount is initially measured by the fair value while obtained (deducted cash dividend which has announced
without paid or bond interest expired without received), relevant transaction expenses reckoned into current
gains/losses.
The interest or cash dividend obtained in period of holding are recognized as investment income, the changes of
fair value shall included in current gains/losses at end of the period.
In case of disposal, the difference between the fair value and initial book-keeping amount shall recognize as
investment income, and gains/losses from change of the fair value shall be adjusted at the same time.
(2) Held-to-maturity investment
Amount is initially measured by the sum of fair value (deducted bond interest expired without received) while
obtained and relevant transaction expenses.
Interest income in period of holding shall be calculated base on amortized cost and real interest rates, and included
in investment income. The real interest rates are recognized while obtained and remain the same in expected
duration or in an applicable shorter period.
In case of disposal, the difference between the amount while obtained and book value of the investment shall
reckon into investment income.
(3) Account receivable
Account receivables represent the creditors right receivables formed from sales of goods and provision of labor
services, and claims of debt instrument of other enterprise held by the Company, excluding the debt instrument
that quoted in an active market, including account receivable and other account receivable etc, and are initially
measured at the contract or agreement amount receivable from the purchaser; for those which has nature of
financing, initially measured at the present value.
When recovered or disposed, the difference between the amount received and the carrying value of the account
receivables shall be recorded in current profit and loss.
(4) Financial assets available for sale
Amount is initially measured by the sum of fair value (deducted cash dividend which has announced without paid
or bond interest expired without received) while obtained and relevant transaction expenses.
Interest or cash dividend obtained in period of holding shall be recognized as investment income. At end of the
period, measured by fair value and the changes of fair value reckoned into capital reserves (other capital reserves).
When disposed, the difference between the amount received and the carrying value of the financial assets shall be
recorded in gains/losses of investment; the portion of the accumulative amount of changes in the fair value
originally recorded in the owners equity which corresponds to the portion whose has been disposed, reckoned
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into investment gain/loss at the same time.
(5) Other financial liability
Amount is initially measured by the sum of fair value and relevant transaction expenses. The Company
subsequently stated at amortized cost.
(6) Held-to-maturity investment for sales or reclassify as financial assets available for sale:
In case that the amount of held-to-maturity investments disposed or reclassified into other categories of financial
assets is greater than the total amount of all the held-to-maturity investment of the Company before the disposal or
reclassification, the remaining held-to-maturity investment shall be recorded as financial assets available for sale
immediately after such disposal or reclassification, unless:
① the date of disposal or reclassification is relatively close to the maturity date or redemption date of the
investment (such as three months before expiration), and change of market rate has no material affects on the fair
value of the investment.
②the enterprise has nearly recovers the entire initial principal under the payment method as agreed by contract.
③the disposal or reclassification is due to such independent matter that the enterprise is not able to control, will
not happen again as expected and can not predicted reasonably.
(3) Recognition and measurement of transfers of financial asset
In case of financial assets transfer, financial assets shall be derecognized if the financial asset, along with
substantially all the risk and return arising from the ownership of the financial asset, has been transferred to the
transferee; if the financial asset, along with substantially all the risk and return arising from the ownership of the
financial asset has reserved, the financial assets shall not be derecognized.
In judging whether the financial assets transfer satisfy the abovementioned derecognized condition, principle of
substance over form shall prevail. The Company distinguishes the transfer of financial assets as transfer totally or
transfers partially. If the transfer of financial asset totally occurred meets de-recognized condition, the balance
between the followed two amounts shall reckoned into current gains/losses:
(1) Carrying value of the financial assets transferred;
(2) Sum of the consideration, obtained due to transfer, and the accumulative amount of changes in fair value
originally recorded in the owners equity (applicable to the financial assets available for sale involved in the
transfer of financial assets).
If the transfer of financial asset partially occurred meets de-recognized condition, the carrying value of all transfer
of financial assets shall be amortized separately based on relatively fair value between the parts which has been
de-recognized and those parts which has not been de-recognized, the balance between the followed two amount
shall reckoned into current gains/losses:
(1) Carrying value of the parts de-recognized;
(2) Sum of the consideration from the de-recognized parts, and the accumulative amount of changes in fair value
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originally recorded in the owners equity which corresponds to the portion whose has been de-recognized
(applicable to the financial assets available for sale involved in the transfer of financial assets).
Transfer of financial assets meets no de-recognizes condition, the financial assets shall continue to confirm, the
consideration obtained shall recognized as financial liability.
(4) Recognition condition for termination of financial liability
When the prevailing obligations of a financial liability are relieved in all or in part, the recognition of the financial
liability shall be terminated in all or partly; Where the Company enters into an agreement with a creditor so as to
substitute the existing financial liabilities by way of any new financial liability, and if the contractual stipulations
regarding the new financial liability is substantially different from that regarding the existing financial liability, it
shall terminate the recognition of the existing financial liability, and shall at the same time recognized the new
financial liability.
Where an enterprise makes substantial revisions to some or all of the contractual stipulations of the existing
financial liability, it shall terminated the recognition of the existing financial liability or part of it, and at the same
time recognize the financial liability after revising the contractual stipulations as a new financial liability.
Where the recognition of a financial liability is totally or partially terminated, the gap between the carrying
amount which has been terminated from recognition and the considerations it has paid (including the non-cash
assets it has transferred out and the new financial liability it has assumed) shall included into the profits and losses
of the current period.
Where the Company buys back part of its financial liabilities, it shall distribute, on the repo day, the carrying
amount of the whole financial liabilities in light of the comparatively fair value of the part that continues to be
recognized and the part whose recognition has already been terminated. The gap between the carrying amount
which is distributed to the part whose recognition has terminated and the considerations it has paid (including the
non-cash assets it has transferred out and the new financial liabilities it has assumed shall be recorded into the
profits and losses of the current period.
(5) Recognition method for fair value of financial assets and financial liabilities
In case of an active market, fair value of the financial assets or financial liabilities are recognized by the quotation
in active market; in case of absence of an active market, the Company recognizes fair value by reference to
valuation technology (including reference to the price adopted by parties who are willing to make business and
knowing conditions quite well in their latest transactions, reference to prevailing fair values of other financial
instruments with similar essence, discount cash flow method and option pricing pattern etc.); as for the financial
assets initially obtained or produced at source at the financial liabilities assumed, the fair value thereof shall be
determined on the basis of the transaction price of the market.
(6) Impairment test method and impairment provision method for financial assets (not including account
receivables)
On balance sheet date, the Company conducts inspection on carrying values of financial assets, except for those
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measured by fair value and its variation of fair value recorded into current gains/losses. If there is objective
evidence indicating that impairment has happened to financial assets, impairment reserve then shall be provided.
The objective evidence of the impairment of financial assets, including but not limited to:
The issuer or debtor has serious financial difficulties;
The issuer or debtor breaches the contract terms, for example, breaks his promise to pay the interests or the
principle or exceeds the time limit, etc.
The creditor makes a concession to the debtor having the financial difficulties in considering the economy or law;
The debtor is likely to go into liquidation or make other financial restructuring;
The financial assets cannot enliven the market and continue trading as the issuer has significant financial
difficulties;
When it cannot be identified whether the cash flow of an asset in one group of financial assets has been reduced,
but found that the future cash flow of this group of financial assets since the initial recognition has already
reduced and could be measured after making the comprehensive evaluation according to the open data, for
instance, the payment ability of the debtor of this group of financial assets goes down, or the unemployment rate
in the country or region where the debtor lives increases, or the price of the guaranty in the debtors area declines
dramatically, or the industry is in the recession, etc.
The technology, market, economy or legal environment of the issuer of the equity instruments have significant
adverse changes, which makes the investor of the equity instrument may not be able to take back the investment
cost;
The fair value of the investment of equity instruments drops dramatically or non temporarily;
The specific impairment methods of the financial assets are as follows:
(1) Provision for impairment of available-for-sale financial assets:
Evaluate the impairment loss of the available-for-sale financial assets by adopting the individually affirmed way,
thereinto, the objective evidences showing the available-for-sale equity instruments have impairment in
investment include the fair value of the equity instruments investment depreciates seriously or non-temporally, the
specific quantitative criteria include: the Company respectively inspects the investment of each available-for-sale
equity instrument on the balance sheet date, if the fair value of the investment of equity instrument on the balance
sheet date is lower than its initial investment cost of more than 50% (including 50%) or the duration that the fair
value is lower than its initial investment cost exceeds 12 months (including 12 months), then it indicates the
impairment occurs.
When the available-for-sale financial assets have impairment, even though the financial assets are not
derecognized, the Company will transfer the accumulated losses of the initially reckoned owner's equity that are
generated by the depreciation of fair value from the owner's equity, and reckon in the current profit and loss. The
transferred accumulated losses are equal to the balance after deducting the recovered principal, amortized amount,
current fair value and impairment loss initially reckoned in the profit and loss from the initial acquisition cost of
available-for-sale financial assets
For the available-for-sale debt instruments, whose impairment loss has been recognized, if the fair value has gone
up and objectively concerned with the matters occurred after recognizing the initial impairment loss in the
subsequent accounting periods, the previously recognized impairment loss shall be reversed and reckoned in the
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current profit and loss; the impairment loss of the investments of available-for-sale equity instruments shall be
reversed through the equity when the price of equity instruments rises; for the investments of equity instruments
that have no offer in an active market or its fair value cannot be measured reliably, or the impairment loss that has
connection with this equity instrument and must be generated by paying the financial derivative settled by this
equity instrument cannot be reversed.
(2) Impairment reserve for held-to-maturity investment
If there has objective evidence of impairment on held-to-maturity investment, the impairment losses shall be
recognized by the gap between its carrying value and estimated future cash flow; if there has evidence of return
for the values, the impairment losses recognized originally can be turned back, and reckoned into current
gains/losses, however, the returned carrying value should not exceed the amortized cost of the financial assets on
the date of provision reversal if assets impairment provision had not been made.
Judging standards for vary impairment of financial assets available for sale
(7)As for reclassification of un-matured held-to-maturity investments into financial assets available for sale,
explain the holding purposes or references for change of ability
11. Recognition standards and accrual method for bad debt provision for accounts receivable
(1) Bad debt provision for accounts receivable with single major amount
Determine basis or amount standards for single significant amount Amount with one million above
Conducts and impairment test independently, accrual bad
debt reserve on the difference between the present values of
estimated future cash flow, which is lower than its carrying
withdrawal method for account with single significant amount and
value, than reckoned into current gains/losses. For those
withdrawal single item bad debt provision
account receivable without impairment been found after
testing, accrual bade debt reserves included in the
corresponding group
(2) Accounts whose bad debts provision was accrued by combination
Methods on withdrawal of
Combination bad debt provision based on Basis for combination recognized
combination
As for the receivable with single amount of over one million
Yuan without impairment being found after testing individually,
Age combination Age analysis method
and those minor receivable below one million Yuan, adopts age
analysis accrual the bad debt provision
In combination, accounts whose bad debts provision was accrued by age analysis:
√ Applicable □ Not-applicable
Account age Rate for receivables Rate for other receivables
Within one year (one year 5.00% 5.00%
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included)
1－2 years 20.00% 20.00%
2－3 years 50.00% 50.00%
Over 3 years 100.00% 100.00%
In combination, withdrawal proportion of bad debt provision based on balance proportion:
□ Applicable √ Not-applicable
In combination, withdrawal proportion of bad debt provision based on other methods
□ Applicable √ Not-applicable
(3) Accounts receivable with single significant amount and bad debts provision accrued individually
There is an objective evidence of impairment which is probably about to occurred,
Reasons for withdrawal single item bad debt such as revocation from the debtor, bankruptcy or dead, and still able to recover after
provision liquidated by the bankruptcy property or heritage as well as serious insufficient cash
flow etc.
For those account receivable with objective evidence of impairment been found,
separated them from the relevant groups for impairment testing independently, and
Withdrawal method for bad debt provision impairment losses shall recognized and withdrawal bad debt reserves on the
difference between the present values of estimated future cash flow which is lower
than its carrying value,
12. Inventories
(1)Classification of inventories
Inventories are categorized into development cost, development products, relocation housing animals & plants
aquaculture plant products and low value consumables etc.
(2)Valuing of the delivered inventory
Valuing method: Other
The Company adopts the historical cost for obtaining or the planned cost to value the inventory according to its
actual situation, and specific identification method for the development projects.
(3) Confirmation of net realizable value for the inventory and provision for inventory impairment
Making an overall check of the inventory at end of the year, withdrawal the lower one according to the cost or the
net realizable value, or adjusted the provision for inventory impairment. Withdrawal the impairment provisions
for the single inventory at end of the year.
In case the influencing factor for write-down of the inventory values has disappeared, the amount which has been
written down can be recover, and shall switch back within the inventory falling price reserves which has been
accrual originally, the amount switch back shall reckoned into current gains/losses.
(4)Inventory System
Inventory system: perpetual inventory system
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(5) Amortization method for the low-value consumables and wrappage
Low-value consumables
Amortization method: one-off amortization method
Wrappage
Amortization method: one-off amortization method
13. Long-term equity investment
(1) Determination of investment cost
1) Long-term equity investment arising from enterprise combination, more accounting policy found in the
accounting treatment for enterprise combined (not) under the same control
2) Long-term equity investment acquired by other methods.
The initial investment cost of a long-term equity investment obtained by making payment in cash shall be
accounted for its actual cash paid.
The initial investment cost of a long-term equity investment obtained on the basis of issuing equity securities shall
be the fair value of the equity securities issued.
The initial investment cost of a long-term equity investment of an investor shall be the value stipulated in the
investment contract or agreement (deducted the declared but not yet paid cash dividends or profits received)
except the unfair value stipulated in the contract or agreement.
The initial investment cost of a long-term equity investment of an investor shall be the value stipulated in the
investment contract or agreement except the unfair value stipulated in the contract or agreement. 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 non-monetary assets not meeting the above premises, the
book value of assets surrendered and related taxes shall be accounted as cost of assets received and the profits and
losses shall not be concluded.
The initial investment cost of long-term equity investment obtained by recombination of liabilities shall be
accounted at fair value.
(2) Subsequent measurement and recognition of profit or loss
1) Subsequent measurement
Long-term equity investments of the Company in its subsidiaries are accounted for at cost method and adjusted at
equity method when preparing the consolidated financial statements.
Investments on the subsidiary company of an investing enterprise, investees not under common control or
significant influence, and long-term equity investments not quoted in an active market and where its fair value
cannot be measured reliably shall be accounted by the cost method.
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Long-term equity investments under common control or significant influence shall be accounted by the equity
method. If the initial cost of a long-term equity investment is more than the investing enterprises attributable
share of the fair value of the investees identifiable net assets for the investment, the initial cost of the long-term
equity investment may not be adjusted; if the initial cost of a long-term equity investment is lower than the
investing enterprise attributable share of the fair value of the investees identifiable net assets for the investment,
the difference shall be included in the profit or loss for the current period
Treatment for other changes in owners' equity other than the net profit or loss of the investee: where any change is
made to the owners' equity other than the net profits and losses of the investee, the book value of the long-term
equity investment shall be adjusted and be included in the owners' equity, and the capital reserves (other capital
reserves) shall be accordingly adjusted, in accordance with the attributable share of the net profits or losses of the
investee.
