山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
山东省中鲁远洋渔业股份有限公司
Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Annual Report for Year of 2020
March 2021
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山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Section I. Important Notice, Contents and Interpretation
Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of Shandong Zhonglu Oceanic Fisheries Co., Ltd. (hereinafter
referred to as the Company) hereby confirm that there are no any fictitious
statements, misleading statements, or important omissions carried in this report,
and shall take all responsibilities, individual and/or joint, for the reality,
accuracy and completion of the whole contents.
Lu Lianxing, Principal of the Company, Fu Chuanhai, person in charge of
accounting works and Lei Lixin, person in charge of accounting organ
(accounting principal) hereby confirm that the Financial Report of 2020 Annual
Report is authentic, accurate and complete.
All directors are attended the Board Meeting for report deliberation.
The forward-looking statement set out in the annual report relating to the future
plan of the Company does not constitute the material commitment of the
Company for its investors. Therefore, investors and related stakeholders shall
hold sufficient awareness of the risks and should understand the difference
between plan, expectation and commitment.
Certain risks that may exist in the Company’s business operation and
countermeasures adopted by the Company are disclosed in “IX. Outlook of
future development” in the Section IV. “Discussion and Analysis on Operation”,
which shall be brought to attention of investors.
This report has been prepared in Chinese and English version respectively. In
the event of difference in interpretation between the two versions, Chinese
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山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
report shall prevail.
The Company has no plans of cash dividend distributed, no bonus shares and
has no share converted from capital reserve either
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山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Contents
Section I Important Notice, Contents and Interpretation .............................................................. 2
Section II Company Profile and Main Financial Indexes ............................................................. 6
Section III Summary of Company Business ................................................................................ 11
Section IVDiscussion and Analysis of Operation .......................................................................... 16
Section V Important Events .......................................................................................................... 30
Section VI Changes in shares and particular about shareholders............................................... 40
Section VII Preferred Stock…………………………………………………… ............................45
Section VIII Convertible Bond……………………………………………....................................46
Section IX Particulars about Directors, Supervisors,Senior Executives and Employees.......... 47
Section X Corporate Governance ................................................................................................... 53
Section XI Corporate Bonds ........................................................................................................... 58
Section XII Financial Report .......................................................................................................... 59
Section XIII Documents available for reference ......................................................................... 134
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山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Interpretation
Items Refers to Contents
The Company, Company or ZLYY Refers to Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Shandong State-owned Assets Investment Refers to Shandong State-owned Assets Investment Holding Company Limited
State-owned Assets Supervision and Administration Commission of
SASACP Refers to
Shandong Provincial Government
CSRC Refers to China Securities Regulatory Commission
The report Refers to Annual Report for 2020 compiled by the Company
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山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Section II. Company Profile and Main Financial Indexes
I. Company information
Short form of the stock Zhonglu-B Stock code 200992
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in
山东省中鲁远洋渔业股份有限公司
Chinese)
Short form of the Company
中鲁远洋
(in Chinese)
Foreign name of the Company
Shandong Zhonglu Oceanic Fisheries Company Limited
(if applicable)
Short form of foreign name of
ZLYY
the Company (if applicable)
Legal representative Lu Lianxing
Registrations add. No. 29 Miaoling Rd. Laoshan District, Qingdao, Shandong
Code for registrations add 266061
Offices add. No. 65 Haier Rd., Laoshan District, Qingdao, Shandong
Codes for office add. 266061
Company website http://www.zofco.cn/
Email zl000992@163.com
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Liang Shanglei Li Ying, Tang Yuntao
No. 65 Haier Rd., Laoshan District, No. 65 Haier Rd., Laoshan District,
Contacts add.
