山东省中鲁远洋渔业股份有限公司
2019 年半年度财务报告
SHANDONG ZHONGLU OCEANIC FISHERIES CO.,LTD
二○一九年八月二十日
1
Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was unaudited
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidate balance sheet
Prepared by: Shandong Zhonglu Oceanic Fisheries Co., Ltd
2019-06-30
In RMB
Item 2019-6-30 2018-12-31
Current assets:
Monetary fund 172,505,897.17 183,453,073.56
Settlement provisions
Capital lent
Trading financial assets
Financial assets measured on fair
value and with its changes reckoned
into the current loss/gain
Derivative financial assets
Notes receivable
Account receivable 72,831,521.74 63,961,900.00
Receivables financing
Accounts paid in advance 13,180,507.81 22,389,784.46
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 6,972,749.22 5,529,723.80
2
Including: interest receivable
Dividend receivable
Buying back the sale of financial
assets
Inventories 408,714,619.51 330,591,120.00
Contract assets
Assets held for sale
Non-current asset due within one
year
Other current assets 30,089,780.60 32,310,466.77
Total current assets 704,295,076.05 638,236,068.59
Non-current assets:
Loans and payments on behalf
Creditors’ investment
Financial assets available for sale
Other creditors’ investment
Held-to-maturity investment
Long-term account receivable
Long-term equity investments
Other equity instrument
investment
Other non-current financial assets
Investment real estate 33,424,124.45 30,464,518.89
Fixed assets 501,281,203.55 514,332,752.28
Construction in progress 17,528,453.31 11,073,476.37
Productive biological asset
Oil and gas asset
Right-of-use asset
Intangible assets 13,243,850.59 13,665,376.82
Expense on Research and
Development
Goodwill
Long-term prepaid expenses 376,348.47 524,811.27
Deferred income tax asset 1,926,163.26 1,926,163.26
Other non-current asset 8,223,985.00 3,059,416.20
3
Total non-current asset 576,004,128.63 575,046,515.09
Total assets 1,280,299,204.68 1,213,282,583.68
Current liabilities:
Short-term loans 90,310,561.49 78,352,320.05
Loan from central bank
Capital borrowed
Trading financial liability
Financial liabilities measured on
the fair value and with its changes
reckoned into the current loss/gain
Derivative financial liability
Notes payable
Accounts payable 116,050,418.81 108,371,599.66
Accounts received in advance 36,374,846.47 17,561,329.01
Selling financial asset of
repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 36,476,473.14 44,016,063.96
Taxes payable 1,906,793.27 2,841,394.90
Other accounts payable 12,047,202.65 7,043,693.95
Including: interest payable 559,642.01 245,808.33
Dividend payable
Commission charge and
commission payable
Reinsurance payable
Contract liability
Liability held for sale
Non-current liabilities due within
433,292.74 866,585.48
one year
Other current liabilities
Total current liabilities 293,599,588.57 259,052,987.01
Non-current liabilities:
Insurance contract reserve
4
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long-term wages payable 1,513,560.34 1,513,560.34
Accrual liability
Deferred income 9,839,283.66 8,839,283.66
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 11,352,844.00 10,352,844.00
Total liabilities 304,952,432.57 269,405,831.01
Owners’ equity:
Share capital 266,071,320.00 266,071,320.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital reserve 284,054,997.75 284,054,997.75
Less: treasury stock
Other comprehensive income -711,649.56 -675,743.05
Reasonable reserve
Surplus reserve 21,908,064.19 21,908,064.19
Provision of general risk
Retained profit 260,568,895.55 232,148,801.35
Total owner’s equity attributable to
831,891,627.93 803,507,440.24
parent company
Minority interests 143,455,144.18 140,369,312.43
Total owner’s equity 975,346,772.11 943,876,752.67
Total liabilities and owner’s equity 1,280,299,204.68 1,213,282,583.68
Legal Representative: Lu Lianxing Person in Charge of Accounting: Fu Chuanhai Person in Charge of
Accounting Department: Lei Lixin
5
2. Balance Sheet of Parent Company
In RMB
Item 2019-6-30 2018-12-31
Current assets:
Monetary fund 38,041,258.67 58,180,225.27
Trading financial assets
Financial assets measured on fair
value and with its changes reckoned
into the current loss/gain
Derivative financial assets
Notes receivable
Account receivable 6,682,718.33 4,640,846.24
Receivables financing
Accounts paid in advance 2,941,473.85 2,745,721.08
Other account receivable 184,846,573.42 174,132,348.14
Including: interest receivable
Dividend receivable 91,841,262.03 92,964,132.10
Inventories 33,919,155.81 39,765,975.21
Contract assets
Assets held for sale
Non-current asset due within one
year
Other current assets 1,941,743.28 1,703,493.59
Total current assets 268,372,923.36 281,168,609.53
Non-current assets:
Creditors’ investment
Financial assets available for sale
Other creditors’ investment
Held-to-maturity investment
Long-term account receivable 5,793,491.41 5,432,212.74
Long-term equity investments 232,189,455.23 232,189,455.23
Other equity instrument
investment
Other non-current financial assets
Investment real estate 33,424,124.45 30,464,518.89
6
Fixed assets 64,220,279.73 66,833,497.57
Construction in progress
Productive biological asset
Oil and gas asset
Right-of-use asset
Intangible assets 890,226.26 1,106,244.75
Expense on Research and
Development
Goodwill
Long-term prepaid expenses 195,792.95 302,589.05
Deferred income tax asset
Other non-current asset 0.00 426,581.20
Total non-current asset 336,713,370.03 336,755,099.43
Total assets 605,086,293.39 617,923,708.96
Current liabilities:
Short-term loans
Trading financial liability
Financial liabilities measured on
the fair value and with its changes
reckoned into the current loss/gain
Derivative financial liability
Notes payable
Accounts payable 5,006,269.11 8,034,779.37
Accounts received in advance 5,735,747.55 9,957,655.47
Contract liability
Wage payable 17,959,290.72 19,729,495.62
Taxes payable 158,952.15 333,936.38
Other accounts payable 67,168,358.52 78,713,961.06
Including: interest payable
Dividend payable
Liability held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 96,028,618.05 116,769,827.90
7
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long-term wages payable 1,092,153.95 1,092,153.95
Accrual liability
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 1,092,153.95 1,092,153.95
Total liabilities 97,120,772.00 117,861,981.85
Owners’ equity:
Share capital 266,071,320.00 266,071,320.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital reserve 279,115,900.17 279,115,900.17
Less: treasury stock
Other comprehensive income
Reasonable reserve
Surplus reserve 19,184,672.34 19,184,672.34
Retained profit -56,406,371.12 -64,310,165.40
Total owner’s equity 507,965,521.39 500,061,727.11
Total liabilities and owner’s equity 605,086,293.39 617,923,708.96
3. Consolidated Profit Statement
In RMB
Item Semi-annual of 2019 Semi-annual of 2018
I. Total operating income 515,468,659.14 440,322,776.97
8
Including: Operating income 515,468,659.14 440,322,776.97
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 483,700,588.70 417,410,385.40
Including: Operating cost 437,867,047.13 374,498,048.55
Interest expense
Commission charge and
commission expense
Cash surrender value
Net amount of expense of
compensation
Net amount of withdrawal of
insurance contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Tax and extras 1,485,273.60 1,333,504.23
Sales expense 11,996,385.92 14,843,224.40
Administrative expense 29,199,215.47 23,045,619.66
R&D expense
Financial expense 3,152,666.58 3,689,988.56
Including: Interest
2,382,040.26 3,082,690.15
expenses
Interest income 541,927.78 174,711.83
Add: other income 433,292.74 433,292.74
Investment income (Loss is
listed with "-")
Including: Investment income
on affiliated company and joint venture
The termination of income
recognition for financial assets measured
by amortized cost(Loss is listed with "-")
Exchange income (Loss is
listed with "-")
Net exposure hedging income
(Loss is listed with "-")
9
Income from change of fair
value (Loss is listed with "-")
Loss of credit impairment
(Loss is listed with "-")
Losses of devaluation of asset
-3,302.88 151,387.56
(Loss is listed with "-")
Income from assets disposal
-1,399.00 -18,990.79
(Loss is listed with "-")
III. Operating profit (Loss is listed with
32,196,661.30 23,478,081.08
"-")
Add: Non-operating income
Less: Non-operating expense 24,200.00 427,108.38
IV. Total profit (Loss is listed with "-") 32,172,461.30 23,050,972.70
Less: Income tax expense 662,058.68 1,922,681.98
V. Net profit (Net loss is listed with "-") 31,510,402.62 21,128,290.72
(i) Classify by business continuity
1.continuous operating net profit
31,510,402.62 21,128,290.72
(net loss listed with ‘-")
2.termination of net profit (net loss
listed with ‘-")
(ii) Classify by ownership
1.Net profit attributable to owner’s
28,420,094.20 22,601,899.21
of parent company
2.Minority shareholders’ gains and
3,090,308.42 -1,473,608.49
losses
VI. Net after-tax of other comprehensive
-44,875.62 -23,938.25
income
Net after-tax of other comprehensive
income attributable to owners of parent -35,906.51 -14,135.54
company
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss
10
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(ii) Other comprehensive income
items which will be reclassified -35,906.51 -14,135.54
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.gain/loss of fair value
changes for available-for-sale financial
assets
4.Amount of financial assets
re-classify to other comprehensive
income
5.Gain/loss of
held-to-maturity investments that
re-classify to available-for-sale financial
asset
6.Credit impairment
provision for other debt investment
7.Cash flow hedging reserve
8.Translation differences
arising on translation of foreign currency -35,906.51 -14,135.54
financial statements
9.Other
Net after-tax of other comprehensive
income attributable to minority -8,969.11 -9,802.71
shareholders
VII. Total comprehensive income 31,465,527.00 21,104,352.47
Total comprehensive income
28,384,187.69 22,587,763.67
attributable to owners of parent Company
Total comprehensive income
3,081,339.31 -1,483,411.20
attributable to minority shareholders
VIII. Earnings per share:
11
(i) Basic earnings per share 0.11 0.08
(ii) Diluted earnings per share 0.11 0.08
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before
combination, and realized 0 Yuan at last period for combined party
Legal Representative: Lu Lianxing
Person in Charge of Accounting: Fu Chuanhai
Person in Charge of Accounting Department: Lei Lixin
4. Profit Statement of Parent Company
In RMB
Item Semi-annual of 2019 Semi-annual of 2018
I. Operating income 90,518,493.12 79,888,714.36
Less: Operating cost 63,255,773.62 60,951,172.97
Taxes and surcharge 355,604.14 342,224.63
Sales expenses 5,438,557.64 6,582,490.13
Administration expenses 14,109,200.60 10,276,464.69
R&D expenses
Financial expenses -571,940.04 -1,041,062.37
Including: interest
-23,537.79
expenses
Interest income 209,935.62 104,516.67
Add: other income
Investment income (Loss is
listed with "-")
Including: Investment income
on affiliated Company and joint venture
The termination of
income recognition for financial assets
measured by amortized cost (Loss is
listed with "-")
Net exposure hedging income
(Loss is listed with "-")
Changing income of fair
value (Loss is listed with "-")
Loss of credit impairment
12
(Loss is listed with "-")
Losses of devaluation of asset
-3,302.88 -2,053.90
(Loss is listed with "-")
Income on disposal of assets
(Loss is listed with "-")
II. Operating profit (Loss is listed with
7,927,994.28 2,775,370.41
"-")
Add: Non-operating income
Less: Non-operating expense 24,200.00 70,000.00
III. Total Profit (Loss is listed with "-") 7,903,794.28 2,705,370.41
Less: Income tax
IV. Net profit (Net loss is listed with
7,903,794.28 2,705,370.41
"-")
(i)continuous operating net profit
7,903,794.28 2,705,370.41
(net loss listed with ‘-")
(ii) termination of net profit (net
loss listed with ‘-")
V. Net after-tax of other comprehensive
income
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
13
other debt investment
3.gain/loss of fair value
changes for available-for-sale financial
assets
4.Amount of financial
assets re-classify to other
comprehensive income
5.Gain/loss of
held-to-maturity investments that
re-classify to available-for-sale financial
asset
6.Credit impairment
provision for other debt investment
7.Cash flow hedging
reserve
8.Translation differences
arising on translation of foreign
currency financial statements
9.Other
VI. Total comprehensive income 7,903,794.28 2,705,370.41
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Item Semi-annual of 2019 Semi-annual of 2018
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 516,354,870.14 445,354,742.24
services
Net increase of customer deposit
and interbank deposit
Net increase of loan from central
bank
Net increase of capital borrowed
from other financial institution
14
Cash received from original
insurance contract fee
Net cash received from reinsurance
business
Net increase of insured savings
and investment
Cash received from interest,
commission charge and commission
Net increase of capital borrowed
Net increase of returned business
capital
Net cash received by agents in sale
and purchase of securities
Write-back of tax received 18,156,060.52 29,094,665.73
Other cash received concerning
23,261,940.06 24,176,956.47
operating activities
Subtotal of cash inflow arising from
557,772,870.72 498,626,364.44
operating activities
Cash paid for purchasing
commodities and receiving labor 417,495,100.29 343,862,255.82
service
Net increase of customer loans and
advances
Net increase of deposits in central
bank and interbank
Cash paid for original insurance
contract compensation
Net increase of financial assets
held for transaction purposes
Net increase of capital lent
Cash paid for interest, commission
charge and commission
Cash paid for bonus of guarantee
slip
Cash paid to/for staff and workers 63,172,046.67 59,531,961.28
Taxes paid 8,042,420.72 9,030,860.47
Other cash paid concerning
73,304,150.34 64,386,674.56
operating activities
15
Subtotal of cash outflow arising from
562,013,718.02 476,811,752.13
operating activities
Net cash flows arising from operating
-4,240,847.30 21,814,612.31
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment
income
Net cash received from disposal of
fixed, intangible and other long-term 15,477.00
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from investing
15,477.00
activities
Cash paid for purchasing fixed,
15,487,389.84 2,816,140.63
intangible and other long-term assets
Cash paid for investment
Net increase of mortgaged loans
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
15,487,389.84 2,816,140.63
activities
Net cash flows arising from investing
-15,487,389.84 -2,800,663.63
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
100,000,000.00
investment
Including: Cash received from
absorbing minority shareholders’
investment by subsidiaries
16
Cash received from loans 65,683,927.18 44,481,427.05
Cash received from issuing bonds
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
65,683,927.18 144,481,427.05
activities
Cash paid for settling debts 53,222,974.42 157,275,541.94
Cash paid for dividend and profit
2,068,206.58 3,139,235.51
distributing or interest paying
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
Other cash paid concerning
financing activities
Subtotal of cash outflow from financing
55,291,181.00 160,414,777.45
activities
Net cash flows arising from financing
10,392,746.18 -15,933,350.40
activities
IV. Influence on cash and cash
equivalents due to fluctuation in -1,611,685.44 426,229.11
exchange rate
V. Net increase of cash and cash
-10,947,176.40 3,506,827.39
equivalents
Add: Balance of cash and cash
182,767,125.48 147,067,351.82
equivalents at the period -begin
VI. Balance of cash and cash
171,819,949.08 150,574,179.21
equivalents at the period -end
6. Cash Flow Statement of Parent Company
In RMB
Item Semi-annual of 2019 Semi-annual of 2018
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 74,442,966.97 37,086,232.35
services
Write-back of tax received
Other cash received concerning 24,878,328.23 13,622,760.58
17
operating activities
Subtotal of cash inflow arising from
99,321,295.20 50,708,992.93
operating activities
Cash paid for purchasing
commodities and receiving labor 25,971,148.25 26,382,364.57
service
Cash paid to/for staff and workers 15,978,127.46 15,488,408.20
Taxes paid 1,146,367.73 1,324,993.47
Other cash paid concerning
76,293,284.88 12,830,808.80
operating activities
Subtotal of cash outflow arising from
119,388,928.32 56,026,575.04
operating activities
Net cash flows arising from operating
-20,067,633.12 -5,317,582.11
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment
income
Net cash received from disposal of
fixed, intangible and other long-term
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from investing
activities
Cash paid for purchasing fixed,
71,454.89 839,043.14
intangible and other long-term assets
Cash paid for investment 28,000,000.00
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
71,454.89 28,839,043.14
activities
18
Net cash flows arising from investing
-71,454.89 -28,839,043.14
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Cash received from loans
Cash received from issuing bonds
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
activities
Cash paid for settling debts
Cash paid for dividend and profit
distributing or interest paying
Other cash paid concerning
financing activities
Subtotal of cash outflow from financing
activities
Net cash flows arising from financing
activities
IV. Influence on cash and cash
equivalents due to fluctuation in 121.41 1,291.21
exchange rate
V. Net increase of cash and cash
-20,138,966.60 -34,155,334.04
equivalents
Add: Balance of cash and cash
58,180,225.27 48,034,853.41
equivalents at the period -begin
VI. Balance of cash and cash
38,041,258.67 13,879,519.37
equivalents at the period -end
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Period
In RMB
Semi-annual of 2019
Owners’ equity attributable to the parent Company
Item Minori Total
Share Other equity Capital Less: Other Reaso Surplu Provisi Retain Subtot ty owners
Other
capita instrument reserve treasur compr nable s on of ed al interes ’
19
l Perpe y stock ehensi reserve reserve genera profit ts equity
tual ve l risk
Prefe capit incom
rred Other
al e
stock
secur
ities
I. Balance at the 266,0 284,05 21,908 232,14 803,50 140,36 943,87
-675,7
end of the last 71,32 4,997. ,064.1 8,801. 7,440. 9,312. 6,752.
43.05
year 0.00 75 9 35 24 43 67
Add:
Changes of
accounting
policy
Error
correction of the
last period
Enterprise
combine under
the same
control
Other
II. Balance at 266,0 284,05 21,908 232,14 803,50 140,36 943,87
-675,7
the beginning of 71,32 4,997. ,064.1 8,801. 7,440. 9,312. 6,752.
43.05
this year 0.00 75 9 35 24 43 67
III. Increase/
Decrease in this 28,420 28,384 31,470
-35,90 3,085,
year (Decrease ,094.2 ,187.6 ,019.4
6.51 831.75
is listed with 0 9 4
"-")
(i) Total 28,420 28,384 31,470
-35,90 3,085,
comprehensive ,094.2 ,187.6 ,019.4
6.51 831.75
income 0 9 4
(ii) Owners’
devoted and
decreased
capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
20
with
share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or
shareholders)
4. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
21
report period
(VI)Others
IV. Balance at 266,0 284,05 21,908 260,56 831,89 143,45 975,34
-711,6
the end of the 71,32 4,997. ,064.1 8,895. 1,627. 5,144. 6,772.
49.56
report period 0.00 75 9 55 93 18 11
Last Period
In RMB
Semi-annual of 2018
Owners’ equity attributable to the parent Company
Other equity
instrument Other
Minorit
Perp compr Provisi Total
Item Share Less: Reaso Surplu Retain y
etual Capital ehensi on of Subtot owner’s
capita treasur nable s ed Other interest
Prefe capit reserve ve genera al equity
l rred Other y stock reserve reserve profit s
al incom l risk
stock
secur e
ities
I. Balance at 266,0 279,99 21,908 141,86 703,76
-6,075, 35,321, 739,090
the end of the 71,32 8,206. ,064.1 7,217. 9,793.
