Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
GUANGDONG JADIETE HOLDINGS GROUP COMPANY LIMITED
INTERIM REPORT 2018
2018-037
August 2018
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Guangdong Jadiete Holdings Group Company
Limited (hereinafter referred to as the “Company”) hereby guarantee the factuality, accuracy
and completeness of the contents of this Report and its summary, and shall be jointly and
severally liable for any misrepresentations, misleading statements or material omissions
therein.
Ding Lihong, the Company’s legal representative, Chen Jincai, the Company’s Chief
Financial Officer (CFO), and Zeng Zhihua, head of the Company’s financial department
(equivalent to financial manager) hereby guarantee that the Financial Statements carried in
this Report are factual, accurate and complete.
Except for the following directors, all the other directors attended in person the Board
meeting for the review of this Report and its summary.
Reason for not Proxy entrusted to
Name Office title
attending in person attend the meeting
Chen Honghai Director For reason of work Ding Lihong
Any plans for the future or other forward-looking statements mentioned in this Report and its
summary shall NOT be considered as absolute promises of the Company to investors.
Therefore, investors are reminded to exercise caution when making investment decisions.
Investors are kindly reminded to pay attention to “X Risks Facing the Company and
Countermeasures” under “Part IV Operating Performance Discussion and Analysis” herein.
The Company has no interim dividend plan, either in the form of cash or stock.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Table of Contents
Part I Important Notes, Table of Contents and Definitions ........................................................... 2
Part II Corporate Information and Key Financial Information ................................................... 5
Part III Business Summary ............................................................................................................... 8
Part IV Operating Performance Discussion and Analysis ........................................................... 11
Part V Significant Events ................................................................................................................ 19
Part VI Share Changes and Shareholder Information ................................................................. 30
Part VII Preferred Shares ............................................................................................................... 35
Part VIII Directors, Supervisors and Senior Management.......................................................... 36
Part IX Corporate Bonds ................................................................................................................ 38
Part X Financial Statements ........................................................................................................... 39
Part XI Documents Available for Reference ................................................................................ 158
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Definitions
Term Definition
Guangdong Jadiete Holdings Group Company Limited and its consolidated
The “Company”, “JHG” or “we”
subsidiaries, except where the context otherwise requires
CSRC The China Securities Regulatory Commission
SZSE, the stock exchange Shenzhen Stock Exchange
Expressed in the Chinese currency of Renminbi, expressed in tens of thousands
RMB, RMB’0,000
of Renminbi
The “Reporting Period” or “Current Period” The period from 1 January 2018 to 30 June 2018
Shenghengchang Huifu Shenzhen Shenghengchang Huifu Industrial Co., Ltd.
Risheng Chuangyuan Shenzhen Risheng Chuangyuan Asset Management Co., Ltd.
Chinese Gold Nobility Shenzhen Chinese Gold Nobility Jewelry Co., Ltd.
Yunpeng Technology Shanghai Yunpeng Network Technology Co., Ltd.
Tianrui Trading Tianrui (HK) Trading Co., Ltd.
Shenguorong Financing Guarantee Shenzhen Shenguorong Financing Guarantee Co., Ltd.
Lianhua Huiren Shenzhen Lianhua Huiren Industrial Co., Ltd.
Future Growing Business Fund Shenzhen Future Growing Business Fund (Limited Partnership)
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name JHG-B Stock code 200168
Stock exchange for stock
Shenzhen Stock Exchange
listing
Company name in Chinese 广东舜喆（集团）股份有限公司
Abbr. (if any) 舜喆
Company name in English (if
GUANGDONG JADIETE HOLDINGS GROUP COMPANY LIMITED
any)
Abbr. (if any) JHG
Legal representative Ding Lihong
II Contact Information
Board Secretary Securities Representative
Name Xu Wei Chen Feifei
9Q of No. 990 of Yiben E-commerce 9Q of No. 990 of Yiben E-commerce
Address
Building, Xili, Nanshan District, Shenzhen Building, Xili, Nanshan District, Shenzhen
Tel. 0755-82250045 0755-82250045
Fax 0755-82251182 0755-82251182
Email address xw@200168.com xw@200168.com
III Other Information
1. Contact Information of the Company
Indicate by tick mark whether any change occurred to the registered address, office address and their zip codes, website address and
email address of the Company in the Reporting Period.
□ Applicable √ Not applicable
No change occurred to the said information in the Reporting Period, which can be found in the 2017 Annual Report.
2. Media for Information Disclosure and Place where this Report is Kept
Indicate by tick mark whether any change occurred to the information disclosure media and the place for keeping the Company’s
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
periodic reports in the Reporting Period.
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by the CSRC for disclosing the
Company’s periodic reports and the place for keeping such reports did not change in the Reporting Period. The said information can
be found in the 2017 Annual Report.
IV Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
H1 2018 H1 2017 Change (%)
Operating revenue (RMB) 94,049,651.75 190,460,084.85 -50.62%
Net profit attributable to the listed
-5,004,199.91 -7,997,104.78 -37.42%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before exceptional -6,591,658.84 -3,280,270.04 100.95%
items (RMB)
Net cash generated from/used in operating
-1,205,691.43 3,132,874.45 -138.49%
activities (RMB)
Basic earnings per share (RMB/share) -0.016 -0.025 -36.00%
Diluted earnings per share (RMB/share) -0.016 -0.025 -36.00%
Weighted average return on equity (%) -1.43% -2.20% 0.77%
30 June 2018 31 December 2017 Change (%)
Total assets (RMB) 541,997,469.73 723,587,997.04 -25.10%
Equity attributable to the listed company’s
347,487,457.89 352,491,657.80 -1.42%
shareholders (RMB)
V Accounting Data Differences under China’s Accounting Standards for Business Enterprises
(CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting
Standards
1. Net Profit and Equity Differences under CAS and IFRS
□ Applicable √ Not applicable
No such differences for the Reporting Period.
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
2. Net Profit and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No such differences for the Reporting Period.
XI Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item Reporting Period Note
Gain or loss on fair-value changes in trading financial assets and
liabilities & investment income from disposal of trading financial Investment income from the
assets and liabilities and available-for-sale financial assets 536.00 disposal of trading financial
(exclusive of effective portion of hedges that arise in the assets
Company’s ordinary course of business)
Reversed portion of impairment allowance for accounts
2,942,220.19
receivable which are tested individually for impairment
Non-operating income and expense other than above 410,992.85
Less: Income tax effects 764,267.57
Non-controlling interests effects (net of tax) 1,002,022.54
Total 1,587,458.93 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss
Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Part III Business Summary
I Core Business Scope of the Company in Reporting Period
Is the Company subject to any disclosure requirements for special industries?
Yes. Because the Company engages in jewelry, it is subject to the Guideline No. 11 of the Shenzhen Stock Exchange on Information
Disclosure by Industry—for Listed Companies Engaging in Jewelry.
The Company’s core business in the Reporting Period is involved with gold jewelry, operated by its
majority-owned subsidiary, Chinese Gold Nobility. The subsidiary has been selling gold, silver, platinum,
diamond, jade and other jewelry for years.
(I) Macro-economy and industrial development
The macro-economic growth continues to decline. The growth rate of GDP in the second quarter is reduced
to 6.7%, the lowest point of this economic rebound since 2016. It is only higher than the growth rate 6.4% of
the first quarter of 2009, during the financial crisis in the past 10 years. From the three carriages, all are
decelerating. The export growth rate representing external demand is reduced from 17.6% to 12.3%; the
investment growth rate of internal demand is reduced from 7.6% to 5.2%; the consumption growth rate is
reduced from 9.8% to 9% (reduced to 8.8% in July). Both the investment and consumption growth rates are
the lowest over the years. At the same time, the tax growth rate of the first half year of 2018 is 14.4%,
wherein the VAT has a year-on-year growth of 16.6%, the enterprise income tax 12.8%, and the personal
income tax 20.3%, all of which are higher than 10% GDP nominal growth rate.
In the first half of 2018, the per capita disposable income of the country's residents was RMB14,063, actually
increased by 6.6% than the same period of last year, wherein, the per capita disposable income of urban
residents RMB19,770, actually increased by 5.8%, per capita disposable income of rural residents
RMB7,142, actually increased by 6.8%. In the first half of 2018, the per capita consumption expenditure of
the country’s residents was RMB9,609, actually increased by 6.7% than the same period of last year,
wherein, the per capita consumption expenditure of urban residents RMB12,745, actually increased by 4.7%,
per capita consumption expenditure of rural residents RMB5,806, actually increased by 10.1%.
The data of the National Bureau of Statistics indicates that the total retail sales of consumer goods had a
year-on-year growth of 8.8% and 9.3% in July and during January –July, 2018, the jewelry 8.2% and 7.5%.
The latest statistics data issued by the China Gold Association indicates that in the first half of 2018, the
national consumption amount of gold was 541.22 tons, increased by 0.31% than the same period of last year,
wherein, gold jewelry 351.84 tons, year-on-year increased by 6.37%; the gold bar 133.61 tons, year-on-year
decreased by 15.16%, the gold coin 4.10 tons, year-on-year decreased by 18.00%. Gold jewelry consumption
keeps growing mainly because the supply-side reform of gold jewelry industry shows initial results. The
traditional way of depending on low-end expansion and extensive development has turned into a high
value-added, personalized and branded boutique gold jewelry route. At the same time, using “Internet+”
innovative marketing mode and shortening intermediate links also realize gold jewelers’ rapid response to
the demand end. However, the domestic consumption amounts of gold bar and gold coin are reduced by
more than 15%. On the one hand, along with the in-depth of financial deleveraging, people are holding a
wait-and-see attitude toward all kinds of investment and financial management. Holding cash becomes the
first choice of common people; on the other hand, it is the long-term narrow fluctuation of gold prices,
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
especially the strong performance of the US dollar index, which has led investors to lack confidence in the
rise in gold prices.
(II) The Company’s position and competitive edges in the jewelry industry
Chinese Gold Nobility is located in China’s largest jewelry center, Shenzhen. Relying on the “Chinese Gold
Nobility” brand and guided by market needs, it satisfies consumers’ various demand through wholesale and
retail sale on online and offline channels, including its Tmall flagship shop, mobile app, social media
channels, etc. As consumers turn from gold jewelry to mosaic jewelry and diamond and value more things
like the brand, the social status indicated by jewelry and experience, the jewelry industry is seeing increasing
polarization with fiercer competition. Due to relative weakness in capital, brand, personnel, etc., as well as a
relatively low position in the industry, Chinese Gold Nobility is under great pressure in competition.
(III) Performance of the Company’s core business
During the Reporting Period, the Company mostly sold through wholesale, with no company-operated store
sales. For H1 2018, the main business generated operating revenue of RMB92.8427 million with the cost of
sales being RMB92.5850 million, meaning a gross profit margin of 0.28%.
1. Revenue by sales model (unit: RMB)
Sales model Operating revenue Cost of sales Gross profit
margin
Wholesale 92,377,534.55 92,127,278.87 0.27%
Retail sale 465,156.40 457,750.72 1.62%
Total 92,842,690.95 92,585,029.59 0.28%
2. Production and procurement
In the Reporting Period, the majority-owned subsidiary made 1,092 kilograms of jewelry, accounting for
100.00% of its output, mostly through outsourcing. And it purchased 2,110 kilograms of raw materials
mostly in spot transactions at the cost of RMB105.2680 million, accounting for 100.00% of its total
procurement.
II Material Changes in Major Assets
1. Material Changes in Major Assets
Major assets Main reason for material changes
Equity assets No material change
Fixed assets No material change
Intangible assets No material change
Construction in progress No material change
2. Major Assets Overseas
□ Applicable √ Not applicable
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
III Core Competitiveness Analysis
Is the Company subject to any disclosure requirements for special industries?
Yes, because the Company engages in jewelry.
No changes occurred to the Company’s core competitiveness in the Reporting Period.
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Part IV Operating Performance Discussion and Analysis
I Overview
For H1 2018, the Company recorded operating revenue of RMB94.0497 million, down 50.62% from
RMB190.4601 million a year ago; an operating profit of RMB-4.1503 million, a 43.45% increase in loss
compared to RMB-2.8933 million of H1 2017; and a net profit attributable to the Company as the parent of
RMB-5.0042 million, decreasing 37.42% in loss from RMB-7.9971 million of H1 2017. These were
primarily resulted from the considerable decreases in Chinese Gold Nobility’s operating revenue and profit
caused by the general economic environment, the increasingly fierce competition across the jewelry industry,
etc.
From the Reporting Period to the disclosure day of this report, the key work completed by the Company is as
follows:
(I) Business, the Company actively boosts business upgrading and business structure adjustment. Gold
jewelry business actively seeks for business upgrading, namely, while maintaining the existing business
model, steadily seeking for extending to the fields related to K gold material, in order to improve the
profitability and anti-risk capacity of business. Whereas the macro-economic growth is declining, the nickel
metal trading business is suspended and the adjustment of e-commerce business under cultivation is being
sought.
(II) Actively boost the solution work of the matters involved in the audit reservation in 2017.
1. The equity related to Shenzhen Shenguorong Financing Guarantee Co., Ltd. (hereinafter referred to as
“Shenguorong Financing Guarantee”):
After the Company negotiated for many times, the equity transfer intention letter was signed with the actual
controller of Shenguorong Financing Guarantee ZENG Bo, which mainly includes: (1) ZENG Bo or the
subject appointed by ZENG Bo plans to acquire 30% equity of Shenguorong Financing Guarantee held by
the Company by cash. (2) The transaction benchmark day is Dec. 31, 2017. (3) Negotiate and determine the
transaction price of the target equity based on the business situation on Shenguorong Financing Guarantee’s
closing date. (4) The transferee shall meet the relevant laws and regulations of the financing guarantee
company and shall have the conditions of good reputation and strong economic strength. (5) ZENG Bo or the
subject appointed by ZENG Bo shall sign the official equity acquisition agreement.
After the intention letter was signed, the Company continues to actively boost the equity transfer work of
Shenguorong Financing Guarantee and has conducted many times of discussion and negotiation on the
design of the trading plan, evaluation of the trading object, trading method, payment of trading fund and
other contents. Both parties have basically reached a consensus on principles. The official transfer document
may be signed after partial details are confirmed.
2. Shares related to Shenzhen Future Growing Business Fund (Limited Partnership) (hereinafter referred to
as “Future Growing Business Fund”):
The Company makes a supplementary disclosure of the specific situation of relevant equity acquisition by
Future Growing Business Fund. The Company actively negotiates with the manager of Future Growing
Business Fund, has reached a consensus on the relevant issues of Future Growing Business Fund and has
perfected the relevant procedures. The Company is actively boosting the sales of the shares of Future
Growing Business Fund held by the Company, has communicated with the interested party for many times
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
and basically has reached a consensus. The relevant agreement can be signed after relevant details and
relevant conditions are met.
3. Anti-guarantee clause related to Puning Huafengqiang Trading Co., Ltd. and Puning Lailisheng Trading
Co., Ltd.
(1) The Company continues to focus on the situation of the guaranteed person and anti-guarantee
performance process, regularly collects the financial data or audit report of the latest period of the guaranteed
person, regularly analyzes the property status and debt paying ability, focuses on production and operation,
assets and liabilities, external guarantee, division and merger, change of legal representative and other
situations and sets up relevant financial archives.
(2) The Company has strengthened the collection for relevant funds and obtained certain results. Puning
Huafengqiang Trading Co., Ltd. paid the remaining anti-guarantee fund of RMB 14,850,000 to the Company
on May 16, 2018. The anti-guarantee fund of RMB 17,000,000 that shall be received by the Company from
Puning Huafengqiang Trading Co., Ltd. has been totally received. Puning Lailisheng Trading Co., Ltd. paid
the remaining anti-guarantee fund of RMB 23,250,000 on Aug. 1, 2018. The anti-guarantee fund of RMB
24,000,000 that shall be received by the Company from Puning Lailisheng Trading Co., Ltd. has been totally
received.
4. Funds related to Puning Yanlilai Trading Co., Ltd.:
The trading between the Company and Puning Yanlilai Trading Co., Ltd. has been fulfilled. The relevant
funds have been taken back completely.
(III) Revision on perfecting relevant institutional setting and systems
The Company supplements and optimizes the existing systems based on the actual situation of daily
operation. The 7th Board of Directors’ 18th Meeting convened on Jun. 07, 2018 reviewed and approved the
proposal on revising the relevant systems of the Company. The Company adjusts the management structure
based on its own actual situation, sets up the corresponding risk control department and risk management
committee and forms the corresponding operation mechanism to make up the deficiencies of internal control.
(IV) Strengthen cost control, reduce unnecessary expenditure, compress business scale, adjust personnel
structure and overcome the difficulties together.
The Company is subject to the Guideline No. 11 of the Shenzhen Stock Exchange on Information Disclosure by Industry—for Listed
Companies Engaging in Jewelry.
(I) Online sales
In the Reporting Period, the Company’s online sales took place on third-party sales platforms, with a
turnover of RMB105,184.60 and operating revenue of RMB89,901.37.
(II) Inventories
The Company’s various inventories as of 30 June 2018 are shown in the table below (unit: RMB):
Type Raw materials Products
Balance 7,020,602.31 151,895,962.56
Including: Gold jewelry 6,966,157.53 151,058,678.49
Diamond jewelry 0.00 776,949.52
K-gold jewelry 0.00 60,334.55
Other jewelry 54,444.78 0.00
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
II Analysis of Core Businesses
See “I Overview” above.
Year-on-year changes in key financial data:
Unit: RMB
H1 2018 H1 2017 Change (%) Main reason for change
Operating revenue Affected by the general
economic environment,
94,049,651.75 190,460,084.85 -50.62% the increasingly fierce
competition across the
jewelry industry, etc.
Cost of sales A decline in sales of
majority-owned
93,356,686.67 178,534,654.04 -47.71%
subsidiary Chinese Gold
Nobility
Selling expense 1,129,119.53 1,434,407.39 -21.28%
Administrative expense 6,096,595.06 7,324,503.57 -16.76%
A decline in interest
Finance costs 63,714.32 310,534.11 -79.48%
payments
A decline in profit of
majority-owned
Income tax expense 768,741.42 2,307,032.61 -66.68%
subsidiary Chinese Gold
Nobility
Net cash generated
A rise in cash used in
from/used in operating -1,205,691.43 3,132,874.45 -138.49%
operating activities
activities
Net cash generated
from/used in investing -558,362.37 -120,001,252.72 -99.53% A decline in investments
activities
Net increase in cash and
-1,764,039.74 -116,868,768.94 -98.49% A decline in investments
cash equivalents
A decline in the
Accounts payable 76,046,059.98 206,507,636.62 -63.18%
procurement amount
An adjustment to the
security deposit for
Other payables 41,177,516.07 88,422,479.70 -53.43%
dividend payable to
Tianrui Trading
The transfer of the plant
Fixed assets 40,543,929.42 29,961,223.62 35.32% from investment property
to fixed assets for it was
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
not under lease in the
Current Period
The transfer of the plant
from investment property
Investment property 0.00 15,057,817.47 -100.00% to fixed assets for it was
not under lease in the
Current Period
A rise in such decoration
Long-term prepaid
443,216.29 298,544.88 48.46% expense of subsidiary
expense
Yunpeng Technology
Caused by the production
Payroll payable 1,337,530.57 788,844.58 69.56% and operating activities
in the Current Period
An adjustment to the
security deposit for
Other payables 41,177,516.07 88,422,479.70 -53.43%
dividend payable to
Tianrui Trading
Material changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable √ Not applicable
No such changes in the Reporting Period.
Breakdown of core businesses:
Unit: RMB
YoY change in YoY change in
Operating Gross profit YoY change in
Cost of sales operating revenue gross profit
revenue margin cost of sales (%)
(%) margin (%)
By operating division
Garments 1,206,960.80 771,657.08 36.07% 34.96% 23.61% 5.88%
Gold jewelry 92,842,690.95 92,585,029.59 0.28% -44.71% -41.02% -6.23%
By product category
Garments 1,206,960.80 771,657.08 36.07% 34.96% 23.61% 5.88%
Gold jewelry 92,842,690.95 92,585,029.59 0.28% -44.71% -41.02% -6.23%
By operating segment
Garment sales 1,206,960.80 771,657.08 36.07% 34.96% 23.61% 5.88%
Gold jewelry
92,842,690.95 92,585,029.59 0.28% -44.71% -41.02% -6.23%
sales in Shenzhen
III Analysis of Non-Core Businesses
□ Applicable √ Not applicable
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
IV Analysis of Assets and Liabilities
1. Material Changes in Asset Composition
Unit: RMB
30 June 2018 30 June 2017 Change in
As % of total As % of total percentag Reason for material change
Amount Amount
assets assets e (%)
Monetary assets 1,192,159.64 0.22% 7,018,207.88 1.27% -1.05%
Accounts
23,890,210.76 4.41% 18,387,843.59 3.32% 1.09%
receivable
162,187,727.5
Inventories 29.92% 114,555,062.41 20.67% 9.25%
6
Long-term equity 269,998,221.7
49.82% 270,015,275.93 48.73% 1.09%
investments 1
Fixed assets 40,543,929.42 7.48% 42,702,470.53 7.71% -0.23%
2. Assets and Liabilities at Fair Value
□ Applicable √ Not applicable
3. Restricted Asset Rights as at Period-End
Not applicable
V Investments Made
1. Total Investment Amount
√ Applicable □ Not applicable
Total investment amount of Reporting Total investment amount of same period of
Change (%)
Period (RMB) last year (RMB)
0.00 121,376,785.52 -100.00%
2. Significant Equity Investments Made in Reporting Period
□ Applicable √ Not applicable
3. Significant Non-Equity Investments Ongoing in Reporting Period
□ Applicable √ Not applicable
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Gain/Lo
Accumu
ss on
lated
fair-valu Purchas Gain/los
Initial Beginni fair-valu Sold in
Security Security Security Measure e ed in s in Ending Account Funding
ng e Reporti
investm ment changes Reporti Reporti carrying
type code name carrying changes ng
method in ng ng amount ing title source
ent cost amount charged Period
Reporti Period Period
to
ng
equity
Period
Transact
Domesti Fair Self-ow
8,292.0 6,316.0 6,852.0 ional
c/Foreig 603398 BBYZ value -960.00 -960.00 0.00 536.00 0.00 ned
0 0 0 financia
n stock method funds
l assets
8,292.0 6,316.0 6,852.0
Total -- -960.00 -960.00 0.00 536.00 0.00 -- --
0 0 0
Disclosure date of
announcement on Board’s
consent for securities
investment
Disclosure date of
announcement on
shareholders’ meeting’s
consent for securities
investment (if any)
(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
2. Sale of Major Equity Investments
□ Applicable √ Not applicable
VII Major Majority- and Minority-Owned Subsidiaries
√ Applicable □ Not applicable
Major majority-owned subsidiaries and those minority-owned subsidiaries with an over 10% effect on the Company’s net profit:
Unit: RMB
Relationship Core Registered Operating Operating
Name with the business Total assets Net assets Net profit
capital revenue profit
Company
Shenzhen
Chinese Gold
33,333,300.0 77,852,801.2 92,842,690.9 1,694,962.
Nobility Subsidiary Gold jewelry Gold jewelry 1,013,206.27
0 7 5 57
Jewelry Co.,
Ltd.
Shenzhen
Investment Investment
Rieys 50,000,000.0 29,748,239.2 -417,599.2
Subsidiary and import & and import & 5,003.08 -3,412.84
Industrial 0 4 1
export trade export trade
Co., Ltd.
Subsidiaries obtained or disposed in the Reporting Period:
□ Applicable √ Not applicable
Information about the major majority- and minority-owned subsidiaries:
For details, see 1. Equities among Subsidiaries in IX. Equities in Other Entities in Part X herein.
VIII Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
IX Performance Forecast for January-September 2018
Warning of forecast negative net profit for January-September 2018 or considerable YoY change therein, as well as the reasons:
□ Applicable √ Not applicable
X Risks Facing the Company and Countermeasures
(I) The risk of great uncertainty in future operating earnings
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
During the reporting period, the Company realized net income attributable to the Company (as the parent
company) of RMB-5.0042 million with this figure before non-recurring gains and losses being RMB-6.5917
million. Due to the downturn in macroeconomic growth, the Company's various businesses are facing greater
competitive pressures in the current market capitalization mode. If there is no significant improvement in the
main business in the second half year of 2018, there will be great uncertainty in future operating earnings.
The Company is actively promoting business upgrades and adjusting the business structure.
(II) There is a risk of impairment of goodwill in the current year.
At the beginning and end values of the goodwill is RMB2.3958 million in the reporting period, and the
goodwill is formed by the 2015 premium capital increase of Chinese Gold Nobility. During the reporting
period, the revenue and profit of Chinese Gold Nobility decreased significantly due to the economic situation.
If there is no significant improvement in the business of Chinese Gold Nobility in the second half of the year,
when the Company conducts impairment test on goodwill at the end of the year, there will be a test result
that the recoverable amount of the asset group containing goodwill is less than the book value of the asset
group containing goodwill. Then there is a risk of impairment.
The Company actively promotes business upgrades of Chinese Gold Nobility, in order to improve its
business in the second half of the year.
(III) The risk of “unqualified opinions” issued in the 2017 annual audit report and internal control audit
report
The Asia Pacific (Group) Accounting Firm (Special General Partnership) issued an audit report on the
Company's 2017 audit report, which issued a negative opinion on the Company's 2017 internal control audit
report. The Company has major flaws in internal control. For details of the specific measures, please refer to
"the important issues in the sixth of fifth section on explanation of the Board of Directors on the relevant
situation of the "non-standard audit report" in the previous year.