2) Recognition of profit (gains) and losses
For long-term equity investment measured in the cost method, except for the declared but unpaid cash dividends
or profits contained in the payment or consideration actually made at the time of investment, the Company shall
recognized the cash dividends or profits declared to be paid by an investee as investment yield as an investment
income.
Under the equity method, when the Company confirms that it should share losses of the investee, treatment shall
be done in following sequence: firstly, the book value of the long-term equity investment shall be reduced;
secondly, where the book value is insufficient to cover the share of losses, investment losses are recognized to the
extent of book value of long-term equity which form net investment in the investee in substance and the book
value of long-term account receivables shall be reduced; finally, after all the above treatments, if the Company is
still responsible for any additional liabilities in accordance with the provisions stipulated in the investment
contracts or agreements, accrual liabilities are recognized and included into current investment loss according to
the obligations estimated to undertake.
If the investee achieves profit in subsequent periods, the treatment is in the reversed sequence described above, i.e.
after deduct any unrecognized investment losses, reduce book value of estimated liabilities recognized, restore
book values of other long-term equity which form net investment in the investee in substance, and of long-term
equity investment, and recognize investment income at the same time.
(3)Basis of determining joint control or significant influence
Jointly control is the contractually agreed sharing of control over an economic activity, and exists only when the
strategic financial and operating decisions relating to the activity require the unanimous consent of the parties
sharing control. Significant influence is the power to participate in the financial and operating policy decisions of
investee but is not control or joint control over those polices.
(4) Testing and provision method of impairment
Balance sheet date, when the long-term equity investment has the sign of decrease in value due to the continuous
depreciation of market price or the deteriorating operation state of the investor, the recoverable amount of the
long-term equity investment is determined by choosing the higher one from the net amount that is calculated by
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subtracting the disposal cost from the fair value of the single long-term equity investment and the present value of
the predicted future cash flow of the long-term equity investment. When the recoverable amount of the long-term
equity investment is less than the book value, write down the book value of the assets to the recoverable amount,
recognize the write-down amount as the assets impairment loss and reckon in the current profit and loss, and
withdraw the corresponding provision for impairment of assets at the same time.
The long-term equity investment that is under the significant impact, has no offer in the active market and has fair
value cannot be measure reliably, of which the impairment loss is recognized according to the balance between its
book value and the present value which is determined by the market return of the similar financial assets at that
time discounting the future cash flow.
For the long-term equity investments having the sign of decrease in value, except for the business reputation
formed due to the business combination, if the measurement results of the recoverable amount show that the
recoverable amount of this long-term equity investment is less than its book value, the balance can be recognized
as the impairment loss.
For the long-term equity investment calculated by adopting the cost method, it should be considered whether it
will have a decrease in value after the investees declaring to assign cash dividends or profits and confirm the
investment income.
The impairment loss of long-term equity investment cannot be reversed once recognized.
14. Investment real estate
Investment real estate of the company are those held for rental income or capital appreciation, or both, including
land use rights already leased out, land use rights held for sale after capital appreciation and buildings already
leased out.
Investment real estate of the Company is accounted value by its cost. Cost of purchased-in investment real estate
consists of payment for purchase, relevant taxes and other expenditure which is attributable to the assets directly;
while cost of self-built investment real estate is formed with all necessary expenditures occurred before
construction completion of the assets arriving at the estimated utilization state.
Consequent measurement of investment estate shall be measured by cost method. Depreciation and amortization
are provided to the buildings and land use right pursuant to the predicted service life and net rate of salvage value.
The predicted service life and net rate of salvage value and annual depreciation(amortization) are listed as follows:
Type Expected operating life Predicted rate of net salvage Depreciation(amortizatio
(year) value n) rate per annum
Land Use Right 50 0%-10% 1.80%
House and buildings 20-28 0%-10% 3.56%-4.50%
When investment real estate turns to be used by holders, it shall switch to fixed assets or intangible assets
commencing from the date of such turning. And when self-used real estate turns to be leased out for rental or
additional capital, the fixed assets or intangible assets shall switch to investment real estate commencing from the
date of such turning. In situation of switch, the carrying value before the switch shall be deemed as the credit
value after the switch.
Indication of impairment is assessed, the recoverable amount shall be estimated and the impairment shall be
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recognizing while the recoverable amount lower than its book value.
Impairment loss once recognized shall not be reversed.
When investment is disposed, or out of utilization forever and no economic benefit would be predicted to obtain
through the disposal, the Company shall terminate recognition of such investment real estate. The amount of
income from disposal, transfer, discarding as scrap or damage of investment real estate after deducting the asset s
carrying value and relevant taxation shall be written into current gains and losses.
15. Fixed assets
(1) Recognition criteria of fixed assets
Fixed assets refer to the tangible assets held for the purpose of producing commodities, rendering services, renting
or business management with useful lives exceeding one fiscal year. Fixed assets will only be recognized when all
the following criteria are satisfied:
(1) It is probable that the economic benefits relating to the fixed assets will flow into the Company;
(2) The costs of the fixed assets can be measured reliably.
(2) Basis of recognition and method of measurement of fixed assets by financing lease
(3) Method of provision for impairment of fixed assets
The fixed assets are depreciated at straight-line-method, and the depreciation rates are determined as follows
based on the results from estimated net residual values (0% - 10% of original values) deduction by original value
and estimated service life:
Category Estimated useful life (Year) Estimated residual rate Annual depreciation rate
Houses and buildings 20-28 0-10.00% 3.56-4.5
Machinery equipment 4-5 0-10.00% 18-22.04
Electronic equipment 4.5-5 0-10.00% 18-22.04
Transportation equipment 5-20 0-10.00% 6.33-23.75
(4) Testing and provision methods of impairment of fixed assets
Balance sheet date, the fixed assets are valued according to the lower one of its book value and the recoverable
amount. If the recoverable amount of the fixed assets is less than the book value, write down the book value of the
assets to the recoverable amount, the write-down amount is recognized as the assets impairment loss and reckoned
in the current profit and loss, and withdraws the corresponding provision for impairment of assets at the same time.
The impairment loss of the fixed assets cannot be reversed in the subsequent accounting periods once recognized.
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(5) Other explanation
16. Construction in progress
(1) Category of construction in progress
Construction in progress is measured on an individual basis.
(2) Criteria and timing for conversion of construction in progress into fixed assets
Construction-in-progress is transferred into fixed assets when it is ready for its intended use based on actual cost.
When a construction-in-progress is ready for its intended use but the actual cost is not yet determined, the
estimated cost incurred up to the date when the construction-in-progress is ready for its intended use should be
transferred into fixed asset and depreciated according to the companys accounting policy. The cost of the fixed
asset will be adjusted when the actual cost of the fixed asset is determined; however, no adjustments will be made
with regard to the amount depreciated since the construction-in-progress is transferred into fixed asset.
(3) Testing and provision methods of impairment of construction in progress
Balance sheet date, the Company measures the construction in process according to the lower one of its book
value and the recoverable amount, withdraws the provision for impairment of construction in process according to
the balance between the book value and the recoverable amount of the single assets and reckons in the current
profit and loss, and withdraws the corresponding provision for impairment of assets at the same time. The
impairment loss of construction in process cannot be reversed in the subsequent accounting periods once
recognized.
17. Borrowing costs
(1) Recognition principles of capitalization of borrowing costs
The borrowing costs of the Company which can be directly attributable to the purchase or production of the assets
qualifying for capitalization shall be capitalized and recorded in related assets cost; other borrowing expenses are
confirmed as expenses upon occurrence according to the occurrence amount and recorded in current profit and
loss.
Assets qualifying for capitalization represent those fixed assets, investment property and inventory etc. which
require quite a long time of purchase or production activities to reach the conditions for planned use or be ready
for sale.
Borrowing costs start to capitalize when the following conditions are met:
(1) Assets expenditures, which include the expenditures occurred for purchasing or producing assets qualifying for
capitalization through payment of cash, transfer of non cash assets or assuming interest debts, have occurred;
(2) Borrowing costs have occurred;
(3) Purchase or production activity for reach of the conditions for planned use or ready for sale has occurred.
If abnormal interruption occurs during the purchasing or producing assets qualifying for capitalization and the
64
承德南江股份有限公司 2014 年半年度报告全文
interruption lasts over 3 months consecutively, the borrowing expenses shall stop capitalization temporarily.
Capitalization of borrowing costs should be ceased when the acquired and constructed or produced assets eligible
for capitalization have reached their intended use or sale condition.
If part items are completed and available for use separately when purchasing or producing assets qualifying for
capitalization, such part of assets shall stop capitalization in respect of their borrowing expenses.
(2) Capitalization period of borrowing costs
Capitalization period refers to the period from the beginning of capitalization to the cease of capitalization,
excluding the period of capitalization suspension of borrowing costs.
(3) Period of capitalization suspend
(4) Calculation method of capitalization amount of borrowing costs
Interest expenses (after deduction of the interest income obtained from the unused borrowing capitals as saved in
bank or investment income obtained from temporary investment) and auxiliary expenses of special borrowings are
capitalized when the assets qualifying for conditions purchased or produced reach conditions for planned use or be
ready for sale.
The interest of general borrowings which should be capitalized is calculated based on the weighted average
number of the capital expenditure that the accumulative assets expenditure exceeding special borrowings
multiplies the capitalization rate taken in general borrowings. Capitalization rate is calculated based on the
weighted average interest rate of general borrowings.
For discount or premium of borrowings, the Company determines the discount or premium amount that shall be
amortized in each accounting period under effective interest method and adjusts the interest amount for each
period.
18. Biological assets
The biological assets of the Company refer to consumptive biological assets and productive biological assets. The
consumptive biological assets including young and livestock etc., productive biological assets including eggs etc.
Biological assets are recognized upon satisfaction of the following conditions: pup
(1) the company owns or controls the biological asset due to the past transaction or proceeding;
(2) the economic benefits or service potential related to the biological assets are likely to flow into the company;
(3) cost of the biological assets can be measured reliably.
Acquisition and disposal of biological assets: cost of biological assets upon change of use is determined based on
the carrying value when use changes; the disposal income arising from disposal, damage or inventory losses of
biological assets less the carrying value and related taxes shall be recorded in current profit and loss.
The productive biological assets are initially measured according to the cost. The cost of the outsourcing
65
承德南江股份有限公司 2014 年半年度报告全文
productive biological assets includes purchase cost, related taxes and dues, transportation charge, insurance
expenses and other expenses directly belonging to the purchase of this asset. The book value of the productive
biological assets of the investors is measured by adding the value on the investment contract or the value
stipulated by agreement to the payable taxes and dues, but if the contract or agreement appoints the value as unfair,
the actual cost is determined by the fair value. The cost of the progenitive productive biological assets is
determined according to the necessary expenses occurred before achieving the anticipated production and
management purposes, including the feed cost, labor cost and indirect expenses to be shared, etc.
The closing or the management and feeding costs occurred after achieving the predetermined production and
management purposes of the productive biological assets of the Company are reckoned in the current profit and
loss.
The Company withdraws and depreciates the productive biological assets, and the depreciation adopts the
straight-line depreciation method. The Company determines its service life and anticipated net residual value
according to the nature and service condition of the productive biological assets and the anticipated
implementation way of the related economic interests. At the end of the year, the Company re-checks the service
life, anticipated net residual value and depreciation method of the productive biological assets, and adjusts
correspondingly if it differs from the original assessment.
The expected service life, anticipated net residual value and yearly depreciation of the productive biological assets
of the Company are as follows:
Category Estimated useful life (Year) Estimated residual rate Annual depreciation rate
Eggs 1 5% 95%
Balance sheet date, the Company measures the productive biological assets in accordance with the lower one of its
book value and the recoverable amount, withdraws the provision for impairment of productive biological assets
according to the balance between the book value and the recoverable amount of the single assets. The impairment
loss of the productive biological assets cannot be reversed in the subsequent accounting periods once recognized.
Gain and disposal of the biological assets: The cost of the biological assets after changing the purposes are
recognized according to the book value at the time when changing the purposes; when the biological assets being
sold, damaged or having inventory losses, reckon the balance after deducting the book value and related taxes and
dues from the disposal consideration in the current profit and loss.
19. Intangible assets
(1) Measurement of intangible assets
(1) The Company initially measures intangible assets at cost on acquisition;
The cost of an externally acquired intangible asset comprises its purchase price, related taxes and surcharges and
any other directly attributable expenditure of preparing the asset for its intended use. If the deferred payment of
purchase price of intangible assets exceeding normal credit terms is substantially of financial nature, the cost of
intangible assets should be recognized at the present value of the purchase price.
The intangible assets which the debtor uses to pay back the debt in debt restructuring should be recognized at the
66
承德南江股份有限公司 2014 年半年度报告全文
fair value of the intangible assets. The difference between the book value of restructured debts and the fair value
of intangible assets used to pay back the debt should be recorded into the current profit and loss;
On the premise that non-monetary assets trade is of commercial nature and the fair value of the assets traded in or
out can be measured reliably, the intangible assets traded in by the trade of non-monetary assets should be
recognized at the fair value of the assets traded out, unless any unambiguous evidence indicates that the fair value
of the assets traded in is more reliable; as to the non-monetary assets trade not meeting the aforesaid premise, the
book value of the assets traded out and related taxes payable should be recognized as the cost of the intangible
assets traded in, with gains or losses not recognized.
The intangible assets obtained by the absorption and merger of an enterprise under common control are
recognized at the book value of the merged enterprise; the intangible assets obtained by the absorption and merger
of an enterprise not under common control are recognized at the fair value.
Costs of intangible assets developed internally and independently include: the costs of materials and labor services
used to develop the intangible assets, the registration fee, the amortization of other patents and franchise used in
the process of development, the interest of capitalization, and other direct expenses for preparing the intangible
assets for their intended use.
(2) Subsequent measurement
The useful life of intangible asset is analyzed on acquisition.
As for intangible assets with limited useful lives, straight-line amortization method is adopted in the period when
the intangible assets generate economic benefit for enterprise; if the period when the intangible assets generate
economic benefit for enterprise cannot be forecasted, the intangible assets should be deemed as those with
indefinite useful lives and should not be amortized.