Qingdao, Shandong Qingdao, Shandong
Tel. 0532-55717968 0532-55715968
Fax. 0532-55719258 0532-55719258
Email zl000992@163.com zl000992@163.com
III. Information disclosure and preparation place
In China: China Securities Journal; overseas: Hong Kong Commercial
Newspaper appointed for information disclosure
Daily
Website for annual report publish appointed by CSRC http://www.cninfo.com.cn
Preparation place for annual report Office of the Board, Shenzhen Stock Exchange
IV. Registration changes of the Company
Organization code 91370000863043102Y
(1)2000.07.14: business scope of the Company changed from “Offshore, pelagic
fishing; aquaculture, processing and marketing of the aquatic products; commodity
Changes of main business since listing (if import & export business within the approved scope; manufacturing and sales of ice
applicable) machine; manufacturing, installation and maintenance of refrigeration equipment” to
“Offshore, pelagic fishing; aquaculture, processing and marketing of the aquatic
products; commodity import & export business within the approved scope;
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山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
manufacturing and sales of ice machine; manufacturing, installation and maintenance
of refrigeration equipment; cold storage rental” (2) 2000.11.30: business scope of the
Company changed from “Offshore, pelagic fishing; aquaculture, processing and
marketing of the aquatic products; commodity import & export business within the
approved scope; manufacturing and sales of ice machine; manufacturing, installation
and maintenance of refrigeration equipment; cold storage rental” to “Offshore, pelagic
fishing; aquaculture, processing and marketing of the aquatic products; commodity
import & export business within the approved scope; manufacturing and sales of ice
machine; manufacturing, installation and maintenance of refrigeration equipment;
frozen and refrigerated” (3) 2002.05.28: business scope of the Company changed from
“Offshore, pelagic fishing; aquaculture, processing and marketing of the aquatic
products; commodity import & export business within the approved scope;
manufacturing and sales of ice machine; manufacturing, installation and maintenance
of refrigeration equipment; frozen and refrigerated” to “Offshore, pelagic fishing;
aquaculture, processing and marketing of the aquatic products; commodity import &
export business within the approved scope; manufacturing and sales of ice machine;
manufacturing, installation and maintenance of refrigeration equipment; frozen and
refrigerated; loading and moving services” (4) 2006.06.06: business scope of the
Company changed from “Offshore, pelagic fishing; aquaculture, processing and
marketing of the aquatic products; commodity import & export business within the
approved scope; manufacturing and sales of ice machine; manufacturing, installation
and maintenance of refrigeration equipment; frozen and refrigerated; loading and
moving services” to “Offshore, pelagic fishing; processing and marketing of the
aquatic products; commodity import & export business within the approved scope;
manufacturing and sales of ice machine; manufacturing, installation and maintenance
of refrigeration equipment; frozen and refrigerated; loading and moving services” (5)
2007.05.16: business scope of the Company changed from “Offshore, pelagic fishing;
processing and marketing of the aquatic products; commodity import & export
business within the approved scope; manufacturing and sales of ice machine;
manufacturing, installation and maintenance of refrigeration equipment; frozen and
refrigerated; loading and moving services” to “Offshore, pelagic fishing; processing
and marketing of the aquatic products; commodity import & export business within the
approved scope; manufacturing and sales of ice machine; manufacturing, installation
and maintenance of refrigeration equipment; frozen and refrigerated; loading and
moving services; house rental”
In December 2006, 88,000,000 shares of state-owned legal person shares of the
Company held by Shandong Fisheries Enterprise Group Corporation were executed
judicial auction procedures, and the court ruled to transfer the ownership to Shandong
State-owned Assets Investment Holdings Co., Ltd. On June 21, 2007, Shandong
State-owned Assets Investment Holdings Co., Ltd received the "Confirmation of
Transfer Registration" from the Shenzhen Branch of China Securities Depository and
Clearing Co., Ltd., and all relevant transfer procedures were completed. By that time,
Shandong State-owned Assets Investment Holdings Co., Ltd had held 88,000,000
shares of state-owned legal person shares of the Company, accounting for 33.07% of
the company's total share capital. On July 20, 2018, Shandong State-owned Assets
Previous changes for controlling Investment and Lucion Group signed the "Share Transfer Agreement of Shandong
shareholders (if applicable)
Zhonglu Oceanic Fisheries Co., Ltd.", accepted the transfer of 37,731,320 shares of the
company's state-owned legal person shares held by Lucion Group, accounting for
14.18% of the company's total share capital. On November 16, 2018, Shandong
State-owned Assets Investment received the "Securities Transfer Registration
Confirmation" issued by the Shenzhen Branch of China Securities Depository and
Clearing Co., Ltd., and the transfer registration procedures for this share transfer were
completed. As of December 31, 2020, Shandong State-owned Assets Investment holds
125,731,320 shares of the company's state-owned legal person shares, accounting for
47.25% of the company's total share capital, and is the Company's controlling
shareholder.