18
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Part V Significant Events
I Annual and Extraordinary General Meetings Convened during Reporting Period
1. General Meetings Convened during Reporting Period
Investor Date of resolution Index to disclosed
Meeting Type Convened date
participation ratio disclosure resolutions
Resolution on the
2017Annual General
Meeting (2018-030)
2017 Annual General published on
Annual 51.56% 29 June 2018 30 June 2018
Meeting Securities Times ,
Hong Kong Ta Kung
Pao and
http://www.cninfo.co
2. Extraordinary General Meetings Convened at Request of Preferred Shareholders with Resumed Voting
Rights
□ Applicable √ Not applicable
II Interim Dividend Plan
□ Applicable √ Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
III Commitments of the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company Itself and Other Entities Fulfilled in Reporting Period or
Ongoing at Period-End
√ Applicable □ Not applicable
Date of
Commitment Type of Period of
Commitment Contents commitment Fulfillment
maker commitment commitment
making
Commitments made in share reform
Commitments made in acquisition
documents or shareholding alteration
19
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
documents
Will avoid or
reduce the
related
transaction
between it
together with
its related
enterprise and
the company
stock to the
greatest
extent. If the
related
The transaction
Company's with the
largest company
shareholder stock is
Shenzhen inevitable, the
Shenghengcha transaction
ng Huifu must be
Industrial Co., conducted in
Commitments made in time of asset
Ltd., the line with the 21 May 2015 Perpetual In execution
restructuring
second largest principle of
shareholder fair, just and
Shenzhen sound and
Risheng making
Chuangyuan compensation
Asset for equal
Management value, the
Co., Ltd. transaction
price must be
recognized in
line with the
reasonable
price of the
market and
related
transaction
decision
making
procedure
avoiding
voting of
20
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
related
transaction by
the
shareholders'
general
meeting which
stipulated by
Article of
Association of
Guangdong
Rieys Group
Company Ltd.
Excepting the
company
stock, it can
The
not in any
Company's
area, in any
largest
form, engaged
shareholder
in production
Shenzhen
produce or
Shenghengcha
business
ng Huifu
operation may
Industrial Co.,
form
Ltd., the 21 May 2015 Perpetual In execution
competition to
second largest
the company
shareholder
stock and its
Shenzhen
subsidiaries
Risheng
which
Chuangyuan
stipulated by
Asset
the law,
Management
regulations
Co., Ltd.
and
stipulations
from CSRC.
Commitments made in time of IPO or
refinancing
Commitments concerning stock
ownership incentive
Some Some
Within 6
Directors, Directors,
Other commitments made to minority
Supervisors, Supervisors, 9 July 2015 months after Completed
shareholders
and Senior and Senior
stock
Executives Executives
21
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
would resumption
increase
stocks of the
company
when the price
of the stock
was lower
than 4
HKD/share
within 6
months after
the stock
resumption.
Executed in time Yes
Specific reasons for failing to fulfill
commitments on time and plans for N/A
next step
IV Engagement and Disengagement of Independent Auditor
Are the interim financial statements audited?
□Yes √ No
The interim financial statements are unaudited.
V Explanations Given by Board of Directors and Supervisory Committee Regarding
Independent Auditor's “Modified Opinion” for Reporting Period
□ Applicable √ Not applicable
VI Explanations Given by Board of Directors Regarding Independent Auditor's “Modified
Opinion” for Last Year
√ Applicable □ Not applicable
The Asia Pacific (Group) Accounting Firm (Special General Partnership) issued a qualified audit
report on the Company's 2017 financial report. The progress of the matters covered in the
comments is as follows:
I. Matter “The Company's investment in Shenzhen Shenguorong Financing Guarantee Co., Ltd. is
accounted for the equity method, and the carrying value is RMB149,998,221.71. Due to the limited
scope of the audit, we are unable to obtain sufficient and appropriate audit evidence for the book
value of the long-term equity investment. It is also impossible to determine whether it is necessary
to adjust the amount of the impairment provision for the long-term equity investment.”
The Company takes the following measures:
22
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
1. After many rounds of negotiations with the Company, Zeng Bo, the actual controller of Shenzhen
Shenguorong Financing Guarantee Co., Ltd. (hereinafter referred to as “Shenguorong Financing
Guarantee”), signed a letter of intent for equity transfer. The main contents of the letter of intent
include: (1) Zeng Bo or Zeng Bo has specified the entity to acquire a 30% stake in the Shenguorong
Financing Guarantee held by the Company in cash. (2) The transaction base date is 13 December
2017. (3) Negotiate and determine the transaction price of the underlying equity based on the
operation of Shenguorong Financing Guarantee closing date. (4) The transferee shall meet the
relevant laws and regulations of the financing guarantee company and shall have the conditions of
good reputation and strong economic strength. (5) Zeng Bo or the subject specified by Zeng Bo
signs the formal equity acquisition agreement with the Company.
After the signing of the letter of intent, the Company continued to actively promote the work of
Shenguorong Financing Guarantee equity transfer, and conducted many negotiations on the design
of the transaction plan, the valuation of the transaction target, the transaction method, and the
transaction payment. Basically, a consensus has been reached, and the formal transfer document can
be signed after some details confirmed.
2. Considering protecting the Company and the small and medium-sized investors, the actual
controller of the Company promised that if the amount of the 30% equity of the Shenguorong
Financing Guarantee is recovered in the future, and the amount recovered is less than RMB150
million. Within 1 month from the date of completion of the matter, it will be made up with cash.
Before 30 November 2018, if the Company does not sign a formal equity transfer agreement with
the counterparty, the entity specified by the actual controller will sign the corresponding equity
transfer agreement with the Company. Before 31 December 2018, the received transfer amount is
not less than RMB150 million.
II. Matter “The Company’s investment in Shenzhen Future Growing Business Fund (Limited
Partnership) is accounted by the equity method with a book value of RMB120,000,000.00. As the
equity transaction between the investment partnership and the related party of Guangdong Jadiete
Holdings Group Company Limited was made in 2017, for the reporting period, the relevant
announcement information of Guangdong Jadiete Holdings Group Company Limited was not seen,
and the scope of the audit is limited, we are unable to obtain sufficient and appropriate audit
evidence for the book value of the long-term equity investment, and are either unable to determine
whether it is necessary to adjust the amount of the impairment provision for the long-term equity
investment.
The Company takes the following measures:
1. To supplement and disclosure the specific circumstances of Shenzhen Future Industrial
Development Fund Enterprise (Limited Partnership) (hereinafter referred to as “Future Industry
Fund”) to acquire the equity of related parties of the Company.
2. The Company actively negotiated with the manager of Future Industrial Fund, reached a
consensus on the issues related to future industrial funds, and improved relevant procedures.
3. The Company is actively promoting the sale of share of the future industry fund held by the
Company. It has already communicated with the interested parties several times and basically
reached a consensus. After the relevant details and relevant conditions are reached, the relevant
agreement can be signed.
4. The actual controller of the Company, in consideration of the protection of the Company and the
23
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
small and medium-sized investors, promised that if the amount recovered by the Company from the
future industrial fund share is less than RMB120 million, the actual controller shall make up 1
month from the date when this matter occurs. Before 30 November 2018, if the Company did not
recover the investment or sign an agreement to sell the Shenzhen Future Industrial Development
Fund enterprise shares held by the Company, the entity designated by the actual controller signs the
corresponding transfer agreement with the Company. The transfer amount for this share that should
be received before 31 December 2018 is not less than RMB120 million.
III. Matter “The Company respectively provides the building property mortgage guarantees for the
loan made by Puning Huafengqiang Trade Co., Ltd. from ICBC Jieyang Rongcheng Sub-branch
and the loan made by Puning Lailisheng Trade Co., Ltd. from ICBC Jieyang Branch. In accordance
with the counter guarantee agreement between the Company and Puning Huafengqiang Trade Co.,
Ltd. and Puning Lailisheng Trade Co., Ltd., Puning Huafengqiang Trade Co., Ltd. and Puning
Lailisheng Trade Co., Ltd. shall provide counter guarantee for the Company by means of the
borrowed funds. By 31 December 2017, the companies above failed to transfer the borrowed fund
from the bank into Guangdong Jadiete according to the agreement. Due to the limited scope of the
audit, we are unable to obtain sufficient and appropriate audit evidence on the impact of this
estimated liability.”
The Company takes the following measures:
1. The Company continually pays attention to the situation of the guaranteed party and the progress
of performance of the counter guarantee, regularly collects the latest financial information or audit
report of the guaranteed party, regularly analyzes its property status and solvency, concerns about its
production and operation, assets and liabilities, external guarantees and separation, consolidation,
legal representative changes, etc., and establishes relevant financial files.
2. The Company strengthened the collection of relevant funds and achieved a certain effect.
(1) Puning Huafengqiang Trade Co., Ltd. paid the remaining amount for counter guarantee,
RMB14.85 million in total, to the Company on 16 May 2018. The amount for counter guarantee,
RMB17 million the Company should collect from Puning Huafengqiang Trade Co., Ltd. has been
received in full.
(2) Puning Lailisheng Trade Co., Ltd. paid the remaining amount for counter guarantee, RMB23.25
million in total, to the Company on 1 August 2018. The amount for counter guarantee, RMB24
million the Company should collect from Puning Lailisheng Trade Co., Ltd. has been received in
full.
IV. Matter “Among other receivables, as a related party of Guangdong Jadiete, the ending balance
of Puning Yanlilai Trading Co., Ltd. is RMB12 million. To withdraw bad debt provision according
to aging combination, Guangdong Jadiete did not disclose the related transaction in time within
report period.”
The transaction between the Company and Puning Yanlilai Trading Co., Ltd has been implemented,
and relevant payment has been all recovered.
Meanwhile, the Company also takes the following measures, further improving the construction of
internal control:
1. The Company strengthened internal audit and the construction of internal audit departments,
further improved the internal audit process, and strictly required all departments to carry out work
in accordance with the Company's system. The Audit Department carried out special verification of
24
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
the related transactions and relationship of counter guarantee. In order to prevent the recurrence of
transaction control not in place and the lack of control over the progress of major issues, the
Company's audit department and finance department closely monitored and tracked the use of large
amounts of funds of the Company, and effectively supervised the counterparty before, during and
after the event reporting to the board of directors in time.
2. The Company organized and studied the Compilation of Cases of Violation of Laws and
Regulations by Listed Companies, strengthened the study of relevant knowledge of securities laws
and regulations, and raised awareness of compliance with laws and regulations.
3. The Company further improved the relevant institutions through the establishment of the
Investment Management Department and the Risk Control Department, and further strengthened the
implementation and optimization of the existing system through the revision of relevant systems.
The Board of Directors will continue to follow up on unresolved issues, eliminate the impact of the
matters involved in the reservations on the Company as soon as possible, and effectively protect the
interests of investors, especially small and medium investors.
VII Insolvency and Reorganization
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Legal Matters
Material lawsuits or arbitrations:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Other legal matters:
□ Applicable √ Not applicable
IX Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Credit Quality of the Company as well as Its Controlling Shareholder and Actual
Controller
□ Applicable √ Not applicable
25
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for
Employees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XII Major Related-Party Transactions
1. Continuing Related-Party Transactions
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Related-Party Transactions Regarding Purchases or Sales of Assets or Equity Interests
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related-Party Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Credits and Liabilities with Related Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Other Major Related-Party Transactions
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIII Occupation of the Company’s Capital by Controlling Shareholder or Its Related Parties
for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
26
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
XIV Major Contracts and Their Execution
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Major Guarantees
√ Applicable □ Not applicable
(1) Guarantees
Unit: RMB'0,000
Guarantees provided by the Company for external parties (excluding those for subsidiaries)
Disclosure Guarante
Actual
date of Actual e for a
Amount for occurrence date Type of Period of Executed
Guaranteed party relevant guarantee related
guarantee (date of guarantee guarantee or not
announcem amount party or
agreement)
ent not
Puning 11 November
14
2014 to 11
Huafengqiang November 1,700 22 May 2017 1,700 pledge Yes No
November
2014
Trade Co., Ltd. 2019
8 September
Puning Lailisheng 8 8 September 2017 to 8
September 2,400 2,400 pledge No No
Trade Co., Ltd. 2017 September
2017
2022
27
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Total external guarantee line Total actual occurred amount
approved during the Reporting of external guarantee during 4100
Period (A1) the Reporting Period (A2)
Total external guarantee line
Total actual external guarantee
that has been approved at the
balance at the end of the 2,400
end of the Reporting Period
Reporting Period (A4)
(A3)
Guarantees provided by the Company for its subsidiaries
Disclosure Guarante
Actual
date of Actual e for a
Amount for occurrence date Type of Period of Executed
Guaranteed party relevant guarantee related
guarantee (date of guarantee guarantee or not
announcem amount party or
agreement)
ent not
Guarantees provided by the subsidiaries of the Company for subsidiaries
Disclosure Guarante
Actual
date of Actual e for a
Amount for occurrence date Type of Period of Executed
Guaranteed party relevant guarantee related
guarantee (date of guarantee guarantee or not
announcem amount party or
agreement)
ent not
Total guarantee amount provided by the Company (total of the above-mentioned three kinds of guarantees)
Total actual occurred amount
Total guarantee line approved
of guarantee during the
during the Reporting Period 4100
Reporting Period
(A1+B1+C1)
(A2+B2+C2)
Total guarantee line that has Total actual guarantee balance
been approved at the end of the at the end of the Reporting 2,400
Reporting Period (A3+B3+C3) Period (A4+B4+C4)
Proportion of total guarantee amount (A4+B4+C4) to the net
6.91%
assets of the Company
Of which:
Explanation on possible bearing joint responsibility of
N/A
liquidation due to immature guarantee (if any)
Explanation on provision of guarantees for external parties in
N/A
violation of the prescribed procedure (if any)
Explanation on guarantee that adopts complex method
28
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
(2) Illegal Provision of Guarantees for External Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Other Major Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XV Corporate Social Responsibility (CSR)
1. Material Environmental Issues
Is the Company or any of its subsidiaries is identified as a major polluter by the environmental protection authorities?
The Company and its subsidiaries are not the major polluter by the environmental protection authorities.
2. Measures Taken for Targeted Poverty Alleviation
The Company took no such measures during the Reporting Period, nor does it have any such plan for now.
XVI Other Significant Events
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XVII Significant Events of Subsidiaries
□ Applicable √ Not applicable
29
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Part VI Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in Reporting Period (+/-) After
Shares as
Shares as
dividend
dividend
Percentag New converted Percentag
Shares converted Other Subtotal Shares
e (%) issues from e (%)
from
capital
profit
reserves
164,025,0 164,025,0
I. Unlisted tradable shares 51.48% 0 0 0 0 0 51.48%
00 00
164,025,0 164,025,0
1. Founders’ shares 51.48% 0 0 0 0 0 51.48%
00 00
Among which: Shares held
0 0.00% 0 0 0 0 0 0 0.00%
by the state
Shares held by 164,025,0 164,025,0
51.48% 0 0 0 0 0 51.48%
domestic legal person 00 00
Shares held by
0 0.00% 0 0 0 0 0 0 0.00%
overseas legal person
Other 0 0.00% 0 0 0 0 0 0 0.00%
2. Raised shares by legal
0 0.00% 0 0 0 0 0 0 0.00%
person
3. Internal employee
0 0.00% 0 0 0 0 0 0 0.00%
shares
4. Preferred shares or
0 0.00% 0 0 0 0 0 0 0.00%
other
154,575,0 154,575,0
II. Listed tradable shares 48.52% 0 0 0 0 0 48.52%
00 00
1. RMB-denominated
0 0.00% 0 0 0 0 0 0 0.00%
ordinary shares
2. Domestically listed 154,575,0 154,575,0
48.52% 0 0 0 0 0 48.52%
foreign shares 00 00
3. Overseas listed foreign 0 0.00% 0 0 0 0 0 0 0.00%
30
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
shares
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
318,600,0 318,600,0
III. Total shares 100.00% 0 0 0 0 0 100.00%
00 00
Reasons for the share changes
□ Applicable √ Not applicable
Approval of share changes
□ Applicable √ Not applicable
Transfer of share ownership
□ Applicable √ Not applicable
Effects of share changes on the basic EPS, diluted EPS, net assets per share attributable to common shareholders of the Company and
other financial indexes over the prior year and the prior period
□ Applicable √ Not applicable
Other contents that the Company considers necessary or is required by the securities regulatory authorities to disclose
□ Applicable √ Not applicable
2. Changes in Restricted Shares
□ Applicable √ Not applicable
II Issuance and Listing of Securities
□ Applicable √ Not applicable
III Shareholders and Their Holdings at Period-End
Unit: share
Number of preferred
Number of ordinary shareholders with resumed
11,367 0
shareholders voting rights (if any) (see note
8)
5% or greater ordinary shareholders or top 10 ordinary shareholders
Number Shares in pledge or frozen
Increase Number
of
Name of Nature of Shareholding Ordinar /decreas of listed
unlisted
shareholder shareholder percentage y shares e in ordinary Status Shares
ordinary
Reportin shares
shares
31
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
g Period held held
SHENZHEN Frozen 117,855,000
SHENGHENG
CHANG Domestic
117,855, 117,855,
non-state-owned 36.99% 0
HUIFU 000 000 In pledge 117,855,000
legal person
INDUSTRIAL
CO., LTD.
SHENZHEN In pledge 34,020,000
RISHENG
CHUANGYUA Domestic 34,020,0 34,020,0
non-state-owned 10.68% 0
N ASSET legal person 00 00 Frozen 34,020,000
MANAGEME
NT CO., LTD.
GUOTAI
JUNAN
Foreign legal 25,772,9 -1,290,1 25,772,9
SECURITIES( 8.09%
person 50 53 50
HONGKONG)
LIMITED
SHENZHEN In pledge 12,150,000
LIANHUA
Domestic
12,150,0 12,150,0
HUIREN non-state-owned 3.81% 0
00 00 Frozen 12,150,000
legal person
INDUSTRIAL
CO., LTD.
SHENWAN
HONGYUAN Foreign legal 6,600,34 6,600,34
2.07% 88,700
SECURITIES person 6 6
(HK) LIMITED
Domestic natural 4,282,26 -1,622,0 4,282,26
SU YOUHE 1.34%
person 2 07 2
CHINA
Foreign legal 4,226,60 4,226,60
EVERBRIGHT 1.33% 865,300
person 0 0
SECURITIES
32
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
(HK) LIMITED
FAN Domestic natural 1,843,00 1,843,00
0.58% 54,500
JIONGYANG person 0 0
CHEN Domestic natural 1,349,95 1,349,95
0.42% 194,171
JIANXING person 8 8
WEI GUOBIN
Foreign natural 1,145,81 1,145,81
(NGAI KWOK 0.36% 0
person 6 6
PAN)
Strategic investors or the general
legal person due to the placement of
new shares become the top 10 N/A
ordinary shareholders (if any) (note
3)
Shenzhen Shenghengchang Huifu Industrial Co., Ltd., Shenzhen Risheng Chuangyuan Asset
Explanation on associated
Management Co., Ltd. and Shenzhen Lianhua Huiren Industrial Co., Ltd., which belonged to
relationship among the
action-in-concert promulgated by Measures for the Administration of Disclosure of
above-mentioned shareholders or
Information on the Change of Shareholdings in Listed Companies. The Company did not
explanation on acting-in-concert
know whether there existed related relationship among other shareholders.
Particulars about shares held by top 10 tradable ordinary shareholders
Number of listed tradable ordinary shares held at the Type of shares
Name of shareholder
end of the period Type Shares
GUOTAI JUNAN Domestically
SECURITIES(HONGKONG) 25,772,950 listed foreign 25,772,950
LIMITED stock
SHENWAN HONGYUAN Domestically
6,600,346 listed foreign 6,600,346
SECURITIES (HK) LIMITED stock
Domestically
SU YOUHE 4,282,262 listed foreign 4,282,262
stock
Domestically
CHINA EVERBRIGHT
4,226,600 listed foreign 4,226,600
SECURITIES (HK) LIMITED
stock
Domestically
FAN JIONGYANG 1,843,000 listed foreign 1,843,000
stock
CHEN JIANXING 1,349,958 Domestically 1,349,958
33
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
listed foreign
stock
Domestically
WEI GUOBIN (NGAI KWOK
1,145,816 listed foreign 1,145,816
PAN)
stock
Domestically
QU CHEN 860,000 listed foreign 860,000
stock
Domestically
CHEN JINMING 765,500 listed foreign 765,500
stock
Domestically
HAN LIANG 711,458 listed foreign 711,458
stock
Explanation on associated
relationship or/and persons acting in
concert among the top ten
non-restricted common shareholders
Unknown
and between the top ten
non-restricted common
shareholders and the top ten
common shareholders
Explanation on the top 10
shareholders participating in the
N/A
margin trading business (if any) (see
note 4)
Indicate by tick mark whether any of the top ten common shareholders or the top ten non-restricted common shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
IV. Change of the Controlling Shareholder or the Actual Controller
Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
There was no any change of the controlling shareholder of the Company in the Reporting Period.
Change of the actual controller in the Reporting Period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the Reporting Period.
34
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Part VII Preferred Shares
□ Applicable √ Not applicable
No preferred shares in the Reporting Period.
35
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Part VIII Directors, Supervisors and Senior Management
I Changes in Shareholdings of Directors, Supervisors and Senior Management
√ Applicable □ Not applicable
The number The number
Increase in Decrease of the of the The number of
Beginning this in this Ending restricted restricted the restricted
Incumbent
Name Office title shareholdi Reporting Reporting shareholdi shares shares shares granted at
/former
ng (share) Period Period ng (share) granted at the granted at the the period-end
(share) (share) period-begin current (share)
(share) period (share)
Chairman
Ding
of the Incumbent 0 0 0 0 0 0 0
Lihong
Board
Vice
Chen
Chairman
Hongchen Incumbent 0 0 0 0 0 0 0
of the
g
Board
Chen
Director Incumbent 0 0 0 0 0 0 0
Honghai
Chen
Director Incumbent 0 0 0 0 0 0 0
Dongwei
Pan Independe
Incumbent 0 0 0 0 0 0 0
Xiaochun nt director
Zhuang Independe
Incumbent 0 0 0 0 0 0 0
Weidong nt director
Independe
Liu Yong Incumbent 0 0 0 0 0 0 0
nt director
Chairman
of the
Yan
Supervisor Incumbent 0 0 0 0 0 0 0
Mingfei
y
Committee
Huang
Supervisor Incumbent 0 2,000 0 2,000 0 0 0
Yanfang
Li Ning Supervisor Incumbent 0 8,700 0 8,700 0 0 0
Chen CFO and Incumbent 0 0 0 0 0 0 0
36
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Jincai vice
president
Secretary
of the
Xu Wei Board and Incumbent 5,000 0 0 5,000 0 0 0
vice
president
Total -- -- 5,000 10,700 0 15,700 0 0 0
II Change of Directors, Supervisors and Senior Management
□ Applicable √ Not applicable
There were no changes in directors, supervisors, and executive officers in the Reporting Period. For details, please refer to the 2017
Annual Report.
37
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Part IX Corporate Bonds
Does the Company have any corporate bonds publicly offered on the stock exchange, which were undue before the date of this
Report’s approval or were due but could not be redeemed in full?
No.
38
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Part X Financial Statements
I Independent Auditor’s Report
Is this interim financial report audited by an independent auditor?
□Yes √ No
This interim financial report is unaudited by such an auditor.
