承德南江股份有限公司 2015 年半年度财务报告
CHENGDE NANJIANG CO．，LTD.
Semi-Annual Financial Report 2015
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.
2015-06-30
In RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 69,170,371.00 36,998,545.17
Settlement provisions
Capital lent
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes receivable
Accounts receivable 4,466,516.70 2,722,676.66
Accounts paid in advance 19,375,625.44 7,780,145.39
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Interest receivable
Dividend receivable
Other receivables 117,219,746.90 11,008,292.44
Purchase restituted finance asset
Inventories 403,563,390.34 515,713,286.09
Divided into assets held for sale
Non-current asset due within one
year
Other current assets 9,905,601.34 24,131,851.80
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承德南江股份有限公司 2015 年半年度财务报告
Total current assets 623,701,251.72 598,354,797.55
Non-current assets:
Loans and payments on behalf
Finance asset available for sales
Held-to-maturity investment
Long-term account receivable
Long-term equity investment 6,722,519.55 6,684,960.46
Investment property
Fixed assets 9,826,987.80 10,294,681.90
Construction in progress
Engineering material
Disposal of fixed asset
Productive biological asset 722,718.88 640,727.71
Oil and gas asset
Intangible assets 5,505,879.59 11,902,512.97
Expense on Research and
Development
Goodwill
Long-term expenses to be
7,423,454.20 8,588,027.16
apportioned
Deferred income tax asset 834,223.19 834,223.19
Other non-current asset 5,201,365.53 5,201,365.53
Total non-current asset 36,237,148.74 44,146,498.92
Total assets 659,938,400.46 642,501,296.47
Current liabilities:
Short-term loans
Loan from central bank
Absorbing deposit and interbank
deposit
Capital borrowed
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes payable
Accounts payable 11,117,789.53 10,425,920.41
Accounts received in advance 134,758,152.29 290,954,152.81
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 6,123,676.82 6,233,580.16
Taxes payable 22,772,852.21 10,023,172.67
Interest payable
Dividend payable
Other accounts payable 52,406,197.40 14,624,828.17
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承德南江股份有限公司 2015 年半年度财务报告
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Divided into liability held for sale
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 227,178,668.25 332,261,654.22
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital
securities
Long-term account payable
Long-term wages payable
Special accounts payable
Projected liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 227,178,668.25 332,261,654.22
Owner‘s equity:
Share capital 706,320,000.00 706,320,000.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital public reserve 459,871,788.64 456,470,388.64
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus public reserve 76,791,550.17 76,791,550.17
Provision of general risk
Retained profit -829,454,028.95 -949,599,922.37
Total owner‘s equity attributable to
413,529,309.86 289,982,016.44
parent company
Minority interests 19,230,422.35 20,257,625.81
Total owner‘s equity 432,759,732.21 310,239,642.25
Total liabilities and owner‘s equity 659,938,400.46 642,501,296.47
Legal Representative: Zhao Yongsheng Person in charge of Accounting Works: Zhao Yongsheng
Person in charge of Accounting Institution: Liu Fengguo
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承德南江股份有限公司 2015 年半年度财务报告
2. Balance Sheet of Parent Company
In RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 53,422,263.93 18,291,266.59
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes receivable
Accounts receivable 1,721,391.55
Account paid in advance 2,567,950.06 1,372,194.98
Interest receivable
Dividends receivable
Other receivables 13,943,606.00 16,638,184.13
Inventories 394,819,613.99 490,087,338.82
Divided into assets held for sale
Non-current assets maturing within
one year
Other current assets 8,145,851.62 19,420,345.47
Total current assets 474,620,677.15 545,809,329.99
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term receivables
Long-term equity investments 157,284,836.37 157,284,836.37
Investment property
Fixed assets 1,133,534.31 1,183,425.73
Construction in progress
Project materials
Disposal of fixed assets
Productive biological assets
Oil and natural gas assets
Intangible assets
Research and development costs
Goodwill
Long-term deferred expenses 151,456.36 172,589.80
Deferred income tax assets 750.00 750.00
Other non-current assets
Total non-current assets 158,570,577.04 158,641,601.90
Total assets 633,191,254.19 704,450,931.89
Current liabilities:
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承德南江股份有限公司 2015 年半年度财务报告
Short-term borrowings
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes payable
Accounts payable 4,122,894.52 3,625,964.00
Accounts received in advance 120,470,802.75 277,140,032.59
Wage payable 628.22 628.22
Taxes payable 14,292.10 49,975.30
Interest payable
Dividend payable
Other accounts payable 290,761,671.69 243,993,740.20
Divided into liability held for sale
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 415,370,289.28 524,810,340.31
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital
securities
Long-term account payable
Long-term wages payable
Special accounts payable
Projected liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 415,370,289.28 524,810,340.31
Owners‘ equity:
Share capita 706,320,000.00 706,320,000.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital public reserve 452,767,424.55 449,366,024.55
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus reserve 76,791,550.17 76,791,550.17
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承德南江股份有限公司 2015 年半年度财务报告
Retained profit -1,018,058,009.81 -1,052,836,983.14
Total owner‘s equity 217,820,964.91 179,640,591.58
Total liabilities and owner‘s equity 633,191,254.19 704,450,931.89
3. Consolidated Profit Statement
In RMB
Item Current Period Last Period
I. Total operating income 357,820,624.60 216,832,416.09
Including: Operating income 357,820,624.60 216,832,416.09
Interest income
Insurance gained
Commission charge and commission
income
II. Total operating cost 326,668,947.44 230,284,671.75
Including: Operating cost 295,703,976.96 218,143,237.30
Interest expense
Commission charge and commission
expense
Cash surrender value
Net amount of expense of
compensation
Net amount of withdrawal of
insurance contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Operating tax and extras 17,753,753.02 235,514.93
Sales expenses 1,318,219.88 1,746,266.78
Administration expenses 11,680,726.82 10,192,427.86
Financial expenses 212,670.76 -32,775.12
Losses of devaluation of asset -400.00
Add: Changing income of fair
value(Loss is listed with ―-‖)
Investment income (Loss is listed
37,559.09 121,396.88
with ―-‖)
Including: Investment income on
37,559.09 -49,603.12
affiliated company and joint venture
Exchange income (Loss is listed
with ―-‖)
III. Operating profit (Loss is listed with
31,189,236.25 -13,330,858.78
―-‖)
Add: Non-operating income 104,076,331.26 34,837,468.38
Including: Disposal gains of 103,610,779.62 34,647,779.07
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承德南江股份有限公司 2015 年半年度财务报告
non-current asset
Less: Non-operating expense 3,217,393.57 4,304,076.70
Including: Disposal loss of
non-current asset
IV. Total Profit (Loss is listed with ―-‖) 132,048,173.94 17,202,532.90
Less: Income tax expense 12,929,483.98 -23,637.85
V. Net profit (Net loss is listed with ―-‖) 119,118,689.96 17,226,170.75
Net profit attributable to owner‘s of
120,145,893.42 19,331,150.10
parent company
Minority shareholders‘ gains and
-1,027,203.46 -2,104,979.35
losses
VI. Net after-tax of other comprehensive
income
Net after-tax of other comprehensive
income attributable to owners of parent
company
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1. Changes as a result of
re-measurement of net defined benefit
plan liability or asset
2. Share of the other
comprehensive income of the investee
accounted for using equity method which
will not be reclassified subsequently to
profit and loss
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1. Share of the other
comprehensive income of the investee
accounted for using equity method which
will be reclassified subsequently to profit
or loss
2. Gains or losses arising
from changes in fair value of
available-for-sale financial assets
3. Gains or losses arising
from reclassification of held-to-maturity
investment as available-for-sale financial
assets
4. The effect hedging portion
of gains or losses arising from cash flow
hedging instruments
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承德南江股份有限公司 2015 年半年度财务报告
5. Translation differences
arising on translation of foreign currency
financial statements
6. Other
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income 119,118,689.96 17,226,170.75
Total comprehensive income
120,145,893.42 19,331,150.10
attributable to owners of parent Company
Total comprehensive income
-1,027,203.46 -2,104,979.35
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.17 0.03
(ii) Diluted earnings per share 0.17 0.03
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and
realized 0 Yuan at last period for combined party
Legal Representative: Zhao Yongsheng Person in charge of Accounting Works: Zhao Yongsheng
Person in charge of Accounting Institution: Liu Fengguo
4. Profit Statement of Parent Company
In RMB
Item Current Period Last Period
I. Operating income 236,426,738.54 4,068,045.62
Less: Operating cost 174,220,983.17 468,045.62
Operating tax and extras 17,699,664.08 198,000.00
Sales expenses 189,210.76 279,848.00
Administration expenses 6,720,106.34 4,879,036.88
Financial expenses -59,408.27 344,699.66
Losses of devaluation of asset
Add: Changing income of fair
value(Loss is listed with ―-‖)
Investment income (Loss is
listed with ―-‖)
Including: Investment income
on affiliated company and joint venture
II. Operating profit (Loss is listed
37,656,182.46 -2,101,584.54
with ―-‖)
Add: Non-operating income 34,647,779.07
Including: Disposal gains of
non-current asset
Less: Non-operating expense 2,877,209.13 4,224,000.00
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承德南江股份有限公司 2015 年半年度财务报告
Including: Disposal loss of
non-current asset
III. Total Profit (Loss is listed with
34,778,973.33 28,322,194.53
―-‖)
Less: Income tax expense
IV. Net profit (Net loss is listed with
34,778,973.33 28,322,194.53
―-‖)
V. Net after-tax of other comprehensive
income
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1. Changes as a result of
re-measurement of net defined benefit
plan liability or asset
2. Share of the other
comprehensive income of the investee
accounted for using equity method
which will not be reclassified
subsequently to profit and loss
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1. Share of the other
comprehensive income of the investee
accounted for using equity method
which will be reclassified subsequently
to profit or loss
2. Gains or losses arising
from changes in fair value of
available-for-sale financial assets
3. Gains or losses arising
from reclassification of held-to-maturity
investment as available-for-sale
financial assets
4. The effect hedging
portion of gains or losses arising from
cash flow hedging instruments
5. Translation differences
arising on translation of foreign
currency financial statements
6. Other
VI. Total comprehensive income 34,778,973.33 28,322,194.53
VII. Earnings per share:
(i) Basic earnings per share
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承德南江股份有限公司 2015 年半年度财务报告
(ii) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item Current Period Last Period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 225,860,001.44 301,623,200.23
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 amount from
disposal financial assets that measured
by fair value and with variation
reckoned into current gains/losses
Cash received from interest,
commission charge and commission
Net increase of capital borrowed
Net increase of returned business
capital
Write-back of tax received 151,568.94
Other cash received concerning
44,484,328.26 52,632,278.66
operating activities
Subtotal of cash inflow arising from
270,344,329.70 354,407,047.83
operating activities
Cash paid for purchasing
commodities and receiving labor 178,275,646.38 363,427,051.94
service
Net increase of customer loans and
advances
Net increase of deposits in central
bank and interbank
10
承德南江股份有限公司 2015 年半年度财务报告
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 5,301,032.75 3,669,467.29
Taxes paid 7,734,842.66 14,510,446.47
Other cash paid concerning
46,676,777.28 12,639,311.34
operating activities
Subtotal of cash outflow arising from
237,988,299.07 394,246,277.04
operating activities
Net cash flows arising from operating
32,356,030.63 -39,839,229.21
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment
171,000.00
income
Net cash received from disposal of
fixed, intangible and other long-term 30,125,895.00
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from investing
30,296,895.00
activities
Cash paid for purchasing fixed,
184,984.00 1,650,407.98
intangible and other long-term assets
Cash paid for investment
Net increase of mortgaged loans
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
184,984.00 1,650,407.98
activities
Net cash flows arising from investing
-184,984.00 28,646,487.02
activities
III. Cash flows arising from financing
activities
11
承德南江股份有限公司 2015 年半年度财务报告
Cash received from absorbing
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
activities
Cash paid for settling debts
Cash paid for dividend and profit
distributing or interest paying
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
Other cash paid concerning
1,553,600.00 51,500.00
financing activities
Subtotal of cash outflow from financing
1,553,600.00 51,500.00
activities
Net cash flows arising from financing
-1,553,600.00 2,548,500.00
activities
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash
30,617,446.63 -8,644,242.19
equivalents
Add: Balance of cash and cash
35,582,359.90 77,981,488.06
equivalents at the period -begin
VI. Balance of cash and cash
66,199,806.53 69,337,245.87
equivalents at the period -end
6. Cash Flow Statement of Parent Company
In RMB
Item Current Period Last Period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 83,258,803.42 102,230,505.54
services
Write-back of tax received
Other cash received concerning 48,876,334.80 20,287,177.62
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承德南江股份有限公司 2015 年半年度财务报告
operating activities
Subtotal of cash inflow arising from
132,135,138.22 122,517,683.16
operating activities
Cash paid for purchasing
commodities and receiving labor 38,815,508.50 89,171,684.36
service
Cash paid to/for staff and workers 3,508,767.00 2,375,405.09
Taxes paid 6,927,837.65 5,804,152.68
Other cash paid concerning
47,594,532.13 61,627,291.75
operating activities
Subtotal of cash outflow arising from
96,846,645.28 158,978,533.88
operating activities
Net cash flows arising from operating
35,288,492.94 -36,460,850.72
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,
157,984.00 47,091.00
intangible and other long-term assets
Cash paid for investment 5,000,166.64
Net cash received from
subsidiaries and other units
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
157,984.00 5,047,257.64
activities
Net cash flows arising from investing
-157,984.00 24,952,742.36
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
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承德南江股份有限公司 2015 年半年度财务报告
investment
Cash received from loans 43,700,000.00
Cash received from issuing bonds
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
43,700,000.00
activities
Cash paid for settling debts 10,200,000.00
Cash paid for dividend and profit
distributing or interest paying
Other cash paid concerning
1,553,600.00 35,000.00
financing activities
Subtotal of cash outflow from financing
1,553,600.00 10,235,000.00
activities
Net cash flows arising from financing
-1,553,600.00 33,465,000.00
activities
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash
33,576,908.94 21,956,891.64
equivalents
Add: Balance of cash and cash
17,625,400.53 5,681,141.82
equivalents at the period -begin
VI. Balance of cash and cash
51,202,309.47 27,638,033.46
equivalents at the period -end
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
This Period
Owners‘ equity attributable to parent company
Other
equity instrument
Item Perpet Less: Other Provisio Minorit Total
Reason
Share ual Capital Invento compre Surplus n of Retaine y owners‘
Prefer able
capital capita reserve ry hensive reserve general d profit interests equity
red Other reserve
l shares income risk
stock
securi
ties
706,32 -949,59
I. Balance at the 456,470 76,791, 20,257, 310,239
0,000. 9,922.3
end of the last year ,388.64 550.17 625.81 ,642.25
00 7
Add:
Changes of
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承德南江股份有限公司 2015 年半年度财务报告
accounting policy
Error
correction of the
last period
Enterprise
combine under
the same control
Other
II. Balance at the 706,32 456,470 76,791,
-949,59
20,257, 310,239
beginning of this 0,000. 9,922.3
,388.64 550.17 625.81 ,642.25
year 00 7
III. Increase/
Decrease in this 3,401,4 120,145 -1,027,2 122,520
year (Decrease is 00.00 ,893.42 03.46 ,089.96
listed with ―-‖)
(i) Total 120,145 -1,027,2 119,118
comprehensive
,893.42 03.46 ,689.96
income
(ii) Owners‘
devoted and
decreased capital
1.Common shares
invested by
shareholders
2. Capital invested
by holders of other
equity instruments
3. Amount
reckoned into
owners equity with
share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
provisions
3. Distribution for
owners (or
shareholders)
4. Other
(IV) Carrying
forward internal
owners‘ equity
1. Capital reserves
conversed to
capital (share
15
承德南江股份有限公司 2015 年半年度财务报告
capital)
2. Surplus reserves
conversed to
capital (share
capital)
3. Remedying loss
with surplus
reserve
4. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
3,401,4 3,401,4
(VI)Others
00.00 00.00
IV. Balance at the 706,32 459,871 76,791,
-829,45
19,230, 432,759
end of the report 0,000. 4,028.9
,788.64 550.17 422.35 ,732.21
period 00 5
Last Period
In RMB
Last Period
Owners‘ equity attributable to the parent Company
Other
equity instrument
Minorit
Item Perpet Less: Other Provisio Total
Reason y
Share ual Capital Invento compre Surplus n of Retaine owners‘
Prefer able interest
capital capita reserve ry hensive reserve general d profit equity
red Other reserve s
l shares income risk
stock
securi
ties
706,32 -1,029,8
I. Balance at the 456,470 76,791, 27,302, 237,004
0,000. 80,318.
end of the last year ,250.78 550.17 795.85 ,278.62
00 18
Add:
Changes of
accounting policy
Error
correction of the
last period
Enterprise
combine under the
same control
Other
II. Balance at the 706,32 456,470 76,791, -1,029,8 27,302, 237,004
beginning of this
0,000. ,250.78 550.17 80,318. 795.85 ,278.62
year
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承德南江股份有限公司 2015 年半年度财务报告
00 18
III. Increase/
Decrease in this 19,331, -2,104, 17,226,
year (Decrease is 150.10 979.35 170.75
listed with ―-‖)
(i) Total 19,331, -2,104, 17,226,
comprehensive
150.10 979.35 170.75
income
(ii) Owners‘
devoted and
decreased capital
1.Common shares
invested by
shareholders
2. Capital invested
by holders of other
equity instruments
3. Amount
reckoned into
owners equity with
share-based
payment
4 Other
(III) Profit
distribution
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
provisions
3. Distribution for
owners (or
shareholders)
4. Other
(IV) 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. Other
(V) Reasonable
reserve
17
承德南江股份有限公司 2015 年半年度财务报告
1. Withdrawal in
the report period
2. Usage in the
report period
(VI)Others
IV. Balance at the 706,32 456,470 76,791,
-1,010,5
25,197, 254,230
end of the report 0,000. 49,168.
,250.78 550.17 816.50 ,449.37
period 00 08
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
This Period
Other
equity instrument
Other Total
Item Share Perpetu Less: Retaine
Capital comprehe Reasonab Surplus
al Inventory owners‘
capital Preferre reserve nsive le reserve reserve d profit
capital Other shares equity
d stock income
securiti
es
-1,052,8
I. Balance at the 706,320, 449,366,0 76,791,55 179,640,5
36,983.
end of the last year 000.00 24.55 0.17 91.58
14
Add: Changes
of accounting
policy
Error
correction of the
last period
Other
II. Balance at the 706,320, -1,052,8
449,366,0 76,791,55 179,640,5
beginning of this 36,983.
000.00 24.55 0.17 91.58
year 14
III. Increase/
Decrease in this 3,401,400 34,778, 38,180,37
year (Decrease is .00 973.33 3.33
listed with ―-‖)
(i) Total 34,778, 34,778,97
comprehensive
973.33 3.33
income
(ii) Owners‘
devoted and
decreased capital
1.Common shares
invested by
shareholders
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承德南江股份有限公司 2015 年半年度财务报告
2. Capital invested
by holders of other
equity instruments
3. Amount
reckoned into
owners equity with
share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal of
surplus reserves
2. Distribution for
owners (or
shareholders)
3. Other
(IV) 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. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
3,401,400 3,401,400
(VI)Others
.00 .00
IV. Balance at the 706,320, -1,018,0
452,767,4 76,791,55 217,820,9
end of the report 58,009.