014.12 101.18 ,895.13
last year 0.00 82 9 06 95
Add:
Changes of
accounting
policy
Error
correction of
the last period
Enterprise
combine
under the
same control
Other
II. Balance at 266,0 279,99 21,908 141,86 703,76
-6,075, 35,321, 739,090
the beginning 71,32 8,206. ,064.1 7,217. 9,793.
014.12 101.18 ,895.13
of this year 0.00 82 9 06 95
III. Increase/
Decrease in this 22,601 29,942
7,354, -14,13 91,005, 120,947
year (Decrease ,899.2 ,173.7
410.04 5.54 128.57 ,302.28
is listed with 1 1
"-")
(i) Total 22,601 22,587
-14,13 -1,473, 21,114,
comprehensive ,899.2 ,763.6
5.54 608.49 155.18
income 1 7
22
(ii) Owners’
devoted and 7,354, 7,354, 92,478, 99,833,
decreased 410.04 410.04 737.06 147.10
capital
1.Common
7,354, 7,354, 92,478, 99,833,
shares invested
410.04 410.04 737.06 147.10
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or
shareholders)
4. Other
(IV) Carrying
forward
internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings
from the
23
defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at 266,0 287,35
-6,089,
21,908 164,46 733,71
126,326 860,038
the end of the 71,32 2,616. ,064.1 9,116. 1,967.
149.66 ,229.75 ,197.41
report period 0.00 86 9 27 66
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Period
In RMB
Semi-annual of 2019
Other equity instrument
Perpet Other
Less: Reasona Total
Item Share ual Capital compreh Surplus Retaine
Preferr treasury ble Other owner’s
capital ed capital Other reserve ensive reserve d profit
stock reserve equity
stock securiti income
es
I. Balance at the 266,07 279,115, 19,184,6 -64,310 500,061,7
end of the last 1,320.0
900.17 72.34 ,165.40 27.11
year 0
Add:
Changes of
accounting
policy
Error
correction of the
last period
Other
II. Balance at the
266,07 279,115, 19,184,6 -64,310 500,061,7
beginning of this
24
year 1,320.0 900.17 72.34 ,165.40 27.11
0
III. Increase/
Decrease in this 7,903,7 7,903,794.
year (Decrease is 94.28 28
listed with "-")
(i) Total
7,903,7 7,903,794.
comprehensive
94.28 28
income
(ii) Owners’
devoted and
decreased capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal of
surplus reserves
2. Distribution
for owners (or
shareholders)
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with surplus
reserve
25
4．Carry-over
retained earnings
from the defined
benefit plans
5．Carry-over
retained earnings
from other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
(VI)Others
IV. Balance at 266,07
279,115, 19,184,6 -56,406 507,965,5
the end of the 1,320.0
900.17 72.34 ,371.12 21.39
report period 0
Last Period
In RMB
Semi-annual of 2018
Other equity
instrument
Other
Perpet Less: Total
Item Share Capital compre Reasonab Surplus Retained
ual treasury Other owner’s
capital Preferr reserve hensive le reserve reserve profit
ed capital Other stock equity
income
stock securit
ies
I. Balance at the 266,07 279,115, 19,184, -180,183, 384,188,64
end of the last 1,320.
900.17 672.34 246.38 6.13
year 00
Add:
Changes of
accounting
policy
Error
correction of
the last period
Other
II. Balance at 266,07
279,115, 19,184, -180,183, 384,188,64
the beginning 1,320.
900.17 672.34 246.38 6.13
of this year 00
26
III. Increase/
Decrease in this
2,705,370 2,705,370.4
year (Decrease
.41 1
is listed with
"-")
(i) Total 2,705,370 2,705,370.4
comprehensive
.41 1
income
(ii) Owners’
devoted and
decreased
capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal
of surplus
reserves
2. Distribution
for owners (or
shareholders)
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
27
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at 266,07
279,115, 19,184, -177,477, 386,894,01
the end of the 1,320.
900.17 672.34 875.97 6.54
report period 00
III. Company profile
(i) Enterprise registration place, Organization form and Headquarters address
Shandong Zhonglu Oceanic Fisheries Co., Ltd. (hereinafter referred to as “Company” or “the
Company”), registration address: No. 29 Miaoling Road, Laoshan District, Qingdao Shangdong,
headquarter locates at No. 65 Haier Road, Qingdao Shangdong, was incorporated as a joint stock
limited company in the People’s Republic of China on 30 July 1999 according to the
documentation of Lu TiGaiZi [1999] No.85 issued by Shandong Development and Reform
Commission, and the holding company of the Company is Shandong Fisheries Enterprise Group
General Corporation, the main sponsor. On 26 June 2000, being approved by the documentation
of Zheng Jian Fa Xing Zi [2000] No.82 issued by the China Securities Regulatory Commission,
the Company’s B-share, stock ID “Zhonglu B”, stock code “200992” are listing for trading on
Shenzhen Stock Exchange dated 24 July 2000.
Basic organization structure of the Company: Shareholder General Meeting, BOD, Supervisory
Committee, Office of the GM (Office of the Party Committee), Departments of HR(Organization
Dept.), Financial Management Dept. (Capital Operation Dept.), Enterprise Development Dept.,
Auditing Dept., Oceanic Management Dept., Discipline Inspection & Supervision Dept. (Dept. of
Party-Masses Relationship) and Risk Control Dept. (Legal Affairs Dept.).
(ii) Business nature and main business activities of Enterprise
28
Corporate industry: sea-going fisheries
Corporate major products: tuna and its products
Operating scope:general management projects: sales and processing of aquatic products;
merchandise import and export business within approved scope; ice machine manufacture and sale;
refrigeration equipment manufacturing, installation, maintenance; refrigeration; load and unload
services; housing lease.
Pre-license operation: offshore fishing and distant fishing.
(iii) Person approves the financial report for disclosed and date for report
The financial report has been approved for report by the Board dated 22 August 2019.
(iv) Scope and changes of consolidated statements during the reporting period
Ended as 30 June 2019, consolidation scope of the Company including 4 secondary enterprises, 4
three-tier enterprises and one operation entity with controlling rights obtained through operating
lease.
4 secondary enterprises: Shandong Zhonglu Fishery Shipping Co., Ltd., Shandong Zhonglu
Oceanic (Yantai) Foods Co., Ltd., HABITAT INTERNATIONAL CORPORATION and
Shandong Zhonglu Haiyan Deep-sea Fishery Co., Ltd; 4 three-tier enterprises: LAIF FISHERIES
COMPANY LIMITED, Shandong Zhonglu Ocean Refrigerated Co., Ltd., AFRICA STAR
FISHERIES LIMITED and ZHONG GHA FOODS COMPANY LIMITED; one operation entity
with controlling rights obtained through operating lease: YAW ADDO FISHERIES COMPANY
LIMITED. Entity of the consolidate scope found more in Note IX- Equity in Other entity
IV. Preparation basis of Financial Statements
1. Preparation basis
Base on the running continuously and actual transactions and events, in line with the Accounting
Standards for Business Enterprise – Basic Standards and specific principle of accounting standards
issued by the Ministry of Finance, the Company prepared and formulate the financial statement
lies on the followed important accounting policy and estimation.
2. Going concern
The Company have the ability to continue as a going concern within 12 months at least since end
of the reporting period, there are no major events that impact the ability to continue as a going
concern
29
V. Important accounting policy and estimation
Notes on specific accounting policies and accounting estimation:
The Company and subsidiaries determine specific accounting policies and accounting estimation
based on their production and operation, which mainly differ in accrual method for bad debt
provision of the account receivable(Note X-(v).11), evaluation of inventory(Note X-(v).13),
depreciation of fixed assets and intangible assets amortization(Note X-(v).16) and (Note X-(v).19)
and time of the revenue recognized (Note X-(v).23)etc.
1. Declaration of obedience to Accounting Standards for Business Enterprise
The Financial Statements of the Company are up to requirements of Accounting Standards for
Business Enterprise and also a true and thorough reflection to the relevant information as the
Company’s financial position dated 30th June 2019 and the operation results as well as cash flow
from January to June in 2019.
2. Accounting period
The Company’s accounting year is Gregorian calendar year, namely from 1 st January to 31st
December of every year.
3. Business cycle
The Company’s business cycle is one year (12 months) as a normal cycle, and the business cycle
is the determining criterion for the liquidity of assets and liabilities of the Company.
4. Bookkeeping standard currency
The Renminbi (RMB) is taken as the book-keeping standard currency
5. Accounting methods for consolidation of enterprises under the same control or otherwise
(1) Consolidation of enterprises under the same control
Where the Company for long term equity investment arising from business combination under
common control satisfies the combination consideration by payment of cash, transfer of non-cash
assets or assumption of debt, the carrying value of the net assets of the acquire in combined
financial statement of the ultimate controller shared by the Company as at the combination date
shall be deemed as the initial investment cost of such long term equity investment.If the equity
instrument issued by combining party are consider as the combination consideration, than the total
30
value of the issuing shares are consider as the share capital. The difference between the initial cost
of long-term equity investment and book value of consideration (or total face value of the shares
issued) paid, capital surplus adjusted; if the capital surplus not enough to written down, than
retained earning adjusted.
(2) Business combination not under common control
As for business combination not under common control, combination costs refer to the sum of the
fair value of the assets paid, liabilities occurred or assumed as well as equity securities issued by
the acquirer to obtain control over the acquire as at the acquisition date. As for acquiree that
obtained by consolidation not under the same control, the qualified confirmation of identified
assets, liability and contingency liabilities should calculated by fair value on day of purchased. If
the consolidation cost larger than the fair value amount of indentified net assets from acquiree’s,
the differences should be recognized as goodwill. If the consolidation cost less than the fair value
amount of indentified net assets from acquiree’s, the differences should reckoned into current
gains/losses after re-examination.
6. Preparation methods for consolidated financial statements
(1) Consolidation financial statement range
The Company includes all the subsidiaries (including the separate entities controlled by the
Company) into consolidated financial statement, including companies controlled by the Company,
non-integral part of the investees and structural main body.
(2) Centralize accounting policies, balance sheet dates and accounting periods of parent and
subsidiaries.
As for the inconsistency between the subsidiaries and the Company in the accounting policies and
periods, the necessary adjustment is made on the subsidiaries’ financial statements in the
preparation of the consolidated financial statements according to the Company’s accounting
policies and periods.
(3) Set-off of consolidated financial statement
The consolidated financial statements shall be prepared on the basis of the balance sheet of the
parent company and subsidiaries, which offset the internal transactions incurred between the
parent company and subsidiaries and within subsidiaries. The owner’s equity of the subsidiaries
not attributable to the parent company shall be presented as minority equity under the owner’s
equity item in the consolidated balance sheet. The long term equity investment of the parent
company held by the subsidiaries, deemed as treasury stock of the corporate group as well as the
reduction of owners’ equity, shall be presented as “Less: treasury stock” under the owners’ equity
item in the consolidated balance sheet.
(4)Accounting for acquisition of subsidiary through combination
For subsidiaries acquired under enterprise merger involving enterprises under
common control, the assets, liabilities, operating results and cash flows of the subsidiaries are
included in the consolidated financial statements from the beginning of the financial year
in which the combination took place. When preparing the consolidated financial
statements, for the subsidiaries acquired from business combination not involving
entities under common control, the identifiable net assets of the subsidiaries are adjusted on the
31
basis of their fair values on the date of acquisition.
7. Classification of joint arrangements and accounting treatment of joint operation
(1) Classification of joint arrangements
Joint arrangements are divided into joint operations and joint ventures. Joint arrangements
achieved not through separate entities are classified as joint operations. Separate entities refer to
the entities with separate identifiable financial architecture including separate legal entities and
legally recognized entities without the qualification of legal entity. Joint arrangements achieved
through separate entities are generally classified as joint ventures. In case of changes in rights
entitled to and obligations undertaken by the parties of joint venture under a joint arrangement due
to the changes in relevant facts and circumstances, the parties of joint venture will re-assess the
classification of joint arrangements.
(2) Accounting treatment for joint operations
As a parties of joint operation, the Company should recognize the following items in relation to
their share of interest in joint operation, and proceed with accounting in accordance with the
relevant provisions under the Accounting Standards for Business Enterprises: to recognize their
separate assets or liabilities held, and recognize the assets or liabilities jointly held according to
their respective shares; to recognize the income from the disposal of their output share under joint
operation; to recognize the income from the disposal of output under joint operation according to
their respective shares; to recognize the expenses incurred separately, and recognize the expenses
incurred under joint operation according to their respective shares.
As a parties of a joint operation not under common control, if they are entitled to relevant assets
and undertake relevant liabilities of the joint operation, accounting will be carried out with
reference to the provisions of the parties of joint operation; otherwise, it should be subject to
relevant Accounting Standards for Business Enterprises.
(3) Accounting treatment for joint ventures
The parties of a joint venture should perform accounting for investments by the joint venture in
accordance with the Accounting Standards for Business Enterprises No. 2 – Long-term Equity
Investments. The parties not under common control should carry out accounting depending on
their influence on the joint venture.
8. Determination criteria of cash and cash equivalent
The cash recognized in the preparation of the cash flow statements, is the Company’s storage cash
and deposits available for payment anytime. The cash equivalents recognized in the preparation of
the cash flow statements refers to the investment held by the Company with characteristic of
short-term, strong mobility, easy transfer to known sum cash and has slim risk from value
changes.
9. Foreign currency exchange and the conversion of foreign currency statements
(1) Foreign currency exchange
The foreign currency exchange is booked on the current exchange rate on the transaction day and
32
converted in the bookkeeping standard currency.On the balance sheet day, the monetary items are
converted on the current rate on the balance sheet day, concerning the exchange differences
between teh spot exchange rate on that date and initial confirmation or the sport exchange rate on
previously balance sheet date, should reckoned in to current gains/losses except the capitalizing on
exchange differences for foreign specific loans, which was reckoned into cost for capitalizing.
The non-monetary items measured on the historic cost are still measured by the original
bookkeeping rate with the sum of the bookkeeping standard currency unchanged. Items of
non-monetary foreign currency which was calculated by fair value, should converted by spot
exchange rate on the confirmation day of fair value, difference between the converted amount of
bookkeeping currency and original amount of bookkeeping currency, was treated as changes of fair
value (including exchange rate changed) reckoned into current gains/losses or recognized as other
consolidated income.
(2) Conversion of foreign currency financial statements
Upon the conversion of the foreign currency financial statements of the controlling subsidiaries,
joint enterprises, and the affiliated enterprises on the bookkeeping standard currency different
from the Company’s, the accounting check and preparation of the consolidated financial
statements are made. Assets and liabilities items in the balance sheet, are converted on the current
rate on the balance sheet day; owners’ equity items besides the “retained profit” item, the other
items are converted on the actual rate. Incomes and expenses items in the profit statement are
converted on the current rate. The conversion difference of the foreign currency financial
statements is listed specifically in the owners’ equity in the balance sheet. The foreign currency
cash flow is converted on the current rate on the cash flow actual day. The cash influenced by the
rate fluctuation is listed specifically in the cash flow statement. As for the foreign operation, the
conversion difference of the foreign currency statement related to the foreign operation is
transferred in proportion into the disposal of the current loss/gain.
10. Financial instruments
(1) Category and re-classification of financial instrument
Financial instrument is the contract that taken shape of the financial asses for an enterprise and of
the financial liability or equity instrument for other units.
1) Financial asset
The financial assets meet the following conditions simultaneously are classified as financial assets
measured by amortized cost: ①The Company's business model for managing financial assets
measured at amortized cost is to collect contractual cash flows; and ② according to the contract
regulations, the cash flows generated on a specific date are only the payment for the principal and
the interest based on the outstanding principal amount.
The financial assets meet the following conditions simultaneously are classified as financial assets
33
measured on fair value and with its variation reckoned into other comprehensive income:①The
Company's business model for managing such financial assets is to target at both the collection of
contractual cash flows and the sale; and ②according to the contract regulations, the cash flows
generated on a specific date are only the payment for the principal and the interest based on the
outstanding principal amount.
For non-trading equity instrument investments, the Company irreversibly designates them as the
financial assets that are measured at fair value and whose changes are included in other
comprehensive income in the initial recognition. The designation is made based on a single
investment and the relevant investment is in line with the definition of equity instruments from the
issuer's perspective.
Except for financial assets measured at amortized cost and financial assets measured at fair value
and whose changes are included in other comprehensive income, the Company classifies the
financial assets as financial assets measured at fair value and whose changes are included in current
profit and loss. At the initial recognition, if the accounting mismatch can be eliminated or reduced,
the Company can irrevocably designate the financial assets as financial assets measured at fair value
and whose changes are included in current profit and loss.
When the Company changes its business model of managing financial assets, it will reclassify all
affected financial assets on the first day of the first reporting period after the business model
changes, and adopt the future applicable method from the date of reclassification for relevant
accounting treatment, and will not make retrospective adjustments to previously recognized gains,
losses (including impairment losses or gains) or interest.
2)Financial liability
At initial recognition, financial liabilities are classified into financial liabilities measured by fair
value with changes counted into current gains/losses; financial assets transfer does not meet the
conditions for derecognition or financial liabilities that continue to be involved in the transferred
financial assets; financial liabilities measured at amortized cost. All financial liabilities are not
reclassified.
(2) Measurement of financial instrument
The initial recognition of the Company's financial instruments is measured at fair value. For
financial assets and financial liabilities measured at fair value and whose changes are included in
current profit and loss, the related transaction expenses are directly recognized in current profit and
loss. For other financial assets or financial liabilities, the related transaction expenses are included
in the initial recognition amount. For the accounts receivable or notes receivable arising from the
sale of products or the provision of labor services that do not contain or consider significant
financing components, the Company shall use the consideration amount that is expected to be
34
received as the initial recognition amount. Subsequent measurement of financial instruments
depends on their classification.
1)Financial assets
①Financial assets measured at amortized cost
After initial recognition, such financial assets are measured at amortized cost by using the effective
interest method. Gains or losses arising from financial assets which are measured at amortized cost
and are not a component of any hedging relationship are included in current profit or loss when
being derecognized,re-classified and amortized by effective interest method, or impaired.
②Financial assets measured at fair value and whose changes are included in other comprehensive
income
After initial recognition, such financial assets (part of the financial assets belonging to hedging
relationship excluded) are subsequently measured at fair value. The gains or losses (interest and
dividend revenue included) are reckoned into current gains/losses.
③Debt instrument investment measured at fair value and with its variation reckoned into other
comprehensive income
After initial recognition, such financial assets are subsequently measured at fair value.The interest
calculated by using the effective interest method, the impairment loss or gains and the exchange
gains and losses are recognized in the current profit and loss, other gains or losses are recognized in
other comprehensive income. When being derecognized, the accumulated gains or losses previously
recognized in other comprehensive income are transferred from other comprehensive income and
recognized in current profit and loss.
④Non-trading equity instrument investment designated measured by fair value and with its
variation reckoned into other comprehensive income
After initial recognition, such financial assets are subsequently measured at fair value. Except the
dividends obtained (excluding the recovery of investment costs) are included in current profit and
loss, the other related gains and losses are included in other comprehensive income and will not be
transferred in the current profit and loss.