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Guangdong Jadiete Holdings Group Company Limited
30 June 2018
Unit: RMB
Item 30 June 2018 31 December 2017
Current assets:
Monetary assets 1,192,159.64 2,956,199.38
Settlement reserve
Interbank loans granted
Financial assets at fair value through
6,316.00
profit or loss
Derivative financial assets
Notes receivable
Accounts receivable 23,890,210.76 153,954,425.28
Prepayments 2,520,536.01 2,436,902.27
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Interest receivable
Dividends receivable
Other receivables 2,055,749.16 51,173,077.48
Financial assets purchased under
resale agreements
Inventories 162,187,727.56 161,350,742.00
39
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Assets classified as held for sale
Current portion of non-current assets
Other current assets 24,258,479.69 23,930,553.25
Total current assets 216,104,862.82 395,808,215.66
Non-current assets:
Loans and advances to customers
Available-for-sale financial assets
Held-to-maturity investments
Long-term receivables
Long-term equity investments 269,998,221.71 269,998,221.71
Investment property 15,057,817.47
Fixed assets 40,543,929.42 29,961,223.62
Construction in progress
Engineering materials
Proceeds from disposal of fixed
assets
Productive living assets
Oil and gas assets
Intangible assets 8,939,525.00 5,742,427.70
R&D expense
Goodwill 2,395,820.87 2,395,820.87
Long-term prepaid expense 443,216.29 298,544.88
Deferred income tax assets 3,571,893.62 4,325,725.13
Other non-current assets
Total non-current assets 325,892,606.91 327,779,781.38
Total assets 541,997,469.73 723,587,997.04
Current liabilities:
Short-term borrowings
Borrowings from central bank
Customer deposits and deposits from
banks and other financial institutions
Interbank loans obtained
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities
40
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Notes payable
Accounts payable 76,046,059.98 206,507,636.62
Advances from customers 11,209,141.53 11,433,013.53
Financial assets sold under
repurchase agreements
Handling charges and commissions
payable
Payroll payable 1,337,530.57 788,844.58
Taxes payable 23,617,067.14 23,317,798.05
Interest payable
Dividends payable
Other payables 41,177,516.07 88,422,479.70
Reinsurance payables
Insurance contract reserve
Payables for acting trading of
securities
Payables for underwriting of
securities
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 153,387,315.29 330,469,772.48
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Specific payables
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
41
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Total liabilities 153,387,315.29 330,469,772.48
Owners’ equity:
Share capital 318,600,000.00 318,600,000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 52,303,274.80 52,303,274.80
Less: Treasury shares
Other comprehensive income
Specific reserve
Surplus reserves 86,036,260.20 86,036,260.20
General reserve
Retained earnings -109,452,077.11 -104,447,877.20
Total equity attributable to owners of
347,487,457.89 352,491,657.80
the Company as the parent
Non-controlling interests 41,122,696.55 40,626,566.76
Total owners’ equity 388,610,154.44 393,118,224.56
Total liabilities and owners’ equity 541,997,469.73 723,587,997.04
Legal representative: Ding Lihong Chief of the accounting work: Chen Jincai Chief of the accounting organ: Zeng Zhihua
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 June 2018 31 December 2017
Current assets:
Monetary assets 224,627.82 166,675.93
Financial assets at fair value through
profit or loss
Derivative financial assets
Notes receivable
Accounts receivable
Prepayments
Interest receivable
Dividends receivable
Other receivables 20,206,834.33 66,228,472.94
42
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Inventories
Assets classified as held for sale
Current portion of non-current assets
Other current assets
Total current assets 20,431,462.15 66,395,148.87
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term receivables
Long-term equity investments 349,998,229.97 349,998,229.97
Investment property 15,057,817.47
Fixed assets 38,787,104.93 28,175,564.88
Construction in progress
Engineering materials
Proceeds from disposal of fixed
assets
Productive living assets
Oil and gas assets
Intangible assets 8,939,525.00 5,742,427.70
R&D expense
Goodwill
Long-term prepaid expense
Deferred income tax assets 2,591,594.52 2,683,594.52
Other non-current assets
Total non-current assets 400,316,454.42 401,657,634.54
Total assets 420,747,916.57 468,052,783.41
Current liabilities:
Short-term borrowings
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities
Notes payable
Accounts payable 19,442.64 19,442.64
Advances from customers 171,253.66 171,253.66
Payroll payable 925,842.49 459,301.04
43
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Taxes payable 16,239,432.61 15,857,461.62
Interest payable
Dividends payable
Other payables 13,340,743.41 56,827,110.62
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 30,696,714.81 73,334,569.58
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Specific payables
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 30,696,714.81 73,334,569.58
Owners’ equity:
Share capital 318,600,000.00 318,600,000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 52,129,496.58 52,129,496.58
Less: Treasury shares
Other comprehensive income
Specific reserve
Surplus reserves 86,036,260.20 86,036,260.20
Retained earnings -66,714,555.02 -62,047,542.95
44
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Total owners’ equity 390,051,201.76 394,718,213.83
Total liabilities and owners’ equity 420,747,916.57 468,052,783.41
3. Consolidated Income Statement
Unit: RMB
Item H1 2018 H1 2017
1. Revenue 94,049,651.75 190,460,084.85
Including: Operating revenue 94,049,651.75 190,460,084.85
Interest income
Premium income
Handling charge and commission
income
2. Operating costs and expenses 98,200,509.30 187,846,722.05
Including: Cost of sales 93,356,686.67 178,534,654.04
Interest expense
Handling charge and commission
expense
Surrenders
Net claims paid
Net amount provided as insurance
contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surtaxes 496,613.91 654,183.56
Selling expense 1,129,119.53 1,434,407.39
Administrative expense 6,096,595.06 7,324,503.57
Finance costs 63,714.32 310,534.11
Asset impairment loss -2,942,220.19 -411,560.62
Add: Gain on changes in fair value (“-”
0.00 -5,539,925.21
for loss)
Investment income (“-” for loss) 536.00 33,294.77
Including: Share of profit or loss of
joint ventures and associates
Foreign exchange gain (“-” for loss)
Asset disposal income (“-” for loss)
Other income
45
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
3. Operating profit (“-” for loss) -4,150,321.55 -2,893,267.64
Add: Non-operating income 600,000.00 0.33
Less: Non-operating expense 189,007.15 2,404.16
4. Profit before taxation (“-” for loss) -3,739,328.70 -2,895,671.47
Less: Income tax expense 768,741.42 2,307,032.61
5. Net profit (“-” for net loss) -4,508,070.12 -5,202,704.08
5.1 Net profit from continuing
operations (“-” for net loss)
5.2 Net profit from discontinued
operations (“-” for net loss)
Net profit attributable to owners of the
-5,004,199.91 -7,997,104.78
Company as the parent
Net profit attributable to
496,129.79 2,794,400.70
non-controlling interests
6. Other comprehensive income, net of
tax
Attributable to owners of the Company
as the parent
6.1 Items that will not be
reclassified to profit or loss
6.1.1 Changes in net liabilities or
assets caused by remeasurements on
defined benefit pension schemes
6.1.2 Share of other
comprehensive income of investees that
will not be reclassified to profit or loss
under equity method
6.2 Items that may subsequently be
reclassified to profit or loss
6.2.1 Share of other
comprehensive income of investees that
will be reclassified to profit or loss under
equity method
6.2.2 Gain/Loss on changes in fair
value of available-for-sale financial
assets
6.2.3 Gain/Loss arising from
reclassification of held-to-maturity
investments to available-for-sale financial
assets
6.2.4 Effective gain/loss on cash
flow hedges
46
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
6.2.5 Differences arising from
translation of foreign
currency-denominated financial
statements
6.2.6 Other
Attributable to non-controlling
interests
7. Total comprehensive income -4,508,070.12 -5,202,704.08
Attributable to owners of the Company
-5,004,199.91 -7,997,104.78
as the parent
Attributable to non-controlling
496,129.79 2,794,400.70
interests
8. Earnings per share
8.1 Basic earnings per share -0.016 -0.025
8.2 Diluted earnings per share -0.016 -0.025
Where business combinations under common control occurred in the Current Period, the net profit achieved by the acquirees before
the combinations was RMBXXX, with the amount for the same period of last year being RMBXXX.
Legal representative: Ding Lihong Chief of the accounting work: Chen Jincai Chief of the accounting organ: Zeng Zhihua
4. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2018 H1 2017
1. Operating revenue 0.00 637,064.14
Less: Cost of sales 0.00 166,356.27
Taxes and surtaxes 414,000.00 418,155.62
Selling expense
Administrative expense 4,495,612.33 5,868,665.93
Finance costs 33,208.37 536,679.17
Asset impairment loss -368,000.00 0.00
Add: Gain on changes in fair value
(“-” for loss)
Investment income (“-” for loss) 17,054.22
Including: Share of profit or loss
of joint ventures and associates
Asset disposal income (“-” for
loss)
Other income
47
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
2. Operating profit (“-” for loss) -4,574,820.70 -6,335,738.63
Add: Non-operating income 0.00 0.00
Less: Non-operating expense 191.37
3. Profit before taxation (“-” for loss) -4,575,012.07 -6,335,738.63
Less: Income tax expense 92,000.00 0.00
4. Net profit (“-” for net loss) -4,667,012.07 -6,335,738.63
4.1 Net profit from continuing
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net of
tax
5.1 Items that will not be reclassified
to profit or loss
5.1.1 Changes in net liabilities or
assets caused by remeasurements on
defined benefit pension schemes
5.1.2 Share of other
comprehensive income of investees that
will not be reclassified into profit or
loss under equity method
5.2 Items that may subsequently be
reclassified to profit or loss
5.2.1 Share of other
comprehensive income of investees that
will be reclassified into profit or loss
under equity method
5.2.2 Gain/Loss on changes in fair
value of available-for-sale financial
assets
5.2.3 Gain/Loss arising from
reclassification of held-to-maturity
investments to available-for-sale
financial assets
5.2.4 Effective gain/loss on cash
flow hedges
5.2.5 Differences arising from
translation of foreign
currency-denominated financial
statements
5.2.6 Other
48
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
6. Total comprehensive income -4,667,012.07 -6,335,738.63
7. Earnings per share
7.1 Basic earnings per share -0.015 -0.020
7.2 Diluted earnings per share -0.015 -0.020
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2018 H1 2017
1. Cash flows from operating activities:
Proceeds from sale of commodities
242,538,551.98 279,104,141.77
and rendering of services
Net increase in customer deposits and
deposits from banks and other financial
institutions
Net increase in loans from central
bank
Net increase in loans from other
financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Net increase in proceeds from
disposal of financial assets at fair value
through profit or loss
Interest, handling charges and
commissions received
Net increase in interbank loans
obtained
Net increase in proceeds from
repurchase transactions
Tax rebates 2,173.89
Cash generated from other operating
32,140,506.72 35,298,621.21
activities
Subtotal of cash generated from
274,681,232.59 314,402,762.98
operating activities
Payments for commodities and
239,773,853.88 280,323,737.91
services
Net increase in loans and advances to
49
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
customers
Net increase in deposits in central
bank and in interbank loans granted
Payments for claims on original
insurance contracts
Interest, handling charges and
commissions paid
Policy dividends paid
Cash paid to and for employees 3,430,108.55 2,049,087.43
Taxes paid 520,780.47 3,962,251.90
Cash used in other operating
32,162,181.12 24,934,811.29
activities
Subtotal of cash used in operating
275,886,924.02 311,269,888.53
activities
Net cash generated from/used in
-1,205,691.43 3,132,874.45
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 6,852.00 1,326,057.76
Investment income 50,187.43
Net proceeds from disposal of fixed
assets, intangible assets and other
long-lived assets
Net proceeds from disposal of
subsidiaries or other business units
Cash generated from other investing
activities
Subtotal of cash generated from
6,852.00 1,376,245.19
investing activities
Payments for acquisition of fixed
assets, intangible assets and other 565,214.37
long-lived assets
Payments for investments 121,377,497.91
Net increase in pledged loans granted
Net payments for acquisition of
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
565,214.37 121,377,497.91
activities
Net cash generated from/used in
-558,362.37 -120,001,252.72
investing activities
50
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
3. Cash flows from financing activities:
Capital contributions received
Including: Capital contributions by
non-controlling interests to subsidiaries
Increase in borrowings obtained
Net proceeds from issuance of bonds
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities
Repayment of borrowings
Payments for interest and dividends
Including: Dividends paid by
subsidiaries to non-controlling interests
Cash used in other financing
activities
Subtotal of cash used in financing
activities
Net cash generated from/used in
financing activities
4. Effect of foreign exchange rate
14.06 -390.67
changes on cash and cash equivalents
5. Net increase in cash and cash
-1,764,039.74 -116,868,768.94
equivalents
Add: Cash and cash equivalents,
2,956,199.38 123,886,976.82
beginning of the period
6. Cash and cash equivalents, end of the
1,192,159.64 7,018,207.88
period
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2018 H1 2017
1. Cash flows from operating activities:
Proceeds from sale of commodities
and rendering of services
Tax rebates
Cash generated from other operating
29,815,585.86 36,632,375.31
activities
Subtotal of cash generated from
29,815,585.86 36,632,375.31
operating activities
51
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Payments for commodities and
services
Cash paid to and for employees 487,587.87 846,506.12
Taxes paid 39,194.45 27,707.62
Cash used in other operating
29,230,851.65 28,198,951.18
activities
Subtotal of cash used in operating
29,757,633.97 29,073,164.92
activities
Net cash generated from/used in
57,951.89 7,559,210.39
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment
Investment income
Net proceeds from disposal of fixed
assets, intangible assets and other
long-lived assets
Net proceeds from disposal of
subsidiaries or other business units
Cash generated from other investing
activities
Subtotal of cash generated from
investing activities
Payments for acquisition of fixed
assets, intangible assets and other
long-lived assets
Payments for investments 120,000,000.00
Net payments for acquisition of
5,000,000.00
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
125,000,000.00
activities
Net cash generated from/used in
0.00 -125,000,000.00
investing activities
3. Cash flows from financing activities:
Capital contributions received
Increase in borrowings obtained
Net proceeds from issuance of bonds
Cash generated from other financing
activities
Subtotal of cash generated from
52
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
financing activities
Repayment of borrowings
Payments for interest and dividends
Cash used in other financing
activities
Sub-total of cash used in financing
activities
Net cash generated from/used in
financing activities
4. Effect of foreign exchange rate
changes on cash and cash equivalents
5. Net increase in cash and cash
57,951.89 -117,440,789.61
equivalents
Add: Cash and cash equivalents,
166,675.93 119,117,878.02
beginning of the period
6. Cash and cash equivalents, end of the
224,627.82 1,677,088.41
period
7. Consolidated Statements of Changes in Owners’ Equity
H1 2018
Unit: RMB
H1 2018
Equity attributable to owners of the Company as the parent
Other equity Non-co
Other Retaine Total
Item instruments Less: ntrollin
Share Capital compre Specific Surplus General d owners’
Prefer Perpet Treasur g
capital reserves hensive reserve reserves reserve earning equity
red ual Other y shares interests
income s
shares bonds
318,60 -104,44
1. Balances as of 52,303, 86,036, 40,626, 393,118
0,000. 7,877.2
end of prior year 274.80 260.20 566.76 ,224.56
00 0
Add: Adjustments
for changed
accounting
policies
Adjustments for
corrections of
previous errors
Adjustments for
business
combinations
53
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
under common
control
Other
adjustments
2. Balances as of 318,60 -104,44
52,303, 86,036, 40,626, 393,118
beginning of the 0,000. 7,877.2
274.80 260.20 566.76 ,224.56
year 00 0
3. Increase/
decrease in the -5,004,1 496,129 -4,508,0
period (“-” for 99.91 .79 70.12
decrease)
3.1 Total
-5,004,1 496,129 -4,508,0
comprehensive
99.91 .79 70.12
income
3.2 Capital
increased and
reduced by owners
3.2.1
Ordinary shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Share-based
payments included
in owners’ equity
3.2.4 Other
3.3 Profit
distribution
3.3.1
Appropriation to
surplus reserves
3.3.2
Appropriation to
general reserve
3.3.3
Appropriation to
owners (or
shareholders)
3.3.4 Other
54
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
3.4
Carryforwards
within owners’
equity
3.4.1 Increase
in capital (or share
capital) from
capital reserves
3.4.2 Increase
in capital (or share
capital) from
surplus reserves
3.4.3 Surplus
reserves used to
make up losses
3.4.4 Other
3.5 Specific
reserve
3.5.1
Withdrawn for the
period
3.5.2 Used
during the period
3.6 Other
318,60 -109,45
4. Balances as of 52,303, 86,036, 41,122, 388,610
0,000. 2,077.1
end of the period 274.80 260.20 696.55 ,154.44
00 1
H1 2017
Unit: RMB
H1 2017
Equity attributable to owners of the Company as the parent
Non-co
Other equity
Other ntrollin Total
Item instruments Less: Retaine
Share Capital compre Specific Surplus General g owners’
Prefer Perpet Treasur d
capital reserves hensive reserve reserves reserve interest equity
red ual Other y shares earnings
income s
shares bonds
318,60
1. Balances as of 52,129, 86,036, -90,095, 37,940, 404,610
0,000.
end of prior year 496.58 260.20 403.00 417.64 ,771.42
00
Add: Adjustments
for changed
55
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
accounting
policies
Adjustments for
corrections of
previous errors
Adjustments for
business
combinations
under common
control
Other
adjustments
2. Balances as of 318,60
52,129, 86,036, -90,095, 37,940, 404,610
beginning of the 0,000.
496.58 260.20 403.00 417.64 ,771.42
year 00
3. Increase/
decrease in the 173,778 -14,352, 2,686,1 -11,492,
period (“-” for .22 474.20 49.12 546.86
decrease)
3.1 Total
-14,352, 2,519,1 -11,833,
comprehensive
474.20 85.74 288.46
income
3.2 Capital
173,778 166,963 340,741
increased and
.22 .38 .60
reduced by owners
3.2.1
Ordinary shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Share-based
payments included
in owners’ equity
173,778 166,963
3.2.4 Other
.22 .38
3.3 Profit
distribution
3.3.1
Appropriation to
56
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
surplus reserves
3.3.2
Appropriation to
general reserve
3.3.3
Appropriation to
owners (or
shareholders)
3.3.4 Other
3.4
Carryforwards
within owners’
equity
3.4.1 Increase
in capital (or share
capital) from
capital reserves
3.4.2 Increase
in capital (or share
capital) from
surplus reserves
3.4.3 Surplus
reserves used to
make up losses
3.4.4 Other
3.5 Specific
reserve
3.5.1
Withdrawn for the
period
3.5.2 Used
during the period
3.6 Other
318,60 -104,44
4. Balances as of 52,303, 86,036, 40,626, 393,118
0,000. 7,877.2
end of the period 274.80 260.20 566.76 ,224.56
00 0
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2018
Unit: RMB
Item H1 2018
57
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Other equity instruments Other
Less: Retaine Total
Share Capital comprehe Specific Surplus
Preferre Perpetu Treasury d owners’
capital Other reserves nsive reserve reserves
d shares al bonds shares earnings equity
income
1. Balances as of 318,600, 52,129,49 86,036,26 -62,047, 394,718,2
end of prior year 000.00 6.58 0.20 542.95 13.83
Add: Adjustments
for changed
accounting
policies
Adjustments for
corrections of
previous errors
Other
adjustments
2. Balances as of
318,600, 52,129,49 86,036,26 -62,047, 394,718,2
beginning of the
000.00 6.58 0.20 542.95 13.83
year
3. Increase/
decrease in the -4,667,0 -4,667,01
period (“-” for 12.07 2.07
decrease)
3.1 Total
-4,667,0 -4,667,01
comprehensive
12.07 2.07
income
3.2 Capital
increased and
reduced by owners
3.2.1
Ordinary shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Share-based
payments included
in owners’ equity
3.2.4 Other
3.3 Profit
distribution
58
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
3.3.1
Appropriation to
surplus reserves
3.3.2
Appropriation to
owners (or
shareholders)
3.3.3 Other
3.4
Carryforwards
within owners’
equity
3.4.1 Increase
in capital (or share
capital) from
capital reserves
3.4.2 Increase
in capital (or share
capital) from
surplus reserves
3.4.3 Surplus
reserves used to
make up losses
3.4.4 Other
3.5 Specific
reserve
3.5.1
Withdrawn for the
period
3.5.2 Used
during the period
3.6 Other
4. Balances as of 318,600, 52,129,49 86,036,26 -66,714, 390,051,2
end of the period 000.00 6.58 0.20 555.02 01.76
H1 2017
Unit: RMB
H1 2017
Other equity instruments Other
Less: Retaine Total
Item Share Capital comprehe Specific Surplus
Preferre Perpetu Treasury d owners’
capital Other reserves nsive reserve reserves
d shares al bonds shares earnings equity
income
1. Balances as of 318,600, 52,129,49 86,036,26 -51,833, 404,932,2
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
end of prior year 000.00 6.58 0.20 550.50 06.28
Add: Adjustments
for changed
accounting
policies
Adjustments for
corrections of
previous errors
Other
adjustments
2. Balances as of
318,600, 52,129,49 86,036,26 -51,833, 404,932,2
beginning of the
000.00 6.58 0.20 550.50 06.28
year
3. Increase/
decrease in the -10,213, -10,213,9
period (“-” for 992.45 92.45
decrease)
3.1 Total
-10,213, -10,213,9
comprehensive
992.45 92.45
income
3.2 Capital
increased and
reduced by owners
3.2.1
Ordinary shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Share-based
payments included
in owners’ equity
3.2.4 Other
3.3 Profit
distribution
3.3.1
Appropriation to
surplus reserves
3.3.2
Appropriation to
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
owners (or
shareholders)
3.3.3 Other
3.4
Carryforwards
within owners’
equity
3.4.1 Increase
in capital (or share
capital) from
capital reserves
3.4.2 Increase
in capital (or share
capital) from
surplus reserves
3.4.3 Surplus
reserves used to
make up losses
3.4.4 Other
3.5 Specific
reserve
3.5.1
Withdrawn for the
period
3.5.2 Used
during the period
3.6 Other
4. Balances as of 318,600, 52,129,49 86,036,26 -62,047, 394,718,2
end of the period 000.00 6.58 0.20 542.95 13.83
III. Company Profile
1. The registration place, the organization method and the headquarters address of the Company
Guangdong Jadiete Holdings Group Company Limited (original name: Guangdong Rieys Group
Company Ltd, hereinafter referred to as ‘the Company’) was a limited liability company registered
in Guangdong Province and had been approved by the Y-H-B [1997] No. 580 document of People’s
Government of Guangdong Province on 17 November 1997, which established by five enterprises
including Puning Haicheng Industrial Co., Ltd. (this company changed its name to Shenzhen
Shenghengchang Industrial Co., Ltd. after relocating in Shenzhen; in 2007 this company was
renamed as Guangzhou Shenghengchang Investment Co., Ltd.; in 2008 this company was renamed
as Guangzhou Shenghengchang Trade and Development Co., Ltd.; on 28 January 2010 this
company was renamed as Puning Shenghengchang Trade Development Co., Ltd.; on 26 July 2013,
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
this company was renamed as Shenzhen Shenghengchang Huifu Industrial Co., Ltd. as relocation),
an original Sino-foreign cooperated enterprise of Hongxing Weaving Garment Co., Ltd. Under
approval of Guangdong Province Administration for Industry and Commerce, the Company
registered with the registration number of the license of the business corporation of:
914452002311318335. The Share B, which was the HK common stock as well as the domestically
listed foreign share issued by the Company, had listed on the SZSE. The registration place of the
Company: Meixin Industrial Park, Junbu Town, Puning, Guangdong Province, of which the
Company as the parent was the Shenzhen Shenghengchang Huifu Industrial Co., Ltd. and the
ultimate actual controller of the Group was Chen Hongcheng.
The Company used to be the Puning Hongxing Weaving Garment Co., Ltd., which had reorganized
as a limited liability company based on the former company on 17 November 1997.
The original registration capital of the Company was of RMB80,000,000.00 with the total amount
of the share capital of 80,000,000 shares. And the face value of the shares of the Company was of
RMB1 per share. In March 1999, with the approval of the Shareholders’ General Meeting, the
Company declared a Bonus Issue of 3.5 shares per 10 shares based on the total number of shares
accrued in the register as at 31 December 1998 (80 million shares), making the registered capital
increased to 108,000,000 shares. The Company issued 60,000,000 shares of foreign invested stock
domestically listed (“Stock B”) for foreign investors on 17 October 2000, and issued 9,000,000
shares of Stock B for exercise of over-allotment options during the period from 27 October 2000 to
22 November 2000 in accordance with approval of ZJFXZ (2000) No. 133 issued by China
Securities Regulatory Commission on 29 September 2000. The registered capital of the Company
increased to RMB177,000,000 after issuance of Stock B, which was divided into 177,000,000
shares of RMB1.00 each. The registered capital of the Company increased to 318,600,000 after
years of bonus distribution and transfer increase in paid-in capital, which was divided into
318,600,000 shares of RMB1.00 each.
As at 30 June 2018, the Company’s total share capital was 318,600,000 shares, including
164,025,000 non-tradable legal shares (representing 51.48% of total shares and 154,575,000
domestic listed foreign shares (stock B) (representing 48.52% of total shares).
2. Operating scope
The operating scope of the Company: executes the self-management and agent of the import and
export business of other goods and techniques except for the national organization unified joint
venture export commodities and the national approved corporation operation export commodities;
executes the processing imported materials operation, “three-processing and one compensation”,
counter trade and entrepot trade (operates according to the [98] WZMZSHZ No. 1225 document);
the production, processing and sales of the clothing, needle and textiles. Sales of the industrial
capital goods (excluding the gold, car, dangerous chemicals), department stores, furniture, arts and
crafts (excluding the gold jewelry) and the domestic commerce (except for those forbidden by the
laws, administrative regulations and the State Council; and as for the projects limited by the laws,
administrative regulations and the State Council should acquire the permission before
operating).Crops planting. Storage. Various investments. Real Estate development (three-level with
the period of validity to 31 December 2015.) Commercial residential buildings developed owning to
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
renting out the Company. Hotel management. Engages in the technique development, design and
sales of the gold, silver, platinum, diamond, jade, jewelry, hardstone article and so on.
3. Information of the special enterprises with limited business allotted time
Naught
4. Business nature and major operating activities of the Company
The Company is the gold jewelry vendor; mainly engages in the technique development, design and
sales of the gold jewelry.
5. Approval of the presentation of the financial statements
The financial statements and the notes to the financial statements were approved by the 19th
Meeting of the 7th Board of Directors of the Company on 27 August 2018.
There were 4 main bodies included in the consolidated financial statement scope at the period-end
of the Reporting Period, which specifically including:
Name of the subsidiaries Type of the Shareholding Voting proportion
subsidiaries proportion (%) (%)
Shenzhen Rieys Industrial Co., Limited liability 90.00 90.00
Ltd. company
Tianrui (Hong Kong) Trading Limited liability 100.00 100.00
Co., Ltd. company
Shenzhen Chinese Gold Nobility Limited liability 51.00 51.00
Jewelry Co., Ltd. company
Shanghai Yunpeng Internet 60.00 60.00
Limited company
Technology Co., Ltd
IV. Basis for the Preparation of the Financial Statement
1. Basis for the Preparation
The Company and its subsidiaries are prepared based on assumption of the Company’s continuing
operations, according to transactions and events actually occurred, and based on “Basic Accounting
Standard for Business Enterprises” and specific accounting standards as well as the application
guide, explanation and other relevant regulations (generally referred to as “ASBE”) issued
by Ministry of Finance. In addition, the Company’s financial statements also comply with the
relevant financial information in “Compilation Rules for Information Disclosures by Companies that
Offer Securities to the Public No.15 - General Provisions for Financial Reports” (hereinafter referred
to as “the No. 15”) issued by CSRC (revised in 2014).
The accounting measurement of the Company based on the accrual basis. Except for certain
financial instruments, the financial statements were all based on the historical cost for measurement.
If there was impairment of the assets, should withdraw the impairment provision according to the
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
relevant regulations.
2. Continuing Operations
The financial statement presented based on the continuing operations. There was no any event or
situation caused major concerns on the continuing operation ability of the Company within 12
months from the period-end.
V. Significant Accounting Policies and Estimates
Specific accounting policies and accounting estimates indicators:
Not applicable
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company are in compliance with in compliance with the
Accounting Standards for Business Enterprises, which factually and completely present the
Company’s, and the relevant information of the Company’s merger and financial positions as at 30
June 2018, as well as the merger, business results and the merger and cash flows for the first half
year of 2018.
2. Fiscal Period
The Company’s fiscal year starts on January 1 and ends on December 31 of every year according to
the Gregorian calendar.
3. Operating Cycle
Normal operating cycle refers to the period from the Group purchases the assets for processing to
realize the cash or cash equivalents. The Group regards 12 months as an operating cycle and regards
which as the partition criterion of the mobility of the assets and liabilities.
4. Recording Currency
Recording currency is RMB.
5. Accounting Treatment for Business Combinations under the Common Control and Not under the
Common Control
(1) Judgment standard of the package deal
If the terms, conditions and the economic influences of each transaction in the process of the
enterprise merger realized by multiple steps met with one or various situation of the followings,
should execute the accounting treatment by considering the multiple transactions as the package
deal:
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
① these transactions are considered simultaneously, or in the case of mutual influence made;
② these transactions as a whole in order to achieve a complete business results;
③ the occurrence of a transaction depends on occurs at least one other transaction ;
④ a transaction look alone is not economical, but when considered together with other transaction
is economical.
(2) Business combination under the same control
For the business combination under the same control, the assets and liabilities that the combining
party obtains in a business combination, except for the adjustment executed owning to the
differences between the accounting policies, shall be measured on the basis of their originally
carrying amount in the combined party on the combining date. As for the balance between the
carrying amount of the net assets obtained by the combining party and the carrying amount of the
consideration paid by it (or the total par value of the shares issued), the additional paid-in capital
(share/capital premium) shall be adjusted. If the additional paid-in capital (share/capital premium) is
not sufficient to be offset, the retained earnings shall be adjusted.
The direct relevant expenses occurred for executing the enterprise merger should be recorded in the
current gains and losses when occurred.
