承德南江股份有限公司 2016 年半年度财务报告
CHENGDE NANJIANG CO．，LTD.
Semi-Annual Financial Report 2016
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.
2016-06-30
In RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 138,135,232.83 88,237,416.98
Settlement provisions
Capital lent
Financial assets measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes receivable
Accounts receivable 173,815.53 156,113.53
Accounts paid in advance 476,361.30 1,105,122.95
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Interest receivable
Dividend receivable
Other receivables 89,886,870.26 88,149,302.51
Purchase restituted finance asset
Inventories 478,454,283.19 619,241,374.72
Divided into assets held for sale
Non-current asset due within one
year
Other current assets 28,428,183.32 33,761,457.51
Total current assets 735,554,746.43 830,650,788.20
Non-current assets:
Loans and payments on behalf
Finance asset available for sales 25,000,000.00
Held-to-maturity investment
Long-term account receivable
承德南江股份有限公司 2016 年半年度财务报告
Long-term equity investment 2,331,040.66 2,343,974.43
Investment property
Fixed assets 9,385,790.29 8,905,699.17
Construction in progress
Engineering material
Disposal of fixed asset
Productive biological asset 117,851.31 148,509.76
Oil and gas asset
Intangible assets 6,327,132.59 6,392,510.57
Expense on Research and
1,070,065.92 172,416.18
Development
Goodwill
Long-term expenses to be
426,327.98 202,353.97
apportioned
Deferred income tax asset 775,645.41 775,645.41
Other non-current asset 5,201,365.53 5,201,365.53
Total non-current asset 50,635,219.69 24,142,475.02
Total assets 786,189,966.12 854,793,263.22
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 21,540,948.19 35,013,234.30
Accounts received in advance 373,255,743.92 435,991,938.57
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 398.22 9,929.42
Taxes payable 949,153.12 21,343.61
Interest payable
Dividend payable
Other accounts payable 14,689,998.40 12,746,101.70
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
承德南江股份有限公司 2016 年半年度财务报告
Other current liabilities
Total current liabilities 410,436,241.85 483,782,547.60
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 410,436,241.85 483,782,547.60
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 463,673,488.64 459,871,788.64
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 -888,925,345.31 -890,727,215.25
Total owner’s equity attributable to
357,859,693.50 352,256,123.56
parent company
Minority interests 17,894,030.77 18,754,592.06
Total owner’s equity 375,753,724.27 371,010,715.62
Total liabilities and owner’s equity 786,189,966.12 854,793,263.22
Legal Representative: Zhao Yongsheng Person in charge of Accounting Works: Zhao
Yongsheng Person in charge of Accounting Institution: Liu Fengguo
2. Balance Sheet of Parent Company
In RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 74,720,954.42 25,647,536.08
Financial assets measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
承德南江股份有限公司 2016 年半年度财务报告
Notes receivable
Accounts receivable
Account paid in advance 356,310.90 10,000.00
Interest receivable
Dividends receivable
Other receivables 18,271,680.13 13,893,565.73
Inventories 462,684,988.38 599,128,751.32
Divided into assets held for sale
Non-current assets maturing within
one year
Other current assets 27,283,804.00 32,139,201.03
Total current assets 583,317,737.83 670,819,054.16
Non-current assets:
Available-for-sale financial assets 25,000,000.00
Held-to-maturity investments
Long-term receivables
Long-term equity investments 197,699,651.37 202,284,836.37
Investment property
Fixed assets 1,793,635.97 1,906,708.89
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 167,766.35 130,322.92
Deferred income tax assets 750.00 750.00
Other non-current assets
Total non-current assets 224,661,803.69 204,322,618.18
Total assets 807,979,541.52 875,141,672.34
Current liabilities:
Short-term borrowings
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes payable
Accounts payable 13,030,586.54 25,479,538.71
Accounts received in advance 372,400,907.26 430,730,271.19
Wage payable 398.22 628.22
Taxes payable 936,727.38 2,174.06
承德南江股份有限公司 2016 年半年度财务报告
Interest payable
Dividend payable
Other accounts payable 242,284,740.91 246,243,610.32
Divided into liability held for sale
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 628,653,360.31 702,456,222.50
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 628,653,360.31 702,456,222.50
Owners’ equity:
Share capita 706,320,000.00 706,320,000.00
Other equity instrument
Including: preferred stock
Perpetual capital securities
Capital public reserve 456,569,124.55 452,767,424.55
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus reserve 76,791,550.17 76,791,550.17
Retained profit -1,060,354,493.51 -1,063,193,524.88
Total owner’s equity 179,326,181.21 172,685,449.84
Total liabilities and owner’s equity 807,979,541.52 875,141,672.34
3. Consolidated Profit Statement
In RMB
Item Current Period Last Period
I. Total operating income 191,414,481.74 52,376,672.16
Including: Operating income 191,414,481.74 52,376,672.16
Interest income
Insurance gained
Commission charge and commission
承德南江股份有限公司 2016 年半年度财务报告
income
II. Total operating cost 190,180,369.70 66,521,798.78
Including: Operating cost 163,182,686.63 53,256,492.38
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 12,955,210.55 54,088.94
Sales expenses 314,718.06 1,318,219.88
Administration expenses 13,829,541.30 11,680,726.82
Financial expenses -101,786.84 212,670.76
Losses of devaluation of asset -400.00
Add: Changing income of fair
value(Loss is listed with “-”)
Investment income (Loss is listed
-12,933.77 37,559.09
with “-”)
Including: Investment income on
affiliated company and joint venture
Exchange income (Loss is listed
with “-”)
III. Operating profit (Loss is listed with
1,221,178.27 -14,107,567.53
“-”)
Add: Non-operating income 69,070.59 104,076,331.26
Including: Disposal gains of
103,610,779.62
non-current asset
Less: Non-operating expense 339,948.94 3,217,393.57
Including: Disposal loss of
non-current asset
IV. Total Profit (Loss is listed with “-”) 950,299.92 86,751,370.16
Less: Income tax expense 8,991.27 12,929,483.98
V. Net profit (Net loss is listed with “-”) 941,308.65 73,821,886.18
Net profit attributable to owner’s of
1,801,869.94 75,402,588.38
parent company
Minority shareholders’ gains and
-860,561.29 -1,580,702.20
losses
VI. Net after-tax of other comprehensive
income
承德南江股份有限公司 2016 年半年度财务报告
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
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 941,308.65 73,821,886.18
Total comprehensive income
1,801,869.94 75,402,588.38
attributable to owners of parent Company
Total comprehensive income
-860,561.29 -1,580,702.20
attributable to minority shareholders
VIII. Earnings per share:
承德南江股份有限公司 2016 年半年度财务报告
(i) Basic earnings per share 0.003 0.110
(ii) Diluted earnings per share 0.003 0.110
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 180,141,392.89 431,217.42
Less: Operating cost 151,288,325.84 431,217.42
Operating tax and extras 12,822,979.94
Sales expenses 114,165.00 189,210.76
Administration expenses 8,380,621.85 6,720,106.34
Financial expenses -67,570.12 -59,408.27
Losses of devaluation of asset 4,585,185.00
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
3,017,685.38 -6,849,908.83
with “-”)
Add: Non-operating income
Including: Disposal gains of
non-current asset
Less: Non-operating expense 178,654.01 2,877,209.13
Including: Disposal loss of
non-current asset
III. Total Profit (Loss is listed with
2,839,031.37 -9,727,117.96
“-”)
Less: Income tax expense
IV. Net profit (Net loss is listed with
2,839,031.37 -9,727,117.96
“-”)
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
承德南江股份有限公司 2016 年半年度财务报告
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 2,839,031.37 -9,727,117.96
VII. Earnings per share:
(i) Basic earnings per share
(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 137,650,745.69 225,860,001.44
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
承德南江股份有限公司 2016 年半年度财务报告
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 36.00
Other cash received concerning
8,055,810.61 44,484,328.26
operating activities
Subtotal of cash inflow arising from
145,706,592.30 270,344,329.70
operating activities
Cash paid for purchasing
commodities and receiving labor 30,339,142.70 178,275,646.38
service
Net increase of customer loans and
advances
Net increase of deposits in central
bank and interbank
Cash paid for original insurance
contract compensation
Cash paid for interest, commission
charge and commission
Cash paid for bonus of guarantee
slip
Cash paid to/for staff and workers 10,973,577.47 5,301,032.75
Taxes paid 10,536,340.72 7,734,842.66
Other cash paid concerning
17,002,547.44 46,676,777.28
operating activities
Subtotal of cash outflow arising from
68,851,608.33 237,988,299.07
operating activities
Net cash flows arising from operating
76,854,983.97 32,356,030.63
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
承德南江股份有限公司 2016 年半年度财务报告
Cash received from investment
income
Net cash received from disposal of
fixed, intangible and other long-term
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from investing
activities
Cash paid for purchasing fixed,
1,994,960.98 184,984.00
intangible and other long-term assets
Cash paid for investment 25,000,000.00
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
26,994,960.98 184,984.00
activities
Net cash flows arising from investing
-26,994,960.98 -184,984.00
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Including: Cash received from
absorbing minority shareholders’
investment by subsidiaries
Cash received from loans
Cash received from issuing bonds
Other cash received concerning
753,264.46
financing activities
Subtotal of cash inflow from financing
753,264.46
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 1,626,700.00 1,553,600.00
承德南江股份有限公司 2016 年半年度财务报告
financing activities
Subtotal of cash outflow from financing
1,626,700.00 1,553,600.00
activities
Net cash flows arising from financing
-873,435.54 -1,553,600.00
activities
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash
48,986,587.45 30,617,446.63
equivalents
Add: Balance of cash and cash
84,543,677.45 35,582,359.90
equivalents at the period -begin
VI. Balance of cash and cash
133,530,264.90 66,199,806.53
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 125,007,492.84 83,258,803.42
services
Write-back of tax received 36.00
Other cash received concerning
17,073,078.15 48,876,334.80
operating activities
Subtotal of cash inflow arising from
142,080,606.99 132,135,138.22
operating activities
Cash paid for purchasing
commodities and receiving labor 20,218,504.45 38,815,508.50
service
Cash paid to/for staff and workers 6,323,092.84 3,508,767.00
Taxes paid 9,928,150.19 6,927,837.65
Other cash paid concerning
31,528,674.54 47,594,532.13
operating activities
Subtotal of cash outflow arising from
67,998,422.02 96,846,645.28
operating activities
Net cash flows arising from operating
74,082,184.97 35,288,492.94
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment
承德南江股份有限公司 2016 年半年度财务报告
income
Net cash received from disposal of
fixed, intangible and other long-term
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from investing
activities
Cash paid for purchasing fixed,
10,788.00 157,984.00
intangible and other long-term assets
Cash paid for investment 25,000,000.00
Net cash received from
subsidiaries and other units
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
25,010,788.00 157,984.00
activities
Net cash flows arising from investing
-25,010,788.00 -157,984.00
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Cash received from loans
Cash received from issuing bonds
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
activities
Cash paid for settling debts
Cash paid for dividend and profit
distributing or interest paying
Other cash paid concerning
1,626,700.00 1,553,600.00
financing activities
Subtotal of cash outflow from financing
1,626,700.00 1,553,600.00
activities
Net cash flows arising from financing
-1,626,700.00 -1,553,600.00
activities
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
承德南江股份有限公司 2016 年半年度财务报告
V. Net increase of cash and cash
47,444,696.97 33,576,908.94
equivalents
Add: Balance of cash and cash
22,671,791.13 17,625,400.53
equivalents at the period -begin
VI. Balance of cash and cash
70,116,488.10 51,202,309.47
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 -890,72
I. Balance at the 459,871 76,791, 18,754, 371,010
0,000. 7,215.2
end of the last year ,788.64 550.17 592.06 ,715.62
00 5
Add: Changes
of accounting
policy
Error
correction of the
last period
Enterprise
combine under
the same control
Other
II. Balance at the 706,32 459,871 76,791,
-890,72
18,754, 371,010
beginning of this 0,000. 7,215.2
,788.64 550.17 592.06 ,715.62
year 00 5
III. Increase/
Decrease in this 3,801,7 1,801,8 -860,56 4,743,0
year (Decrease is 00.00 69.94 1.29 08.65
listed with “-”)
(i) Total 1,801,8 -860,56 941,308
comprehensive
69.94 1.29 .65
income
(ii) Owners’ 3,801,7 3,801,7
devoted and
00.00 00.00
decreased capital
1.Common shares 3,801,7 3,801,7
invested by
00.00 00.00
shareholders
承德南江股份有限公司 2016 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. 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
1. Withdrawal in
the report period
2. Usage in the
report period
(VI) Others
IV. Balance at the 706,32 463,673 76,791,
-888,92
17,894, 375,753
end of the report 0,000. 5,345.3
,488.64 550.17 030.77 ,724.27
period 00 1
Last Period
In RMB
Last Period
Item
Owners’ equity attributable to the parent Company Minorit Total
承德南江股份有限公司 2016 年半年度财务报告
Other y owners’
equity instrument interest equity
Perpet Less: Other Provisio s
Share Reason
ual Capital Invento compre Surplus n of Retaine
Prefer able
capital capita reserve ry hensive reserve general d profit
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 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 75,402, -1,580, 77,223,
year (Decrease is 00.00 588.39 702.20 286.19
listed with “-”)
(i) Total 75,402, -1,580, 73,821,
comprehensive
588.39 702.20 886.19
income
(ii) Owners’ 3,401,4 3,401,4
devoted and
00.00 00.00
decreased capital
1.Common shares 3,401,4 3,401,4
invested by
00.00 00.00
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
承德南江股份有限公司 2016 年半年度财务报告
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
1. Withdrawal in
the report period
2. Usage in the
report period
(VI) Others
IV. Balance at the 706,32 459,871 76,791,
-874,19
18,676, 387,462
end of the report 0,000. 7,333.9
,788.64 550.17 923.61 ,928.44
period 00 8
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
-1,063,1
I. Balance at the 706,320, 452,767,4 76,791,55 172,685,4
93,524.
