广东舜喆（集团）股份有限公司 2020 年年度报告全文
GUANGDONG JADIETE HOLDINGS GROUP COMPANY LIMITED
ANNUAL REPORT 2020
April 2020
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Board as well as the Directors,
Supervisors and senior management of Guangdong Jadiete Holdings Group Company
Limited (the “Company”) hereby guarantee the factuality, accuracy and completeness of the
contents of this Report and its abstract, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions in this Report and its
abstract.
HongCheng Chen, the Company’s legal representative, head of the Company’s financial
department and accounting agency’s legal representatiiv(equivalent to financial manager)
hereby guarantee that the Financial Statements carried in this Report are factual, accurate
and complete.
Alle directors have attended the Board meeting for the review of this report.
UnITax Zhenqing Certified Public Accountants (Special General Partnership) issued a
qualified opinion with explanatory notes on the Company's 2020 audit report. the Board of
Directors, the Supervisory Committee have explained the relevant matters in detail, please
pay attention to reading.
UnITax Zhenqing Certified Public Accountants (Special General Partnership) issued negative
opinions on the company's 2020 internal control audit report, the company has Significant
deficiencies in internal control, the Supervisory Committee have explained the relevant
matters in detail, please pay attention to reading.
During the period from March 15, 2021 to April 12, 2021, the daily closing price of the
company's stock was lower than 1 yuan for 20 consecutive trading days through the trading
system of Shenzhen Stock Exchange, which touched the situation of stock delisting stipulated
by Shenzhen Stock Exchange. The company's shares have been suspended since the opening
of the market on April 13, 2021.
The company's shares were terminated by Shenzhen Stock Exchange in accordance with the
regulations, no delisting period, and the company's shares are delisted within 15 trading days.
After the company's shares are terminated from listing, it will, in accordance with relevant
regulations, promptly employ a share transfer service agency to arrange for the shares to be
transferred to the national small and medium-sized enterprise share transfer system and
other securities trading places to transfer shares. The company will handle the relevant
matters after the termination of listing.
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
The company will continue to take gold and jewelry sales as its main business in the future,
gradually solve the matters reserved and emphasized in the audit report, and improve and
perfect the internal control. Secondly, the top priority of the company's future development is
to re-plan and adjust its business, solve the problem of sustainable development, and improve
the company's profitability. To continuously explore and solve the problem of domestic listed
foreign shares (B shares) is the key node of the company's future development, and the
company will continue to promote this work.
Future plans and other forward-looking statements do not constitute the company's
substantial commitment to investors. Investors and related parties should maintain sufficient
risk awareness of this and understand the differences between plans, budgets and
commitments.
The company shall comply with the disclosure ‘Requirements of Shenzhen stock exchange
industry information disclosure guidelines No. 11 - listed companies engaged in jewelry
related business’ .
Gold and jewelry business is the main business of the company. The company has been
engaged in gold and jewelry business for a short time, with small scale and high dependence
on original customers, resulting in single product structure and large balance of inventory. In
recent years, due to the macro situation and market competition, the company's sales
continued to shrink. Gradually de stocking is the main goal of the company in the next few
years.
The company plans not to distribute cash dividends, nor send red shares, nor increase capital
with reserve fund.
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Table of Contents
Part I Important Statements, Table of Contents and Definitions ..............................................................................................................
Part II Corporate Profile and Key Financial Information ..........................................................................................................................
Part III Business Summary ........................................................................................................................................................................
Part IV Company Performance Discussion and Analysis ..........................................................................................................................
Part V Significant Events...........................................................................................................................................................................
Part VI Share Changes and Shareholder Information ................................................................................................................................
Part VII Preferred Shares ...........................................................................................................................................................................
Part VIII Convertible bonds.......................................................................................................................................................................
Part IX Directors, Supervisors, Senior Management and Staff ..................................................................................................................
Part X Corporate Governance....................................................................................................................................................................
Part XI Corporate Bonds ...........................................................................................................................................................................
Part XII Financial Statements ....................................................................................................................................................................
Part XIII Documents Available for Reference ...........................................................................................................................................
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Part I Definitions
Term Definition
Reporting Period January 1, 2020-December 31, 2020
SZSE, the stock exchange Shenzhen Stock Exchange
GUANGDONG JADIETE HOLDINGS GROUP COMPANY
Company, the Company
LIMITED
Shenghengchang Huifu Shenzhen Risheng Chuangyuan Asset Management Co., Ltd.
Risheng Chuangyuan Shenzhen Lianhua Huiren Industrial Co., Ltd.
Lianhua Huiren Shenzhen Shenguorong Financing Guarantee Co., Ltd.
Shenguorong Financing Guarantee Shenzhen Future Growing Business Fund (Limited Partnership)
Future Growing Business Fund Shenzhen Chinese Gold Nobility Jewelry Co., Ltd.
Chinese Gold Nobility Shenzhen Risheng Chuangyuan Asset Management Co., Ltd.
Shanghai Yunpeng Shanghai Yunpeng Network Technology Co., Ltd
Shenzhen future industry development fund enterprise (limited
Future industry fund
partnership)
Financing guarantee of Shenzhen Guorong Shenzhen shenguorong Financing Guarantee Co., Ltd
Gaopu industry Shenzhen Gaopu Industrial Co., Ltd
Blue Bay residence Blue Bay mansion (Shenzhen) Commercial Co., Ltd
Yuan, wan yuan RMB
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Part II Corporate Profile and Key Financial Information
I Corporate Information
Stock name JHG-B Stock Code 200168
Stock exchange Shenzhen Stock Exchange
Company name in Chinese 广东舜喆（集团）股份有限公司
Abbr. 舜喆
Company name in English
GUANGDONG JADIETE HOLDINGS GROUP COMPANY LIMITED
(if any)
Abbr. (if any) JHG
Legal representative Chen Hongcheng (temporarily)
Registered address Meixin Industrial Park of Jun Bu Town, Puning, Guangdong
Registered address Zip code 515300
Office address 503 of No. 990 of Yiben E-commerce Building, Xili, Nanshan District, Shenzhen
Office Zip code 518000
Company website http://www.200168.com
II Contact Information
Board Secretary Securities Representative
Name Xu Wei
503 of No. 990 of Yiben E-commerce
Address Building, Xili, Nanshan District,
Shenzhen
Tel. 0755-82250045
Fax 0755-82251182
E-mail xw@200168.com
III Media for Information Disclosure and Place where this Report Is Kept
Newspapers designated by the Company for
Securities Times and Ta Kung Pao (HK)
information disclosure
Website designated by the China Securities
Regulatory Commission (CSRC) for the publication http://www.cninfo.com.cn
of this Report
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Place where this Report is kept 503 Xili yiben e-commerce building, Nanshan District, Shenzhen
IV Company Registered Information and Alterations
Credibility code 914452002311318335
The main business of the Company shifted from garment making to real estate
Changes in main business activities of
development in 2013;
the Company after going public (if any)
The real estate development changed to gold and other jewelry sales in 2015.
Changes of controlling shareholder (if
No changes
any)
V Other Information
Independent certified public accounting (or “CPA”) firm hired by the Company:
Name UnITax Zhenqing Certified Public Accountants (Special General Partnership)
Office address No.20 Shangqing Road, Shibei District, Qingdao City, Shandong Province
Accountants writing signatures Qi Zhang, Shimei Li
Independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable √ Not applicable
Independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable √ Not applicable
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below
□ Yes √ No
December 31, 2020 December 31, 2019 Change of
December 31, 2019
December 31, 2018
over December 31,
2018
Sales revenue (RMB) 12,093,926.25 19,065,432.67 96,715,841.62
Net income attributable to
shareholders of the listed -52,388,872.87 1,996,242.74 -13,392,596.16
company (RMB)
Net income attributable to
shareholders of the listed
-12,006,826.15 -13,770,099.67
company before nonrecurring
gains and losses (RMB)
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
December 31, 2020 December 31, 2019 Change of
December 31, 2019
December 31, 2018
over December 31,
2018
Net cash flows from operating
15,654,815.70 5,555,997.23 -85,829,630.50
activities (RMB)
Basic earnings per share
-0.1644 0.0063 -0.0420
(RMB/share)
Diluted earnings per share
-0.1644 0.0063 -0.0420
(RMB/share)
Weighted average return on
0.59% -3.87%
equity (%)
Total assets (RMB) 461,628,690.73 514,650,229.26 544,902,591.70
Equity attributable to
shareholders of the listed 294,083,105.54 345,098,328.40 339,099,061.64
company (RMB)
The company's net profit before and after deducting non-recurring profit and loss in the last three fiscal years is negative, and the
audit report of the last year shows that the sustainable operation ability of the company is uncertain
√ Yes □ No
The lower of the net profit before and after deducting the non-recurring profit and loss is negative
√ Yes □ No
Item 2020 2019 Remark
Operating income (yuan) 12,093,926.25 19,065,432.67
VII Accounting Data Differences under Chinese Accounting Standards (CAS) and International Financial
Reporting Standards (IFRS) and Foreign Accounting Standards
1. Net Income and Equity Differences under CAS and IFRS
□ Applicable √ Not applicable
No such differences for the Reporting Period.
2. Net Income and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No such differences for the Reporting Period.
3. Reasons for accounting data differences under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
VIII Key Financial Information by Quarter
单位：元
Q1 Q2 Q3 Q4
Are there any significant differences between the above financial indicators or their sum and the financial indicators
related to the company's disclosed quarterly report and semi-annual report
√ Yes □ No
During the reporting period, the company sold all the equity of its subsidiary, Shanghai Yunpeng Network Technology Co.,
Ltd., which was not included in the scope of merger.
IX Nonrecurring Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item 2020 2019 2018 Note
Gains and losses on disposal of non-current assets
953,732.29
(inclusive of offset allowance for asset impairments)
In addition to the effective hedging business related
to the normal business of the company, the profit
and loss from changes in fair value arising from
holding trading financial assets, derivative financial
assets, trading financial liabilities and derivative
536.00
financial liabilities, as well as the investment income
from the disposal of trading financial assets,
derivative financial assets, trading financial
liabilities, derivative financial liabilities and other
debt investments
Other non-operating income and expenses other
13,041,547.87 419,561.43
than the above
Less: Income tax effects -427.35 1,037.86
Impact of minority shareholders' equity (after
-7,361.38 41,556.06
tax)
Total 14,003,068.89 377,503.51 --
Explanation of why the Company classifies an item as a nonrecurring gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Nonrecurring Gains and
Losses, or reclassifies any nonrecurring gain/loss item listed in the said explanatory announcement as a recurring gain/loss:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Part III Business Summary
I Main Business Scope of the Company in the Reporting Period
The company shall comply with the disclosure requirements of Shenzhen stock exchange industry
information disclosure guidelines No. 11 - listed companies engaged in jewelry related business
1. Macro-economic and Industry Development
According to the data from the National Bureau of statistics, in 2020, the per capita disposable
income of residents in China will be 32,189 yuan, a nominal increase of 4.7% over the previous
year, and a real increase of 2.1% after deducting the price factor. Among them, the per capita
disposable income of urban residents was 43,834 yuan, an increase of 3.5% (unless otherwise
specified below, it is a nominal year-on-year increase), and the actual increase was 1.2% after
deducting the price factor; The per capita disposable income of rural residents was 17,131 yuan, an
increase of 6.9%. After deducting the price factor, the actual increase was 3.8%. In 2020, the
median per capita disposable income of residents in China will be 27,540 yuan, an increase of 3.8%,
and the median will be 85.6% of the average. Among them, the median per capita disposable
income of urban residents was 40,378 yuan, an increase of 2.9%, which was 92.1% of the average;
The median per capita disposable income of rural residents was 15,204 yuan, an increase of 5.7%,
which was 88.7% of the average.
In 2020, China's per capita consumption expenditure will be 21,210 yuan, a nominal decrease of
1.6% over the previous year, and a real decrease of 4.0% after deducting price factors. Among them,
the per capita consumption expenditure of urban residents was 27,007 yuan, a decrease of 3.8%.
After deducting the price factor, the actual decrease was 6.0%; The per capita consumption
expenditure of rural residents was 13,713 yuan, an increase of 2.9%. After deducting the price
factor, the actual decrease was 0.1%.
In 2020, the per capita consumption expenditure of food, tobacco and alcohol of the whole country
was 6,397 yuan, an increase of 5.1%, accounting for 30.2% of the per capita consumption
expenditure; The per capita clothing consumption expenditure was 1,238 yuan, down 7.5%,
accounting for 5.8% of the per capita consumption expenditure; The per capita consumption
expenditure was 5,215 yuan, up 3.2%, accounting for 24.6% of the per capita consumption
expenditure; The per capita consumption of household goods and services was 1260 yuan, down
1.7%, accounting for 5.9% of the per capita consumption expenditure; The per capita expenditure
on transportation and communication is 2,762 yuan, down 3.5%, accounting for 13.0% of the per
capita consumption expenditure; The per capita expenditure on education, culture and entertainment
is 2,032 yuan, down 19.1%, accounting for 9.6% of the per capita consumption expenditure; The
per capita expenditure on health care consumption was 1,843 yuan, down 3.1%, accounting for
8.7% of the per capita consumption expenditure; The per capita expenditure on other goods and
services was 462 yuan, down 11.8%, accounting for 2.2% of the per capita consumption
expenditure.
In 2020, the total retail sales of social consumer goods will reach 391,981 billion yuan, a decrease
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
of 3.9% over the previous year. By consumption type, the year-on-year nominal growth of gold,
silver and jewelry from January to December 2020 is - 4.7%.
According to the statistics released by the China Gold Association, the actual consumption of gold
in 2020 will be 820.98 tons, down 18.13% compared with the same period in 2019. Among them:
490.58 tons of gold jewelry, a year-on-year decrease of 27.45%; Gold bars and gold coins were
246.59 tons, up 9.21% year on year; Industrial and other gold consumption was 83.81 tons, a
year-on-year decrease of 16.81%.
In early 2020, novel coronavirus pneumonia outbreaks and strict control measures were taken in the
country. Gold jewelry, gold bars, and other products were greatly affected by production and
processing. Retail consumption of gold in the first quarter decreased by 48.20% compared with the
same period last year. With the improvement of domestic epidemic prevention and control situation
and sustained and stable economic recovery, gold consumption steadily rebounded. In particular,
some gold retail enterprises open new markets online, and their sales performance is excellent.
However, due to the low online sales base, they still can't make up for the decline of store sales. The
huge fluctuation of gold price and loose monetary policy have aroused the attention of private
investors to gold, especially the consumption of gold bars and gold coins in the second half of the
year increased by 50.91% compared with the same period of the previous year, thus reversing the
annual consumption trend of gold bars and gold coins.
2.Industry position and competitive advantage of the company
The company is mainly engaged in gold jewelry, and is operated by the wholly-owned subsidiary,
Chinese Gold Nobility. Chinese Gold Nobility is relatively weak in brand, personnel funds, etc.,
and its industry position is relatively low. In the situation of weak macro-economy, especially the
weak consumption of luxury goods and the aggravation of competition among the peers, it is very
obvious that it has no obvious competitive advantage.
3. Main business situation
(1). Sales
The main sales mode of the first product in the report period is single exhibition hall retail, no direct
stores and no franchise stores. During the reporting period, the operating income of main business
was 10.5178 million yuan, the operating cost was 7.223 million yuan, and the gross profit rate was
29.23%.
(2). Production and purchase
During the reporting period, due to the goal of destocking, no entrusted processing or purchase
contract was signed.
II Material Change in Main Assets
1. Material Change in Main Assets
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Major assets Significant changes
Equity assets No
Due to the closure of some fixed assets, some of them are adjusted to other non-current
Fixed assets
assets.
intangible assets Because the land was sealed up, it was transferred to other non-current assets.
Construction in progress No
Non-current assets Some fixed assets and intangible assets were sealed up.
2. Main Assets Overseas
□ Applicable √ Not applicable
III Core Competitiveness Analysis
The core competitiveness of the company has not changed during the reporting period.
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Part IV Company Performance Discussion and Analysis
1. Summary
In 2020, the main income decreased and the net profit lost compared with the previous year. On the
one hand, it was affected by the macroeconomic weakness and epidemic situation, which led to the
depression of the main gold and jewelry industry and the lack of consumption. On the other hand,
the non recurring income in the reporting period decreased compared with the previous year.
2. Main work contents in 2020,
(1) Strengthening the management of accounts receivable and improving the recovery have
achieved certain results.
Due to the adjustment of business plan, the company's holding subsidiary Rieys industry terminated
nickel trade in 2017. After the termination of the business, Rieys industry received more than 24
million yuan from Shanghai Zhaoke. After continuous recovery, Shanghai Zhaoke paid more than
17.6 million yuan to Rieys industry in March 2020. According to the accounting policies, the
company has written back more than 8.8 million yuan of bad debt reserves.
(2) Sell the equity of Shanghai Yunpeng and withdraw from the field of clothing E-commerce
Due to the intensified competition and insufficient investment of the company, the operation of
Shanghai Yunpeng, which is engaged in clothing e-commerce business, has not changed. In order to
further reduce losses, the company withdrew from the field of clothing e-commerce by selling
shares of Shanghai Yunpeng.
(3) Take measures to reduce inventory
The subsidiary, Chinese Gold Nobility actively negotiated with suppliers and customers, properly
solved some existing problems, promoted the restructuring of creditor's rights and debts, properly
reduced the inventory and debt amount by more than 20 million yuan, and further optimized the
asset structure.
（4）Carry out tax planning and reduce operation results
By combing the company's internal current account, making clear the relationship between
creditor's rights and debt, considering the overall tax cost of the company, and through the
negotiation between enterprises within the company, the tax payment of enterprises within the
company was adjusted on the premise of legal compliance, thus reducing the operating cost.
The company comply with the disclosure requirements of Shenzhen stock exchange industry
information disclosure guidelines No. 11 - listed companies engaged in jewelry related business
1. Sales and operation
During the reporting period, there were no other direct stores outside the exhibition hall of
subsidiaries, no new stores or online sales.
2. As of December 31, 2020, the inventory of various products of the company is as follows (unit:
10000 yuan)
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Item Balance
Inventory 14,309.07
Including: Gold Commodities 13,895.43
Jade Accessories 383.603
Diamond inlay 28.70
18K accessories 1.34
II Analysis of Main Business
1. Summary
See “I Overview” in “Part IV Company Performance Discussion and Analysis”, herein
2. Revenue and Cost
(1) Breakdown of Sales Revenue
Unit: RMB
2020 2019
Percentage of total Percentage of total Change
Sales revenue Sales revenue
sales revenue (%) sales revenue (%)
Total 12,093,926.25 100% 19,065,432.67 100%
By operating division
Gold jewelry
15,324,468.13 80.38%
wholesale
Clothes sales by
2,970,886.55 15.58%
electric business
Others 770,077.99 4.04%
By products
Gold jewelry
15,324,468.13 80.38%
wholesale
Clothes sales by
2,970,886.55 15.58%
electric business
Others 770,077.99 4.04%
By location
Gold jewelry
15,324,468.13 80.38%
wholesale
Clothes sales by
2,970,886.55 15.58%
electric business
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Others 770,077.99 4.04%
(2) Operating Division, Product Category or Operating Segment Contributing over 10% of Sales Revenue
or Income
□ Applicable √ Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
√Yes □ No
Operating division Item Unit 2020 2019 Change
Gold jewelry sales volume G 49,469
industry Inventory G 620,873.94
Reason for any over 30% YoY movements in the data above:
√ Applicable □ Not applicable
(4) Execution Progress of Major Signed Sales Contracts in Reporting Period
□ Applicable √ Not applicable
(5) Breakdown of Cost of Sales
By operating division
By operating division
Unit: RMB
2020 2019
Operating Percentage of Percentage of
Item Change
division Cost of sales total cost of Cost of sales total cost of
sales (%) sales (%)
Gold jewelry Gold jewelry
12,021,716.87 83.97%
wholesale wholesale
Clothes sales Clothes sales
by electric by electric 2,090,225.75 14.60%
business business
Others Others 204,840.45 1.43%
Note
(6) Change in Scope of Consolidated Financial Statements for Reporting Period
√ Yes □ No
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
(7) Major Change in Business Scope or Product or Service Range in Reporting Period
□ Applicable √ Not applicable
(8) Main Customers and Suppliers
Main Customers,
Information about top five customers,
Sales revenue generated Percentage of total sales of Reporting
No. Customer
(RMB) Period (%)
Other information about the main customers
□ Applicable √ Not applicable
Main suppliers,
Information about top five suppliers
No. Supplier Purchase amount (yuan) Proportion in total annual procurement
Other information about the main suppliers
□ Applicable √ Not applicable
3. Expense
Unit: RMB
2020 2019 Change Reason for material change
Selling expenses 329,345.75 554,903.76
Administrative expenses 7,740,550.73 9,695,842.11
Finance costs 494,272.71 291,583.71
4. Research and Development Expense
□ Applicable √ Not applicable
5. Cash Flows
Unit: RMB
Item 2020 2019 Change
Subtotal of cash inflow from
32,649,121.22 33,580,174.44
operating activities
Subtotal of cash outflow from
16,994,305.52 28,024,177.21
operating activities
Net cash flow from operating
15,654,815.70 5,555,997.23
activities
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Subtotal of cash inflow from
1,382,926.14 1,879,004.75
investment activities
Subtotal of cash outflow from
17,499,899.36 7,788,522.36
investment activities
Net cash flow from
-16,116,973.22 -5,909,517.61
investment activities
Net increase in cash and cash
-462,838.16 -353,440.60
equivalents
Explanation of why any of the data above varies materially:
√ Applicable □ Not applicable
Reason for any material difference between the net operating cash flows and the net income of the reporting Period:
□ Applicable √ Not applicable
III Non-Core Business Analysis
√ Applicable □ Not applicable
Unit: RMB
Percentage of
Amount Source/Reason Recurring or not
pretax income (%)
IV Analysis of Assets and Liabilities
1. Material Change in Asset Composition
The company will implement new income standard or new lease standard for the first time since 2020, and adjust and implement
relevant items of financial statements at the beginning of the year
√ Applicable □ Not Applicable
Unit, RMB
Beginning of 2020 End of 2020 Change
Percentage Percentage in
Reason for material change
Value of total Value of total percent
assets (%) assets (%) age (%)
Monetary
797,061.47 1,259,899.63 0.24%
assets
Accounts
6,401.71 9,124,432.68 1.77%
receivable
143,090,724. 173,929,882.
Inventories 33.80%
36 99
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Investment
5,868,823.78 1.14%
property
Long-term
100,600,000. 100,600,000.
equity 19.55%
00 00
investment
17,243,097.0 31,563,817.9
Fixed assets 6.13%
9 3
Hold-for-sale 149,998,221.
29.15%
assets 71
2. Assets and Liabilities Measured at Fair Value
□ Applicable √ Not applicable
3. Restricted Asset Rights as of End of Reporting Period
Due to the loan contract dispute between industrial and Commercial Bank of China Jieyang
Rongcheng sub branch (hereinafter referred to as "ICBC Jieyang Rongcheng sub branch") and
huafengqiang, etc., ICBC Jieyang Rongcheng sub branch applied to the people's Court of
Rongcheng District, Jieyang City, Guangdong Province (hereinafter referred to as "Jieyang
Rongcheng court") to seal up the company located in shenxiangou, Junbu Town, Puning.
[Certificate Number: yuefangdiquan zhengpuzhanguzi no.079-087 of real estate certificate,
pufuguoyong 2001 Zi Dite 00420, 00421 of state-owned land use certificate, pufuguoyong 2002 Zi
Dite 00448, 00449 of state-owned land use certificate] the real estate and state-owned land use right
shall be sealed up, the value of sealing up shall be limited to RMB 25 million, and the sealing up
period shall be three years, from March 2, 2020 to March 1, 2023.
Due to the loan contract disputes between Jieyang branch of industrial and Commercial Bank of
China Limited (hereinafter referred to as "Jieyang branch of ICBC") and lailisheng, Jieyang branch
of ICBC applied to the people's Court of Rongcheng District, Jieyang City, Guangdong Province
(hereinafter referred to as "Jieyang Rongcheng court") to seal the company in chenshangou village,
Junbu Town, Puning City The property of Junxin village [property right certificate No.: Guangdong
(2017) Puning real estate No. 0000915 and 0000919) shall be sealed up, with the value of the
property being sealed up to RMB 30million, with a period of 3 years, from March 2, 2020 to March
1, 2023.
V Investments Made
1. Total Investment Amount
□ Applicable √ Not applicable
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
2. Material Equity Investments Made in Reporting Period
√ Applicable □ Not applicable
3. Material Non-Equity Investments Ongoing in Reporting Period
□ Applicable √ Not applicable
4. Financial Investments
(1) Securities Investments
□ Applicable √ Not applicable
No securities investment during the reporting period
5. Use of Funds Raised
□ Applicable √ Not applicable
No such cases in this Reporting Period.
VI Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in this Reporting Period.
2. Sale of Major Equity Interests
√ Applicable □ Not applicable
Net The Whet
profit propo Has her it
(RMB rtion all is Index
The Pricin
Trans 10K) of net Relati the imple to
Impa g If Discl
On the actio of the profit onshi equit ment disclo
Tradi ct of Princi conne osure
sell date n equit contri p with y ed as sed
ng Sales ple of cted date
Equit of price y buted tradin involv plann infor
party on Equit transa (if
y sale (10K contri by g ed ed or matio
Com y ction any
yuan) butio equit party been not, n (if
pany Sale
n to y sale transf and if any)
the to erred No,
listed total the
19
广东舜喆（集团）股份有限公司 2020 年年度报告全文
comp net reaso
any profit ns
from of and
the listed meas
begin comp ures
ning any taken
of the by
curre the
nt comp
perio any
d to shall
the be
date expla
of ined.
sale
Anno
The unce
comp ment
any on the
failed sale
to of
imple shares
ment of
the Shenz
plan hen
Shen and Guoro
Shen
zhen sent ng
zhen
Guor letter Finan
Gaop Reco No
ong s to cing
u 2018- 15,00 very cons conn 2018-
guara 0 0.00% No No negot Guara
Indus 09-30 0 of ult ectio 11-30
ntees iate ntee
trial funds n
30% soluti Co.,
Co.,
equit ons Ltd.
Ltd
y and (Anno
sign unce
suppl ment
emen No.:
tary 2018-
agree 059)
ment publis
s for hed
many on the
times securi
ties
20
广东舜喆（集团）股份有限公司 2020 年年度报告全文
times,
Ta
Kung
Pao
and
cninfo
.com
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 Main
Company Registered Total Sales Operating Net
with the business Net assets
name capital assets revenue income income
Company scope
Shenzhen
Rieys import &
Subsidiary 50000000
Industrial export
Co., Ltd.
Acquisition and disposal of subsidiaries in the reporting period
√ Applicable □ Not Applicable
Ways of acquiring and disposing Impact on overall production,
Name
subsidiaries in the reporting period operation and performance
Shanghai Yunpeng Network
Sell
Technology Co., Ltd
Description of major holding and participating companies
VIII Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
IX Outlook for the Future Development of the Company
For the problems faced in the company's development, please refer to the relevant contents in
"section I important tips" of this report. The company's response measures are detailed in "section
IV discussion and analysis of business situation" and "section V important matters" of this report,
and the company is also looking for appropriate projects to adjust the company's business at the
right time.
21
广东舜喆（集团）股份有限公司 2020 年年度报告全文
X Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.
1. In this Reporting Period
√ Applicable □ Not applicable
Main
Type of contents of
Reception Basic information
Time Where Way reception discussion
target index of research
object and materials
provided
Does the
company
In Company
2020-06-09 By Phone Individual Investor have a
office
restructuring
plan
Reception times 1
Number of reception agencies 0
Number of reception individuals 1
Number of other clients received 0
Whether to disclose, disclose or divulge Failure to disclose, disclose or divulge unpublished material
unpublished material information information.
22
广东舜喆（集团）股份有限公司 2020 年年度报告全文
Part V Significant Events
I Profit Distribution and Converting Capital Reserve into Share Capital for Common
Shareholders
Formulation, execution or adjustments of profit distribution policy, especially cash dividend policy, for common shareholders in this
Reporting Period
□ Applicable √ Not applicable
Plans (or preliminary plans) for profit distribution and converting capital reserves into share capital for common shareholders for the
past three years (including the Reporting Period)
No common stock dividend distribution plan in recent 3 years, or convert capital reserve into share capital, retained funds
continue to be used for operation
Cash dividend distribution of the Company to common shareholders over the past three years (including the Reporting Period)
Unit RMB
The ratio of
total cash
The ratio of
Proportion dividends
cash
of cash (including
Net profit dividend
dividends in other
attributable amount to
other ways methods) to
to common the net Amount of
to the net the net
shareholder profit cash Total cash
Cash profit profit
s of Listed attributable dividends in dividends
dividends attributable attributable
Year Companies to common other ways (including
(tax to common to the
in annual shareholder (such as other
included） shareholder common
consolidate s of Listed share methods)
s of Listed shareholder
d Companies repurchase)
Companies s of the
statements in the
in the listed
of dividends consolidate
consolidate company in
d
d statement the
statements
consolidate
d statement
-52,388,872.
2020 0.00 0.00% 0.00 0.00% 0.00 0.00%
87
2019 0.00 1,996,242.74 0.00% 0.00 0.00% 0.00 0.00%
-13,392,596.
2018 0.00 0.00% 0.00 0.00% 0.00 0.00%
16
The Company made profit in the Reporting Period and the profit distributable to common shareholders of the Company was positive,
but it did not put forward a preliminary plan for cash dividend distribution to its common shareholders
□ Applicable √ Not applicable
23
广东舜喆（集团）股份有限公司 2020 年年度报告全文
II Proposal for Profit Distribution and Converting Capital Reserve into Share Capital for this
Reporting Period
□ Applicable √ Not applicable
The Company plans not to distribute cash dividends or bonus shares or convert capital reserve into share capital.
III Performance of commitments
1. Commitments of the Company’s Actual Controller, Shareholders, Related Parties and Acquirer,
as well as the Company and Other Commitment Makers, Fulfilled in this Reporting Period or
Ongoing at the Period-end
√ Applicable □ Not applicable
Date of Period of
Commitmen Type of
Commitment Contents commitment commitmen Fulfillment
t maker commitment
making t
Commitments made in share reform
Commitments made in acquisition
documents or shareholding
alteration documents
Excepting
the
The company
Company's stock, it can
largest not in any
shareholder area, in any
Shenzhen form,
Shenghengc engaged in
hang production
Huifu produce or
Commitments made in time of asset Industrial business
May 21,
restructuring Co., Ltd., operation Perpetual Performing
2015
the second may form
largest competition
shareholder to the
Shenzhen company
Risheng stock and its
Chuangyua subsidiaries
n Asset which
Managemen stipulated
t Co., Ltd. by the law,
regulations
and
24
广东舜喆（集团）股份有限公司 2020 年年度报告全文
stipulations
from CSRC.
We will try
our best to
avoid or
reduce the
related
party
transaction
s between
the
company
and its
controlled
The
enterprises
Company's
. In case of
largest
unavoidabl
shareholder
e related
Shenzhen
party
Shenghengc
transaction
hang
s with the
Huifu
company's
Industrial
shares, May 21,
Co., Ltd.,
such 2015
the second
related
largest
party
shareholder
transaction
Shenzhen
s must be
Risheng
carried out
Chuangyua
in
n Asset
accordanc
Managemen
e with the
t Co., Ltd.
principles
of fairness,
fairness
and
compensat
ion for
equal
value. The
transaction
price shall
be
determined
25
广东舜喆（集团）股份有限公司 2020 年年度报告全文
according
to the
reasonable
price
recognized
by the
market,
and the
voting of
the general
meeting of
shareholde
rs on
related
party
transaction
s shall be
avoided in
accordanc
e with the
related
party
transaction
decision-m
aking
procedures
specified in
the articles
of
association
of
Guangdon
g Rieys
(Group)
Co., Ltd,
Or cause
the related
directors to
avoid the
voting of
the board
of directors
on the
related
26
广东舜喆（集团）股份有限公司 2020 年年度报告全文
transaction
matters.