(2) Estimation of useful life of intangible assets with limited useful life
Every end of the year, re-checking the useful life and amortization method for intangible assets with limited useful life
Being checking, the useful life and amortization method shows no difference with the previous estimation
Item Expected useful life References for expected useful life
Patent right, trademark right,
non-patents and outsourcing 5 years Within the terms of contractual rights or other statutory rights
software
Land Use Right 50 years Within the terms of contractual rights or other statutory rights
(3)Judgment basis for the intangible assets with indefinite useful lives
Re-checking the useful life of intangible assets with indefinite useful lives at every end of the year
Being checking, there is no intangbile assets with indefinite usefull lives been found
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承德南江股份有限公司 2014 年半年度报告全文
(4)Provision of impairment reserve for intangible assets
Balance sheet date, the Company measures the intangible assets in accordance with the lower one of its book
value and the recoverable amount, withdraws the provision for impairment of intangible assets according to the
balance between the book value and the recoverable amount, the corresponding asset impairment loss is reckoned
in the current profit and loss. The intangible assets impairment loss cannot be reversed in the subsequent
accounting periods once recognized.
(5)Specific criteria for the division of research phase and development phase for internal research and
development projects of the Company
Research phase: Scheduled innovative investigations and research activities to obtain and understand scientific or
technological knowledge.
Development phase: Apply the research outcomes or other knowledge to a plan or design prior to a commercial
production or use in order to produce new or essentially-improved materials, devises, products, etc.
The expenses occurred during the research stage of internal R&D projects are accounted into profits and losses of
the current period.
(6) Calculation of expenditure for internal R&D projects
Expenditure in the research stage of inner research development project should be included in the profit or loss for
the current period in which they are occurred.
Expenditure in the development stage should be recognized as intangible assets when all of the following
conditions are met:
(1) It is technically feasible that the intangible assets are completed for the purpose of their uses or sales;
(2) The Company has an intention to complete the intangible assets for their uses or the sale;
(3) The way of how the intangible assets generate economic benefits including the ability to prove the products
generated by the intangible assets have a market or the intangible assets itself have a market, and the ability to
prove its serviceability if the intangible assets will be used internally;
(4) The Company has sufficient technical and financial resources and other supporting resources to complete the
research and development of such intangible assets and is capable of using or selling such intangible assets;
(5) Expenditure occurred in the development stage of such intangible assets can be accurately calculated;
20. Long-term Deferred Expenses
Amortized equally during the benefit period for those long-term expenses whose has a defined benefit period, for
those without a defined benefit period, amortized equally within 5 years.
21. Accrual liability
When the Company is involved in proceedings, debt guarantees, onerous contracts and reorganization events, if
such events may require delivery of assets or rendering of services in the future and the amounts of such events
can be reliably measured, estimated liabilities are recognized.
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承德南江股份有限公司 2014 年半年度报告全文
(1) Recognition criteria of accrued liability
The Company recognizes the estimated liabilities when obligations related to contingencies satisfy all the
following conditions:
-- This obligation is a present obligation of the Company;
-- The performance of such obligation is likely to result in outflow of economic benefits from the Company; and
-- The amount of the obligation can be measured reliably.
(2) Method of measuring the estimated liabilities
Estimated liabilities shall be initially measured at the best estimate of the expenditure required to settle the related
present obligation.
The Company, when determining the best estimate, has had a comprehensive consideration of risks with respect to
contingencies, uncertainties and the time value of money. If the time value of money is significant, the best
estimate shall be determined after discounting the relevant future outflow of cash.
The best estimate will be dealt with separately in the following circumstances:
The expenses required have a successive range (or band), in which the possibilities of occurrence of each result
are the same, and the best estimate should be determined as the middle value for the range, i.e. the average of the
upper and lower limit.
The expenses required does not have a successive range (or band), or although there is a successive range (or
band), the possibilities of occurrence of each result are not the same, if the contingency is related to individual
item, the best estimate should be determined as the most likely amount; where the contingency is related to a
number of items, the best estimate should be calculated and determined according to the possible results and the
relevant possibilities.
When all or part of the expenses necessary for the settlement of an estimated liability of the Company is expected
to be compensated by a third party, the compensation should be separately recognized as an asset only when it is
virtually certain that the compensation will be received. The amount recognized for the compensation should not
exceed the book value of the estimated liability.
22. Share-based payment and equity instrument
(1) Category of share-based payment
Share-based payment represents the transaction pursuant to which the Company grants equity instruments or bears
the liabilities as determined based on the equity instrument for the purposes of provision of services by its
employees and other parties, including two methods namely equity-settled and cash-settled.
(2) Recognition method for fair-value of equity instrument
For equity instruments which are settled at equity for exchange of services provided by employees, it shall be
measured based on the fair value of equity instruments granted to employees; for exchange of services provided
by others, it shall be measured based on its fair value as of the acquisition date. If the fair value of others service
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承德南江股份有限公司 2014 年半年度报告全文
can not be measured reliably, it shall be measured based on the fair value of the services as of the acquisition date.
Fair value of equity instruments is determined under the following methods:
(1) If active market exists, determined based on the quotation in the active market;
(2) If no active market exists, determined under evaluation technology, including taking references to the price
used by willing parties for the latest transactions, the prevailing fair value of other financial instruments in
substantially same nature, cash flow discount method and option pricing model.
(3) Basis of best estimation for vesting equity instrument
The Company determines the best estimate of exercisable equity instrument based on the subsequent information
such as the latest available change of number of exercisable employees.
(4) Relevant accounting treatment for implementation, amendment and termination of shares payment
plan
23. Revenue
(1) Criteria of time for good sales recognized
When the Company has transferred significant risks and rewards of ownership of the goods to the buyer; the
Company retains neither continuous management rights associated with ownership of the goods sold nor effective
control over the goods sold; the relevant amount of revenue can be measured reliably; it is highly likely that the
economic benefits associated with the transaction will flow into the enterprise; and the relevant amount of cost
incurred or to be incurred can be measured reliably, revenue from sales of goods shall be recognized.
(2) Recognition basis of revenue from transferring the use right of assets
The economic benefits related to transactions are probable to flow into the Company; and amount of revenue can
be measured reliably
(3) Recognition criteria of revenue from rendering of service
(1) Amount of the revenue can be measured reliably;
(2) Relevant economic profit probably flows into the enterprise;
(3) Progress of completion of the transaction can be measured reliably;
(4) Cost occurred during transactions and those is about to occurred can be measured reliably
(4) Recognition basis and method of construction progress completion while recognize revenue from labor
service providing and from construction contract by percentage of completion method
24. Government grants
(1) Category
Government subsidies are monetary assets and non-monetary assets acquired free of charge by the Company from
the government. Government subsidies are classified into government subsidies related to assets and government
subsidies related to income.
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承德南江股份有限公司 2014 年半年度报告全文
(2) Accounting treatment
Government subsidies related to acquisition and construction of fixed assets, intangible assets and other long-term
assets are recognized as deferred income, and included in non-operating income by stages within the useful life of
the assets acquired and constructed;
The government grants related to earnings are recognized as deferred earnings while obtained if they are used for
compensating the relevant expenses or losses of the Company in subsequent periods, and are recorded in the profit
or loss in the period of recognition of relevant expenses; if they are used to compensate the relevant expenses or
losses occurred of the Company, they are directly recorded in the non-operation revenue of the current period
while obtained.
25. Deferred income tax assets and deferred income tax liabilities
(1) Recognition basis for the deferred income tax assets
The deferred income tax assets arising from deductible temporary difference shall be recognized to the amount of
taxable income which it is most likely to obtain and which can be deducted from the deductible temporary
difference.
(2) Recognition basis for the deferred income tax liabilities
The Company shall recognize the accrued taxable temporary differences of the current period and prior periods as
a deferred income tax liability. Excluding the temporary difference arising from the transaction by goodwill and
through non-business combination which, at the time of transaction, the accounting profits will not be affected,
nor will be taxable amount is affected.
26. Operation lease and financing lease
(1) Accounting treatment of operation lease
(1) The lease payment paid for leasing assets is amortized under straight line method in the entire lease period
without deduction of lease-for-free period, and is recorded in current expenses. The initial direct expenses paid by
the Company related to lease transactions shall be recorded in current expenses.
If asset leaser assumes the lease related expenses which shall be assumed by the Company, the Company shall
deduct such expenses from the total rental and amortize based on the deducted rental expenses during the lease
period and record in current expenses.
(2) The lease fee collected by the Company for assets lease is amortized under straight line method in the entire
lease period without deduction of lease-for-free period, and is realize as lease income. The initial direct expenses
paid by the Company related to lease transactions shall be recorded in current expenses; for significant amount, it
shall be capitalized and recorded in current income in phases under the same basis as realization of lease income
in the entire lease period.
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承德南江股份有限公司 2014 年半年度报告全文
If the Company assumes the lease related expenses which shall be assumed by the lessee, the Company shall
deduct such expenses from the total rental income and allocate based on the deducted rental expenses during the
lease period.
(2) Accounting treatment of financing lease
(1) Assets leased by financing lease: the Company accounts the leased assets at the lower of the fair value of
leased assets and present value of the minimum lease payment on the inception date of the lease, and the
minimum lease payment is deemed as the accounting value of long term account payables, and the difference is
taken as unrealized financing expenses.
The Company amortizes the unrealized financing expenses at effective interest rate method in the asset lease
period and records in finance expenses.
(2) Assets leased out by financing lease: on the inception date of the lease, the Company realizes the difference
between the sum of financing lease account receivables and unguaranteed remaining value and its present value as
unrealized financing income which is conformed as lease income in future periods involving lease. The initial
direct expenses occurred by the Company related to lease transaction shall be recorded in the initial measurement
of financing lease account receivables. And income realized in lease period shall be reduced accordingly.
(3) Accounting treatment of sale and leaseback
27. Changes of main accounting policy and estimate
Whether main accounting policy and estimate of the Company changed in the Period or not
□Yes √No
No changes in principal accounting policies and estimates in reporting period
(1) Changes of accounting policies
Whether there have changes of major accounting policies in the Period or not
□ Yes √ No
(2) Changes in accounting estimates
Whether have changes in accounting estimates in report period
□ Yes √ No
28. Error correction of previous accounting
Whether has error correction of previous accounting occurred in this period
□ Yes √ No
No error correction of previous been found
(1) Retrospective restatement method
Whether has accounting errors of previous period with retrospective restatement method in reporting period or not
□ Yes √ No
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承德南江股份有限公司 2014 年半年度报告全文
(2) Prospective application method
Whether has accounting errors of previous period with prospective application method in reporting period or not
□ Yes √ No
29. Other major accounting policy, accounting estimation and preparation method for financial statement
V. Taxes
1. Main tax category and tax rate:
Tax category Tax calculation evidence Tax rate
VAT Taxable added value 17%
Business tax Taxable turnover 5%
Urban maintenance and construction tax Turnover tax payable 5%
Enterprise income tax Taxable income 25%
Land appreciation tax Appreciation value or pre-requisitioned Progressive rates
Rental income or original value of the
Property tax 12% or 1.2%
property
Income tax rate for vary branches and plants
2. Tax preference and approvals
Approved by "CXGSSYGZi[2013]No.004", Chengde Nanjiang Ecological Agriculture Co., Ltd. can get the
privilege of deducting the income from the agriculture, forestry, animal husbandry and fishery by rule.
3. Other explanation
VI. Business Combination and Consolidated Financial Statements
1. Subsidiaries
(1) Subsidiaries acquired by means of establishment or investment
In RMB
Actua Other Prop The sum The balance after
Propo
Nature l balance ortio Con of money the parent
Regist rtion
Regist of invest of items n of solid Minori in companys
Full
Type ration er Business scope of ation ty
name voti or equity minority owners equity
place busine ment constitut
capital share
ss amou e net ng not equity writing down the
s held
nt at investm right which is excess of the
73
承德南江股份有限公司 2014 年半年度报告全文
period ent in used to current loss
-end subsidia write undertaken by
ry down the minority
actually minority shareholders of
interest eth subsidiary
over the share
enjoyed by
minority
shareholders in
the original
owners equity of
the subsidiary
Investment on
industry of new
energy, new
materials, mining
Cheng and dressing,
de modern
Wholl
Nanjia Industr agriculture, real
y-own Cheng 90,000 90,00
ng ial industry and 100.0 100.
ed de ,000.0 0,000. -- Y -- -- --
Invest invest construction 0% 00%
subsidi City 0 00
ment ment engineering;
ary
Co., investment
Ltd.*1 management;
investment
consultation;
import-export
trading
Cheng
de Agricu
Cultivation and
Nanjia Wholl ltural
sale of cereals,
ng y-own cultiva
Cheng 10,000 edible mushrooms, 10,00
Ecolog ed tion 100.0 100.
de ,000.0 fruits and 0,000. -- Y -- -- --
ical sub-su and 0% 00%
City 0 vegetables and 00
Agricu bsidiar crop
herbs; livestock
lture y farmin
breeding and sales
Co., g
Ltd.*2
Cheng Wholl Paper- Production and
US$ 2
de y-own Cheng makin sales of the 75,00
50 100.0 100.
Xingy ed de g high-end coated 0,000. -- Y -- -- --
millio 0% 00%
e subsidi City industr paper and serial of 00
n
Paper ary y kraft board paper
74
承德南江股份有限公司 2014 年半年度报告全文
makin
g
makin
g Co.,
Ltd.
*3
Nanjia
ng
Wholl
Asia US$ 2
y-own Hon International
Invest Tradin 0 797,5 100.0 100.
ed Kon investment and -- Y -- -- --
ment g millio 38.34 0% 00%
subsidi China trading
Co., n
ary
Ltd.
*4
Research and
development of
Cheng grapheme and its
de Holdin application
Morsh g Cheng R&D 50,000 materials, power 50,00
90.00 90.0 4,974,
Techn sub-su de of ,000.0 batteries and 0,000. -- Y -- --
% 0% 905.67
ology bsidiar City energy 0 battery materials, 00
Co., y high performance
Ltd.*5 membrane
materials,
nano-materials.
Cheng
de
Huijin Wholl
Proper
g y-own
Cheng ty Property
Proper ed 500,00 500,0 100.0 100.
de manag management -- Y -- -- --
ty sub-su 0.00 00.00 0% 00%
City ement service
Servic bsidiar
service
e Co., y
Ltd.
*6
Other explanation on subsidiary obtained by establishment or investment:
*1. Chengde Nanjiang Investment Co., Ltd (shorted as Nanjiang Investment) was founded by Rongyida on 9 th Oct. 2012. Original
register capital was RMB 50 million wholly invested by shareholder Rongyida. Since Rongyida transferred 100% equity worth
RMB50 million to Nanjiang Company, Nanjiang Company held 100% equity of Nanajiang Investment after the transfer. On 6 th Jan.
2013, Nanjiang Company added RMB40 million to Nanjiang Investment thus the register capital reached RMB90 million.
*2. Chengde Nanjiang Ecological Agriculture Co., Ltd (shorted as Ecological Agriculture) was founded by Nanjiang Investment on
24th Oct. 2012 with original capital of RMB5 million which was wholly invested by Nanjiang Investment. On 18th Apr. 2013,
Nanjiang Investment added RMB5 million to Ecological Agriculture thus register capital reached RMB10 million .
