Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Semiannual Report of 2024
[August 30,2024]
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Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Section I Important Information, Contents, and Definitions
The Company’s Board of Directors, Board of Supervisors, directors,
supervisors, and officers ensure that the content of semiannual report is true,
accurate, and complete without any false record, misleading statement, or
significant omission and bear joint and several legal liability.
Wang Huan, the principal of the Company, Fu Chuanhai, the person in
charge of accounting, and Lei Lixin, the person in charge of the accounting
body (accounting supervisor), declare that the financial report in this
semiannual report is true, accurate, and complete.
All directors attended the Board meeting at which this semiannual report
was considered.
The Company describes potential risks in its operations and
countermeasures in “X. Risks faced by the company and countermeasures” in
Section III, “The Management’s Discussion and Analysis.” Investors are
reminded to pay attention to the relevant content.
This report is prepared in Chinese and English. Where the Chinese and
English texts are interpreted in different ways, the Chinese text shall prevail.
During the Reporting Period, There is no significant risk that has a
substantial impact on the production and business operation of the company.
Investors are requested to pay attention and read it carefully.
The Company plans not to distribute cash dividends, not to distribute
bonus shares, and not to convert reserves into share capital.
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Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Contents
Section I Important Information, Content, and Definitions..................................................................................2
Section II Section II Company Introduction and Key Financial Indicators..........................................................6
Section III The Management's Discussion and Analysis......................................................................................9
Section IV Corporate Governance......................................................................................................................16
Section V Environmental and Social Responsibility..........................................................................................18
Section VI Important Matters.............................................................................................................................19
Section VII Changes in Shares and Information on Shareholders......................................................................23
Section VIII Preferred Shares.............................................................................................................................27
Section IX Bonds................................................................................................................................................28
Section X Financial Report.................................................................................................................................29
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List of Documents for Reference
(I) Financial statements with the signatures of the principal of the Company, the person in charge of accounting, and the
person in charge of the accounting body and affixed with the Company’s seal.
(II) The originals of all corporate documents and the manuscripts of all announcements disclosed during the Reporting
Period.
(III) The text of the company's 2024 semi-annual report containing the signature of the company's responsible person.
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Definitions
Term Refers to Content
Shandong Zhonglu Oceanic Fisheries
The Company, Company Refers to
Co., Ltd.
Shandong State-owned Assets
Shandong Guotou Refers to
Investment Holdings Co., Ltd.
The Semiannual report of 2024 prepared
This report Refers to
by the Company
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Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Section II Company Introduction and Key Financial Indicators
I. Company’s Information
Short stock name Zhonglu B Stock code 200992
Short stock name before
None
change (if any)
Exchange where the stocks
Shenzhen Stock Exchange
are listed
Chinese name 山东省中鲁远洋渔业股份有限公司
Short Chinese name (if any) 中鲁远洋
Foreign name (if any) Shandong Zhonglu Oceanic Fisheries Company Limited
Acronym of the foreign name
ZLYY
(if any)
Legal representative Wang Huan
II. Contact Person and Contact Information
Board Secretary Securities Affairs Representative
Name Liang Shanglei Tang Yuntao
25th Floor, Building 1, Guoxin Financial 25th Floor, Building 1, Guoxin Financial
Address Center, No. 31 Xianxialing Road, Center, No. 31 Xianxialing Road,
Laoshan District, Qingdao, Shandong Laoshan District, Qingdao, Shandong
Tel 0532-55717968 0532-55715968
Fax 0532-55719258 0532-55719258
Email zl000992@163.com zl000992@163.com
III. Other information
1. Contact information of the company
Has the registered address, office address, postal code, website, email address, etc. of the company changed during the reporting
period
Applicable Not applicable
Unit 2501, Building 1, Xianxialing Road, Laoshan District,
The company's registered address
Qingdao, Shandong
The postal code of the company's registered address 266061
25th Floor, Building 1, Guoxin Financial Center, No. 31,
The company's office address Xianxialing Road, Laoshan District, Qingdao, Shandong
Province
The postal code of the company's office address 266061
The company's website www.zofco.cn
The company's email box zloffice@zofco.cn
Query date of designated website for temporary announcement
June 29, 2024
disclosure (if any)
Query index for designated website for temporary
http://www.cninfo.com.cn/
announcement disclosure (if any)
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2.Information disclosure and preparation location
Has the information disclosure and preparation location changed during the reporting period
Applicable Not applicable
The website and media name and website of the stock exchange where the company discloses its semi-annual report, and the
preparation location of the company's semi-annual report remain unchanged during the reporting period, as detailed in the 2023
annual report.
3. Other relevant information
Is there any change in other relevant information during the reporting period
Applicable Not applicable
IV. Key Accounting Data and Financial Indicators
Whether the Company is required to make retroactive adjustments or restate the accounting data for previous years
□Yes No
Increase/decrease of current
reporting period compared
Current reporting period Same period of previous year
with the same period of
previous year
Operating revenue (RMB) 484,789,276.49 454,219,264.20 6.73%
Net profits attributable to the
Company’s shareholders -17,573,821.33 -10,201,333.02 -72.27%
(RMB)
Net profits attributable to the
Company’s shareholders after
-20,216,904.31 -12,246,427.51 -65.08%
deducting nonrecurring items
(RMB)
Net cash flows from operating
-43,495,437.84 -54,465,959.61 20.14%
activities (RMB)
Base earnings per share
-0.0660 -0.0383 -72.32%
(RMB/share)
Diluted earnings per share
-0.0660 -0.0383 -72.32%
(RMB/share)
Weighted average return on
-1.72% -1.04% -0.68%
equity
Increase/decrease at the end
End of current reporting of current reporting period
End of previous year
period compared with that at end of
previous year
Total assets (RMB) 2,018,292,019.53 2,048,135,067.78 -1.46%
Net assets attributable to the
Company’s shareholders 1,013,415,421.04 1,029,594,896.14 -1.57%
(RMB)
V. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences in net profits and net assets in the financial report disclosed both according to
international accounting standards and Chinese accounting standards
□Applicable Not applicable
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For the Company, there was no difference in net profits and net assets in the financial report disclosed both according to
international accounting standards and Chinese accounting standards during the Reporting Period.
2. Differences in net profits and net assets in the financial report disclosed both according to overseas
accounting standards and Chinese accounting standards
□Applicable Not applicable
For the Company, there was no difference in net profits and net assets in the financial report disclosed both according to overseas
accounting standards and Chinese accounting standards during the Reporting Period.
VI. Non-recurring profit and loss items and amounts
Applicable Not applicable
Unit:RMB
Item Amount Remark
Government grants recognized in profit
or loss (excluding government grants that
are closely related to the Company’s
business, meet the standards of national
2,078,090.69
policies, are received in accordance with
established standards, and have a
continuous impact on the Company’s
profit or loss)
Trustee income from trusteeship 849,056.60
Other non-operating incomes and
-324.90
expenditures than the above
Less: amount of the effect of the income
130,139.12
tax
amount of the effect of the minority
153,600.29
interest (after tax)
Total 2,643,082.98
Details of other profit/loss items that conform to the definition of nonrecurring items:
□Applicable Not applicable
For the Company, there was no detail of other profit/loss items that conform to the definition of nonrecurring items.
Explanation of the situation where the nonrecurring items listed in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Their Securities to the Public - Nonrecurring Items are defined as recurring items
□Applicable Not applicable
The Company had no situation where it defined the nonrecurring items listed in the Explanatory Announcement No. 1 on
Information Disclosure for Companies Offering Their Securities to the Public - Nonrecurring Items as recurring items.
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Section III The Management’s Discussion and Analysis
I. Company’s Main Businesses during the Reporting Period
During the Reporting Period, the Company’s primary businesses included long range fishing, refrigerated transport, and cold
storage processing and trading. These businesses supported and promoted each other, forming a complete industrial chain.
1. Long range fishing
During the Reporting Period, the Company had 27 long range fishing boats, including 14 large ultra-low temperature tuna
longliners, nine (sets of) large tuna seiners, two medium-sized tralwers, and two squid fishing boats, which operated in the Indian
Ocean, the Atlantic, and the Pacific, respectively. (1) In terms of longline fishing, production was good in the cooperation zones in
the first half of 2024, representing a substantial increase compared with the corresponding period in 2023. (2) Seine fishing
operations include seining in the Atlantic and the central and western Pacific. Specifically, seven (sets of) seiners operated in the
Atlantic and brought considerable yields; another two seiners that were newly built in 2023 were put into operation in the central
and western Pacific and were bringing steadily increased yields. (3) The two squid fishing boats went back to China for dock
repair in late February 2024; thus, their production as of the end of June decreased accordingly. (4) The company is going through
the required formalities for its trawlers, and thus they have not brought any yields.
2. Refrigerated transport
During the Reporting Period, eight large long range transport vessels of the Company featured advanced equipment, good
performance, strict management, and standard services, making them suitable for the long range frozen and refrigerated transport
of aquatic products, meat, poultry, vegetables, and fruits. Their service areas covered some areas and ports of the central and
western Pacific, the Indian Ocean, the Atlantic, North America, and South America. In managing these vessels, the Company
focused on primary responsibilities and businesses, persisted in putting stability and strictness on the top of its agenda, and
continuously improved the management and expertise of leaders and employees; the Company prioritized the building of a talent
team and deepened the “introduction, cultivation, utilization, and retainment” of talents based on its principle of selecting talents
and prioritizing talent development; the Company strengthened staff awareness for the bottom line of production safety and
consolidated the defense line for production safety in accordance with high standards and strict requirements to achieve positive
interactions between high-quality development and high-level safety.
3. Cold storage processing and trade
During the Reporting Period, the Company’s cold storage processing and trade segment was affected by a number of factors,
including global inflation, trade barriers, and Japan’s nuclear wastewater discharge. The tuna consumption market shrank to a
certain extent, causing a drop in companies’ profit margins. The Company focused on strengthening market development and
expanding business. There are more than 20 varieties of tuna processed in this business segment, including big eye, yellow fin,
blue fin, long fin, sword flag, red flag, and black flag. They are processed into tuna slices, chops, and plates. The products are
mostly exported to Japan, the European Union, and South Korea. The Company has passed the HACCP, EU, BRC, MSC, and
BSCI certifications. For domestic sales, the Company promotes “custom services” offline, expands “science communication +
publicity” online, accelerates the development of dual drivers, namely “brand and innovation,” and upgrades its business
centered around the whole industrial chain covering “fishing, transportation, storage, and supply.” The Company combines tuna
and “industrial tourism” to form a new marketing model that integrates “tourism and promotion.”
Business model: The Company conducts business in a centralized and diversified manner.
Market position: The vice-presidential unit of the China Overseas Fisheries Association, and the presidential unit of the
Qingdao Overseas Fisheries Association.
II. Analysis of Core Competitiveness
The Company is a comprehensive and export-oriented company engaged in overseas fishing that was incorporated in July
1999 with the approval of the Shandong Provincial People’s Government. It has a well-established industrial chain and is a leading
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enterprise in Shandong’s overseas fishing industry. As a comprehensive listed fishing company, the Company’s core
competitiveness lies in the following aspects: (1) Through more than 20 years of development, the Company has grown into a
comprehensive fishing enterprise that is engaged in a combination of businesses, including overseas fishing, deep processing,
trading, cold storage logistics, ocean shipping, the development and production of marine biomedicines, and venture capital in the
modern marine industry. The Company’s main businesses involve key links in the industrial chain. The businesses of the
Company’s operating entities are highly associated, which meets the conditions for holistically collaborative operations. This
provides a guarantee for the Company to reform its operations and strengthen and extend the industrial chain. (2) As one of the
earliest companies engaged in overseas fishing in China, the Company started production and operations early from a high ground
with competent human resources and assets. Through years of dedicated operations, the Company has gathered a pool of
professionals specializing in the relevant fields of long range fishing. (3) The long-range fishing industry is part of China’s
strategy of "going global" and building a strong marine country and part of Shandong’s strategy of building a strong marine
province. There are development opportunities from the adjustment of the industrial depth. (4) The Company keeps cultivating the
global sea transport and cold storage markets. It has established long-term, stable cooperation with customers in multiple countries
and regions and built a service brand with distinctive “Zhonglu characteristics,” thus enjoying a high reputation on the Asia-
Pacific refrigerated transport market. (5) The Company has the earliest and largest ultra-low temperature cold storage and raw
food processing plant in China. Also, the China Tuna Exchange and the electronic tuna trading platform system strengthen the
Company’s advantages in tuna processing and trading. (6) The Company carries out long range fishing in the Atlantic, the Pacific,
and the Indian Ocean, reaches most of the world’s major ports with its ocean shipping, and covers many countries with import and
export. With the implementation of the “Belt and Road” strategy, the countries along the “Belt and Road” will have stronger trust
in each other and establish closer cooperation. In addition, the country and the governments at all levels have rolled out a suite of
development plans and industrial preference policies. All these have brought new development opportunities to the Company.
The Company will leverage the aforementioned advantages to pioneer, innovate, forge ahead, and proactively engage itself in
the conversion of old and new growth drivers. It will accelerate strategic transformation, vigorously extend the industrial chain,
and further improve its influence and competitiveness in domestic and even international markets.
III. Analysis of Main Businesses
Overview
Refer to “I.Company’s Main Businesses during the Reporting Period”
Year-on-year changes in major financial data
Unit:RMB
Year-on-year increase
This reporting period Same period last year or decrease Reason for change
Operating income 484,789,276.49 454,219,264.20 6.73%
Operating costs
473,640,736.58 436,204,233.19 8.58%
Sales expenses
2,016,613.86 1,891,807.78 6.60%
Administrative
expenses 25,364,071.67 29,182,163.89 -13.08%
Mainly due to an
Financial expenses 10,097,178.04 -2,923,061.46 445.43% increase in net
exchange loss in this
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period
Income tax expenses
1,103,764.15 1,099,110.53 0.42%
Net cash flow
generated from
-43,495,437.84 -54,465,959.61 20.14%
operating activities
Mainly due to a
Net cash flow
decrease in expenses
generated from
-25,776,093.77 -157,543,076.25 83.64% for the acquisition of
investment activities
fixed assets in this
period
Mainly due to a
Net cash flow
decrease in the cash
generated from
8,440,483.28 159,706,492.74 -94.72% received from
financing activities
borrowings in this
period
Net increase in cash
and cash equivalents -62,324,261.71 -50,682,108.60 -22.97%
Significant changes in the composition or source of profits of the company during the reporting period
Applicable Not applicable
There have been no significant changes in the composition or source of profits of the company during the reporting period.
Composition of operating income
Unit:RMB
This reporting period Same period last year Year-on-year
increase or
Proportion in Proportion in decrease
Amount Amount
operating revenue operating revenue
Total operating
484,789,276.49 100% 454,219,264.20 100% 6.73%
revenue
By industry
Long range fishing 262,545,799.79 54.16% 184,991,696.92 40.73% 41.92%
Refrigerated
69,127,593.84 14.26% 63,548,295.62 13.99% 8.78%
transport
Cold storage
processing and 190,191,169.14 39.23% 242,865,824.14 53.47% -21.69%
trading
Others 4,203,955.92 0.87% 3,395,000.15 0.75% 23.83%
Internal trade
-41,279,242.20 -8.51% -40,581,552.63 -8.93% 1.72%
offset
By product
Long range fishing 262,545,799.79 54.16% 184,991,696.92 40.73% 41.92%
Refrigerated
69,127,593.84 14.26% 63,548,295.62 13.99% 8.78%
transport
Cold storage
processing and 190,191,169.14 39.23% 242,865,824.14 53.47% -21.69%
trading
Others 4,203,955.92 0.87% 3,395,000.15 0.75% 23.83%
Internal trade
-41,279,242.20 -8.51% -40,581,552.63 -8.93% 1.72%
offset
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By region
China 312,701,364.83 64.50% 335,496,370.26 73.86% -6.79%
Foreign countries 172,087,911.66 35.50% 118,722,893.94 26.14% 44.95%
Industries, products, or regions that account for more than 10% of the company's operating revenue or profit
Applicable □ Not applicable
Unit:RMB
Year-on-year Year-on-year Year-on-year
Operating Gross profit increase/decrea increase/decrea increase/decrea
Operating costs
revenue margin se in operating se in operating se in gross
revenue costs profit margin
By industry
Long range
262,545,799.79 282,732,706.25 -7.69% 41.92% 44.12% -1.64%
fishing
Refrigerated
69,127,593.84 53,473,058.76 22.65% 8.78% 4.56% 3.12%
transport
Cold storage
processing and 188,736,731.52 177,242,719.29 6.09% -22.29% -22.44% 0.19%
trading
By product
Long range
262,545,799.79 282,732,706.25 -7.69% 41.92% 44.12% -1.64%
fishing
Refrigerated
69,127,593.84 53,473,058.76 22.65% 8.78% 4.56% 3.12%
transport
Cold storage
processing and 188,736,731.52 177,242,719.29 6.09% -22.29% -22.44% 0.19%
trading
By region
China 312,701,364.83 308,237,864.26 1.43% -6.79% -4.48% -2.39%
Foreign
172,087,911.66 165,402,872.32 3.88% 44.95% 45.70% -0.50%
countries
When the statistical caliber of the company's main business data is adjusted during the reporting period, the company's main
business data for the most recent period adjusted based on the caliber at the end of the reporting period
□Applicable Not applicable
IV. Analysis of Non-main Businesses
□Applicable Not applicable
V. Analysis of Assets and Liabilities
1. Significant changes in asset components
Unit:RMB
This reporting period end Same period last year Explanation of
Increase/Decrea
significant
Proportion in Proportion in se (%)
Amount Amount changes
total assets total assets
Monetary
187,805,181.72 9.31% 262,127,423.03 12.80% -3.49%
capital
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Accounts
61,382,196.41 3.04% 48,424,004.91 2.36% 0.68%
receivable
Inventory 521,250,187.25 25.83% 495,699,535.13 24.20% 1.63%
Investment
26,793,741.05 1.33% 27,456,779.39 1.34% -0.01%
property
Long-term
equity 1,075,192.30 0.05% 1,414,031.32 0.07% -0.02%
investment
1,026,031,712. 1,019,386,437.
Fixed assets 50.84% 49.77% 1.07%
36 83
Construction in
58,721,777.22 2.91% 65,288,052.12 3.19% -0.28%
progress
Right-of-use
46,088.52 0.00% 91,606.72 0.00% 0.00%
assets
Short-term
69,988,305.82 3.47% 58,011,311.42 2.83% 0.64%
borrowings
Contractual
17,245,768.14 0.85% 29,481,400.42 1.44% -0.59%
liabilities
Long-term
388,612,537.15 19.25% 390,665,507.16 19.07% 0.18%
borrowings
2.Major overseas assets
Applicable □Not applicable
Proportion
Control Whether
of overseas
Specific Operation measures to Return on there is any
Reasons of assets in
content of Asset size Location model guarantee assets significant
formation the
assets asset impairment
Company’s
security risk
net assets
HABITAT Wholly-
INTERNA owned Vessel and
331,864,39 Panama Independen 11,626,723.
TIONAL subsidiary personnel 26.27% No
1.72 t operations 46
CORPORA incorporate insurance
TION d overseas
Professiona
l
manageme
ZHONG
Wholly- nt team
GHA
owned stationed -
FOODS 131,226,97 Independen
subsidiary Ghana overseas 3,199,510.7 10.39% No
COMPAN 0.55 t operations
incorporate and vessel 8
Y
d overseas and
LIMITED
personnel
insurance
3. Assets and liabilities measured at fair value
□Applicable Not applicable
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4. Restrictions over asset rights as of the end of the Reporting Period
Item Period-end book value Reasons
Monetary funds 7,002,020.40 Notes deposit
Fixed assets 483,703,062.59 Mortgage loans
Intangible assets 4,440,581.96 Mortgage loans
Total 495,145,664.95
VI. Investment Analysis
1. Overview
Applicable □Not applicable
Investment amount for the Reporting Investment amount for the same period
Changes (%)
Period (RMB) in the previous year (RMB)
36,987,124.13 157,096,476.37 -76.46%
2. Significant equity investment acquired during the Reporting Period
□Applicable Not applicable
3. Significant non-equity investment in progress during the Reporting Period
Applicable □Not applicable
Unit:RMB
Reasons
Total for
actual Total failure
Wheth Invest
Industr invest income to reach
er it is ment
ies ment realized the Disclo
Invest an amoun Expect
involv amoun Project as of the planned Disclosu sure
Project ment invest t for Fund ed
ed in t as at progre end of progress re date index
name metho ment the source invest
the the end ss the and (if any) (if
d in Report ment
invest of the Reporti realize any)
fixed ing
ment Report ng the
assets Period
ing Period expecte
Period d
income
Proces
sing
and
trading The
Zhonglu
of designe
Marine Self- 16,226 108,29 Self-
aquatic d
Innovation constr Yes ,828.3 9,183. owned
produc capacity
Industry uction 0 99 fund
ts and is not
Park
cold reached.
chain
logisti
cs
16,226 108,29
Total -- -- -- ,828.3 9,183. -- -- 0.00 0.00 -- -- --
0 99
4. Financial asset investment
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(1) Securities investment
□Applicable Not applicable
The Company did not have securities investments during the Reporting Period.
(2) Derivative investment
□Applicable Not applicable
The Company did not have derivative investments during the Reporting Period.
5. Use of raised funds
□Applicable Not applicable
The Company had no use of raised funds during the Reporting Period.
VII. Sale of Significant Assets and Equity
1. Sale of significant assets
□Applicable Not applicable
The Company did not sell any significant assets during the Reporting Period.
2. Sale of significant equity
□Applicable Not applicable
VIII. Analysis of Key Shareholding Companies
Applicable □Not applicable
Key subsidiaries and shareholding companies affecting the Company’s net profits by more than 10%
Unit:RMB
Company Main Registered Operating Operating
Company name Total assets Net assets Net profits
type business capital revenue profits
Shandong
Zhonglu
Refrigerate 37,304,775. 26,628,292. 11,491,328. 1,558,765.8 1,335,686.1
Aquatic Subsidiary 22,505,600.
d transport 84 38 47 3 2
Shipping Co., 00
Ltd
Shandong
Zhonglu
Food 506,533,71 355,426,54 190,298,32 4,352,535.3 3,478,492.3
Oceanic Subsidiary 104,322,30
processing 8.14 7.57 3.88 7 1
(Yantai) Food 0.00
Co., Ltd.
HABITAT
INTERNATIO
Refrigerate 331,864,39 239,648,32 60,692,869. 11,626,723. 11,626,723.
NAL Subsidiary 12,476,145.
d transport 1.72 3.08 13 46 46
CORPORATIO 60
N
Shandong
Zhonglu - -
Long range 559,932,79 371,160,07 105,423,31
Haiyan Subsidiary 221,617,34 32,662,179. 32,661,759.
fishing 1.73 3.67 7.17
Oceanic 9.00 50 69
Fisheries Co.,
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Ltd.
Acquisition and disposal of subsidiaries during the Reporting Period
□Applicable Not applicable
Information of key shareholding companies
Shandong Zhonglu Aquatic Shipping Co., Ltd .: Operating profits for the Reporting Period were RMB1,558,765.83, down
RMB175,200 year-on-year;
Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd.: Operating profits for the Reporting Period were RMB4,352,535.37, down
29.19% year-on-year, which was mainly because market consumption demand in Japan, Europe and America kept shrinking,
causing a decrease in revenue and profits from the processing and trade of aquatic products;
HABITAT INTERNATIONAL CORPORATION: Operating profits for the Reporting Period reached RMB11,626,723.46, up
17.35% year-on-year, which was mainly due to additional lease income from new refrigerated transport vessels;
Shandong Zhonglu Haiyan Oceanic Fisheries Co., Ltd.: Operating profits for the Reporting Period were RMB-32,662,179.50,
down 123.52%, which was mainly because market consumption demand in Japan, Europe, and America kept shrinking, causing a
marked decrease in the market price of tuna year-on-year.
IX. Structured Entities Controlled by the Company
□Applicable Not applicable
X. Risks facing the Company and countermeasures
1. Risk of fishing resource fluctuations: Fishing resources usually fluctuate, and sometimes the fluctuations are big. Greater
decreases in fishing resources will have a greater impact on the Company’s profits. Cyclic changes, climates, hydrological
conditions, and other relevant conditions are all likely to cause fluctuations in fishing resources.
Countermeasures: develop new fishing grounds, perform scientific dispatching, upgrade fishing production equipment, and
gradually update production vessels; make scientific and reasonable arrangements for logistics support for vessel maintenance,
equipment repair, supplies, baits, spare parts, and personnel, and ensure the ship departure rate.
2. Risk of price fluctuations. In the first half of 2024, the price of tuna as a raw material continued to decline, dropping by 10%.
Meanwhile, the depreciation of Japanese yen points to a risk of decreasing trade value.
Countermeasures: accelerate the building of a new paradigm focusing on domestic circulation with mutual promotion between
domestic and international circulations; precisely target the domestic market, develop cooked products that accommodate
consumers’ needs, and expand domestic sales channels.
3. Safety risk. The aging of vessels will cause productivity and market competitiveness to drop.
Countermeasures: proactively drive the replacement of old vessels and optimize asset allocation to prevent potential safety
hazards.
XI. Implementation of the “Increasing Both Quality and Profit” Action Plan
Whether the Company disclosed an announcement on the “Increasing Both Quality and Profit” action plan.
□Yes No
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Section IV Corporate Governance
I. Relevant information on annual and extraordinary shareholders' meetings held during
the reporting period
1. Situation of the shareholders' meeting during this reporting period
Investor
Session Type Date of holding Date of disclosing Resolution
participation ratio
Refer to the
Announcement on
the Resolution of
the First
Extraordinary
First extraordinary General Meeting
Extraordinary
general meeting of 47.35% April 25, 2024 April 26, 2024 of 2024
general meeting
2024 (Announcement
No. 2024-09)
disclosed in the
China Securities
Journal and
CNINFO
Refer to the
Announcement on
the Resolution of
the Annual
General Meeting
Annual general Annual general of 2023
47.38% May 30, 2024 May 31, 2024
meeting of 2023 meeting (Announcement
No. 2024-23)
disclosed in the
China Securities
Journal and
CNINFO
Refer to the
Announcement on
the Resolution of
the Second
Extraordinary
Second
General Meeting
extraordinary Extraordinary
47.30% June 24, 2024 June 25, 2024 of 2024
general meeting of general meeting
(Announcement
2024
No. 2024-26)
disclosed in the
China Securities
Journal and
CNINFO
2. Preferred shareholders with restored voting rights request to convene an extraordinary shareholders'
meeting
□Applicable Not applicable
II. Information on the directors, supervisors, and senior management of the company
Applicable □Not applicable
Name Position Type Date Reason
Liang Shanglei Chairman, Director Elected April 25, 2024 Work adjustment
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Zeng Xianzhong Director Elected April 25, 2024 Work adjustment
Wu Hengguang Independent director Elected April 25, 2024 Work adjustment
Chairman of the April 25, 2024 Work adjustment
Zhou Yi Supervisory Board, Elected
Supervisor
Lu Lianxing Director Leaving office April 25, 2024 Work adjustment
Xin Li Director Leaving office April 25, 2024 Work adjustment
Wang Shouhai Independent director Leaving office April 25, 2024 Work adjustment
Chairman of the April 25, 2024 Work adjustment
Liu Zhihui Leaving office
Supervisory Board
III. The Company's profit distribution and capitalization of capital reserves
□Applicable Not Applicable
The Company plans not to distribute cash dividends or bonus shares, or increase share capital from public reserves.
IV. Implementation of the Company's equity incentive plan, employee stock ownership plan
or other employee incentive measures
□Applicable Not Applicable
During the reporting period, the Company had no equity incentive plan, employee stock ownership plan or other employee
incentive measures and their implementation.
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Section V Environmental and Social Responsibility
I. Major environmental issues
Whether the listed company and its subsidiaries belong to the key pollutant discharge enterprises announced by the environmental
protection department
□ Yes No
Administrative penalties due to environmental issues during the reporting period
The impact on the
The company's
Company or Reason for production and
Violation Penalty result corrective
Subsidiary Name punishment operation of listed
measures
companies
not applicable not applicable not applicable not applicable not applicable not applicable
Other environmental information disclosed by reference with key pollutant discharge units
not applicable
Measures and effects taken to reduce its carbon emissions during the reporting period
□Applicable Not Applicable
Reasons for not disclosing other environmental information
The Company and its subsidiaries do not belong to the key pollutant discharge enterprises announced by the environmental
protection department.There is no other environmental information that needs to be disclosed.
II. Social Responsibility
(I) Supporting rural revitalization
The Company took the initiative to serve the overall interests of the country. It sent a leader to join the provincial first
secretary’s work team and station in Xiaojing Village, Dongming County, Heze, to help consolidate the achievements in poverty
alleviation and promote rural revitalization on all fronts. The Company played a positive role in promoting high-quality
improvement to the work related to agriculture, rural areas and farmers in the rural area.
(II) Contribution to charity
The Company proactively carried out activities to serve the interests of the elderly, children, people with difficulties, the public,
and people in need of psychological counseling and emotional solace. The Company donated more than 3,000 packs of tuna
products to over 150 children at the Qingdao Children’s Welfare Home. It effectively carried out activities to “do something
concrete for the public,” vigorously promoted the Lei Feng spirit, and organized leaders and employees to perform volunteer
services at communities, including imparting health knowledge and cleaning buildings, and to participate in charity activities,
including donating books and stuff, as part of the Company’s contribution to cultural and ethical development in the new era.
(III) Practicing humanistic care
The Company organized visits to 230 front line workers and crew members’ families and extended assistance to three
employees with difficulties. It successfully held the Spring Festival Gala under the theme “Initiating a Glorious Chapter in the
Year of the Dragon and Embarking on a New Journey.” The Company carried out public cultural activities in diverse forms and
enriched cultural activities for its leaders and employees to foster good vibes.
In the first half of 2024, Shandong Zhonglu Oceanic’s CCYL committee volunteer service team won the title “Qingdao
Meritorious Organization for Youth Volunteer Services,” and Shandong Zhonglu Oceanic (Yantai) Food’s “Maker Space” youth
commando won the title “Provincial Enterprise Youth Civilization.”
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Section VI Important Matters
I. Commitments fulfilled by the Company’s actual controller, shareholders, related parties,
acquirers, the Company and other relevant parties, and commitments that commitments
that have not been fully fulfilled as of the end of the reporting period
□Applicable Not applicable
There are no commitments made by the actual controllers, shareholders, related parties, acquirers, and other related parties of the
company during the reporting period that have been fulfilled or have not been fulfilled by the end of the reporting period.
II. Non-operating capital occupation of listed companies by controlling shareholders and
other related parties
□Applicable Not applicable
During the reporting period of the Company, there was no non-operating capital occupation of listed companies by controlling
shareholders and other related parties.
III. Illegal external guarantees
□Applicable Not applicable
The Company had no external guarantees in violation of regulations.
IV. Appointment and dismissal of accounting firms
Has the semi-annual financial report been audited
□ Yes No
The company's semi-annual report has not been audited.
V. Explanation of the board of directors, board of supervisors on the “non-standard audit
report” of the accounting firm for the reporting period
□Applicable Not applicable
VI. Explanation by the board of directors on the relevant situation of the "non-standard
audit report" of the previous year
Applicable Not applicable
VII. Matters related to bankruptcy and reorganization
□Applicable Not applicable
During the reporting period, there were no matters related to bankruptcy and reorganization of the Company.
VIII. Litigation matters
Major litigation and arbitration matters
□Applicable Not applicable
During this reporting period, the company has no major litigation or arbitration matters.
Other litigation matters
□Applicable Not applicable
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IX. Punishment and rectification
□Applicable Not applicable
The Company did not receive any punishment or request for rectifications during the Reporting Period.