2)Financial liability
①Financial liabilities measured at fair value and whose changes are included in current profit and
loss
Such financial liabilities include transactional financial liabilities (including derivatives that are
financial liabilities) and financial liabilities designated to be measured at fair value and whose
changes are included in current profit and loss. After the initial recognition, such financial liabilities
are subsequently measured at fair value, in addition to relevant to the hedge accounting, the gains or
losses (including interest expenses) arising from changes in the fair value of the financial liabilities
are included in current profit and loss.
35
If the financial liabilities are designated to be measured at fair value and whose changes are included
in current profit and loss, the changes in the fair value of the financial liabilities caused by the
changes in the enterprise’s own credit risks are included in other comprehensive income, and other
changes in fair value are included in current profit and loss. If the effect of the change in the credit
risk of the financial liability being included in other comprehensive income shall cause or expand
the accounting mismatch in profit or loss, the Company will include the entire gains or losses of the
financial liability in the current profit and loss.
②Financial liabilities measured at amortized cost
After initial recognition, such financial liabilities are measured at amortized cost by using the
effective interest method.
(3) How the Company recognizes the fair value of financial instruments
If the financial instrument has an active market, its fair value is determined by the quoted price in
the active market; if the financial instrument doesn’t have an active market, its fair value is
determined by the valuation technique. Valuation techniques mainly include market approach,
income approach and cost method.
In limited circumstances, if the recent information used to determine the fair value is insufficient, or
the possible estimated amount of fair value is widely distributed, and the cost represents the best
estimate of the fair value within the range, the cost may represent the appropriate estimates of fair
value within this distribution. The Company uses all the information about the performance and
operations of the investee that can be obtained after the initial recognition date tojudge whether the
cost can represent the fair value.
(4) Confirmation basis and measurement method for transfer of financial assets and financial
liabilities
1) Financial assets
If the financial asset of the Company meets one of the following conditions, it shall be derecognized:
① the contractual right to receive the cash flow of the financial asset is terminated; ②the financial
asset has been transferred, and the Company has transferred almost all the risks and remuneration of
ownership of the financial assets; ③the financial asset has been transferred., although the Company
has neither transferred nor retained almost all remuneration of the financial assets, it does not retain
control over the financial asset.
If the Company neither transfers nor retains almost all remuneration of the financial asset, and does
not retain control over the financial asset, the relevant financial asset is recognized according to the
extent of continuing involvement in the transferred financial asset, and the related liabilities are
recognized accordingly.
If the financial asset transfer generally meets the conditions for derecognition, the difference
between the following two amounts is included in the current profit and loss: ① the book value of
36
the transferred financial asset on the date of derecognition; ② the sum of the consideration
received due to the transfer of financial asset and the amount (the financial asset involving transfer
is classified as the financial asset measured at fair value and whose changes are included in other
comprehensive income)corresponding to the derecognition portion in cumulative amount of
changes in fair value originally and directly included in other comprehensive income.
If partial transfer of financial asset meets the conditions for derecognition, the whole book value of
the transferred financial asset will be apportioned between the derecognition portion and the
non-derecognition portion according to the respective fair value at the transfer date, and then
include the difference of following two amounts in profit and loss for the current period: ① the
book value of the derecognized portion on the date of derecognition; ② the sum of
theconsideration received from the derecognized portion and the amount (the financial asset
involving transfer is classified as the financial asset measured at fair value and whose changes are
included in other comprehensive income) corresponding to the derecognition portion in cumulative
amount of changes in fair value originally included in other comprehensive income.
2) Financial liabilities
If the current obligation of a financial liability (or part of it) has been discharged, the Company
derecognizes the financial liability (or part of the financial liability).
If a financial liability (or a part of it) is derecognized, the Company includes the difference between
the book value and the consideration paid (including the transferred non-cash assets or liabilities
assumed) in current profit and loss.
(5) Methods for determining expected credit losses and accounting treatment methods
1) Methods for determining expected credit losses
Based on the expected credit losses, the Company conducts accounting for impairment and
confirms loss provisions for financial assets (including receivables) measured at amortized cost,
debt investments measured at fair value and whose changes are included in other comprehensive
income (including receivables financing) ), and lease receivables.
On each balance sheet date, the Company assesses whether the credit risk of relevant financial
instrument has increased significantly since the initial recognition. The process of credit impairment
of financial instrument is divided into three stages, and there are different accounting treatment
methods for the impairment of financial instrument at different stages: ① In the first stage, if the
credit risk of financial instrument has not increased significantly since the initial recognition, the
Company measures the loss provisions according to the expected credit losses of the financial
instrument in the next 12 months, and calculate the interest income according to its book balance
(i.e., not deducting provision for impairment) and effective interest rate. ②In the second stage, if
the credit risk of financial instrument has increased significantly since the initial recognition but no
credit impairment has occurred, the Company measures the loss provisions according to the
expected credit losses of the financial instrument for the entire duration, and calculate the interest
37
income according to its book balance and effective interest rate.③ In the third stage, if the credit
risk has credit impairment, the Company measures the loss provisions according to the expected
credit losses of the financial instrument for the entire duration, and calculate the interest income
according to its book balance (book balance impairment has made provisions for impairment) and
effective interest rate.
① Method for measuring loss provisions for financial instruments with lower credit risk
For financial instruments with lower credit risk on the balance sheet date, the Company can directly
make the assumption that the credit risk of the instrument has not increased significantly since the
initial recognition without comparing with the credit risk at the initial recognition.
② Methods for measuring the loss provisions of receivables and lease receivables
The Company adopts the simplified method for receivables formed by transactions regulated by the
Accounting Standards for Business Enterprises No. 14 - Revenue (whether or not it contains
significant financing components), and lease receivables regulated by the Accounting Standards for
Business Enterprises No. 21 - Leases, that is, the loss provisions are always measured according to
the expected credit loss for the entire duration.
A. Method for determining expected credit losses of accounts receivable and accounting treatment
methods
a. For accounts receivable among enterprises within the scope of the consolidated statements of the
Company, the Company judges that there is no expected credit loss, and no provision for credit
losses is made.
b. For accounts receivable outside the enterprises within the scope of the consolidated statements of
the Company, the Company makes reference to the historical credit loss experience, combines with
the current situation and the forecast of future economic conditions, prepares the accounts
receivable aging and the expected credit loss rate comparison table for the entire duration, and
calculates the expected credit loss.
c. If the Company obtains sufficient evidence of a significant increase in credit risk on a single
account receivable, the expected credit loss of the account receivable is determined based on the
difference between the book value of the receivable and the present value of the cash flow expected
to be received, and provisions for loss are made.
B. Method for determining expected credit losses of notes receivable and accounting treatment
methods
The Company doesn’t expect credit losses on the bank acceptance bills obtained, for the commercial
acceptance bills obtained, the Company treats the bills as accounts receivable and make provisions
for expected credit losses.
③Method for measuring loss provisions of other financial assets
For financial assets other than those mentioned above, such as debt investment, other debt
investment, other receivables, long-term receivables other than lease receivables, etc., the Company
38
measures loss provisions according to the general method, namely the “three-stage” model.
2) Accounting treatment methods of expected credit losses
In order to reflect the changes in the credit risk of financial instruments since the initial
recognition, the Company re-measures the expected credit losses on each balance sheet date, and
the increase or reversal amount of the loss provisions resulting from this shall be treated as
impairment losses or gains and included in the current profit and loss, and according to the type of
financial instruments, the book value of the financial assets listed in the balance sheet is deducted
or included in the estimated liabilities (loan commitments or financial guarantee contracts) or
included in other comprehensive income (debt investments measured at fair value and whose
changes are included in other comprehensive income).
11. Account receivable
Found more in Note V-10 Financial instrument
12. Other account receivable
Determination and accounting treatment on expected credit loss of other account receivable
Found more in Note V-10 Financial instrument
13. Inventory
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1)Classification of inventory
Inventory means finished goods and merchandise that are ready for sale, work-in-progress, or
material used in the process of production or provision of service in the ordinary course of
business. Inventory includes raw materials, low value consumables, merchandise in warehouse,
revolving materials and goods in transit.
(2)Measurement
Inventories, when delivered, would be determined the actual cost under moving weighted average
method.
(3)Provision for impairment of inventory
At the balance sheet date, inventory is recorded at the lower of cost and net realizable value on an
individual basis. For items with significant quantity and low values, provision is made based on
their categories.
Net realizable value of inventories is determined as follows: ① net realizable value of finished
39
goods is the estimated selling price less relevant tax and selling expenses. The inventories of the
Company mainly refer to long-line fishing tuna. The ending net realizable value is determined at
the quotation of Qingshui Fishery Ground of Japan on the date which is the most close to the
balance sheet date less the relevant expenses that would occur to realize product sales; ② for
materials held for production, net realizable value equals the cost if the net realizable value of the
finished goods produced from the materials exceeds the cost; when the price of raw materials
decreases indicating that the net realizable value of the relevant finished goods would be lower
than cost, the net realizable value is the estimated selling price less costs to completion, selling
expenses and relevant tax; and ③ net realizable value of materials held for sale is the market
price.
(4)Inventory stocking system
The Company adopts perpetual inventory system for stocking.
(5)Amortization of low value consumables and packing materials
The Company adopts fifty amortization method for low value consumables and packing materials.
14. Long-term equity investments
(1) Recognition of initial investment cost
Initial investment cost of long term equity investment obtained by corporate consolidation: in the
case of the consolidation of enterprises under the same control, recognized as the initial cost is the
book value of the owners’ equity obtained from the consolidated party; in the case of the
consolidation of enterprises not under the same control, recognized as the initial cost is the
recognized consolidation cost on the purchase day.As for the long term equity investment obtained
by cash payment, the initial investment cost is the actual purchase payment.As for the long term
equity investment obtained by the equity securities offering, the initial investment cost is the fair
value of the equity securities.As for the long-term equity investment obtained by debt
reorganization, initial investment cost of such investment should determine by relevant regulation
of the “Accounting Standards for Business Enterprise No.12- Debt Reorganization”;As for the
long term equity investment obtained by the exchange of the non-monetary assets and the debts
restructuring, the initial investment cost is recognized on the relevant rules of “Accounting
Standards for Business Enterprise No.7- Exchange of the Non-monetary Assets”.
(2) Subsequent measurement and profit or loss recognition
Where the investor has a control over the investee, long-term equity investments are measured
using cost method. Long-term equity investments in associates and joint ventures are measured
using equity method. Where part of the equity investments of an investor in its associates are held
indirectly through venture investment institutions, common fund, trust companies or other similar
entities including investment linked insurance funds, such part of equity investments indirectly
held by the investor shall be measured at fair value through profit or loss according to according to
40
relevant requirements of Accounting Standards for Business Enterprises No.22—Recognition and
measurement of Financial Instruments regardless whether the above entities have significant
influence on such part of equity investments, while the remaining part shall be measured using
equity method.
(3) Basis of conclusion for common control and significant influence over the investee
Joint control over an investee refers to where the activities which have a significant influence on
return on certain arrangement could be decided only by mutual consent of the investing parties
sharing the control, which includes the sales and purchase of goods or services, management of
financial assets, acquisition and disposal of assets, research and development activities and
financing activities, etc.; Significant influence on the investee refers to that: significant influence
over the investee exists when holding more than 20% but less than 50% of the shares with voting
rights or even if the holding is below 20%, there is still significant influence if any of the
following conditions is met: there is representative in the board of directors or similar governing
body of the investee; participation in the investee’s policy setting process; assign key management
to the investee; the investee relies on the technology or technical information of the investing
company; or major transactions with the investee.
15. Investment real estate
Measurement for investment real estate
Cost method
Depreciation or amortization method
Investment real estate of the Company refers to the leased buildings. The investment real estate of
the Company is initially measured by cost and conducting follow-up measures by cost mode.
Accrued on the year averaging is the depreciation of the lease buildings in the Company’s
investment property. The detailed check principle is same as that of the fixed assets. The rented
land use rights and land use rights held for transfer after appreciation owned by the Company was
adopted line amortization method. Detail calculation policy was similar to intangible assets.
16. Fixed assets
(1) Recognition
The fixed assets are tangible assets held for the goods production, labor supply, lease or operation
& management, and with above one-accounting-year service life; meanwhile as up to the
following conditions, they are recognized: The economic interest related to the fixed assets
probably flow into the Company; The cost of the fixed assets can be measured reliably.
(2) Depreciation method
Category Depreciation method Depreciation life (year) Salvage rate Annual depreciation rate
41
House and building Straight-line depreciation 20-40 0-10 2.25-5.00
Vessel and netting gear Straight-line depreciation 5-30 3-5 3.17-19.40
Machine equipment Straight-line depreciation 8-20 0-10 4.50-12.50
Transportation
Straight-line depreciation 5 0-10 18.00-20.00
equipment
Furniture and office
Straight-line depreciation 5 0-10 18.00-20.00
equipment
The Company's fixed assets mainly include housing and buildings, vessels and netting, machinery and equipment,
transportation equipment, furniture and office equipment; and the depreciation method adopts the straight-line
depreciation. The useful life and estimated net residual value of fixed assets are determined by the nature and use
condition of various types of fixed assets. The useful life, estimated net residual value, and depreciation method of
fixed assets are rechecked at the end of the year, if there is difference with the former estimated number,
corresponding adjustments should be made. In addition to the fixed assets that have been accrued depreciation and
still continue to use and the land that has been separately valued and recorded, the Company counts and draws the
depreciation of all fixed assets.
(3) Recognition, evaluation and depreciation of the fixed assets under finance lease
Recognition of fixed assets under finance lease: the nature of this kind of lease is a transfer of all
risk and rewards related to the ownership of assets. Measurement of fixed assets under finance
lease: the initial amount of a fixed asset under finance lease should be recorded as the lower of fair
value of the leased asset at the beginning date of lease term and the present value of minimum
lease payment. Subsequent measurement of fixed assets under finance lease should be in
accordance with the accounting policies adopted for self-owned fixed assets in respect of
provision of depreciation and impairment.
17. Construction in progress
Construction in progress of the Company divided as self-run construction and out-bag
construction.The Construction in progress of the Company carried forward as fixed assets while
the construction is ready for the intended use. Criteria of the expected condition for use should
apply one of the follow conditions: The substance construction (installation included) of the fixed
assets has completed all or basically; As the projects have been in test production or operation, and
the results show that the assets can operate properly and produce the qualified products stably, or
the test operation result shows the assets can operate or open properly. The expenditure of the
fixed assets on the construction, is a little or little. The fixed assets of the project constructed have
been up to the requirements of the design or contract, or basically up to.
18. Borrowing expenses
(1) Recognition principle on capitalization of borrowing expenses
As for the Company’s actual borrowing expenses directly attributable to the assets construction or
production, it is capitalized and reckoned into the relevant assets cost; as for other borrowing
42
expenses, it is recognized on the actual sum and reckoned into the current loss/gain. The assets up
to the capitalization are assets as the capital assets, investment real estate, and inventory reaching
the expectant availability or sale ability.
(2) Calculation of the capitalization
Capitalization term: the period from the time starts to capitalization to the time the capitalization
ends. The period of capitalization suspended is not included. The capitalization of borrowing
expenses should be suspended while the abnormal interrupt, which surpass three months
continuously, in the middle of acquisition or construction or production.
As for the borrowing of the specific borrowing, the capitalization sum is recognized on the
current actual interest expenses less the interest income of the borrowing capital not utilized but
deposited in the bank or the return of the temporary investment; As for the appropriation of the
general borrowing, the capitalization sum is recognized on the weighted average of, the
accumulative assets expenditure above the specific borrowing, and times the capitalization rate of
the appropriation; As for the discount or premium of the borrowing, the discount or premium to be
diluted in every accounting period is recognized in the actual rate method.
The effective interest method is the method for the measurement of the diluted discount or
premium or interest expenses on the actual interest rate; and the actual interest rate is the interest
rate used in the discount of the future cash flow in the expectant duration period as the current
book value of the borrowing.
19. Intangible assets
(1) Accounting method, service life and impairment test
1) Accounting method for intangible assets
The Company’s intangible assets are measured initially on cost. The intangible assets purchased in
are taken as the actual cost on the actual payment and relevant expenditure. As for the intangible
assets invested in by the investors, the actual cost is recognized on the value stipulated in the
contract or agreement; however, if what is stipulated in the contract or agreement is not fair value,
the actual cost is recognized on fair value. As for the self-developed intangible assets, their cost is
the actual total expenditure before reaching the expectant purpose.
The follow-up measurements of the Company’s intangible assets respectively are: the line
amortization method is taken on the intangible assets of finite service life, and at the yea-end, the
check is taken on the service life and dilution of the intangible assets, and the corresponding
adjustment is made if there is inconsistency with the previous estimative ones. As for the
intangible assets of uncertain service life, it is not diluted, however, the service life is checked at
year-end; If there is solid evidence to its finite service life, its service life is estimated and diluted
in straight line method.
43
Amortization of intangible assets with limited life:
Category Service life (Year) Amortization method
Land use rights 42 Straight-line method
Computer software 10 Straight-line method
2) Recognition principle of intangible assets with uncertain service life
Recognized as the intangible assets of uncertain service life is refers to those intangible assets of
un-expectable period of economic benefits brought into the Company, or of the uncertain service
period. Recognition principle of uncertain service life: from contract right or other legal rights, the
uncertain service period is stipulated in the contract or law; after the integration of the situations
and relevant expertise argumentation in the same trade, the period of the economic interest
brought into the Company by the intangible assets still cannot be recognized.
At every year-end, the check is taken on the intangible assets of uncertain service life, mainly in
bottom-up way, namely the basic check is taken by the department relevant to the assets utilization,
to assess whether there is change in the recognition principle of the uncertain service life.
(2) Accounting policy of the internal R&D expenditure
20. Long-term assets impairment
Long-term equity investments, investment properties measured at cost and long-term assets such
as fixed assets, construction in progress, productive biological assets at cost method, oil and gas
assets, intangible assets and goodwill are tested for impairment if there is any indication that an
asset may be impaired at the balance date. If the result of the impairment test indicates that the
recoverable amount of the asset is less than its carrying amount, a provision for impairment and an
impairment loss are recognized for the amount by which the asset’s carrying amount exceeds its
recoverable amount.
The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value
of the future cash flows expected to be derived from the asset. Provision for asset impairment is
determined and recognized on the individual asset basis. If it is not possible to estimate the
recoverable amount of an individual asset, the recoverable amount of a group of assets to which
the asset belongs is determined. A group of assets is the smallest group of assets that is able to
generate independent cash inflows.
Goodwill arising from a business combination is tested for impairment at least at each year end,
irrespective of whether there is any indication that the asset may be impaired. For the purpose of
impairment testing, the carrying amount of goodwill acquired in a business combination is
allocated from the acquisition date on a reasonable basis to each of the related asset groups; if it is
impossible to allocate to the related asset groups, it is allocated to each of the related set of asset
groups. If the carrying amount of the asset group or set of asset groups is higher than its
recoverable amount, the amount of the impairment loss first reduced by the carrying amount of the
goodwill allocated to the asset group or set of asset groups, and then the carrying amount of other
44
assets (other than the goodwill) within the asset group or set of asset groups, pro rata based on the
carrying amount of each asset.
Once the impairment loss of such assets is recognized, it is not be reversed in any subsequent
period.
21. Long-term deferred expenditure
The Company’s long-term deferred expenditure are expenses paid out and with one year above
(1-year included) benefit period. The long-term unamortized expenses are diluted by periods
according to the benefit period. As the long-term unamortized expenses cannot enable the
accounting period’s beneficiary, all dilution values of the project undiluted yet, are transferred into
the current loss/gain.