000.00 24.55 0.17 64.91
period 81
Last period
In RMB
Last period
Other Less: Other
Item Share Capital Reasonab Surplus Retaine Total
equity instrument Inventory comprehe
capital reserve le reserve reserve d profit owners‘
Preferre Perpetu Other shares nsive
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承德南江股份有限公司 2015 年半年度财务报告
d stock al income equity
capital
securiti
es
-1,210,1
I. Balance at the 706,320, 449,365,8 76,791,55 22,363,37
14,062.
end of the last year 000.00 86.69 0.17 4.45
41
Add: Changes
of accounting
policy
Error
correction of the
last period
Other
II. Balance at the 706,320, -1,210,1
449,365,8 76,791,55 22,363,37
beginning of this 14,062.
000.00 86.69 0.17 4.45
year 41
III. Increase/
Decrease in this 28,322, 28,322,19
year (Decrease is 194.53 4.53
listed with ―-‖)
(i) Total 28,322, 28,322,19
comprehensive
194.53 4.53
income
(ii) Owners‘
devoted and
decreased capital
1.Common shares
invested by
shareholders
2. Capital invested
by holders of other
equity instruments
3. Amount
reckoned into
owners equity with
share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal of
surplus reserves
2. Distribution for
owners (or
shareholders)
3. Other
(IV) Carrying
forward internal
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承德南江股份有限公司 2015 年半年度财务报告
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. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
(VI)Others
IV. Balance at the 706,320, -1,181,7
449,365,8 76,791,55 50,685,56
end of the report 91,867.
000.00 86.69 0.17 8.98
period 88
III. Company profile
1. Registration place, organization forms and address of the HQ
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.
According to the resolution of the shareholder‘s general meeting on March 12, 2002, the Company allotted
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承德南江股份有限公司 2015 年半年度财务报告
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 shareholder‘s 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 shareholder‘s 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 Company‘s 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)
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承德南江股份有限公司 2015 年半年度财务报告
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
Company‘s name changed as Chengde Nanjiang Co., Ltd.
Over the years of bonus issue, rights issue and capitalization, up to end of the Reporting Period, the issued shares
totally amounting to 706.32 million shares, registered capital of the Company was 706.32 million Yuan; registered
address: Xiabancheng Town, Chengde County, Hebei Province; HQ: Xiabancheng Town, Chengde County, Hebei
Province. The Company has no parent company and Mr. Wang Dong is the first largest shareholder of the
Company and also is the controller of the Company.
(II) 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.
(III) Business nature and main operating activities of the Company
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
(IV) Report approval for the financial statement
The statement has been approved by all Directors of the Company dated 27 August 2015 for reporting.
Totally 8 subjects are included in the consolidate financial statement, mainly including:
Sharholding ratio Voting rights ratio
Subsidiaries Type Level
(%) (%)
Chengde Nanjiang Real Estate Development Co., Wholly-owned 2 100.00 100.00
Ltd. (Nanjiang Real Estate for short) subsidiary
Chengde Nanjiang Investment Co., Ltd. (Nanjiang Wholly-owned 2 100.00 100.00
Investment for short) subsidiary
Chengde Nanjiang Ecological Agriculture Co., Ltd. Wholly-owned 3 100.00 100.00
(Ecological Agriculture for short) sub-subsidiary
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承德南江股份有限公司 2015 年半年度财务报告
Chengde Xingye Papermaking Making Co., Ltd. Wholly-owned 2 100.00 100.00
(Xingye Papermaking Making for short) subsidiary
Nanjiang Asia Investment Co., Ltd. (Nanjiang Asia Wholly-owned 2 100.00 100.00
for short) subsidiary
Chengde Morsh Technology Co., Ltd. (Morsh Holding 3 90.00 90.00
Technology for short) sub-subsidiary
Chengde Huijing Property Service Co., Ltd. Wholly-owned 3 100.00 100.00
(Huijing Property for short) sub-subsidiary
Runhua Rural Water (Tianjin) International Trade Holding 2 30.00 53.43
Co., Ltd (Runhua RW for short) subsidiary
(1) The Company has no subsidiary, special purpose vehicle and operational entity with control over by means of entrusted
management or lessee newly included in the consolidate scope in the Period
(2) The Company has no subsidiary, special purpose vehicle and operational entity with control lost by means of entrusted
management or rent-out, which no longer include in consolidate scope in the Period
(3) Consolidate scope of the Company has no changed in the Period
IV. Basis of preparation of financial statements
1. Preparation basis
Based on continuing operation, the Company conducts recognition and measurement according to actual
occurrence of transactions and issues, pursuant to the accounting principles for enterprise-basic rules and specific
accounting principle as well as the application guidance for the accounting principles for enterprise, interpretation
to the accounting principles for enterprise and other related requirements (hereinafter referred to as Enterprise
Accounting Principles) issued by the ministry of finance, on that basis, combining the Information Disclosure
Preparation Rules for Company Public Issuing Securities No.15-General Rules for Financial Report (amended in
2014) of the CSRC for statement preparation.
2. Going concern
There are no substantial doubtable events or conditions on sustainable operation ability of the Company in 12
months since end of the reporting period
V. Major accounting policy and accounting estimation
Notice of specific accounting policy and estimation:
The Company and its subsidiaris in line with the real operation charateristics, pursuit to regulation of related enterprise accounting
standarss, formulated many accounting policies and estimations for the transactions and evetns recognized, found more in statemetn
in the Notes
1. 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
24
承德南江股份有限公司 2015 年半年度财务报告
the Company.
2. Fiscal period
The fiscal year of the Company is from 1 January to 31 December on basis of Gregorian calendar.
3. Operating cycle
The normal operating cycle is the period from the asstes purchased for processing to cash or cash equivalent
realized
4. Standard currency
The Company and its subsidiaries take RMB as the standard currency for bookkeeping.
5. Accounting treatment for business combinations under the same control and those not under the same
control
1. If the terms, conditions, and economic impact of each transaction involved in business combination
achieved in stages fall within one or more of the following situations, such transactions will be accounted for
as a package deal:
(1) Such transactions are entered into simultaneously or in the case of considering the impact of each other;
(2) Such transactions as a whole in order to reach a complete business results;
(3) The occurrence of a transaction subject to that of at least one other transaction;
(4) One transaction alone is not economic, but otherwise when considered with other transactions.
2. Business combination under the same control
(1) Individual financial statements
Where the consideration for the combination is the cash paid, the non-cash assets transferred and the liabilities
assumed and equity securities issued, it shall, on the combining day, treat the share of the carrying amount of
owner's equity of the combined party as the initial cost of long-term equity investment. Difference between the
initial cost of the long-term equity investment and the consideration paid for the combination is adjusted to capital
reserve. If the capital reserve is not sufficient to absorb the difference, any excess shall be adjusted against
retained earnings. In case there is existence of contingent consideration which needs to confirm projected
liabilities or assets, then the difference between the projected liabilities or assets and settlement amount for
consequent contingent consideration is utilized to adjust capital reserve (capital premium or equity premium); in
case of insufficient capital reserve, adjust retained earnings.
As for business combination realized through numbers of transactions, and if these transactions belong to a bundle
of transactions, then each of them shall be accounted as a transaction to acquire controlling right; and if not belong
25
承德南江股份有限公司 2015 年半年度财务报告
to a bundle of transactions, then the difference between the initial investment cost of the long term equity
investment as of the date on which the Company obtains controlling right and the carrying value of the long term
equity investment prior to combination plus the carrying value of the new consideration paid for further
acquisition of shares as of the combination date shall be used to adjust capital reserve; in case of insufficient
capital reserve, adjust retained earnings. For equity investment held prior to the combination date, the other
comprehensive income recognized due to calculation by equity method or based on recognition and measurement
principles for financial instruments would not be accounted for temporarily until the Company disposes of this
investment on the same basis as the investee directly disposes of relevant assets or liabilities; other changes of
owners‘ equity in the net assets of investee as recognized under equity method, except for net profit or loss, other
comprehensive income and profit distribution, shall not be accounted for until being transferred to current profit
or loss when this investment is disposed of.
Any cost directly attributable to the combination should, including the expenses for audit, assessment and legal
services, be recognized in profit or loss for the current period; Transaction fee directly related to issuance of
equity instruments as combination consideration shall be used to offset capital reserve; in case of insufficient
capital reserve to offset, then to offset earning reserve and undistributed profit. Transaction fee directly related to
issuance of debt instruments as combination consideration is accounted for as initial recognition amount of the
instrument.
Where there are consolidated financial statements of the combined party, the initial cost of the long-term equity
investment shall be determined on the basis of owner's equity of the combined party in its consolidated financial
statements on the combining day.
(2) Consolidated financial statements
Assets and liabilities obtained by the absorbing party are measured at their carrying amounts(owners equity in
financial statement of the ultimate controller) on the combining day.
As for business combination realized through numbers of transactions, and if these transactions belong to a bundle
of transactions, then each of them shall be accounted as a transaction to acquire controlling right; and if not belong
to a bundle of transactions, and the relevant gains and losses, other comprehensive income and other change of
owners‘ equity recognized in respect for the long term equity investment held by the acquirer prior to combination
during the period from the date of acquisition and the date on which acquirer and acquire are under common
control (whichever is later) to combination date shall be used to offset beginning retained earnings or current
profit or loss of the comparative statements.
Where the accounting policy adopted by the combined party is different from that adopted by the Company, the
Company shall, according to accounting policy it adopts, adjust the relevant items in the financial statements of
the combined party, and shall, pursuant to the accounting standards for enterprises, recognize them on the basis of
such adjustment.
3. Business combination not under the same control
As for the business combination not under the same control, combination costs shall be the fair value of assets
paid, liabilities occurred or assumed and equity securities issued by the acquirer for the purpose of acquiring the
control over the acquiree on the purchase date. In combination agreement, as for the contract made for the
26
承德南江股份有限公司 2015 年半年度财务报告
influence that probably impact the combination costs, if the future event probably impact on the combination cost
on purchasing date, which can be measured reliably, than reckoned into combination cost.
The intermediate expenses occurred for business combination such as audit, legal service and appraisal
consultation expenses and other related management expenses shall be recorded in current gains and losses when
occurred; the trading expenses for such equity securities or debt securities issued by acquirer as combination
consideration shall be recorded in initial recognition amount of the equity securities or debt securities.
Goodwill is realized by the Company as for the difference between the combination cost and the fair value of the
recognizable net assets of the acquiree acquired by acquirer in such business combination. In case that the above
cost is less than the above fair value even with re-review, then the difference shall be recorded in current gains
and losses.
As for the business combination not under the same control realized through several exchange transactions step by
step, part of the package deal, than carrying accounting treatment on transactions with controlling rights obtained
through vary transactions; while related accounting treatment shall be conducted based on individual financial
statement and combined financial statement:
(1)In separate financial statement, for equity investment held prior to combination date which is calculated under
equity method, the sum between carrying value of the equity investment prior to acquisition date and cost of
additional investment made on the acquisition date is deemed to be the initial investment cost of this investment.
Other comprehensive income recognized for equity investment held prior to combination date under equity
method shall be accounted for when the Company disposes of this investment on the same basis as the investee
directly disposes of relevant assets or liabilities.
In case that equity investment held prior to combination date is calculated based on recognition and measurement
principles for financial instruments, then the fair value of this equity investment as of combination date plus new
investment cost shall be deemed as initial investment cost. The difference between fair value and carrying value of
the originally held equity interests and the accumulated fair value movements as originally recorded in other
comprehensive income shall be all transferred to investment income of the period in which the combination date
falls.
(2)in combined financial statement, the equity investment held in the acquiree prior to the acquisition date shall be
re-measured under its fair value as at the acquisition date; difference between the fair value and its book value
shall be recorded in current investment income. If the equity investment held in the acquiree prior to the
acquisition date involves other comprehensive income, such comprehensive income related to this investment
shall be transferred to current investment income as of the acquisition date.
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承德南江股份有限公司 2015 年半年度财务报告
6. Methods for preparation of consolidated financial statements
The consolidation scope of the consolidated financial statements of the Company is fixed on the basis of control,
and all subsidiaries have been consolidated.
The accounting policies and accounting period adopted by the subsidiaries taken into account of the consolidation
scope are in line with the Company. If it is not the same as the Company, necessary adjustments will be made
when preparing consolidated financial statements according to the accounting policy and accounting period of the
Company.
Based on the financial statements of the Company and its subsidiaries, the Company prepares the consolidated
financial statements by reference to other related information after adjustment in its long-term equity investments
to subsidiaries by equity method.
When consolidating financial statements, the Company shall offset all effects upon consolidated balance sheet,
consolidated profit statement, consolidated cash flow statement and consolidated statement of changes in equity
arising from the internal transactions between the Company and each subsidiary and between various subsidiaries.
Concerning the balance between the current losses shared by minority shareholders of subsidiaries exceeding the
proportion shared by those shareholders in beginning owners‘ equity of those subsidiaries, the balance shall be
used to offset minority equity.
During the report period, beginning amounts in consolidated balance sheet shall be subject to adjustment if
business combination under the same control results in additional subsidiaries; income, expense and profit of such
subsidiaries occurred during the whole consolidation period shall be accounted into consolidated profit statement;
and the cash flow of subsidiaries occurred during the whole consolidation period shall be accounted into
consolidated cash flow statement.
During the report period, beginning amounts in consolidated balance sheet is not subject to adjustment if business
combination not under the same control results in additional subsidiaries; income, expense and profit of such
subsidiaries occurred during the period commencing from purchase day to the end of reporting year shall be
accounted into consolidated profit statement; and the cash flow of such subsidiaries occurred during the period
commencing from purchase day to the end of reporting year shall be accounted into consolidated cash flow
statement.
During the report period, if the Company disposes subsidiaries, then the income, expense and profit of the
subsidiaries occurred during the period commencing from period-begin to the disposal day shall be written into
consolidated profit statement; and cash flow arising during such period of such subsidiaries shall be written into
consolidated cash flow statement.
28
承德南江股份有限公司 2015 年半年度财务报告
In case that a company losses control over the original subsidiary due to disposal of certain equity investment or
other reasons, then in combined financial statement, the remaining equities shall be re-measured based on its fair
value as at the date when the control is lost. The sum between the consideration received from equity disposal and
fair value of the remaining equity less the net assets of the original subsidiary entitled by the company calculated
under the previous shareholding proportion on a continuing basis since the acquisition date shall be recorded in
investment income of the period when the control is lost. Other comprehensive income related to equity
investment in original subsidiary shall be transferred to current investment income when the control is lost.
7. Classification of joint arrangement and accounting for joint operations
1. Classification of joint arrangement
The Company classifies joint venture arrangement into joint operations and joint ventures based on the structure,
legal form, agreed terms of the arrangement and other related facts and conditions.
Joint venture arrangement not concluded through separate entity is classified as joint operation; and those
concluded through separate entity are generally classified as joint ventures. However, joint venture arrangement
which meets any of the following conditions as proven by obvious evidence and satisfies relevant laws and rules
is grouped as joint operation:
1. The legal form of the arrangement shows that parties to the arrangement are entitled to and assume rights and
obligations in respect of the relevant assets and liabilities.
2. It is agreed by the terms of the arrangement that parties to the arrangement are entitled to and assume rights and
obligations in respect of the relevant assets and liabilities.
3. Other related facts and conditions show that parties to the arrangement are entitled to and assume rights and
obligations in respect of the relevant assets and liabilities. For instance, joint parties are entitled to almost all the
output related to joint venture arrangement and settlement of the liabilities under the arrangement continues to rely
on supports from the joint parties.
2. Accounting for joint operations
The Company recognizes its proportion of interests in joint operation as related to the Company, and accounts for
under relevant business accounting principles:
1. To recognize separately-held assets and jointly-held assets under its proportion;
2. To recognize separately-assumed liabilities and jointly-assumed liabilities under its proportion;
3. To recognize revenue from disposal of the output which the Company is entitled to under the proportion;
4. To recognize revenue from disposal of the output under the proportion;
5. To recognize separately occurred expenses, and to recognize expenses occurred for joint operations under its
proportion.
29
承德南江股份有限公司 2015 年半年度财务报告
For injection to or disposal of assets of joint operations (other than those assets constituting business operation),
gain or loss arising from the transaction is only recognized to the extent it is attributable to other parties to the
joint operation before the joint operation is sold to any third party. In case that asset injected or disposed satisfy
the condition for asset impairment loss under Business Accounting Principle No.8-Assets Impairment, the
Company recognizes this loss in full.
For acquisition of assets from joint operations (other than those assets constituting business operation), gain or
loss arising from the transaction is only recognized to the extent it is attributable to other parties to the joint
operation before the relevant assets are sold to any third party. In case that the acquired assets satisfy the condition
for asset impairment loss under Business Accounting Principle No.8-Assets Impairment, the Company recognizes
relevant loss according to the proportion it assumes.
The Company exercises no common control over joint operations. If the Company is entitled to relevant assets of
the joint operation and assure relevant liabilities, it shall be accounted for under the above principle, otherwise it
would be accounted for under the relevant business accounting principles.
8. Recognition standards for cash and cash equivalents
When preparing cash flow statement, the Company recognized the stock cash and deposits available for payment
at any time as cash, and investments featuring with the following four characters at the same time as cash
equivalents: 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 conversion of foreign currency statement
1. Foreign currency business
For the foreign currency business, the Company converts the foreign currency into RMB for book-keeping based
on spot exchange rate at date of trading occurred.
On balance sheet date, balance of foreign currency monetary items shall be converted based on the spot rate as at
the balance sheet date, and the arising exchange difference shall be recorded in current gains and losses other than
those arising from the special foreign currency borrowings related to purchasing assets qualifying for
capitalization which is treated under the principle of borrowing expense capitalization. As for the foreign currency
non-monetary items measured in historical cost, conversion is still conducted with the spot rate as at the
transaction date, without any change to its functional currency. As for the foreign currency non-monetary items
measured in fair value, conversion is conducted with the spot rate as at the date for determination of fair value,
and the arising exchange difference shall be recorded in current gains and losses or capital reserve.
2. Translation of foreign currency financial statement
Assets and liabilities in balance sheet are translated at the spot exchange rate at the balance sheet date. Equity
items, excluding ―undistributed profit‖, are translated at the spot exchange rates at the transaction dates. As for
30
承德南江股份有限公司 2015 年半年度财务报告
those translated at the spot exchange rates at the transaction dates or those recognized in line with the reasonable
method in system, translated at the similar exchange rate as at the transaction date. The resulting translation
differences are recognized in other comprehensive income.
When disposing overseas operations, the foreign currency financial statement translation differences listed under
items of other comprehensive income in balance sheet and which are directly related to the overseas operations
are transferred to profit or loss in the period when the overseas operation is disposed. In case of partial disposal,
foreign currency financial statement translation differences shall be calculated in respect of the disposed part
under disposal proportion and transferred to profit or loss in the period when the overseas operation is disposed.
10. Financial instruments
Financial instruments include financial assets, financial liabilities and equities instruments.