(3) Business combination not under the same control
Business combination not under the common control refers to that parties involved in the merger
are not subject to the ultimate control of the same party or same multi-parties before & after the
merger.
For a business combination not under the same control, the combination costs shall include the fair
values, on the acquisition date, of the assets paid, the liabilities incurred or assumed and the equity
securities issued by the acquirer in exchange for the control on the acquiree. On the purchase date,
the merger cost occurred in the Company and the assets, liabilities and the contingent liabilities of
the acquirees should be recognized according to the fair value.
As for the expenses for audit, legal services and assessment, and other administrative expenses,
should be recorded into the profits and losses in the current period. The trading expenses for the
equity securities or debt securities issued by the acquirer as the combination consideration shall be
recorded into the amount of initial measurement of the equity securities or debt securities.
The Company shall recognize the positive balance between the combination costs and the fair value
of the identifiable net assets it obtains from the acquiree as business reputation and shall execute the
follow-up measurement according to the cost which deducted the accumulative impairment
provision; the Company shall record which in the current gains and losses after the reexamination to
treat the balance between the combination costs and the fair value of the identifiable net assets it
obtains from the acquiree.
As for the deductible temporary differences the acquirer obtains from the acquiree which are not
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
recognized into deferred income tax liabilities due to their not meeting the recognition standards, if
new or further information shows that the relevant situation has existed on the acquiring date and
the economic benefits brought by the deductible temporary differences the acquirer obtains from the
acquiree on the acquiring date can be realized, they shall be recognized into deferred income tax
assets and the relevant goodwill shall be reduced. Where the goodwill is not sufficient to be offset,
the difference shall be recognized into the profits and losses in the current period. In other
circumstances than the above, where the deductible temporary differences are recognized into
deferred income tax assets on the acquiring date, they shall be recorded into the profits and losses in
the current period.
In a business combination not under same control realized by two or more transactions of exchange,
according to about the 5th Notice about the Treasury Issuing the Accounting Standards for
Enterprises (Finance accounting) [2012] No. 19 and Article 51 of Accounting Standards for
Enterprises No. 33—Consolidated Financial Statements of Criterion about the “package deal”,
whether the deals are “package deal” or not, belong to the “package deal”, see the previous
paragraphs described in this section and note IV, 12 “long term equity investment transaction” and
conduct accounting treatment, those not belong to the “package deal” distinguish between the
individual financial statements and the consolidated financial statements and conduct relevant
accounting treatment.
In the individual financial statements, the sum of the book value and new investment cost of the
Company holds in the acquiree before the acquiring date shall be considered as initial cost of the
investment. Other related comprehensive gains in relation to the equity interests that the Company
holds in the acquiree before the acquiring date, except for the corresponding share in the changes in
the net liabilities or assets with a defined benefit plan measured at the equity method arising from
the acquiree’s re-measurement, the others shall be transferred into current investment gains.
In the Company’s consolidated financial statements, the merger cost is the sum of the consideration
pays on the purchase date and the fair value on the purchase date of the equity of the acquirees hold
before the purchase date. As for the equity interests that the Company holds in the acquiree before
the acquiring date, they shall be re-measured according to their fair values at the acquiring date; the
positive difference between their fair values and carrying amounts shall be recorded into the
investment gains for the period including the acquiring date. Other related comprehensive gains in
relation to the equity interests that the Company holds in the acquiree before the acquiring date,
except for the corresponding share in the changes in the net liabilities or assets with a defined
benefit plan measured at the equity method arising from the acquiree’s re-measurement, the others
shall be transferred into current investment gains.
6. Preparation of the Consolidated Financial Statements
The consolidation scope for financial statements is determined on the basis of control and all the
subsidiaries (including the individual main body controlled by the Company) are all included in the
consolidated financial statement.
The consolidated financial statement bases on the financial statement of the Company and the
subsidiaries and prepares according to the other relevant materials by the Company. When
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
preparing the consolidated financial statement, the accounting policies and the accounting period of
the Company and the subsidiaries were required to maintain unanimous while the intercompany
significant contracts and the come-and-go balance should be offset.
For the subsidiaries increased owning to the enterprise merger under the same control during the
Reporting Period, the Company includes their income, expenses and profits from the period-begin
of the merger to the end of the Reporting Period in the consolidated statement of income and
includes the cash flow in the consolidated statement of cash flow, as well as adjust the opening
balance and the comparison amount of the consolidated financial statement; as for the subsidiaries
increased owning to the enterprise merger not under the same control during the Reporting Period,
the Company includes their income, expenses and profits from the purchase date to the end of the
Reporting Period in the consolidated statement of income and includes the cash flow in the
consolidated statement of cash flow, while not to as adjust the opening balance and the comparison
amount of the consolidated financial statement; during the Reporting Period, as for the disposed
subsidiaries, the Company includes their income, expenses and profits from the period-begin of the
merger to the disposal date in the consolidated statement of income and includes the cash flow in
the consolidated statement of cash flow, and not to adjust the opening balance of the consolidated
balance sheet.
The portion of a subsidiary’s shareholders’ equity and the portion of a subsidiary’s net profits and
losses for the period not held by the Company are recognized as minority interests and minority
shareholder profits and losses respectively and presented separately under shareholders’ equity and
net profits in the consolidation financial statements. The portion of a subsidiary’s net profits and
losses for the period that belong to minority interests is presented as the item of “minority
shareholder profits and losses” under the bigger item of net profits in the consolidated financial
statements. Where the loss of a subsidiary shared by minority shareholders exceeds the portion
enjoyed by minority shareholders in the subsidiary’s opening owners’ equity, minority interests are
offset.
As for the transactions purchasing minority equities of the subsidiaries or the transitions not losing
the control right of the subsidiaries owning to disposing the equity investment on them, should be
measured as the equity transactions and adjust the book value that attributes to the equities of the
shareholders of the Company and the equities of the minority shareholders for reflecting the
changes in the relevant equities of the subsidiaries. The Company adjusts the capital surplus of the
difference between the adjusted amount of the equities of the minority shareholders and the fair
value of the paid/received consideration, if the capital surplus is insufficient to write down, the
retained income should be adjusted.
Where the Company losses control on its original subsidiaries due to disposal of some equity
investments or other reasons, the residual equity interests are re-measured according to the fair
value on the date when such control ceases. The summation of the consideration obtained from the
disposal of equity interests and the fair value of the residual equity interests, minus the portion in
the original subsidiary’s net assets measured on a continuous basis from the acquisition date that is
enjoyable by the Company according to the original shareholding percentage in the subsidiary, is
recorded in investment gains for the period when the Company’s control on the subsidiary ceases.
Other comprehensive incomes in relation to the equity investment in the original subsidiary are
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
treated on the same accounting basis as the acquiree directly disposes the relevant assets or
liabilities (that is, except for the changes in the net liabilities or assets with a defined benefit plan
resulted from re-measurement of the original subsidiary, the rest shall all be transferred into current
investment gains) when such control ceases. And subsequent measurement is conducted on the
residual equity interests according to the No. 2 Accounting Standard for Business
Enterprises-Long-term Equity Investments or the No. 22 Accounting Standard for Business
Enterprises-Recognition and Measurement of Financial Instruments.
Where the Company losses control on its original subsidiaries due to step by step disposal of equity
investments through multiple transactions, it need to distinguish the Company losses control on its
subsidiaries due to disposal of equity investments whether belongs to a package deal. If each
transaction of disposing the equity investment of the subsidiaries until losing the control right
belongs to the package deal, should be regarded as a transaction of disposing the subsidiaries and
losing the control right for accounting treatment. Those not belong to a package deal, each of
them a deal depends on circumstances respectively conduct accounting treatment in accordance
with the applicable principles of “part disposal of subsidiaries of a long-term equity investment
under the condition of not losing control on its subsidiaries” (see details to the first two
paragraphs)and “Where the Group losses control on its original subsidiaries due to disposal of some
equity investments or other reasons” (see the details to the first paragraph).However, before losing
control, every disposal cost and corresponding net assets balance of subsidiary of disposal
investment are confirmed as other comprehensive income in consolidated financial statements,
which together transferred into the current profits and losses in the loss of control , when the
Company losing control on its subsidiary.
7. Classification of Joint Arrangements and Accounting Treatment of Joint Operations
Not applicable
8. Confirmation Standard for Cash and Cash Equivalent
In preparing the cash flow statement, the cash equivalents of the Company include the investments
with short period (it usually expires within three months from the purchase date), characteristics of
high liquidity, easy conversion to certain amount of cash and little risk of value change.
9. Transactions of Foreign Currencies and Conversion of Financial Statements in Foreign Currencies
(1) Adjustments are made to foreign currency accounts in accordance with the exchange rate
prevailing on the balance sheet date
Value of non currency item accrued at fair value by foreign currency is adjusted in accordance with
the exchange rate prevailing on fair value confirm date. Conversion differences arising from those
specific borrowings are to be capitalized as part of the cost of the construction in progress in the
period before the fixed assets being acquired and constructed has not yet reached working condition
for its intended use. Conversion differences arising from other accounts are charged to financial
expenses.
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
(2) In balance sheet, assets and liabilities items are converted into RMB at the exchange rate
prevailing on the consolidated balance sheet date. Owner’s equity items (excluding undistributed
profit item) are converted into RMB at the exchange rate when the transaction occurs. In income
statement, revenue and expenses items are accrued by the proper method and the approximate rate
when the transaction occurs. Translation difference occurred for above reason is disclosed in the
consolidated balance sheet as a separate item.
10. Financial Instruments
The term “financial instruments” refers to the contracts under which the financial assets of an
enterprise are formed and the financial liability or right instruments of any other entity are formed.
Financial instruments include the financial assets, financial liabilities and equity instruments.
(1) Recognition and derecognition of the financial instruments
When the Company becomes a party to a financial instrument, it shall recognize a financial asset or
financial liability.
Where a financial asset satisfies any of the following requirements, the recognition of it shall be
terminated:
① Where the contractual rights for collecting the cash flow of the said financial asset are
terminated;
② Where the said financial asset has been transferred and meets the conditions for recognizing the
termination of financial assets as follows.
Only when the prevailing obligations of a financial liability are relieved in all or in part may the
recognition of the financial liability be terminated in all or partly. Where the Company (debtor)
enters into an agreement with a creditor so as to substitute the existing financial liabilities by way of
any new financial liability, and if the contractual stipulations regarding the new financial liability is
substantially different from that regarding the existing financial liability, it shall terminate the
recognition of the existing financial liability, and shall at the same time recognize the new financial
liability.
Buying and selling the financial assets by conventional methods and executing the accounting
recognition and derecognition according to the transaction date.
(2) Category and measurement of the financial assets
The Company classifies the financial assets into the following four kinds when initially recognizing
according to the contract terms of the issued financial instruments and the economic nature reflected
by which but not by the law methods as well as combines with the aims of acquiring and holding
the financial assets and undertaking the financial liabilities: financial assets measured by fair value
with the changes be recorded in the current gains and losses, held-to-maturity investment, loans and
accounts receivable as well as the available-for-sale financial assets. The financial assets should be
measured by fair value when initially recognizing. As for the financial assets measured by fair value
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
with the changes be recorded in the current gains and losses, the relevant transactions expenses
should be directly recorded in the current gains and losses while the relevant transactions expenses
of the financial assets of other categories should be recorded in the initially recognized amount.
Financial assets measured by fair value with the changes be included in the current gains and losses
As for the financial assets measured by fair value with the changes are included in the current gains
and losses which include the tradable financial assets and the financial assets be appointed as the
one be measured by fair value with the changes are included in the current gains and losses when
initially recognized. For this kind of the financial assets, should be executed the follow-up
measurement by adopting the fair value, and the profits or losses form from the changes of the fair
value as well as the dividends and the interest income related to the financial assets should be
recorded in the current gains and losses.
Held-to-maturity investment
The term “held-to-maturity investment “refers to a non-derivative financial asset with a fixed date
of maturity, a fixed or determinable amount of repo price and which the enterprise holds for a
definite purpose or the enterprise is able to hold until its maturity. The following non-derivative
financial assets shall not be classified as investments held to their maturity. As for the
held-to-maturity investment, shall make subsequent measurement on its financial liabilities on the
basis of the post-amortization costs by adopting the actual interest rate method, while the gains or
losses of the derecognition, impairment or amortization should be recorded in the current gains and
losses.
Accounts receivable
Accounts receivable refers to the non-derivative financial assets without any quotation in the active
market but with fixed or recognizable recovery amount, which include the accounts receivable and
other accounts receivable etc. As for the accounts receivable, shall make subsequent measurement
on its financial liabilities on the basis of the post-amortization costs by adopting the actual interest
rate method, while the gains or losses of the derecognition, impairment or amortization should be
recorded in the current gains and losses.
Available-for-sale financial assets
Available-for-sale financial assets refers to the non-derivative financial assets be appointed as
available-for-sale and the financial assets except for the above category of the financial assets. The
available-for-sale financial assets should adopt the follow-up measurement and the premium should
adopt the actual interest rate for amortization and be recognized as the interest income. Except for
the impairment losses and the exchange differences of the foreign currency financial assets which
be regarded as the current gains and losses, the changes of the fair value of the available-for-sale
financial assets should be recognized as other comprehensive income, and when the financial assets
being derecognizing, the portion of the accumulative amount of changes in the fair value originally
recorded in the other comprehensive income which corresponds to the portion whose recognition
has been disposed, shall be transferred and recorded in the current gains and losses. And the
dividends or the interest income related to the available-for-sale financial assets should be recorded
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
in the current gains and losses.
(3) Category and measurement of financial liabilities
The financial liabilities of the Company are classified as the follows when initially recognized:
financial liabilities measured by fair value with the changes are recorded in the current gains and
losses and other financial liabilities. As for those had not be divided as the financial liabilities
measured by fair value with the changes be recorded in the current gains and losses, the relevant
transaction expenses should be recorded in the initial recognized amount.
Financial liabilities measured by fair value with the changes be recorded in the current gains and
losses
The financial liabilities measured by fair value with the changes be recorded in the current gains
and losses, which include the tradable financial liabilities and the financial liabilities be appointed
as measured by fair value with the changes be recorded in the current gains and losses when
initially recognized. For this kind of financial liabilities should be executed the follow-up
measurement according to the fair value, while the profits or losses form from the changes of the
fair value and the dividends and the interest expenses related to the financial liabilities should be
recorded in the current gains and losses.
Other financial liabilities
For the derivative financial liabilities, which are connected to the equity instrument for which there
is no quotation in the active market and whose fair value cannot be reliably measured, and which
must be settled by delivering the equity instrument, they shall be executed follow-up measurement
on the basis of their costs. As for the other financial liabilities, should adopt the effective interest
method and be executed the follow-up measurement according to the amortized cost with the profits
or losses form from derecognition or amortization be recorded in the current gains and losses.
(4) Fair value of the financial instruments
As for the financial assets or financial liabilities for which there is an active market, the current
offer or current price in the active market shall be used to determine the fair values thereof.
Where there is no active market for a financial instrument, the Company concerned shall adopt
value appraisal techniques to determine its fair value. The result obtained by adopting value
appraisal techniques shall be able to reflect the transaction prices that may be adopted in fair
dealings on the value appraisal day. The value appraisal techniques mainly include the prices
adopted by the parties, who are familiar with the condition, in the latest market transaction upon
their own free will, the current fair value obtained by referring to other financial instruments of the
same essential nature, the cash flow capitalization method and the option pricing model, etc.
To determine the fair value of a financial asset, the Company chooses those value appraisal
techniques which are generally acknowledged by market participants and have been proved as
reliable by past actual transaction prices of the market. To determine the fair value of a financial
asset by adopting value appraisal techniques, the Company shall adopt, if possible, all the market
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
parameters that are taken into account by market participants in pricing financial instruments and
the observable transaction price of the current market with the same financial instruments for testing
the validity of the valuation technique.
(5) Impairment of financial assets
The Company shall carry out an inspection, on the balance sheet day, on the carrying amount of the
financial assets and where there is any objective evidence proving that such financial asset has been
impaired, an impairment provision shall be made. The expression “objective evidence proving that
the financial asset has been impaired” refers to the actually incurred events which, after the
financial asset is initially recognized, have an impact on the predicted future cash flow of the said
financial asset that can be reliably measured by the Company.
Financial assets measured by amortized cost
If there are objective evidences indicate that the financial assets occur impairment, the carrying
amount of the said financial asset shall be written down to the current value of the predicted future
cash flow (excluding the loss of future credits not yet occurred), and the amount as written down
shall be recorded in the current gains and losses. The current value of the predicted future cash flow
shall be determined according to the capitalization of the original actual interest rate of the said
financial asset, taking into account the value of the relevant guarantee.
An impairment test shall be made on the financial assets with significant single amounts. If any
objective evidence shows that it has been impaired, the impairment-related losses shall be
recognized and shall be recorded into the profits and losses of the current period. With regard to the
financial assets with insignificant single amounts, an independent impairment test may be carried
out, or they may be included in a combination of financial assets with similar credit risk features so
as to carry out an impairment-related test. Where, upon independent test, the financial asset
(including those financial assets with significant single amounts and those with insignificant
amounts) has not been impaired, it shall be included in a combination of financial assets with
similar risk features so as to conduct another impairment test. The financial assets which have
suffered from an impairment loss in any single amount shall not be included in any combination of
financial assets with similar risk features for any impairment test.
Where any financial asset measured on the basis of post-amortization costs is recognized as having
suffered from any impairment loss, if there is any objective evidence proving that the value of the
said financial asset has been restored, and it is objectively related to the events that occur after such
loss is recognized, the impairment-related losses as originally recognized shall be reversed and be
recorded into the profits and losses of the current period. However, the reversed carrying amount
shall not be any more than the post-amortization costs of the said financial asset on the day of
reverse under the assumption that no provision is made for the impairment.
Available-for-sale financial assets
Where there are objective evidences indicate that the available-for-sale financial assets are impaired,
the accumulative losses arising from the decrease of the fair value of the owner’s equity which was
directly included shall be transferred out and recorded into the profits and losses of the current
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period. The accumulative losses that are transferred out shall be the balance obtained from the
initially obtained costs of the sold financial asset after deducting the principals as taken back, the
current fair value and the impairment-related losses as was recorded into the profits and losses of
the current period.
As for the sellable debt instruments whose impairment-related losses have been recognized, if,
within the accounting period thereafter, the fair value has risen and are objectively related to the
subsequent events that occur after the originally impairment-related losses were recognized, the
originally recognized impairment-related losses shall be reversed and be recorded into the profits
and losses of the current period. The impairment-related losses incurred to a sellable equity
instrument investment shall not be reversed through profits and losses.
Financial assets measured by cost
When the equity instrument investments for which there is no quotation in the active market and
whose fair value cannot be measured reliably, or the derivative financial assets which are connected
with the said equity instrument and must be settled by delivering the said equity instrument are
impaired, should recognize the book value of the financial assets and the differences between the
current value recognized from the discounting according to the current market earnings rate of the
similar financial assets to the future cash flow as the impairment losses and record which in the
current gains and losses. And the occurred impairment losses once being recognized should not be
reversed.
(7) Transformation of the financial assets
The term “"transfer of a financial asset” refers to transferring or delivering a financial asset to a
party other than the issuer of the financial asset (the transferee).
Where the Company has transferred nearly all of the risks and rewards related to the ownership of
the financial asset to the transferee, it shall stop recognizing the financial asset. If it retained nearly
all of the risks and rewards related to the ownership of the financial asset, it shall not stop
recognizing the financial asset.
Where the Company does not transfer or retain nearly all of the risks and rewards related to the
ownership of a financial asset, it shall deal with it according to the circumstances as follows,
respectively: if it gives up its control over the financial asset, it shall stop recognizing the financial
asset; if it does not give up its control over the financial asset, it shall, according to the extent of its
continuous involvement in the transferred financial asset, recognize the related financial asset and
recognize the relevant liability accordingly.
11. Receivables
(1) Accounts Receivable with Significant Single Amount for Which the Bad Debt Provision is Made
Individually
Standard of significant single amounts Individual material receivables are the top five largest receivables
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or sum of receivables which account for 10% of ending balance of
accounts receivable.
As for the accounts receivable with significant single amount at
the period-end, could execute the impairment test individually. If
there was objective evidence to shows that it has been impaired,
Withdrawing method of provision for bad debts of significant
the impairment-related losses shall be recognized and shall be
single amounts
made bed debt provision according to the difference that the
current value of the future cash flow lowers than its book value
of the accounts receivable.
(2) Accounts Receivable Which the Bad Debt Provision is Withdrawn by Credit Risk Characteristics
Name of portfolios Bad debt provision method
In the groups, adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Withdrawal proportion for accounts Withdrawal proportion for other accounts
Age
receivable receivable
Within 1 year (including 1 year) 2.00% 2.00%
1-2 years 10.00% 10.00%
2-3 years 50.00% 50.00%
3 to 4 years 80.00% 80.00%
4 to 5 years 80.00% 80.00%
Over 5 years 100.00% 100.00%
In the groups, adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, adopting other methods to withdraw bad debt provision:
□ Applicable √ Not applicable
(3) Accounts Receivable with an Insignificant Single Amount but for Which the Bad Debt Provision is
Made Individually
As for the accounts receivable with insignificant single amount at
Reason of individually withdrawing bad debt provision
the period-end, could execute the impairment test individually.
The impairment-related losses shall be calculated and recognized
and shall be made bed debt provision according to the proportion
of the accounts receivable portfolios that are accounts receivable
Withdrawal method for bad debt provision that didn’t incur impairment in test (including accounts
receivable with significant single amount and accounts
receivable with insignificant single amount ) and the accounts
receivable portfolios with similar credit risk characteristics to
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closing balance.
12. Inventory
Whether the Company needs to comply with the disclosure requirements of special industry?
Yes
Related industry of jewelry
The Company needs to comply with the disclosure requirements of Shenzhen Stock Exchange Industry Information Disclosure
Guidelines No. 11 - Listed Companies Engaged in Related Jewelry Business
(1) Inventory classification
The inventory of the Company classified as:
A. Real estate development products: developed products, development cost.
B. Non-real estate products: raw materials, products in production, stock merchandise, delivery
commodity, commission processing materials, etc.
(2) Method for inventory valuation
Inventories are valued at the lower of cost and net realizable value.
Real estate development product costs include land cost, construction costs and other costs.
Borrowing costs meet the capitalization conditions are also included in real estate development
product costs. Non-real estate development product costs include purchase cost, process cost and
other costs.
The raw materials acquired by the Company are measured according to the actual cost and the raw
materials, outside processing materials, goods in process and self-made semi-manufactured goods
adopt weighted average valuation when issued or received (winding wheel setting and jade
accessories adopt individual pricing).
(3) Confirmation of net realizable value of inventory and Recording method of provision for
inventory devaluation
At the end of the period, after overall check of the inventory, draw or adjust provision for inventory
devaluation according to the lower of the cost of inventory and net realizable values of inventory.
In normal operation process, net realizable values of commodities inventories for direct sales
including finished goods, commodities and materials for sales are determined by the estimated
selling prices minus the estimated selling expenses and relevant taxes and fees; In normal operation
process, net realizable values of materials that need further processing are determined by the
estimated selling prices of the finished goods minus estimated cost to completion, estimated selling
expenses and relevant taxes. For the inventory held to implement sales contract or work contract, its
net realizable value is calculated on the basis of contract price. For the balance of inventory beyond
the amount of the sales contract, its net realizable value is calculated on the basis of general selling
price.
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Provision for inventory devaluation is provided for based on individual inventory item at end of the
period. For inventory that has large quantity and low unit price, the provision for inventory
devaluation is provided for based on categories of the inventory. For inventory related to the
products manufactured and sold in the same district, with same or similar use or purpose, and
difficult to account for separately from other items, the provision for inventory devaluation is
provided for on a consolidated basis.
When the factors that influence the decreased bookkeeping of inventory value have disappeared,
switch back from the provision for inventory devaluation amount that previously appropriated and
the amount that switched back is charged to profit or loss of current period.
(4) System of stock inventories
Perpetual inventory system is applied.
(5) Amortization for low cost and short lived articles and package materials
When consuming the low cost and short lived articles, the Company adopts the one-time
amortization method for amortization.
The turnover package materials should be recorded in the cost expenses according to the one-time
amortization method.
13. Assets Held for Sale
When a company relies mainly on selling (including the exchanges of non-monetary assets with
commercial substance) instead of continuing to use a non-current asset or disposal group to recover
its book value, the non-current asset or disposal group is classified as asset held for sale. Both of the
following conditions shall be met when non-current assets or disposal group is classified as asset
held for sale:
(1) Assets or disposal groups can be sold immediately under current conditions based on the
practice of selling such assets or disposal groups in similar transactions;
(2) Sales are highly likely to occur, that is, the enterprise has already made a resolution on a sale
plan and obtained a certain purchase commitment, and the sale is expected to will be completed
within one year, and the sale shall have been approved if relevant regulations require relevant
authority or regulatory authority of the enterprise to approve it.
The recognized purchase commitment refers to the purchase agreement signed by enterprise with
other parities with legal binding, which includes important terms, such as transaction price, time,
and severe punishment. It is highly unlikely that the agreement will be significantly adjusted or
withdrawn.
14. Long-term Equity Investment
The long-term equity investments of this part refer to the long-term equity investments that the
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Group has control, joint control or significant influence over the investees. The long-term equity
investment that the Group does not have control, joint control or significant influence over the
investees, should be recognized as available-for-sale financial assets or be measured by fair value
with the changes should be included in the financial assets accounting of the current gains and
losses.