end of the last year 000.00 24.55 0.17 49.84
88
Add: Changes
of accounting
承德南江股份有限公司 2016 年半年度财务报告
policy
Error
correction of the
last period
Other
II. Balance at the 706,320, -1,063,1
452,767,4 76,791,55 172,685,4
beginning of this 93,524.
000.00 24.55 0.17 49.84
year 88
III. Increase/
Decrease in this 3,801,700 2,839,0 6,640,731
year (Decrease is .00 31.37 .37
listed with “-”)
(i) Total 2,839,0 2,839,031
comprehensive
31.37 .37
income
(ii) Owners’ 3,801,700 3,801,700
devoted and
.00 .00
decreased capital
1.Common shares 3,801,700 3,801,700
invested by
.00 .00
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
owners’ equity
1. Capital reserves
conversed to
capital (share
capital)
2. Surplus reserves
conversed to
capital (share
capital)
3. Remedying loss
承德南江股份有限公司 2016 年半年度财务报告
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, -1,060,3
456,569,1 76,791,55 179,326,1
end of the report 54,493.
000.00 24.55 0.17 81.21
period 51
Last period
In RMB
Last 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 -9,727,1 -6,325,71
year (Decrease is .00 17.96 7.96
listed with “-”)
(i) Total -9,727,1 -9,727,11
comprehensive
17.96 7.96
income
(ii) Owners’ 3,401,400 3,401,400
devoted and
.00 .00
decreased capital
1.Common shares
3,401,400 3,401,400
invested by
承德南江股份有限公司 2016 年半年度财务报告
shareholders .00 .00
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
(VI) Others
IV. Balance at the 706,320, -1,062,5
452,767,4 76,791,55 173,314,8
end of the report 64,101.
000.00 24.55 0.17 73.62
period 10
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
承德南江股份有限公司 2016 年半年度财务报告
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 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,
承德南江股份有限公司 2016 年半年度财务报告
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)
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 30 June 2016, 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
承德南江股份有限公司 2016 年半年度财务报告
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 Nanjiang Huijing 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 29 August 2016 for
reporting.
Totally 8 subjects are included in the consolidate financial statement, mainly including:
Shareholding Voting rights ratio
Subsidiaries Type Level
ratio (%) (%)
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., Wholly-owned 3 100.00 100.00
Ltd. (Ecological Agriculture for short) sub-subsidiary
Hangzhou Dongfeng Yinshen Technology Co., Holding 2 90.00 90.00
Ltd. (Hangzhou Dongfeng 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) 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.
IV. Basis of preparation of financial statements
1. Preparation basis
The Company conducts recognition and measurement according to actual occurrence of
transactions and issues, pursuant to the accounting principles for enterprise-basic rules and
承德南江股份有限公司 2016 年半年度财务报告
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 been found in 12 months since end of the reporting period. The financial statement
is prepared base on going concern assumption.
V. Major accounting policy and accounting estimation
Notice of specific accounting policy and estimation:
In accordance with the actual production characteristic of the Company, formulate specific
accounting policy and estimation aim at bad debt provision for account receivable, fixed assets
depreciation, intangible assets amortization and revenue recognition.
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 the Company.
2. Fiscal period
The fiscal period of the Company refers to annual and interim, the interim refers to the reporting
period shorter than one completed fiscal year. The Company choose Gregorian calendar year for
its fiscal period, which is from 1 January to 31 December on basis of Gregorian calendar.
3. Operating cycle
A normal operating cycle is the period from purchasing assets used for processing to the cash or
cash equivalent achieved. Main business of the Company is developing the real estate products for
sale purpose, the period from land purchased to the cash and cash equivalent obtained from selling
the constructed development products is the operating cycle of the Company. The cycle is usually
larger than 12 months. However, the Company choose one year as the normal operating cycle due
to the undetermined normal business cycle, and it is the partition criterion for the liquidity of
assets and liabilities
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
承德南江股份有限公司 2016 年半年度财务报告
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
The Company’s assets and liabilities acquired in a business combination are measured by the book
value in the consolidated financial statements of ultimate controlling party in accordance with the
assets and liabilities (including the goodwill formed by the ultimate controlling party’s acquisition
to the combined party) of combined party on combining date. If there is balance between the book
value of net assets obtained in merger and the book value of paid merger consideration (or total
face value of issued shares), adjust the stock premium in capital reserve, and adjust the retained
earnings if the stock premium in capital reserve is not enough for writing down.
If there is a contingent consideration needs to confirm the expected liabilities or assets, and there
is balance between the expected liabilities or assets amount and the settlement amount of
follow-up contingent consideration, adjust the capital reserve (capital premium or stock premium),
and adjust the retained earnings if the capital reserve is not enough.
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, 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.
3. Business combination not under the same control
The Company's assets paid as the consideration of business merger or liabilities occurred or
assumed on the acquisition date are measured by the fair value, and the balance between fair value
and its book value is included in the current profit and loss.
The Company confirms the balance that the combined cost is greater than the fair value shares of
承德南江股份有限公司 2016 年半年度财务报告
acquiree’s recognizable net assets obtained in the combination as the goodwill; the balance that
the combined cost is less than the fair value shares of acquiree’s net identifiable assets obtained in
the combination is included in the current profit and loss after re-checking.
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; 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.
4. Relevant expenses from combination
The intermediate expenses occurred for business combination such as audit, legal service and
appraisal consultation expenses and other related expenses shall be recorded in current gains and
losses when occurred; the trading expenses for equity securities offering shall be excluded while
reckoned into equity transaction directly.
6. Methods for preparation of consolidated financial statements
1. Consolidated scope
The consolidation scope of the consolidated financial statements of the Company is fixed on the
basis of control, and all subsidiaries (including the independent subject control by the Company)
have been consolidated.
2. Consolidated procedure
Based on financial statements of its own and the subsidiaries, the Company establishes the
consolidated financial statements according to other relevant data. The consolidated financial
statements established by the Company regard the whole enterprise group as an accounting subject,
and reflect the overall financial situation, operating results and cash flow of the enterprise group
by the uniform accounting policies in accordance with the relevant confirmation, measurement
and presentation requirements of accounting standards.
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
承德南江股份有限公司 2016 年半年度财务报告
Company.
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. If there is difference between the point of view
of consolidated financial statements of enterprise group and the affirmation to the same
transaction by taking the Company or its subsidiaries as the accounting subject, adjust the
transaction from the enterprise group’s point of view.
The ownership interests of subsidiaries, current net profits or losses and shares of current
comprehensive income belonging to minority shareholders are respectively and separately listed
under the ownership interest item of consolidated balance sheet, the net profit item of consolidated
profit statement and the total comprehensive income item. The balance that the current losses
shared by the subsidiary's minority shareholders is greater than the shares in the ownership
interests held by the minority shareholders in the beginning period of this subsidiary offsets
against the minority stockholders' interests.
For the subsidiaries acquired through business combination under the same control, take the fair
value of its assets and liabilities (including the goodwill formed by the ultimate controlling party’s
acquisition to the combined party) in the financial statements of ultimate controlling party as a
basis to adjust its financial statements.
For the subsidiaries acquired through business combination not under the same control, take the
fair value of net identifiable assets on acquisition date to adjust its financial statements.
(1) Increase subsidiaries or businesses
During the reporting period, if there are subsidiaries or businesses increased by the business
combination under the same control, adjust the opening balance of consolidated balance sheet;
include the income, expenses and profits of the subsidiaries or business combination from the
beginning of the period to the end of the reporting period into the consolidated profit statement;
include the cash flow of the subsidiaries or business combination from the beginning of the period
to the end of the reporting period into the consolidated statement of cash flows, adjust the relevant
items of comparative statements at the same time, and regard that the reporting entity after
combination has been exiting since the ultimate controller starts controlling.
If the control can be implemented to the investees under the same control due to the additional
investment, it can be regarded that all partied in the combination can be adjusted when the
ultimate controller starts controlling, i.e. by the current status and existence. For the equity
investment held before obtaining the control power of combined party, the relevant profit and loss,
other comprehensive income and other changes in net assets from the later date between the
acquisition date of original stock right and the date when the combining party and combined party
are under the same control to the combination date respectively offset against the retained earnings
at the beginning of the period or the current profit and loss in the comparative statement period.