1. Categories of financial instruments
According to the contract terms of the financial instrument issued and economic substance reflects by such
instrument, not only in form of law, combine with purposes held for financial assets and liabilities, the
management categorizes financial assets and liability into different types: financial assets (or financial liabilities)
at fair value through current gains and losses; accounts receivable; financial assets available for sale; other
financial liabilities, etc.
2. Recognition and measurement for financial instrument
(1) Financial assets or liabilities at fair value through profit or loss
Financial assets or liabilities at fair value through profit or loss include transactional financial assets or financial
liabilities and financial assets or liabilities directly designated at fair value through profit or loss.
Transactional financial assets or financial liabilities refer to those meeting any of the following conditions:
1) Purpose for holding the assets or liabilities are to disposal, repurchase or redemption in a short time;
2) constitute part of the identifiable financial instrument group for central management, and there is objective
evidence proving that the Company manages this group in a short-time-return way recently;
3) belong to derivative financial instrument, other than those derivatives designated as effective hedge instruments,
belonging to financial guarantee contracts and those linked to equity instrument investment which is not
quoted in an active market and whose fair cannot be measured reliably and the settlement of which is
conditional upon delivery of the equity instrument.
Subject to satisfaction of any of the following conditions, financial assets or liabilities can be designated as
financial assets or liabilities at fair value through profit or loss upon initial measurement:
1) The designation can eliminate or substantially eliminate the inconsistencies between profit or loss from the
financial assets arising from different measurement basis;
2) The portfolio of financial assets and liabilities in which the financial asset belongs to are designated as
measured at fair value in the risk management report or investment strategic report handed in to key
management personnel;
3) Hybrid instruments which contains one or more embedded derivatives, unless the containing of embedded
derivatives does not have substantial effect on the cash flows of the hybrid instruments, or the embedded
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承德南江股份有限公司 2015 年半年度财务报告
derivatives obviously should not be separated from relevant hybrid instruments;
4) Hybrid instruments which contains embedded derivatives that should split, but cannot be measured separately
when acquired or on the subsequent balance sheet date.
Amount is initially measured by the sum of fair value (deducted bond interest expired without received) while
obtained and relevant transaction expenses.
Interest or cash dividend in period of holding shall be recognized as investment income, and reckoned into current
gains/losses with the variation of fair value at period-end.
In case of disposal, the difference between the amount while obtained and book value of the investment shall
reckon into investment income, and gains/losses of variation of the fair value shall be adjusted correspondingly.
(2)Account receivables
The contract price charged to the buyers shall be recognized as initial value for those account receivables which
mainly comprise the receivable creditor‘s right caused by the sale of goods and providing of labor service to
external customers by the Company, and receivables in other companies excluding debt instruments priced in
active markets, includes but not limited to trade receivables, notes receivables, account paid in advance and other
receivables. If characterized as of financing nature, the initial recognition shall be priced at the present value.
Upon disposal, the difference between the sale value and the book value of the receivables shall be accounted into
current profit or loss on its recovery or disposal.
(3) Held-to-maturity investment
The non-derivative financial assets with maturity date, fix return amount or amount able to determined, and the
Company held with specific intention and ability.
The Company takes the sum of fair value (after deducting bond interests which is due for interest payment but not
received) and related transaction fee as initial recognition amount in respect of held-to-maturity investment upon
acquisition of the investment. During the holding period, the Company recognizes interest income at amortized
cost and effective interest rate which is included in investment income. The effective interest rate is determined
upon acquisition of the investment and remains unchanged for the expected continuous period or appropriate
shorter period. Difference between sale price and carrying value of the investment is included in investment
income.
If held-to-maturity investment is disposed or reclassified as other types of financial asset, and the relevant amount
is relatively bigger than the total amount of our all held-to-maturity investments prior to disposal or
reclassification, the remaining held-to-maturity investments shall be reclassified as available-for-sale financial
assets immediately following such disposal or reclassification. On the reclassification date, difference between the
carrying value and fair value of the investment is included in other comprehensive income and is transferred out
into current profit or loss when the available-for-sale financial assets experience impairment or derecognition.
However, the followings are exceptions:
1) The date of disposal or reclassification is approaching to the date of expiration or redemption of the investment
(such as three months prior to expiration), and change of market rate has no material influences over the fair value
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承德南江股份有限公司 2015 年半年度财务报告
of the investment.
2) Company has already recovered nearly all initial principal under the repayment means as agreed in contract.
3) Disposal or reclassification is arising from separate matters which are out of our control, which are expected
not to occur repeatedly and which are difficult to predict reasonably.
(4) Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale upon
initial recognition and financial assets other than other categories of financial assets.
The Company initially measures available-for-sale financial assets at the sum between their fair values when
acquiring the assets or liabilities (after deducting cash dividend already declared but not paid or bond interests
which is due for interest payment but not received) and the relevant transaction fee.
Interest or cash dividend acquired during the holding period shall be recognized as investment income. Gains or
losses arising from movement of fair value is directly included in other comprehensive income except for
impairment loss and exchange difference arising from foreign currency monetary financial assets.
When disposing available-for-sale financial assets, the Company includes the difference between the acquired
price and carrying value of the financial assets into investment profit or loss. Meanwhile, accumulated fair value
movement attributable to the disposed part which is originally directly included in other comprehensive income is
transferred out and included investment profit or loss.
For equity instrument investment which is not quoted in an active market and whose fair value cannot be reliably
measured, and derivative financial assets which are linked to the equity instrument and whose settlement is
conditional upon delivery of the equity instrument, they are stated at cost by the Company.
(5)Other financial liabilities
Initial recognition amount is determined at the sum of fair value and relevant transaction fee. Subsequent
measurement is conducted 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.
2) The enterprise has nearly recovers the entire initial principal under the payment method as agreed by contract.
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3) The disposal or reclassification is due to such independent matter that the enterprise is not able to control, will
not happen again as expected and cannot predicted reasonably.
3. Confirmation evidence and measurement methods for transfer of financial assets
When transfer of financial assets occurs, the Company shall stop recognition of such financial assets if all risks
and remunerations related to ownership of such financial assets have almost been transferred to the receiver; while
shall continue to recognize such financial assets if all risks and remunerations related to ownership of such
financial assets have almost been retained.
When judging whether or not the aforesaid terminal recognition condition for financial assets is arrived at for
transfer of financial assets, the Company generally adopts the principle that substance overweighs format. The
Company divides such transfer into entire transfer and part transfer. As for the entire transfer meeting condition
for discontinued recognition, balance between the following two items is recorded in current gains and losses:
(1)Carrying value of financial assets in transfer;
(2)Aggregate of the consideration received from transfer and accumulative movements of fair value originally
recorded in owners‘ equity directly (applicable when financial assets involved in transfer belong to financial assets
available for sale).
As for the part transfer meeting condition for discontinued recognition, entire carrying value of financial assets in
transfer is shared by discontinued recognition part and continued recognition part, in light of their respective fair
value. Balance between the following two items is recorded in current gains and losses:
(1)Carrying value of discontinued recognition part;
(2)Aggregate of the consideration of discontinued recognition part and amount of such part attributable to
accumulative movements of fair value originally recorded in owners‘ equity directly (applicable when financial
assets involved in transfer belong to financial assets available for sale).
Financial assets are still subject to recognition if transfer of such assets doesn‘t satisfy the condition for
discontinued recognition. And consideration received is recognized as financial liability.
4. De-recognition condition for financial liability
As for the financial liabilities with its whole or part present obligations released, the company shall de-realize
such financial liabilities or part of it. if the company enters into agreement with its creditor to substitute for the
existing financial liabilities by means of assuming new financial liabilities, then the company shall de-realize the
existing financial liabilities and realize the new financial liabilities provided that the contract clauses of the new
and the existing financial liabilities are different in substance.
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If the company makes substantial amendment to the whole or part contract clauses of the existing financial
liabilities, it shall de-realize the existing financial liabilities or part of it. Meanwhile, the financial liabilities with
amendment to its clauses shall be realized as new financial liabilities.
In case of derecognizing of financial liabilities in whole or part, the difference between the carrying value of such
de-realized financial liabilities and consideration paid (including the non-cash assets exchanged or new financial
liabilities assumed) shall be recorded in current gains and losses.
In case that the company repurchases part of financial liabilities, based on the comparative fair value of the
continuing recognition part and the derecognizing part, the company shall allocate the carrying value of the
financial liabilities in whole on the repurchase date. Difference between the carrying value allocated to the
derecognizing part and the consideration paid (including the non-cash assets exchanged or new financial liabilities
assumed) shall be recorded in current gains and losses.
5. Determination method for fair value of financial assets and financial liabilities
As for the financial assets and financial liabilities measured by fair value and in case that there are active market
for those assets and liabilities, then the fair value shall be determined based on the quotation on active market; in
case that there are no such active market for financial assets and financial liabilities, the fair value shall be
determined by evaluation technology (including by reference to the price adopted by the willing parties who are
familiar with the situation in their latest market transaction, by reference to the prevailing fair value of other
financial instruments which are the same in substance, cash flow discount method and option pricing pattern); as
for the financial assets initially acquired or financial liabilities assumed, their fair value are determined based on
the market transaction prices.
6. Provision of impairment reserve for impairment of financial assets (excluding account receivables)
The company reviews the carrying value of the financial assets (excluding those measured by fair value and the
change thereof is recorded in current gains and losses) on the balance sheet date, if there is objective evidence
showing impairment of the financial assets, it shall provide impairment reserve.
Objective evidence that a financial asset is impaired includes the following observable events:
Significant financial difficulty of the issuer or obligor;
A breach of contract by the borrower, such as a default or delinquency in interest or principal payments;
The creditor, for economic or legal reasons relating to the borrower‘s financial difficulty, granting a concession to
the borrower;
It becoming probable that the borrower will enter bankruptcy or other financial reorganizations;
The disappearance of an active market for that financial asset because of financial difficulties of the issuer;
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Observable data indicating that there is a measurable decrease in the estimated future cash flows from a group of
financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the
individual financial assets in the group, including: adverse changes in the payment status of borrowers in the
group, an increase in the unemployment rate in the country or geographical area of the borrowers, a decrease in
property prices for mortgages in the relevant area, or adverse changes in industry conditions that affect the
borrowers in the group;
Significant adverse changes in the technological, market, economic or legal environment in which the issuer
operates, indicating that the cost of the investment in the equity instrument may not be recovered by the investor;
Significant or prolonged decline in the fair value of an investment in an equity instrument below its cost;
Details for impairment of financial assets are set out below:
(1)Impairment provision for available-for-sale financial assets
The Group has separately tested various available-for-sale equity instruments at the balance sheet date. It will be
defined as impairment if the fair value is lower than the initial investment cost by more than 50% (including 50%)
or the low state has lasted for no less than 1 year. While the lower proportion is between 20% and 50%, the Group
will take other factors such as price fluctuation into consideration to estimate whether the equity instrument has
impaired or not.
Cost stated in the above paragraph is determined based on the initial acquisition cost of available for sale equity
instrument investment less recovered principal and amortized amount as well as impairment loss originally
included in profit or loss; fair value is determined at the closing price quoted on stock exchange at period end,
unless the available for sale equity instrument investment is limited for sale for certain periods. For available for
sale equity instrument investment which is limited for sale for certain periods, fair value is determined at the
closing price quoted on stock exchange at period end less the compensation required by market participator who
would otherwise assume risks due to impossibility of selling the equity instrument on open market in designated
period.
When an available-for-sale financial asset is impaired, the cumulative loss arising from decline in fair value that
had been recognized in other comprehensive income is reclassified to the profit or loss even though the financial
asset has not been derecognized. The amount of the cumulative loss that is removed from equity is the difference
between the acquisition cost (net of any principal repayment and amortization) and current fair value, less any
impairment loss on that financial asset previously recognized in profit or loss.
If there are objective evidences showing that the value of available-for-sale debt instrument is recovered and it
relates to the matters happened after the impairment loss recognition, the impairment loss recognized shall be
reversed and accounted in current profit or loss. Impairment losses recognized for equity instrument investments
classified as available-for-sale are reversed through equity. However, impairment loss occurred by equity
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承德南江股份有限公司 2015 年半年度财务报告
instrument investment which is not quoted in an active market and whose fair value cannot be measured reliably
and derivative financial assets which are linked to the equity instrument and whose settlement is conditional upon
delivery of the equity instrument, shall not be reversed.
(2)Impairment provision for held-to-maturity investment
For held-to-maturity investment, if there is object evidence showing the investment is impaired, then impairment
loss is determined based on the difference between its fair value and present value of predicted future cash flow.
After provision, if there is evidence showing its value has been restored, the originally recognized impairment loss
can be reversed and included in current profit or loss, provided that the reversed carrying value shall not exceed
the amortized cost of the financial asset as at reversal date assuming no impairment provision had been made.
7. Offset of financial assets and financial liabilities
Financial assets and financial liabilities are stated in balance sheet separately without inner-offset. However, the
net amount after inner offset is stated in balance sheet date when the following conditions are all met:
(1) The Company has legal right to offset recognized amount and the right is enforceable;
(2) The Company plans to settle on a net basis, or simultaneously realize the financial assets and settle the
financial liabilities.
11. Account receivable
(1) Account receivable with single significant amount and withdrawal single item bad debt provision
Determine basis or amount standards for single significant Account with single significant amount: amount with one million
amount above
Conducted impairment testing separately, balance between the
Withdrawal method for bad debt provision of account receivable
present value of future cash flow and its carrying value, bad debt
with single significant amount:
provision withdrawal and reckoned into current gains/losses.
(2) Accounts receivable whose bad debts provision was accrued by combination of credit risk
characteristics portfolio
Combination Methods on withdrawal of bad debt provision
Combination 1 Age analysis method
Combination 2 Other method
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 included) 5.00% 5.00%
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
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承德南江股份有限公司 2015 年半年度财务报告
Combination Accrual ratio for receivable Accrual ratio forother receivable
Combination 2 0.00% 0.00%
(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, such as revocation from the debtor,
Reasons for withdrawal single item bad debt provision bankruptcy or dead, and still able to recover after 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 impairment losses
Withdrawal method for bad debt provision
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, finished goods of polyethylene and low value consumables etc.
2. Valuing of inventory
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
Perpetual inventory system
5. Low-value consumables are amortized on one-off amortization method
6. Relocation housing refers to the house for turnover purpose to arrange for relocation of residents, and
amortized evenly in 50 years.
7. Calculation method of the lands for development purpose
As for the pure land development project, the costs constitute costs of the land development; the project develop
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承德南江股份有限公司 2015 年半年度财务报告
along with the real estate, costs with clear burden of objects shall split into commercial house costs with actual
area.
8. Calculation method of the expenses of public supporting facilities
Public supporting facilities cannot be transfer with compensation: reckoned into commercial house costs by the
benefit ratio;
Public supporting facilities can transfer with compensation: take all supporting facilities as the cost calculation
subject, summarize the costs occurred.
13. Classified as assets held for sale
1. Recognition criteria of assets held for sale
The Company‘s component (or non-current asset) will recognize as held-for-sale while satisfied the followed
conditions simultaneously:
(1) the component can be promptly sold at its existing status only according to the practice terms in connection
with disposal of this kind of assets;
(2) the Company has already made resolution on disposal of such component, such as approved by shareholders in
line with regulations, have already approved by general meeting or relevant authority;
(3) the Company entered into irrevocable transfer agreement with the transferee;
(4) and this transfer will be completed within one year.
2. Accounting for assets held for sale
The company will adjust the predicted net residual value of the held for sale fixed assets so that the predicted net
residual value can reflect its fair value minus the costs of disposal, but the predicted net residual value should not
exceed the book value of the fixed asset when it was recognized as held for sale. If the book value is higher, the
difference between them should be charged into profit or loss for the current period as asset impairment loss.
Fixed assets held for sale shall not be depreciated or amortized, and is measured at carrying value and fair value
less costs of disposal (whichever is lower).
Other non-current assets like equity investments and intangible assets satisfying condition for held for sale should
be accounted for as shown above, other than deferred income tax assets, financial assets under Business
Accounting Standard No. 22-Measurement and Recognition of Financial Instruments, investment property
measured at fair value, biological assets, and rights from insurance contract.
14. Long-term equity investment
1. Recognition of investment cost
(1) As for the long-term equity investment formed from business combination under the same control, accounting
policy found in (IV) Accounting method for busines combination (not) under the same control of Note IV
(2) Long-term equity investment obtained by other means
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承德南江股份有限公司 2015 年半年度财务报告
For long-term equity investments obtained through payment with cash, then the actual payment shall be viewed as
initial investment cost. Inititial investment cost including the expenses, taxes and other necessary costs that
directly concerned with the long-term equity investment that acquired.
For long-term equity investments obtained through issuance of equity securities, then the fair value of such
securities shall be viewed as initial investment cost; for transaction expenses from issuing or own equity
instrument acquired, it can be deducted from the equity when such expenses attributable directly to equity
transaction.
Under the precedent condition that non-monetray assets exchanges are featured with commercial nature and fair
values of exchange-in or exchange-out assets can be reliably measured, long-term equity investment exchange-in
through non-monetary assets exchange shall be recognized with initial investment cost on the basis of the fair
value of the assets exchange-out, unless there is obvious evidence showing that fair value of exchange-in assets is
more reliable; as for non-monetray assets exchanges not satisfying such precedent condition, initial investment
cost of exchange-in long-term equity investment falls to the carrying value of exchange-out assets and relevant
taxes payable.
For long-term equity investments obtained through debt reorgnization, its initial investment cost is recognized
based on fair value.
2. Subsequent measurement and recognition of gains and losses
(1) Subsequent measurement
(1) Cost method
The long-term equity investment control by invested entity shall counted by cost method, and pricing on initial
investment cost, cost of the long-term equity investment shall be adjusted while additional investment or
dis-investment.
Other than payment actually paid for obtaining investment or cash dividend or profit included in consideration
which has been declared while not granted yet, the Company recognizes investment income according to its share
in the cash dividend or profit declared for grant by the invested unit.
(2)Equity method
The Company calculates long term equity investment in associates and joint ventures under equity method. For
certain equity investments in associates indirectly held through risk investment institutions, joint funds, trust
companies or similar entities including investment linked insurance fund, the Company measures the investment
at fair value through profit or loss.
where the initial investment cost of a long-term equity investment exceeds the Group‘s share of the fair value of
the investee‘s identifiable net assets at the time of acquisition, no adjustment is made to the initial investment cost.
Where the initial investment cost is less than the Group‘s share of the fair value of the investee‘s identifiable net
assets at the time of acquisition, the difference is recognized in profit or loss for the period.
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承德南江股份有限公司 2015 年半年度财务报告
Return on investments and other comprehensive income is recognized respectively by shares of net gains and
losses realized by the invested company and other comprehensive income after acquisition of long-term equity,
and book value of such investment is adjusted accordingly. Profit or cash dividends pro rata distributed by the
invested company are to minus book value of the relative long-term investment. Book value of long-term
investment is adjusted when changes occur other than net gains and losses, other comprehensive income and
profit distribution of the invested company, and is to reported in owners‘ equity accordingly
The Company should recognized net profit of invested unit after adjustment, based on fair value of vary
identifiable assets of invested unit while obtained investment, while recognized net profit or net losses of invested
units that should be enjoy by investment enterprise. the un-realized transaction gains/losses attributable to
investment enterprise, internally occurred between the Company, affiliated units and joint-ventures should
calculated by proportion of shares-holding which should be offset, than recognized investment gains/losses.