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承德南江股份有限公司 2014 年半年度报告全文
*3. Chengde Xingye Papermaking making Co., Ltd (shorted as Xingye Papermaking ) was founded jointly by Nanjiang Company
and (Hong Kong) Zhanxi International Group Co., Ltd (hereinafter referred to as Hong Kong Zhanxi) on 26 th Oct. 2001 authorized
by the Approval Certificate issued by WJMZSAZ[2001] NO. 0065. Ruled by the Response to Joint Operation on Fund-Adding to
Chengde Xingye Papermaking making Co., Ltd, which was issued on 28th Oct. 2002 by Ministry of Foreign Trade and Economic
Cooperation of the Republic of China (former Commerce Ministry) authorized by WJMZEH[2001]NO. 969, register capital has to be
raised to US$ 250 million from US$ 100 million; newly added register capital should be paid out within 3 years since operation
certificate was changed in accordance with methods both parties ruled according to the contract and article of association. The
paid-up capital of Xingye Papermaking was US$ 100 million. Its register capital didnt paid out within required period though
shareholder had investment involved taking up 40% of the whole register capital, including Nanjiang Company gave US$75 million
with 75% equity and Hong Kong Zhanxi invested US$ 25 million with 25% equity. In December of 2006, affected by smuggler affair
on the largest shareholder Wang Shuxian and other senior directors of Nanjiang Company, Xingye Papermaking suspended all its
th
business, which led sharp loss to business. On 8 Dec. of 2008, Hebei Province Chengde Intermediate People's Court confirmed
liquidation for Xingye Papermaking raised by Chengde Yonghe and Cement Co., Ltd, by the Civil Ruling (2008) CMPZ NO. 13.
th
On 11 of Mar. 2009, Hebei Province Chengde Intermediate Peoples Court approved reconciliation request raised by Xingye
Papermaking by the Civic Ruling (2008) CMPZ NO. 13-2. On 23rd of Apr 2009, Hebei Province Chengde Intermediate People's
Court confirmed that largest shareholder of Xingye ever stole the name of Hong Kong Zhanxi and set up a false foreign-capital
corporation, by the Criminal Ruling (2009) JXEZZ NO. 44. On 10th May of 2009, Hebei Province Chengde Intermediate People's
Court confirmed that Xingye Papermaking had reconciled with its creditor on 8 th of May 2009 and ended the reconciliation
procedure, by the Civil Ruling (2008) CMPZ NO. 13-3. In Oct of 2012, the Chengde Intermediate Peoples Court issued Civil
Mediation Agreement (2011) CMCZ NO. 76 which showed that Wang Shuxian reached a reconciliation agreement with Nanjiang
Company and that Wang Shuxian coordinated small shareholders of Xingye Papermaking to give up their own equity as well as
interests. As return, Nanjiang Company agreed to transfer its 20% equity from Suning Banhe, land of industry-park (34.03 acres),
plant (25596.87sqm) and No. 131 land (44.4 acres) to Wang Shuxian. After reconciliation, Nanjiang Company wholly owns Xingye
Papermaking .
*4. Nanjiang Asia Investment o., Ltd (shortened as Nanjiang Asia) was founded by Nanjiang Company on 14th Nov. 2013, located in
Hong Kong, with register capital of US$ 20 million, the paid-up was US$ 797, 583.34.
*5. Chengde Morsh Technology Co., Ltd (shortened as Morsh Technology) was founded jointly by Nanjiang Investment and Ningbo
Morsh Technology on 24th Jan. 2013 with register capital of RMB50 million, including Nanjiang Investment invested RMB45
million taking up 90% of the total investment; Ningbo Morsh Technology invested RMB5 million taking up 10%.
*6. Chengde Huijing Property Service Co., Ltd (shortened as Huijing Property) was founded by Nanjiang Investment on 18 th Nov.
2013 with register capital of RMB500,000. Shareholder Nanjiang Investment invested RMB500,000 wholly owning it.
(2) Subsidiaries acquired by business combination under the common control
In RMB
The balance after
Balance
State Amount the parent
of other
Invest in companys owners
items
ment Voti m minority equity writing
Regi material Minori
amou Holdi ng interest down the excess of
strati Busine Register ly ty
nt ng right e used for the current loss
Name Type on ss ed Business scope forming interes
actual propo prop writing undertaken by
plac nature capital net t
at rtion ortio n down minority
e investm
period n minority shareholders of the
ent to t gain and subsidiary over the
-end
subsidia
loss share enjoyed by
ry s minority
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承德南江股份有限公司 2014 年半年度报告全文
shareholders in the
com original owners
equity of the
b subsidiary
i
n
e
d
or
n
o
t
Devel Development
Chengde
Who o of
Nanjian
lly-o p Real
g Real
wne Che m
Estate; import and
Estate 10,000,0 100.0 100.
d ngde e 1.00 -- Y -- -- --
export business of
Develop 00.00 0% 00%
subs City nt
text ware, apparel
ment
idiar of manufacturing and
Co., Ltd.
y Real clothing; rental
*
estate service
Other explanation on subsidiary obtained by enterprise combines under the common control
*Chengde Nanjiang Real Estate Development Co., Ltd (previously named Chengde Rongyida Real Estate Development Co., Ltd)
was set up on 20th Feb. 2009 with register capital of RMB 10 million, including Wang Fei invested RMB9 million taking up 90% of
the total capital. The rest RMB one million was raised by Chen Liping, taking up 10%. On 27th July 2009, Wang Fei and Chen Liping
transferred all their shares to the controlling shareholder Chen Rong. At the same time, Chen Rong transferred 100% shares to
Nanjiang Holding with RMB1.00. After the transfer, Nanjiang Holding wholly owned the Company. On 14th March 2014, as
approved by Chengde County Commercial Bureau, the Company changed its name to Chengde Nanjiang Real Estate Development
Co., Ltd.
(2) Subsidiaries acquired by business combination not under the common control
In RMB
Balance Amount The balance after
of other State in the parent
Investm items Voti minority companys owners
Regi Minori
Busin ent material Holdi ng m interest equity writing
Busine stere ty
Registratio amount ly ng right used for down the excess of
Name Type ss d ess interes
n place actual at forming propo prop e writing the current loss
nature capit t
scope period-e net rtion ortio down undertaken by
al n minority
nd investm n minority
ent to gain and shareholders of the
subsidia t loss subsidiary over the
77
承德南江股份有限公司 2014 年半年度报告全文
ry share enjoyed by
minority
shareholders in the
c original owners
equity of the
o subsidiary
m
b
i
n
e
(
Y
/
N
)
Intern
Runhua ational
Rural Water 30,0 tradin
Holding Interna 20,222
(Tianjin) 00,0 g of 9,000,0 30.00 53.4
subsidiar Tianjin tional -- Yes ,910.8 -- --
International 00.0 plastic 00.00 % 3%
y trading 3
Trade Co., 0 raw
Ltd. * materi
als
Other explanation on subsidiary obtained by enterprise combines not under the same control
*Runhua Rural Water (Tianjin) International Trade Co., Ltd (shortened as Runhua RW) was founded on 28 th Aug. 2008 after Tianjin
Binhai New District Commercial Administration Bureau registered and approved, with corporation Certificate with registration No.
120192000028688. Original register capital was RMB30 million, including, Runhua RW Industrial Development Company invested
RMB 4 million with 13.34% ratio, Yang Shengbao invested RMB one million with ratio of 3.33%, Wang Qianying invested RMB2
million with ratio of 6.67%, Ren Peiwen invested RMB2.01 million with ratio of 6.7%, Zhang Xiaofan invested RMB one million
with ratio of 3.33%, Lan Chunhong invested RMB9.03 million with ratio of 30.10%, Zhao Qinghua invested RMB7 million with
ratio of 23.33%, Jia Zhenghong invested RMB3 million with ratio of 10.00% and Li Kai invested RMB960,000 with ratio of 3.2%.
On 25th June 2013, in accordance with the signed equity transfer agreement, Lan Chunhong and Zhao Qinghua respectively
transferred 6.67% and 23.33% of shares they held from the Company to Nanjiang Holding. After transfer Nanjiang Holding invested
RMB9 million taking up 30% of the register capital. After this change, investment ratio of shareholders particularized as: Runhua
RWDevelopment invested RMB4 million with ratio of 13.34%, Yang Shengbao invested RMB one million with ratio of 3.33%,
Wang Qianying invested RMB2 million with ratio of 6.67%, Ren Peiwen invested RMB2.01 million with ratio of 6.7%, Zhang
Xiaofan invested RMB one million with ratio of 3.33%, Lan Chunhong invested RMB7.03 million with ratio of 23.43%, Jia
Zhenghong invested RMB3 million with ratio of 10.00%, Li Kai invested RMB960,000 with ratio of 3.2%. Nanjiang holding
invested RMB9 million with ratio of 30%.
78
承德南江股份有限公司 2014 年半年度报告全文
2. Explanation on changes of consolidation range
Explanation on changes of consolidation range
□ Applicable √ Not-applicable
VII. Notes to major items in consolidated financial statements
1. Monetary fund
In RMB
Closing amount Opening amount
Item Amount in Converting Amount in Converting
Amount in RMB Amount in RMB
foreign currency rate foreign currency rate
Cash: -- -- 234,434.02 -- -- 19,146.58
RMB -- -- 234,434.02 -- -- 19,146.58
Bank savings: -- -- 69,102,811.85 -- -- 77,962,341.48
RMB -- -- 62,514,882.90 -- -- 75,093,993.26
USD 1,070,720.48 6.1528 6,587,928.95 470,460.11 6.0969 2,868,348.22
Other monetary fund: -- -- 8,896,903.16 -- -- 11,445,403.16
RMB -- -- 8,896,903.16 -- -- 11,445,403.16
Total -- -- 78,234,149.03 -- -- 89,426,891.22
Separate explanation is required for accounts with restricted application purposes, deposited overseas and of potential recovery risks
arising from pledge, mortgage or frozen:
Item Closing amount Opening amount
Margin for housing mortgage 1,096,903.16 1,045,403.16
Margin for note payable 7,800,000.00 10,400,000.00
Total 8,896,903.16 11,445,403.16
The margin unable to use at any time are excluded in the cash flow statement while prepared by the Company
2. Account receivables
(1) Classified by categories
In RMB
Closing amount Opening amount
Categories Book balance Bad debt reserve Book balance Bad debt reserve
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
Account receivable of bad debt provision withdrawal by combination
Age group 3,854,492.6 100.00% 6,167.40 100.00% 123,348.0 100.00% 6,167.40 100.00%
79
承德南江股份有限公司 2014 年半年度报告全文
0 0
3,854,492.6 123,348.0
Subtotal of group 100.00% 6,167.40 100.00% 100.00% 6,167.40 100.00%
0 0
3,854,492.6 123,348.0
Total -- 6,167.40 -- -- 6,167.40 --
0 0
Explanation for category of account receivables:
Account receivable with single significant amount and withdrawal bad debt provision separately at period-end
□ Applicable √ Not-applicable
Account receivable provided for bad debt reserve under aging analysis method in the groups:
√ Applicable □ Not-applicable
In RMB
Closing amount Opening amount
Age Book balance Book balance
Bad debt reserve Bad debt reserve
Amount Proportion Amount Proportion
within 1 year
Including: -- -- -- -- -- --
Subtotal of within
3,854,492.60 100.00% 6,167.40 123,348.00 100.00% 6,167.40
1 year
Total 3,854,492.60 -- 6,167.40 123,348.00 -- 6,167.40
In combination, withdrawal proportion of bad debt provision based on balance proportion: Account receivables
□ Applicable √ Not-applicable
In combination, withdrawal proportion of bad debt provision based on other methods: Account receivables
□ Applicable √ Not-applicable
Account receivable with minor single amount but with withdrawal bad debt provision for single item at period-end
□ Applicable √ Not-applicable
(2) Account receivables due from the shareholders holding 5% or above voting shares of the Company
during the reporting period
In RMB
Closing amount Opening amount
Name Bad debt provision Bad debt provision
Book balance Book balance
accrual accrual
(3) Top 5 account receivable
In RMB
Name Relationship with the Amount Terms Proportion in total
80
承德南江股份有限公司 2014 年半年度报告全文
Company account receivables (%)
Beijing Bo Lu Jing Hua
Non- related party 2,635,500.00 Within 1 year 68.37%
Technology Co., Ltd.
Beijing Xiangeqing
Industry & Trade Co., Associated corporate 738,676.00 Within 1 year 19.16%
Ltd.
Shanghai Guozhe
Non- related party 322,130.00 Within 1 year 8.36%
Trading Co., Ltd.
Dou Yujun Non- related party 120,000.00 Within 1 year 3.11%
Electricity Authority of
Non- related party 25,575.60 Within 1 year 0.66%
Chengde County
Total -- 3,841,881.60 -- 99.66%
(4) Account receivables due from related parties
In RMB
Proportion in total account
Name of the company Relationship with the Company Amount
receivables (%)
Beijing Xiangeqing Industry
Associated corporate 738,676.00 19.16%
& Trade Co., Ltd.
Total -- 738,676.00 19.16%
3. Other account receivables
(1) Classify by category
In RMB
Closing amount Opening amount
Book balance Bad debt reserve Book balance Bad debt reserve
Categories
Proportio Proportio Proportio
Amount Amount Amount Proportion Amount
n n n
Other receivable with
single significant amount
1,209,273.00 7.24% 1,209,273.00 34.57% 1,209,273.00 14.42% 1,209,273.00 34.57%
and withdrawal bad debt
provision separately
Other account receivable of bad debt provision withdrawal by combination
13,639,063.6
Age group 81.64% 341,921.88 10.03% 5,318,030.55 63.42% 341,921.88 10.03%
1
Subtotal of group 13,639,063.6 81.64% 341,921.88 10.03% 5,318,030.55 63.42% 341,921.88 10.03%
81
承德南江股份有限公司 2014 年半年度报告全文
1
Other account receivable
with minor single
amount but withdrawal 1,857,951.91 11.12% 1,857,951.91 54.50% 1,857,951.91 22.16% 1,857,951.91 54.50%
bad debt reserves on a
single basis
16,706,288.5
Total -- 3,409,146.79 -- 8,385,255.46 -- 3,409,146.79 --
2
Explanation for category of other receivables:
Other receivable with single significant amount and withdrawal bad debt provision separately at period-end
√ Applicable □ Not-applicable
In RMB
Other receivable Book balance Bad debt Accrual proportion Reasons
Claims obtained from
1,209,273.00 1,209,273.00 100.00% Over 3 years
auction
Total 1,209,273.00 1,209,273.00 -- --
In combination, accounts whose bad debts provision was accrued by age analysis: Other receivable
√ Applicable □ Not-applicable
In RMB
Closing amount Opening amount
Book balance Book balance
Age
Proporti Bad debt reserve Proporti Bad debt reserve
Amount Amount
on on
Within 1 year
Including:
13,401,152.61 98.25% 242,138.52 5,085,113.76 95.62% 242,138.52
Subtotal of within 1 year 13,401,152.61 98.25% 242,138.52 5,085,113.76 95.62% 242,138.52
1-2 years 233,911.00 1.72% 97,783.36 228,916.79 4.30% 97,783.36
2-3 years 4,000.00 0.03% 2,000.00 4,000.00 0.08% 2,000.00
Total 13,639,063.61 -- 341,921.88 5,318,030.55 -- 341,921.88
In combination, withdrawal proportion of bad debt provision based on balance proportion: Other receivables
□ Applicable √ Not-applicable
In combination, withdrawal proportion of bad debt provision based on other methods: Other receivables
□ Applicable √ Not-applicable
Other receivable with single minor amount while withdrawal bad debt provision separately at period-end
√ Applicable □ Not-applicable
In RMB
82
承德南江股份有限公司 2014 年半年度报告全文
Other receivable Book balance Bad debt reserve Accrual proportion Accrual reasons
Un-collectible by
Wang Ansheng 141,000.00 141,000.00 100.00%
estimated
Un-collectible by
Bao Degang 356,838.00 356,838.00 100.00%
estimated
Un-collectible by
Yan Qizhong 200,000.00 200,000.00 100.00%
estimated
Un-collectible by
Liu Chengquan 300,000.00 300,000.00 100.00%
estimated
Un-collectible by
Li Tianhong 217,424.66 217,424.66 100.00%
estimated
Un-collectible by
Zhou Haihong 642,689.25 642,689.25 100.00%
estimated
Total 1,857,951.91 1,857,951.91 -- --
(2) Other receivables due from the shareholders holding 5% or above voting shares of the Company during
the reporting period
In RMB
Closing amount Opening amount
Name Bad debt amount Bad debt amount
Book balance Book balance
accrual accrual
(3) Nature or content of other receivables with significant amount
In RMB
Nature or content of the
Name Amount Proportion in total other receivable
amount
County housing and
3,420,000.00 Migrant workers margin 20.47%
Urban&Rural Planning bureau
Chengde Great Wall
1,970,000.00 Security fee 11.79%
Construction Group
Shanxi Zhuozhong Trade Co.,
1,800,000.00 Open credit 10.77%
Ltd.