Initial public offering or
refinancing commitments
Equity incentive commitment
If the
company
sells 45%
equity of
jinshitonghe
through
future
industry
fund and
obtains
equity
transfer
funds for
profit
distribution,
the
accumulated
Make up
amount
the time
Other commitments to minority Hongchen received is
2018-12-29 agreed to Performing
shareholders of the company g Chen less than
fulfill the
120 million
obligation
yuan, or the
future
industry
fund fails to
distribute
according to
the agreed
profit
distribution
plan, the
actual
controller
Chen
Hongcheng
shall make
up the cash
within one
27
广东舜喆（集团）股份有限公司 2020 年年度报告全文
month from
the date of
the event,
and the
specific
arrangement
s for cash
compensatio
n are as
follows: 1 If
the
difference is
less than 30
million, it
shall be paid
to the
company's
account
within 10
days from
the date
when the
company
receives all
the profit
distribution
funds or the
future
industrial
fund fails to
distribute
according to
the agreed
profit
distribution
plan; 2. If
the
difference is
between 30
million and
80 million
yuan, 30
million
yuan will be
28
广东舜喆（集团）股份有限公司 2020 年年度报告全文
paid within
10 days
after the
company
receives all
the profit
distribution
funds or the
future
industrial
fund fails to
distribute
according to
the agreed
profit
distribution
plan, and
the
remaining
amount will
be paid
within 15
days after
that; 3. If
the
difference is
higher than
80 million
yuan, 30
million
yuan will be
paid within
10 days
from the
date when
the
company
receives all
the profit
distribution
funds or the
future
industrial
fund fails to
29
广东舜喆（集团）股份有限公司 2020 年年度报告全文
distribute in
accordance
with the
agreed
profit
distribution
plan, and
another 50
million
yuan will be
paid within
15 days, and
the rest will
be paid
within 5
days.
If the
amount
recovered
from the
future sale
of 30%
equity of
Shenzhen
Guorong
guarantee
is less than
RMB 150
Make up
million, it
the time
Hongchen shall make
2018-04-06 agreed to Performing
g Chen up with
fulfill the
cash within
obligation
one month
from the
date of
completion
of the
matter. If
the
company
has not
signed a
formal
equity
30
广东舜喆（集团）股份有限公司 2020 年年度报告全文
transfer
agreement
with the
counterpar
ties before
November
30, 2018,
the entity
designated
by the
actual
controller
shall sign
the
correspond
ing equity
transfer
agreement
with the
company,
and the
transfer
amount of
this part of
equity shall
not be less
than RMB
150 million
before
December
31, 2018.
Is the commitment fulfilled on
Yes
time
2. Where there had been an Earnings Forecast for an Asset or Project and this Reporting Period was
still within the Forecast Period, explain why the Forecast has been Reached for this Reporting
Period.
□ Applicable √ Not applicable
IV Occupation of the Company’s Funds by the Controlling Shareholder or its Related Parties
for Non-operating Purposes
□ Applicable √ Not applicable
31
广东舜喆（集团）股份有限公司 2020 年年度报告全文
There is no non-operational funds occupied by controlling shareholders and its related parties during the reporting period
of the company
V Explanations Given by the Board of Directors, the Supervisory Committee and the
Independent Directors (if any) regarding the “Modified Auditor’s Report” Issued by the
CPAs Firm for this Reporting Period
√ Applicable □ Not applicable
32
广东舜喆（集团）股份有限公司 2020 年年度报告全文
I. Notes on matters involved in the audit report with qualified audit opinions on emphasis of matter
paragraph
(1) The contents of the qualified opinions are as follows,
1. As of December 31, 2020, the book value of the company's long-term equity investment in
Shenzhen future industry development fund enterprise (limited partnership) (hereinafter referred to
as future industry fund) is 100.6 million yuan. Chen Hongcheng, the actual controller of the
company, promised on December 29, 2018 that the company would sell 45% of the shares of
jinshitonghe through the future industry fund (the future industry fund holds 45% of the shares of
Shenzhen jinshitonghe Investment Co., Ltd.) and distribute the profits by obtaining the equity
transfer funds, If the accumulated amount received is less than 120 million yuan or the future
industrial fund is not distributed according to the agreed profit distribution plan, Chen Hongcheng,
the actual controller, shall make up with cash within one month from the date of the event. As of the
audit report date, the company still has 100.6 million long-term investment fund not recovered.
Although we have implemented audit measures including field interviews, we are still unable to
obtain sufficient and appropriate audit evidence to determine the completeness of the presentation
of long-term equity investment, whether it is necessary to make provision for impairment of the
long-term equity investment, and whether it is possible to recover the long-term investment and its
impact on the company's financial statements
2. The company failed to receive all transfer funds of 30% of the equity of Shenzhen shenguorong
Financing Guarantee Co., Ltd. on schedule. As of december31,2020, the company has recovered
RMB 75.22 million and the remaining RMB 74.78 million has not been recovered. The actual
controller Chen Hongcheng promised to make up the difference on March 16th, 2018. The actual
controller promised to cover the difference. The actual controller promised to cover the difference
as follows: "if the amount recovered from the sale of 30% of the shares of Shenzhen Guorong
guarantee in the future is less than RMB 150 million, it shall make up in cash within one month
from the date of completion of the matter; If the company has not signed a formal equity transfer
agreement with the counterparty before November 30, 2018, the entity designated by the actual
controller shall sign the corresponding equity transfer agreement with the company. The transfer
fund of such part of the equity shall be received no less than 150 million yuan before December
31st, 2018. Although we have implemented audit measures including field interviews, we still
cannot obtain sufficient and appropriate audit evidence to determine the integrity of the presentation
of held for sale assets, whether it is necessary to withdraw the impairment provision for the held for
sale assets, and to determine the possibility of the recovery of the transfer funds of the assets to be
sold and the extent of the impact on the financial statements of the company.
(2) The content of the emphasis paragraph is as follows
1. Significant uncertainties related to going concern
33
广东舜喆（集团）股份有限公司 2020 年年度报告全文
We remind the users of the financial statements to pay attention. As stated in Note 6 and 22 of the
financial statements, as of December 31, 2020, Guangdong shunzhe company has accumulated
losses of RMB 164217783.52; In addition, the operating revenue in 2020 is significantly lower than
that in the previous year and previous years. As stated in notes 3 and 2 to the financial statements,
these events or circumstances indicate that there are significant uncertainties that may cause major
doubts about the sustainable operation ability of Guangdong shunzhe company. This matter does
not affect the audit opinions that have been published.
2. Due to the dispute over the loan contract between industrial and Commercial Bank of China
Jieyang Rongcheng sub branch (hereinafter referred to as "ICBC Jieyang Rongcheng sub branch")
and huafengqiang, etc, Industrial and Commercial Bank Jieyang Rongcheng sub branch applied to
Guangdong Jieyang Rongcheng District People's Court (hereinafter referred to as "Jieyang
Rongcheng court") to seal up the company, which is located in shenxiangou, Junbu Town, Puning
[Certificate Number: real estate ownership certificate, Guangdong real estate ownership certificate,
puzhanguzi, no.079-087; state owned land use certificate, pufuguoyong, 2001, 00420, 00421,
pufuguoyong, 2002, 00448 00449] and the use right of state-owned land. The value of the seizure is
limited to RMB 25 million. The seizure period is three years, from March 2, 2020 to March 1, 2023.
In response to the seizure, the company has estimated a debt of 25 million yuan. This matter does
not affect the audit opinions that have been published.
3. Due to the loan contract disputes between Jieyang branch of industrial and Commercial Bank of
China Limited (hereinafter referred to as "Jieyang branch of ICBC") and lailisheng, Jieyang branch
of ICBC applied to the people's Court of Rongcheng District, Jieyang City, Guangdong Province
(hereinafter referred to as "Jieyang Rongcheng court") to seal the company in chenshangou village,
Junbu Town, Puning City The property of Junxin village [property right certificate No.: Guangdong
(2017) Puning real estate No. 0000915 and 0000919) shall be sealed up, with the value of the
property being sealed up to RMB 30million, with a period of 3 years, from March 2, 2020 to March
1, 2023. The company has estimated liabilities of RMB 2376600 to deal with the sealing up. This
matter does not affect the audit opinions that have been published.
II. Special explanation of the board of directors on the matters involved in the audit opinion of the
section on strengthening the adjustment in the 2020 audit report
(1) The board of Directors believes that the audit opinions objectively reflect the actual situation
(2) The company formulates the following measures to solve the matters involved in the audit
opinion
1. Matters involved in the qualified opinion
(1) Future industry fund issues
34
广东舜喆（集团）股份有限公司 2020 年年度报告全文
The future industrial fund signed an equity transfer agreement with LANWAN public museum on
November 28, 2018. The future industrial fund sold 45% of its equity held by Shenzhen jinshitong
Investment Co., Ltd. at a price of RMB 140million. The payment progress of the equity transfer
payment is,
1. 20 million yuan within 10 working days from the effective date of the agreement
2. Another 30 million yuan will be paid within one month (NATURAL month) from the effective
date of the agreement
3. Another 40 million yuan will be paid within 4 months (NATURAL month) from the effective
date of the agreement
4. Another 30 million yuan will be paid within 5 months (NATURAL month) from the effective
date of the agreement
5. Another 20 million yuan will be paid within 6 months (NATURAL month) from the effective
date of the agreement
In the future, the industrial fund shall distribute profits to the company within three working days
after receiving the above equity transfer payment and deducting the fund related expenses.
Since LANWAN mansion paid the above-mentioned 20 million yuan for the first equity transfer, Li
Yongming, the shareholder holding 55% equity of jinshitonghe, failed to sign the resolution of the
general meeting of shareholders of jinshitonghe due to a debt dispute with the actual controller of
the company, resulting in the failure of jinshitonghe, a party to the equity transfer agreement, to
issue the corresponding resolution of the general meeting of shareholders as agreed, In order to
protect its own interests, LANWAN mansion is unwilling to continue to pay the transfer money
according to the equity transfer agreement, which leads to the failure of the future industrial fund to
continue the profit distribution.
The company learned that Li Yongming and the actual controller of the company had a new
negotiation on the debt dispute. If the debt dispute between Li Yongming and the actual controller
of the company is resolved, there will be no other legal obstacles in this equity transfer. LANWAN
mansion will continue to perform the equity transfer agreement, and the industrial fund will pay the
relevant funds to the company in the form of dividends in the future. The company will judge
whether to trigger the commitment of the actual controller according to the results of performance.
(2) Transfer of guarantee equity of Shenzhen Guorong financing
35
广东舜喆（集团）股份有限公司 2020 年年度报告全文
As the company holds 30% equity of Shenzhen Guorong financing guarantee, it does not control the
company. The company has signed "equity transfer agreement" and "supplementary agreement"
with Gaopu industry on the equity guarantee of Shenzhen Guorong financing, and the company has
received part of the equity transfer price of 75.22 million yuan. The company and Gaopu industry
have not yet terminated the equity transfer agreement and supplementary agreement, and the
relevant agreements are being implemented. At the same time, because the equity transfer
agreement and the equity transfer agreement have not been fulfilled, the actual controller has not yet
triggered the conditions of his commitment. The company is actively negotiating with Gaopu
industry, hoping to reach a consensus on accelerating the financing guarantee of Shenzhen Guorong.
The company and the actual controller will perform their respective rights and obligations
according to the results of negotiation.
2. Emphasis on the following items,
(1) As for the sustainable operation ability, the company plans to take the following measures to
solve the problem of sustainable development in the future.
During the reporting period, in order to reduce losses, the company withdrew from the clothing
e-commerce business through equity transfer. In 2020, the business of CICC Yipin will still be the
main revenue source of the company. The company will continue to promote the measures of
increasing revenue and reducing expenditure. On the one hand, CICC will actively adopt various
flexible sales methods to maintain the stability of its existing business and actively push it into the
target of inventory; On the other hand, the company will strengthen cost control, take the initiative
to reduce and save all kinds of expenses, in order to achieve the goal of efficiency. So as to
gradually solve the problem of sustainable development faced by the company. At the same time,
the company will further strengthen the recovery of receivables, find new target businesses
according to the established standards, and gradually increase new profit points through effective
ways, so as to enhance the profitability of the company.
To sum up, the company has formulated a clear business plan, and the relevant problems will be
solved step by step. The existing business is relatively stable, and the company will fundamentally
solve the problem of sustainable development of the company.
(2) As for the closure of the real estate used for mortgage guarantee, the company has accrued the
estimated liabilities
The company pays close attention to the progress of the project. On the one hand, the company
communicated with huafengqiang and lailisheng respectively, urging them to take measures to
repay the loan as soon as possible, or to provide sufficient guarantee to the company to resolve the
risks that the company needs to bear. On the other hand, the company is planning ahead of time. If
the real estate used for mortgage guarantee is sealed up, the company will immediately take legal
measures to recover from the relevant units, so as to reduce the company's losses and make
corresponding disclosure.
36
广东舜喆（集团）股份有限公司 2020 年年度报告全文
3. The impact of the matter on the listed companies
Through the self-examination of the company's management, it is not found that the above reserved
and strengthened items have other significant adverse effects on the company's financial situation
and operating results in 2020
4. Independent director's independent opinions on the matters and solutions involved in the audit
opinion of the retained strengthened matters section
The company should strictly implement the relevant measures, eliminate the impact of the audit
opinions on the company, and effectively safeguard the interests of investors, especially small and
medium-sized investors
VI YoY Changes in Accounting Policies, Estimations and Methods
√ Applicable □ Not applicable
VII Retroactive Restatement due to Correction of Material Accounting Errors in this
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII YoY Changes in the Scope of the Consolidated Financial Statements
√ Applicable □ Not applicable
IX Engagement and Disengagement of CPAs Firm
CPAs firm at present
UnITax Zhenqing Certified Public Accountants (Special
Name of the domestic CPAs firm
General Partnership)
The Company’s payment for the domestic CPAs firm
49
(RMB’0,000)
Consecutive years of the audit service provided by the
1
domestic CPAs firm
Name of certified public accountant of the domestic CPAs
Qi Zhang, Shimei Li
firm
Continuous years of audit services of Certified Public
1、1
Accountants of the domestic CPAs firm
37
广东舜喆（集团）股份有限公司 2020 年年度报告全文
Whether the CPAs firm was changed in the Reporting Period
√ Yes □ No
Whether to change the accounting firm during the audit period
□ Yes √ No
Does the change follow the approval procedure
√ Yes □ No
Detailed description of changing the accounting firm,
Due to the tight personnel arrangement of the Asia (Group) CPAs (Special General Partnership), in
order to ensure the audit quality, the company failed to reach an agreement with Asia (Group) CPAs
(Special General Partnership) on the audit work arrangement. After full consultation, the company
decided not to re employ Asia (Group) CPAs (Special General Partnership), The company UnITax
Zhenqing Certified Public Accountants (Special General Partnership) as the company's 2020 annual
financial report and internal control audit organization.
For details, please refer to the announcements (No.: 2021-012, 2021-017) disclosed in the securities
times, Ta Kung Pao and CNKI on March 23, 2021 and March 27, 2021.
Information of employing internal control audit accounting firm, financial consultant or sponsor
√ Applicable □ Not applicable
The company employs UnITax Zhenqing Certified Public Accountants (Special General Partnership) as the company's
internal control audit institution in 2020, and the internal control audit fee is RMB 210000.
X Possibility of Listing Suspension or Termination after Disclosure of this Report
√ Applicable □ Not applicable
During the period from March 15, 2021 to April 12, 2021, the daily closing price of the company's
stock was less than 1 yuan for 20 consecutive trading days through the trading system of Shenzhen
Stock Exchange, which touched the situation of the termination of the listing of shares as stipulated
in Item (4) of article 14.2.1 of the stock listing rules (2020 Revision) of Shenzhen Stock Exchange.
The company's shares have been suspended since the opening of the market on April 13, 2021. If
the Shenzhen stock exchange decides to terminate the listing of the company's shares according to
the regulations, there will be no delisting period. The company's shares will be delisted within 15
trading days, and the company's shares will terminate the listing.
XI Bankruptcy and Restructuring
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XII Significant Litigations and Arbitrations
√ Applicable □ Not applicable
Amount Whether to Results and Implementati Date of Disclosure
Status Progress
involved form impact on of disclosure index
38
广东舜喆（集团）股份有限公司 2020 年年度报告全文
（10000 estimated litigation
yuan） liabilities (Arbitration)
judgment
XIII Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIV Credit Conditions of the Company as well as its Controlling Shareholder and Actual
Controller
√ Applicable □ Not applicable
Because the application of executor Huaneng Guicheng Trust Co., Ltd. (hereinafter referred to as
"HNGC") applied for Dispute case of "rishengchuangyuan" and Huaneng Guicheng trust loan and
pledge type repurchase, failure to perform the obligation of performance determined by the
effective legal document within the time limit, Chen Hongcheng, the actual controller of the
company, and Sheng Hengchang HuiFu, the controlling shareholder of the company, have been
listed in the list of dishonest executors by Shenzhen intermediate people's court.
XV Implementation of any Equity Incentive Plan, Employee Stock Ownership Plan or Other
Incentive Measures for Employees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XVI Significant Related-party Transactions
1. Related-party Transactions Relevant to Routine Operation
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Related 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
No such cases in the Reporting Period.
39
广东舜喆（集团）股份有限公司 2020 年年度报告全文
4. Credits and Liabilities with Related Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Other Significant Related Transactions
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XVII Significant Contracts and Execution
1. Entrustment, Contracting and Leasing
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leasing
□ Applicable √ Not applicable
No such cases in the Reporting Period
22. Significant Guarantees
√ Applicable □ Not applicable
(1) Guarantees Provided by the Company
Unit: RMB’0,000
Guarantees provided by the Company and its subsidiaries for external parties (excluding those for subsidiaries)
Guaran
Disclosur
Actual tee for
e date of Amount Actual Execut
occurrence Type of Period of a
Guaranteed party relevant for guarantee ed or
date (date of guarantee guarantee related
announce guarantee amount not
agreement) party
ment
or not
40
广东舜喆（集团）股份有限公司 2020 年年度报告全文
Guarantees provided by the Company for its subsidiaries
Guaran
Disclosur
Actual tee for
e date of Amount Actual
occurrence Type of Period of Execute a
Guaranteed party relevant for guarantee
date (date of guarantee guarantee d or not related
announce guarantee amount
agreement) party
ment
or not
Guarantees provided by the subsidiaries of the Company for subsidiaries
Guaran
Disclosur
Actual tee for
e date of Amount Actual Execut
occurrence Type of Period of a
Guaranteed party relevant for guarantee ed or
date (date of guarantee guarantee related
announce guarantee amount not
agreement) party or
ment
not
Total amount of company guarantee (i.e. total of the first three items)
Of which:
Explanation on guarantee that adopts complex method
(2) Illegal external guarantee
□ Applicable √ Not applicable
3. Cash asset management entrusted by others
(1) Entrusted Cash Management
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Entrusted Loans
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Major contracts for daily operation
□ Applicable √ Not applicable
5.Other Significant Contracts
□ Applicable √ Not applicable
41
广东舜喆（集团）股份有限公司 2020 年年度报告全文
No such cases in the Reporting Period
XVIII Social Responsibilities
1. Social Responsibilities Taken
Not applicable
2. Targeted Measures Taken to Help People Lift Themselves out of Poverty
(1) Targeted poverty alleviation planning
(2) Annual summary of targeted poverty alleviation
(3) Targeted poverty alleviation achievement
KIP UOM Status
I. General situation —— ——
II. Itemized input —— ——
1. Industrial Development and poverty
—— ——
alleviation
2. By Transferring employment —— ——
3.By Moving —— ——
4. By education —— ——
5. Through health —— ——
6.By Ecological protection —— ——
7. The lowest guarantee —— ——
8. Social poverty alleviation —— ——
9. Other projects —— ——
III. Awards (content, level) —— ——
(4) Follow up targeted poverty alleviation plan
3. Environmental protection related situations
Is the Company or any of its subsidiaries a heavily polluting business identified by the environmental protection authorities of China
□ Yes √ No
XIX Other Significant Events
□ Applicable √ Not applicable
42
广东舜喆（集团）股份有限公司 2020 年年度报告全文
No such cases in the Reporting Period.
XX Significant Events of Subsidiaries
□ Applicable √ Not applicable
43
广东舜喆（集团）股份有限公司 2020 年年度报告全文
Part VI Share Changes and Shareholder Information
I Share Changes
Unit: share
Before Increase/decrease (+/-) After
Conver
sion of
Stock
Percent new provide Percent
QTY dividen Other Subtotal QTY
age (%) issue nt fund age (%)
d
into
shares
164,025 164,025
1. Restricted shares 51.48% 0 0 0 0 0 51.48%
,000 ,000
164,025 164,025
1.1 Promoter’s shares 51.48% 0 0 0 0 0 51.48%
,000 ,000
Of which: shares held the
0 0.00% 0 0 0 0 0 0 0.00%
state
Shares held by 164,025 164,025
51.48% 0 0 0 0 0 51.48%
domestic juridical persons ,000 ,000
Shares held by
0 0.00% 0 0 0 0 0 0 0.00%
foreign juridical person
Other 0 0.00% 0 0 0 0 0 0 0.00%
1.2 Public corporate
0 0.00% 0 0 0 0 0 0 0.00%
shares
1.3 Internal employee
0 0.00% 0 0 0 0 0 0 0.00%
shares
1.4 Preferred shares or
0 0.00% 0 0 0 0 0 0 0.00%
other
154,575 154,575
2. Non-restricted shares 48.52% 0 0 0 0 0 48.52%
,000 ,000
2.1 RMB common shares 0 0.00% 0 0 0 0 0 0 0.00%
2.2 Domestically listed
154,575 154,575
shares for foreign 48.52% 0 0 0 0 0 48.52%
,000 ,000
investors
3. Overseas listed foreign
0 0.00% 0 0 0 0 0 0 0.00%
shares
44
广东舜喆（集团）股份有限公司 2020 年年度报告全文
4. Other 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 any share changes:
□ Applicable √ Not applicable
Approval of share changes:
□ Applicable √ Not applicable
Transfer of share ownership:
□ Applicable √ Not applicable
Implementation progress of share repurchase
□ Applicable √ Not applicable
Progress in the implementation of share repurchase through centralized bidding
□ Applicable √ Not applicable
The impact of share changes on financial indicators such as basic earnings per share and diluted earnings per share in
the latest year and the latest period, net assets per share attributable to common shareholders of the company, etc
□ Applicable √ Not applicable
Other contents deemed necessary by the company or required to be disclosed by the securities regulatory authority
□ Applicable √ Not applicable
2. Changes in Restricted Shares
□ Applicable √ Not applicable
II Issuance and Listing of Securities
1. Securities (Excluding Preference Shares) Issued in this Reporting Period
□ Applicable √ Not applicable
2. Changes in Total Shares of the Company and the Shareholder Structure, as well as the Asset and
Liability Structures
□ Applicable √ Not applicable
3. Existing Employee-held Shares
□ Applicable √ Not applicable
45
广东舜喆（集团）股份有限公司 2020 年年度报告全文
III Shareholders and Actual Controller
1. Total Number of Shareholders and their Shareholdings
Unit, share
Total number
of preference
Total number Total number shareholders
of common of preference with resumed
Total number shareholders at shareholders voting rights at
of common the prior with resumed the prior
8,392 7,930 0 0
shareholders at month-end voting rights at month-end
the period-end before the the period-end before the
disclosure of (if any) (see disclosure of
this Report note 8) this Report (if
any) (see note
8)
5% or greater shareholders or the top 10 shareholders
N Pledged or frozen shares
u
m
be
r
Increas
of
Total e/decre Numbe
Shareh no
shares ase r of
olding n-
Name of Nature of held at during restrict
percent re
shareholder shareholder the this ed Status QTY
age str
period- Report shares
(%) ict
end ing held
ed
Period
sh
ar
es
he
ld
Shenzhen Domestic Pledged 117,855,000
shenghengch non-state-owne
36.99 117,85 117,85
ang HuiFu d corporation 0 0
% 5,000 5,000 Freeze 117,855,000
Industrial Co.,
Ltd
Shenzhen Domestic Pledged 34,020,000
10.68 34,020 34,020
Risheng non-state-owne 0 0
% ,000 ,000 Freeze 34,020,000
Chuangyuan d corporation
46
广东舜喆（集团）股份有限公司 2020 年年度报告全文
Asset
Management
Co., Ltd
GUOTAI Foreign 21
JUNAN corporation ,2
21,224 -1,826,
SECURITIES( 6.66% 24
,015 740
HONGKONG) ,0
LIMITED 15
Andersen Foreign 20
International corporation ,3
20,354 13,823
Securities 6.39% 54
,244 ,571
(Hong Kong) ,2
Limited 44
Shenwan Foreign 17
Hongyuan corporation ,1
17,170 3,653,
securities 5.39% 70
,259 404
(Hong Kong) ,2
Limited 59
Shenzhen Pledged 12,150,000
Lianhua Domestic
12,150 12,150
Huiren non-state-owne 3.81% 0
,000 ,000 Freeze 12,150,000
Industrial Co., d corporation
Ltd
Haitong Foreign
9,
International corporation
38
Securities 9,382, 5,409,
2.94% 2,
Company 284 362
28
Limited-Accou
4
nt Client
China Foreign 4,
Everbright corporation 22
4,226,
Securities 1.33% 0 6,
600
(Hong Kong) 60
Limited 0
2,
Domestic 01
2,011, 288,02
Chen Jianxing natural 0.63% 1,
746 3
person 74
6
1,
1,276, 553,90
Liu Yonghe 0.40% 27
340 0
6,
47
广东舜喆（集团）股份有限公司 2020 年年度报告全文
34
0
The top 10 shareholders of
strategic investors or general
legal persons due to placement Not applicable
of new shares (if any) (see note
3)
Shenzhen shenghengchang HuiFu Industrial Co., Ltd., Shenzhen
Description of the above rishengchuangyuan Asset Management Co., Ltd. and Shenzhen Lianhua Huiren
shareholders' related Industrial Co., Ltd. have related relationship and concerted action relationship, while
relationship or concerted action the related relationship or concerted action relationship of other shareholders is
unknown.
Description of the above
shareholders involved in
Not applicable
entrusted / entrusted voting
right and waiver of voting right
Shareholding of top 10 circulation shareholders
Number of listed and circulating shares Classification of shares
Shareholder
held at the end of the report period Types of shares QTY
GUOTAI JUNAN
Overseas listed
SECURITIES(HONGKONG) 21,224,015 21,224,015
foreign shares
LIMITED
domestically
Andersen International
20,354,244 listed B shares in 20,354,244
Securities (Hong Kong) Limited
foreign currencies
domestically
Shenwan Hongyuan securities
17,170,259 listed B shares in 17,170,259
(Hong Kong) Limited
foreign currencies
domestically
Haitong International Securities
9,382,284 listed B shares in 9,382,284
Company Limited-Account Client
foreign currencies
domestically
China Everbright Securities
4,226,600 listed B shares in 4,226,600
(Hong Kong) Limited
foreign currencies
domestically
Jianxing Chen 2,011,746 listed B shares in 2,011,746
foreign currencies
domestically
Yonghe Liu 1,276,340 listed B shares in 1,276,340
foreign currencies
48
广东舜喆（集团）股份有限公司 2020 年年度报告全文
domestically
Jinming Chen 765,500 listed B shares in 765,500
foreign currencies
domestically
Zhenqi Chen 701,800 listed B shares in 701,800
foreign currencies
domestically
Tingting Wang 635,107 listed B shares in 635,107
foreign currencies
Description of the relationship
or concerted action between
the top 10 shareholders of non
tradable shares and between Unknown
the top 10 shareholders of non
tradable shares and the top 10
shareholders
Description of the top 10
common shareholders
N/A
participating in Margin Trading
(if any) (see note 4)
Indicate by tick mark whether any of the top ten common shareholders or the top ten non-restricted common shareholders of the
Company conducted any promissory repo during this Reporting Period
□ Yea √ No
No such cases in this Reporting Period.
2. Information about the Controlling Shareholder
Nature of the controlling shareholder: natural person shareholding
Type of the controlling shareholder: legal person
Legal
Name of controlling Date of
representative/pers Credibility code Main business scope
shareholder establishment
on in charge
Sales of hardware,
electric, building
materials, electronic
Shenzhen Shenghengchang 91440300741222321
Chen Hongcheng 1997-05-14 products and auto parts;
Huifu Industrial Co., Ltd. M
import and export goods,
technology import and
export (except for
49
广东舜喆（集团）股份有限公司 2020 年年度报告全文
projects prohibited by
laws and administrative
regulations; projects
prohibited by laws and
administrative
regulations can be
operated with
permission)
Equity of other domestic
and foreign listed
companies controlled and
No
participated by controlling
shareholders during the
reporting period
Change of the controlling shareholder during this Reporting Period
□ Applicable √ Not applicable
No such cases in this Reporting Period
3. Information about the Actual Controller
Nature of the actual controller: domestic natural person
Type of the actual controller: natural person
Relationship with If have the right of abode in other
Name Nationality
actual controller countries or regions
Chen Hongcheng Self China No
Concerted action China No
(including
Chen Honghai agreement,
relatives and the
same control)
Concerted action China No
(including
Chen Dongjia agreement,
relatives and the
same control)
Concerted action China No
(including
Ding Lihong agreement,
relatives and the
same control)
Concerted action China No
Chen Xuewen
(including
50
广东舜喆（集团）股份有限公司 2020 年年度报告全文
agreement,
relatives and the
same control)
Concerted action China No
(including
Chen Hongzhen agreement,
relatives and the
same control)
Concerted action China No
(including
Chen Yuezhong agreement,
relatives and the
same control)
Main occupation and position Director, acting chairman and acting president of the company
Particulars on his controlling listed
N/A
companies over the past ten years
Change of the actual controller during this Reporting Period
□ Applicable √ Not applicable
No such cases in this Reporting Period.
Ownership and control relations between the actual controller and the Company
51
广东舜喆（集团）股份有限公司 2020 年年度报告全文
Indicate by tick mark whether the actual controller controls the Company via trust or other ways of asset management.
□ Applicable √ Not applicable
4. 10% or Greater Corporate Shareholders
√ Applicable □ Not applicable
Legal representative / Date of
Name of corporate shareholder Registered capital Business scope
company principal establishment
Be entrusted with asset
management, equity
investment, investment
consulting and
information consulting
(the above excluded
securities, insurance,
financial business, human
resources consulting
service and other
restricted projects); invest
Shenzhen Risheng Chuangyuan September 8, and initiate industries (the
Zheng Peilin RMB308 million
Asset Management Co., Ltd. 2000 detailed project till further
declared); domestic
trade(excluding monopoly
commodities); import and
export of goods
(excluding projects
limited by laws and
administration
regulations; certification
shall be gained for the
above mentioned limited
projects)
5. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder, Actual Controller,
Reorganizer and Other Commitment Makers
□ Applicable √ Not applicable
52
广东舜喆（集团）股份有限公司 2020 年年度报告全文
Part VII Preferred Shares
□ Applicable √ Not applicable
No preferred shares in the Reporting Period
53
广东舜喆（集团）股份有限公司 2020 年年度报告全文
54
广东舜喆（集团）股份有限公司 2020 年年度报告全文
Part VIII Convertible bonds
□ Applicable √ Not applicable
No preferred shares in the Reporting Period.