X. Integrity status of the Company and its controlling shareholders and actual controllers
Applicable □ Not applicable
The Company, its controlling shareholders and actual controllers did not fail to perform effective court judgments, or owe large
amounts of debts that were due and unpaid.
XI. Significant connected transactions
1. Connected transactions related to daily operations
□Applicable Not applicable
During the reporting period of the Company, there was no connected transaction related to daily operation.
2. Connected transactions in the acquisition and sale of assets or equity
□Applicable Not applicable
During the reporting period, there was no connected transaction involving asset or equity acquisition or sale.
3. Connected transactions of joint foreign investment
□Applicable Not applicable
During the reporting period, there was no connected transaction involving joint external investment.
4. Related creditor's rights and debts
□Applicable Not applicable
During the reporting period, the company had no related creditor's rights and debts.
5. Contacts with associated financial companies t
□Applicable Not applicable
There is no deposit, loan, credit or other financial business between the Company and associated financial company or the related
party.
6. Communications between financial companies controlled by the Company and related parties
□Applicable Not applicable
There is no deposit, loan, credit or other financial business between the financial company controlled by the Company and related
parties.
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7. Other major connected transactions
□Applicable Not applicable
There were no other significant related party transactions during the reporting period of the company.
XII. Significant contracts and their performance
1. Matters concerning trusteeship, contracting and leasing
(1) Trusteeship
Applicable □ Not applicable
Explanation on trusteeship
April 2022 , the Company has been entrusted by Shandong State-owned Assets Investment Holding Co., Ltd. to manage its
subsidiary Zhongtai Xincheng Asset Management Co., Ltd. (hereinafter referred to as "Zhongtai Xincheng"); as the shareholder
proxy of Zhongtai Xincheng, the Company shall comply with relevant provisions of the entrusted management agreement.
Zhongtai Xincheng is not included in the scope of the Company's consolidated statements.
Projects that bring profit or loss to the Company amounting to more than 10% of the Company's total profit in the reporting period
□Applicable Not applicable
During the reporting period of the Company, there was no trusteeship project which brings profit or loss for the Company
amounting to more than 10% of the total profit of the Company.
(2) Contracting status
□Applicable Not applicable
There was no contracting in the reporting period of the Company.
(3) Lease situation
□Applicable Not applicable
There was no lease in the reporting period of the Company.
2. Major guarantee
□Applicable Not applicable
There was no major guarantee in the reporting period of the Company.
3.Entrusted financial management
□Applicable Not applicable
There was no entrusted wealth management in the reporting period of the Company.
4. Other major contracts
□Applicable Not applicable
There were no other major contracts in the reporting period of the Company.
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XIII. Notes to other major items
□Applicable Not applicable
During the Reporting Period, the Company did not have other significant events to explain.
XIV. Significant events of the Company's subsidiaries
□Applicable Not applicable
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Section VII Changes in Shares and Information on Shareholders
I. Changes in shares
1. Changes in shares
Unit: share
Before this change Increase or decrease in this change (+, -) After this change
Issuance Provident
Proportio Bonus Proportio
Quantity of new fund Other Subtotal Quantity
n shares n
shares transfer
I. Unlisted
128,071,3 128,071,3
tradable 48.13% 48.13%
20 20
shares
1.
128,071,3 128,071,3
Promoter 48.13% 48.13%
20 20
shares
Of
which: 127,811,3 127,811,3
48.04% 48.04%
shares held 20 20
by the state
Shares
held by
domestic 260,000 0.09% 260,000 0.09%
legal
persons
Shares
held by
foreign
legal
persons
Other
2.
Raising
legal person
shares
3.
Internal
staff shares
4.
Preferred
stock or
other
II. Listed
138,000,0 138,000,0
tradable 51.87% 51.87%
00 00
shares
1. RMB
ordinary
shares
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2.
Foreign 138,000,0 138,000,0
51.87% 51.87%
shares listed 00 00
in China
3.
Foreign
shares listed
overseas
4. Others
III. Total
266,071,3 266,071,3
number of 100.00% 100.00%
20 20
shares
Reason for Share Change
□Applicable Not applicable
Approval status of shareholding changes
□Applicable Not applicable
Transfer status of share changes
□Applicable Not applicable
Implementation progress of share repurchase
□Applicable Not applicable
Implementation progress of reducing share repurchase through centralized bidding
□Applicable Not applicable
The impact of shareholding changes on financial indicators such as basic earnings per share, diluted earnings per share, and net
assets per share attributable to ordinary shareholders of the Company in the last year and the latest period
□Applicable Not applicable
Other content that the Company deems necessary or required by securities regulators to disclose
□Applicable Not applicable
2. Changes in restricted shares
□Applicable Not applicable
II. Securities Issuance and Listing
□Applicable Not applicable
III. Number of shareholders and shareholding status of the Company
Unit: share
Total number of preferred
Total number of ordinary shareholders with voting rights
shareholders at the end of the 9,353 restored at the end of the 0
reporting period reporting period (if any) (see
note 8)
Shareholding of ordinary shareholders holding more than 5% of the shares or the top 10 ordinary shareholders (excluding shares lent through securities lending)
Shareholder Nature of Shareholding Number of Increase/decr Number of Number of Pledge, Mark or Frozen Situation
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name shareholders ratio common ease changes unlisted and listed and
shares held at during the non- circulating
the end of the reporting circulating ordinary Share Status Quantity
reporting period ordinary shares held
period shares held
Shandong
State-owned
Assets State-owned 125,731,32 125,731,32 not
47.25%
Investment legal person 0 0 applicable
Holding Co.,
Ltd.
Chen Foreign not
2.16% 5,760,427 5,760,427
Tianming natural person applicable
Domestic not
Zhu Shuzhen 2.03% 5,406,447 404,401 5,406,447
natural person applicable
Domestic not
Cai Yujiu 1.75% 4,668,300 4,668,300
natural person applicable
Zhan Domestic not
1.42% 3,782,715 928,200 3,782,715
Changcheng natural person applicable
Domestic not
Chen Cirou 1.23% 3,260,000 1,305,150 3,260,000
natural person applicable
China
National
State-owned not
Heavy Duty 0.73% 1,950,000 1,950,000
legal person applicable
Truck Group
Co., Ltd.
GUOTAI
JUNAN
SECURITIES Foreign legal not
0.72% 1,908,875 -852,150 1,908,875
（HONG person applicable
KONG）
LIMITED
Domestic not
Lin Mingyu 0.56% 1,500,001 1,500,001
natural person applicable
Domestic not
Cao Yifan 0.44% 1,180,000 -100,000 1,180,000
natural person applicable
Situation of strategic investors
or general legal persons
becoming the top 10 ordinary
shareholders due to the not applicable
placement of new shares (if
any) (see Note 3)
Explanation on the related The Company does not know whether it has an associated relationship or is a person acting in concert as stipulated in the
relationship or concerted action "Administrative Measures for Information Disclosure of Shareholding Changes in Listed Companies".
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of aforesaid shareholders
Explanation of the above-
mentioned shareholders
involved in entrusted/entrusted none
voting rights and waiver of
voting rights
Special instructions for
repurchase accounts among the
none
top 10 shareholders (if any)
(see Note 11)
Shareholding of the top 10 circulating common stock shareholders (excluding shares lent through securities and executive lock-up shares)
Number of listed and circulating common shares held at the end of the reporting Type of shares
Shareholder name period Type of
Quantity
shares
Domestic
Chen Tianming 5,760,427 listed foreign 5,760,427
shares
Domestic
Zhu Shuzhen 5,406,447 listed foreign 5,406,447
shares
Domestic
Cai Yujiu 4,668,300 listed foreign 4,668,300
shares
Domestic
Zhan Changcheng 3,782,715 listed foreign 3,782,715
shares
Domestic
Chen Cirou 3,260,000 listed foreign 3,260,000
shares
GUOTAI JUNAN Domestic
SECURITIES（HONG 1,908,875 listed foreign 1,908,875
KONG）LIMITED shares
Domestic
Lin Mingyu 1,500,001 listed foreign 1,500,001
shares
Domestic
Cao Yifan 1,180,000 listed foreign 1,180,000
shares
Domestic
Zhan Hanbin 1,056,044 listed foreign 1,056,044
shares
Domestic
Huang Jiayi 1,027,687 listed foreign 1,027,687
shares
Note for the association or
concerted action between the
top 10 shareholders of ordinary
shares with unrestricted sales
The Company is not aware of whether the aforesaid shareholders have any associated relationship or are persons acting in
conditions, as well as between concert as stipulated in the "Administrative Measures for the Disclosure of Information on Changes in Shareholding of
the top 10 shareholders of Shareholders of Listed Companies".
ordinary shares with
unrestricted sales conditions
and the top 10 shareholders of
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ordinary shares
Note for the top 10 ordinary
shareholders participating in
margin trading (if any) (see none
Note 4)
Participation in the lending of shares through securities lending by shareholders holding more than 5% of the shares, the top 10
shareholders, and the top 10 holders of unlimited circulating shares
□Applicable Not applicable
Change from the previous period resulting from securities lending/returning by the top 10 shareholders and the top 10 holders of
unlimited circulating shares
□Applicable Not applicable
Whether the Company’s top 10 shareholders of common shares and top 10 shareholders of common shares not subject to sales
restrictions conducted agreed repurchase transactions during the reporting period
□ Yes No
The Company's top 10 shareholders of common shares and top 10 shareholders of common shares not subject to sales restrictions
did not conduct agreed repurchase transactions during the reporting period.
IV. Changes in Shareholding of Directors, Supervisors, and Senior Management
□ Applicable Not applicable
There has been no change in shareholding situation of the company's directors, supervisors, and senior management personnel
during the reporting period, as detailed in the 2023 annual report.
V. Changes in controlling shareholders or actual controllers
Changes in controlling shareholders during the reporting period
□ Applicable Not applicable
There has been no change in the controlling shareholder of the company during the reporting period.
Changes in actual controller during the reporting period
□ Applicable Not applicable
There has been no change in the actual controller of the company during the reporting period.
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Section VIII Preferred Shares
□Applicable Not applicable
During the reporting period, the Company had no preferred shares.
29
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Section IX Bonds
□Applicable Not applicable
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Section X Financial Report
I. Audit Report
Has the semi-annual report been audited
□ Yes No
The company's semi-annual financial report has not been audited.
II. Financial Statements
The monetary unit of the financial statements in the financial notes is: RMB
1.Consolidated balance sheet
Prepared by: Shandong Zhonglu Oceanic Fisheries Co., Ltd.
June 30, 2024
Unit:RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 187,805,181.72 262,127,423.03
Settlement provisions
Lending funds
Trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 61,382,196.41 48,424,004.91
Accounts receivable financing
Prepayments 26,705,276.00 26,126,976.75
Premium receivable
Accounts receivable reinsurance
Reinsurance contract reserve receivable
Other receivables 10,272,036.60 6,596,879.89
Including: Interest receivable
Dividends receivable
Buying back the sale of financial assets
Inventory 521,250,187.25 495,699,535.13
Including: data resources
Contract assets
Assets held for sale
Non-current assets maturing within one
year
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Other current assets 8,875,628.27 14,384,969.64
Total current assets 816,290,506.25 853,359,789.35
Non-current assets:
Issuance of loans and advances
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 1,075,192.30 1,414,031.32
Other equity instrument investments
Other non-current financial assets
Investment real estate 26,793,741.05 27,456,779.39
Fixed assets 1,026,031,712.36 1,019,386,437.83
Construction in progress 58,721,777.22 65,288,052.12
Productive biological assets
Oil and gas assets
Right of use assets 46,088.52 91,606.72
Intangible assets 60,177,618.51 60,956,382.69
Including: data resources
Development expenditure
Including: data resources
Goodwill
Long-term deferred expenses 6,336,164.53 3,354,279.19
Deferred tax assets 1,385,934.20 1,425,048.80
Other non-current assets 21,433,284.59 15,402,660.37
Total non-current assets 1,202,001,513.28 1,194,775,278.43
Total assets 2,018,292,019.53 2,048,135,067.78
Current liabilities:
Short-term loans 69,988,305.82 58,011,311.42
Borrowing from the Central Bank
Borrowing funds
Trading financial liabilities
Derivative financial liabilities
Notes payable 22,505,051.00 35,000,000.00
Accounts payable 106,209,032.22 89,326,349.08
Advance payment 1,881,849.82 1,776,439.64
Contract liabilities 17,245,768.14 29,481,400.42
Financial assets sold for repurchase
Deposit taking and interbank deposits
Acting trading securities
Acting underwriting securities
Employee compensation payable 60,512,057.74 63,219,358.85
Taxes and fees payable 2,693,555.08 5,665,448.27
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Other payables 20,445,473.48 19,578,219.96
Including: Interest payable
Dividends payable 1,616,659.01 1,616,659.01
Handling fees and commissions payable
Accounts payable reinsurance
Held for sale liabilities
Non-current liabilities maturing within
10,779,833.34 8,837,283.90
one year
Other current liabilities 22,032.89 6,256.07
Total current liabilities 312,282,959.53 310,902,067.61
Non-current liabilities:
Insurance contract reserves
Long-term loans 388,612,537.15 390,665,507.16
Bonds payable
Including: Preferred stock
Perpetual bonds
Lease liabilities
Long-term accounts payable
Long-term employee compensation
539,095.80 543,215.85
payable
Estimated liabilities
Deferred income 51,161,432.48 51,980,968.73
Deferred tax liability 2,401,665.08 2,476,855.62
Other non-current liabilities
Total non-current liabilities 442,714,730.51 445,666,547.36
Total liabilities 754,997,690.04 756,568,614.97
Owner's equity:
Capital stock 266,071,320.00 266,071,320.00
Other equity instruments
Including: Preferred stock
Perpetual bonds
Capital reserve 295,620,272.02 295,620,272.02
Less: Treasury stock
Other comprehensive income -2,045,384.35 -3,370,081.48
Special reserves 71,221.58 1,572.48
Surplus reserves 21,908,064.19 21,908,064.19
General risk provision
Undistributed profits 431,789,927.60 449,363,748.93
Total owner's equity attributable to the
1,013,415,421.04 1,029,594,896.14
parent company
Minority shareholders' equity 249,878,908.45 261,971,556.67
Total owner's equity 1,263,294,329.49 1,291,566,452.81
Total liabilities and owner's equity 2,018,292,019.53 2,048,135,067.78
Legal representative: Wang Huan, Person in charge of accounting work: Fu Chuanhai, Person in charge of accounting agency: Lei
Lixin
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2. Balance sheet of the parent company
Unit:RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 31,057,612.28 44,741,230.62
Trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 11,397,456.14 4,435,572.18
Accounts receivable financing
Prepayments 9,452,524.56 8,580,637.18
Other receivables 204,654,086.63 198,681,271.55
Including: Interest receivable
Dividends receivable 79,137,061.83 79,137,061.83
Inventory 113,639,316.72 114,734,732.97
Including: data resources
Contract assets
Assets held for sale
Non-current assets maturing within one
year
Other current assets 1,347,853.33 1,246,348.88
Total current assets 371,548,849.66 372,419,793.38
Non-current assets:
Debt investment
Other debt investments
Long-term receivables 3,610,495.51 3,364,469.81
Long-term equity investment 328,189,455.23 328,189,455.23
Other equity instrument investments
Other non-current financial assets
Investment real estate 26,793,741.05 27,456,779.39
Fixed assets 497,691,663.30 478,978,332.36
Construction in progress 22,793,103.19
Productive biological assets
Oil and gas assets
Right of use assets
Intangible assets 30,399.79 63,265.27
Including: data resources
Development expenditure
Including: data resources
Goodwill
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Long-term deferred expenses 1,844,178.03 1,943,863.35
Deferred tax assets
Other non-current assets
Total non-current asset 858,159,932.91 862,789,268.60
Total assets 1,229,708,782.57 1,235,209,061.98
Current liabilities:
Short-term loans 20,000,000.00
Trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 29,851,782.70 20,928,446.50
Advance receipts 1,881,849.82 1,776,439.64
Contract liabilities 10,156,591.15 15,236,924.77
Employee compensation payable 29,531,423.18 23,238,500.79
Taxes and fees payable 353,603.62 1,048,588.31
Other payables 175,312,491.86 194,456,754.42
Including: Interest payable
Dividends payable
Held for sale liabilities
Non-current liabilities maturing within
10,779,833.34 8,837,283.90
one year
Other current liabilities
Total current liabilities 277,867,575.67 265,522,938.33
Non-current liabilities:
Long-term loans 388,612,537.15 390,665,507.16
Bonds payable
Including: Preferred stock
Perpetual bonds
Lease liabilities
Long-term accounts payable
Long-term employee compensation
463,135.85 463,135.85
payable
Estimated liabilities
Deferred income 39,096,045.20 39,774,011.30
Deferred tax liability
Other non-current liabilities
Total non-current liabilities 428,171,718.20 430,902,654.31
Total liabilities 706,039,293.87 696,425,592.64
Owner's equity:
Capital stock 266,071,320.00 266,071,320.00
Other equity instruments
Including: Preferred stock
Perpetual bonds
35
Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Capital reserve 279,115,900.17 279,115,900.17
Less: Treasury stock
Other comprehensive income
Special reserve
Surplus reserves 19,184,672.34 19,184,672.34
Undistributed profits -40,702,403.81 -25,588,423.17
Total owner's equity 523,669,488.70 538,783,469.34
Total liabilities and owner's equity 1,229,708,782.57 1,235,209,061.98
3.Consolidated income statement
Unit:RMB
Item Half year of 2024 Half year of 2023
484,789,276.49 454,219,264.20
I. Total operating income
Including: Operating income 484,789,276.49 454,219,264.20
Interest income
Earned premium
Handling fee and commission
income
II. Total operating costs 513,432,973.75 466,379,504.41
Including: Operating costs 473,640,736.58 436,204,233.19
Interest expenses
Handling fees and commission
expenses
Surrender deposit
Net compensation expenses
Net amount of insurance
liability reserve withdrawn
Expenditures dividend policy
Reinsurance expenses
Taxes and surcharges 1,468,609.58 1,408,885.26
Sales expenses 2,016,613.86 1,891,807.78
Administrative expenses 25,364,071.67 29,182,163.89
R&D expenses 845,764.02 615,475.75
Financial expenses 10,097,178.04 -2,923,061.46
Including: Interest expenses 6,656,533.63 4,110,188.21
Interest income 351,236.93 908,757.25
Plus: Other income 2,078,090.69 1,528,046.31
Investment income (loss , using
-382,302.13 -253,775.04
"-")
Including: Investment income
-338,839.02 -253,775.04
from associates and joint ventures
Income from derecognition of
financial assets measured at amortized
36
Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
cost
Exchange gains (losses, using "-
")
Net exposure hedging income
(loss, using "-")
Income from changes in fair
value (loss , using "-")
Credit impairment loss (loss ,
-895,417.87 -289,385.20
using "-")
Asset impairment loss (loss ,
-1,043,419.52 -2,699,370.85
using "-")
Asset disposal income (loss ,
using "-")
III. Operating profit (loss , using
-28,886,746.09 -13,874,724.99
"-")
Plus: Non-operating income 419.92 529,150.50
Less: Non-operating expenses 744.82 2,714.51
IV. Total profit (total loss, using "-") -28,887,070.99 -13,348,289.00
Less: Income tax expenses 1,103,764.15 1,099,110.53
V. Net profit (net loss, using "-") -29,990,835.14 -14,447,399.53
(I)Classified by business continuity
1. Net profit from continuing operations
-29,990,835.14 -14,447,399.53
(net loss , using "-")
2. Net profit from discontinuing
operations (net loss , using "-")
(II) Classification by ownership
1.Net profit attributable to shareholders
of the parent company (net loss, using "- -17,573,821.33 -10,201,333.02
")
2.Minority shareholder gains and losses
-12,417,013.81 -4,246,066.51
(net loss, using "-")
VI. After-tax net amount of other
1,649,062.72 8,720,992.54
comprehensive income
After-tax net amount of other
comprehensive income attributable to the 1,324,697.13 6,789,384.42
owner of the parent company
Other comprehensive income that
cannot be reclassified into profit or loss
1.Changes in remeasurement of defined
benefit plans
2.Other comprehensive income that
cannot be transferred to gain or loss
under the equity method
3. Changes in fair value of other equity
instrument investments
4. Changes in fair value of enterprise's
own credit risk
5.Others
Other comprehensive income to be
1,324,697.13 6,789,384.42
reclassified into profit or loss
37
Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
6.Other comprehensive income that can
be transferred to profit or loss under the
equity method
7.Changes in fair value of other credit
investments
8.Reclassification of financial assets into
other comprehensive income
9.Credit impairment provision of other
debt investments
10. Cash flow hedging reserves
11. Translation differences in foreign
1,324,697.13 6,789,384.42
currency financial statements
12. Others
13. After-tax net amount of other
comprehensive income attributable to 324,365.59 1,931,608.12
minority shareholders
VII. Total comprehensive income -28,341,772.42 -5,726,406.99
Total comprehensive income attributable
-16,249,124.20 -3,411,948.60
to the owners of the parent company
Total comprehensive income attributable
-12,092,648.22 -2,314,458.39
to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share -0.0660 -0.0383
(II) Diluted earnings per share -0.0660 -0.0383
Legal representative: Wang Huan, Person in charge of accounting work: Fu Chuanhai, Person in charge of accounting agency: Lei
Lixin
4. Profit statement of the parent company
Unit:RMB
Item Half year of 2024 Half year of 2023
1. Operating income 162,995,442.13 67,009,605.79
Less: Operating costs 156,611,815.87 68,186,430.48
Taxes and surcharges 707,041.32 650,364.27
Sales expenses 299,065.96 377,736.62
Administrative expenses 14,055,589.35 14,849,393.19
R&D expenses 264,416.64
Financial expenses 7,703,644.77 1,370,887.76
Including: Interest expenses 6,997,390.59 4,595,212.38
Interest income 127,087.73 729,369.72
Plus: Other income 1,443,142.61 18,491.94
Investment income (loss , using
-8,206.67
"-")
Including: Investment income
from associates and joint ventures
Income from derecognition of financial
assets measured at amortized cost (loss ,
using "-")
38
Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Net exposure hedging income
(loss , using "-")
Income from changes in fair value
(loss , using "-")
Credit impairment loss (loss ,
97,215.09 22,331.21
using "-")
Asset impairment loss (loss ,
using "-")
Asset disposal income (loss ,
using "-")
II. Operating profit (loss , using "-") -15,113,980.75 -18,384,383.38
Plus: Non-operating income 0.11 330.00
Less: Non-operating expenses 2,714.51
III. Total profit (total loss , using "-") -15,113,980.64 -18,386,767.89
Less: Income tax expenses
IV. Net profit (net loss , using "-") -15,113,980.64 -18,386,767.89
(I) Net profit from continuing operations
-15,113,980.64 -18,386,767.89
(net loss , using "-")
(2) Net profit from discontinuing
operations (net loss, using "-")
V.After-tax net amount of other
comprehensive income
(I) Other comprehensive income that
cannot be reclassified into profit or loss
1.Remeasured changes in defined benefit
plans
2.Other comprehensive income that
cannot be transferred to gain or loss
under the equity method
3.Changes in fair value of other equity
instrument investments
4.Changes in fair value of enterprise's
own credit risk
5. Others
(II) Other comprehensive income to be
reclassified into profit or loss
1. Other comprehensive income that can
be transferred to profit or loss under the
equity method
2.Changes in fair value of other credit
investments
3.Financial assets reclassified into other
comprehensive income
4.Provision for credit impairment of
other debt investments
5.Cash flow hedging reserves
6. Translated differences in foreign
currency financial statements
7. Others
VI. Total comprehensive income -15,113,980.64 -18,386,767.89
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
39
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5.Consolidated cash flow statement
Unit:RMB
Item Half year of 2024 Half year of 2023
I. Cash flow generated from operating
activities:
Cash received from selling goods and
443,747,004.74 466,860,334.47
providing services
Net increase in customer deposits and
interbank deposits and loans
Net increase in borrowings from the
Central Bank
Net increase in borrowing funds from
other financial institutions
Cash received from original insurance
contract premiums
Net cash received from reinsurance
business
Net increase in insured deposits and
investments
Cash received for interest, handling
fees, and commissions
Net increase in borrowing funds
Net increase in repurchase business
funds
Net cash received from proxy trading
of securities
Received refunds of taxes 11,605,939.68 14,575,860.89
Received other cash related to
2,612,016.89 3,850,915.87
operating activities
Subtotal of cash inflows from
457,964,961.31 485,287,111.23
operating activities
Cash paid for purchasing goods and
395,663,530.87 438,723,024.15
receiving services
Net increase in customer loans and
advances
Net increase in deposits with Central
Bank and interbank funds
Cash paid for compensation under the
original insurance contract
Net increase in lending funds
Cash paid for interest, handling fees,
and commissions
Cash paid for policy dividends
Cash paid to and on behalf of
86,902,099.84 75,715,483.99
employees
Various taxes and fees paid 6,912,094.34 7,762,355.65
Other cash payments related to
11,982,674.10 17,552,207.05
operating activities
Subtotal of cash outflows from
501,460,399.15 539,753,070.84
operating activities
Net cash flow generated from -43,495,437.84 -54,465,959.61
40
Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
operating activities
II. Cash flow generated from investment
activities
Cash received from investment recovery
Cash received from obtaining investment
income
Net cash received from disposal of fixed
assets, intangible assets, and other long-
term assets
Net cash received from disposal of
subsidiaries and other business units
Received other cash related to
investment activities
Subtotal of cash inflows from investment
activities
Cash paid for the purchase and
construction of fixed assets, intangible 25,776,093.77 157,543,076.25
assets, and other long-term assets
Cash paid for investment
Net increase in pledged loans
Net cash paid for acquiring subsidiaries
and other business units
Other cash payments related to
investment activities
Subtotal of cash outflows from
25,776,093.77 157,543,076.25
investment activities
Net cash flow generated from investment
-25,776,093.77 -157,543,076.25
activities
III. Cash flow generated from financing
activities:
Cash received from absorbing
investments
Including: Cash received from
subsidiaries absorbing minority
shareholder investments
Cash received from obtaining loans 34,180,000.00 170,430,361.46
Received other cash related to
5,416,000.88
financing activities
Subtotal of cash inflows from
39,596,000.88 170,430,361.46
financing activities
Cash paid for debt repayment 21,989,916.67 3,200,000.00
Cash paid for distributing dividends,
9,165,600.93 7,184,959.72
profits, or paying interest
Including: Dividends and profits paid
by subsidiaries to minority shareholders
Other cash payments related to
338,909.00
financing activities
Subtotal of cash outflows from
31,155,517.60 10,723,868.72
financing activities
Net cash flow generated from
8,440,483.28 159,706,492.74
financing activities
IV. The impact of exchange rate
-1,493,213.38 1,620,434.52
changes on cash and cash equivalents
41
Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
V. Net increase in cash and cash
-62,324,261.71 -50,682,108.60
equivalents
Plus: Opening balance of cash and cash
243,127,423.03 227,264,342.31
equivalents
VI. Closing balance of cash and cash
180,803,161.32 176,582,233.71
equivalents
6. Cash flow statement of the parent company
Unit:RMB
Item Half year of 2024 Half year of 2023
I. Cash flow generated from operating
activities:
Cash received from selling goods and
120,790,361.54 51,088,820.85
providing services
Received refunds of taxes
Received other cash related to operating
1,038,826.64 723,823.62
activities
Subtotal of cash inflows from operating
121,829,188.18 51,812,644.47
activities
Cash paid for purchasing goods and
97,805,280.02 60,267,617.75
receiving services
Cash paid to and on behalf of employees 26,264,331.46 18,574,437.40
Various taxes and fees paid 982,377.02 926,400.93
Other cash payments related to operating
3,562,711.54 7,461,551.42
activities
Subtotal of cash outflows from operating
128,614,700.04 87,230,007.50
activities
Net cash flow generated from operating
-6,785,511.86 -35,417,363.03
activities
II. Cash flow generated from investment
activities:
Cash received from investment recovery
Cash received from obtaining investment
income
Net cash received from disposal of fixed
assets, intangible assets, and other long-
term assets
Net cash received from disposal of
subsidiaries and other business units
Received other cash related to
investment activities
Subtotal of cash inflows from investment
activities
Cash paid for the purchase and
construction of fixed assets, intangible 4,842,525.07 91,336,954.25
assets, and other long-term assets
Cash paid for investment
Net cash paid for acquiring subsidiaries
and other business units
Other cash payments related to
investment activities
Subtotal of cash outflows from
4,842,525.07 91,336,954.25
investment activities
Net cash flow generated from investment
-4,842,525.07 -91,336,954.25
activities
42
Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
III. Cash flow generated from financing
activities:
Cash received from absorbing
investments
Cash received from obtaining loans 24,180,000.00 152,430,361.46
Received other cash related to financing
13,872,741.17 7,650,000.00
activities
Subtotal of cash inflows from
38,052,741.17 160,080,361.46
financing activities
Cash paid for debt repayment 3,989,916.67 3,200,000.00
Cash paid for distributing dividends,
8,040,829.19 6,663,459.72
profits, or paying interest
Other cash payments related to
28,087,901.67 57,467,472.65
financing activities
Subtotal of cash outflows from
40,118,647.53 67,330,932.37
financing activities
Net cash flow generated from
-2,065,906.36 92,749,429.09
financing activities
IV. The impact of exchange rate changes
10,324.95 56,627.68
on cash and cash equivalents
V. Net increase in cash and cash
-13,683,618.34 -33,948,260.51
equivalents
Plus: Opening balance of cash and
44,741,230.62 50,352,735.39
cash equivalents
VI. Closing balance of cash and cash
31,057,612.28 16,404,474.88
equivalents
7.Consolidated statement of changes in owner's equity
Amount of current period
Unit:RMB
Half year of 2024
Total owner's equity attributable to the parent company
Other equity Oth Min
instruments er Tota
ority
Less Gen Und
Item com Spe Surp shar l
Capi Perp Capi : eral istri ehol
Pref preh cial lus own
tal etua tal Trea risk bute Oth Subt der's er's
erre ensi rese rese
stoc l Oth rese sury prov d ers otal equi
d ve rves rves equi
k bon rve stoc isio prof ty
ers inco ty
stoc ds k n it
k me
266, 295, - 21,9 449, 1,02 261, 1,29
I. Closing
071, 620, 3,37 1,57 08,0 363, 9,59 971, 1,56
balance of
320. 272. 0,08 2.48 64.1 748. 4,89 556. 6,45
previous year
00 02 1.48 9 93 6.14 67 2.81
Plus:
Changes in
accounting
policies
Early error
correction
43
Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Others
266, 295, - 21,9 449, 1,02 261, 1,29
II. Opening
071, 620, 3,37 1,57 08,0 363, 9,59 971, 1,56
balance of
320. 272. 0,08 2.48 64.1 748. 4,89 556. 6,45
this year
00 02 1.48 9 93 6.14 67 2.81
III. Increase
- - - -
or decrease
1,32 69,6 17,5 16,1 12,0 28,2
in the current
4,69 49.1 73,8 79,4 92,6 72,1
period
7.13 0 21.3 75.1 48.2 23.3
(decrease ,
3 0 2 2
using "-")
- - - -
(I) Total 1,32 17,5 16,2 12,0 28,3
comprehensi 4,69 73,8 49,1 92,6 41,7
ve income 7.13 21.3 24.2 48.2 72.4
3 0 2 2
(II) Capital
invested and
reduced by
owners
1.Ordinary
shares
invested by
owners
2．Capital
invested by
holders of
other equity
instruments
3．Amount
of share-
based
payments
recognized in
owner's
equity
4．Others
(III) Profit
distribution
1．Withdra
wal of
surplus
reserves
2. Withdraw
al of general
risk
provisions
3．Distributi
on to owners
(or
shareholders)
4．Others
(IV) Internal
44
Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
carryover of
owner's
equity
1．Capitaliz
ation of
capital
reserves into
capital (or
capital stock)
2.Surplus
reserves
converted
into capital
(or capital
stock)
3．Surplus
reserves to
cover losses
4.Carryover
of changes in
defined
benefit plans
to retained
earnings
5．Other
comprehensi
ve income
carried
forward to
retained
earnings
6．Others
69,6 69,6 69,6
(V)Special
49.1 49.1 49.1
reserves
0 0 0
1.Withdrawal 1,31 1,32 1,32
in current 7,14 0,35 0,35
period 3.43 1.26 1.26
1,24 1,25 1,25
2．Current
7,49 0,70 0,70
usage
4.33 2.16 2.16
(VI)Others 0.00 0.00
IV. Closing 266, 295, - 21,9 431, 1,01 249, 1,26
71,2
balance of 071, 620, 2,04 08,0 789, 3,41 878, 3,29
21.5
the current 320. 272. 5,38 64.1 927. 5,42 908. 4,32
8
period 00 02 4.35 9 60 1.04 45 9.49
Amount of previous year
Unit:RMB
Half year of 2023
Item
Total owner's equity attributable to the parent company Min
45
Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Other equity ority Tota
Oth shar
instruments l
er ehol
Less Gen Und own
com Spe Surp der's
Capi Perp Capi : eral istri equi er's
Pref preh cial lus
tal etua tal Trea risk bute Oth Subt ty equi
erre ensi rese rese
stoc l Oth rese sury prov d ers otal ty
d ve rves rves
k bon ers rve stoc isio prof
stoc inco
ds k n it
k me
266, 295, - 21,9 409, 987, 261, 1,24
I. Closing
071, 620, 6,29 08,0 764, 072, 003, 8,07
balance of
320. 272. 1,34 64.1 423. 734. 028. 5,76
previous year
00 02 4.58 9 32 95 98 3.93
Plus:
Changes in
accounting
policies
Early error
correction
Others
266, 295, - 21,9 409, 987, 261, 1,24
II.Opening
071, 620, 6,29 08,0 764, 072, 003, 8,07
balance of
320. 272. 1,34 64.1 423. 734. 028. 5,76
this year
00 02 4.58 9 32 95 98 3.93
III. Increase
-
or decrease - - -
6,78 303, 10,2
in the current 3,10 2,31 5,42
9,38 295. 01,3
period 8,65 4,45 3,11
4.42 34 33.0
(decrease , 3.26 8.39 1.65
2
using "-")
-
- - -
(I)Total 6,78 10,2
3,41 2,31 5,72
comprehensi 9,38 01,3
1,94 4,45 6,40
ve income 4.42 33.0
8.60 8.39 6.99
2
(II)Capital
invested and
reduced by
owners
1.Ordinary
shares
invested by
owners
2．Capital
invested by
holders of
other equity
instruments
3．Amount
of share-
based
payments
recognized in
owner's
equity
46
Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
4．Others
(III)Profit
distribution
1.Withdrawal
of surplus
reserves
2.Withdrawal
of general
risk
provisions
3.Distributio
n to owners
(or
shareholders)
4.Others
(IV) Internal
carryover of
owner's
equity
1.Capitalizati
on of capital
reserves into
capital (or
capital stock)
2.Surplus
reserves
converted
into capital
(or capital
stock)
3.Surplus
reserves to
cover losses
4.Carryover
of changes in
defined
benefit plans
to retained
earnings
5.Other
comprehensi
ve income
carried
forward to
retained
earnings
6.Others
303, 303, 303,
(V)Special
295. 295. 295.