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山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
V. Other relevant information
CPA engaged by the Company
Name of CPA WUYIGE Certified Public Accountants LLP
Offices add. for CPA 15/F College International Building, No.1 Zhichun Rd., Haidian District, Beijing
Signing Accountants Zhong Benqing, Zhang Lifa
Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not
□Yes √ No
Changes over previous
2020 2019 2018
year
Operating income (RMB) 966,213,019.66 1,128,951,902.68 -14.42% 1,023,348,055.53
Net profit attributable to
shareholders of the listed company 29,537,498.13 82,311,630.23 -64.12% 90,281,584.29
(RMB)
Net profit attributable to
shareholders of the listed company
20,070,745.84 80,410,900.02 -75.04% 88,188,293.14
after deducting non-recurring gains
and losses (RMB)
Net cash flow arising from
113,245,710.65 110,296,542.67 2.67% 69,635,895.65
operating activities (RMB)
Basic earnings per share
0.11 0.31 -64.52% 0.34
(RMB/Share)
Diluted earnings per share
0.11 0.31 -64.52% 0.34
(RMB/Share)
Weighted average ROE 3.30% 9.74% -6.44% 12.06%
Changes over end of
Year-end of 2020 Year-end of 2019 Year-end of 2018
previous year
Total assets (RMB) 1,259,611,234.89 1,288,526,843.80 -2.24% 1,213,282,583.68
Net assets attributable to
shareholder of listed company 903,248,772.52 887,201,969.69 1.81% 803,507,440.24
(RMB)
The lower one of net profit before and after deducting the non-recurring gains/losses in the last three fiscal years is negative, and the
audit report of last year shows that the ability to continue operating is uncertain
□Yes √No
The lower one of net profit before and after deducting the non-recurring gains/losses is negative
□Yes √No
VII. 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
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
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山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
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
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.
VIII. Quarterly main financial index
In RMB
Q1 Q2 Q3 Q4
Operating income 179,711,295.92 195,879,539.75 292,279,893.91 298,342,290.08
Net profit attributable to
8,566,519.65 7,569,200.28 -3,151,630.88 16,553,409.08
shareholders of the listed company
Net profit attributable to
shareholders of the listed company
8,464,845.13 -2,613,195.78 -4,457,174.84 18,676,271.33
after deducting non-recurring gains
and losses
Net cash flow arising from
-19,428,574.39 7,256,786.58 77,131,938.78 48,285,559.68
operating activities
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial
index disclosed in the company’s quarterly report and semi-annual report
□Yes √ No
IX. Items and amounts of extraordinary profit (gains)/loss
√Applicable □Not applicable
In RMB
Item 2020 2019 2018 Note
Gains/losses from the disposal of
non-current asset (including the write-off 10,164,623.19 -144,859.41
that accrued for impairment of assets)
Governmental subsidy reckoned into current
gains/losses (not including the subsidy
enjoyed in quota or ration according to 1,802,247.14 2,704,851.78 3,508,705.48
national standards, which are closely
relevant to enterprise’s business)
Losses/gains from changes of fair values
occurred in holding trading financial assets,
derivative financial assets, trading financial
liabilities and derivative financial liabilities,
and investment income obtaining from the
disposal of trading financial assets, 15,287.67
derivative financial assets, trading financial
liability, derivative financial liability and
other debt investment, excluded effective
hedging business relevant with normal
operations of the Company
Other non-operating income and expenditure
-11,692.73 -22,546.48 -348,549.52
except for the aforementioned items
Less: Impact on income tax 247,241.88 229,456.99 87,540.62
Impact on minority shareholder’s
2,256,471.10 552,118.10 834,464.78
equity (after-tax)
Total 9,466,752.29 1,900,730.21 2,093,291.15 --
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
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山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
□ Applicable √ Not applicable
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, the Company has no such items in the reporting period for the aforesaid
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山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Section III. Summary of Company Business
I. Main businesses of the company in the reporting period
(i) Main business and products the Company engaged in during the reporting period, as well as their uses,
business mode and performance drive
The Company is a comprehensive fishery enterprise integrated with ocean-going fishing, ocean refrigerated
transport, and refrigeration, processing and trading of aquatic products, its main businesses involve all major
aspects of the industry chain.