When the Company is confirmed to share losses of the invested units, the following order shall prevail for
disposal: first of all, offset carrying value of long-term equity investment. Second, for long-term equity investment
whose carrying value is not enough for offset, investment loss should be continued to recognize within the limit of
carrying value of other long-term equity which substantially forms net investment to invested units, to offset
carrying value of long-term items receivable. At last, after the aforesaid treatment, if enterprise still bears
additional duties according to investment contract or agreement, projected liabilities are recognized in accordance
to the the obligations which are expected to undertake, and then recorded in current gains and losses.
In the event that the invested unit realizes profit in later periods, the Company will adopt disposal adversed to the
above order after deduction the unrecognized share of loss, i.e. write off the carrying value of the recognized
projected liabilities, recover carrying value of long-term equity which substantially forms net investment to
invested unit and long-term equity investment, and recognize investment income at the same time.
3. Transfer of calculation for long term equity investment
(1) Measure at fair value transfer to equity method
For the equity investment originally held by the Company in which it has no control, common control or
significant influence over the investee and which is accounted for under recognition and measurement principle as
financial assets, in case that the Company becomes able to exercise significant influence or common control upon
the investee due to additional investment while no control is reached, the sum of fair value of the originally held
equity investment as determined under Business Accounting Principles No.22- Recognition and Measurement
Principle as Financial Assets plus cost of the new investment shall be deemed as the initial investment cost upon
calculation under equity method.
If the originally held equity investment is classified as available for sale financial assets, the difference between its
fair value and carrying value and the accumulated fair value movement which is originally included in other
comprehensive income shall be transferred to current period gains and losses under equity method.
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承德南江股份有限公司 2015 年半年度财务报告
In case that the initial investment cost under equity method is lesser than share of fair value of the investee‘s net
identifiable assets as of the date when additional investment is made as calculated based on the latest shareholding
proportion upon additional investment, carrying value of the long term equity investment shall be adjusted against
such difference which is included in current period non-operating income.
(2) Measure at fair value or calculation under equity method transfer to calculation under cost method
For the equity investment originally held by the Company in which it has no control, common control or
significant influence over the investee and which is accounted for under recognition and measurement principle as
financial instrument, or for long term equity investment originally held in associates or joint ventures, in case that
the Company becomes able to exercise control over investee not under common control due to additional
investment, the sum of fair value of the originally held equity investment plus cost of the new investment shall be
deemed as the initial investment cost upon calculation under cost method when preparing separate financial
statement.
For other comprehensive income as recognized under equity method in respect of equity investment held prior to
acquisition date, when the Company disposes this investment, the aforesaid income shall be accounted for on the
same basis as the investee would otherwise adopt when it directly disposes relevant assets or liabilities.
For equity investment held prior to acquisition date which is accounted for under Business Accounting Principles
No.22- Recognition and Measurement of Financial Assets, the accumulated fair value movement which originally
included in other comprehensive income shall be transferred to current period gains and losses upon calculation
under cost method.
(3) Calculation under equity method transfer to fair value measurement
In case that the Company lost common control or significant influence upon investee due to disposal of part equity
investment, the remaining equity investment shall be calculated under Business Accounting Principles No.22-
Recognition and Measurement of Financial Assets, and the difference between its fair value and carrying value as
of the date when the Company lost common control or significant influence shall be included in current period
gains and losses.
For other comprehensive income as recognized under equity method in respect of the original equity investment,
when the Company ceases calculation under equity method, the aforesaid income shall be accounted for on the
same basis as the investee would otherwise adopt when it directly disposes relevant assets or liabilities.
(4) Cost method transfer to equity method
In case that the Company lost control upon investee due to disposal of part equity investment, and if the remaining
equity investment can exercise common control or significant influence over the investee, equity method shall be
adopted when preparing separate financial statement, and the remaining equity investment shall be adjusted as if it
had been stated under equity method since the acquisition.
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承德南江股份有限公司 2015 年半年度财务报告
(5) Cost method transfer to fair value measure
In case that the Company lost control upon investee due to disposal of part equity investment, and if the remaining
equity investment cannot exercise common control or significant influence over the investee, Business Accounting
Principles No.22- Recognition and Measurement of Financial Assets shall be adopted for accounting treatment
when preparing separate financial statement, and the fair value and carrying value as of the date when control is
lost shall be included in current period gains and losses.
4. Disposal of long term equity investment
Difference between carrying value and actual acquisition price in respect of disposal of long term equity
investment shall be included in current period gains and losses. For long term equity investment under equity
method, the Company shall adopt the same basis as the investee directly disposes relevant assets or liabilities
when disposing this investment, and account for the part originally included in other comprehensive income under
appropriate proportion.
If the terms, conditions and economic impact of each transaction involved in the disposal by steps of investment
in subsidiaries fall into one or more of the following situations, such transactions will be accounted for as a
package deal:
1. Such transactions are entered into simultaneously or in the case of considering the impact of each other;
2. Such transactions as a whole in order to reach a complete commercial result;
3. The occurrence of one transaction is subject to that of at least one other transaction;
4. A transaction alone is not economic, but otherwise when considered with other transactions.
Enterprises that lose control of their original subsidiaries due to the disposal of partial equity investment or
otherwise, and therefore disqualify a package deal, should prepare the relevant accounting treatment in
differentiation with individual financial statements and consolidated financial statement:
(1) In separate financial statement, as for disposal of equity interest, difference between carrying value and actual
acquisition price shall be included in current period gains and losses. In case that the remaining equity interests
can exercise common control or significant influence over investee, it shall be stated under equity method in stead,
and shall be adjusted as if the remaining equity interests had been stated under equity method since the acquisition.
In case that the remaining equity interests cannot exercise common control or significant influence over investee,
it shall be accounted for under Business Accounting Principles No.22- Recognition and Measurement Principle of
Financial Instruments, and the difference between its fair value and carrying value as of the date then the
Company lost control shall be included in current period gains and losses.
(2) In consolidated financial statement, for those transactions occurred before lost of control in subsidiaries, the
difference between disposal price and share of net assets of subsidiaries since purchase date or combination date
shall be used to adjust capital reserve (equity premium), and if capital reserve is insufficient to offset, then it shall
adjust retained earnings; when the Company lost control in a subsidiary, the remaining equity interests would be
re-measured at the fair value as of the control-lost date. The sum of consideration gained from the disposal of
equity and the fair value of remaining equity minus the share of net assets of original subsidiaries since the day of
purchase and based on its original shareholding ratio is credited into investment gain for the current period, and
off-set the goodwill at the same time. Other comprehensive income in relation to equity investments of original
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承德南江股份有限公司 2015 年半年度财务报告
subsidiaries should be transferred to investment gain for the period at the time of loss of control.
Each transaction involved in the disposal of equity investments of subsidiaries until loss of control falls into a
package deal, carrying accounting treatment on transaction of losing control rights and disposing the company,
and should be accounted for accordingly in differentiation with individual financial statements and consolidated
financial statements:
(1) In consolidated financial statements, difference between each payment from disposal of an equity and the book
value of such long-term equity investment before the loss of control should be recognized as other comprehensive
income and at the time of loss of control, transferred to profit or loss for the current period.
(2) In consolidated financial statements, difference between each payment from disposal of a subsidiary and the
share of its net assets through investment before the loss of control should be recognized as other comprehensive
income and at the time of loss of control, transferred to profit or loss for the current period.
5. Criteria for common control and significant influence
Where the Company jointly controls an arrangement with other participators under agreed terms, and decisions
which materially affect return of such arrangement can only exist when other participators unanimously agree on
the decisions, the Company is deemed to jointly control this arrangement with other participators, and the
arrangement belongs to joint venture arrangement.
In case of a joint venture arrangement concluded through separate entity, when the Company is judged to be
entitled to the net assets of the separate entity under relevant agreements, the entity shall be viewed as a joint
venture under equity method. However, when the Company is judged to be not entitled to the net assets of the
separate entity under relevant agreements, the entity shall be viewed as a joint operation, in which case, the
Company recognizes items relating to its share of interests from the joint operation and accounts for according to
relevant business accounting rules.
Significant influence refers to that investor has right to participate in making decisions relating to the financial and
operational policies of the investee, while not able to control or jointly control (with others) establishment of these
policies. The following one or more conditions are based to judge whether the Company has significant influence
over investee with consideration of all facts and situations: (1)has delegate in the board of directors or similar
authority organs of investee; (2)participate in establishing financial and operational policies of the investee;
(3)occur material transactions with the investee; (4)delegate management to the investee; (5)provide key technical
data to the investee.
15. Investment real estate
Measurement model of investment real estate
Measure by cost
Depreciation or amortization method
Investment real estate is defined as the real estate with the purpose to earn rent or capital appreciation or both,
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承德南江股份有限公司 2015 年半年度财务报告
including the rented land use rights and the land use rights which are held and prepared for transfer after
appreciation, the rented buildings.
The investment property of the Company is accounted at its cost. Cost of investment property purchased from the
external sources includes purchase payment, related taxes and other expenditures which can be directly
attributable to such assets; Cost of investment property constructed by the Company comprise of the necessary
expenditure occurred during the construction for reaching the condition of planned use.
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 (year) Predicted rate of net salvage value Depreciation(amortization)
rate per annum
Land Use Right 50 0%-10% 1.80%-2.00%
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
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.
16. Fixed asset
1. Recognition
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing
services, lease or for operation & management, and have more than one year of service life. Fixed assets should be
recognized for qualified the followed conditions at the same time: (1) It is probable that the economic benefits
associated with the assets will flow into the Company; (2) The cost of the assts can be measured reliably.
(2) Depreciation method
Category Depreciation method Estimated useful life Estimated residual rate Annual depreciation rate
Houses and buildings Straight-line depreciation 20-28 5% 3.39%-4.75%
Machinery equipment Straight-line depreciation 4-5 5% 19.00%-23.75%
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承德南江股份有限公司 2015 年半年度财务报告
Transportation
Straight-line depreciation 5-20 5% 4.75%-19.00%
equipment
Other equipment Straight-line depreciation 3-5 5% 19.00-31.67%
(3) Basis of asserting, pricing and depreciation method on fixed assets under financing lease
A fixed asset leased by the Company is recognized as the fixed asset held under finance lease if one or more of the
following criteria is met: (1) Upon the expiry of the lease term, the ownership is transferred to the Company. (2)
the Company has the option to purchase the asset at a predetermined price that is expected to be sufficiently lower
than the fair value at the date the option becomes exercisable and it is reasonably ascertained at the inception of
lease that the option will be exercised.(3) the lease term approximates the useful life of the relevant asset even if
the ownership is not transferred. (4) at the inception of the lease, the present value of the minimum lease payments
is substantially equivalent to the fair value of the leased asset.(5) the leased assets are of such a specialized nature
that only the Company can use them without major modification. A fixed asset held under finance lease is initially
recognized at the lower of fair value of the leased asset and the present value of the minimum lease payments,
while the amount of the minimum lease payments will be recognized as the entry value of long-term account
payable, the difference between them will be recognized as unrecognized financing costs. The initial direct costs
such as commissions, attorney‘s fees, travelling expenses, and stamp duties attributable to the leased item incurred
during the process of lease negotiating and signing the leasing agreement shall be recorded in the asset value.
Unrealized finance costs will be amortized using actual interest rate method over each period during the lease
terms. The Company adopts depreciation policies for leased assets consistent with those of self-owned fixed assets
for the purpose of calculating the depreciation of a leased asset. If it is reasonable to be certain that the lessee will
obtain the ownership of the leased asset when the lease term expires, the leased asset shall be fully depreciated
over its useful life. If it is not reasonable to be certain that the lessee will obtain the ownership of the leased asset
at the expiry of the lease term, the leased asset shall be fully depreciated over the shorter one of the lease term or
its useful life.
17. Construction in process
1. Classification of constructions under progress
The constructions under progress of the Company are accounted for by fund project.
2. Standard and point of time for construction in process carrying forward to fixed assets
Fixed asset is booked with the entire expenditures occurred in the construction in process till it arrives at predicted
state for use. For those constructions in process of fixed assets which have already arrived at the predicted state
for use, while still with absence of completion settlement, they shall be carried forward to fixed assets at the
estimated value based on engineering budget, construction cost or actual cost commencing from the date of arrival
of the predicted state for use. Meanwhile, they shall be also subject to the depreciation policies applicable to fixed
assets of the Company for provision of depreciation. Once completion settlement is made, the original temporary
estimated value shall be adjusted at the effective cost. However, the original provision of depreciation remains
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unchanged.
3. Impairment test and impairment provision for construction in process
The Company determines whether there is evidence of impairment that may occur upon construction in progress
at end of each period.
If there is indication of impairment of construction in progress, the Company shall estimate its recoverable
amount. The recoverable amount is to be determined by the higher between the net price of the fair value of
construction in progress after subtracting costs of disposal and the present value of expected future cash flow from
construction in progress.
When the recoverable amount of construction in progress is below their book value, the book value of
construction in progress shall be written down to its recoverable amount, and the amount of write-down shall
recognized as impairment loss of construction in progress, and included into current profits and losses. At the
same time, the provision for depreciation of construction in progress shall be accrued.
After the recognition, the impairment loss of construction in progress shall not be reversed in subsequent
accounting period.
If there are indications showing that impairment of certain construction in progress is possible, the Company shall
estimate its recoverable amount based on individual construction. If difficult to do so, the Company shall
determine the recoverable amount of the assets group on basis of the asset groups to which the construction in
progress belongs.
18. Borrowing expenses
1. Recognition of the borrowing expenses capitalization
Borrowing expenses that attributed for purchasing or construction of assets that are complying with capitalizing
conditions start to be capitalized and counted as relevant assts cost; other borrowing expenses, reckoned into
current gains and losses after expenses recognized while occurred.
Assets satisfying the conditions of capitalization are those assets of fixed, investment real estate etc. which need a
long period of time to purchase, construct, or manufacturing before becoming usable.
Capitalizing for borrowing expenses by satisfying the followed at same time:
(1) Assets expense occurred, and paid as expenses in way of cash, non-cash assets transfer or debt with interest
taken for purchasing, constructing or manufacturing assets that complying with capitalizing condition;
(2) Borrowing expenses have occurred;
(3) Necessary activities occurred for reaching predicted usable statues or sale-able status for assets purchased,
constructed or manufactured.
2. Period of capitalization
Capitalizing period was from the time star capitalizing until the time of suspended capitalization. The period for
borrowing expensed suspended excluded in the period.
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If purchasing, construction, or manufacturing process of an asset satisfying the conditions of capitalization
reached its predicted usable status or sale-able status, capitalization suspended for borrowing expenses.
If purchasing, construction, or manufacturing process of an asset satisfying the conditions of capitalization
completed projects and usable independently for part of the projects, borrowing expenses for this kind of assts
shall suspended capitalization.
If the assets have been completed in every part, but can be reached the useful status or sale-able status while
completed entirely, the borrowing expense shall be suspended for capitalization while the assets completely
finished in whole.
3. Period of suspended
If purchasing, construction, or manufacturing process of an asset satisfying the conditions of capitalization is
suspended abnormally for over 3 months, capitalizing of borrowing expenses shall be suspended; the suspended
assets that satisfying the conditions of capitalization meets the necessary procedure of reaching predicted usable
status or sellable status, capitalizing of borrowing expenses shall be resumed. The borrowing expenses occurred
during the period of suspended shall reckon into current gains and losses until the purchasing, construction, or
manufacturing process is resumed for capitalizing.
4. Calculation for capitalization amount
Interest expenses practically occurred at the current term of a special borrowing are capitalized after deducting of
the bank saving interest of unused borrowed fund or provisional investment gains
Capitalization amounts of common borrowings are decided by the weighted average of exceeding part of
accumulated asset expenses over the special borrowing assets multiply the capitalizing rate of common
borrowings adopted. Capitalization rates are decided by the weighted average of common borrowings.
For those expenses with discount or premium, determined the amortizable discount or premium in every fiscal
year by effective interest method, than adjusted interest amount in every period
19. 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:
(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.
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承德南江股份有限公司 2015 年半年度财务报告
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
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%
On 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.
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20. Intangible assets
(1) Pricing method, service life and impairment test
An intangible asset is an identifiable non-monetary asset without physical substance owned or controlled by the
Company, including land use right and non-patented technology etc.
1. Initial measurement of intangible assets
For those intangible assets purchased from outside, the purchase value, relevant taxes and other payments
attributable to predicted purpose obtained should recognized as cost for this assts. For those purchased amount
that paid overdue exceeded the normal credit condition, owns financing natures actually, the cost should be
recognized based on the current value while purchased
As for the intangible assets acquired from the debtor in debt restructuring for the purpose of settlement of debt, the
fair value of the intangible assets shall be based to determine the accounting value. The difference between the
carrying value of restructured debt and the fair value of the intangible assets use for settlement of debt shall be
recorded in current gains and losses.
With the preceding conditions that non-monetary assets exchange has commerce nature and the fair value of the
assets exchanged in or out can be measured reliably, the intangible assets exchanged in through non-monetary
assets exchange are accounted at the value based on the fair value of assets exchanged out, unless there is obvious
evidence showing the fair value of assets exchanged in is more reliable; for non-monetary assets exchange not
qualifying for the preceding conditions, the carrying value of assets exchanged out and related taxes payable shall
be viewed as the cost of intangible assets exchanged in, without recognition of gains and losses.
Intangible assets obtained by means of enterprise mergered under common control, recognized book-keeping
value by the book value of mergered party; Intangible assets obtained by means of enterprise mergered under
different control, recognized book-keeping value by the its fair value.
For those cost of intangible assets development internally including: the used materials, labor cost and register
charge for development; amortization for other patent and concession used and interest expense satisfying the
capitalization condition during process of development; other directly expense before reached its predated useful
purpose.
2. Subsequent measurement
Analysis and determined the service life for intangible assts while obtained. And calssified into intangible assets
with limited useful life and assets without certain service life
(1) Intangible assets with limited useful life
Those intangible assets with limited useful life are evenly amortized on straight basis from the date when they
become useable to the end of expected useful life. Particular about the estimation on intangible assets with limited
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承德南江股份有限公司 2015 年半年度财务报告
service life:
Item Predicted useful life Basis
Patent right, trademark right, non-patents and 5-year Within the terms of contractual rights or other statutory
outsourcing software rights
Land use right 50-year Within the terms of contractual rights or other statutory
rights
At end of report term, revising will be performed on the useful life of intangible assets with limited useful life and
the methods of amortizing.
Being revised, the useful life of intangible assets and amortization method at period-end shows the same as
previous
(2)Criterion for intangible assets without certained service life
Intangible assets for which it is impossible to predict the term during which the assets can bring in economic
benefits are viewed as intangible assets with indefinite life.
Intangible assets with indefinite life are not amortized during the holding period, and useful life is re-reviewed at
the end of each accounting period. In case that it is still determined as indefinite after such re-review, then
impairment test will be conducted continuously in every accounting period.
At end of year, revising will be performed on the useful life of intangible assets with uncertain life
The Company has no such intangible assets without certained service life after review.
(2) Accounting policy for expenditure of internal R&D
Research stage: stage of the investigation and research activities exercising innovative-ness for new science or
technology knowledge obtained and understanding.
