Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
GUANGDONG JADIETE HOLDINGS GROUP COMPANY LIMITED
INTERIM REPORT 2019
2019-050
August 2019
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
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.
Chen Hongcheng, 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 attending the Proxy entrusted to attend the
Name Office title
meeting in person meeting
Chen Honghai Director For reason of other work Chen Dongwei
Due to a loss in 2017 and 2018, the Company may be suspended from listing if it cannot make
a profit in 2019.
Despite a smaller loss in the Reporting Period, there is still some distance before making a
profit. During the Reporting Period, in view of the weak macro-economy, fierce competition
in the industry, weakening desire and ability to consume, adjustments to the Company’s
major customers and businesses, as well as the Company’s judgment on the future gold price,
some aggressive operating strategies were adopted, causing a considerable year-on-year drop
in sales revenue. For further information, please refer to “Part IV Operating Performance
Discussion and Analysis” herein.
The Company did not receive the payment for the transfer of a 30% interest in Shenzhen
Shenguorong Financing Guarantee Co., Ltd. on time. For further information, please refer to
“Part IV Operating Performance Discussion and Analysis” herein.
Shenzhen Future Growing Business Fund (Limited Partnership) did not receive the payment
for the transfer of a 45% interest in Shenzhen Jinshi Tonghe Investment Co., Ltd. on time.
That’s why it failed to distribute profit to the Company as declared. For further information,
please refer to “Part V Significant Events” herein.
The Company failed to sign a counter-guarantee agreement with Puning Huafengqiang
Trading Co., Ltd. and Puning Lailisheng Trading Co., Ltd. respectively with regard to the
outstanding guarantees provided by the Company with collateral for the loans granted to
these two companies. Up to the date of this Report, the Company failed to terminate the said
guarantees with collateral that it provided for these two companies, thereby causing
contingent liability risks. For further information, please refer to “Part V Significant Events”
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
herein.
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 and other relevant personnel shall be sufficiently aware of the risks and
understand the differences between plans, budgets and promises.
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.
Investors are reminded to read this Report carefully and pay special attention to the following
risks:
The Company is primarily engaged in the wholesale of gold products. Due to a relatively small
business size, the product stocks are of a simple structure and a great amount, so as to meet
customer demand. On one hand, the major customers and businesses of the Company are
being adjusted; on the other hand, the Company’s operations can be easily affected by
changes to customers due to simple customer composition and high reliance on customers. In
order to make a profit as soon as possible, some relatively aggressive strategies were adopted
based on the Company’s judgment on the future gold price. Therefore, the Company’s
profitability may be damaged in case of a significant fall of the gold price.
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 2019
Table of Contents
Interim Report 2019...........................................................................................................................1
Part I Important Notes, Table of Contents and Definitions........................................................... 2
Part II Corporate Information and Key Financial Information................................................... 6
Part III Business Summary............................................................................................................... 9
Part IV Operating Performance Discussion and Analysis............................................................11
Part V Significant Events.................................................................................................................21
Part VI Share Changes and Shareholder Information................................................................. 38
Part VII Preferred Shares................................................................................................................44
Part VIII Directors, Supervisors and Senior Management..........................................................45
Part IX Corporate Bonds.................................................................................................................46
Part X Financial Statements............................................................................................................47
Part XI Documents Available for Reference................................................................................ 150
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Definitions
Term Definition
The “Reporting Period” or “Current Period” The period from 1 January 2019 to 30 June 2019
CSRC The China Securities Regulatory Commission
SZSE, the stock exchange Shenzhen Stock Exchange
Guangdong Jadiete Holdings Group Company Limited and its consolidated
The “Company”, “JHG” or “we”
subsidiaries, except where the context otherwise requires
Shenghengchang Huifu Shenzhen Shenghengchang Huifu Industrial Co., Ltd.
Risheng Chuangyuan Shenzhen Risheng Chuangyuan Asset Management Co., Ltd.
Lianhua Huiren Shenzhen Lianhua Huiren Industrial Co., Ltd.
Shenguorong Financing Guarantee Shenzhen Shenguorong Financing Guarantee Co., Ltd.
Future Growing Business Fund Shenzhen Future Growing Business Fund (Limited Partnership)
Chinese Gold Nobility Shenzhen Chinese Gold Nobility Jewelry Co., Ltd.
Expressed in the Chinese currency of Renminbi, expressed in tens of thousands
RMB, RMB’0,000
of Renminbi
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name *ST 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
GUANGDONG JADIETE HOLDINGS GROUP COMPANY LIMITED
(if any)
Abbr. (if any) JHG
Legal representative Chen Hongcheng (acting)
II Contact Information
Board Secretary Securities Representative
Name Xu Wei
9Q of No. 990 of Yiben E-commerce
Address Building, Xili, Nanshan District,
Shenzhen
Tel. 0755-82250045
Fax 0755-82251182
Email address 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 2018 Annual Report.
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
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
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 2018 Annual Report.
IV Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
H1 2019 H1 2018 Change (%)
Operating revenue (RMB) 895,132.43 94,049,651.75 -99.05%
Net profit attributable to the listed
-4,262,281.71 -5,004,199.91 -14.83%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before -4,351,690.16 -6,591,658.84 -33.98%
exceptional gains and losses (RMB)
Net cash generated from/used in
-998,803.03 -1,205,691.43 -17.16%
operating activities (RMB)
Basic earnings per share (RMB/share) -0.0136 -0.016 -16.25%
Diluted earnings per share (RMB/share) -0.0136 -0.016 -16.25%
Weighted average return on equity (%) -1.30% -1.43% 0.13%
30 June 2019 31 December 2018 Change (%)
Total assets (RMB) 536,009,687.46 544,902,591.70 -1.63%
Equity attributable to the listed
334,836,779.93 339,099,061.64 -1.26%
company’s 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 2019
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
Current profit or loss on subsidiaries obtained in business
combinations involving enterprises under common control from 77,525.28
the period-beginning to combination dates, net
Non-operating income and expense other than the above 11,272.65
Less: Income tax effects -499.44
Non-controlling interests effects (net of tax) -111.08
Total 89,408.45 --
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 2019
Part III Business Summary
I Principal Activity of the Company in the Reporting Period
Is the Company subject to any industry-specific disclosure requirements?
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 Industry Development
According to the analysis made by China Jewelry Index, from January to May in 2019, the gold and jewelry
transaction volume in China was not so ideal. As the domestic macro-economic situation in 2019 is much severer
than that in previous years and the common people’s income grows very slowly, the consumer’s wishes and
abilities in buying gold, silver and jewelry has been continuously weakened. In January 2019, the retail sales
index of gold, silver and jewelry was 99.86, declining 0.14% when compared to that in the same period a year ago.
Since the macro economy environment and trend are very severe, the jewelry market on the whole will be
definitely affected to some extent.
According to the latest data revealed by China Gold Association, the gold’s production has declined on a
year-on-year basis. In the first half of the year 2019, the nationwide production of gold achieved 235 tons,
reducing 6.6% when compared to that in the same period a year ago. However, 180.7 tons of gold were produced
by using the domestic raw materials with a year-on-year decrease of 5.1%, including 153.9 tons of domestic
mineral gold and 26.8 tons of domestic non-ferrous byproduct gold; besides, 54.3 tons of gold were produced by
using the imported raw materials with a year-on-year decrease of 11.2%, and the gold consumption decreases
accordingly. In the first half of the year 2019, the actual gold consumption nationwide reached 523.5 tons,
decreasing 3.3% on a year-on-year basis. However, the gold jewelry’s consumption reached 358.8 tons with a
year-on-year increase of 2%; the gold bar’s consumption was 110.5 tons with a year-on-year decrease of 17.3%;
the gold coin’s consumption was 2.9 tons with a year-on-year decline of 29.3%; the consumption related to the
industry and other fields achieved 51.3 tons with a year-on-year decline of 0.6%.
China Gold Association also indicated that, against the backdrop of the weak global macro economy and the
domestic economic structure subject to corresponding adjustment, the gold industry need positively respond to the
high-quality development requirements advocated in this new age, and it’s also required to deepen the structural
reform on the supply side, eliminate the outdated capacity, optimize the industrial structure, integrate the
high-quality gold resources and propel the technical innovation.
In China, various gold and jewelry enterprises lack the modern operation concepts and product features, and most
merely resort to the extensive management style—namely, the relatively low-level competition status. For
example, these enterprises lag behind various international brands in various aspects such as the gold and jewelry
production technology, the management scale, the management level, the brand awareness and the industrial
disciplines etc.. Therefore, in order to obtain larger living space, various gold and jewelry enterprises must
proceed in line with the actual situation, figure out the actual market demand and its own appropriate positioning
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
by means of the reliable investigation and research and further explore the subdivided market, on which basis, the
differentiated competition strategy can be executed, various competitive advantages emphasized, the space for
growth created and the sales bottleneck broken through. On in this way, these enterprises can comply with the
market transformation and survive the fierce industrial competition.
(II) The Company’s Position in this Industry and Competitive Advantages
As Chinese Gold Nobility is relatively weak in such aspects as the capital, the brand and the personnel with a
lower position in this industry, it has been violently impacted under the background of downturned macro
economy, weak consumption and fierce horizontal competition without any obvious competitive advantages.
(III) Main Business Conditions
Within the Reporting Period, relying on its main customer business adjustment and judgment on the future gold
price trend, Chinese Gold Nobility has taken relatively radical operating strategies. Therefore, the sales volume
largely declined when compared to that in the same period a year ago. Please refer to “Part IV Operating
Performance Discussion and Analysis” in the report for details. Within the reporting period, Chinese Gold
Nobility did not involve any entrusted processing and purchase any goods in stock.
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
III Core Competitiveness Analysis
Is the Company subject to any industry-specific disclosure requirements?
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 2019
Part IV Operating Performance Discussion and Analysis
I Overview
For H1 2019, the Company recorded operating revenue of RMB0.8951 million, down 99.05% from
RMB94.0497 million a year ago; and a net profit attributable to the listed company’s shareholders of
RMB-4.2623 million, representing a 14.83% loss cut from RMB-5.0042 million of H1 2018. The
considerable drop in operating revenue was primarily resulted from the considerable decreases in Chinese
Gold Nobility’s operating revenue and net profit caused by the unfavorable general economic environment,
the increasingly fierce competition across the jewelry industry, the adjustments to the major customers and
businesses, the adoption of aggressive operating strategies, etc.
Within the Reporting Period (up to the date of disclosure), the Company completed the following key works:
(I) Positively solve various matters involved in 2018 Annual Audit Qualified Opinions.
Please refer to “Part V Significant Events” in the report for details.
(II) Strengthen the collection of the payment for the equity transfer of Shenguorong Financing Guarantee and the
dividends of Future Growing Business Fund.
Up to the date of disclosure, the Company has received the equity transfer payment from Shenguorong Financing
Guarantee equivalent to RMB75 million and RMB19.4 million from the Future Growing Business Fund as the
dividends. When the Company discovers that the equity transferee of Shenguorong Financing Guarantee fails to
fulfill the payment obligation as agreed, the Company shall immediately negotiate with the transferee and figure
out the specific reasons and the subsequent arrangement. Shenguorong Financing Guarantee’s equity transferee
has expressed that the financial strain is caused by the macro de-leveraging factor and will continue fulfilling
corresponding equity transfer agreement.
After corresponding event occurs to adversely affect the timely dividends distribution of the Future Growing
Business Fund, the Company shall positively communicate with the Future Growing Business Fund in order to
learn any arising obstacle factor, positively encourage various parties to fulfill their obligations and urge them to
reach a consensus related to the agreement’s execution. At present, various parties are positively negotiating with
each other, and this agreement will be continued after corresponding shareholder resolution is issued.
(III) Maintain the Company’s Share Price
Up to the date of disclosure, the Company’s share price has been lower than the book value for many times and
triggered the delisting risk warning. In order to maintain the interest of various investors, as promised by the
person acting in concert of the Company’s actual controller for increasing the shares held, the Company has
launched the buy-back scheme meeting the market expectation and won the support from the minority
shareholders, temporarily eliminated the delisting risk and provided the Company with various effective tools to
maintain the share price.
(IV) It’s necessary to strengthen the cost control, simplify the business scale, optimize the organizational structure,
adjust the personnel layout, jointly overcome the hardship and made certain achievement.
The Company is subject to the Guideline No. 11 of the Shenzhen Stock Exchange on Information Disclosure by Industry—for Listed
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Companies Engaging in Jewelry.
(I) Online sales
The online sales were suspended due to business adjustments during the Reporting Period.
(II) The Company’s various inventories as of 30 June 2019 are shown in the table below (unit: RMB’0,000):
Type Raw materials Products
Balance 701.99 17,890.45
Including: Gold jewelry 696.55 15,098.32
Jadeite 0.00 2,715.22
Diamond jewelry 0.00 71.04
K-gold jewelry 0.00 5.87
Other jewelry 5.44 0.00
II Analysis of Core Businesses
See “I Overview” above.
Year-on-year changes in key financial data:
Unit: RMB
Main reason for
H1 2019 H1 2018 Change (%)
change
Operating revenue A decline in sales of
895,132.43 94,049,651.75 -99.05%
Chinese Gold Nobility
Cost of sales A decline in sales of
850,626.81 93,356,686.67 -99.09%
Chinese Gold Nobility
Selling expense 298,502.64 1,129,119.53 -73.56% A decline in sales
Administrative
4,309,639.91 6,096,595.06 -29.31%
expense
Finance costs 47,664.48 63,714.32 -25.19%
A decline in profit of
Income tax expense 201,730.61 768,741.42 -73.76%
Chinese Gold Nobility
R&D expense 0.00 0.00 0.00%
Net cash generated
from/used in operating -998,803.03 -1,205,691.43 -17.16%
activities
Net cash generated A decline in
-86,858.03 -558,362.37 -84.44%
from/used in investing investments
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
activities
Net cash generated
from/used in financing 0.00%
activities
Net increase in cash A decline in
-1,085,627.11 -1,764,039.74 -38.46%
and cash equivalents investments
Due to needs arising
Monetary capital 526,048.79 1,613,340.23 -67.39% from production and
operations
A decline in
Prepayments 490,604.68 30,946,946.32 -98.41% prepayments to
suppliers
A decline in
Asset impairment loss 796,995.35 2,942,220.19 -72.91%
impairment allowances
The confiscation of a
security deposit due to
Non-operating expense 2,004.30 189,007.15 -98.94% lease contract violation
in the same period of
last year
A rise in income from
Return on investment 77,525.28 536.00 14,363.67% the disposal of
subsidiary
Material changes to the profit structure or sources of the Company in the Reporting Period:
√ Applicable □ Not applicable
The sales and profits of gold jewelry business declined remarkably during the Reporting Period, for more details, please refer to
related contents in “Part I Important Notes”.
Breakdown of core businesses:
Unit: RMB
YoY change in YoY change in YoY change in
Operating Gross profit
Cost of sales operating cost of sales gross profit
revenue margin
revenue (%) (%) margin (%)
By operating division
Gold jewelry 2,530.17 1,766.06 30.20% -100.00% -100.00% 29.92%
E-commerce
sales of 892,602.26 848,860.75 4.90% -26.05% 10.00% -31.17%
garments
By product category
Gold jewelry 2,530.17 1,766.06 30.20% -100.00% -100.00% 29.92%
E-commerce
892,602.26 848,860.75 4.90% -26.05% 10.00% -31.17%
sales of
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
garments
By operating segment
Gold jewelry
sales in 2,530.17 1,766.06 30.20% -100.00% -100.00% 29.92%
Shenzhen
E-commerce
sales of 892,602.26 848,860.75 4.90% -26.05% 10.00% -31.17%
garments
III Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
As % of total
Amount Reason for formation Sustainable or not
profits
Investment income from
Investment
77,525.28 1.87% disposal of long-term No
income
equity investments
Gains or losses
on changes in fair 0.00 0.00% No
value
Assets Reversal of losses from
796,995.35 19.25% No
impairment bad debts
Non-operating
13,276.95 0.32% Maternity benefits No
income
Non-operating Expense on penalty and
2,004.30 0.05% No
expense fine for delaying payment
IV Analysis of Assets and Liabilities
1. Material Changes in Asset Composition
Unit: RMB
30 June 2019 30 June 2018 Change
in
As % of As % of Reason for material change
Amount Amount percent
total assets total assets
age (%)
Monetary
526,048.79 0.10% 1,192,159.64 0.22% -0.12%
capital
Accounts 16,039,856.5 2.99% 23,890,210.7 4.41% -1.42%
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
receivable 8 6
186,049,562. 162,187,727.