Authority of County Non-Tax Margin for land
1,500,000.00 8.98%
Income purchased
Total 8,690,000.00 -- 52.01%
Explanation
83
承德南江股份有限公司 2014 年半年度报告全文
(4) Top 5 other receivable
In RMB
Relationship with the Proportion in total other
Name Amount Terms
Company receivable
County housing and
Urban&Rural Planning Non- related party 3,420,000.00 Within 1 year 20.47%
bureau
Chengde Great Wall
Non- related party 1,970,000.00 Within 1 year 11.79%
Construction Group
Shanxi Zhuozhong Trade
Non- related party 1,800,000.00 Within 1 year 10.77%
Co., Ltd.
Authority of County
Non- related party 1,500,000.00 Within 1 year 8.98%
Non-Tax Income
Xingcheng Company Non- related party 750,000.00 Within 1 year 4.49%
Total -- 9,440,000.00 -- 56.50%
(5) Account receivable from related parties
In RMB
Proportion in total other
Name of the company Relationship with the Company Amount
receivables (%)
Wuchan Minfeng (Tianjin)
Related party 670,000.00 4.01%
Chemical Trade Co., Ltd.
Total -- 670,000.00 4.01%
4. Payment in advance
(1) Payments in advance by aging
In RMB
Closing amount Opening amount
Age
Amount Proportion Amount Proportion
Within 1 year 62,315,227.15 92.15% 28,533,344.69 84.33%
1-2 years 105,000.00 0.16% 101,600.00 0.30%
2-3 years 5,201,365.53 7.69% 5,201,365.53 15.37%
Total 67,621,592.68 -- 33,836,310.22 --
Explanation for aging analysis of payments in advance:
84
承德南江股份有限公司 2014 年半年度报告全文
(2) Top 5 of payments in advance
In RMB
Relationship with the
Name Amount Time Reason for unsettlement
Company
Chengde Great Wall Engineering amount paid
Non- related party 42,000,000.00 Within 1 year
Construction Group in advance
SABIC (Shanghai) Amount of goods paid in
Non- related party 16,709,916.31 Within 1 year
Trading Co., Ltd. advance
Amount of housing
Tianjin Jishang
Non- related party 5,201,365.53 2-3 years purchased paid in
Investment Co., Ltd.
advance
Chengde Yongwang
Engineering amount paid
Constructional Non- related party 1,900,000.00 Within 1 year
in advance
Engineering Co., Ltd.
Handan Hanyi
Engineering amount paid
Architectural Non- related party 500,000.00 Within 1 year
in advance
Engineering Co., Ltd.
Total -- 66,311,281.84 -- --
Explanation for major units paid in advance:
(3) Shareholders holding 5% (5% included) or above voting shares of the Company in payments in advance
during the reporting period
In RMB
Closing amount Opening amount
Name Bad debt amount Bad debt amount
Book balance Book balance
accrual accrual
(4) Explanation on account paid in advance
5. Inventory
(1) Classification
In RMB
Closing amount Opening amount
Item Depreciation Depreciation
Book balance Carrying value Book balance Carrying value
provision provision
Raw materials 736,985.37 -- 736,985.37 836,393.84 -- 836,393.84
85
承德南江股份有限公司 2014 年半年度报告全文
Stock products 7,351,296.58 -- 7,351,296.58 15,270,790.02 -- 15,270,790.02
Revolving materials 18,498.40 -- 18,498.40 18,498.40 -- 18,498.40
Consumptive
2,613,775.70 -- 2,613,775.70 2,113,905.42 -- 2,113,905.42
biological assets
Development cost 239,513,564.50 -- 239,513,564.50 163,568,661.40 -- 163,568,661.40
Development
7,734,161.18 -- 7,734,161.18 7,642,776.18 -- 7,642,776.18
products
Development cost 181,547.08 -- 181,547.08 1,118,939.06 -- 1,118,939.06
Total 258,149,828.81 -- 258,149,828.81 190,569,964.32 -- 190,569,964.32
(2) Inventory impairment provision
In RMB
Decrease during this period
Opening book Provision for this
Kinds of inventories Closing book Closing book balance
balance period Reversal
balance
(3) Particular about inventory impairment provision
Proportion of the reversal
Accrual basis for inventory Reason for reversal during the amount during the year in the
Item
impairment provision period period-end balance of the
inventory (%)
Explanation on inventory
6. Other current assets
In RMB
Item Closing amount Opening amount
Overpaid VAT 1,318,700.52 3,362,445.37
Land VAT paid in advance 2,352,147.44 1,115,712.87
business tax in advance 3,366,245.67
Total 7,037,093.63 4,478,158.24
Explanation on other current assets
7. Investment for affiliated enterprise and joint ventures
In RMB
Equity Proportion of
Total operation
Invested proportion held voting rights in Total assets at Total liability Total net assets Net profit in
revenue in this
company by the invested period-end at period-end at period-end this period
period
Company (%) company (%)
I. Joint venture
86
承德南江股份有限公司 2014 年半年度报告全文
II. Associated company
Wuchan
Minfeng
(Tianjin) 49.00% 49.00% 78,528,622.09 69,643,272.04 8,885,350.05 188,186,435.30 -178,934.54
Chemical
Trade Co., Ltd.
Runhua RW
(Tianjin)
Water-saving 31.75% 31.75% 12,915,253.15 5,911,480.25 7,003,772.90 5,083,107.74 119,935.75
Technology
Co., Ltd.
Explanation on major accounting policy and accounting estimation in joint venture and affiliated enterprises difference from the
policy and estimation of the Company:
8. Long-term equity investment
(1) Details of long-term equity investment
In RMB
Explanati
on on the
incongruit
Proportio y in share Impairme
Proportio
Balance Balance n of holding nt
Increase/d n of share Impairme Cash
Invested Calculatio Investme at at voting proportio provision
ecrease(+, holding in nt bonus this
company n method nt cost period-be period-en rights in n and of
-) invested provision period
gin d invested voting accruing
company
company proportio this year
n in
invested
company
Wuchan
Minfeng
(Tianjin) 4,410,000 4,441,499 -87,677.9 4,353,821
Equity 49.00% 49.00% -- -- -- --
Chemical .00 .45 2 .53
Trade
Co., Ltd.
Runhua
RW
2,000,000 2,185,406 2,223,480
(Tianjin) Equity 38,074.80 31.75% 31.75% -- -- -- --
.00 .04 .84
Water-sav
ing
87
承德南江股份有限公司 2014 年半年度报告全文
Technolo
gy Co.,
Ltd.
6,410,000 6,626,905 -49,603.1 6,577,302
Total -- -- -- -- - -- --
.00 .49 2 .37
(2) Limited ability for capital transfer to investment enterprise
In RMB
Long-term equity investment that has
un-recognized investment losses
limited ability of capital transfer to Restriction reasons
accumulative in period
investment enterprise
Explanation on long-term equity investment
(1) Wuchan Minfeng (Tianjin) Chemical Trade Co., Ltd had risen up the register capital of shareholders on 21st Dec. 2012, totaling
RMB 9 million included, Shanxi Wuchan Minfeng Chemistry Co., Ltd invested RMB 4.59 million with ratio of 51%. Subordinate
Runhua RW invested RMB 4.41 million with ratio of 49%.
(2) Runhua RW (Tianjin) Water-Saving Technology Co., Ltd obtained the corporation certificate on 14th Oct. 2011 with register
capital of RMB 6.3 million included, Runhua RW Industrial Development invested RMB 3 million with ratio of 47.619%. Subsidiary
Runhua RW invested RMB 2 million with ratio of 31.746%. Langfang Chunyuan Minor Watering Engineer Co., Ltd invested RMB
one million with ratio of 15.873. Zhang Heping invested RMB300,000 with ratio of 4.7619%.
9. Fixed assets
(1) Particular about fixed assets
In RMB
Book balance at Decrease in this Book balance at
Item Increase in this period
period-begin period period-end
I. total of book balance: 13,856,628.90 47,091.00 -- 13,903,719.90
Including: Houses and
8,095,437.08 -- -- 8,095,437.08
buildings
Machinery
1,208,815.43 -- -- 1,208,815.43
equipment
Transportation tools 3,836,318.14 -- -- 3,836,318.14
Other
716,058.25 47,091.00 -- 763,149.25
equipment
Book balance at Increase during Accrual in this Decrease in this Balance at
--
period-begin this period period period period-end
II. total of accumulated
2,560,275.29 -- 571,455.19 -- 3,131,730.48
depreciation:
Including: Houses and
1,230,506.40 -- 153,813.30 -- 1,384,319.70
buildings
88
承德南江股份有限公司 2014 年半年度报告全文
Machinery
52,877.32 -- 60,044.82 -- 112,922.14
equipment
Transportation tools 1,073,148.07 -- 267,149.86 -- 1,340,297.93
Other
203,743.50 -- 90,447.21 -- 294,190.71
equipment
Book balance at Balance at
-- --
period-begin period-end
III. total net value of fixed
11,296,353.61 -- 10,771,989.42
assets
Including: Houses and
6,864,930.68 -- 6,711,117.38
buildings
Machinery
1,155,938.11 -- 1,095,893.29
equipment
Transportation tools 2,763,170.07 -- 2,496,020.21
Other
512,314.75 -- 468,958.54
equipment
Other
--
equipment
V. total book value of fixed
11,296,353.61 -- 10,771,989.42
assets
Including: Houses and
6,864,930.68 -- 6,711,117.38
buildings
Machinery
1,155,938.11 -- 1,095,893.29
equipment
Transportation tools 2,763,170.07 -- 2,496,020.21
Other
512,314.75 -- 468,958.54
equipment
Depreciation in this period amounting to 571,455.19 Yuan; original price transfer from construction in progress to fixed assets
amounting as Yuan
(2) Fixed assets leasing-out by operational lease
In RMB
Types Closing book value
Houses and buildings 1,208,512.05
(3) Fixed assets without property certificates
Item Reasons for un-completed certificate Times expected for certificate completed
Assets have released the mortgage,
Houses and buildings Un-estimated
ownership procedure still in process
Explanation on fixed assets:
89
承德南江股份有限公司 2014 年半年度报告全文
Plants architecture was listed as mortgage for bank loan of previous Dixian Holding and its bankrupt subsidiary. It
had been transferred to the Company during restructure and bankruptcy process. Though Hebei Chengde
Intermediate Court issued the Note to Peoples Court to Assist Execution to Chengde Housing Urban and Rural
Construction Bureau, which required it to assist transfer the housing right of architecture of No.000196 and
No.000108 to the Company, various involving departments engagement led delay of the transfer of relevant
assets, still being in process.