22. Employees benefits
(1)Accounting for short-term benefits
In the period of employee services, short-term benefits are actually recognized as liabilities and
charged to profit or loss, or if otherwise required or allowed by accounting standards of the
enterprise, to the related costs of assets for the current period. At the time of actual occurrence,
The Company’s employee benefits are recorded into the profits and losses of the current year or
assets associated costs according to the actual amount. The non-monetary employee benefits are
measured at fair value. Regarding to the medical and health insurance, industrial injury insurance,
maternity insurance and other social insurances, housing fund and labor union expenditure and
personnel education that the Company paid for employees, the Company should recognize
corresponding employees benefits payable according to the appropriation basis and proportion as
stipulated by relevant requirements and recognize the corresponding liabilities and include these
expenses in the profits or losses of the current period or recognized as respective assets costs.
(2) Accounting for post-employment benefits
During the accounting period in which an employee provides service, the amount payable
calculated under defined contribution scheme shall be recognized as a liability and recorded in
profit and loss of the current period or in assets. In respect of the defined benefit scheme, the
Company shall use the projected unit credit method and attribute the welfare obligations
calculated using the formula stipulated by the defined benefit scheme to the service period of the
employee, and record the obligation in the current profit and loss or related assets cost.
(3) Accounting for termination benefits
The Company recognizes a liability and expenses in the current profit or loss for termination
benefits at the earlier of the following dates: when the Company can no longer withdraw the offer
of those benefits; and when the Company recognizes costs for restructuring involving the payment
of termination costs.
45
(4) Accounting for other long-term employee benefits.
The Company provides other long-term employee benefits to its employees. For those falling
within the scope of defined contribution scheme, the Company shall account for them according to
relevant requirements of the defined contribution scheme. In addition, the Company recognizes
and measures the net liabilities or net assets of the other long-term employee benefits according to
relevant requirements of the defined contribution scheme.
23. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industry
No
Whether implemented the new revenue standards
□Yes √No
When the products sold by the Company meet the following conditions, the sales revenue of the
goods is recognized according to the amount of the contract or agreement received or receivable
from the purchaser: ①The main risks and rewards of ownership of the goods have been
transferred to the buyer. ②Neither retain the continuous management rights usually associated
with ownership, nor carry out effective control over the sold goods. ③The amount of income can
be reliably measured. ④Relevant economic benefits are likely to flow into the enterprise. ⑤
Relevant costs incurred or to be incurred can be reliably measured.
For the Company's purse seine fish sold at overseas bases, generally, the income is recognized
after obtaining the vast majority of payment from the customers and after the delivery of the fish.
In the case of export sales by the local country, the income is recognized when the shipping order
and bill of lading are obtained.
Most of the Company's longline fishing goods are shipped back to domestic sales, the sales
department refers to the transaction price of Japanese Shimizu for external sales, and both parties
confirm the change of the cargo rights based on the signing of the sales contract and the value
decision table. The company confirms sales revenue based on the sales contract and the value
decision table.
Domestic sales of the Company's aquatic products processing: Shandong Zhonglu Oceanic
(Yantai) Foods Co., Ltd. issues a delivery confirmation according to the fax or mail order from
domestic customers, and the sales staff arrange the warehouse management department to stock up
and deliver the goods by air, long-distance bus or other means of delivery, the company issues the
sales invoice and confirms the sales revenue according to the delivery confirmation issued by the
sales department and signed by the warehouse management department.
Foreign sales of the Company's aquatic products processing: After the international trade
department obtains the purchase orders of foreign customers, it issues an export delivery
confirmation form and arranges the storage and transportation department to stock up. After the
46
export goods are packed and sent out, the warehouse management department sign on the delivery
confirmation issued by the international trade department, and obtain the export documents such
as packing list and bill of lading issued by the transportation department after shipment, and obtain
the export declaration form issued by the customs. The company issues the sales invoice and
confirms the sales revenue according to theexport documents such as delivery confirmation,
packing list and customs declaration.
The Company's vessel rental income: The transportation vessel leasing of Shandong Zhonglu
Aquatic Marine Co., Ltd. and Habitat International Corporation's adopts the time charter, the
company leases the ships equipped with operators to others for a certain period of time, and waits
for the dispatch of theleasee during the lease term. Regardless of whether it is operated or not, the
rental fee is charged to the lessee on a daily basis, and the company is responsible for the
occurrence of fixed expenses (such as personnel salaries, maintenance costs, etc.). During the term
of the lease, the customer settles accounts regularly and the revenue is recognized according to the
number of lease days confirmed by the customer.
24. Government subsidy
(1) Types of government subsidy and accounting treatment
government subsidy refer to monetary assets or non-monetary assets that the Company obtains
from the government without compensation (but excluding the capital invested by the government
as the owner). If the government grant is a monetary asset, it shall be measured according to the
amount received or receivable. If the government grant is a non-monetary asset, it shall be
measured at fair value; if the fair value cannot be obtained reliably, it is measured at the nominal
amount.
government subsidy related to daily activities are included in other income in accordance with the
economic business. government subsidy not related to daily activities are included in the
non-operating income and expenditure.
government subsidy that the government documents clearly stipulate for acquisition and
construction or forming long-term assets in other ways are recognized as government subsidy
related to assets. If the government documents do not clearly specify the grant target, government
subsidy that can form long-term assets, of which the part corresponding to the asset value is used
as the government subsidy related to the assets, and the rest is used as the government subsidy
related to the income; if it is difficult to distinguish, the whole government subsidy will be used as
a government grant related to income. government subsidy related to assets are recognized as
deferred income. The amount recognized as deferred income is included in the current profit and
loss in a reasonable and systematic manner within the useful life of the relevant asset.
government subsidy other than government subsidy related to assets are recognized as government
subsidy related to income. If a government grant related to the income is used to compensate the
47
relevant expenses or losses of the enterprise in the future period, it is recognized as deferred
income and is included in the current profit and loss during the period of recognizing related
expenses; the government grant used to compensate theoccurred relevant expenses or losses of the
enterprise is directly included in the current profit and loss.
The Company obtains the policy preferential loan interest subsidy, and the government allocates
the interest subsidy funds to the loan bank. If the loan bank provides loans to the Company at a
policy preferential interest rate, the actually received loan amount will be used as the entry value
of the loan, and the relevant borrowing costs will be calculated according to the loan principal and
the policy preferential interest rate. If the government directly allocates the interest subsidy to the
Company, the Company will offset thecorresponding interest subsidy against relevant
borrowing costs.
(2) Confirmation time-point of government subsidy
government subsidy are recognized when they meet the conditions attached to government
subsidy and can be received. government subsidy measured in accordance with the amount
receivable are recognized when there is conclusive evidence at the end of the period that they
conform to relevant conditions stipulated in the financial support policy and are expected to
receive financial support funds. Other government subsidy other than government subsidy
measured in accordance with the receivable amount are recognized when the grant is actually
received.
25. Deferred income tax asset and deferred income tax liability
(1) Where there is difference between the carrying amount of the assets or liabilities and its tax
base, (as for an item that has not been recognized as an asset or liability, if its tax base can be
determined in light of the tax law, the tax base shall recognized as the difference) the deferred
income tax and deferred income tax liabilities shall be determined according to the applicable tax
rate in period of assets expected to recover or liability expected to pay off.
(2) The deferred income tax assets shall be recognized to the extent of the amount of the taxable
income which it is most likely to obtain and which can be deducted from the deductible temporary
difference. On balance sheet date, if there have concrete evidence of obtaining, in future period,
enough taxable amounts to deduct the deductible temporary difference, the un-confirmed deferred
income tax assts in previous accounting period shall be recognized. If there has no enough taxable
amounts, obtained in future period, to deducted the deferred income tax assets, book value of the
deferred income tax assets shall be kept in decreased.
(3) The taxable temporary differences related to the investments of subsidiary companies and
associated enterprises shall recognized as deferred income tax liability, unless the Company can
control the time of the reverse of temporary differences and the temporary differences are unlikely
to be reversed in the expected future. As for the deductible temporary difference related to the
investment of the subsidiary companies and associated enterprises, deferred income tax assets
48
shall be recognized while the temporary differences are likely to be reversed in the expected future
and it is likely to acquire any amount of taxable income tax that may be used for making up the
deductible temporary differences.
26. Leasing
(1) Accounting treatment for operating lease
Operating lease payments are recognized on a straight-line basis over the term of the relevant
lease, and are either included in the cost of related asset or charged to profit or loss for the period.
(2) Accounting treatment for finance lease
At the commencement of the lease term, the Group records the leased asset at an amount equal to
the lower of the fair value of the leased asset and the present value of the minimum lease
payments. The difference between the recorded amounts is accounted for as unrecognized finance
charge, using the effective interest method amortization during the lease term. Minimum lease
payments deducting unrecognized financing charges are listed as long-term account payable.
27. Other important accounting policy and estimation
(1) Changes in important accounting policies
√Applicable □Not applicable
Content and causes of accounting policy
Approval procedures Note
changed
Implementation of new financial
Deliberated by the Board Found more in 1)
instrument standards
Implementation of new non-monetary
Deliberated by the Board Found more in 2)
assets exchanges standards
Implementation of new debt restructurings
Deliberated by the Board Found more in 3)
standards
Implementation of new financial statement
Deliberated by the Board Found more in 4)
format
1) Impacts of the implementation of new financial instrument standards on the Company
The Accounting Standards for Business Enterprise No. 22- Recognition and Measurement of
Financial Instruments, Accounting Standards for Business Enterprise No. 23- Transfer of
Financial Assets, Accounting Standards for Business Enterprise No. 24- Hedge Accounting and
Accounting Standards for Business Enterprise No. 37- Presentation of Financial Instruments
( these four items are collectively referred to as the new financial instrument standards) revised by
49
the Ministry of Finance in 2017 are implemented by the Company since 1 st January 2019.
Accounting policy after change found more in Note V-10.
The implementation of above mentioned standards will have no significant impact during the
reporting period.
2) Impacts of the implementation of Accounting Standards for Business Enterprise No. 7-
Non-monetary Assets Exchanges (2019 Revised) on the Company
Ministry of Finance issued the Accounting Standards for Business Enterprise No. 7-
Non-monetary Assets Exchanges (2019 Revised) (CaiKuai [2019] No.8) on 9 May 2019, and
carry into effect since 10 June 2019. As for the non-monetary assets exchange occurred from 1 st
January 2019 to the date of implementation of the standards, should be adjusted according to the
standards above mentioned. As for the non-monetary assets exchange occurred before 1st January
2019, retroactive adjustments are not required in accordance with the standards.
The implementation of above mentioned standards will have no significant impact during the
reporting period.
3)Impacts of the implementation of Accounting Standards for Business Enterprise No. 12- Debt
Restructurings (2019 Revised) on the Company
Ministry of Finance issued the Accounting Standards for Business Enterprise No. 12- Debt
Restructurings (2019 Revised) (CaiKuai [2019] No.9) on 16 May 2019, and carry into effect since
17 June 2019. As for the debt restructuring occurred from 1 st January 2019 to the date of
implementation of the standards, should be adjusted according to the standards above mentioned.
As for the debt restructuring occurred before 1st January 2019, retroactive adjustments are not
required in accordance with the standards.
The implementation of above mentioned standards will have no significant impact during the
reporting period.
4)Impacts of the implementation of Notice on Revision and Issuance of 2019 Financial Statement
Format for General Corporate (CaiKuai [2019] No.6) on the Company
On 30 April 2019, the Ministry of Finance issued the Notice on Revision and Issuance of 2019
Financial Statement Format for General Corporate (CaiKuai [2019] No.6) (hereinafter referred to
as CaiKuai [2019] No.6), the non-financial enterprises (that implement the Accounting Standards
for Business Enterprise) are required to preparing the financial statement in accordance with
the Accounting Standards for Business Enterprise and CaiKuai [2019] No.6. the financial
statement for semi-annual of 2019, the annual financial statement and financial statements for
subsequent periods are requried to prepared in line with the CaiKuai [2019] No.6.
The comparative date during the comparable period are adjusted by the Company according to the
50
CaiKuai [2019] No.6, revision of the financial statement format have no significant impact on
total assets, total liability, net profit and other comprehensive income of the Company.
(2) Changes in important accounting estimates
□Applicable √Not applicable
(3) Adjust relevant items of financial statements at beginning of the year of fist execution,
when first implemented the new financial instrument standards, new income standards and
new leasing standards
√Applicable □Not applicable
Consolidate balance sheet
In RMB
Item 2018-12-31 2019-01-01 Adjustment
Current assets:
Monetary fund 183,453,073.56 183,453,073.56
Settlement provisions
Capital lent
Trading financial assets
Financial assets
measured on fair value and
with its changes reckoned
into the current loss/gain
Derivative financial
assets
Notes receivable
Account receivable 63,961,900.00 63,961,900.00
Receivables financing
Accounts paid in
22,389,784.46 22,389,784.46
advance
Insurance receivable
Reinsurance receivables
Contract reserve of
reinsurance receivable
Other account
5,529,723.80 5,529,723.80
receivable
Including: interest
receivable
51
Dividend
receivable
Buying back the sale of
financial assets
Inventories 330,591,120.00 330,591,120.00
Contract assets
Assets held for sale
Non-current asset due
within one year
Other current assets 32,310,466.77 32,310,466.77
Total current assets 638,236,068.59 638,236,068.59
Non-current assets:
Loans and payments on
behalf
Creditors’ investment
Financial assets
available for sale
Other creditors’
investment
Held-to-maturity
investment
Long-term account
receivable
Long-term equity
investments
Other equity instrument
investment
Other non-current
financial assets
Investment real estate 30,464,518.89 30,464,518.89
Fixed assets 514,332,752.28 514,332,752.28
Construction in progress 11,073,476.37 11,073,476.37
Productive biological
asset
Oil and gas asset
Right-of-use asset
Intangible assets 13,665,376.82 13,665,376.82
52
Expense on Research
and Development
Goodwill
Long-term prepaid
524,811.27 524,811.27
expenses
Deferred income tax
1,926,163.26 1,926,163.26
asset
Other non-current asset 3,059,416.20 3,059,416.20
Total non-current asset 575,046,515.09 575,046,515.09
Total assets 1,213,282,583.68 1,213,282,583.68
Current liabilities:
Short-term loans 78,352,320.05 78,352,320.05
Loan from central bank
Capital borrowed
Trading financial
liability
Financial liabilities
measured on the fair value
and with its changes
reckoned into the current
loss/gain
Derivative financial
liability
Notes payable
Accounts payable 108,371,599.66 108,371,599.66
Accounts received in
17,561,329.01 17,561,329.01
advance
Selling financial asset of
repurchase
Absorbing deposit and
interbank deposit
Security trading of
agency
Security sales of agency
Wage payable 44,016,063.96 44,016,063.96
Taxes payable 2,841,394.90 2,841,394.90
Other accounts payable 7,043,693.95 7,043,693.95
53
Including: interest
245,808.33 245,808.33
payable
Dividend
payable
Commission charge and
commission payable
Reinsurance payable
Contract liability
Liability held for sale
Non-current liabilities
866,585.48 866,585.48
due within one year
Other current liabilities
Total current liabilities 259,052,987.01 259,052,987.01
Non-current liabilities:
Insurance contract
reserve
Long-term loans
Bonds payable
Including: preferred
stock
Perpetual
capital securities
Lease liability
Long-term account
payable
Long-term wages
1,513,560.34 1,513,560.34
payable
Accrual liability
Deferred income 8,839,283.66 8,839,283.66
Deferred income tax
liabilities
Other non-current
liabilities
Total non-current liabilities 10,352,844.00 10,352,844.00
Total liabilities 269,405,831.01 269,405,831.01
Owners’ equity:
Share capital 266,071,320.00 266,071,320.00
54
Other equity instrument
Including: preferred
stock
Perpetual
capital securities
Capital reserve 284,054,997.75 284,054,997.75
Less: treasury stock
Other comprehensive
-675,743.05 -675,743.05
income
Reasonable reserve
Surplus reserve 21,908,064.19 21,908,064.19
Provision of general risk
Retained profit 232,148,801.35 232,148,801.35
Total owner’s equity
attributable to parent 803,507,440.24 803,507,440.24
company
Minority interests 140,369,312.43 140,369,312.43
Total owner’s equity 943,876,752.67 943,876,752.67
Total liabilities and owner’s
1,213,282,583.68 1,213,282,583.68
equity
Explanation
The Ministry of Finance issued the revised Accounting Standards for Business Enterprises No. 22 - Recognition
and Measurement of Financial Instruments (CK [2017] No.7), the Accounting Standards for Business Enterprises
No. 23 - Transfer of Financial Assets(CK [2017] No.8), Accounting Standards for Business Enterprises No. 24 -
Hedge Accounting (CK [2017] No.9) and Accounting Standards for Business Enterprises No. 37 – Financial
Instruments Presentation (CK [2017] No.14) in 2017, and the Company implemented the above mentioned new
accounting standards since 1 Jan. 2019. The Company reports the available-for-sale financial assets as other equity
instrument investments after January 1, 2019. According to the convergence regulations, the information of the
comparable period will not be adjusted, and the difference between the implementation of the new standard on the
first day and the original standard will retrospectively adjust the retained earnings at the beginning of the reporting
period. The implementation of the new financial instrument standard adjusts the available-for-sale financial assets
to other equity instrument investments, as the available-for-sale financial assets have been fully provided for
impairment losses at the book balance (book balance of 33,000,000.00), the book value is 0, so it has no effect on
the report of current period.