Inventories 34.71% 29.92% 4.79%
84 56
Investment
4,708,489.66 0.88% 0.00 0.00% 0.88%
property
Long-term
100,600,000. 269,998,221. -31.05 Transferred to “assets held for sale”
equity 18.77% 49.82%
00 71 % to account
investments
33,783,352.6 40,543,929.4
Fixed assets 6.30% 7.48% -1.18%
9 2
2. Assets and Liabilities at Fair Value
□ Applicable √ Not applicable
3. Restricted Asset Rights as of the Period-End
The Company provided a mortgage guarantee pledged with property for Puning Huafengqiang Trading Co., Ltd.
through signing the mortgage contract of maximum amount (RCZH2014GDZNo.3632; principal creditor’s right:
11 November 2014 to 11 November 2019) with Jieyang Rongcheng Branch of ICBC. The Company provided a
mortgage guarantee pledged with property for Puning Lailisheng Trading Co., Ltd. through signing the mortgage
contract of maximum amount (0201900134-2017XQ(D)ZNo.0042; principal creditor’s right: 8 September 2017 to
8 September 2022) with Jieyang Branch of ICBC.
V Investments Made
1. Total Investment Amount
□ Applicable √ Not applicable
2. Major Equity Investments Made in the Reporting Period
√ Applicable □ Not applicable
Unit: RMB
Profit
Prog
s or
ress
Inves Inves Shar Esti losses Involv Disclo Discl
Capit Inves Type as of
Main tmen tmen ehold mate of ing in sure osure
Inves al Partn tmen of the
busin t t ing d invest lawsui date index
tee resou er t prod bala
ess meth amou perce inco ment t or (if (if
rces term ucts nce
od nt ntage me in the not any) any)
sheet
Repor
date
ting
15
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Period
Anno
unce
ment
on
Acqui
sition
of
Equit
y of
Shenz
hen
Chine
se
Gold
Nobil
ity
Shen Jewel
zhen Stoc ry
Chin k Co.,
Chine ese trans Ltd.
Stoc 15
se Gold Acqu 24,50 Self- Gold fer 4,26 (Ann
49.00 Long k 161,6 Dece
Gold jewel isitio 0,000 owne Nobi pay 0,00 No ounce
% -term right 22.47 mber
Nobil ry n .00 d lity ment 0.00 ment
s 2018
ity Inves unpa No.:
tmen id 2018-
t Co., yet 065)
Ltd. disclo
sed
on
Secur
ities
Times
,
Hong
Kong
Ta
Kung
Pao
and
www.
cninf
o.com
.cn.
16
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
24,50 4,26
161,6
Total -- -- 0,000 -- -- -- -- -- -- 0,00 -- -- --
22.47
.00 0.00
3. Major Non-Equity Investments Ongoing in the Reporting Period
□ Applicable √ Not applicable
4. Financial Investments
(1) Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
√ Applicable □ Not applicable
Amou Amou
Execu
nt nt
Relati ted as
contri contri
onshi sched
buted buted
p uled Index
Sellin by the Effect by the Relate Owne
Equit betwe or to
g equity of the sale to Pricin d-part rship
Count y Date en not, if Discl disclo
price intere sale net g y fully
erpart intere of count not, osure sed
(RMB sts to on the incom princi transa transf
y sts sale erpart state date infor
’0,000 net Comp e of ple ction erred
sold y and reaso matio
) incom any the or not or not
the n and n
e of Comp
Comp action
the any as
any s
Comp a
taken
any perce
17
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
from ntage
period of the
-begin Comp
ning any’s
to net
date incom
of e (%)
sale
(RMB
’0,000
)
Anno
unce
ment
on
Sales
of
Equit
y
Intere
Not
sts of
execu
30% Shenz
ted as
of hen
sched
equity Sheng
Shenz uled
intere uoron
hen and
sts of Not g
Gaop 30 the 30
Sheng Recov the Finan
u Septe 15,00 Negot Comp Nove
uoron 0 ery of 0.00% No relate No cing
Indust mber 0 iation any mber
g funds d Guara
rial 2018 sent 2018
Finan party ntee
Co., letters
cing Co.,
Ltd. to
Guara Ltd.
negoti
ntee (Ann
ate
ounce
soluti
ment
ons.
No.:
2018-
059)
disclo
sed
on
Secur
ities
Times
18
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
,
Hong
Kong
Ta
Kung
Pao
and
www.
cninf
o.com
.cn.
VII Main Controlled and Joint Stock Companies
√ Applicable □ Not applicable
Main subsidiaries and joint stock companies with an over 10% influence on the Company’s net profit
Unit: RMB
Relationship Principal Registered Total Operating Operatin
Name with the activity Net assets Net profit
capital assets revenue g profit
Company
Shenzhen
Rieys 30,129,961 28,075,852 240,586.
Subsidiary Trade 50000000 0.00 74,843.63
Industrial .71 .80 35
Co., Ltd.
Shenzhen
Chinese
Gold Gold 213,151,32 57,990,175 -179,267
Subsidiary 33333333 2,530.17 -179,261.08
Nobility jewelry 6.78 .70 .41
Jewelry
Co., Ltd.
Shanghai
Yunpeng E-commer
4,550,439. 3,774,669. -598,310
Network Subsidiary ce of 5000000 892,602.26 -585,040.58
52 42 .98
Technolog garments
y Co., Ltd.
Subsidiaries obtained or disposed in the Reporting Period:
√ Applicable □ Not applicable
How subsidiary was obtained or Effects on overall operations and
Subsidiary
disposed in the Reporting Period operating performance
19
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Shenzhen Magake Blue Arrow
Sales of equity interest No effects
Technology Co., Ltd.
Information about major majority- and minority-owned subsidiaries:
VIII Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
IX Performance Forecast for January-September 2019
Warning of possible loss or considerable YoY change in the accumulative net profit made during the period-beginning to the end of
the next reporting period, as well as the reasons:
□ Applicable √ Not applicable
X Risks Facing the Company and Countermeasures
For details of risk facing the Company, please refer to related contents in “Part I Important Notes” of this Report.
For details of countermeasures by the Company, please refer to related contents in “Part IV Operating
Performance Discussion and Analysis” and “Part V Significant Events” in this Report. In addition, on the one
hand, the Company actively cooperates with major customers for business transformation; on the other hand, the
Company explores to expand the customer channel step by step and plans to reduce the high risk of inventories
step by step through increasing sales under the premise that gradually improving the stock variety.
20
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Part V Significant Events
I Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor Index to disclosed
Meeting Type Convened date Disclosure date
participation ratio information
Resolution on the
1st Extraordinary
General Meeting
of 2019
The 1st
(2019-003)
Extraordinary Extraordinary
59.34% 18 January 2019 19 January 2019 published on
General Meeting general meeting
Securities Times,
of 2019
Hong Kong Ta
Kung Pao and
www.cninfo.com.c
n.
Resolution on the
2018 Annual
General Meeting
(2019-039)
The 2018 Annual Annual General published on
51.54% 28 June 2019 29 June 2019
General Meeting Meeting Securities Times,
Hong Kong Ta
Kung Pao and
www.cninfo.com.c
n.
2. Extraordinary General Meeting Convened at Request of Preference Shareholders with Resumed Voting
Rights
□ Applicable √ Not applicable
II Interim Dividend Plan for the Reporting Period
□ Applicable √ Not applicable
The Company has no interim dividend plan.
21
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
III Commitments of the Company’s Actual Controller, Shareholders, Connected Parties and
Acquirer, as well as the Company and Other Commitment Makers, Fulfilled in the Reporting
Period or still Ongoing at Period-End
√ Applicable □ Not applicable
Type of Date of Period of
Commitmen
Commitment commitmen Contents commitmen commitmen Fulfillment
t maker
t t making t
Commitments made in share reform
Commitments made in acquisition
documents or shareholding
alteration documents
Excepting
the
company
The stock, it can
Company's not in any
largest area, in any
shareholder form,
Shenzhen engaged in
Shenghengc production
hang produce or
Huifu business
Industrial operation
21 May
Co., Ltd., may form Perpetual Ongoing
2015
the second competition
largest to the
Commitments made in time of asset
shareholder company
restructuring
Shenzhen stock and its
Risheng subsidiaries
Chuangyua which
n Asset stipulated
Managemen by the law,
t Co., Ltd. regulations
and
stipulations
from CSRC.
The Will avoid
Company's or reduce
largest the related 21 May
Perpetual Ongoing
shareholder transaction 2015
Shenzhen between it
Shenghengc together
22
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
hang with its
Huifu related
Industrial enterprise
Co., Ltd., and the
the second company
largest stock to the
shareholder greatest
Shenzhen extent. If
Risheng the related
Chuangyua transaction
n Asset with the
Managemen company
t Co., Ltd. stock is
inevitable,
the
transaction
must be
conducted
in line with
the principle
of fair, just
and sound
and making
compensati
on for equal
value, the
transaction
price must
be
recognized
in line with
the
reasonable
price of the
market and
related
transaction
decision
making
procedure
avoiding
voting of
related
transaction
23
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
by the
shareholder
s' general
meeting
which
stipulated
by Article
of
Association
of
Guangdong
Rieys
Group
Company
Ltd.
Commitments made in time of IPO
or refinancing
Commitments concerning stock
ownership incentive
If the
Company
sells 45%
shares of
Jinshitongh
e via Future
Growing
Business
Fund, and
the received
The
amount in
29 appointed
Other commitments made to Chen total by
December time for Ongoing
minority shareholders Hongcheng conducting
2018 making up
the profit
obligations
distribution
based on the
obtained
equity
transfer
fund is less
than
RMB120
million or if
Future
24
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Growing
Business
Fund cannot
be
distributed
according to
the agreed
profit
distribution
plan, the
actual
controller
Chen
Hongcheng
shall make
it up in cash
within 1
month after
such event
occurs. The
specific
arrangement
can be
described as
follows: 1.
If the
difference is
less than
RMB30
million, it
shall be
paid to the
Company’s
bank
account
within 10
days after
the
Company
receives all
funds for
profit
distribution
or Future
25
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Growing
Business
Fund cannot
be
distributed
based on the
agreed
profit
distribution
plan; 2. If
the
difference is
between
RMB30
million and
RMB80
million,
RMB30
million shall
be paid
within 10
days after
the
Company
receives all
funds for
profit
distribution
or Future
Growing
Business
Fund cannot
be
distributed
based on the
agreed
profit
distribution
plan, and
the residual
funds shall
be
completely
paid in the
26
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
following
15 days; 3.
If the
difference is
more than
RMB80
million,
RMB30
million shall
be paid
within 10
days after
the
Company
receives all
funds for
profit
distribution
or Future
Growing
Business
Fund cannot
be
distributed
based on the
agreed
profit
distribution
plan, RMB
50 million
Yuan in the
following
15 days and
the residual
funds in the
following 5
days.
Based on Within 2
the great months after
faith in the two trading
Chen
Company’s 4 June 2019 date since Not fulfilled
Xuewen
future the
developmen disclosure
t prospect, date of
27
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
the shareholdin
investor’s g increase
interests plan
will be
practically
protected to
stabilize
their
confidence.
When the
price of the
Company
shares is
lower than
1.5
HKD/share,
the number
of increased
shares shall
not be less
than 1
million.
Within 2
months after
2 business
days from
the day of
the
disclosure
of the
holding-sha
res increase
plan, the
self-owned
fund shall
be
transacted
by means of
centralized
bidding in
Shenzhen
Stock
Exchange.
During the
28
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
implementat
ion of the
share
increase
plan, the
Company
shall
comply with
relevant
regulations
issued by
China
Securities
Regulatory
Commissio
n and
Shenzhen
Stock
Exchange,
and avoid
reducing the
holding-sha
res during
the
implementat
ion period
and the
statutory
period.
Executed in time No
Influenced by the information disclosure sensitive period and other factors arising during
the holding-shares increase period, Ms. Chen Xuewen caused the cut-down of the
effective time spent in implementing the holding-shares increase plan, and further resulted
in the failure in legally completing such plan as scheduled due to various miscellaneous
matters and the failure in properly planning the specific holding-shares increase time.
Specific reasons for failing to fulfill During the extended period, “within 2 months after 2 business days from the day of the
commitments on time and plans for disclosure of the holding-shares increase plan” shall be changed into “within 4 months
next step after 2 business days from the day of the disclosure of the holding-shares increase plan
(the holding-shares increase period shall postpone accordingly due to occurrence of
delisting event)”. Namely, the specific date shall extend to 6 October 2019 from 7 June
2019 (the holding-shares increase period shall postpone accordingly due to occurrence of
delisting event).The 29th Meeting of the 7th Board of Directors of the Company held on 8
August 2019 reviewed and approved the Proposal on Changes in Commitments which
29
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
still needs to be submitted to the 2nd Extraordinary General Meeting of 2019 for review.
IV Engagement and Disengagement of CPAs Firm
Has the Interim financial report been audited?
□Yes √ No
This Interim Report is unaudited.
V Explanations Given by Board of Directors and Supervisory Committee Regarding
“Modified Auditor’s Report” Issued by CPAs Firm for the Reporting Period
□ Applicable √ Not applicable
VI Explanations Given by Board of Directors Regarding “Modified Auditor’s Report” Issued
for Last Year
√ Applicable □ Not applicable
The Asia Pacific (Group) Accounting Firm (Special General Partnership) issued a qualified audit report on the
Company's 2018 financial report. The progress of the matters covered in the comments is as follows:
I. Event: In 2017, JHG respectively applied for a loan via ICBC Jieyang Rongcheng Sub-branch for Puning
Huafengqiang Trading Co., Ltd. (hereinafter referred to as “Huafengqiang”), and provided the house property
mortgage guarantee for Puning Lailisheng Trading Co., Ltd. (hereinafter referred to as “Lailisheng”) to apply for a
loan via ICBC. As the above-mentioned mortgage guarantee agreement was still effective in 2018, Huafengqiang
applied a loan of RMB11.7 million again from ICBC Jieyang Rongcheng Sub-branch by virtue of the mortgage
guarantee agreement in May 2018; Lailisheng applied a loan of RMB23.79 million again from ICBC Jieyang
Rongcheng Sub-branch by virtue of the mortgage guarantee agreement in August 2018. Considering that
Huafengqiang and Lailisheng did not sign any related counter-guarantee agreement with JHG, we can only
conduct our audit work within a limited range, and cannot obtain sufficient and appropriate audit evidence for the
influence exerted by the contingent liabilities related to the mortgage guarantee.
Various measures taken by the Company:
The Company signed the Maximum Amount Mortgage Contract (Rongcheng Sub-branch 2014 GDZ No.3632,
and guaranteed principal creditor’s right shall be from 11 November 2014 to 11 November 2019) with ICBC
Jieyang Rongcheng Sub-branch for Huafengqiang with the real estate as the guarantee to provide corresponding
mortgage guarantee. The Company signed the Maximum Amount Mortgage Contract (0201900134-2017
XQ(D)Zi No.0042, and guaranteed principal creditor’s right shall be from 8 September 2017 to 8 September 2022)
with ICBC Jieyang Sub-branch for Lailisheng with the real estate as the guarantee to provide corresponding
mortgage guarantee. However, the Company failed to respectively sign corresponding counter-guarantee
agreement with Huafengqiang and Lailisheng related to the loans within the mortgage guarantee period.
The Company respectively reached a consensus with Huafengqiang and Lailisheng on releasing the mortgage
guarantees. In this case, Huafengqiang agreed to repay the bank loan before 31 October 2019 and terminate the
Real Estate Mortgage Guarantee provided by the Company. Lailisheng agreed to terminate the Real Estate
Mortgage Guarantee provided by the Company before 30 November 2019.
The Company has continuously paid great attention to the specific situation of Huafengqiang and Lailisheng,
30
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
regularly collected the guaranteed person’s financial materials or audit reports during the latest period, analyzed
their financial status and debt paying abilities, focused on their production and management, assets and liabilities,
external guarantees, separation and consolidation and changes of legal representative etc., and established relevant
financial records. Meanwhile, the Company also made great effort to urge Huafengqiang and Lailisheng to
terminate the related mortgage guarantee as early as possible.