Exploitation stage: stage of the activities that produced new or material advance materials, devices and products
that by research results or other knowledge adoption in certain plan or design before the commercial production or
usage.
The expenditure of the research stage in R&D project internally shall reckon into current gains and losses while
occurred.
Intangible assets recognized for expenditure in exploitation stage by satisfying the followed at same time:
(1) Owes feasibility in technology and completed the intangible assets for useful or for sale;
(2) Owes the intention for completed the intangible assets and for sale purpose;
(3) Way of profit generated including: show evidence that the products generated from the intangible assets owes
a market or owes a market for itself; if the intangible assets will use internally, than show evidence of useful-ness;
(4) Possess sufficient technique, financial resources and other resources for the development of kind of intangible
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承德南江股份有限公司 2015 年半年度财务报告
assets and has the ability for used or for sale;
(5) The expenditure attributable to the exploitation stage for intangible assets could be measured reliably.
21. Impairment of long term assets
Long term asset is judged whether for which there is indication of impairment on balance sheet date. If there is
indication of impairment, the Company would estimate its recoverable amount based on single asset; if it is
difficult to estimate the recoverable amount of single asset, then the assets group which the single asset belongs to
is based to determine the recoverable amount of the assets group.
Recoverable amount of an asset is determined at the higher of its fair value less disposal fee and present value of
its predicted future cash flow.
If measurement of recoverable amount shows that the recoverable amount of long term asset is lower than
carrying value, then the carrying value shall be deducted to recoverable amount, with the deducted amount
recognized as impairment loss which is included in current period gains and losses, meanwhile, asset impairment
provision shall be made accordingly. Once recognized, asset impairment loss would not be reversed in future
accounting period.
Once an asset is recognized for impairment loss, its depreciation or amortization expense would be adjusted in
future periods, so as to systematically allocate the adjusted asset carrying value (after deduction of predicted net
residual value) during the remaining useful life.
Goodwill arising from business combination and intangible assets with indefinite useful life shall be tested
annually for impairment whether or not there is indication of impairment.
Goodwill is tested for impairment with the related assets group. When conducting impairment test for relevant
asset group with inclusion of goodwill, in case that there is indication of impairment for such asset group,
impairment test would be firstly conducted in respect of the asset groups without inclusion of goodwill. Then, it
shall calculate the recoverable amount and determine the corresponding impairment loss as compared to its
carrying value. Second, asset group with inclusion of goodwill would be tested for impairment. If it is found after
comparison between the carrying value and recoverable amount of the asset group that the recoverable amount is
less than carrying value, the Company would recognize impairment loss for goodwill.
22. Long term prepaid expense
1. Method of amortization
Long term prepaid expense represents the expense which the Company has occurred and shall be amortized in the
current and later periods with amortization period exceeding one year.
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承德南江股份有限公司 2015 年半年度财务报告
2. Year of amortization
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.
23. Staff remuneration
(1) Accounting treatment of short-term remuneration
Short term remuneration refers to all the staff remuneration payable by the Company to its staff within 12 months
after the end of annual reporting period in which staff provides relevant services, other than post office benefit and
dismissal benefits. The Company recognizes short term remuneration payables as liabilities during the accounting
period during which staff provides services, and includes in cost and expense of relevant asset according to the
beneficial parties of such services.
(2) Accounting treatment of post office benefits
Post office benefits refer to kinds of remuneration or benefits granted by the Company to staff for their provision
of service upon retirement or release of employment, other than short term remuneration and dismissal benefits.
Post benefit plan is categorized as defined withdraw plan and defined benefit plan.
Defined withdraw plan under post office benefit mainly represents participation into social basic pension
insurance and unemployment insurance operated by labor and social security authorities. During the accounting
period when employee provides services for the Company, the contribution calculated under defined withdraw
plan would be recognized as liabilities and included in current gains and losses or relevant asset cost.
(3) Accounting treatment of dismissal benefit
Dismissal benefit represents compensation paid to employees for release of employment before expiration or as
compensation for their willing of cut, which is included in current gains and losses during the period when it
occurs.
(4) Accounting treatment of other long term staff benefits
The other long term staff benefits offering to the employees, satisy the defined contribution plans, in line with the
defined contribution plans for accounting treatment, others are treated as defined-benefit plan.
24. 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
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can be reliably measured, accrued liabilities are recognized.
1. Recognition criteria of accrued liability
The Company recognizes the accrued 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 of accrued liabilities
Accrued 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.
25. Share-based payment
1. Category of share-based payment
Share-based payment of the Company divided into share-based payment settled by equity and by cash
2. Determination of fair value of equity instruments
If there is an active market for an equity instrument granted such as share option, the quoted price in the active
market is used to establish the fair value of the equity instrument. If there is no active market for the equity
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承德南江股份有限公司 2015 年半年度财务报告
instrument granted such as share option, the option pricing model is used to determine the fair value. Option
pricing model is elected after taking into account the following factors: (1)exercise price of the option;
(2)effective period of the option; (3)prevailing price of the subject shares; (4)predicted fluctuation rate of share
prices; (5)predicted dividend of shares; (6)risk-free interest rate of the option in effective period.
When determining fair value of equity instruments on the date of grant, influences from market conditions among
conditions available for exercising rights and those not available for exercising rights as provided in share-based
payment agreement should be considered. If there is condition not available for exercising rights in respect of
share-based payment, cost expenses attributable to services received can be recognised provided that employees
or other parties satisfy all the non-market conditions among conditions available for exercising rights (such as
service term).
3. Bases for determining the best estimate for exercisable equity instruments
On each balance sheet date during the vesting period, best estimate shall be made based on the latest available
information on change of employees who are entitled to exercise right, and number of exercisable equity
instruments shall be amended accordingly. On exercise date, number of the final predicted exercisable equity
instruments shall accord to the actual number of exercisable instruments.
4. Accounting for implementation, amendment or termination of share-based payment plan
Equity-settled share-based payment is measured at fair value of equity instruments granted to staff. For equity
instruments which are exercisable immediately upon grant, they are included in relevant costs or expenses at fair
value of the instruments as of the date of grant, with increase of capital reserve accordingly. For instruments for
which exercise is conditional upon completion of service in vesting period or satisfaction of required results,
services received in current period are included in relevant costs or expenses and capital reserve at the fair value
of the equity instrument as of the date of grant based on the best estimate of the numbers of exercisable equity
instruments on each balance sheet date during the vesting period. Recognized relevant costs or expense and total
owners‘ equity will not be adjusted after the exercise date.
The cash-settled share-based payment shall be measured at the fair value of liabilities identified on the basis of
shares or other equity instruments undertaken by the Group. For the instruments that may be exercised
immediately after the grant, the fair value shall, on the date of the grant, be recognized in relevant costs or
expenses and the liabilities shall be increased accordingly. For instruments that cannot be exercised until the
services are fully provided during vesting period or specified performance targets are met, on each balance sheet
date within the vesting period, the services acquired in the current period shall, based on the best estimate of the
number of exercisable instruments, be recognized in relevant costs or expenses and the corresponding liabilities at
the fair value of the liability incurred by the Group. The Group shall, on each balance sheet date and on each
account date prior to the settlement of the relevant liabilities, re-measure the fair values of the liabilities and
include the changes in the profit or loss for the period.
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承德南江股份有限公司 2015 年半年度财务报告
5. Amendment and relevant accounting treatment for those with amendment clauses and condition concerned
During the vesting period, where an equity instrument award is cancelled, it is treated as if it had vested on the
date of cancellation, and any expense not yet recognized for the award is included immediately into the profit or
loss for the period and capital reserve is recognized. Where employees or other parties are permitted to choose to
fulfill non-vesting conditions but have not fulfilled during the vesting period, equity instrument award are deemed
cancelled.
26. Revenue
Revenue of the Company mainly including revenue from goods selling, sale of real estate, revenue from property
rent-out and labor service revenue etc.
1. Recognition standards of income from commodity sales:
When main risks and rewards attached to the ownership of goods have been transferred to the buyer, reserved
neither continuous management power nor effective control over the goods, incoming payment can be measured
reliably, relative financial benefit possibly inflow to the company, cost occurred or will occur can be reliably
measured, sales income of goods is recognized.
2. Sales revenue recognition for property industry:
(1)construction completion and qualified acceptance of properties;
(2)commercial property pre-sale license granted by relevant state resources and housing bureau;
(3)enter into sales contract;
(4)sales contract has been certified and confirmed by property exchange center;
(5)receive property price or obtain payment certificate from buyers;
(6)complete deliver procedure for commercial properties.
Upon satisfaction of all the above conditions, the Company recognises sales revenue
3. Recognition of property leasing revenue:
Property leasing revenue is recognised when the Company receives rental or obtain payment certificate from
buyers based on the payment date and rental amount to be paid by lessee as provided in the contract or agreement
entered into between the Company and the lessee.
4. Labor service revenue
(1) Income of the contract can be measured reliably
(2) Financial benefit attached to the contract is possibly inflow to the company
(3) Schedule of the contracted project can be determined reliably;
(4) and the relevant amount of cost incurred or to be incurred can be measured reliably
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承德南江股份有限公司 2015 年半年度财务报告
5. 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
27. Government grants
(1) Criterion and accounting treatment on government grants with assets concerned
Government grants related with assts are recognized as deferred income, and equal division within the service life
of the relevant assets, reckoned into current gains/losses; as for the government grants measured by nominal
amount, reckoned into current gains/losses directly.
(2) Criterion and accounting treatment on government grants with revenue concerned
Government grants in relation to revenues, shall be respectively the following circumstances: ①Shall be
recognized as deferred income upon acquisition and recorded in current profit and loss during the periods in
which relevant expenses are recognized when such grants are for the purposes of compensating relevant expenses
or losses of an enterprise in future periods; ②and shall be directly credited to current profit and loss upon
acquisition when such grants are for the purposes of compensating occurred relevant expenses or losses of an
enterprise.
28. 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.
3. Deferred tax assets and liabilities are offset if all the following conditions are met
(1) An enterprise has the legal rights to settle the income tax assets and income tax liabilities for the current period
by net amount;
(2) They relate to income taxes levied by the same tax authority on either the taxable entity has a legally
enforceable right or set off current income tax assets against current income tax liabilities, and different taxable
entities which either intend to settle the current income tax liabilities and assets on a net basis, or to realize the
57
承德南江股份有限公司 2015 年半年度财务报告
assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax
liabilities or assets are expected to be settled or recovered.
Normally in separate financial statement, current income tax assets and liabilities and deferred income tax assets
and liabilities are stated at the net amount after offset. In consolidated financial statement, current income tax
assets or deferred income tax assets of parties included in consolidation scope will not be offset with current
income tax liabilities or deferred income tax liabilities of other parties, unless the companies involved has legal
right for settlement on a net basis and intend to make settlement in such way.
29. 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.
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
58
承德南江股份有限公司 2015 年半年度财务报告
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.
30. Other significant accounting policies and accounting estimates
31. Changes of main accounting policy and estimate
(1) Changes of accounting policies
□ Applicable √ Not-applicable
(2) Changes in accounting estimates
□ Applicable √ Not-applicable
32. Other
VI. Taxes
1. Main tax category and tax rate
Taxes Basis Rate
VAT Revenue of commodity sales 17%、13%
Money of house received in advance and
Business tax 5%
taxable income
Urban maintenance and construction tax Turnover tax payable 5%
Enterprise income tax Taxable income 25%
Rental income or original value of the
Property tax 12% or 1.2%
property
Land appreciation tax Appreciation value or pre-requisitioned Progressive rates
Educational surtax Turnover tax payable 3%
Local educational surtax Turnover tax payable 2%
As for the taxpaying body with different tax rate for enterprise income tax, disclosed explanations
Taxpaying body Rate for income tax
Nanjiang Asia Investment 16.5%
59
承德南江股份有限公司 2015 年半年度财务报告
2. Tax preference
3. Other
VII. Notes to the main items of consolidate financial statements
1. Monetary funds
In RMB
Item Ending balance Opening balance
Cash 181,309.10 33,252.06
Bank deposit 66,018,497.43 35,549,107.84
Other monetary funds 2,970,564.47 1,416,185.27
Total 69,170,371.00 36,998,545.17
Other explanation
Monetary fund with restrictions:
Item Ending balance Opening balance
Margin of housing mortgage 2,970,564.47 1,416,185.27
Total 2,970,564.47 1,416,185.27
Closing balance of monetary fund increased 32,171,825.83 Yuan over that of period-begin with 86.95% up, mainly
because the money received in advance for house-sales increased in the Period
2. Accounts receivable
(1) Accounts receivable by type
In RMB
Ending balance Opening balance
Provision for bad
Book balance Book balance Provision for bad debts
Type debts
Book
Book value
Proportio Provision value Proportio Provision
Amount Amount Amount Amount
ratio ratio
n n
Accounts receivable
accrued for provision 4,620,56 154,051. 4,466,516 2,876,7 154,051.0 2,722,676.6
100.00% 3.33% 100.00% 5.36%
of bad debt by 7.79 09 .70 27.75 9 6
portfolio
4,620,56 154,051. 4,466,516 2,876,7 154,051.0 2,722,676.6
Total 100.00% 3.33% 100.00% 5.36%
7.79 09 .70 27.75 9 6
Accounts receivable with large single amount and accrued for provision of bad debt on a single basis at
period-end:
□ Applicable √ Not-applicable
Accounts receivable accrued for provision of bad debt by aging analysis method in portfolio:
√ Applicable □ Not-applicable
60
承德南江股份有限公司 2015 年半年度财务报告
In RMB
Ending balance
Aging
Accounts receivable Provision for bad debts Provision ratio
Within 1 year
Subtotal within one year 2,720,047.40 140,431.49 5.16%
1-2 years 74,151.35 13,619.60 18.37%
Total 2,794,198.75 154,051.09
Portfolio recognized:
Accounts receivable accrued for provision of bad debt by percentage of balance in portfolio:
□ Applicable √ Not-applicable
Accounts receivable accrued for provision of bad debt by other methods in portfolio:
√Applicable □Not-applicable
Ending balance
name of portfolio
Accounts receivable Provision for bad debts Provision ratio (%)
Yu Dexue 1,300,000.00 —— ——
Yu Chao 211,391.55 —— ——
Zhang Tiemei 210,000.00 —— ——
Total 1,721,391.55 —— ——
Portfolio recognized:
Accounts receivable accrued for provision of bad debt by other methods in portfolio was 0 Yuan, mainly take the low risks of
un-recoverable into consideration
(2) Provision for bad debts accrued, regain or switch back in the Period
In the Period, Yuan accrued for provision of bad debts; no provision for bad debts regains or switch back in the
Period.
Including major amount of bad debt provision regain or switch back in the Period:
In RMB
Unit Amount regain or switch back Way of regain
(3) Account receivable actual charge off in the Period
In RMB
Item Amount written off
Written-off for the major receivable:
In RMB
Verification Arising from related
Company Nature Amount written off Reason for write-off
procedures transaction (Y/N)
Explanation for write-off of receivables:
61
承德南江股份有限公司 2015 年半年度财务报告
(4) Top 5 receivables at ending balance by arrears party
Total year-end balance of top five receivables by arrears party amounting to 4,441,438.95 Yuan, takes 96.12 percent
of the total account receivable at year-end, bad debt provision accrual correspondingly at year-end amounting as
154,051.09 Yuan.
Company Ending balance Ratio in ending account Bad bebt provision
receivable (%) accrual
No.1 2,320,047.40 50.21% 116,513.59
No.2 1,300,000.00 28.14%
No.3 400,000.00 8.66% 37,537.50
No.4 211,391.55 4.58%
No.5 210,000.00 4.54%
Total 4,441,438.95 96.12% 154,051.09
(5) Account receivable derecognition due to financial assets transfer
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Other explanation:
3. Prepayments
(1) Aging analysis of repayment
In RMB
Ending balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 13,766,725.24 71.05% 7,748,545.39 99.59%
1-2 years 5,577,300.20 28.79%
2-3 years 3,400.00 0.04%
Over 3 years 31,600.00 0.16% 28,200.00 0.36%
Total 19,375,625.44 -- 7,780,145.39 --
Reasons for significant repayment with over one year age without settle:
Unit Ending balance Aging Reasons failure to settle on time
Chengde Real Estate Guaranty 31,600.00 Over 3 years Loans outstanding for house buyers
Company
Total 31,600.00 --- ---
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承德南江股份有限公司 2015 年半年度财务报告
(2) Top five prepayment collected by objects at ending balance
Unit Ending amount Ratio in prepayment Time of repayment Un-settle reasons
(%)
SABIC (Shanghai) Trading Co., Ltd. 5,640,000.00 29.11% Within 1 year Account in transit
during credit period
Tianjin Development Zone Jingang Weiye 5,490,100.00 28.34% Account in transit
1-2 years
International Trading Co., Ltd. during credit period
MPSB DEVELOPMENTSDN.BHD 4,588,500.00 23.68% Within 1 year Before the settlemet
period
Chengde Greatwall Construction Group 2,020,000.00 10.43% Within 1 year Before the settlemet
Co., Ltd. period
Beijing Sudian Energy Technology Co., 421,580.00 2.18% Within 1 year Before the settlemet
Ltd. period
Total 18,160,180.00 93.73%
Other explanation:
Balance of prepayment at period-end increased 11,595,480.05 Yuan over that of period-begin with 149.04% up,
mainly due to the unsettlement of advance payment.
4. Other account receivables
(1) Other account receivables by type
In RMB
Ending balance Opening balance
Provision for bad
Book balance Book balance Provision for bad debts
Type debts
Book
Book value
Proportio Provision value Proportio Provision
Amount Amount Amount Amount
ratio ratio
n n
Other receivables
with large single
2,709,27 2,709,27 2,709,2 2,709,273
amount and accrued 2.14% 100.00% 17.08% 100.00%
3.00 3.00 73.00 .00
for provision of bad
debt on a single basis
Other receivables
accrued for provision 117,431, 211,701. 117,219,7 11,220, 212,101.2 11,008,292.
96.34% 0.18% 70.76% 1.89%
of bad debt by 448.18 28 46.90 393.72 8 44
portfolio
Other receivables
with minor single
1,927,95 1,927,95 1,927,9 1,927,957
amount but accrued 1.52% 100.00% 12.16% 100.00%
7.70 7.70 57.70 .70
for provision of bad
debt on a single basis
63
承德南江股份有限公司 2015 年半年度财务报告
122,068, 4,848,93 117,219,7 15,857, 4,849,331 11,008,292.