During the reporting period, the company’s main business didn’t make any change. Ocean fishing has still been
the main line while refrigerated transport and refrigeration processing trade were the two wings, and they
supported each other and promoted each other, the industrial chain was relatively complete.
1. Pelagic fishing
During the reporting period, the Company has owned a total of 23 vessels for ocean-going fishing, including 7
large-scale tuna seiners (units), 14 large ultra-low temperature tuna longliners, and 2 medium-sized trawlers, which
have been respectively working in Indian Ocean and the Atlantic area.① In the long-lining operation, the main
operating area has been in the Indian Ocean, this year, affected by multiple factors such as Japan's economic
downturn and the worldwide epidemic, the sales price of longline fishing goods has shown a downward trend. In
terms of the purse seine fishing, the main operating area was in the Atlantic Ocean. Affected by the epidemic, fish
prices in the international market was gradually decreasing during the period, and the amount of fishing for export
sales decreased; fish prices for domestic sales also decreased due to the impact of the currency devaluation,
resulting in a slight decrease in revenue during the period when the sales volume rose slightly; ③ The ships of
Ghana trawl net project were aging, the output reduced, and the operating income reduced accordingly.
2. Refrigerated transport
During the reporting period, the refrigerated transport ship of the Company is engaged in the international
operation and services, and has access to major ports around the world, suitable for ocean transportation of aquatic
products, meat, poultry, vegetables and fruits, and for the tuna transport business as well. Multiple measures are
taken in order to complete the economic indicators for the whole year: ①Continuously improved the company’s
SMS system work and strengthened the standardized management of enterprises. ②Kept a foothold on the
Asia-Pacific special refrigerated freight market, strive to increase the market share, strictly controlled the cost
accounting, strengthened the ship equipment maintenance, ensured the sailing rate, and maximizing the income.③
Paid close attention to exchange rate trends and settled exchanges in a timely manner to reducing the exchange
rate risks. ④In the face of various unfavorable situations caused by the impact of the epidemic, the company
strengthened epidemic prevention and control measures and work guidance, strengthened ship communication and
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山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
crew conciliation, ensured the personal safety and health on ships and shores, guaranteed safe production, and
promoted high-quality development of enterprises.
3. Refrigeration processing trade
During the reporting period, there were more than 20 main processed varieties, including bigeye tuna, yellowfin
tuna, bluefin tuna, albacore, swordfish, and so on; the product forms included tuna slices, stripping and slicing,
milksweet wine and cheese and so on. The products were mainly exported, accounting for 60-70% of the total
sales, which were mainly sold to Japan, America, Russia, the European Union, South Korea, Israel and other
countries. Among them, Japan accounted for about 40%, Russia about 12%, the European Union about 10%, and
America accounted for about 6% .The Company has got HACCP registration, EU certification, BRC certification,
MSC certification, and SEDEX certification. It has established a multi-integrated sales network integrating
micro-business + e-commerce + supermarkets + sub-warehouses in domestic markets, with sales exceeding 100
million yuan. At present, we have established sub-warehouses in Beijing, Shanghai, Chengdu, Shenzhen,
Changsha and other cities, committed to providing deep-sea, ocean-going, healthy and safe tuna delicacies for
fellow countrymen. The domestic market is expanding year by year, and the sales in coastal cities have been
increasing by more than 10% annually. Affected by the epidemic, domestic and foreign trade markets have shrunk
severely, and product circulation has slowed. Affected by the global outbreak of the epidemic, the situation of the
export-oriented processing trade sector has been severe, and various unfavorable factors caused a large number of
order cancellations, resulting in short-term difficulties in business operations; ② In this period, the business
strategy of “purchasing based on sales” has made initial results in reducing stock; ③The company has continued
to deepen school-enterprise cooperation, continuously innovated in technology and processes, and gradually
introduced new products that meet market demand, changing from raw food to cooked food, such as shredded
tuna and tuna-shabu , canned tuna, tuna sauce, noodle mate, etc., and developed deep-processed tuna products,
such as tuna complex peptides, tuna oil, tuna mask, etc., which have come into the market successively; ④The
company has continued to increase the promotion in domestic markets, and increase the investments in product
research and development, tuna APP promotion, product advertising and product promotion, and actively explore
the domestic markets.