reserves
34 34 34
1.Withdrawal 1,65 1,65 1,65
in current 8,74 8,74 8,74
period 8.71 8.71 8.71
47
Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
1,35 1,35 1,35
2.Current
5,45 5,45 5,45
usage
3.37 3.37 3.37
(VI)Others 0.00 0.00
IV. Closing 266, 295, 21,9 399, 983, 258, 1,24
498, 303,
balance of 071, 620, 08,0 563, 964, 688, 2,65
039. 295.
the current 320. 272. 64.1 090. 081. 570. 2,65
84 34
period 00 02 9 30 69 59 2.28
8. Statement of changes in owner's equity of the parent company
Amount of current period
Unit:RMB
Half year of 2024
Other equity instruments Other
Total
Capita Less: compr Specia Surplu Undist
Item Total
Capita Prefer Perpet l Treasu ehensi l s ribute
Others owner'
l stock red ual Others reserv ry ve reserv reserv d
s
stock bonds e stock incom es es profit
equity
e
-
I. Closing 266,0 279,1 19,18 538,7
25,58
balance of 71,32 15,90 4,672. 83,46
8,423.
previous year 0.00 0.17 34 9.34
17
Plus:
Changes in
accounting
policies
Early error
correction
Others
-
II. Opening 266,0 279,1 19,18 538,7
25,58
balance of 71,32 15,90 4,672. 83,46
8,423.
this year 0.00 0.17 34 9.34
17
III. Increase
or decrease - -
in the current 15,11 15,113
period 3,980. ,980.6
(decrease , 64 4
using "-")
- -
(I) Total
15,11 15,113
comprehensi
3,980. ,980.6
ve income
64 4
(II) Capital
invested and
reduced by
owners
1．Ordinary
shares
48
Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
invested by
owners
2．Capital
invested by
holders of
other equity
instruments
3．Amount
of share-
based
payments
recognized in
owner's
equity
4．Others
(III)Profit
distribution
1．Withdraw
al of surplus
reserves
2．Distributi
on to owners
(or
shareholders)
3. Others
(IV) Internal
carryover of
owner's
equity
1．Capitaliz
ation of
capital
reserves into
capital (or
share capital)
2．Surplus
reserves
converted
into capital
(or capital
stock)
3．Surplus
reserves to
cover losses
4．Carryove
r of changes
in defined
benefit plans
to retained
earnings
5．Other
comprehensi
ve income
49
Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
carried
forward to
retained
earnings
6．Others
(V) Special
reserve
1．Withdraw
al in current
period
2．Current
usage
(VI)Others
IV. Closing -
266,0 279,1 19,18 523,6
balance of 40,70
71,32 15,90 4,672. 69,48
the current 2,403.
0.00 0.17 34 8.70
period 81
Amount of previous year
Unit:RMB
Half year of 2023
Other equity instruments Other
Total
Capita Less: compr Specia Surplu Undist
Item Total
Capita Prefer Perpet l Treasu ehensi l s ribute
Others owner'
l stock red ual Others reserv ry ve reserv reserv d
s
stock bonds e stock incom es es profit
equity
e
-
I.Closing 266,0 279,1 19,18 534,7
29,64
balance of 71,32 15,90 4,672. 22,84
9,045.
previous year 0.00 0.17 34 7.24
27
Plus:
Changes in
accounting
policies
Early error
correction
Others
-
II.Opening 266,0 279,1 19,18 534,7
29,64
balance of 71,32 15,90 4,672. 22,84
9,045.
this year 0.00 0.17 34 7.24
27
III.Increase
or decrease - -
in the current 18,38 18,38
period 6,767. 6,767.
(decrease , 89 89
using "-")
(I) Total - -
comprehensi 18,38 18,38
ve income 6,767. 6,767.
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89 89
(II) Capital
invested and
reduced by
owners
1．Ordinary
shares
invested by
owners
2．Capital
invested by
holders of
other equity
instruments
3．Amount
of share-
based
payments
recognized in
owner's
equity
4．Others
(III)Profit
distribution
1．Withdraw
al of surplus
reserves
2．Distributi
on to owners
(or
shareholders)
3. Others
(IV) Internal
carryover of
owner's
equity
1．Capitaliz
ation of
capital
reserves into
capital (or
share capital)
2．Surplus
reserves
converted
into capital
(or capital
stock)
3．Surplus
reserves to
cover losses
4．Carryove
r of changes
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Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
in defined
benefit plans
to retained
earnings
5．Other
comprehensi
ve income
carried
forward to
retained
earnings
6．Others
(V) Special
reserve
1．Withdraw
al in current
period
2．Current
usage
(VI)Others
IV. Closing -
266,0 279,1 19,18 516,3
balance of 48,03
71,32 15,90 4,672. 36,07
the current 5,813.
0.00 0.17 34 9.35
period 16
III. Basic Information of the Company
Shandong Zhonglu Oceanic Fisheries Co., Ltd. (hereinafter referred to as “Company” or “the Company”) has its registered
address at Unit 2501, Building 1, 31 Xianxialing Road, Laoshan District, Qingdao, Shandong. It is a company limited by shares
that was incorporated by means of promotion by Shandong Provincial Aquatic Products Group Corporation as the main promoter
on July 30, 1999 under the approval of the Shandong Commission for Structural Reforms with LTGZ [1999] No. 85. The
Company was listed on the Shenzhen Stock Exchange on July 24, 2000, under the approval of the China Securities Regulatory
Commission with ZJFXZ [2000] No. 82 on June 26, 2000. The short stock name and stock code of the Company are “Zhonglu B”
and “200992,” respectively. As of June 30, 2024, the Company’s share capital was RMB266,071,320.00.
The Company’s organizational structure is as follows: Annual General Meeting, Board of Directors, and Board of Supervisors:
General Manager’s Office (CPC Committee’s Office), Chairman’s Office, Human Resource Department (Organization
Department), Financial Management Department (Capital Operation Department), Corporate Development Department, Audit
Department, Oceanic Management Department, Discipline Committee’s Office, Party-Mass Work Department, and Risk Control
Department (Legal Affairs Department).
The Company’s business scope: general business items: processing and sales of aquatic products; commodity imports and
exports within the approved scope; the production and sales of machine ice; the manufacturing, installation, and maintenance of
refrigeration equipment; freezing and cold storage; loading, unloading and handling services; property leases. Pre-licensed
business items: offshore and long range fishing.
This financial report was approved for release according to the resolution of the Company’s Board of Directors dated August
29, 2024.
IV. T Basis for the preparation of the financial statements.
1.Foundation of the preparation
The company takes continuing operation as the basis for preparing financial statements and takes the accrual basis as the basis for
bookkeeping. The company generally adopts the historical cost to measure the accounting elements, and adopts the replacement cost,
the realizable net value, the present value and the fair value on the premise that the determined amount of the accounting elements
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can be obtained and be measured reliably.
2. Going concern
The company shall have the ability of going concern for at least 12 months from the end of this report, and have no major matters
affecting the ability of going concern.
V. Important accounting policies and accounting estimates
According to the actual characteristics of production and operation and the provisions of relevant accounting
standards for enterprises, the company has formulated several specific accounting policies and accounting estimates
for transactions and matters such as revenue recognition, see Note Ⅳ and 27 "revenue" for details. For the statement
of significant accounting judgments and estimates made by management team, please refer to Note IV, 34 "Major
Accounting judgments and Estimates".
1． Accounting period
The fiscal year starts from January 1 to December 31 of the Gregorian calendar.
2． Operation period
The normal business cycle is the period from the company's purchase of assets for processing to the realization of
cash or cash equivalents. The company takes 12 months as a business cycle and takes it as the liquidity standard of
assets and liabilities.
3． Base currency for bookkeeping
RMB Yuan
4． Importance criteria determination method and selection basis
The preparation and disclosure of the financial statements follow the principle of importance. The matters disclosed
in the notes to the financial statements involve the importance criteria and the importance criteria of the Company are
as follows:
Item Position disclosed in the notes to Importance criteria determination method and
this Financial Statements selection basis
Other profits Note VI, 42 1 million yuan
Important non-wholly owned subsidiary Notes IX, 1, and (2) Asset size greater than 100 million Yuan
Important associate companies Notes IX, and 2 The net profit scale is greater than 5 million yuan
Important projects under construction Note VI, 11 10 million yuan
5． Accounting treatment method of enterprise merger under the same control and not under the same control.
Enterprise merger refers to the transaction or event in which two or more separate enterprises are merged to form a
reporting entity. Business merger is divided into enterprise merger under the same control and enterprise merger not
under the same control.
(1) Enterprise merger under the same control
The enterprises participating in the merger are subject to the final control of the same party or the same multiple
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parties before and after the merger, and the control is not temporary and is the enterprise merger under the same
control. For an enterprise merger under the same control, the party acquiring control over the other enterprises
participating in the merger on the merger date shall be the merger party, and the other enterprises participating in the
merger shall be the merged party. The merger date refers to the date on which the merged party actually obtains the
control right of the incorporated party.
The assets and liabilities acquired by the consolidated party are measured at the book value of the consolidated party
at the merger date. The balance between the book value of the net assets acquired by the consolidated party (or the
total book value of the issued shares) shall adjust the capital reserve (equity premium); if the capital reserve (equity
premium) is insufficient to offset, the retained earnings shall be adjusted.
The merger party is the direct expenses incurred in the enterprise merger, which shall be recorded into the current
profit and loss at the time of occurrence.
(2) Enterprise merger not under the same control
If the enterprise participating in the merger is not under the final control of the same party or the same multiple
parties before and after the merger, it is the enterprise merger not under the same control. For an enterprise merger
not under the same control, the party who obtains the control right over the other enterprises participating in the
merger on the purchase date shall be the acquirer, and the other enterprises participating in the merger shall be the
acquiree. The date of purchase is the date on which the acquirer actually obtains control over the acquiree.
For merger of enterprises not under the same control, the cost of consolidation includes the assets paid by the
acquirer on the purchase date to acquire control over the acquiree, liabilities incurred or assumed by the acquirer and
equity securities issued to acquire control of the acquiree at the purchase date. The cost of audit for the merger of the
enterprise, legal services, evaluation and consulting intermediary fees and other management fees shall be recorded in
the current profit and losses. The transaction expense of equity or debt securities issued by the acquirer as the
combined consideration shall be included in the initial recognized amount of equity or debt securities. The contingent
consideration involved shall be included in the consolidated cost according to its fair value on the purchase date. If
there is new or further evidence of the existed situations of the purchase date within 12 months after it, the
consolidated goodwill shall be adjusted accordingly. The merger costs incurred by the acquirer and the identifiable net
assets acquired in the merger should be measured at the fair value of the purchase date. The difference between the
merger cost and the share of the fair value of the identifiable net assets of the purchased party on the purchase date
shall be recognized as goodwill. If the consolidated cost is less than the fair value of identifiable net assets of the
merger, first of the fair value of the identifiable assets, liabilities and contingent liabilities and combined cost
measurement, review the combined cost is still less than the identifiable net assets of the merger, the difference
included in the current profit and loss.
If the acquirer obtains the deductible temporary difference of the acquiree, and is not recognized on the purchase date
because it does not meet the conditions of deferred income tax assets for recognition, if new or further information
confirming the existence of relevant situations is obtained with in 12 months after the purchase date, the acquirer shall
confirm the deferred income tax assets and reduce the goodwill, if the goodwill is insufficient, the difference shall be
recognized as the current profit and loss; Except for the above situation, the deferred income tax assets related to the
enterprise merger shall be included in the current profit and loss.
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For business merger not under the same control achieved through multiple transactions step by step, it should be
determined whether the multiple transactions belongs to "package deal" according to the Ministry of Finance on the
notice of the accounting standards interpretation no. 5 (accounting [2012] no. 19) and "accounting standards no. 33
—— consolidated financial statements" article 51 criteria about "package deal" (see Note Ⅳ.6, judging criteria of the
control and preparation of the consolidated financial statements), For "package transaction", refer to the previous
paragraphs in this section for accounting treatment; For those not belong to "package transaction", distinguish
individual financial statements from consolidated financial statements in the accounting statement:
In individual financial statements, the sum of the book value of the equity interest of the acquiree held prior to the
purchase date and the cost of new investment on the purchase date is taken as the initial investment cost of the
investment. Where the equity interest of the acquiree held prior to the purchase date involves other comprehensive
income, the other comprehensive income associated with the investment will be accounted for on the same basis as if
the acquiree had disposed of the relevant asset or liability directly (i.e., With the exception of the corresponding share
of the change resulting from the remeasurement of net liabilities or net assets of the defined benefit plan by the
acquiree under the equity method, the remainder is transferred to investment income for the period).
In the consolidated financial statements, for the equity of the acquiree held prior to the purchase date, remeasure at
the fair value of the equity at the purchase date, the difference between the fair value and its book value shall be
included in the current investment income; Where the equity of the acquiree held before the purchase date involves
other comprehensive income, the other comprehensive income shall be treated on the same basis as the direct
disposal of the relevant assets or liabilities (i. e., Except for the corresponding share accounted for under the equity
method in the change resulting from the remeasurement of net liabilities or net assets of the defined benefit plan by
the acquirer, the remainder is converted to investment income for the period at the purchase date).
6． Judging standard of control and the preparation method of the consolidated financial statements
(1) Judging standard of the control
The consolidation scope of consolidated financial statements is determined on the basis of control. Control means
that the Company has the power over the investee, enjoys a variable return by participating in the relevant activities of
the investee, and has the ability to use the power of the investee to influence the amount of the return. Among them,
the Company has the current right to enable the Company to dominate the relevant activities of the investee
regardless of whether the Company actually exercises the power; if the return from the investee may change with the
performance of the investee, it shall be deemed to enjoy a variable return; if the Company exercises the decision-
making power as the principal responsible person, the Company shall be deemed to use the power of the investee to
affect the return amount. The scope of the merger includes the Company and all of its subsidiaries. Subsidiary, refers
to the subject controlled by the Company.
The Company judges whether to control the investee on the basis of comprehensive consideration of all relevant facts
and circumstances. The relevant facts and conditions mainly include: the purpose of the establishment of the investee;
the relevant activities of the investee and how to make decisions on the relevant activities; whether the rights of the
Company enable the Company to dominate the relevant activities of the investee; whether the Company enjoys a
variable return by participating in the relevant activities of the investee; whether the Company has the ability to
influence the power of the investee; the relationship between the Company and the other parties, etc. Once changes in
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Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
the relevant facts and circumstances lead to changes in the relevant elements involved in the above control definition,
the Company will reevaluate them.
(2) Method of preparing the consolidated financial statements
From the date of acquiring the net assets of the subsidiary and the actual control right of production and operation
decisions, the Company will begin to bring it into the merger scope, and stop to do to so after the date of losing the
actual control right. For the subsidiaries under disposal, the operating results and cash flow before the disposal date
have been appropriately included in the consolidated income statement and the consolidated cash flow statement; for
the current disposition subsidiaries, the beginning of the consolidated balance sheet will not be adjusted. For
subsidiaries not under the same control, the operating results and cash flow after the purchase date have been
appropriately included in the consolidated income statement and the consolidated cash flow statement, and the initial
and comparative numbers of the consolidated financial statements will not be adjusted. For the subsidiaries increased
by the enterprise merger under the same control and the merged party under the absorption merger, the operating
results and cash flow from the beginning of the current period to the merger date have been appropriately included in
the consolidated income statement and the consolidated cash flow statement, and the comparison number of the
consolidated financial statements shall be adjusted at the same time.
At the time of preparing the consolidated financial statements, if the accounting policies or accounting periods
adopted by the subsidiary is inconsistent with that adopted by the Company, necessary adjustments to the financial
statements of the subsidiary shall be made in accordance with the accounting policies and accounting periods of the
Company. For subsidiaries not acquired under the same control, their financial statements shall be adjusted on the
basis of the fair value of identifiable net assets on the purchase date.
All significant transaction balances, transactions and outstanding profits within the Company should be offset by the
preparation of the consolidated financial statements.
The shareholders' equity and the net profit and loss of the current period that are not owned by the Company should
be listed separately as the minority shareholders' equity and the minority shareholders' profit and loss under the
shareholders' equity and net profit in the consolidated financial statements. The share of the current net profit and
loss of the subsidiary belonging to the minority shareholders' equity shall be listed in the item of "minority
shareholders' profit and loss" under the net profit items in the consolidated profit statement. The loss of the
subsidiary shared by the minority shareholders exceeds the share of the minority shareholders 'equity of the subsidiary
at the beginning of the period, and the number of the shareholders' equity is still reduced.
When the control of the original subsidiary is lost due to the disposal of some equity investment or other reasons, the
remaining equity shall be remeasured according to its fair value on the date of the loss of control. The sum of the
consideration obtained from the disposal of the shares and the fair value of the remaining shares, after deducting the
share of the net assets of the original subsidiary calculated from the purchase date, shall be included in the investment
income of the period of the loss of control. For other comprehensive income related to the equity investment of the
original subsidiary, the accounting treatment of control shall be lost on the same basis as the direct disposal of the
relevant assets or liabilities of the subsidiary. Subsequently, the remaining equity shall be measured in accordance with
the Accounting Standards for Business Enterprises No.2 —— Long-term Equity Investment or Accounting
Standards for Business Enterprises No.22 —— Recognition and Measurement of Financial Instruments and other
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Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
relevant provisions, see Note Ⅳ and 14 "Long-term Equity Investment" or Note Ⅳ and 10 "Financial
Instruments".
If the Company disposed of the equity investment in the subsidiary until the loss of control through multiple
transactions, it is necessary to distinguish whether the transaction of the equity investment until the loss of control is a
package transaction. If the terms, conditions and economic impact of the disposal of subsidiary equity investments
meet one or more of the following circumstances, usually indicating that those multiple transactions should be treated
as package transactions:
1 These transactions are made simultaneously or made in consideration of mutual influence;
2 These deals as a whole can achieve a complete business result;
3 The occurrence of one transaction depends on the occurrence of at least one other transaction;
4 One trade is uneconomical, but it is economic when considered together with other trades.
For each transaction that does not belong to the package transaction, according to the circumstances, the principle of
"partial disposal of long-term equity investment of subsidiaries without losing control" (see Note Ⅳ,14 "long-term
equity investment" (2) ④) and "loss of control of the disposal of the original subsidiary" (see the preceding paragraph)
should be applied in the accounting treatment. If the transaction of the subsidiary equity investment until the loss of
control is a package transaction, the transaction shall be treated as a transaction of the disposal of the subsidiary and
losing the control; however, the difference between the disposal price and the share of the net assets of the subsidiary
before the loss of control should be recognized as other comprehensive income in the consolidated financial
statements, and the profit and loss of the period of the loss of control.
7． Classification of joint venture arrangement and accounting treatment methods for joint operation
Joint venture arrangement means an arrangement under the joint control of two or more parties. The Company shall,
according to the rights and obligations enjoyed in the joint venture arrangement, divide the joint venture arrangement
into joint operation and joint company. Joint operation means the joint venture arrangement in which the Company
enjoys the relevant assets of the arrangement and assumes the liabilities related to the arrangement. Joint company
means a joint venture arrangement in which the Company only enjoys rights to the net assets of the arrangement.
The company's investment in joint venture shall be calculated by equity method, which shall be treated in accordance
with the accounting policies described in Note Ⅳ,14 "Long-term Equity Investment" (2) ② "Long-term equity
investment calculated by equity method".
The Company, as the joint venture, recognizes the assets held by the Company, the liabilities and the liabilities held by
the shares of the Company, and the liabilities held by the Company. Recognize the income generated by the sale of the
share of the output incurred by the Company, and the expenses incurred by the Company in accordance with the
share of the Company.
When the Company invests or sells assets as the joint venture (the assets do not constitute business, the same should
be applied below) or purchases assets from the joint venture, prior to the sale of such assets to a third party, the
Company recognizes only the portion of the profit or loss arising from the transaction attributable to other
participants in the joint venture. For the asset impairment loss in accordance with the Accounting Standards for
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Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Business Enterprises No.8 —— Asset Impairment, the Company shall recognize the loss for the assets that the
Company purchased the assets, the Company shall recognize the loss according to the share borne by itself.
8． Standards for determining cash and cash equivalents
Cash refers to cash on hand and deposits that can be used for payment at any time. Cash equivalents refer to
investments held by the company with a short term (generally due within three months from the purchase date),
which are highly liquid, easy to be converted into a known amount of cash and with little risk of change in value.
9． Foreign currency business and foreign currency statement translation
(1) The method for determining the exchange rate when foreign currency transactions occur
When a foreign currency transaction is initially recognized, the approximate spot exchange rate on the day of the
transaction is used to convert the amount into RMB.
(2) On the balance sheet date, foreign currency currency items and foreign currency non-currency items shall be
treated in the following methods:
① Foreign currency currency items shall be converted through the central parity rate of RMB foreign exchange price
published by the People's Bank of China on the balance sheet date. The exchange difference caused from the
difference between the spot exchange rate on the balance sheet date and the initial recognition date or the previous
balance sheet date shall be included in the current profit and loss.
② Foreign currency non-monetary items measured at historical cost shall still be converted at the spot exchange rate
on the date of the transaction without changing the bookkeeping standard amount; foreign currency non-monetary
items measured at fair value shall be converted at the spot exchange rate on the date of fair value; the difference
between the original bookkeeping standard amount shall be treated as the change of fair value (including change in
exchange rate) and be included into the current profit and loss or other comprehensive income according to the
nature of the non-monetary items.
Monetary items refer to the monetary funds held by the Company and the assets or liabilities to be collected in a fixed
or definite amount.
Non-monetary items refer to items other than monetary items.
(3) Conversion method of foreign currency financial statements of overseas operating entities:
① The assets and liabilities in the balance sheet shall be converted at the spot exchange rate on the balance sheet date,
and the owner's equity items except the "undistributed profit" shall be converted at the spot exchange rate at the time
of occurrence;
② The income and expense items in the income statement shall be converted at the exchange rate similar ③ The
conversion difference in the foreign currency financial statements generated from the above ① and ② conversion
shall be listed separately under the owner's equity items in the balance sheet.to the spot exchange rate on the date of
the transaction;
④ The financial statements of overseas operations in hyperinflation economy shall be converted in the following
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Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
methods:
Restate the balance sheet items by using the general price index, and restate the income statement items by using the
general price index changes, then convert at the spot rate at the latest balance sheet date.
When the overseas operation is no longer in the hyperinflation economy, the restatement shall be stopped and the
financial statements reconverted according to the price level on the date of cessation.
⑤ In the disposal of overseas operations, the Company shall convert the difference between the foreign currency
financial statements related to the owner equity items of the balance sheet for the current disposal of overseas
operations, the conversion difference of the foreign currency financial statements of the disposal portion shall be
calculated at the proportion of the disposal and transferred to the profit and loss of the current disposal.
10．Financial instrument
The financial instrument means a contract that forms the financial assets of one party and forms the financial liabilities
or equity instruments of the other party. When the Company becomes a party to the financial instrument contract, it
recognize the relevant financial assets or financial liabilities.
(1) Financial Assets
1 Classification and the initial measurement
According to the business model of managing financial assets and the contractual cash flow characteristics of financial
assets, the Company divides the financial assets into:
1) Financial assets measured at an amortized cost
The Company manages the business model of financial assets measured at amortized cost, and the contract cash flow
characteristic of such financial assets is consistent with the basic lending arrangement, 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 real interest rate method to conduct the follow-up measurement for the
amortized cost, and the profit or loss generated by the amortization or impairment shall be recorded in the current
profit and loss.
2) Financial assets measured at fair value and whose changes are included in other comprehensive income
The business model of the Company for managing such financial assets is to target both collecting and selling of the
contractual cash flow, and the contractual cash flow characteristics of such financial assets are consistent with the
basic lending arrangement. The Company measures such financial assets at fair value and their changes are included in
other comprehensive income, but the impairment losses or gains, exchange gains and losses and interest income
calculated in accordance with the real interest rate method are included in the current profits and losses.among:
<1> Debt instrument investment measured at fair value and whose changes are included in other c Subsequent
measurement should be performed at fair value. Interest rates, impairment losses or gains and exchange gains and
losses calculated by the real interest rate method shall be included in the current profits and losses, while other gains
or losses shall be included in other comprehensive gains. Upon the termination of recognition, the accumulated gains
or losses previously included in other comprehensive income shall be transferred from other comprehensive income
and recorded in the current profit and loss.omprehensive income
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Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
<2> Equity instrument investment measured at fair value and whose changes are included in other comprehensive
income
Subsequent measurement should be performed at fair value. The dividends obtained (except for the part of the
investment cost recovery) shall be included in the current profit and loss, and other gains or losses shall be included in
other comprehensive income. Upon the termination of recognition, the accumulated gains or losses previously
included in other comprehensive income shall be transferred from other comprehensive income and included in the
retained earnings.
For non-trading equity instrument investments, the Company may, upon initial recognition, irrevocably designate them
as a financial asset measured at fair value and its changes included in other comprehensive income. The designation is
made on the basis of a single investment, and the relevant investment meets the definition of the equity instrument
from the perspective of the issuer.
3) Financial assets measured at fair value and whose changes are included in the current profit and loss.
The Company classifies the above financial assets measured at amortized cost and the financial assets measured at fair
value and whose changes are included in other comprehensive income as the financial assets measured at fair value
and whose changes are included in the current profit and loss. In addition, at the initial recognition, in order to
eliminate or significantly reduce the accounting mismatch, the Company designated some financial assets as financial
assets measured at fair value and their changes are included in the current profit and loss. For such financial assets, the
Company adopts the fair value for subsequent measurement, and the change in the fair value is included in the current
profit and loss.
The investment in equity instruments over which the Company has no control, joint control and significant influence
will be measured at fair value and its changes will be included in current profit or loss, and listed as trading financial
assets; Those expected to hold for more than one year from the balance sheet date are listed as other non-current
financial assets.
Financial assets are measured at fair value at the initial recognition. For financial assets measured at fair value and
whose changes are included in the current profit and loss, relevant transaction expenses are directly included in the
current profit and loss; for other categories of financial assets, relevant transaction expenses are included in the initial
recognition amount. For accounts receivable or notes receivable arising from the sale of products or the provision of
services that do not include or do not take into account the significant financing components, the amount of
consideration that the Company is expected to be entitled to collect shall be the initial recognition amount.
4) Equity instrument
An equity instrument is a contract that demonstrates ownership of the remaining interest in the assets excluding all
liabilities. The company's issuance (including refinancing), repurchase, sale or cancellation of equity instruments shall
be treated as changes in equity, and the transaction expenses related to equity transactions shall be deducted from the
equity. The Company does not recognize the change in the fair value of the equity instruments.
During the duration of the Company (including the "interest" generated by the "instruments" classified as "equity
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instruments"), it shall be treated as profit distribution.
2 Impairment of financial assets
1) Method of recognition of the impairment provision
On the basis of expected credit loss, the Company makes impairment provision and confirms the applicable expected
credit loss measurement method (general method or simplified method).
Credit loss refers to the difference between all the contractual cash flows receivable under the contract and all the
expected cash flows collected, i. e., the present value of the total cash shortage. Among them, for the financial assets
purchased or derived with credit impairment, the Company shall discount the actual interest rate of the financial assets.
The general method of measuring expected credit loss refers to measuring whether the credit risk of the financial
assets (including contract assets and other applicable items, the same below) assessed by the Company on the balance
sheet date has increased significantly since the initial confirmation, the Company measures the loss preparation
according to the amount equivalent to the expected credit loss in the whole duration; if the credit risk does not
increase significantly after the initial confirmation, the Company measures the loss preparation according to the
amount equivalent to the expected credit loss in the next 12 months. For the financial assets purchased or derived
with credit impairment, the Company shall only recognize the cumulative changes of the expected credit loss during
the initial period on the balance sheet date. The Company considers all reasonable and grounded information,
including forward-looking information, when assessing expected credit losses.
For receivables and contractual assets that are formed from transactions regulated by Accounting Standard for
Business Enterprises No. 14 - Revenue and do not have a significant financing component or that the Company does
not take into account the financing component of contracts not exceeding one year, the Company uses a simplified
measurement method to measure the loss provision in terms of the amount of expected credit losses over the entire
duration.