承德南江股份有限公司 2016 年半年度财务报告
During the reporting period, if there are subsidiaries or businesses increased by the business
combination not under the same control, don’t adjust the opening balance of consolidated balance
sheet; include the income, expenses and profits of the subsidiaries or business combination from
the purchase date to the end of the reporting period into the consolidated profit statement; include
the cash flow of the subsidiaries or business combination from the purchase date to the end of the
reporting period into the consolidated statement of cash flows.
If the control can be implemented to the investees not under the same control due to the additional
investment, the Company re-measures the stock right of acquiree held before the purchase date
according to the fair value of this stock right on the purchase date, the balance between fair value
and its book value is included in the current investment income. Other comprehensive income that
the stock right of acquiree held before the purchase date involving in equity method business
accounting and other changes in ownership interest except for net profit or loss, other
comprehensive income and profits distribution, together with its relevant other comprehensive
income and other changes in ownership interest are transferred into the current investment income
attributable to the purchase date, besides the other comprehensive income generated by the
changes in the net indebtedness and net assets re-measured and defined benefit plans by investees.
(2) Disposal of subsidiaries or businesses
1) General approaches
During the reporting period, if the Company disposes a subsidiary or business, the income,
expense and profit of this subsidiary or business from the beginning of the period to the disposal
date are included in the consolidated income statement; the cash flow of this subsidiary or
business from the beginning of the period to the disposal date are included in the consolidated
statement of cash flows.
When control power over investees are lost due to disposal of some equity investment or other
reasons, the Company re-measure the remaining equity investment after disposal in accordance
with its fair value on the date to lose the control power. The balance by subtracting the sum of
consideration obtained by disposing stock right and fair value of residual equity from the sum of
the shares of net assets continuously calculated according to the original shareholding ratio since
the purchase date or combination date of the original subsidiary and the goodwill are included in
the investment income of the current period of losing control power. Other comprehensive income
related to the equity investment of original subsidiary and other changes in ownership interest
except for other net profit and loss, other comprehensive income and profits distribution are
transferred into current investment income when losing the control power, besides the other
comprehensive income generated by the changes in the net indebtedness and net assets
re-measured and defined benefit plans by investees.
2) Dispose subsidiaries step by step
Dispose a subsidiary's equity investment until losing the control power step by step through
multiple transactions, if the terms, conditions and economic impact of the disposal to various
transactions of the subsidiary's equity investment conform to following one or various conditions,
承德南江股份有限公司 2016 年半年度财务报告
it means that the multiple transactions should have accounting treatment as a package deal:
A. These transactions are made by considering each other’s impacts;
B. These transactions can only reach a complete business result as a whole;
C. The occurrence of one transaction depends on the occurrence of at least one other transaction;
D. One transaction alone is not economical, but it is economical when it is considered together
with other transactions.
The various transactions that dispose a subsidiary's equity investment until losing the control
power belong to a package deal, the Company handles accounting treatment to various
transactions by taking them as a transaction disposing a subsidiary's equity investment and losing
the control power; however, the balance between every disposal price before losing control power
and net asset shares of the subsidiary corresponding to disposal of investment should be confirmed
as other comprehensive income in the consolidated financial statements and transferred into the
profit and loss of the current period of losing control power when losing the control power.
The various transactions that dispose a subsidiary's equity investment until losing the control
power and don’t belong to a package deal, before losing control power, are handled with
accounting treatment according to relevant policies which used to partly dispose the subsidiary's
equity investment on the condition of not losing the control power; when losing the control power,
they are handled with accounting treatment according to the general handling methods used to
dispose the subsidiary.
(3) Purchase the minority shareholding of a subsidiary
If there is balance between the Company’s long-term equity investment newly obtained by
purchasing the minority shareholding and the net asset shares of the subsidiary continuously
calculated from the acquisition date (or combination date) according to the newly increased
shareholding ratio, adjust the capital stock premium in capital reserve on consolidated balance
sheet, if the capital stock premium in capital reserve is not enough for offset, adjust the retained
earnings.
(4) The partial disposal of equity investments in subsidiaries without losing the control power
If there is balance between the disposal price obtained by the partial disposal of long-term equity
investments in subsidiaries without losing the control power and the net asset shares of the
subsidiary continuously calculated from the acquisition date or combination date corresponding to
the disposal of long-term equity investments, adjust the capital stock premium in capital reserve
on consolidated balance sheet, if the capital stock premium in capital reserve is not enough for
offset, adjust the retained earnings.
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.
承德南江股份有限公司 2016 年半年度财务报告
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 shows 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.
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 assets 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.
承德南江股份有限公司 2016 年半年度财务报告
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 while initially recognized.
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 as the changes of fair value. if the foreign currency
non-monetary items belongs to foreign currency available for sale, the arising exchange difference
shall be recorded in other comprehensive income.
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 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
承德南江股份有限公司 2016 年半年度财务报告
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 or the overseas business, which has
lower operation ratio overseas without operation controlling loss due to other reason, the
translation differences related to disposal part shall including in equity of minority shareholders,
no need to transfer into current gains/losses. In case of partial disposal of associated or joint
venture, foreign currency 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 is 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
承德南江股份有限公司 2016 年半年度财务报告
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 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/loses 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
承德南江股份有限公司 2016 年半年度财务报告
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 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
承德南江股份有限公司 2016 年半年度财务报告
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.
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 can not 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;
承德南江股份有限公司 2016 年半年度财务报告
(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.
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
承德南江股份有限公司 2016 年半年度财务报告
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; as for the financial assets initially acquired or financial liabilities
assumed, their fair value are determined based on the market transaction prices; in case that there
are no such active market for financial assets and financial liabilities, the fair value shall be
determined by evaluation technology. At time of evaluation, the applicable evaluation technology,
in the prevailing circumstance, and those have available date and other information supporting
shall be adopted, choose the input value, same with the assets or liability features that consider in
transaction by market participants, and use the relevant observable input values as far as possible.
Use the un-observable input values when relevant observable input values unable to obtained or
obtained without feasible.
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;
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
承德南江股份有限公司 2016 年半年度财务报告
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;
A 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 instrument investment which is not
quoted in an active market and whose fair value cannot be measured reliably and derivative
承德南江股份有限公司 2016 年半年度财务报告
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 not less than RMB 1 million
amount
Conducted impairment testing separately, balance between the
present value of future cash flow and its carrying value, bad debt
Withdrawal method for bad debt provision of account receivable provision withdrawal and reckoned into current
with single significant amount: gains/losses. Receivables that decrease in value has not
occurred in individual testing should be included in the
corresponding bad debt provisions.
(2) Accounts receivable whose bad debts provision was accrued by combination of credit risk
characteristics portfolio
Combination Methods on withdrawal of bad debt provision
Age combination Age analysis method
Related party combination in combined range Other method
No risk portfolio Other method
Accrued for provision of bad debt by aging analysis method in portfolio:
√ 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%
承德南江股份有限公司 2016 年半年度财务报告
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
Account age Rate for receivables Rate for other receivables
Related party combination in combined
0.00% 0.00%
range
No risk portfolio 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.
承德南江股份有限公司 2016 年半年度财务报告
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 develops 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.
承德南江股份有限公司 2016 年半年度财务报告
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 Note- Accounting method for busines
combination (not) under the same control.
(2) Long-term equity investment obtained by other means
For long-term equity investments obtained through payment with cash, then the actual
payment shall be viewed as initial investment cost. Initial 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-monetary 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 reorganization, 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.
承德南江股份有限公司 2016 年半年度财务报告
(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.
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 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
承德南江股份有限公司 2016 年半年度财务报告
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.
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
承德南江股份有限公司 2016 年半年度财务报告
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.
(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
承德南江股份有限公司 2016 年半年度财务报告
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 results;
(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 subsidiaries should be transferred to investment gain for the
period at the time of loss of control.
承德南江股份有限公司 2016 年半年度财务报告
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, including the rented land use rights and the land use rights which are
承德南江股份有限公司 2016 年半年度财务报告
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 Predicted rate of net salvage Depreciation(amortization)
(year) value 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;
承德南江股份有限公司 2016 年半年度财务报告
and
(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 20.00-28.00 5% 3.39%-4.75%
Machinery equipment Straight-line depreciation 4.00-5.00 5% 19.00%-23.75%
Transportation
Straight-line depreciation 5.00-20.00 5% 4.75%-19.00%
equipment
Other equipment Straight-line depreciation 3.00-5.00 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 are 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, and travelling expenses, 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
承德南江股份有限公司 2016 年半年度财务报告
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 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.
承德南江股份有限公司 2016 年半年度财务报告
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.
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
承德南江股份有限公司 2016 年半年度财务报告
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.
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
承德南江股份有限公司 2016 年半年度财务报告
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%
Sheep and pigs 3 5% 31.67%
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.
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
承德南江股份有限公司 2016 年半年度财务报告
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 service life:
Item Predicted useful life Basis
Patent right, trademark right, non-patents 5-year Within the terms of contractual rights or other
and outsourcing software statutory rights
Land use right 50-year Within the terms of contractual rights or other
statutory rights
At end of year, 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.
承德南江股份有限公司 2016 年半年度财务报告
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
1. Detail standard for classification on research stage and exploitation stage
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.
2. Standards for capitalization satisfaction of expenditure in exploitation state
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 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.
承德南江股份有限公司 2016 年半年度财务报告
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. Amortization method
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. Long term
prepaid expense amortized on straight-line method by stages in benefit period.
2. Amortization term
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
Employee compensation refers to various forms of remuneration or compensation given by the
Company for obtaining services provided by employees or severing the labor relations. Employee
compensation includes short-term remuneration, post-employment benefits, termination benefits
and other long-term employee benefits.
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
承德南江股份有限公司 2016 年半年度财务报告
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.
Defined benefit plans for post-employment benefits are primarily clear and standard outside-plan
welfare to pay the retirees and pay the living expenses for the deceased employees’ family
members. For the obligation assumed in the defined benefit plans, the independent actuaries will
accurately calculate by using the expected cumulative actuarial unit credit method on the balance
sheet date, attribute the benefit obligations arising from defined benefit plan to the period of
employee providing services, and include in the current profit or loss or associated asset cost,
thereinto, unless other accounting standards require or allow the employee benefits costs to be
included in the asset cost, the service costs of defined benefit plans and the net interest of net
indebtedness and net assets of defined benefit plans should be included in the current profit and
loss in the current occurrence period; changes in the net indebtedness and net assets of
re-measured defined benefit plans should be included in the other comprehensive income in the
current occurrence period, and are not allowed to switch back to profit and loss in the follow-up
accounting period.
(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, If the Company cannot recall the dismissal
unilaterally or re-organization-related costs with dismissal benefit involved in cutting down, the
liability arising from compensation for recognition of labor relationship released, reckoned into
current gains/losses at the same time.
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 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
承德南江股份有限公司 2016 年半年度财务报告
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 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
承德南江股份有限公司 2016 年半年度财务报告
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
承德南江股份有限公司 2016 年半年度财务报告
the fair values of the liabilities and include the changes in the profit or loss for the period.
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, and
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 recognizes sales revenue
3. Recognition of property leasing revenue:
Property leasing revenue is recognized 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
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
承德南江股份有限公司 2016 年半年度财务报告
(1) Criterion and accounting treatment on government grants with assets concerned
Government subsidies refer to the monetary assets and non-monetary assets the Company
acquired from the government at no cost, but not including the capital the government invests for
the enterprise owners. According to the subsidy objects specified by relevant government
documents, government subsidies can be classified as the government subsidies related to assets
and government subsidies related to incomes.