Total 100.00% 3.83% 100.00% 30.58%
678.88 1.98 46.90 624.42 .98 44
Other receivables with large single amount and accrued for provision of bad debt on a single basis at period-end:
√ Applicable □ Not-applicable
In RMB
Other account Ending balance
receivables(by unit) Other account receivable Provision for bad debts Provision ratio Reason for provision
Claims obtained from Estimated unable to
1,209,273.00 1,209,273.00 100.00%
auction collected
Non-Taxable Revenue
Estimated unable to
Authority of Chengde 1,500,000.00 1,500,000.00 100.00%
collected
County
Total 2,709,273.00 2,709,273.00 -- --
Other receivables accrued for provision of bad debt by aging analysis method in portfolio:
√ Applicable □ Not-applicable
In RMB
Ending balance
Aging
Other account receivable Provision for bad debts Provision ratio
Within 1 year
Subtotal within one year 2,550,032.01 80,674.57 3.16%
1-2 years 287,885.00 57,577.00 20.00%
2-3 years 138,911.00 69,449.71 50.00%
Over 3 years 4,000.00 4,000.00 100.00%
Total 2,980,828.01 211,701.28
Portfolio recognized:
Other accounts receivable accrued for provision of bad debt by percentage of balance in portfolio:
□ Applicable √ Not-applicable
Other accounts receivable accrued for provision of bad debt by other methods in portfolio:
√ Applicable □ Not-applicable
Name of portfolio Ending balance
Other account receivable Provision for bad debts Provision ratio (%)
Land Reserve Center of County Final 113,525,400.00 --- ---
payment for land acquisition
Expense of safety measures 726,399.88 --- ---
Petroleum account paid in advance to 108,399.29 --- ---
Petroleum Company
Specific fund of cement 90,421.00 --- ---
Total 114,450,620.17 --- ---
Other accounts receivable accrued for provision of bad debt by other methods in portfolio was 0 Yuan, mainly take the low risks of
un-recoverable into consideration
64
承德南江股份有限公司 2015 年半年度财务报告
(2) Provision for bad debts accrued, regain or switch back in the Period
There is 0 Yuan provision for bad debts accrued in the Period; and 0.00 Yuan regains or switch back in the Period.
Including the followed significant amount regains or switch back in the Period:
In RMB
Unit Regains or switch back Way of regain
(3) Other account receivable actually written off in the Period
In RMB
Item Amount written off
Including important account written off:
In RMB
Generated from
Written off
Unit Nature Amount written off Reasons related transaction
procedures
(Y/N)
Explanation on written off for other account receivable:
(4) Other account receivables category by nature of money
In RMB
Nature of money Ending book balance Beginning book balance
Land acquisition account 113,525,400.00 3,678,200.00
Margin 1,550,000.00 4,753,400.00
Debt auction 1,209,273.00 1,209,273.00
Tariff ready for offset 456,009.26 430,723.08
Other 5,327,996.62 5,786,028.34
Total 122,068,678.88 15,857,624.42
(5) Top five other account receivables collected by arrears party at ending balance
In RMB
Proportion in total Ending balance of
Unit Nature of money Ending balance Aging
other receivables bad debt provision
Land Reserve Center Final payment for
113,525,400.00 Within 1 year 93.00%
of Chengde County land acquisition
Non-Taxable
Margin for land
Revenue Authority 1,500,000.00 Within 1 year 1.23% 1,500,000.00
bidding
of Chengde County
Debt auction Debt auction 1,209,273.00 Over 3 years 0.99% 1,209,273.00
Tariff ready for
Tianjin Customs 456,009.26 Within 1 year 0.37%
offset
65
承德南江股份有限公司 2015 年半年度财务报告
The Great Wall Expense of safety
324,800.00 Within 1 year 0.27%
Group measures
Total -- 117,015,482.26 -- 95.86% 2,709,273.00
(6) Account receivable with government grand involved
In RMB
Collection time, amount
Unit Name of item Ending balance Aging at period-end
and basis predicted
(7) Other account receivable derecognition due to financial assets transfer
(8) Assets and liabilities resulted by other account receivable transfer and continues involvement
Other explanation:
Balance of other account receivable at period-end increased 106,211,454.46 Yuan over that of period-begin with 964.83% up, mainly
because the land money received from land reserved center increased in the Period
5. Inventories
(1) Classification of inventories
In RMB
Ending balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserve reserve
Raw materials 574,528.39 574,528.39 906,724.95 906,724.95
Goods in process 38,606.33 38,606.33 565,568.78 565,568.78
Stock products 1,917,062.48 161,182.20 1,755,880.28 16,200,791.75 161,182.20 16,039,609.55
Revolving
18,498.40 18,498.40 18,498.40 18,498.40
materials
Consumptive
1,088,605.24 669,082.19 419,523.05 2,827,887.88 669,082.19 2,158,805.69
biological assets
Development
394,819,613.99 394,819,613.99 490,087,338.82 490,087,338.82
costs
Development
5,936,739.90 5,936,739.90 5,936,739.90 5,936,739.90
products
Total 404,393,654.73 830,264.39 403,563,390.34 516,543,550.48 830,264.39 515,713,286.09
(2) Inventory depreciation reserve
In RMB
66
承德南江股份有限公司 2015 年半年度财务报告
Increased in the period Decreased in the period
Item Opening balance Reversing or Ending balance
Accrual Other Other
write-off
Stock products 161,182.20 161,182.20
Consumptive
669,082.19 669,082.19
biological assets
Total 830,264.39 830,264.39
(3) Explanation on capitalization of borrowing costs at ending balance of inventory
(4) Assets completed without settlement from construction contract at period-end
In RMB
Item Amount
Other explanation:
6. Other current assets
In RMB
Item Ending balance Opening balance
Taxes paid in advance 9,905,601.34 24,131,851.80
Total 9,905,601.34 24,131,851.80
Other explanation:
Balance at period-end decreased 14,226,250.46 Yuan over that of period-begin with 58.95% down, mainly due to the
Huijing Tiandi project closed to revenue in the Period, and the repayment tax carry forward
7. Held-to-maturity investment
(1) Held-to-maturity investment
In RMB
Ending balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
8. Long-term equity investment
In RMB
Changes in the period
Investme Adjustme Impairme
Cash
Additiona nt nt of Provision nt
Invested Opening Other dividend Ending
l Capital gains/loss other for provision
company balance equity or profit Other balance
investmen reduction es comprehe impairme at ending
changes declare to
t recognize nsive nt losses balance
issue
d by income
67
承德南江股份有限公司 2015 年半年度财务报告
equity
method
I. Joint venture
II. Associated enterprise
Runhua
RW
(Tianjin)
Water-sav 2,229,410 2,275,895
46,484.55
ing .53 .08
Technolo
gy Co.,
Ltd.
Wuchan
Minfeng
(Tianjin) 4,455,549 4,446,624
-8,925.46
Chemical .93 .47
Trade
Co., Ltd.
6,684,960 6,722,519
Subtotal 37,559.09
.46 .55
6,684,960 6,722,519
Total 37,559.09
.46 .55
Other explanation:
(1) 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 47.62%. The
Company invested RMB 2 million with ratio of 31.75% in registered capital; Langfang Chunyuan Minor Watering Engineer Co., Ltd
invested RMB one million with ratio of 15.87% and Zhang Heping invested RMB 300,000 with ratio of 4.76% in registered capital.
(2) Wuchan Minfeng (Tianjin) Chemical Trade Co., Ltd had risen up the register capital of shareholders on 21 st Dec. 2012, totaling
RMB 9 million included, Shanxi Wuchan Minfeng Chemistry Co., Ltd invested RMB 4.59 million with ratio of 51.00%. The
Company invested RMB 4.41 million with ratio of 49.00% in registered capital.
9. Fixed assets
(1) Fixed assets
In RMB
Houses and Machinery Transportation
Item Other equipment Total
buildings equipment equipment
I. Original book
value
1.Opening balance 8,095,437.08 1,246,415.43 3,836,318.14 740,355.25 13,918,525.90
2.Increased in the
33,600.00 149,416.02 183,016.02
period
(1) Purchase 33,600.00 149,416.02 183,016.02
(2) Transferred
from construction in
68
承德南江股份有限公司 2015 年半年度财务报告
progress
(3) Increased
by enterprise
combination
3.Decreased in the
310,510.41 118,007.60 428,518.01
period
(1) Disposal or
310,510.41 118,007.60 428,518.01
scrap
4.Ending balance 8,095,437.08 1,246,415.43 3,559,407.73 771,763.67 13,673,023.91
II. Accumulated
depreciation
1.Opening balance 1,538,133.00 175,842.36 1,571,208.32 338,660.32 3,623,844.00
2.Increased in the
153,813.30 63,863.88 159,716.73 80,785.92 458,179.83
period
(1) Accrual 153,813.30 63,863.88 159,716.73 80,785.92 458,179.83
3.Decreased in the
235,987.72 235,987.72
period
(1) Disposal or
235,987.72 235,987.72
scrap
4.Ending balance 1,691,946.30 239,706.24 1,494,937.33 419,446.24 3,846,036.11
III. Depreciation
reserves
1.Opening balance
2.Increased in the
period
(1) Accrual
3.Decreased in the
period
(1) Disposal or
scrap
4.Ending balance
IV. Book value
1. Ending book
6,403,490.78 1,006,709.19 2,064,470.40 352,317.43 9,826,987.80
value
2. Opening
6,557,304.08 1,070,573.07 2,265,109.82 401,694.93 10,294,681.90
book value
(2) Temporary idle fixed assets
In RMB
69
承德南江股份有限公司 2015 年半年度财务报告
Accumulated Depreciation
Item Original book value Book value Note
depreciation reserves
(3) Fixed assets leasing-in by financing lease
In RMB
Accumulated
Item Original book value Depreciation reserves Book value
depreciation
(4) Fixed assets leasing-out by operational lease
In RMB
Item Closing book value
Houses and buildings 1,153,115.85
(5) Fixed assets without property certificates
In RMB
Item Book value Reasons for un-completed certificate
Other explanation
10. Productive biological assets
(1) Measured by cost
√ Applicable □ Not-applicable
In RMB
Item Planting Livestock Forestry Aquaculture Total
I. Total original book
value
1.Opening balance 1,786,621.96 1,786,621.96
2.Increased in the
958,767.54 958,767.54
period
(1)Outsourcing 958,767.54 958,767.54
(2) Self
cultivation
3.Decreased in the
1,522,249.36 1,522,249.36
period
(1) Disposal 1,522,249.36 1,522,249.36
(2) Other
4.Ending balance 1,223,140.14 1,223,140.14
II. Accumulated
depreciation
1.Opening balance 1,145,894.25 1,145,894.25
2.Increased in the
496,977.82 496,977.82
period
(1) Accrual 496,977.82 496,977.82
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承德南江股份有限公司 2015 年半年度财务报告
3.Decreased in the
1,142,450.81 1,142,450.81
period
(1) Disposal 1,142,450.81 1,142,450.81
(2) Other
4.Ending balance 500,421.26 500,421.26
III. Depreciation
reserves
1.Opening balance
2.Increased in the
period
(1) Accrual
3.Decreased in the
period
(1) Disposal
(2) Other
4.Ending balance
IV. Book value
1. Ending book
722,718.88 722,718.88
value
2. Opening
640,727.71 640,727.71
book value
(2) Measured by fair value
□ Applicable √ Not-applicable
11. Intangible assets
(1) Intangible assets
In RMB
Non-patent
Item Land use right Patent right Others Total
technology
I. Original book
value
1.Opening
13,238,578.04 228,000.00 13,466,578.04
balance
2.Increased in
the period
71
承德南江股份有限公司 2015 年半年度财务报告
(1)
Purchase
(2) Internal
R&D
(3) Increased
by enterprise
combination
3.Decreased in the
7,164,395.99 7,164,395.99
period
(1) Disposal 7,164,395.99 7,164,395.99
4.Ending
6,074,182.05 228,000.00 6,302,182.05
balance
II. Accumulated
amortization
1.Opening
1,375,465.07 188,600.00 1,564,065.07
balance
2.Increased in
137,413.00 22,800.00 160,213.00
the period
(1) Accrual 137,413.00 22,800.00 160,213.00
3.Decreased in
927,975.61 927,975.61
the period
(1)
927,975.61 927,975.61
Disposal
4.Ending
584,902.46 211,400.00 796,302.46
balance
III. Depreciation
reserve
1.Opening
balance
2.Increased in
the period
(1) Accrual
3.Decreased in
the period
(1)
Disposal
4.Ending
balance
IV. Booking value
72
承德南江股份有限公司 2015 年半年度财务报告
1. Ending book
5,489,279.59 16,600.00 5,505,879.59
value
2. Beginning
11,863,112.97 39,400.00 11,902,512.97
book value
Intangible assets formulated no by means of internal R&D in balance of total intangible assets at period-end was
0.00%
(2) Certificate of title for land use right un-completed
In RMB
Item Book value Reasons
Other explanation:
The original value of intangible assets at period-end decreased 6,396,633.38 Yuan over that of period-begin with 53.74% down,
mainly because the county land reserve center collected the lands of the Company in the Period
12. Goodwill
(1) Original book value of goodwill
In RMB
Name of invested
company or items Opening balance Increased in Period Decreased in Period Ending balance
formed goodwill
Runhua RW 1,809,762.89 1,809,762.89
Total 1,809,762.89 1,809,762.89
(2) Impairment loss of goodwill
In RMB
Name of invested
company or items Opening balance Increased in Period Decreased in Period Ending balance
formed goodwill
1,809,762.89 1,809,762.89
Process of impairment testing, parameter and recognization method for impairment losses:
Other explanation
13. Long-term unamortized expenses
In RMB
Increased in the
Item Opening balance Amortized in Period Other decrease Ending balance
period
Office remodeling
388,069.20 71,083.44 316,985.76
costs
Repairing charges of
8,199,957.96 1,093,489.52 7,106,468.44
aquaculture
73
承德南江股份有限公司 2015 年半年度财务报告
workshop
Total 8,588,027.16 1,164,572.96 7,423,454.20
Other explanation
14. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets un-offset
In RMB
Ending balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Preparations of assets
3,336,892.76 834,223.19 3,336,892.76 834,223.19
depreciation
Total 3,336,892.76 834,223.19 3,336,892.76 834,223.19
(2) Deferred income tax liabilities un-offset
In RMB
Ending balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
Ending balance of Trade-off between the Opening balance of
Trade-off between the
deferred income tax deferred income tax deferred income tax
Item deferred income tax
assets or liabilities after assets and liabilities at assets or liabilities after
assets and liabilities
off-set period-begin off-set
Deferred income tax
834,223.19 834,223.19
assets
(4) Details of unrecognized deferred income tax assets
In RMB
Item Ending balance Opening balance
Deductible temporary differences 1,588,068.88 1,588,068.88
Deductible losses 105,931,221.32 105,931,221.32
Total 107,519,290.20 107,519,290.20
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMB
Year Ending amount Opening amount Note
2015 1,707,747.80 1,707,747.80
74
承德南江股份有限公司 2015 年半年度财务报告
2016
2017 22,943,240.64 22,943,240.64
2018
2019 81,280,232.88 81,280,232.88
2020
Total 105,931,221.32 105,931,221.32 --
Other explanation:
15. Other non-current assets
In RMB
Item Ending balance Opening balance
Account paid in advance for house
5,201,365.53 5,201,365.53
purchase
Total 5,201,365.53 5,201,365.53
Other explanation:
Refers to the account paid in advance for house purchase from subsidiary Runhua RW.
16. Account payable
(1) Account payable
In RMB
Item Ending balance Opening balance
Account payable for materials 339,019.60 318,150.00
Account payable for engineering 5,313,555.36 4,613,124.04
Account payable for goods 5,465,214.57 5,494,646.37
Total 11,117,789.53 10,425,920.41
(2) Accounts payable with major amount and aging of over one year
In RMB
Item Ending balance Reasons of un-paid or carry-over
Chengde County Xingcheng Construction
346,058.39 Quality assurance for engineering
and Installation Engineering Co., Ltd.
Chengde Yongwang Construction
592,943.37 Quality assurance for engineering
Engineering Co., Ltd.
Chengde Licheng Construction and
194,129.43 Quality assurance for engineering
Installation Work Co., Ltd.
Total 1,133,131.19 --
Other explanation:
75
承德南江股份有限公司 2015 年半年度财务报告
17. Account received in advance
(1) Account received in advance
In RMB
Item Ending balance Opening balance
House account received in advance 120,470,802.75 277,140,032.59
Goods account received in advance 12,453,487.12 12,929,706.15
Other 1,833,862.42 884,414.07
Total 134,758,152.29 290,954,152.81
(2) Account payable with over one year book age
In RMB
Item Ending balance Reasons of un-paid or carry-over
(3) Construction contract has resulted without settlement at period-end
In RMB
Item Amount
Other explanation:
Balance of account received in advance at period-end decreased 156,196,000.52 Yuan over that of period-begin with 53.68% down,
mainly because the money received in advance from Huijing Tiandi project in the Period has been carried forward to revenue
18.Wages payable
(1) Wages payable
In RMB
Item Opening balance Increased in Period Decreased in Period Ending balance
I. Short-term employee
126,700.56 4,386,708.97 4,495,190.31 18,219.22
benefits
II. Post-employment
benefits - defined 9,393.00 410,432.43 411,854.43 7,971.00
contribution plans
III. Dismission welfare 6,097,486.60 6,097,486.60
Total 6,233,580.16 4,797,141.40 4,907,044.74 6,123,676.82
(2) Short-term employee benefits
In RMB
Item Opening balance Increased in Period Decreased in Period Ending balance
1.Salary, bonus,
105,516.34 3,998,330.36 4,103,846.70
allowance and subsidy
2.Employee welfare 14,262.80 14,262.80
76
承德南江股份有限公司 2015 年半年度财务报告
3.Social insurance
20,556.00 208,255.41 209,900.41 18,911.00
premium
Of which: including:
medical insurance 20,180.70 164,671.21 166,316.21 18,535.70
expenses
Industrial injury
27,179.32 27,179.32
insurance premium
Maternity insurance 375.3 16,404.88 16,404.88 375.3
4.Housing provident
162,091.08 163,411.08 -1,320.00
funds
5.Labor union
expenditures and
628.22 3,769.32 3,769.32 628.22
employee education
expenses
6. Short-term
compensated absences
7. Short-term profit
sharing plan
Total 126,700.56 4,386,708.97 4,495,190.31 18,219.22
(3) Details of defined contribution plans
In RMB
Item Opening balance Increased in Period Decreased in Period Ending balance
1.Basic endowment
8,624.60 376,626.30 377,890.30 7,360.60
insurance expenses
2.Unemployment
768.40 33,806.13 33,964.13 610.40
insurance expenses
Total 9,393.00 410,432.43 411,854.43 7,971.00
Other explanation:
19. Tax payable
In RMB
Item Ending balance Opening balance
VAT 1,923.47 1,923.47
Business tax -500.00 94,797.17
77
承德南江股份有限公司 2015 年半年度财务报告
Enterprise income tax 16,875,424.12 3,953,440.14
Individual income tax 186.75 1,433.95
Urban maintenance and construction tax 71.14 6,027.43
Land use tax 2,993,193.91 2,993,193.91
Educational surtax 42.69 3,006.46
Local educational surtax 28.46 2,004.31
Stamp tax 14,231.50 68,843.33
Property tax 2,888,250.17 2,897,994.17
Embankment protection fees 508.33
Total 22,772,852.21 10,023,172.67
Other explanation:
Balance of tax payable at period-end increased 12,749,679.54 Yuan over that of period-begin with 127.20%up, mainly because
generated income from the government land reserves in the perod and tax-paying increased
20 .Other account payables
(1)Other account payables by nature
In RMB
Item Ending balance Opening balance
Deposit and margin 51,378,328.35 13,859,648.05
Agency fee 50,000.00 370,000.00
Withhold and remit tax 133,441.53 21,518.37
Intercourse funds and other 844,427.52 373,661.75
Total 52,406,197.40 14,624,828.17
(2) Other payables with large amount and aging of over one year
In RMB
Item Ending balance Reason for non-repayment or carryover
Chengde Chengjin Commerc & Trade Co.,
500,000.00 Margin for good
Ltd.