II. Event: “We hereby suggest the users of financial statements to pay attention to the facts: as stated in Note VI
(25) to Financial Statements, up to 31 December 2018, JHG suffered a total loss of RMB117,840,473.36; the
operation revenue achieved in the first half of 2018 declined sharply, and the net profit attributed to the parent
company was RMB-13,392,596.16. The Company suffered a loss for two consecutive years. As stated in Note III
(2) to Financial Statements, the existence of these events or situations indicated that there existed any significant
uncertainty that may cause major concerns on the sustainable operation ability of JHG. However, the events shall
not exert any influence on the issued audit opinions.”
The Company shall take the following measures:
(1) Adjust the Asset Structure
From the perspective of the Company business and the asset structure, the Company prefers the
investment-oriented company, and its main asset is the long-term equity investment without any return
temporarily in the short run. Although the Company has developed various operational businesses, it has not made
them outstanding with a relatively small scale, including the sales of gold and jewelry and the clothing
e-commerce etc.. In order to change the current situation of various investments harvesting unremarkable
effectiveness, the Company took various measures at the end of November 2018, and sold 30% shares held in
Shenguorong Financing Guarantee. Meanwhile, the Company also promoted Future Growing Business Fund
invested by it to dispose the shares held in the target company and recover the investment by means of the profit
distribution of future growing business fund so as to improve the Company’s asset structure.
(2) Increase the Investment, Focus on the Main Business and Make the Company Bigger and Stronger:
In the short run, it is of great uncertainty for the Company to replace its main business or redevelop any new
business. Making the existed gold and jewelry business bigger and stronger is the only way for the Company to
grow. In December 2018, the Company purchased the shares held by other shareholders of Chinese Gold Nobility,
making Chinese Gold Nobility become the Company’s wholly-owned subsidiary and promoting the Company’s
profit. The Company will give support strong support for the subsidiary’s development, further enrich the product
categories of Chinese Gold Nobility, increase the stock of high value-added goods (including jades and ambers),
boost the sales of jades and ambers and flexibly adjust various business strategies in line with the actual market
situation so as to propel the competitiveness and profitability of Chinese Gold Nobility and make it the main
source for the Company’s net profit.
In conclusion, after the Company takes the above-mentioned measures, its strategic development direction will be
determined clearly, and the Company will make full use of its resources to boost its main businesses. As the stable
development of the gold and jewelry business, the Company’s sustainable development problem will be
fundamentally resolved.
VII Bankruptcy and Restructuring
□ Applicable √ Not applicable
No such cases in the Reporting Period.
31
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
VIII Legal Matters
Significant 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 Conditions of the Company as well as its Controlling Shareholder and Actual
Controller
√ Applicable □ Not applicable
Huaneng Guicheng Trust Corporation Limited (hereinafter referred to as “Huaneng Guicheng) applied for execution of the dispute
case on trust borrowings and pledge-style repo with “Risheng Chuangyuan”. Since the failure of performing the payment obligation
specified in the effective legal documents within the prescribed time limit, the Company’s actual controller Chen Hongcheng and
controlling shareholder Shenghengchang Huifu are listed in the blacklist of people with poor credit by Shenzhen Intermediate
People’s Court.
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 Purchase or Sales of Assets or Equity Interests
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
32
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
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
The Company reviewed and approved the Proposal on Related-party Transaction regarding Capital Increase in Hunan Weidao
Technology Co., Ltd. on the 21st Meeting of the 7th Board of Directors held on 30 October 2018. The Company planned to sign the
capital increase agreement to increase its investment of RMB25 million in Hunan Weidao Technology Co., Ltd. After the capital
increase, the Company would hold 12.6904% of equity interests of Hunan Weidao Technology Co., Ltd. But later Hunan Weidao
Technology Co., Ltd. decided to terminate the capital increase on 22 March 2019 due to the corporation nature.
Index to the public announcements about the said related-party transactions disclosed
Title of public announcement Disclosure date Disclosure website
Announcement on Related-party Transaction
regarding Capital Increase in Hunan Weidao 31 October 2018 www.cninfo.com.cn
Technology Co., Ltd.
XIII Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIV Major Contracts and Execution thereof
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.
33
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
(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 (exclusive of those for subsidiaries)
Disclosur
Guaran
e date of Actual
tee for
the occurrence Actual Having
Line of Type of Term of a
Obligor guarantee date guarantee expired
guarantee guarantee guarantee related
line (Agreement amount or not
party or
announce signing date)
not
ment
11
Puning 14 November
Huafengqiang Novembe 1,700 1,140 Mortgage 2014 to 11 No No
Trade Co., Ltd. r 2014 November
2019
8
Puning 8 September
Lailisheng Trade Septembe 2,400 2,350 Pledge 2017 to 8 No No
Co., Ltd. r 2017 September
2022
Total approved line for such Total actual amount of such
guarantees in the Reporting 0 guarantees in the Reporting 4,100
Period (A1) Period (A2)
Total approved line for such Total actual balance of such
guarantees at the end of the 4,100 guarantees at the end of the 3,490
Reporting Period (A3) Reporting Period (A4)
Guarantees provided by the Company for its subsidiaries
Disclosur Actual Guaran
e date of occurrence Actual Having tee for
Line of Type of Term of
Obligor the date guarantee expired a
guarantee guarantee guarantee
guarantee (Agreement amount or not related
line signing date) party or
34
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
announce not
ment
Guarantees provided between subsidiaries
Disclosur
Guaran
e date of Actual
tee for
the occurrence Actual Having
Line of Type of Term of a
Obligor guarantee date guarantee expired
guarantee guarantee guarantee related
line (Agreement amount or not
party or
announce signing date)
not
ment
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line approved Total actual guarantee
in the Reporting Period 0 amount in the Reporting 4,100
(A1+B1+C1) Period (A2+B2+C2)
Total actual guarantee
Total approved guarantee line
balance at the end of the
at the end of the Reporting 4,100 3,490
Reporting Period
Period (A3+B3+C3)
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4) as % of the
10.42%
Company’s net assets
Of which:
Compound guarantees:
(2) Irregularities in Provision of Guarantees
□ 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. Significant Environment Protection
Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmental
protection authorities of China
No
Not applicable
35
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
2. Measures Taken for Targeted Poverty Alleviation
(1) Plans
(2) Summary of the Related Work Done in the Reporting Period
(3) Results
Measurement
Indicator Quantity/Progress
unit
1. General results —— ——
2. Itemized results —— ——
2.1 Out of poverty by industrial development —— ——
2.2 Out of poverty by transferring employment —— ——
2.3 Out of poverty by relocation —— ——
2.4 Out of poverty by education —— ——
2.5 Out of poverty by improving health —— ——
2.6 Out of poverty by protecting ecological environment —— ——
2.7 Subsidy for the poorest —— ——
2.8 Social poverty alleviation —— ——
2.9 Other items —— ——
3. Accolades received (for what and at what level) —— ——
(4) Subsequent Plans
XVI Other Significant Events
√ Applicable □ Not applicable
On 30 November 2018, the Company received the Notice on the Profit Distribution of Future Growing Business
Fund. As indicated in the notice, Shenzhen Future Growing Business Fund signed the sales agreement on 28
November 2018 and sold 45% shares held in Shenzhen Jinshitonghe Investment Co., Ltd.. The transaction
counterparty shall make the payment by installments within 6 months after the date of effectiveness, and
Shenzhen Future Growing Business Fund shall distribute corresponding profit to the Company within three
working days after receiving each equity transfer payment and deducting relevant fund expenses. On 18
December 2018, Shenzhen Future Growing Business Fund received the first installment of equity transfer
payment RMB20 million and distributed RMB19.4 million to the Company on the same day. Up to now, the
Company has not received the rest dividends.
As the shareholder resolution on this transfer of equity agreed by Shenzhen Jinshitonghe Investment Co., Ltd. has
not been issued, the transaction counterparty has disputed over that and required to suspend the continued
fulfillment of the agreement. Now, various related parties are negotiating with another shareholder of Shenzhen
Jinshitonghe Investment Co., Ltd., and urging the shareholder to sign the above-mentioned shareholder resolution
36
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
to promote this event’s settlement.
XVII Significant Events of Subsidiaries
□ Applicable √ Not applicable
37
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Part VI Share Changes and Shareholder Information
I. Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the Reporting Period (+/-) After
Shares
Shares
as
as
dividen
dividen
Percenta New d Percent
Shares d Other Subtotal Shares
ge (%) issues converte age (%)
converte
d from
d from
capital
profit
reserves
164,025 164,025
I. Private shares 51.48% 0 0 0 0 0 51.48%
,000 ,000
164,025 164,025
1. Founders’ shares 51.48% 0 0 0 0 0 51.48%
,000 ,000
Among which: Shares
0 0.00% 0 0 0 0 0 0 0.00%
held by the state
Shares held by 164,025 164,025
51.48% 0 0 0 0 0 51.48%
domestic legal person ,000 ,000
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
0 0.00% 0 0 0 0 0 0 0.00%
legal 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
154,575 154,575
II. Public shares 48.52% 0 0 0 0 0 48.52%
,000 ,000
1. RMB-denominated
0 0.00% 0 0 0 0 0 0 0.00%
ordinary shares
2. Domestically listed 154,575 154,575
48.52% 0 0 0 0 0 48.52%
foreign shares ,000 ,000
38
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
3. Overseas listed
0 0.00% 0 0 0 0 0 0 0.00%
foreign shares
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
318,600 100.00 318,600 100.00
III. Total shares 0 0 0 0 0
,000 % ,000 %
Reasons for share changes:
□ Applicable √ Not applicable
Approval of share changes:
□ Applicable √ Not applicable
Transfer of share ownership:
□ Applicable √ Not applicable
Progress on any share repurchases:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
Effects of share changes on the basic and diluted earnings per share, equity per share attributable to the Company’s ordinary
shareholders and other financial indicators of the prior year and the prior accounting period, respectively:
□ Applicable √ Not applicable
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable √ Not applicable
2. Changes in Restricted Shares
□ Applicable √ Not applicable
II. Issuance and Listing of Securities
□ Applicable √ Not applicable
III. Total Number of Shareholders and Their Shareholdings
Unit: share
Total number of preference
Total number of ordinary
shareholders with resumed
shareholders at the 10,131 0
voting rights at the period-end
period-end
(if any) (see note 8)
5% or greater ordinary shareholders or the top 10 ordinary shareholders
Total Increa Numb Numb Pledged or frozen shares
Name of Nature of Shareholding shares se/dec er of er of
shareholder shareholder percentage (%) held at rease privat public Status Number
the during e shares
39
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
period the shares held
-end Repor held
ting
Period
SHENZHEN Pledged 117,855,000
SHENGHEN
GCHANG Domestic 117,8 117,8
non-state-owned 36.99% 55,00 0 55,00 0
HUIFU Frozen 117,855,000
legal person 0 0
INDUSTRIA
L CO., LTD.
SHENZHEN Pledged 34,020,000
RISHENG
CHUANGY
Domestic
34,02 34,02
UAN ASSET non-state-owned 10.68% 0 0
0,000 0,000 Frozen 34,020,000
legal person
MANAGEM
ENT CO.,
LTD.
GUOTAI
JUNAN
Foreign legal 24,58 -152,3 24,58
SECURITIES 7.72%
person 0,755 98.00 0,755
(HONGKON
G) LIMITED
SHENZHEN Pledged 12,150,000
LIANHUA
Domestic
12,15 12,15
HUIREN non-state-owned 3.81% 0 0
0,000 0,000 Frozen 12,150,000
legal person
INDUSTRIA
L CO., LTD.
SHENWAN
2,855,
HONGYUA Foreign legal 10,57 10,57
3.32% 429.0
person 1,275 1,275
N 0
SECURITIES
40
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
(HK)
LIMITED
CHINA
EVERBRIG
HT Foreign legal 4,226, 4,226,
1.33% 0
SECURITIES person 600 600
(HK)
LIMITED
4,182,
TANG Domestic 4,182, 4,182,
1.31% 300.0
HAIMING natural person 300 300
0
ESSENCE
INTERNATI
ONAL 4,018,
Foreign legal 4,018, 4,018,
SECURITIES 1.26% 972.0
person 972 972
（HONG 0
KONG）
LIMITED
XING
Domestic 1,555, 823,3 1,555,
YINGSHEN 0.49%
natural person 170 40.00 170
G
CHEN Domestic 1,513, 1,632. 1,513,
0.48%
JIANXING natural person 851 00 851
Strategic investor or general legal
person becoming a top-10
N/A
ordinary shareholder due to rights
issue (if any) (see note 3)
Shenzhen Shenghengchang Huifu Industrial Co., Ltd., Shenzhen Risheng Chuangyuan
Related or acting-in-concert Asset Management Co., Ltd. and Shenzhen Lianhua Huiren Industrial Co., Ltd., which
parties among the shareholders belonged to action-in-concert promulgated by Measures for the Administration of
above Disclosure of Information on the Change of Shareholdings in Listed Companies. The
Company did not know whether there existed related relationship among other shareholders.
Top 10 public shareholders
Shares by type
Name of shareholder public shares held at the period-end
Type Shares
GUOTAI JUNAN Domestically
SECURITIES(HONGKONG) 24,580,755 listed foreign 24,580,755
LIMITED share
Domestically
SHENWAN HONGYUAN 10,571,275 10,571,275
listed foreign
41
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
SECURITIES (HK) LIMITED share
Domestically
CHINA EVERBRIGHT
4,226,600 listed foreign 4,226,600
SECURITIES (HK) LIMITED
share
Domestically
TANG HAIMING 4,182,300 listed foreign 4,182,300
share
ESSENCE INTERNATIONAL Domestically
SECURITIES （HONG KONG） 4,018,972 listed foreign 4,018,972
LIMITED share
Domestically
XING YINGSHENG 1,555,170 listed foreign 1,555,170
share
Domestically
CHEN JIANXING 1,513,851 listed foreign 1,513,851
share
Domestically
FAN JIONGYANG 1,509,100 listed foreign 1,509,100
share
Domestically
CHEN JINMING 765,500 listed foreign 765,500
share
Domestically
ZHOU HONG 732,919 listed foreign 732,919
share
Related or acting-in-concert
parties among top 10 unrestricted
public shareholders, as well as
Unknown
between top 10 unrestricted
public shareholders and top 10
shareholders
Top 10 ordinary shareholders
involved in securities margin N/A
trading (if any) (see note 4)
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
42
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
IV. Change of the Controlling Shareholder or the Actual Controller
Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Change of the actual controller in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
43
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Part VII Preferred Shares
□ Applicable √ Not applicable
No preferred shares in the Reporting Period.
44
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Part VIII Directors, Supervisors, Senior Management and Staff
I Change in Shareholdings of Directors, Supervisors and Senior Management
□ Applicable √ Not applicable
There were no changes in shareholdings of directors, supervisors, and senior management in the Reporting Period. For details, see
Annual Report of 2018.
II Changes in Directors, Supervisors and Senior Management
□ Applicable √ Not applicable
There were no changes in directors, supervisors, and senior management in the Reporting Period. For details, see Annual Report of
2018.
45
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Part IX Corporate Bonds
Are there any corporate bonds publicly offered and listed on the stock exchange, which were undue before the approval date of this
Report or were due but could not be redeemed in full?
No
46
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Part X Financial Statements
I. Auditor’s Report
Whether the interim report has been audited?
□Yes √ No
The interim report of the Company has not been audited.