Balance sheet of parent company
In RMB
Item 2018-12-31 2019-01-01 Adjustment
Current assets:
55
Monetary fund 58,180,225.27 58,180,225.27
Trading financial assets
Financial assets
measured on fair value and
with its changes reckoned
into the current loss/gain
Derivative financial
assets
Notes receivable
Account receivable 4,640,846.24 4,640,846.24
Receivables financing
Accounts paid in
2,745,721.08 2,745,721.08
advance
Other account
174,132,348.14 174,132,348.14
receivable
Including: interest
receivable
Dividend
92,964,132.10 92,964,132.10
receivable
Inventories 39,765,975.21 39,765,975.21
Contract assets
Assets held for sale
Non-current asset due
within one year
Other current assets 1,703,493.59 1,703,493.59
Total current assets 281,168,609.53 281,168,609.53
Non-current assets:
Creditors’ investment
Financial assets
available for sale
Other creditors’
investment
Held-to-maturity
investment
Long-term account
5,432,212.74 5,432,212.74
receivable
Long-term equity 232,189,455.23 232,189,455.23
56
investments
Other equity instrument
investment
Other non-current
financial assets
Investment real estate 30,464,518.89 30,464,518.89
Fixed assets 66,833,497.57 66,833,497.57
Construction in progress
Productive biological
asset
Oil and gas asset
Right-of-use asset
Intangible assets 1,106,244.75 1,106,244.75
Expense on Research
and Development
Goodwill
Long-term prepaid
302,589.05 302,589.05
expenses
Deferred income tax
asset
Other non-current asset 426,581.20 426,581.20
Total non-current asset 336,755,099.43 336,755,099.43
Total assets 617,923,708.96 617,923,708.96
Current liabilities:
Short-term loans
Trading financial
liability
Financial liabilities
measured on the fair value
and with its changes
reckoned into the current
loss/gain
Derivative financial
liability
Notes payable
Accounts payable 8,034,779.37 8,034,779.37
Accounts received in 9,957,655.47 9,957,655.47
57
advance
Contract liability
Wage payable 19,729,495.62 19,729,495.62
Taxes payable 333,936.38 333,936.38
Other accounts payable 78,713,961.06 78,713,961.06
Including: interest
payable
Dividend
payable
Liability held for sale
Non-current liabilities
due within one year
Other current liabilities
Total current liabilities 116,769,827.90 116,769,827.90
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred
stock
Perpetual
capital securities
Lease liability
Long-term account
payable
Long-term wages
1,092,153.95 1,092,153.95
payable
Accrual liability
Deferred income
Deferred income tax
liabilities
Other non-current
liabilities
Total non-current liabilities 1,092,153.95 1,092,153.95
Total liabilities 117,861,981.85 117,861,981.85
Owners’ equity:
Share capital 266,071,320.00 266,071,320.00
58
Other equity instrument
Including: preferred
stock
Perpetual
capital securities
Capital reserve 279,115,900.17 279,115,900.17
Less: treasury stock
Other comprehensive
income
Reasonable reserve
Surplus reserve 19,184,672.34 19,184,672.34
Retained profit -64,310,165.40 -64,310,165.40
Total owner’s equity 500,061,727.11 500,061,727.11
Total liabilities and owner’s
617,923,708.96 617,923,708.96
equity
Explanation
The Ministry of Finance issued the revised Accounting Standards for Business Enterprises No. 22 - Recognition
and Measurement of Financial Instruments (CK [2017] No.7), the Accounting Standards for Business Enterprises
No. 23 - Transfer of Financial Assets(CK [2017] No.8), Accounting Standards for Business Enterprises No. 24 -
Hedge Accounting (CK [2017] No.9) and Accounting Standards for Business Enterprises No. 37 – Financial
Instruments Presentation (CK [2017] No.14) in 2017, and the Company implemented the above mentioned new
accounting standards since 1 Jan. 2019. The Company reports the available-for-sale financial assets as other equity
instrument investments after January 1, 2019. According to the convergence regulations, the information of the
comparable period will not be adjusted, and the difference between the implementation of the new standard on the
first day and the original standard will retrospectively adjust the retained earnings at the beginning of the reporting
period. The implementation of the new financial instrument standard adjusts the available-for-sale financial assets
to other equity instrument investments, as the available-for-sale financial assets have been fully provided for
impairment losses at the book balance (book balance of 33,000,000.00), the book value is 0, so it has no effect on
the report of current period.
(4) Retrospective adjustment of early comparative data for the first implementation of new
financial standards and new lease standards
□Applicable √Not applicable
VI. Taxes
1. Major tax and tax rate
Taxes Taxation basis Tax rate
59
VAT Output tax minor the deductible input tax 16%, 13%, 10%, 9%, 6%, 3%
Urban maintenance and construction tax Turnover taxes payable 7%
Corporate income ax Taxable amount Exemption, 25%, 8%
Explain the different taxation entity of the enterprise income tax
Taxation entity Income tax rate
Shandong Zhonglu Oceanic Fisheries Company Limited Imposing no tax on distant fishing, and 25% for the house leasing
Shandong Zhonglu Haiyan Deep-sea Fishery Co., Ltd Exemption
AFRICA STAR FISHERIES LIMITED 8% for export parts, 25% for domestic sales
HABITAT INTERNATIONAL CORPORATION Exemption
LAIF FISHERIES COMPANY LIMITED 25%
ZHONG GHA FOODS COMPANY LIMITED 25%
Shandong Zhonglu Fishery Shipping Co., Ltd. 25%
Imposing no tax on aquatic product processing, and 25% for
Shandong Zhonglu Ocean Refrigerated Co., Ltd.
refrigeration service
Imposing no tax on aquatic product processing, and 25% for
Shandong Zhonglu Oceanic (Yantai) Foods Co., Ltd.
refrigeration service
2. Preferential tax
(1) VAT tax preference:
According to the relevant provisions of the CircularAbout the Provisional Management Method of Not Levying the
Tax on the Aquatic Products Directly Caught by Ocean Fishery Enterprises (SS No. [2000] 260), China's ocean
fishery enterprises stipulate on the high seas or in accordance with the relevant agreements that the aquatic products
caught in foreign sea areas and sent back for domestic sales should be regarded as the domestic products and
should not be levied the import duties and import VAT. If the corresponding domestic sales business is the primary
agricultural products sales, exempt from the VAT according to the provisions of VAT rules. The Company's sales
revenue from ocean-going fishing operations is exempt from VAT.
(2)Income tax preference:
According to relevant regulation of Circular of the Preferential Policies Concerning Corporate Income Tax (CSZ
No.[1994]001), the Letter About Relevant Issue About Accelerating the Development of China's Ocean Fisheries
(CN No. [2000] 104) of the Ministry of Finance, the Enterprise Income Tax Law of the People's Republic of China
(PRC Presidential Decree No. [2007] 63), the Enforcement Regulations of Enterprise Income Tax Law of the
People's Republic of China (PRC State Council Decree No. 512), Notice About Issuing the Preliminary Processing
Scope (Trial) of Agricultural Products that Enjoy the Preferential Policy of Enterprise Income Tax of Ministry of
Finance and State Administration of Taxation (CS No. [2008]149), the Supplement Notice About the Preliminary
Processing Scope of Agricultural Products that Enjoy the Preferential Policy of Enterprise Income Tax of Ministry
of Finance and State Administration of Taxation (CS No. [2011] 26) and the Notice About the Preferential
Problems of Corporate Income Tax for Implementation of Agriculture Animal Husbandry and Fishery of Ministry
of Finance and State Administration of Taxation (Notice of the State Administration of Taxation 2011 No. 48), as
for the initial processing of agricultural products and the commissioned initial processing of an agricultural product,
as well as the processing fees it charges, may be handled in accordance with the tax-free items for initial
60
processing of agricultural products. The Company's income obtained from the ocean-going fishing business and the
preliminary processing of agricultural products is exempted from corporate income tax. The Company's income
obtained from the business except for the ocean-going fishing and the preliminary processing of agricultural
products should pay the enterprise income tax at 25%.
VII. Notes to main items in consolidated financial statement
1. Monetary fund
In RMB
Item Closing balance Opening balance
Cash on hand 664,425.27 1,213,325.43
Bank deposit 171,155,523.82 181,553,800.05
Other monetary fund 685,948.08 685,948.08
Total 172,505,897.17 183,453,073.56
Including: Total amount save aboard 29,540,900.00 22,689,473.81
Other explanation
2. Trading financial assets
In RMB
Item Closing balance Opening balance
Including:
Including:
Other explanation:
3. Derivative financial assets
In RMB
Item Closing balance Opening balance
Other explanation:
4. Notes receivable
(1) Category
In RMB
Item Closing balance Opening balance
In RMB
61
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book Book
Accrual Accrual
Amount Ratio Amount value Amount Ratio Amount value
ratio ratio
Including:
Including:
Accrual bad debt provision on single basis:
In RMB
Closing balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Accrual bad debt provision on portfolio
In RMB
Closing balance
Name
Book balance Bad debt provision Accrual ratio
Explanation on portfolio basis:
If the provision for bad debts of notes receivable is made in accordance with the general model of expected credit
losses, please refer to the disclosure of other account receivable to disclose related information about bad-debt
provisions:
□Applicable √Not applicable
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Category Opening balance Closing balance
Accrual Collected or reversal Charge-off
Including important amount of bad debt provision collected or reversal in the period:
□Applicable √Not applicable
(3) Note receivable pledged at period-end
In RMB
Item Amount pledged at period-end
(4) Note receivable which have endorsed and discount at period-end and has not expired on
balance sheet date
In RMB
Item Amount derecognition at period-end Amount not derecognition at period-end
62
(5) Notes transfer to account receivable due for failure implementation by drawer at
period-end
In RMB
Item Amount transfer to account receivable at period-end
Other explanation
(6) Note receivable actually charge-off in the period
In RMB
Item Amount charge-off
Including important note receivable charge-off:
In RMB
Amount cause by
Procedure for
Enterprise Nature Amount charge-off Causes related transactions
charge-off
or not (Y/N)
Explanation on note receivable change-off:
5. Account receivable
(1) Category
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Including:
Account receivable
with bad debt 82,512,1 9,680,59 72,831,52 73,642,49 9,680,593 63,961,900.
100.00% 11.73% 100.00% 13.15%
provision accrual by 14.75 3.01 1.74 3.01 .01 00
portfolio
Including:
82,512,1 9,680,59 72,831,52 73,642,49 9,680,593 63,961,900.
Total 100.00% 11.73% 100.00% 13.15%
14.75 3.01 1.74 3.01 .01 00
Accrual bad debt provision on single basis:
In RMB
Closing balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
63
Accrual of bad debt provision on portfolio: 9,680,593.01 Yuan
In RMB
Closing balance
Name
Book balance Bad debt provision Accrual ratio
Bad debt provision of account
82,512,114.75 9,680,593.01 11.73%
receivable
Total 82,512,114.75 9,680,593.01 --
Explanation on portfolio basis:
Accrual of bad debt provision on portfolio
In RMB
Closing balance
Name
Book balance Bad debt provision Accrual ratio
Explanation on portfolio basis:
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit
losses, please refer to the disclosure of other account receivable to disclose related information about bad-debt
provisions:
□Applicable √Not applicable
By account age
In RMB
Account age Closing balance
Within one year (one year included) 75,334,538.46
Including within six months 58,398,347.24
Six months - one year 16,936,191.22
1-2 years 861,611.62
2-3 years 589,691.16
Over three years 5,726,273.51
3-4 years 5,726,273.51
Total 82,512,114.75
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Category Opening balance Closing balance
Accrual Collected or reversal Charge-off
Including important amount of bad debt provision collected or reversal in the period:
In RMB
64
Enterprise Amount collected or reversal Collection way
(3) Account receivables actually charge-off during the reporting period
In RMB
Item Amount charge-off
Including major account receivables charge-off:
In RMB
Amount cause by
Procedure for
Enterprise Nature Amount charge-off Causes related transactions
charge-off
or not (Y/N)
Explanation on account receivable charge-off
(4) Top five account receivables collected by arrears party at ending balance
Enterprise Closing balance Ratio in total account receivable at
period-end
TruNorth World Cargo LLC 7,685,071.04 9.31%
F.C.F Fishery Co., Ltd. 7,658,595.09 9.28%
Hong Kong Luen Thai Seafood 5,290,628.45 6.41%
Japan Daoshui 4,910,922.56 5.95%
Shenzhen SZY Trading Co., Ltd. 4,373,553.02 5.30%
Total 29,918,770.16 36.26%
(5) Account receivables derecognized due to financial assets transfer
(6) Transfer the account receivable and assets & liabilities arising from further involvement
Other explanation:
6. Receivables financing
In RMB
Item Closing balance Opening balance
Change of receivables financing and fair value in the period
□Applicable √Not applicable
If the provision for bad debts of receivable financing is made in accordance with the general model of expected
credit losses, please refer to the disclosure of other account receivable to disclose related information about bad-debt
provisions:
□Applicable √Not applicable
65
Other explanation:
7. Accounts paid in advance
(1) By account age
In RMB
Closing balance Opening balance
Account age
Amount Ratio Amount Ratio
Within one year 12,716,903.75 96.48% 22,072,783.23 98.58%
1-2 years 463,604.06 3.52% 223,289.45 1.00%
2-3 years 93,711.78 0.42%
Total 13,180,507.81 -- 22,389,784.46 --
Explanation on accounts paid in advance with over one year in age and reasons of un-settle:
(2) Top 5 account paid in advance collected by objects at ending balance
Enterprise Closing balance Ratio in total account paid in
advance at period-end
ZUNIBAL S.L 2,053,912.80 15.58%
Dongyi Sea Transportation Personal Company 1,842,233.57 13.98%
China Fisheries Association (access fishing fee) 1,573,833.24 11.94%
BOSHUN LOGISTICS LIMITED 762,719.92 5.79%
Ghana Ministry of Fisheries 659,245.16 5.00%
Total 6,891,944.69 52.29%
Other explanation:
8. Other account receivable
In RMB
Item Closing balance Opening balance
Other account receivable 6,972,749.22 5,529,723.80
Total 6,972,749.22 5,529,723.80
(1) Interest receivable
1) Category
In RMB
Item Closing balance Opening balance
2) Major overdue interest
66
In RMB
Whether has impairment
Borrower Closing balance Overdue time Causes occurred and
determination basis
Other explanation:
3) Accrual of bad debt provision
□Applicable √Not applicable
(2) Dividend receivable
1) Category
In RMB
Item (or invested company) Closing balance Opening balance
2) Major dividend receivable with over one year aged
In RMB
Whether has impairment
Item (or invested Causes of failure for
Closing balance Account age occurred and
company) collection
determination basis
3) Accrual of bad debt provision
□Applicable √Not applicable
Other explanation:
(3) Other account receivable
1) By nature
In RMB
Nature Closing book balance Opening book balance
Export tax rebate receivable 3,595,050.74
Cash deposit 778.97 974,139.13
Insurance claims receivable 77,580.10
Intercourse funds and other 8,368,229.49 9,624,474.75
Total 12,041,639.30 10,598,613.88
2) Accrual of bad debt provision
In RMB
Phase I Phase II Phase III
Expected credit Expected credit losses for Expected credit losses for
Bad debt provision Total
losses over next 12 the entire duration (without the entire duration (with
months credit impairment occurred) credit impairment occurred)
Balance on Jan. 1, 2019 5,068,890.08 5,068,890.08
67
Balance of Jan. 1, 2019
—— —— —— ——
in the period
Balance on Jun. 30, 2019 5,068,890.08 5,068,890.08
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
By account age
In RMB
Account age Closing balance
Within one year (one year included) 6,651,923.72
Including within six months 5,556,260.23
Six months - one year 1,095,663.49
1-2 years 316,704.24
2-3 years 388,212.70
Over three years 4,684,798.64
3-4 years 4,684,798.64
Total 12,041,639.30
3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Category Opening balance Closing balance
Accrual Collected or reversal
Bad debt provision 5,068,890.08 5,068,890.08
Total 5,068,890.08 5,068,890.08
Important amount of bad debt provision switch-back or collection in the period:
In RMB
Enterprise Amount switch-back or collection Collection way
4) Other account receivables actually charge-off during the reporting period
In RMB
Item Amount charge-off
Including major other account receivables charge-off:
In RMB
Amount cause by
Procedure for
Enterprise Other Nature Amount charge-off Causes related transactions
charge-off
or not (Y/N)
Other Explanation on account receivable charge-off
5) Top 5 other account receivable collected by arrears party at ending balance
68
In RMB
Proportion in total
other account Ending balance of
Enterprise Nature Closing balance Account age
receivables at bad debt provision
period-end
Export rebates Export rebates 3,595,050.74 Within six months 29.85%
Intercourse funds
Tai Lulun 809,272.83 Over three years 6.72% 809,272.83
and other
ALEX Employee loans 407,567.07 Within one year 3.38%
Daihatsu Intercourse funds 288,896.39 Over three years 2.40% 288,896.39
DIVING-SEAGULL Intercourse funds 207,072.50 Over three years 1.72% 207,072.50
Total -- 5,307,859.53 -- 44.08% 1,305,241.72
6) Account receivable involved government subsidies
In RMB
Time, amount and basis
Enterprise Government subsidies Closing balance Ending account age
estimated to received
7) Other account receivables derecognized due to financial assets transfer
8) Transfer the other account receivable and assets & liabilities arising from further involvement
Other explanation:
9. Inventories
Whether implemented the new revenue standards
□Yes √No
(1) Category
In RMB
Closing balance Opening balance
Item Provision for Provision for
Book balance Book value Book balance Book value
price fall-down price fall-down
Raw materials 156,114,446.85 156,114,446.85 135,309,542.43 135,309,542.43
Merchandise in
254,348,851.65 2,109,576.54 252,239,275.11 190,905,725.74 2,596,127.95 188,309,597.79
warehouse
Revolving
104,783.81 104,783.81 1,199,427.12 1,199,427.12
materials
Low value
256,113.74 256,113.74 764,872.41 764,872.41
consumables
Goods in transit 5,007,680.25 5,007,680.25
69
Total 410,824,196.05 2,109,576.54 408,714,619.51 333,187,247.95 2,596,127.95 330,591,120.00
Does the Company comply with the disclosure requirement of “Information Disclosure Guidelines of Shenzhen
Stock Exchange No.4 – Listed Companies Engaged in Seed Industry and Planting Business” or not
No
(2) Provision for price fall-down of inventories
In RMB
Current increased Current decreased
Item Opening balance Switch back or Closing balance
Accrual Other Other
charge-off
Merchandise in
2,596,127.95 3,302.88 489,854.29 2,109,576.54
warehouse
Total 2,596,127.95 3,302.88 489,854.29 2,109,576.54
(3) Explanation on capitalization of borrowing costs in ending balance of inventory
(4) Assets completed without settle resulted by construction contract at period-end
In RMB
Item Amount
Other explanation:
10. Contract assets
In RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Book value of contract assets have major changes and causes:
In RMB
Item Amount changes Causes
If the provision for bad debts of contract asset is made in accordance with the general model of expected credit losses,
please refer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
Accrual of impairment provision in the period
In RMB
Reversal/Charge-off in
Item Accrual in the period Switch-back in the period Causes
the period
Other explanation:
70
11. Assets held for sale
In RMB
Closing book Impairment Ending book Expected disposal Expected disposal
Item Fair value
balance provision value expenses time
Other explanation:
12. Non-current asset due within one year
In RMB
Item Closing balance Opening balance
Important creditors’ investment/Other creditors’ investment
In RMB
Closing balance Opening balance
Creditor's rights
Face value Coupon rate Actual rate Due date Face value Coupon rate Actual rate Due date
Other explanation:
13. Other current assets
Whether implemented the new revenue standards
□Yes √No
In RMB
Item Closing balance Opening balance
Input VAT ready for deduction 30,089,780.60 32,221,986.22
Income tax prepaid 88,480.55
Total 30,089,780.60 32,310,466.77
Other explanation:
14. Creditors’ investment
In RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Important creditors’ investment
In RMB
Closing balance Opening balance
Creditor's rights
Face value Coupon rate Actual rate Due date Face value Coupon rate Actual rate Due date
Accrual of impairment provision
71
In RMB
Phase I Phase II Phase III
Expected credit Expected credit losses for Expected credit losses for
Bad debt provision Total
losses over next 12 the entire duration (without the entire duration (with
months credit impairment occurred) credit impairment occurred)
Balance of Jan. 1, 2019
—— —— —— ——
in the period
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
Other explanation:
15. Other creditors’ investment
In RMB
Cumulative
loss
Change of Cumulative impairment
Opening Accrued Closing
Item fair value in Cost changes of recognized in Note
balance interest balance
the period fair value other
comprehensi
ve income
Important other creditors’ investment
In RMB
Other creditors’ Closing balance Opening balance
investment Face value Coupon rate Actual rate Due date Face value Coupon rate Actual rate Due date
Accrual of impairment provision
In RMB
Phase I Phase II Phase III
Expected credit Expected credit losses for Expected credit losses for
Bad debt provision Total
losses over next 12 the entire duration (without the entire duration (with
months credit impairment occurred) credit impairment occurred)
Balance of Jan. 1, 2019
—— —— —— ——
in the period
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
Other explanation:
72
16. Long-term account receivable
(1) Long-term account receivable
In RMB
Closing balance Opening balance
Discount rate
Item Bad debt Bad debt
Book balance Book value Book balance Book value interval
provision provision
Impairment of bad debt provision
In RMB
Phase I Phase II Phase III
Expected credit Expected credit losses for Expected credit losses for
Bad debt provision Total
losses over next 12 the entire duration (without the entire duration (with
months credit impairment occurred) credit impairment occurred)
Balance of Jan. 1, 2019
—— —— —— ——
in the period
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
(2) Long-term account receivable derecognized due to financial assets transfer
(3) Assets and liabilities resulted by long-term account receivable transfer and continues
involvement
Other explanation
17. Long-term equity investments
In RMB
Changes in the period (+,-)
Ending
Other Cash
Opening Investme Accrual Closing balance
The Additiona comprehe dividend
balance nt gains Other of balance of
invested l Capital nsive or profit
(Book recognize equity impairme Other (Book impairme
entity investmen reduction income announce
value) d under change nt value) nt
t adjustmen d to
equity provision provision
t issued
I. Joint venture
II. Associated enterprise
Other explanation
73
18. Other equity instrument investment
In RMB
Item Closing balance Opening balance
Itemized the non-tradable equity instrument investment in the period
In RMB
Causes of those
that designated
Retained earnings measured by fair Cause of retained
transfer from value and with its earnings transfer
Dividend income Cumulative
Item Cumulative gains other variation from other
recognized losses
comprehensive reckoned into comprehensive
income other income
comprehensive
income
Other explanation:
19. Other non-current financial assets
In RMB
Item Closing balance Opening balance
Other explanation:
20. Investment real estate
(1) Measured at cost
√Applicable □Not applicable
In RMB
Item House and building Land use rights Construction in progress Total
I. Original book value
1.Opening balance 47,701,971.19 47,701,971.19
2.Current increased 3,606,607.16 3,606,607.16
(1) Outsourcing
(2) Inventory\fixed
assets\construction in 3,606,607.16 3,606,607.16
process transfer-in
(3) Increased by
combination
74
3.Current decreased
(1) Disposal
(2) Other transfer-out
4.Closing balance 51,308,578.35 51,308,578.35
II. Accumulated
depreciation and
accumulated
amortization
1.Opening balance 16,350,940.24 16,350,940.24
2.Current increased 647,001.60 647,001.60
(1) Accrual or
647,001.60 647,001.60
amortization
3.Current decreased
(1) Disposal
(2) Other transfer-out
4.Closing balance 16,997,941.84 16,997,941.84
III. Impairment provision
1.Opening balance 886,512.06 886,512.06
2.Current increased
(1) Accrual
3. Current decreased
(1) Disposal
(2) Other transfer-out
4.Closing balance 886,512.06 886,512.06
IV. Book value
1.Ending book value 33,424,124.45 33,424,124.45
2.Opening book value 30,464,518.89 30,464,518.89
(2) Measure on fair value
□Applicable √Not applicable
75
(3) Investment real estate without property certificate completed
In RMB
Item Book value Reasons
Investment real estate 33,302,041.96 See the notes
Other explanation
Pursuant to the Debt Compensation Opinion entered into between the Company and Shandong Aquatic Products
Group in April 2006 and the civil verdict issued by People Court of Lixia district of Jinan city (2005 LZZDi-1299),
the comprehensive office building owned by Shandong Aquatic Products Group at No.43, Heping road, Lixia
District, Jinan with original value of RMB54,221,197.05 was ruled to be vested to the Company, so as to
compensate the relevant debts. Building ownership transfer has not been registered yet; management of the
Company is in the process of making active coordination among various parties seeking for early completion of
such registration.