For financial assets other than the above measurement methods, the Company assess whether its credit risk has
significantly increased since the initial recognition. If the credit risk has significantly increased since the initial
confirmation, the Company measures the loss provision according to the amount of the expected credit loss in the
entire duration; if the credit risk does not increase significantly after the initial confirmation, the Company measures
the loss provision according to the amount of the expected credit loss in the next 12 months.
The Company uses available reasonable and warranted information, including forward-looking information, to
compare the risk of default of the financial instrument on the balance sheet date with the risk of default on the initial
recognition date to determine whether the credit risk of the financial instrument has increased significantly since the
initial confirmation.
On the balance sheet date, if the Company determines that the financial instrument only has a low credit risk, it is
assumed that the credit risk of the financial instrument has not increased significantly since the initial recognition.
The Company evaluates expected credit risk and measures expected credit losses on the basis of a single financial
instrument or portfolio of financial instruments. When based on a combination of financial instruments, the Company
divides financial instruments into different combinations based on common risk characteristics.
The Company re-measures the expected credit loss on each balance sheet date, and the increase or reversal of the loss
provision will be recorded as impairment loss or gains. For the financial assets measured at amortized cost, the loss
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provision shall offset the book value of the financial assets listed in the balance sheet; for the debt investment
measured at fair value and its changes included in other comprehensive income, the Company confirms the loss
provision in other comprehensive income, which does not offset the book value of the financial assets.
2) The criterion of whether credit risk increases significantly after initial confirmation
If the default probability of a financial asset within the expected duration determined on the balance sheet date is
significantly higher than the default probability determined during the expected duration determined at the initial
confirmation, it indicates that the credit risk of the financial asset is significantly increased. Except in special
circumstances, the Company should use the change of the default risk in the next 12 months as a reasonable estimate
of the change of the default risk during the entire duration to determine whether the credit risk increases significantly
after the initial confirmation.
3) A portfolio approach to assessing expected credit risk on a portfolio basis
The Company evaluates credit risks for individual financial assets with significantly different credit risks, such as
receivables of relevant parties, receivables for matters in dispute with the other side or matters involved in litigation or
arbitration, and receivables where the debtor is likely to fail to fulfill repayment obligations.
In addition to individual financial assets that assess credit risk, the Company divides financial assets into different
groups based on common risk characteristics and evaluates credit risk on the basis of a portfolio.
4) Accounting treatment method for the impairment of financial assets
At the end of the period, the Company calculates the estimated credit loss of various financial assets, if the estimated
credit loss is greater than the book amount of the current impairment provision, the difference should be recognized
as an impairment loss; if it is less than the current impairment provision, the difference should be recognized as an
impairment gain.
5) Determination method of credit loss of various financial assets
The company needs to confirm the impairment loss of financial assets measured by amortized cost of financial assets,
debt instruments measured at fair value and whose changes are included in other comprehensive incomes, as well as
lease receivables, mainly including notes receivable, accounts receivable, receivables financing, other receivables,
creditor's rights investment, other creditor's rights investment, long-term receivables, etc. In addition, for the contract
assets and part of the financial guarantee contracts, impairment provisions and credit impairment losses are confirmed
in accordance with the accounting policies described in this part.
<1> The account for receivables and contract assets for expected credit losses based on a combination of credit risk
characteristics
Basis for confirming the
Consolidation category Method of measuring expected credit losses
consolidation
Bank acceptance bill receivable With reference to the historical credit loss experience,
combined with the current situation and the forecast of the
Bill type future economic situation, the expected credit loss should be
Trade acceptance receivable calculated through the default risk exposure and the expected
credit loss rate of the whole duration
With reference to the historical experience of credit loss, and
Receivable-Account receivable age
combined with the current situation and the forecast of the
portfolio
Account receivable age future economic situation, the comparison table between the
Contract asset - Account receivable age
age of accounts receivable and the expected credit loss rate of
Portfolio
the whole duration is prepared to calculate the expected credit
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Basis for confirming the
Consolidation category Method of measuring expected credit losses
consolidation
loss
Accounts receivable —— consolidated Based on historical credit loss experience, current conditions
Scope of merger
related parties portfolio and expected future economic conditions
With reference to the historical credit loss experience,
combined with the current situation and the forecast of the
Other receivables - Account receivable future economic situation, prepare the comparison table of
Account receivable age
age portfolio other receivables age and the expected credit loss rate, and
calculate the expected credit loss rate in the next 12 months or
the whole duration
The allowance for bad debts is measured with reference to
Other receivables - consolidated
Scope of merger historical credit loss experience, combined with current
related parties portfolio
conditions and expectations of future economic conditions
<2> Aging combination of aging and expected credit loss ratio comparison table
Account receivable age Expected credit loss rate of accounts Expected credit loss rate of other
receivable receivables
Within 6 months 5.00% 5.00%
Six months to a year 10.00% 10.00%
1 to 2 years 30.00% 30.00%
2 to 3 years 50.00% 50.00%
More than 3 years 100.00% 100.00%
The age of accounts for the self-examination of accounts receivable and other receivables contracts starts from the
month when the payment actually occurs.
For the receivables and contract assets formed by the transactions regulated by the Accounting Standards for Business
Enterprises No.14 —— Income, the Company uses the simplified measurement method to measure the loss
preparation according to the amount equivalent to the expected credit loss within the entire duration.
For leasing receivables, by the accounting standards for enterprises no. 14 —— income specification of transaction
formation, and without significant financing components or the company does not consider not more than a year of
financing receivables and contract assets of the contract, the company using the simplified measurement method,
according to the entire duration of expected credit loss amount measurement loss.
For notes receivable and debt receivables measured at fair value and whose changes are included in other
comprehensive income, if the maturity period is within one year (including one year from the initial confirmation date),
they shall be reported as receivables financing. The Company measures the impairment loss by using the amount of
the expected credit loss of the entire duration.
Debt investment is mainly accounted for by bond investment measured at amortized cost. The Company measures
the impairment loss in the amount equivalent to the expected credit loss within the next 12 months, or for the entire
duration, based on whether its credit risk has increased significantly since the initial recognition.
Other creditor's rights investments shall be mainly accounted for bond investment measured at fair value and whose
changes are included in other comprehensive income. Financing of receivables with a maturity period of more than
one year from the initial confirmation date shall also be reported as other creditor's rights investments. For other debt
investments (including receivables listed in other debt investments), the Company shall measure the impairment loss
by using the amount equivalent to the expected credit loss within the next 12 months or the entire duration based on
whether its credit risk has increased significantly after the initial confirmation. For receivables financing that does not
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include major financing components, the Company measures the loss preparation according to the expected amount
of credit loss equivalent to the entire duration.
<3> The criteria for the identification of receivables and contract assets for the provision of expected credit losses on
a single basis
For receivables and contract assets whose credit risk is significantly different from combined credit risk, the Company
shall draw expected credit losses according a single item.
3 Confirmation basis and measurement method for terminating the transfer of financial assets
If the financial assets meet one of the following conditions, the recognition of them shall be terminated:
1) Termination of the contractual right to collect the cash flow of the financial assets;
2) The financial assets have been transferred, and the Company transfers almost all the risks and rewards in the
ownership of the financial assets to the transferred party;
3) The financial asset has been transferred. Although the Company has neither transferred nor retained almost all the
risks and rewards in the ownership of the financial asset, it has abandoned the control of the financial asset.
Upon the confirmation termination of the investment of other equity instruments, the difference between the book
value and the consideration received and the sum of the fair value directly recorded in other comprehensive income
shall be included in the retained earnings, and the book value of the remaining financial assets and the sum of the fair
value directly recorded in other comprehensive income shall be included in the current profit and loss.
If the Company has neither transferred nor retained almost all the risks and rewards in the ownership of the financial
assets, and has not abandoned the control over the financial assets, the relevant financial assets shall be recognized
according to the extent of the transferred financial assets, and the relevant liabilities shall be recognized accordingly.
The degree to which the continued involvement of the transferred financial assets is involved refers to the risk level
faced by the enterprise caused by the change in the value of the financial assets.
If the overall transfer of financial assets meets the conditions for termination of recognition, the difference between
the book value of the transferred financial assets and the sum between the sum of the consideration received from
the transfer and the fair value change originally included in other comprehensive income shall be included in the
current profit and loss.
If the partial transfer of the financial assets meets the conditions of termination of recognition, the book value of the
transferred financial assets shall be apportioned according to the relative fair value between the fair value of the
transfer and the sum of the sum of the transfer of the transfer shall be included into the current profit and loss.
For the financial assets sold by recourse, or the endorsement transfer of the held financial assets, the Company needs
to determine whether almost all the risks and rewards in the ownership of the financial assets have been transferred.
If almost all the risks and rewards in the ownership of the financial asset have been transferred to the transferred
party, the recognition of the financial asset should be terminated; if the financial asset retains the ownership of the
financial asset and almost all the risks and rewards in the ownership of the financial asset, the recognition of the
financial asset should not be terminated, if there is no transfer nor retention of almost all the risks and remuneration
in the ownership of the financial asset, the company shall continue to judge whether the enterprise has retained the
control of the asset and conduct treatment according to the principles described in the preceding paragraphs.
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4 Cancel after verification
If the Company no longer reasonably expects that the contractual cash flow of the financial asset can be recovered in
whole or in part, the book balance of the financial asset will be written down directly. This write-down constitutes the
termination of recognition of the relevant financial assets. This usually occurs when the Company determines that the
debtor has no assets or sources of income to generate sufficient cash flow to repay the amount that will be written
down. However, the financial assets under the Company may allow the process to be affected by the execution
activities.
If the write-down financial assets are recovered later, they shall be transferred back as impairment losses and recorded
into the profits and losses of the current period.
(2) Financial liabilities
Financial liabilities are classified at the initial recognition as financial liabilities measured at amortized cost and
financial liabilities measured at fair value and whose changes are included in the current profits and losses.
In addition to the following, the Company classifies financial liabilities as financial liabilities measured at amortized
cost costs:
① Financial liabilities measured at fair value and whose changes are included in current profits and losses, include
transactional financial liabilities (including derivatives of financial liabilities) and financial liabilities designated as
measured at fair value and whose changes are included in current profits and losses.
② The transfer of financial assets does not meet the conditions for termination of recognition or continues to be
involved in the transferred financial assets.
③ The financial guarantee contract not subject to Item ① or ② of this Article and a loan commitment at a below
market rate that is not subject to Item ① of this Article. In a business merger not under the same control, if the
contingent consideration recognized by the Company as the acquirer forms the financial liabilities, the financial
liabilities should be measured at fair value and the changes should be included in the profit and loss of the current
period.
At the time of initial recognition, in order to provide more relevant accounting information, the Company may
designate financial liabilities measured at fair value and recorded in the profit and loss of the current period, which
meets one of the following conditions:
1) Eliminate or significantly reduce accounting mismatch.
2) Manage and evaluate the performance of a portfolio of financial liabilities or a portfolio of financial assets and
financial liabilities on a fair value basis in accordance with the corporate risk management or investment strategy set
out in formal written documents, and report internally to key management on that basis. Such designation, once made,
cannot be revoked.
The financial liabilities of the Company are mainly financial liabilities measured at amortized cost, including notes
payable and accounts payable, other payables, borrowings and bonds payable, etc. Such financial liabilities are initially
measured according to the fair value after deducting transaction expenses, and subsequently measured by the real
interest rate method. If the term is less than one year (including one year), it should be listed as current liabilities; if
the term is more than one year but is due within one year (including one year) from the balance sheet date, it should
be listed as non-current liabilities due within one year; the rest are listed as non-current liabilities.
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When the current obligation of the financial liability has been discharged in whole or in part, the Company terminate
the recognition of the part of the financial liability or discharged obligation. The difference between the book value
of the terminated part and the consideration paid shall be included in the current profit and loss.
If the current obligation of the financial liability (or a part of it) has been discharged, the Company shall terminate
the recognition of the financial liability (or such a part of the financial liability).
(3) Determination of fair value of financial instruments
For financial instruments with active market, the fair value should be determined by the quotation in the active market.
For financial instruments with no active market, the valuation techniques should be used to determine their fair value.
The company divides the input values used by the valuation technology at the following levels and uses them
successively:
① The first level of input value is an unadjusted offer of the same assets or liabilities in the active market that can be
obtained on the measurement date;
② The second level of input value is the input value directly or indirectly visible besides the first level of input value,
including: the quotation of similar assets or liabilities in the active market; the quotation of the same or similar assets
or liabilities in the nonactive market; the other observable input value other than the quotation, such as the interest
rate and yield curve observable during the normal quotation interval; the input value of market verification, etc.;
③ The third level of input value is the unobservable input value of the relevant assets or liabilities, including interest
rates that cannot be directly observed or cannot be verified by observable market data, stock volatility, future cash
flow of abandonment obligations in business mergers, financial forecasts made using their own data, etc.
(4) Follow-up measurement
After the initial recognition, the Company shall measure different categories of financial assets at amortized cost, fair
value and their changes in other comprehensive income or fair value and their changes in the current profit and loss.
After the initial recognition, the Company shall measure different categories of financial liabilities at amortized cost,
fair value and changes in the current profit or loss or by other appropriate methods.
The amortized cost of a financial asset or financial liability is determined by the initial recognized amount of the
financial asset or financial liability after the following adjustments:
① Deduct the repaid principal.
② Add or subtract the cumulative amortization amount formed by amortifying the difference between the initial
recognized amount and the due date amount by the effective interest rate method.
③ Excluding accumulated losses (only for financial assets).
The Company recognizes the interest income in accordance with the real interest rate method. Interest income should
be calculated from the book balance of financial assets multiplied by the effective interest rate unless:
1) For the financial assets purchased or derived with credit impairment, the Company shall determine the interest
income according to the amortized cost of the amortized assets and the actual interest rate of the financial assets.
2) For the purchased or generated financial assets that have no credit impairment but become credit impairment in the
subsequent period, the Company shall determine the interest income according to the amortized cost and actual
interest rate of the financial assets in the subsequent period. If the Company uses the real interest rate method to
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calculate the credit impairment in the subsequent period, and the improvement can be objectively related to an event
occurring after the application of the above policy (if the credit rating of the debtor's credit rating is raised), the
Company transfers the real interest rate multiplied by the book balance of the financial assets.
11．Inventory
(1) Classification of inventory
Inventory includes raw materials, in-process products, semi-finished products, finished products, inventory goods,
turnover materials, low-value consumables and contract performance costs, etc. (For "Contract Performance Cost",
see Note Ⅳ, 28 and "Contract Acquisition Cost and Contract Performance Cost".)
(2) Method of valuation of issued issued
The inventory should be priced on the weighted average basis when issued.
(3) The basis for determining the net realizable value of inventory and the withdrawal method for inventory
depreciation reserve
On the balance sheet date, the inventory shall be measured according to the lower cost and the net realizable value. If
the inventory cost is higher than its net realizable value, the provision for inventory depreciation shall be withdrawn
and recorded into the current profit and loss. Net realizable value refers to the amount after the estimated selling price
of inventory minus the estimated cost, estimated sales expenses and related taxes at completion.
The net realizable value of various inventories is determined as follows:
① The inventory of goods directly used for sale, such as finished products, goods and materials used for sale, shall,
in the normal process of production and operation, determine the net realizable value after the estimated selling price
of the inventory minus the estimated sales expenses and relevant taxes.
② For the inventory of materials to be processed, its net realizable value is determined in the normal course of
production and operation by the estimated selling price of the finished products produced less the estimated cost to
be incurred at the time of completion, estimated selling expenses and related taxes.
③ On the balance sheet date, if one part of the same inventory has the contract price without the other part, the net
realizable value shall be determined respectively, and compared with the corresponding cost, the amount of the
withdrawal or reversal of the inventory depreciation provision shall be determined respectively.
Inventory depreciation provision shall be made according to a single inventory item (or inventory category), and
inventory depreciation provision shall be related to the same or similar product series produced or sold in the same
region, and is difficult to be measured separately from other items.
(4) Inventory system
The inventory system adopts the perpetual inventory system.
(5) The amortization method of low-value consumables and packaging
The low-value consumables are amortized by 50-50.
12．Contract assets
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(1) Methods and standards for the recognition of contract assets
The contractual asset means the right to receive a consideration and to depend on any other factor than the passage of
time. Contractual assets and liabilities under the same contract are listed in net value, and contractual assets and
liabilities under different contracts shall not be offset.
(2) Methods for determining and accounting for expected credit losses of contract assets
The provision for impairment of contract assets shall be subject to the expected credit loss method of financial
instruments. For contractual assets that do not include significant financing components, the Company uses a
simplified method to measure loss preparation. For contractual assets containing significant financing components,
the Company measures loss provisions in general methods.
In case of impairment loss of the contract assets, the amount shall be deducted and the "asset impairment loss" shall
debit the provision for impairment of the contract assets.
13．Holding assets for sale or disposal group
(1) Non-current assets held for sale or disposal group recognition criteria
If the Company recovers its book value primarily by sale (including the exchange of non-monetary assets with
commercial substance, the same below) rather than the continuous use of a non-current asset or disposal group, it
should be categorized under “held for sale”. The specific criteria shall simultaneously meet the following conditions:
① According to the practice of selling such assets or disposal groups in similar transactions, they can be sold
immediately under current conditions;
② The sale is most likely, where the company has made a resolution on a sale plan and obtained a definite purchase
commitment, and the sale is expected to be completed within a year.
Among them, the disposal group is a group of assets disposed of as a whole by sale or other method in a transaction,
and the liabilities directly related to those assets transferred in the transaction. Where the asset group or asset group
portfolio of the disposal group shares the goodwill acquired in the enterprise merger in accordance with the
Accounting Standards for Business Enterprises No.8-Asset Impairment, the disposal group shall include the goodwill
allocated to the disposal group.
(2) Accounting treatment methods
If the carrying value of non-current assets held for sale and disposal group is higher than the net amount after using
the fair value minus disposal expense when the initial measurement or remeasurement is made at the balance sheet
date, the carrying value should be written down to the net amount after using the fair value minus the disposal
expense, and the amount written down should be recognized as asset impairment loss and included in current profit
or loss, and the impairment provision for assets held for sale should also be made. For the disposal group, the
confirmed asset impairment loss first offset the carrying value of goodwill in the disposal group, and then offset the
book value of the non-current assets stipulated in the accounting Standards for Business Enterprises No.42- -Non-
current Assets held for Sale, Disposal Group and Terminated Operation (hereinafter referred to as the "Standards for
Holding for Sale" in the disposal group). After deducting the selling expense, if the net amount of the fair value of the
disposal group held for sale increased on the subsequent balance sheet date, the amount previously written down shall
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be restored and reversed within the amount of asset impairment loss recognized in the non-current assets as
prescribed by the held for sale standard after being classified into the holding for sale category, the carry-back amount
is recognised in profit or loss for the current period and its carrying value is increased in proportion to the carrying
value of each non-current asset in the disposal group as measured by the applicable hold-for-sale criteria other than
goodwill; The carrying value of goodwill that has been written off, as well as the asset impairment losses recognized
prior to classifying non-current assets as held for sale under the applicable holding for sale measurement criteria,
cannot be rolled back.
There is no depreciation or amortization of the non-current assets held for sale or the non-current assets in the
disposal group, and the interest and other expenses of the liabilities in the disposal group held for sale continue to be
recognized.
If the non-current assets or disposal group no longer meets the requirements of the held for sale category, it will not
continue to divide the held for sale category or remove the non-current assets from the disposal group held for sale
and measure below:
① The book value before the held for sale category, the amount adjusted for depreciation, amortization or
impairment assumed not to be recognized in the held for sale category;
② Recreable amount.
(3) Termination of operation
Termination of operations is a component of ownership that is separate and has been disposed of or classified by the
Company under one of the following conditions:
① The component represents an independent main business or a separate main operating area;
② This component is part of a plan associated with the disposition of a separate principal business or a separate main
business area of operation;
③ The component is a subsidiary acquired exclusively for resale.
The Company shall separately report the profit and loss of terminated operation in the income statement, and the
impairment loss and loss amount of terminated operation and loss shall be presented as the profit and loss of
terminated operation.
14．Long-term equity investment
The long-term equity investment mentioned in this part refers to the long-term equity investment that the Company
has the control, joint control or significant influence on the invested unit. The Company has no control, joint control
or significant influence of the invested unit as a financial assets accounting measured at fair value and included in the
current profits and losses. If the changes is non-tradable, the Company may choose to designate it as financial assets
accounting measured at fair value and whose changes are included in other comprehensive income. The accounting
policies are detailed in Note IV and 10 "Financial Instruments".
Joint control means the common control of the Company over an arrangement in accordance with the relevant
agreement, and the relevant activities of the arrangement must be decided after the unanimous consent of the
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participants who share the control right. Significant impact means that the Company has the right to participate in the
decision-making of the financial and operational policies of the investee, but is unable to control or jointly control the
formulation of these policies together with other parties.
(1) Determination of the investment cost
For the long-term equity investment acquired by the enterprise merger under the same control, the initial investment
cost of the long-term equity investment shall be based on the merger date of the share of the book value of the
incorporated party in the consolidated financial statements of the final controlling party. The difference between the
initial investment cost of the long-term equity investment and the cash paid, the transferred non-cash assets and the
book value of the debts undertaken shall adjust the capital reserves; if the capital reserve is insufficient, the retained
earnings shall be adjusted. If the issue of equity securities is taken as the merger consideration, the capital reserves
shall be adjusted on the basis of the share of the shareholders' equity of the merged party in the consolidated financial
statements of the final controlling party as the initial investment cost of the long-term equity investment and the total
face value of the issued shares as equity, and the difference between the initial investment cost of the long-term equity
investment and the total face value of the issued shares; if the capital reserve is insufficient to offset, the retained
earnings shall be adjusted. If the equity of the merged party under the same control is acquired through multiple
transactions step by step, and the enterprise merger under the same control, whether it is a "package transaction"
respectively: for a "package transaction", each transaction shall be treated as a transaction that obtains control right. If
it does not belong to the "package transaction", the capital reserves shall be adjusted on the merger date according to
the sum of the book value of the equity of the shares of the final controller and the initial investment cost of the book
value before the merger date; if the capital reserve is insufficient, the retained earnings shall be adjusted. The equity
investment held by the equity method before the merger date or recognized as financial assets measured at fair value
and whose changes are included in other comprehensive income shall not be accounted for for the time being.
For the long-term equity investment acquired by the enterprise merger not under the same control, the merger cost
shall be taken as the initial investment cost of the long-term equity investment on the purchase date, and the merger
cost includes the sum of the assets paid by the acquirer, the liabilities incurred or assumed, and the equity securities
issued. If the equity of the acquirer is acquired step by step through multiple transactions and the enterprise merger is
not under the same control, it shall be treated whether it belongs to the "package transaction" respectively: for the
"package transaction", each transaction shall be treated as a transaction acquiring control. If it does not belong to the
"package transaction", the sum of the book value of the equity investment of the original acquiree plus the new
investment cost shall be the initial investment cost of the long-term equity investment calculated according to the cost
method. If the equity originally held is accounted by the equity method, the relevant other comprehensive income
shall not be treated for the time being.
The fee of audit, legal services, evaluation and consulting and other related management matters incurred by the
consolidated party or the acquirer shall be recorded into the current profits and losses at the time of occurrence.
Equity investments other than long-term equity investments formed by business mergers are initially measured at cost,
which depends on the manner in which long-term equity investments are acquired. It is determined in accordance
with the actual cash purchase price paid by the Company, the fair value of the equity securities issued by the Company,
the value agreed in the investment contract or agreement, the fair value or original book value of the assets exchanged
in the non-monetary asset exchange transaction, and the fair value of the long-term equity investment itself. Fees,
taxes and other necessary expenses directly related to the acquisition of long-term equity investments are also included
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in the cost of investment. For the additional investment that can exert a significant impact on the invested unit or
exercise joint control but does not constitute control, the cost of long-term equity investment is the sum of the fair
value of the original equity investment plus the cost of the new investment determined in accordance with Accounting
Standard for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments.
(2) Follow-up measurement and profit and loss recognition methods
The long-term equity investment with joint control (except the co-operator) or significant impact, shall be accounted
by the equity method. In addition, the Company's financial statements use the cost method to account for the long-
term equity investment that can be controlled by the invested unit.
① Long-term equity investment calculated by the cost method
When the cost method is used, the long-term equity investment is priced at the cost of the initial investment, and the
cost of the additional or withdrawn investment is adjusted for the long-term equity investment. In addition to the cash
dividends or profits actually paid at the time of obtaining the investment or the cash dividends declared but not yet
paid included in the consideration, the investment income of the current period shall be recognized in accordance
with the cash dividends or profits declared by the invested unit.
② Long-term equity investment accounted for by the equity method
When using the equity method, if the initial investment cost of a long-term equity investment is greater than the fair
value share of the investee's identifiable net assets when the investment is made, the initial investment cost of the
long-term equity investment should not be adjusted; If the initial investment cost is less than the fair value share of the
identifiable net assets of the investee, the difference should be included in the current profit or loss, and the cost of
long-term equity investment should be adjusted at the same time.
When using the equity method, the investment income and other comprehensive income shall be confirmed according
to the share of the book value of the invested unit; the value and the book value of the long-term equity investment
shall be adjusted according to the profit or cash dividend of the long-term equity investment and included in the
capital reserve. When recognizing the share of the net profit and loss of the invested entity, the net profit of the
invested entity shall be adjusted on the basis of the fair value of the identifiable assets of the invested entity at the time
of obtaining the investment. If the accounting policies and accounting periods adopted by the invested entity are
inconsistent with the Company, the financial statements of the invested entity shall be adjusted in accordance with the
accounting policies and accounting periods of the Company, and the investment income and other comprehensive
income shall be confirmed. For the transactions between the Company and the joint venture, if the assets invested or
sold do not constitute business, the unrealized internal transaction gains and losses shall be offset by the Company,
and the investment gains and losses shall be recognized. However, the unrealized internal transaction loss incurred by
the Company and the invested entity belongs to the impairment loss of the transferred assets and shall not be offset.
If the assets invested by the Company into a joint venture or an associate constitute a business, and the investor thus
obtains long-term equity investment but does not acquire control, the fair value of the invested business shall be taken
as the initial investment cost of the new long-term equity investment, and the difference between the initial investment
cost and the book value of the invested business shall be fully included in the current profit or loss. Where the assets
sold by the Company to a joint venture or associate constitute a business, the difference between the consideration
obtained and the carrying value of the business should be fully included in the current profit or loss. Where the assets
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purchased by the Company from associates and joint ventures constitute business, the accounting treatment shall be
carried out in accordance with the provisions of Accounting Standard for Business Enterprises No. 20 - Business
Combination, and the gain or loss related to the transaction shall be fully recognized.
When confirming the net loss incurred by the investee, the book value of the long-term equity investment and the
other long-term equity that substantially constitute the net investment of the investee shall be written down to zero. In
addition, if the Company has the obligation to bear additional losses to the investee, the estimated liabilities shall be
recognized according to the expected obligations and included in the current investment losses. If the invested entity
achieves net profit in the following period, the Company shall resume the recognized income share after the earnings
share makes up for the unrecognized loss share.
③ Acquisition of minority equity
At the time of preparing the consolidated financial statements, the capital reserves shall be adjusted due to the
difference between the new long-term equity investment of the purchase of minority shares and the share of the net
assets continuously calculated by the subsidiary since the purchase date (or merger date). If the capital reserves are
insufficient to write down, the retained earnings shall be adjusted.
④ Disposal of long-term equity investments
In the consolidated financial statements, the parent company shall partially dispose of the long-term equity investment
of the subsidiary and the difference between the disposal price and the long-term equity investment of the subsidiary
and the disposal of the relevant accounting policies described in Note IV, 6, "Judgment Standard for Control and
Preparation Method of Consolidated Financial Statements" (2).
For the disposal of long-term equity investment under other circumstances, the difference between the book value
and the actual obtained price shall be recorded in the current profit and loss.
For the long-term equity investment calculated by the equity method, if the remaining equity after disposal is still
calculated by the equity method, the other comprehensive income parts originally included in the shareholders' equity
shall be treated on the same basis as the direct disposal of the related assets or liabilities of the invested unit in the
corresponding proportion. The owner's equity recognized due to the owner's equity other than the net profit and loss,
other comprehensive income and profit distribution shall be transferred to the profit and loss of the current period.
If a long-term equity investment is accounted for by the cost method and the remaining equity is still accounted for by
the cost method after disposal, the other comprehensive income recognized by the equity method or financial
instrument recognition and measurement criteria before the acquisition of control of the investee shall be accounted
for on the same basis as the direct disposal of the relevant assets or liabilities by the investee. And carry forward the
current profit and loss pro rata; Changes in owners' equity other than net profit and loss, other comprehensive income
and profit distribution in the net assets of investee units recognized as a result of the equity method of accounting are
carried forward to current profit and loss in proportion.
If the Company loses control of the investee due to the disposal of part of the equity investment, when preparing
individual financial statements, the remaining equity after disposal can exercise common control or exert significant
influence on the investee, it shall be calculated according to the equity method, and when the remaining equity is
regarded as self-acquired, it shall be adjusted by the equity method. If the remaining equity after disposal cannot jointly
control or exert significant influence on the investee, it shall be accounted for in accordance with the relevant
provisions of the Standards for the recognition and measurement of financial instruments, and the difference between
the fair value and the carrying value on the date of loss of control shall be included in the current profit or loss. Other
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comprehensive income recognised by the equity method or financial instrument recognition and measurement
standards before the Company acquired control of the investee shall be accounted for on the same basis as the direct
disposal of the relevant assets or liabilities by the investee when it loses control of the investee. Changes in owner's
equity other than net profit and loss, other comprehensive income and profit distribution in the net assets of the
investee recognized by the equity method are transferred to current profit and loss when the control over the investee
is lost. Among them, if the remaining equity after disposal is accounted for by the equity method, other
comprehensive income and other owner's equity are carried forward in proportion; If the remaining equity after
disposal is changed to accounting treatment according to the recognition and measurement standards of financial
instruments, other comprehensive income and other owners' equity are all carried forward.
If the Company loses its joint control or significant impact on the invested unit due to the disposal of part of the
equity investment, the remaining equity after disposal shall be calculated according to the financial instrument
recognition and measurement criteria, and the difference between the fair value and the book value on the day of the
loss of joint control or significant impact shall be recorded into the current profit and loss. The original equity
investment due to the equity method and accounting confirmation of other comprehensive income, in the termination
of the accounting of the basis of the same, because of the investment except the net profit and loss, other
comprehensive income and profit distribution of other owner's equity changes, when the equity method all into the
current investment income.
The Company will dispose of its equity investment in subsidiaries step by step through multiple transactions until it
loses control. If the above transactions are package transactions, each transaction shall be accounted for as one
transaction disposing of the equity investment of subsidiaries and losing control, and the difference between the
disposal price of each disposal and the book value of the long-term equity investment corresponding to the equity
disposed of before the loss of control shall be the difference between the disposal price and the long-term equity
investment corresponding to the equity disposed before the loss of control. First recognized as other comprehensive
income, when the loss of control is transferred to the loss of control of the current period profit and loss.
See Note Ⅳ and 20 "Long-term asset impairment" for the recognition standard and withdrawal method of
impairment provisions for long-term equity investment.
15．Investment real estate
The company's investment real estate refers to the real estate held for the purpose of earning rent or capital
appreciation, or both, including the land use right leased, the land use right held and ready to be transferred after the
appreciation, and the leased buildings. The investment real estate shall be initially measured according to the cost, and
the cost model shall be adopted to subsequently measure the investment real estate or the fair value model on the
balance sheet date.