55
广东舜喆（集团）股份有限公司 2020 年年度报告全文
Part VIIII Directors, Supervisors, Senior Management and Staff
I Changes in Shareholdings of Directors, Supervisors and Executive Officers
Openi Increas Decreas
Other
ng e in this e in this Closing
Incumb Starting Ending increas
Office shareh Reporti Reporti shareho
Name ent/for Gender Age date of date of e/decre
title olding ng ng lding
mer tenure tenure ase
(share Period Period (share)
(share)
) (share) (share)
Vice Incumb Male
Chen Chairm ent
2016-01 2019-0
Hongch an of 62 0 0 0 0 0
-22 1-21
eng the
Board
Chen Directo Incumb Male
2016-01 2019-0
Hongh r ent 66 0 0 0 0 0
-22 1-21
ai
Chen Directo Incumb Male
2016-01 2019-0
Dongw r ent 30 0 0 0 0 0
-22 1-21
ei
indepe Incumb
Pan
ndent ent 2016-01 2019-0
Xiaoch Female 49 0 0 0 0 0
directo -22 1-21
un
r
Zhuan indepe Incumb Male
g ndent ent 2016-01 2019-0
47 0 0 0 0 0
Weido directo -22 1-21
ng r
indepe Incumb Male
Liu ndent ent 2016-01 2019-0
43 0 0 0 0 0
Yong directo -22 1-21
r
supervi Incumb Male
sory ent
Yan 2016-01 2019-0
board 51 0 0 0 0 0
Mingfei -22 1-21
chairm
an
Huang Superv Incumb Female 54 2016-01 2019-0 2,000 0 0 0 2,000
56
广东舜喆（集团）股份有限公司 2020 年年度报告全文
Yanfan isor ent -22 1-21
g
Superv Incumb Male 2016-01 2019-0
Li Ning 51 8,200 0 0 0 8,200
isor ent -22 1-21
Chen CFO, Incumb Male
68 0 0 0 0 0
Jincai VP ent
Secret Incumb Male
ary ent
and
VP of
Xu Wei the 43 5,000 0 0 0 5,000
board
of
directo
rs
15,20
合计 -- -- -- -- -- -- 0 0 0 15,200
0
II Changes in Directors, Supervisors and Executive Officers
√ Applicable □ Not applicable
Name Position Status Date Reason
Pan independent
Left 2020-09-24 Work reasons
Xiaochun director
Secretary
and vice
Xu Wei president of Dismissal 2020-10-28 Job turnover
the board of
directors
III Brief Biographies
Professional backgrounds, main working experience and current responsibilities in the Company of
the incumbent directors, supervisors and executive officers
Chairman of the Board and President Mr. Chen Hongcheng was born in 1958; bachelor degree. At present he is the
vice chairman of the board and legal representative of the Company. He has ever been the standing commissar of
political consultative conference of Puning, Guangdong, the distinguished member of political consultative conference
of Guangdong Province, vice chairman of Costume Association of Guangdong Province, vice chairman of Costume
Association of Shenzhen City, the deputy of the National People’s Congress of Jieyang City and Guangdong Province.
Director Mr. Chen Honghai was born in 1954 and graduated from university; he acts as Director of Shenzhen
Shenghengchang HuiFu Industrial Co., Ltd.
Director Mr. Chen Dongwei, was born in 1990 with a bachelor degree. Now he is the executive director of Shenzhen
Jinshi Tonghe Investment Co., Ltd. and the director of the Qianhai Hengsheng (Shenzhen) Fund Management Co., Ltd..
He once served as the General Manager of Fun Department in Shenzhen Qianhai Pengcheng Jianxin Investment Fund
57
广东舜喆（集团）股份有限公司 2020 年年度报告全文
Co. (Limited Partnership).
Liu Yong, independent Director: born in 1977, master of business administration, certified public accountant
of China, certified tax agent of China, graduated from Beijing Jiaotong University with a master's degree in
Business Administration in 2013. Since June 2006, he has been a partner of Shenzhen Pinghai Certified
Public Accountants (general partnership), executive director and general manager of Shenzhen daoluzhong
certified public accountants Co., Ltd., and independent director of Shenzhen Fangzhi Technology Co., Ltd
Independent Director, Mr. Zhuang Weidong, born in 1973, Chinese, acquired Master of law, finance law from
University of Hong Kong. He has lot of Chinese and foreign legal practice experience. Now he is a lawyer of China
Commercial Law Firm. He once worked in Guangdong Guang Cheng Law Firm and Guangdong Xindesheng Law
Firm.
Independent Director, Mr. Pan Xiaochun born in 1971, Chinese, Postgraduate degree, with many years of
enterprise management experience, is currently the deputy general manager of the financing management
center of Shenzhen Baoneng Investment (Group) Co., Ltd. and has worked in Shenzhen Jinhongsheng
Investment (Group) Co., Ltd., Shenzhen Maoye (Group) Co., Ltd.
of the Board of Supervisors Mr. Yan Mingfei born in 1968, university degree, engineer. At present, he is the
general manager of Shantou Lianzihua Information Technology Co., Ltd. he was an assistant engineer of
Shantou Special Electric Power Development Co., Ltd. and an engineer of Talent Exchange Center of
Shantou Special Economic Zone
Supervisor Ms. Huang Yanfang, born in 1966, bachelor degree, she has engaged in enterprise financial work for many
years. Now she serves in financial dep. of the Company.
Supervisor Mr. Li Ning, born in 1969, college degree, he now acts as Deputy General Manager of Administration and
HR Department of the Company. He ever acted as Supervisor of the Company, General Manager of Dongguan
Riseview Knitting Co., Ltd.
Chief Financial Officer, Mr. Chen Jincai, born in 1952 with junior college education. He ever acted as Vice Chief
and Chief of Financial Department of Shenhua (Group) Limited, Vice GM and CFO in Guanlan Golf, Chief Accountant
and Chief of Financial Department in Shenzhen S.E.Z. Real Estate (Group) Co., Ltd., etc.
Posts concurrently held in shareholding entities
√Applicable □Not applicable
Allowance from
Starting date Ending date of
Name Shareholding entity Post the shareholding
of tenure tenure
entity (yes/no)
Chairman
Chen Shenzhen Shenghengchang HuiFu
of the No
Hongcheng Industrial Co., Ltd.
Board
Posts held concurrently in other entities
√Applicable □Not applicable
Allowance
Starting date Ending date of
Name Other entity Post from the entity
of tenure tenure
(yes/no)
Zhuang Yes
China Commercial Law Co., Ltd
weidong
Liuyong Pinghai Accounting Firm, Shenzhen, Partner Yes
58
广东舜喆（集团）股份有限公司 2020 年年度报告全文
Hunan (General Partnership)
Shenzhen Jinshi Tonghe Investment Co., Yes
Ltd., Shenzhen Jinshi Tonghe Stock
Investment Center (L.P), Hunan Majiake Director/ex
Chen
Blue Arrow Technology Co., Ltd., Hunan ecutive
Dongwei
Guoguang Ceramic Group Co., Ltd. and director
Qianhai Hengsheng (Shenzhen) Fund
Management Co., Ltd.
Punishments imposed in the recent three years by the securities regulators on the incumbent directors, supervisors and executive
officers as well as those who left in this Reporting Period
□ Applicable √ Not applicable
IV Remuneration of Directors, Supervisors and Executive Officers
Decision making procedure, determination basis and actual payment of remuneration for directors,
supervisors and senior managers
According to the "proposal on the formulation of the remuneration of the company's senior
executives" deliberated and passed at the first meeting of the second board of directors in 2002, the
"proposal on the adjustment of the allowance for directors, independent directors and supervisors"
deliberated and passed at the general meeting of shareholders in 2007, and the "Remuneration
assessment system for directors and senior executives" deliberated and passed at the general
meeting of shareholders in 2012, the directors, independent directors and supervisors of the
company have been approved Each independent director pays an annual allowance of 50000 yuan
(including tax), and each supervisor pays an annual allowance of 15000 yuan (including tax). The
reasonable expenses incurred by independent directors when attending the board of directors and
the general meeting of shareholders or exercising other functions and powers in accordance with
relevant laws, regulations and the articles of association shall be reimbursed by the company
according to the actual situation.
Remuneration of directors, supervisors and senior managers of the company during the reporting
period
Unit: RMB'0000
Total Remuneration
before-tax from related
Incumbent/for
Name Office title Gender Age remuneration parties of the
mer
from the Company
Company (yes/no)
Chen Vice Chairman Incumbent No
Male 63 23.1
Hongcheng of the Board
Chen Honghai Director Male 67 Incumbent 5 No
Chen Dongwei Director Male 31 Incumbent 5 No
Independent Male Incumbent No
Liu Yong 44 5
director
59
广东舜喆（集团）股份有限公司 2020 年年度报告全文
Independent No
Pan Xiaochun Female 50 Left 1.67
director
Zhuang Independent Male Incumbent No
48 5
Weidong director
supervisory Male Incumbent No
Yan Mingfei 52 1.5
board chairman
Huang Yanfang Supervisor Female 55 Incumbent 10.5 No
Li ning Supervisor Male 52 Incumbent 11.7 No
CFO and vice Male Incumbent No
Chen Jincai 69 15.6
president
Secretary of the Male No
Xu Wei Board and vice 44 Left 13
president
Total -- -- -- -- 97.07 --
Equity incentives for directors, supervisors and executive officers in this Reporting Period
□ Applicable √ Not applicable
V Employees
1. Number, Functions and Educational Backgrounds of Employees
Major composition
Major composition category Number
Education level
Education Qty(person)
postgraduate
bachelor
senior school
junior middle school
2. Employee Remuneration Policy
During the reporting period, the company's salary policy has not changed, and the salary structure has not been
adjusted, mainly including basic salary, post salary, subsidies, five insurances and one fund, etc.
60
广东舜喆（集团）股份有限公司 2020 年年度报告全文
3. Employee Training Plans
During the reporting period, the company did not carry out any other training except organizing some directors,
supervisors and senior executives to participate in the training organized by the industry association.
4. Labor Outsourcing
□ Applicable √ Not applicable
61
广东舜喆（集团）股份有限公司 2020 年年度报告全文
Part X Corporate Governance
I Basic Situation of Corporate Governance
In the Reporting Period, the Company strictly in line with requirements of Company Law,
Securities Laws and other relevant laws and regulations as well as requirement of a modern
enterprise system, continued to perfected corporate governance structure, established and perfected
internal management and control system, consistently dug in convene of corporate governance
activities, so as to standardizing operation of the Company and promoting corporate governance
level of the Company. During the Reporting Period, the Company’s overall operation was standard
and independent, and the information disclosure is standard, and the actuality of the corporate
governance of the Company was in accordance with requirements of documentary files on
corporate governance of listed companies issued by CSRC.
Any significant incompliance with the regulatory documents issued by the CSRC governing the governance of listed companies
□ Yes √ No
No such cases in this Reporting Period.
II Independence of Businesses, Personnel, Asset, Organizations and Finance which are
Separate from the Controlling Shareholder
The Company is completely separated from its controlling shareholder in aspects such as business,
personnel, assets, institutions and finance and possesses independent and complete business and
self-dependent operating ability.
1. In respect of business, the Company owned an integrated business structure and independent
operation, it doesn’t depend on any shareholder or other party; besides, it exist no horizontal
competition or any obviously unfair related-party transaction between the Company and its
controlling shareholder, actual controller and other enterprises controlled by it, nor any event that
the controlling shareholder directly or indirectly intervened the operation of the Company.
2. In respect of personnel, in terms of labor, personnel and salary management, the Company and
the controlling shareholder were independent from each other. Such senior management staff as
Chairman of the Board, General Manager, and Deputy General Managers all drew remuneration
from the Company, and they did not take any post in the controlling shareholder and its
subsidiaries.
3. In respect of assets, separated from the controlling shareholder, the Company owned independent
production and operation site, integrated assets structure, independent production system, auxiliary
production systems and ancillary facilities, land use right and ownership of house, etc., and
independent procurement and sales system. Besides, it owned complete controlling right on all the
assets, there was no illegal occupation of assets and funds by the controlling shareholder, actual
controller or their controlling enterprises that did any harm to the interest of the Company.
4. In respect of organization, the Company has set up a perfect organization that was independent
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
from the controlling shareholder or its functional departments.
5. In respect of financing, the Company owned independent financial department with independent
accountants, established independent accounting system and financial management system,
independently made the financial decision. Besides, it opened independent bank account and paid
tax independently.
III Horizontal Competition
□ Applicable √ Not applicable
IV Annual and Special Meetings of Shareholders Convened during this Reporting Period
1. General meeting of shareholders during the reporting period
Investor Date of
Times Tyoe Date of meeting Disclosure index
participation ratio disclosure
Published in the
securities times,
Ta Kung Pao and
CNKI
www.cninfo.com.
cn
General meeting
Annual general Announcement
of shareholders 51.49% 2020-06-29 2020-06-30
meeting on the resolution
in 2019
of the general
meeting of
shareholders in
2011
(Announcement
No.: 2020-017)
2. The preferred shareholders whose voting rights are restored request to hold an extraordinary
general meeting of shareholders
□ Applicable √ Not applicable
V Performance of Independent Directors in this Reporting Period
1. Attendance of Independent Directors in Board Meetings and Meetings of Shareholders
Attendance of independent directors in board meetings and meetings of shareholders
Independent Due Presence on Presence by Presence Absence for Absent for Presence or
director presence in site for telecommuni through a board two meetings of
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
this board cation for proxy for meetings consecutive shareholders
Reporting meetings board board (times) times for (times)
Period for (times) meetings meetings board
board (times) (times) meetings
meetings
(times)
Zhuang
6 6 0 0 0 No 1
Weidong
Liu Yong 6 5 0 1 0 No 1
Pan Xiaochun 3 1 0 0 2 Yes 0
Explanation of not attending the board meeting in person for two consecutive times
Ms. pan Xiaochun, an independent director, failed to attend the board of directors in time due to work reasons. She resigned as an
independent director on September 24, 2020.
2. Objections Raised by Independent Directors on Issues of the Company
Indicate by tick mark whether any independent directors raised any objections on issues of the Company.
□ Yes √ No
No such cases in this Reporting Period.
3. Other Details about the Performance of Duties by Independent Directors
Indicate by tick mark whether any suggestions from independent directors were adopted by the Company.
√ Yes □ No
Suggestions from independent directors adopted or not adopted by the Company:
VI Performance of Duties by Specialized Committees under the Board during this Reporting
Period
（I） Performance of Board Audit Committee
1. Review of the financial statements of the company by the audit committee of the board of directors
(1)The Audit Committee of the Board of Directors reviewed the Financial Statements compiled by the Company before the CPAs’
entry for the yearly audit of the Company, believing that, the statements was in line with the Accounting Standard for Business
Enterprises published by the State, and truly reflected the Company’s financial status, operating results and cash flows in 2019, so it
was permitted that ASIA (Group) Accounting Firm carried out the annual audit for the year 2019 on the basis of the said statements.
(2) The audit committee of the board of directors reviewed the relevant financial statements after the initial audit opinion was issued by
the accounting firm, and considered that after the financial statements of the company were adjusted according to the audit adjustment
entries, the financial statements of the company were in line with the situation of the company, and had no objection to the preliminary
audit opinion of the financial report of 2019.
(3) After the audit results of the company in 2019 issued by the accounting firm, the audit committee of the board of directors reviewed
the financial and accounting report again, agreed with the audit results of the accounting firm on the company's financial statements in
2019, and agreed to submit the audit report to the board of directors for deliberation.
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
2. Supervision of the Audit Committee on the annual audit work of the company
Before the entry of the annual audit accountant, the audit committee, the company's finance department and the accounting firm have
jointly negotiated and determined the audit schedule of the company's financial report for this year. The audit committee of the board of
directors shall, after the annual audit of certified public accountants, conduct face-to-face communication with the certified public
accountants of the accounting firm according to the audit work schedule and audit process determined through consultation with the
accounting firm, entrust special personnel to follow up and urge them to submit the audit report within the agreed time limit by
telephone, e-mail, etc.
3. A summary report on the audit work of accounting firms in 2019
The audit committee of the board of Directors believes that the Asia Pacific (Group) accounting firm (special general partnership) has
carried out and completed the audit work of the company in 2019 in strict accordance with the provisions of the audit regulations and
standards. Its audit time is sufficient, the professional quality of the staff is high, the practice ability and the risk awareness are strong.
The audit report issued by the company fully reflects the company's financial situation in 2019 Operating results and cash flow, the
audit conclusions truly reflect the actual situation of the company.
4. Review and approve the appointment of audit institutions in 2020
The audit committee proposed Asia Pacific (Group) accounting firm (special general partnership) as the company's auditing body in
2020.
5. The development of internal audit by the audit committee
(1) Require internal audit department to make annual internal audit plan;
(2) Carry out special or comprehensive internal audit work according to the situation listed in the financial statements on a quarterly
basis;
(3) Timely submit the problems found to relevant departments for rectification.
(II) Summary of duty performance of Remuneration & Appraisal Committee
In 2019, the salary standards of directors, supervisors and senior managers of the company conform to the relevant provisions of the
company. No inconsistencies between the salary standards and the relevant system of the company were found, and no violations of the
relevant system of the company were found.
VII Performance of Duties by the Supervisory Committee
Did the Supervisory Board find any risks to the Company during its supervision in this Reporting Period?
□ Yes √ No
The Supervisory Board raised no objections in this Reporting Period.
VIII Appraisal and Incentive for Executive Officers
During the Reporting Period, the Company’s senior management staffs seriously performed their duties in strict accordance with the
Company Law, Articles of Association and relevant laws and rules, actively implemented the resolutions made in the Company’s
shareholders’ general meeting and the board sessions, continued to strengthen the internal management under the correct direction of
the Board of Directors, and well completed the tasks of the year.
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
IX Internal Control
1. Serious Internal Control Defects Found in this Reporting Period
√ Yes □ No
Details
The defects of internal control of financial report and the rectification of the company during the reporting period are as follows:
Due to the dispute over the loan contract between industrial and Commercial Bank of China Jieyang Rongcheng sub branch
(hereinafter referred to as "ICBC Jieyang Rongcheng sub branch") and huafengqiang, etc, Industrial and Commercial Bank
Jieyang Rongcheng sub branch applied to Guangdong Jieyang Rongcheng District People's Court (hereinafter referred to as
"Jieyang Rongcheng court") to seal up the company, which is located in shenxiangou, Junbu Town, Puning [Certificate Number:
real estate ownership certificate, Guangdong real estate ownership certificate, puzhanguzi, no.079-087; state owned land use
certificate, pufuguoyong, 2001, 00420, 00421, pufuguoyong, 2002, 00448 00449] and the use right of state-owned land. The
value of the seizure is limited to RMB 25 million. The seizure period is three years, from March 2, 2020 to March 1, 2023.
Due to the loan contract disputes between Jieyang branch of industrial and Commercial Bank of China Limited (hereinafter
referred to as "Jieyang branch of ICBC") and lailisheng, Jieyang branch of ICBC applied to the people's Court of Rongcheng
District, Jieyang City, Guangdong Province (hereinafter referred to as "Jieyang Rongcheng court") to seal the company in
chenshangou village, Junbu Town, Puning City The property of Junxin village [property right certificate No.: Guangdong (2017)
Puning real estate No. 0000915 and 0000919) shall be sealed up, with the value of the property being sealed up to RMB
30million, with a period of 3 years, from March 2, 2020 to March 1, 2023.
The company pays close attention to the progress of the project. On the one hand, the company communicated with huafengqiang
and lailisheng respectively, urging them to take measures to repay the loan as soon as possible, or to provide sufficient guarantee
to the company to resolve the risks that the company needs to bear. On the other hand, the company is planning in advance. If the
property used for mortgage guarantee is sealed and disposed, the company will take legal measures to recover the compensation
to the relevant units respectively, so as to ensure the loss of the company is reduced and the corresponding disclosure work is
done.
2. Internal Control Self-evaluation Report
Disclosure date of the Self-appraisal
2021-04-30
Report on Internal Control
Index to the disclosed internal control
www.cninfo.com.cn
self-evaluation report
Total assets of the evaluated entities as a
percentage in the consolidated total 100.00%
assets
Operating revenues of the evaluated
entities as a percentage in the 100.00%
consolidated operating revenues
Defect identification standards
Type Financial-report related Non-financial-report related
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
a. Major defect:
(1) There is no legal decision making
a. Major defects:
procedure for significant matters;
(1) The directors, supervisors and senior
(2) Lack of decision making procedure
management committed frauds;
or the undisciplined decision-making
(2) There are material misstatements in the
procedure leads to major errors;
issued financial statements, affecting the
(3) The company is subject to criminal
authenticity, completeness and fairness,
penalties or is ordered to suspend
and therefore, the company shall correct
production or business operation, or
them;
subject to the revoking or temporary
(3) The certified public account discovered
seizure of its marketing license or
materials misstatements in the current
business license and other such
financial statements, while the internal
administrative penalties, because of the
control fails to discover such
violation of state laws, regulations,
misstatements in its operation;
rules or normative documents;
(4) The company audit committee and
(4) The major defects in internal
internal audit body’s supervision on the
control are not rectified;
internal control is inefficient.
(5) There is no system control for
b. Key defects:
significant businesses or the system
(1) The control environment is in has a systematic malfunction.
sufficient;
Nature standard (2) The company’s accounting policies
violates the Accounting Standards for b. When there is solid evidence to
Business Enterprises; prove that the company is in one of the
(3) The accounting policies applied in the following circumstances at the end of
company is incompliant with the the evaluation period, it shall be
company’s accounting system; deemed that the internal control has
key defects:
(4) There is no corresponding control
mechanism for accounting treatment of (1) The decision making procedure
non-regular or special transactions, or such exists, but it is not perfect;
control mechanism is not put into (2) The irregularity of the decision
operation; making procedure results in significant
(5) There is one or more defect with the error;
control of the financial reporting process (3) The company is subject to criminal
at the end of the period, and therefore, it penalties or is ordered to suspend
cannot reasonably ensure that the production or business operation, or
authenticity and completeness in the subject to the revoking or temporary
prepared financial statements. seizure of its marketing license or
c. Minor defects: Other control defects business license and other such
except the major defects and key defects. administrative penalties, because of the
violation of state laws, regulations,
rules or normative documents;
(4) The key business system has a key
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
defect;
(5) The key defects in the internal
control are not rectified.
c. Minor defects: Other control defects
except the major defects and key
defects.
The quantitative standard takes the
The quantitative standard takes the amount
amount of direct property losses as the
of direct property losses as the
measurement indicator. If the amount
measurement indicator. If the amount of
of direct loss in assets caused by one
direct loss in assets caused by one defect
defect alone or together with other
alone or together with other defects is
defects is lower than 5% of the net
lower than 5% of the net assets in the
assets in the consolidated financial
consolidated financial statement, the
statement, the defect is a minor defect;
Quantitative standard defect is a minor defect; If the amount of
If the amount of direct loss in assets
direct loss in assets exceeds 5% of the net
exceeds 5% of the net assets in the
assets in the consolidated financial
consolidated financial statements but
statements but less than 10%, the defect is
less than 10%, the defect is a key
a key defect; If the amount of direct loss in
defect; If the amount of direct loss in
assets exceeds 10% of the net assets in the
assets exceeds 10% of the net assets in
consolidated financial statements, the
the consolidated financial statements,
defect is a major defect.
the defect is a major defect.
Number of major defects in financial
0
report
Number of major defects in
2
non-financial Report
Number of important defects in
0
financial report
Number of important defects in
0
non-financial Report
Part X Auditor’s Report on Internal Control
√ Applicable □ Not Applicable
Opinion paragraph in the auditor’s report on internal control
Due to the above major defects and the impact of achieving the control objectives, GUANGDONG JADIETE HOLDINGS
GROUP COMPANY LIMITED failed to maintain effective internal control over financial reporting in all major aspects in
accordance with the basic norms for enterprise internal control and relevant regulations on December 31, 2020.
Information Disclosure
Disclosure date 2021-04-30
Full disclosure index www.cninfo.com.cn
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Opinion types of internal
Negative opinion
control audit report
Whether there are major
Yes
defects in non-financial reports
Indicate by tick mark whether any modified opinions are expressed by the CPAs firm in its auditor’s report on the Company’s
internal control.
√ Yes □ No
Notes on the audit report of internal control issued by the accounting firm with non-standard opinions
The Jadiete company's external guarantee matters are not effectively supervised and there are major
defects. The major defect is that in the daily work of the company’s audit and supervision system, it
failed to discover the defects such as the failure to fulfill the pledge of mortgage guarantee and the
failure to sign the counter guarantee agreement in accordance with the internal control system, and
timely reported to the appropriate level as required and took effective measures.
In the mortgage guarantee, the company negotiated with Lairisheng and Huafengqiang, Lairisheng
and Huafengqiang agreed to raise funds to repay the loan and release the mortgage guarantee before
November 30, 2019, and Huafengqiang agreed to raise funds to repay the loan and release the
mortgage guarantee before October 31, 2019. As of December 31, 2019, Lairisheng and
Huafengqiang have not finished the relevant procedures to remove the real estate mortgage yet. Due
to capital problems Lairisheng and Huafengqiang are unable to fulfill their previous commitments,
and no counter guarantee agreement has been signed for the new loans in 2019.
Due to the dispute over the loan contract between industrial and Commercial Bank of China Jieyang
Rongcheng sub branch (hereinafter referred to as "ICBC Jieyang Rongcheng sub branch") and
huafengqiang, etc, Industrial and Commercial Bank Jieyang Rongcheng sub branch applied to
Guangdong Jieyang Rongcheng District People's Court (hereinafter referred to as "Jieyang
Rongcheng court") to seal up the company, which is located in shenxiangou, Junbu Town, Puning
[Certificate Number: real estate ownership certificate, Guangdong real estate ownership certificate,
puzhanguzi, no.079-087; state owned land use certificate, pufuguoyong, 2001, 00420, 00421,
pufuguoyong, 2002, 00448 00449], the value of which is limited to RMB 25 million, and the period
of sealing up is three years, from March 2, 2020 to March 1, 2023.
Due to the loan contract dispute between Jieyang branch of industrial and Commercial Bank of
China Limited (hereinafter referred to as "ICBC Jieyang branch") and lailisheng, etc., ICBC Jieyang
branch applied to the people's Court of Rongcheng District, Jieyang City, Guangdong Province
(hereinafter referred to as "Jieyang Rongcheng court") to seal up the company located in
chenshangou village, Junbu Town, Puning The real estate of Junxin village [property certificate No.:
Yue (2017) Puning real estate property No. 0000915, 0000919] will be sealed up. The value of
sealing up is limited to RMB 30 million, and the sealing up period is 3 years, from March 2, 2020 to
March 1, 2023.
Indicate by tick mark whether the auditor’s report on the Company’s internal control issued by the CPAs firm is consistent with the
self-evaluation report of the Board.
√ Yes □ No
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Part XI 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.
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Part XII financial reports
1. Audit report
Type Qualified opinion
Date 2021-04-29
UnITax Zhenqing Certified Public Accountants (Special
Name
General Partnership)
Name of CPA Zhang Qi, Li Shimei
Report text
GUANGDONG JADIETE HOLDINGS GROUP COMPANY LIMITED,
I. Qualified opinion
We have audited the accompanying consolidated financial statements of Guangdong Jadiete
Holdings Group Company Limited (hereinafter referred to as the Company), which comprise the
consolidated and the Company’s statement of financial position, the consolidated and the
Company’s statement of profit or loss and other comprehensive income, the consolidated and the
Company’s statement of cash flows, the consolidated and the Company’s statement of changes in
equity for the year ended 31 December 2018 and notes to the financial statements.
In our opinion, except the impact of the matters mentioned in the section of “the foundation of
forming reservations”, financial statements of the Company have been prepared according to the
Chinese Accounting Standards for Business Enterprises in all material aspects, which give a true
and fair view of the financial position of Guangdong Jadiete Holdings Group Company Limited and
its subsidiaries as at 31 December 2018 and of their financial performance and cash flows for the
year then ended.
II. The foundation of forming reservations
1. As of December 31, 2020, the book value of the company's long-term equity investment in
Shenzhen future industry development fund enterprise (limited partnership) (hereinafter referred to
as future industry fund) is 100.6 million yuan. Chen Hongcheng, the actual controller of the
company, promised on December 29, 2018 that the company would sell 45% of the shares of
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
jinshitonghe through the future industry fund (the future industry fund holds 45% of the shares of
Shenzhen jinshitonghe Investment Co., Ltd.) and distribute the profits by obtaining the equity
transfer funds, If the accumulated amount received is less than 120 million yuan or the future
industrial fund is not distributed according to the agreed profit distribution plan, Chen Hongcheng,
the actual controller, shall make up with cash within one month from the date of the event. As of the
audit report date, the company still has 100.6 million long-term investment fund not recovered.
Although we have implemented audit measures including field interviews, we are still unable to
obtain sufficient and appropriate audit evidence to determine the completeness of the presentation
of long-term equity investment, whether it is necessary to make provision for impairment of the
long-term equity investment, and whether it is possible to recover the long-term investment and its
impact on the company's financial statements.
2. The company failed to receive all transfer funds of 30% of the equity of Shenzhen shenguorong
Financing Guarantee Co., Ltd. on schedule. As of december31,2020, the company has recovered
RMB 75.22 million and the remaining RMB 74.78 million has not been recovered. The actual
controller Chen Hongcheng promised to make up the difference on March 16th, 2018. The actual
controller promised to cover the difference. The actual controller promised to cover the difference
as follows: "if the amount recovered from the sale of 30% of the shares of Shenzhen Guorong
guarantee in the future is less than RMB 150 million, it shall make up in cash within one month
from the date of completion of the matter; If the company has not signed a formal equity transfer
agreement with the counterparty before November 30, 2018, the entity designated by the actual
controller shall sign the corresponding equity transfer agreement with the company. The transfer
fund of such part of the equity shall be received no less than 150 million yuan before December
31st, 2018. Although we have implemented audit measures including field interviews, we still
cannot obtain sufficient and appropriate audit evidence to determine the integrity of the presentation
of held for sale assets, whether it is necessary to withdraw the impairment provision for the held for
sale assets, and to determine the possibility of the recovery of the transfer funds of the assets to be
sold and the extent of the impact on the financial statements of the company.
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
We have carried out the audit work in accordance with the auditing standards for Chinese certified
public accountants. The part of audit report "CPA's responsibility for financial statement audit"
further elaborates our responsibilities under these standards. According to the code of professional
ethics of Chinese certified public accountants, we are independent of Guangdong Shun Yi company
and fulfill other responsibilities in terms of professional ethics. We believe that the audit evidence
we have obtained is sufficient and appropriate and provides the basis for the publication of
reservations.
We conducted our audit in accordance with the Chinese Standards on Auditing for Certified Public
Accountants. The part of audit report "CPA's responsibility for the audit of financial statements"
further expounds our responsibilities under these guidelines. According to the professional ethics of
Chinese Certified Public Accountants, we are independent of the Company, and perform other
responsibilities of professional ethics. We believe that the audit evidence we obtained is sufficient
and appropriate, and providing a basis for publication of reservations.
III. Significant uncertainties that related to continuous operation
1. Significant uncertainties related to going concern
We remind the users of the financial statements to pay attention, as stated in Note 6 and 22 of the
financial statements, as of December 31, 2020, the JADIETE Company has accumulated losses of
RMB 164217783.52; In addition, the operating revenue in 2020 is significantly lower than that in
the previous year and previous years. As stated in notes 3 and 2 to the financial statements, these
events or circumstances indicate that there are significant uncertainties that may cause major doubts
about the sustainable operation ability of JADIETE Company. This matter does not affect the audit
opinions that have been published.