21. Fixed assets
In RMB
Item Closing balance Opening balance
Fixed assets 501,281,203.55 514,332,752.28
Total 501,281,203.55 514,332,752.28
(1) Fixed assets
In RMB
House and Vessel and netting Machine Transportation Furniture and
Item Total
building gear equipment equipment office equipment
I. Original book
value：
1.Opening
117,959,528.18 627,875,972.13 44,678,963.52 7,442,646.99 11,975,650.33 809,932,761.15
balance
2.Current
2,037.66 9,607,042.68 2,108,000.81 1,637,004.13 99,538.91 13,453,624.19
increased
(1)
9,260,338.56 2,107,911.19 1,599,879.60 98,923.07 13,067,052.42
Purchasing
(2)
Construction in
progress
transfer-in
(3) Increased
by combination
76
(4)
Fluctuations in 2,037.66 346,704.12 89.62 37,124.53 615.84 386,571.77
exchange
3.Current
3,741,952.82 13,990.00 285,053.64 4,040,996.46
decreased
(1) Disposal
13,990.00 285,053.64 299,043.64
or scrapping
(2) Transfer to
investment real
3,741,952.82 3,741,952.82
estate and input
tax deduction
4.Closing
114,219,613.02 637,483,014.81 46,772,974.33 9,079,651.12 11,790,135.60 819,345,388.88
balance
II. Accumulative
depreciation
1.Opening
28,860,728.72 233,594,946.75 20,358,817.99 4,224,455.94 8,403,485.97 295,442,435.37
balance
2.Current
1,187,769.86 19,369,193.18 2,007,140.27 506,733.63 184,940.88 23,255,777.82
increased
(1) Accrual 1,187,769.86 19,369,193.18 2,007,140.27 506,733.63 184,940.88 23,255,777.82
3.Current
259,569.36 246,978.36 285,053.64 791,601.36
decreased
(1) Disposal
259,569.36 246,978.36 285,053.64 791,601.36
or scrapping
4.Closing
30,048,498.58 252,964,139.93 22,106,388.90 4,484,211.21 8,303,373.21 317,906,611.83
balance
III. Impairment
provision
1.Opening
157,573.50 157,573.50
balance
2.Current
increased
(1) Accrual
3.Current
decreased
77
(1) Disposal
or scrapping
4.Closing
157,573.50 157,573.50
balance
IV. Book value
1.Ending book
84,171,114.44 384,361,301.38 24,666,585.43 4,595,439.91 3,486,762.39 501,281,203.55
value
2.Opening
89,098,799.46 394,123,451.88 24,320,145.53 3,218,191.05 3,572,164.36 514,332,752.28
book value
(2) Temporary idle fixed assets
In RMB
Accumulated Impairment
Item Original book value Book value Note
depreciation provision
(3) Fixed assets leasing-in by financing lease
In RMB
Accumulated
Item Original book value Impairment provision Book value
depreciation
(4) Fixed assets leasing-out by operational lease
In RMB
Item Ending book value
(5) Fixed assets without property certificate obtained
In RMB
Item Book value Causes
Fixed assets 2,146,918.13 See the notes
Other explanation
Pursuant to the Debt Compensation Opinion entered into between the Company and Shandong Aquatic Products
Group in April 2006 and the civil verdict issued by People Court of Lixia district of Jinan city (2005 LZZDi-1299),
the comprehensive office building owned by Shandong Aquatic Products Group at No.43, Heping road, Lixia
District, Jinan with original value of RMB54,221,197.05 was ruled to be vested to the Company, so as to
compensate the relevant debts. Building ownership transfer has not been registered yet; management of the
Company is in the process of making active coordination among various parties seeking for early completion of
such registration.
78
(6) Disposal of fixed assets
In RMB
Item Closing balance Opening balance
Other explanation
22. Construction in progress
In RMB
Item Closing balance Opening balance
Construction in progress 17,528,453.31 11,073,476.37
Total 17,528,453.31 11,073,476.37
(1) Construction in progress
In RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Atlantic fencing 4,077,658.55 4,077,658.55 4,077,658.55 4,077,658.55
Building the
ultra-low
temperature 17,528,453.31 17,528,453.31 11,073,476.37 11,073,476.37
long-line fishing
boat Tai Xiang 11
Total 21,606,111.86 4,077,658.55 17,528,453.31 15,151,134.92 4,077,658.55 11,073,476.37
(2) Changes of major Construction in progress
In RMB
Accumul
Proporti Includin
ative
on of g:
Transfer Other amount
Item Opening Current Closing project Work interest Capitaliz Capital
Budget to fixed decreasin of
Name balance increased balance investme progress capitaliz ing rate resources
assets g interest
nt in ation in
capitaliz
budget Period
ation
Long-lin
e fishing 16,000,0 11,073,4 6,454,97 17,528,4
100% Other
boat Tai 00.00 76.37 6.94 53.31
Xiang 11
79
16,000,0 11,073,4 6,454,97 17,528,4
Total -- -- --
00.00 76.37 6.94 53.31
(3) Impairment provision of construction in process accrual in the Period
In RMB
Item Accrual in the period Accrual Causes
Other explanation
(4) Engineering material
In RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Other explanation:
23. Productive biological asset
(1) Measured by cost
□Applicable √Not applicable
(2) Measured by fair value
□Applicable √Not applicable
24. Oil and gas asset
□Applicable √Not applicable
25. Right-of-use asset
In RMB
Item Total
Other explanation:
26. Intangible assets
(1) Intangible assets
In RMB
80
Non-patented
Item Land use rights Patent right Computer software Total
technology
I. Original book
value
1.Opening
17,154,729.00 1,751,396.71 18,906,125.71
balance
2.Current
increased
(1)
Purchasing
(2) Internal
R&D
(3) Increased
by combination
3.Current
99,310.34 99,310.34
decreased
(1) Disposal
(2) Input tax
99,310.34 99,310.34
deduction
4.Closing
17,154,729.00 1,652,086.37 18,806,815.37
balance
II. Accumulated
amortization
1.Opening
4,837,642.49 403,106.40 5,240,748.89
balance
2.Current
191,935.08 130,280.81 322,215.89
increased
(1) Accrual 191,935.08 130,280.81 322,215.89
3.Current
decreased
(1) Disposal
4.Closing
5,029,577.57 533,387.21 5,562,964.78
balance
III. Impairment
provision
81
1.Opening
balance
2.Current
increased
(1) Accrual
3.Current
decreased
(1) Disposal
4.Closing
balance
IV. Book value
1.Ending book
12,125,151.43 1,118,699.16 13,243,850.59
value
2.Opening book
12,317,086.51 1,348,290.31 13,665,376.82
value
The proportion of intangible assets form by internal R&D in total book value of intangible assets at period-end.
(2) Land use right without property certificate completed
In RMB
Item Book value Causes
Other explanation:
27. Expense on Research and Development
In RMB
Opening Closing
Item Current increased Current decreased
balance balance
Other explanation
28. Goodwill
(1) Goodwill Original book value
In RMB
The invested
entity of events Opening balance Increase during the period Decrease during this period Closing balance
with goodwill
82
resulted
(2) Goodwill Impairment provision
In RMB
The invested
entity of events
Opening balance Increase during the period Decrease during this period Closing balance
with goodwill
resulted
Relevant information about the assets group or portfolio goodwill included
Instructions for goodwill impairments test process and key parameters (such as the forecast period growth rate,
stable period growth rate, profit rate, discount rate, and forecast period when estimating the present value of the
future cash flow), and the method of confirming the impairment loss of goodwill:
Impact of the goodwill impairment test
Other explanation
29. Long-term prepaid expenses
In RMB
Item Opening balance Current increased Amortized in Period Other decreased Closing balance
Decoration fee 524,811.27 148,462.80 376,348.47
Total 524,811.27 148,462.80 376,348.47
Other explanation
30. Deferred income tax asset /Deferred income tax liabilities
(1) Deferred income tax assets without offset
In RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences asset differences asset
Asset impairment
904,653.01 226,163.26 904,653.01 226,163.26
provision
Assets-related
government subsidy with 6,800,000.00 1,700,000.00 6,800,000.00 1,700,000.00
taxes paid
Total 7,704,653.01 1,926,163.26 7,704,653.01 1,926,163.26
83
(2) Deferred income tax liabilities without offset
In RMB
Closing balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
(3) Amount of deferred income tax asset and deferred income tax liability after trade-off
In RMB
Ending balance of Trade-off between the Opening balance of
Trade-off between the
deferred income tax deferred income tax deferred income tax
Item deferred income tax
assets or liabilities after assets and liabilities at assets or liabilities after
assets and liabilities
off-set period-begin off-set
Deferred income tax
1,926,163.26 1,926,163.26
asset
(4) Deferred income tax asset without recognized
In RMB
Item Closing balance Opening balance
Deductible temporary differences-Bad debt
13,844,830.08 13,844,830.08
provision
Deductible temporary
differences-Provision for price fall-down 2,109,576.54 2,596,127.95
of inventories
Deductible temporary
differences-Impairment provision of 4,077,658.55 4,077,658.55
construction in progress
Deductible loss 2,186,759.26 2,186,759.26
Total 22,218,824.43 22,705,375.84
(5) Deductible losses of deferred income tax asset without confirmed will expired in later
year
In RMB
Year Closing amount Opening amount Note
2021 2,186,759.26 2,186,759.26
Total 2,186,759.26 2,186,759.26 --
Other explanation:
84
31. Other non-current asset
Whether implemented the new revenue standards
□Yes √No
In RMB
Item Closing balance Opening balance
Account for lands paid in advance 2,000,000.00 2,000,000.00
Account paid in advance of cargo ship 6,223,985.00 1,059,416.20
Total 8,223,985.00 3,059,416.20
Other explanation:
32. Short-term loans
(1) Category
In RMB
Item Closing balance Opening balance
Mortgage loan 28,000,000.00 36,000,000.00
Credit loan 62,310,561.49 42,352,320.05
Total 90,310,561.49 78,352,320.05
Explanation on category of short-term loans:
(2) Short-term loans un-paid by expired
Total short-term loans un-paid by expired at end of the Period was 0 Yuan, including important short-term loans
are as:
In RMB
Borrower Closing balance Loans rate Overdue time Overdue interest rate
Other explanation:
33. Trading financial liability
In RMB
Item Closing balance Opening balance
Including:
Including:
Other explanation:
85
34. Derivative financial liability
In RMB
Item Closing balance Opening balance
Other explanation:
35. Notes payable
In RMB
Category Closing balance Opening balance
Totally Yuan due note payable are paid at period-end.