(ii) The development stage and the cyclical characteristics of the industry and the company’s position in industry
1. The development stage of the industry
China’s offshore fishing industry has made great progress through several generations of efforts and more than 30
years of development since 1985. In recent years, with the implementation of the national marine strategy,
offshore fishing has become an important part of the ocean, the number of vessels has been increasing and the
scale of production has been expanding, which not only promoted the international economic and technological
cooperation but also enriched the domestic market supply. The new and old kinetic energy conversion being
implemented and the high-quality development requirements continuously optimized and upgraded the industrial
structure, and the marketization and internationalization have been constantly improving. China’s offshore fishing
industry is in a stage of becoming stronger and stronger. Generally speaking, the “Fourteenth Five-Year Plan” is a
key transition period for the development of China’s offshore fisheries, and it is also an important opportunity
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山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
period for the development of a powerful country in fishing industry.
2. Industry characteristics and the industry position of the company
Offshore fishing production is cyclical, regional and seasonal. Therefore, it is particularly important to catch the
fishing season and timely and rationally dispatch the fisheries. In order to protect resources, various fishery
resource countries and fishery organizations have formulated strict protection measures and fishing-ban policies,
industry standards have been gradually raised, and the requirements to management level, production technology,
self-discipline and performance capacity of companies engaged in offshore fishing have become higher. In the
long run, it is beneficial to the sustainable development of offshore fishing, but in the short term, it will increase
the production costs. Our company develops offshore fisheries very early in China, and we have the front-rank
talent quality, technical strength, management ability, and equipment level. In recent years, the asset scale and
profitability have been increasing steadily.
The company is a comprehensive pelagic fishing enterprise integrating ocean fishing, ocean transportation,
refrigerated processing and trade. After more than 20 years of business development, it has a high degree of
specialization, rich management experience, and long-term development capabilities.① The Company has
preoccupied a certain quota of fishing space and operating area. These rare fishing space and permanent operating
seats provide a basic guarantee for the company's steady production and Operation.②The Company has obtained
the qualification for crew assignments from the Maritime Safety Administration. With the help of its good
reputation in ship management and the advantage of a relatively stable crew of its own senior positions, the
company has tried to expand the crew assignment business and innovate the company's ship management model
under the premise of full research. ③The Company has 20 years of experience in tuna processing and product
research and development. It produces and processes more than 20 tuna species such as bigeye, yellowfin, bluefin,
albacore, etc., which are mainly purchased by the company from others of the same trade. The company
established the China Tuna Trading Center in December 2009, which has formed a distribution center for the
refrigeration, processing and sales of tuna.
II. Major changes in main assets
1. Major changes in main assets
Major assets Note of major changes
Equity assets No major change.
Decreased 44.88 million Yuan over that of previous period, mainly due to the accrual of
Fixed assets
depreciation
Intangible assets No major change.
Increased 3.71 million Yuan over that of previous period, mainly due to the renovation
Construction in progress
project of cold storage.
2. Main overseas assets
√Applicable □Not applicable
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山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Control Ratio of the Whether has
measures to overseas major
Operating Earnings
Content Reasons Assets scale Location ensure the assets in net impairment
mode status
safety of assets of the risks or not
assets Company (Y/N)
HABITAT
Wholly-owne
INTERNATI Ship and
d subsidiary 280,734,659. Independent
ONAL Panama personnel 26,267,380.3 26.35% N
established 32 operation
CORPORATI insurance 7
aboard
ON
A
professional
ZHONG
Wholly-owne management
GHA
d subsidiary Independent team, ship
FOODS 137,521,345. Ghana 12.91% N
established operation and personnel -6,587,817.39
COMPANY 28
aboard insurance
LIMITED
overseas
posting
III. Core competitiveness analysis
The Company is an outgoing comprehensive oceanic fishery enterprise, established in July 1999 with the approval
from People’s Government of Shandong province. We have completed industry chain and we are the leading
enterprise of oceanic fishery for the Shandong Province.