Total 500,000.00 --
Other explanation
Balance of other payable at period-end increased 37,781,369.23 Yuan over that of period-begin with 258.34%up,
mainly because the deposit and margin received in the Period increased
21. Share capital
In RMB
Increased (decreased) in Period
Opening
New shares Shares Ending balance
balance Bonus shares Other Sub-total
issued converted from
78
承德南江股份有限公司 2015 年半年度财务报告
public reserve
Total shares 706,320,000.00 706,320,000.00
Other explanation:
22. Capital reserves
In RMB
Item Opening balance Increased in Period Decreased in Period Ending balance
Capital premium (share
390,597,169.41 390,597,169.41
premium)
Other capital reserves 65,873,219.23 3,401,400.00 69,274,619.23
Total 456,470,388.64 3,401,400.00 459,871,788.64
Other explanation, including changed in Period as well as reasons for changes:
23. Surplus reserves
In RMB
Item Opening balance Increased in Period Decreased in Period Ending balance
Statutory surplus
76,791,550.17 76,791,550.17
reserves
Total 76,791,550.17 76,791,550.17
Explanation on surplus reserve, including changed in Period as well as reasons for changes:
24. Retained profits
In RMB
Item The Period Last Period
Retained profits at the end of last period before
-949,599,922.37 -1,029,880,318.18
adjustment
Retained profits at the beginning of the period
-949,599,922.37 -1,029,880,318.18
after adjustment
Add: The net profits belong to owners of patent
120,145,893.42 19,331,150.10
company of this period
Retained profits at the end of the period -829,454,028.95 -1,010,549,168.08
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.
25. Operating income and operating cost
In RMB
Amount in Period Amount in last period
Item
Income Cost Income Cost
79
承德南江股份有限公司 2015 年半年度财务报告
Main business 357,115,799.52 295,272,759.54 216,029,370.47 217,675,191.68
Other business 704,825.08 431,217.42 803,045.62 468,045.62
Total 357,820,624.60 295,703,976.96 216,832,416.09 218,143,237.30
26 .Business tax and surcharges
In RMB
Item Amount in Period Amount in last period
Business tax 11,847,801.31 157,927.92
Urban maintenance and construction tax 593,020.64 6,991.68
Educational surtax 593,020.65 6,991.67
Land VAT 4,719,910.42 63,603.66
Total 17,753,753.02 235,514.93
Other explanation:
Business tax and surcharge increased 17,518,238.09 Yuan over that of last period with 7438.27% up, mainly because
the Nanjiang Huijing Tiande project carried forward as revenue in the Period
27 .Sales expenses
In RMB
Item Amount in Period Amount in last period
Transport charge 730,843.94 1,056,036.04
Lump sum 268,860.30 192,222.35
Salary 104,466.00 143,778.73
Repair charge 10,809.02 11,761.02
Advertising fees 96,600.00 4,200.00
Storage fee 9,468.93 4,284.45
Other 97,171.69 333,984.19
Total 1,318,219.88 1,746,266.78
Other explanation:
28. Administration expenses
In RMB
Item Amount in Period Amount in last period
Salary 3,048,150.89 2,578,207.47
Agency fee 969,001.87 632,223.81
Tenure tax 798,359.32 1,620,097.64
Business entertainment 1,020,771.68 847,398.76
Depreciation and amortization 668,247.48 758,048.23
Business-travel expense 743,858.67 691,122.01
Welfare expenses 1,476,587.95 478,858.62
Office allowance 414,409.56 602,910.60
80
承德南江股份有限公司 2015 年半年度财务报告
Social insurance fee 473,866.77 451,306.74
Stamp duty 124,738.87 239,314.26
Amortization of low value consumables 37,309.90 154,716.43
Housing fund 131,695.08 110,717.00
Long-term deferred expenses 828,523.23 39,648.00
Repair charge 84,512.90 117,343.98
Material consumption 174,141.09 163,047.65
Union funds 4,237.32 6,577.43
Property tax 8,976.08 9,576.08
Utilities 63,821.63 83,333.06
Other 609,516.53 607,980.09
Total 11,680,726.82 10,192,427.86
Other explanation:
29. Financial expenses
In RMB
Item Amount in Period Amount in last period
Interest expenses 294,828.29
Less: Interest income 103,671.98 152,529.12
Profit/loss on exchange -4,696.19 25,975.42
Bank handling charges 26,210.64 93,778.58
Total 212,670.76 -32,775.12
Other explanation:
30. Asset impairment loss
In RMB
Item Amount in Period Amount in last period
I. Bad debt loss -400.00
Total -400.00
Other explanation:
31. Investment income
In RMB
Item Amount in Period Amount in last period
Long-term equity investment income
37,559.09 -49,603.12
calculated on equity method
Other 171,000.00
Total 37,559.09 121,396.88
Other explanation:
81
承德南江股份有限公司 2015 年半年度财务报告
32. Non-operating income
In RMB
Amount reckoned into current
Item Amount in Period Amount in last period
non-recurring gains/losses
Total income from disposal of
103,610,779.62 34,647,779.07 103,610,779.62
non-current assets
Including: Income from
103,610,779.62 34,647,779.07 103,610,779.62
disposal of intangible assets
Other 465,551.64 189,689.31 465,551.64
Total 104,076,331.26 34,837,468.38 104,076,331.26
Government grants reckoned into current gains/losses:
In RMB
Grants item Amount in Period Amount in last period Assets-related/Income related
Other explanation:
In accordance with the ―Measures of the Land Reserves‖ printed and issued by Ministry of Land and Resources and Government of
Chengde County as well as the relevant regulations of Chengde People‘s Government‘s specialized note [2012] No.59, lands of the
Chengde County Guo Yong (2013) Zi No.22 transfer, net revenue from transferred amounting to 103,610,779.62 Yuan.
33. Non-operating expenditure
In RMB
Amount reckoned into current
Item Amount in Period Amount in last period
non-recurring gains/losses
Donating 1,000,000.00
Other 3,217,393.57 3,304,076.70
Total 3,217,393.57 4,304,076.70
Other explanation:
34. Income tax expense
(1) Statement of income tax expenses
In RMB
Item Amount in Period Amount in last period
Current income tax 12,929,483.98 -23,637.85
Total 12,929,483.98 -23,637.85
(2) Adjustment on accounting profit and income tax expenses
In RMB
Item Amount in Period
Total profit 131,822,567.92
Income tax measured by statutory/applicable tax rate 33,012,043.49
82
承德南江股份有限公司 2015 年半年度财务报告
Impact by the deductible losses of the un-recognized previous
20,082,559.51
deferred income tax
Income tax expenses 12,929,483.98
Other explanation
35. Other comprehensive income
See Note.
36. Notes to statement of cash flow
(1) Other cash received in relation to operation activities
In RMB
Item Amount in Period Amount in last period
Intercourse funds 43,150,533.95 51,648,801.00
Interest income 84,858.23 152,529.12
Other 1,248,936.08 830,948.54
Total 44,484,328.26 52,632,278.66
Explanation on other cash received in relation to operation activities:
(2) Other cash paid in relation to operation activities
In RMB
Item Amount in Period Amount in last period
Disbursement costs 9,382,361.01 7,884,655.36
Donation costs 1,000,000.00
Intercourse funds 34,417,207.14 160,000.00
Other 2,877,209.13 3,594,655.98
Total 46,676,777.28 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 in Period Amount in last period
Explanation on cash received from other investment activities:
(4) Cash paid related with other financing activities
In RMB
Item Amount in Period Amount in last period
Explanation on cash paid related with investment activities:
(5) Other cash received in relation to financing activities
In RMB
Item Amount in Period Amount in last period
Bank money margins received 2,600,000.00
Total 2,600,000.00
83
承德南江股份有限公司 2015 年半年度财务报告
Explanation on other cash received in relation to financing activities:
(6) Cash paid related with financing activities
In RMB
Item Amount in Period Amount in last period
Margin of the housing mortgage loan are
1,553,600.00 51,500.00
paid
Total 1,553,600.00 51,500.00
Explanation on cash paid related with financing activities
37. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
Supplementary information This Period Last Period
1. Net profit adjusted to cash flow of
-- --
operation activities:
Net profit 119,118,689.96 17,226,170.75
Depreciation of fixed assets, consumption of
oil assets and depreciation of productive 955,157.65 1,165,311.98
biology assets
Amortization of intangible assets 160,213.00 304,544.24
Amortization of long-term deferred expenses 1,164,572.96 792,738.72
Loss from disposal of fixed assets, intangible
assets and other long-term assets(gain is -103,610,779.62 -34,754,036.24
listed with ―-‖)
Financial expenses (gain is listed with ―-‖) 277,316.74
Investment losses(gain is listed with ―-‖) -37,559.09 -121,396.88
Decrease of inventory (increase is listed with 112,149,895.75
-67,579,864.49
―-‖)
Decrease of operating receivable accounts
15,933,240.56 19,683,358.07
(increase is listed with ―-‖)
Increase of operating payable accounts
-113,754,717.28 23,443,944.64
(decrease is listed with ―-‖)
Net cash flow arising from operating
32,356,030.63 -39,839,229.21
activities
2. Material investment and financing not
-- --
involved in cash flow
3. Net change of cash and cash equivalents: -- --
Balance of cash at period end 66,199,806.53 69,337,245.87
Less: Balance of cash equivalent at
35,582,359.90 77,981,488.06
year-begin
Net increase of cash and cash equivalents 30,617,446.63 -8,644,242.19
84
承德南江股份有限公司 2015 年半年度财务报告
(2) Net cash paid for receiving the subsidiary
In RMB
Amount
Including: --
Including: --
Including: --
Other explanation:
(3) Net cash received from subsidiary disposal
In RMB
Amount
Including: --
Including: --
Including: --
Other explanation:
(4) Constitution of cash and cash equivalent
In RMB
Item Ending balance Opening balance
I. Cash 66,199,806.53 35,582,359.90
Including: stock cash 181,309.10 33,252.06
Bank deposit available for payment at any
66,018,497.43 35,549,107.84
time
Ⅲ. Balance of cash and cash equivalent at
66,199,806.53 35,582,359.90
year-end
Other explanation:
38. Notes on items of changes of owner’s equity
Name and adjusted amount on ―Other‖ at balance of year-end of last year:
39. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Balance of foreign currency at
Item Exchange rate convert RMB concert at Period-end
period-end
Including: USD 49,879.87 6.1136 304,945.58
HKD 173.13 0.7886 136.53
Other explanation:
85
承德南江股份有限公司 2015 年半年度财务报告
(2) Explanation on foreign operational entity, as for major foreign operational entity, disclosed foreign
main operation land, book-keeping currency and basis; and disclosed reasons if the book-keeping currency
changed
□ Applicable √ Not-applicable
VIII. Changes of consolidation scope
1. Enterprise merger under the different control
(1) Enterprise merger under the different control in Period
In RMB
Revenue of Net profit of
Determine the acquiree the acquiree
Time when Cost of the Ratio of
Acquired Purchasing basis of the from from
Acquiree equity equity equity
way date purchasing purchasing purchasing
acquired acquired acquired
date date to date to
period-end period-end
Other explanation:
(2) Combination costs and goodwill
In RMB
Combination costs
Determine method, contingency consideration and change of the fair value of combination cost:
The main reason for the form of large goodwill:
Other explanation:
(3)Identifiable assets and liability of the acquiree on purchasing date
In RMB
Fair value on purchasing date Book value on purchasing date
Determine method on fair value of the identifiable assets, liability:
Contingent liability of the acquiree taken in combination:
Other explanation:
(4) Gains or losses of the equity held before purchasing date which re-measured by fair value
Whether realized the enterprise combination through many transactions in stage or not and the transaction with controlling rights
obtained in the Period
□Yes √ No
86
承德南江股份有限公司 2015 年半年度财务报告
(5) Explanation on un-able to determine the combination consideration on purchasing date or end of the
combination period or the fair value of the identifiable assets and liability
(6)Other explanation
2. Enterprise merger under the same control
(1) Enterprise merger under the same control in Period
In RMB
Revenue of Net profit of
the combined the combined
party from party from
Basis on Determine Revenue of Net profit of
Equity ratio period-begin period-begin
Combined combination Combination basis of the combined the combined
acquired in of the of the
party under the date combination party during party during
combination combination combination
same control date comparison comparison
to to
combination combination
date date
Other explanation:
(2) Combination costs
In RMB
Combination costs
Explanation on contingent consideration and its changes:
Other explanation:
(3) Book value of the assets and liability of combined party on purchasing date
In RMB
Combination date Last period-end
Contingent liability of the combined party taken by the enterprise in combination: Other explanation:
3. Counter purchase
Basic information of the transactions, basis of the counter purchase, basis and whether assets and liabilities retained by the listed
company consist of business, determine of the combination cost, the amount and calculation of the equity amount adjusted in
treatment for the equity transaction:
4. Disposal of subsidiary
Whether has the condition of loss controlling rights with disposing subsidiary on one time or not
□Yes √ No
87
承德南江股份有限公司 2015 年半年度财务报告
Whether has the condition of loss controlling rights with disposing subsidiary on multiple steps through many
transactions or not
□Yes √ No
5. Change of the consolidation scope for other reasons
Explain the reasons (e.g. new subsidiary established, subsidiary liquidation etc.) and other conditions:
6. Other
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Main operation Share-holding ratio
Subsidiary Registered place Business nature Acquired way
place Directly Indirectly
Enterprise merger
Nanjiang Real Real estae
Chengde City Chengde City 100.00% under the same
Estate*1 development
control
Nanjiang Industrial
Chengde City Chengde City 100.00% Establishment
Investment*2 investment
Ecological Animal
Chengde City Chengde City 100.00% Establishment
Agriculture*3 husbandry
Xingye
Paper
Papermaking Chengde City Chengde City 100.00% Establishment
manufacturing
Making *4
International
Nanjiang Asia *5 Hong Kong Hong Kong 100.00% Establishment
investment
Morsh Production and
Chengde City Chengde City 90.00% Establishment
Technology*6 sale of Graphene
Huijing Property Property
Chengde City Chengde City 100.00% Establishment
*7 management
Enterprise merger
International
Runhua RW*8 Tianjin City Tianjin City 30.00% not under the
trading
same control
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
On 25 June 2013, Nanjiang Company completed the equity acquisition of Runhua RW with 9 million Yuan,
representing 30 percent equity of Runhua RW, and became the first largest shareholder of Runhua RW;
shareholder of the Runhua RW all agreed to restructuring the Board of Directors, totally five members in the
Board and Nanjiang Company takes 3 of them; the second largest sharehodler, who holds 7.03 million Yuan
equity of the Runhua RW (representing 23.43 percnet of the Runhua RW)- Lan Chunhong come to an agreement
of persons acting in concert with Nanjiang Company; the shareholder‘s rights (excluding the right of self-benefit
88
承德南江股份有限公司 2015 年半年度财务报告
as dividend rights and assignment right ) under the name of Lan Chunhong with the equity ratio helding are totally
entrusted to Nanjiang Company for execution, and Nanjiang Company holds 53.43 percent voting rights in
Runhua RW.
Basis for controlling the invested entity with half or below voting rights held and without controlling invested
entity but with over half and over voting rights:
Pursuit to the Article 8 ―As for the half or below voting rights of the invested company are held by parent
company, consider as such parent company is able to control the invested company while satisfied one of the
conditions as follow, and the invested company shall recognized as the subsidiary included in consolidate scope of
the consolidate financial statement. However, except for there is evidence to show that the parent company is not
able to control the invested company‖:
(i) Holds more than half of the voting rights of invested company through the agreement with invested company
and other investors;
(ii) have rights to determine the financial and operation policy of the invested company in line with the Article of
Association or Agreement;
(iii) have the rights to appoint and dismiss majority members of the BOD or similar institution of the invested
company;
(iv) takes majority voting rights in the BOD or similar institution of the invested company.‖ carried in Accounting
Standards for Business Enterprise No. 33 – Consolidate Financial Statement.
After equity acquisition, among the five members of the Board of Runhua RW, there are three members on behalf
of the Nanjiang Company, and main production managerial force will dispatch at the same time to Runhua RW;
furthermore, Najiang Company has 53.43 percent voting rights of the Runhua RW in line with the agreement with
other investors. Satisfied the regulations of Article 8 ―Holds more than half of the voting rights of invested
company through the agreement with invested company and other investors‖ and ―have the rights to appoint and
dismiss majority members of the BOD or similar institution of the invested company‖ carried in Accounting
Standards for Business Enterprise No. 33 – Consolidate Financial Statement, thus Runhua RW was included in
consolidate financial statement scope of the Nanjiang Company.
Controlling basis for the structuring entity included in consolidated range:
The Company had no such situation in Period.
Basis on determining to be a agent or consignor:
The Company had no such situation in Period.
Other explanation:
*1 Chengde Nanjiang Real Estate Development Co., Ltd (―Nanjiang Real Estate‖ for short) formerly known as
―Chengde Rongyida Real Estate Development Co., Ltd‖ was established on 20 February 2009 with registered
capital of 10 million Yuan, of which, Wang Fei invested 9 million Yuan, representing 90 percent of the registered
capital while one million Yuan contributed by Chen Liping, presenting 10 percent of the registered capital; 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 Company with RMB1.00. After the transfer, Nanjiang
Company wholly owned the 100% equity. On 3 April 2014, as approved by Industry & Commercial Bureau of
Chengde County, Rongyida changed its name to Chengde Nanjiang Real Estate Development Co., Ltd.
(―Nanjiang Real Estate‖ for short)
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承德南江股份有限公司 2015 年半年度财务报告
*2 Nanjiang Investment was established by Nanjiang Real Estate dated 9 October 2012, original registered capital
was 50 million Yuan, shareholder Nanjiang Real Estate contribute 50 million Yuan, presenting 100 percent of the
registered capital; on 21 December 2012, the 100 percent equity held by Nanjiang Real Estate are transferred to
Nanjiang Company with 50 million Yuan, after transferred, Nanjiang Company holds total equity of the Nanjiang
Investment; on 6 January 2013, Nanjiang Company increase capital 40 million Yuan to Nanjiang Investment, and
registered capital comes to 90 million Yuan after capital increased.
*3 Ecological Agriculture was established by Nanjiang Investment on 24 October 2012, original registered capital
was 5 million Yuan, shareholder Nanjiang Investment contributes 5 million Yuan with 100 percent held in total
registered capital. On 18 April 2013, Nanjiang Investment increase 5 million Yuan to Ecological Agriculture and
the registered capital turns to 10 million Yuan after increased.
*4 Xingye Papermaking Making was founded jointly by Nanjiang Company and (Hong Kong) Zhanxi
International Group Co., Ltd (hereinafter referred to as Hong Kong Zhanxi) on 26th 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 didn‘t 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 business, which led sharp loss to business. On 8 th 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. On 11 th of Mar. 2009, Hebei
Province Chengde Intermediate People‘s 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 People‘s 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.
*5 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.
*6 Morsh Technology was founded jointly by Nanjiang Investment and Ningbo Morsh Technology on 24th Jan.
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承德南江股份有限公司 2015 年半年度财务报告
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%.