2. Due to the dispute over the loan contract between industrial and Commercial Bank of China
Jieyang Rongcheng sub branch (hereinafter referred to as "ICBC Jieyang Rongcheng sub branch")
and huafengqiang, etc, Industrial and Commercial Bank Jieyang Rongcheng sub branch applied to
Guangdong Jieyang Rongcheng District People's Court (hereinafter referred to as "Jieyang
Rongcheng court") to seal up the company, which is located in shenxiangou, Junbu Town, Puning
[Certificate Number: real estate ownership certificate, Guangdong real estate ownership certificate,
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
puzhanguzi, no.079-087; state owned land use certificate, pufuguoyong, 2001, 00420, 00421,
pufuguoyong, 2002, 00448 00449] and the use right of state-owned land. The value of the seizure is
limited to RMB 25 million. The seizure period is three years, from March 2, 2020 to March 1, 2023.
In response to the seizure, the company has estimated a debt of 25 million yuan. This matter does
not affect the audit opinions that have been published.
3. Due to the loan contract dispute between Jieyang branch of industrial and Commercial Bank of
China Limited (hereinafter referred to as "ICBC Jieyang branch") and lailisheng, etc., ICBC Jieyang
branch applied to the people's Court of Rongcheng District, Jieyang City, Guangdong Province
(hereinafter referred to as "Jieyang Rongcheng court") to seal up the company located in
chenshangou village, Junbu Town, Puning The real estate of Junxin village [property certificate No.:
Yue (2017) Puning real estate property No. 0000915, 0000919] will be sealed up. The value of
sealing up is limited to RMB 30 million, and the sealing up period is 3 years, from March 2, 2020 to
March 1, 2023. In response to the seizure, the company has estimated liabilities of 23.7606 million
yuan. This matter does not affect the audit opinions that have been published.
IV. Key audit matters
The key audit matter is the matters which we consider most important in the audit of current
financial statements according to our professional judgment. To deal with these matters should be in
the background of auditing the whole financial statements and forming audit opinions, we do not
comment on these matters separately
(1) Revenue recognition
i. Description
In 2020, the main business income of Guangdong shunzhe is 12093926.25 yuan, and the main
business income of Shenzhen Chinese Gold Nobility Jewelry Co., Ltd. (hereinafter referred to as "
Chinese Gold Nobility") is 10517813.69 yuan. As an important source of consolidated profits of
Guangdong shunzhe company, Chinese Gold Nobility determines the authenticity and cut-off of
main business income as the key audit matters.
According to the accounting policy of Chinese Gold Nobility Company, its revenue mainly comes
from sales of gold jewelry and mosaic jewelry. The company recognizes the above sales revenue as
the Company’s revenue at the time point customer confirms the acceptance receipt.
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(2) Audit response
Our audit procedures for the authenticity and integrity of operation revenue include (but are not
limited to)
i. Understand and test the design and implementation between CGNJ Company and internal control
system and financial accounting system which relevant to sales and receipts.
ii. Distinguish the categories of sales products, combine industry development with company's
actual situation, execution of analytical review procedures, judge the rationality of sales income and
gross profit change.
iii. Perform detailed testing, do sample Inspection for the records of inventory receiving and
dispatching, sales warehouse receipt signed by customers and so other external evidence, check
receipt records, information corroboration of occurrence amount in the current period, occurrence
amount of prime operating revenue and combining sales contract terms and other information, at the
same time, field visits have been further implemented for large customers, audit authenticity of
sales income.
iiii. Have Sample checks on the income at the end of 2020 and the beginning of 2021, audit
deadline of sales revenue and so on.
V. Other information
Management of the Company (hereinafter referred to as management) is responsible for other
information. Other information includes information contained in annual reports, but excludes
financial statements and our audit reports.
Our audit opinions on financial statements do not contain any other information, nor do we publish
any form of forensic conclusion on other information.
Combined with our audit of financial statements, our responsibility is to read other information, in
the process, we considered whether there is significant disagreement or major misstatement
between other information with financial statements and what we know in the process of auditing
Based on the work we have done, we should report the fact if we confirm that other information
exists major misstatement. we have nothing to report in this respect.
VI. Responsibility of management and governance for financial statements
Management of the Company (hereinafter referred to as management) is responsible for preparing
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
financial statements according to the accounting standards of enterprises, making it fair to reflect,
designing, implementing, and maintaining necessary internal control, making financial statements
do not exist major misstatement caused by fraud or errors.
In the preparation of financial statements, management is responsible for evaluating continuous
operation ability of the Company, disclosure of matters related to continuous operation (if
applicable), and using the continuing operation hypothesis, unless the management plan to settle
accounts of the Company, terminate operation or no other realistic choice
Governance is responsible for oversight of the financial reporting process of the Company.
VII. CPA's responsibility for the audit of financial statements
Our goal is to get a reasonable guarantee for the overall of financial statements do not exist major
misstatement caused by fraud or errors, and issue an audit report containing the audit opinion.
Reasonable assurance is high level guarantee, but it doesn't guarantee that audit performed
according to auditing standards can always be found in the presence of a major misstatement.
Misstatements may be caused by fraud or error, misstatements are often considered to be major if
the reasonable anticipation of misstatement may separate or gathered affect economic decisions by
the user of the financial statements,
In implementing audit work according to auditing standards, we use professional judgement and
remain professional skepticism. At the same time, we also carry out the following works:
(1) Identified and evaluated the risk of major misstatement of financial statements caused by fraud
or error, designed and implemented audit procedures to deal with these risks and obtain sufficient
and appropriate audit evidence as the basis for the publication of audit opinions. Because fraud may
involve collusion, forgery, intentional omission, false statement, or overriding internal control, the
risk of major misstatements caused by fraud is higher than the risk of failure to find major
misstatements caused by errors.
(2) Understood the internal control related to audit, so as to design appropriate audit procedures.
(3) To evaluate the appropriateness of accounting policies that chose by management and make sure
accounting estimation and its related disclosure was reasonable.
(4) Came to a conclusion for the appropriateness of management using the continuous operation
hypothesis. At the same time, according to the audit evidence obtained, came to a conclusion for the
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matter that may cause serious doubts about the company's continuous capacity or whether situation
exists a major uncertainty. If we came to conclusion that there was a major uncertainty, the audit
guidelines required us to draw users' attention to relevant disclosures in financial statements in audit
report. If the disclosure was not enough, we should publish reservations. Our conclusion is based on
information available at the end of the audit date. However, future events or conditions may cause
the Company can’t continue to operate.
(5) Evaluated overall presentation, structure and content (including disclosure) of financial
statements, and evaluated whether the financial statements reflect the related transactions and
matters fairly.
(6) Obtained sufficient and appropriate audit evidence on the financial information of entity or
business activities in the Company, and comment on the financial statements. We are responsible
for guiding, supervising and implementing group audits. We assume full responsibility for the audit
opinion.
We have communicated with governance about audit scope of the plan, time arrangement, major
audit findings and other matters, communication includes the notable internal control flaws we
identified in the audit.
We have provided a statement to the governance about complied with the professional ethics related
to independence, and communicated with governance about all relationships and other matters that
may be reasonably considered to affect our independence, as well as related precautions (if
applicable).
Through the matters that communicated with governance, we decide what matters are most
important for the current financial statement audit, thus constitutes a key audit matter. We describe
these matters in the audit report, unless laws and regulations prohibit public disclosure of these
matters, or in very few cases, if the negative consequences of a reasonably expected communication
of a matter in the audit report exceed the benefits of the public interest, we are determined not to
communicate the matter in the audit report.
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I. Company Profile
1. Establishment
Under the approval of People’s Government of Guangdong Province’s YBH No. 580 (1997),
Guangdong Jadiete Holdings Group Company Limited (original name: Guangdong Rieys
Group Company Ltd, hereinafter referred to as ‘the Company’) is promoted by five
enterprises including Puning Haicheng Industrial Co., Ltd (which changed its name to
Shenzhen Shenghengchang Industrial Co., Ltd when it relocated to Shenzhen, in 2007, its
name changed to Guangzhou Shenghengchang Investment Co., Ltd, in 2008 this company
was renamed to Guangzhou Shenghengchang Trade Development Co., Ltd., on 28 Jan.2010
this company was renamed to Puning Shenghengchang Trade Development Co., Ltd., on 26
Jul. 2013, this company changed its name as Shenzhen Shenghengchang Huifu Industrial
Co., Ltd. because of relocation), an original partner of Sino-foreign cooperated enterprise of
Puning Hongxing Textile and Apparel Production Factory Co., Ltd.(hereinafter referred to
as ‘Hongxing Company’). Under the approval of Guangdong Province Administration For
Industry & Commerce, the Company‘s business license is 445200000034656. The Company
has its B-Stock listed on Shenzhen Stock Exchange.
The Company’s registration address is Meixin Industry Zone, Junbu, Puning, Guangdong,
and its parent company is Shenzhen Shenghengchang Huifu Industrial Co., Ltd., the
Company’s actual controller is Hongcheng Chen.
On 17 Nov. 1997, Hongxing Company was restructured to a limited corporation, which is
the Company’s predecessor.
The original registered capital of the Company is 80,000,000, which was divided into
80,000,000 shares of RMB1.00 each. 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 Dec.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 Oct.2000, and issued 9,000,000 shares of Stock B for exercise of
over-allotment options during the period from 27 Oct.2000 to 22 Nov.2000 in accordance
with approval of ZJFXZ No. 133 (2000) issued by China Securities Regulatory Commission
on 29 Sep.2000 The registered capital of the Company increased to RMB 177,000,000 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.
Up to 31 Dec. 2018, the Company’s total share capital was 318,600,000 shares, including
164,025,000 non-tradable corporate shares representing 51.48% of total shares and
154,575,000 domestic listed foreign shares (stock B) representing 48.52% of total shares.
2. Business scope
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Business scope: self-operating and agent for importing and exporting goods and technology
(excluding commodities of national management, products involved in quota license
management and other specified management); processing with imported materials, the
‘Three-plus-one’ trading-mix (custom manufacturing with materials, designs or samples
supplied and compensation trade), counter trade and entrepot trade (under approval of
WJMZSHZD No. 1225 [98] ). Manufacturing and selling of clothing, knitted goods, selling
of industrial material(excluding gold and vehicle), hardware, chemical product(excluding
hazardous chemicals), daily necessities, furniture, arts and crafts (excluding golden product),
agricultural product and etc.(excluding national forbidden commodities and other specified
management shall be subject to the relevant state provisions); warehousing; various kinds of
investment; real estate development (Level three, valid till 31 Dec. 2015); property leasing;
hotel service. Technological development, designing, selling, etc. of gold, silver, platinum,
diamond, jade, jewelry and hardstone articles.
3. Limit operating term
Naught.
4. Main business activity
The Company is mainly engaged in technological development, design and sale of gold and
jewelry.
5. The approval of financial statements
The financial statements and the notes of financial statements were submitted upon approval of 33th
Meeting of the 7th Term of Board on 27 Apr. 2021.
II. Merger scope
5 Entities in merger scope this year:
Name Type Share-holdings (%) Voting-rights (%)
ShenzhenRieysIndustrialCo. Limitedcompany
90.00 90.00
Ltd.
Tianrui(HK)TradingCo.,Ltd. Limitedcompany 100.00 100.00
ShenzhenChineseGold Limitedcompany
100.00 100.00
NobilityJewelryCo.,Ltd.
ShenzhenHongxingLiye Limitedcompany
100.00 100.00
IndustrialCo.,Ltd
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ShenzhenXiaoxiaomei Limitedcompany
100.00 100.00
TechnologyCo.,Ltd
III. Basis for the preparation of financial statements
1. Basis for the preparation of financial statements
With the going-concern assumption as the basis and based on transactions and other events
that actually occurred, the Company prepared financial statements in accordance with issued by the Ministry of
Finance, revised specific accounting standards, the Application Guidance of Accounting
Standards for Business Enterprises, the Interpretation of Accounting Standards for Business
Enterprises and other regulations(hereinafter jointly referred to as ‘the Accounting Standards
for Business Enterprises’, ‘China Accounting Standards’ or ‘CAS’), as well as the Rules for
Preparation Convention of Disclosure of Public Offering Companies No.15 – General
Regulations for Financial Reporting (revised in 2014) by China Securities Regulatory
Commission.
In accordance with relevant provisions of the Accounting Standards for Business Enterprises,
the Company adopted the accrual basis in accounting. Except for some financial instruments,
where impairment occurred on an asset, an impairment reserve was withdrawn accordingly
pursuant to relevant requirements.
2. Gong concern
Till 31th Dec. 2020, the company has accumulated loss of RMB 166,859,453.48, operating
revenue declined sharply from the previous year. The main reason for the loss of the
company is the continuous depression of macro-economy and the impact of epidemic
situation, resulting in the gradual shrinkage of sales. According to the company's latest
development plan, the company will continue to promote the measures of increasing
revenue and reducing expenditure. On the one hand, the company will actively adopt a
variety of flexible sales methods to maintain the stability of the main business and actively
push in the target of inventory; On the other hand, the company will strengthen cost control,
actively reduce and save all kinds of expenses, so as to achieve the goal of efficiency. At the
same time, the company will also improve the recovery of receivables, actively withdraw
funds, and expand new business areas according to the established standards, and gradually
increase new profit points through effective ways, so as to enhance the profitability of the
company. With the implementation of the above plan, the company's overall revenue will
gradually rise. Therefore, the financial statements are prepared on the basis of the
assumption of going concern.
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IV. Important Accounting Principles and Accounting Estimates
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 financial positions as at 31 Dec. 2020, business results and cash flows for the year of
2020, and other relevant information.
2. Fiscal year
The fiscal year of the Company is the solar calendar year, which is from January 1 to December 31.
3. Operating cycle
A normal operating cycle refers to a period from the Company purchasing assets for processing to
realizing cash or cash equivalents. An operating cycle for the Company is 12 months, which is also
the classification criterion for the liquidity of its assets and liabilities.
4.Presentation currency
The Company adopted RMB as the bookkeeping base currency when preparing the financial
statements for the reporting year
5. Accounting treatment for business combination under common control and non-common
control
(1) The judgement standards of ‘package deal’
Several transactions should be accounted for as a package deal if conditions and the economic
impact of disposal of investments in subsidiaries are in compliance with one or more of the
following circumstances in a merging through multistep transactions：
i These transactions are considered simultaneously or another case of the occurrence of the impact
of entering into a transaction depends;
ii these transactions as a whole in order to reach a complete business results;
iii have at least one other transaction;
iv see a transaction alone is not economical, but, it is economical when other transactions are taken
into account.
(2) Business combination under common control
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The assets and liabilities obtained are measured at the carrying amounts as recorded by the
enterprise being absorbed at the combination date. The difference between the carrying amount of
the net assets obtained and the carrying amount of consideration paid for the combination (or the
total face value of shares issued) is adjusted to the capital premium (or share premium) in the
capital reserve. If the balance of the capital premium (or share premium) is insufficient, any excess
is adjusted to retained earnings.
The cost of a combination incurred by the absorbing party, including any costs directly attributable
to the combination, shall be recognized as an expense through profit or loss for the current period
when incurred.
(3) Business combination under non-common control
A business combination involving enterprises under non-common control happens if the combining
enterprises are not ultimately controlled by the same party or parties both before and after the
business combination.
For a business combination not involving enterprises under common control, the party that, on the
acquisition date, obtains control of another enterprise participating in the combination is the
acquirer, while the other enterprise participating in the combination is the acquiree. For a business
combination not involving enterprise under common control, the combination cost including the
sum of fair value, on the acquisition date, of the assets given, liabilities incurred or assumed, and
equity securities issued by the acquirer. The intermediary expenses incurred by the acquirer in
respect of auditing, legal services, valuation and consultancy services etc. and other associated
administrative expenses attributable to the business combination are recognized in profit or loss
when they are incurred. The transaction cost arose from issuing of equity securities or liability
securities should be initially recognized as cost of equity securities or liability securities.
Acquirer’s combination cost and the obtained identifiable net assets are measured with the fair
value on the acquisition date. The excess of the combination cost over the fair value of identifiable
net assets on the acquisition date is recorded as goodwill. When the fair value of identifiable assets
exceeds the combination cost, first of all, the fair value of items of obtained acquiree’s identifiable
assets, liabilities or contingent liabilities and combination cost need to be reassessed. And then,
when the combination cost is still less than the fair value of identifiable net assets on the acquisition
date after reassess, the difference should be recorded in the current year’s profit and loss.
The deductible temporary differences obtained from the acquiree which cannot be recognized as
deferred tax assets, on the acquisition date, because some conditions are not met. Within 12 months
after the acquisition, if new or additional information indicate that the relevant information exist on
the acquisition date and the economic benefits related with the deductible temporary difference can
be realized, the deferred tax assets should be recognized. The goodwill should be reduced and if the
goodwill is less than the deferred tax assets recognized, the rest part should be recorded in the
current year profit and loss.
For a business combination achieved in stages that involves multiple exchange transactions,
according to the ‘No.5 Inform of Printing and Distributing the Explanation of Accounting Standards
issued by the Finance of Ministry (Caikuai No.19 [2012])’ and Article 51of ‘Chinese Accounting
Standards for Business Enterprises No.33- Consolidated financial statement’, relating with the
judgment standards of package deal, a judgment about whether it is package deal or not should be
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made. If it is package deal, please refer to the note IV.13 - Long-term equity investment for
accounting treatment; if it is not package deal, distinguish them as individual financial statement
and consolidated financial statement for accounting treatment:
For the individual financial statements, the book value of the long-term equity investment held
before the acquisition date plus the newly added equity investment on the acquisition date, and then
sum should be recorded as the original investment cost; the long-term equity investment involved
with other comprehensive income held before the acquisition date, the way to deal with the
investment will be the same with the way the acquiree directly dispose the related assets and
liabilities (i.e., under the equity method, beside the portion caused by the acquiree’s recalculated
defined benefit plan’s net assets and net liabilities, the rest are transferred into investment income).
For the consolidated financial statements, for the shares in acquiree held before the acquisition date,
the shares are recalculated according to the fair value on the acquisition date. The difference
between the fair value and book value should be recorded in the current year investment income; for
the shares in the acquiree held before the acquisition date involving other comprehensive income.
The way to deal with the other comprehensive income should be the same with the way the acquire
directly dispose the relevant assets and liabilities (i.e., under the equity method, beside the portion
of changes caused by the acquiree’s recalculated defined benefit plan’s net assets and net liabilities,
the rest are transferred into investment income).
6. Preparation of the consolidated financial statements
The scope of consolidation in the consolidated financial statements is determined on the basis of
control. The scope of consolidation includes all of the subsidiaries (including the enterprise or entity
under the control of parent company).
The consolidated financial statements are based on the Company and subsidiaries’ financial
statements and other related material. When the accounting period or accounting policies of a
subsidiary are different from those of the Company, the Company makes necessary adjustments to
the financial statements of the subsidiary based on the Company’s accounting period or accounting
policies. Intra-group balances and transactions, and any unrealized profit or loss arising from
intra-group transactions, are eliminated when preparing the consolidated financial statements.
A subsidiary was acquired during the reporting period, through a business combination involving
enterprises under common control; the financial statements of the subsidiary are included in the
consolidated financial statements. The results of operations and its cash flow are appropriately
included in the consolidated balance sheet and the consolidated income statement, respectively,
from the beginning of the year to the date of acquisition and the comparative figures of the
consolidated financial statements are restated. For a subsidiary acquired through a business
combination not under common control, the operating results and cash flows from the acquisition
date (the date when the control is obtained) are included in the consolidated income statement and
consolidated statement of cash flows, as appropriate; no adjustment is made to the opening balance
and comparative figures in the consolidated financial statements. For a subsidiary being disposed of
by the Company, the operating results and cash flows before the date of disposal (the date when
control is lost) are included in the consolidated income statement and consolidated statement of
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cash flows, as appropriate. For a subsidiary disposed during the period, no adjustment is made to
the opening balance of the consolidated financial statements.
Minority interest and the portion in the net profit or loss not attributable to the Company are
presented separately in the consolidated balance sheet within shareholders’/owners’ equity. Net
profit or loss attributable to minority shareholders in the subsidiaries is presented separately as
minority interest in the consolidated income statement below the net profit line item. When the
amount of loss for the current period attributable to the minority shareholders of a subsidiary
exceeds the minority shareholders’ portion of the opening balance of shareholders’/owners’ equity
of the subsidiary, the excess is still allocated against the minority interests.
When the Company still holds control of a subsidiary due to acquisition of minority interest or the
disposal of a portion of an equity investment, the difference between the amount changes of
minority interests and the fair value of the consideration paid or received is adjusted to the capital
reserve, the excess is allocated against the retained earnings.
When the Company loses control of a subsidiary due to the disposal of a portion of an equity
investment or other reasons, the remaining equity investment is re-measured at its fair value on the
date when control is lost. The difference between 1) the total amount of consideration received from
the transaction that resulted in the loss of control and the fair value of the remaining equity
investment and 2) the carrying amounts of the interest in the former subsidiary’s net assets
immediately before the loss of the control is recognized as investment income for the current period
when control is lost. The amount recognized in other comprehensive income in relation to the
former subsidiary’s equity investment is reclassified as investment income for the current period
when control is lost. The retained interest is subsequently measured according to the rules stipulated
in the ‘Chinese Accounting Standards for Business Enterprises No.2—Long-term equity investment’
or ‘Chinese Accounting Standards for Business Enterprises No.22—Determination and
measurement of financial instruments’.
The Company’s losing control of subsidiaries through multistep transactions of disposing of the
long-term equity investment, need to identify whether every transaction, involving with disposing
of the investment in subsidiary until losing the control, is belonging to package deal. When every
transaction involving with disposing of equity investment in subsidiary until losing control is a
package deal, they will be treated as a single deal of disposing of the investment in subsidiary until
losing control for accounting treatment. But, before the control is lost, the difference between each
receipt of every transaction and the related shared proportion of identified net assets are recognized
as other comprehensive income. The other comprehensive income will be transferred into profit and
loss in the period when losing control. If it is not package deal, every transaction of the
non-package deals is treated according to the applicable accounting standards of ‘partly disposing
of the long-term equity investment without losing control’ (refer to previous paragraphs for detail)
and ‘losing the control to subsidiary due to partly disposing the equity investment or other reasons’
(see the previous paragraph for details).
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7. Standard for cash and cash equivalent
In preparing the statement of cash flows, 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, being readily convertible to a known amount of cash and being
subject to an insignificant risk of changes in value.
8. Transactions of foreign currencies and conversion of financial statements in foreign
currencies
（1）Foreign currency transactions are converted into RMB for recording purpose at the exchange
rate on the day of transaction occurs.
Adjustments are made to foreign currency accounts in accordance with the exchange rate prevailing
on the reporting 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 PPE being acquired and constructed has not yet
reached working condition for its intended use. Conversion differences arising from other accounts
are charged to finance costs。
（2）In statement of financial position, assets and liabilities items are converted into RMB at the
exchange rate prevailing on the consolidated statement of financial position date. Owner’s equity
items (excluding undistributed profit item) are converted into RMB at the exchange rate when the
transaction occurs. In statement of profit or loss and other comprehensive income, 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 statement
of financial position as a separate item.
9. Financial instruments
Recognize a financial asset or financial liability when the company becomes a party of the
financial instrument contract. Financial assets and financial liabilities are measured at fair
value at initial recognition. For financial assets and financial liabilities measured at fair
value through profit or loss, relevant transaction costs are directly included in profit or loss;
for other types of financial assets and financial liabilities, relevant transaction costs are
included in the initially recognized amount.
(1) Effective interest method
It a method of calculating amortized cost and interest income or expenditure of each period
according to the actual interest rate of financial assets or financial liabilities (including a group of
financial assets or financial liabilities). The effective interest rate refers to the interest rate used to
discount the future cash flow of a financial asset or financial liability into the current book value of
the financial asset or financial liability in the expected duration or applicable shorter period.
When calculating the effective interest rate, the company estimates the future cash flow based on all
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contract terms of financial assets or financial liabilities (excluding future credit loss), meanwhile,
All fees, transaction fees, discounts or premiums paid or collected between the parties to a financial
liability contract that are part of the effective interest rate, are also considered
(2) Classification of financial instruments
According to the business model of managing financial assets and the contractual cash flow
characteristics of financial assets, the Company classifies financial assets into: financial assets
measured at amortized cost; financial assets measured at fair value with changes included in other
comprehensive income; financial assets measured at fair value with changes included in current
profit and loss
(3) Recognition and measurement of financial assets
The initial measurement of the financial asset is based on the fair value. For financial asset
measured at fair value and designated its changes into current period profit and loss, the related
trading expense should be recorded in the profit and loss. For the financial asset of other categories,
the related trading expense should be recorded as part of initial cost. For receivables or notes
receivable arising from the sale of products or the provision of services, which do not include or
take into account significant financing components, the company takes the amount of consideration
expected to be entitled to receive as the initial recognition amount.
Financial assets measured at amortized cost
Management of the company aims at the business mode of financial assets measured at amortized
cost is to collect contract cash flow, and the contractual cash flow characteristics of such financial
assets are consistent with the basic lending arrangements, that is, the cash flow generated on a
specific date is only the payment of the principal and the interest based on the outstanding principal
amount. For such financial assets, the company adopts the effective interest rate method and carries
out subsequent measurement according to the amortized cost. The gains or losses arising from
amortization or impairment are included in the current profit and loss.
Financial assets measured at fair value with changes included in other comprehensive income
The company's business model for managing such financial assets is target to receive contract cash
flow and target to sell, and the contractual cash flow characteristics of such financial assets are
consistent with the basic lending arrangements. The company measures these financial assets at fair
value and their changes are included in other comprehensive income, but impairment loss or gain,
exchange gain or loss and interest income calculated according to the effective interest rate method
are included in the current profit and loss.
In addition, the company designates some non tradable equity instrument investments as financial
assets measured at fair value with changes included in other comprehensive income. The company
shall record the relevant dividend income of such financial assets into the current profit and loss,
and the change of fair value into other comprehensive income. When the financial asset is
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derecognized, the accumulated gains or losses previously included in other comprehensive income
will be transferred from other comprehensive income to retained earnings, not included in the
current profit and loss.
Financial assets measured at fair value through profit or loss
The company classifies the above financial assets measured at amortized cost and financial assets
measured at fair value with changes included in other comprehensive income as financial assets
measured at fair value with changes included in current profit and loss. In addition, during initial
recognition, in order to eliminate or significantly reduce accounting mismatches, the company
designated some financial assets as financial assets measured at fair value through current profit and
loss.
For such financial assets, the company adopts fair value for subsequent measurement, and the
changes in fair value are included in the current profit and loss
(4) Classification, recognition and measurement of financial liabilities
Financial liabilities are classified as financial liabilities and other financial liabilities measured at
fair value with changes included in current profit and loss at the time of initial recognition. For
financial liabilities measured at fair value with changes included in current profits and losses,
relevant transaction costs are directly included in current profits and losses, and relevant transaction
costs of other financial liabilities are included in their initial recognition amount
Financial liabilities measured at fair value through profit or loss
Financial liabilities measured at fair value through profit or loss, including transactional financial
liabilities (including derivatives belonging to financial liabilities) and financial liabilities designated
at initial recognition as measured at fair value through profit or loss.
Transactional financial liabilities (including derivatives belonging to financial liabilities) are
subsequently measured at fair value. Except for those related to hedge accounting, changes in fair
value are included in current profits and losses.
Financial liabilities designated to be measured at fair value with changes included in current profits
and losses. The changes in fair value caused by changes in the company's own credit risk are
included in other comprehensive income. When the liabilities are derecognized, the accumulated
changes in fair value caused by changes in its own credit risk included in other comprehensive
income are transferred into retained earnings. Other changes in fair value are included in current
profit and loss. If the accounting mismatch in the profit and loss will be caused or expanded if the
impact of the change in the credit risk of such financial liabilities is handled in the above way, the
company will record all the gains or losses of such financial liabilities (including the impact amount
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of the change in the credit risk of the enterprise itself) into the current profit and loss
Other financial liabilities
Except for the financial liabilities and financial guarantee contracts formed by the transfer of
financial assets that do not meet the conditions for derecognition or continue to be involved in the
transferred financial assets, other financial liabilities are classified as financial liabilities measured
at amortized cost, which are subsequently measured at amortized cost, and the gains or losses
arising from derecognition or amortization are included in the current profits and losses.
(5) Recognition basis and measurement method of financial assets transfer
Financial assets meeting one of the following conditions shall be derecognized, ① The contract
right to receive the cash flow of the financial asset is terminated; ② the financial asset has been
transferred, and almost all the risks and rewards of the ownership of the financial asset have been
transferred to the transferee; ③ the financial asset has been transferred, although the enterprise has
neither transferred nor retained almost all the risks and rewards of the ownership of the financial
asset, but has given up the control over the financial asset.
If the enterprise neither transfers nor retains almost all risks and rewards of the ownership of the
financial assets, and does not give up the control over the financial assets, it shall recognize the
relevant financial assets according to the degree of continuous involvement in the transferred
financial assets, and recognize the relevant liabilities accordingly. The degree of continuous
involvement in the transferred financial assets refers to the risk level faced by the enterprise due to
the change of the value of the financial assets.
If the overall transfer of financial assets meets the conditions for derecognition, the difference
between the book value of the transferred financial assets and the sum of the consideration received
as a result of the transfer and the accumulated change in fair value originally included in other
comprehensive income shall be included in the current profit and loss.
If the partial transfer of financial assets meets the conditions for derecognition, the book value of
the transferred financial assets shall be apportioned according to the relative fair value between the
derecognized part and the non-derecognized part, and the difference between the sum of the
consideration received due to the transfer and the accumulated amount of changes in fair value
originally included in other comprehensive income that should be apportioned to the derecognized
part and the aforesaid book amount apportioned shall be included in the current profit and loss
If the company sells the financial assets with recourse or transfers the financial assets it holds by
endorsement, it is necessary to determine whether almost all the risks and rewards of the ownership
of the financial assets have been transferred. If almost all risks and rewards in the ownership of the
financial asset have been transferred to the transferee, the recognition of the financial asset shall be
terminated; if almost all risks and rewards in the ownership of the financial asset have been retained,
the recognition of the financial asset shall not be terminated; If almost all risks and rewards related
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to the ownership of financial assets have not been transferred or retained, it is necessary to continue
to judge whether the enterprise retains control over the assets and carry out accounting treatment
according to the principles mentioned in the preceding paragraphs.
(6) Derecognition of financial liabilities
Where the current obligation of a financial liability (or part of it) has been discharged, the company
shall derecognize the financial liability (or part of it). If the company (borrower) signs an agreement
with the lender to replace the original financial liabilities by assuming new financial liabilities, and
the contract terms of the new financial liabilities and the original financial liabilities are
substantially different, the original financial liabilities shall be derecognized and a new financial
liability shall be recognized at the same time. If the company makes substantive modification to the
contract terms of the original financial liabilities (or part of them), the recognition of the original
financial liabilities shall be terminated, and a new financial liability shall be recognized in
accordance with the modified terms.
Where a financial liability (or part of it) is derecognized, the company shall record the difference
between its book value and the consideration paid (including non-cash assets transferred out or
liabilities assumed) into the current profit and loss.
(7) Offsetting of financial assets and financial liabilities
When the company has the legal right to offset the recognized amount of financial assets and
financial liabilities, and the legal right is currently enforceable, and the company plans to settle or
realize the financial assets and pay off the financial liabilities at a net amount, the financial assets
and financial liabilities are listed in the balance sheet at a net amount after mutual offset. In addition,
financial assets and financial liabilities shall be listed separately in the balance sheet and shall not
be offset against each other.