(1) Adopt the cost model
Investment real estate is depreciated or amortized by the following useful life and estimated net residual value rate:
Name Service life Estimated net residual value Annual depreciation rate or
rate amortization rate
House and buildings 20-40 years 0%-10% 2.25%-5.00%
See Note Ⅳ and 20 "Long-term asset impairment" for the recognition standard and withdrawal method of
investment real estate impairment provisions using the cost model.
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(2) Adopt the fair value model
Without depreciation or amortization of the investment real estate, the book value shall be adjusted based on the fair
value of the investment real estate on the balance sheet date, and the difference between the fair value and the original
book value shall be included in the current profit and loss.
16．Fixed assets
(1) Fixed assets recognition conditions
Fixed assets refer to tangible assets held for the production of goods, providing labor services, leasing or operation
and management, and with a service life of more than one fiscal year. Fixed assets shall be confirmed if the following
conditions are met:
① Economic benefits related to this fixed asset are likely to flow into the enterprise;
② The cost of this fixed asset can be measured reliably.
(2) Various depreciation methods of fixed assets
All kinds of fixed assets adopt the straight line method and make depreciation according to the following useful life,
estimated net residual value rate and depreciation rate:
Categories Depreciation method Service life Estimated net salvage rate Yearly depreciation rate
Houses and buildings straight-line depreciation 20-40 years 0%-10% 2.25%-5.00%
method
Ships and nets straight-line depreciation 5-30 years 3%-5% 3.17%-19.40%
method
Machinery equipment straight-line depreciation 8-20 years 0%-10% 4.50%-12.50%
method
Delivery equipment straight-line depreciation 5 years 0%-10% 18.00%-20.00%
method
Furniture and office straight-line depreciation 5 years 0%-10% 18.00%-20.00%
equipment method
(3) See Note Ⅳ and 20 "Long-term asset impairment" for the impairment test method and the withdrawal method
of the impairment provisions of fixed assets.
17．Construction in process
The cost of the project under construction shall be determined according to the actual project expenditure, including
the project expenditure incurred during the period under construction, the capitalized borrowing expenses before the
project reaches the predetermined usable state and other related expenses.
The construction under construction is carried forward to fixed assets after reaching the predetermined usable state, in
which the construction under construction is carried forward to fixed assets when delivered with fishing conditions,
and the construction is carried forward to fixed assets when the physical construction (including installation) work has
been fully completed or has been substantially completed.
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See Note Ⅳ and 20 "Long-term asset impairment" for the impairment test method and impairment provision
method of the construction under construction.
18．Borrowing costs
(1) If the loan expenses incurred by the Company can be directly attributed to the purchase, construction or
production of the assets meeting the capitalization conditions, they shall be capitalized and included in the relevant
asset costs. Assets that meet the capitalization conditions refer to the assets such as fixed assets, investment real estate
and inventory that take a long time (usually one year or more) for purchase, construction or production activities to
reach the predetermined marketable status. Other borrowing expenses shall be recognized as expenses according to
the amount of occurrence and shall be included in the current profits and losses. Borrowing expenses include
borrowing interest, amortization of discount or premium, auxiliary expenses and exchange difference due to foreign
currency borrowing, etc.
(2) If the borrowing costs meet the following conditions, the capitalization should begin:
① Asset expenditure has been incurred, including the cash paid for the purchase, construction or production of
assets that meet the conditions for capitalization, the transfer of non-cash assets or the assumption of interest-bearing
debts;
② Borrowing expenses have been incurred;
When the purchase, construction or production of assets meeting the capitalization conditions reach the
predetermined usable or marketable status, the borrowing expenses shall be capitalized.
In case of the abnormal interruption of the assets for more than 3 consecutive months, the capitalization of the
borrowing expenses shall be suspended. The borrowing expenses incurred during the interruption period are
recognized as expenses and recorded into the current profits and losses until the purchase and construction of the
assets or the production activities resume. If the interruption is due to the capitalization of the qualified assets
purchased or produced as necessary for the intended usable or marketable status, the capitalization of the borrowing
costs continues.
(3) During the capitalization period, the amount of interest (including amortization of discounts or premiums)
capitalized for each accounting period shall be determined as follows:
① Where a special loan is borrowed for the purpose of purchase, construction or production of assets that meet the
conditions for capitalization, the amount shall be determined by the interest expense actually incurred in the current
period, minus the interest income of the unused borrowing funds deposited in the bank or the investment income
obtained from temporary investment.
② Where a general loan is occupied for the purpose of purchase, construction or production of assets that meet the
conditions for capitalization, the amount of interest on which the general loan shall be capitalized shall be calculated
and determined by multiplying the weighted average of the accumulated asset expenditure exceeding the special loan
by the capitalization rate of the general loan occupied. The capitalization rate is determined according to the weighted
average interest rate of general borrowing.
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Where there is a discount or premium for the loan, the amount of discount or premium for each accounting period
shall be determined according to the actual interest rate method and the amount of interest for each period shall be
adjusted.
During the capitalization period, the amount of interest in each accounting period shall not exceed the amount of
interest actually incurred by relevant loans in the current period.
(4) The auxiliary expenses incurred by special loans, which are incurred before the assets purchased, built or produced
eligible for capitalization reach the predetermined usable or marketable state, are capitalized according to the amount
incurred at the time of occurrence and are included in the cost of the assets eligible for capitalization; If an asset that is
purchased, built or produced and eligible for capitalization has reached a predetermined useable or marketable state, it
shall be recognized as an expense based on the amount incurred at the time of occurrence and recorded in the current
profit or loss. Auxiliary expenses incurred by general loans are recognized as expenses according to their amount at
the time of occurrence and are included in current profit or loss.
19．Intangible assets
(1) Intangible assets refer to the identifiable non-monetary assets owned or controlled by an enterprise without a
physical form. Intangible assets are initially measured according to the cost. Analyze and judge the service life of the
intangible assets when they are acquired.
(2) The Company generally determines the useful life of intangible assets:
① Information on the usual life cycle of the product produced with the asset;
② Technology, process and other aspects of the current situation and the estimation of the future development trend;
③ The market demand for the products or services produced with the asset;
④ Action expected by current or potential competitors;
⑤ Prospective maintenance expenditures to maintain the ability to bring economic benefits to the asset, and the
Company's ability to expect to pay related expenditures;
⑥ Relevant legal provisions or similar restrictions on the control period of the asset, such as the concession period,
lease term, etc.;
⑦ The correlation with the service life of other assets held by enterprises.
If it is impossible to foresee the period of intangible assets to bring economic benefits to the Company, it shall be
regarded as intangible assets with uncertain service life.
(3) For intangible assets with limited service life, the system shall amortize reasonably (or straight line method) during
the service life. At the end of each year, the Company will review the service life and amortization methods of
intangible assets with limited service life. If the service life and amortization method of intangible assets are different
from the previous estimate, the amortization period and amortization method will be changed. For the intangible
assets with limited service life, the service life and the estimated net residual value rate of the intangible assets are as
follows:
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Name Service life Judging basis Estimated net
of service life salvage rate
Land use right 42-49 years Term of land certificate 0%
Software 5-10 years Historical experience 0%
See Note Ⅳ and 20 "Long-term asset Impairment" for the impairment test method and impairment provision
withdrawal method of intangible assets with limited service life.
(4) Intangible assets with uncertain service life include intangible assets that have been continued to be used after
amortization, while intangible assets with uncertain service life shall not be amortized
(5) Internal research and development
1. Expenditure of internal research and development project, including expenditure of research stage and development
stage, including:
1) Research is an original planned survey for acquiring and understanding new scientific or technical knowledge.
2) Development refers to the application of research results or other knowledge to a plan or design to produce new or
substantially improved materials, devices, products, etc.
2. Expenditures incurred during the research phase of internal research and development projects are recognized in
the current period's profit and loss; expenditures during the development phase that meet the following conditions are
recognized as intangible assets:
1) It is technically feasible to complete the intangible assets to use or sell them;
2) Having the intention to complete the intangible assets and use or sell them;
3) The ways in which the intangible assets generate economic benefits, including proving that the products produced
with the intangible assets exist in the market or that the intangible assets themselves exist in the market, and that the
intangible assets will be used internally, their usefulness shall be proved;
4) Having sufficient technical, financial resources and other resources to complete the development of the intangible
assets and having the ability to use or sell the intangible assets;
5) The expenditure attributable to the development phase of the intangible asset can be measured reliably.
20．Long-term asset impairment
For non-current non-financial assets such as fixed assets, construction projects under construction, use assets with
limited use life, intangible assets, investment real estate measured by cost mode and long-term equity investment in
subsidiaries, joint ventures and joint ventures, the Company determines whether there are signs of impairment on the
balance sheet date. If there are signs of impairment, the recoverable amount shall be estimated and the impairment
test shall be conducted. Goodwill, intangible assets with uncertain service life and intangible assets that have not yet
reached the usable state shall be subject to impairment test every year, regardless of whether there are signs of
impairment.
If the result of the impairment test indicates that the recoverable amount of the asset is lower than its book value, the
impairment provision shall be drawn according to the difference and included in the impairment loss. The recoverable
amount is the higher value between the fair value of the asset minus the disposal expense and the present value of the
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estimated future cash flow of the asset. The fair value of the asset is determined according to the price of the sales
agreement in fair trading; if there is no sales agreement but there is an active asset market, the fair value is determined
according to the acquiree bid of the asset; if there is no sales agreement and asset active market, the fair value of the
asset is estimated on the basis of the best-available information. The disposal expenses include legal expenses related
to the disposal of the assets, related taxes, handling fees, and direct expenses incurred to bring the assets to a
marketable status. The present value of the estimated future cash flow of the asset shall be determined according to
the amount of the estimated future cash flow generated during the continuous use of the asset and the final disposal at
an appropriate discount rate. The asset impairment provision is calculated and confirmed on the basis of a single asset.
If it is difficult to estimate the recoverable amount of a single asset, the recoverable amount of the asset group shall be
determined by the asset group to which the asset belongs. Asset groups are the minimum portfolio that can
independently generate cash inflows.
In the case of impairment test of goodwill, the carrying value of goodwill is allocated to the relevant asset group
reasonably from the date of purchase; if it is difficult to allocate to the relevant asset group, it shall be allocated to the
relevant asset group portfolio. The relevant asset group or asset group portfolio is an asset group or asset portfolio
that can benefit from the synergies of business consolidation and is not greater than the reporting division determined
by the Company.
When the impairment test is conducted on the relevant asset group or asset group portfolio containing goodwill, if
there are signs of impairment in the asset group or asset group portfolio related to goodwill, the impairment test shall
be conducted on the asset group or asset group portfolio excluding goodwill to calculate the recoverable amount and
confirm the corresponding impairment loss. Then conduct impairment tests on the asset group or portfolio of asset
groups containing goodwill, Compare its carrying value to the recoverable amount, If the recoverable amount is lower
than the carrying value, The amount of impairment loss is first offset against the carrying value of goodwill in the asset
group or portfolio, According to the proportion of the book value of other assets except goodwill in the asset group
or asset group portfolio, offset the book value of other assets, Provided that the book value of each asset after
deduction shall not be lower than the fair value of the asset minus the net amount (if certain) and the present value of
the estimated future cash flow of the asset (if certain), And not lower than zero.
Once the impairment loss of the above assets is recognized, the value shall not be recovered in the later period.
21．Long-term deferred expenses
Long-term deferred expenses are the expenses incurred by the Company that shall be borne by the current and
subsequent period for more than one year (excluding one year). Long-term deferred expenses are equally amortized
during the benefit period. If the long-term deferred expenses cannot benefit the later accounting period, the
unamortized surplus value will be transferred to the current profit and loss.
Long-term deferred expenses are amortized on a straight-line basis over the following period:
Name Amortization period
Renovation costs 2-5 years
22．Contract liabilities
Contract liabilities reflect the obligation to transfer goods to the customer for the consideration received or receivable.
If the customer has paid the contract consideration or has obtained the right to receive the contract consideration
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unconditionally before the transfer to the customer, the contract liabilities shall be recognized according to the
amount received or receivable when the actual payment and the amount due. Contractual assets and liabilities under
the same contract shall be listed in net value, and contractual assets and liabilities under different contracts shall not be
offset.
23．Employee compensation
(1) The range of employee compensation
Employee compensation refers to the various forms of compensation or compensation given by the company for the
service provided by the employee or for the termination of the labor relationship. Employee compensation includes
short-term compensation, post-resignation benefits, dismissal benefits and other long-term employee benefits. The
benefits provided by the company to the employees' spouses, children, dependants, family of the deceased employees
and other beneficiaries also belong to the employee compensation.
(2) Short-term compensation refers to the full employee compensation to be paid within 12 months after the end of
the annual reporting period provided by relevant services.
Short-term salary includes social insurance premiums such as employees' wages, bonuses, allowances and subsidies,
employee welfare, medical insurance, working injury insurance and maternity insurance, housing provident fund, trade
union fund and employee education fund, short-term paid absence, short-term profit sharing plan, non-monetary
welfare and other short-term salary.
Short-term compensation during the accounting period when the employee provides services for the company, the
actual short-term compensation is recognized as a liability and recorded in the current profit and loss or related asset
costs.
Post-resignation benefits refer to all forms of remuneration and benefits provided by the Company for the retirement
of the employee or the termination of the labor relationship with the Company, except for short-term compensation
and dismissal benefits.
Post-resignation benefit plan include the defined contribution plan and the defined benefit plan. Among them, the
defined contribution plan is the post-resignation welfare plan in which the Company no longer assumes further
payment obligations; the defined benefit plan refers to the post-resignation welfare plan other than the defined
contribution plan.
The defined contribution plan includes basic endowment insurance, unemployment insurance, etc. During the
accounting period when the employee provides the service, the amount payable calculated according to the defined
contribution plan shall be recognized as liabilities and included in the current profit and loss or related asset costs.
At the end of the reporting period, the employee compensation costs arising from the defined benefit plan should be
recognized as the following components:
① Service costs, including current service costs, past service costs, and settlement gains or losses.
② Net interest on the net liabilities or net assets of the defined benefit plan, including interest income on the planned
assets, interest expense on the obligations of defined benefit plan, and interest affected by the asset ceiling.
③ Remeasure the change in the net liabilities or net assets of the defined benefit plan.
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Unless other accounting standards require or allow employee benefit costs to be included in asset costs, items ① and
② above shall be included in current profits and losses; item ③ shall be included in other comprehensive benefits
and will not be returned to profits and losses during subsequent accounting periods, but these amounts recognized in
other comprehensive benefits may be transferred within the equity.
Under the defined benefit plan, the past service costs are recognized as current expenses on the following date:
1) When modifying the defined benefit plan.
2) When the enterprise confirms the relevant restructuring costs or dismissal benefits.
Determine a settlement benefit or loss when setting a defined benefit plan settlement.
(3) Dismissal benefits refer to the compensation given by the Company to the employee to terminate the labor
relationship with the employee before the expiration of the labor contract, or to encourage the employee to voluntarily
accept the reduction.
If the Company provides dismissal benefits to the employees, the Company shall confirm the liabilities and include in
the current profit and loss: when the Company cannot unilaterally withdraw the dismissal benefits due to the
termination of labor relationship plan or reduction proposal; when the Company recognizes the costs or expenses
related to the restructuring of the dismissal benefits.
(4) Other long-term employee benefits refer to all employee compensation except short-term compensation, post-
resignation benefits and dismissal benefits, including long-term paid absence, long-term disability benefits, long-term
profit sharing plan, etc.
Other long-term employee benefits provided by the Company to employees that meet the conditions of the deposit
plan shall apply to the relevant provisions of the above deposit plan.
Except for the circumstances that meet the conditions for the defined contribution plan, other long-term employee
welfare net liabilities or net assets shall be recognized and measured in accordance with the relevant provisions of the
defined benefit plan. At the end of this period, the Company recognizes the employee compensation costs generated
by other long-term employee benefits as the following components:
① Service cost.
② Net interest on other long-term employee welfare net liabilities or net assets.
③ Re-measure changes in the net liabilities or net assets of other long-term employee benefits.
In order to simplify the relevant accounting treatment, the total net amount of the above items is included in the
current profit or loss or related asset costs.
24．The obligations related to the contingent which meet the following conditions shall be recognized as estimated
liabilities:
(1) This obligation is the current obligation of the enterprise;
(2) Performing this obligation is likely to lead to the outflow of economic benefits from the enterprise;
(3) The amount of the obligation can be reliably measured.
The estimated liabilities shall be initially measured at the best estimate of the expenditures required to meet the
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relevant current obligations.
25．Share payment
(1) Accounting treatment method of share payment
Share payment is a transaction that grants the equity instruments or assumes the liabilities determined based on the
equity instruments for the purpose of obtaining the services provided by the employee or other parties. Share payment
is divided into share payment settled by equity and share payment settled in cash.
① Share payments settled by equity
Share payment for equity settlement of services provided by the employee, should be measured at the fair value of the
employee equity instrument on the grant date. The amount of the fair value shall be calculated in the relevant costs or
expenses on the basis of the best estimate of the waiting period, including the relevant costs or expenses on the grant
date and the capital reserve shall be increased accordingly.
On each balance sheet date during the waiting period, the Company makes the best estimate and corrects the
estimated number of feasible equity instruments based on the latest subsequent information, including changes in the
number of feasible employees. The impact of the above estimate shall be included in the relevant costs or expenses of
the current period, and the capital reserves shall be adjusted accordingly.
In exchange for the equity settlement of the fair value of the service can be measured reliably, according to the fair
value of the service in the date, if the fair value of the other services cannot be measured reliably, but the fair value of
the equity instrument can be measured reliably, according to the fair value of the date of the service, included in the
relevant costs or expenses, and increase the shareholders' equity accordingly.
② Payment in shares settled in cash
Share payments settled in cash are measured at the fair value of the liabilities determined on the basis of shares or
other equity instruments undertaken by the Company. If the right is available immediately after the grant, increase the
liabilities on the grant date and the amount of the right on the basis of the best estimate on the basis of the fair value
of the liabilities.
On each balance sheet date and settlement date before the settlement of relevant liabilities, the fair value of the
liabilities shall be measured and the changes shall be included in the current profit and loss.
(2) Modify or terminate the relevant accounting treatment of the share payment plan
When the Company changes the share payment plan, if the modification increases the fair value of the granted equity
instrument, the increase in the acquired services shall be recognized according to the increase in the fair value of the
equity instrument. The increase in the fair value of the equity instrument is the difference between the fair value of the
equity instrument on the date of amendment before and after the amendment. If the amendment reduces the total fair
value of share payment or adopts any other way unfavorable to the employee, the accounting for the services obtained
shall be deemed to have never occurred unless the Company cancels part or all of the granted equity instruments.
During the waiting period, if the granted equity instrument is cancelled, the Company will treat the cancellation of the
granted equity instrument as an accelerated exercise of right, immediately record the amount recognized during the
remaining waiting period into the current profit and loss, and recognize the capital reserves. If the employee or other
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party can choose to meet the non-viable conditions but not within the waiting period, the company will cancel them as
the interest granting instrument.
(3) Accounting for share payment transactions involving the Company and shareholders or actual controllers of the
Company
Where one of the settlement enterprises of the Company and the enterprise receiving services is outside the Company,
and one of the other is outside the Company, accounting treatment shall be made in the consolidated financial
statements of the Company in accordance with the following provisions:
① If the settlement enterprise settles with its own equity instrument, the share payment transaction shall be treated as
share payment for equity settlement; in addition, as share payment for cash settlement.
If the settlement enterprise is an investor of the service enterprise, it shall be recognized as a long-term equity
investment in the service enterprise according to the fair value of the equity instrument on the grant date, and the
capital reserves (other capital reserves) or liabilities shall be recognized.
② If the service enterprise has no settlement obligation or the employee is its own equity instrument, the share
payment transaction shall be treated as the share payment for equity settlement; if the service enterprise has the
settlement obligation and is not its own equity instrument, the share payment transaction shall be treated as the share
payment for cash settlement.
For the share payment transaction between the enterprises in the Company, and the settlement enterprise is not the
same enterprise, the confirmation and measurement of the share payment transaction in the individual financial
statements of the service enterprise and the settlement enterprise shall be handled in accordance with the above
principles.
26．Preferred shares, perpetual bonds and other financial instruments
(1) The distinction between perpetual bonds and preferred shares
Financial instruments such as perpetual bonds and preferred shares issued by the Company, which meet the following
conditions:
① The financial instrument does not include the contractual obligation to deliver cash or other financial assets to
other parties, or to exchange financial assets or financial liabilities with other parties under potentially adverse
conditions;
② If the financial instrument is required to be settled, if the financial instrument is not derivative, the contractual
obligation of delivering a derivative, the Company can only settle the financial instrument by exchanging a fixed
amount of cash or other financial assets in a fixed amount of its own equity instruments.
Except for financial instruments that can be classified as equity instruments under the above conditions, other
financial instruments issued by the Company shall be classified as financial liabilities.
If the financial instruments issued by the Company are compound financial instruments, they shall be recognized as a
liability according to the fair value of the liability component, and shall be recognized as "other equity instruments"
according to the amount actually received after deducting the fair value of the liability component. The transaction
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costs incurred in the issuance of compound financial instruments shall be apportioned between the liability
components and the equity component according to their respective proportion to the total issuance price.
(2) Accounting methods for perpetual debt and preferred shares, etc
Financial instruments such as perpetual debt or preferred shares, or financial instruments classified as financial
liabilities, whose related interest, dividends (or dividends), gains or losses, and gains or losses arising from redemption
or refinancing, are included in the current profit and loss, except for the borrowing expenses meeting the
capitalization conditions (see Note IV and 18 "borrowing expenses").
For financial instruments such as perpetual bonds and preferred shares classified as equity instruments, upon issuance
(including refinancing), repurchase, sale or cancellation, the Company shall be treated as a change in equity, and the
relevant transaction costs shall also be deducted from the equity. The Company treats the distribution of the equity
instrument holder as a profit distribution.
The Company does not recognize the change in the fair value of the equity instruments.
27．Revenue
Accounting policies used for revenue recognition and measurement
(1) Revenue recognition principle
When the contract with the customer meets both of the following conditions, revenue is recognized when the
customer obtains control of the relevant goods:
① The parties have approved the contract and undertake to perform their respective obligations;
② The contract specifies the rights and obligations of the parties related to the transfer of the goods or services
provided;
③ The contract has a clear payment clause related to the transferred goods;
④ The contract has commercial substance, that is, the performance of the contract will change the risk, time
distribution or amount of the Company's future cash flow;
⑤ A consideration entitled to for the transfer of goods to a customer is likely to be recovered.
Assess the contract on the start date of the contract, identify the individual performance obligations contained in the
contract, and share the transaction price to each individual performance obligation in relative proportion to the
individual selling price of the goods promised by each individual performance obligation. The influence of variable
consideration, significant financing components existing in the contract, non-cash consideration, payable customer
consideration and other factors are considered in determining the transaction price. Then determine whether the
individual performance obligation should be performed within a certain period or at a certain point, and recognize the
income respectively when performing each individual performance obligation.
If one of the following conditions is met, it shall be performed within a certain period; otherwise, or at a certain point:
1) The customer obtains and consumes the economic benefits brought by the enterprise's performance at the same
time;
2) Customers can control the goods under construction during the performance process of the enterprise;
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3) The commodities produced by the enterprise during the performance of the contract have irreplaceable purposes,
and the enterprise has the right to collect money for the accumulated performance that has been completed during the
whole contract period.
For the performance obligations performed within a certain period of time, the revenue shall be recognized according
to the performance progress during that period. The performance progress shall be determined by the input method
or the output method according to the nature of the transferred goods. If the performance progress cannot be
reasonably determined and the cost incurred is expected to be compensated, the income shall be recognized according
to the amount of the cost incurred until the performance progress can be reasonably determined.
If one of the above conditions is not met, the revenue will be apportioned to the transaction price of the individual
performance obligation at the point when the customer obtains control of the relevant goods. When determining
whether the customer has acquired control of the commodity:
<1> The enterprise has the right to current payment for the goods, that is, the customer has the obligation of current
payment for the goods;
<2> The enterprise has transferred the legal ownership of the commodity to the customer, that is, the customer has
the legal ownership of the commodity;
<3> The enterprise has transferred the product to the customer, that is, the customer has the physical possession of
the commodity;
<4> The enterprise has transferred the main risks and remuneration in the ownership of the commodity to the
customer, that is, the customer has acquired the main risks and remuneration in the ownership of the commodity;
<5> The customer has accepted the item;
<6> Other indications that the customer has acquired control of the goods.
(2) Methods of revenue recognition used by the Company
① Revenue recognized by the Company at a point in time in the control over assets
For the foreign sale of seine fish, the Company uses sales contracts and settlement contracts as the basis, recognizes
the change of ownership based on the date of settlement contracts, and then recognizes revenue accordingly.
Most of the Company’s long-line fishing utensil and fishing goods will be transported back to China for sale. Sales
contracts and settlement contracts will be used as the basis. The Company recognizes the change of ownership based
on the date of settlement contracts and then recognizes revenue accordingly.
Processing of aquatic products for domestic sale by the Company: Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd.
issues shipment confirmations according to faxed or email orders from domestic clients. The Company delivers goods
based on shipping notes issued by the sales department and confirmed by the warehouse department. After clients
acknowledge receipt, the Company will recognize revenue.
Processing of aquatic products for foreign sale by the Company: After receiving purchase orders from foreign clients,
the international trade department will issue export shipment confirmations and arrange the storage and transport
department to prepare the goods. The Company will revenue sales revenue based on shipping notes, packing lists,
customs declaration forms, and other export documents.
② Revenue recognized by the Company by performance period:
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The Company’s revenue from cold storage: After receiving orders from clients and after the goods are put in storage,
the warehouse department will issue warehouse warrants to clients to confirm the specific names, specifications,
pieces, weight, and storage dates. After the warehouse warrants are signed by the warehouse manager and confirmed
by clients, the Company will recognize revenue by calculating the storage fees based on the actual number of storage
days.
28．Contract acquisition cost and contract performance cost
(1) Method of determining the amount of assets related to the contract cost
The assets related to the contract costs include the contract acquisition costs and the contract performance costs.
Contract acquisition cost, that is, if the incremental cost incurred in the contract acquisition is expected to be
recovered, it is recognized as an asset as the cost of contract acquisition. Incremental cost refers to the cost that will
not occur without obtaining a contract (such as sales commission, etc.). If the amortization period of the asset does
not exceed one year, it may be recorded into the current profit and loss at the time of occurrence.
Other expenses incurred in the Company to obtain the Contract in addition to the incremental cost expected to be
recovered (e. g. travel expenses, bid expenses, bid expenses, and related expenses incurred in preparing the bid
materials) shall be recorded in the current profits and losses upon occurrence, unless these expenses are clearly borne
by the customer.
Contract performance cost, that is, the cost incurred in the performance of the contract, which does not fall within the
scope of other accounting standards for enterprises other than the Accounting Standards for Business Enterprises
No.14-Revenue (2017 Revision) and meets the following conditions, is recognized as the contract performance cost as
an asset:
① This cost is directly related to a current or expected acquired contract, including direct labor, direct materials,
manufacturing costs (or similar costs), costs clearly borne by the Customer, and other costs incurred only because of
the Contract;
② This cost increases the future resources of the enterprise to fulfill its performance obligations;
③ This cost is expected to be recoverable.
(2) Amortization of assets related to the contract costs
Assets related to the contract cost are amortized on the same basis as the recognition of the asset and recorded into
the current profit and loss.
(3) Impairment of assets relating to the contract costs
When determining the impairment of assets related to the contract cost, firstly determine the impairment loss of other
assets recognized in accordance with other relevant business accounting standards; Then, if the book value is higher
than the difference of Item ① minus Item ②, the excess part shall be deducted and recognized as the asset
impairment loss:
① The remaining consideration expected to obtain due to the transfer of the goods related to the asset;
② Estimated estimated for the transfer of the related goods.
During the period before the impairment factors after changes, make the enterprise after the item ① minus the ②
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of the difference higher than the asset book value, back to the original asset impairment provision, and included in the
current profits and losses, but the book value of the assets should not exceed the assumed not provision for
impairment of the assets in the book value.
29．Governmental subsidy
(1) A lease is a contract in which the Company has transferred or acquired the right to control one or more use of
identified assets for a certain period in exchange for or pay consideration. On the commencement date of a contract,
the Company evaluates whether the contract is a lease or contains a lease.
(2) Judgment basis of government subsidies and accounting treatment methods related to assets
The government subsidies related to assets refers to the government subsidies obtained by the Company for purchase
and construction or otherwise forming long-term assets.
Government subsidies related to assets shall be recognized as deferred income. Where government subsidies related to
assets are recognized as deferred income, they shall be recorded into profits and losses in reasonable and systematic
ways within the service life of the relevant assets. The government subsidies measured in accordance with the nominal
amount shall be directly recorded into the current profit and loss.
If the relevant assets are sold, transferred, scrapped or damaged before the end of their service life, the undistributed
balance of the relevant deferred income shall be transferred into the profit and loss of the current period of asset
disposal.
The government subsidies related to the daily activities of the Company shall be included in other profits according to
the essence of the economic business. The government subsidies unrelated to the daily activities of the Company shall
be included in the non-operating income and expenditure.
(3) The judgment basis and accounting treatment method of government subsidies related to income
Revenue-related government subsidies refer to government subsidies other than those related to assets.
For the government subsidies of comprehensive projects, the Company needs to be decomposed into asset-related
parts and earnings-related parts for accounting treatment separately; if it is difficult to distinguish, it shall be classified
as government subsidies related to income.
If government subsidies related to earnings are used to compensate the related expenses or losses of the enterprise in
the future period, they shall be recognized as deferred income and included in the current profits and losses in the
related costs or losses in the period to compensate the related expenses or losses incurred by the enterprise, which
shall be directly recorded in the current profits and losses.
The government subsidies related to the daily activities of the Company shall be included in other profits according to
the essence of the economic business. The government subsidies unrelated to the daily activities of the Company shall
be included in the non-operating income and expenditure.
(4) The time of recognition of government subsidies
Where the government subsidies are monetary assets, they shall be measured at the amount received. The government
subsidy, measured according to the receivable amount, shall be confirmed at the end of the period by meeting the
relevant conditions of the financial support policy, if the government subsidy is non-monetary assets, the government
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subsidy shall be confirmed according to the ownership risk and remuneration transfer of the non-monetary assets.
Where non-monetary assets shall be measured at fair value; if the fair value cannot be obtained reliably, they shall be
measured at nominal amount.
When the recognized government subsidies need to be returned, if there is a balance of relevant deferred income, the
book balance of relevant deferred income shall be written down, and the excess part shall be included into the current
profit and loss; if there is no relevant deferred income, it shall be directly recorded in the current profit and loss.
30．Deferred tax assets/deferred tax liabilities
Income tax is accounted by the balance sheet debt method. On the balance sheet date, analyze and compare the book
value of assets and liabilities and their tax basis. If there is a difference between the two, recognize the deferred
income tax assets, deferred income tax liabilities and the corresponding deferred income tax expenses (or earnings).
On the basis of the calculation and determination of the current income tax (i. e., income tax payable for the current
period) and deferred income tax expenses (or income), the sum of the two is recognized as the income tax expenses
(or income) in the income statement, but excluding the income tax impact of transactions or matters directly included
in the owner's equity.
Review the book value of deferred income tax assets. If it is likely that insufficient taxable income amount may be
obtained to offset the benefits of the deferred income tax assets, the book value of the deferred income tax assets shall
be written down.
31．Lease
A lease is a contract in which the Company has transferred or acquired the right to control one or more use of
identified assets for a certain period in exchange for or pay consideration. On the commencement date of a contract,
the Company evaluates whether the contract is a lease or contains a lease.
(1) The Company acts as lessee
The categories of leased assets of the Company are mainly office buildings and cold storage.