II. Financial Statements
The unit of the financial statements attached: RMB
1. Consolidated Balance Sheet
Prepared by Guangdong Jadiete Holdings Group Company Limited
30 June 2019
Unit: RMB
Item 30 June 2019 31 December 2018
Current assets:
Monetary capital 526,048.79 1,613,340.23
Settlement reserve
Interbank loans granted
Trading financial assets
Financial assets at fair value
through profit or loss
Derivative financial assets
Notes receivable
Accounts receivable 16,039,856.58 22,021,179.73
Financing backed by accounts
receivable
Prepayments 490,604.68 30,946,946.32
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 4,222,660.20 4,189,883.29
47
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 186,049,562.84 158,915,234.32
Contract assets
Assets classified as held for sale 149,998,221.71 149,998,221.71
Current portion of non-current
assets
Other current assets 27,132,819.68 23,600,078.85
Total current assets 384,459,774.48 391,284,884.45
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Available-for-sale financial assets
Investments in other debt
obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments 100,600,000.00 100,600,000.00
Investments in other equity
instruments
Other non-current financial assets
Investment property 4,708,489.66 4,774,374.35
Fixed assets 33,783,352.69 34,965,810.73
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 8,183,050.74 8,444,458.00
R&D expense 300,705.00
Goodwill
Long-term prepaid expense 480,563.57 536,172.24
Deferred income tax assets 3,794,456.32 3,996,186.93
Other non-current assets
48
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Total non-current assets 151,549,912.98 153,617,707.25
Total assets 536,009,687.46 544,902,591.70
Current liabilities:
Short-term borrowings
Borrowings from central bank
Interbank loans obtained
Trading financial liabilities
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities
Notes payable
Accounts payable 16,244,371.35 16,141,549.26
Advances from customers 86,214,192.53 86,215,991.53
Financial assets sold under
repurchase agreements
Customer deposits and interbank
deposits
Payables for acting trading of
securities
Payables for underwriting of
securities
Payroll payable 1,861,987.35 1,369,295.25
Taxes payable 24,393,569.94 23,985,993.86
Other payables 41,221,126.99 46,728,023.22
Including: Interest payable
Dividends payable
Handling charges and commissions
payable
Reinsurance payables
Contract liabilities
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current
14,888.00 59,552.00
liabilities
Other current liabilities
Total current liabilities 169,950,136.16 174,500,405.12
49
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 169,950,136.16 174,500,405.12
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 stock
Other comprehensive income
Specific reserve
Surplus reserves 86,036,260.20 86,036,260.20
General reserve
Retained earnings -122,102,755.07 -117,840,473.36
Total equity attributable to owners of
334,836,779.93 339,099,061.64
the Company as the parent
Non-controlling interests 31,222,771.37 31,303,124.94
Total owners’ equity 366,059,551.30 370,402,186.58
Total liabilities and owners’ equity 536,009,687.46 544,902,591.70
Legal representative: Chen Hongcheng (acting) Chief financial officer: Chen Jincai
Head of financial department: Zeng Zhihua
50
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 June 2019 31 December 2018
Current assets:
Monetary capital 165,598.81 150,376.48
Trading financial assets
Financial assets at fair value
through profit or loss
Derivative financial assets
Notes receivable
Accounts receivable 0.00 0.00
Financings backed by accounts
receivable
Prepayments
Other receivables 124,219,989.86 124,003,172.06
Including: Interest receivable
Dividends receivable
Inventories
Contract assets
Assets classified as held for sale 149,998,221.71 149,998,221.71
Current portion of non-current
assets
Other current assets
Total current assets 274,383,810.38 274,151,770.25
Non-current assets:
Investments in debt obligations
Available-for-sale financial assets
Investments in other debt
obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments 180,600,008.26 180,758,208.26
Investments in other equity
instruments
Other non-current financial assets
51
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Investment property 4,708,489.66 4,774,374.35
Fixed assets 32,337,031.89 33,386,544.09
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 8,183,050.74 8,316,682.67
R&D expense
Goodwill
Long-term prepaid expense
Deferred income tax assets 2,527,871.57 2,565,371.57
Other non-current assets
Total non-current assets 228,356,452.12 229,801,180.94
Total assets 502,740,262.50 503,952,951.19
Current liabilities:
Short-term borrowings
Trading financial liabilities
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 75,178,103.66 75,178,103.66
Contract liabilities
Payroll payable 1,459,647.57 930,883.49
Taxes payable 17,137,469.89 16,728,652.55
Other payables 16,165,900.82 14,802,406.86
Including: Interest payable
Dividends payable
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 109,960,564.58 107,659,489.20
52
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 109,960,564.58 107,659,489.20
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 stock
Other comprehensive income
Specific reserve
Surplus reserves 86,036,260.20 86,036,260.20
Retained earnings -63,986,058.86 -60,472,294.79
Total owners’ equity 392,779,697.92 396,293,461.99
Total liabilities and owners’ equity 502,740,262.50 503,952,951.19
3. Consolidated Income Statement
Unit: RMB
Item H1 2019 H1 2018
1. Revenue 895,132.43 94,049,651.75
Including: Operating revenue 895,132.43 94,049,651.75
Interest income
53
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Premium income
Handling charge and
commission income
2. Costs and expenses 5,921,830.38 101,142,729.49
Including: Cost of sales 850,626.81 93,356,686.67
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 surcharges 415,416.54 496,613.91
Selling expense 298,502.64 1,129,119.53
Administrative expense 4,309,639.91 6,096,595.06
R&D expense
Finance costs 47,664.48 63,714.32
Including: Interest
expense
Interest
income
Add: Other income
Return on investment (“-” for
77,525.28 536.00
loss)
Including: Share of profit or
loss of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost (“-” for loss)
Foreign exchange gain (“-” for
loss)
Net gain on exposure hedges (“-”
for loss)
54
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Gain on changes in fair value
(“-” for loss)
Credit impairment loss (“-” for
loss)
Asset impairment loss (“-” for
796,995.35 2,942,220.19
loss)
Asset disposal income (“-” for
loss)
3. Operating profit (“-” for loss) -4,152,177.32 -4,150,321.55
Add: Non-operating income 13,276.95 600,000.00
Less: Non-operating expense 2,004.30 189,007.15
4. Profit before tax (“-” for loss) -4,140,904.67 -3,739,328.70
Less: Income tax expense 201,730.61 768,741.42
5. Net profit (“-” for net loss) -4,342,635.28 -4,508,070.12
5.1 By operating continuity
5.1.1 Net profit from continuing
operations (“-” for net loss)
5.1.2 Net profit from discontinued
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
-4,262,281.71 -5,004,199.91
owners of the Company as the parent
5.2.1 Net profit attributable to
-80,353.57 496,129.79
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 caused by
remeasurements on defined benefit
pension schemes
6.1.2 Other comprehensive
income that will not be reclassified to
profit or loss under the equity method
6.1.3 Changes in the fair value
of investments in other equity
55
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
instruments
6.1.4 Changes in the fair value
of the company’s credit risks
6.1.5 Other
6.2 Items that will be reclassified
to profit or loss
6.2.1 Other comprehensive
income that will be reclassified to
profit or loss under the equity method
6.2.2 Changes in the fair value
of investments in other debt obligations
6.2.3 Gain/Loss on changes in
the fair value of available-for-sale
financial assets
6.2.4 Other comprehensive
income arising from the reclassification
of financial assets
6.2.5 Gain/Loss arising from
the reclassification of held-to-maturity
investments to available-for-sale
financial assets
6.2.6 Allowance for credit
impairments in investments in other
debt obligations
6.2.7 Reserve for cash flow
hedges
6.2.8 Differences arising from
the translation of foreign
currency-denominated financial
statements
6.2.9 Other
Attributable to non-controlling
interests
7. Total comprehensive income -4,342,635.28 -4,508,070.12
Attributable to owners of the
-4,262,281.71 -5,004,199.91
Company as the parent
Attributable to non-controlling
-80,353.57 496,129.79
interests
8. Earnings per share
56
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
8.1 Basic earnings per share -0.0136 -0.016
8.2 Diluted earnings per share -0.0136 -0.016
Where business combinations under common control occurred in the Current Period, the net profit achieved by the acquirees before
the combinations was RMB , with the amount for the same period of last year being RMB .
Legal representative: Chen Hongcheng (acting) Chief financial officer: Chen Jincai
Head of financial department: Zeng Zhihua
4. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2019 H1 2018
1. Operating revenue 0.00 0.00
Less: Cost of sales 0.00 0.00
Taxes and surcharges 414,000.00 414,000.00
Selling expense
Administrative expense 3,208,603.19 4,495,612.33
R&D expense
Finance costs 3,168.91 33,208.37
Including: Interest expense
Interest income
Add: Other income
Return on investment (“-” for
loss)
Including: Share of profit or
loss of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost (“-” for loss)
Net gain on exposure hedges
(“-” for loss)
Gain on changes in fair value
(“-” for loss)
Credit impairment loss (“-” for
loss)
Asset impairment loss (“-” for
150,000.00 368,000.00
loss)
57
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Asset disposal income (“-” for
loss)
2. Operating profit (“-” for loss) -3,475,772.10 -4,574,820.70
Add: Non-operating income
Less: Non-operating expense 491.97 191.37
3. Profit before tax (“-” for loss) -3,476,264.07 -4,575,012.07
Less: Income tax expense 37,500.00 92,000.00
4. Net profit (“-” for net loss) -3,513,764.07 -4,667,012.07
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 caused by
remeasurements on defined benefit
pension schemes
5.1.2 Other comprehensive
income that will not be reclassified to
profit or loss under the equity method
5.1.3 Changes in the fair value
of investments in other equity
instruments
5.1.4 Changes in the fair value
of the company’s credit risks
5.1.5 Other
5.2 Items that will be reclassified
to profit or loss
5.2.1 Other comprehensive
income that will be reclassified to
profit or loss under the equity method
5.2.2 Changes in the fair value
of investments in other debt
obligations
5.2.3 Gain/Loss on changes in
the fair value of available-for-sale
58
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
financial assets
5.2.4 Other comprehensive
income arising from the
reclassification of financial assets
5.2.5 Gain/Loss arising from the
reclassification of held-to-maturity
investments to available-for-sale
financial assets
5.2.6 Allowance for credit
impairments in investments in other
debt obligations
5.2.7 Reserve for cash flow
hedges
5.2.8 Differences arising from
the translation of foreign
currency-denominated financial
statements
5.2.9 Other
6. Total comprehensive income -3,513,764.07 -4,667,012.07
7. Earnings per share
7.1 Basic earnings per share -0.01 -0.015
7.2 Diluted earnings per share -0.01 -0.015
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2019 H1 2018
1. Cash flows from operating
activities:
Proceeds from sale of commodities
7,826,572.35 242,538,551.98
and rendering of services
Net increase in customer deposits
and interbank deposits
Net increase in borrowings from
central bank
Net increase in loans from other
financial institutions
Premiums received on original
insurance contracts
59
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Interest, handling charges and
commissions received
Net increase in interbank loans
obtained
Net increase in proceeds from
repurchase transactions
Net proceeds for acting trading of
securities
Tax rebates 2,173.89
Cash generated from other
1,992,810.90 32,140,506.72
operating activities
Subtotal of cash generated from
9,819,383.25 274,681,232.59
operating activities
Payments for commodities and
997,743.40 239,773,853.88
services
Net increase in loans and advances
to customers
Net increase in deposits in central
bank and in interbank loans granted
Payments for claims on original
insurance contracts
Net increase in financial assets
held for trading
Net increase in interbank loans
granted
Interest, handling charges and
commissions paid
Policy dividends paid
Cash paid to and for employees 1,586,917.31 3,430,108.55
Taxes paid 34,764.88 520,780.47
Cash used in other operating
8,198,760.69 32,162,181.12
activities
Subtotal of cash used in operating
10,818,186.28 275,886,924.02
activities
Net cash generated from/used in -998,803.03 -1,205,691.43
60
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
operating activities
2. Cash flows from investing
activities:
Proceeds from disinvestment 6,852.00
Return on investment
Net proceeds from the disposal of
fixed assets, intangible assets and
other long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other
investing activities
Subtotal of cash generated from
6,852.00
investing activities
Payments for the acquisition of
fixed assets, intangible assets and 56,858.03 565,214.37
other long-lived assets
Payments for investments
Net increase in pledged loans
granted
Net payments for the acquisition of
30,000.00
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
86,858.03 565,214.37
activities
Net cash generated from/used in
-86,858.03 -558,362.37
investing activities
3. Cash flows from financing
activities:
Capital contributions received
Including: Capital contributions
by non-controlling interests to
subsidiaries
Borrowings obtained
Net proceeds from issuance of bonds
Cash generated from other
financing activities
61
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Subtotal of cash generated from
financing activities
Repayments 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
33.95 14.06
changes on cash and cash equivalents
5. Net increase in cash and cash
-1,085,627.11 -1,764,039.74
equivalents
Add: Cash and cash equivalents,
1,611,675.90 2,956,199.38
beginning of the period
6. Cash and cash equivalents, end of
526,048.79 1,192,159.64
the period
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2019 H1 2018
1. Cash flows from operating
activities:
Proceeds from sale of commodities
and rendering of services
Tax rebates
Cash generated from other
7,799,372.29 29,815,585.86
operating activities
Subtotal of cash generated from
7,799,372.29 29,815,585.86
operating activities
Payments for commodities and
services
Cash paid to and for employees 542,765.06 487,587.87
62
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Taxes paid 5,531.83 39,194.45
Cash used in other operating
7,205,853.07 29,230,851.65
activities
Subtotal of cash used in operating
7,754,149.96 29,757,633.97
activities
Net cash generated from/used in
45,222.33 57,951.89
operating activities
2. Cash flows from investing
activities:
Proceeds from disinvestment
Return on investment
Net proceeds from the disposal of
fixed assets, intangible assets and
other long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other
investing activities
Subtotal of cash generated from
investing activities
Payments for the acquisition of
fixed assets, intangible assets and
other long-lived assets
Payments for investments
Net payments for the acquisition of
30,000.00
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
30,000.00
activities
Net cash generated from/used in
-30,000.00
investing activities
3. Cash flows from financing
activities:
Capital contributions received
Borrowings obtained
Net proceeds from the issuance of
bonds
63
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Cash generated from other
financing activities
Subtotal of cash generated from
financing activities
Repayments of borrowings
Payments for interest and
dividends
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
changes on cash and cash equivalents
5. Net increase in cash and cash
15,222.33 57,951.89
equivalents
Add: Cash and cash equivalents,
150,376.48 166,675.93
beginning of the period
6. Cash and cash equivalents, end of
165,598.81 224,627.82
the period
7. Consolidated Statements of Changes in Owners’ Equity
H1 2019
Unit: RMB
H1 2019
Equity attributable to owners of the Company as the parent
Other equity Othe
Non Tota
instruments Less r
-con l
Sha Capi : com Spec Surp Gen Reta
Item trolli own
re tal Trea preh ific lus eral ined Othe Subt
Pre Per ng ers’
cap fer pet Ot reser sury ensi reser reser reser earni r otal
red ual inter equit
ital sha bo her ves stoc ve ve ves ve ngs
ests y
res nds k inco
me
318 52,3 86,0 -117 339, 31,3 370,
1. Balances as
,60 03,2 36,2 ,840, 099, 03,1 402,
at the end of
0,0 74.8 60.2 473. 061. 24.9 186.
the prior year
00. 0 0 36 64 4 58
64
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
00
Add:
Adjustments
for changed
accounting
policies
Adjustments
for
corrections of
previous
errors
Adjustments
for business
combinations
under
common
control
Other
adjustments
318
2. Balances as 52,3 86,0 -117 339, 31,3 370,
,60
at the 03,2 36,2 ,840, 099, 03,1 402,
0,0
beginning of 74.8 60.2 473. 061. 24.9 186.
00.
the year 0 0 36 64 4 58
00
3. Increase/
-4,2 -4,2 -4,3
decrease in -80,
62,2 62,2 42,6
the period 353.
81.7 81.7 35.2
(“-” for 57
1 1 8
decrease)
-4,2 -4,2 -4,3
3.1 Total -80,
62,2 62,2 42,6
comprehensiv 353.
81.7 81.7 35.2
e income 57
1 1 8
3.2 Capital
increased and
reduced by
owners
3.2.1
Ordinary
shares
65
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
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
3.4
Transfers
within
owners’
equity
3.4.1
Increase in
capital (or
share capital)
66
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
from surplus
reserves
3.4.3
Loss offset by
surplus
reserves
3.4.4
Changes in
defined
benefit
pension
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensiv
e income
transferred to
retained
earnings
3.4.6
Other
3.5
Specific
reserve
3.5.1
Increase in
the period
3.5.2
Used in the
period
3.6 Other
4. Balances as 318 52,3 86,0 -122 334, 31,2 366,
67
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
at the end of ,60 03,2 36,2 ,102, 836, 22,7 059,
the period 0,0 74.8 60.2 755. 779. 71.3 551.
00. 0 0 07 93 7 30
00
H1 2018
Unit: RMB
H1 2018
Equity attributable to owners of the Company as the parent
Other equity Othe
instruments Less r Non- Total
Sha Capi : com Spec Surp Gen Reta contr owne
Item Pr Pe
re tal Trea preh ific lus eral ined Othe Subt olling rs’
efe rpe
cap rre tua Oth reser sury ensi reser reser reser earni r otal intere equit
d l
ital er ves stoc ve ve ves ve ngs sts y
sh bo
are nd k inco
s s
me
318
1. Balances 52,3 86,0 -104 352,
,60 40,62 393,1
as at the end 03,2 36,2 ,447, 491,
0,0 6,566 18,22
of the prior 74.8 60.2 877. 657.