(8) Determination method of fair value of financial assets and financial liabilities
Fair value refers to the price that market participants can receive or pay for the transfer of a liability
when selling an asset in an orderly transaction on the measurement date. If there is an active market
for a financial instrument, the company shall determine its fair value with the quoted price in the
active market. Quoted price in active market refers to the price easily obtained from exchanges,
brokers, industry associations, pricing service agencies, etc. on a regular basis, and represents the
price of market transactions actually occurred in fair trading. If there is no active market for
financial instruments, the company adopts valuation technology to determine their fair value.
Valuation techniques include referring to the prices used in recent market transactions by parties
familiar with the situation and willing to trade, referring to the current fair value of other financial
instruments that are essentially the same, discounted cash flow method and option pricing model,
etc. In the process of valuation, the company adopts valuation technology applicable in the current
situation and supported by sufficient data and other information, selects input values consistent with
the characteristics of assets or liabilities considered by market participants in the transactions of
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relevant assets or liabilities, and gives priority to the use of relevant observable input values as
much as possible. When the relevant observable input value cannot be obtained or is not feasible,
the non-observable input value is used.
(9) Equity instruments
Equity instrument refers to the contract that can prove the ownership of the company's residual
equity in the assets after deducting all liabilities. The company issues (including refinancing),
repurchases, sells or cancels equity instruments as changes in equity, and the transaction costs
related to equity transactions are deducted from equity. Changes in fair value of equity instruments
not recognized by the company
Dividends distributed by the company's equity instruments during their existence (including
"interest" generated by the instruments classified as equity instruments) shall be treated as profit
distribution.
(10) Finance Assets Devalue
The financial assets of the company that need to confirm the impairment loss are financial assets
measured at amortized cost, debt instrument investment and lease receivables measured at fair value
with changes included in other comprehensive income, mainly including notes receivable, accounts
receivable, other receivables, debt investment, other debt investment, long-term receivables, etc. In
addition, for contract assets and part of financial guarantee contracts, provision for impairment and
recognition of credit impairment loss are also made in accordance with the accounting policies
described in this part.
Recognition method of impairment provision
Based on the expected credit loss, the company accrues the impairment provision for the above
items according to the applicable measurement method of expected credit loss (general method or
simplified method) and confirms the credit impairment loss.
Credit loss refers to the difference between all contract cash flows receivable by the company
according to the original effective interest rate and the expected collection of all cash flows, that is,
the present value of all cash shortages. Among them, for the purchased or original financial assets
with credit impairment, the company will discount them according to the actual interest rate
adjusted by credit.
The general method of measurement of expected credit loss refers to whether the credit risk of
financial assets (including other applicable items such as contract assets, the same below) has
increased significantly since initial recognition by the company on each balance sheet date. If the
credit risk has increased significantly since the initial recognition, the company will measure the
loss reserves according to the amount equivalent to the expected credit loss in the whole duration. If
the credit risk has not increased significantly since the initial recognition, the company will measure
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the loss reserves according to the amount equivalent to the expected credit loss in the next 12
months. In assessing the expected credit loss, the company considers all reasonable and reasonable
information, including forward-looking information.
For the financial instruments with low credit risk on the balance sheet date, the company assumes
that its credit risk has not increased significantly since the initial recognition, and chooses to
measure the loss reserve according to the expected credit loss within the next 12 months or does not
choose the simplified treatment method, according to whether its credit risk has increased
significantly since the initial recognition, and adopts the future 12 months or the whole duration The
amount of expected credit loss is the basis of loss provision.
Criteria for judging whether credit risk has increased significantly since initial recognition
If the probability of default of a financial asset in the expected duration determined on the balance
sheet date is significantly higher than the probability of default in the expected duration determined
on the initial recognition, it indicates that the credit risk of the financial asset increases significantly.
Except for special circumstances, the company uses the change of default risk in the next 12 months
as a reasonable estimate of the change of default risk in the whole duration to determine whether the
credit risk has increased significantly since the initial recognition.
Portfolio approach to evaluate expected credit risk based on Portfolio
The company evaluates the credit risk of financial assets with significantly different credit risk,
such as receivables from related parties; receivables with disputes with the other party or involving
litigation and arbitration; receivables with obvious signs that the debtor is likely to be unable to
perform the repayment obligation, etc.
In addition to the financial assets that are individually assessed for credit risk, the company
classifies the financial assets into different groups based on the common risk characteristics, and
assesses the credit risk on the basis of the combination.
Accounting treatment method for impairment of financial assets
At the end of the period, the company calculates the expected credit loss of various financial assets.
If the expected credit loss is greater than the book amount of the current impairment provision, the
difference is recognized as the impairment loss; if it is less than the book amount of the current
impairment provision, the difference is recognized as the impairment gain.
The determination method of credit loss of various financial assets
① Notes receivable
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The company measures the loss reserves for notes receivable according to the expected credit loss
amount within the whole duration. Based on the credit risk characteristics of notes receivable, it is
divided into different combinations,
Item Basis for determining combination
Bank acceptance bill The acceptor is a bank with less credit risk
According to the credit risk division of acceptor, it should be
Commercial acceptance bill
the same as the combination division of "accounts receivable"
② Receivables and contractual assets
For receivables and contract assets without significant financing components, the company
measures the loss reserves according to the expected credit loss amount within the whole duration.
For receivables, contract assets and lease receivables with significant financing components, the
company chooses to always measure the loss reserves according to the amount equivalent to the
expected credit loss within the duration
In addition to the receivables and contract assets that are individually assessed for credit risk, they
are classified based on their credit risk characteristics
Item Recognition
The portfolio takes the aging of receivables as the credit risk
Aging group
feature
③ Other receivables
Based on whether the credit risk of other receivables has increased significantly since the initial
recognition, the company adopts the amount equivalent to the expected credit loss within the next
12 months or the whole duration to measure the impairment loss. Apart from other receivables with
individual credit risk assessment, they are divided into different combinations based on their credit
risk characteristics.
Item Recognition
The portfolio takes the aging of receivables as the credit risk
Aging group
feature
In the groups, adopting aging analysis method to withdraw bad debt provision:
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Appropriation proportion of Appropriation proportion of
Aging
trade receivables (%) other receivables (%)
0 - 1 year 2 2
1 - 2 year 10 10
2 - 3 year 50 50
3 - 5 year 80 80
Over 5 years 100 100
10. Inventory
（1）Inventory classification
Inventory is classified to:
raw materials, working in progress, goods ready for sale, goods delivered, commission processing
materials, etc.
（2）Inventory valuation
Inventories are valued at the lower of cost and net realizable value.
Real estate development product costs include land cost, construction costs and other costs.
Borrowing costs meet the capitalization conditions are also included in real estate development
product costs. Non-real estate development product costs include purchase cost, process cost and
other costs.
The raw material purchasing is accounted through actual cost method, while the issue of raw
materials, outside processing materials, work in process and semi-finished product is carried over
on the basis of weighted average method (Diamond mosaic, jade jewelry is used specific
identification method).
（3）Confirmation of net realizable value of inventory and Recording method of provision for
inventory devaluation
At the end of the year, 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
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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
For low cost and short-lived articles, use step-amortization method.
For package materials, use lump-sum amortization method.
11. Held-for-sale assets
⑴ Recognition criteria for held-for-sale assets
The company recognizes non-current assets or asset groups that simultaneously meet the following
requirements as held-for-sale assets. This constituent part can be sold immediately on the basis of
the usual term of selling such part and must be in its current situation.
This component must be immediately available for sale in its current circumstances only on the
basis of the usual terms of sale of such components. The company has made decision on the
disposal of this constituent part, according to the regulations, if approval of the shareholders is
required, it should be obtained approval from the shareholders' meeting or the corresponding
authority. The company has signed an irrevocable transfer agreement with the transferee. The
transfer will be completed within one year.
⑵ Accounting treatments for held-for-sale assets
It should adjust estimated residual value of the fixed asset for held-for-sale assets, the estimated
residual value of the fixed asset reflects the amount of its fair value minus disposal expenses, but it
shall not exceed the original book value of the fixed asset when the company meets the conditions
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for sales, the difference between the original book value and the adjusted estimated residual value
shall be included in the current profit and loss as assets impairment loss. For held-for-sale other
non-current assets, according to the above treatment principles, it includes individual assets and
disposal groups, disposal group is a group of assets that are sold as a whole or disposed all at the
same time in other ways.
⑶ Liabilities in the held-for-sale disposal group
The company lists the liabilities that classified as held-for-sale disposal group. The long-term equity
investment mentioned in this section is about the equity investment of which the Company has
control, common control or significant influences over the investee. For the investments that the
Company has no control, common control or significant influences over the investee, they will be
recorded as available-for-sale or financial instrument assets measured at fair value with its changes
into profit and loss. Refer to Note IV 9” Financial Instruments” for details of its accounting policies
12. Long-term equity investments
The long-term equity investment mentioned in this section is about the equity investment of which
the Company has control, common control or significant influences over the investee. For the
investments that the Company has no control, common control or significant influences over the
investee, they will be recorded as available-for-sale or financial instrument assets measured at fair
value with its changes into profit and loss.
（1）Determination of investment cost
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.
For a business combination not involving enterprise under common control, the combination cost
including the sum of fair value, at the acquisition date, of the assets given, liabilities incurred or
assumed, and equity securities issued by the acquirer. The intermediary expenses incurred by the
acquirer in respect of auditing, legal services, valuation and consultancy services etc. and other
associated administrative expenses attributable to the business combination are recognized in profit
or loss when they are incurred.
The transaction cost for the equity securities or liability securities issued by the acquirer in the
business combination shall be recognized as initial amount of equity security or liability.
The equity investments other than the long-term equity through combination shall be initially
measured by cost. The cost shall be recognized to the difference in the way of acquisition of
long-term equity investment. Theses ways include the cash purchase price the Company actually
paid, the fair value of equity security issued by the Company, value specified in the investment
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contract or agreement, the fair value or carrying value of the asset transferred out in the transaction
of non-monetary asset exchanges, and the fair value of the long-term equity investment. Expenses,
taxes and other necessary expenditures directly attributable to the acquisition of long-term equity
investment are taken into investment cost. For the long-term equity investments that the Company
can have significant influence or common control on the investee, but cannot control the investee,
because of the added investments, the cost of the long-term equity investment should be the sum of
original fair value of the investment and the cost of newly added investment.
（2）Subsequent measurement
Cost method of accounting for long-term equity investments
Under the cost method, a long-term equity investment is measured at initial investment cost. Except
for cash dividends or profits declared but not yet paid that are included in the price or consideration
actually paid upon acquisition of the long-term equity investment, investment income is recognized
in the period in accordance with the attributable share of cash dividends or profit distributions
declared by the investee.
Equity method of accounting for long-term equity investments
Investments in associated enterprises and joint ventures is adopted the equity method; a portion of
investments in associated enterprises is measured at fair value though profit or loss, including
indirect equity investments through risk investment institutions, mutual funds, trust companies or
investment linked insurance companies.
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 the investment, the initial cost of the
long-term equity investment may not be adjusted. If the initial cost of a long-term equity investment
is less than the Company's attributable share of the fair value of the invested entity's identifiable net
assets for the investment, the difference shall be included in the current profits and losses and the
cost of the long-term equity investment shall be adjusted simultaneously.
When measured by adopting equity method, 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 capital reserve.
The investing enterprise shall, on the ground of the fair value of all identifiable assets of the
invested entity when it obtains the investment, recognize the attributable share of the net profits and
losses of the invested entity after it adjusts the net profits of the invested entity. If the accounting
policies adopted by the investees are not accord with that of the Company, should be adjusted
according to the accounting policies of the Company and the financial statement of the investees
during the accounting period and according which to recognize the investment income as well as
other comprehensive income.
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For the transaction happened between the Company and associated enterprises as well as joint
ventures, if the assets launched or sold not form into business, the portion of the unrealized gains
and losses of the internal transaction, which belongs to the Company according to the calculation of
the enjoyed proportion, should recognize the investment gains and losses on the basis. But the
losses of the unrealized internal transaction happened between the Company and the investees
which belongs to the impairment losses of the transferred assets, should not be neutralized.
The assets launched by the Company to the associated enterprises or the joint ventures if could form
into business, the long-term equity investment without control right which acquired by the investors,
should regard the fair value of the launched business as the initial investment cost the newly added
long-term equity investment, and for the difference between the initial investment cost and the book
value of the launched business, should be included into the current gains and losses with full
amount. The assets sold by the Company to the associated enterprises or the joint ventures if could
form into business, the difference between the acquired consideration and the book value of the
business should be included in the current gains and losses with full amount. The assets purchased
by the Company to the associated enterprises or the joint ventures if could form into business,
should be accounting disposed according to the regulations of No. 20 of ASBE—Business
Combination, and should be recognized gains or losses related to the transaction with full amount.
The Company shall recognize the net losses of the invested enterprise until the book value of the
long-term equity investment and other long-term rights and interests which substantially form the
net investment made to the invested entity are reduced to zero. However, if the Company has the
obligation to undertake extra losses, it shall be recognized as the estimated liabilities in accordance
with the estimated duties and then recorded into investment losses at current period. If the invested
entity realizes any net profits later, the Company shall, after the amount of its attributable share of
profits offsets against its attributable share of the un-recognized losses, resume recognizing its
attributable share of profits.
Disposal of long-term equity investment
For disposing of long-term equity investment, the balance between the book value of the disposed
equity and its actual payment gained shall be recorded into current profits and losses. For the
long-term equity investment measured by adopting equity method, if the remained equity after
disposal still adopts the equity method for measurement, the other comprehensive income originally
recorded into owners’ equity should adopt the same basis of the accounting disposal of the relevant
assets or liabilities directly disposed by the investees according to the corresponding proportion.
The owners’ equity recognized owning to the changes of the other owners’ equity except for the net
gains and losses, other comprehensive income and the profits distribution of the investees, should
be transferred into the current gains and losses according to the proportion.
For those the Company lost the control of the investees by disposing part of the equity investment,
the disposed remained equity should change to calculate according to the recognition and
measurement standards of financial instrument, and difference between the fair value and book
value on the date lose the control right should be included in the current gains and losses. For the
other comprehensive income recognized from the original equity investment by adopting the equity
method, should execute the accounting disposal by adopting the same basis of the accounting
disposal of the relevant assets or liabilities directly disposed by the investees when terminate the
equity method for measurement, while for the owners’ equity recognized owning to the changes of
the other owner’s equity except for the net gains and losses, other comprehensive income and the
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profits distribution of the investees, should be transferred into the current investment income with
full amount when terminate adopting the equity method.
For those the Company lost the control of the investees by disposing part of the equity investment
as well as the remained equity after disposal could execute joint control or significant influences on
the investees, should change to measure by equity method when compiling the individual financial
statement and should adjust the measurement of the remained equity to equity method as adopted
since the time acquired; if the remained equity after disposal could not execute joint control or
significant influences on the investees, should change the accounting disposal according to the
relevant regulations of the recognition and measurement standards of financial instrument, and its
difference between the fair value and book value on the date lose the control right should be
included in the current gains and losses.
For the other comprehensive income recognized by adopting equity method for measurement or the
recognition and measurement standards of financial instrument before the Company acquired the
control of the investees, should execute the accounting disposal by adopting the same basis of the
accounting disposal of the relevant assets or liabilities directly disposed by the investees when lose
the control of them, while the changes of the other owners’ equity except for the net gains and
losses, other comprehensive income and the profits distribution among the net assets of the
investees which recognized by adopting the equity method for measurement, should be carried
forward into the current gains and losses according to the proportion. Of which, for the disposed
remained equity which adopted the equity method for measurement, the other comprehensive
income and the other owners’ equity should be carried forward according to the proportion; for the
disposed remained equity which changed to execute the accounting disposal according to the
recognition and measurement standards of financial instrument, the other comprehensive income
and the other owners’ equity should be carried forward in full amount.
（3）Joint control and significant influence
Joint control, refers to the control jointly owned according to the relevant agreement on an
arrangement by the Company and the relevant activities of the arrangement should be decided only
after the participants which share the control right make consensus. This arrangement is associated
enterprise.
Significant influence refers to the power of the Company which could anticipate in the finance and
the operation polices of the investees, but could not control or jointly control the formulation of the
policies with the other parties. The Company judges the significant influence through the following
facts: (1) having representative in the investee’s board or other organ of authority; (2) involving in
the investee’s daily operating; (3) having significant transaction with investee; (4) sending manager
to investee; (5) proving key technology to investee.
（4）Impairment of long-term equity investment
On the balance date, the Company recognizes the impairment loss if the long-term equity
investment book value exceeds the investee’s owner’s equity belonging to the Company, and the
Company proceed impairment test according to No.8 of Accounting Standards for Business
Enterprises—Impairment Loss. Please refer to note IV.19 for detail.
13. Investment properties
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Investment properties refer to properties held to earn rentals or for capital appreciation, or both,
including leased land use right and those held and ready to transfer after value added, and leased
buildings.
The Company uses the cost model to measure existing investment properties. For investment
properties and rental assets measured at the cost model, they will be implemented the same
depreciation policy similar to property, plant and equipment, 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.
14. Property, plant and equipment
（1）Recognition standard of property, plant and equipment
Property, plant and equipment (hereinafter referred as PPE), 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; and
(b) The cost of the PPE can be measured reliably.
（2）Initial measurement of PPE
PPE are recorded at the actual cost on acquisition.
(a) The cost of PPE purchased includes purchase price, related tax, transportation expenses, loading
and uploading expenses, installment expenses and specialist service expenses attributable to the
assets that arise before the assets are completed and put into use.
(b) Where payment for the purchase price of a PPE is deferred beyond normal credit terms, such
that the arrangement is in substance of a financing nature, the cost of the fixed asset shall be
determined based on the present value of the purchase price, The difference between the purchase
price and its present value shall be recognized in profit or loss over the period of credit. The cost of
a self-constructed fixed asset comprises those expenditures necessarily incurred for bringing the
asset to working condition for its intended use.
(c) For PPE formed through obtaining them by the debtor paying for debt in debt restructure,
recognize its recording value as fair value of the PPE, and record the difference between the
carrying amounts of debt restructure and the PPE used for paying debt into current profit or loss.
(d) 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
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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.
(d) Recording value of PPE obtained by absorbing and consolidated by enterprise under identical
control should be recognized as carrying amount of the consolidated party; recording value of PPE
obtained by absorbing and consolidated by enterprise under different control should be recognized
as fair value.
(f) Recording value of financing leasehold should be recognized as fair value of leasing assets and
present value of lowest leasing payment when leasing occurs whichever is lower.
（30）Depreciation method of PPE
Depreciation of PPE is provided for on a straight-line basis, the depreciation rate is recognized in
accordance with category, estimated useful life and estimated residual rate of PPE.
PPE renovations expenses that meet the criteria of capitalization are depreciated on an individual
basis over the interval of two renovations or remaining useful life of the PPE, whichever is shorter
(2-5 years).
For PPE leased through finance lease, if it can reasonably determine that the ownership of the
leased assets will be obtained when the lease period expires, provision for depreciation will be made
in useful life of leased assets; if it can’t reasonably determine that the ownership of the leased assets
will be obtained when the lease period expires, provision for depreciation will be made in the lease
period and useful life of leased assets, whichever is shorter.
PPE renovations expenses that meet the criteria of capitalization are averagely amortized according
to the period between the two renovations, remaining lease period and the useful life of PPE,
whichever is short.
Estimated useful life and annual depreciation rate of PPE by categories are as follows,
Expect service life Expect residual value Annual depreciation rate
Category
(year) rate (%) (%)
Buildings and installations 35 年 5% 2.71%
Machines and equipment 10 年 5% 9.50%
Vehicles 8年 5% 11.88%
Office equipment and others 5年 5% 19.00%
The annual depreciation rate of PPE withdrawing impairment loss is based on the net value
excluding the accumulated impairment loss.
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15. 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 PPE
For the construction in progress, all expenses occurring before they are ready for the use will be the
book values as the PPE. 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.
16. Borrowing costs
（1）Confirmation principle of capitalization of borrowing costs
In case the borrowing costs occurring in the Company may directly be attributable to the
construction and productions of assets complying with the capitalization conditions, they will be
capitalized and accrued to the relevant capital costs; other borrowing costs 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 PPE, 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 costs begin to be capitalized under the following circumstances:
(a) The asset payment has 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 costs 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 costs will also be suspended.
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The capitalization of borrowing costs 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 costs of
these parts will be stopped.
（2）Capitalization period of borrowing costs
The capitalization period means the period from the moment that the borrowing costs start to be
capitalized to the moment that the capitalization is stopped, which does not include the period that
the capitalization of borrowing costs is suspended.
（3）Calculation method about capitalization amount of borrowing costs
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.
17. Intangible assets
（1）Calculation method of 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 intangible assets formed through obtaining them by the debtor paying for debt in debt
restructure, recognize its recording value as fair value of the intangible assets, and record the
difference between the carrying amounts of debt restructure and the intangible 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
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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 intangible assets obtained by absorbing and consolidated by enterprise under
identical control should be recognized as carrying amount of the consolidated party; recording value
of PPE obtained by absorbing and consolidated by enterprise under different control should be
recognized as fair value.
（2）Useful life and amortization of 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 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.
18. Long-term assets impairment
On each end of accounting period, the Company will make judgments to determine whether
there are signs for impairment to the PPE ,construction in progress, definite intangible assets
and other non-current assets. Goodwill, indefinite intangible assets and intangible assets
having not reached the usable condition, should be yearly tested for impairment no matter
whether there are signs for impairment.
If there is possibility of impairment loss, the Company estimate the recoverable amount:
(a) Estimating the recoverable amount based on an individual asset with possibility of
impairment loss;
(b) Estimating the recoverable amount based on an asset group if an individual asset is hard
for impairment test;
(c) Recoverable amount is based on the higher value between the net value of asset’s fair
value less disposal cost and predicted future cash flow.
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The result of impairment test demonstrates that the recoverable amount is less than its
carrying amount, the difference will be recorded as provision for impairment and debited as
impairment loss.
When the impairment loss has been recognized, an asset’s depression amount or
amortization amount should be adjusted accordingly.
The impairment loss of the above assets would not be reversed back once they are recognized
19. Long-term deferred expenses to be amortized
Long-term deferred expenses to be amortized will be averagely amortized in the benefit period,
including:
(1) Prepaid rentals for operating leased PPE will be averagely amortized according to the term
stipulated in the lease contract.
(2) PPE improvement expenses for operating leased, long-term deferred expenses will be averagely
amortized according to the remaining lease period and the useful life of leased assets, whichever is
shorter.
20. Employee benefits
The benefits of employees in the Company include short-term benefits, welfare after demission, demission welfare and other
long-term welfare.
（1）Short-term benefits
The short-term benefits include the employees’ salary, bonus, allowance and compensation,
employee welfare, medical insurance, maternity insurance, employment injury insurance, housing
fund, labor union expense and employee education expense and non-currency welfare etc. The
Company recognizes the actually incurred short-term employee benefits as liability during the
period when the employees’ services are rendered, the expenses are recorded into the current period
profit and loss or related asset costs according to the benefit object.
For the non-currency welfare, it is recognized according to its fair value.
（2）Demission welfare
When the Company cannot unilaterally withdraw the dismissal welfare provided for the plan on the
cancellation of labor relationship or layoff proposal, or recognize the cost or expense involved with
the recombination of dismissal welfare or payment of such dismissal welfare (whichever is earlier),
the employee’s remuneration incurred by dismissal welfare is recognized as the debt and included
in the current profits and losses or related assets cost.
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（3）Welfare after demission
Welfare after demission mainly includes defined contribution plans and defined benefit plan.
Defined contribution plans
Defined contribution plans include basic endowment insurance, unemployment insurance
and annuity. Deposited amounts are charged to relevant asset costs or current profits and
losses during the period in which they are incurred.
Defined benefit plan
Defined benefit plan of the Company is internal early retirement plan. According to
anticipated accumulative welfare unit, the Company makes estimates by unbiased and
consistent actuarial assumption for the demographic variables and financial variables,
measures the obligations produced in defined benefit plans, and determines the vesting
period.
The deficit or surplus of the present value of defined benefit plan less the asset fair value
recognized a net liability or asset of defined benefit plan. The net asset of defined benefit
plan is recognized as the lower between the surplus of the present value of defined benefit
plan and the asset of defined benefit plan.
The liabilities of defined benefit plan include the employee compensation to be paid in
current accounting period and following next 12 months and the liabilities are discounted to
present value according to exchange rate and market return in active market.
The defined benefit plan cost and the interest on net asset or liability of defined benefit plan
are recognized into profit and loss or related asset cost. The recalculated net asset or liability
variation is recorded to other gains, which will not be written back to gain or loss in
successive fiscal periods.
At the end of defined benefit plan, the difference between the present value and settlement price of
defined benefit plan is recorded in gain or loss.
21. Provisions
（1）Recognizing principles
When businesses related to external security, pending litigation or arbitration, product quality
assurance, retrenchment plan, contract of loss, reconstruction obligation, disposing obligation of
PPE and other contingencies satisfy all the following conditions, the Company will recognize them
as liabilities:
(a) The obligation is the present obligation of the Company
(b) The performance of such obligation is likely to lead to an outflow of economic benefits
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(c) The amount of the obligation can be reliably measured.
（2）Measurement methods:
Provisions shall be initially measured according to the best estimated amount required to be paid
when current obligations are fulfilled.
When determining the best estimated amount, it should take full consideration of the risks,
uncertainties and time value of money related to contingencies.
Best estimated amount is handled under the following circumstances:
(a) If the amount required is in a continuous range, and the likelihood of various outcomes within
the scope is same, then the estimated amount is determined according to the median of the range,
which is the average amount of upper and lower caps.
(b) If the amount required isn’t in a continuous range, or there isn‘t such a continuous range but the
likelihood of various outcomes within the scope isn’t same, such as the contingency involves a
single item, then the best estimated amount is determined in accordance with the amount with most
likelihood; if the contingency involves several items, then the best estimated amount is determined
according to various possible outcomes and associated probabilities.
If expenses required to settle all or part of estimated debt are expected to be compensated by a third
party, then the amount of compensation will be separately recognized as an asset upon basically
being identified to be received, and the amount of compensation recognized will not exceed the
book value of projected liabilities.
22. Revenue
⑴Sale 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; the amount of income can be measured reliably; 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.
⑵ Rendering of service
In case on the preparation date of statement of financial position 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
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contracts and agreements that have been received or will be receivable, except that such prices are
not fair. On the statement of financial position 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
costs will be carried forward based on the amount after the estimated total labor cost multiplied by
the completion progress deducts the accumulated labor costs in the past accounting periods.
In case the service transaction results on the preparation date of statement of financial position
cannot be reliably evaluated, they will be determined in the following methods:
(a) In case the labor costs that have occurred can be compensated, the labor costs will be confirmed
based on such labor costs and the same amounts will be settled as the labor costs.
(b) In case the labor costs that have occurred cannot be compensated, such labor costs will be
accrued to the current profit or loss and will not be confirmed as the labor costs.
⑶ Transferring use right
In case the economic benefits related to the transaction will probably flow into the enterprise and
the revenue amounts can be measured reliably, the Company recognizes the revenue amount 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.
（4）Government grants
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 grants are classified to government grants related to assets and government grants
related to income.
Government grants will be recognized upon meeting both of the following two conditions:
(a) The company can meet the conditions attached to government grants
(b) The company can receive government grants.
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:
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(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 recorded into current profit or loss.
⑷ Government grants
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 grants are classified to government grants related to assets and government grants
related to income.
Government grants will be recognized upon meeting both of the following two conditions:
(a) The company can meet the conditions attached to government grants
(b) The company can receive government grants.
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 recorded into current profit or loss.
23. Deferred income tax assets / deferred income tax liabilities
Corporate income tax will be calculated by liability method of the statement of financial position.
The company’s tax base will be determined upon the company obtains the assets or liabilities; on
the statement of financial position date, take the statement of financial position as the basis, and if
the book value of related assets or liabilities are different from the tax bases provided by tax laws, it
will calculate and confirm the deferred income tax assets or deferred income tax liabilities occurred
in accordance with the provisions of tax laws, which effect will be included in current income tax
expense.
The company is subject to the limit of the amount of taxable income likely to be used to offset
temporary difference, thus confirms the deferred income tax asset produced by the deductible
temporary difference.
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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.
24.Leasing
If the terms of the lease will be transferred to the lessee substantially together with all the risks and
rewards related to the ownership of leased assets, then the lease is a finance lease, and other lease is
operating lease.
（1）The Company is a lessor
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 at each period during the lease term, it will use the effective interest
method to confirm the current financing income.
For rent in operating lease, the Company will use the straight-line method to recognize profit or loss
in each period during the lease term. Initial direct costs occurred will be recorded into current profit
or loss.
（2）The Company is a lessee
In finance lease, at the lease beginning date, the Company will take the lower of the fair value of the
leased assets and the present value of minimum lease payment as the entry value of leased assets,
and take the minimum lease payment as the entry value of long-term payables, and their difference
will be as unrecognized finance cost. Initial direct costs are included in the value of leased assets.
For unrecognized finance income each period during the lease term, it will use the effective interest
method to confirm the current financing cost.
The Company uses depreciation policy consistent with its own PPE to make provision for
depreciation of leased assets.
For rent in operating leases, the Company will use the straight-line method to record it into the cost
of relevant assets or current profit or loss in each period during the lease term; and initial direct
costs occurred will be through current profit or loss.
Rent in operating leases will be recorded into the cost of relevant assets or current profit or loss in
each period during the lease term.
25. Changes in major accounting policies and accounting estimates
(1) Changes in important accounting policies
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□ Applicable √ Not applicable
(2) Estimate change in important accounting policies
□ Applicable √ Not applicable
(3) New revenue standards implemented for the first time, relevant items in the financial statements
at the beginning of the year when the new lease standard was first implemented
Balance sheet
Item 2019.12.31 2020.01.01 Adjustments
Current assets
Monetary capital 1,259,899.63 1,259,899.63
Trading financial assets
Accounts receivable 9,124,432.68 9,124,432.68
Advance payment 314,810.13 314,810.13
Other receivables 3,362,628.68 3,362,628.68
Inventory 173,929,882.99 173,929,882.99
Contract assets
Non-current assets maturing
149,998,221.71 149,998,221.71
within one year
Other current assets 25,096,981.77 25,096,981.77
Total current assets 363,086,857.59 363,086,857.59
Non-current assets:
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Long term equity investment 100,600,000.00 100,600,000.00
Investment property 5,868,823.78 5,868,823.78
Fixed assets 31,563,817.93 31,563,817.93
Intangible assets 7,286,961.93 7,286,961.93
Long term deferred
414,857.81 414,857.81
expenses
Deferred tax assets 5,828,910.22 5,828,910.22
Total non-current assets 151,563,371.67 151,563,371.67
Total Assets 514,650,229.26 514,650,229.26
Current liabilities：
Accounts payable 16,088,889.66 16,088,889.66
Advance payment 86,443,115.70 75,405,227.83 -11,037,887.87
Employee compensation
2,895,329.45 2,895,329.45
payable
Tax payable 25,253,599.38 25,253,599.38
Other accounts payable 36,678,743.30 36,678,743.30
Contractual liabilities 9,766,133.49 9,766,133.49
Other current liabilities 1,269,845.51 1,269,845.51
Total Current Liabilities 167,359,677.49 167,359,677.49
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Non-current liabilities
Total Non-current Liabilities
Total liabilities 167,359,677.49 167,359,677.49
Shareholders' equity:
Equity 318,600,000.00 318,600,000.00
Capital reserve 56,306,298.82 56,306,298.82
Surplus reserve 86,036,260.20 86,036,260.20
Undistributed profit -115,844,230.62 -115,844,230.62
Total owner's equity
attributable to parent 345,098,328.40 345,098,328.40
company
Minority interests 2,192,223.37 2,192,223.37
Total equity 347,290,551.77 347,290,551.77
Total liabilities and
514,650,229.26 514,650,229.26
shareholders' equity
(4) Other accounting policy changes
Naught
V. Taxation
Main type of tax and tax rate of the Company
Type of tax Taxable basis Tax rate (%)
VAT Sales 13
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VAT Sales of real estate (After 1 May 2016，apply a simplified 5
method)
Sales of real estate
Business tax 5
(Before 30 April 2016)
Consumption tax Taxable sale revenue 5
Corporate income tax Taxable income 25
a. 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.
b. Since 1 Jan.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%.