Government subsidies related to assets refer to the government subsidies that the Company
obtains for purchasing and construction or forming long-term assets in other ways. Government
subsidies related to incomes are recognized as deferred incomes and included in non-operating
incomes by stages according to the useful life of constructed or purchased assets;
(2) Criterion and accounting treatment on government grants with revenue concerned
Government subsidies related to incomes refer to the government subsidies except for those
related to assets. Government subsidies related to incomes used for compensating for an
enterprise’s expenses or losses in the later period are recognized as deferred incomes that shall be
included in the current non-operating incomes during the period of confirming relevant expenses;
those used for compensating for an enterprise’s accrued expenses or losses shall be directly
included in the current non-operating incomes when obtaining them.
When a recognized government subsidy needs to be returned and there is related deferred income
balance, the book balance of related deferred income shall be offset, and the exceeding part shall
be included in current profit and loss; those without related deferred income shall be directly
included in current profit and loss.
28. Deferred income tax assets and deferred income tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognized according to the
balance between the tax base and the book value of assets and liabilities (temporary differences).
At the balance sheet date, the deferred tax assets and deferred tax liabilities are measured by the
applicable tax rate during the period of expected recovery of assets or clearing off the liability.
1. The basis for confirming deferred tax assets
The Company takes the taxable income which is likely to be obtained for deducting the deductable
temporary differences and can carry over the deductable loss and tax credits as the limit to confirm
the deferred income tax assets generated by deductable temporary differences. However, the
deferred income tax assets generated by the initial recognition of assets or liabilities in the
transactions with following characteristics shall not be recognized: (1) the transaction is not a
business combination; (2) the occurrence of transaction affects neither the accounting profit nor
the taxable income or deductible loss.
For the deductible temporary differences associated with investments in associated enterprises and
satisfying the following conditions, confirm the corresponding deferred income tax assets:
temporary difference is likely to be reversed back in the foreseeable future, and it is likely to
obtain the taxable income used for deducting the deductable temporary differences in the future.
2. The basis for confirming deferred tax liabilities
The company recognizes the currently and previously payable but not paid taxable temporary
differences as the deferred income tax liabilities. But not including:
(1) The temporary differences formed in the initial recognition of goodwill;
承德南江股份有限公司 2016 年半年度财务报告
(2) Transactions or events formed by non-business combination, and it affects neither the
accounting profit nor the temporary differences formed by taxable income (or deductible loss)
when the transactions or events occur;
(3) For the taxable temporary differences related to the subsidiary companies and investments in
associated enterprises, the reversal time of this temporary difference can be controlled and this
temporary difference is unlikely to be reversed back in the foreseeable future.
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 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.
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
承德南江股份有限公司 2016 年半年度财务报告
asset lease period and records in finance expenses.
(2) Assets leased out by financing lease: on the inception date of the lease, the Company realizes
the difference between the sum of financing lease account receivables and unguaranteed
remaining value and its present value as unrealized financing income which is conformed as lease
income in future periods involving lease. The initial direct expenses occurred by the Company
related to lease transaction shall be recorded in the initial measurement of financing lease account
receivables. And income realized in lease period shall be reduced accordingly.
30. Other main accounting policy and estimate
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 Taxes Basis
Selling goods, taxable services income and
VAT 17%、13%、3%
taxable services income
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%、16.5%
Land appreciation tax Appreciation value or pre-requisitioned Progressive rates
Educational surtax Turnover tax payable 3%
Local educational surtax Turnover tax payable 2%
Rental income or original value of the
Property tax 12% or 1.2%
property
As for the taxpaying body with different tax rate for enterprise income tax, disclosed explanations:
Taxpaying body Rate for income tax
The Company 25%
Nanjing Real Estate 25%
Nanjiang Investment 25%
Ecological Agriculture 25%
Hangzhou Dongfeng 25%
Nanjiang Asia (tax in Hong Kong Special Administrative 16.5%
承德南江股份有限公司 2016 年半年度财务报告
Region)
Morsh Technology 25%
Huijing Property 25%
Runhua RW 25%
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 190,109.74 70,613.10
Bank deposit 133,340,155.16 84,473,064.35
Other monetary funds 4,604,967.93 3,693,739.53
Total 138,135,232.83 88,237,416.98
Other explanation
Monetary fund with restrictions:
Item Ending balance Opening balance
Margin of housing mortgage 4,604,967.93 3,693,739.53
Total 4,604,967.93 3,693,739.53
Closing balance of monetary fund increased 49,897,815.85 Yuan over that of period-begin with 56.55% up,
mainly because the money for house selling in advance in the period increased
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
with large single
2,320,04 2,320,04 2,320,0 2,320,047
amount and accrued 92.20% 100.00% 0.00 92.86% 100.00% 0.00
7.40 7.40 47.40 .40
for provision of bad
debt on a single basis
Accounts receivable
accrued for provision 196,199. 22,383.8 173,815.5 178,497
7.80% 11.41% 7.14% 22,383.82 12.54% 156,113.53
of bad debt by 35 2 3 .35
portfolio
2,516,24 2,342,43 173,815.5 2,498,5 2,342,431
Total 100.00% 93.09% 100.00% 93.75% 156,113.53
6.75 1.22 3 44.75 .22
Accounts receivable with large single amount and accrued for provision of bad debt on a single basis at
period-end:
√ Applicable □ Not-applicable
承德南江股份有限公司 2016 年半年度财务报告
In RMB
Accounts receivable Ending balance
(unit) Accounts receivable Provision for bad debts Provision ratio Reasons
Beijing Xiangeqing
Industrial & Trade Co., 2,320,047.40 2,320,047.40 100.00% Uncollectible
Ltd.
Total 2,320,047.40 2,320,047.40 -- --
Accounts receivable accrued for provision of bad debt by aging analysis method in portfolio:
√ Applicable □ Not-applicable
In RMB
Ending balance
Aging
Accounts receivable Provision for bad debts Provision ratio
Within 1 year
Subtotal within one year 123,869.00 5,308.35 5.00%
1-2 years 63,632.35 12,726.47 20.00%
2-3 years 8,698.00 4,349.00 50.00%
Total 196,199.35 22,383.82
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:
(2) Provision for bad debts accrued, regain or switch back in the Period
In the Period, 0 Yuan accrued for provision of bad debts; 0 Yuan 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
Arising from related
Unit Nature Amount written off Reasons Procedures
transaction (Y/N)
Explanation on written off:
(4) Top five account receivables collected by arrears party at ending balance
Unit Ending balance Ratio in account Bad debt provision
receivable at accrued
period-end (%)
Beijing Xiangeqing Industrial & Trade 2,320,047.40 92.20% 2,320,047.40
Co., Ltd.
Electricity Authority of Chengde 68,561.35 2.72% 14,106.52
County
承德南江股份有限公司 2016 年半年度财务报告
Inner Mongolia Ajinnai Horse Culture 44,172.00 1.76% 5,000.00
Development Co., Ltd.
Greatwall Group of Chengde County 12,611.00 0.50% 3,277.30
Total 2,445,391.75 97.18% 2,342,431.22
(5) Account receivable de-recognition 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 476,361.30 100.00% 1,105,122.95 100.00%
Total 476,361.30 -- 1,105,122.95 --
Reasons for significant repayment with over one year age without settle:
(2) Top five prepayment collected by objects at ending balance
Unit Ending amount Ratio in Time of Un-settle reasons
prepayment repayment
(%)
Chengde Hongsheng Construction Installation 310,000.00 68.49% Within 1 Before the settlement
Co. Ltd. year period
Foshan Sanshui Fenglv Aluminum Co. Ltd. 46,310.90 10.23% Within 1 Before the settlement
year period
Qinhuangdao Jiuchang Economic and Trade 37,431.50 8.27% Within 1 Before the settlement
Co., Ltd. year period
Beijing Kegao Dabei Farm Feed Company 6,537.13 1.44% Within 1 Before the settlement
year period
Chengde Power Branch of Jibei Electric Power 6,337.76 1.40% Within 1 Before the settlement
Company year period
Total 406,617.29 89.83% --- ---
Other explanation:
Prepayment in the period decreased 628,761.65 Yuan over that of last period with 56.9% declined, mainly due to
the prepayment for goods declined in the Period
4. Other account receivables
(1) Other account receivables by type:
In RMB
Ending balance Opening balance
Type Provision for bad Book
Book balance Book balance Provision for bad debts Book value
debts value
承德南江股份有限公司 2016 年半年度财务报告
Proportio Provision 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 2.85% 100.00% 2.90% 100.00%
3.00 3.00 73.00 .00
for provision of bad
debt on a single basis
Other receivables
accrued for provision 90,161,5 274,716. 89,886,87 88,424, 274,716.0 88,149,302.
94.99% 0.30% 94.90% 0.31%
of bad debt by 86.29 03 0.26 018.54 3 51
portfolio
Other receivables
with minor single
2,046,95 2,046,95 2,046,9 2,046,957
amount but accrued 2.16% 100.00% 2.20% 100.00%
7.70 7.70 57.70 .70
for provision of bad
debt on a single basis
94,917,8 5,030,94 89,886,87 93,180, 5,030,946 88,149,302.
Total 100.00% 5.30% 100.00% 5.40%
16.99 6.73 0.26 249.24 .73 51
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
Non-Taxable Revenue
Authority of Chengde 1,500,000.00 1,500,000.00 100.00% Uncollectible
County
Claims obtained from
1,209,273.00 1,209,273.00 100.00% Uncollectible
auction
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 2,982,409.4 39,083.31 5.00%
1-2 years 911,108.61 182,221.72 20.00%
2-3 years 20,000.00 10,000.00 50.00%
Over 3 years 43,411.00 43,411.00 100.00%
Total 3,956,929.01 274,716.03 6.94%
Portfolio recognized:
Other accounts receivable accrued for provision of bad debt by percentage of balance in portfolio:
□ Applicable √ Not-applicable
承德南江股份有限公司 2016 年半年度财务报告
Other accounts receivable accrued for provision of bad debt by other methods in portfolio:
√ Applicable □ Not-applicable
Portfolio Ending balance
Other accounts receivable Provision for bad Provision ratio(%)
debts
Land reserve center of Chengde County 86,025,400.00 --- ---
Office of material reformation for wall in 90,421.00 --- ---
the County
Chengde Petroleum Branch 88,836.28 --- ---
Total 86204657.28 --- ---
(2) Bad debt provision accrual collected or switch back
There is 0 Yuan provision for bad debts accrued in the Period; and 0 Yuan regains or switch back in the Period.