10. Productive biological assets
(1) Measured by cost
In RMB
Book balance at Book balance at
Item Increase in this period Decrease in this period
period-begin period-end
I. Plantation
II. Livestock
Layer 144,010.71 383,580.04 -- 527,590.75
Rural layer 114,179.63 63,346.25 -- 177,525.88
III. Forestry
IV. Marine industry
Total 258,190.34 446,926.29 -- 705,116.63
11. Intangible assets
(1) Particular about intangible assets
In RMB
Book balance at Book balance at
Item Increase in this period Decrease in this period
period-begin period-end
I. Total original book value 31,855,457.22 -- 6,400,126.17 25,455,331.05
Land Use Right 31,627,457.22 -- 6,400,126.17 25,227,331.05
Software 228,000.00 -- -- 228,000.00
II. Total accumulated
3,133,803.81 304,544.24 624,405.24 2,813,942.81
amortization
Land Use Right 2,990,803.81 281,744.24 624,405.24 2,648,142.81
Software 143,000.00 22,800.00 -- 165,800.00
III. Total net book value of
28,721,653.41 -304,544.24 5,775,720.93 22,641,388.24
intangible assets
Land Use Right 28,636,653.41 -281,744.24 5,775,720.93 22,573,918.86
Software 85,000.00 -22,800.00 -- 62,200.00
Land Use Right -- -- -- --
90
承德南江股份有限公司 2014 年半年度报告全文
Software -- -- -- --
Total carrying amount of
28,721,653.41 -304,544.24 5,775,720.93 22,641,388.24
intangible assets
Land Use Right 28,636,653.41 -281,744.24 5,775,720.93 22,579,188.24
Software 85,000.00 -22,800.00 -- 62,200.00
The amount amortized in this period accounting as 304,544.24 Yuan
12. Goodwill
In RMB
Closing
Name of invested company or Increase during the Decrease during
Opening balance Closing balance impairment
items formed goodwill period this period
provision
Combined goodwill arising from
1,809,762.89 -- -- 1,809,762.89 --
subsidiary purchased
Total 1,809,762.89 -- -- 1,809,762.89 --
Explain the impairment testing method and withdrawal method for impairment provision of goodwill:
13. Long-term deferred expense
In RMB
Increase in this Amortization Reasons for other
Item Opening amount Other decrease Closing amount
period during this period decrease
Renovation costs 7,811,572.52 2,845,963.72 792,738.72 -- 9,864,797.52 --
Total 7,811,572.52 2,845,963.72 792,738.72 -- 9,864,797.52 --
Explanation on long-term deferred expense:
14. Deferred income tax assets and deferred income tax liabilities
(1) Net amount of deferred income tax assets and deferred income tax liabilities before deduction
Deferred income tax assets and deferred income tax liability that recognized
In RMB
Item Closing amount Opening amount
Deferred income tax assets:
Assets depreciation reserves 834,239.22 834,223.19
Subtotal 834,239.22 834,223.19
Deferred income tax liability:
Details of un-recognized deferred income tax assets
In RMB
Item Closing amount Opening amount
Deductible temporary differences 72,254.02 72,254.02
Deductible losses 137,486,697.69 137,486,697.69
91
承德南江股份有限公司 2014 年半年度报告全文
Total 137,558,951.71 137,558,951.71
The deductible losses of un-recognized deferred income tax assets are expired in the follow year:
In RMB
Year Closing amount Opening amount Note
2014 114,543,457.05 114,543,457.05 --
2015 -- -- --
2016 -- -- --
2017 22,943,240.64 22,943,240.64 --
Total 137,486,697.69 137,486,697.69 --
Details of taxable difference and deductible differences
In RMB
Amount of temporary differences
Item
Amount at period-end Amount at period-begin
Items of taxable differences
Item of deductible differences
(2) Net amount of deferred income tax assets and deferred income tax liabilities after deduction
Item of deferred income tax assets and liability after mutual offset
In RMB
Deductible of Deductible of
Deferred income tax temporary Deferred income tax temporary
assets and liability differences of assets and liability differences of
Item
after mutual offset at payable taxes after after mutual offset at payable taxes after
period-end mutual offset at period-begin mutual offset at
period-end period-begin
Deferred income tax assets 834,239.22 -- 834,223.19 --
Details of deferred income tax assets and liability after mutual offset
In RMB
Item Current mutual offset amount
Explanation on deferred income tax assets and deferred income tax liability
15. Details of asset impairment provision
In RMB
Book balance at Increase in this Decrease in this period Book balance at
Item
period-begin period Reversal Written-off period-end
I. Bad debt reserve 3,415,314.19 -- -- -- 3,415,314.19
Total 3,415,314.19 -- -- -- 3,415,314.19
92
承德南江股份有限公司 2014 年半年度报告全文
Explanation on asset impairment provision:
16. Note payable
In RMB
Type Closing amount Opening amount
Bank acceptance 19,500,000.00 26,000,000.00
Total 19,500,000.00 26,000,000.00
Amount expired in next accounting period: 0.00 Yuan
Explanation on note payable:
17. Account payables
(1) Account payables
In RMB
Item Closing amount Opening amount
Within 1 year 7,189,487.12 3,361,499.82
More than one year to two years 286,757.79 286,757.79
More than two years to three years 100.00 100.00
Over 3 years 12,273.55 12,273.55
Total 7,488,618.46 3,660,631.16
(2)Accounts payable to shareholders holding 5% (5% included) or above voting shares of the Company
In RMB
Name Closing amount Opening amount
(3) Explanation on major account payable with over one year age:
Name Amount Reasons on unsettled Note
Chengde Licheng Construction and 281,157.79 Final payment of the project ---
Installation Work Co., Ltd.
18. Account received in advance
(1) Account received in advance
In RMB
Item Closing amount Opening amount
Within 1 year 153,840,376.73 53,821,113.16
More than one year to two years -- --
More than two years to three years -- --
Over 3 years -- --
Total 153,840,376.73 53,821,113.16
93
承德南江股份有限公司 2014 年半年度报告全文
(2)Accounts received in advance to shareholders holding 5% (5% included) or above voting shares of the
Company
In RMB
Name Closing amount Opening amount
(3) Explanation on major account received in advance with over one year age:
19. Wages payable
In RMB
Book balance at Book balance at
Item Increase in this period Decrease in this period
period-begin period-end
I. Wage, bonus,
allowance and 76,950.00 3,688,450.07 3,507,838.07 257,562.00
subsidy
III. Social insurance
30,686.90 513,674.07 533,365.97 10,995.00
charge
Basic medical
20,424.20 145,564.20 152,437.40 13,551.00
insurance premium
Basic old-age
9,047.50 303,318.90 314,638.40 -2,272.00
insurance premiums
Unemployment
599.80 28,315.82 29,199.62 -284.00
insurance expense
Industrial injury
215.50 22,659.85 22,875.35 --
insurance premium
Birth insurance
399.90 13,815.30 14,215.20 --
premium
IV. Housing fund 133,913.00 136,013.00 -2,100.00
VI. Other 6,097,726.60 6,577.43 6,189.21 6,098,114.82
Total 6,205,363.50 4,342,614.57 4,183,406.25 6,364,571.82
No arrears in wages payable
Outlay for labor union and staff educational charge amounting as 0.00 Yuan; no non-monetary welfare and no compensation for
dismiss of labor relationship
The wages payable expected to pay and the amount for payment:
20. Tax payable
In RMB
Item Closing amount Opening amount
94
承德南江股份有限公司 2014 年半年度报告全文
VAT -267,225.23 132,688.59
Business tax -3,366,245.67 67,762.28
Enterprise income tax 3,953,440.14 12,078,983.62
Personal income tax 777.65 35,510.93
City maintenance and construction tax -168,161.67 19,182.58
Land appreciation tax 2,993,193.91 2,753,192.71
Educational surcharge -100,903.50 7,871.26
Stamp tax 109,390.35 34,936.86
Local educational surcharge -67,307.42 5,247.55
Property tax 2,888,250.17 2,888,250.17
Embankment protection fees 1.56 3,278.03
Other 3,425.71
Total 5,978,636.00 18,026,904.58
Explanation on tax payable: if the local taxation bureau agrees mutual adjustment between vary branches and plants, explain taxation
calculation:
21. Other payables
(1) Other payables
In RMB
Item Closing amount Opening amount
Within 1 year 30,025,895.72 35,447,066.13
More than one year to two years 119,168.49 119,168.49
More than two years to three years 47,779.91 47,779.91
Over 3 years 430,969.17 430,969.17
Total 30,623,813.29 36,044,983.70
(2) Others payable due to shareholders units holding over 5% (5% included) voting shares of the Company
In RMB
Name Closing amount Opening amount
(3) Explanation on other account payable with over one year age
(4) Explanation on unit of major connected amount for other account payable
Name Amount Nature or content
Wuchan Minfeng (Tianjin) Chemical Trade 17,500,000.00 Current amount
Co., Ltd.
Shanxi Zhuozhong Trade Co., Ltd. 1,319,199.72 Futures investment amount agent
Chengde Chengjin Commerc & Trade Co., 800,000.00 Current amount
Ltd.
Chengde Yongwang Construction 518,593.95 Quality assurance of engineering
Engineering Co., Ltd.
95
承德南江股份有限公司 2014 年半年度报告全文
Da Hua CPA 250,000.00 Auditing fee
22. Share capital
In RMB
Increased (decreased) in this year
Opening Shares Closing
New shares
amount Bonus shares converted from Other Sub-total amount
issued
public reserve
Total shares 706,320,000.00 -- -- -- -- -- 706,320,000.00
Explanation on share capital changes, if there has capital increase/decrease in reporting period, disclosed the CPAs name and
verification documents; for company limited within 3 years operation, explain the net assets before establishment; for those company
limited changed from limited liability company, explain the verification condition while established.
23. Capital reserves
In RMB
Item Opening amount Increase in this period Decrease in this period Closing amount
Capital premium (share
390,597,031.55 -- -- 390,597,031.55
premium)
Other capital reserves 65,873,219.23 -- -- 65,873,219.23
Total 456,470,250.78 -- -- 456,470,250.78
Explanation on capital reserve
24. Surplus reserves
In RMB
Item Opening amount Increase in this period Decrease in this period Closing amount
Statutory surplus reserves 76,791,550.17 -- -- 76,791,550.17
Total 76,791,550.17 -- -- 76,791,550.17
Explanation on surplus reserve, if share capital converted from surplus reserve, remedy deficit and dividend distributed, explain
relevant resolutions:
25. Retained profits
In RMB
Withdrawal or allocation
Item Amount
ratio
Retained profits at the end of last year before
-1,029,880,318.18 --
adjustment
Retained profits at the beginning of the year after
-1,029,880,318.18 --
adjustment
96
承德南江股份有限公司 2014 年半年度报告全文
Add: The net profits belong to owners of patent
19,331,154.91 --
company of this period
Retained profits at the end of the period -1,010,549,163.27 --
Details about adjusting the retained profits at the beginning of the year:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the
undistributed profits at the beginning of the year amounting to 0 Yuan.
2) The changes in accounting policies affect the undistributed profits at the beginning of the year amounting to 0 Yuan.
3) The major accounting error correction affects the undistributed profits at the beginning of the year amounting to 0 Yuan.
4) Merge scope changes caused by the same control affect the undistributed profits at the beginning of the year amounting to 0 Yuan.
5) Other adjustments affect the undistributed profits at the beginning of the year amounting to 0 Yuan.
The undistributed profits explain that the company initial public offering bonds should clearly state if the accumulated profits are
decided to be shared by old and new shareholders by general meeting of stockholders before issuing; while the company should
clearly disclose that the profits in the dividends payable belong to old shareholders after auditing if the general meeting of
stockholders decides the accumulated profits are allocated and shared by old shareholders before issuing
26. Operating income and cost
(1) Operating income and cost
In RMB
Item Amount of this period Amount of last period
Main operating income 216,029,370.47 16,572,925.76
Other operating income 803,045.62 245,752.28
Operating cost 218,143,237.30 12,003,739.65
(2) Main business (By industries)
In RMB
Amount of this period Amount of last period
Industry
Operating income Operating cost Operating income Operating cost
Agriculture 2,094,025.07 3,148,746.79 -- --
Business 213,935,345.40 214,526,444.89 -- --
Real estate -- -- 16,572,925.76 11,839,675.80
Total 216,029,370.47 217,675,191.68 16,572,925.76 11,839,675.80
(3) Main business (By products)
In RMB
Products Amount of this period Amount of last period
97
承德南江股份有限公司 2014 年半年度报告全文
Operating income Operating cost Operating income Operating cost
Agricultural products 2,094,025.07 3,148,746.79 -- --
Chemical materials 213,935,345.40 214,526,444.89 -- --
Real estate sales -- -- 16,572,925.76 11,839,675.80
Total 216,029,370.47 217,675,191.68 16,572,925.76 11,839,675.80
(4) Main business (By districts)
In RMB
Amount of this period Amount of last period
District
Operating income Operating cost Operating income Operating cost
Chengde 2,094,025.07 3,148,746.79 16,572,925.76 11,839,675.80
Tianjin 213,935,345.40 214,526,444.89 -- --
Total 216,029,370.47 217,675,191.68 16,572,925.76 11,839,675.80
(5) The operating income of the top five customers of the Company
In RMB
Customer name Primary business income The percentage in all operating income of the Company
Wuchan Minfeng (Tianjin)
121,847,191.24 56.19%
Chemical Trade Co., Ltd.
Beijing Bo Lu Jing Hua
8,362,179.49 3.86%
Technology Co., Ltd.
Guangdong Huarunfeng
5,698,777.72 2.63%
Investment Co., Ltd.
Yuanda Petrifaction Co., Ltd. 3,941,025.64 1.82%
Hebei Zhonglian Plastic
Technology Development Co., 2,655,410.26 1.22%
Ltd.
Total 142,504,584.35 65.72%
Explanation on operating income
27. Business tax and surcharges
In RMB
Item Amount of this period Amount of last period Calculating and payment standards
Business tax 157,927.92 828,646.28 5%
City maintenance and construction 6,991.68 41,432.31 5%
98
承德南江股份有限公司 2014 年半年度报告全文
tax
Educational surtax 6,991.67 41,432.31 3%, 2%
Land VAT 63,603.66 Progressive rates
Total 235,514.93 911,510.90 --
Explanation on business tax and surcharges
28. Sales expense
In RMB
Item Amount of this period Amount of last period
Transport charge 1,056,036.04 --
Lump sum 192,222.35 --
工资 Salary 143,778.73 --
Production costs of panel model 125,142.00 --
Agency fee 59,528.49 --
Printing costs 16,388.00 --
Repair charge 11,761.02 --
Advertising fees 4,200.00 --
Storage fee 4,284.45 --
Other 132,925.70 --
Total 1,746,266.78 --
29. Administration expenses
In RMB
Item Amount of this period Amount of last period
Wages 2,578,207.47 1,402,682.26
Tenure tax 1,620,097.64 1,282,051.08
Business entertainment 847,398.76 1,080,986.77
Business-travel expense 691,122.01 391,394.40
Welfare expenses 478,858.62 229,856.80
Interabettor agency 632,223.81 1,238,637.12
Office allowance 602,910.60 276,619.94
Depreciation 453,503.99 607,310.45
Amortization of intangible assets 304,544.24 326,314.56
Material consumption 163,047.65 147,581.18
99
承德南江股份有限公司 2014 年半年度报告全文
Amortization of low value consumables 154,716.43 171,033.00
Repair charge 117,343.98 46,786.30
Basic pension 262,718.49 113,883.60
Medical insurance 136,350.88 50,954.70
Employment injury insurance 16,230.25 8,586.60
Unemployment insurance 23,031.82 10,938.36
Maternity insurance 12,975.30 5,334.18
Housing fund 110,717.00 69,602.16
Utilities 83,333.06 113,155.90
Stamp duty 239,314.26 161,159.40
Long-term deferred expenses 39,648.00 39,648.00
Insurance expenses 35,798.47 11,618.94
Property tax 9,576.08 4,488.04
Advertising fee 8,930.00 --
Union due 6,577.43 1,441.78
Vehicle and vessel use tax 6,280.00 4,120.00
Organization costs -- 30,580.00
Travelling expenses -- 21,983.00
Other 556,971.62 150,428.54
Total 10,192,427.86 7,999,177.06
30. Financial expenses
In RMB
Item Amount of this period Amount of last period
Interest expenses 730,671.89
Interest income -152,529.12 -313,277.34
Profit/loss on exchange 25,975.42 --
Other 93,778.58 10,628.12
Total -32,775.12 428,022.67
31. Investment income
(1) Particulars about investment income
In RMB
100
承德南江股份有限公司 2014 年半年度报告全文
Item Amount of this period Amount of last period
Long-term equity investment income calculated on
-49,603.12 --
equity method
Other 171,000.00 77,868.49
Total 121,396.88 77,868.49
32. Asset impairment loss
In RMB
Item Amount of this period Amount of last period
I. Bad debt loss -- -1,447,846.06
Total -- -1,447,846.06
33. Non-operating income
(1) Non-operating income
In RMB
Amount reckoned into
Item Amount of this period Amount of last period current non-recurring
gains/losses
Total income from disposal of non-current
34,647,779.07 94,211,992.12 34,647,779.07
assets
Including: income from disposal of fixed
-- 26,348,307.45 --
assets
Income from disposal of intangible
34,647,779.07 67,863,684.67 34,647,779.07
assets
Other 189,689.31 23,514.89 189,689.31
Total 34,837,468.38 94,235,507.01 34,837,468.38
Explanation on non-operating income
In accordance with Chengde Peoples Governments specialized note [2013] No.12 and county governments note [2012] No.59, we
transferred lands of CXGY(2012)Z NO.31 and CXGY(2013)Z NO.33 and got gains from disposal of non-circulating assets
RMB34,647,779.07.