VI.Notes to the items of consolidated financial statement
1. Monetary funds
Item Closing balance Opening balance
Cash 82,463.17 279,060.73
Bank deposit 714,598.30 696,501.55
Other monetary funds 284,337.35
Total 797,061.47 1,259,899.63
Of Which: Total amount of money deposited
3,434.58 3,788.05
abroad
No amount is restricted and has potential risks to withdraw because of mortgage, pledge.
2. Accounts receivable
（1）By aging
Age Closing balance
0-1 year
1-2 years
2-3 years 7,760.61
3-4 years
4-5 years 12,607.05
Over 5 years 11,016,607.54
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Age Closing balance
Subtotal 11,036,975.20
Less: provision for bad debts 11,030,573.49
Total 6,401.71
（2）Classified by bad debt provision method
Closing balance
Book balance Bad debt provision
Category
Proportion book value
Carrying amount Carrying amount Proportion (%)
(%)
individually assessed of bad
10,271,319.53 93.06 10,271,319.53 100.00 -
debts
Provision for bad debts by
765,655.67 6.94 759,253.96 99.16 6,401.71
portfolio
Among
aging group 765,655.67 93.06 759,253.95 99.16 6,401.71
Total 11,036,975.20 100.00 11,030,573.49 99.94 6,401.71
(Continued)
Opening balance
Book balance Write-down amount
Category
Proportion Proportion book value
Carrying amount Carrying amount
(%) (%)
individually assessed of bad debts 10,660,893.64 36.30 10,660,893.64 100.00 -
Provision for bad debts by portfolio 18,707,444.23 63.70 9,583,011.55 51.23 9,124,432.68
Among
aging group 18,707,444.23 63.70 9,583,011.55 51.23 9,124,432.68
Total 29,368,337.87 100 20,243,905.19 68.93 9,124,432.68
①Accounts receivable with single provision for bad debts at the end of the period
Closing balance
Accounts receivable by Company
Book balance Write-down amount Proportion (%) Reason
Long term outstanding
Capital Airport 21,713.00 21,713.00 100.00
account, hard to take
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Closing balance
Accounts receivable by Company
Book balance Write-down amount Proportion (%) Reason
back
100.00 Long term outstanding
Ningbo Administration for Industry and
26,354.45 26,354.45 account, hard to take
Commerce
back
100.00 Long term outstanding
Chen Shunqin, Guangzhou 335,904.80 335,904.80 account, hard to take
back
100.00 Long term outstanding
Hong Kong Jinhua Trading Company 4,224,304.63 4,224,304.63 account, hard to take
back
100.00 Long term outstanding
Victoria International(USA) INC 5,632,466.39 5,632,466.39 account, hard to take
back
100.00 Long term outstanding
Shanghai Yishi International Trade Co.,
30,576.26 30,576.26 account, hard to take
Ltd
back
Total 10,271,319.53 10,271,319.53 —— ——
②Accounts receivable by aging balance
Closing balance
Age
Carrying amount Write-down amount Proportion (%)
0-1 year 2.00
1-2 years 10.00
2-3 years 7,760.61 3,880.31 50.00
3-4 years 80.00
4-5 years 12,607.05 10,085.64 80.00
Over 5 years 745,288.01 745,288.01 100.00
Age 765,655.67 759,253.96 ——
（3）Bad debt provision
Change
Type Opening balance Closing balance
Provision Recover Write off
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Change
Type Opening balance Closing balance
Provision Recover Write off
Accounts 9,212,458.69
20,243,905.19 4,843.30 11,030,573.49
receivable
Total 20,243,905.19 11,030,573.49
Note,
Due to reducing a subsidiary of Shanghai Yunpeng Network Technology Co., Ltd. during the
reporting period, the impact of bad debt provision for accounts receivable is 5716.31 yuan for
opening balance.
（4）Accounts receivable actually written off in the current period, No.
（5）it received 17645769.15 yuan of payment from Shanghai Zhaoke Trading Co., Ltd. was
17645769.15 yuan, and the corresponding bad debt provision was 8822884.58 yuan。
（6）Accounts receivable of top five ending balance collected by debtor,
The total amount of the top five accounts receivable collected by the debtor is 10846106.04 yuan,
accounting for 98.27% of the total amount of accounts receivable at the end of the period, and the
total amount of bad debt provision at the end of the period is 10846106.04 yuan。
（7）As of December 31, 2019, The company has no accounts receivable derecognized due to the
transfer of financial and no transferred accounts receivable continue to be involved in the assets and
liabilities formed.
3. Prepayment
（1）Aging analysis
Closing balance Opening balance
Age
Amount Proportion (%) Amount Proportion (%)
0-1 year 236,310.54 100 284,688.81 90.43
1-2 years 17,111.91 5.44
2-3 years 13,009.41 4.13
Over 3 years
Subtotal 314,810.13
Less: provision
4,726.21
for bad debts
Total 231,584.33 100.00 314,810.13 100.00
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（2）Significant prepayment aging over 1 year
Name Closing balance Age Reason
Naught
Total - - -
（3）Top 5 amounts of balances on 31 Dec.2020
Percentage in the Time of
Name Closing balance Reason
total prepayment prepayment
（%） happened
Shenzhen Zhongbao Jewelry Co., Ltd 236,310.54 100 Contract not yet
completed
Total 236,310.54 100 —— ——
（4）Bad debt reserves
Change amount
Item Opening balance Provision Withdrawal or Write off Closing
reversal
Advance
- 4,726.21 4,726.21
payment
Total - 4,726.21 4,726.21
4. Other receivables
Category Closing balance Opening balance
Interestreceivable
Dividendreceivable
Otherreceivables 10,268,731.92 12,553,722.95
Less：baddebtprovision 9,720,843.06 9,191,094.27
Total 547,888.86 3,362,628.68
（I）Other receivables
（1）By aging
Age Closing balance
0-1 year 25,780.27
1-2 years 49,859.75
2-3 years 35,599.17
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Age Closing balance
3-4 years 2,213,231.31
4-5 years 86,522.89
Over 3 years 7,857,738.53
Subtotal 10,268,731.92
Less: provision for bad debts 9,720,843.06
Total 547,888.86
（2）In characters
Item Closing balance Opening balance
Revolving fund 774,664.79 1,501,932.00
Deposit 3,000.00 140,000.00
Suspense payment 189,972.55 602,117.54
Transaction 6,969,486.38 7,978,065.21
Dividend 2,331,608.20 2,331,608.20
Subtotal 10,268,731.92 12,553,722.95
Less: provision for bad debts 9,720,843.06 9,191,094.27
Total 547,888.86 3,362,628.68
（3）Provision for bad debts
1st stage 2nd stage 3rd stage
Expected credit
Expected credit Expected credit loss
Bad debts loss over the life Total
loss in the next over the life (no credit
(credit impairment
12 months impairment)
occurred)
Balance on January 1, 2020 9,191,094.27 9,191,094.27
The balance on January 1, 2020 in the
current period:
—— shift to 2nd stage
—— shift to 3rd stage
—— back to 2nd stage
—— back to 1st stage
Accrual 699,414.33 699,414.33
Reversal
Conversion
Write off
Other change
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
1st stage 2nd stage 3rd stage
Expected credit
Expected credit Expected credit loss
Bad debts loss over the life Total
loss in the next over the life (no credit
(credit impairment
12 months impairment)
occurred)
Balance on December 31, 2020 9,720,843.06 9,720,843.06
（4）Statement
Change
Item Opening balance Closing balance
Provision Recover Write off
Other
9,191,094.27 699,414.33 9,720,843.06
receivables
Total 9,191,094.27 699,414.33 9,720,843.06
Note,
Due to reducing a subsidiary of Shanghai Yunpeng Network Technology Co., Ltd. during the
reporting period, the initial impact of bad debt provision for other receivables is RMB
169,665.54Yuan for opening balance.
（5）Other receivables actually written off in the current period, No
（6）Top 5 amounts of balances on 31 Dec.2020
Percentage in other Write-down
Name Character Closing balance Age
receivables (%) amount
Export tax rebate -VAT Tax 2,331,608.20 Over 5 years 22.71 2,331,608.20
Shenzhen Minglong 15.34
Transaction 1,575,035.30 3-4years 1,260,028.24
Trade Co., Ltd.
Suning Banhe Over 5 years 7.79
advance in
Chemical Fiber Fabric 800,000.00 800,000.00
cash
Simulation Co., Ltd.
Guangzhou Panyu Over 5 years 7.79
Tanzhou Zhenyu
Transaction 800,000.00 800,000.00
Textiles Printing and
Dyeing Co., Ltd.
Revolving Over 5 years 6.82
Guangdong Yuanfeng fund and
Trade Development platform 700,000.00 700,000.00
Co., Ltd operating
funds
Total —— 6,206,643.50 —— 60.44 5,891,636.44
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
5. Inventories
（1）In categories
Categories Closing balance Opening balance
Carrying Write-down Write-down
Book value Carrying amount Book value
amount amount amount
Materials for
Raw material 641,930.57 - 641,930.57
Goods ready for 143,090,724.36 143,090,724.36 173,208,011.06 - 173,208,011.06
l
Goods delivered 79,941.36 - 79,941.36
Total 143,090,724.36 143,090,724.36 173,929,882.99 - 173,929,882.99
（2） No impairment loss needed for inventories in the year ended 31 Dec.2020
（3） No capitalized borrowing cost in the year ended 31 Dec. 2020
（4） Other information: refer to Note XIII
6. Held-for-sale assets
Item Closing balance Opening balance
Shenzhen Shenguorong Finance
149,998,221.71 149,998,221.71
Guarantee Co., Ltd.
Total 149,998,221.71 149,998,221.71
（1）In categories
Closing balance Expected Estimated disposal
Item Fair value
of book value disposal expenses time
Held-for-sale
non-current 149,998,221.71 150,000,000.00 75,000.00 2021
assets
Total 149,998,221.71 150,000,000.00 75,000.00 -
Note,
The company signed a conditional equity transfer agreement with Shenzhen Gaopu Industrial Co.,
Ltd. on November 30, 2018, 30% equity of Shenzhen Guorong Guarantee Co., Ltd. was transferred
to Shenzhen Gaopu Industrial Co., Ltd. at a transaction price of 150 million yuan, In the
supplementary agreement, both parties agree to handle the transfer of 15% equity of Shenzhen
Guorong Financing Guarantee Co., Ltd. from the effective date of this agreement; Shenzhen
Guorong Financing Guarantee Co., Ltd. shall be responsible for the transfer of 15% equity, and
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
both parties shall cooperate in accordance with relevant provisions; The taxes and fees arising from
the above 15% equity transfer shall be borne by both parties in accordance with the "conditional
equity transfer agreement"; Gaopu industry agrees to continue to perform the payment obligation of
the remaining equity transfer funds in accordance with the provisions of the conditional equity
transfer agreement; Shenzhen Guorong Financing Guarantee Co., Ltd. shall be responsible for the
transfer of the remaining 15% equity from the date when Gaopu industry has paid the remaining
equity transfer payment and fulfilled the obligations stipulated in the conditional equity transfer
agreement, and both parties shall cooperate. As of December 31, 2020, the company has received
part of the equity transfer price of 75.22 million yuan in accordance with the provisions of the
agreement. The actual controller undertakes to make up the difference, and the main contents of the
actual controller's commitment are as follows: "if the amount recovered from the future sale of 30%
equity guaranteed by Shenzhen Guorong is less than RMB 150 million, it shall make up with cash
within one month from the date of completion of the matter; If the company has not signed a formal
equity transfer agreement with the counterparties before November 30, 2018, the entity designated
by the actual controller shall sign the corresponding equity transfer agreement with the company,
and the transfer amount of this part of equity shall not be less than RMB 150 million before
December 31, 2018 ".
7. Other Current Asset
Item Closing Balance Opening Balance
Pending certifying input VAT 20,640,114.26 25,096,981.77
Total 20,640,114.26 25,096,981.77
Note: Ministry of Finance of the People's Republic of China has issued (Caikuai [2016] No 22) on 3 December 2016, and
clearly requires that the closing debit balance of “tax payable” under the “VAT payable” and
“Unpaid VAT”, “pending deduct input VAT ”, “pending certifying input VAT” and “VAT credit”
and other details subjects, based on the situation, shall list in the balance sheet of “other current
assets” or “other non-current assets”. The closing credit balance of “tax payable – stay recognition
output VAT” and other subjects, based on the situation, shall list in the balance sheet of “other
current liabilities” or “other non-current liabilities”.
8. Long term investment
Increase or decrease in current period
Investment
Opening Other
Investee company gains and
balance Increase Decrease comprehensive
losses
Investment investment income
recognized in
adjustment
equity method
1.Joint venture
Sub-total - - - - -
2.Associated enterprises
Shenzhen Shenguorong
- -
Finance Guarantee Co., Ltd.
Shenzhen future industry 100,600,000.00 - -
development fund enterprise
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(limited partnership).
Sub-total 100,600,000.00 - -
Total 100,600,000.00 - -
(Continued)
Increase or decrease in current period Closing
balance
on
Investee company Declaration of Closing balance impair
Other change for Provision for
cash dividends or Other ment
equity impairment
profits provisi
on
1.Joint venture
Sub-total - - - - - -
2.Associated
Shenzhen
Shenguorong - - - - - -
Finance Guarantee
Co., Ltd.
Shenzhen future
industry
development fund 100,600,000.00 -
enterprise (limited
partnership).
Sub-total 100,600,000.00 -
Total 100,600,000.00 -
9. Investment property
（1）Information
Item Buildings and Land tenure Total
installations
I Original book value
1.Opening balance 10,654,120.49 2,000,000.00 12,654,120.49
2.Increase
（1）Outsourcing
（ 2 ） Inventory\Fix assets\From
construction in process
（3）Increased from enterprise merger
3. Decrease
（1）Disposal or scrap
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Item Buildings and Land tenure Total
installations
（2）Other 10,654,120.49 2,000,000.00 12,654,120.49
4. Closing balance - - -
II. Accumulated depreciation
1. Opening balance 6,021,964.02 763,332.69 6,785,296.71
2. Increase 294,053.76 39,999.96 334,053.72
（1）Provision or amortization 294,053.76 39,999.96 334,053.72
3. Decrease
（1）Disposal or scrap
（2）Other 6,316,017.78 803,332.65 7,119,350.43
4. Closing balance - - -
III. Impairment provision
1. Opening balance
2. Increase
（1）Withdrawing
3. Decrease
（1）Disposal or scrap
（2）Other
4. Closing balance
IV. Net book value
1.Closing balance - - -
2.Opening balance 4,632,156.47 1,236,667.31 5,868,823.78
Note,
① The depreciation and amortization for the current year was RMB 334,053.84.
② Investment real estate reduction preparations for this period was RMB 0.00.
③ The information of pledged investment property’s net book value in the current period: on 31th
Dec. 2018, with the houses, buildings with book value of RMB 5,868,823.78 (Original book value
RMB 12,654,120.49) to provide mortgage guarantees to Jieyang Rongcheng Branch of Industrial
and Commercial Bank of China Co. Ltd. and Jieyang Branch of Industrial and Commercial Bank of
China Co., Ltd separately with the houses and buildings, details refer to Notes 11, 2 (1)
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
（2）Unfinished property certificate
Naught
（3）The transformation of real estate and the change of measurement mode
The company is rending part of its original plant, transforming the house and land into investment
real estate by cost method from the beginning of the lease.
10. PPE
（1）Information
Buildings and Electronics and
Item Vehicles Total
installations other equipment
I Original book value
Opening balance 64,769,919.47 2,826,266.11 737,449.18 68,333,634.76
Increase 0.00 0.00 0.00 0.00
Purchase 0.00 0.00 0.00 0.00
From construction in process 0.00 0.00 0.00 0.00
Increased from enterprise
merger 0.00 0.00 0.00 0.00
Shareholder investment 0.00 0.00 0.00 0.00
Financing investment 0.00 0.00 0.00 0.00
Other 0.00 0.00 0.00 0.00
Decrease 29,627,285.50 498,200.00 0.00 30,125,485.50
Disposal or scrap 0.00 498,200.00 0.00 498,200.00
Financing lease 0.00 0.00 391,964.91 391,964.91
Other 29,627,285.50 0.00 0.00 29,627,285.50
Closing balance 35,142,633.97 2,328,066.11 345,484.27 37,816,184.35
II. Accumulated depreciation 0.00 0.00 0.00 0.00
Opening balance 34,312,752.61 2,007,813.32 449,250.90 36,769,816.83
Increase 1,703,012.04 186,715.31 21,930.98 1,911,658.33
Withdrawing 1,703,012.04 186,715.31 21,930.98 1,911,658.33
Increased from enterprise
merger 0.00 0.00 0.00 0.00
Other 0.00 0.00 0.00 0.00
Decrease 17,474,504.18 488,133.90 0.00 17,962,638.08
Disposal or scrap 0.00 488,133.90 0.00 488,133.90
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Financing lease 0.00 0.00 145,749.82 145,749.82
Other 17,474,504.18 0.00 0.00 17,474,504.18
Closing balance 18,541,260.47 1,706,394.73 325,432.06 20,573,087.26
III. Impairment provision 0.00 0.00 0.00 0.00
Opening balance 0.00 0.00 0.00 0.00
Increase 0.00 0.00 0.00 0.00
Withdrawing 0.00 0.00 0.00 0.00
Increased from enterprise
merger 0.00 0.00 0.00 0.00
Other 0.00 0.00 0.00 0.00
Decrease 0.00 0.00 0.00 0.00
Disposal or scrap 0.00 0.00 0.00 0.00
Financing lease 0.00 0.00 0.00 0.00
Other 0.00 0.00 0.00 0.00
Closing balance 0.00 0.00 0.00 0.00
IV. Net book value 0.00 0.00 0.00 0.00
Closing balance 16,601,373.50 621,671.38 20,052.21 17,243,097.09
Opening balance 30,457,166.86 818,452.79 288,198.28 31,563,817.93
Note,
①The depreciation for the current year was RMB 1,911,658.33 yuan.
②No constructions in progress transferred to PPE during the period.
③The information of PPE for mortgage guarantee in the current period: on 31th Dec. 2020, with
the houses, buildings with book value of RMB 12,152,781.32 （ original book value RMB
29,627,285.50）to provide mortgage guarantees to Jieyang Rongcheng Branch and Jieyang Branch
of Industrial and Commercial Bank of China Limited, details refer to note XI.
（2）List of temporarily idle PPE
Original book Accumulated Impairment
Item Net book value Note
value depreciation provision
Buildings and 35,142,633.97 18,541,260.47 - 16,601,373.50 -
installations
Total 35,142,633.97 18,541,260.47 - 16,601,373.50 -
（3）No PPE from financial leasing
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（4）No PPE from operation leasing
（5）No PPE failed to accomplish certification of property
11. Intangible assets
（1）Information
Right to the Use of
Item Computer Software Total
State-owned Land
I Original book value
1. Opening balance 11,863,200.00 373,115.00 12,236,315.00
2. Increase
(1) Purchase
(2) Internal R&D
(3) Increased from enterprise merger
(4) Shareholder investment
(5) Other
3. Decrease
(1) Disposal
(2) Other 11,863,200.00 11,863,200.00
4. Closing balance - 373,115.00 373,115.00
II. Accumulated amortization
1.Opening balance 4,576,238.07 373,115.00 4,949,353.07
2.Increase 237,263.88 237,263.88
(1) Withdrawing 237,263.88 237,263.88
(2) Increased from enterprise merger
(3) Other
3. Decrease
(1) Disposal
(2) Other 4,813,501.95 4,813,501.95
4. Closing balance - 373,115.00 373,115.00
III. Impairment provision
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
1.Opening balance
2. Increase
(1) Withdrawing
(2) Increased from enterprise merger
(3) Other
3. Decrease
(1) Disposal
(2) Other
4. Closing balance
IV. Net book value
1. Closing balance - - -
2.Opening balance 7,286,961.93 - 7,286,961.93
Note,
①The amortization for current year was RMB 237,263.88
②The information of intangible assets for mortgage guarantee in the current period: on 31th Dec.
2020, with the book value was RMB 7,286,961.93（original book value RMB 11,863,200.00）to
provide mortgage guarantees to Jieyang Rongcheng Branch and Jieyang Branch of Industrial and
Commercial Bank of China Limited, details refer to note XI 2 (1)
（2）No Right to the Use of State-owned Land failed to accomplish certification
12. Long-term deferred expenses to be amortized
Other
Opening Amortizati Closing
Item Increase Decrease reason for
balance on balance
decrease
Decoration 企业合并减少
414,857.81 414,857.81 -
cost -
Total 414,857.81 414,857.81 - -
Note,
The beginning balance of long-term deferred expenses is the beginning balance of previous year of
a subsidiary Shanghai Yunpeng Network Technology Co., Ltd.. The equity of the company has
been transferred to Li Xiaoxia in 2020, so the closing balance is 0.
13. Deferred tax assets/deferred tax liabilities
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
（1）Deferred tax assets without off-set
Item Closing balance Opening balance
Deductible Deductible
Deferred tax Deferred tax
temporary temporary
assets assets
differences differences
Assets impairment
14,945,390.04 3,736,347.51 23,315,640.88 5,828,910.22
provision
Total 14,945,390.04 3,736,347.51 23,315,640.88 5,828,910.22
（2）Unrecognized deferred tax assets:
Item Closing balance Opening balance
Assets impairment provision 48,760,590.71
Deductible losses 19,708,328.62 12,646,598.71
Total 68,468,919.33 12,646,598.71
（3）Unrecognized deductible losses of deferred tax assets will be expire at the end of following
years
Year Closing balance Opening balance Note
2020 2,439,938.30 -
2021
2022 5,418,164.79 5,418,164.79
2023 3,325,282.30 3,325,282.30 -
2024 1,463,213.32 1,463,213.32
2025 9,501,668.21
Total 19,708,328.62 12,646,598.71 -
14. Other non-current assets
Item Closing balance Note
Other non-current assets - Fixed Assets 12,152,781.32 Seal up by bank
Other non-current assets - Intangible Assets 7,049,698.05 Seal up by bank
Other non-current assets- Investment real estate 5,534,770.06 Seal up by bank
Total 24,737,249.43 ——
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
15. Accounts payable
（1）Presentation
Item Closing balance Opening balance
Payments for goods 664,540.30 16,088,889.66
Rental
Total 664,540.30 16,088,889.66
（2）Significant trade payables aging over 1year
Item Closing balance Unclosed Reason
Shenzhen Dailu New Material Co., Ltd 533,075.00 Unsettled
Total 533,075.00 ——
16. Advance payment
Item Closing balance Opening balance
Payments for goods 11,037,887.87
Advance payment for equity transfer 75,220,000.00 75,220,000.00
unearned rent 192,636.58 185,227.83
Total 75,412,636.58 86,443,115.70
（1）Significant advance payment aging over 1 year
Name Amount Charter Unclosed reason
Advance payment for equity
Shenzhen Gaopu Industrial Co., Ltd 75,220,000.00 Unsettled
transfer
Total 75,220,000.00 —— ——
17. Contract liabilities
Item Closing balance Opening balance
payment for goods 269,873.80
Total 269,873.80
18. Accrued payroll
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
（1）In classification
Item Opening Increase Decrease Closing Item
Short-term remuneration 2,886,268.40 2,755,862.13 3,367,976.40 81,390.46 2,192,763.67
Post-employment benefit-defined 9,061.05
9,061.05 920.86 920.86 0.00
contribution plans
Termination benefits 0.00
Other benefits due within one year 0.00
Total 2,895,329.45 2,756,782.99 3,368,897.26 90,451.51 2,192,763.67
（2）Short-term remuneration
Opening Consolidated Closing
Item Increase Decrease decrease in the
balance balance
current period
(1) Salary, bonus, allowance, 2,877,703.99 2,750,604.63 3,362,718.90 72,826.05 2,192,763.67
(2) Employee welfare - 0.00 0.00 0.0 0.00
(3) Social insurance 3,812.41 3,607.50 3,607.50 3,812.41 0.00
Including: ① Medical insurance 3,326.24 3,433.58 3,433.58 3,326.24 0.00
② Work-related injury 150.65 4.64 4.64 150.65 0.00
③Maternity insurance 335.52 169.28 169.28 335.52 0.00
(4) Housing welfare fund 4,752.00 1,650.00 1,650.00 4,752.00 0.00
(5) Union fund and employee 0.00 0.00 0.00 0.0 0.00
(6) Short-term absence with 0.00 0.00 0.00 0.0 0.00
(7) Short-term profit sharing plan 0.00 0.00 0.00 0.0 0.00
(8) Other 0.00 0.00 0.00 0.0 0.00
Total 2,886,268.40 2,755,862.13 3,367,976.40 81,390.46 2,192,763.67
（3）Defined contribution plans
Consolidated decrease
Opening Closing
Item Increase Decrease in the current period
balance balance
Basic endowment 8,844.29 883.90 883.90 8,844.29 -
Unemployment 216.76 36.96 36.96 216.76 -
Total 9,061.05 920.86 920.86 9,061.05 -
19. Current tax liabilities
Categories Closing balance Opening balance
130
广东舜喆（集团）股份有限公司 2020 年年度报告全文
VAT 710,623.42 571,522.91
Business tax 781,313.74 781,313.74
Corporate income tax 18,987,765.83 18,406,766.96
Land appreciation tax 3,709,620.63 2,888,704.72
Property tax 923,220.00 803,160.00
Land use tax 1,863,153.05 1,802,131.05
Total 26,975,696.67 25,253,599.38
Note,
The final balance of enterprise income tax is mostly caused by the historical policies of regional tax
authorities
20. Other payables
Category Closing balance Opening balance
Interest payables
Dividend payables
Other payables 10,350,618.29 36,678,743.30
Total 10,350,618.29 36,678,743.30
i. Other payables
（1）In characters
Item Closing balance Opening balance
Transaction 7,719,111.21 36,287,128.00
Payment on behalf 2,246,623.08 -
Rental deposit 380,000.00 380,000.00
Other 4,884.00 11,615.30
Total 10,350,618.29 36,678,743.30
21. Other current liabilities
Item Closing balance Opening balance
Output tax to be transferred
35,083.59
Total 35,083.59
22. Estimated liabilities
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Item Closing balance Opening balance
Estimated guarantee loss 48,760,590.71
Total 48,760,590.71
23. Share capital
Item Increase/decrease (+/-)
Opening Closing
balance Newly Bonus Capitalization balance
Other Subtotal
Issued issued of surplus
shares
Total shares 318,600,000.00 - - - - - 318,600,000.00
Note: details refer to note I Company Profile
24. Capital reserve
Item Opening balance Increase Decrease Closing balance
1. Capital premium 56,132,520.60 - - 56,132,520.60
Including: Capital
56,132,520.60 - - 56,132,520.60
contributed by investors
2. Other 173,778.22 - - 173,778.22
Total 56,306,298.82 - - 56,306,298.82
25. Surplus reserve
Item Opening Increase Decrease Closing balance
Statutory surplus 49,036,260.20 - - 49,036,260.20
Discretionary 37,000,000.00 - - 37,000,000.00
reservel fund
Enterprise development
fund
Total 86,036,260.20 - - 86,036,260.20
26. Retained earnings
Amount for the current Amount for the
Item Proportion
period prior period
Retained earnings as to 31 Dec.2019 without adjustment -115,844,230.62 -117,840,473.36 -
Total adjustment to Retained earnings as to 31 Dec.2020
(add + less-)
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Adjusted retained earnings as to 31 Dec.2020 1,373,650.01
Add: Profit attributable to owners of the company -114,470,580.61 -117,840,473.36 -
Less: Appropriation to statutory surplus reserve -52,388,872.87 1,996,242.74 -
Appropriation to discretionary surplus reserve
Appropriation to reserve fund
Appropriation to Enterprise development fund
Appropriation to welfare fund for staff and workers
Appropriation to risk reserve
Retained earnings as to 31 Dec.2019 without
adjustment
Common Stock dividends payable
Common stock dividends transferred to capital
stock
Preferred stock dividend
Other distribution of shareholders
Profit capitalised on return of investments
Other distribution of profits
Add: Earned surplus to make up for losses
Other internal relations of owner's equity
Retained earnings as to 31 Dec.2020
Retained earnings as to 31 Dec.2020 without adjustment -166,859,453.48 -115,844,230.62 -
Total adjustment to Retained earnings as to 31
Dec.2018 (add +, less-)
27. Revenue and cost of sales
（1）Classification of revenue and cost of sales
Amount for the current period Amount for the prior period
Item
Revenue Cost of sales Revenue Cost of sales
Principal operating 10,517,813.69 7,442,990.72 18,295,354.68 14,111,942.62
activities
Other activities 1,576,112.56 334,053.72 770,077.99 204,840.45
Total 12,093,926.25 7,777,044.44 19,065,432.67 14,316,783.07
（2）Revenue from Principal operating activities (classified by industries)
行业名称 Amount for the current period Amount for the prior period
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Revenue Cost of sales Revenue Cost of sales
Gold and jewelry 10,517,813.69 7,442,990.72 15,324,468.13 12,021,716.87
E-commerce
2,970,886.55 2,090,225.75
Clothing sales
Total 10,517,813.69 7,442,990.72 18,295,354.68 14,111,942.62
Off-set internal
transactions
Total 10,517,813.69 7,442,990.72 18,295,354.68 14,111,942.62
（3）Revenue from principal operating activities (by region)
Amount for the current period Amount for the prior period
Region
Revenue Cost of sales Revenue Cost of sales
Shenzhen Gold and jewelry 10,517,813.69 7,442,990.72 15,324,468.13 12,021,716.87
Clothing sales 2,970,886.55 2,090,225.75
E-commerce Clothing sales 10,517,813.69 7,442,990.72 18,295,354.68 14,111,942.62
Subtotal - - - -
Off-set internal transactions 10,517,813.69 7,442,990.72 18,295,354.68 14,111,942.62
（4）The total sales to Top 5 customers of the Company amounted to RMB 8,337,145.65, accounting for
43.72% of total revenue of the Company this year.