(1) Recognition of investment costs
As for long-term equity investments acquired by enterprise merger, if the merger is under the same
control, the share of the book value of the owner’s equity of the merged enterprise, on the date of
merger, is regarded as the initial cost of the long-term equity investment. The difference between
the initial cost of the long-term equity investment and the payment in cash, non-cash assets
transferred as well as the book value of the debts borne by the merging party shall offset against the
capital reserve. If the capital reserve is insufficient to dilute, the retained earnings shall be adjusted
(If the consideration of the merging enterprise is that it issues equity securities, it shall, on the date
of merger, regard the share of the book value of the shareholder's equity of the merged enterprise on
the consolidated financial statement of the ultimate control party as the initial cost of the long-term
equity investment. The total face value of the stocks issued shall be regarded as the capital stock,
while the difference between the initial cost of the long-term equity investment and total face value
of the shares issued shall offset against the capital reserve. If the capital reserve is insufficient to
dilute, the retained earnings shall be adjusted. The equities of the combined party which
respectively acquired through multiple transaction under the same control that ultimately form into
the combination of the enterprises under the same control, should be disposed according whether
belongs to package deal; if belongs to package deal, each transaction would be executed accounting
treatment by the Company as a transaction of acquiring the control right. If not belongs to package
deal, it shall, on the date of merger, regard the enjoyed share of the book value of the shareholder's
equity of the merged enterprise on the consolidated financial statement of the ultimate control party
as the initial cost of the long-term equity investment, and as for the difference between the initial
investment cost of the long-term equity investment and sum of the book value of the long-term
equity investment before the combination and the book value of the consideration of the new
payment that further required on the combination date, should adjust the capital reserve; if the
capital reserve is insufficient to dilute, the retained earnings shall be adjusted. The equity
investment held before the combination date which adopted the equity method for accounting, or
the other comprehensive income confirmed for the available-for-sale financial assets, should not
have any accounting disposal for the moment).
For the long-term investment required from the business combination under different control, the
initial investment cost regarded as long-term equity investment on the purchasing date according to
the combination cost, the combination costs shall be the sum of the fair values of the assets paid, the
liabilities incurred or assumed and the equity securities issued by the Company (The equities of the
acquirees which respectively acquired through multiple transaction that ultimately form into the
combination of the enterprises under the different control, should be disposed according whether
belongs to package deal; if belongs to package deal, each transaction would be executed accounting
treatment by the Company as a transaction of acquiring the control right. If not belongs to package
deal, the sum of the book value of the original held equity investment of the acquirees and the
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newly added investment cost should be regarded as the initial investment cost of the long-term
equity investment that changed to be accounted by cost method. If the original held equity is
calculated by cost method, the other relevant comprehensive income would not have any accounting
disposal for the moment. If the original held equity investment is the financial assets available for
sale, its difference between the fair value and the book value as well as the accumulative changes of
the fair value that include in the other comprehensive income, should transfer into the current gains
and losses).
The commission fees for audit, law services, assessment and consultancy services and other
relevant expenses occurred in the business combination by the combining party or the purchase
party, shall be recorded into current profits and losses upon their occurrence; the transaction
expense from the issuance of equity securities or bonds securities which are as consideration for
combination by the combining party, should be recorded as the initial amount of equity securities
and bonds securities.
Besides the long-term equity investments formed by business combination, the other long-term
equity investments shall be initially measured by cost, the cost is fixed in accordance with the ways
of gaining, such as actual cash payment paid by the Group, the fair value of equity securities issued
by the Group, the agreed value of the investment contract or agreement, the fair value or original
carrying amount of exchanged assets from non-monetary assets exchange transaction, the fair value
of the long-term equity investments, etc. The expenses, taxes and other necessary expenditures
directly related with gaining the long-term equity investments shall also be recorded into investment
cost. The long-term equity investment cost for those could execute significant influences on the
investees because of appending the investment or could execute joint control but not form as control,
should be as the sum of the fair value of the original held equity investment and the newly added
investment cost recognized according to the No. 22 of Accounting Standards for Business
Enterprises—Recognition and Measurement of Financial Instrument.
(2) Subsequent measurement and recognition of gains or losses
Long-term equity investment measured by cost method
The long-term equity investment which the Company could execute the control on the investees,
should be measured by cost method and shall be included at its initial investment cost and append
as well as withdraw the cost of investing and adjusting the long-term equity investment.
As for the long-term equity investment measured by cost method, the return on investment at
current period shall be recognized in accordance with the cash dividend or profit announced to
distribute by the invested entity, except the announced but not distributed cash dividend or profit
included in the actual payment or consideration upon gaining the investment.
Long-term equity investment measured by equity method
As for the long-term equity investment of the joint ventures and the associated enterprises, the
Company adopts the equity method for measurement; as for the one part of the equity investment
that indirectly held by the joint ventures through the similar main bodies such as the venture capital
Institutions, mutual fund, trust company or the unit-linked Insurance funds, should be measured by
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adopting fair value with the changes be recorded in the gains and losses.
If the initial cost of a long-term equity investment is more than the Company’s attributable share of
the fair value of the invested entity’s identifiable net assets for investment, the initial cost of the
long-term equity investment may not be adjusted. If the initial cost of a long-term equity investment
is less than the Company’s attributable share of the fair value of the invested entity’s identifiable net
assets for investment, the difference shall be included in the current profits and losses.
After the Company acquires the long-term equity investment, respectively recognize investment
income and other comprehensive income according to the net gains and losses as well as the portion
of other comprehensive income which should be enjoyed or be shared, and at the same time adjust
the book value of the long-term equity investment; corresponding reduce the book value of the
long-term equity investment according to profits which be declared to distribute by the investees or
the portion of the calculation of cash dividends which should be enjoyed; for the other changes
except for the net gains and losses, other comprehensive income and the owners’ equity except for
the profits distribution of the investees, should adjust the book value of the long-term equity
investment as well as include in the owners’ equities.
When executes the measurement on the long-term equity investment by the equity method, the
Company should adjust the net profits of the investees in the aspects such as the fair value,
accounting policies and accounting period of each identifiable asset of the investees when acquiring
firstly and secondly recognize the current investment gains and losses according to the net gains and
losses which should enjoyed or undertook of the investees.
For the unrealized profits or losses of internal transactions occurred among the Company and joint
ventures, the proportion attributable to the Company will be recognized based on the offset as the
investment gains and losses.
Recognition of share of losses of the invested companies under the equity method is treated in the
following steps: First, reduce the book value of the long-term equity investment. Second, when the
book value is insufficient to cover the share of losses, investment losses are recognized up to a limit
of book values of other long-term equity which form net investment in substance by reducing the
book value of long term receivables, etc. Finally, after all the above treatments, if the Company is
still responsible for any additional liabilities in accordance with the provisions stipulated in the
investment contracts or agreements, estimated liabilities are recognized and charged into current
investment loss according to the liabilities estimated. If the invested company achieve profit in
subsequent periods, the treatment is in the reversed steps described above after deduction of any
unrecognized investment losses, i.e., reduce book value of estimated liabilities recognized, restore
book values of other long-term equity which form net investment in substance, and in long-term
equity investment, and recognize investment income at the same time.
Disposal of the long-term equity investment
When disposing of a long-term equity investment, the difference between its book value and the
actual purchase price shall be included in the current profits and losses. As for the long-term equity
investment measured by adopting the equity method, when disposing the investment, should adopt
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the same basis as the investees when directly disposing the relevant assets or liabilities and execute
the accounting treatment on the part which originally be recorded in the other comprehensive
income according to the corresponding proportion. As for the owners’ equities recognized owning
to the changes of the other owners’ equities except for the net gains and losses, other comprehensive
income and the profits distribution of the investees, should be carried down in the current gains and
losses according to the proportion. If lost the jointly control or the significant influences on the
investees owning to the reasons such as disposing part of the equity investment, the retained
equities after the disposal should change to be recognized according to the financial instruments and
be measured by the measure criterion, with the difference between the fair value on the date losing
the jointly control or the significant influences and the book value, should be recorded in the current
gains and losses. As for the other comprehensive income recognized owning to the original equity
investment which be measured by adopting the equity method, should be executed the accounting
treatment bases on the same basis as directly disposing the relevant assets or liabilities by the
investees when terminating the measurement by adopting the equity method. And the owners’
equities recognized owning to the changes of the other owners’ equities except for the net gains and
losses, other comprehensive income and the profits distribution, should be totally transferred in the
current gains and losses when terminating the measurement by adopting the equity method.
As for those lost the control right on the investees owning to the reasons such as disposing part of
the equity investment, when preparing the individual financial statement, if the retained equities
after the disposal could execute the jointly control or significant influences on the investees, should
change to be measured by equity method and execute the adjustment of the retained equity by
regarding which as adopting the equity method for measurement the time when acquires; and if the
retained equities after the disposal could not execute the jointly control or significant influences on
the investees, should change to be recognized according to the financial instruments and be
executed the accounting treatment according to the relevant regulations of the measure criterion
with the difference between the fair value on the date lost the control and the book value, should be
recorded in the current gains and losses.
If the disposed equity is acquired by the enterprise merger owning to the reasons such as the
additional investment, when preparing the individual financial statement, as for the disposed
retained equities be measured by adopting the cost method or the equity method, the other
comprehensive income and the other owners’ equities recognized owning to the equity investment
which adopts the equity method for measurement before the purchase date should be carried
forward according to the proportion; as for the disposed retained equities change to be recognized
according to the financial instruments and be executed the accounting treatment according to the
measure criterion, the other comprehensive income and other owners’ equities should be totally
carried forward.
(3) Judgment criterion of the jointly control and significant influences
If the Company jointly control certain arrangement according to the relevant agreement with the
other participants and owns the activity decision-making with significant influences on the return of
the arrangement, which only exists through the consensus of the participants with enjoy and control
right, should regard the Company and other participants jointly control certain arrangement and the
arrangement is the joint venture arrangement.
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As for the joint venture arrangement reaches through the individual main body, when judging the
Company enjoying the right on the net assets of the individual main body according to the relevant
agreement, should regard the individual main body as the joint venture and should measure which
by adopting the equity method. If the Company not enjoys the right on the net assets of the
individual main body according to the relevant agreement after the judgment, the individual main
body should be regarded as the jointly operation and the Company should recognize the projects
related to the interest shares of the joint operation and execute the accounting treatment according
to the regulations of the relevant ASBE.
The term “significant influence” means having the power to participate in the formulation of
financial and operating policies of an enterprise, but not the power to control or jointly control the
formulation of these policies together with other parties. The Company judges whether there are
significant influences on the investees through one or various situations of the following and
comprehensively considers all the facts and situations. (1) there are representatives assigned in the
Board of Directors or the similar capability mechanisms in the investees; (2) participates in the
decision-making process of the financial and operating policies of the investees; (3) there are
significant transactions with the investees; (4) sends the administrative staffs to the investees; (5)
provides the key technical materials to the investees.
(4) Impairment testing and impairment provision methods
On the balance sheet date, if there are similar situations such as the book value of the long-term
equity investment larger than the shares of the book value of the owners’ equities of the investees,
the Company should execute the impairment test of the long-term equity investment according to
the No. 8 of ASBE – Assets Impairment and as for the recoverable amount less than book value of
the long-term equity investment, should be withdrawn the impairment provision. As for the specific
methods for withdrawing the assets impairment, please refer to Notes IV. 19.
15. Investment Real Estates
Measurement mode of investment real estates
Measurement of cost method
Depreciation or amortization method
Investment real estates refer to the real estate held for gaining the rental or the capital appreciation
or for both causes mentioned above, which includes the leased land use right, held-to-transferred
land use right after appreciation and the leased buildings.
The Company adopts cost mode measurement on the current investment real estates. For investment
properties and rental assets measured at the cost model, they will be implemented the same
depreciation policy similar to fixed assets, land use right for rental will be implemented the same
amortization policy to intangible assets; for those with the indication of impairment, the recoverable
amount can only be estimated, and if recoverable amount is lower than its book value, the
corresponding impairment loss should be confirmed.
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16. Fixed Assets
(1) Conditions for Recognition
Fixed assets are tangible assets that are held for use in the production or supply of services, for
rental to others, or for administrative purposes; they have useful lives over one fiscal year. And they
shall be recognized only when both of the following conditions are satisfied: A. It is probable that
economic benefits associated with the assets will flow to the enterprise; B. The cost of the fixed
assets can be measured reliably.
(2) Depreciation Methods
Expected net salvage
Category of fixed assets Method Useful life Annual deprecation
value
Buildings and Average method of
35 years 5% 2.71%
constructions useful life
Average method of
Machinery equipment 10 years 5% 9.50%
useful life
Transportation Average method of
8 years 5% 11.88%
equipment useful life
Office equipment and Average method of
5 years 5% 19.00%
others useful life
(3) Recognition Basis, Pricing and Depreciation Method of Fixed Assets by Finance Lease
The fixed assets gained from financing leasing, if could ensure reasonable to gain the ownership of
the leasing assets when the term expired, should withdraw the depreciation during the service
period of the leasing assets; if could not ensure reasonable to gain the ownership of the leasing
assets when the term expired, should withdraw the depreciation during the shorter period between
the leasing period and the service period of the leasing assets. If the fixed assets gained from the
financing leasing method met with the capitalization condition of the remodeling expense, should
average amortized according to the shortest period among the period between the two decorations,
the rest leasing period and the service period of the fixed assets.
17. Construction in Progress
(1) Classification of construction in progress
The Construction in progress will be calculated based on the classification of proposed projects.
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(2) Transfer time of construction in progress to fixed assets
For the construction in progress, all expenses occurring before they are ready for the use will be the
book values as the fixed assets. In case the construction in progress has been ready for use but the
final accounts for completion have not been handled, from the date when such projects has been
ready for use, the Company will evaluate the values and determine the costs based on the project
budgets, prices or actual costs of projects, etc and the depreciation amount will also be withdrawn;
when the final accounts for completion are handled, the Company will adjust the originally
evaluated values subject to the actual costs, but will not adjust the withdrawn depreciation amount.
18. Borrowing Expenses
(1) Confirmation principle of capitalization of borrowing expenses
In case the borrowing expenses occurring in the Company may directly be attributable to the
construction and productions of assets complying with the capitalization conditions, they will be
capitalized and accrued to the relevant capital costs; other borrowing expenses will be confirmed as
the expenses based on the actual amount at the time of occurrence and accrued to the current profit
or loss.
The assets complying with the capitalization conditions mean the assets such as fixed assets,
investment real estates and inventory, etc that need a long time of construction and production
activities before they are ready for use or for sales.
The borrowing expenses begin to be capitalized under the following circumstances:
A. The asset payment have been made which include the payment such as the paid cashes,
transferred non-currency assets or borne liabilities with the interests to construct or produce the
assets complying with the capitalization conditions;
B. The borrowing expenses have occurred;
C. The necessary construction or production activities to make the assets ready for use or sales have
been launched.
In case during the construction or production period the assets complying with the capitalization
conditions are abnormally suspended and the suspension period exceeds 3 months continuously, the
capitalization of borrowing expenses will also be suspended.
The capitalization of borrowing expenses for the assets that have been constructed or produced and
are ready for use or sales will be stopped.
When parts of the purchased assets or assets whose production satisfies the capitalization conditions
are completed respectively and can be used individually, the capitalization of the borrowing
expenses of these parts will be stopped.
(2) Capitalization period of borrowing expenses
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The capitalization period means the period from the moment that the borrowing expenses start to be
capitalized to the moment that the capitalization is stopped, which does not include the period that
the capitalization of borrowing expenses is suspended.
(3) Calculation method about capitalization amount of borrowing expenses
The interest expenses for special loans (after the deduction of interest income generated by the
unused loan capitals or the investment return obtained from the temporary investments) and
auxiliary expenses will be capitalized before the assets complying with the capitalization conditions
are ready for the expected use or sales.
The interest amount of general loans to be capitalized will be determined by multiplying the
weighted average amount of the asset payment by which the accumulated assets exceed the special
loans with the capitalization rate of general loans. The capitalization rate will be determined based
on the weighted average interest rate of general loans.
In case the loans have the discounts or premiums, the Company will adjust the interest amount in
each period based on the amortized discount and premium amount in each accounting period in
accordance with the actual interest rate method.
19. Biological Assets
Not applicable
20. Oil-gas Assets
Not applicable
21. Intangible Assets
(1) Pricing Method, Service Life and Impairment Test
Pricing method of the intangible assets
When acquiring, the intangible assets are generally recorded according to actual cost;
A. For those the price of intangible assets deferred paid exceed normal credit condition so
substantively has financing character, the cost of intangible assets is confirmed on the basis of
present value of purchasing price.
B. For fixed assets formed through obtaining them by the debtor paying for debt in debt restructure,
recognize its recording value as fair value of the fixed assets, and record the difference between the
carrying amounts of debt restructure and the fixed assets used for paying debt into current profit or
loss; in the circumstance of the non monetary assets exchange has commercial nature and fair value
of surrendered or received assets can be measured reliably, recording value of received assets
should be recognized as fair value of surrendered assets unless there is clear evidence to indicate
that fair value of received assets is more reliable; for non monetary assets exchange which doesn’t
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meet the requirement of premise mentioned above, cost of received assets should be recognized as
carrying amount and related tax expenses payable of surrendered assets and should not be
recognized as profit or loss.
C. Recording value of fixed assets obtained by absorbing and consolidated by enterprise under the
common control should be recognized as carrying amount of the consolidated party; recording
value of fixed assets obtained by absorbing and consolidated by enterprise under different control
should be recognized as fair value.
Service life and amortization of the intangible assets
A. Estimation of useful life for intangible assets with finite useful life
At end of each year, the Company will recheck the useful life of intangible assets with the definite
useful life and amortization method will be rechecked.
According to the re-check, the useful life and amortization method of the intangible assets at the
end of the year are not different from those estimated before.
B. Amortization of the intangible assets:
In case their useful life is limited, the intangible assets are amortized evenly over the period in
which they produce economic profit for the Company; in case it is impossible to evaluate the useful
life when the intangible assets bring the benefits to enterprises, it will be deemed that the useful life
of such intangible assets is uncertain and amortization is not applicable and not execute the
amortization.
(2) Accounting Policy for Internal Research and Development Expenditures
Not applicable
22. Long-term Assets Impairment
For the long-term non-current financial assets of the fixed assets, projects under construction and
intangible assets, the Company would judge whether decrease in value exists on the date of balance
sheet at every period-end. No matter whether there is any sign of possible assets impairment, the
business reputation formed by the merger of enterprises and intangible assets with uncertain service
lives shall be subject to impairment test every year.
If there is the sign of possible impairment of the assets, should estimate the recoverable amount:
(1) Where there is any evidence indicating a possible impairment of assets, the enterprise shall, on
the basis of single item assets, estimate the recoverable amount.
(2) Where it is difficult to do so, it shall determine the recoverable amount of the group assets on
the basis of the asset group to which the asset belongs.
(3) The recoverable amount shall be determined on the basis of the higher one of the net amount of
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
the fair value of the asset minus the disposal expenses and the current value of the expected future
cash flow of the asset
Where the recoverable amount of the assets is lower than its carrying value, the book value of the
assets should be written down to the recoverable amount with the written-down amount be
recognized as the impairment losses of the assets and record which in the current gains and losses as
well as at the same time withdraw the corresponding impairment provision of the assets.
After the recognition of the impairment losses of the assets, the depreciation or the amortization
expenses of the impairment assets should be corresponding adjusted in the future period to lead the
assets in the retained service life so that to systematically sharing the book value of the assets after
the adjustment (deducted the expected net salvage).
The impairment losses of the long-term non-current financial assets of the fixed assets, projects
under construction and intangible assets once being recognized should no longer be reversed in the
accounting period afterwards.
23. Long-term Expenses to be Amortized
Long-term expenses to be amortized will be averagely amortized in the benefit period, including:
(1) Prepaid rentals for operating leased fixed assets will be averagely amortized according to the
term stipulated in the lease contract.
(2) Fixed assets improvement expenses for operating leased fixed assets will be averagely
amortized according to the remaining lease period and the useful life of leased assets, whichever is
shorter.
24. Payroll
(1) Accounting Treatment of Short-term Compensation
Payroll refers to all kinds of remuneration or compensation given by the Company to acquire the
service from employees or to sever labor relation. Payroll includes short-term compensation,
welfare after demission, demission welfare, and welfare of other long-term staffs.
Short-term compensation refers to the Company needs to pay all of the payroll for the employees
within 12 months after the end of the annual Reporting Period during which the employees provide
the relevant service and exclude the welfare after demission and the demission welfare. The
short-term compensation actually happened during the accounting period when the active staff
offering the service for the Company should be recognized as liabilities and is included in the
current gains and losses or relevant assets cost. During the accounting period the service workers
providing the service, the social insurance charges such as the medical treatment, industrial injury,
birth insurance and the housing fund paid for the employees by the Company as well as the labor
union expenditure and the personnel education fund withdrawn according to the regulations, should
be calculated the corresponding amount of the payroll according to the stipulated withdraw basis
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
and withdraw proportion
If the employee services and benefits is the non-monetary welfare, should be measured by fair
value.
(2) Accounting Treatment of the Welfare After Demission
Welfare after demission refers to various forms of the compensation and benefits provided by the
Company which receive the service from the employees after the retirement or the relief of the labor
relation with the enterprise of the service workers, except for the short-term compensation and
demission welfare. Welfare plan after demission is classified into defined contribution plans and
defined benefit plans.
A. Defined contribution plans
During the accounting period the service workers providing the service for the Company, the
Company should pay the basic endowment insurance and unemployment insurance for the
employees according to the relevant regulations of the local government and the payable amount
calculated according to the cardinal number of the payment as well as the proportion stipulated by
the local, should be recognized as the liabilities and record which in the current gains and losses or
the relevant assets cost.
The Company pays the fees for the local social insurance agencies according to the certain
proportion of the total amount of the staff salaries and the corresponding expenses should be
recorded in the current gains and losses or the relevant assets cost.
B. Defined benefit plans
The Company attributes the benefits obligations from the defined benefit plans according to the
formula recognized by the expected accumulative benefit units to the period the employees
providing the service and records which in the current gains and losses or the relevant assets cost.
The deficits or surplus formed from the current value of the defined benefit plans obligations
minuses the fair value of the defined benefit plans assets should be recognized as a net liability or
net assets of the defined benefit plans. If there is surplus of the defined benefit plans, the Company
should measure the net assets of the defined benefit plans according to the lower one between the
surplus and the assets of the defined benefit plans.
All the obligations of the defined benefit plans, including the obligations paid within 12 months
after the end of the expected annual Reporting Period the service workers providing the service,
should be discounted according to the national debt matched with the obligatory term of the defined
benefit plans and the currency on the balance sheet date or the market returns of the high-quality
company bonds on the active market.
The service cost from the defined benefit plans and the net liabilities or the net amount of the
interests of the net assets from the defined benefit plans should be recorded in the current gains and
losses or the relevant assets cost; the net liabilities of the defined benefit plans be remeasured or the
87
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
changes from the net assets should be recorded in the other comprehensive income and should not
be reversed to the gains and losses in the follow-up accounting period.
When settling the defined benefit plans, should recognize the settled gains or losses according to the
difference between the current value of the defined benefit plans recognized on the settlement date
and the settlement price.
(3) Accounting Treatment of the Demission Welfare
When the Company cannot unilaterally withdraw the earlier one between the demission welfare
provided owning to the relieve of the labor relation plans or the reduction advices and the
recognition of the cost or expenses related to the reorganization involved with the payment of the
demission welfare, the liabilities of the employee compensation from the demission welfare should
be recognized and be recorded in the current gains and losses.
(4) Accounting Treatment of the Welfare of Other Long-term Staffs
Not applicable
25. Estimated Liabilities
(1) Recognition principles:
Only if the obligation pertinent to a contingencies such as external guarantee, unsettled lawsuits or
arbitrations, quality guarantee of the products, losses contracts, restructuring obligations, retirement
obligations of fixed assets shall be recognized as an estimated debts when the following conditions
are satisfied simultaneously:
A. That obligation is a current obligation of the Company;
B. It is likely to cause any economic benefit to flow out of the Company as a result of performance
of the obligation; and
C. The amount of the obligation can be measured in a reliable way.
(2) Measurement methods:
The Company shall measure the estimated debts in accordance with the best estimate of the
necessary expenses for the performance of the current obligation.
When recognizing the current best estimate, the Company should comprehensive consider the
elements such as the risks, uncertainty and currency time and value of the contingencies.
The best estimate should be respectively disposed according to the following situations:
A. If there is a sequent range (or section) for the necessary expenses and if all the outcomes within
this range are equally likely to occur, the best estimate shall be determined in accordance with the
middle estimate which is equaled to the average amount of the bound amount within the range.
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
B. When there is not a sequent range (or section) for the necessary expenses, or there is a sequent
range but the possibility of various kinds of results happed would be different within the range, so if
the contingencies concern a single item, the best estimate shall be determined in the light of the
most likely outcome; and if the contingencies concern two or more items, the best estimate should
be calculated and determined in accordance with all possible outcomes and the relevant
probabilities.
When all or some of the expenses necessary for the liquidation of an estimated debts of an
enterprise is expected to be compensated by a third party, the compensation should be separately
recognized as an asset when it is virtually certain that the reimbursement will be obtained and the
amount recognized for the reimbursement should not exceed the book value of the estimated debts.
26. Share-based Payment
Not applicable
27. Other Financial Instruments Such as Preferred Shares and Perpetual Capital Securities
Not applicable
28. Revenue
Whether the Company needs to comply with the disclosure requirements of special industry?
Yes
Related industry of jewelry
The Company needs to comply with the disclosure requirements of Shenzhen Stock Exchange Industry Information Disclosure
Guidelines No. 11 - Listed Companies Engaged in Related Jewelry Business
29. Government Subsidies
(1) Judgment Basis and Accounting Treatment of Government Subsidies Related to Assets
Government grants related to assets are recognized as deferred income after offsetting the carrying
value of related assets. Government grants related to assets recognized as deferred income are
recorded into gains and losses by stage through reasonable and systematic methods during related
assets’ useful life. Government grants measured at nominal amount are directly recorded into the
current gains and losses.
If related assets were sold, transferred, scrapped or damaged before useful life ended, balance of
undistributed deferred income shall be shifted to current gains and losses.
(2) Judgment Basis and Accounting Treatment of Government Subsidies Related to Income
If such grants are used to compensate for relevant costs and losses of the company during later
periods, they will be recognized as deferred income and recorded to current profit or loss or offset
89
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
the relevant costs upon recognizing related costs or losses;
If such grants are used to compensate for relevant costs and losses occurred of the company, they
will be directly through current profit or loss or offset the relevant costs.
30. Deferred Income Tax Assets/Deferred Income Tax Liabilities
Corporate income tax will be calculated by liability method of the balance sheet.
The company’s tax base will be determined upon the company obtains the assets or liabilities; on
the balance sheet date, take the balance sheet as the basis, and if the book value of related assets or
liabilities are different to the tax bases provided by tax laws, it will calculate and confirm the
deferred income tax assets or deferred income tax liabilities occurred in accordance with the
provisions of tax laws, which effect will be included in current income tax expense.
The company is subject to the limit of the amount of taxable income likely to be used to offset
temporary difference, thus confirms the deferred income tax asset produced by the deductible
temporary difference.