Including the followed significant amount:
In RMB
Unit Regains or switch back Way of regain
(3) Other receivables actually written-off during the reporting period
In RMB
Item Amount written-off
Major other account receivables written-off:
In RMB
Arising from related
Name Nature Amount written-off Reasons Procedures
transaction (Y/N)
Explanation on 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 86,025,400.00 86,025,400.00
Auction creditor's rights 1,209,273.00 1,209,273.00
Margin 1,550,000.00 1,550,000.00
Other 6,133,143.99 4,395,576.24
Total 94,917,816.99 93,180,249.24
(5) Top five other account receivables collected by arrears party at ending balance
In RMB
Proportion in total Ending balance of
Unit Nature Ending balance Aging
other receivables bad debt provision
Land Reserve Center Final payment for Within 1 year, 1-2
86,025,400.00 92.06%
of Chengde County land acquisition years
Non-Taxable
Margin for land
Revenue Authority 1,500,000.00 1-2 years 1.61% 1,500,000.00
bidding
of Chengde County
Auction creditor's Auction creditor's
1,209,273.00 Over 3 years 1.29% 1,209,273.00
rights rights
承德南江股份有限公司 2016 年半年度财务报告
Zhou Haihong Other 642,689.25 3-4 years 0.68% 642,689.25
Bao Degang Other 356,838.00 3-4 years 0.38% 356,838.00
Total -- 89,734,200.25 -- 94.54% 3,708,800.25
(6) Account receivables related to government subsidies
In RMB
Time and amount
Unit Item Ending balance Ending age
collected and basis
(7) Other receivable for termination of confirmation due to the transfer of financial assets
(8)The amount of assets and liabilities that are transferred other receivable and continued to
be involved
Other explanation:
Ending balance of other receivables increased 1,737,567.75 Yuan over that of period begin with 1.97% up
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 972,453.83 972,453.83 596,830.85 596,830.85
Goods in process 38,606.33 38,606.33 61,739.48 61,739.48
Stock products 9,638,314.14 133,740.78 9,504,573.36 13,571,110.15 127,945.20 13,443,164.95
Revolving
18,498.40 18,498.40 18,498.40 18,498.40
materials
Consumptive
0.00 0.00 130,431.42 5,795.58 124,635.84
biological assets
Development cost 366,971,468.55 366,971,468.55 432,613,281.99 432,613,281.99
Development
100,948,682.72 100,948,682.72 172,383,223.21 172,383,223.21
products
Total 478,588,023.97 133,740.78 478,454,283.19 619,375,115.50 133,740.78 619,241,374.72
(2) Inventory depreciation reserve
In RMB
Increased in Period Decreased in Period
Item Opening balance Reversing or Ending balance
Accrual Other Other
write-off
Stock products 127,945.20 5,795.58 133,740.78
Consumptive
5,795.58 5,795.58
biological assets
Total 133,740.78 5,795.58 5,795.58 133,740.78
(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:
承德南江股份有限公司 2016 年半年度财务报告
Balance of inventory at period-end decrease 140,787,091.53 Yuan over that of period-begin with 22.74% down.
6. Other current assets
In RMB
Item Ending balance Opening balance
Taxes paid in advance 28,428,183.32 33,761,457.51
Total 28,428,183.32 33,761,457.51
Other explanation:
Balance at period-end decreased 5,333,274.19 Yuan over that of period-begin with 15.80% down.
7. Finance asset available for sales
(1)Finance asset available for sales
In RMB
Ending balance Opening balance
Item
Book balance Impairment loss Book value Book balance Impairment loss Book value
Equity instrument available
25,000,000.00 25,000,000.00
for sales
Measured by cost 25,000,000.00 25,000,000.00
Total 25,000,000.00 25,000,000.00
(2) Finance asset available for sales measured by cost at year-end
In RMB
Classification of
Instrument equity Instrument debt available
financial assets available Total
available for sale for sale
for sale
(3) Financial assets available for sale measured by cost at period-end
In RMB
Book balance Impairment provision Shareholdi
The Cash
At Decrease At Decrease ng ratio in
invested Increase in At Increase in At dividend
period-beg in the period-beg in the invested
company the period period-end the period period-end in Period
in period in period company
Dongguan
Dongfeng
New 25,000,000 25,000,000
2.44%
Energy .00 .00
Technolog
y Co. Ltd
25,000,000 25,000,000
Total --
.00 .00
(4) Changes of impairment in Period:
In RMB
Classification of
Instrument equity Instrument debt available
financial assets available Total
available for sale for sale
for sale
承德南江股份有限公司 2016 年半年度财务报告
(5) Fair value of equity instrument available for sale sharply declined or
other-than-temporary declined at period-end without depreciation reserves accrual:
In RMB
Item of Decline of the
Fair value at Continues falling Impairment Cause of
instrument equity Investment cost fair value relative
period-end time (Month) accrual un-accrual
available for sale to cost
Other explanation
On 10 March 2016, the Company and Dongguan Dongfeng New-Energy Technology Co., Ltd., and its current
shareholder Tibet Dongfeng Investment Co., Ltd, Tibet Fengmao Investment Co., Ltd. and Eagles Men Aeronautic
Science and Technology Group Co., Ltd. entered into a Agreement of Increase in Capital and Share. The Company
increased RMB 25 million with the own funds to Dongguan Dongfeng New-Energy Technology Co., Ltd and
RMB 25 million counted in the registered capital. After capital increased, the 2.44% equity of Dongguan
Dongfeng New-Energy Technology Co., Ltd is held by the Company.
8. Long-term equity investment
In RMB
Changes in Period
Investme
nt Adjustme Impairme
Cash
Additiona gains/loss nt of Provision nt
Invested Opening Other dividend Ending
l Capital es other for provision
company balance equity or profit Other balance
investmen reduction recognize comprehe impairme at ending
changes declare to
t d by nsive nt losses balance
issue
equity income
method
I. Joint venture
II. Associated enterprise
Runhua
RW
(Tianjin)
Water-sav 2,343,974 -12,933.7 2,331,040
ing .43 7 .66
Technolo
gy Co.,
Ltd.
Wuchan
Minfeng
(Tianjin) 4,455,549 4,455,549 4,455,549
Chemical .93 .93 .93
Trade
Co., Ltd.
6,799,524 -12,933.7 6,786,590 4,455,549
Subtotal
.36 7 .59 .93
Total 6,799,524 -12,933.7 6,786,590 4,455,549
承德南江股份有限公司 2016 年半年度财务报告
.36 7 .59 .93
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%. The Company invested RMB 4.41 million with ratio of 49% in registered capital.
9. Fixed assets
(1) Fixed assets
In RMB
Houses and Machinery Transportation
Item Other Total
buildings equipment equipment
I. Original book
value
1.Opening balance 8,095,437.08 1,310,815.43 4,007,079.15 755,832.37 14,169,164.03
2. Increased in
632,136.76 12,271.75 239,155.28 883,563.79
Period
(1) Purchase 632,136.76 12,271.75 239,155.28 883,563.79
(2) Transferred
from construction in
process
(3) Increased by
enterprise
combination
3. Decreased in
726.35 726.35
Period
(1) Disposal or
726.35 726.35
scrap
4.Ending balance 8,095,437.08 1,942,952.19 4,019,350.90 994,261.30 15,052,001.47
II. Accumulated
depreciation
1.Opening balance 1,845,759.60 1,181,130.82 1,755,387.42 481,187.02 5,263,464.86
2.Increased in
153,813.30 53,247.01 150,699.44 44,986.57 402,746.32
Period
(1) Accrual 153,813.30 53,247.01 150,699.44 44,986.57 402,746.32
3.Decreased in
Period
承德南江股份有限公司 2016 年半年度财务报告
(1) Disposal or
scrap
4.Ending balance 1,999,572.90 1,234,377.83 1,906,086.86 526,173.59 5,666,211.18
III. Depreciation
reserves
1.Opening balance
2.Increased in
Period
(1) Accrual
3.Decreased in
Period
(1) Disposal or
scrap
4.Ending balance
IV. Book value
1. Ending book
6,095,864.18 708,574.36 2,113,264.04 468,087.71 9,385,790.29
value
2. Opening book
6,249,677.48 129,684.61 2,251,691.73 274,645.35 8,905,699.17
value
(2) Temporarily idle fixed assets
In RMB
Cumulative Depreciation
Item Original book value Book value Note
depreciation reserves
(3) Fixed assets acquired by financing lease
In RMB
Item Original book value Cumulative depreciation Depreciation reserves Book value
(4) Fixed assets acquired by operating lease
In RMB
Item Ending book value
(5) Fixed assets without property certificates
In RMB
Item Book value Reasons
The pledge of the assets are released,
Houses and buildings 6,095,864.18
ownership procedures still in process
Other explanation
The buildings are originally the guarantee of the Company’s predecessor Dixian Stock and its
bankrupt subsidiary for the bank loans and have been completely transferred to the Company in
the bankruptcy reorganization in 2009, though Chengde Intermediate People's Court of Hebei
Province has issued the “Notice to assist in enforcement of people’s court” to housing urban and
rural construction bureau of Chengde County and required to assist in enforcement of transferring
承德南江股份有限公司 2016 年半年度财务报告
the ownership of buildings with property right certificates CXFZ No. 000196 and 000108 to the
Company, the transfer of property right cannot proceed because many departments have involved
in it and procedures of transfer procedures are still in the process.
10. Productive biological assets
(1) Measured by cost
√ Applicable □ Not-applicable
In RMB
Item Plantation Livestock Forestry Aquaculture Total
I. original book
value
1.Opening balance 189,663.61 189,663.61
2. Increased in
Period
(1) Outsourcing 29,624.36 29,624.36
(2)
29,624.36 29,624.36
Self-cultivation
3. Decreased in
Period
(1)Disposal -- --
(2) Other
4.Ending balance 219,287.97 219,287.97
II. accumulated
depreciation
1.Opening balance 41,153.85 41,153.85
2. Increased in
60,282.81 60,282.81
Period
(1) Accrual 60,282.81 60,282.81
3. Decreased in
Period
(1)Disposal
(2) Other
4.Ending balance 101,436.66 101,436.66
III. Depreciation
reserves
1.Opening balance
2. Increased in
Period
(1) Accrual
承德南江股份有限公司 2016 年半年度财务报告
3. Decreased in
Period
(1)Disposal
(2) Other
4.Ending balance
IV. Book value
1. Ending book
117,851.31 117,851.31
value
2. Opening book
148,509.76 148,509.76
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 Software Total
technology
I. Original book
value
1.Opening
7,042,791.01 228,000.00 7,270,791.01
balance
2. Increased in
Period
(1) Purchase
(2) Internal
R&D
(3) Increased by
enterprise
combination
3. Decreased in
Period
(1) Disposal
4.Ending balance 7,042,791.0 228,000.00 7,270,791.01
II. Accumulated
amortization
1.Opening
650,280.44 228,000.00 878,280.44
balance
2. Increased in
65,377.98 65,377.98
Period
(1) Accrual 65,377.98 65,377.98
承德南江股份有限公司 2016 年半年度财务报告
3. Decreased in
Period
(1) Disposal
4.Ending balance 715,658.42 228,000.00 943,658.42
III. Depreciation
reserve
1.Opening
balance
2. Increased in
Period
(1) Accrual
3. Decreased in
Period
(1) Disposal
4.Ending balance
IV. Booking value
1. Ending book
6,327,132.59 6,327,132.59
value
2. Beginning
6,392,510.57 6,392,510.57
book value
Intangible assets formulated no by means of internal R&D in balance of total intangible assets at period-end
(2) Land use right without property certificate
In RMB
Item Book value Reasons
Other explanation:
12. Development expenditure
In RMB
Opening Ending
Item Increased in Period Decreased in Period
balance balance
Airship 172,416.18 897,649.74 1,070,065.92
Total 172,416.18 897,649.74 1,070,065.92
Other explanation
13. 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
承德南江股份有限公司 2016 年半年度财务报告
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
Runhua RW 1,809,762.89 1,809,762.89
Total 1,809,762.89 1,809,762.89
Process of impairment testing, parameter and recogniztion method for impairment losses
Other explanation
Runhua RW has deficit in 2014 and 2015 continuously, and did not completed the performance commitment;
goodwill has impairment
14. Long-term unamortized expenses
In RMB
Item Opening balance Increased in Period Amortized in Period Other decrease Ending balance
Office remodeling
202,353.97 318,067.01 94,093.00 426,327.98
costs
Total 202,353.97 318,067.01 94,093.00 426,327.98
Other explanation
15. 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
3,102,581.64 775,645.41 3,102,581.64 775,645.41
depreciation
Total 3,102,581.64 775,645.41 3,102,581.64 775,645.41
(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
775,645.41 775,645.41
assets
承德南江股份有限公司 2016 年半年度财务报告
(4) Details of unrecognized deferred income tax assets
In RMB
Item Ending balance Opening balance
Deductible temporary differences 2,369,994.88 2,369,994.88
Deductible losses 84,661,345.43 79,895,176.78
Total 87,031,340.31 82,265,171.66
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed
year
In RMB
Year Ending amount Opening amount Note
2016 1,707,747.80
2017 12,891,377.63 12,891,377.63
2018
2019 30,576,125.82 30,576,125.82
2020 34,719,925.53 34,719,925.53
2021 6,473,916.45
Total 84,661,345.43 79,895,176.78 --
Other explanation:
16. 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
17. Account payable
(1) Account payable
In RMB
Item Ending balance Opening balance
Account payable for engineering 13,055,030.38 25,947,762.55
Account payable for goods 8,398,787.81 8,813,034.75
Account payable for materials 13,780.00 22,867.00
Account payable for equipment 0.00 80,000.00
Other 73,350.00 149,570.00
Total 21,540,948.19 35,013,234.30
(2) Accounts payable with major amount and aging of over one year
In RMB
Item Ending balance Reasons of un-paid or carry-over
Handan Hanyi Architectural Engineering
400,000.00 Before the accounting period
Co., Ltd.