Percent in total revenue of
Name Revenue
the Company (%)
NO.1 2,708,935.40 22.40
NO.2 2,251,042.04 18.61
NO.3 2,032,639.38 16.81
NO.4 957,561.95 7.92
NO.5 853,057.52 7.05
Total 8,803,236.29 72.79
28. Business tax and surcharges
Item Amount for the current period Amount for the prior period
Consumption tax 3,940.28 27,560.14
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Education expenses and surcharges 3,940.27 3,793.77
Urban maintenance and 120,060.00 3,684.98
Land Use tax 5,227.87 180,090.00
Stamp tax 820,915.91 11,431.72
Property tax 631,782.40
Total 954,084.33 858,343.01
29. Sale expenses
Amount for the current period
Item Amount for the prior period
current period
Remuneration 60,000.00 43,409.85
Rental - 127,084.14
Software expense - 190,590.55
Service expense 826.59 -
Social Insurance 3,000.00 65,988.85
office expense 1210.00 -
Purchase brokerage 19,692.16 23,154.88
Depreciation amount 244,617.00 -
Packaging - 46,473.01
Travel expense - 4,530.00
Business Propagandize Fee - 53,672.48
Other expense 329,345.75 554,903.76
30. Administration expense
Item Amount for the current period Amount for the prior period
Remuneration 2,691,196.31 3,029,631.39
Depreciation amount 1,877,122.27 2,340,971.31
Rental expense 517,770.08 648,351.02
Auditing expense 398,790.20 408,165.00
Fare 153,641.61 213,487.73
Travel expenses 35,990.06 125,699.20
Water and electricity 243,769.05 177,288.88
Board membership dues 311,667.00 395,000.00
Office expense 83,537.72 95,534.93
Entertainment expense 56,464.12 52,291.67
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
welfare benefits 166,230.07 259,409.47
Social Insurance 30,568.23 290,958.74
Assessment expanse 790,158.00 980,100.00
Amortization of intangible assets 237,263.88 237,263.88
Other 146,382.13 441,688.89
Total 7,740,550.73 9,695,842.11
31. Finance costs
Item Amount for the current period Amount for the prior period
Interest expenses 89,481.46 -
Less: Interest incomes 325.58 1,173.75
Exchange losses 396,289.41 279,624.04
Commission charges and other 8,827.42 13,133.42
Total 494,272.71 291,583.71
32. Income from investment
Amount for the current Amount for the prior
Item
period period
Long term equity investment income accounted by
equity method
Investment income from disposal of trading
financial assets
Investment income from disposal of long term -3,638,073.86 77,525.28
equity investment
Others
Total -3,638,073.86 77,525.28
33. Credit impairment loss
Item 2020 2019
Bad debt losses 8,503,474.85 -7,427,856.06
Total 8,503,474.85 -7,427,856.06
34. Income from disposal of assets
Amount for the Amount for the prior
Item
current period period
136
广东舜喆（集团）股份有限公司 2020 年年度报告全文
Amount for the Amount for the prior
Item
current period period
Among：Disposal of fixed assets -17,065.34 953,732.29
合 计 -17,065.34 953,732.29
35. Non-operating income
Amount included in
Amount for the current Amount for the prior
Item current non-recurring
period period profit and loss
Gains from debt restructuring
Gains from disposal of non- current
assets
Accepting donations
Government grants
Others 42,448.08 12,967,905.08 42,448.08
Total 42,448.08 12,967,905.08 42,448.08
Note,
Other items in the amount incurred in the current period are mainly income from debt cancellation.
36. Non-operating expense
Amount included in
Amount for the current Amount for the prior
Item current non-recurring
period period profit and loss
Gains on debt restructuring
Gains on Non-monetary transactions
Payment of fine for overdue payment
Others 48,760,933.45 3,882.49 48,760,933.45
Total 48,760,933.45 3,882.49 48,760,933.45
37. Income tax expense
（1）Details
Item Amount for the current Amount for the prior
Current tax expense calculated according to tax 579,553.67 -
laws and relevant requirements
Deferred income tax expense 2,046,239.56 -1,472,964.08
Total 2,625,793.23 -1,472,964.08
137
广东舜喆（集团）股份有限公司 2020 年年度报告全文
（2）The process of calculating the income tax based on accounting profit,
Item Amount for the current Amount for the prior
Consolidated profit this year -49,071,521.43 -84,598.89
Income tax calculated at legal or applicable tax rate -12,267,880.36 -21,149.72
Impact of various tax rates applicable to subsidiaries
Adjustment of impact on the income tax in the
previous period
Profits and losses of joint ventures or associated
enterprises calculated by equity method
Impact of non-taxable income
Impact of non-deductible cost, expense and loss 130,403.05 22,248.04
Impact of tax rate change on the deferred income tax
balance at the beginning of the year.
Impact of the deductible temporary differences or
deductible loss of unconfirmed deferred tax assets of
this year
Impact of deductible temporary difference or
deductible losses of deferred income tax assets 14,763,270.54 1,463,213.32
derecognized in Reporting Period.
Tax effect of R&D expenses deducted
Other -2,937,275.72
Income taxes 2,625,793.23 -1,472,964.08
Note: Because Hongkong Tian Rui company is an overseas company, it doesn't need to pay
corporate income tax. Therefore, “other” was the calculation adjustment number for the income tax
expense of Hongkong Tian Rui company.
36. Note to statement of cash flows
（1）Other cash received from operating activities
Item Amount for the Amount for the prior
i d i d
Proceeds from other corporations 1,177,639.36 3,419,808.62
Other proceeds from operating activities 278,172.71 2,042,351.21
Total 1,455,812.07 5,462,159.83
（2）Other cash payment from operating activities
Item Amount for the current Account for the prior
period period
Payments to other corporations 630,069.36 7,984,940.87
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Payments to auditor or other services 1,280,000.00
id
Payments to rent 355,288.08 648,351.02
Other payments in operating activities 13,119,501.50 14,871,455.05
Total 15,384,858.94 23,504,746.94
37. Supplementary information for statement of cash flows
（1）Supplementary information on cash flow statement
Amount for the Account for the
Item
current period prior period
1.Reconciliation of profit to cash flows from operating activities:
Profit for the year -51,697,314,.66 1,388,365.19
Add: Impairment loss 585,773.73 7,330,311.47
Depreciations of tangible non-current assets 2,015,508.91 2,528,967.47
Amortizations of intangible assets 277,263.84 277,263.84
Amortizations of long term deferred expenses 131,411.52
Loss in disposal of property, plant and equipment, intangible assets, 17,065.34 -953,732.29
and other non-current assets. (“-” for gains)
Loss in scrapping property, plant and equipment. (“-” for gains)
Loss in changes in fair value of related items (“-” for gains)
Finance costs (“-” for gains)
Loss in investing (“-” for gains) 3,638,073.86 -77,525.28
Decreases in deferred income tax assets (“-” for increase) 2,062,696.05 -1,832,723.29
Increases in deferred income tax liabilities (“-” for decrease)
Decreases in inventories (“-” for increase) 30,759,217.27 -15,014,648.67
Decreases in operating receivables (“-” for increase) 21,014,884.77 164,176,589.61
Increases in operating payables (“-” for decrease) 6,980,965.95 -152,398,202.56
Other 680.64 -79.78
Net cash flows generated by operating activities 15,654,815.70 5,555,997.23
2. Significant investing and financing activities without cash flows:
Liabilities transferring to capital
Convertible bond matured in 12 months
Property, plant and equipment acquired in a Finance lease
3.Net increase in cash and cash equivalents:
Closing balance of cash 797,061.47 1,259,899.63
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Less: Opening balance of cash 1,259,899.63 1,613,340.23
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -462,838.16 -353,440.60
（2）The net cash received for disposal of subsidiaries in the current period is 1361926.14 yuan
（3）The composition of cash and cash equivalents
Amount for the current Account for the prior
Item
period period
I. Cash 797,061.47 1,259,899.63
Including: cash on hand 82,463.17 279,060.73
Bank deposit on demand 714,598.30 696,501.55
Other deposits 284,337.35
II. Cash equivalents
Including: Bond matured in less than 3 months
III. Closing balance of cash and cash equivalents
Including: Cash and cash equivalents under
I. Cash
Including: cash on hand 797,061.47 1,259,899.63
Bank deposit on demand
38. Assets with limited ownership or use right
Item Closing balance Limited reasons
Other non-current assets - Fixed Assets 12,152,781.32 Seal up by bank
Other non-current assets - Intangible Assets 7,049,698.05 Seal up by bank
Other non-current assets investment real estate 5,534,770.06 Seal up by bank
Total 24,737,249.43 ——
39. The assets with the ownership or use right restricted
（1）Details
Closing balance in Closing balance in
Item Exchange rate
foreign currency RMB
Monetary fund
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Including: USD 84.28 6.5249 549.91
EUR
HKD 3,427.44 0.84164 2,884.67
Trade receivables
Including: USD 966,279.26 6.5249 6,304,875.54
EUR
HKD
Other receivables
Including: USD 20,000.00 6.5249 130,498.00
EUR
HKD 56,780.00 0.84164 47,788.32
VII. Changes of merger scope
1. Business merger not under same control
No
2. Disposal of subsidiaries
Shenzhen magake blue arrow Co., Ltd, a subsidiary disposed in this period
VIII. Equities in other entities
1. Equity in subsidiary
（1）The structure of the enterprise group
Main Registra Proportion of
Name of the
operating tion Business Nature shareholding (%) Method of acquiring
subsidiary
place place Directly Indirectly
Shenzhen Rieys
Shenz
Industrial Co. Shenzhen Trading 90.00 - Establishing
Ltd. hen
Tianrui (HK) Hong Hong Trading 100.00 - Merger
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Trading Co., Ltd. Kong Kong
Shenzhen
Chinese Gold Shenz Sales of gold
Nobility Jewelry Shenzhen 100.00 - Merger
hen and jewelry
Co., Ltd.
（2）Significant not wholly owned subsidiary
Shareholding Voting The profits Declaring Balance of
proportion right of and losses dividends minority
Name of minority minority arbitrate to distribute to shareholder Note
shareholder shareholder the minority minority at losing
(%) (%) shareholders shareholder period
Shenzhen Rieys 10.00 10.00 691,558.21 - 2,883,781.58 -
Industrial Co. Ltd.
(Continued)
Shenzhen Chinese Gold Nobility Jewelry Co., Ltd
Item
Opening Balance Closing balance
Current assets 19,106,962.31 28,690,342.84
Non-current assets 3,643,835.25 1,459,894.67
Total Assets 22,750,797.56 30,150,237.51
Current liabilities 828,563.90 1,312,421.73
Non-current liabilities
Total liabilities 828,563.90 1,312,421.73
Operating revenue - -
Net profits -6,078,775.51 6,915,582.12
Total comprehensive income -6,078,775.51 6,915,582.12
Cash flow of operating
-11,502.96 -23,976.33
activities
2. Transactions with changes in the share of owner's equity in subsidiaries which still controlling in
subsidiaries
（1）Description of changes
Naught
（2）Impact of transactions on minority shareholders' equity and owners' equity attributable to the
142
广东舜喆（集团）股份有限公司 2020 年年度报告全文
parent company
Naught
3. Equity in joint arrangement or joint venture
（1）Important joint ventures or associated enterprises
Shareholding ratio
Name Location Registration Type （%） treatment method
Direct Indirect
Shenzhen future
Monetary
industry
and Equity
development fund Shenzhen Shenzhen 21.82% 权益法
financial method
enterprise (limited
services
partnership)
（2）Main financial information
Closing balance Opening balance
Shenzhen future industry
Item Shenzhen future industry
development fund
development fund enterprise
enterprise (limited
(limited partnership)
partnership)
Current assets 6,512.08 6,512.08
Non current assets 120,000,000.00 120,000,000.00
Total Assets 120,006,512.08 120,006,512.08
current liabilities 8,570.90 7,570.90
Non current liabilities
Total liabilities 8,570.90 7,570.90
Share of net assets calculated by
100,600,000.00 100,600,000.00
shareholding ratio
Adjustment items
Goodwill
-Unrealized profit of internal transaction
--Other
Book value of equity investment in
100,600,000.00 100,600,000.00
associated enterprises
Fair value of equity investment in
associated enterprises with public offer
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
business income
Net profit -1,129.02 -1,058.82
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income -1,129.02 -1,058.82
Dividends from associates received in
the year
Accounting treatment method for equity investment of the above joint venture: equity method
IX. Fair value
1. Financial instruments not measured at fair value
Financial assets and liabilities not measured at fair value mainly include: accounts receivable and
accounts payable. There is minor different between the above book value of financial assets and
liabilities not measured at fair value and its fair value.
2. Financial instruments measured at fair value
The Company listed the book value of financial assets instruments measured at fair value on 31 Dec.
2018. according to three levels of fair value, when the overall fair value classified in three levels
were in line with the first level of three levels of each significant input value used in the calculation
of fair value. The definitions of three levels were as follows:
The first level, the unadjusted offer of same assets or liabilities in active market on calculation date;
The second level, the directly or indirectly observable input value of related assets or liabilities
excepting the input value of first level;
1) The second level input value including: Offer of similar assets or liabilities in active market; 2)
The second level input value including: Offer of similar assets or liabilities in non-active market; 3)
Other observable input value excepting offer, including the observable interest rate in interval
period of common offer, profit rate curve, implied volatility and credit spread.
The third level was the unobservable input value of related assets or liabilities.
3. Closing fair value measurement
（1）Parent company of the Company
Item Level 1 Level 2 Level 3 Total
Subtotal of available for
sale financial assets
Debt instruments
investment
144
广东舜喆（集团）股份有限公司 2020 年年度报告全文
Item Level 1 Level 2 Level 3 Total
Equity
instruments
investment
Derivative
financial assets
Other
Total assets - - - -
X. Related party
1. Parent company of the Company
Name of parent company Registered place Registere Business nature
d capital
1805 Haiwang Xingchen
Shenzhen Shenghengchang headquarters building,
9800 Trading
Huifu Industrial Co., Ltd. Yuehai street, Nanshan
District, Shenzhen
(Continued)
Proportion of voting
Name Shareholding ratio % Final controller
rights %
Shenzhen Shenghengchang Huifu 36.99% 36.99% Chen Hongcheng
d i lC d
Note: the registered capital of the Company’ parent company was not changed in the current
year.
2. Subsidiaries of the Company
Details refer to note VIII 1.
3. No equities in joint ventures or associated enterprises
4. Other related parties of the Company
Name Relationship
Shenzhen Risheng Chuangyuan Asset Holding 10.68% shares of the Company, affiliate controlled under
Management Co., Ltd. Hongcheng Chen’s family
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Shenzhen Lianhua Huiren Industrial Co., Holding 3.81% shares of the Company, affiliate controlled under
Ltd. Hongcheng Chen’s family
Xuewen Chen Direct relatives of Hongcheng Chen
Lihong Ding Vice-Board chairman of the Company, relative of Hongcheng
Chen
Shizhen Yu One of the shareholders of the subsidiary
key manager of the company, one of the shareholders of a
Liqun Yu
subsidiary.
Wuxi Hengye science and Technology Co., key management of company control company
Ltd.
Shenzhen Chinese Gold Nobility Jewelry One of the shareholder of a subsidiary
Co., Ltd
5. Parties transactions
（1）Purchasing goods, providing and accepting services
Transactions among the Company and its subsidiaries in merger scope and contributed to the consolidated
financial reports were offset.
①Information on acquisition of goods and reception of labor service
Naught.
②Sale of commodities and provide services
（2）Contracting and trusteeship among related parties
Naught.
（3）Leasing among related parties
Naught
（4）Guarantees among related parties
Naught
（5）Inter-bank borrowing among related parties
Naught
（6）Asset transfer and debt restructuring among related parties
Naught
（7）The remuneration of key management personnel
146
广东舜喆（集团）股份有限公司 2020 年年度报告全文
Naught
（8）Pay for key management personnel
The number of key management personnel was 8 in 2020, and 8 in 2019
Item Amount for the current Amount for the prior
Remuneration of key 970,667.00 1,109,876.00
Total l
970,667.00 1,109,876.00
6. Amounts due from / to related parties
（1）Amounts due from related parties
Naught.
（2）Amounts due to related parties
Amount for the current Amount for the prior
Item Related party period period
Other payable Shizhen Yu 420,000.00 420,000.00
Xuewen Chen 219,351.58 -
Shenzhen Chinese 1,420,160.00 12,286,220.00
Gold Nobility
7. Commitments of related parties
Naught.
XI. Commitments and contingencies
1.Important commitments
Till 31th Dec. 2019, no events after the reporting period need to be disclosed excepted the above
2. Contingencies
（1）Contingent liabilities formed by providing debt guarantee for other units.
① Due to the dispute over the loan contract between industrial and Commercial Bank of China
Jieyang Rongcheng sub branch (hereinafter referred to as "ICBC Jieyang Rongcheng sub branch")
and huafengqiang, etc, Industrial and Commercial Bank Jieyang Rongcheng sub branch applied to
Guangdong Jieyang Rongcheng District People's Court (hereinafter referred to as "Jieyang
147
广东舜喆（集团）股份有限公司 2020 年年度报告全文
Rongcheng court") to seal up the company, which is located in shenxiangou, Junbu Town, Puning
[Certificate Number: real estate ownership certificate, Guangdong real estate ownership certificate,
puzhanguzi, no.079-087; state owned land use certificate, pufuguoyong, 2001, 00420, 00421,
pufuguoyong, 2002, 00448 00449] and the use right of state-owned land. The value of the seizure is
limited to RMB 25 million. The seizure period is three years, from March 2, 2020 to March 1, 2023.
On September 14, 2020, the people's Court of Rongcheng District, Jieyang City, Guangdong
Province made a judgment on the financial loan contract dispute between industrial and
Commercial Bank of China Jieyang Rongcheng Branch and Puning huafengqiang Trading Co., Ltd.,
Guangdong shunzhe (Group) Co., Ltd., Chen Hongcheng, Chen Shiyong and Fu juanfeng, and
issued (2020) Yue 5202 minchu No. 570 civil judgment.
The company has withdrawn the estimated liabilities of RMB 25000000.00 for the above matters.
②Due to the loan contract dispute between Jieyang branch of industrial and Commercial Bank of
China Limited (hereinafter referred to as "ICBC Jieyang branch") and lailisheng, etc., ICBC Jieyang
branch applied to the people's Court of Rongcheng District, Jieyang City, Guangdong Province
(hereinafter referred to as "Jieyang Rongcheng court") to seal up the company located in
chenshangou village, Junbu Town, Puning The real estate of Junxin village [property certificate No.:
Yue (2017) Puning real estate property No. 0000915, 0000919] will be sealed up. The value of
sealing up is limited to RMB 30 million, and the sealing up period is 3 years, from March 2, 2020 to
March 1, 2023.
On November 2, 2020, the people's Court of Rongcheng District, Jieyang City, Guangdong
Province made a judgment on the dispute over the financial loan contract between Jieyang
Rongcheng Branch of industrial and Commercial Bank of China Limited and Puning lailisheng
Trading Co., Ltd., Guangdong shunzhe (Group) Co., Ltd., Chen Hongcheng, Ding Lihong, Chen
Shiqiang, Chen Shaoqing, Chen Zhenhui and Chen Huizhu, And issued (2020) Yue 5202 minchu
No. 510 civil judgment.
The company has withdrawn the estimated liabilities of 23760590.71 yuan for the above matters.
As of December 31, 2020, the details of the company's mortgage guarantee are as follows:
Name of guaranteed Guarantee Amount ‘0000
Term Remark
unit matters Yuan
Puning lailisheng Trade Bank loan From 2019-2-19 to
2,350.00
Co., Ltd mortgage 2020-2-18
Puning huafengqiang Bank loan 1,940.00 From 2019-5-16 to
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Trade Co., Ltd mortgage 2020-5-15
Total - 4,290.00 - -
（2）As of December 31, 2020, the company has no other pending litigation, external guarantee and
other contingencies that should be disclosed.
Except for the above contingencies, as of December 31, 2020, the company has no other
contingencies that should be disclosed
XII. Events after the reporting period
Naught.
XIII. Other significant events
On April * *, 2021, Anhui xiangshijiaguan stone appreciation Appraisal Co., Ltd. issued
"xiangshijia appraisal No. (2021) 0028" assets appraisal report on some gold, diamond and jadeite
art products of Shenzhen Chinese Gold Nobility Jewelry Co., Ltd.a wholly-owned subsidiary of
Guangdong shunzhe (Group) Co., Ltd the main contents of the appraisal report are as follows,
(Extract the content of the evaluation report)
XIV. Notes to the items of the parent company’s financial statement
1. Trade receivables
（1）By Age
Category Closing balance
0-1 year
1-2 years
2-3 years
3-4 years
4-5 years
Over 3 years 4,608,276.88
Subtotal 4,608,276.88
Less: provision for bad debts 4,608,276.88
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Category Closing balance
Total -
（2）In categories
Closing balance
Write-down
Category Book balance amount
Book value
Carrying Proportion Carrying Proportion
Amount (%) Amount (%)
Significant individual
amount with
4,608,276.88 100.00 4,608,276.88 100.00 -
individually assessed
of bad debts
Accounts receivable
withdrawn bad debt
provision according to
credit risks
characteristics
Amoung
Aging group
Total 4,608,276.88 100.00 4,608,276.88 100.00 -
(Continued)
Opening balance
Write-down
Item Book balance amount
Book value
Carrying Proportion Carrying Proportion
Amount (%) Amount (%)
Significant individual amount
with individually assessed of 4,608,276.88 100.00 4,608,276.88 100.00 -
bad debts
Accounts receivable
withdrawn bad debt provision
according to credit risks
characteristics
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Opening balance
Write-down
Item Book balance amount
Book value
Carrying Proportion Carrying Proportion
Amount (%) Amount (%)
Insignificant individual amount
with individually assessed of
bad debts
Total 4,608,276.88 100.00 4,608,276.88 100.00 -
①Accounts receivable with individual provision for bad debts at the end of the period
Closing balance
Name
Book balance Bad debt provision Proportion（%） Reason
Long term
outstanding account,
Beijing Capital Airport 21,713.00 21,713.00 100.00
the enterprise thinks
it can't be recovered
Long term
Ningbo Industrial and Commercial outstanding account,
26,354.45 26,354.45 100.00
Bureau the enterprise thinks
it can't be recovered
Long term
outstanding account,
Shunqin Chen 335,904.80 335,904.80 100.00
the enterprise thinks
it can't be recovered
Long term
Hongkong Jinhua Trading outstanding account,
4,224,304.63 4,224,304.63 100.00
Company the enterprise thinks
it can't be recovered
Total 4,608,276.88 4,608,276.88 —— ——
②Other receivables
Closing balance
Item Witten-down
Book balance
amount Proportion（%）
Naught
Total ——
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
（3）Statements
Change
Item Opening amount Proportion Recovery or write off Closing amount
reversal
Accounts
4,608,276.88 4,608,276.88
receivable
Total 4,608,276.88 4,608,276.88
（4）Receivables actually written off in the current period: None
（5）Top five accounts receivable of ending balance collected by debtors,
The total amount of the top five accounts receivable collected by the debtor at the end of the period
is 4,608,276.88 yuan, accounting for 100% of the total amount of accounts receivable at the end of
the period, and the total amount of the corresponding accrued bad debt reserves at the end of the
period is 4,608,276.88 yuan。
（6）As of December 31, 2020, the company has no derecognized accounts receivable and
transferred accounts receivable due to the transfer of financial assets and continues to be involved in
the formed assets and liabilities.
2. Other receivables
Item Closing balance Opening balance
Interest receivable
Dividends receivable
other receivables 95,239,139.90 121,476,600.82
Less: provision for bad debts 5,685,889.29 5,579,210.68
Total 89,553,250.61 115,897,390.14
（i）Other receivable
（1）By Age
Age Closing balance
0-1 year 2,995,892.25
1-2 years 1,147,283.52
2-3 years 65,653,520.9
3-4 years 307,226.65
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Age Closing balance
4-5 years 11,472,576.82
Over 3 years 13,662,639.76
Subtotal 95,239,139.90
Less: provision for bad debts 5,685,889.29
Total 89,553,250.61
（2）Classification by fund nature
Item Closing balance Opening balance
Transaction among related parties 89,454,949.40 115,616,030.49
Transaction 2,795,218.01 3,482,316.60
Tax 2,331,608.20 2,331,608.20
Payment for others 125,559.65 41,476.53
Deposit 3,000.00 3,000.00
Revolving fund 528,804.64 2,169.00
Subtotal 95,239,139.90 121,476,600.82
Less: provision for bad debts 5,685,889.29 5,579,210.68
Total 89,553,250.61 115,897,390.14
（3）Provision for bad debts
1st stage 2nd stage 3rd stage
Expected credit
Expected credit Expected credit loss
Bad debts loss over the life Total
loss in the next over the life (no credit
(credit impairment
12 months impairment)
occurred)
Balance on January 1, 2019 5,579,210.68 5,579,210.68
The balance on January 1, 2019 in the
current period:
—— shift to 2nd stage
—— shift to 3rd stage
—— back to 2nd stage
—— back to 1st stage
Accrual 106,678.61 106,678.61
Reversal
Conversion
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
1st stage 2nd stage 3rd stage
Expected credit
Expected credit Expected credit loss
Bad debts loss over the life Total
loss in the next over the life (no credit
(credit impairment
12 months impairment)
occurred)
Write off
Other change
Balance on December 31, 2019 5,685,889.29 5,685,889.29
（4）Information about bad debt provision
Change
Opening
Item Proportion Recovery or Write-down Closing balance
balance
reversal amount
Other
5,579,210.68 106,678.61 5,685,889.29
receivables
Total 5,579,210.68 106,678.61 5,685,889.29
（5）No other receivables actually written off in the current period
（6）Top 5 amounts of balances on 31 Dec.2020
Percentage in
the total
Closing Write-down
Company Character Age other
Balance amount
receivables
(%)
Shenzhen Chinese Gold Transaction among 71.98
68,556,265.18 1-3 years -
Nobility Jewelry Co., Ltd. related parties
Transaction among 1-2 years ， 4-5 21.57
Tianrui (HK) Trading Co.,
related parties 20,540,030.49 years， Over 5 -
Ltd.
years
Guangdong Yuanfeng Transaction Over 5 years 0.73
Trade Development Co., 700,000.00 700,000.00
Ltd.
Shenzhen Zhaotong Transaction Over 5 years 0.63
600,000.00 600,000.00
Investment Co., Ltd.
Guangzhou Nanxiang Transaction Over 5 years 0.52
Construction Engineering 500,000.00 500,000.00
Company
Total —— 90,896,295.67 —— 95.00 1,800,000.00
3. Long-term equity investments
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Closing balance Opening balance
Provision Provision
Item
for Book for
Book balance Book value Book value
impairme balance impairme
nt nt
Investment in
99,500,008.26 99,500,008.26 104,500,008.26 104,500,008.26
subsidiaries
Investment in
100,600,000.00 - 100,600,000.00 100,600,000.00 - 100,600,000.00
Associate
Total 200,100,008.26 200,100,008.26 205,100,008.26 205,100,008.26
（1）Investments in subsidiaries
Closing
Provisio balance of
Opening Closing n for Provision
Investee Increase Decrease
balance balance impair for
ment impairme
nt
ShenzhenRieys
IndustrialCo., 45,000,000.00 45,000,000.00
Ltd.
Tianrui(HK)
8.26 8.26
TradingCo.,Ltd.
Shenzhen
ChineseGold
54,500,000.00 54,500,000.00
NobilityJewelry
Co.,Ltd.
Shanghai
Yunpeng
Internet 5,000,000.00 5,000,000.00 -
TechnologyCo.,
Ltd
Total 104,500,008.26 5,000,000.00 99,500,008.26
4. Revenue and cost of sales
Item Amount for the current period Amount for the prior period
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Revenue Cost of sales Revenue Cost of sales
Other activities 1,576,112.56 334,053.72 702,306.51 204,840.45
Total 1,576,112.56 334,053.72 702,306.51 204,840.45
Other description of business income: other business income in the current period is house rental income
XV. Supplementary information
1、Statement of non-recurring gains or losses for the year ended 31 Dec.2020
Amount incurred in the
Item current period
Statement
1. Profit or loss from disposal of Profit and loss from disposal of
fixed assets and investment
non-current assets, including write-off -17,065.34
income from disposal of
impairment. long-term equity investment
2. Ultra vires approval, or without official
approval, or occasional tax return or relief;
3. Government subsidies through current
profit or loss. (Excluding that could be
continuously received in normal operations
according to certain standard amount or
4. Interest from non-financial enterprises
5. Gain from acquiring subsidiaries or other
entities with a consideration less than the
fair value of the net assets.
6. Non-monetary transactions profit or loss;
7. Profit or loss from entrusting others to
i
8. Various impairment losses made due to
force majeure, such as natural disasters;
9. Debt restructuring gains and losses;
10. Corporate restructuring costs, such as
the employees arrange expenses, integration
11. Profit or loss over the part of fair value
generated by transactions with obviously
12. Profit or loss generated by subsidiaries
acquired( under the same control before
13. Profit or loss generated by
contingencies unrelated to normal business;
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
14. Profit or loss from changes in fair
values of financial assets at fair value
through profit or loss, and liabilities at fair
value through profit or loss or from
disposals of financial assets at fair value
through profit or loss, liabilities at fair
value through profit or loss and
15. Reversal of write-off of receivables
through separate impairment test;
16. Profit or loss from entrusted loans lend
h ii
17. Profit or loss generated from changes in
fair value of investment property that using
fair value method for subsequent
18. According to tax, accountancy law and
other regulations, one-time adjustment on
19. Commission Income obtained from
i i i
20. Other non-operating income and -48,718,485.37 -
expenditure in addition to the above items;
21. Other profit or loss items meet the
Subtotal -48,735,550.71 -
Less: Income tax expense that should be -7,238.80 -
d d d f f i d
Net non-recurring gains and losses -48,728,311.91 -
Less: Effects attributable to minority 184.37 -
interests (after tax)
Total -48,728,496.28 -
2. ROE, basic EPS and diluted EPS
Weighted average EPS
Profit of year ended31 Dec.2020
ROE (%) Basic EPS Diluted EPS
Net profit attributable to ordinary shareholders -16.39 -0.1644 -0.1644
Net profit attributable to ordinary shareholders
-1.15 -0.0115 -0.0115
after deducting non-recurring gain or loss
The above data is calculated using the following formula:
Weighted average return on net asset
Weighted average return on net asset = P0/(E0＋NP÷2＋Ei×Mi÷M0– Ej×Mj÷M0±Ek×Mk÷M0)
Where: P0 is net profit attributable to ordinary shareholders of the Company or net profit
attributable to ordinary shareholders of the Company after deducting non-recurring gain or loss; E0
is the year beginning equity attributable to ordinary shareholders of the Company; Ei is increased
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
equity attributable to ordinary shareholders of the Company which arises from new issuance of
shares or conversion of debt instruments to stocks in the reporting period; Ej is reduced equity
attributable to ordinary shareholders of the Company due to stock repurchase or cash dividend in
the reporting period; M0 is the number of months of the reporting period; Mi is the number of
accumulative months from the next month that equity is increased to the year end of the reporting
period; Mj is the number of months from the next month that equity is decreased to the year end of
the reporting period; Ek is the change of equity resulting from other transactions or events and
attributable to ordinary shareholders; Mk is the number of accumulative months from the next
month that other change of equity occurs to the year end of the reporting period.
Basic earnings per share
Basic earnings per share = P0÷S
S= S0＋S1＋Si×Mi÷M0– Sj×Mj÷M0-Sk
Where: P0 is net profit attributable to ordinary shareholders of the Company or net profit
attributable to ordinary shareholders of the Company after deducting non-recurring gain or loss; S is
weighted average number of ordinary shares outstanding; S0 is the total number of shares at the
beginning of the year; S1 is the number of increased shares as a result of capitalization of reserves
or scrip dividend during the reporting period; Si is the number of increased shares as a result of new
issuance of shares or conversion of debt instruments to stocks during the reporting period; Sj is the
number of reduced shares as a result of stock repurchase; Sk is the number of consolidated shares in
the reporting period; M0 is the number of months of the reporting period; Mi is the number of
accumulative months from the next month that the number of shares is increased to the year end of
the reporting period; Mj is the number of accumulative months from the next month that the number
of shares is decreased to the year end of the reporting period.
(If the Company have any dilutive potential ordinary shares , they should be adjusted respectively
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
and attributable to net profit of reporting period of ordinary shareholders and weighted average
common shares outstanding, and by which calculate the diluted earnings per share)
Diluted earnings per share = P1/(S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0–Sk+weighted average number
of increased ordinary shares arising from warrants, stock options and convertible debts)
Where: P1 is net profit attributable to ordinary shareholders of the Company or net profit
attributable to ordinary shareholders of the Company after deducting non-recurring gain or loss, and
after the consideration of the effects of dilutive potential ordinary shares, make adjustment
according to relevant provisions of “Accounting Standards of Enterprises”.