00. .76 4.56
year 0 0 20 80
00
Add:
Adjustments
for changed
accounting
policies
Adjustments
for
corrections of
previous
errors
Adjustments
for business
combinations
under
common
control
Other
adjustments
68
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
318
2. Balances 52,3 86,0 -104 352,
,60 40,62 393,1
as at the 03,2 36,2 ,447, 491,
0,0 6,566 18,22
beginning of 74.8 60.2 877. 657.
00. .76 4.56
the year 0 0 20 80
00
3. Increase/
-5,0 -5,0
decrease in -4,50
04,1 04,1 496,1
the period 8,070
99.9 99.9 29.79
(“-” for .12
1 1
decrease)
-5,0 -5,0
3.1 Total -4,50
04,1 04,1 496,1
comprehensi 8,070
99.9 99.9 29.79
ve income .12
1 1
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
Appropriatio
69
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
n to surplus
reserves
3.3.2
Appropriatio
n to general
reserve
3.3.3
Appropriatio
n to owners
(or
shareholders)
3.3.4
Other
3.4
Transfers
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
Loss offset
by surplus
reserves
3.4.4
Changes in
defined
benefit
pension
schemes
transferred to
retained
70
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
earnings
3.4.5
Other
comprehensi
ve income
transferred to
retained
earnings
3.4.6
Other
3.5
Specific
reserve
3.5.1
Increase in
the period
3.5.2
Used in the
period
3.6 Other
318
52,3 86,0 -109 347,
4. Balances ,60 41,12 388,6
03,2 36,2 ,452, 487,
as at the end 0,0 2,696 10,15
74.8 60.2 077. 457.
of the period 00. .55 4.44
0 0 11 89
00
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2019
Unit: RMB
H1 2019
Other equity Other
instruments Capita Less: compr Specifi Surplu Retai
Share Total
Item l Treasu ehensi c s ned
Prefe Perp
capit Other owners’
rred etual Othe reserv ry ve reserv reserv earni
al equity
share bond r es stock incom e es ngs
s s e
-60,4
1. Balances as 318,6 52,129 86,036
72,2 396,293,
at the end of 00,00 ,496.5 ,260.2
94.7 461.99
the prior year 0.00 8 0
9
71
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Add:
Adjustments
for changed
accounting
policies
Adjustments
for corrections
of previous
errors
Other
adjustments
2. Balances as -60,4
318,6 52,129 86,036
at the 72,2 396,293,
00,00 ,496.5 ,260.2
beginning of 94.7 461.99
0.00 8 0
the year 9
3. Increase/
-3,51
decrease in the -3,513,7
3,76
period (“-” for 64.07
4.07
decrease)
3.1 Total -3,51
-3,513,7
comprehensive 3,76
64.07
income 4.07
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
72
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
owners’ equity
3.2.4
Other
3.3 Profit
distribution
3.3.1
Appropriation
to surplus
reserves
3.3.2
Appropriation
to owners (or
shareholders)
3.3.3
Other
3.4
Transfers
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
Loss offset by
surplus
reserves
3.4.4
Changes in
defined benefit
pension
schemes
transferred to
73
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
retained
earnings
3.4.5
Other
comprehensive
income
transferred to
retained
earnings
3.4.6
Other
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2
Used in the
period
3.6 Other
-63,9
4. Balances as 318,6 52,129 86,036
86,0 392,779,
at the end of 00,00 ,496.5 ,260.2
58.8 697.92
the period 0.00 8 0
6
H1 2018
Unit: RMB
H1 2018
Other equity
Other
instruments
Capit Less: compr Surpl Retaine
Shar Pref Specifi Total
Item e Perp al Treas ehensi us d
erre c Other owners’
capit etual Othe reserv ury ve reserv earning
al d reserve equity
bon r es stock incom es s
shar
ds e
es
1. Balances 318,
52,12 86,03
as at the end 600, -62,047 394,718,
9,496. 6,260
of the prior 000. ,542.95 213.83
58 .20
year 00
Add:
Adjustments
for changed
74
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
accounting
policies
Adjustments
for
corrections of
previous
errors
Other
adjustments
2. Balances 318,
52,12 86,03
as at the 600, -62,047 394,718,
9,496. 6,260
beginning of 000. ,542.95 213.83
58 .20
the year 00
3. Increase/
decrease in
-4,667, -4,667,01
the period
012.07 2.07
(“-” for
decrease)
3.1 Total
-4,667, -4,667,01
comprehensiv
012.07 2.07
e 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’
75
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
equity
3.2.4
Other
3.3 Profit
distribution
3.3.1
Appropriatio
n to surplus
reserves
3.3.2
Appropriatio
n to owners
(or
shareholders)
3.3.3
Other
3.4
Transfers
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
Loss offset
by surplus
reserves
3.4.4
Changes in
defined
benefit
76
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
pension
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensiv
e income
transferred to
retained
earnings
3.4.6
Other
3.5
Specific
reserve
3.5.1
Increase in
the period
3.5.2
Used in the
period
3.6 Other
318,
4. Balances 52,12 86,03
600, -66,714 390,051,
as at the end 9,496. 6,260
000. ,555.02 201.76
of the period 58 .20
00
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, 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
77
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
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 2019, 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
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 30th Meeting of the 7th Board of Directors of
the Company on 26 August 2019.
There were 4 main bodies included in the consolidated financial statement scope at the period-end
of the Reporting Period, which specifically including:
Shareholding proportion Voting right proportion
Name of the subsidiary Type of the subsidiary
(%) (%)
Shenzhen Rieys Industrial Co., Limited liability
90.00 90.00
Ltd. company
Tianrui (Hong Kong) Limited liability 100.00 100.00
78
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Trading Co., Ltd. company
Shenzhen Chinese Gold Limited liability
51.00 51.00
Nobility Jewelry Co., Ltd. company
Shanghai Yunpeng Internet 60.00 60.00
Limited company
Technology Co., Ltd
Shenzhen Magake Blue Arrow Technology Co., Ltd. was not included into the scope of the consolidated financial statement
because its equity has been sold during the Reporting Period. for more details, please refer to “VIII. Changes of
Consolidation Scope” and “IX. Equity in Other Entities”.
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 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:
Naught
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 2019, as well as the merger, business
results and the merger and cash flows for the first half year of 2019.
79
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
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:
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
80
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
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 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
81
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
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 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.
82
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
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 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. 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.
8. 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.
(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
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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.
9. 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 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
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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 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.
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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 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 period. The accumulative losses that
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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.
10. Accounts Receivable
At the end of the reporting period, if objective evidences indicate that accounts receivable (including accounts
receivable, bills receivable, other accounts receivable and long-term accounts receivable etc.) depreciate,
corresponding book value shall be written down to the recoverable amount. The write-down amount shall be
recognized as the assets impairment loss and calculated into the current loss and gain.
The advance payment shall regard its nature as the risk features. In terms of the advance payment for purchasing
the goods or equipment before the agreed delivery date or if the contract is left unsettled in despite of the delivery
of goods, corresponding provision for bad debts shall not be calculated and withdrawn; when the other party fails
to deliver the goods as scheduled for more than one year after the contract is established, corresponding provision
for bad debts shall be calculated and withdrawn according to the risk features of account receivables. In terms of
the advance payment for the construction work, corresponding provision for bad debts shall not be calculated and
withdrawn before all amounts are fully paid and the construction work’s ownership is expected to be obtained.
In terms of accounts receivable incurred among the group’s internal units, corresponding provision for bad debts
shall be calculated and withdrawn according to the estimated bad debt loss.
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At the end of the reporting period, the impairment test shall be separately conducted for the account receivable of
significant single amount. If corresponding objective evidence proves its depreciation, the impairment loss shall
be recognized and corresponding provision for bad debts shall be calculated and withdrawn according to the
difference resulting from its future cash flow’s current value less than its book value.
Significant single amount refers to the sum of the top 5 account receivable balances or the accounts occupying
over 10% of account receivable balances.
For the account receivable of insignificant single amount at the end of the reporting period, the impairment test
shall be separately conducted; it’s required to separately test the account receivable (including the account
receivable of significant single amount and that of insignificant single amount) not subject to the depreciation, and
include it into the account receivable group of similar credit risk features. However, the impairment loss shall be
determined and corresponding provision for bad debts shall be calculated and withdrawn based on a certain
proportion of the period-end balance of these account receivable groups.
Except the account receivable whose provision for impairment shall be separately calculated and withdrawn, the
Company shall determine the specific proportion applied to calculate and withdraw the bad debt provision
according to equivalent or similar actual loss rate possessing similar credit risk features to those accounts
receivable divided based on the aging and in line with the actual situation:
Type of group Basis for recognizing group Method of withdrawing bad debt
provision according to group
Aging group Aging state Aging analysis method
In the aging groups, adopting aging analysis method to withdraw bad debt provision:
Aging Withdrawal proportion for Withdrawal proportion for
accounts receivable % other receivables %
Within 1 year (including 1 year) 2 2
1 to 2 years 10 10
2 to 3 years 50 50
3 to 5 years 80 80
Over 5 years 100 100
11. 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 was classified into:
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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.
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.
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.
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12. Assets Held for Sale
(1) Recognition Standards of Held-for-sale Assets
The Company shall recognize the non-current assets or assets group meeting the following conditions as the
held-for-sale assets. This part of assets is available for immediate sales according to the applicable clauses; the
enterprise has concluded corresponding resolution on disposing this part of assets. If the shareholders’ approval is
obtained as required, it shall be deemed that the approval from the shareholder meeting or competent authority is
also obtained; if the enterprise has signed the non-cancellable transfer agreement with the transferee, such transfer
will be completed within one year.
(2) Accounting Treatment Methods applied to Held-for-sale Assets
For the held-for-sale fixed assets, it’s required to adjust its estimated net residual value, enabling the fixed assets’
estimated net residual value to reflect the amount by deducting the disposal expenses from its fair value without
exceeding the original book value when various held-for-sale conditions are met. The difference between the
original book value and the adjusted estimated net residual value shall be calculated into the current loss and gain
as the assets impairment loss. Other held-for-sale non-current assets shall be treated by obeying the
above-mentioned principles. The held-for-sale non-current assets shall include the single assets and the treatment
group. The treatment group refers to a group of assets sold as a whole or treated by other means.
(3) Liabilities vested in the Held-for-sale Treatment Group
The Company shall list the liabilities divided into the held-for-sale treatment group as the liabilities vested in the
held-for-sale treatment group. The long-term equity investment mentioned here refers to the investment subject to
the control, joint control or significant influence of the Company over/on the invested unit. The long-term equity
investment not subject to the control, joint control or significant influence of the Company over/on the invested
unit shall be regarded as the available-for-sale financial assets or calculated as the financial assets measured at its
fair value with variations included in the current loss and gain. Please refer to Note IV (9)—Financial Instrument
for detailed accounting policies.
13. Long-term Equity Investment
The long-term equity investments of this part refer to the long-term equity investments that the 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,
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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 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,
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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 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
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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 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
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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.
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.
14. Investment Property
Measurement mode of investment real estates
Measurement of cost method
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Depreciation or amortization method
Investment property 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.
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.
15. 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.
Upon acquired, the fixed assets shall be initially measured based on the actual cost.
A. The cost of purchased fixed assets shall be determined according to the purchase price, related taxes and transportation expenses,
loading/unloading expenses, installation expenses and professional service expenses that can be attributed to the assets before
enabling the fixed assets to achieve its designed serviceable status.
B. As the delayed payment for purchasing the fixed assets beyond the normal credit conditions is substantially of the financing nature,
the cost of fixed assets shall be determined based on the current value of the purchase price. The cost of the self-built fixed assets
shall consist of all necessary expenditures incurred before the assets achieve its designed serviceable status.
C. The entry value of the fixed assets obtained by the debtor to pay a debt through debt restructuring shall be determined based on the
fair value of the fixed assets, and the difference between the book value of the restructured debt and the fair value of the fixed assets
applied to pay a debt shall be included into the current loss and gain;
D. When the non-currency assets’ exchange is of the commercial nature and the fair value of the swap-in assets or the swap-out assets
can be reliably measured, corresponding entry value of the swap-in assets shall be determined based on the fair value of the swap-out
assets unless the solid evidence is available to prove that the swap-in assets’ fair value is more reliable; for the non-currency assets
exchange not meeting the above-mentioned conditions, the book value of the swap-out assets and related taxes payable shall be the
cost of the swap-in fixed assets without recognizing the loss and gain.
E. The entry value of fixed assets obtained by means of the enterprise consolidation by merger under the same control shall be
determined based on the book value of the consolidated party; the entry value of fixed assets obtained by means of the enterprise
consolidation by merger not under the same control shall be determined based on its fair value.
(2) Depreciation Methods
Category of fixed Expected net salvage
Method Useful life Annual deprecation
assets value
Buildings and
Straight-line method 35 years 5% 2.71%
constructions
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Machinery equipment Straight-line method 10 years 5% 9.50%
Transportation
Straight-line method 8 years 5% 11.88%
equipment
Office equipment and
Straight-line method 5 years 5% 19.00%
others
Of which, the fixed assets with impairment allowance shall also be deducted the accumulated
amount of withdrawn impairment allowance for fixed assets to account the depreciation rate.
For the remodeling expense of fixed assets meeting with the capitalization condition, the
depreciation shall be withdrawn separately with the straight-line method during the shorter period
between the period of two decorations and the period of the service period of fixed assets (2 to 5
years).
(3) Recognition Basis, Pricing and Depreciation Method of Fixed Assets by Finance Lease
The entry value of the fixed assets subject to the financial lease shall be determined according to the lower between the fair value of
the leasing assets on the commencement date of lease and the current value of the minimum lease payment.
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.
16. Construction in Progress
(1) Classification of construction in progress
The Construction in progress will be calculated based on the classification of proposed projects.
(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.
17. 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
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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
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.
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18. 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 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.
(2) 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.
19. 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.
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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 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.
20. Long-term Deferred Expense
Long-term deferred expense 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.
21. Payroll
(1) Accounting Treatment of Short-term Compensation
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 and withdraw proportion
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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 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.
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(3) Accounting Treatment of the Demission Welfare
Dismission welfare refers to the compensation given to the employees for terminating the labor relationship
before the labor contract expires or encouraging the employees to voluntarily accept the dismission, which shall
be included in the current loss and gain. 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.
22. 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.
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
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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.
23. 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
(1) Sales of goods
Revenue from the sale of goods is recognized when the enterprise has transferred to the buyer the
significant risks and rewards of ownership of the goods; the enterprise retains neither continuing
managerial involvement to the degree usually associated with ownership nor effective control over
the goods sold; it is probable that the economic benefits associated with the transaction will flow to
the enterprise; and the relevant amount of revenue and costs can be measured reliably.
Real estate sales will be confirmed the realization of revenue thereof upon the complete and
acceptance of real estate, meeting the delivery terms of sales contract, and obtaining the proof of
payment made by the purchasers according to the agreement under the contract on delivering real
estate (usually after receiving the first phase of sales contract payment and confirming the payment
arrangements of the remaining).
(2) Providing service
In case on the preparation date of balance sheet the results about service transaction can be reliably
evaluated, the labor income will be confirmed by the completion percentage method. The
completed percentage of service transactions is determined by the measurement of finished work
(or the proportion of services performed to date to the total services to be performed, or the
proportion of costs incurred to date to the estimated total costs).
The Company will determine the total amount of rendering of service based on the prices in
contracts and agreements that have been received or will be receivable, except that such prices are
not fair. On the balance sheet date, the current labor incomes will be determined based on the
amount after the total labor income amount multiplied by the completion progress deducts the
accumulated labors in the past accounting periods. At the same time, the current labor incomes will
be carried forward based on the amount after the estimated total labor cost multiplied by the
completion progress deducts the accumulated labors in the past accounting periods.
In case the service transaction results on the preparation date of balance sheet cannot be reliably
evaluated, they will be determined in the following methods:
A. In case the service costs that have occurred can be compensated, the service income will be
confirmed based on such service costs and the same amounts will be settled as the service costs.
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B. In case the service costs that have occurred cannot be compensated, such service costs will be
accrued to the current profit or loss and will not be confirmed as the service costs.