As a comprehensive fishery enterprise, the company's core competitiveness is mainly reflected in the following
aspects:① over the 20-year development, the Company is comprehensive fishery enterprise integrating pelagic
fishing, refrigerated transport, and refrigeration and processing and trading of aquatic products, its main business
involves all key links of industry chain, and the businesses among all operating entities are highly related, possess
the conditions for overall collaborative operation, and provides guarantee for strengthening and extending the
industrial chain strategy; ② as one of the enterprises engaged in deep-sea fishing business at the earliest in China,
the company starts the production and operation early with high starting point, and high-quality talents and assets.
After many years of professional management, the company has accumulated a large number of professional talents
covering all fields of deep-sea fishing. ③the distant fishery, we mainly operates, is the parts of “going out”
strategy and maritime strategy of the country, and also it is the part of Blue Economic Zone Plans in Shandong
Province. The distant fishery still has a development opportunity in way of depth adjustment. The 14 tuna fishing
boats produced in the Indian Ocean, obtained the qualification for fishing in Somalia again through timely
scientific scheduling of fishing grounds, which made a greater contribution to the company’s completion of the
business plan. The Atlantic tuna seine project has been on the right track after three years of exploration and
practice, under the strict protection of the WCPFC in the Central and Western Pacific and the ICCAT organization
in the Atlantic, the company’s tuna seine business can develop steadily.④ Ocean transportation is an important
part of the company’s main business, the existing refrigerated transport fleet is in the leading position in the
county in terms of the number of ships, gross tonnage or profitability. With the country’s earliest and largest
ultra-low temperature cold storage and raw food processing plant, China’s Tuna Trading Center and the
newly-built tuna electronic trading platform system have strengthened the company’s advantages in tuna
processing and trading capabilities, the 30,000-ton ultra-low temperature & variable temperature cold storage and
supporting facilities of Zhonglu Refrigerated Logistics Center has pioneered a number of new technologies and is
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山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
operating well. The Company’s pelagic fishing production area is in the Atlantic Ocean and the Indian Ocean, our
refrigerated transport has reached most of the world’s major ports, and the import and export trade spread all over
the world. With the implementation of the “One Belt and One Road” strategy, countries along the road strengthen
the bilateral mutual trust and have closer cooperation. With a series of development planning issued by the
country and governments at all levels, our company faces new development opportunities. The Company will
make good use of these strategic resources, creating innovative, keeping forge ahead and moving forward, and
participated in the construction of new-aged energy transform actively, accelerate the strategic transformation, and
vigorously implement the industrial chain extension projects to upgrade the influence and competitive power in
deep-sea fishing market in and out of China.
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山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Section IV Discussion and Analysis on Operation
I. Introduction
In 2020, the Company thoroughly studies and implements Xi Jinping’s socialist thoughts with Chinese
characteristics in the new ear, conscientiously implement various decisions and deployments, focus on key points,
make up for shortcomings and strengths the weaknesses, and further develop the industrial development and
upgrading. Working hard to foster new areas of economic growth and promote high-quality development,
comprehensively ensure the works of “6 stability” and “6 securities”. Under the influence of COVID-19, markets
in and out of China are shrinking and the prices are falling. Operation of the Company is under unprecedented
pressure and profits are down.
(i) Review of the company’s operations during the reporting period
1. Pelagic fishing: the company has 23 pelagic fishing vessels, including 7 large tuna purse seine vessels (groups),
14 large ultra-low temperature tuna longline fishing vessels, and 2 medium-sized trawlers operating in the Indian
Ocean and the Atlantic Ocean. During the reporting period, due to factors such as the COVID-19 epidemic, the
extension of the fishing-off season, and ship dock repairs, the overall fishing output had a decrease compared to
the previous year. Affected by the decline in international fish prices, operating income and total profits were also
affected to varying degrees. During the reporting period, the ocean fishing segment achieved operating income of
395.57 million yuan, a decrease of 17.34%; the total profit was 31.11 million yuan, a decrease of 62.00%.