In addition to the cases specified under income guidelines that no need to confirm the deferred
income tax liabilities, the company should recognize related deferred income tax liabilities for all
taxable temporary differences.
31. Lease
(1) Accounting Treatment of Operating Lease
If the terms of the lease will be transferred to the lessee substantially together with all the risks and
rewards related to the ownership of leased assets, then the lease is a finance lease, and other lease is
operating lease.
The Company as the leaser: As for the rent expenses from operating leases, the Company
recognizes the current gains and losses by using the straight-line method over each period of the
lease term. The initial direct costs shall be recognized as the profits and losses of the current period
The Company as the lease: The Company uses depreciation policy consistent with its own fixed
assets to make provision for depreciation of leased assets.
For rent in operating leases, the Company will use the straight-line method to record it into the cost
of relevant assets or current profit or loss in each period during the lease term; and initial direct
costs occurred will be through current profit or loss.
Rent in operating leases will be recorded into the cost of relevant assets or current profit or loss in
each period during the lease term.
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
(2) Accounting Treatments of Finance Lease
The Company as the leaser
In finance lease, at the lease beginning date, the Company takes the minimum lease receipt and the
initial direct costs as the entry value of finance lease receivable, and records the unguaranteed
residual value; and the difference between the sum of minimum lease receipt, initial direct costs and
unguaranteed residual value and its present value is recognized as unrealized finance income. For
unrealized finance income each period during the lease term, it will use the effective interest
method to confirm the current financing income.
The Company as the leasee
In finance lease, at the lease beginning date, the Company will take the lower of the fair value of the
leased assets and the present value of minimum lease payment as the entry value of leased assets,
and take the minimum lease payment as the entry value of long-term payables, and their difference
will be as unrecognized finance cost. Initial direct costs are included in the value of leased assets.
For unrecognized finance income each period during the lease term, it will use the effective interest
method to confirm the current financing cost.
32. Other Significant Accounting Policies and Estimates
Not applicable
33. Changes in Main Accounting Policies and Estimates
(1) Change of Accounting Policies
□ Applicable √ Not applicable
(2) Significant Changes in Accounting Estimates
□ Applicable √ Not applicable
34. Other
Naught
VI. Taxation
1. Main Taxes and Tax Rate
Category of taxes Tax basis Tax rate
VAT Revenue of product 17
Consumption tax Revenue of sale of taxable product 5
Corporate income tax Income tax payable 25
VAT Revenue of sales of real estate (after 1 May 5
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
2016, apply a simplified method)
Revenue of sales of real estate (before 30
Business tax 5
April 2016)
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
2. Tax Preference
3. Other
1. The Company implements the uniform tax rebate policy of export, i.e. the export is exempt from
VAT and the input-VAT of goods is refunded with refund rate according to relevant rules before
export in accordance with the requirements of tax law.
2. Since 1 January 2008, other subsidiaries of the Company has adopted the applicable income tax
rate of 25%, except for those company established in the below-mentioned districts.
Companies established in Hong Kong SAR are entitled to a profits tax rate of 16.5%.
VII. Notes on Major Items in Consolidated Financial Statements of the Company
1. Monetary Funds
Unit: RMB
Item Ending balance Beginning balance
Cash on hand 91,659.42 45,033.57
Bank deposits 617,310.41 2,468,303.12
Other monetary funds 483,189.81 442,862.69
Total 1,192,159.64 2,956,199.38
Other notes:
There was no any account pledged, frozen or with potential recovery risks of the Company at the
period-end.
2. Financial Assets at Fair Value through Profit or Loss
Unit: RMB
Item Ending balance Beginning balance
Trading financial assets 6,316.00
Equity tool investment 6,316.00
Total 6,316.00
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Other notes:
3. Derivative Financial Assets
□ Applicable √ Not applicable
4. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
(2) Notes Receivable Pledged by the Company at the Period-end
Unit: RMB
Item Pledged amount at the period-end
(3) Notes Receivable which had Endorsed by the Company or had Discounted and had not Due on the
Balance Sheet Date at the Period-end
Unit: RMB
Amount of recognition termination at the Amount of not terminated recognition at
Item
period-end the period-end
(4) Notes Transferred to Accounts Receivable Because Drawer of the Notes Fails to Executed the Contract
or Agreement
Unit: RMB
Item Transferred accounts receivable amount at the period-end
Other notes:
5. Accounts Receivable
(1) Accounts Receivable Disclosed by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category
Withdra Carrying Carrying
Proportio Proportio Withdrawal
Amount Amount wal value Amount Amount value
n n proportion
proportio
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
n
Accounts receivable
with significant
single amount for 9,935,92 9,935,92 9,864,7 9,864,799
28.02% 100.00% 0.00 5.87% 100.00% 0.00
which bad debt 8.89 8.89 99.03 .03
provision separately
accrued
Accounts receivable
withdrawal of bad
25,108,8 1,218,59 23,890,21 157,818 3,863,947 153,954,42
debt provision of by 70.81% 4.85% 93.88% 2.45%
07.83 7.07 0.76 ,372.40 .12 5.28
credit risks
characteristics:
Accounts receivable
with insignificant
single amount for 414,548. 414,548. 414,548 414,548.5
1.17% 100.00% 0.00 0.25% 100.00% 0.00
which bad debt 51 51 .51 1
provision separately
accrued
35,459,2 11,569,0 23,890,21 168,097 14,143,29 153,954,42
Total 100.00% 32.63% 100.00% 8.41%
85.23 74.47 0.76 ,719.94 4.66 5.28
Accounts receivable with single significant amount and withdrawal bad debt provision separately at end of period
√ Applicable □ Not applicable
Unit: RMB
Accounts receivable Ending balance
(classified by units) Account receivable Bad debt provision Withdrawal proportion Withdrawal reason
Long-term credit, the
Victoria
5,711,624.26 5,711,624.26 100.00% Company believe it
International(USA) INC
irrecoverable
Long-term credit, the
Hong Kong Jinhua Trade
4,224,304.63 4,224,304.63 100.00% Company believe it
Limited
irrecoverable
Total 9,935,928.89 9,935,928.89 -- --
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Ending balance
Aging
Account receivable Bad debt provision Withdrawal proportion
Sub-item within 1 year
Subtotal within 1 year 24,342,493.21 495,852.32 2.04%
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
1 to 2 years 39,012.61 3,095.17 7.93%
2 to 3 years 14,442.76 7,221.38 50.00%
Over 3 years 712,859.25 712,428.20 99.94%
Total 25,108,807.83 1,218,597.07 4.85%
Notes of confirming the basis of the groups:
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
(2) Accounts Receivable Withdraw, Reversed or Collected during the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB-2,574,220.19; the amount of the reversed
or collected part during the Reporting Period was of RMBXXX.
Significant amount of reversed or recovered bad debt provision:
Unit: RMB
Name of the entity Amount Method
(3) The Actual Write-off Accounts Receivable
Unit: RMB
Item Amount
Of which the significant write-off accounts receivable:
Unit: RMB
Whether produced
Name Nature Amount Reason Procedure by related
transaction
Notes of accounts receivable write-off:
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected According to the Arrears Party
Name Amount Bad debt provision Proportion %
Shanghai Zhaoke Trading Co., 24,214,993.65 484,299.87 68.29
Ltd
Victoria International(USA) INC 5,711,624.26 5,711,624.26 16.11
Hong Kong Jinhua Trade Limited 4,224,304.63 4,224,304.63 11.91
Hong Kong Heyi Co., Ltd 452,499.70 452,499.70 1.28
Guangzhou Chen Shunqin 335,904.80 335,904.80 0.95
Total 34,939,327.04 11,208,633.26 98.53
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
(5) Account Receivable which Terminate the Recognition Owning to the Transfer of the Financial Assets
Not applicable
(6) The Amount of the Assets and Liabilities Formed by the Transfer and the Continues Involvement of
Accounts Receivable
Not applicable
Other notes:
Not applicable
6. Prepayment
(1) List by Aging Analysis
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 2,520,536.01 100.00% 2,436,902.27 100.00%
Total 2,520,536.01 -- 2,436,902.27 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
(2) Top 5 of the Ending Balance of the Prepayment Collected According to the Prepayment Target
Name of the entity Ending amount Proportion (%) Time Reason
Shenzhen Minglong Trade 1,575,035.30 62.49 Y2017 The contract is not
Co.,Ltd fulfilled
Shenzhen Zhaokang Investment 313,656.70 12.44 Y2017 The contract is not
Co., Ltd fulfilled
Shanghai Jiancheng Trading Co., 216,323.59 8.58 Y2017 The contract is not
Ltd fulfilled
Alipay (China) Internet 120,000.00 4.76 Y2017 The contract is not
Technology Co., Ltd fulfilled
Mcs Outfitters (Shanghai) Limited 114,644.64 4.55 Y2017 The contract is not
fulfilled
Total 2,339,660.23 92.82 - -
Other notes:
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
7. Interest Receivable
(1) Category of Interest Receivable
Unit: RMB
Item Ending balance Beginning balance
(2) Significant Overdue Interest
Impairment or not and its
Borrowing unit Ending balance Time Reason
judgment basis
Other notes:
8. Dividend Receivable
(1) Dividend Receivable
Unit: RMB
Item (or investee unit) Ending balance Beginning balance
(2) Significant Dividend Receivable with Aging over 1 Year
Unit: RMB
Impairment or not and its
Item (or investee unit) Ending balance Aging Reason
judgment basis
Other notes:
9. Other Accounts Receivable
(1) Other Accounts Receivable Disclosed by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Withdra
Carrying Carrying
Proportio wal Proportio Withdrawal
Amount Amount value Amount Amount value
n proportio n proportion
n
Other accounts
receivable with 2,331,60 2,331,60 40,333, 2,331,608 38,002,013.
22.10% 100.00% 0.00 67.18% 5.78%
significant single 8.20 8.20 622.03 .20 83
amount for which
97
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
bad debt provision
separately accrued
Other accounts
receivable withdrawn
6,366,80 4,684,17 1,682,626 17,620, 4,870,739 12,749,579.
bad debt provision 60.34% 73.57% 29.35% 27.64%
6.33 9.74 .59 318.99 .74 25
according to credit
risks characteristics
Other accounts
receivable with
insignificant single 1,853,28 1,480,16 373,122.5 2,083,0 1,661,600
17.56% 79.87% 3.47% 79.77% 421,484.40
amount for which 3.38 0.81 7 85.21 .81
bad debt provision
separately accrued
10,551,6 8,495,94 2,055,749 60,037, 8,863,948 51,173,077.
Total 100.00% 80.52% 100.00% 14.76%
97.91 8.75 .16 026.23 .75 48
Other accounts receivable with single significant amount and withdrawal bad debt provision separately at end of period：
√ Applicable □ Not applicable
Unit: RMB
Ending balance
Other accounts
Other accounts
receivable (unit) Bad debt provision Withdrawal proportion Withdrawal reason
receivable
Long-term credit, the
Refund of tax for export
2,331,608.20 2,331,608.20 100.00% Company believe it
receivable
irrecoverable
Total 2,331,608.20 2,331,608.20 -- --
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Ending balance
Aging
Other accounts receivable Bad debt provision Withdrawal proportion
Sub-item within 1 year
Subtotal within 1 year 1,825,491.30 253,380.08 13.88%
1 to 2 years 90,941.50 9,094.15 10.00%
2 to 3 years 137,060.11 68,530.07 50.00%
Over 3 years 4,313,313.42 4,353,175.44 100.92%
Total 6,366,806.33 4,684,179.74 73.57%
Notes:
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision:
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
□ Applicable √ Not applicable
(2) Bad Debt Provision Withdrawal, Reversed or Collected during the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB-368,000.00; the amount of the reversed
or collected part during the Reporting Period was of RMBXXX.
Of which the significant amount of the reversed or collected part during the Reporting Period:
Unit: RMB
Name of the entity Reversed or collected amount Method
(3) The Actual Write-off Other Accounts Receivable
Unit: RMB
Item Amount
Of which the significant write-off other accounts receivable:
Unit: RMB
Whether produced
Name Nature Amount Reason Procedure by related
transaction
Notes of other accounts receivable write-off:
(4) Other Account Receivable Classified by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Petty cash 22,169.00 99,183.33
The cash pledge and guarantee 130,538.75 261,372.20
Payment on behalf 50,610.63 2,280,091.58
Intercourse funds 8,016,640.85 17,062,626.61
Bonus 0.00 38,002,013.83
Tax 2,331,738.68 2,331,738.68
Total 10,551,697.91 60,037,026.23
(5) Top 5 of the Ending Balance of the Other Accounts Receivable Collected According to the Arrears
Party
Unit: RMB
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Ending balance of
Name of the entity Nature Ending balance Aging Proportion%
bad debt provision
Refund of tax for
export Tax 2,331,608.20 Over 5 years 22.10% 2,331,608.20
receivable-VAT
Yu Liqun Intercourse funds 1,082,920.16 Within 1 year 10.26% 150,654.10
Suning Banhe
Chemical Fiber
Intercourse funds 800,000.00 Over 5 years 7.58% 800,000.00
Fabric Simulation
Co., Ltd.
Guangzhou Panyu
Tanzhou Zhenyu
Intercourse funds 800,000.00 Over 5 years 7.58% 800,000.00
Textile Printing and
Dyeing Co., Ltd
Guangdong
Yuanfeng Trade
Intercourse funds 700,000.00 Over 5 years 6.63% 700,000.00
Development Co.,
Ltd
Total -- 5,714,528.36 -- 54.16% 4,782,262.30
(6) Accounts Receivable Involved with Government Subsidies
Unit: RMB
Estimated time, amount
Name of the units Projects name Ending balance Ending aging
and basis
(7) Other Account Receivable which Terminate the Recognition Owning to the Transfer of the Financial
Assets
(8) The Amount of the Assets and Liabilities Formed by the Transfer and the Continues Involvement of
Other Accounts Receivable
Other notes:
10. Inventory
(1) Category of Inventory
Unit: RMB
Ending balance Beginning balance
Item
Carrying amount Falling price Carrying value Carrying amount Falling price Carrying value
100
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
reserves reserves
Raw materials 7,020,602.31 7,020,602.31 7,535,249.08 7,535,249.08
Inventory goods 155,167,125.25 155,167,125.25 152,530,909.16 152,530,909.16
Delivery
1,284,583.76 1,284,583.76
commodity
Total 162,187,727.56 162,187,727.56 161,350,742.00 161,350,742.00
Whether the Company needs to comply with the disclosure requirements of Shenzhen Stock Exchange Industry Information
Disclosure Guidelines No. 4 - Listed companies engaged in seed industry and planting business
No
(2) Falling Price Reserves of Inventory
Unit: RMB
Increase Decrease
Beginning
Item Reserve or Ending balance
balance Withdrawal Other Other
write-off
Not applicable
(3) Notes to Inventories with Capitalized Borrowing Expense in Ending Balance
Not applicable
(4) Complete but Unsettled Assets Generated from Construction Contract at the Period-end
Unit: RMB
Item Amount
Other notes:
Not applicable
11. Assets Classified as Held-for-sale
Unit: RMB
Estimated disposal
Item Ending carrying value Fair value Estimated disposal time
expense
Other notes:
12. Current Portion of Non-current Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes:
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
13. Other Current Assets
Unit: RMB
Item Ending balance Beginning balance
Input tax to be verified 24,258,479.69 23,930,553.25
Total 24,258,479.69 23,930,553.25
Other notes:
Ministry of Finance issued Regulations of VAT Accounting Treatment (CK [2016] No. 22) on 3
December 2016, which specifically required that debit balance at the period-end of classification
item, such as “VAT payable”, “unpaid VAT”, “input tax to be deducted”, and “input tax to be
verified” in the course of “tax payable” should be listed in the item of “other current assets” or
“other non-current assets” of balance sheet according to the situations. Credit balance at the
period-end of course, like “tax payable—tax to be written-off” should be listed in the item of “other
current liabilities” or “other non-current liabilities” of balance sheet according to the situations.
14. Available-for-sale Financial Assets
(1) List of Available-for-sale Financial Assets
Unit: RMB
Ending balance Beginning balance
Item Carrying Bad debt Carrying Bad debt
Carrying value Carrying value
amount provision amount provision
(2) Available-for-sale Financial Assets Measured by Fair Value at the Period-end
Unit: RMB
Category of the
Available-for-sale equity Available-for-sale debt
available-for-sale Total
instruments instruments
financial assets
(3) Available-for-sale Financial Assets Measured by Cost at the Period-end
Unit: RMB
Carrying amount Depreciation reserve Shareholdi Cash
ng bonus of
Investee Period-beg Period-beg proportion the
Increase Decrease Period-end Increase Decrease Period-end
inning inning in the Reporting
investee Period
102
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
(4) Changes in Depreciation of Available-for-sale Financial Assets during the Reporting Period
Unit: RMB
Category of the
Available-for-sale equity Available-for-sale debt
available-for-sale Total
instruments instruments
financial assets
(5) Notes to the Available-for-sale Equity Instrument with Serious Fall or Non-transient Fall in Ending Fair
Value but without Provisions for Impairment
Unit: RMB
Item of
Falling scope of Withdrawn Reason for not
available-for-sale Duration of
Investment cost Ending fair value fair value against impairment withdrawing the
equity falling (month)
the cost amount impairment
instruments
Other notes
15. Held-to-maturity Investment
(1) List of Held-to-maturity Investment
Unit: RMB
Ending balance Beginning balance
Item Depreciation Depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserves reserves
(2) Significant Held-to-maturity Investment at the End of the Period
Unit: RMB
Item Par value Coupon rate Actual interest rate Due date
(3) Re-classified Held-to-maturity Investment in the Current Period
Other notes
16. Long-term Receivables
(1) List of Long-term Receivables
Unit: RMB
Ending balance Beginning balance Interval of
Item
Carrying Bad debt Carrying value Carrying Bad debt Carrying value discount rate
103
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
amount provision amount provision
(2) Long-term Receivables Derecognized Due to the Transfer of Financial Assets
(3) Amount of Assets and Liabilities Generated from the Transfer and Continuous Involvement of
Long-term Receivables
Other notes
17. Long-term Equity Investment
Unit: RMB
Increase/decrease
Ending
Gains and Adjustme
Cash Withdraw balance
Additiona losses nt of
Beginnin Reduced Changes bonus or al of Ending of
Investees l recognize other
g balance investmen of other profits depreciati Other balance depreciati
investmen d under comprehe
t equity announce on on
t the equity nsive
d to issue reserves reserves
method income
I. Joint ventures
II. Associated enterprises
Shenzhen
Shenguor
ong 149,998,2 149,998,2
Financing 21.71 21.71
Guarantee
Co., Ltd.
Shenzhen
Future
Growing
Business 120,000,0 120,000,0
Fund 00.00 00.00
(Limited
Partnershi
p)
269,998,2 269,998,2
Subtotal
21.71 21.71
269,998,2 269,998,2
Total
21.71 21.71
Other notes
104
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
18. Investment Property
(1) Investment Property Adopting the Cost Measurement Mode
√ Applicable □ not applicable
Unit: RMB
Item Houses and buildings Land use right Construction in progress Total
I. Original carrying value
1. Beginning balance 12,054,800.79 3,403,805.28 15,458,606.07
2. Increased amount of
the period
(1) Outsourcing
(2) Transfer from
inventory\fixed
assets\construction in
progress
(3) Enterprise
combination increase
3. Decreased amount of
12,054,800.79 3,403,805.28 15,458,606.07
the period
(1) Disposal
(2) Other transfer 12,054,800.79 3,403,805.28 15,458,606.07
4. Ending balance
II. Accumulative
depreciation and
accumulative
amortization
1. Beginning balance 332,712.54 68,076.06 400,788.60
2. Increased amount of
the period
(1) Withdrawal or
amortization
3. Decreased amount of
332,712.54 68,076.06 400,788.60
the period
(1) Disposal
105
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
(2) Other transfer 332,712.54 68,076.06 400,788.60
4. Ending balance
III. Depreciation reserves
1. Beginning balance
2. Increased amount of
the period
(1) Withdrawal
3. Decreased amount of
the period
(1) Disposal
(2) Other transfer
4. Ending balance
IV. Carrying value
1. Ending carrying value
2. Beginning carrying
11,722,088.25 3,335,729.22 15,057,817.47
value
(2) Investment Property Adopting Fair Value Measurement Mode
□ Applicable √ not applicable
(3) Investment Property Failed to Accomplish Certification of Property
Unit: RMB
Item Carrying value Reason
Other notes
Part of properties for lease in former plant area has been recovered by the Company since 1 January
2018. From the recovery date on, houses and land accounted under investment property has been
transferred to fixed assets and intangible assets to account.
19. Fixed Assets
(1) List of Fixed Assets
Unit: RMB
106
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Electronic equipment and
Item Houses and buildings Transportation Total
others
I. Original carrying value
1. Beginning balance 63,369,239.17 3,638,278.11 1,824,047.93 68,831,565.21
2. Increased amount of
210,034.19 210,034.19
the period
(1) Purchase 210,034.19 210,034.19
(2) Transfer from
construction in progress
(3) Enterprise
combination increase
Other transfer 12,054,800.79 12,054,800.79
3. Decreased amount of
the period
(1) Disposal or Scrap
4. Ending balance 75,424,039.96 3,848,312.30 1,824,047.93 81,096,400.19
II. Accumulative
depreciation
1. Beginning balance 36,007,872.49 2,233,248.34 629,220.76 38,870,341.59
2. Increased amount of
1,331,245.44 183,316.30 167,567.44 1,682,129.18
the period
(1) Withdrawal 998,532.90 183,316.30 167,567.44 1,349,416.64
Other transfer 332,712.54 332,712.54
3. Decreased amount of
the period
(1) Disposal or Scrap
4. Ending balance 37,339,117.93 2,416,564.64 796,788.20 40,552,470.77
III. Depreciation reserves
1. Beginning balance
2. Increased amount of
the period
(1) Withdrawal
3. Decreased amount of
107
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
the period
(1) Disposal or Scrap
4. Ending balance
IV. Carrying value
1. Ending carrying value 38,084,922.03 1,431,747.66 1,027,259.73 40,543,929.42
2. Beginning carrying
27,361,366.68 1,405,029.77 1,194,827.17 29,961,223.62
value
(2) List of Temporarily Idle Fixed Assets
Unit: RMB
Original carrying Accumulative Impairment
Item Carrying value Note
value depreciation provision
Houses and
75,424,039.96 37,339,117.93 38,084,922.03 -
buildings
(3) Fixed Assets Leased in by Financing Lease
Unit: RMB
Accumulative
Item Original carrying value Impairment provision Carrying value
depreciation
(4) Fixed Assets Leased out by Operation Lease
Unit: RMB
Item Ending carrying value
(5) Fixed Assets Failed to Accomplish Certification of Property
Unit: RMB
Item Carrying value Reason
Other notes
①Depreciation of the Reporting Period was RMB1,349,416.64.
②Original price of fixed assets transferred from construction in progress in the Reporting Period
was RMB0.00.
③In Current Period, the particulars of fixed assets used as guaranties: on 30 June 2018, houses and
buildings with a carrying value of RMB19,270,301.23 (original value: RMB40,281,405.99) are
used to provide the pledge guarantee for Jieyang Rongcheng Branch of ICBC and Jieyang Branch
of ICBC. Please refer to Note XI-2-(1) for details.
108
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
20. Construction in Progress
(1) List of Construction in Progress
Unit: RMB
Ending balance Beginning balance
Item Depreciation Depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserves reserves
(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
Of
Proporti
which:
on of Accumul Capitaliz
amount
accumul ated ation rate
Transferr of
Beginnin Other ated amount of
Increase ed in Ending Job capitaliz Capital
Item Budget g decrease investme of interests
d amount fixed balance schedule ed resources
balance d amount nt in interest for the
assets interests
construct capitaliz Reportin
for the
ions to ation g Period
Reportin
budget
g Period
(3) List of the Withdrawal of the Impairment Provision for Construction in Progress
Unit: RMB
Item Amount withdrawn Reason for withdrawal
Other notes:
21. Engineering Materials
Unit: RMB
Item Ending balance Beginning balance
Other notes:
22. Proceeds from Disposal of Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes:
109
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
23. Productive Living Assets
(1) Productive Living Assets Adopting Cost Measurement Mode
□ Applicable √ Not applicable
(2) Productive Living Assets Adopting Fair Value Measurement Mode
□ Applicable √ Not applicable
24. Oil and Gas Assets
□ Applicable √ Not applicable
25. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
Item Land use right Patent right Non-patent right Computer software Total
I. Original carrying
value
1. Beginning balance 10,459,394.72 373,115.00 10,832,509.72
2. Increased amount
3,403,805.28 3,403,805.28
of the period
(1) Purchase
(2) Internal R&D
(3) Business
combination increase
(4) Other transfer 3,403,805.28 3,403,805.28
3. Decreased amount
of the period
(1) Disposal
4. Ending balance 13,863,200.00 373,115.00 14,236,315.00
II. Accumulated
amortization
1. Beginning balance 4,716,967.02 373,115.00 5,090,082.02
2. Increased amount
206,707.98 206,707.98
of the period
110
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
(1) Withdrawal 138,631.92 138,631.92
(2) Other transfer 68,076.06 68,076.06
3. Decreased amount
of the period
(1) Disposal
4. Ending balance 4,923,675.00 373,115.00 5,296,790.00
III. Depreciation
reserves
1. Beginning balance
2. Increased amount
of the period
(1) Withdrawal
3. Decreased amount
of the period
(1) Disposal
4. Ending balance
IV. Carrying value
1. Ending carrying
8,939,525.00 8,939,525.00
value
2. Beginning
5,742,427.70 5,742,427.70
carrying value
The proportion of intangible assets formed from the internal R&D of the Company at the Period-end to the ending balance of
intangible assets was XXX.
(2) Land Use Right with Certificate of Title Uncompleted
Unit: RMB
Item Carrying value Reason
Other notes:
①The amount of amortization of the Reporting Period was RMB138,631.92.
②The particulars of intangible assets used as guaranties: on 30 June 2018, a carrying value of RMB
8,939,525.00 (original value: RMB13,863,200.00) is used to provide a mortgage guarantee for
Jieyang Branch of ICBC. Please refer to Note XI-2-(1) for details.