① Initial measurement
On the beginning date of the lease term, the Company shall recognize the right to use the lease assets as the use right
assets during the lease term, and recognize the present value of the outstanding lease payment as lease liabilities,
except for short-term lease and low-value asset lease. When calculating the present value of the lease payment, the
Company uses the lease interest rate as the discount rate; if the lease interest rate cannot be determined, the lessee
incremental borrowing rate shall be used as the discount rate.
② Follow-up measurement
If the company can reasonably determine the ownership of the leased assets at the time of the expiration of the lease
term, the depreciation shall be withdrawn within the remaining useful life of the leased assets. If it is impossible to
reasonably determine that the ownership of the lease asset can be acquired at the expiration of the lease term, the
depreciation shall be deducted within the shorter period of the lease term and the remaining service life of the leased
asset.
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See Note Ⅳ and 20 "Long-term asset impairment" for the impairment test method and impairment provision
method of the use assets.
For the lease liabilities, the Company shall calculate the interest expenses for each period during the lease term at the
fixed periodic interest rate, which is included in the current profit and loss or the relevant asset costs. Variable lease
payments not included in the measurement of lease liabilities are recorded into current profit and loss or related asset
costs upon actual occurrence.
After the start of the lease term, when the substantial fixed payment changes, the expected payable amount changes,
the index or ratio used to determine the lease payment changes, the purchase option, the renewal option, or the actual
exercise situation changes, the lease payment, and adjust the book value of the use assets accordingly. If the book
value of the use right assets has been reduced to zero, but the lease liabilities still need to be further reduced, the
remaining amount shall be included in the current profit and loss.
③ Short-term lease and low-value asset leasing
For short-term lease (in the lease start day lease not more than 12 months) and low value asset lease, the company to
simplify processing method, do not confirm the use of assets and lease liabilities, and during the lease period
according to the line method or other system reasonable lease payments into the relevant asset cost or current profit
and loss.
④ Lease obligation
On the beginning date of the lease term, the Company recognizes the present value of the outstanding lease payment
as a lease liability. When calculating the present value of the lease payment, the lease interest rate shall be used as the
discount rate. If the interest rate of the lease cannot be determined, the company's incremental borrowing rate shall be
used as the discount rate. The difference between the lease payment and its present value shall be regarded as the
unidentified financing fee, and the interest expense shall be recognized during the lease period at the discount rate of
the present value of the lease payment and included in the current profit and loss. Variable lease payments not
included in the measurement of lease liabilities shall be recorded into the current profit and loss upon actual
occurrence.
After the commencement of the lease term, when the substantially fixed payment amount changes, the expected
payable amount changes, the index or ratio of the lease payment amount changes, the result of the assessment or the
change of the lease payment amount, if the book value of the asset has been reduced to zero, but the lease liabilities
still need to be further reduced, the remaining amount shall be included in the current profit and loss.
(2) The Company acts as lessor
On the commencement date of the lease, the Company divides the lease into financial lease and operating lease based
on the substance of the transaction. A finance lease is a lease that substantially transfers almost all of the risks and
rewards associated with the ownership of the leased assets. Operating lease refers to a lease other than a financial lease.
① Operating lease
The Company adopts the straight-line method to confirm the lease collection amount of the operating lease as the
rental income of each period during the lease term. Variable lease payments related to the operating lease and not
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included in the lease collection amount shall be included in the current profit and loss upon actual occurrence.
② The Company’s revenue applicable to the lease standards
The Company’s revenue from vessel leases: Shandong Zhonglu Aquaculture Shipping Co., Ltd. and Habitat
International Corporation lease their vessels by time charter. The Company leases vessels equipped with operating
staff to others for certain periods. During the lease term, the ships are subject to the lessees’ dispatch. Regardless of
whether they run any business using the vessels, the Company charges lease fees to them and bears any fixed costs
incurred (such as staff salaries, maintenance costs, etc.). During the lease term, the fees are settled on a regular basis
between the Company and its clients. The Company recognizes revenue based on the number of lease days as agreed
upon with the clients.
The Company’s property and other lease revenue: After entering into a lease contract with a client, the Company
charges lease fees based on the lease area and the contractual unit price to the lessee and bears any fixed costs (such as
staff salaries, maintenance costs, etc.). During the lease term, the fees are settled on a regular basis between the
Company and the client. The Company recognizes revenue based on the lease period.
32．Other Important Accounting Policies and Accounting Estimations
(1) Production safety expenditures
In November 2022, the Ministry of Finance and the Ministry of Emergency Management issued the Management
Measures for the Withdrawal and Utilization of Production Safety Expenditures in Enterprise (CZ [2022] No. 136),
and it was implemented on, and as of, the date of issue. At the same time, the Management Measures for the
Withdrawal and Utilization of Production Safety Expenditures in Enterprises (CQ [2012] No. 16) was superseded.
(2) Debt restructuring
When the Company participates in the debt restructuring as a creditor, and pays off the debt with assets or turns the
debt into equity instruments for debt restructuring, it shall be confirmed when the relevant assets meet its definition
and confirmation conditions. If the debt-offset assets are financial assets, see Note IV, 10 and financial instruments; if
the debt-offset assets are non-financial assets, the initial measured amount is the sum of the fair value of the waived
claims and other directly attributable costs. The difference between the fair value of the abandoned claim and the
book value shall be included in the current profit and loss. If the debt is restructured by means of modifying other
terms, the Company shall, according to the substantive modification of the contract, judge whether the original
creditor's right to terminate the confirmation, and confirm a new creditor's right according to the revised terms, or
recalculate the book balance of the creditor's right.
When the company participates in debt restructuring, debt restructuring with assets or converting debt into equity
instruments, terminate the relevant assets and the liquidated liabilities meet the conditions for termination of
confirmation, and measure the fair value of the equity instruments (according to the fair value of the liquidated debt
when the fair value cannot be estimated reliably). The difference between the book value of the paid debts and the
book value of the transferred assets (or the recognized amount of the equity instruments) shall be recorded in the
current profit and loss.
If the debt is restructured by modifying other terms, the Company shall, according to the substantive modification of
the contract, confirm a new debt in accordance with the revised terms, or recalculate the book balance of the debt.
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For the exemption of the debt restructuring, the recognition can only be terminated if the Company no longer have
the current obligation to repay the debt restructuring.
33．Changes in significant accounting policies and accounting estimates
(1) Important accounting policy changes
Since 2023, the Company has implemented the provisions of the Interpretation of Accounting Standards for Business
Enterprises No.16 issued by the Ministry of Finance, "The deferred income tax related to assets and liabilities arising
from single transactions does not apply to the accounting treatment of initial recognition exemption"
he Company shall, starting from 2023, implement the accounting treatment of the initial recognition exemption of
deferred income tax on the assets and liabilities arising from individual transactions issued by the Ministry of Finance.
For the lease liabilities and use right assets recognized at the beginning of the earliest period of the first presentation
of the financial statements, subject to the proposed provisions, and the provisions of the Accounting Standards for
Business Enterprises and other relevant financial statements items during the earliest period. This change in the
accounting policy has no impact on the company's financial statements.
34．Significant accounting judgments and estimates
In the process of applying accounting policies, the company, due to the internal uncertainty of business activities,
needs to judge, estimate and assume the book value of the statement items that cannot be accurately measured. These
judgments, estimates and assumptions are based on the past history of the company's management and on considering
other relevant factors. These judgments, estimates and assumptions affect the reported amount of revenues, expenses,
assets and liabilities and the disclosure of contingent liabilities on the balance sheet date. However, the actual results of
the uncertainty of these estimates may differ from the current estimates of the Company's management, which in turn
results in a significant adjustment of the carrying amount of the assets or liabilities affected in the future.
The Company shall periodically review the aforementioned judgments, estimates and assumptions on the basis of the
change, the accounting estimates shall be confirmed in the current period; and the current period, the impact shall be
confirmed in the current period and the future period.
On the balance sheet date, the Company shall judge, estimate and assume the amount of the financial statement as
follows:
(1) Revenue recognition
As stated in Note IV, 27, "revenue", the following significant accounting judgments and estimates are involved in
terms of revenue recognition:
Estimating the recovery of the consideration entitled to for the transfer of goods to the Customer:
Enterprises mainly rely on past experience and work to make judgments, these major judgments and estimated
changes may have an impact on the operating income, operating costs, and profit and loss during the period of the
change, and may constitute a significant impact.
(2) Significant accounting judgments and estimates related to leasing
① Identification of leases
When identifying whether a contract is a lease or includes a lease, the Company needs to evaluate whether an
identified asset exists, and the Client controls the right to use the asset for a certain period. In the appraisal, the nature
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of the asset, the material replacement right, and whether the client is entitled to almost all the financial benefits arising
from using the asset during the period and to dominate the use of the asset are considered.
② Classification of leases
When the Company, as a lessor, classifies the lease into operating lease and financial lease. In the classification, the
management needs to make an analysis and judgment on whether all the risks and rewards related to the ownership of
the leased assets have been substantially transferred to the lessee.
③ Lease obligation
When the Company is the lessee, the lease liabilities are initially measured at the present value of the lease payments
outstanding on the beginning date of the lease term. When measuring the present value of the lease payment, the
Company estimates the discount rate used and the lease term of the lease contract with a renewal option or
termination option. In evaluating the lease term, the Company considers all relevant facts and circumstances related to
the economic benefits of exercising the option, including the expected changes in the facts and circumstances between
the beginning of the lease term and the exercise date of the option. Different judgments and estimates may affect the
recognition of lease liabilities and tenure assets, and will affect the profits and losses of the subsequent period.
(3) Impairment of financial instruments
The Company uses the expected credit loss model to evaluate the impairment of financial instruments, and application
of the expected credit loss model requires the company to make significant judgments and estimates, and to consider
all reasonable and grounded information, including forward-looking information. When making such judgments and
estimates, the Company deduces the expected changes in the debtor's credit risk based on the historical repayment
data combined with economic policies, macroeconomic indicators, industry risks and other factors.
(4) Reserve for inventory depreciation
According to the inventory accounting policy, the company measures the lower cost and the net realizable value, and
sets aside the inventory depreciation provision for the cost that is higher than the net realizable value and the old and
unsalable inventory. The impairment of inventory to net realizable value is based on the sale of inventory and its net
realizable value. The appraisal of inventory impairment requires the management to make a judgment and estimate on
the basis of obtaining conclusive evidence and considering the purpose of holding the inventory and the impact of
matters after the balance sheet date. The difference between the actual result and the original estimate will affect the
withdrawal or reversal of the book value of the inventory and the inventory depreciation provision during the
estimated change period.
(5) Fair value of the financial instruments
For financial instruments that do not have an active trading market, the Company determines its fair value through
various valuation methods. These valuation methods include discounted cash flow model analysis, etc. At the
valuation, the Company estimates the future cash flow, credit risk, market volatility and correlation, and selects the
appropriate discount rate. These relevant assumptions are uncertain, and their changes can have an impact on the fair
value of the financial instruments.
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(6) Long-term asset impairment provision
On the balance sheet date, the Company judged the possible impairment of non-current assets except the financial
assets. For the intangible assets with uncertain service life, in addition to the annual impairment test, the impairment
test is also conducted when there are signs of impairment. Other non-current assets other than financial assets shall be
tested for impairment when there is evidence that their book amount is not recoverable.
When the book value of an asset or asset group is higher than the recoverable amount, that is, the net value minus the
disposal expense and the present value of the expected future cash flow, the impairment has occurred.
The net fair value minus the disposal expense is determined by referring to the sales agreement price of a similar asset
in fair trading or the observable market price, minus the incremental cost that may be directly attributable to the
disposal of the asset.
When predicting the present value of future cash flows, it is necessary to make significant judgments on the output,
selling price, related operating costs and the discount rate used in calculating the present value. In estimating the
recoverable amount, the Company will use all relevant information available, including projections of production,
selling prices and associated operating costs based on reasonable and supportive assumptions.
(7) Depreciation and amortization
After considering the residual value of the investment real estate, fixed assets and intangible assets, the Company shall
make depreciation and amortization according to the straight-line method. The Company periodically reviews the
service life to determine the amount of depreciation and amortization expense that will be included in each reporting
period. The service life is determined by the Company based on past experience with similar assets and combined with
expected technical updates. If previous estimates have changed significantly, depreciation and amortization charges
will be adjusted in the future period.
(8) Deferred income tax assets
Within the limits of potentially sufficient taxable profits to offset losses, the Company recognizes deferred income tax
assets for all unused tax losses. This requires the management of the company to use a lot of judgment to estimate the
time and amount of future taxable profits, and combine the tax planning strategy to determine the amount of deferred
income tax assets that should be recognized.
(9) Income tax
In the normal business activities of the company, there are some uncertainties in the final tax treatment and
calculation of some transactions. Whether some items can be itemized before tax requires the examination and
approval of the competent tax authorities. If the final determination of these tax matters varies from the original
estimated amount, the difference will affect the current income tax and deferred income tax during the final
determination period.
(10) Internal retirement benefits and supplementary retirement benefits
The amount of the company's internal retirement benefits and supplementary retirement benefits expenses and
liabilities is determined according to various assumptions. These assumptions include the discount rate, the average
growth rate of medical expenses, the growth rate of subsidies for retired and retired personnel, and other factors.
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Differences in actual results and assumptions will be immediately recognized and charged for the current year.
Although the management believes that reasonable assumptions have been adopted, the change in the actual
experience value and the assumptions will still affect the expenses and liabilities of the Company's internal retirement
benefits and supplementary retirement benefits.
35．Other major accounting policies, accounting estimates and methods of preparing financial statements
① This component can generate income and incurred expenses in daily activities;
② The management of the enterprise can regularly evaluate the operating results of this component, so as
③ The enterprise can obtain the financial position, operating results and cash flow of the component.
VI.Tax
1. Main taxes and tax rates
Tax Taxation base Tax rate
VAT Output tax minus the deductible input tax 13%， 9%，6%， 5%， exempted
Urban maintenance & construction tax Circulation tax amount payable 7%
Business income taxes taxable income Exempted，25%， 20%， 8%
Explanation of enterprise income tax rate for tax entities with different rates
Name of tax entity Income tax rate
Shandong Zhonglu Oceanic Fisheries Co., LTD Pelagic fishing is exempted, the rest will be taxed at 25%
Shandong Zhonglu Haiyan Oceanic Fisheries Co., LTD exempted
AFRICA STAR FISHERIES LIMITED According to the local regulations of Ghana, the export part is
taxed at 8%, and the domestic part is taxed at 25%
HABITAT INTERNATIONAL CORPORATION exempted
LAIF FISHERIES CO.LTD 25%
ZHONG GHA FOODS COMP ANY LIMITED 25%
Shandong Zhonglu Aquatic Marine Co., LTD 20%
Shandong Zhonglu Oceanic Refrigeration Co., LTD The part of the aquatic product processing industry is exempted,
and other parts are 25%
Shandong Zhonglu Oceanic (Yantai) Food Co., LTD The part of the aquatic product processing industry is exempted,
and other parts are 25%
Zhonglu Oceanic (Qingdao) Industrial Investment and 25%
Development Co., LTD
2. Tax preference
Tax Preferences and Approval Documents
In accordance with Item 1 of Article 15 of the Provisional Regulations of the People’s Republic of China on Value-
Added Tax, Item 1 of Article 35 of the Implementation Rules of the Provisional Regulations of the People’s Republic
of China on Value-Added Tax, and the notice of the Ministry of Finance and the State Taxation Administration on
issuing the Notes to the Scope of Taxation for Agricultural Products through CSZ [1995] No. 52, the sales revenue of
the Company and its subsidiaries from long-range fishing falls within the scope of the aquaculture industry as defined
in the foregoing provisions, and hence, it is entitled to the value-added tax preference.
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In accordance with the provisions of the Notice on the Comprehensive Roll-out of Business Tax to Value Added Tax
Transformation Pilot Program (No. 36 of 2016), the value-added tax is exempt for the direct or indirect international
freight forwarding services provided by taxpayers. Shandong Zhonglu Aquaculture Shipping Co., Ltd., a subsidiary of
the Company, is exempt from the value-added tax for the relevant sales revenue it has gained.
According to the enterprise income tax law of the People's Republic of China (the President of the People's Republic
of China order no. 63), the State Council of the People's Republic of China order no. 512, the implementation of the
law of the People's Republic of China, the Ministry of Finance, state administration of taxation on enjoy preferential
policies of enterprise income tax of agricultural products (try out) notice (tax [2008] no. 149), the Ministry of Finance,
the state administration of taxation on enjoy preferential enterprise income tax of agricultural products about the
scope of supplementary notice (Fiscal and Taxation [2011] No.26) and the relevant provisions of the Announcement
of the State Administration of Taxation on the Implementation of Preferential Enterprise Income Tax Treatment for
Agriculture, Forestry, Animal Husbandry and Fishery Projects (Announcement of the State Administration of
Taxation No.48,2011), The company carries out the primary processing of agricultural products and the entrusted
primary processing of agricultural products, The processing fees it charges, Can be handled according to the duty-free
items of the primary processing of agricultural products. The company engaged in ocean fishing business and primary
processing of agricultural products income is exempted from enterprise income tax. The income obtained from the
company except ocean fishing and primary processing of agricultural products shall be paid at the rate of 25%.
According to the announcement of the Ministry of Finance and the State Administration of Taxation on further
implementing the preferential income tax policies for small and micro enterprises (Announcement No. 13 of 2022 of
the Ministry of Finance and the State Administration of Taxation) and the announcement on the preferential income
tax policies for small and micro enterprises and individual industrial and commercial households (Announcement No.
6 of 2023 of the Ministry of Finance and the State Administration of Taxation), the part of the annual taxable income
not exceeding 1 million yuan shall be included in the taxable income at a reduced rate of 25%, and the taxable income
shall be included at 20% For the part of the annual taxable income exceeding 1 million yuan but not exceeding 3
million yuan, it will be included in the taxable income at a reduced rate of 25%, and the enterprise income tax shall be
paid at a rate of 20%, and the subsidiary Shandong Zhonglu Aquatic Products Shipping Co., Ltd. shall apply the tax
preference.
VII. Notes to consolidated financial statement items
1．Monetary funds
Unit:RMB
Item Closing balance Opening balance
1,567,238.00 8,419,757.05
Cash on hand
178,935,923.32 234,707,665.98
Bank deposit
Other monetary funds 7,302,020.40 19,000,000.00
187,805,181.72 262,127,423.03
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Total
Including: total amount of funds
67,530,673.58 73,953,963.38
deposited overseas
2．Accounts receivable
(1) Disclosure by aging
Unit:RMB
Aging Closing book balance Opening book balance
Within 1 year (included) 64,377,551.14 50,413,484.45
0-6 months 62,044,049.29 49,740,127.31
6 months - 1 year 2,333,501.85 673,357.14
1-2 years 47,589.13 801,390.66
2-3 years 594,250.07 7,772.15
More than 3 years 6,511,805.54 6,518,472.25
Total 71,531,195.88 57,741,119.51
(2) Disclosure by bad debt accrual
Unit:RMB
Closing balance Opening balance
Categor Book balance Book balance
Bad debt provision Book Bad debt provision Book
y
Proporti Accrual value Proporti Accrual value
Amount Amount Amount Amount
on ratio on ratio
Amon
g them:
Account
s
receivab
le
71,531,1 10,148,9 61,382,1 57,741,1 9,317,11 48,424,0
accrued 100.00% 14.19% 100.00% 16.14%
95.88 99.47 96.41 19.51 4.60 04.91
for bad
debts by
combina
tion
Amon
g them:
Bad debt
provisio
71,531,1 10,148,9 61,382,1 57,741,1 9,317,11 48,424,0
n 100.00% 14.19% 100.00% 16.14%
95.88 99.47 96.41 19.51 4.60 04.91
accrued
by group
71,531,1 10,148,9 61,382,1 57,741,1 9,317,11 48,424,0
Total 100.00% 14.19% 100.00% 16.14%
95.88 99.47 96.41 19.51 4.60 04.91
Category name of bad debt provision accrued by group: bad debt provision accrued by group
Unit:RMB
95
Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Closing balance
Name
Book balance Bad debt provision Accrual ratio
Bad debt provision accrued
71,531,195.88 10,148,999.47 14.19%
by group
Total 71,531,195.88 10,148,999.47
If the bad debt provision of accounts receivable is made based on the general model of expected credit losses：
□Applicable Not applicable
(3) Bad debt provisions accrued, recovered or reversed in the current period
Accrual for bad debt provisions in the current period:
Unit:RMB
Opening Change amount of current period
Closing balance
balance Recovery or
Category Accrual Write off Others
reversal
Bad debt
provision
9,317,114.60 829,840.37 2,044.50 10,148,999.47
accrued by
group
Total 9,317,114.60 829,840.37 2,044.50 10,148,999.47
(4)Top five accounts receivable and contract assets in terms of closing balance summarized by debtor
Accounts receivable of the top five closing balance collected by the debtor
Unit:RMB
Closing balance of
Proportion in the
bad debt provision
Closing balance of total closing
Closing balance for accounts
Closing balance of accounts balance of
Name of entity accounts receivable and
contract assets receivable and accounts
receivable impairment
contract assets receivable and
provision for
contract assets
contract assets
A 14,258,435.39 14,258,435.39 19.93% 712,921.77
B 7,598,785.02 7,598,785.02 10.62% 379,939.25
C 5,181,861.03 5,181,861.03 7.24% 259,093.05
D 4,905,144.71 4,905,144.71 6.86% 245,257.24
E 3,858,414.17 3,858,414.17 5.39% 192,920.71
Total 35,802,640.32 35,802,640.32 50.04% 1,790,132.02
3．Other receivables
Unit:RMB
Item Closing balance Opening balance
Other receivables 10,272,036.60 6,596,879.89
Total 10,272,036.60 6,596,879.89
96
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(1) Other receivables
1) Classification of other receivables by nature of payment
Unit:RMB
Nature of payment Closing book balance Opening book balance
Earnest money 622,225.64 1,114,033.05
Dealings and others 14,967,057.03 10,733,618.09
Total 15,589,282.67 11,847,651.14
2)Disclosure by aging
Unit:RMB
Aging Closing book balance Opening book balance
Within 1 year (included) 8,074,623.30 6,312,997.94
0-6 months 6,909,943.80 5,754,947.11
6 months - 1 year 1,164,679.50 558,050.83
1-2 years 2,713,562.45 821,558.10
2-3 years 219,846.79 104,687.79
More than 3 years 4,581,250.13 4,608,407.31
Total 15,589,282.67 11,847,651.14
3)Disclosure by accrual method of bad debt provision
Applicable □ Not applicable
Unit:RMB
Closing balance Opening balance
Categor Book balance Book balance
Bad debt provision Book Bad debt provision Book
y
Proporti Accrual value Proporti Accrual value
Amount Amount Amount Amount
on ratio on ratio
Among them:
Bad debt
provisio
15,589,2 5,317,24 10,272,0 11,847,6 5,250,77 6,596,87
n 100.00% 34.11% 100.00% 44.32%
82.67 6.07 36.60 51.14 1.25 9.89
accrued
by group
Among them:
Bad debt
provisio
15,589,2 5,317,24 10,272,0 11,847,6 5,250,77 6,596,87
n 100.00% 34.11% 100.00% 44.32%
82.67 6.07 36.60 51.14 1.25 9.89
accrued
by group
15,589,2 5,317,24 10,272,0 11,847,6 5,250,77 6,596,87
Total 100.00% 34.11% 100.00% 44.32%
82.67 6.07 36.60 51.14 1.25 9.89
Category name of bad debt provision accrued by group: bad debt provision accrued by group
Unit:RMB
97
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Closing balance
Name
Book balance Bad debt provision Accrual ratio
Bad debt provision accrued
15,589,282.67 5,317,246.07 34.11%
by group
Total 15,589,282.67 5,317,246.07
Accrual of bad debt provision by general model of expected credit loss:
Unit:RMB
Stage 1 Stage 2 Stage 3
Expected credit loss for Expected credit loss for
Expected credit loss for Total
Bad debt provision the entire duration (no the entire duration
the next 12 months
credit impairment has (credit impairment has
occurred) occurred)
Balance on January 1,
642,363.94 4,608,407.31 5,250,771.25
2024
Balance on January 1,
2024 in current period
Accrual of current
92,734.68 -27,157.18 65,577.50
period
Other changes 897.32 897.32
Balance on June 30,
735,995.94 4,581,250.13 5,317,246.07
2024
Changes in book balance with significant changes in loss reserves during the current period
Applicable Not applicable
4) Other accounts receivable with the top five closing balance collected by the debtor
Unit:RMB
Proportion to total
Nature of payment Closing balance Closing balance of
Name of entity Aging closing balance of
bad debt provision
other receivables
A Current accounts 1,781,700.00 0-6 months 11.43% 89,085.00
0-6 months and 6
B Earnest money 491,562.50 3.15% 24,578.13
months - 1 year
C Borrowings 418,138.62 6 months - 1 year 2.68% 27,562.88
D Earnest money 356,340.00 6 months - 1 year 2.29% 35,634.00
0-6 months and 6
E Borrowings 303,642.59 1.95% 29,651.55
months - 1 year
Total 3,351,383.71 21.50% 206,511.56
4．Advance payments
(1) Presentation of advance payments by aging
Unit:RMB
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
98
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Within 1 year 26,677,030.14 99.89% 25,903,548.53 99.14%
1-2 years 28,245.86 0.11% 223,428.22 0.86%
Total 26,705,276.00 26,126,976.75
(2) Top five advance payments in terms of closing balance summarized by payee
Relationship with the Proportion in the Advance Reasons for non-
Entity name Company Closing balance total amount payment time settlement
Amortization not
Non-affiliate 2024
A 4,396,494.41 16.46% ended yet
Not reached the
Non-affiliate 2024
B 3,351,697.76 12.55% settlement period
Amortization not
Non-affiliate 2023
C 2,877,024.80 10.77% ended yet
Amortization not
Non-affiliate 2024
D 1,876,851.69 7.03% ended yet
Not reached the
Non-affiliate 2024
E 1,663,902.98 6.23% settlement period
Total 14,165,971.64 53.05%
5．Inventory
Does the company need to comply with disclosure requirements in the real estate industry
No
(1)Category of inventories
Unit:RMB
Closing balance Opening balance
Inventory Inventory
falling price falling price
reserve or reserve or
Item contract contract
Book balance Book value Book balance Book value
performance performance
cost cost
impairment impairment
provision provision
Raw material 121,688,584.96 5,014,620.95 116,673,964.01 171,115,003.44 5,163,639.14 165,951,364.30
Commodities in
436,657,631.15 39,236,909.78 397,420,721.37 393,062,301.96 72,374,497.28 320,687,804.68
stock
Turnover
984,154.71 984,154.71 1,026,078.89 1,026,078.89
materials
Contract
5,605,888.72 5,605,888.72 7,508,843.24 7,508,843.24
performance
99
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cost
Low value
565,458.44 565,458.44 525,444.02 525,444.02
consumables
Total 565,501,717.98 44,251,530.73 521,250,187.25 573,237,671.55 77,538,136.42 495,699,535.13
(2)Inventory falling price reserves and contract performance cost impairment provisions
Unit:RMB
Increased amount in the current Decreased amount in the current
Opening period period Closing
Item
balance Reversal or balance
Accrual Others Others
resale
Raw materials 5,163,639.14 811,501.92 960,520.11 5,014,620.95
Commodities in
72,374,497.28 231,917.60 33,369,505.10 39,236,909.78
stock
Total 77,538,136.42 1,043,419.52 34,330,025.21 44,251,530.73
6．Other current assets
Unit:RMB
Item Closing balance Opening balance
Input tax amount to be deducted for
8,681,285.10 14,255,448.40
value-added tax
Advance payment of enterprise income
102,864.30 117,102.08
taxes
Prepaid other taxes 91,478.87 12,419.16
Total 8,875,628.27 14,384,969.64
7．Long-term equity investment
Unit:RMB
Increase/decrease in current period
Openin Investm
ent Declari Closing
g
Openin profit Other ng the Accrual balance
balance Closing
g Additio Reduci and loss compre distribu of of
Investe of Other balance
balance nal ng recogni hensive tion of impair impair
d entity impair equity Others (book
(book investm investm zed income cash ment ment
ment changes value)
value) ent ent under adjustm dividen provisi provisi
provisi
the ents ds or on on
on
equity profits
method
I.Joint venture
II.Associated enterprise
Jinan
Qinzhe
-
n Food 1,414,0 1,075,1
338,839
Technol 31.32 92.30
.02
ogy
Co.,
100
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Ltd
-
Subtota 1,414,0 1,075,1
338,839
l 31.32 92.30
.02
-
1,414,0 1,075,1
338,839
Total 31.32 92.30
.02
Recoverable amount to be determined according to the net amount of fair value after deducting disposal expenses
Applicable Not applicable
Recoverable amount to be determined according to the present value of estimated future cash flows
Applicable Not applicable
8．Investment real estate
(1)Investment real estate using cost measurement model
Applicable Not applicable
Unit:RMB
Construction in
Item House and building Land use right Total
progress
I. Original book value
1.Opening balance 51,308,578.35 51,308,578.35
2.Increased
amount in current
period Increased
amount in the current
period
(1)Outsourcing
(2)Transferred from
inventory, fixed assets,
and construction in
progress
(3)Increase in business
merger
3.Current decrease
amount
(1)Disposal
(2) Other transfers out
4.Closing balance 51,308,578.35 51,308,578.35
II.Accumulated
depreciation and
amortization
1.Opening balance 22,965,286.90 22,965,286.90
2.Increased amount in
current period
663,038.34 663,038.34
Increased amount in
the current period
(1)Accrual or 663,038.34 663,038.34
101
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amortization
3.Current decrease
amount
(1)Disposal
(2)Other transfers out
4.Closing balance 23,628,325.24 23,628,325.24
III. Impairment
provision
1.Opening balance 886,512.06 886,512.06
2.Increased amount in
the current period
(1) Accrual
3.Current decrease
amount
(1)Disposal
(2)Other transfers out
4.Closing balance 886,512.06 886,512.06
IV.Book value
1.Closing book value 26,793,741.05 26,793,741.05
2.Opening book value 27,456,779.39 27,456,779.39
Recoverable amount to be determined according to the net amount of fair value after deducting disposal expenses
Applicable Not applicable
Recoverable amount to be determined according to the present value of estimated future cash flows
Applicable Not applicable
(2)Investment real estate without obtaining property ownership certificate
Unit:RMB
Reason for not completing the property
Item Book value
rights certificate
Housing and buildings 26,734,264.96 See Notes
Other notes
Note: According to the "Debt Repayment Opinion" signed between our company and Shandong Provincial Aquatic Products
Group Corporation in April 2006, as well as the "Civil Ruling " (2005) LZZ No. 1299 of the People's Court of Lixia District, Jinan
City, Shandong Provincial Aquatic Products Group Corporation will offset the debt owed by its office complex building and office
supplies located at No. 43, Heping Road, Lixia District, Jinan City to Shandong Zhonglu Oceanic Fisheries Co., Ltd, the original
book value of the confirmed office complex building is 54223132.40RMB(including the self use part included in fixed assets and
the rental part included in investment real estate). The land used for this property is an allocated land, and the property ownership
certificate has not yet been obtained.
102
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9． Fixed assets
Unit:RMB
Item Closing balance Opening balance
Fixed assets 1,026,031,712.36 1,019,386,437.83
Total 1,026,031,712.36 1,019,386,437.83
(1) Fixed assets
Unit:RMB
Furniture and
Houses and Machines and
Item Ships and nets Transportation office Total
buildings equipment
equipment equipment
I.Original book
value:
1.Opening 1,199,938,346. 1,481,933,832.