Chengde Xingcheng Construction 66,058.39 Before the accounting period
承德南江股份有限公司 2016 年半年度财务报告
Installation Engineering Co., Ltd.
Quality experience station for fire products
37,170.00 Before the accounting period
in Hubei
Total 503,228.39 --
Other explanation:
Balance of account payable at period-end decreased 13,472,286.11 Yuan over that of period-begin with 38.48%
down, mainly because the settlement of account payable for engineering and goods.
18. Account received in advance
(1) Account received in advance
In RMB
Item Ending balance Opening balance
Deposit received for house-Huijing Tiandi 372,400,907.26 430,730,271.19
Deposit received for goods 435,000.00 3,955,757.50
Resident heating fees received in advance 179,276.00 1,113,841.30
Other 240,560.66 192,068.58
Total 373,255,743.92 435,991,938.57
(2) Major account received in advance for over one year age
In RMB
Item Ending balance Reasons
(3) Project closed for account without complete in construction from construction contract
at period-end
In RMB
Item Amount
Other explanation:
Ending balance of account received in advance decrease 62,736,194.65 Yuan over that of period-begin with 49.85%
up.
19. Wages payable
(1) Wages payable
In RMB
Item Opening balance Increased in Period Decreased in Period Ending balance
I. Short-term employee
3,737.12 11,816,135.74 11,819,474.64 398.22
benefits
II. Post-employment
benefits - defined 6,192.30 468,504.29 474,696.59
contribution plans
Total 9,929.42 12,284,640.03 12,294,171.23 398.22
(2) Short-term employee benefits
In RMB
Item Opening balance Increased in Period Decreased in Period Ending balance
1.Salary, bonus,
11,342,382.01 11,342,382.01 0.00
allowance and subsidy
3.Social insurance 3,108.90 229,714.41 232,823.31
承德南江股份有限公司 2016 年半年度财务报告
premium
Of which: including:
medical insurance 2,861.50 199,066.54 201,928.04
expenses
Work injury insurance
20,634.87 20,634.87
expenses
Maternity insurance 247.40 10,013.00 10,260.40
4.Housing provident
240,068.00 240,068.00
funds
5.Labor union
expenditures and
628.22 3,971.32 4,201.32 398.22
employee education
expenses
Total 3,737.12 11,816,135.74 11,819,474.64 398.22
(3) Details of defined contribution plans
In RMB
Item Opening balance Increased in Period Decreased in Period Ending balance
1.Basic endowment
5,685.70 436,062.19 441,747.89 0.00
insurance expenses
2.Unemployment
506.60 32,442.10 32,948.70 0.00
insurance expenses
3. Enterprise annuity
0.00
payment
Total 6,192.30 468,504.29 474,696.59
Other explanation:
20. Tax payable
In RMB
Item Ending balance Opening balance
VAT 941,243.37 971.36
Business tax -- 3,663.76
Individual income tax 1,397.55 10,315.24
Urban maintenance and construction tax -- 231.26
Educational surtax -- 137.96
Local educational surtax -- 93.30
Stamp tax 6,512.26 5,930.73
Total 949,153.12 21,343.61
Other explanation:
承德南江股份有限公司 2016 年半年度财务报告
21 .Other account payables
(1) Other account payables by nature
In RMB
Item Ending balance Opening balance
Intercourse funds 12,720,112.00 10,020,000.00
Deposit and margin 1,003,752.95 1,276,413.11
Withhold and remit tax 21,084.16 19,480.82
Other 945,049.29 1,430,207.77
Total 14,689,998.40 12,746,101.70
(2) Other payables with large amount and aging of over one year
In RMB
Item Ending balance Reason for non-repayment or carryover
Other explanation
22. Share capital
In RMB
Increased (decreased) in Period
Opening Shares
New shares Ending balance
balance Bonus shares converted from Other Sub-total
issued
public reserve
Total shares 706,320,000.00 706,320,000.00
Other explanation:
23. Capital reserves
In RMB
Item Opening balance Increased in Period Decreased in Period Ending balance
Capital premium (share
393,998,569.41 3,801,700.00 397,800,269.41
premium)
Other capital reserves 65,873,219.23 65,873,219.23
Total 459,871,788.64 3,801,700.00 463,673,488.64
Other explanation, including changed in Period as well as reasons for changes:
RMB 3,801,700.00 increased in the Period, refers to the performance compensation from largest shareholders
which was reckoned into the stock premium
24. 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:
25. Retained profits
In RMB
Item The Period Last Period
Retained profits at the end of last period before
-890,727,215.25 -949,599,922.37
adjustment
承德南江股份有限公司 2016 年半年度财务报告
Retained profits at the beginning of the period
-890,727,215.25 -949,599,922.37
after adjustment
Add: The net profits belong to owners of patent
1,801,869.94 75,402,588.38
company of this period
Retained profits at the end of the period -888,925,345.31 -874,197,334.00
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.
26. Operating income and operating cost
In RMB
The Period Last Period
Item
Income Cost Income Cost
Main business 191,078,889.32 163,101,369.56 51,615,454.74 52,825,274.96
Other business 335,592.42 81,317.07 761,217.42 431,217.42
Total 191,414,481.74 163,182,686.63 52,376,672.16 53,256,492.38
27 .Business tax and surcharges
In RMB
Item The Period Last Period
Business tax 8,296,366.53 48,025.25
Urban maintenance and construction tax 497,164.44 3,031.84
Educational surtax 497,014.47 3,031.85
Land VAT 3,664,665.11 0.00
Total 12,955,210.55 54,088.94
Other explanation:
Business tax and surcharge increased 12,901,121.61Yuan over that of last period with 23851.68% up, mainly
because sale of Huijing Tiandi carry over increased in the Period
28. Sales expenses
In RMB
Item The Period Last Period
Transport charge 176,729.02 730,843.94
Lump sum 4,483.49 268,860.30
Salary 60,190.00 104,466.00
Repair charge 10,809.02
Advertising fees 71,975.00 96,600.00
Storage fee 1,140.47 9,468.93
承德南江股份有限公司 2016 年半年度财务报告
Other 200.08 97,171.69
Total 314,718.06 1,318,219.88
Other explanation:
The sales expenses in the Period declined RMB 1,003,501.82 over that of last period with 76.13% down, mainly
because the trading business has less expenses from a year earlier
29. Administration expenses
In RMB
Item The Period Last Period
Salary 6,748,266.03 3,048,150.89
Agency fee 1,085,483.77 969,001.87
Tenure tax 590,196.79 798,359.32
Business entertainment 818,553.45 1,020,771.68
Depreciation and amortization 421,693.46 668,247.48
Business-travel expense 812,495.35 743,858.67
Welfare expenses 661,214.54 1,476,587.95
Office allowance 429,394.93 414,409.56
Social insurance fee 526,608.65 473,866.77
Stamp duty 126,417.27 124,738.87
Amortization of low value consumables 219,071.44 37,309.90
Housing fund 168,697.60 131,695.08
Long-term deferred expenses 78,609.04 828,523.23
Repair charge 98,964.60 84,512.90
Material consumption 98,279.84 174,141.09
Union funds 3,971.32 4,237.32
Property tax 20,558.29 8,976.08
Utilities 19,077.73 63,821.63
Other 901,987.20 609,516.53
Total 13,829,541.30 11,680,726.82
Other explanation:
30. Financial expenses
In RMB
Item The Period Last Period
Interest expenses 294,828.29
Less: Interest income 121,643.23 103,671.98
Profit/loss on exchange -4,696.19
Bank handling charges 19,856.39 26,210.64
Total -101,786.84 212,670.76
Other explanation:
Financial expenses decrease 314,457.6 Yuan over that of last period with 147.86% declined, mainly because
interest expenditure decreased in the period
31. Asset impairment loss
In RMB
承德南江股份有限公司 2016 年半年度财务报告
Item The Period Last Period
I. Bad debt loss -400.00
Total -400.00
Other explanation:
32. Investment income
In RMB
Item The Period Last Period
Long-term equity investment income
-12,933.77 37,559.09
calculated on equity method
Total -12,933.77 37,559.09
Other explanation:
33. Non-operating income
In RMB
Amount reckoned into current
Item The Period Last Period
non-recurring gains/losses
Total income from disposal of
103,610,779.62
non-current assets
Income from disposal of
103,610,779.62
intangible assets
Other 69,070.59 465,551.64 69,070.59
Total 69,070.59 104,076,331.26 69,070.59
Government grants reckoned into current gains/losses:
In RMB
Impact on Assets-relate
Distributed current Special d
Item Reasons Nature The Period Last Period
by gains/losses grants (Y/N) /income-relat
(Y/N) ed
Other explanation:
Non-operation revenue decreased RMB 104,007,260.67 over same period of last year with 99.93% declined,
mainly because government land reserves gains more income in last period
34. Non-operating expenditure
In RMB
Amount reckoned into current
Item The Period Last Period
non-recurring gains/losses
Other 339,948.94 3,217,393.57
Total 339,948.94 3,217,393.57
Other explanation:
35. Income tax expense
(1) Statement of income tax expenses
In RMB
Item The Period Last Period
Current income tax 8,991.27 12,929,483.98
承德南江股份有限公司 2016 年半年度财务报告
Total 8,991.27 12,929,483.98
(2) Adjustment on accounting profit and income tax expenses
In RMB
Item 2015
Total profit 950,299.92
Income tax measured by statutory/applicable tax rate 237,574.98
Impact by the deductible losses of the un-recognized previous
228,583.71
deferred income tax
Income tax expenses 8,991.27
Other explanation
Income tax expenses declined RMB 12,920,492.71 over same period of last year with 99.93% declined, mainly
because there was more tax amount for the government land reserves in last period
36. Notes to statement of cash flow
(1) Other cash received in relation to operation activities
In RMB
Item The Period Last Period
Intercourse funds 6,619,861.33 43,150,533.95
Interest income 122,433.28 84,858.23
Other 1,313,516.00 1,248,936.08
Total 8,055,810.61 44,484,328.26
Explanation on other cash received in relation to operation activities
(2) Other cash paid in relation to operation activities
In RMB
Item The Period Last Period
Disbursement costs 10,713,299.72 9,382,361.01
Intercourse funds 3,632,456.94 34,417,207.14
Other 2,656,790.78 2,877,209.13
Total 17,002,547.44 46,676,777.28
Explanation on other cash paid in relation to operation activities
(3) Cash received from other investment activities
In RMB
Item The Period Last Period
Explanation on cash received from other investment activities
(4) Cash paid related with other investment activities
In RMB
Item The Period Last Period
Explanation on cash paid related with other investment activities
承德南江股份有限公司 2016 年半年度财务报告
(5) Cash received from other financing activities
In RMB