(2) There Was No Land Use Right with Certificate of Title Uncompleted during the Reporting
Period
111
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
26. R&D Expense
Unit: RMB
Beginning Ending
Item Increase Decrease
balance balance
Other notes
27. Goodwill
(1) Original Carrying Value of Goodwill
Unit: RMB
Name of the
invested units or Beginning
Increase Decrease Ending balance
events generating balance
goodwill
SHENZHEN
CHINESE GOLD
NOBILITY 2,395,820.87 2,395,820.87
JEWELRY CO.,
LTD.
Total 2,395,820.87 2,395,820.87
(2) Impairment Provision for Goodwill
Unit: RMB
Name of the
invested units or Beginning
Increase Decrease Ending balance
events generating balance
goodwill
Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwill impairment losses:
After test, the recoverable goodwill was not less than RMB2,395,820.87, thus, the impairment
provision for goodwill would not been withdrawn in Reporting Period.
Other notes:
28. Long-term Prepaid Expense
Unit: RMB
Amortization Other decreased
Item Beginning balance Increased amount Ending balance
amount of the period amount
112
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Decoration expense 298,544.88 355,180.18 210,508.77 443,216.29
Total 298,544.88 355,180.18 210,508.77 443,216.29
Other notes:
29. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets that Had not Been Set-off
Unit: RMB
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for impairment
14,287,574.48 3,571,893.62 17,300,924.52 4,325,231.13
of assets
Trading financial assets 1,976.00 494.00
Total 14,287,574.48 3,571,893.62 17,302,900.52 4,325,725.13
(2) Deferred Income Tax Liabilities Had Not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set
Unit: RMB
Mutual set-off amount of Ending balance of Mutual set-off amount of Beginning balance of
deferred income tax deferred income tax deferred income tax deferred income tax
Item
assets and liabilities at assets or liabilities after assets and liabilities at assets or liabilities after
the period-end off-set the period-begin off-set
Deferred income tax
3,571,893.62 4,325,725.13
assets
(4) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
Item Ending balance Beginning balance
Deductible losses 40,742,265.03
Total 40,742,265.03
113
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets Will Be Due in the Following Years
Unit: RMB
Years Ending amount Beginning amount Notes
Y2017
Y2018 19,429,361.72 19,429,361.72
Y2019 14,209,131.72 14,209,131.72
Y2020 2,439,938.30 2,439,938.30
Y2021
Y2022 4,663,833.29 5,418,164.79
Total 40,742,265.03 41,496,596.53 --
Other notes:
30. Other Non-current Assets
Unit: RMB
Item Ending balance Beginning balance
Other notes:
31. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Notes of short-term borrowings category
(2) List of the Short-term Borrowings Overdue but Not Returned
The amount of the overdue unpaid short-term borrowings at the period-end was of RMBXXX, of which the significant overdue
unpaid short-term borrowings are as follows:
Unit: RMB
Borrower Ending balance Interest rate Overdue time Overdue charge rate
Other notes:
32. Financial Liabilities at Fair Value through Profit or Loss
Unit: RMB
Item Ending balance Beginning balance
Other notes:
114
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
33. Derivative Financial Liabilities
□ Applicable √ Not applicable
34. Notes Payable
Unit: RMB
Category Ending balance Beginning balance
The total amount of the due but not paid notes payable at the end of the period was of RMBXXX.
35. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Payment for goods 76,046,059.98 206,439,280.91
Rent 68,355.71
Total 76,046,059.98 206,507,636.62
(2) Significant Accounts Payable Aging over One Year
Unit: RMB
Item Ending balance Unpaid/ Un-carry-over reason
Other notes:
36. Advances from Customers
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
Payment for goods 11,209,141.53 11,433,013.53
Total 11,209,141.53 11,433,013.53
(2) Significant Advances from Customers Aging over One Year
Unit: RMB
Item Ending balance Unpaid/ Un-carry-over reason
115
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
(3) Settled but Uncompleted Projects Formed by Construction Contracts at the Period-end
Unit: RMB
Item Amount
Other notes:
37. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
I. Short-term salary 780,689.58 2,203,626.56 1,656,746.81 1,327,569.33
II. Post-employment
benefit-defined 8,155.00 117,801.54 115,995.30 9,961.24
contribution plans
Total 788,844.58 2,321,428.10 1,772,742.11 1,337,530.57
(2) List of Short-term Salary
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Salary, bonus,
776,758.58 1,980,342.54 1,435,451.01 1,321,650.11
allowance, subsidy
2. Employee welfare 125,365.70 125,365.70
3. Social insurance 3,931.00 56,794.32 55,516.10 5,209.22
Of which: 1. Medical
3,303.00 51,076.62 49,873.82 4,505.80
insurance premiums
Work-related injury
293.00 2,401.24 2,383.36 310.88
insurance
Maternity insurance 335.00 3,316.46 3,258.92 392.54
4. Housing fund 41,124.00 40,414.00 710.00
Total 780,689.58 2,203,626.56 1,656,746.81 1,327,569.33
(3) List of Defined Contribution Plans
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Basic pension benefits 7,946.00 113,578.78 111,874.78 9,650.00
116
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
2. Unemployment
209.00 4,222.76 4,120.52 311.24
insurance
Total 8,155.00 117,801.54 115,995.30 9,961.24
Other notes:
38. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 566,139.95 678,297.88
Corporate income tax 18,061,917.66 18,070,536.48
Business tax 781,313.74 781,313.74
Property tax 1,625,139.92 1,625,139.92
Land use tax 442,980.00 442,980.00
Other 2,139,575.87 1,719,530.03
Total 23,617,067.14 23,317,798.05
Other notes:
39. Interest Payable
Unit: RMB
Item Ending balance Beginning balance
List of the significant overdue unpaid interest:
Unit: RMB
Borrower Overdue amount Overdue reasons
Other notes:
40. Dividends Payable
Unit: RMB
Item Ending balance Beginning balance
Other notes, including significant dividends payable unpaid for over one year, the unpaid reason shall be disclosed:
41. Other Payables
(1) Other Payables Listed by Nature of Account
Unit: RMB
Item Ending balance Beginning balance
117
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Intercourse funds 39,122,861.74 49,006,606.49
Bonus margin 0.00 38,002,013.82
Payment on behalf 283,357.35 106,938.08
Rental bond 580,000.00 380,000.00
Other 1,191,296.98 926,921.31
Total 41,177,516.07 88,422,479.70
(2) Significant Other Payables Aging over One Year
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
Other notes
42. Liabilities Directly Associated with Assets Classified As Held-for-sale
Unit: RMB
Item Ending balance Beginning balance
Other notes:
Not applicable
43. Current Portion of Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Other notes:
Not applicable
44. Other Current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Increase/decrease of the short-term bonds payable:
Unit: RMB
Amortizat
Withdraw
ion of Repayme
The al of
Bonds Issuing Issuing Beginnin premium nt in the Ending
Par value Duration current interest
name date amount g balance and Reporting balance
issue by par
depreciati Period
value
on
Other notes:
118
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Not applicable
45. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Notes to the category of long-term borrowings:
Not applicable
Other notes, including the interval of interest rate:
Not applicable
46. Bonds Payable
(1) List of Bonds Payable
Unit: RMB
Item Ending balance Beginning balance
(2) Increase/Decrease of Bonds Payable (Excluding Other Financial Instrument Classified as Financial
Liabilities such as Preferred Shares and Perpetual Bonds)
Unit: RMB
(3) Notes to the Conditions and Time of the Shares Transfer of the Convertible Corporate Bonds
(4) Notes to Other Financial Instrument Classified as Financial Liabilities
Basic situation of other financial instrument such as preferred shares and perpetual bonds outstanding at the period-end
Changes in financial instrument such as preferred shares and perpetual bonds outstanding at the period-end
Unit: RMB
Outstanding Period-beginning Increase Decrease Period-end
financial Carrying Carrying Carrying Carrying
Amount Amount Amount Amount
instrument value value value value
Notes to basis for the classification of other financial instrument as financial liabilities
Other notes
119
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
47. Long-term Payables
(1) Long-term Payables Listed by Nature of Account
Unit: RMB
Item Ending balance Beginning balance
Other notes:
48. Long-term Payroll Payable
(1) List of Long-term Payroll Payable
Unit: RMB
Item Ending balance Beginning balance
(2) Changes in Defined Benefit Pension Schemes
Obligation present value of defined benefit pension schemes:
Unit: RMB
Item Reporting Period Same period of last year
Plan assets:
Unit: RMB
Item Reporting Period Same period of last year
Net liabilities (net assets) of defined benefit pension schemes:
Unit: RMB
Item Reporting Period Same period of last year
Notes of influence of content of defined benefit pension schemes and its relevant risks to the future cash flow, time and uncertainty of
the Company:
Notes to the significant actuarial assumptions and result of sensitivity analysis of defined benefit pension schemes:
Other notes:
49. Specific Payables
Unit: RMB
Reason for
Item Beginning balance Increase Decrease Ending balance
formation
Other notes:
50. Provisions
Unit: RMB
120
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Item Ending balance Beginning balance Reason for formation
Other notes, including notes to related significant assumptions and evaluation of significant provisions:
51. Deferred Income
Unit: RMB
Reason for
Item Beginning balance Increase Decrease Ending balance
formation
Items related to government subsidies:
Unit: RMB
Amount Amount
recorded into recorded into Amount
Amount of Related to
Beginning non-operatin other income offset cost in Other Ending
Item newly assets/related
balance g income in in the the Reporting changes balance
subsidy income
the Reporting Reporting Period
Period Period
Other notes:
52. Other Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Other notes:
53. Share Capital
Unit: RMB
Increase/decrease (+/-)
Beginning
New shares Bonus issue Ending balance
balance Bonus shares Other Subtotal
issued from profit
The sum of
318,600,000.00 318,600,000.00
shares
Other notes:
121
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
54. Other Equity Instrument
(1) The Basic Information of Other Financial Instruments such as Preferred Stock and Perpetual Bond
Outstanding at the End of the Period
(2) Changes in Financial Instruments such as Preferred Stock and Perpetual Bond Outstanding at the End
of the Period
Unit: RMB
Outstanding Period-beginning Increase Decrease Period-end
financial Carrying Carrying Carrying Carrying
Amount Amount Amount Amount
instruments value value value value
The current changes in other equity instrument and the corresponding reasons and the basis of the relevant accounting treatment:
Other notes:
55. Capital Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Capital premium
52,129,496.58 52,129,496.58
(premium on stock)
Other capital reserves 173,778.22 173,778.22
Total 52,303,274.80 52,303,274.80
Other notes, including changes and reason of change:
56. Treasury Shares
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Other notes, including changes and reason of change:
57. Other Comprehensive Income
Unit: RMB
Reporting Period
Less: recorded Attributable Attributable
Income
in other to owners to
Beginning before Less: Ending
Item comprehensive of the non-control
balance taxation in Income tax balance
income in Company ling
the Current expense
prior period as the interests
Period
and transferred parent after after tax
122
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
in profit or tax
loss in the
Current
Period
Other notes, including the adjustment of the effective gain/loss on cash flow hedges to the initial recognized amount:
58. Specific Reserve
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Other notes, including changes and reason of change:
59. Surplus Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Statutory surplus
49,036,260.20 49,036,260.20
reserves
Discretionary surplus
37,000,000.00 37,000,000.00
reserves
Total 86,036,260.20 86,036,260.20
Notes, including changes and reason of change:
60. Retained Earnings
Unit: RMB
Item Reporting Period Same period of last year
Beginning balance of retained earnings before
-104,447,877.20 -90,095,403.00
adjustments
Beginning balance of retained earnings after
-104,447,877.20 -90,095,403.00
adjustments
Add: Net profit attributable to owners of the
-5,004,199.91 -14,352,474.20
Company as the parent
Dividend of ordinary shares payable -109,452,077.11 -104,447,877.20
List of adjustment of beginning retained earnings:
(1) RMBXXX beginning retained earnings was affected by retrospective adjustment conducted according to the Accounting
Standards for Business Enterprises and relevant new regulations.
(2) RMBXXX beginning retained earnings was affected by changes in accounting policies.
(3) RMBXXX beginning retained earnings was affected by correction of significant accounting errors.
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
(4) RMBXXX beginning retained earnings was affected by changes in combination scope arising from same control.
(5) RMBXXX beginning retained earnings was affected totally by other adjustments.
61. Operating Revenue and Cost of Sales
Unit: RMB
Reporting Period Same Period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main operations 94,049,651.75 93,356,686.67 189,823,020.71 178,368,297.77
Other operations 637,064.14 166,356.27
Total 94,049,651.75 93,356,686.67 190,460,084.85 178,534,654.04
62. Taxes and Surtaxes
Unit: RMB
Item Reporting Period Same Period of last year
Consumption tax 268.68 4,062.05
Urban maintenance and construction tax 15,163.41 58,068.04
Education Surcharge 10,831.00 42,204.68
Property tax 55,745.82 294,029.30
Land use tax 90,045.00 120,060.00
Vehicle and vessel use tax 605.00
Stamp duty 323,955.00 135,759.49
Total 496,613.91 654,183.56
Other notes:
According to relevant provisions in “Provisions Concerning the Accounting Treatments on
Value -Added Tax” (Caikuai No. [2016] 22) published by Ministry of Finance, item “Business Tax
and Surcharges” in the income statement is adjusted to “Taxes and Surtaxes”. Property tax, land use
tax, vehicle and vessel use tax, stamp duty and relevant taxes, which were recorded into
administrative expense before, are now adjusted into the item “Taxes and Surtaxes” since 1 May
2016.
63. Selling Expense
Unit: RMB
Item Reporting Period Same Period of last year
Salary 449,769.85 669,390.73
Rent 225,225.21 270,270.29
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Software charge 31,162.92 216,912.77
Service charge 286,282.84
Social security premiums 33,122.20 44,068.52
Office expenses 24,066.51 28,406.15
Depreciation 12,936.11 16,854.16
Business travel charges 20,404.46 10,830.60
Business entertainment fees 49.50 14,088.40
Testing fees 0.00 1,810.00
Other 46,099.93 161,775.77
Total 1,129,119.53 1,434,407.39
Other notes:
64. Administrative Expense
Unit: RMB
Item Reporting Period Same Period of last year
Salary 1,365,644.18 1,262,796.56
Depreciation 1,336,480.53 1,126,680.42
Rental 343,057.27 578,986.10
Audit fee 405,000.00 411,527.23
Expense on securities affairs 312,000.00 110,800.00
Automobile expenses 101,306.53 335,203.77
Business travel charges 164,975.51 240,386.63
Water & electricity fees 119,384.11 140,232.92
Expense on financial consultant 800,000.00 325,000.00
Membership fees for the Board of
197,500.00 197,500.00
Directors and Supervisory Committee
Office expenses 87,482.30 222,043.08
Entertainment expenses 68,099.86 243,390.31
Welfare fees 122,010.60 130,867.38
Social security premiums 150,289.59 134,483.43
Expense on evaluation 0.00 350,000.00
Amortization of intangible assets 138,631.92 138,631.92
Other 384,732.66 1,375,973.82
Total 6,096,595.06 7,324,503.57
Other notes:
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
65. Finance Costs
Unit: RMB
Item Reporting Period Same Period of last year
Interest expense 30,666.37 605,207.50
Less: Interest income 4,716.00 88,059.03
Foreign exchange profit or loss 30,810.86 -224,258.95
Handling charge and other 6,953.09 17,644.59
Total 63,714.32 310,534.11
Other notes:
66. Asset Impairment Loss
Unit: RMB
Item Reporting Period Same Period of last year
I. Bad debt loss -2,942,220.19 -411,560.62
Total -2,942,220.19 -411,560.62
Other notes:
67. Gain on Changes in Fair Value
Unit: RMB
Sources Reporting Period Same period of last year
Financial assets at fair value through profit
0.00 -5,539,925.21
or loss
Total 0.00 -5,539,925.21
Other note:
68. Investment Income
Unit: RMB
Item Reporting Period Same Period of last year
Long-term equity investment income
17,054.22
accounted by equity method
Investment income from disposal of long-term
536.00 16,240.55
equity investment
Total 536.00 33,294.77
Other notes:
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
69. Asset Disposal Income
Unit: RMB
Sources Reporting Period Same period of last year
70. Other Income
Unit: RMB
Sources Reporting Period Same period of last year
71. Non-operating Income
Unit: RMB
Amount recorded in the current
Item Reporting Period Same Period of last year
non-recurring profit or loss
Other 600,000.00 0.33 600,000.00
Total 600,000.00 0.33
Government subsidies recorded into current profit or loss
Unit: RMB
Whether
influence the Specific Related to
Distribution Distribution Reporting Same period
Item Nature profits or subsidy or assets/related
entity reason Period of last year
losses of the not income
year or not
Other notes:
“Other” was mainly compensation income for default.
72. Non-operating Expense
Unit: RMB
Amount recorded in the current
Item Reporting Period Same Period of last year
non-recurring profit or loss
Penalty and fine for delaying
189,007.15 -2,404.16 189,007.15
payment
Total 189,007.15 2,404.16
Other notes:
“Other” was mainly expense on compensation for default.
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
73. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
Item Reporting Period Same Period of last year
Current income tax expense 14,909.91 2,269,232.61
Deferred income tax expense 753,831.51 37,800.00
Total 768,741.42 2,307,032.61
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Reporting Period
Profit before taxation -3,739,328.70
Current income tax expense accounted at statutory/applicable tax
-934,832.18
rate
Influence of deductable loss of unrecognized deferred income tax
-3,013,350.05
assets in prior period
Influence of deductable temporary difference or deductable
losses of unrecognized deferred income tax in the Reporting 4,664,333.29
Period
Income tax expense 768,741.42
Other notes
It is unnecessary for Tianrui (HK) Trading Co., Ltd. to pay the corporate income tax since it is an
overseas company. Therefore, other event refers to the adjustment of current income tax expense by
Tianrui (HK) Trading Co., Ltd.
74. Other Comprehensive Income
Refer to Note for details.
75. Cash Flow Statement
(1) Cash Generated from Other Operating Activities
Unit: RMB
Item Reporting Period Same Period of last year
Other intercourse funds received 31,982,807.35 30,187,830.43
Accounts generated from operating 157,699.37 5,110,790.78
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
activities
Total 32,140,506.72 35,298,621.21
Notes:
(2) Cash Used in Other Operating Activities
Unit: RMB
Item Reporting Period Same Period of last year
Other intercourse funds paid 27,851,000.00 19,500,000.00
Commission paid such as audit fee 2,205,000.00 356,000.00
Expense used in operating activities 2,106,181.12 5,078,811.29
Total 32,162,181.12 24,934,811.29
Notes:
(3) Cash Generated from Other Investing Activities
Unit: RMB
Item Reporting Period Same Period of last year
Notes:
Not applicable
(4) Cash Used in Other Investing Activities
Unit: RMB
Item Reporting Period Same Period of last year
Notes:
Not applicable
(5) Cash Generated from Other Financing Activities
Unit: RMB
Item Reporting Period Same Period of last year
Notes:
Not applicable
(6) Cash Used in Other Financing Activities
Unit: RMB
Item Reporting Period Same Period of last year
Notes:
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Not applicable
76. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB
Supplemental information Reporting Period Same period of last year
1. Reconciliation of net profit to net cash
-- --
flows generated from operating activities
Net profit -4,508,070.12 -5,202,704.08
Add: Provision for impairment of assets -2,942,220.19
Depreciation of fixed assets, oil-gas assets,
1,349,416.64 1,309,890.85
and productive living assets
Amortization of intangible assets 138,631.92 138,631.92
Amortization of long-term prepaid expenses 210,508.77
Losses on changes in fair value (gains:
5,539,925.21
negative)
Investment loss (gains: negative) -536.00 -33,294.77
Decrease in deferred income tax assets
753,831.51 37,800.00
(gains: negative)
Decrease in inventories (gains: negative) -836,985.56 -39,615,980.25
Decrease in accounts receivable generated
227,104,771.45 65,800,489.84
from operating activities (gains: negative)
Increase in accounts payable used in
-222,475,025.79 -25,183,016.54
operating activities (decrease: negative)
Other -14.06 341,132.27
Net cash generated from/used in operating
-1,205,691.43 3,132,874.45
activities
2. Significant investing and financing
activities without involvement of cash -- --
receipts and payments
3. Net increase/decrease of cash and cash
-- --
equivalent:
Ending balance of cash 1,192,159.64 7,018,207.88
Less: beginning balance of cash 2,956,199.38 123,886,976.82
Net increase in cash and cash equivalents -1,764,039.74 -116,868,768.94
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
(2) Net Cash Paid For Acquisition of Subsidiaries
Unit: RMB
Amount
Of which: --
Of which: --
Of which: --
Other notes:
(3) Net Cash Receive from Disposal of the Subsidiaries
Unit: RMB
Amount
Of which: --
Of which: --
Of which: --
Other notes:
(4) Cash and Cash Equivalent
Unit: RMB
Item Ending balance Beginning balance
I. Cash 1,192,159.64 2,956,199.38
Including: Cash on hand 91,659.42 525,024.48
Bank deposit on demand 617,310.41 6,491,008.82
Other monetary assets on demand 483,189.81 2,174.58
III. Ending balance of cash and cash
1,192,159.64 2,956,199.38
equivalents
Other notes:
77. Notes to Items of the Statements of Changes in Owners’ Equity
Notes to the name of “Other” of ending balance of the same period of last year adjusted and the amount adjusted:
78. Assets with Restricted Ownership or Right to Use
Unit: RMB
Item Ending carrying value Reason for restriction
Fixed assets 19,270,301.23 External guaranty
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Intangible assets 8,939,525.00 External guaranty
Total 28,209,826.23 --
Other notes:
79. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
Ending foreign currency Ending balance converted to
Item Exchange rate
balance RMB
Monetary assets -- --
Including: USD 64.28 6.6166 425.32
EUR
HKD 851.75 0.8431 718.11
Accounts receivable -- --
Including: USD 901,781.63 6.6166 5,966,728.33
EUR
HKD
Long-term borrowings -- --
Including: USD
EUR
HKD
Other receivables
Including: USD 20,000.00 6.6166 132,332.00
EUR
HKD 55,780.00 0.8431 47,028.12
Other notes:
(2) Notes to Overseas Entities Including: for Significant Oversea Entities, Main Operating Place, Recording
Currency and Selection Basis Shall Be Disclosed; if there Are Changes in Recording Currency, Relevant
Reasons Shall Be Disclosed.
□ Applicable √ Not applicable
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
80. Arbitrage
Qualitative and quantitative information of relevant arbitrage instruments, hedged risk in line with the type of arbitrage to disclose:
81. Other
VIII. Changes of Consolidation Scope
1. Business Combination Not under the Same Control
(1) Business Combination Not under the Same Control during the Reporting Period
Unit: RMB
Income of Net profits of
Time and
Cost of Recognition acquiree from acquiree from
Name of place of Proportion of Way to gain
gaining the Purchase date basis of the purchase the purchase
acquiree gaining the equity the equity
equity purchase date date to date to
equity
period-end period-end
Other notes:
Not applicable
(2) Combination Cost and Goodwill
Unit: RMB
Combination cost
Note to determination method of the fair value of the combination cost, consideration and changes:
Not applicable
The main formation reason for the large goodwill:
Not applicable
Other notes:
Not applicable
(3) The Identifiable Assets and Liabilities of Acquiree on Purchase Date
Unit: RMB
Fair value on purchase date Carrying value on purchase date
The determination method of the fair value of identifiable assets and liabilities
Not applicable
Contingent liability of acquiree undertaken in the business combination
Not applicable
Other notes:
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Not applicable
(4) Gains or losses from Re-measurement of Equity Held before the Purchase Date at Fair Value
Whether there is a transaction that through multiple transaction step by step to realize business combination and gaining the control
during the Reporting Period
□ Yes √ No
(5) Notes to Reasonable Consideration or Fair Value of Identifiable Assets and Liabilities of the Acquiree
that Cannot Be Determined on the Acquisition Date or during the Period-end of the Merger
Not applicable
(6) Other Notes
Not applicable
2. Business Combination under the Same Control
(1) Business Combination under the Same Control during the Reporting Period
Unit: RMB
Income from Net profits
the from the Income of the Net profits of
Recognition
period-begin period-begin acquiree the acquiree
Combined Proportion of Combination basis of
Basis ning to the ning to the during the during the
party the equity date combination
combination combination period of period of
date
date of the date of the comparison comparison
acquiree acquiree
Other notes:
(2) Combination Cost
Unit: RMB
Combination cost
Note to contingent consideration and other changes:
Other notes:
(3) The Carrying Value of Assets and Liabilities of the Combined Party on the Combination Date
Unit: RMB
Combination date Period-end of the last period
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Contingent liabilities of the combined party undertaken in the business combination
Other notes:
3. Counter Purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of the listed companies
whether constituted a business and its basis, the determination of the combination costs, the amount and calculation of adjusted rights
and interests in accordance with the equity transaction process:
4. The Disposal of Subsidiary
Whether there is a single disposal of the investment to the subsidiary and lost control?
□ Yes √ No
Whether there are several disposals of the investment to the subsidiary and lost controls?
□ Yes √ No
5. Changes in Combination Scope for Other Reasons
Note to changes in combination scope for other reasons (such as newly establishment or liquidation of subsidiaries, etc.) and relevant
information:
6. Other
IX. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Main operating Nature of Holding percentage (%)
Name Registration place Way of gaining
place business Directly Indirectly
Shenzhen Rieys
Industrial Co., Shenzhen Shenzhen Trading 90.00% Set-up
Ltd.
TIANRUI (HK)
TRADING
Hong Kong Hong Kong Trading 100.00% Merger
COMPANY
LIMITED
Shenzhen
Chinese Gold Sales of gold
Shenzhen Shenzhen 51.00% Merger
Nobility Jewelry jewelry
Co., Ltd.
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Technical service,
Shanghai development,
Yunpeng Network consulting,
Shanghai Shanghai 60.00% Set-up
Technology Co., transfer of
Ltd. network
technology etc.
Business
management
service, R&D,
technical service,
Wuxi Yunpeng
consulting and
Business
Wuxi Wuxi transfer of 60.00% Set-up
Management Co.,
network
Ltd.
technology, ICT,
and computer
software &
hardware
Notes: holding proportion in subsidiary different from voting proportion:
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the voting rights not been
controlled investee:
Basis for control over significant structured entities included into the combination scope:
Basis of determining whether the Company is the agent or the principal:
Other notes:
(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
Shareholding proportion The profit or loss Declaring dividends Balance of
Name of non-controlling attributable to the distributed to non-controlling interests
interests non-controlling interests non-controlling interests at the period-end
Shenzhen Rieys
10.00% 10.00 -341.29
Industrial Co., Ltd.