34. Non-operating expenditure
In RMB
Amount reckoned into
Item Amount of this period Amount of last period
current non-recurring
101
承德南江股份有限公司 2014 年半年度报告全文
gains/losses
Donating 1,000,000.00 -- 1,000,000.00
Other 3,304,076.70 283,931.85 3,304,076.70
Total 4,304,076.70 283,931.85 4,304,076.70
Explanation on non-operating expenditure
On 4 May 2014, with purpose of implementing social responsibility and charitable giving, the Company donated one million Yuan to
Nanjiang Education Fund of Chengde Education Bureau, donations are used to support the poverty-stricken students with good
character as well as the excellent teachers
35. Income tax expense
In RMB
Item Amount of this period Amount of last period
Current income tax calculated by tax laws and relevant
-23,637.85 4,944,803.47
regulations
Total -23,637.85 4,944,803.47
36. Calculation of basic earnings per share and diluted earnings per share
The earning per share calculated in line with the No.9-Specific Provisions on Information Disclosure for
Companies Offering Their Securiteis to the Public -Calcualtion and Disclosure on ROE and EPS ( 2010 Revise)
(CSRC Annoucement No. [2010] No.2) and Explanatory Annoucement No.1 on Information Disclosure for
Companies Offering Their Securiteis to the Public – Extraordinary Profit and Loss (2008) (CSRC Annoucement
No. [2008] No.43) are as:
1. Calculation results
Current profit Current Period Last Period
Basic EPS Diluted EPS Basic EPS Diluted EPS
Net profits belong to common stock 0.03 0.03 0.12 0.12
stockholders of the Company (I)
Net profits belong to common stock -0.02 -0.02 -0.01 -0.01
stockholders of the Company after duducted
non-recurring gains/losses (II)
2. Calculation of EPS
Item Serial Current period Last period
Net profit attributable to ordinary shareholders of the Company 1 19,331,154.91 86,021,262.29
Non-recurring gains/losses attributable to ordinary shareholder of parent 2 30,533,391.68 93,951,575.16
company after deducted income tax impact
Net profit attributable to ordinary shareholders of the Company after 3=1-2 -7,930,312.87
deducted non-recurring gains/losses -11,202,236.77
102
承德南江股份有限公司 2014 年半年度报告全文
Total shares amount at period-begin 4 706,320,000.00 706,320,000.00
Number of increased shares due to reserves conversion into share capital 5 --- ---
or distribution of dividends in Period
Number of increased shares due to issue of new shares or debt-to-equity 6 --- ---
in Period
Number of months from next month with shares increased due to new 7 --- ---
shares offering or debt-to-equity swap to end of the reporting period
Number of decreased shares due to repurchase in Period 8 --- ---
Number of accumulated months from the next month of shares decrease 9 --- ---
to the end of the reporting period
Number of contraction of shares in the reporting period 10 --- ---
Number of months in the reporting period 11 6 6
The weighted average number of ordinary shares outstanding (II) 12=4+5+6×7÷11-8 706,320,000.00 706,320,000.00
×9÷11-10
Weighted average of outstanding ordinary shares that adjsuted due to 13 706,320,000.00 706,320,000.00
enterprise combined under the same control (I) Note: (directly entered the
amount of previous line if no need to adjsuted)
Basic EPS (I) 14=1÷13 0.12
0.03
Basic EPS (II) 15=3÷12 -0.01
-0.02
Interest of dilutive potential ordinary share with expenses recognized and 16 --- ---
other influence factors
Income tax rate 17 --- ---
Conversion charge 18 --- ---
Number of shares increased due to conversion or exercise from 19 --- ---
convertible bonds, warrant and stock option etc.
Diluted EPS (I) 20=[1+(16-18)×(1 0.12
00%-17)]÷(13+19) 0.03
Diluted EPS (II) 21=[3+(16-18)×(1 -0.01
00%-17)]÷(12+19) -0.02
37. Notes to statement of cash flow
(1) Other cash received in relation to operation activities
In RMB
Item Amount
Accounts current 51,648,801.00
Interest income 152,529.12
Other 830,948.54
Total 52,632,278.66
103
承德南江股份有限公司 2014 年半年度报告全文
Explanation on other cash received in relation to operation activities
(2) Other cash paid in relation to operation activities
In RMB
Item Amount
Disbursement costs 7,884,655.36
Donation costs 1,000,000.00
Accounts current 160,000.00
Other 3,594,655.98
Total 12,639,311.34
Explanation on other cash paid in relation to operation activities
(3) Cash received from other investment activities
In RMB
Item Amount
Margin of bank paper collected 2,600,000.00
Total 2,600,000.00
Explanation on cash received from other investment activities
(4) Cash paid related with other financing activities
In RMB
Item Amount
Margin of housing mortgage loan paid 51,500.00
Total 51,500.00
Explanation on cash paid related with other financing activities
38. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
Supplementary information Amount in this period Amount in last period
1. Net profit adjusted to cash flow of operation activities: -- --
Net profit 17,226,186.78 86,008,714.00
Add: assets impairment losses -1,447,846.06
Depreciation of fixed assets, consumption of oil assets and
1,165,311.98 653,935.37
depreciation of productive biology assets
Amortization of intangible assets 304,544.24 326,314.56
Amortization of long-term deferred expenses 792,738.72 119,824.21
Loss from disposal of fixed assets, intangible assets and
-34,754,036.24 -94,211,992.12
other long-term assets(gain is listed with “-”)
Financial expenses (gain is listed with “-”) 729,196.33
104
承德南江股份有限公司 2014 年半年度报告全文
Investment losses(gain is listed with “-”) -121,396.88 -77,868.49
Decrease of inventory (increase is listed with “-”) -67,579,864.49 -157,683,244.61
Decrease of operating receivable accounts (increase is listed
19,683,358.07 4,903,207.58
with “-”)
Increase of operating payable accounts (decrease is listed
23,443,944.64 -1,894,819.49
with “-”)
Net cash flow arising from operating activities -39,839,229.21 -162,574,578.72
2. Material investment and financing not involved in cash
-- --
flow
3. Net change of cash and cash equivalents: -- --
Balance of cash at period end 69,337,245.87 84,048,144.21
Less: Balance of cash equivalent at year-begin 77,981,488.06 81,546,046.87
Net increase of cash and cash equivalents -8,644,242.19 2,502,097.34
(2) Constitution of cash and cash equivalent:
In RMB
Item Closing amount Opening amount
I. Cash 69,337,245.87 77,981,488.06
Including: stock cash 234,434.02 19,146.58
Bank deposit available for payment at any time 69,102,811.85 77,962,341.48
Ⅲ. Balance of cash and cash equivalent at year-end 69,337,245.87 77,981,488.06
Explanation on constitution of cash and cash equivalent:
VIII. Related Parties and Transactions
1. Parent company of the Company
Proportion Proportion
Final
Legal of shares of voting
Parent Relationsh Registratio Business Registered controller Organizati
Nature representat held to the right to the
company ip n place nature capital of the on code
ive Company Company
Company
(%) (%)
Explanation on parent company of the enterprise
The Company has no parent company, actral controller of the Company also is the largest shaerhodler of the Company –Mr. Wang
Dong, he holds 29.49 percent shares of the Company.
2. Subsidiary of the Company
Subsidiary Legal Proportion Proportion
Registration Business Registered Organizatio
of the Type Nature representati of shares of voting
place nature capital n code
Company ve held (%) right (%)
Real Estate
Nanjiang Holding Limited Chengde Zhao 10 million
developmen 100.00% 100.00% 68434235-0
Real Estate subsidiary liability City Yongsheng Yuan
t
105
承德南江股份有限公司 2014 年半年度报告全文
Holding Limited Shi Internationa 30 million
Runhua RW Tianjin 30.00% 53.43% 67941456-7
subsidiary liability Xiangkun l trading Yuan
Asia Holding Limited Internationa US$ 20
H.K. --- 100.00% 100.00% ---
Investment subsidiary liability l investment million
Production
Morsh Holding Limited Chengde Zhao 50 million
and sales of 90.00% 90.00% 06335124-6
Technology subsidiary liability City Yongsheng Yuan
grapheme
Property
Huijing Holding Limited Chengde Zhao 0.5 million
managemen 100.00% 100.00% 08269716-2
Property subsidiary liability City Yongsheng Yuan
t
Xingye
Papermakin Holding Limited Chengde Wang Paper-maki US$ 250
100.00% 100.00% 60125211-5
g -making subsidiary liability City Shuxian ng million
industry
Ecological Holding Limited Chengde Zhao Stock 10 million
100.00% 100.00% 05549562-9
Agriculture subsidiary liability City Yongsheng farming Yuan
Nanjiang Holding Limited Chengde Zhao 90 million
Industrial 100.00% 100.00% 05545532-8
Investment subsidiary liability City Yongsheng Yuan
3. Details of joint-venture and affiliated enterprise of the Company
Proportion
Equity
of voting
Invested Register Business Register proportion Relationshi Organizatio
Type Legal rep. rights in
company place nature capital held by the p n code
invested
Company
company
I. Joint venture
II. Associated company
Wuchan Internationa
Minfeng l trading,
(Tianjin) Zhao developmen 9,000,000.0
Commerce Tianjin City 49.00% 49.00% Y 05874083-7
Chemical Guomin t and 0
Trade Co., transfer of
Ltd. technology
Runhua RW
(Tianjin) Developme
Water-savin Shi nt and 6,300,000.0
Industry Tianjin City 31.75% 31.75% Y 58327621-9
g Xiangkun transfer of 0
Technology technology
Co., Ltd.
106
承德南江股份有限公司 2014 年半年度报告全文
4. Particulars about other related parties
Other related parties Relationship with the Company Organization code
Beijing Xiangeqing Group Co., Ltd. Associated corporate 1772721-5
Explanation on other related parties:
5. Related transaction
(1) Statement of commodity purchased and labor service received
In RMB
Amount of this period Amount of last period
Pricing way and
Ratio in Ratio in
Related party Content decision making
Amount similar Amount similar
procedures
transactions transactions
Wuchan Minfeng
(Tianjin) Chemical Agent of import goods Market price 9,827,322.60 3.80% -- --
Trade Co., Ltd.
Statement of commodity sales and labor service provided
In RMB
Amount of this period Amount of last period
Pricing way and
Ratio in Ratio in
Related party Content decision making
Amount similar Amount similar
procedures
transactions transactions
Wuchan Minfeng
(Tianjin) Chemical Sales of goods Market price 121,847,191.24 56.19% -- --
Trade Co., Ltd.
Beijing Xiangeqing
Sales of goods Market price 679,276.00 28.92% -- --
Co., Ltd.
(2) Related trusteeship/contract
Statement of trusteeship/contract
In RMB
Pricing basis of
Earnings
Trustee/contracto earnings from
Client/contractee Assets type Start date Expiry date recognized in
r trusteeship/contra
Period
ct
Statement of delegated management /package
In RMB
Trustee fee and
Pricing basis of
Trustee/contracto contract fee
Client/contractee Assets type Start date Expiry date trustee fee/
r recognized in
contract fee
Period
Explanation on related trusteeship/contract
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承德南江股份有限公司 2014 年半年度报告全文
(3) Related leasing
Statement of rent out
In RMB
Leasing earnings
Pricing basis of
Lessor Lessee Assets type Start date Expiry date recognized in
leasing earnings
Period
Statement of accepting leases
In RMB
Pricing basis of Rent recognized
Lessor Lessee Assets type Start date Expiry date
rent in Period
Explanation on related leasing
(4) Related guarantee
In RMB
Whether the
Guarantor Secured party Guarantee amount Start date Expiry date guarantee
implemented or not
Runhua RW Runhua Rural Water
Industrial (Tianjin)
20,000,000.00 2013-10-24 2014-10-24 No
Development Co., International Trade
Ltd. Co., Ltd.
Runhua Rural Water
(Tianjin)
Lan Chunhong 22,000,000.00 2013-10-24 2014-10-24 No
International Trade
Co., Ltd.
Explanation on related guarantee
(1) On 17th of Oct. 2012, Binhai New District branch of China CITIC Bank Corporation Limited credited the Company RMB 20
million (contract code: 2013JYZBZ NO.BS0956, duration: 24th of Oct. 2013 to 24th of Oct. 2014). Runhua RW Industrial
Development Company guaranteed for the Company a series of debts rising from the above credit (including but not limited to
various borrowings, notes, guarantees, letters of credit etc. businesses).
(2) On 21st of Oct. 2013, Binhai New District branch of China CITIC Bank Corporation Limited credited the Company RMB 22
million (contract code: 2013JYZBZ NO. BS0956-1, duration: 24th of Oct. 2013 to 24th of Oct. 2014). The second-largest shareholder
Lan Chunhong guaranteed for the Company a series of debts rising from the above credit (including but not limited to various
borrowings, notes, guarantees, letters of credit etc. businesses).
(5) Borrowed funds from related party
In RMB
Related party Borrowing amount Start date Expiry date Note
Inter-bank borrowing
Lending transaction
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(6) Assets transfer, debt restructure of related party
In RMB
Amount of this period Amount of last period
Ratio in Ratio in
Related
Transaction type Content Pricing principle similar similar
party Amount Amount
transactio transactio
ns ns
(7) Other related transactions
6. Account receivable/payable for related parties
Account receivable from related parties
In RMB
Period-end Period-begin
Item Related party
Book balance Bad debt reserve Book balance Bad debt reserve
Wuchan Minfeng
Other receivables (Tianjin) Chemical 670,000.00 -- 670,000.00 --
Trade Co., Ltd.
Wuchan Minfeng
Payment advance (Tianjin) Chemical 15,518.38 -- 1,945,944.00 --
Trade Co., Ltd.
Beijing Xiangeqing
Accounts receivables 738,676.00 -- -- --
Co., Ltd.
Account payable for related parties
In RMB
Item Related party Amount at period-end Amount at period-begin
Wuchan Minfeng (Tianjin)
Other account payable 17,500,000.00 31,000,000.00
Chemical Trade Co., Ltd.
IX. Contingency
1. Contingent liability and its financial influence formed by un-settle lawsuits or arbitration
2. Contingent liability and its financial influence formed from debt guarantee offered to other units
Other contingent liability and its financial influence
X. Commitments
1. Material commitments
2. Commitments made previously
XI. Subsequent events of balance sheet
1. Explanation on major event after balance sheet date
In RMB
Impact amount on financial Reasons of impact amount
Item Content
status and operation results unable to estimated
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2. Profit distribution after balance sheet date
In RMB
3. Other explanation after balance sheet date
On 5 August 2014, the Ludian Couty, Shaotong City, Yunnan Province suffered a 6.5 magnitude earthquake. In aspect of the attention
and support for the stricken brothers, being discussion by the management of the Company, the Company donated 500,000 Yuan to
the disaster area via the disaster relief donation account of Civil Affairs Bureau of Chengde Couty, Hubei Province.