36. Accounts payable
(1) Accounts payable
In RMB
Item Closing balance Opening balance
Within one year (one year included) 111,227,028.97 101,802,514.32
Over one year 4,823,389.84 6,569,085.34
Total 116,050,418.81 108,371,599.66
(2) Major account payable over one year
In RMB
Item Closing balance Reasons of un-paid or carry-over
Other explanation:
37. Accounts received in advance
Whether implemented the new revenue standards
□Yes √No
(1) Accounts received in advance
In RMB
Item Closing balance Opening balance
Within one year (one year included) 35,968,223.55 16,738,922.45
Over one year 406,622.92 822,406.56
Total 36,374,846.47 17,561,329.01
86
(2) Major account received in advance with over one year age
In RMB
Item Closing balance Reasons of un-paid or carry-over
(3) Projects un-completed but settled from construction contract at end of the Period
In RMB
Item Amount
Other explanation:
38. Contract liability
In RMB
Item Closing balance Opening balance
Book value has major changes in the period and causes
In RMB
Item Amount changes Causes
39. Wage payable
(1) Wage payable
In RMB
Increase during the Decrease during this
Item Opening balance Closing balance
period period
I. Short-term
43,969,399.58 58,991,204.04 71,100,746.52 31,859,857.10
compensation
II. Post-employment
welfare- defined 39.60 8,977,343.29 4,379,828.79 4,597,554.10
contribution plans
III. Dismissal welfare 36,077.22 27,562.84 8,514.38
IV. Other welfare due
10,547.56 10,547.56
within one year
Total 44,016,063.96 67,968,547.33 75,508,138.15 36,476,473.14
(2) Short-term compensation
In RMB
Item Opening balance Increase during the Decrease during this Closing balance
87
period period
1. Wages, bonuses, allowances
42,512,492.76 52,264,887.41 64,412,829.81 30,364,550.36
andsubsidies
2. Welfare for workers
2,261,164.04 2,261,164.04
and staff
3. Social insurance 2,437,276.29 2,437,276.29
Including: Medical
1,983,153.67 1,983,153.67
insurance
Work injury
135,131.00 135,131.00
insurance
Maternity
318,991.62 318,991.62
insurance
4. Housing accumulation
1,760,751.11 1,755,261.11 5,490.00
fund
5. Labor union
expenditure and
1,456,906.82 267,125.19 234,215.27 1,489,816.74
personnel education
expense
Total 43,969,399.58 58,991,204.04 71,100,746.52 31,859,857.10
(3) Defined contribution plans
In RMB
Increase during the Decrease during this
Item Opening balance Closing balance
period period
1. Basic endowment
39.60 4,042,512.37 4,042,512.31 39.66
insurance
2. Unemployment
163,194.24 163,194.24
insurance
3. Enterprise annuity 4,597,514.44 4,597,514.44
4. Other 174,122.24 174,122.24
Total 39.60 8,977,343.29 4,379,828.79 4,597,554.10
Other explanation:
40. Taxes payable
In RMB
Item Closing balance Opening balance
VAT 83,164.86 271,436.90
88
Corporate income ax 786,626.41 1,461,511.10
Individual income tax 57,234.57 148,253.52
Urban maintenance and construction tax 3,810.60 8,627.10
House property tax 148,780.71 247,500.87
Land use tax 133,862.44 157,965.18
Educational additional 2,721.87 3,697.33
Other tax 690,591.81 542,402.90
Total 1,906,793.27 2,841,394.90
Other explanation:
41. Other accounts payable
In RMB
Item Closing balance Opening balance
Interest payable 559,642.01 245,808.33
Other accounts payable 11,487,560.64 6,797,885.62
Total 12,047,202.65 7,043,693.95
(1) Interest payable
In RMB
Item Closing balance Opening balance
Interest payable for short-term loans 559,642.01 245,808.33
Total 559,642.01 245,808.33
Interest overdue without paid:
In RMB
Borrower Amount overdue Causes
Other explanation:
(2) Dividend payable
In RMB
Item Closing balance Opening balance
Other explanation, including dividend payable unpaid over one year, and explain the reasons:
(3) Other accounts payable
1) By nature
89
In RMB
Item Closing balance Opening balance
Cash deposit 2,855,753.88 338,541.67
Employee cost 1,325,632.62 926,783.09
Other 7,306,174.14 5,532,560.86
Total 11,487,560.64 6,797,885.62
2) Significant other payable with over one year age
In RMB
Item Closing balance Reasons of un-paid or carry-over
Other explanation
42. Liability held for sale
In RMB
Item Closing balance Opening balance
Other explanation:
43. Non-current liabilities due within one year
In RMB
Item Closing balance Opening balance
Deferred income due within one year 433,292.74 866,585.48
Total 433,292.74 866,585.48
Other explanation:
44. Other current liabilities
Whether implemented the new revenue standards
□Yes √No
In RMB
Item Closing balance Opening balance
Changes of short-term bonds payable:
In RMB
Amortizat
Interest ion of
Face Issuing Bond Issue Opening Issued in accrual premium Paid in Closing
Bond
value date period amount balance the Period by face price and the Period balance
value conversio
n
90
Other explanation:
45. Long-term loans
(1) Category
In RMB
Item Closing balance Opening balance
Explanation on category of long-term loans:
Other explanation, including interest rate section:
46. Bonds payable
(1) Bonds payable
In RMB
Item Closing balance Opening balance
(2) Changes of bond payable (excluding other financial instrument of preferred stock and
perpetual capital securities that classified as financial liability)
In RMB
(3) Condition of convertible bonds and time of transferring
(4) Other financial instrument classified as financial liabilities
Outstanding preferred stock and perpetual capital securities at period-end
Changes of the outstanding preferred stock and perpetual capital securities at period-end
In RMB
Outstanding Period-begin Increase during the period Decrease during this period Period-end
financial
Amount Book value Amount Book value Amount Book value Amount Book value
instrument
Explanations on basis of other financial instrument classified into financial liabilities
Other explanation
47. Lease liability
In RMB
Item Closing balance Opening balance
Other explanation
91
48. Long-term account payable
In RMB
Item Closing balance Opening balance
(1) By nature
In RMB
Item Closing balance Opening balance
Other explanation:
(2) Special payable
In RMB
Increase during the Decrease during this
Item Opening balance Closing balance Causes
period period
Other explanation:
49. Long-term wages payable
(1) Long-term wages payable
In RMB
Item Closing balance Opening balance
I. Post-employment welfare- net liability of
482,769.43 482,769.43
defined contribution plans
IV. Other long-term wages payable 1,030,790.91 1,030,790.91
Total 1,513,560.34 1,513,560.34
(2) Change of defined benefit plan
Present value of the obligation of defined benefit plan:
In RMB
Item Current Period Last Period
Scheme assets:
In RMB
Item Current Period Last Period
Net liability(assets) of the defined benefit plan
In RMB
Item Current Period Last Period
92
Contents of defined benefit plan and the risks associate thereof, influences upon the Company’s future cash flow,
timing and uncertainty:
The material actuary assumption and sensitive analysis relating to defined benefit plan is explained as follows:
Other explanation:
50. Accrual liability
Whether implemented the new revenue standards
□Yes √No
In RMB
Item Closing balance Opening balance Causes
Other explanation, including relevant important hypothesis and estimation:
51. Deferred income
In RMB
Increase during the Decrease during this
Item Opening balance Closing balance Causes
period period
Government
Government subsidy 8,839,283.66 1,000,000.00 9,839,283.66 subsidies related to
assets
Total 8,839,283.66 1,000,000.00 9,839,283.66 --
Item with government subsidy concerned:
In RMB
Amount Amount
Subsidy Assets-relate
reckoned into reckoned into Cost
Opening increase Other Closing d/
Liability non-operatio non-operatio reduction in
balance during this changes balance Income-relate
n revenue in n revenue in the period
period d
the Period the period
Construction Assets-relate
8,191,363.02 1,000,000.00 9,191,363.02
special fund d
Financial
Assets-relate
ship-building 647,920.64 647,920.64
d
discount
Other explanation:
52. Other non-current liabilities
Whether implemented the new revenue standards
□Yes √No
In RMB
93
Item Closing balance Opening balance
Other explanation:
53. Share capital
In RMB
Changes in the Period (+,-)
Opening Shares transfer Closing
Issuing new
balance Bonus shares from public Other Subtotal balance
shares
reserves
Total shares 266,071,320.00 266,071,320.00
Other explanation:
54. Other equity instrument
(1) Other financial instrument of outstanding preferred stock and perpetual capital
securities at period-end
(2) Changes of financial instrument of outstanding preferred stock and perpetual capital
securities at period-end
In RMB
Outstanding Period-begin Increase during the period Decrease during this period Period-end
financial
Amount Book value Amount Book value Amount Book value Amount Book value
instrument
Changes of other equity instrument, explanation on changes and basis of relevant accounting treatment:
Other explanation:
55. Capital reserve
In RMB
Increase during the Decrease during this
Item Opening balance Closing balance
period period
Capital premium (equity
189,093,492.79 189,093,492.79
premium)
Other capital reserve 94,961,504.96 94,961,504.96
Total 284,054,997.75 284,054,997.75
Other explanation, including changes and reasons of changes:
94
56. Treasury stock
In RMB
Increase during the Decrease during this
Item Opening balance Closing balance
period period
Other explanation, including changes and reasons for changes:
57. Other comprehensive income
In RMB
Current Period
Less:
Less: written written in
in other other
comprehensi comprehe
ve income in nsive
Account
previous income in Belong to Belong to
Opening before Closing
Item period and previous Less : income parent minority
balance income tax balance
carried period and tax expense company shareholders
in the after tax after tax
forward to carried
period
gains and forward to
losses in retained
current earnings in
period current
period
II. Other comprehensive income
-711,649
items which will be reclassified -675,743.05 -44,875.62 -35,906.51 -8,969.11
.56
subsequently to profit or loss
Differences of conversion
-711,649
of foreign currency financial -675,743.05 -44,875.62 -35,906.51 -8,969.11
.56
statements
-711,649
Total other comprehensive income -675,743.05 -44,875.62 -35,906.51 -8,969.11
.56
Other explanation, including the active part of the hedging gains/losses of cash flow transfer to initial
reorganization adjustment for the arbitraged items:
58. Reasonable reserve
In RMB
Increase during the Decrease during this
Item Opening balance Closing balance
period period
Other explanation, including changes and reasons for changes:
95
59. Surplus reserve
In RMB
Increase during the Decrease during this
Item Opening balance Closing balance
period period
Statutory surplus
21,908,064.19 21,908,064.19
reserves
Total 21,908,064.19 21,908,064.19
Other explanation, including changes and reasons for changes:
60. Retained profit
In RMB
Item Current period Last period
Retained profits at the end of last year before
232,148,801.35 141,867,217.06
adjustment
Retained profits at the beginning of the period
232,148,801.35 141,867,217.06
after adjustment
Add: net profit attributable to owners of parent
28,420,094.20 90,281,584.29
company
Retained profit at period-end 260,568,895.55 232,148,801.35
Details about adjusting the retained profits at the beginning of the period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations
affect the retained profits at the beginning of the period amounting to 0 Yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0
Yuan.
3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 0
Yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period
amounting to 0 Yuan.
5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 Yuan
61. Operating income and cost
In RMB
Current Period Last Period
Item
Income Cost Income Cost
Main operating 511,543,286.14 437,069,263.62 437,116,744.01 373,729,371.53
Other operating 3,925,373.00 797,783.51 3,206,032.96 768,677.02
96
Total 515,468,659.14 437,867,047.13 440,322,776.97 374,498,048.55
Whether implemented the new revenue standards
□Yes √No
Other explanation
62. Tax and surcharges
In RMB
Item Current Period Last Period
Urban maintenance and construction tax 231,486.42 139,594.98
Educational surtax 99,208.47 61,569.29
House property tax 635,618.75 607,009.39
Land use tax 267,724.88 218,430.35
Vehicle and vessel tax 25,967.68 27,829.36
Stamp tax 142,593.66 231,386.95
Local education surcharge 66,138.99 38,141.42
Local water conservancy construction fund 16,534.75 9,542.49
Total 1,485,273.60 1,333,504.23
Other explanation:
63. Sales expenses
In RMB
Item Current Period Last Period
Payroll payable 1,132,222.24 852,719.42
Port surcharge 2,817,934.66 2,928,162.72
Freight and miscellaneous charges 5,754,382.37 8,957,747.30
Agency fee 1,312,910.64 255,376.76
Travelling charge 288,835.76 153,803.20
Business publicity expenses 345,900.76 105,953.82
Terminal charges 6,571.71
Other 337,627.78 1,589,461.18
Total 11,996,385.92 14,843,224.40
Other explanation:
64. Administrative expenses
In RMB
97
Item Current Period Last Period
Payroll payable 18,665,326.51 11,111,601.32
Depreciation 621,554.93 2,405,402.31
Travelling charge 1,078,933.34 1,309,331.01
Business entertainment expenses 582,445.48 556,056.12
Vehicles charge 559,567.32 265,734.24
Office allowance 267,236.85 204,880.72
Property water and electricity 547,474.71 476,256.21
Amortization of intangible assets 321,764.63 276,317.60
Intermediary service fee 1,380,153.61 1,236,913.74
Other 5,174,758.09 5,203,126.39
Total 29,199,215.47 23,045,619.66
Other explanation:
65. R&D expenses
In RMB
Item Current Period Last Period
Other explanation:
66. Financial expenses
In RMB
Item Current Period Last Period
Interest costs 2,382,040.26 3,082,690.15
Less: interest income 541,927.87 174,711.83
Exchange loss 608,195.72 312,092.65
Handing expense 635,318.65 403,277.17
Other expense 69,039.82 66,640.42
Total 3,152,666.58 3,689,988.56
Other explanation:
67. Other income
In RMB
Sources Current Period Last Period
Financial ship-building discount 14,188.00 14,188.00
98
Government subsidy 419,104.74 419,104.74
Total 433,292.74 433,292.74
68. Investment income
In RMB
Item Current Period Last Period
Other explanation:
69. Net exposure hedge gains
In RMB
Item Current Period Last Period
Other explanation:
70. Income from change of fair value
In RMB
Sources Current Period Last Period
Other explanation:
71. Credit impairment loss
In RMB
Item Current Period Last Period
Other explanation:
72. Assets impairment loss
Whether implemented the new revenue standards
□Yes √No
In RMB
Item Current Period Last Period
I. Bad debt losses 153,441.46
II. Provision for falling price of inventory -3,302.88 -2,053.90
Total -3,302.88 151,387.56
Other explanation:
99
73. Income from assets disposal
In RMB
Sources Current Period Last Period
Gains/losses of fixed assets disposal -1,399.00 -18,990.79
Total -1,399.00 -18,990.79
74. Non-operating income
In RMB
Amount reckoned in current
Item Current Period Last Period
non-recurring gains/losses
Government subsidy reckoned into current gains/losses:
In RMB
Subsidy
impact The special Assets-relate
Issuing Offering Amount in Amount in
Item Nature current subsidy d/income-rela
subject causes the Period last period
gains/losses (Y/N) ted
(Y/N)
Other explanation:
75. Non-operating expenses
In RMB
Amount reckoned in current
Item Current Period Last Period
non-recurring gains/losses
Loss of non-current assets
3,772.45
scrape
Other expense 24,200.00 423,335.93
Total 24,200.00 427,108.38
Other explanation:
76. Income tax expenses
(1) Statement of income tax expense
In RMB
Item Current Period Last Period
Current income tax expense 662,058.68 1,922,681.98
Total 662,058.68 1,922,681.98
100
(2) Adjustment on accounting profit and income tax expenses
In RMB
Item Current Period
Total profit 32,172,461.30
Income tax based on statutory/applicable rate 8,043,115.33
Impact on different tax rate applicable for subsidiary -7,381,056.65
Income tax expense 662,058.68
Other explanation
77. Other comprehensive income
See Note 57.
78. Items of cash flow statement
(1) Other cash received in relation to operation activities
In RMB
Item Current Period Last Period
Government subsidy and other
1,000,000.00
non-operating income
Cash deposit for L/C 360,798.05
Intercourse funds and other 21,901,142.01 24,176,956.47
Total 23,261,940.06 24,176,956.47
Explanation on other cash received in relation to operation activities:
(2) Other cash paid in relation to operation activities
In RMB
Item Current Period Last Period
Expenses of management cash paid 19,099,534.64 3,704,943.53
Sales expenses paid in cash 2,354,341.12 8,960,979.71
Cash deposit for L/C 4,655,500.00
Intercourse funds and other 47,194,774.58 51,720,751.32
Total 73,304,150.34 64,386,674.56
Explanation on other cash paid in relation to operation activities:
101
(3) Cash received from other investment activities
In RMB
Item Current Period Last Period
Explanation on cash received from other investment activities
(4) Cash paid related with investment activities
In RMB
Item Current Period Last Period
Explanation on Cash paid related with investment activities:
(5) Other cash received in relation to financing activities
In RMB
Item Current Period Last Period
Explanation on other cash received in relation to financing activities:
(6) Other cash paid related with financing activities
In RMB
Item Current Period Last Period
Explanation on other cash paid related with financing activities:
79. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
Supplementary information This Period Last Period
1. Net profit adjusted to cash flow of
-- --
operation activities:
Net profit 31,510,402.62 21,128,290.72
Add: Asset impairment provision 3,302.88 -151,602.06
Depreciation of fixed assets, consumption of
oil assets and depreciation of productive 23,902,779.42 18,855,673.47
biology assets
Amortization of intangible assets 322,215.89 276,768.86
Amortization of long-term retained expense 148,462.80 106,796.10
Loss from disposal of fixed assets, intangible 1,399.00 18,990.79
102
assets and other long-term assets(gain is
listed with “-”)
Financial expenses (gain is listed with “-”) 2,382,040.26 3,689,988.56
Decrease of deferred income tax assets
-1,700,000.00
(increase is listed with “-”)
Decrease of inventory (increase is listed with
-78,123,499.51 -60,067,293.20
“-”)
Decrease of operating receivable accounts
-7,409,603.52 8,879,176.83
(increase is listed with “-”)
Increase of operating payable accounts
23,021,652.86 30,777,822.24
(decrease is listed with “-”)
Net cash flow arising from operating
-4,240,847.30 21,814,612.31
activities
2. Material investment and financing not
-- --
involved in cash flow
3. Net change of cash and cash equivalents: -- --
Balance of cash at period end 171,819,949.08 150,574,179.21
Less: Balance of cash equivalent at
182,767,125.48 147,067,351.82
year-begin
Net increasing of cash and cash equivalents -10,947,176.40 3,506,827.39
(2) Net cash paid for obtaining subsidiary in the Period
In RMB
Amount
Including: --
Including: --
Including: --
Other explanation:
(3) Net cash received by disposing subsidiary in the Period
In RMB
Amount
Including: --
Including: --
Including: --
Other explanation:
103
(4) Constitution of cash and cash equivalent
In RMB
Item Closing balance Opening balance
I. Cash 171,819,949.08 182,767,125.48
Including: Cash on hand 664,425.27 1,213,325.43
Bank deposit available for payment
171,155,523.81 181,553,800.05
at any time
III. Balance of cash and cash equivalent at
171,819,949.08 182,767,125.48
period-end
Other explanation:
80. Notes of changes of owners’ equity
Explain the name and adjusted amount in “Other” at end of last period:
81. Assets with ownership or use right restricted
In RMB
Item Ending book value Restriction reasons
Monetary fund 685,948.08 Cash deposit for L/C
Fixed assets 67,038,146.78 Loan mortgage
Intangible assets 12,125,151.43 Loan mortgage
Total 79,849,246.29 --
Other explanation:
82. Item of foreign currency
(1) Item of foreign currency
In RMB
Closing balance of foreign
Item Rate of conversion Ending RMB balance converted
currency
Monetary fund -- -- 111,713,178.33
Including: USD 14,468,351.51 6.8747 99,465,576.13
EUR 533,504.47 7.8170 4,170,404.44
HKD
JPY 48,046,291.00 0.063816 3,066,122.11
XOF 424,000.00 0.01355 5,745.20
104
CEDI 3,829,047.17 1.3072 5,005,330.46
Account receivable -- -- 68,197,598.97
Including: USD 7,463,606.25 6.8747 51,310,053.89
EUR
HKD
JPY 230,818,982.74 0.063816 14,729,944.20
CEDI 1,650,551.47 1.3072 2,157,600.88
Long-term loans -- --
Including: USD
EUR
HKD
Other explanation:
(2) Explanation on foreign operational entity, including as for the major foreign operational
entity, disclosed main operation place, book-keeping currency and basis for selection; if the
book-keeping currency changed, explain reasons
√Applicable □Not applicable
Book-keeping
Major foreign operation entity Foreign main operation place Basis
currency
HABITAT INTERNATIONAL Panama CNY The economic
CORPORATION environment in the
operation sites
LAIF FISHERIES COMPANY Ghana USD The economic
LIMITED environment in the
operation sites
YAW ADDO FISHERIES COMPANY Ghana USD The economic
LIMITED environment in the
operation sites
ZHONG GHA FOODS COMPANY Ghana USD The economic
LIMITED environment in the
operation sites
AFRICA STAR FISHERIES LIMITED Ghana USD The economic
environment in the
operation sites
83. Hedging
Disclosed hedging items and relevant hedging instrument based on hedging’s category, disclosed qualitative and
105
quantitative information for the arbitrage risks:
84. Government subsidy
(1) Government subsidy
In RMB
Amount reckoned into current
Category Amount Item presented
gain/loss
Special funds for cold chain
1,000,000.00 Deferred income 0.00
logistic
(2) Government subsidy refund
□Applicable √Not applicable
Other explanation:
85. Other
VIII. Changes of consolidation scope
IX. Equity in Other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Main operation Share-holding ratio
Subsidiary Registered place Business nature Acquired way
place Directly Indirectly
Shandong
Zhonglu Fishery Qingdao Qingdao Refrigerated
100.00% Investment
Shipping Co., Shandong Shandong transport
Ltd.
Shandong
Zhonglu Oceanic
Yantai Shandong Yantai Shandong Food processing 100.00% Investment
(Yantai) Foods
Co., Ltd.
Shandong
Zhonglu Haiyan Qingdao Qingdao
Pelagic fishing 59.05% Investment
Deep-sea Fishery Shandong Shandong
Co., Ltd
HABITAT Panama Panama Refrigerated 100.00% Investment
106
INTERNATION transport
AL
CORPORATION
LAIF
FISHERIES
Ghana Ghana Pelagic fishing 100.00% Investment
COMPANY
LIMITED
AFRICA STAR
FISHERIES Ghana Ghana Pelagic fishing 100.00% Investment
LIMITED
ZHONG GHA
FOODS
Ghana Ghana Pelagic fishing 100.00% Investment
COMPANY
LIMITED
Shandong
Zhonglu Ocean Refrigeration
Yantai Shandong Yantai Shandong 100.00% Investment
Refrigerated Co., service
Ltd.
YAW ADDO
Ghana Ghana Pelagic fishing 经营租赁
FISHERIES
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
Basis for controlling the invested entity with half or below voting rights held and without controlling invested
entity but with over half and over voting rights:
Controlling basis for the structuring entity included in consolidated range:
Basis on determining to be an agent or consignor:
Other explanation:
(2) Important non-wholly-owned subsidiary
In RMB
Dividend announced to
Share-holding ratio of Gains/losses attributable Ending equity of
Subsidiary distribute for minority in
minority to minority in the Period minority
the Period
Shandong Zhonglu
Haiyan Deep-sea Fishery 40.95% 3,090,308.42 143,455,144.18
Co., Ltd
Explanation on share-holding ratio of minority different from ratio of voting right:
Other explanation:
107
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
Closing balance Opening balance
Subsidia Non-curr Non-curr Non-curr Non-curr
Current Total Current Total Current Total Current Total
ry ent ent ent ent
assets assets liability liabilities assets assets liability liabilities
assets liability assets liability
Shandon
g
Zhonglu
232,848, 248,021, 480,870, 129,926, 647,920. 130,574, 205,643, 246,339, 451,983, 108,563, 647,920. 109,211,
Haiyan
908.48 521.28 429.76 380.56 64 301.20 783.93 332.14 116.07 704.98 64 625.62
Deep-sea
Fishery
Co., Ltd
In RMB
Current Period Last Period
Cash flow Cash flow
Total Total
Subsidiary Operation from Operation from
Net profit comprehensi Net profit comprehensi
Income operation Income operation
ve income ve income
activity activity
Shandong
Zhonglu
Haiyan 101,916,145. 13,225,049.3 73,754,521.8
7,546,540.71 7,524,638.11 -3,598,555.54 -3,622,493.79 -2,244,328.09
Deep-sea 57 8 2
Fishery Co.,
Ltd
Other explanation:
(4) Use of the corporate funds and major limitation of debt liquidation of the group
(5) Financial supporting or other supports offer to the structured body, which included in
consolidation statement scope
Other explanation:
2. Equity in structured entities not included in the consolidated financial statements
Note of structured entities not included in the consolidated financial statements:
108
3. Other
X. Risksrelated to financial instruments
The financial assets of the Company include accounts receivable and other receivables. The financial liabilities of
the Company include accounts payable, other account payable and short-term loans. For details of each financial
instrument, please refer to the relevant items in Note 5. The Company is faced with the risks of various financial
instruments in its daily activities, mainly including credit risk, liquidity risk and market risk. The board of directors
is responsible for establishing and supervising the risk management structure of the Company and developing and
monitoring the Company's risk management policies.