(3) Use right of transferred assets
In case the economic benefits related to the transaction will probably flow into the enterprise and
the income amounts can be reliably calculated, the Company will determine the income amount
about use right of transferred assets by the following means:
A. The interest income amount will be calculated and determined based on the use time of currency
capital from the Company by others and actual interest rate.
B. The income amount of use expenses will be calculated and determined subject to the charging
time and method agreed in the relevant contracts and agreements.
24. Government Subsidies
Government grants refer to monetary assets or non-monetary assets obtained free by a company
from the government, but not include the capital invested by government as a business owner.
Government subsidies divide into government subsidies related to assets and government subsidies
related to income.
The government grants should be recognized when simultaneously met with the following
conditions:
A. The Company can meet the conditions for the government subsidies;
B. The enterprise can obtain the government subsidies.
Government grants related to assets are recognized as deferred income and are averagely distributed
in the life of relevant assets, and recorded to current profit or loss. Government grants related to
income are handled under the following circumstances:
A. 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 upon
recognizing related costs;
B. 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.
25. 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
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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.
26. Lease
(1) Accounting Treatment of Operating Lease
(1) The Company as the leasor:
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.
(2) The Company as the leasee:
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.
(2) Accounting Treatments of Finance Lease
(1) The Company as the leasor
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.
(2) 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
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method to confirm the current financing cost.
The Company uses depreciation policy consistent with its own fixed assets to make provision for
depreciation of leased assets.
27. Other Significant Accounting Policies and Estimates
28. Changes in Main Accounting Policies and Estimates
(1) Change of Accounting Policies
√ Applicable □ Not applicable
Changes to the accounting policies and
Approval process Remark
why
The Ministry of Finance issued on 30
April 2019 the Notice on Revising and
The 30th meeting of the 7th Board of
Issuing the Format of Financial
Directors
Statements for General Enterprises of
2019 (CK [2019] No. 6.
The impact of the Company’s execution of the Notice (CK [2019] No. 6) is as follows:
Changes to the accounting Financial statement Amount affected Restated amount
policies and why item affected of the prior period
1. Notes receivable and accounts Notes receivable
receivable presented separately Accounts receivable 16,039,856.58 22,021,179.73
2. Notes payable and accounts Notes payable
payable presented separately Accounts payable 16,244,371.35 16,141,549.26
(2) Significant Changes in Accounting Estimates
□ Applicable √ Not applicable
(3) Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New
Standard Governing Financial Instruments, Revenue or Leases
□ Applicable √ Not applicable
(4) Retrospective Restatement of Previous Comprehensive Data due to the First Execution of any New
Standard Governing Financial Instruments or Lease
□ Applicable √ Not applicable
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29. Other
VI. Taxation
1. Main Taxes and Tax Rate
Category of taxes Tax basis Tax rate
VAT Revenue of product 13%
Consumption tax Revenue of sale of taxable product 5%
Urban maintenance and construction tax VAT payable 7%
Corporate income tax Income tax payable 25%
Revenue of sales of real estate (after
VAT 5%
May 1, 2016, apply a simplified method)
Revenue of sales of real estate (before
Business tax 5%
April 30, 2016)
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
Tianrui (HK) Trading Co., Ltd. 16.5%
2. 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 29,894.38 20,999.74
Bank deposits 350,768.14 1,223,778.75
Other monetary funds 145,386.27 368,561.74
Total 526,048.79 1,613,340.23
106
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Of which: Total amount deposited in
3,590.57 1,391.63
overseas
Other notes:
There was no any account pledged, frozen or with potential recovery risks of the Company at the
period-end.
2. Accounts Receivable
(1) Accounts Receivable Disclosed by Category
Unit: RMB
Ending balance Beginning balance
Bad debt
Carrying amount Carrying amount Bad debt provision
provision
Category Carryin Carrying
Withdr Withdr
Amoun Proport Amoun awal g value Amoun Proport Amoun awal value
t ion t proport t ion t proport
ion ion
Accounts
receivable for
10,158, 34.89 10,158, 100.00 10,148, 10,148, 100.00
which bad debt 0.00 28.39% 0.00
727.64 % 727.64 % 800.54 800.54 %
provision
separately accrued
Of which:
Accounts
receivable
18,956, 65.11 2,917,0 15.39 16,039, 25,595, 3,573,9 22,021,1
withdrawal of bad 71.21% 13.96%
904.64 % 48.06 % 856.58 150.24 70.51 79.73
debt provision by
group
Of which:
18,542, 63.69 2,502,4 13.50 16,039, 25,167, 3,159,4 22,008,5
Portfolio of ageing 70.45% 12.55%
356.13 % 99.55 % 856.58 994.68 22.00 72.68
Accounts
receivable with
insignificant single 414,54 414,54 100.00 427,15 414,54 12,607.0
1.42% 0.00 1.16% 97.05%
amount for which 8.51 8.51 % 5.56 8.51 5
bad debt provision
separately accrued
Total 29,115, 100.00 13,075, 44.91 16,039, 35,743, 100.00 13,722, 38.39% 22,021,1
107
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
632.28 % 775.70 % 856.58 950.78 % 771.05 79.73
Accounts receivable for which bad debt provision separately accrued: RMB10158727.64.
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdrawal
Due to bankruptcy of
the major customer of
Victoria International
(USA) INC, the
Victoria International Company withdrew the
5,934,423.01 5,934,423.01 100.00%
(USA) INC 100% of the bad debt
for the ending balance
RMB5,934,423.01
based on the
conservatism principle
Long-term credit, the
Hong Kong Jinhua
4,224,304.63 4,224,304.63 100.00% Company believes it
Trade Limited
irrecoverable
Total 10,158,727.64 10,158,727.64 -- --
Accounts receivable for which bad debt provision separately accrued: RMB 10,158,727.64.
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdrawal
Accounts receivable for which bad debt provision separately accrued:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdrawal
Accounts receivable withdrawal of bad debt provision by group: RMB2,502,499.55.
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Within 1 year 130,572.75 3,991.88 3.06%
1 to 2 years 17,666,136.81 1,765,352.98 9.99%
2 to 3 years 18,344.56 9,172.28 50.00%
3 to 4 years 14,442.76 11,554.21 80.00%
4 to 5 years 2,155.24 1,724.19 80.00%
Over 5 years 710,704.01 710,704.01 100.00%
108
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Total 18,542,356.13 2,502,499.55 --
Notes of confirming the basis of the groups:
Withdrawal of bad debt provision by group:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Notes of confirming the basis of the groups:
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general mode
of expected credit loss to withdraw bad debt provision of accounts receivable.
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 130,572.75
1 to 2 years 17,666,136.81
2 to 3 years 18,344.56
Over 3 years 727,302.01
3 to 4 years 14,442.76
4 to 5 years 2,155.24
Over 5 years 710,704.01
Total 18,542,356.13
(2) Accounts Receivable Withdraw, Reversed or Collected during the Reporting Period
Information of withdrawal of bad debt provision:
Unit: RMB
Changes in the Reporting Period
Category Beginning balance Reversal or Ending balance
Withdrawal Write-off
recovery
Accounts
receivable
withdrawal of bad
22,021,179.73 0.00 646,995.35 0.00 16,039,856.58
debt provision of
by credit risks
characteristics
Total 22,021,179.73 0.00 646,995.35 0.00 16,039,856.58
Of which significant amount of reversed or recovered bad debt provision:
Unit: RMB
109
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Name of the entity Amount Method
Shanghai Zhaoke Trading Co., Ltd. 6,559,224.50 Bank transfer
Total 6,559,224.50 --
(3) 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., 17,645,769.15 1,764,576.92 60.61
Ltd
Victoria International(USA) 5,934,423.01 5,934,423.01 20.38
INC
Hong Kong Jinhua Trade Limited 4,224,304.63 4,224,304.63 14.51
Hong Kong Heyi Co., Ltd 452,499.70 452,499.70 1.55
Guangzhou Chen Shunqin 335,904.80 335,904.80 1.15
Total 28,592,901.29 12,711,709.06 98.20
3. Prepayment
(1) List by Aging Analysis
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 490,604.68 100.00% 30,911,067.38 99.88%
1 to 2 years 35,878.94 0.12%
Total 490,604.68 -- 30,946,946.32 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settle 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
Mcs Outfitters (Shanghai) Limited 138,109.36 28.15 The contract is not
2018
fulfilled
Shanghai Jiancheng Trading Co., 137,542.25 28.04 The contract is not
2018
Ltd. fulfilled
Shanghai Ruiguo Fashion Co., 100,000.00 20.38 2019年 The contract is not
Ltd. fulfilled
Zhuoyue (Shanghai) Fashion 56,410.14 11.50 The contract is not
2018
Co.,Ltd. fulfilled
110
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Shanghai Ruihe Fashion Co., Ltd. 30,308.69 6.18 The contract is not
2018
fulfilled
Total 456,370.44 94.25 - -
l
Other notes:
4. Other Accounts Receivable
Unit: RMB
Item Ending balance Beginning balance
Other accounts receivable 4,222,660.20 4,189,883.29
Total 4,222,660.20 4,189,883.29
(1) Other Accounts Receivable
1) Other Accounts Receivable Listed by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying balance
Petty cash 343,125.81 811,744.67
The cash pledge and guarantee 251,297.92 148,312.66
Payment on behalf 1,808,789.17 1,734,132.15
Intercourse funds 7,628,691.20 7,454,937.71
Tax 2,331,608.20 2,331,608.20
Total 12,363,512.30 12,480,735.39
2) Withdrawal of Bad Debt Provision
Unit: RMB
First stage Second stage Third stage
Expected credit Expected loss in the Expected loss in the
Bad debt provision Total
loss of the next 12 duration (credit duration (credit
months impairment not occurred) impairment occurred)
Balance of 1 January
8,290,852.10
2019
Balance of 1 January
2019 in the current —— —— —— ——
period
Balance of 30 June
8,140,852.10
2019
Changes of carrying amount with significant amount changed of loss provision in the current period
111
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 2,029,125.36
1 to 2 years 2,266,844.61
2 to 3 years 90,941.50
Over 3 years 5,524,536.82
3 to 4 years 0.00
4 to 5 years 1,592,928.62
Over 5 years 3,931,608.20
Total 9,911,448.29
3) Bad Debt Provision Withdrawal, Reversed or Collected during the Reporting Period
Information of withdrawal of bad debt provision
Unit: RMB
Changes in the Reporting period
Category Beginning balance Ending balance
Withdrawal Reversal or recovery
8,290,852.10 0.00 150,000.00 8,140,852.10
Total 8,290,852.10 0.00 150,000.00 8,140,852.10
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
Zheng Jialing 150,000.00 Cash
Total 150,000.00 --
4) Top 5 of the Ending Balance of the Other Accounts Receivable Collected According to the Arrears Party
Unit: RMB
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 18.86% 2,331,608.20
receivable-VAT
Shenzhen
Minglong Trading Intercourse funds 1,575,035.30 1 to 2 years 12.74% 157,503.53
Co., Ltd.
Suning Banhe
Chemical Fiber Payment on behalf 800,000.00 Over 5 years 6.47% 800,000.00
Simulation Fabric
112
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Co., Ltd.
Guangzhou Panyu
Tanzhou Zhenyu
Textile Printing Intercourse funds 800,000.00 Over 5 years 6.47% 800,000.00
and Dyeing Co.,
Ltd.
Guangdong
Yuanfeng Trade
Intercourse funds 700,000.00 Within 5 years 5.66% 700,000.00
Development Co.,
Ltd.
Total -- 6,206,643.50 -- 50.20% 4,789,111.73
5. Inventory
Whether the Company has executed the new income standards
□ Yes √ No
(1) Category of Inventory
Unit: RMB
Ending balance Beginning balance
Item Carrying Falling price Carrying Falling price
Carrying value Carrying value
amount reserves amount reserves
Raw materials 7,019,915.71 7,019,915.71
Inventory
179,029,647.13 179,029,647.13 151,753,952.17 151,753,952.17
goods
Commissioned
processing 7,019,915.71 7,019,915.71
materials
Delivery
141,366.44 141,366.44
commodity
Total 186,049,562.84 186,049,562.84 158,915,234.32 158,915,234.32
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
Item Beginning Increase Decrease Ending balance
113
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
balance Reserve or
Withdrawal Other Other
write-off
(3) Notes to Inventories with Capitalized Borrowing Expense in Ending Balance
(4) Complete but Unsettled Assets Generated from Construction Contract at the Period-end
Unit: RMB
Item Amount
Other notes:
6. Held-for-sale Assets
Unit: RMB
Ending Estimated
Depreciation Ending Estimated
Item carrying Fair value disposal
reserve carrying value disposal time
amount expense
Shenzhen
Shenguorong
Financing 149,998,221.71 149,998,221.71 150,000,000.00 75,000.00 31 August 2019
Guarantee Co.,
Ltd.
Total 149,998,221.71 149,998,221.71 150,000,000.00 75,000.00 --
Other notes:
On 30 November 2018, the Company signed the equity transfer agreement subject to conditions
with Shenzhen Gaopu Industrial Co., Ltd. to transfer 30% of equity in Shenzhen Shenguorong
Financing Guarantee Co., Ltd. to Shenzhen Gaopu Industrial Co., Ltd. The transaction base date
was on 30 September 2018, and all parties agreed to start the transfer procedures of underlying
shares within five days from the day when aforesaid agreement is validated and Guangdong Jadiete
Holdings Group Co., Ltd. obtained the full amount of 90% equity transfer from Shenzhen Gaopu
Industrial Co., Ltd. As of 30 June 2019, RMB75 million for equity transfer has been received in
accordance with the agreement.
7. Other Current Assets
Whether the Company has executed the new income standards
□ Yes √ No
Unit: RMB
Item Ending balance Beginning balance
Input tax to be verified 27,132,819.68 23,600,078.85
114
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Total 27,132,819.68 23,600,078.85
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.
8. Long-term Equity Investment
Unit: RMB
Increase/decrease
Gains
Ending
Beginni and Cash
Adjust Withdr Ending balance
ng losses bonus
Additio Reduce ment of Change awal of balance of
Investe balance recogni or
nal d other s of depreci (carryin depreci
es (carryin zed profits Other
investm investm compre other ation g ation
g under announ
ent ent hensive equity reserve value) reserve
value) the ced to
income s s
equity issue
method
I. Joint ventures
II. Associated enterprises
Shenzh
en
Shengu
orong
Financi
ng
Guarant
ee Co.,
Ltd.
Shenzh
en
Future
100,60 100,60
Growin
0,000.0 0,000.0
g
0 0
Busines
s Fund
(Limite
115
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
d
Partner
ship)
100,60 100,60
Subtota
0,000.0 0,000.0
l
0 0
100,60 100,60
Total 0,000.0 0,000.0
0 0
Other notes
The Company received the notice from Shenzhen Future Growing Business Fund (hereinafter
referred as “Future Business Fund”) on 30 November 2018 that Future Business Fund has signed
the sale agreement on 28 November 2018 to sell 45% of equity in Shenzhen Jinshitonghe
Investment Co., Ltd. in RMB140 million, among which the first transferred equity amount of
RMB20 million was received on 18 December 2018, and Future Business Fund distributed
RMB19.4 million to the Company on that day.
9. Investment Property
(1) Investment Property Adopting the Cost Measurement Mode
√ Applicable □ not applicable
Unit: RMB
Construction in
Item Houses and buildings Land use right Total
progress
I. Original carrying
value
1. Beginning balance 4,411,933.34 494,210.40 4,906,143.74
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 the period
116
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
(1) Disposal
(2) Other transfer
4. Ending balance 4,411,933.34 494,210.40 4,906,143.74
II. Accumulative
depreciation and
accumulative
amortization
1. Beginning balance 121,769.40 9,999.99 131,769.39
2. Increased amount of
60,884.70 4,999.99 65,884.69
the period
(1) Withdrawal or
60,884.70 4,999.99 65,884.69
amortization
3. Decreased amount
of the period
(1) Disposal
(2) Other transfer
4. Ending balance 182,654.10 14,999.98 197,654.08
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
4,229,279.24 479,210.42 4,708,489.66
value
117
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
2.Beginning carrying
4,290,163.94 484,210.41 4,774,374.35
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
(1) Information of Investment Property
① The amount of depreciation and amortization was RMB65,884.69 in the Reporting Period.
② The withdrawal amount of depreciation reserves for investment property was RMB 0.00.
③ The information of investment property used as mortgage and guarantee: No
(2) Investment Property Failed to Accomplish Certification of Property
There is no certification of property failed to accomplish in the Reporting Period.