2.Refrigerated transport: the shrinking trend of south pacific tuna refrigerated transportation market due to the
impact of the global economic environment plus the extension of fishing-off season of seining have increased the
impact on the refrigerated transportation industry. Through continuous standardized management, the company
strengthened innovative development models, intensified team building, enhanced corporate development vitality,
strengthened cultural construction, enhanced soft power for corporate development, paid close attention to safe
production and operation, strengthened ship management, improved ship sailing rate, and ensured normal ship
operation. In response to the company's problem of single business, the company has been actively seeking to
introduce other types of ships, obtain the qualifications for crew assignments, and expand the scope of business.
During the reporting period, it realized operating income of 100.72 million yuan, with a year-on-year decrease of
0.61%; and realized total profit of 28.27 million yuan, with a year-on-year decrease of 12.99%.
3.Cold storage processing trade: Under the multiple pressures of tuna domestic and foreign markets such as falling
prices, destocking risks, the company took the management theme of “upgrading the product quality, reducing
stocks, and reducing risks", and fully implemented the "addition, subtraction, multiplication and division" method
to cultivate new growth points, joined forces to destock, built network-wide sales platforms, increased product
return rate, did our best to reduce adverse effects, reduce losses, promote product transformation, from raw food
to cooked food, from single to combination, and from large packaging to small packaging, and took the direction
16
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
of mainly cooked food, and supplemented by raw food to create the "Tuna" APP of Zhonglu Oceanic, establish a
sales system with full network sales and regional direct distribution, lay out the industrialized e-commerce
platform represented by "Tuna Express", and explore new sales models. The company's raw and cooked tuna
products are marketed under the brand name HIGHEST, mainly sold to distributors and catering stores.
Developed a serial products of tuna chili sauce, canned, noodle mate, mask, fish oil and Peptide. The company’s
distributors are scattered, the order quantity is small, the batches are large, the information is scattered, the
delivery cost is high, and it is difficult to achieve the agglomeration effect, so the company has sorted out
customers and channels, and successively established the Beijing branch warehouse, the Chengdu branch
warehouse, the Shenzhen branch warehouse, the Shanghai branch warehouse and Changsha branch warehouse.
The sales model has been shifting to warehouse-style branches, centralized delivery, batch sales, and unified
management. By centering on branch warehouses and spreading to the surrounding areas, the company has
accelerated the supply, improved product quality, met customer supply needs, and formed a complete
point-to-point channel construction, next, we will set up branch warehouses in Wuhan, Daqing and other places so
as to integrate sales, form a joint force, and enhance brand awareness. During the reporting period, it realized
operating income of 552.09 million yuan, with a year-on-year decrease of 17.92%; and realized total profit of
-4.66 million yuan, with a year-on-year decrease of 162.05%.
(ii) General operation
During the reporting period, the Company achieved operating income of 966.21 million Yuan, decreased 14.42%
compared last year’s 1128.95 million Yuan; total profit achieved 40.77 million Yuan, decreased 59.91%
compared last year’s 101.69 million Yuan; net profit attributable to parent company amounted as 29.54 million
Yuan, decreased 64.12%compared last year’s 82.31 million Yuan. Total assets amounted as 1259.61 million Yuan
with 2.24% down compared with the balance at period-begin.
II. Main business analysis
1. Introduction
See “I. Introduction” in “Discussion and Analysis of Business”.