Item The Period Last Period
Margin of the housing mortgage loan are
753,264.46
received
Total 753,264.46
Explanation on cash received from financing activities
(6) Cash paid related with other financing activities
In RMB
Item The Period Last Period
Margin of the housing mortgage loan are
1,626,700.00 1,553,600.00
paid
Total 1,626,700.00 1,553,600.00
Change of monetary fund restricted
37. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
Supplementary information The Period Last Period
1. Net profit adjusted to cash flow of
-- --
operation activities:
Net profit 941,308.65 73,821,886.18
Depreciation of fixed assets, consumption of
oil assets and depreciation of productive 464,795.45 955,157.65
biology assets
Amortization of intangible assets 65,377.98 160,213.00
Amortization of long-term deferred expenses 94,093.00 1,164,572.96
Loss from disposal of fixed assets, intangible
assets and other long-term assets(gain is 74,717.58 -103,610,779.62
listed with “-”)
Financial expenses (gain is listed with “-”) 277,316.74
Investment losses(gain is listed with “-”) 12,933.77 -37,559.09
Decrease of inventory (increase is listed with
140,787,091.53 157,446,699.53
“-”)
Decrease of operating receivable accounts
-1,126,508.10 15,933,240.56
(increase is listed with “-”)
Increase of operating payable accounts
-64,458,825.89 -113,754,717.28
(decrease is listed with “-”)
承德南江股份有限公司 2016 年半年度财务报告
Net cash flow arising from operating
76,854,983.97 32,356,030.63
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 133,530,264.90 66,199,806.53
Less: Balance of cash equivalent at
84,543,677.45 35,582,359.90
year-begin
Net increase of cash and cash equivalents 48,986,587.45 30,617,446.63
(2) Net cash payment for the acquisition of a subsidiary of the current period
In RMB
Amount
Including: --
Including: --
Including: --
Other explanation:
(3) Net cash received from the disposal of subsidiaries
In RMB
Amount
Including: --
Including: --
Including: --
Other explanation:
(4) Constitution of cash and cash equivalent
In RMB
Item Ending balance Opening balance
Ⅰ. Cash 133,530,264.90 84,543,677.45
Including: stock cash 190,109.74 70,613.10
Bank deposit available for payment at any
133,340,155.16 84,473,064.35
time
Ⅲ. Balance of cash and cash equivalent at
133,530,264.90 84,543,677.45
period-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. Assets with ownership or right-to-use restricted
In RMB
Item Ending book value Restriction reasons
Monetary fund 4,604,967.93 Margin for housing mortgage
Total 4,604,967.93 --
Other explanation:
40. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
承德南江股份有限公司 2016 年半年度财务报告
Balance of foreign currency at
Item Exchange rate convert RMB concert at Period-end
period-end
Moentary fund -- -- 5,162,025.02
Including: USD 778,419.24 6.6312 5,161,853.66
HKD 200.49 0.8547 171.36
Other explanation:
(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
41. Other
VIII. Changes of consolidation range
1. Enterprise merger not under the same control
(1) Enterprise merger not under the same control
In RMB
Revenue of Net profit of
the acquiree the acquiree
Time for Cost for Ratio of Basis of the
Way to Purchasing from from
Acquiree equity equity equity purchasing
obtained date purchasing purchasing
obtained obtained obtained date
date to date to
period-end period-end
Other explanation:
(2) Combined cost and goodwill
In RMB
Combine cost
Explanation on determination method for fair value of combine cost, contingent consideration and its changes:
Reason of major goodwill resulted:
Other explanation:
(3) Acquiree's identifiable assets and liabilities on purchasing date
In RMB
Fair value on purchasing date Book value on purchasing date
Determination method for fair value of the identifiable assets and liabilities:
Contingent liability of the acquiree taken during enterprise merger:
Other explanation:
(4) Gains/losses arising from re-calculation on fair value for the equity held before
purchasing date
Whether the enterprise combine through multiple transaction by steps or not and obtained controlling rights during
the reporting period
□Y √N
承德南江股份有限公司 2016 年半年度财务报告
(5)Explanation on the combination consideration, which is unable to confirm rationally on
purchasing date or combination date or on the fair value of identifiable assets and liabilities
for the acquiree
(6) Other explanation
2. Enterprise merger under the same control
(1) Enterprise merger under the same control
In RMB
Revenue of Net profit of
the combined the combined Revenue of Net profit of
Basis for
Equity ratio Basis of party from party from the combined the combined
Combined merger under Combination
in combination period of period of party during party during
party the same date
combination date combined to combined to comparative comparative
control
combination combination period period
date date
Other explanation:
(2) Combine cost
In RMB
Combine cost
Explanation on contingent consideration and its changes:
Other explanation:
(3) Book value of the combined party's assets and liabilities on combine date
In RMB
Combination date End of last period
Contingent liability of the combined party taken in combination
Other explanation:
3. Counter purchase
Transaction information, basis of counter purchase, whether the assets and liability of the listed company
constitute a business and its basis, determination of combined cost, the amount and calculation that adjusted while
in treatment of equity transaction
4. Subsidiary disposal
Whether there is a single disposal of the investment in subsidiaries that is the loss of control
□ Yes √ No
Whether there is disposal of the investment in subsidiaries through multiple transactions step by step and loss of
control in the current period
□ Yes √ No
5. Other reasons for consolidation range changed
Reasons for changed on consolidation range (such as new subsidiary established, subsidiary liquidated etc.)And
relevant information:
6. Other
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Subsidiary Main operation Registered place Business nature Share-holding ratio Acquired way
承德南江股份有限公司 2016 年半年度财务报告
place Directly Indirectly
Enterprise merger
Nanjing 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
Hangzhou Stealth
Hangzhou Hangzhou 90.00% Establishment
Dongfeng *4 technology
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 shareholder, who holds 7.03 million Yuan equity of the Runhua RW (representing
23.43 percent 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 as
dividend rights and assignment right ) under the name of Lan Chunhong with the equity ratio
holding 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
承德南江股份有限公司 2016 年半年度财务报告
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:
Basis on determining to be a agent or consignor:
Other explanation:
*1 Chengde Rongyida Real Estate Development Co., Ltd (“Rongyida” for short) 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 Rongyida. 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)
*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.
承德南江股份有限公司 2016 年半年度财务报告
*4 Hangzhou Dongfeng was jointly invested by Nanjiang Company and Eagles Men Aeronautic
Science and Technology Group Co., Ltd. On 13 Oct. 2015 with register capital amounting to 100
million Yuan, paid-up capital was 50 million Yuan, among which, Nanjiang Company contributes
45 million Yuan, a 90% of the total capital while Eagles invested 5 million Yuan, a 10% in total
capital.
*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. 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
RW Development 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
Hangzhou Dongfeng 10.00% -61,398.89 4,938,421.11
Morsh Technology 10.00% -325.54 4,807,495.37
承德南江股份有限公司 2016 年半年度财务报告
Runhua RW 70.00% -798,836.86 8,148,114.29
Explanation on share-holding ratio of minority 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 shareholder, who holds 7.03 million Yuan equity
of the Runhua RW (representing 23.43 percent 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 as
dividend rights and assignment right ) under the name of Lan Chunhong with the equity ratio holding are totally
entrusted to Nanjiang Company for execution, and Nanjiang Company holds 53.43 percent voting rights in Runhua
RW.
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
Hangzho
u 47,549,9 2,264,28 49,814,2 430,040. 430,040. 49,725,9 352,289. 50,078,2 80,000.0 80,000.0
Dongfen 66.35 5.59 51.94 88 88 10.99 01 00.00 0 0
g
Morsh
48,859,1 48,859,1 784,228. 784,228. 48,862,4 48,862,4 784,228. 784,228.
Technolo
81.75 81.75 00 00 37.12 37.12 00 00
gy
Runhua 12,451,3 7,591,12 20,042,4 8,402,27 8,402,27 17,962,5 7,608,43 25,570,9 12,789,6 12,789,6
RW 16.97 5.81 42.78 9.51 9.51 29.56 0.42 59.98 01.19 01.19
In RMB
The period 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
Hangzhou
103,805.92 -613,988.94 -613,988.94 121,239.88
Dongfeng
Morsh
-3,255.37 -3,255.37 -3,255.37 -68,581.86 -68,581.86 -4,051.86
Technology
48,812,080.2
Runhua RW 9,397,196.11 -1,141,195.52 -1,141,195.52 -1,664,979.77 -2,248,348.58 -2,248,348.58 -2,654,667.38
9
Other explanation:
承德南江股份有限公司 2016 年半年度财务报告
(4) Significant restrictions on the use of enterprise group assets and pay off debts of the
enterprise group
(5) Financial or other supporting offer to structuring body included in consolidate statement
scope
Other explanation:
2. Transaction that has owners equity shares changed in subsidiary but still with controlling
rights
(1) Explanation on changes in owner's equity in subsidiaries
(2) Impact on minority interest and owner's equity attributable to parent company from
transaction
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 investment for
Name Registered place Business nature
place Directly Indirectly joint venture and
cooperative
enterprise
Development,
Runhua RW transfer and
(Tianjin) promotion service
Water-saving Tianjin City Tianjin City of the 31.75% Equity method
Technology Co., water-saving
Ltd. technology for
agriculture
Wuchan Minfeng
(Tianjin) International
Tianjin City Tianjin City 49.00% Equity method
Chemical Trade trading
Co., Ltd.