*7 Huijing Property was founded by Nanjiang Investment on 18th Nov. 2013 with register capital of RMB500,000.
Shareholder Nanjiang Investment invested RMB500,000 wholly owning it.
*8 Runhua Rural Water was founded on 28th 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%.
(2) Important non-wholly-owned subsidiary
In RMB
Dividend announced to
Share-holding ratio of Gains/losses attributable Ending equity of
Subsidiary distribute for minority in
minority to minority in the Period minority
the Period
Runhua RW 10.00% -6,858.19 4,813,253.58
Morsh Technology 70.00% -1,020,345.26 14,417,168.79
Explanation on share-holding ratio of minority different from ratio of voting right:
Other explanation:
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
Ending balance Opening balance
Subsidia Non-curr Non-curr Non-curr Non-curr
Current Total Current Total Current Total Current Total
ry ent ent ent ent
assets assets liability liability assets assets liability liability
assets liability assets liability
Morsh 48,864,0 48,864,0 731,548. 731,548. 48,868,1 48,868,1 667,018. 667,018.
91
承德南江股份有限公司 2015 年半年度财务报告
Technolo 83.81 83.81 00 00 35.67 35.67 00 00
gy
30,544,8 30,544,8
Runhua 26,808,9 12,075,9 38,884,9 18,288,9 18,288,9 40,529,2 12,069,2 52,598,4
29.80 29.80
RW 84.05 21.89 05.94 50.53 50.53 09.40 11.90 21.30
In RMB
Amount in Period Amount in last period
Cash flow Cash flow
Total Total
Subsidiary Operation from Operation from
Net profit comprehensi Net profit comprehensi
Income operation Income operation
ve income ve income
activity activity
Morsh
-68,581.86 -68,581.86 -4,051.86 -38,470.10 -38,470.10 -498,160.10
Technology
118,260,511. 213,935,345. -3,001,617.63 -3,001,617.63 -45,956,761.2
Runhua RW -1,457,636.09 -1,457,636.09 -2,654,667.38
61 40 7
Other explanation:
(4) Major restriction on using the assets of the Group and debt liquidation of the Group
(5) Financial supporting or other supports offering to structured entity included in consolidated financial
statement scope
Other explanation:
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
(1) Owners equity shares changed in subsidiary
(2) Impact on minority’s interest and owners’ equity attributable to parent company
In RMB
Other explanation
3. Equity in joint venture and cooperative enterprise
(1) Important joint venture and cooperative enterprise
Share-holding ratio Accounting
treatment on
Main operation
Name Registered place Business nature investment for
place Directly Indirectly
joint venture and
cooperative
92
承德南江股份有限公司 2015 年半年度财务报告
enterprise
Wuchan Minfeng
(Tianjin) International
Tianjin City Tianjin City 31.75% Equity method
Chemical Trade trading
Co., Ltd.
Development,
Runhua RW transfer and
(Tianjin) promotion service
Water-saving Tianjin City Tianjin City of the 49.00% Equity method
Technology Co., water-saving
Ltd. technology for
agriculture
Share-holding ratio or shares enjoyed different from voting right ratio:
Basis of the voting rights with 20% below but with major influence, or without major influence but with over 20%
(20% included) voting rights hold:
(2) Main financial information of the important joint venture
In RMB
Ending balance/Amount in Period Opening balance/Amount in last period
Other explanation
(3) Main financial information of the important cooperative enterprise
In RMB
Ending balance/Amount in Period Opening balance/Amount in last period
Other explanation
(4) Summary of the financial information for those minor joint venture and affiliated enterprise
In RMB
Ending balance/Amount in Period Opening balance/Amount in last period
Joint venture: -- --
Total amount of the follow items calculated
-- --
by share-holding ratio
Cooperative enterprise: -- --
Total amount of the follow items calculated
-- --
by share-holding ratio
Other explanation
93
承德南江股份有限公司 2015 年半年度财务报告
(5) Major restriction on capital transferring from joint venture or affiliated enterprise to the Company
(6) Excess deficit from joint venture or affiliated business
In RMB
Losses of last year Cumulative losses
Cumulative losses
Name un-recognized (or net profit un-recognized at current
un-recognized in last year
shares in the Year ) period-end
Other explanation
(7) Un-recognized commitment with joint venture investment concerned
(8) Contingency with joint venture or affiliated enterprise investment concerned
4. Imporant co-management
Share-holding ratio /equity shared
Name Main operation place Registered place Business nature
Directly Indirectly
Difference of the share-holding ratio or share taken in co-management from voting rights ratio:
As for the single principal in co-management, explain the basis:
Other explanation
5. Equity of the structured entity excluded in the consolidate financial statement scope
Relevant explanation:
6. Other
X. Related party and related transactions
1. Parent company of the enterprise
Share-holding ratio
Voting right ratio on
Parent company Registration place Business nature Registered capital on the enterprise for
the enterprise
parent company
Explanation on parent company of the enterprise
The Company has no parent company; controller refers to the first largest shareholder Mr. Wang Dong, who holds
29.49% equity of the Company.
Ultimate controller of the Company is Mr. Wang Dong.
Other explanation:
94
承德南江股份有限公司 2015 年半年度财务报告
2. Subsidiary of the Enterprise
Found more in Note IX-1
3. Cooperative enterprise and joint venture
Found more in Note of the Report
Other cooperative enterprise and joint venture that have related transaction with the Company in the Period or occurred in previous
period:
Name Relationship
Wuchan Minfeng (Tianjin) Chemical Trade Co., Ltd. Joint venture
Runhua RW (Tianjin) Water-saving Technology Co., Ltd. Joint venture
Other explanation
4. Other related party
Other related party Relationship with the Enterprise
Runhua RW Industrial Development Company Controller of the joint venture of the Company
Shanxi Wuchan Minfeng Chemical Co., Ltd. Controller of the joint venture of the Company
Other explanation
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
Whether over the
Amount in Trading limit Amount in last
Related party Content approved limited or not
Period approved period
(Y/N)
Agent import
Wuchan Minfeng (Tianjin)
chemical raw 34,842,124.39 9,827,322.60
Chemical Trade Co., Ltd.
materials
Goods sold/labor service providing
In RMB
Related party Content Amount in Period Amount in last period
Wuchan Minfeng (Tianjin)
Sales of goods 52,206,089.74 121,847,191.24
Chemical Trade Co., Ltd.
Explanation on goods purchasing, labor service providing and receiving
(2) Related trusteeship/contract and entrust management/ out-sourcing
Statement of trusteeship/contract
In RMB
95
承德南江股份有限公司 2015 年半年度财务报告
Pricing basis of
Earnings
Trustee/contracto earnings from
Client/contractee Assets type Start date Expiry date recognized in
r trusteeship/contra
Period
ct
Notes of trusteeship/contract
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
(3) Related lease
As a lessor for the Company:
In RMB
Lease income in recognized in Lease income in recognized last
Lessee Assets type
the Period the Period
As a lessee for the Company:
In RMB
Lease income in recognized in Lease income in recognized last
Lessor Assets type
the Period the Period
Explanation on related lease
(4) Related-party guarantee
The Company act as a secured party
In RMB
Whether the guarantee
Secured party Guarantee amount Start date Expiry date
implemented or not
As a secured party by the Company
In RMB
Whether the guarantee
Guarantor Guarantee amount Start date Expiry date
implemented or not
Explanation on related guarantee
(5) Borrowed funds from related party
In RMB
Related party Borrowing amount Start date Expiry date Note
Inter-bank borrowing
Lending transaction
(6) Assets transfer and debt restructuring of related party
In RMB
Related party Related transaction content Amount in Period Amount in last period
96
承德南江股份有限公司 2015 年半年度财务报告
(7) Remuneration of key management personnel
In RMB
Item Amount in Period Amount in last period
Remuneration of key management
736100.00 725600.00
personnel
(8) Other related transaction
6. Account receivable/payable from/to related party
(1) Account receivables
In RMB
Ending balance Opening balance
Item Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
Runhua RW
Other account Industrial
500,000.00
receivable Development Co.,
Ltd.
Wuchan Minfeng
Account paid in
(Tianjin) Chemical 343,881.74
advance
Trade Co., Ltd.
(2) Account payable
In RMB
Item Related party Ending book balance Opening book balance
Wuchan Minfeng (Tianjin)
Account received in advance 5,667,920.00 12,032,434.62
Chemical Trade Co., Ltd.
7. Commitment of related party
8. Other
XI. Share-base payment
1. Share-based payment
□ Applicable √ Not-applicable
2. Share-based payment settled by equity
□ Applicable √ Not-applicable
97
承德南江股份有限公司 2015 年半年度财务报告
3. Share-based payment settled by cash
□ Applicable √ Not-applicable
4. Amendment and termination of the share-based payment
5. Other
XII. Commitment and contingency
1. Important commitment
Important commitment on balance sheet date
2. Contingency
(1) Important contingency on balance sheet date
(2) If the Company has no important contingency need to disclosed, explain reasons
The Company has no important contingency that need to disclose.
3. Other
XIII. Events after balance sheet day
1. Important non-adjustment events
In RMB
Impact on the financial position
Item Content Reason
and operation result
2. Profit distribution
In RMB
98
承德南江股份有限公司 2015 年半年度财务报告
3. Sales return
4. Other explanation after balance sheet date
XIV. Other major event
1. Previous accounting errors collection
(1) Retrospective restatement
In RMB
Impact items of statement
Content Treatment procedures Cumulative impacted number
during a comparison
(2) Prospective application
Reasons for prospective application
Accounting error correction Approval procedures
adopted
2. Debt restructuring
3. Assets replacement
(1) Non-monetary assets change
(2) Other assets replacement
4. Pension plan
5. Termination of business
In RMB
Profit of
termination
Income tax operation
Item Income Expense Total profit Net profit
expense attributable to the
owners of the
parent company
Other explanation
99
承德南江股份有限公司 2015 年半年度财务报告
6. Segment
(1) Recognition basis and accounting policy for reportable segment
(2) Financial information for reportable segment
In RMB
Item Offset of segment Total
(3) The company has no reportable segments, or unable to disclose total assts and total liability for
reportable segments, explain reasons
(4)Other explanation
7. Major transaction and events makes influence on investor’s decision
8. Other
XV. Principle notes of financial statements of parent company
1. Accounts receivable
(1) Category
In RMB
Ending balance Opening balance
Provision for bad
Book balance Book balance Provision for bad debts
Type debts Book
Book value
Provision value Provision
Amount Ratio Amount Amount Ratio Amount
ratio ratio
Accounts receivable
accrued for provision 1,721,39 1,721,391
100.00%
of bad debt by 1.55 .55
portfolio
1,721,39 1,721,391
Total 100.00%
1.55 .55
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 combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable:
□ Applicable √ Not-applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable:
√Applicable □ Not-applicable
100
承德南江股份有限公司 2015 年半年度财务报告
Name Ending balance
Accounts receivable Provision for bad debts Provision ratio (%)
Yu Dexue 1,300,000.00 —— ——
Yu Chao 211,391.55 —— ——
Zhang Tiemei 210,000.00 —— ——
Total 1,721,391.55 —— ——
Explanations on combination determine:
In combination, withdrawal proportion of bad debt provision based on other methods for account was 0 Yuan, mainly take the low
risks of un-recoverable into consideration
(2) Bad debt provision accrual, collected or reversed
Accrual bad debt provision 0 Yuan; collected or reversed 0.00 Yuan.
Major bad debt provision reversal or collected in the Period:
In RMB
Company Amount reversal or collected Collection way
(3) Receivables actually written-off during the reporting period
In RMB
Item Amount written off
Written-off for the major receivable:
In RMB
Nature of Procedures Arising from related
Company Amount written off Reason for write-off
receivables implemented transactions
Explanation for write-off of receivables:
(4) Top 5 receivables at ending balance by arrears party
Ending
Proportion in total balance of
Name Nature Ending balance Aging
other receivables (%) bad debt
provision
Yu Dexue Purchase house funds 1,300,000.00 Within 1 year 75.52% ---
Yu Chao Purchase house funds 211,391.55 Within 1 year 12.28% ---
Zhang Tiemei Purchase house funds 210,000.00 Within 1 year 12.20% ---
Total --- 1,721,391.55 --- 100.00% ---
(5) Other account receivable derecognition due to financial assets transfer
101
承德南江股份有限公司 2015 年半年度财务报告
(6) Assets and liabilities resulted by other account receivable transfer and continues involvement
Other explanation:
2. Other accounts receivable
(1) Classification
In RMB
Ending balance Opening balance
Provision for bad
Book balance Book balance Provision for bad debts
Type debts Book
Book value
Provision value Provision
Amount Ratio Amount Amount Ratio Amount
ratio ratio
Other receivables
with bad debt 13,992,6 49,078.4 13,943,60 16,687, 16,638,184.
99.50% 0.35% 99.58% 49,078.42 0.29%
provision accrual by 84.42 2 6.00 262.55 13
credit portfolio
Other receivable with
single minor amount
70,000.0 70,000.0 70,000.
while withdrawal bad 0.50% 100.00% 0.42% 70,000.00 100.00%
0 0 00
debt provision
separately
14,062,6 119,078. 13,943,60 16,757, 119,078.4 16,638,184.
Total 100.00% 0.85% 100.00% 0.71%
84.42 42 6.00 262.55 2 13
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period:
□ Applicable √ Not applicable
In combination, other accounts receivable whose bad debts provision was accrued by age analysis:
√ Applicable □ Not applicable
In RMB
Ending balance
Age
Other receivable Provision for bad debts Provision ratio
Within 1 year
Subtotal within one year 996,218.94 49,078.42 4.93%
Total 996,218.94 49,078.42 4.93%
Explanations on combination determine:
In combination, withdrawal proportion of bad debt provision based on balance proportion for other account
receivable
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable
√ Applicable □ Not-applicable
Name Ending balance
Other receivable Provision for bad debts Provision ratio (%)
102
承德南江股份有限公司 2015 年半年度财务报告
Ecological Agriculture 7,862,372.47 —— ——
Land Reserve Center of County Final 3,678,200.00 —— ——
payment for land acquisition
Morsh Technology 231,548.00 —— ——
Petroleum account paid in advance to 108,399.29 —— ——
Petroleum Company
Specific fund of cement 90,421.00 —— ——
Nanjiang Asia 3,396.86 —— ——
Other 1,022,127.86 —— ——
Total 12,996,465.48 —— ——
In combination, withdrawal proportion of bad debt provision based on other methods for other account was 0 Yuan, mainly take the
low risks of un-recoverable into consideration
(2) Bad debt provision accrual, collected or reversed
Accrual bad debt provision 0 Yuan; collected or reversed 0 Yuan.
Major bad debt provision reversal or collected in the Period:
In RMB
Company Amount reversal or collected Collection way
(3) Other receivables actually written-off during the reporting period
In RMB
Item Amount written off
Written-off for the major other receivable:
In RMB
Nature of other Procedures Arising from related
Company Amount written off Reason for write-off
receivables implemented transactions
Explanation for write-off of other receivables:
(4) Other receivables by nature
In RMB
Nature Ending book balance Opening book balance
Intercourse funds 8,097,317.33 6,537,617.91
Land Reserve Center of County Final
3,678,200.00 3,678,200.00
payment for land acquisition
Safety measure fee 726,399.88 2,087,655.99
Petroleum account paid in advance to
108,399.29 108,399.29
Petroleum Company
Specific fund of cement 90,421.00 90,421.00
Margin 3,203,400.00
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承德南江股份有限公司 2015 年半年度财务报告
Other 1,361,946.92 1,051,568.36
Total 14,062,684.42 16,757,262.55
(5) Top 5 other receivables at ending balance by arrears party
In RMB
Ratio in total ending
Ending balance of
Company Nature Ending balance Book age balance of other
bad bet provision
receivables
Ecological
Intercourse funds 7,862,372.47 Within 1 year 55.91%
Agriculture
Land Reserve Center Final payment for
3,678,200.00 Within 1 year 26.16%
of Chengde County land acquisition
The Great Wall Group Safety measure fee 324,800.00 Within 1 year 2.31%
Morsh Technology
Intercourse funds 231,548.00 Within 1 year 1.65%
Company
Lichen Company Safety measure fee 167,399.88 Within 1 year 1.19%
Total -- 12,264,320.35 -- 87.21%
(6) Account receivable with government grand involved
In RMB
Name of government Time, amount and basis
Name Ending balance Aging at period-end
subsidies item estimated to received
(7) Other account receivable derecognition due to financial assets transfer
(8) Assets and liabilities resulted by other account receivable transfer and continues involvement
Other explanation:
3. Long-term equity investment
In RMB
Ending balance Opening balance
Item
Book balance Impairment Book value Book balance Impairment Book value
Investment for
783,852,164.40 626,567,328.03 157,284,836.37 783,852,164.40 626,567,328.03 157,284,836.37
subsidiary
Total 783,852,164.40 626,567,328.03 157,284,836.37 783,852,164.40 626,567,328.03 157,284,836.37
(1) Investment for subsidiary
In RMB
Ending balance of
Impairment
The invested entity Opening balance Increased Decreased Ending balance impairment
accrual
provision
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承德南江股份有限公司 2015 年半年度财务报告
Nanjiang Real
53,114,299.73 53,114,299.73
Estate
Nanjiang
90,000,000.00 90,000,000.00
Investment
Xingye
Papermaking 626,567,328.03 626,567,328.03 626,567,328.03
Making
Runhua RW 9,170,370.00 9,170,370.00
Nanjiang Asia 5,000,166.64 5,000,166.64
Total 783,852,164.40 783,852,164.40 626,567,328.03
(2) Investment for associates and joint venture
In RMB
+,-
Ending
Other Cash
Investme balance
Additiona comprehe dividend
Opening nt gains Other Ending of
Company l Capital nsive or profit Impairme
balance recognize equity Other balance impairme
investmen reduction income announce nt accrual
d under change nt
t adjustmen d to
equity provision
t issued
I. Joint venture
II. Associated enterprise
(3)Other explanation
4. Operating income and cost
In RMB
Amount in Period Amount in last period
Item
Income Cost Income Cost
Main business 235,995,521.12 173,789,765.75
Other business 431,217.42 431,217.42 4,068,045.62 468,045.62
Total 236,426,738.54 174,220,983.17 4,068,045.62 468,045.62
Other explanation:
5. Investment gains
In RMB
Item Amount in Period Amount in last period
105
承德南江股份有限公司 2015 年半年度财务报告
6. Other
XVI. Supplementary Information
1. Current non-recurring gains/losses
√ Applicable □ Not-applicable
In RMB
Item Amount Note
Gains/losses from the disposal of
103,610,779.62
non-current asset
Other non-operating income and expenditure
-2,751,841.93
except for the aforementioned items
Total 100,858,937.69 --
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
2. REO and earnings per share
Earnings per share
Profits during report period Weighted average ROE Diluted EPS
Basic EPS (RMB/Share)
(RMB/Share)
Net profits belong to common stock
34.32% 0.17 0.17
stockholders of the Company
Net profits belong to common stock
stockholders of the Company after
5.51% 0.03 0.03
deducting nonrecurring gains and
losses
3. 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
(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
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承德南江股份有限公司 2015 年半年度财务报告
(3) Explain accounting difference over the accounting rules in and out of China; as for the difference
adjustment for data audited by foreign auditing organ, noted the name of such foreign organ .
107