Shenzhen Chinese Gold
Nobility Jewelry Co., 49.00% 49.00 496,471.07
Ltd.
Holding proportion in subsidiary different from voting proportion:
Other notes:
(3) The Main Financial Information of Significant Non-wholly-owned Subsidiary
Unit: RMB
136
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Ending balance Beginning balance
Non-curr Non-curr Non-curr Non-curr
Name Current Total Current Total Current Total Current Total
ent ent ent ent
assets assets liabilities liabilities assets assets liabilities liabilities
assets liability assets liability
Shenzhe
n Rieys
29,051,7 1,721,13 30,772,8 1,024,64 1,024,64 37,993,6 37,993,6 39,852,5 10,100,8 10,100,8
Industria
47.52 4.57 82.09 2.85 2.85 75.26 75.26 34.33 82.25 82.25
l Co.,
Ltd.
Shenzhe
n
Chinese
182,570, 108,781. 182,678, 104,826, 104,826, 315,002, 784,465. 315,787, 238,947, 238,947,
Gold
093.91 02 874.93 073.66 073.66 707.66 20 172.86 577.86 577.86
Nobility
Jewelry
Co., Ltd.
Unit: RMB
Reporting Period Same period of last year
Cash flows Cash flows
Total Total
Name Operating from Operating from
Net profit comprehensi Net profit comprehensi
revenue operating revenue operating
ve income ve income
activities activities
Shenzhen
Rieys 89,128,220.1 -12,980,220.1
5,003.08 -3,412.84 -3,412.84 -110,146.16 -8,833,285.83 -8,833,285.83
Industrial 2 9
Co., Ltd.
Shenzhen
Chinese Gold
92,842,690.9 471,002,217.
Nobility 1,013,206.27 1,013,206.27 -86,327.48 6,943,906.77 6,943,906.77 67,927.52
5 43
Jewelry Co.,
Ltd.
Other notes:
(4) Significant Restrictions on Using the Assets and Liquidating the Liabilities of the Company
(5) Financial Support or Other Supports Provided to Structural Entities Incorporated into the Scope of
Consolidated Financial Statements
Other notes:
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
2. The Transaction of the Company with Its Owner’s Equity Share Changed but Still Controlling the
Subsidiary
(1) Note to the Owner’s Equity Share Changed in Subsidiary
(2) The Transaction’s Influence on the Equity of Non-controlling Interests and the Owner's Equity
Attributable to the Company as the Parent
Unit: RMB
Other notes
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
Holding percentage (%) Accounting
treatment of the
Main operating Nature of investment to
Name Registration place
place business Directly Indirectly joint venture or
associated
enterprise
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting rights but does not
have a significant impact:
(2) Main Financial Information of Significant Joint Ventures
Unit: RMB
Beginning balance/The same period of last
Ending balance/Reporting Period
year
Other notes
(3) Main Financial Information of Significant Associated Enterprise
Unit: RMB
Beginning balance/The same period of last
Ending balance/Reporting Period
year
Other notes
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Unit: RMB
Beginning balance/The same period of last
Ending balance/Reporting Period
year
Joint venture: -- --
The total of following items according to the
-- --
shareholding proportions
Associated enterprise: -- --
The total of following items according to the
-- --
shareholding proportions
Other notes
(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises to
Transfer Funds to the Company
(6) The Excess Loss of Joint Ventures or Associated Enterprises
Unit: RMB
The cumulative recognized The derecognized losses (or the
The accumulative unrecognized
Name losses in previous share of net profit) in Reporting
losses in Reporting Period
accumulatively derecognized Period
Other notes
(7) The Unrecognized Commitment Related to Investment to Joint Ventures
(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated Enterprises
4. Significant Common Operation
Proportion /share portion
Name Main operating place Registration place Nature of business
Directly Indirectly
Notes to holding proportion or share portion in common operation different from voting proportion:
For common operation as a single entity, basis of being classified as common operation:
Other notes
5. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial Statements
Notes to the structured entity excluded in the scope of consolidated financial statements:
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
6. Other
X. The Risk Related to Financial Instruments
XI. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
Ending fair value
Item Fair value measurement Fair value measurement Fair value measurement
Total
items at level 1 items at level 2 items at level 3
I. Consistent fair value
-- -- -- --
measurement
II. Inconsistent fair value
-- -- -- --
measurement
2. Market Price Recognition Basis for Consistent and Inconsistent Fair Value Measurement Items at Level
1
3. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters for
Consistent and Inconsistent Fair Value Measurement Items at Level 2
4. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters for
Consistent and Inconsistent Fair Value Measurement Items at Level 3
5. Sensitiveness Analysis on Unobservable Parameters and Adjustment Information between Beginning and
Ending Carrying Value of Consistent Fair Value Measurement Items at Level 3
6. Explain the Reason for Conversion and the Governing Policy when the Conversion Happens if
Conversion Happens among Consistent Fair Value Measurement Items at Different Levels
7. Changes in the Valuation Technique in the Current Period and the Reason for Such Changes
8. Fair Value of Financial Assets and Liabilities Not Measured at Fair Value
9. Other
XII. Connected Party and Connected Transaction
1. Information Related to the Company as the Parent of the Company
Name Registration place Nature of business Registered capital Proportion of share Proportion of voting
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
held by the rights owned by the
Company as the Company as the
parent against the parent against the
Company (%) Company (%)
Room 1611-A, E
Building, West Sea
Shenzhen
Pearl Garden,
Shenghengchang
Taoyuan Road, Trading 9800 36.99% 36.99%
Huifu Industrial Co.,
Taoyuan Street,
Ltd.
Nanshan District,
Shenzhen
Notes to information on the Company as the parent of the Company:
There was no change in the registered capital of the Company as the parent during the Reporting
Period.
The final controller of the Company was Chen Hongcheng.
Other notes:
2. Subsidiaries of the Company
Refer to Note VIII. 1-Equity in Subsidiaries for details.
3. Information on the Joint Ventures and Associated Enterprises of the Company
Refer to Note for details of significant joint ventures or associated enterprises of the Company.
Information on other joint venture or associated enterprise occurring connected transactions with the Company in Reporting Period,
or forming balance due to connected transactions made in previous period:
Name Relationship with the Company
Other notes:
4. Information on Other Connected Parties
Name Relationship with the Company
The shareholder holding 10.68% shares of the Company and the
Shenzhen Risheng Chuangyuan Asset Management Co., Ltd.
affiliated enterprise controlled by Chen Hongcheng
The shareholder holding 3.81% shares of the Company and the
Shenzhen Lianhua Huiren Industrial Co., Ltd.
affiliated enterprise controlled by Chen Hongcheng’s relatives
Chen Xuewen Direct relative of Chen Hongcheng
Board Chairman of the Company and relative of Chen
Ding Lihong
Hongcheng
141
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Key management personnel of the Company and shareholder of
Yu Liqun
subsidiary
Actually controlled by the key management personnel of the
Wuxi Hengye Technology Co., Ltd.
Company
Shenzhen Chinese Gold Nobility Jewelry Co., Ltd. Shareholder of subsidiary
Other notes
5. List of Connected Transactions
(1) Information on Acquisition of Goods and Reception of Labor Service
Information on acquisition of goods and reception of labor service
Unit: RMB
The approval trade Whether exceed trade Same period of last
Connected party Content Reporting Period
credit credit or not year
Information of sales of goods and provision of labor service
Unit: RMB
Connected party Content Reporting Period Same period of last year
Wuxi Hengye Technology Co.,
Operation service 432,737.28 441,967.71
Ltd.
Notes
(2) Information on Connected Trusteeship/Contract
Lists of related trusteeship/contract:
Unit: RMB
Name of the Name of the Income
entruster/contract entrustee/ Type Start date Due date Pricing basis recognized in this
ee contractor Reporting Period
Notes
Lists of entrust/contractee:
Unit: RMB
Name of the Name of the Charge
entruster/contract entrustee/ Type Start date Due date Pricing basis recognized in this
ee contractor Reporting Period
Notes
(3) Information on Connected Lease
The Company was lessor:
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Unit: RMB
The lease income confirmed in The lease income confirmed in
Name of lessee Category of leased assets
the Reporting Period the same period of last year
The Company was lessee:
Unit: RMB
The lease fee confirmed in the The lease fee confirmed in the
Name of lessor Category of leased assets
Reporting Period same period of last year
Notes
(4) Information on Connected Guarantee
The Company was guarantor:
Unit: RMB
Execution accomplished
Secured party Guarantee amount Start date End date
or not
The Company was secured party
Unit: RMB
Execution accomplished
Guarantor: Guarantee amount Start date End date
or not
Notes
(5) Information on Inter-bank Lending of Capital of Connected Parties
Unit: RMB
Connected party Amount Start date End date Note
Borrowing
Lending
(6) Information on Assets Transfer and Debt Restructuring by Connected Party
Unit: RMB
Connected party Content Reporting period Same period of last year
(7) Information on Remuneration for Key Management Personnel
Unit: RMB
Item Reporting period Same period of last year
Remuneration for key management
360,000.00 337,000.00
personnel
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
(8) Other Connected Transactions
6. Accounts Receivable and Payable of Connected Party
(1) Accounts Receivable
Unit: RMB
Ending balance Beginning balance
Item Connected party
Carrying amount Bad debt provision Carrying amount Bad debt provision
Wuxi Hengye
Accounts receivable 76,783.68 380,036.66
Technology Co., Ltd.
Other receivables Yu Liqun 1,082,920.16 150,654.10
(2) Accounts Payable
Unit: RMB
Item Connected party Ending carrying amount Beginning carrying amount
Other payables
Ding Lihong 193,771.70 68,455.00
Yu Liqun 82,652.04 82,652.04
Chen Xuewen 387,699.54 251,608.91
Wuxi Hengye Technology Co.,
100,000.00 100,000.00
Ltd.
Shenzhen Risheng Chuangyuan
20,960.00 3,630,960.00
Asset Management Co., Ltd.
Shenzhen Chinese Gold
Nobility Jewelry Co., Ltd. 17,699,000.00 17,500,000.00
Jewelry Co., Ltd.
7. Commitments of Connected Party
No such cases in the Reporting Period.
8. Other
XIII. Stock Payment
1. The Overall Situation of Stock Payment
□ Applicable √ Not applicable
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
2. The Stock Payment Settled in Equity
□ Applicable √ Not applicable
3. The Stock Payment Settled in Cash
□ Applicable √ Not applicable
4. Modification and Termination of the Stock Payment
Nil
5. Other
Not applicable
XIV. Commitments and Contingency
1. Significant Commitments
Significant commitments on the balance sheet date
As of 30 June 2018, there was no significant commitment for the Company to disclose.
2. Contingency
(1) Significant Contingency on Balance Sheet Date
A. Contingent Liabilities Generated from Providing Debt Guarantee for Other Entities and their Financial Impacts
①The Company provided the mortgage guarantee for the loan contract of maximum amount (RCZH2014GDZNo.3632, duration: 11
Nov. 2014-11 Nov. 2019) signed by Puning Huafengqiang Trading Co., Ltd. with Jieyang Rongcheng Branch of ICBC pledged by
the real estate (with evaluation of RMB36.32 million). On 17 November 2016, Puning Huafengqiang Trading Co., Ltd. signed with
Jieyang Rongcheng Branch of ICBC the renewal loan contract of RMB15 million with the duration of six months. When the said
loan expired, RMB17 million was renewed on 22 May 2017 with a loan contract of 12 months. Puning Huafengqiang Trading Co.,
Ltd. provided a counter guarantee with this borrowing for the Company. As of 20 May 2018, Puning Huafengqiang Trading Co., Ltd.
has paid off the aforesaid borrowing of RMB17 million.
②The Company provided the mortgage guarantee for the loan contract of maximum amount (0201900134-2017XQ[D]ZNo.0042;
duration: 8 Sep. 2017-8 Sep. 2022) signed by Puning Lailisheng Trading Co., Ltd. with Jieyang Branch of ICBC pledged by the real
estate (with evaluation of RMB47,704,862). On 8 September 2017, Puning Lailisheng Trading Co., Ltd. signed the small-business
loan contract of RMB24 million with Jieyang Branch of ICBC with the duration of 12 months. Puning Lailisheng Trading Co., Ltd.
provided a counter guarantee with this borrowing for the Company.
As of 30 June 2018, the guarantees provided by the Company for loans by non-connected parties were listed as follows:
Secured party Event Amount (RMB’0,000) Duration Note
Puning Lailisheng Trading Co., Pledge for bank 2,400.00 8 Sep. 2017 to 8 Sep.
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Ltd. borrowings 2018
Total - 2,400.00 - -
B. As of 30 June 2018, there was no contingency such as pending action or guarantee etc. for the Company to disclose.
As of 30 June 2018, there was no other contingency for the Company to disclose other than the above-mentioned contingencies.
(2) In Despite of no Significant Contingency to Disclose, the Company Shall Also Make Relevant
Statements
There was no significant contingency for the Company to disclose.
3. Other
XV. Events after Balance Sheet Date
1. Significant Non-adjusted Events
Unit: RMB
Influence number to the
Reason of inability to estimate
Item Content financial position and operating
influence number
results
2. Profit Distribution
Unit: RMB
3. Sales Return
4. Notes to Other Events after Balance Sheet Date
As of 27 August 2018 (Approval date of the Interim Report by the Board), there was no other event
after balance sheet date for the Company to disclose.
XVI. Other Significant Events
1. The Accounting Errors Correction in Previous Period
(1) Retrospective Restatement
Unit: RMB
Name of the influenced report
Content Processing program accumulative impact
items during comparison period
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
(2) Prospective Application
Reason for adopting prospective
Content Processing program
application
2. Debt Restructuring
Not applicable
3. Assets Replacement
(1) Non-monetary Assets Exchange
Not applicable
(2) Other Assets Replacement
Not applicable
4. Pension Plan
Not applicable
5. Discontinued Operations
Unit: RMB
Profit from
discontinued
operations
Profit before Income tax
Item Income Expense Net profit attributable to
taxation expense
owners of the
Company as the
parent
Other notes
Not applicable
6. Segment Information
(1) Determination Basis and Accounting Policies of Reportable Segment
Not applicable
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
(2) The Financial Information of Reportable Segment
Unit: RMB
Item Offset among segment Total
(3) If there Was no Reportable Segment, or the Total Amount of Assets and Liabilities of Each Reportable
Segment Could not Be Reported, Relevant Reasons Shall Be Clearly Stated
Not applicable
(4) Other Notes
Not applicable
7. Other Significant Transactions and Events with Influence on Investors’ Decision-making
Not applicable
8. Other
In accordance with the Note XI-2-(1), the Company provided a mortgage guarantee for the borrowing by Puning Lailisheng Trading
Co., Ltd. from Jieyang Branch of ICBC pledge by real estate. In line with the counter guarantee agreement signed by the Company
with Puning Lailisheng Trading Co., Ltd., the latter shall provide a counter guarantee for the Company with the borrowing. As of 30
June 2018, RMB750,000.00 of counter guarantee has been received from Puning Lailisheng Trading Co., Ltd.
As of 0 June 2018, there was no other significant event for the Company to disclose.
XVII. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable
(1) Accounts Receivable Disclosed by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Withdra
Carrying Carrying
Proportio wal Proportio Withdrawal
Amount Amount value Amount Amount value
n proportio n proportion
n
Accounts receivable
with significant 4,608,27 4,608,27 4,608,2 4,608,276
100.00% 100.00% 0.00 100.00% 100.00% 0.00
single amount for 6.88 6.88 76.88 .88
which bad debt
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
provision separately
accrued
4,608,27 4,608,27 4,608,2 4,608,276
Total 100.00% 100.00% 100.00% 100.00%
6.88 6.88 76.88 .88
Accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end:
√ Applicable □ Not applicable
Unit: RMB
Accounts receivable（by Ending balance
unit） Accounts receivable Bad debt provision Withdrawal proportion Withdrawal reason
Long-term credit, the
Capital airport 21,713.00 21,713.00 100.00% Company believe it
irrecoverable
Long-term credit, the
Ningbo Industrial and
26,354.45 26,354.45 100.00% Company believe it
Commercial Bureau
irrecoverable
Long-term credit, the
Chen Shunqin 335,904.80 335,904.80 100.00% Company believe it
irrecoverable
Long-term credit, the
Hong Kong Jinhua
4,224,304.63 4,224,304.63 100.00% Company believe it
Trading Company
irrecoverable
Total 4,608,276.88 4,608,276.88 -- --
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMBXXX; the amount of the reversed or
collected part during the Reporting Period was of RMBXXX.
Of which the bad debt provision reversed or recovered with significant amount in the Reporting Period:
Unit: RMB
Name of the entity Amount Way of recovery
(3) Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
Item Amount verified
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Of which the verification of significant accounts receivable:
Unit: RMB
Verification Whether generated
Reason for
Name Nature Amount verified procedures from connected
verification
performed transactions
Notes:
(4) Top 5 Accounts Receivable in Ending Balance Collected according to the Arrears Party
Name Ending balance Bad debt provision with Proportion to tot
drawn al accounts recei
vable (%)
Capital airport 21,713.00 21,713.00 0.47
Ningbo Industrial and 26,354.45 26,354.45 0.57
Commercial Bureau
Chen Shunqin 335,904.80 335,904.80 7.29
Hong Kong Jinhua Trading 4,224,304.63 4,224,304.63 91.67
Company
Total 4,608,276.88 4,608,276.88 100.00
(5) Accounts Receivable Derecognized due to the Transfer of Financial Assets
(6) The Amount of Assets and Liabilities Generated from the Transfer and the Continued Involvement of
Accounts Receivable
Other notes:
2. Other Receivables
(1) Other Receivables Disclosed by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Withdra
Carrying Carrying
Proportio wal Proportio Withdrawal
Amount Amount value Amount Amount value
n proportio n proportion
n
Other receivables 22,636,6 2,931,60 19,705,07 68,645, 2,931,608 65,714,027.
87.36% 12.95% 94.95% 4.27%
with significant 87.23 8.20 9.03 635.74 .20 54
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
single amount for
which bad debt
provision separately
accrued
Other receivables
withdrawn bad debt
1,795,49 1,293,73 501,755.3 2,176,1 1,661,739
provision according 6.93% 72.05% 3.01% 76.36% 514,445.40
4.94 9.64 0 85.04 .64
to credit risks
characteristics
Other receivables
with insignificant
single amount for 1,478,22 1,478,22 1,478,2 1,478,227
5.71% 100.00% 0.00 2.04% 100.00%
which bad debt 7.36 7.36 27.36 .36
provision separately
accrued
25,910,4 5,703,57 20,206,83 72,300, 6,071,575 66,228,472.
Total 100.00% 22.01% 100.00% 8.40%
09.53 5.20 4.33 048.14 .20 94
Other receivables with significant single amount for which bad debt provision separately accrued at the period-end
√ Applicable □ Not applicable
Unit: RMB
Ending balance
Other receivables (unit)
Other receivables Bad debt provision Withdrawal proportion Withdrawal reason
Included in consolidated
Tianrui (HK) Trading Co., connected party and did
19,705,079.03
Ltd. not withdraw bad debt
provision
Long-term credit, the
Refund of tax for export
2,331,608.20 2,331,608.20 100.00% Company believe it
receivable
irrecoverable
Long-term credit, the
Shenzhen Zhao Tong
600,000.00 600,000.00 100.00% Company believe it
Investment Co., Ltd.
irrecoverable
Total 22,636,687.23 2,931,608.20 -- --
In the groups, other receivables adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Ending balance
Aging
Other receivables Bad debt provision Withdrawal proportion
Subentry within 1 year
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Subtotal of within 1 year 369,328.88 6,800.38 2.00%
1 to 2 years 11,257.92 1,125.79 10.00%
2 to 3 years 40,201.83 20,100.92 50.00%
Over 3 years 1,374,706.31 1,265,712.55 92.07%
Total 1,795,494.94 1,293,739.64 72.05%
Notes to the determination basis for the Group:
In the groups, other receivables adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, other receivables adopting other methods to withdraw bad debt provision:
□ Applicable √ Not applicable
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB-368,000.00; the amount of the reversed
or collected part during the Reporting Period was of RMB0.00.
Of which the bad debt provision reversed or recovered with significant amount during the Reporting Period:
Unit: RMB
Name of entity Amount reversed or recovered Way of recovery
(3) Other Receivables with Actual Verification during the Reporting Period
Unit: RMB
Item Amount verified
Of which the verification of significant other accounts receivable:
Unit: RMB
Verification Whether generated
Reason for
Name of entity Nature Amount verified procedures from connected
verification
performed transactions
Notes:
(4) Other Receivables Classified by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Fund of connected party 19,705,079.03 65,714,027.54
Intercourse funds 3,835,312.59 4,236,451.07
Tax 2,331,608.20 2,331,608.20
Payment on behalf 33,240.71 12,792.33
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Guarantee deposit and cash deposit 3,000.00 3,000.00
Petty cash 2,169.00 2,169.00
Total 25,910,409.53 72,300,048.14
(5) Top 5 Other Receivables in Ending Balance Collected according to the Arrears Party
Unit: RMB
Proportion to total
Ending balance of
Name of the entity Nature Ending balance Aging ending balance of
bad debt provision
other receivables
Tianrui (HK) Trading Intercourse fund of
19,705,079.03 Over 5 years 76.05%
Co., Ltd. connected party
Refund of tax for
Tax 2,331,608.20 Over 5 years 9.00% 2,331,608.20
export receivable
Guangdong Yuanfeng
Intercourse fund 700,000.00 Over 5 years 2.70% 700,000.00
Trade Co., Ltd.
Shenzhen Zhao Tong
Intercourse fund 600,000.00 Over 5 years 2.32% 600,000.00
Investment Co., Ltd.
Guangzhou Nanxiang
Construction Intercourse fund 500,000.00 Over 5 years 1.93% 500,000.00
Engineering Company
Total -- 23,836,687.23 -- 92.00% 4,131,608.20
(6) Accounts Receivable Related to Government Subsidies
Unit: RMB
Project of government Estimated recovering
Name of the entity Ending balance Ending aging
subsidies time, amount and basis
(7) Other Receivables Derecognized due to the Transfer of Financial Assets
(8) Amount of Assets and Liabilities Generated from the Transfer and Continuous Involvement of Other
Receivables
Other notes:
3. Long-term Equity Investment
Unit: RMB
Item Ending balance Beginning balance
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Depreciation Depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserve reserve
Investment to
80,000,008.26 80,000,008.26 80,000,008.26 80,000,008.26
subsidiaries
Investment to
joint ventures and
269,998,221.71 269,998,221.71 269,998,221.71 269,998,221.71
associated
enterprises
Total 349,998,229.97 349,998,229.97 349,998,229.97 349,998,229.97
(1) Investment to the Subsidiaries
Unit: RMB
Depreciation Ending balance of
Beginning
Investee Increase Decrease Ending balance reserve depreciation
balance
withdrawn reserve
Shenzhen Rieys
45,000,000.00 45,000,000.00
Industrial Co., Ltd.
Tianrui (HK)
8.26 8.26
Trading Co., Ltd.
Shenzhen Chinese
Gold Nobility 30,000,000.00 30,000,000.00
Jewelry Co., Ltd.
Shanghai Yunpeng
Network
5,000,000.00 5,000,000.00
Technology Co.,
Ltd.
Total 80,000,008.26 80,000,008.26
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease
Ending
Gains and Adjustme
Cash Withdraw balance
Additiona losses nt of
Beginnin Reduced Changes bonus or al of Ending of
Investee l recognize other
g balance investmen of other profits impairme Other balance depreciati
investmen d under comprehe
t equity announce nt on
t the equity nsive
d to issue provision reserve
method income
I. Joint ventures
154
Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
II. Associated enterprises
Shenzhen
Shenguor
ong 149,998,2 149,998,2
Financing 21.71 21.71
Guarantee
Co., Ltd.
Shenzhen
Future
Growing
Business 120,000,0 120,000,0
Fund 00.00 00.00
(Limited
Partnershi
p)
269,998,2 269,998,2
Subtotal
21.71 21.71
269,998,2 269,998,2
Total
21.71 21.71
(3)Other Notes
4. Operating Revenue and Cost of Sales
Unit: RMB
Reporting Period Same period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Other operations 1,280,401.28 400,788.60
Total 1,280,401.28 400,788.60
Other notes:
5. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
17,054.22
accounted by equity method
Total 17,054.22
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
6. Other
XVIII. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
√ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gain/Loss on changes in fair value arising
from holding of trading financial assets and
liabilities and investment income from
Investment income from disposal of
disposal of trading financial assets, financial
536.00 trading financial assets
liabilities and available-for-sale financial
assets other than effective hedge business
related to the Company’s normal operating
businesses
Reverse of bad debt provision of accounts
receivable individually conducting 2,942,220.19
impairment test
Other non-operating income and expense
410,992.85
other than the above
Less: Income tax effects 764,267.57
Non-controlling interests effects (after tax) 1,002,022.54
Total 1,587,458.93 --
Explain the reasons if the Company classifies an item as an non-recurring profit or loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Profit or
Loss, or classifies any extraordinary profit or loss item mentioned in the said explanatory announcement as a recurrent profit or loss
item
□ Applicable √ Not applicable
2. Return on Equity and Earnings Per Share
EPS (Yuan/share)
Profit as of Reporting Period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to ordinary
-1.29% -0.016 -0.016
shareholders of the Company
Net profit attributable to ordinary
-1.74% -0.0191 -0.0191
shareholders of the Company after
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
deduction of non-recurring profit or
loss
3. Differences between Accounting Data under Domestic and Overseas Accounting Standards
(1) Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under International
and Chinese Accounting Standards
□ Applicable √ Not applicable
(2) Differences of Net profit and Net assets Disclosed in Financial Reports Prepared under Overseas and
Chinese Accounting Standards
□ Applicable √ Not applicable
(3) Explain Reasons for the Differences between Accounting Data under Domestic and Overseas
Accounting Standards; for any Adjustment Made to the Difference Existing in the Data Audited by the
Foreign Auditing Agent, Such Foreign Auditing Agent’s Name Shall Be Clearly Stated
Not applicable
4. Other
Not applicable
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2018
Part XI Documents Available for Reference
I. The financial statements with the signatures and stamps of the legal representative, the CFO and the accounting head; and
II. The originals of the company announcements and documents disclosed on the CSRC-designated newspapers during the Reporting
Period.
(The Report has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the
two versions, the Chinese version shall prevail.)
158