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/the period Opening balance/last period
Other explanation
(3) Main financial information of the important affiliated business
In RMB
Ending balance/ the period Opening balance/ last period
承德南江股份有限公司 2016 年半年度财务报告
Other explanation
(4) Financial summary for non-important Joint venture and affiliate enterprise
In RMB
Ending balance/ the period Opening balance/ last period
Joint venture: -- --
Total on below item by shareholding ratio -- --
Affiliated enterprise: -- --
Total on below item by shareholding ratio -- --
Other explanation
(5) Major limitation on capital transfer ability to the Company from joint venture or
affiliates
(6) Excess loss occurred in joint venture or affiliates
In RMB
Losses un-determined in the
Cumulated previous losses Cumulated losses
Name Period(net profit share in the
determined un-determined at period-end
Period)
Other explanation
(7) Unconfirmed commitment with joint venture investment concerned
(8) Intangible liability with joint venture or affiliates investment concerned
4. Major conduct joint operation
Shareholding ratio/quota enjoy
Joint operation Main operation site Register place Business
Directly Indirectly
Explanation on shareholding ratio or quota enjoy in joint operation different from voting rights:
If the joint operation was the independent body, basis of classification of joint operation:
Other explanation
5. Structured body excluding in consolidate financial statement
Explanation on structured entity that out of the consolidate financial statement:
On 10 March 2016, the Company and Dongguan Dongfeng New-Energy Technology Co., Ltd., and its current
shareholder Tibet Dongfeng Investment Co., Ltd, Tibet Fengmao Investment Co., Ltd. and Eagles Men Aeronautic
Science and Technology Group Co., Ltd. entered into a Agreement of Increase in Capital and Share. The Company
increased RMB 25 million with the own funds to Dongguan Dongfeng New-Energy Technology Co., Ltd and
RMB 25 million counted in the registered capital. After capital increased, the 2.44% equity of Dongguan
Dongfeng New-Energy Technology Co., Ltd is held by the Company.
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
承德南江股份有限公司 2016 年半年度财务报告
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: Mr. Wang Dong
Other explanation:
2. Subsidiary of the Enterprise
Found more in Note.
3. Cooperative enterprise and joint venture
Found more in Note.
Other cooperative enterprise and joint venture that have related transaction with the Company in the Period or
occurred in pervious period:
Name Relationship
Runhua RW (Tianjin) Water-saving Technology Co., Ltd. Joint venture
Wuchan Minfeng (Tianjin) Chemical Trade 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
Related party Content The period Amount approved Last period
transaction limit
Goods sold/labor service providing
In RMB
Related party Content The period Last period
Explanation on goods purchasing, labor service providing and receiving
(2) Related trusteeship management/contract & entrust management/ outsourcing
Trusteeship management/contract:
In RMB
Income
Client/contract-ou Commissioned
Assets type Start date Expire date Pricing basis recognized in the
t party party/contractor
period
Explanation
Entrust management/ outsourcing:
In RMB
Expenses
Client/contract-ou Commissioned
Assets type Start date Expire date Pricing basis recognized in the
t party party/contractor
period
Explanation
承德南江股份有限公司 2016 年半年度财务报告
(3) Related leasing
As a lessor for the Company:
In RMB
Lease income recognized in the Lease income recognized in last
Lessee Assets type
Period Period
As a lessee for the Company:
In RMB
Rental fee recognized in the Rental fee recognized in last
Lessor Assets type
Period Period
Explanation on related lease
(4) Related guarantee
The Company acts 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) Related party’s assets transfer and debt reorganization
In RMB
Related party Content The period Last period
(7) Remuneration of key management personnel
In RMB
Item The period Last period
Remuneration of key management
898,000.00 736,100.00
personnel
(8) Other related transaction
6. Account receivable/payable from/to related party
(1) Item receivables
In RMB
Ending balance Opening balance
Item Related party
Book balance Bad debt provision Book balance Bad debt provision
(2) Item payable
In RMB
Item Related party Ending book balance Opening book balance
承德南江股份有限公司 2016 年半年度财务报告
7. Commitment of related party
8. Other
XI. Share-based payment
1. Share-based payment
□ Applicable √ Not applicable
2. Share-based payment settled by equity
□ Applicable √ Not applicable
3. Share-based payment settled by cash
□ Applicable √ Not applicable
4. Modification 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
Up to 30 June 2016, balance of guarantee offer to the mortgage loan for owner of commercial house purchased
was119.33 million Yuan.
(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 date
1. Important non adjustment matters
In RMB
Impact on financial status and Reasons of fails to estimate the
Item Content
operation results impact
2. Profit distribution
In RMB
3. Sales return
4. Other events after balance sheet date
XIV. Other important events
1. Previous accounting errors collection
(1) Retrospective restatement
In RMB
Items impact during vary
Content Treatment procedure Accumulated impact
comparative period
(2) Prospective application
Content Approval procedure Reasons
承德南江股份有限公司 2016 年半年度财务报告
2. Debt restructuring
3. Assets replacement
(1) Non-monetary assets
(2) Other assets
4. Pension plan
5. Discontinuing operation
In RMB
Profit of
discontinuing
operation
Item Revenue Expenses Total profit Income tax Net profit
attributable to
owners of parent
company
Other explanation
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 segment, or unable to disclose total assets and liability of the
segment, explain reasons
(4) Other explanation
7. Major transaction and events makes influence on investor’s decision
8. Other
On 4 July 2016, wholly-owned subsidiary Nanjiang Investment entered into an equity transfer agreement with
Ningbo Morsh Technology Co., Ltd., the RMB 5 million equity (presenting 10% of the registered capital) of
Chengde Morsh Technology Co., Ltd., held by Ningbo Morsh Technology Co., Ltd. are transferred to Nanjiang
Investment; in line with the latest audited net assets, the transfer price are determined as RMB 4.8 million by
negotiation by two parties. After transferred, no equity of Chengde Morsh are held by Ningbo Morsh Technology,
and Chengde Morsh is the wholly-owned sub-subsidiary of the Company
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
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:
承德南江股份有限公司 2016 年半年度财务报告
□ 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:
(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
(5) Other account receivable derecognition due to financial assets transfer
(6) Assets and liabilities resulted by other account receivable transfer and continues
involvement
Other explanation:
2. Other accounts receivable
(1) Other accounts receivable
In RMB
Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Type Book
Proportio Accrual Proportio Accrual Book value
Amount Amount value Amount Amount
n ratio n ratio
Other receivables
accrued for provision 18,465,8 194,127. 18,271,68 14,087, 194,127.2 13,893,565.
99.62% 1.14% 99.51% 1.38%
of bad debt by 07.35 22 0.13 692.95 2 73
portfolio
Other receivables
with minor single
70,000.0 70,000.0 70,000.
amount but accrued 0.38% 100.00% 0.49% 70,000.00 100.00%
0 0 00
for provision of bad
debt on a single basis
18,535,8 264,127. 18,271,68 14,157, 264,127.2 13,893,565.
Total 1.00% 1.42% 100.00% 1.87%
07.35 22 0.13 692.95 2 73
Other receivables with large single amount and accrued for provision of bad debt on a single basis at period-end:
□ Applicable √ Not-applicable
承德南江股份有限公司 2016 年半年度财务报告
Other account 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 one year
Subtotal within one year 2,920,763.44 135,939.76 5.00%
1- 2 years 290,937.28 58,187.46 20.00%
Total 3,211,700.72 194,127.22 6.04%
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
Portfolio Ending balance
Other account receivable Provision for bad debts Provision ratio(%)
Ecological Agriculture 9,689,193.22 --- ---
Land Reserve Center of Chengde 3,678,200.00 --- ---
County Final payment for land
acquisition
Huijing property 1,597,514.19 --- ---
Morsh Technology 284,228.00 --- ---
Nanjiang Asia 4,971.22 --- ---
Total 15,254,106.63 --- ---
Among the portfolio, bad debt provision accrual by other method amounting to RMB 0.00, mainly take the low
risks of uncollectable for expectation into account
(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 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:
承德南江股份有限公司 2016 年半年度财务报告
(4) Other account receivables category by nature of money
In RMB
Nature of money Ending book balance Opening book balance
Intercourse funds 11,575,906.63 8,301,151.68
Land purchase 3,678,200.00 3,678,200.00
Other 3,281,700.72 2178341.27
Total 18,535,807.35 14,157,692.95
(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
Nanjing Ecological
Intercourse funds 9,689,193.22 Within one year 56.78%
Agriculture
Land Reserve Center Final payment for
3,678,200.00 1-2 years 21.55%
of Chengde County land acquisition
Huijing property Intercourse funds 1,597,514.19 Within one year 9.36%
Morsh Technology
Intercourse funds 284,228.00 Within one year 5.18%
Company
Hongsheng
Construction Intercourse funds 92,200.00 Within one year 1.67%
Company
Total -- 16,132,779.81 -- 94.53%
(6) Account receivable with government grand involved
In RMB
Time and amount
Name Government grand Ending balance Ending age
collected and basis
(7) Other account receivable de-recognition 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 Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Investment for
202,284,836.37 4,585,185.00 197,699,651.37 202,284,836.37 202,284,836.37
subsidiary
Total 202,284,836.37 4,585,185.00 197,699,651.37 202,284,836.37 202,284,836.37
(1) Investment for subsidiary
In RMB
Depreciation Ending balance of
Increased in Decreased in
Invested company Opening balance Ending balance reserves accrual depreciation
Period Period
in the Period reserves
承德南江股份有限公司 2016 年半年度财务报告
Nanjing Real
53,114,299.73 53,114,299.73
Estate
Nanjiang
90,000,000.00 90,000,000.00
Investment
Runhua RW 9,170,370.00 9,170,370.00 4,585,185.00 4,585,185.00
Nanjiang Asia 5,000,166.64 5,000,166.64
Hangzhou
45,000,000.00 45,000,000.00
Dongfeng
Total 202,284,836.37 202,284,836.37 4,585,185.00 4,585,185.00
(2) Investment for joint venture and associated enterprise
In RMB
Changes in Period
Investme Cash Ending
Other
nt dividend balance
Unit of Additiona comprehe Depreciat
Opening Negative gains/loss Other or profit Ending of
investmen l nsive ion
balance investmen es equity announce Other balance depreciati
t investmen income reserves
t recognize changes d to on
t adjustmen accrual
d by distribute reserves
t
equity d
I. Joint venture
II. Associated enterprise
(3) Other explanation
4. Operation income and operation cost
In RMB
The Period Last Period
Item
Income Cost Income Cost
Main business 179,229,459.06 150,397,967.36
Other business 911,933.83 890,358.48 431,217.42 431,217.42
Total 180,141,392.89 151,288,325.84 431,217.42 431,217.42
Other explanation:
5. Investment gains
In RMB
Item The Period Last Period
6. Other
XVI. Supplementary information
1. Details of current non-recurring profits and losses
√ Applicable □ Not-applicable
In RMB
Item Amount Remark
Other non-operating income and expense
-270,878.35
other than the abovementioned ones
承德南江股份有限公司 2016 年半年度财务报告
Total -270,878.35 --
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 (Yuan/share)
(Yuan/share)
Net profits belong to common stock
0.51% 0.003 0.003
stockholders of the Company
Net profits belong to common stock
stockholders of the Company after
0.59% 0.003 0.003
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
(3) Explanation on data differences under the accounting standards in and out of China; as
for the differences adjustment audited by foreign auditing institute, listed name of the
institute
4. Other