XII. Other major event
1. Other
(1) Due to that Nanjiang Holding didnt reported an accounting error which was supposed to be disclosed before 2012, until the 2012
annual financial report. Securities Authority decided to investigate Dalu Holding for this issue. The case is that: on 6 th of April 2012,
original shareholder of the Company Chen Rong and Wang Dong signed equity transfer agreement which demonstrated that Chen
Rong transferred his 208,324,800 of shares holding from Nanjiang Holding with ratio of 29.49% in the overall capital to Mr. Wang
Dong. Nanjiang Holding recognized the managing level. The new management revised the pervious accounting errors. Since
previous management and shareholders had left Nanjiang Holding and errors had been disclosed, the investigation may not cause
influential to Nanjiang Holding.
(2) On 18th of May 2014, in accordance with Chengde Peoples Government Special note [2014] No. 10, County Government
withdrew the actual land of 26.0464 acres with number of CXGY2013 NO.019 which was owned by subsidiary Rongyida without
charge, allocating it to County Cultural and Sport & TV and Broadcast Bureau for cultural and sport activities center. Book value of
this land was RMB821, 343.02.
(3) On 9th of Apr. 2014, Mosh Technology bided the use right for national construction land with number of CXTGZ [2014] NO.03
during a listing activity held by Chengde National Land Bureau. This land was located in Liugou Toan, Beishuiquan and Pingtai
Village, with area of 35953.42 sqm, for purpose of industry, charged at RMB 6,480,000.
XIII. Principle notes of financial statements of parent company
1. Accounts receivable
(1) Accounts receivable
In RMB
Amount at period-end Amount at period-begin
Book balance Bad debt reserve Book balance Bad debt reserve
Type
Propo Proporti Proporti Proporti
Amount Amount Amount Amount
rtion on on on
Receivable of bad debt provision withdrawal by combination
100.0
Age combination 120,000.00 -- -- -- -- -- --
0%
100.0
Subtotal of group 120,000.00 -- -- -- -- -- --
0%
Total 120,000.00 -- -- -- -- -- -- --
Explanation on types of accounts receivable:
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承德南江股份有限公司 2014 年半年度报告全文
account receivable with single significant amount and withdrawal bad debt provision separately at period-end
□ Applicable √ Not-applicable
In combination, accounts whose bad debts provision was accrued by age analysis: accounts receivable
□ Applicable √ Not-applicable
In combination, withdrawal proportion of bad debt provision based on balance proportion: accounts receivable
□ Applicable √ Not-applicable
In combination, withdrawal proportion of bad debt provision based on other methods: accounts receivable
□ Applicable √ Not-applicable
Account receivable with minor single amount but with withdrawal bad debt provision for single item at period-end
□ Applicable √ Not-applicable
(2) account receivables due from the shareholders holding 5% (5% included) or above voting shares of the
Company during the reporting period
In RMB
Amount at period-end Amount at period-begin
Name Bad debt amount Bad debt amount
Book balance Book balance
accrual accrual
2. Other accounts receivable
(1) Other accounts receivable
In RMB
Amount at period-end Amount at period-begin
Book balance Bad debt reserve Book balance Bad debt reserve
Type
Propo Propo Propo Propo
Amount Amount Amount Amount
rtion rtion rtion rtion
Other receivable of bad debt provision withdrawal by combination
99.68 82.06
Age combination 21,712,832.37 4,000.00 5.41% 320,143.39 4,000.00 5.41%
% %
99.68 82.06
Subtotal of group 21,712,832.37 4,000.00 5.41% 320,143.39 4,000.00 5.41%
% %
Other account receivable
with minor single amount 94.59 17.94 94.59
70,000.00 0.32% 70,000.00 70,000.00 70,000.00
but withdrawal bad debt % % %
reserves on a single basis
Total 21,782,832.37 -- 74,000.00 -- 390,143.39 -- 74,000.00 --
Explanation on types of other accounts receivable:
Other account receivable with single significant amount and withdrawal bad debt provision separately at period-end
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承德南江股份有限公司 2014 年半年度报告全文
□ Applicable √ Not-applicable
In combination, accounts whose bad debts provision was accrued by age analysis: other accounts receivable
√ Applicable □ Not-applicable
In RMB
Amount at period-end Amount at period-begin
Book balance Book balance
Age
Proporti Bad debt reserve Proporti Bad debt reserve
Amount Amount
on on
Within 1 year
Including: -- -- -- -- -- --
21,692,832.37 99.91% -- 300,143.39 93.75% --
Subtotal of
21,692,832.37 99.91% -- 300,143.39 93.75% --
within 1 year
1-2 years 20,000.00 0.09% 4,000.00 20,000.00 6.25% 4,000.00
Total 21,712,832.37 -- 4,000.00 320,143.39 -- 4,000.00
In combination, withdrawal proportion of bad debt provision based on balance proportion: other accounts receivable
□ Applicable √ Not-applicable
In combination, withdrawal proportion of bad debt provision based on other methods: other accounts receivable
□ Applicable √ Not-applicable
Other account receivable with minor single amount but with withdrawal bad debt provision for single item at period-end
√ Applicable □ Not-applicable
In RMB
Other receivables Book balance Bad debt amount Accrual proportion Reasons
Estimated unable to
Yan Qizhong 70,000.00 70,000.00 100.00%
collected
Total 70,000.00 70,000.00 -- --
(2) Other account receivables due from the shareholders holding 5% (5% included) or above voting shares
of the Company during the reporting period
In RMB
Amount at period-end Amount at period-begin
Name Bad debt amount Bad debt amount
Book balance Book balance
accrual accrual
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承德南江股份有限公司 2014 年半年度报告全文
(3) Nature or content of other receivables with significant amount
(4) Top 5 other account receivable
In RMB
Relationship with the Proportion in total other
Name Amount Terms
Company account receivables
Chengde Nanjiang
Wholly-owned 10,137,776.70 Within 1 year 46.54%
Investment Co., Ltd.
Department of housing
and urban & rural
No relationship 3,420,000.00 Within 1 year 15.70%
planning bureau of
county
Chengde Nanjiang
Ecological Agriculture Wholly-owned 2,811,705.38 Within 1 year 12.91%
Co., Ltd.
Great Wall Group
No relationship 1,970,000.00 Within 1 year 9.04%
Company
Chengde Morsh
Controlling of subsidiary 1,040,310.00 Within 1 year 4.78%
Technology Co., Ltd.
Total -- 19,379,792.08 -- 88.97%
(5) Other account receivables due from related parties
In RMB
Proportion in total other account
Name Relationship with the Company Amount
receivables
Chengde Nanjiang Investment
Wholly-owned 10,137,776.70 46.54%
Co., Ltd.
Chengde Nanjiang Ecological
Wholly-owned 2,811,705.38 12.91%
Agriculture Co., Ltd.
Chengde Morsh Technology
Controlling of subsidiary 1,040,310.00 4.78%
Co., Ltd.
Total -- 13,989,792.08 64.23%
3. Long-term equity investment
In RMB
Calcul Share Vote Description of Countin Cash
Company ating Balance Incre Balance at holding percentage inconformity of Prov g and dividen
investmen
name method at ase period-end percentage in invested share holding ision drawing ds at
t costs
s in invested units percentage and vote impairm the
113
承德南江股份有限公司 2014 年半年度报告全文
period-be and units percentage in reser ent current
invested units reserves period
gin decre ve at the
ase current
period
chang
es
Nanjiang
53,114,29 53,114,29 53,114,29
Real Estate Cost -- 100.00% 100.00% -- -- -- --
9.73 9.73 9.73
Company
Nanjiang 90,000,00 90,000,00 90,000,00
Cost -- 100.00% 100.00% -- -- -- --
Investment 0.00 0.00 0.00
626,
Xingye
626,567,3 626,567,3 626,567,3 567,
Papermakin Cost -- 100.00% 100.00% -- -- --
28.03 28.03 28.03 328.
g making
03
Runhua 9,170,370 9,170,370 9,170,370.
Cost -- 30.00% 53.43% -- -- -- --
Rural Water .00 .00 00
5,000
ASIA 5,000,166 5,000,166.
Cost ,166. 100.00% 100.00% -- -- -- --
Investment .64 64
64
626,
5,000
783,852,1 778,851,9 783,852,1 567,
Total -- ,166. -- -- -- -- --
64.40 97.76 64.40 328.
64
03
Explanation on long-term equity investment
On 25th of June 2013, Nanjiang Holding purchased RMB 9 million shares from Runhua RW, 30% of its whole shares, becoming the
largest shareholder. All shareholders of Runhua RW approved to recognize the board of directors. 3 out of 5 directors came from
Nanjiang Holding. The second largest shareholder Lan Chunhong who held RMB 7.03 million shares from Runhua RW with ratio of
23.43% reached concerted action agreement with Nanjiang Holding. Lan Chunhong transferred part of her rights of shares to
Nanjiang Holding (expect the dividend and right to transfer). Hence, Nanjiang Holding held 53.43% shares of voting and decision
rights from Runhua RW.
4. Operating income and cost
(1) Operating income
In RMB
Item Amount of this period Amount of last period
Other operating income 4,068,045.62 20,183.93
Total 4,068,045.62 20,183.93
Operating cost 468,045.62 16,666.64
(2) Main business (by industry)
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承德南江股份有限公司 2014 年半年度报告全文
In RMB
Amount of this period Amount of last period
Industry
Operating income Operating cost Operating income Operating cost
(3) Main business (by product)
In RMB
Amount of this period Amount of last period
Product
Operating income Operating cost Operating income Operating cost
(4) Main business (by districts)
In RMB
Amount of this period Amount of last period
Districts
Operating income Operating cost Operating income Operating cost
(5) The operating income of the top five customers of the Company
In RMB
The percentage in all
Customer name Primary business income operating income of the
Company
Nanjiang Real Estate Company 3,600,000.00 88.49%
Total 3,600,000.00 88.49%
Explanation on operating income
5. Supplementary information of cash flow statement
In RMB
Supplementary information Amount of this period Amount of last period
1. Adjust the net profits to be cash flow for operating activities -- --
Net profits 28,322,194.53 -3,714,281.91
Fixed assets depreciation, oil-and-gas assets loss , productive living
78,358.57 47,579.39
beings depreciation
Intangible assets amortization 134,121.30 212,171.58
losses from handling fixed assets, intangible assets and assets(profits
-34,647,779.07 --
fill with “-“ )
Financial costs(profits fill with “-“ ) 352,000.00 --
Stock decreases(increases fill with “-“ ) -75,944,903.10 -157,612,750.00
Operating receivables decrease(increases fill with “-“ ) -30,774,912.28 81,940.97
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承德南江股份有限公司 2014 年半年度报告全文
Operating payables increase(decreases fill with “-“ ) 76,020,069.33 43,844,277.81
Net cash flow generated by operating activities -36,460,850.72 -117,141,062.16
2. Significant investment financial activities not involving and cash
-- --
deposit and withdrawal
3. Net changes of cash and cash equivalents -- --
Ending balance of cash 27,638,033.46 1,077,832.54
Less: opening balance of cash equivalents 5,681,141.82 777,456.70
Net increase of cash and cash equivalents 21,956,891.64 300,375.84
XIV. Supplementary Information
1. Current non-recurring gains/losses
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the
34,647,779.07 --
write-off that accrued for impairment of assets)
Other non-operating income and expenditure except for the
-4,114,387.39 --
aforementioned items
Total 30,533,391.68 --
Explain recognition reasons item-by-item if the government subsidy reckoned into current gains/losses was the recurring gains/losses
□ Applicable √ Not-applicable
2. ROE and EPS
In RMB
EPS
Profit in the Period Weighted average ROE
Basic EPS Diluted EPS
Net profit attributable to common shareholders
8.81% 0.03 0.03
of the Company
Net profit attributable to common shareholders
of the Company after deducting non-recurring -5.11% -0.02 -0.02
gains/losses
3. Abnormalities and reasons of the accounting statement items of the Company
Balance sheet Closing balance Opening balance Variable-ratio (%) Reason for change
Account receivable 3,848,325.20 117,180.60 3184.10% Sales increased in the period.
Advance payment 67,621,592.68 33,836,310.22 99.85%
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Project funds paid in advance
increased in the period.
13,297,141.73 4,976,108.67 167.22% The current amount received from
Other account receivable
units increased in the Period
258,149,828.81 190,569,964.32 35.46% Development costs of real estate
Inventory
business increased in the period.
Other Liquid assets 7,037,093.63 4,478,158.24 57.14% Tax in advance increased in the period
Productive biological asset 705,116.63 258,190.34 173.10% Purchase of laying hens etc. biological
asset increased in the period.
Account payable 7,488,618.46 3,660,631.16 104.57%
Accounts payable to goods purchasing
increased in the period.
Advance receivable 153,840,376.73 53,821,113.16 185.84% Housing fund received in advance
increased in the period.
Taxes payable 9,344,881.67 18,026,904.58 -66.83% Payment of tax.
Profit sheet Currunt period Last period Variable-ratio (%) Reason for change
216,832,416.09 16,818,678.04 1189.24% Runhua RW included in consolidated
Operation revenue
range in the period
218,143,237.30 12,003,739.65 1717.29% Runhua RW included in consolidated
Operation cost
range in the period
Business tax and surcharges 235,514.93 911,510.90 -74.16% Real estate business tax decreased
y-o-y in the period.
Financial cost -32,775.12 428,022.67 -107.66% Payment of loan interest decreased in
the period.
Non-operating income 34,837,468.38 94,235,507.01 -63.03% Gains from disposal of intangible
assets decreased in the period.
Non-operating expenditure 4,304,076.70 283,931.85 1415.88% Donation and non-operating other
expenditure increased in the period.
Income tax expense -23,637.85 4,944,803.47 -100.48% Taxable income decreased in the
period.
Cash flow sheet Currunt period Last period Variable-ratio (%) Reason for change
Net cash flow arising from -39,839,229.21 -162,574,578.72 75.49% Amount received in advance for
operation activities housing sales increased in the Period
Net cash flow arising from 28,646,487.02 195,376,676.06 -85.34% Land assets recovered by the
investment activities government decreased in the period.
Net cash flow arising from 2,548,500.00 -30,300,000.00 108.41% Payment of loans decreased in the
financing activities Period
Net increase of cash and cash -8,644,242.19 2,502,097.34 -445.48% Inventory increased in the period.
equivalent
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Section X. Documents available for reference
1. Financial statement carried with the signature and seal of the Person in charge of the Company, person in
charge of the accounting works and accountant in charge.
2. Text and original draft of the notice that disclosed in reporting period on newspapers appointed by CSRC;
118