(3) Information of property and measurement mode transformation
The Company leased out part of house property at the original factory from 1 January 2018. From
lease commencement date, the houses and land will be transferred to investment property and
measured by cost method.
10. Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 33,783,352.69 34,965,810.73
Total 33,783,352.69 34,965,810.73
(1) List of Fixed Assets
Unit: RMB
Electronic equipment
Item Houses and buildings Transportation Total
and others
118
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
I. Original carrying
value
1. Beginning balance 71,012,106.62 3,848,312.30 1,870,688.24 76,731,107.16
2. Increased amount of
46,760.94 46,760.94
the period
(1) Purchase 46,760.94 46,760.94
(2) Transfer from
construction in
progress
(3) Enterprise
combination increase
3. Decreased amount
of the period
(1) Disposal or scrap
4. Ending balance 71,012,106.62 3,848,312.30 1,917,449.18 76,777,868.10
II. Accumulative
depreciation
1. Beginning balance 38,215,881.43 2,604,039.94 945,375.06 41,765,296.43
2. Increased amount of
937,648.20 130,553.48 161,017.30 1,229,218.98
the period
(1) Withdrawal 937,648.20 130,553.48 161,017.30 1,229,218.98
3. Decreased amount
of the period
(1) Disposal or scrap
4. Ending balance 39,153,529.63 2,734,593.42 1,106,392.36 42,994,515.41
III. Depreciation
reserves
1. Beginning balance
2. Increased amount of
the period
(1) Withdrawal
3. Decreased amount
119
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
of the period
(1) Disposal or scrap
4. Ending balance
IV. Carrying value
1. Ending carrying
31,858,576.99 1,113,718.88 811,056.82 33,783,352.69
value
2. Beginning carrying
32,796,225.19 1,244,272.36 925,313.18 34,965,810.73
value
(2) List of Temporarily Idle Fixed Assets
Unit: RMB
Original carrying Accumulative Impairment
Item Carrying value Notes
value depreciation provision
Houses and
71,012,106.62 39,153,529.63 31,858,576.99 -
buildings
11. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
Computer
Item Land use right Patent right Non-patent right Total
software
I. Original
carrying value
1. Beginning
12,995,874.60 500,890.33 13,496,764.93
balance
2. Increased
amount of the
period
(1) Purchase
(2) Internal R&D
(3) Business
combination
increase
3. Decreased 127,775.33 127,775.33
120
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
amount of the
period
(1) Disposal
Other transfer 127,775.33 127,775.33
4. Ending balance 12,995,874.60 373,115.00 13,368,989.60
II. Accumulated
amortization
1. Beginning
4,679,191.93 373,115.00 5,052,306.93
balance
2. Increased
amount of the 133,631.93 133,631.93
period
(1) Withdrawal 133,631.93 133,631.93
3. Decreased
amount of the
period
(1) Disposal
4. Ending balance 4,812,823.86 373,115.00 5,185,938.86
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 8,183,050.74 0.00 8,183,050.74
121
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
value
2. Beginning
8,316,682.67 127,775.33 8,444,458.00
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 0.00%.
12. Goodwill
(1) Original Carrying Value of Goodwill
Unit: RMB
Name of the
invested units
Beginning
or events Increase Decrease Ending balance
balance
generating
goodwill
SHENZHEN
CHINESE
GOLD
2,395,820.87 2,395,820.87
NOBILITY
JEWELRY
CO., LTD.
Total 2,395,820.87 2,395,820.87
(2) Impairment Provision for Goodwill
Unit: RMB
Name of the
invested units
Beginning
or events Increase Decrease Ending balance
balance
generating
goodwill
SHENZHEN
CHINESE
GOLD
2,395,820.87 2,395,820.87
NOBILITY
JEWELRY
CO., LTD.
Total 2,395,820.87 2,395,820.87
Information on the assets group or combination of assets groups which goodwill belongs to
Notes of the testing process of goodwill impairment, parameters (such as growth rate of the forecast period, growth rate of stable
period, rate of profit, discount rate, forecast period and so on for prediction of future present value of cash flows) and the recognition
122
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
method of goodwill impairment losses:
Influence of testing impairment of goodwill
Other notes
13. Long-term Prepaid Expense
Unit: RMB
Amortization
Other decreased
Item Beginning balance Increased amount amount of the Ending balance
amount
period
Decoration
536,172.24 10,097.09 65,705.76 480,563.57
expense
Total 536,172.24 10,097.09 65,705.76 480,563.57
Other notes
14. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets that Had not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for
15,177,825.28 3,794,456.32 15,984,747.72 3,996,186.93
impairment of assets
Total 15,177,825.28 3,794,456.32 15,984,747.72 3,996,186.93
(2) List of Unrecognized Deferred Income Tax Assets
Unit: RMB
Item Ending balance Beginning balance
Deductible losses 23,294,264.49 25,392,517.11
Total 23,294,264.49 25,392,517.11
(3) Deductible Losses of Unrecognized Deferred Income Tax Assets Will Be Due in the Following Years
Unit: RMB
Years Ending amount Beginning amount Notes
Y2018
Y2019 14,209,131.72 14,209,131.72
123
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Y2020 2,439,938.30 2,439,938.30
Y2021
Y2022 5,418,164.79 5,418,164.79
Y2023 1,227,029.68 3,325,282.30
Total 23,294,264.49 25,392,517.11 --
Other notes:
15. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Loans 16,244,371.35 16,141,549.26
Total 16,244,371.35 16,141,549.26
16. Advances from Customers
Whether the Company has executed the new income standards
□ Yes √ No
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
Loans 11,214,192.53 11,215,991.53
Advances collection of equity transfer 75,000,000.00 75,000,000.00
Total 86,214,192.53 86,215,991.53
(2) Significant Advances from Customers Aging over One Year
Unit: RMB
Item Ending balance Unpaid/ Un-carry-over reason
Jiangxi Yuetong Industrial Co., Ltd. 10,738,840.00 Contract in execution
Total 10,738,840.00 --
(3) Settled but Uncompleted Projects Formed by Construction Contracts at the Period-end
Unit: RMB
124
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Item Amount
Other notes
17. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
I. Short-term salary 1,357,727.74 1,910,990.38 1,406,730.77 1,861,987.35
II. Post-employment
benefit-defined 11,567.51 191,145.42 202,712.93
contribution plans
Total 1,369,295.25 2,102,135.80 1,609,443.70 1,861,987.35
(2) List of Short-term Salary
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Salary, bonus,
1,352,953.22 1,730,008.08 1,220,973.95 1,861,987.35
allowance, subsidy
2. Employee welfare 109,990.00 109,990.00
3. Social insurance 5,380.52 45,408.70 50,789.22
Of which: Medical
4,696.56 40,387.48 45,084.04
insurance premiums
Work-related injury
210.86 1,791.17 2,002.03
insurance
Maternity insurance 473.10 3,230.05 3,703.15
4. Housing fund -606.00 25,583.60 24,977.60
Total 1,357,727.74 1,910,990.38 1,406,730.77 1,861,987.35
(3) List of Defined Contribution Plans
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Basic pension
11,264.72 183,047.66 194,312.38
benefits
2. Unemployment
302.79 8,097.76 8,400.55
insurance
125
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Total 11,567.51 191,145.42 202,712.93
Other notes:
18. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 481,634.11 481,736.10
Corporate income tax 18,044,995.02 18,047,007.75
Property tax 2,580,877.32 2,256,922.32
Land use tax 713,115.00 623,070.00
Other 1,791,634.75 1,795,943.95
Business tax 781,313.74 781,313.74
Total 24,393,569.94 23,985,993.86
Other notes:
19. Other Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Other accounts payable 41,221,126.99 46,728,023.22
Total 41,221,126.99 46,728,023.22
(1) Other Accounts Payable
1) Other Payables Listed by Nature of Account
Unit: RMB
Item Ending balance Beginning balance
Intercourse funds 38,778,585.35 44,505,544.22
Payment on behalf 129,301.64 134,687.40
Rental bond 380,000.00 380,000.00
Other 1,933,240.00 1,707,791.60
Total 41,221,126.99 46,728,023.22
20. Current Portion of Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
126
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Current portion of long-term payables 14,888.00 59,552.00
Total 14,888.00 59,552.00
Other notes:
Wuxi Yunpeng, the subsidiary of Shanghai Yunpeng, the holding subsidiary of the Company,
purchased a Buick with RMB242,494.02 including tax in the prior period, among which
RMB108,494.02 for down payment and the residual payment of RMB134,000.00 will be paid off in
18 installments. As of 30 June 2019, 16 installments have been paid off, and the rest will be expired
in two months.
21. Share Capital
Unit: RMB
Increase/decrease (+/-)
Beginning Ending
New shares Bonus issue
balance Bonus shares Other Subtotal balance
issued from profit
The sum of 318,600,000. 318,600,000.
shares 00 00
Other notes:
For more details, please refer to Note I. Basic Information of the Company.
22. 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:
23. 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:
127
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
24. Retained Earnings
Unit: RMB
Item Reporting Period Same period of last year
Beginning balance of retained earnings before
-117,840,473.36 -104,447,877.20
adjustments
Beginning balance of retained earnings after
-117,840,473.36 -104,447,877.20
adjustments
Add: Net profit attributable to owners of the
-4,262,281.71 -13,392,596.16
Company as the parent
Dividend of ordinary shares payable -122,102,755.07 -117,840,473.36
List of adjustment of beginning retained earnings:
(1) RMB0.00 beginning retained earnings was affected by retrospective adjustment conducted according to the Accounting Standards
for Business Enterprises and relevant new regulations.
(2) RMB0.00 beginning retained earnings was affected by changes in accounting policies.
(3) RMB0.00 beginning retained earnings was affected by correction of significant accounting errors.
(4) RMB0.00 beginning retained earnings was affected by changes in combination scope arising from same control.
(5) RMB0.00 beginning retained earnings was affected totally by other adjustments.
25. 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 895,132.43 850,626.81 94,049,651.75 93,356,686.67
Total 895,132.43 850,626.81 94,049,651.75 93,356,686.67
Whether the Company has executed the new income standards
□ Yes √ No
Other notes:
26. Taxes and Surtaxes
Unit: RMB
Item Reporting Period Same period of last year
Consumption tax 126.51 268.68
Urban maintenance and construction tax 8.86 15,163.41
Education surcharge 6.33 10,831.00
128
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Resources tax 0.00 0.00
Property tax 323,955.00 55,745.82
Land use tax 90,045.00 90,045.00
Vehicle and vessel use tax 0.00 605.00
Stamp duty 1,274.84 323,955.00
Total 415,416.54 496,613.91
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.
27. Selling Expense
Unit: RMB
Item Reporting Period Same period of last year
Salary 15,303.31 449,769.85
Rent 225,225.21
Software charge 31,162.92
Service charge 134,062.46 286,282.84
Social security premiums 33,122.20
Office expenses 66,353.66 24,066.51
Commission charge for gold purchase
Depreciation 11,662.28 12,936.11
Packaging fee
Business travel charges 39,305.51 20,404.46
Business entertainment fees 1,148.00 49.50
Other 30,667.42 46,099.93
Total 298,502.64 1,129,119.53
Other notes:
28. Administrative Expense
Unit: RMB
Item Reporting Period Same period of last year
129
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Salary 1,205,239.02 1,365,644.18
Depreciation 1,278,441.40 1,336,480.53
Rental 279,641.20 343,057.27
Audit fee 400,000.00 405,000.00
Expense on securities affairs 12,000.00 312,000.00
Automobile expenses 117,973.98 101,306.53
Business travel charges 91,126.37 164,975.51
Water & electricity fees 75,861.87 119,384.11
Expense on financial consultant 800,000.00
Membership fees for the Board of
197,500.00 197,500.00
Directors and Supervisory Committee
Office expenses 46,015.15 87,482.30
Entertainment expenses 47,124.67 68,099.86
Welfare fees 179,533.55 122,010.60
Social security premiums 99,242.89 150,289.59
Amortization of intangible assets 138,631.92 138,631.92
Other 141,307.89 384,732.66
Total 4,309,639.91 6,096,595.06
Other notes:
29. Finance Costs
Unit: RMB
Item Reporting Period Same period of last year
Interest expense 30,666.37
Less: Interest income 630.59 4,716.00
Foreign exchange profit or loss 42,204.96 30,810.86
Handling charge and other 6,070.11 6,953.09
Total 47,664.48 63,714.32
Other notes:
30. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Investment income from disposal of
77,525.28
long-term equity investment
130
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Investment income from disposal of trading
536.00
financial assets
Total 77,525.28 536.00
Other notes:
31. Asset Impairment Loss
Whether the Company has executed the new income standards
□ Yes √ No
Unit: RMB
Item Reporting Period Same period of last year
I. Bad debt loss 796,995.35 2,942,220.19
Total 796,995.35 2,942,220.19
Other notes:
32. Non-operating Income
Unit: RMB
Amount recorded in the
Item Reporting Period Same period of last year current non-recurring profit
or loss
Other 13,276.95 600,000.00 13,276.95
Total 13,276.95 600,000.00 13,276.95
Government subsidies recorded into current profit or loss
Unit: RMB
Whether
influence Related to
Specific Same
Distributio Distributio the profits Reporting assets/relat
Item Nature subsidy or period of
n entity n reason or losses of Period ed to
not last year
the year or income
not
Other notes:
“Other” was mainly maternity benefits.
33. Non-operating Expense
Unit: RMB
Amount recorded in the
Item Reporting Period Same period of last year current non-recurring profit
or loss
131
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Penalty and fine for delaying
2,004.30 189,007.15 2,004.30
payment
Total 2,004.30 189,007.15 2,004.30
Other notes:
34. 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
Deferred income tax expense 201,730.61 753,831.51
Total 201,730.61 768,741.42
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Reporting Period
Profit before taxation -4,140,904.67
Current income tax expense accounted at statutory/applicable
-1,035,226.17
tax rate
Influence of deductable temporary difference or deductable
losses of unrecognized deferred income tax in the Reporting 1,227,029.68
Period
Other 9,927.10
Income tax expense 201,730.61
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.
35. Cash Flow Statement
(1) Cash Generated from Other Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Other intercourse funds received 1,668,274.04 31,982,807.35
132
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Accounts generated from operating
324,536.86 157,699.37
activities
Total 1,992,810.90 32,140,506.72
Notes:
(2) Cash Used in Other Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Other intercourse funds paid 6,200,142.48 27,851,000.00
Commission paid such as audit fee 100,000.00 2,205,000.00
Expense used in operating activities 1,898,618.21 2,106,181.12
Total 8,198,760.69 32,162,181.12
Notes:
36. 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 -4,342,635.28 -4,508,070.12
Add: Provision for impairment of assets -796,995.35 -2,942,220.19
Depreciation of fixed assets, oil-gas assets,
1,290,103.68 1,349,416.64
and productive living assets
Amortization of intangible assets 138,631.92 138,631.92
Amortization of long-term prepaid
65,705.76 210,508.77
expenses
Investment loss (gains: negative) -77,525.28 -536.00
Decrease in deferred income tax assets
201,730.61 753,831.51
(increase: negative)
Decrease in inventories (increase:
-27,134,328.52 -836,985.56
negative)
Decrease in accounts receivable generated
from operating activities (increase: 35,479,989.99 227,104,771.45
negative)
133
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Increase in accounts payable used in
-5,823,446.61 -222,475,025.79
operating activities (decrease: negative)
Other -33.95 -14.06
Net cash generated from/used in operating
-998,803.03 -1,205,691.43
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 526,048.79 1,192,159.64
Less: Beginning balance of cash 1,611,675.90 2,956,199.38
Net increase in cash and cash equivalents -1,085,627.11 -1,764,039.74
(2) Cash and Cash Equivalent
Unit: RMB
Item Ending balance Beginning balance
I. Cash 526,048.79 1,611,675.90
Including: Cash on hand 29,894.38 91,659.42
Bank deposit on demand 350,768.14 617,310.41
Other monetary assets on demand 145,386.27 483,189.81
III. Ending balance of cash and cash
526,048.79 1,611,675.90
equivalents
Other notes:
37. Assets with Restricted Ownership or Right to Use
Unit: RMB
Item Ending carrying value Reason for restriction
Fixed assets 13,929,255.11 External guaranty
Intangible assets 8,183,050.74 External guaranty
Investment property 4,708,489.66 External guaranty
Total 26,820,795.51 --
Other notes:
134
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
38. 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 84.28 6.8747 579.40
EUR
HKD 3,423.10 0.8797 3,011.17
Accounts receivable -- -- 0.44
Including: USD 966,279.32 6.8747 6,642,880.44
EUR
HKD
Long-term borrowings -- --
Including: USD
EUR
HKD
Other receivables
Including: USD 20,000.00 6.8747 137,494.00
EUR
HKD 56,780.00 0.8797 49,947.09
Other notes:
VIII. Changes of Consolidation Scope
1. The Disposal of Subsidiary
Whether there is a single disposal of the investment to the subsidiary and lost control?