Risk management objectives and policies: the Company's goal of risk management is to strike a proper balance
between risks and profits, minimize the negative impacts of the risks on the Company's operating results and
maximize the benefits of shareholders and other equity investors.
1. Credit risk
Ifthe customer or the other party involving in the financial instruments cannot fulfill the obligations under the
contract and cause financial losses to the Company, that is credit risk. Credit risk is mainly from the customer
receivables. The book value of account receivables and notes receivable and other receivables is the maximum credit
risk of the Company for financial assets.
2. Liquidity risk
Liquidity risk is the risk of the shortage of funds when the Company is fulfilling its obligations related to financial
liabilities. In the case of normal and tense funds, the Company needs to ensure that there is sufficient liquidity to
meet its due debts and negotiate with financial institutions for financing so as to maintain a certain level of reserve
credit line to reduce the liquidity risk.
3. Market risk
(1) Foreign exchange risk
Foreign exchange risk refers to the risk that the fair value of financial instruments or the future cash flows fluctuate
due to changes in foreign exchange rates. The foreign exchange risk faced by the Company mainly comes from the
financial assets valued in US dollars, and the amount of foreign currency financial assets converted into RMB is
listed as described in VII. 79 foreign currency monetary items.
(2) Interest rate risk
Interest rate risk refers to the risk that the fair value of financial instruments or future cash flows fluctuate due to
changes in market interest rates. The interest rate risk faced by the Company mainly comes from the long-term bank
loans, the Company’s loans are floating interest rate, and there is risk of RMB benchmark interest rate change.
XI. Related party and related transactions
1. Parent company of the enterprise
Share-holding ratio
Voting right ratio on
Parent company Registered place Business nature Registered capital on the enterprise for
the enterprise
parent company
Shandong Investment and
State-owned Assets Jinan Shandong management, 4500 million Yuan 47.25% 47.25%
Investment Holding management and
109
Company Limited operation of assets,
managed operations,
investment advisory
Explanation on parent company of the enterprise
Ultimate controller of the Company is Shandong State-owned Assets Investment Holdings Co., Ltd.
Other explanation:
2. Subsidiary of the Enterprise
Found more in Note IX.” Equity in subsidiary”
3. Joint ventures and associated enterprise of the Company
Found more in Note.
Other joint venture and associated enterprise that have related transaction with the Company in the Period or
occurred in previous period
Joint venture and associated enterprise Relationship with the Company
Other explanation
4. Other related party
Other related party Relationship with the Enterprise
Inspur General Software Co., Ltd. Control by same parent company
Other explanation
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
Whether over the
Trading limit
Related party Content Current Period approved limited or Last Period
approved
not
Goods sold/labor service providing
In RMB
Related party Content Current Period Last Period
Explanation on goods purchasing, labor service providing and receiving
110
(2) Related trusteeship management/contracts and entrusted management/outsourcing
Statement of trusteeship management/contract:
In RMB
Managed
Managed
earnings
Client/Contract-o Entrusting Trustee/assets earnings /pricing
Trustee /start Trustee /ends confirmed in the
ut party party/Contractor contract of the contract
period / contract
earnings
earnings
Related managed/contract:
Entrusted management/outsourcing:
In RMB
Entrusted
Trustee fee / earnings
Client/Contract-o Entrusting Entrust /assets
Entrust /start Entrust /ends pricing of the confirmed in the
ut party party/Contractor outsourcing
outsourcing period /
outsourcing costs
Related management/ outsourcing:
(3) Related lease
As a lessor for the Company:
In RMB
Lease income in recognized in Lease income in recognized last
Lessee Assets type
the Period the Period
As a lessee for the Company:
In RMB
Lease income in recognized in Lease income in recognized last
Lessor Assets type
the Period the Period
Explanation on related lease
(4) Related guarantee
As the guarantor
In RMB
Secured party Amount guarantee Start End Completed or not (Y/N)
As the secured party
In RMB
Guarantor Amount guarantee Start End Completed or not (Y/N)
Explanation on related guarantee
111
(5) Related party’s fund loan
In RMB
Related party Fund loan Start End Note
Borrowing
Lending
(6) Related party’s assets transfer and debt reorganization
In RMB
Related party Content Current Period Last Period
(7) Remuneration of key manager
In RMB
Item Current Period Last Period
Total 596,225.56 563,426.00
(8) Other related transactions
6. Receivable/payable items of related parties
(1) Receivable item
In RMB
Closing balance Opening balance
Item Name Related party
Book balance Bad debt provision Book balance Bad debt provision
(2) Payable item
In RMB
Item Name Related party Closing book balance Opening book balance
Inspur General Software Co.,
Other accounts payable 0.00 16,024.00
Ltd.
112
7. Commitments of related party
8. Other
XII. Share-based payment
1. Share-based payment
□Applicable √Not applicable
2. Share-based payment settled by equity
□Applicable √Not applicable
3. Share-based payment settled by cash
□Applicable √Not applicable
4. Amendment and termination of the share-based payment
5. Other
XIII. Commitment or contingency
1. Important commitment
Important commitment on balance sheet date
No commitments that need to released ended as the reporting period
2. Contingency
(1) Contingency on balance sheet date
(2) If the Company has no contingency need to disclosed, explain reasons
The Company has no important contingency that need to disclosed
3. Other
XIV. Event occurring after balance sheet date
1. Important non-adjusting events
In RMB
113
Impact on financial status and Reasons of unable to estimated
Item Content
operation results the impact
2. Profit distribution
In RMB
3. Sales return
4. Other explanation on events after balance sheet date
No events after balance sheet date need to released up to reporting period
XV. Other important event
1. Error correction for previous period
(1) Retrospective restatement
In RMB
Item with impact in statement
Correction content Treatment procedure Cumulative impact
in every comparative period
(2) Prospective application
Correction content Approval procedure Cause of prospective application adoption
2. Debt reorganization
3. Assets replacement
(1) Exchange of non-monetary assets
(2) Other assets replacement
4. Pension plan
In order to guarantee and improve the post-retirement treatment level of employees, mobilize the
enthusiasm of employees, establish a long-term incentive mechanism for talents, enhance the
cohesiveness, and promote the healthy and sustainable development, in accordance with the Labor
Law of the People's Republic of China (Presidential Decree of the People's Republic of China No.
28), Enterprise Annuity Measures (Human Resources and Social Security Department Decree No.
36) and other laws, regulations and policies, Shandong Zhonglu Oceanic Fisheries Co., Ltd.
114
decided to establish the enterprise annuity system under the framework of the Enterprise Annuity
Scheme of Shandong Province State-owned Assets Investment Holdings Co., Ltd., and the
enterprise annuity system has been implemented by combining with the actual situation of the
Company.
5. Discontinuing operation
In RMB
Profit of
discontinuing
Income tax operation
Item Revenue Expenses Total profit Net profit
expenses attributable to
owners of parent
company
Other explanation
6. Segment information
(1) Determination basis and accounting policy for segment
Main operation of the Company including pelagic fishing, cold storage processing trade of aquatic
products, vessel leasing and other operations. Segment disclosure are released by the business
nature.
(2) Financial information of the segment
In RMB
Cold storage
processing trade Offset between
Item Pelagic fishing Vessel leasing Other Total
of aquatic segment
products
I. Main operating
193,377,962.74 48,054,106.81 337,020,105.17 364,318.19 -67,273,206.77 511,543,286.14
income
II. Main
151,208,180.27 33,571,136.25 319,330,064.86 233,089.01 -67,273,206.77 437,069,263.62
operating cost
III. Assets
3,302.88 3,302.88
impairment loss
IV. Depreciation
15,081,962.19 4,320,820.35 3,315,860.17 1,654,815.40 24,373,458.11
and amortization
V. Total profit 21,750,448.28 11,475,565.21 7,531,752.11 -8,585,304.30 32,172,461.30
VI. Income tax 229,058.68 433,000.00 662,058.68
115
VII. Net profit 21,750,448.28 11,246,506.53 7,098,752.11 -8,585,304.30 31,510,402.62
VIII. Total assets 782,873,628.91 288,788,841.15 457,817,966.38 164,911,782.56 -414,093,014.32 1,280,299,204.68
IX. Total liability 239,190,424.40 124,676,808.38 242,799,007.10 97,409,553.35 -399,123,360.66 304,952,432.57
(3) If the Company has no segment reporting, or unable to disclosed the total assets and
liabilities of the segment, explain reasons
(4) Other explanation
7. Other important transactions and events shows impact on investor decision-making
8. Other
No other important events need to released except for the above mentioned
XVI. Principle notes of financial statements of parent company
1. Account receivable
(1) Category
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Accrual Accrual Book value
Amount Ratio Amount value Amount Ratio Amount
ratio ratio
Including:
Account receivable
with bad debt 12,420,5 5,737,78 6,682,718 10,378,63 5,737,786 4,640,846.2
100.00% 44.86% 100.00% 55.28%
provision accrual by 04.62 6.29 .33 2.53 .29 4
portfolio
Including:
12,420,5 5,737,78 6,682,718 10,378,63 5,737,786 4,640,846.2
Total 100.00% 44.86% 100.00% 55.28%
04.62 6.29 .33 2.53 .29 4
Accrual bad debt provision on single basis:
In RMB
Closing balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Accrual bad debt provision on portfolio
In RMB
116
Closing balance
Name
Book balance Bad debt provision Accrual ratio
Accrual of bad debt provision
12,420,504.62 5,737,786.29 46.20%
by portfolio
Total 12,420,504.62 5,737,786.29 --
Explanation on portfolio basis:
Accrual bad debt provision on portfolio
In RMB
Closing balance
Name
Book balance Bad debt provision Accrual ratio
Explanation on portfolio basis:
If the provision for bad debts of account receivable is made in accordance with the general model of expected credit
losses, please refer to the disclosure of other account receivable to disclose related information about bad-debt
provisions:
□Applicable √Not applicable
By account age
In RMB
Account age Closing balance
Within one year (one year included) 6,731,486.61
Within six months 5,760,935.23
6 months -12 months 970,551.38
Over three years 5,689,018.01
3-4 years 5,689,018.01
Total 12,420,504.62
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Category Opening balance Closing balance
Accrual Collected or reversal Charge-off
Accrual of bad debt
provision by 5,737,786.29 5,737,786.29
portfolio
Total 5,737,786.29 5,737,786.29
Including important amount of bad debt provision collected or reversal in the period:
In RMB
117
Enterprise Amount collected or reversal Collection way
(3) Account receivables actually charge-off during the reporting period
In RMB
Item Amount charge-off
Including major account receivables charge-off:
In RMB
Amount cause by
Procedure for
Enterprise Nature Amount charge-off Causes related transactions
charge-off
or not (Y/N)
Explanation on account receivable charge-off
(4) Top five account receivables collected by arrears party at ending balance
Enterprise Closing balance Ratio in total Ending balance of bad
account debt provision
receivable at
period-end
Shandong Zhonglu Oceanic (Yantai) Foods Co., 4,888,798.00 39.36%
Ltd.
PANDA 3,600,962.12 28.99% 3,600,962.12
COSMO SEAFOODS COMPANY LTD 872,137.23 7.02% 872,137.23
MARGARET 628,847.44 5.06% 628,847.44
SITC Company 430,625.10 3.47% 430,625.10
Total 10,421,369.89 83.90% 5,532,571.89
(5) Account receivables derecognized due to financial assets transfer
(6) Transfer the account receivable and assets & liabilities arising from further involvement
Other explanation:
2. Other account receivable
In RMB
Item Closing balance Opening balance
Dividend receivable 91,841,262.03 92,964,132.10
Other account receivable 93,005,311.39 81,168,216.04
Total 184,846,573.42 174,132,348.14
118
(1) Interest receivable
1) Category
In RMB
Item Closing balance Opening balance
2) important overdue interest
Whether has impairment
Borrower Closing balance Overdue time Causes occurred and
determination basis
Other explanation:
3) Accrual of bad debt provision
□Applicable √Not applicable
(2) Dividend receivable
1) Category
In RMB
Item (or invested company) Closing balance Opening balance
Shandong Zhonglu Oceanic (Yantai) Foods
5,631,113.11 5,631,113.11
Co., Ltd.
HABITAT INTERNATIONAL
86,210,148.92 87,333,018.99
CORPORATION
Total 91,841,262.03 92,964,132.10
2) Major dividend receivable with over one year aged
In RMB
Whether has impairment
Item (or invested Causes of failure for
Closing balance Account age occurred and
company) collection
determination basis
3) Accrual of bad debt provision
□Applicable √Not applicable
Other explanation:
(3) Other account receivable
1) By nature
In RMB
Nature Closing book balance Opening book balance
Intercourse funds between internal 92,400,488.27 80,308,190.23
Petty cash and other 4,320,689.45 4,575,892.14
119
Total 96,721,177.72 84,884,082.37
2) Accrual of bad debt provision
In RMB
Phase I Phase II Phase III
Expected credit Expected credit losses for Expected credit losses for
Bad debt provision Total
losses over next 12 the entire duration (without the entire duration (with
months credit impairment occurred) credit impairment occurred)
Balance on Jan. 1, 2019 3,715,866.33 3,715,866.33
Balance of Jan. 1, 2019
—— —— —— ——
in the period
Balance on Jun. 30, 2019 3,715,866.33 3,715,866.33
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
By account age
In RMB
Account age Closing balance
Within one year (one year included) 69,876,733.37
Within six months 69,870,839.37
6 months -12 months 5,894.00
1-2 years 1,596,596.06
2-3 years 125,641.66
Over three years 25,122,206.63
3-4 years 25,122,206.63
Total 96,721,177.72
3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Category Opening balance Closing balance
Accrual Collected or reversal
Other Bad debt provision
3,715,866.33 3,715,866.33
of account receivable
Total 3,715,866.33 3,715,866.33
Important amount of bad debt provision switch-back or collection in the period:
In RMB
Enterprise Amount switch-back or collection Collection way
4) Other account receivables actually charge-off during the reporting period
120
In RMB
Item Amount charge-off
Including major other account receivables charge-off:
In RMB
Amount cause by
Procedure for
Enterprise Other Nature Amount charge-off Causes related transactions
charge-off
or not (Y/N)
Other Explanation on account receivable charge-off
5) Top 5 other account receivable collected by arrears party at ending balance
In RMB
Proportion in total
other account Ending balance of
Enterprise Nature Closing balance Account age
receivables at bad debt provision
period-end
LAIF FISHERIES
COMPANY Intercourse funds 21,435,065.97 Within one year 22.16%
LIMITED
AFRICA STAR
FISHERIES Intercourse funds 14,664,847.95 Within one year 15.16%
LIMITED
Shandong Zhonglu
Fishery Shipping Co., Intercourse funds 10,308,200.00 Within one year 10.66%
Ltd.
ZHONG GHA
FOODS COMPANY Intercourse funds 8,343,826.65 Within one year 8.63%
LIMITED
Shandong Zhonglu
Oceanic (Yantai) Intercourse funds 8,000,000.00 Within one year 8.27%
Foods Co., Ltd.
Total -- 62,751,940.57 -- 64.88%
6) Account receivable involved government subsidies
In RMB
Time, amount and basis
Enterprise Government subsidies Closing balance Ending account age
estimated to received
7) Other account receivables derecognized due to financial assets transfer
8) Transfer the other account receivable and assets & liabilities arising from further involvement
Other explanation:
121
3. Long-term equity investments
In RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment for
232,189,455.23 232,189,455.23 232,189,455.23 232,189,455.23
subsidiary
Total 232,189,455.23 232,189,455.23 232,189,455.23 232,189,455.23
(1) Investment for subsidiary
In RMB
Changes in the period (+,-)
Opening Ending balance
The invested Accrual of Closing balance
balance (Book Additional Capital of impairment
entity impairment Other (Book value)
value) investment reduction provision
provision
HABITAT
INTERNATION 12,476,145.60 12,476,145.60
AL CORP.
Shandong
Zhonglu Fishery
22,869,513.38 22,869,513.38
Shipping Co.,
Ltd.
Shandong
Zhonglu
Oceanic 55,448,185.24 55,448,185.24
(Yantai) Food
Co., Ltd.
Shandong
Zhonglu Haiyan 141,395,611.0
141,395,611.01
Deep-sea 1
Fishery Co., Ltd
232,189,455.2
Total 232,189,455.23
3
(2) Investment for associates and joint venture
In RMB
Company Opening Changes in the period (+,-) Closing Ending
122
balance Other Cash balance balance
Investme Accrual
(Book Additiona comprehe dividend (Book of
nt gains Other of
value) l Capital nsive or profit value) impairme
recognize equity impairme Other
investmen reduction income announce nt
d under change nt
t adjustmen d to provision
equity provision
t issued
I. Joint venture
II. Associated enterprise
(3) Other explanation
4. Operating income and cost
In RMB
Current Period Last Period
Item
Income Cost Income Cost
Main operating 88,187,164.39 62,457,990.11 77,834,059.12 60,182,495.95
Other operating 2,331,328.73 797,783.51 2,054,655.24 768,677.02
Total 90,518,493.12 63,255,773.62 79,888,714.36 60,951,172.97
Whether implemented the new revenue standards
□Yes √No
Other explanation:
5. Investment income
In RMB
Item Current Period Last Period
6. Other
XVII. Supplementary Information
1. Current non-recurring gains/losses
√Applicable □Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of
-1,399.00
non-current asset
Governmental subsidy reckoned into current 433,292.74
123
gains/losses (not including the subsidy
enjoyed in quota or ration according to
national standards, which are closely
relevant to enterprise’s business)
Other non-operating income and expenditure
-24,200.00
except for the aforementioned items
Total 407,693.74 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring
profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on
Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explain
reasons
□Applicable √Not applicable
2. REO and earnings per share
Earnings per share
Profits during report period Weighted average ROE Diluted EPS
Basic EPS (RMB/Share)
(RMB/Share)
Net profits attributable to common
3.48% 0.11 0.11
stock stockholders of the Company
Net profits attributable to common
stock stockholders of the Company
3.43% 0.11 0.11
after deducting nonrecurring gains
and losses
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS
(International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting
Principles)
□Applicable √Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both
foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable √Not applicable
124
(3) Explain accounting difference over the accounting rules in and out of China; as for the
difference adjustment for data audited by foreign auditing organ, noted the name of such
foreign organ
4. Other
125