196,065,978.87 63,856,443.58 9,733,717.23 12,339,346.44
balance 26 38
1．Increased
amount in the 6,945.75 47,683,735.79 131,558.48 236,166.07 64,893.87 48,123,299.96
current period
(1)Purchase 11,377,523.28 130,553.32 206,176.97 59,672.39 11,773,925.96
(2)Transferred
from
33,351,431.21 33,351,431.21
construction in
progress
(3)Increase in
business
merger
Effect of
exchange rate 6,945.75 2,954,781.30 1,005.16 29,989.10 5,221.48 2,997,942.79
changes
3. Current
decrease 37,800.00 37,800.00
amount
(1)Disposal or
37,800.00 37,800.00
scrapping
4.Closing 1,247,622,082. 1,530,019,332.
196,072,924.62 63,988,002.06 9,969,883.30 12,366,440.31
balance 05 34
II.Accumulated
depreciation
1.Opening
56,416,497.54 352,186,280.94 36,024,295.69 8,032,473.06 9,730,273.82 462,389,821.05
balance
2.Increased
amount in 2,888,691.93 34,034,569.37 1,614,043.23 323,265.14 273,576.22 39,134,145.89
current period
(1)Accrual 2,888,691.93 34,034,569.37 1,614,043.23 323,265.14 273,576.22 39,134,145.89
3.Current -2,189.00 -2,274,312.31 2,907.74 -61,942.94 29,456.97 -2,306,079.54
103
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decrease
amount
(1)Disposal or
37,055.18 37,055.18
scrapping
Effect of
exchange rate -2,189.00 -2,274,312.31 2,907.74 -61,942.94 -7,598.21 -2,343,134.72
changes
4.Closing
59,307,378.47 388,495,162.62 37,635,431.18 8,417,681.14 9,974,393.07 503,830,046.48
balance
III.Impairment
provision
1.Opening
157,573.50 157,573.50
balance
2.Increased
amount in
current period
(1)Accrual
3.Current
decrease
amount
(1)Disposal or
scrapping
4.Closing
157,573.50 157,573.50
balance
IV.Book value
1.Closing book 1,026,031,712.
136,765,546.15 858,969,345.93 26,352,570.88 1,552,202.16 2,392,047.24
value 36
2.Opening book 1,019,386,437.
139,649,481.33 847,594,491.82 27,832,147.89 1,701,244.17 2,609,072.62
value 83
(2) Information of temporarily idle fixed assets
Unit:RMB
Original book Accumulated Impairment
Item Book value Remark
value depreciation provision
Machinery and
2,179,020.00 1,961,118.00 217,902.00
equipment
(3) Fixed assets leased out through operating lease
Unit:RMB
Item Closing book value
Transport vessels 202,504,884.49
(4)Fixed assets without obtaining property ownership certificate
Unit:RMB
104
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Reason for not obtaining the property
Item Book value
rights certificate
Houses and buildings 1,428,264.53 See the notes
Other notes
Note: According to the "Debt Repayment Opinion" signed between our company and Shandong Provincial Aquatic Products
Group Corporation in April 2006, as well as the "Civil Ruling " (2005) LZZ No. 1299 of the People's Court of Lixia District, Jinan
City, Shandong Provincial Aquatic Products Group Corporation will offset the debt owed with its office complex building and
office supplies located at No. 43, Heping Road, Lixia District, Jinan City to Shandong Zhonglu Oceanic Fisheries Co., Ltd, the
original book value of the confirmed office complex building is 54223132.40 yuan(including the self use part included in fixed
assets and the rental part included in investment real estate). The land used for this property is an allocated land, and the property
ownership certificate has not yet been obtained.
(5) Impairment testing of fixed assets
Applicable Not applicable
10．Construction in progress
Unit:RMB
Item Closing balance Opening balance
Construction in progress 58,721,777.22 65,288,052.12
Total 58,721,777.22 65,288,052.12
(1) Construction in progress
Unit:RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Atlantic
4,077,658.55 4,077,658.55 4,077,658.55 4,077,658.55
Seining project
Marine
Innovation
58,721,777.22 58,721,777.22 42,494,948.92 42,494,948.92
Industry Park
project
Lu Qing Yuan
11,396,551.60 11,396,551.60
Yu 367
Lu Qing Yuan
11,396,551.60 11,396,551.60
Yu 368
Total 62,799,435.77 4,077,658.55 58,721,777.22 69,365,710.67 4,077,658.55 65,288,052.12
(2)Changes in important ongoing construction projects for the current period
Unit:RMB
Increas Amou Other Propor Accum Amon Curren
Budget Project Source
Name Openi ed nt decrea Closin tion of ulated g t
amoun progre of
of item ng amoun transfe ses in g accum amoun them: interes
t ss funds
balanc t in rred to the balanc ulated t of Curren t
105
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e current fixed current e project interes t capital
period assets period invest t interes ization
in the ment capital t rate
current to ization capital
period budget ization
amoun
t
Zhongl
u
Marine
960,00 42,494 16,226 58,721
Innova 5,890, 1,708,
0,000. ,948.9 ,828.3 ,777.2 6.12% 6.12% 3.50% others
tion 444.35 000.00
00 2 0 2
Industr
y Park
project
Lu
13,000 11,396 14,390
Qing 2,994, 110.70 281,28 88,673
,000.0 ,551.6 ,765.1 0.00 100% 3.90% others
Yuan 213.54 % 8.75 .08
0 0 4
Yu 367
Lu
13,000 11,396 14,390
Qing 2,994, 110.70 281,28 88,673
,000.0 ,551.6 ,765.1 0.00 100% 3.90% others
Yuan 213.54 % 8.75 .08
0 0 4
Yu 368
986,00 65,288 22,215 28,781 58,721
6,453, 1,885,
Total 0,000. ,052.1 ,255.3 ,530.2 ,777.2
021.85 346.16
00 2 8 8 2
(3) Impairment testing of construction in progress
Applicable Not applicable
11．Use right assets
(1) Information of right-of-use assets
Unit:RMB
Item Houses and buildings Total
I.Original book value
1.Opening balance 491,036.37 491,036.37
2.Increased amount in the current period 9,042.55 9,042.55
Exchange rate impact
9,042.55 9,042.55
3.Current decrease amount
4.Closing balance 500,078.92 500,078.92
II.Accumulated depreciation
1.Opening balance 399,429.65 399,429.65
2. Increased amount in the current period 54,560.75 54,560.75
(1)Accrual 46,088.59 46,088.59
Exchange rate impact 8,472.16 8,472.16
3.Current decrease amount
(1)Disposal
106
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4.Closing balance 453,990.40 453,990.40
III.Impairment provision
1.Opening balance
2.Increased amount in the current period
(1)Accrual
3.Current decrease amount
(1)Disposal
4.Closing balance
IV.Book value
1.Closing book value 46,088.52 46,088.52
2.Opening book value 91,606.72 91,606.72
12．Intangible assets
(1)Intangible assets
Unit:RMB
Non-patent
Item Land use right Patent right Computer software Total
technology
I.Original book
value
1.Opening balance 69,409,842.26 2,335,115.89 71,744,958.15
2.Increased
amount in current
period
(1) Purchase
(2)Internal R&D
(3)Increase in
business merger
3.Current decrease
amount
(1)Disposal
4.Closing balance 69,409,842.26 2,335,115.89 71,744,958.15
II. Accumulated
amortization
1.Opening balance 8,847,197.93 1,941,377.53 10,788,575.46
2.Increased
amount in current 716,748.35 62,015.83 778,764.18
period
107
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(1)Accrual 716,748.35 62,015.83 778,764.18
3.Current decrease
amount
(1)Disposal
4.Closing balance 9,563,946.28 2,003,393.36 11,567,339.64
III.Impairment
provision
1.Opening balance
2.Increased
amount in current
period
(1)Accrual
3.Current decrease
amount
(1)Disposal
4.Closing balance
IV.Book value
1.Closing book
59,845,895.98 331,722.53 60,177,618.51
value
2.Opening book
60,562,644.33 393,738.36 60,956,382.69
value
As of the end of the Reporting Period, the intangible assets formed through the Company’s internal R&D accounted for 0.00% of
the balance of intangible assets.
(2) Impairment testing of intangible assets
Applicable Not applicable
13．Long-term deferred expenses
Unit:RMB
Increased amount Amortized amount Other decreased
Item Opening balance Closing balance
in current period in current period amount
Decoration for
2,003,181.07 109,571.64 1,893,609.43
office buildings
Decoration for the
tuna science 1,351,098.12 245,654.22 1,105,443.90
museum
Sailing preparation
costs for new 3,337,111.20 3,337,111.20
trawlers
Total 3,354,279.19 3,337,111.20 355,225.86 6,336,164.53
108
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14．Deferred income tax assets/deferred income tax liabilities
(1)Deferred income tax assets not offset
Unit:RMB
Closing balance Opening balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
difference difference
Bad debt provision 898,627.33 182,245.19 880,463.98 177,704.36
Deferred income 4,814,756.00 1,203,689.01 4,989,377.76 1,247,344.44
Total 5,713,383.33 1,385,934.20 5,869,841.74 1,425,048.80
(2)Deferred income tax liabilities not offset
Unit:RMB
Closing balance Opening balance
Item Taxable temporary
Deferred tax liabilities Taxable temporary
difference Deferred tax liabilities
difference
Pre-tax deductions for
the accelerated
9,606,660.32 2,401,665.08 9,907,422.47 2,476,855.62
depreciation of fixed
assets
Total 9,606,660.32 2,401,665.08 9,907,422.47 2,476,855.62
(3)Deferred income tax assets or liabilities listed at net amount after offsetting
Unit:RMB
Opening balance of
Deferred income tax Closing balance of Deferred income tax
deferred income tax
assets and liabilities deferred income tax assets and liabilities
Item assets or liabilities after
offset at the end of the assets or liabilities after offset at the end of the
offsetting
period offsetting period
Deferred income tax
1,385,934.20 1,425,048.80
assets
Deferred income tax
liabilities 2,401,665.08 2,476,855.62
(4)Details of unconfirmed deferred income tax assets
Unit:RMB
Item Closing balance Opening balance
Deductible temporary differences - bad
debt provisions 14,567,618.21 13,687,421.87
Deductible temporary differences -
inventory falling price reserves 44,251,530.73 77,538,136.42
109
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Deductible temporary differences -
36,423,812.13 36,075,622.60
deductible losses
Deductible temporary differences -
impairment provision of construction in 4,077,658.55 4,077,658.55
progress
Total 99,320,619.62 131,378,839.44
(5) Deductible losses for which deferred tax assets are not recognized will become due in the following
years
Unit:RMB
Year Closing amount Opening amount Remark
2025 36,075,622.60 36,075,622.60
2029 348,189.44
Total 36,423,812.04 36,075,622.60
15．Other non-current assets
Unit:RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Prepaid land
payment 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00
Advance
payment for
construction in 19,433,284.59 19,433,284.59 13,402,660.37 13,402,660.37
progress and
equipment
Total 21,433,284.59 21,433,284.59 15,402,660.37 15,402,660.37
16．Assets with ownership or right-of-use restrictions
Unit:RMB
End of period Beginning of period
Item Informatio Informatio
Book Type of Book Type of
Book value n of Book value n of
balance restriction balance restriction
restriction restriction
Monetary 7,002,020.4 7,002,020.4 Notes 19,000,000. 19,000,000. Notes
funds 0 0 deposit 00 00 deposit
Fixed 524,209,03 483,703,06 Mortgage 495,427,50 462,793,00 Mortgage
assets 4.12 2.59 loans 3.84 7.43 loans
Intangible 9,929,529.0 4,440,581.9 Mortgage 9,929,529.0 4,558,790.4 Mortgage
assets 0 6 loans 0 8 loans
541,140,58 495,145,66 524,357,03 486,351,79
Total
3.52 4.95 2.84 7.91
110
Full text of the Semiannual report of 2024, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
17．Short-term loans
(1)Category of short-term loans
Unit:RMB
Item Closing balance Opening balance
Mortgage loan 18,021,175.00
Guaranteed Loan 20,000,000.00
Credit loans 49,988,305.82 39,990,136.42
Total 69,988,305.82 58,011,311.42
18．Notes payable
Unit:RMB
Type Closing balance Opening balance
Trade acceptance 5,000,000.00
Banker’s acceptance 17,505,051.00 35,000,000.00
Total 22,505,051.00 35,000,000.00
As of the end of the Reporting Period, the total amount of notes payable that were due and not paid was RMB0.00.
19．Accounts payable
(1) Presentation of accounts payable
Unit:RMB
Item Closing balance Opening balance
Within 1 year (included) 92,570,792.95 84,462,881.55
Over 1 year 13,638,239.27 4,863,467.53
Total 106,209,032.22 89,326,349.08
20．Other payables
Unit:RMB
Item Closing balance Opening balance
Dividends payable 1,616,659.01 1,616,659.01
Other payables 18,828,814.47 17,961,560.95
Total 20,445,473.48 19,578,219.96
(1) Dividends payable
Unit:RMB
Item Closing balance Opening balance
Dividends from ordinary shares 1,616,659.01 1,616,659.01
Total 1,616,659.01 1,616,659.01
111
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(2) Other payables
1) Presentation of other payables by account nature
Unit:RMB
Item Closing balance Opening balance
Earnest money and deposits 6,253,826.63 5,819,576.92
Staff costs 3,789,602.10 692,412.01
Production safety costs 2,600,295.26 1,655,016.56
Others 6,185,090.48 9,794,555.46
Total 18,828,814.47 17,961,560.95
21．Advance receipts
(1)Presentation of advance receipts
Unit:RMB
Item Closing balance Opening balance
Advance rent collection 1,881,849.82 1,776,439.64
Total 1,881,849.82 1,776,439.64
22．Contract liabilities
Unit:RMB
Item Closing balance Opening balance
Advances from customers 17,245,768.14 29,481,400.42
Total 17,245,768.14 29,481,400.42
23．Payroll payable
(1) Presentation of payroll payable
Unit:RMB
Increase in current Decrease in current
Item Opening balance Closing balance
period period
I.Short -term
61,068,969.92 80,189,792.48 83,127,376.29 58,131,386.11
compensation
II.Post employment
benefits - defined 2,137,840.70 6,457,137.99 6,226,855.29 2,368,123.40
contribution plan
III.Dismissal benefits 3,962.00 136,676.00 136,676.00 3,962.00
IV.Other benefits due
8,586.23 8,586.23
within one year
Total 63,219,358.85 86,783,606.47 89,490,907.58 60,512,057.74
112
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(2)Presentation of short-term salary
Unit:RMB
Increase in current Decrease in current
Item Opening balance Closing balance
period period
1.Salaries, bonuses,
allowances, and 59,563,025.88 73,302,731.40 76,175,602.81 56,690,154.47
subsidies
2.Employee welfare
1,004,221.45 1,004,221.45
expenses
3.Social insurance
3,016,290.23 3,016,290.23
premiums
Including: Medical
2,660,846.56 2,660,846.56
insurance premiums
Work injury insurance
352,768.93 352,768.93
premium
Maternity insurance
2,674.74 2,674.74
contribution
4.Housing provident
2,368,207.80 2,368,207.80
fund
5.Trade union funds
and employee 1,505,944.04 498,341.60 563,054.00 1,441,231.64
education funds
Total 61,068,969.92 80,189,792.48 83,127,376.29 58,131,386.11
(3)Presentation of defined contribution plans
Unit:RMB
Increase in current Decrease in current
Item Opening balance Closing balance
period period
1.Basic pension
5,295,534.52 5,295,534.52
insurance
2. Unemployment
229,875.67 229,875.67
insurance premium
3.Enterprise annuity
2,137,840.70 828,786.63 598,503.93 2,368,123.40
payment
Social insurance and
102,941.17 102,941.17
subsidies for retirees
Total 2,137,840.70 6,457,137.99 6,226,855.29 2,368,123.40
24．Tax payable
Unit:RMB
Item Closing balance Opening balance
Value added tax 264,974.57 362,005.97
Enterprise income tax 479,405.40 2,233,670.77
Personal income tax 49,552.06 774,108.88
113
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Urban maintenance and construction tax 12,218.75 19,762.85
Property tax 340,950.83 348,748.88
Land use tax 323,681.23 323,681.23
Education surcharges 5,650.87 14,116.30
Withholding tax 1,141,100.95 1,464,295.39
Other taxes and fees 76,020.42 125,058.00
Total 2,693,555.08 5,665,448.27
25．Non current liabilities maturing within one year
Unit:RMB
Item Closing balance Opening balance
Long-term borrowings due within one
10,779,833.34 8,837,283.90
year
Total 10,779,833.34 8,837,283.90
26．Other current liabilities
Unit:RMB
Item Closing balance Opening balance
Output tax on advances from customers 22,032.89 6,256.07
Total 22,032.89 6,256.07
27．Long-term loans
(1)Category of long-term loans
Unit:RMB
Item Closing balance Opening balance
Mortgage loan 65,242,863.33
Guaranteed Loan 96,084,000.00 111,410,333.33
Mortgage and guaranteed loan 238,065,507.16 288,092,457.73
Less: long-term borrowings due within
-10,779,833.34 -8,837,283.90
one year
Total 388,612,537.15 390,665,507.16
28．Long-term employee compensation payable
(1)Long term employee payroll payable
Unit:RMB
Item Closing balance Opening balance
III.Other long-term benefits 539,095.80 543,215.85
Total 539,095.80 543,215.85
114
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29．Deferred income
Unit:RMB
Increase in current Decrease in
Item Opening balance Closing balance Cause
period current period
Government
Government
51,980,968.73 488,300.00 1,307,836.25 51,161,432.48 subsidies related to
subsidies
assets
Total 51,980,968.73 488,300.00 1,307,836.25 51,161,432.48
30．Capital stock
Unit:RMB
Increase/decrease for this change
Opening Conversion Closing
balance Issue of new Stock balance
of provident Others Subtotal
shares dividend
fund into
shares
Total number 266,071,320. 266,071,320.
of shares 00 00
31． Capital reserves
Unit:RMB
Increase in current Decrease in current
Item Opening balance Closing balance
period period
Capital premium (share
189,093,492.79 189,093,492.79
capital premium)
Other capital reserve 106,526,779.23 106,526,779.23
Total 295,620,272.02 295,620,272.02
32．Other comprehensive income
Unit:RMB
Amount incurred in current period Current amount incurred
Less:
Less: Previously
previously included in
included in other
Amount
other comprehen Attributabl
Opening incurred Attributabl Closing
Item comprehen sive Less: e to
balance before e to the balance
sive income, Income tax minority
income tax parent
income and and expense shareholder
in the company
transferred transferred s after tax
current after tax
to profit or to retained
period
loss in the earnings in
current the current
period period
115
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I.Other
compreh
ensive
income - -
1,649,062.7 1,324,697.1
to be 3,370,081.4 324,365.59 2,045,384.3
2 3
reclassif 8 5
ied into
profit or
loss
Translation
differences
- -
in foreign 1,649,062.7 1,324,697.1
3,370,081.4 324,365.59 2,045,384.3
currency 2 3
8 5
financial
statements
Total of
other - -
1,649,062.7 1,324,697.1
comprehen 3,370,081.4 324,365.59 2,045,384.3
2 3
sive 8 5
income
33．Special reserves
Unit:RMB
Increase in current Decrease in current
Item Opening balance Closing balance
period period
Safe production
1,572.48 1,317,143.43 1,247,494.33 71,221.58
expense
Total 1,572.48 1,317,143.43 1,247,494.33 71,221.58
34．Surplus reserves
Unit:RMB
Increase in current Decrease in current
Item Opening balance Closing balance
period period
Statutory surplus
21,908,064.19 21,908,064.19
reserve
Total 21,908,064.19 21,908,064.19
35．Undistributed profits
Unit:RMB
Item Current period Previous period
Undistributed profit at the end of the
449,363,748.93 409,764,423.32
previous period before adjustment
Undistributed profits at the beginning of
449,363,748.93 409,764,423.32
the adjustment period
Plus: Net profit attributable to the owners
of the parent company in the current -17,573,821.33 39,599,325.61
period
116
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Undistributed profit at the end of the
431,789,927.60 449,363,748.93
period
36．Operating income and operating costs
Unit:RMB
Amount incurred in the current period Amount incurred in the previous period
Item
Income Cost Income Cost
Main business 479,357,217.04 472,337,905.36 449,292,839.15 435,341,802.68
Other businesses 5,432,059.45 1,302,831.22 4,926,425.05 862,430.51
Total 484,789,276.49 473,640,736.58 454,219,264.20 436,204,233.19
Unit:RMB
(1) Income arising from contracts
1) Operating income classified by revenue recognition time in this period
Income from product sales Income from OEM processing Income from refrigeration fee
Item Operating Operating Operating
Operating costs Operating income Operating costs
income income costs
Recognized at a certain point 405,149,868.55 414,710,499.86 2,381,445.20 2,095,403.25 - -
Recognized within a certain - - - - 2,698,309.45 2,058,943.49
duration
Total 405,149,868.55 414,710,499.86 2,381,445.20 2,095,403.25 2,698,309.45 2,058,943.49
(continued)
Income from other businesses Total
Item
Operating income Operating costs Operating income Operating costs
Recognized at a certain point 1,796,706.39 - 409,328,020.14 416,805,903.11
Recognized within a certain 849,056.60 - 3,547,366.05 2,058,943.49
duration
Total 2,645,762.99 - 412,875,386.19 418,864,846.60
2)Income applicable to lease accounting standards
Item Vessel lease Property lease and others Total
Operating Operating Operating Operating
Operating costs Operating costs
income income costs income
Main business 69,127,593.84 53,473,058.76 - - 69,127,593.84 53,473,058.76
117
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revenue
Income from other - - 2,786,296.46 1,302,831.22 2,786,296.46 1,302,831.22
businesses
Total 69,127,593.84 53,473,058.76 2,786,296.46 1,302,831.22 71,913,890.30 54,775,889.98
(2) Explanation of performance obligations
The Company’s sale of goods is classified as a performance obligation at a point in time, and the Company
recognizes revenue when the control of the goods is transferred; the Company’s processing service is classified
as a performance obligation at a point in time, and the Company recognizes revenue when it delivers the
processed products.
The Company’s revenue from cold storage fees is classified as a performance obligation over time, and the
Company recognizes revenue using the actual number of storage days as the fee basis.
The Company’s vessel lease income is classified as a performance obligation over time, and the Company
recognizes revenue based on the number of lease days as confirmed with the customer.
The Company’s housing and other lease income is classified as a performance obligation over time, and
the Company recognizes revenue during the period of customer lease.
37．Taxes and surcharges
Unit:RMB
Item Amount incurred in the current period Amount incurred in the previous period
Consumption tax 65.04
Urban maintenance and construction tax 59,729.13 49,808.79
Education surcharges 25,421.08 21,323.33
Property tax 962,522.86 934,220.78
Land use tax 254,017.66 243,084.06
Vehicle and vessel use tax 13,036.68 12,711.68
Stamp duty 136,934.78 133,456.01
Local education surcharges 16,947.39 14,215.57
Total 1,468,609.58 1,408,885.26
38．Administrative expenses
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
Employee compensation 16,347,187.67 19,022,687.71
Accumulated depreciation and
1,906,435.24 2,177,428.40
amortization
Travel expenses 581,000.20 832,275.16
Business entertainment expenses 369,276.46 370,266.84
118
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Vehicle cost 361,985.87 471,464.76
Intermediary service fee 541,666.09 60,433.66
Office expenses 388,354.82 342,445.70
Property water and electricity 730,780.10 811,278.58
Depreciation of use rights assets 54,560.75 260,242.55
Others 4,082,824.47 4,833,640.53
Total 25,364,071.67 29,182,163.89
39．Sales expenses
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
Employee compensation 864,554.39 905,191.78
Business promotion expenses 563,767.12 520,013.60
Travel expenses 154,451.42 84,708.59
Depreciation expenses 45,527.72 49,215.30
Communication fee 3,559.36 1,139.18
Others 384,753.85 331,539.33
Total 2,016,613.86 1,891,807.78
40． R&D expenses
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
Employee compensation 117,747.84 354,685.14
Materials 114,000.00 4,599.01
Depreciation costs 614,016.18 96,697.44
Others 159,494.16
Total 845,764.02 615,475.75
41．Financial expenses
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
Interest expenses 6,656,533.63 4,110,188.21
Less: Interest income 351,236.93 908,757.25
Exchange gains and losses 2,925,504.01 -6,865,649.63
Handling fee expenditure 797,634.79 609,479.19
Other expenses 68,742.54 131,678.02
Total 10,097,178.04 -2,923,061.46
42．Other income
Unit:RMB
Sources of other income generation Amount incurred in the current period Amount incurred in previous period
Shipbuilding financial discount 788,795.09 107,627.02
Financial subsidies for special 349,243.44 349,243.44
119
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construction funds in the blue economic
zone
Special funds for the development of
767,000.00
deep-sea fisheries
Rewards and subsidies for high-quality
100,000.00
agricultural development policies
Subsidies for self-fishing backhaul 740,049.00
Others 200,003.16 204,175.85
Total 2,078,090.69 1,528,046.31
43．Investment income
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
Long-term equity investment income
-338,839.02 -253,775.04
accounted using the equity method
Notes discounted -43,463.11
Total -382,302.13 -253,775.04
44． Credit impairment loss
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
Bad debt loss on accounts receivable -829,840.37 -85,703.21
Bad debt loss on other receivables -65,577.50 -203,681.99
Total -895,417.87 -289,385.20
45．Asset impairment loss
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
I. Inventory falling price loss and
contract performance cost impairment -1,043,419.52 -2,699,370.85
loss
Total -1,043,419.52 -2,699,370.85
46．Non-operating income
Unit:RMB
Amount included in current
Amount incurred in the Amount incurred in previous
Item non-recurring gains and
current period period
losses
Compensation income 528,820.50
Others 419.92 330.00 419.92
Total 419.92 529,150.50 419.92
120
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47．Non-operating expenses
Unit:RMB
Amount included in current
Amount incurred in the Amount incurred in previous
Item non-recurring gains and
current period period
losses
Loss from the destruction and
scrapping of non-current 744.82 2,715.51 744.82
assets
Total 744.82 2,714.51 744.82
48．Income tax expenses
(1)Income tax expense statement
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
Current income tax expense 1,057,263.35 1,139,000.17
Deferred income tax expense 46,500.80 -39,889.64
Total 1,103,764.15 1,099,110.53
(2)Accounting profit and income tax expense adjustment process
Unit:RMB
Item Amount incurred in current period
Total profit -28,887,070.99
Income tax expenses calculated based on statutory/applicable
-7,221,767.75
tax rates
Effect of different tax rates applied to subsidiaries 5,050,312.31
The impact of adjusting income tax of previous periods 147,055.03
The impact of non-taxable income 3,050,197.29
The impact of deductible losses on unrecognized deferred
-2,268.75
income tax assets in the prior periods of use
The impact of deductible temporary differences or deductible
losses on unrecognized deferred income tax assets in the 80,236.02
current period
Income tax expenses 1,103,764.15
49．Other comprehensive income
Refer to 32, VII,Sections 10 of the notes for details.
121
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50．Items of cash flow statement
(1) Cash in connection with operating activities
Other cash received in connection with operating activities
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
Financial expenses - interest income 317,098.04 908,757.25
Government subsidies and other non-
1,007,940.96 1,418,557.36
operating income
Current accounts and others 1,286,977.89 1,523,601.26
Total 2,612,016.89 3,850,915.87
Other cash paid in connection with operating activities
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
Cash paid sales expenses 1,641,075.48 2,482,632.44
Cash paid management fees 7,196,337.79 11,014,487.90
Cash paid research and development
117,747.84 101,296.45
expenses
Current accounts and others 3,027,512.99 3,953,790.26
Total 11,982,674.10 17,552,207.05
(2) Cash in connection with financing activities
Other cash received in connection with financing activities
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
Banker’s acceptance discounted 5,416,000.88
Total 5,416,000.88
Other cash paid in connection with financing activities
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
Payment of lease payments 338,909.00
Total 338,909.00
Changes in liabilities arising from financing activities
Applicable □ Not applicable
Unit:RMB
Increase Decerase
Opening
Item Non-cash Non-cash Closing balance
balance Cash change Cash change
change change
Short-term
58,011,311.42 30,000,000.00 18,000,000.00 23,005.60 69,988,305.82
borrowings
Long-term 390,665,507.16 4,180,000.00 136,780.00 3,989,916.67 2,379,833.34 388,612,537.15
122
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borrowings
Non-current
liabilities due 8,837,283.90 10,779,833.34 8,837,283.90 10,779,833.34
within one year
Total 457,514,102.48 34,180,000.00 10,916,613.34 30,827,200.57 2,402,838.94 469,380,676.31
51．Supplementary information to the cash flow statement
(1)Supplementary information to the cash flow statement
Unit:RMB
Supplementary information Amount in current period Amount in previous period
1．Adjusting net profit to cash
flow from operating activities:
Net profit -29,990,835.14 -14,447,399.53
Plus: Asset impairment provision -33,286,605.69 -12,237,762.89
Depreciation of fixed assets,
depletion of oil and gas assets, and
39,797,184.23 37,849,671.85
depreciation of productive biological
assets
Depreciation of use rights assets 54,560.75 451,178.11
Amortization of intangible assets 778,764.18 318,282.00
Amortization of long-term
355,225.86 9,886.32
deferred expenses
Loss on disposal of fixed assets,
intangible assets, and other long-term
assets (income, using"-")
Loss on scrapping of fixed assets
744.82 2,714.51
(income, using "-")
Loss from changes in fair value
(income , using "-")
Financial expenses (income , using "-")
10,097,178.04 3,298,123.39
Investment losses (income , using "-") 382,302.13 253,775.04
Decrease in deferred income tax assets
39,114.60 43,655.42
(increase, using "-")
Increase in deferred income tax liabilities
-75,190.54 -83,545.06
(decrease , using "-")
Decrease in inventory (increase , using "-
-25,550,652.12 -76,069,125.44
")
Decrease in operating receivables
-11,702,306.09 -3,241,578.67
(increase , using "-")
Increase in operating payables
5,605,077.13 9,386,165.34
(decrease , using "-")
Others
Net cash flow generated from operating
-43,495,437.84 -54,465,959.61
activities
123
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2．Major investment and financing
activities that do not involve cash
receipts and payments:
Debt converted to capital
Convertible corporate bonds maturing
within one year
Fixed assets acquired through financing
lease
3．Net changes in cash and cash
equivalents:
Closing balance of cash 180,803,161.32 176,582,233.71
Less: Opening balance of cash 243,127,423.03 227,264,342.31
Plus: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash equivalents -62,324,261.71 -50,682,108.60
(2)Composition of cash and cash equivalents
Unit:RMB
Item Closing balance Opening balance
I. Cash 180,803,161.32 243,127,423.03
Including: cash in hand 1,567,238.00 8,419,757.05
Bank deposits available for payment at
178,935,923.32 234,707,665.98
any time
III. Closing balance of cash and cash
180,803,161.32 243,127,423.03
equivalents
(3) Monetary funds that are not cash and cash equivalents
Unit:RMB
Amount incurred in current Amount incurred in previous Reasons why they are not
Item
period period cash and cash equivalents
Other monetary funds 7,302,020.40 19,000,000.00 Notes deposit
Total 7,302,020.40 19,000,000.00
52．Item Foreign currency monetary items
(1)Foreign currency monetary items
Unit:RMB
Closing converted RMB
Item Closing foreign currency
Conversion exchange rate balance
balance
Monetary funds 38,948,532.73
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Including: US dollar 3,468,443.84 7.1268 24,718,905.54
Euro 72,484.37 7.6617 555,353.51
Hong Kong dollar
Cedi 6,372,303.06 0.4894 3,118,605.12
CFA Franc 101,765,967.24 0.0116 1,180,485.22
Japanese Yen 211,629,420.77 0.0443 9,375,183.34
Accounts receivable 49,586,255.01
Including: USD 5,180,251.70 7.1268 36,918,617.80
Euro
Hong Kong dollar
Japanese yen 256,811,777.65 0.0443 11,376,761.75
CFA Franc 111,282,367.39 0.0116 1,290,875.46
Long-term loans
Including: USD
Euro
Hong Kong dollar
Other receivables 32,645,568.86
Including: USD 4,563,333.56 7.1268 32,521,965.63
Cedi 251,133.06 0.4894 122,904.52
CFA Franc 60,233.62 0.0116 698.71
Accounts payable 38,311,473.99
Including: USD 4,375,017.12 7.1268 31,179,871.99
Euro 234.43 7.6617 1,796.13
Cedi 956,594.36 0.4894 468,157.28
Japanese Yen 132,430,176.75 0.0443 5,866,656.83
CFA Franc 68,533,772.70 0.0116 794,991.76
Other payables 179,358,707.93
Including: USD 25,159,557.37 7.1268 179,307,133.49
Cedi 105,383.00 0.4894 51,574.44
(2) Explanation of overseas operating entities, including for important overseas operating entities, the
main overseas operating location, recording currency, and selection basis should be disclosed. If there is a
change in recording currency, the reasons should also be disclosed.