√ Yes □ No
Unit: RMB
Equity Equity Way Time Recog The The The The Incom Recog Amou
dispos dispos of and nition differe propor carryin fair e from nition nt of
Name
al al equity place metho nce in tion of g value remeas metho other
price propor dispos of d and net residu value of ureme d and compr
135
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
tion al losing main assets al of residua nt of main ehensi
control assum of stock residua l stock residua assum ve
power ption subsidi rights l stock rights l stock ption incom
of time ary on the rights on the rights of fair e
and enjoye date of on the date of at fair value related
place d on losing date of losing value of to
of the control losing control residua former
losing consol power control power l stock subsidi
control idated power rights aries
power financi on the transfe
al date of rred
statem losing into
ents control invest
level power ment
corres profit
pondin or loss
g
dispos
al
price
and
dispos
al
invest
ment
Shenz
Compl
hen
eted
Majiak
the
e 21
change
Lanjia 173,20 100.00 Februa
Sale s of 0.00%
n 0.00 % ry
busine
Techn 2019
ss
ology
registr
Co.,
ation
Ltd.
Other notes:
Whether there are several disposals of the investment to the subsidiary and lost controls?
□ Yes √ No
136
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
IX. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Main operating Registration Nature of Holding percentage (%)
Name Way of gaining
place 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
Nobility Shenzhen Shenzhen 100.00% Merger
jewelry
Jewelry Co.,
Ltd.
Technical
Shanghai service,
Yunpeng development,
Network Shanghai Shanghai consulting, 60.00% Set-up
Technology transfer of
Co., 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
network
Co., Ltd.
technology,
ICT, and
computer
software &
hardware
Notes: Holding proportion in subsidiary different from voting proportion:
137
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
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 The profit or loss Declaring dividends Balance of
proportion of attributable to the distributed to non-controlling
Name
non-controlling non-controlling non-controlling interests at the
interests interests interests period-end
Shenzhen Rieys
10.00% 7,484.36 2,807,585.28
Industrial Co., Ltd.
Shenzhen Chinese
Gold Nobility Jewelry 49.00% -87,837.93 28,415,186.09
Co., Ltd.
Holding proportion in subsidiary different from voting proportion:
Other notes:
(3) The Main Financial Information of Significant Non-wholly-owned Subsidiary
Unit: RMB
Ending balance Beginning balance
Curren Non-c Curren Non-c
Non-c Total Non-c Total
Name Curren Total t urrent Curren Total t urrent
urrent liabilit urrent liabiliti
t assets assets liabiliti liabilit t assets assets liabiliti liabilit
assets ies assets es
es y es y
Shenz
hen
Rieys 28,361 30,129 28,398 30,411
1,768, 2,054, 2,054, 2,013, 2,410, 2,410,
Industr ,269.0 ,961.7 ,337.9 ,570.2
692.71 108.91 108.91 232.32 561.09 561.09
ial 0 1 4 6
Co.,
Ltd.
Shenz
hen
213,05 213,15 155,16 155,16 213,04 213,15 154,98 154,98
Chines 95,395 108,29
5,931. 1,326. 1,151. 1,151. 2,081. 0,374. 0,937. 0,937.
e Gold .07 3.38
71 78 08 08 17 55 77 77
Nobilit
y
138
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Jewelr
y Co.,
Ltd.
Unit: RMB
Reporting Period Same period of last year
Total Cash flows Total Cash flows
Name Operating comprehen from Operating comprehen from
Net profit Net profit
revenue sive operating revenue sive operating
income activities income activities
Shenzhen
Rieys -1,750,642. -1,750,642. -119,319.0
0.00 74,843.63 74,843.63 -14,303.59 14,089.29
Industrial 91 91 4
Co., Ltd.
Shenzhen
Chinese
Gold -179,261.0 -179,261.0 92,990,638 18,921,542
2,530.17 -6,073.47 329,841.78 329,841.78
Nobility 8 8 .89 .02
Jewelry
Co., Ltd.
Other notes:
X. Connected Party and Connected Transaction
1. Information Related to the Company as the Parent of the Company
Proportion of
Proportion of
voting rights
share held by the
owned by the
Name Registration place Nature of business Registered capital 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
Taoyuan Street,
Co., 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.
139
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
The final controller of the Company was Chen Hongcheng.
Other notes:
2. Subsidiaries of the Company
Refer to Note VIII for details.
3. Information on Other Connected Parties
Name Relationship with the Company
The shareholder holding 10.68% shares of the Company and
Shenzhen Risheng Chuangyuan Asset Management Co., Ltd.
the 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 Hongcheng The actual controller of the Company
Chen Xuewen Direct relative of Chen Hongcheng
Board Chairman of the Company and relative of Chen
Ding Lihong
Hongcheng
Key management personnel of the Company and shareholder
Yu Liqun
of subsidiary
Actually controlled by the key management personnel of the
Wuxi Hengye Technology Co., Ltd.
Company
Other notes
4. 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 Same period of last
Connected party Content Reporting Period
credit trade 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
Operation service 193,873.56 432,737.28
Co., Ltd.
Notes
140
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
(2) Information on Remuneration for Key Management Personnel
Unit: RMB
Item Reporting period Same period of last year
Remuneration for key management
306,000.00 360,000.00
personnel
5. 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
Technology Co., 34,991.54 52,035.75
receivable
Ltd.
Other receivables Yu Liqun 719,289.51 789,561.52
(2) Accounts Payable
Unit: RMB
Item Connected party Ending carrying amount Beginning carrying amount
Other payables Ding Lihong 48,500.00 470,231.70
Other payables Yu Liqun 132,652.04 82,652.04
Other payables Chen Xuewen 679,761.66 532,953.03
Wuxi Hengye Technology
Other payables 100,000.00 100,000.00
Co., Ltd.
6. Commitments of Connected Party
The main commitment content can be described as follows: The actual controller Chen Hongcheng
shall commit that, if the Company sells 45% shares of Jinshitonghe via the Future Growing
Business Fund, and the received amount in total by conducting the profit distribution based on the
obtained equity transfer fund is less than RMB120 million or if the Future Growing Business Fund
cannot be distributed according to the agreed profit distribution plan, the actual controller Chen
Hongcheng shall make it up in cash within one month after such event occurs. The specific
arrangement can be described as follows:
(1) If the difference is less than RMB30 million, it shall be paid to the Company’s bank account
within 10 days after the Company receives all funds for profit distribution or the Future Growing
141
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Business Fund cannot be distributed based on the agreed profit distribution plan;
(2) If the difference is between RMB30 million and RMB80 million, RMB30 million shall be paid
within 10 days after the Company receives all funds for profit distribution or the Future Growing
Business Fund cannot be distributed based on the agreed profit distribution plan, and the residual
funds shall be completely paid in the following 15 days;
(3) If the difference is more than RMB 80million, RMB30 million shall be paid within 10 days
after the Company receives all funds for profit distribution or the Future Growing Business Fund
cannot be distributed based on the agreed profit distribution plan, RMB50 million in the following
15 days and the residual funds in the following 5 days.
XI. Commitments and Contingency
1. Significant Commitments
Significant commitments on the balance sheet date
As of 30 June 2019, there was no significant commitment for the Company to disclose.
2. Contingency
(1) Significant Contingency on Balance Sheet Date
(1) Contingent Liabilities Generated from Providing Debt Guarantee for Other Entities and their
Financial Impacts
① The Company provided the mortgage guarantee for the loan contract of maximum amount
(RCZH2014GDZ No. 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 16 May 2019, Puning Huafengqiang Trading Co., Ltd. signed
with Jieyang Rongcheng Branch of ICBC the renewal loan contract of RMB11.4 million with the
duration of 12 months.
② The Company provided the mortgage guarantee for the loan contract of maximum amount
(0201900134-2017XQ[D]Z No. 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 18 February 2019, Puning Lailisheng Trading Co., Ltd. signed
with Jieyang Branch of ICBC to renew the loan of RMB23.50 million with the duration of 12
months.
As of 30 June 2019, the guarantees provided by the Company for loans by non-connected parties
were listed as follows:
Secured party Event Amount (RMB’0,000) Duration Notes
Puning Huafengqiang Pledge for bank 1,140.00 16 May 2019 to 15 May
Trading Co., Ltd. borrowings 2020
Puning Lailisheng Trading Pledge for bank 2,350.00 18 February 2019 to 18
Co., Ltd. borrowings February 2020
142
Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Total - 3,490.00 - -
(2) As of 30 June 2019, there was no contingency such as pending action or guarantee etc. for the
Company to disclose.
As of 30 June 2019, there was no other contingency for the Company to disclose other than the
above-mentioned contingencies.
XII. Events after Balance Sheet Date
1. Notes to Other Events after Balance Sheet Date
As of 26 August 2019 (Approval date of the Interim Report by the Board), there was no other event
after balance sheet date for the Company to disclose.
XIII. Other Significant Events
1. Other Significant Transactions and Events with Influence on Investors’ Decision-making
Approved in the 23rd meeting of 7th Board of Directors, Guangdong Jadiete Holdings Group
Company Limited (hereinafter referred as “the Company”) signed the agreement of equity transfer
with Shenzhen Chinese Gold Nobility Investment Co., Ltd. (hereinafter referred as “Chinese Gold
Investment”) on 14 December 2018, which the Company will purchase 49% of equity in Chinese
Gold Nobility Jewelry Co., Ltd. (hereinafter referred as “Chinese Gold Nobility”) held by Chinese
Gold Investment with RMB24.5 million. The Company hasn’t paid for the aforesaid equity transfer,
and has completed the registration changing procedures on 24 June 2019.
As of 30 June 2019, there was no other significant event for the Company to disclose other than the
above-mentioned significant events.
XIV. 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
Bad debt
Carrying amount Carrying amount Bad debt provision
provision
Category Carryin Carrying
Withdr g value Withdr value
Amoun Proport Amoun Amoun Proport Amoun
awal awal
t ion t t ion t
proport proport
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
ion ion
Accounts
receivable for
4,608,2 100.00 4,608,2 100.00 4,608,2 100.00 4,608,2 100.00
which bad debt 0.00 0.00
76.88 % 76.88 % 76.88 % 76.88 %
provision
separately accrued
Of which:
Of which:
4,608,2 100.00 4,608,2 100.00 4,608,2 100.00 4,608,2 100.00
Total 0.00 0.00
76.88 % 76.88 % 76.88 % 76.88 %
Accounts receivable for which bad debt provision separately accrued: RMB4,608,276.88.
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdrawal
Long-term credit, the
Capital airport 21,713.00 21,713.00 100.00% Company believes it
irrecoverable
Long-term credit, the
Ningbo Industrial and
26,354.45 26,354.45 100.00% Company believes it
Commercial Bureau
irrecoverable
Long-term credit, the
Chen Shunqin 335,904.80 335,904.80 100.00% Company believes it
irrecoverable
Long-term credit, the
Hong Kong Jinhua
4,224,304.63 4,224,304.63 100.00% Company believes it
Trading Company
irrecoverable
Total 4,608,276.88 4,608,276.88 -- --
Withdrawal of bad debt provision separately:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdrawal
Withdrawal of bad debt provision by group:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Notes to the determination basis for the group:
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general mode
of expected credit loss to withdraw bad debt provision of accounts receivable.
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Over 3 years 4,608,276.88
Over 5 years 4,608,276.88
Total 4,608,276.88
（2) Top 5 Accounts Receivable in Ending Balance Collected according to the Arrears Party
Name Amount 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
2. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 124,219,989.86 124,003,172.06
Total 124,219,989.86 124,003,172.06
(1) Other Receivables
1) Other Receivables Classified by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Fund of connected party 123,645,079.02 123,645,079.02
Intercourse funds 3,623,081.55 3,578,522.73
Tax 2,331,608.20 2,331,608.20
Payment on behalf 63,735.51 41,476.53
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Guarantee deposit and cash deposit 3,000.00 3,000.00
Petty cash 2,169.00 2,169.00
Total 129,668,673.28 129,601,855.48
2) Withdrawal of Bad Debt Provision
Unit: RMB
First stage Second stage Third stage
Expected credit Expected loss in the Expected loss in the
Bad debt provision Total
loss of the next 12 duration (credit duration (credit
months impairment not occurred) impairment occurred)
Balance of 1 January
5,598,683.42
2019
Balance of 1 January
2019 in the current —— —— —— ——
period
Balance of 30 June
5,448,683.42
2019
Changes of carrying amount with significant amount changed of loss provision in the current period
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 1,352.25
1 to 2 years 30,722.67
2 to 3 years 5,628.96
Over 3 years 3,079,371.34
3 to 4 years 0.00
4 to 5 years 1,779,371.34
Over 5 years 1,300,000.00
Total 3,117,075.22
(3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Information of withdrawal of bad debt provision:
Unit: RMB
Changes in the Reporting Period
Category Beginning balance Ending balance
Withdrawal Reversal or recovery
5,598,683.42 0.00 150,000.00 5,448,683.42
Total 5,598,683.42 0.00 150,000.00 5,448,683.42
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
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
4) 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
Shenzhen Chinese Intercourse fund
Gold Nobility of connected 103,940,000.00 Within 1 year 80.16%
Jewelry Co., Ltd. party
Intercourse fund
Tianrui (HK)
of connected 19,705,079.02 2 to 3 years 15.20%
Trading Co., Ltd.
party
Refund of tax for
Tax 2,331,608.20 Over 5 years 1.80% 2,331,608.20
export receivable
Guangdong
Yuanfeng Trade Intercourse fund 700,000.00 Over 5 years 0.54% 700,000.00
Co., Ltd.
Shenzhen Zhao
Tong Investment Intercourse fund 600,000.00 Over 5 years 0.46% 600,000.00
Co., Ltd.
Total -- 127,276,687.22 -- 98.16% 3,631,608.20
3. Long-term Equity Investment
Unit: RMB
Ending balance Beginning balance
Item Carrying Depreciation Carrying Depreciation
Carrying value Carrying value
amount reserve amount reserve
Investment to
80,000,008.26 80,000,008.26 80,158,208.26 80,158,208.26
subsidiaries
Investment to
joint ventures
100,600,000.00 100,600,000.00 100,600,000.00 100,600,000.00
and associated
enterprises
Total 180,600,008.26 180,600,008.26 180,758,208.26 180,758,208.26
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
(1) Investment to the Subsidiaries
Unit: RMB
Increase/decrease
Beginning Ending Ending
Withdrawal
balance balance balance of
Investee Additional Reduced of
(carrying Other (carrying depreciation
investment investment depreciation
value) value) reserve
reserve
Shenzhen
Rieys 45,000,000.0 45,000,000.0
Industrial Co., 0 0
Ltd.
Tianrui (HK)
Trading Co., 8.26 8.26
Ltd.
Shenzhen
Chinese Gold
30,000,000.0 30,000,000.0
Nobility
0 0
Jewelry Co.,
Ltd.
Shanghai
Yunpeng
Network 5,000,000.00 5,000,000.00
Technology
Co., Ltd.
Shenzhen
Majiake
Lanjian 158,200.00 158,200.00 0.00
Technology
Co., Ltd.
80,158,208.2 80,000,008.2
Total 158,200.00
6 6
XV. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
√ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Current net gains and losses of 77,525.28
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
subsidiaries acquired in business
combination under the same control from
period-begin to combination date
Other non-operating income and expense
11,272.65
other than the above
Less: Income tax effects -499.44
Non-controlling interests effects (after tax) -111.08
Total 89,408.45 --
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
-1.30% -0.0136 -0.0136
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company
-1.32% -0.0139 -0.0139
after deduction of non-recurring
profit or loss
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Guangdong Jadiete Holdings Group Company Limited Interim Report 2019
Part XI Documents Available for Reference
I. The financial statements signed and sealed by the Company’s legal representative, the CFO and head of the financial department
(equivalent to financial manager); 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.)
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