In calculating the diluted earnings per share, the Company has taken into consideration the effects
of all dilutive potential ordinary shares on net profit attributable to the Company's common
shareholders or net profit attributable to the Company's common shareholders after deducting
non-recurring profit or loss as well as weighted average number of shares, until the diluted earnings
per share reach the lowest amount.
(1) During period from statement of financial position date to the date approved to issue the
financial report, if the occurred stock dividend, reserve capitalization, share split or share
consolidation impact the number of outstanding ordinary shares or potential common shares but
without influent the amount of owner's equity, it should recalculate the earnings per share each
comparative period at adjusted number of shares.
(2) If business combination under identical control occurred during the reporting period, and the
merging parties issue new shares as the price in the merger date, when calculate basic earnings per
share for the reporting period, such new shares should be treated as outstanding common shares
issued at the beginning of merger (weight average by weight of 1).When calculating of basic
earnings per share during the comparison period, such shares should be treated as outstanding
common shares issued at the beginning of comparison period. When calculating the earnings per
share after deducting non-recurring profit or loss at the end of reporting period, the new shares
issued by the merging parties on the merger date will be weighted from the month next to the
combined date. When calculating the earnings per share after deducting non-recurring profit or loss
during the comparison period, the new shares issued by the merging parties on the merger date will
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
not be weighted (the weight is 0). For the occurrence of business combination under identical
control at the reporting period, and the merging parties issue new shares as the price in the merger
date, when calculating the diluted earnings per share in the reporting period and comparison period,
it should be treated according to the principles on calculation of basic earnings per share。
(3) In the reporting period, if the company realizes the unlisted companies to list indirectly through
share issue to purchase assets or other means and which composing a reverse purchase, then when
calculating earnings per share of the reporting period:
Weighted average number of ordinary shares in reporting period ＝ weighted average number in
the month from reporting period beginning to purchase date ＋ weighted average number from the
next month to purchase date to reporting period end
Weighted average number in the month from reporting period beginning to purchase date ＝
weighted average number of purchaser (subsidiary in law) × exchange ratio in Purchase Agreement
× number of cumulative months from year beginning to purchase date ÷ number of months of
reporting period
Weighted average number in the next month to purchase date to reporting period end ＝ weighted
average number of acquirer (parent company in law) × number of cumulative months from the next
month to purchase date to reporting period end ÷ number of months of reporting period
In the reporting period, if the company realizes the unlisted companies to list indirectly through
share issue to purchase assets or other means, then when calculating earnings per share of the
comparison period:/
Weighted average number of common shares in comparison period ＝ Purchaser (subsidiary in
law) × exchange ratio in Purchase Agreement
Guangdong Jadiete Holdings Group Company Limited
27th Apr. 2021
（stamp）
Note: Prevail the Chinese version of all the above information disclosed.
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2. financial reports
The unit of the statement in the financial notes is, yuan
1. Consolidated Statement of Financial Position
Prepared by Guangdong Jadiete Holdings Group Company Limited
2021-04-29
Expressed in RMB
Assets 2020-12-31 2019-12-31
Current Assets:
Monetary funds 797,061.47 1,259,899.63
Deposit Reservation for Balance
Lendings to Banks and Other
Financial Institutions
Trading financial assets
Derivative financial assets
Note receivable
Accounts receivable 6,401.71 9,124,432.68
Receivables financing
Prepayment 231,584.33 314,810.13
Receivable premium
Accounts receivable reinsurance
Reinsurance contract reserve
receivable
Other receivable 547,888.86 3,362,628.68
Of which, Interest receivable 0.00
Dividends receivable 0.00
Buying back the sale of financial
assets
Inventory 143,090,724.36 173,929,882.99
Contract assets
Assets held for sale
Long-term liabilities due within one
149,998,221.71 149,998,221.71
year
Other current liabilities 20,640,114.26 25,096,981.77
Total current liabilities 315,311,996.70 363,086,857.59
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Non-current liabilities:
Loans and advances
Debt investment
Other debt investment
long-term receivables
Long term equity investment 100,600,000.00 100,600,000.00
Investment in other equity
instruments
Other non-current financial
assets
Investment real estate 5,868,823.78
capital assets 17,243,097.09 31,563,817.93
Construction in progress
Productive biological assets
Oil and gas assets
Right to use assets
intangible assets 7,286,961.93
Development expenditure
goodwill
Long term deferred expenses 414,857.81
deferred tax assets 3,736,347.51 5,828,910.22
Other non-current assets 24,737,249.43
Total non-current assets 146,316,694.03 151,563,371.67
Total Assets 461,628,690.73 514,650,229.26
current liabilities:
Short term loans
Borrowing from the central
bank
Borrowing funds
Trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 664,540.30 16,088,889.66
Advance payment 75,412,636.58 86,443,115.70
Contractual liabilities 269,873.80
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Financial Assets Sold for
Repurchase
Deposit taking and interbank
deposits
Agency trading of securities
Acting underwriting securities
Employee compensation
2,192,763.67 2,895,329.45
payable
Tax payable 26,975,696.67 25,253,599.38
Other accounts payable 10,350,618.29 36,678,743.30
Of which: Interest payable
Dividends payable
Handling charges and
commissions payable
Accounts payable
reinsurance
Liabilities held for sale
Non-current liabilities due
within one year
Other current liabilities 35,083.59
Total Current Liabilities 115,901,212.90 167,359,677.49
Non-current liabilities:
Insurance contract reserve
Long term loan
Bonds payable
Of which: preferred stock
perpetual capital securities
Lease liabilities
Long term accounts payable
Long term employee
compensation payable
Estimated liabilities 48,760,590.71
Deferred income
Deferred Tax Liability
Other non-current liabilities
Total Non-current Liabilities 48,760,590.71
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Total liabilities 164,661,803.61 167,359,677.49
Owner's equity:
capital stock 318,600,000.00 318,600,000.00
Other equity instruments
Of which: preferred stock
Perpetual debt
Capital reserve 56,306,298.82 56,306,298.82
Less: treasury stock
Other comprehensive income
Special reserve
Surplus reserve 86,036,260.20 86,036,260.20
General risk preparation
Undistributed profit -166,859,453.48 -115,844,230.62
Total owner's equity attributable to
294,083,105.54 345,098,328.40
parent company
Minority interests 2,883,781.58 2,192,223.37
Total owner's equity 296,966,887.12 347,290,551.77
Total liabilities and owners' equity 461,628,690.73 514,650,229.26
Legal representative: Chief of the accounting work: Chief of the accounting department:
2. Statement of Financial Position for the parent company
Expressed in RMB
Assets 2020-12-31 2019-12-31
Current Assets:
Monetary funds 163,148.90 307,460.05
Trading financial assets
Derivative financial assets
Note receivable
Accounts receivable
Receivables financing
Prepayment
Other receivable 89,553,250.61 115,897,390.14
Of which, Interest receivable
Dividends receivable
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Inventory
Contract assets
Assets held for sale 149,998,221.71 149,998,221.71
Non-current assets due within
one year
Other current assets
Total current assets 239,714,621.22 266,203,071.90
Non-current assets:
Debt investment
Other debt investment
long-term receivables
Long term equity investment 200,100,008.26 205,100,008.26
Investment in other equity
instruments
Other non-current financial
assets
Investment real estate 5,868,823.78
capital assets 16,605,456.40 30,461,249.76
Construction in progress
Productive biological assets
Oil and gas assets
Right to use assets
intangible assets 7,286,961.93
Development expenditure
goodwill
Long term deferred expenses
deferred tax assets 2,573,541.54 2,560,503.38
Other non-current assets 24,737,249.43
Total non-current assets 244,016,255.63 251,277,547.11
Total Assets 483,730,876.85 517,480,619.01
current liabilities:
Short term loans
Borrowing from the central
bank
Borrowing funds
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Trading financial liabilities
Derivative financial liabilities
Notes payable 75,412,636.58 75,405,227.83
Accounts payable
Employee compensation payable 1,724,610.50 2,267,169.53
Tax payable 18,677,984.93 17,597,021.50
Other accounts payable 7,068,899.65 31,725,651.74
Of which: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due
within one year
Other current liabilities
Total Current Liabilities 102,884,131.66 126,995,070.60
Non-current liabilities:
Long term loan
Bonds payable
Of which: preferred stock
perpetual capital securities
Lease liabilities
Long term accounts payable
Long term employee
compensation payable
Estimated liabilities 48,760,590.71
Deferred income
Deferred Tax Liability
Other non-current liabilities
Total Non-current Liabilities 48,760,590.71
Total liabilities 151,644,722.37 126,995,070.60
Owner's equity:
capital stock 318,600,000.00 318,600,000.00
Other equity instruments
Of which: preferred stock
Perpetual debt
Capital reserve 52,129,496.58 52,129,496.58
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Less: treasury stock
Other comprehensive income
Special reserve
Surplus reserve 86,036,260.20 86,036,260.20
Undistributed profit -124,679,602.30 -66,280,208.37
Total owner's equity 332,086,154.48 390,485,548.41
Total liabilities and owners' equity 483,730,876.85 517,480,619.01
3. Consolidated Statement of Profit
Expressed in RMB
Assets 2020 2019
I. Total operating revenue 12,093,926.25 19,065,432.67
Including: operating income 12,093,926.25 19,065,432.67
Interest income
Earned premium
Fee and commission income
2.Total operating cost 17,295,297.96 25,717,455.66
Including: operating cost 7,777,044.44 14,316,783.07
Interest expense
Handling charges and commission
expenses
Surrender money
Net compensation expenses
Withdrawal of net reserve for
insurance liability contract
Expenditures dividend policy
Reinsurance expenses
Taxes and surcharges 954,084.33 858,343.01
Sale expenses 329,345.75 554,903.76
Administrative expenses 7,740,550.73 9,695,842.11
R&D expenses
Finance costs 494,272.71 291,583.71
Of which:interest expenses
Interest income
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广东舜喆（集团）股份有限公司 2020 年年度报告全文
Add: other income
Gain/(loss) from investment (“-” for loss) -3,638,073.86 77,525.28
Including: investment income from joint venture
and joint venture
Income from derecognition of financial assets
measured at amortised cost
Gain/(loss) from Exchange earnings (“-”
for loss)
Gain/(loss) from Net exposure hedging
income (“-” for loss)
Gain/(loss) from change in fair value (“-” for loss)
Credit impairment loss (“-” for loss) 8,503,474.85 -7,427,856.06
Asset Credit impairment loss (“-” for loss)
Gain/(loss) from disposal of asset(“-” for loss) -17,065.34 953,732.29
3.Operating profit (“-” for loss) -353,036.06 -13,048,621.48
Add: non-operating income 42,448.08 12,967,905.08
Less: non-operating expense 48,760,933.45 3,882.49
4.Total profit (“-” for loss) -49,071,521.43 -84,598.89
Less: Income tax expense 2,625,793.23 -1,472,964.08
5. Net profit (“-” for loss) -51,697,314.66 1,388,365.19
(1) By business continuity
1.Net profit from continuing operations(“-” for loss) -51,697,314.66 1,388,365.19
2.Net profit from discontinued operations(“-” for
loss)
(2) By ownership
1.Attributable to shareholders of the parent company -52,388,872.87 1,996,242.74
2.Minority shareholders’ income 691,558.21 -607,877.55
6.After-tax net amount of other comprehensive
incomes
After-tax net amount of other comprehensive
incomes attributable to owners of the Parent
Company
(I) Other comprehensive incomes that will not
be reclassified into gains and losses
1.Changes in net liabilities or assets with
a defined benefit plan upon re-measurement
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2.Other comprehensive income that
cannot be reclassified into gains and losses under the
equity method
3.Changes in fair value of other equity
instrument investments
4.Changes in fair value of credit risk
5.Others
(II) Other comprehensive incomes that will be
reclassified into gains and losses
1.other comprehensive incomes that will be
reclassified into gains and losses under the equity
method
2.Changes in fair value of other debt investment
3. Amount of financial assets reclassified into other
comprehensive income
4. Provision for credit impairment of other debt
investment
5. Cash flow hedging reserve (effective part of cash
flow hedging profit and loss)
6. Difference of currency conversion financial
statements
7.Others
After-tax net amount of other comprehensive incomes
attributable to minority shareholders
7.Total comprehensive incomes -51,697,314.66 1,388,365.19
Attributable to the Parent Company -52,388,872.87 1,996,242.74
Attributable to minority shareholders 691,558.21 -607,877.55
8.Earnings per share
(I) Basic earnings per share -0.1644 0.0063
(II) Diluted earnings per share -0.1644 0.0063
In case of business combination under the same control in the current period, the net profit of the merged party before the
combination is RMB 0.00, and the net profit of the merged party in the previous period is RMB 0.00.
Legal representative: Chief of the accounting work: Chief of the accounting department:
4. Statement of Profit for Parent Company
Expressed in RMB
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Assets 2020 2019
1.Operating revenue 1,576,112.56 702,306.51
Less: Cost of operating 334,053.72 204,840.45
Taxes and surcharges 950,518.79 816,128.46
Sale expenses
Administrative expenses 6,194,370.94 6,855,211.41
R&D expenses
Finance costs 4,258.02 5,972.56
Of which: interest expenses
Interest income
Add: Other income
Gain/(loss) from investment (“-” for
-3,638,073.86
loss)
Of which: Investment
income from joint ventures and
joint ventures
Gain/(loss) from Income from
termination of recognition of
financial assets measured by
amortised cost (“-” for loss)
Gain/(loss) from Net
exposure hedging income (“-” for
loss)
Gain/(loss) from
change in fair value (“-” for loss)
Asset Credit
-106,678.61 19,472.74
impairment loss (“-” for loss)
Asset assets impairment
loss (“-” for loss)
Gain/(loss) from
999,842.26
disposal of asset(“-” for loss)
2.Operating profit (“-” for loss) -9,651,841.38 -6,160,531.37
Add: non-operating income 359,442.64
Less: non-operating expense 48,760,590.71 1,956.66
3.Total profit (“-” for loss) -58,412,432.09 -5,803,045.39
Less: Income tax expense -13,038.16 4,868.19
4. Net profit (“-” for loss) -58,399,393.93 -5,807,913.58
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1.Net profit from continuing
-58,399,393.93 -5,807,913.58
operations(“-” for loss)
2.Net profit from discontinued
operations(“-” for loss)
5.After-tax net amount of other
comprehensive incomes
(I) Other comprehensive
incomes that will not be reclassified
into gains and losses
1.Changes in net
liabilities or assets with a defined
benefit plan upon re-measurement
2.Other comprehensive
income that cannot be reclassified
into gains and losses under the equity
method
3.Changes in fair value
of other equity instrument
investments
4.Changes in fair value
of credit risk
5.Others
(II) Other comprehensive
incomes that will be reclassified into
gains and losses
1.other comprehensive
incomes that will be reclassified into
gains and losses under the equity
method
2. Changes in fair value
of other debt investment
3. Amount of financial
assets reclassified into other
comprehensive income
4.Provision for credit
impairment of other debt investment
5.Cash flow hedging
reserve (effective part of cash flow
hedging profit and loss)
6.Difference of currency
171
广东舜喆（集团）股份有限公司 2020 年年度报告全文
conversion financial statements
7.others
6.Total comprehensive incomes -58,399,393.93 -5,807,913.58
7.Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated statement of cash flow
Expressed in RMB
Assets 2020 2019
I. Operating activities:
Receipts from customers/Cash
31,193,309.15 28,118,014.61
generated from operations
Net increase in customer deposits
and interbank deposits
Net increase in loans from the central
bank
Net increase in funds borrowed from
other financial institutions
Cash received from premium of
original insurance contract
Net cash received from reinsurance
business
Net increase in insured's savings
and investment
Cash for interest, handling charge
and commission
Net increase in inter-bank loans
Net increase in repurchase funds
Net cash received from agency
trading of securities
Refunds of taxes
Other cash received related to operating
1,455,812.07 5,462,159.83
activities
Subtotal of cash inflow from operating
32,649,121.22 33,580,174.44
activities
Cash paid for purchasing goods and 2,232,751.01
172
广东舜喆（集团）股份有限公司 2020 年年度报告全文
accepting services
Net increase in customer loans and
advances
Net increase in deposits with central
bank and other banks
Cash for payment of original
insurance contract
Net increase in lending funds
Cash paid for interest, handling
charge and commission
Cash paid for policy dividend
Cash paid to and for employees 1,607,531.62 2,238,878.97
Various taxes paid 1,914.96 47,800.29
Other cash payments related to
15,384,858.94 23,504,746.94
operating activities
Subtotal of cash outflow from
16,994,305.52 28,024,177.21
operating activities
Net cash flow from operating activities 15,654,815.70 5,555,997.23
II. Investing activities:
Proceeds from disposal of
220,000.00
investment property
Proceeds from return on investments
Net cash received from disposal of
property, plant and equipment,
21,000.00 1,569,004.75
intangible assets and other long-term
assets
Net cash inflow on disposal of
1,361,926.14 90,000.00
subsidiary/ and associate
Other cash received from investing
activities
Subtotal of cash inflows from
1,382,926.14 1,879,004.75
investing activities
Payment for property,plant and
equipment, intangible assets and other 56,858.03
long-term assets
Payment for investment/property
Net increase of pledged loans
Net cash paid to acquire subsidiaries 17,499,899.36 7,731,664.33
173
广东舜喆（集团）股份有限公司 2020 年年度报告全文
and other business units
Other cash payments relating to
investing activities
Subtotal of cash outflows from
17,499,899.36 7,788,522.36
investing activities
Net cash generated by investing
-16,116,973.22 -5,909,517.61
activities
III. Financing Activities:
Cash received from capital contributions
Including: Cash received from minority
shareholder investments by subsidiaries
Proceeds from loans and borrowings
Other cash received from financing
activities
Subtotal of cash inflows from financing
activities
Repayment of loans and borrowings
Dividends and interest paid
Including: dividends or profit paid by
subsidiaries to minority shareholders
Other cash payments from financing
activities
Sub-total of cash outflows from financing
activities
Net cash used in financing activities
IV. Effects of exchange rate changes on
-680.64 79.78
balance of cash held in foreign currencies
V. Net increase in cash and cash
-462,838.16 -353,440.60
equivalents
Add: Cash and cash equivalents at the
1,259,899.63 1,613,340.23
beginning of the year
VI. Cash and cash equivalents at the end
797,061.47 1,259,899.63
of the year
6. Statement of cash flow for Parent Company
Expressed in RMB
Assets 2020 2019
174
广东舜喆（集团）股份有限公司 2020 年年度报告全文
I. Operating activities:
Receipts from customers/Cash
1,662,327.00 744,546.00
generated from operations
Assets
Other cash received related to
21,681,388.37 17,564,222.74
operating activities
Subtotal of cash inflow from
23,343,715.37 18,308,768.74
operating activities
Cash paid for purchasing goods and
accepting services
Cash paid to and for employees 1,149,113.32 625,338.95
Various taxes paid 13,203.74
Other cash payments related to
6,900,839.34 11,485,382.48
operating activities
Subtotal of cash outflow from
8,049,952.66 12,123,925.17
operating activities
Net cash flow from operating
15,293,762.71 6,184,843.57
activities
II. Investing activities:
Proceeds from disposal of investment
220,000.00
property
Proceeds from return on investments
Net cash received from disposal of
property, plant and equipment, intangible 1,392,240.00
assets and other long-term assets
Net cash inflow on disposal of
1,361,926.14 90,000.00
subsidiary/ and associate
Other cash received from investing
activities
Subtotal of cash inflows from
1,361,926.14 1,702,240.00
investing activities
Payment for property,plant and
equipment, intangible assets and other
long-term assets
Payment for investment/property
Net cash paid to acquire subsidiaries
16,800,000.00 7,730,000.00
and other business units
Other cash payments relating to
175
广东舜喆（集团）股份有限公司 2020 年年度报告全文
investing activities
Subtotal of cash outflows from
16,800,000.00 7,730,000.00
investing activities
Net cash generated by investing
-15,438,073.86 -6,027,760.00
activities
III. Financing Activities:
Cash received from capital
contributions
Cash received from issuance of
bonds
Other cash received from
financing activities
Subtotal of cash inflows from
financing activities
Repayment of loans and
borrowings
Dividends and interest paid
Other cash payments from
financing activities
Sub-total of cash outflows from
financing activities
Net cash used in financing activities
IV. Effects of exchange rate changes
on balance of cash held in foreign
currencies
V. Net increase in cash and cash
-144,311.15 157,083.57
equivalents
Add: Cash and cash equivalents
307,460.05 150,376.48
at the beginning of the year
VI. Cash and cash equivalents at the
163,148.90 307,460.05
end of the year
7. Consolidated Statement of Change in stockholders' equity
Expressed in RMB
2020
Item Equity attributable to owners of the Company Min Tota
S Other equity Capi Less Othe Spec Surp Gen Reta Othe subt ority l
176
广东舜喆（集团）股份有限公司 2020 年年度报告全文
h instruments tal : r ific lus eral ined rs otal inter equit
ar reser treas com reser reser risk earni ests y
e ve ury preh ve ve reser ngs
Pr
c stoc ensi ve
ef Per
a k ve
err pet
pi Oth inco
ed ual
ta er mes
sh bon
l ar ds
es
I. Balance at 3
the end of the 1
previous year 8,
6
56,3 86,0 -115 345, 347,
0 2,19
06,2 36,2 ,844, 098, 290,
0, 2,22
98.8 60.2 230. 328. 551.
0 3.37
2 0 62 40 77
0
0.
0
0
Add:
Change of
accounting
policy
Correction of
errors in
previous periods
Business
mergers under
the common
control
1,37 1,37 1,37
Other 3,65 3,65 3,65
0.01 0.01 0.01
II. Balance at 3
the beginning of 1 56,3 86,0 -114 346, 348,
2,19
the year 8, 06,2 36,2 ,470, 471, 664,
2,22
6 98.8 60.2 580. 978. 201.
3.37
0 2 0 61 41 78
0,
177
广东舜喆（集团）股份有限公司 2020 年年度报告全文
0
0
0.
0
0
III. Increase of -52, -52, -51,
691,
amount in the 388, 388, 697,
558.
year (“-” means 872. 872. 314.
21
decrease) 87 87 66
(I) Total -52, -52, -51,
691,
comprehensive 388, 388, 697,
558.
incomes 872. 872. 314.
21
87 87 66
(II) Capital
increased and
reduced by
owners
(II) Capital
increased and
reduced by
owners
1.
Common shares
increased by
shareholders
2. Capital
increased by
holders of other
equity
instruments
3.
Amounts of
share-based
payments
recognized in
owners’ equity
4. Others
(III) Profit
distribution
1.
Appropriations
178
广东舜喆（集团）股份有限公司 2020 年年度报告全文
to surplus
reserves
2.
Appropriations
to general risk
provisions
3.
Dividends
(IV) Internal
carry-forward of
owners’ equity
1.
Increase of share
capital
transferred from
capital reserve
2.
Increase of share
capital
transferred from
surplus reserves
3. Surplus
reserves for
making up
losses
4.
Carryover the
changes in net
liabilities or net
assets from
remeasured
benefit plan
5.Carryover
Other
comprehensive
income to
retained
earnings
6.Other
(V) Specific
reserve
179
广东舜喆（集团）股份有限公司 2020 年年度报告全文
1.
Withdrawn for
the period
2. Used in
the period (“-”
means decrease)
(VI) Other
3
1
8,
6
56,3 86,0 -166 294, 296,
4. Balance at 0 2,88
06,2 36,2 ,859, 083, 966,
the end of 0, 3,78
98.8 60.2 453. 105. 887.
2020 0 1.58
2 0 48 54 12
0
0.
0
0
Expressed in RMB
2019
Equity attributable to owners of the Company
Other equity
Othe
instruments
Less r
Gen Mino
Sha Capi : com Spec Surp Reta Total
Item rity
Pre Per eral
re tal treas preh ific lus ined Othe subt equit
ferr pet risk intere
cap reser ury ensi reser reser earni rs otal y
ed ual Oth reser sts
ital ve stoc ve ve ve ngs
sh bo er ve
k inco
are nd
mes
s s
I. Balance at 318
52,3 86,0 -117, 339,
the end of the ,60 31,30 370,4
03,2 36,2 840, 099,
previous year 0,0 3,124 02,18
74.8 60.2 473. 061.
00. .94 6.58
0 0 36 64
00
Add:
Change of
accounting
policy
Correction of
180
广东舜喆（集团）股份有限公司 2020 年年度报告全文
errors in
previous
periods
Business
mergers
under the
common
control
Other
II. Balance 318
52,3 86,0 -117, 339,
at the ,60 31,30 370,4
03,2 36,2 840, 099,
beginning of 0,0 3,124 02,18
74.8 60.2 473. 061.
the year 00. .94 6.58
0 0 36 64
00
III. Increase
of amount in 4,00 1,99 5,99 -29,1 -23,1
the year (“-” 3,02 6,24 9,26 10,90 11,63
means 4.02 2.74 6.76 1.57 4.81
decrease)
(I) Total 1,99 1,99 -607, 1,388
comprehensi 6,24 6,24 877.5 ,365.
ve incomes 2.74 2.74 5 19
(II) Capital
4,00 4,00 -28,5 -24,5
increased and
3,02 3,02 03,02 00,00
reduced by
4.02 4.02 4.02 0.00
owners
1.
Common
shares
increased by
shareholders
2.
Capital
increased by
holders of
other equity
instruments
3.
Amounts of
share-based
181
广东舜喆（集团）股份有限公司 2020 年年度报告全文
payments
recognized in
owners’
equity
4. 4,00 4,00 -28,5 -24,5
Others 3,02 3,02 03,02 00,00
4.02 4.02 4.02 0.00
(III)
Profit
distribution
1.
Appropriatio
ns to surplus
reserves
2.
Appropriatio
ns to general
risk
provisions
3.
Dividends
4.
Other
(IV)
Internal
carry-forwar
d of owners’
equity
1.
Increase of
share capital
transferred
from capital
reserve
2.
Increase of
share capital
transferred
from surplus
reserves
3.
182
广东舜喆（集团）股份有限公司 2020 年年度报告全文
Surplus
reserves for
making up
losses
4.
Carryover the
changes in
net liabilities
or net assets
from
remeasured
benefit plan
5.Carryover
Other
comprehensi
ve income to
retained
earnings
6.Other
(V) Specific
reserve
1.
Withdrawn
for the period
2.
Used in the
period (“-”
means
decrease)
(VI) Other
318
56,3 86,0 -115, 345,
4. Balance ,60 2,192 347,2
06,2 36,2 844, 098,
at the end of 0,0 ,223. 90,55
98.8 60.2 230. 328.
2019 00. 37 1.77
2 0 62 40
00
8. Statement of Change in stockholders' equity for the Parent Company
Expressed in RMB
Item 2020
183
广东舜喆（集团）股份有限公司 2020 年年度报告全文
Other equity
Other
Sha instruments
Capita Less: compr Specifi Surplu Retai
re
l treasur ehensi c s ned Total
cap Prefe Perp Others
reserv y ve reserv reserv earni equity
ital rred etual
Other e stock incom e e ngs
share bond
es
s s
I. Balance at 318
-66,2
the end of the ,60 52,129 86,036
80,2 390,485,
previous year 0,0 ,496.5 ,260.2
08.3 548.41
00. 8 0
7
00
Add:
Change of
accounting
policy
Correction of
errors in
previous periods
Other
II. Balance at 318
-66,2
the beginning of ,60 52,129 86,036
80,2 390,485,
the year 0,0 ,496.5 ,260.2
08.3 548.41
00. 8 0
7
00
III. Increase of -58,3
amount in the 99,3 -58,399,
year (“-” means 93.9 393.93
decrease) 3
(I) Total -58,3
comprehensive 99,3 -58,399,
incomes 93.9 393.93
3
(II) Capital
increased and
reduced by
owners
1.
Common shares
184
广东舜喆（集团）股份有限公司 2020 年年度报告全文
increased by
shareholders
2. Capital
increased by
holders of other
equity
instruments
3.
Amounts of
share-based
payments
recognized in
owners’ equity
4. Others
（三）利润分
配
1.
Appropriations
to surplus
reserves
2.
Dividends
3. Other
(IV) Internal
carry-forward of
owners’ equity
1.
Increase of share
capital
transferred from
capital reserve
2.
Increase of share
capital
transferred from
surplus reserves
3. Surplus
reserves for
making up
losses
4.
185
广东舜喆（集团）股份有限公司 2020 年年度报告全文
Carryover the
changes in net
liabilities or net
assets from
remeasured
benefit plan
5.Carryover
Other
comprehensive
income to
retained
earnings
6.Other
(V) Specific
reserve
1.
Withdrawn for
the period
2. Used in
the period (“-”
means decrease)
(VI) Other
318
-124,
4. Balance at ,60 52,129 86,036
679, 332,086,
the end of 0,0 ,496.5 ,260.2
602. 154.48
2020 00. 8 0
30
00
Expressed in RMB
2019
Other equity
Other
instruments
Sh Capit Less: compr Surpl Retaine
Specifi
Item are al treasu ehensi us d Total
Prefe Perp c Others
cap reserv ry ve reserv earning equity
rred etual Othe reserve
ital e stock incom e s
shar bond r
es
es s
I. Balance at 31
52,12 86,03
the end of the 8,6 -60,472 396,293,
9,496. 6,260
previous year 00, ,294.79 461.99
58 .20
00
186
广东舜喆（集团）股份有限公司 2020 年年度报告全文
0.0
0
Add:
Change of
accounting
policy
Correction of
errors in
previous
periods
Other
II. Balance at 31
the beginning 8,6
52,12 86,03
of the year 00, -60,472 396,293,
9,496. 6,260
00 ,294.79 461.99
58 .20
0.0
0
III. Increase
of amount in
-5,807, -5,807,91
the year (“-”
913.58 3.58
means
decrease)
(I) Total
-5,807, -5,807,91
comprehensive
913.58 3.58
incomes
(II) Capital
increased and
reduced by
owners
1.
Common
shares
increased by
shareholders
2.
Capital
increased by
holders of
other equity
187
广东舜喆（集团）股份有限公司 2020 年年度报告全文
instruments
3.
Amounts of
share-based
payments
recognized in
owners’ equity
4. Others
（三）利润分
配
1.
Appropriations
to surplus
reserves
2.
Dividends
3. Other
(IV)
Internal
carry-forward
of owners’
equity
1.
Increase of
share capital
transferred
from capital
reserve
2.
Increase of
share capital
transferred
from surplus
reserves
3.
Surplus
reserves for
making up
losses
4.
Carryover the
188
广东舜喆（集团）股份有限公司 2020 年年度报告全文
changes in net
liabilities or net
assets from
remeasured
benefit plan
5.Carryover
Other
comprehensive
income to
retained
earnings
6.Other
(V) Specific
reserve
1.
Withdrawn for
the period
2. Used
in the period
(“-” means
decrease)
(VI) Other
31
8,6
4. Balance at 52,12 86,03
00, -66,280 390,485,
the end of 9,496. 6,260
00 ,208.37 548.41
2019 58 .20
0.0
0
3. Company profile
189
广东舜喆（集团）股份有限公司 2020 年年度报告全文
Part XIII Contents of Reference File
1. Financial statements with the signature and seal of the person in charge of the company, the
person in charge of accounting and the person in charge of accounting
2. The original audit report with the seal of the accounting firm and the signature and seal of the
certified public accountant
3. Reserved copy and original announcements of all company documents publicly disclosed on the
designated website of CSRC during the reporting period
This Report and its abstract have been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese versions shall prevail.
190