Applicable □ Not applicable
Important overseas operating entities Overseas main Recording currency Selection basis
business location
Panama USD The economic environment in which the
HABITAT INTERNATIONAL
business operates
CORPORATION
Ghana USD The economic environment in which the
LAIF FISHERIES COMPANY LIMITED
business operates
Ghana USD The economic environment in which the
YAW ADDO FISHERIES COMPANY
business operates
LIMITED
Ghana USD The economic environment in which the
ZHONG GHA FOODS COMPANY
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LIMITED business operates
Ghana USD The economic environment in which the
AFRICA STAR FISHERIES LIMITED
business operates
53. Leases
(1) The Company as a lessee
□ Applicable Not applicable
(2) The Company as a lessor
Operating leases as a lessor
Applicable □Not applicable
Unit:RMB
Including: variable lease payments-
Item Lease income related income not included in lease
receipts
Property lease income 2,679,626.79
Vessel lease income 72,184,197.60
Total 74,863,824.39
Financing leases as a lessor
□ Applicable Not applicable
Annual undiscounted lease receipts for the next five years
□ Applicable Not applicable
(3) Recognition of sales profit or loss from financing leases as a producer or distributor
□ Applicable Not applicable
VIII. R&D Expenditures
Unit:RMB
Item Amount incurred in the current period Amount incurred in previous period
Payroll 117,747.84 354,685.14
Materials 114,000.00 4,599.01
Depreciation costs 614,016.18 96,697.44
Others 159,494.16
Total 845,764.02 615,475.75
Including: expensed R&D expenditures 845,764.02 615,475.75
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IX. Equity in other entities
1.Equity in subsidiaries
(1)Composition of enterprise groups
Unit:RMB
Place of Shareholding proportion
Registered Main operating Method of
Name of registratio Business nature
capital location Direct Indirect acquisition
subsidiary n
Shandong
Zhonglu Establishm
RMB22,5 Qingdao, Qingdao, Refrigerated
Aquatic 100.00% ent by
05,600 Shandong Shandong transport
Shipping Co., investment
Ltd.
Shandong
Zhonglu
Oceanic
Establishm
(Yantai) Food RMB104, Yantai, Yantai,
Food processing 53.79% 18.67% ent by
Co., Ltd. 322,300 Shandong Shandong
investment
(referred to as
“Zhonglu
Food”)
Shandong
Zhonglu
Haiyan Oceanic Establishm
RMB221, Qingdao, Qingdao,
Fisheries Co., Long range fishing 59.05% ent by
617,300 Shandong Shandong
Ltd. (referred to investment
as “Zhonglu
Haiyanzi”)
Zhonglu
Oceanic(Qingd
Establishm
ao) Industrial RMB192, Qingdao, Qingdao, Refrigerated
66.63% 33.37% ent by
Investment and 000,000 Shandong Shandong transport
investment
Development
Co., Ltd.
HABITAT
INTERNATIO Establishm
US$1,507, Refrigerated
NAL Panama Panama 100.00% ent by
400 transport
CORPORATIO investment
N
LAIF
Establishm
FISHERIES US$400,0 Zhonglu Haiyan holds 100%
Ghana Ghana Long range fishing ent by
COMPANY 00 of the shares.
investment
LIMITED
AFRICA STAR Establishm
US$400,0 Zhonglu Haiyan holds 100%
FISHERIES Ghana Ghana Long range fishing ent by
00 of the shares.
LIMITED investment
ZHONG GHA
Establishm
FOODS US$500,0 Zhonglu Haiyan holds 100%
Ghana Ghana Long range fishing ent by
COMPANY 00 of the shares.
investment
LIMITED
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Shandong
Zhonglu Establishm
RMB15,0 Yantai, Yantai, Cold storage Zhonglu Food holds 100% of
Oceanic ent by
00,000 Shandong Shandong services the shares.
Refrigeration investment
Co., Ltd
YAW ADDO
FISHERIES Operating
Ghana Ghana Long range fishing
COMPANY leases
LIMITED
(2)Important non wholly-owned subsidiaries
Unit:RMB
Profit and loss Dividends declared for
Shareholding Closing balance of
attributable to minority distribution to minority
proportion of minority minority shareholders'
Name of subsidiary shareholders in the shareholders in the
shareholder equity
current period current period
Shandong Zhonglu
Haiyan Oceanic
Fisheries Co., Ltd 40.95% -13,374,990.59 151,990,050.17
Shandong Zhonglu
Oceanic (Yantai) Food 27.54% 957,976.78 97,884,471.20
Co., Ltd
Explanation of the shareholding proportion of subsidiaries’ minority shareholders different from the proportion of their voting
rights:
(3)Main financial information of important non-wholly-owned subsidiaries
Unit:RMB
Closing balance Opening balance
Name
of Curren Non- Curren Non-
Non- Total Total Non- Total
subsidi Curren t current Curren Total t current
current of liabiliti current liabiliti
ary t assets liabiliti liabiliti t assets assets liabiliti liabiliti
assets assets es assets es
es es es es
Shand
ong
Zhongl
u
333,11 226,81 559,93 183,06 188,77 341,07 229,50 570,58 162,22 167,55
Haiyan 5,708, 5,330,
9,388. 3,403. 2,791. 4,294. 2,718. 9,219. 8,215. 7,435. 6,751. 7,703.
Oceani 423.60 952.59
57 16 73 46 06 81 78 59 21 80
c
Fisheri
es Co.,
Ltd
Shand
ong
Zhongl
389,60 116,93 506,53 142,34 151,10 399,57 120,95 520,52 159,22 168,58
u 8,758, 9,352,
3,470. 0,247. 3,718. 8,541. 7,170. 2,629. 7,353. 9,982. 9,067. 1,927.
Oceani 628.76 860.46
62 52 14 81 57 62 11 73 01 47
c
(Yantai
) Food
128
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Co.,
Ltd
Unit:RMB
Amount incurred in current period
Amount incurred in previous period
Name of Total Cash flow Total Cash flow
subsidiary Operating comprehen of Operating comprehen of
Net profit Net profit
income sive operating income sive operating
income activities income activities
Shandong
Zhonglu
- - - - - -
Haiyan 105,423,31 123,113,71
32,661,759. 31,869,658. 46,185,141. 14,083,529. 9,366,538.1 7,785,536.3
Oceanic 7.17 6.41
69 12 60 85 0 8
Fisheries
Co., Ltd
Shandong
Zhonglu
- -
Oceanic 190,298,32 3,478,492.3 3,478,492.3 242,865,82 5,523,380.4 5,523,380.4
2,064,758.0 11,712,010.
(Yantai) 3.88 1 1 4.14 1 1
2 07
Food Co.,
Ltd
2.Equity in joint venture or associate enterprises
(1) Summary financial information of insignificant joint ventures and joint operations
Unit:RMB
Closing balance/amount in this period Opening balance/amount in prior period
Joint ventures:
Total amount of the following items
calculated based on the shareholding
proportion
Joint operations:
Total book value of investment 1,075,192.30 1,414,031.32
Total amount of the following items
calculated based on the shareholding
proportion
-Net profits -338,839.02 -253,775.04
-Total comprehensive income -338,839.02 -253,775.04
Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd., a subsidiary of the Company, holds 15.00% of the shares of Jinan
Qinzhen Food Technology Co., Ltd. and appoints a director for it, having a significant impact on its production and operations.
X. Government Grants
1. Government grants recognized according to the amounts receivable at the end of the Reporting Period
□Applicable Not applicable
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Reasons why the estimated amount of government grants were not received at the estimated point in time
□Applicable Not applicable
2. Liabilities involving government grants
Applicable □Not applicable
Unit:RMB
Amount
included in Amount
Amount of Other Related to
Accounting Opening non- transferred to Closing
new grants in changes in assets/incom
item balance operating other income balance
this period this period e
income in in this period
this period
Deferred 51,980,968.7 51,161,432.4 Related to
488,300.00 1,307,836.25
income 3 8 assets
3. Government grants included in profit or loss
Applicable □Not applicable
Unit:RMB
Accounting item Amount incurred in current period Amount incurred in previous period
Other income 2,054,478.53 1,498,168.18
XI.Risks Related to Financial Instruments
1. Risks arising from financial instruments
The Company’s key financial instruments include accounts receivable, other receivables, accounts payable, and
other payables. For the details of each financial instrument, please refer to the relevant items in “Section X. VII.”
The purpose of the Company’s risk management is to strike an appropriate balance between risk and income,
minimize the negative impact of risks on its business performance, and maximize the interests of shareholders
and other equity investors. Based on the purpose of risk management, the basic strategy for the Company’s risk
management is to identify and analyze all the risks faced by the Company, establish an appropriate bottom line
for risk tolerance, conduct risk management, timely and reliably monitor all risks, and control risks within a
limited extent.
(1) Credit risk
If the customer or counterparty involved in a financial instrument is unable to perform their obligations under
the contract, resulting in financial losses to the Company, it is credit risk. Credit risk mainly comes from
accounts receivable from customers. The book values of accounts receivable, notes receivable, and other
receivables are the biggest credit risk to the Company’s financial assets.
130
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(2) Market risk
The market risk of a financial instrument is the risk of changes in the fair value or future cash flows of the
financial instrument caused by market price changes. It includes exchange rate risk, interest rate risk, and other
price risk.
The Company uses the sensitivity analysis technique to analyze the potential effect of reasonable, possible
changes in the relevant variables of market risk on profit or loss or shareholders’ interests. It is rare for any risk
variable to change in isolation, and the amount of the final effect of the correlation between variables on
changes in a risk variable will have a significant effect. Hence, the following content is based on the assumption
that changes in each variable happen in independent circumstances.
1) Exchange rate risk
Exchange rate risk is the risk of changes in the fair value or future cash flows of a financial instrument caused
by exchange rate changes. The exchange rate risk facing the Company mainly comes from financial assets
priced in US dollars. The amount of foreign-currency financial assets in RMB is presented in “VII. 54 Foreign-
currency monetary items.”
2) Interest rate risk
Interest rate risk is the risk of changes in the fair value or future cash flows of a financial instrument caused by
changes in the market interest rate. The interest rate risk facing the Company mainly comes from long-term
borrowings from banks. As the Company’s borrowings use the floating interest rate, there is a risk of changes in
the RMB benchmark interest rate.
(3) Liquidity risk
Liquidity risk is the risk of a fund shortage encountered by the Company when performing obligations related to
financial liabilities. In the context of normal financial conditions and financial strains, the Company makes sure
to have sufficient liquidity to repay debts that are due, consults financial institutions for financing, and
maintains a certain level of standby line of credit to reduce liquidity risk.
2. Financial assets
（1）Classification by transfer mode
Applicable □Not applicable
Unit:RMB
Amount of transferred Judgement basis for the
Transfer mode Nature of transferred Status of derecognition
financial assets status of derecognition
financial assets
Banker’s acceptance
Notes discounted Banker’s acceptance 5,459,464.00 Fully derecognized with a high credit
rating
131
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Total 5,459,464.00
（2）Financial assets derecognized due to transfer
Applicable □Not applicable
Unit:RMB
Transfer mode of financial Amount of derecognized Gains or losses related to
Item assets financial assets derecognition
Notes receivable Notes discounted 5,459,464.00 -43,463.11
Total 5,459,464.00 -43,463.11
（3）Continuing involvement in transferred financial assets
□Applicable Not applicable
XII. Related Parties and Related Transactions
1．The situation of the parent company of the enterprise
The shareholding
Proportion of
ratio of the parent
Name of parent Place of Registered capital voting rights of the
Business nature company in the
company registration parent company to
company
the company
Investment and
Management,
Asset Management
Shandong State - and Capital
owned Assets Jinan, Shandong Operations, RMB4.5 billion 47.25% 47.25%
Investment Custody
Holdings Co., Ltd Operations,
Investment
Consulting
The ultimate controlling party of the enterprise is the State owned Assets Supervision and Administration Commission of the
People's Government of Shandong Province.
2．Situation of subsidiaries of the enterprise
The situation of subsidiaries of the enterprise is detailed in Note 9, Equity in Other Entities.
3．Situation of joint ventures and associated enterprises of our company
For the details of important joint ventures and joint operations of the Company, refer to Note IX. Equity in Other Entities.
Information of other joint ventures or joint operations that had related-party transactions with the Company in this period or in
prior period that gave rise to balance:
Name of joint venture or joint operation Relationship with the Company
Jinan Qinzhen Food Technology Co., Ltd. Joint operation
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4．Other related parties
Name of other related parties Relationship between other related parties and our company
Dezhou Bank Co., Ltd Controlled by the same parent company
Zhongtai Xincheng Asset Management Co., Ltd Controlled by the same parent company
5.Related party transactions
(1) Related party transactions for purchasing and selling goods, providing and receiving labor services
Information of the sale of goods/provision of labor services
Unit:RMB
Amount incurred in
Content of related Amount incurred in previous
current period
Related parties party transaction period
Jinan Qinzhen Food
Tuna products 73,710.90 80,014.37
Technology Co., Ltd
Shandong State-owned Assets
Trusteeship fees 849,056.60 849,056.60
Investment Holding Co., Ltd.
(2)Related entrusted management/contracting and entrusted management/outsourcing situation
Table of entrusted management/contracting situation of our company:
Unit:RMB
Confirmed
Name of the Pricing basis
Name of Type of Starting date of Ending date of custody
entrusting for custody
trustee/contract entrusted/contra commission/co commission/co income/contract
party/outsourci income/contract
or cted assets ntracting ntracting ing income in
ng party ing income
this period
Shandong
Shandong
State-owned
Zhonglu
Assets
Oceanic Equity trust April 14, 2022 By contract 849,056.60
Investment
Fisheries Co.,
Holdings Co.,
Ltd
Ltd
(3)Related leasing situation
As the lessee, our company:
Unit:RMB
Variable lease
Simplified rental
payments not
Types fees for short-term
included in the Interest expense on
Name of leases and low Increased use
measurement of Rent paid lease liabilities
of leased value asset leases rights assets
lease liabilities (if assumed
lessor assets (if applicable)
applicable)
Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun
133
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t t t t t t t t t t
incurre incurre incurre incurre incurre incurre incurre incurre incurre incurre
d in d in d in d in d in d in d in d in d in d in
current previou current previou current previou current previou current previou
period s period period s period period s period period s period period s period
Zhong
tai
Xinch
eng
Propert 195,000 381,871
Asset
y .00 .11
Manag
ement
Co.,
Ltd
Zhongt
ai
Xinche
ng
Asset
33,600. 31,700.
Manage Vehicle
00 00
ment
Co.,
Ltd
(4) Compensation for key management personnel
Unit:RMB
Item Amount incurred in current period Amount incurred in previous period
Compensation for key management
923,182.00 1,807,927.00
personnel
(5)Other related party transactions
Item Related party Amount incurred in Amount incurred in
current period previous period
Income from deposit interest
Dezhou Bank Co., Ltd 4,507.04 2,721.96
6．Accounts receivable and payable of related parties
(1)Receivable
Unit:RMB
Closing balance Opening balance
Name of item Related party
Book balance Book balance
Bad debt provision Bad debt provision
Accounts Jinan Qinzhen Food
67,960.90 3,398.05 68,244.40 5,248.42
receivable Technology Co., Ltd.
Zhongtai Xincheng
Other
Asset Management 20,000.00 20,000.00
receivables
Co., Ltd.
134
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Shandong State-
Other owned Assets
2,700,000.00 90,000.00 1,800,000.00 90,000.00
receivables Investment Holdings
Co., Ltd
(2) Payables
Unit:RMB
Item Affiliate Closing book balance Opening book balance
Zhongtai Xincheng Asset
Dividends payable 1,616,659.01 1,616,659.01
Management Co., Ltd
XIII. Shared-based Payment
1. Overall share-based payment
□Applicable Not applicable
2. Equity-settled share-based payment
□Applicable Not applicable
3. Cash-settled share-based payment
□Applicable Not applicable
4. Share-based payment costs in this period
□Applicable Not applicable
XIV. Commitments and contingencies
1．Important commitments
Significant commitments existing on the balance sheet date
As of the balance sheet date, there was no commitment to disclose.
2．Contingencies
(1)Significant contingencies on the balance sheet date
As of the balance sheet date, there was no contingency to disclose.
(2) The company should also explain if it has not any important contingencies that need to be disclosed
There are no significant contingencies that need to be disclosed by the company.
135
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XV. Events after the balance sheet date
1. Explanation of other events after the balance sheet date
As of the balance sheet date, there was no post-balance sheet event to disclose.
XVI. Other Important Matters
1. Pension plan
The Company has established the occupational pension system in accordance with relevant laws, regulations, and policies. The
Company pays for supplementary pension insurance for employees (occupational pension) on the basis of joining the basic
pension insurance. The Company sets the business performance coefficient based on its actual operations and calculates the total
amount to be paid based on that coefficient. The amount to be paid by the Company in occupational pension has been disclosed in
“payroll payable - defined contribution plans.” The amount to be paid by employees is deducted from payroll by the Company.
The amount of occupational pension accrued by the Company this year is RMB828,800. For relevant disclosure, refer to “Note VII.
23. Payroll payable.”
2. Segment Information
(1)Basis for determining reporting segments and accounting policies
The Company’s main businesses include long range fishing, cold storage, processing, and trade of aquatic products, vessel leasing,
and other businesses. The Company discloses segment reporting based on the different natures of its main businesses.
(2)Financial information of the reporting segment
Unit:RMB
Seafood
Long range refrigeration Inter-segment
Item Vessel leasing Others Total
fishing processing offset
trade
Income from
262,545,799.79 69,127,593.84 188,736,731.52 226,334.09 -41,279,242.20 479,357,217.04
main business
Main business
cost 282,732,706.25 53,473,058.76 177,242,719.29 168,663.26 -41,279,242.20 472,337,905.36
Credit
6,522.33 -26,700.93 -875,239.27 -895,417.87
impairment loss
Asset
impairment loss -1,043,419.52 -1,043,419.52
Depreciation
costs and
26,381,545.84 8,213,257.55 3,692,780.30 2,161,015.32 40,448,599.01
amortization
costs
Total profit
-36,926,015.00 13,184,744.47 4,408,554.70 -11,262,355.16 1,708,000.00 -28,887,070.99
Income tax
222,334.89 881,429.26 1,103,764.15
expenses
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Net profit
-36,926,015.00 12,962,409.58 3,527,125.44 -11,262,355.16 1,708,000.00 -29,990,835.14
Total assets 1,134,464,544. - 2,018,292,019.
362,419,221.80 652,875,502.02 555,542,057.80
91 687,009,307.00 53
Total liabilities 262,545,799.79 69,127,593.84 188,736,731.52 226,334.09 -41,279,242.20 479,357,217.04
XVII. Notes to Main Items in the Parent Company's Financial Statements
1. Accounts receivable
(1) Disclosure by aging
Unit:RMB
Aging Closing book balance Opening book balance
Within one year (included) 11,431,476.41 4,535,849.02
0-6 months 11,431,476.41 4,535,849.02
More than 3 years 5,689,018.01 5,689,018.01
Total 17,120,494.42 10,224,867.03
(2) Disclosure by accrual method of bad debt provision
Unit:RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Accrual Book Accrual Book
Proporti value Proporti value
Amount Amount proporti Amount Amount proporti
on on
on on
Amon
g them:
Account
s
receivab
le of bad
debt
17,120,4 5,723,03 11,397,4 10,224,8 5,789,29 4,435,57
provisio 100.00% 33.43% 100.00% 56.62%
94.42 8.28 56.14 67.03 4.85 2.18
n
withdra
wn by
combina
tion
Among
them:
Includin
g:
Group 1: 6,564,63 5,723,03 841,595. 7,694,55 5,789,29 1,905,26
38.34% 87.18% 75.25% 75.24%
non- 3.42 8.28 14 5.03 4.85 0.18
affiliate
group
Group 2:
10,555,8 10,555,8 2,530,31 2,530,31
affiliate 61.66% 24.75%
61.00 61.00 2.00 2.00
group
137
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17,120,4 5,723,03 11,397,4 10,224,8 5,789,29 4,435,57
Total 100.00% 33.43% 100.00% 56.62%
94.42 8.28 56.14 67.03 4.85 2.18
Accrual of bad debt provision by group: non-affiliate group
Unit:RMB
Closing balance
Name
Book balance Bad debt provision Accrual proportion
Non-affiliate group 6,564,633.42 5,723,038.28 87.18%
Total 6,564,633.42 5,723,038.28
If the bad debt provision of accounts receivable is made based on the general model of expected credit losses:
Applicable Not applicable
(3)Bad debt provisions accrued, recovered or reversed in the current period
Accrual of bad debt provision in current period:
Unit:RMB
Change amount of current period
Opening
Category Recovery or Closing balance
balance Accrual
reversal Write-off Others
Accounts
5,789,294.85 -66,256.57 5,723,038.28
receivable
Total 5,789,294.85 -66,256.57 5,723,038.28
(4) Top five accounts receivable and contract assets in terms of closing balance summarized by debtor
Unit:RMB
Closing balance of
Proportion in the
bad debt provision
Closing balance of total closing
Closing balance of for accounts
Closing balance of accounts balance of
Name of entity accounts receivable and
contract assets receivable and accounts
receivable impairment
contract assets receivable and
provision for
contract assets
contract assets
A 10,555,861.00 10,555,861.00 61.66% 527,793.05
B 3,600,962.12 3,600,962.12 21.03% 180,048.11
C 688,045.00 688,045.00 4.02% 34,402.25
D 187,570.00 187,570.00 1.10% 9,378.50
E 135,780.18 135,780.18 0.79% 6,789.01
Total 15,168,218.30 15,168,218.30 88.60% 758,410.92
2. Other receivables
Unit:RMB
Item Closing balance Opening balance
Dividends receivable 79,137,061.83 79,137,061.83
Other receivables 125,517,024.80 119,544,209.72
138
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Total 204,654,086.63 198,681,271.55
(1) Dividends receivable
1)Classification of dividends receivable
Unit:RMB
Item (or invested entity) Closing balance Opening balance
Dividends receivable from subsidiaries 79,137,061.83 79,137,061.83
Total 79,137,061.83 79,137,061.83
2)Important dividends receivable with an aging of over 1 year
Unit:RMB
Whether impairment
Item (or invested Reason for non-
Closing balance Aging has occurred and its
entity) recovery
judgment basis
Funds necessary for No impairment in
Dividends receivable ensuring the production subsidiaries due to
79,137,061.83 More than 1-3 years
from subsidiaries and operation of good business
subsidiaries performance
Total 79,137,061.83
3) Disclosure by accrual method of bad debt provision
□Applicable Not applicable
(2) Other receivables
1) Classification of other receivables by nature of payment
Unit:RMB
Nature of payment Closing book balance Opening book balance
Internal transactions within the company 121,172,876.74 116,125,779.70
Reserve funds and others 8,013,925.02 7,119,165.50
Total 129,186,801.76 123,244,945.20
2) Disclosure by aging
Unit:RMB
Aging Closing book balance Opening book balance
Within 1 year (included) 104,965,855.49 86,004,868.53
0-6 months 99,784,346.78 82,086,147.46
6 months - 1 year 5,181,508.71 3,918,721.07
1-2 years 12,751,928.83 23,973,733.23
2-3 years 144,465.39 1,516,080.33
More than 3 years 11,324,552.05 11,750,263.11
Total 129,186,801.76 123,244,945.20
139
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3) Disclosure by accrual method of bad debt provision
Unit:RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Proporti Book Proporti Book
Proporti value Proporti value
Amount Amount on of Amount Amount on of
on on
accrual accrual
Among
them:
Bad debt
provisio
129,186, 3,669,77 125,517, 123,244, 3,700,73 119,544,
n 100.00% 2.84% 100.00% 3.00%
801.76 6.96 024.80 945.20 5.48 209.72
accrued
by group
Among
them:
Includin
8,013,92 3,669,77 4,344,14 7,119,16 3,700,73 3,418,43
g: aging 6.20% 45.79% 5.78% 51.98%
5.02 6.96 8.06 5.50 5.48 0.02
group
121,172, 121,172, 116,125, 116,125,
Affiliate 93.80% 94.22%
876.74 876.74 779.70 779.70
group
129,186, 3,669,77 125,517, 123,244, 3,700,73 119,544,
Total 100.00% 2.84% 100.00% 3.00%
801.76 6.96 024.80 945.20 5.48 209.72
Accrual of bad debt provision by group: non-affiliate aging group
Unit:RMB
Closing balance
Name
Book balance Bad debt provision Proportion of accrual
Non-affiliate aging group 8,013,925.02 3,669,776.96 45.79%
Total 8,013,925.02 3,669,776.96
Accrual of bad debt provision by general model of expected credit loss:
Unit:RMB
Stage 1 Stage 2 Stage 3
Expected credit loss for Expected credit loss for
the entire duration (no the entire duration Total
Bad debt provision Expected credit loss in
credit impairment (credit impairment
the next 12 months
occurred) occurred)
Balance as of January
253,822.46 3,446,913.02 3,700,735.48
1, 2024
Balance as of January
1, 2024 in the current
period
Accrual of current
-30,958.52 -30,958.52
period
Balance as of June 30,
222,863.94 3,446,913.02 3,669,776.96
2024
Changes in book balance with significant changes in loss reserves during the current period
140
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□Applicable Not applicable
4) Bad debt provisions accrued, recovered or reversed in the current period
Accrual of bad debt provision in this period
Unit:RMB
Change amount in this period
Opening
Recovered or Closing balance
Category balance Accrued Others
reversed Write-off
Other
3,700,735.48 -30,958.52 3,669,776.96
receivables
Total 3,700,735.48 -30,958.52 3,669,776.96
5) The receivables of top five closing balance collected by the debtor
Unit:RMB
Proportion to total
closing balance Closing balance of
Name of entity Nature of payment Closing balance Aging
of other bad debt provision
receivables
More than 0-3
A Current accounts 47,738,644.33 36.95%
years
More than 0-3
B Current accounts 19,451,752.95 15.06%
years
More than 0-3
C Current accounts 17,651,056.99 13.66%
years
More than 0-3
D Current accounts 8,487,768.69 6.57%
years
More than 0-3
E Current accounts 3,752,838.31 2.90%
years
Total 97,082,061.27 75.14%
3. Long-term equity investment
Unit:RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment on
328,189,455.23 328,189,455.23 328,189,455.23 328,189,455.23
subsidiaries
Total 328,189,455.23 328,189,455.23 328,189,455.23 328,189,455.23
(1)Investment on subsidiaries
Unit:RMB
Opening Opening Change in increase/decrease in this period Closing Closing
Invested
balance balance of Additional Reducing Accrual of balance balance
entity Others
(book value ) impairment investment investment impairment (book value) of
141
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provision provision impairm
ent
provisio
n
HABITAT
INTERNATI
12,476,145.6 12,476,145.6
ONAL
0 0
CORPORAT
ION
Shandong
Zhonglu
22,869,513.3 22,869,513.3
Aquatic
8 8
Shipping
Co., Ltd
Shandong
Zhonglu
Oceanic 55,448,185.2 55,448,185.2
(Yantai) 4 4
Food Co.,
Ltd
Shandong
Zhonglu
Haiyan 141,395,611. 141,395,611.
Oceanic 01 01
Fisheries
Co., Ltd
Zhonglu
Oceanic(Qin
gdao)
Industrial 96,000,000.0 96,000,000.0
Investment 0 0
and
Development
Co., Ltd
328,189,455. 328,189,455.
Total
23 23
4．Operating income and operating costs
Unit:RMB
Amount incurred in current period Amount incurred in previous period
Item
Income Cost Income Cost
Main business 159,124,975.04 155,324,013.27 63,739,903.60 67,337,263.61
Other businesses 3,870,467.09 1,287,802.60 3,269,702.19 849,166.87
Total 162,995,442.13 156,611,815.87 67,009,605.79 68,186,430.48
Income arising from contracts
1) Operating income classified by revenue recognition time in this period
Income from other
Category of Income from product sales Total
businesses
contract
Operating Operating costs Operating Operating Operating income Operating costs
142
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income income costs
Recognized at a
159,124,975.04 155,324,013.27 159,124,975.04 155,324,013.27
certain point
Recognized
within a certain 849,056.60 849,056.60
duration
Total 159,124,975.04 155,324,013.27 1,698,113.20 159,974,031.64 155,324,013.27
2) Income applicable to lease accounting standards
Property lease and others Total
Item
Operating income Operating costs Operating income Operating costs
Main business revenue
Income from other 3,021,410.49 1,287,802.60 3,021,410.49 1,287,802.60
businesses
Total 3,021,410.49 1,287,802.60 3,021,410.49 1,287,802.60
5．Investment income
Unit:RMB
Item Amount incurred in current period Amount incurred in previous period
Notes discounted -8,206.67
Total -8,206.67
XVIII. Additional information
1. Detailed statement of non-recurring profits and losses for the current period
Applicable □Not applicable
Unit:RMB
Item Amount Remarks
Government grants recognized in profit
or loss (excluding government grants that
are closely related to the Company’s
business, meet the standards of national
2,078,090.69
policies, are received in accordance with
established standards, and have a
continuous impact on the Company’s
profit or loss)
Income from custody fees obtained from
849,056.60
entrusted operations
Other non-operating income and
expenses other than the above -324.90
143
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Less: Income tax impact amount 130,139.12
Amount of minority interest effect (after
153,600.29
tax)
Total 2,643,082.98 --
The specific situation of other profit and loss items that meet the definition of non-recurring profit and loss:
Applicable Not applicable
The company does not have any specific cases of profit or loss items that meet the definition of non-recurring profit or loss.
Explanation of defining the non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on Information
Disclosure of Companies Issuing Securities to the Public as recurring profit and loss items
Applicable Not applicable
2. Earnings on equity and earnings per share
Earnings per share
Profit during the reporting Basic earnings per share Diluted earnings per share
ROE
period (RMB /Share) (RMB /Share)
Net profit attributable to
common shareholders of the -1.72% -0.0660 -0.0660
company
Net profit attributable to
common shareholders of the
-1.98% -0.0760 -0.0760
company after deducting non-
recurring profits and losses
3. Differences in accounting data according to domestic and foreign accounting standards
1)Differences in net profit and net assets in financial reports disclosed according to international
accounting standards and Chinese accounting standards
Applicable Not applicable
2) Differences in net profit and net assets in financial reports disclosed according to overseas accounting
standards and Chinese accounting standards
Applicable Not applicable
3) Statement the reasons for any difference in accounting data under domestic and foreign accounting
standards, and indicate the name of the foreign audit firm if any difference in the data audited by it is
adjusted.
4. Miscellaneous
144