2. Income and cost
(1) Constitute of operating income
In RMB
2020 2019
Increase/decrease
Ratio in operating Ratio in operating y-o-y
Amount Amount
income income
Total operating
966,213,019.66 100% 1,128,951,902.68 100% -14.42%
income
According to industries
Pelagic fishing 395,568,763.49 40.94% 478,523,402.07 42.39% -17.34%
Vessel leasing 100,719,597.20 10.42% 101,340,331.62 8.98% -0.61%
Cold storage 552,094,964.64 57.14% 672,613,037.45 59.58% -17.92%
17
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
processing trade
Other 5,327,771.22 0.55% 5,513,946.97 0.49% -3.38%
Internal transaction
-87,498,076.89 -9.06% -129,038,815.43 -11.43% 32.19%
offset
According to products
Pelagic fishing 395,568,763.49 40.94% 478,523,402.07 42.39% -17.34%
Vessel leasing 100,719,597.20 10.42% 101,340,331.62 8.98% -0.61%
Cold storage
552,094,964.64 57.14% 672,613,037.45 59.58% -17.92%
processing trade
Other 5,327,771.22 0.55% 5,513,946.97 0.49% -3.38%
Internal transaction
-87,498,076.89 -9.06% -129,038,815.43 -11.43% 32.19%
offset
According to region
Japan 250,064,056.94 25.88% 198,601,950.39 17.59% 25.91%
Mainland China 266,985,098.63 27.63% 347,712,087.60 30.80% -23.22%
Taiwan China 108,201,657.59 11.20% 111,626,402.87 9.89% -3.07%
Ghana 190,929,341.39 19.76% 214,190,805.60 18.97% -10.86%
Russia 54,257,999.06 5.62% 109,321,611.00 9.68% -50.37%
Other 183,272,942.94 18.97% 276,537,860.65 24.50% -33.73%
Internal transaction
-87,498,076.89 -9.06% -129,038,815.43 -11.43% 32.19%
offset
(2) About the industries, products, or regions accounting for over 10% of the company’s operating income
or operating profit
√Applicable □Not applicable
In RMB
Increase/decrease Increase/decrease Increase/decrease
Operating income Operating cost Gross profit ratio of operating of operating cost of gross profit
income y-o-y y-o-y ratio y-o-y
According to industries
Pelagic fishing 395,568,763.49 360,814,947.58 8.79% -17.34% -3.81% -12.82%
Vessel leasing 100,719,597.20 67,566,863.59 32.92% -0.61% 6.76% -4.63%
Cold storage
552,094,964.64 535,511,757.57 3.00% -17.92% -15.96% -2.26%
processing trade
According to products
Pelagic fishing 395,568,763.49 360,814,947.58 8.79% -17.34% -3.81% -12.82%
Vessel leasing 100,719,597.20 67,566,863.59 32.92% -0.61% 6.76% -4.63%
Cold storage
552,094,964.64 535,511,757.57 3.00% -17.92% -15.96% -2.26%
processing trade
According to region
Japan 250,064,056.94 238,610,259.10 4.58% 25.91% 26.58% -0.50%
Mainland China 266,985,098.63 247,418,460.49 7.33% -23.22% -13.62% -10.30%
Ghana 190,929,341.39 177,269,596.45 7.15% -10.86% 10.70% -18.09%
Taiwan China 108,201,657.59 74,849,823.49 30.82% -3.07% 3.35% -4.30%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on
latest one year’s scope of period-end
□ Applicable √ Not applicable
(3) Whether income from physical sales larger than income from labors or not
√ Yes □ No
18
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Increase/decrease
Industries Item Unit 2020 2019
y-o-y
Sales volume Ton 38,970 47,515 -17.99%
Pelagic fishing Production Ton 40,099 47,016 -14.71%
Inventory Ton 9,337 8,208 13.76%
Sales volume Ton 14,726 16,946 -13.10%
Cold storage
Production Ton 13,030 18,017 -27.68%
processing trade
Inventory Ton 5,479 7,175 -23.64%
Reasons for y-o-y relevant data with over 30% changes
□ Applicable √ Not applicable
(4) Fulfillment of the company’s signed significant sales contracts up to this reporting period
□ Applicable √ Not applicable
(5) Composition of operation cost
Industry classification
In RMB
2020 2019
Industry
Item Ratio in operation Ratio in operation Y-o-y changes
classification Amount Amount
cost cost
Access fishing
Pelagic fishing 15,522,437.75 4.30% 10,037,813.25 2.68% 54.64%
fee
Pelagic fishing Raw material 72,184,252.64 20.01% 72,206,003.43 19.25% -0.03%
Pelagic fishing Fuels & energy 88,822,368.76 24.62% 109,142,256.09 29.10% -18.62%
Staff
Pelagic fishing 80,970,871.40 22.44% 66,466,419.62 17.72% 21.82%
remuneration
Pelagic fishing Depreciation cost 28,566,670.85 7.92% 22,399,789.47 5.97% 27.53%
Pelagic fishing Other 74,748,346.18 20.72% 94,850,682.77 25.29% -21.19%
Pelagic fishing Total 360,814,947.58 100.00% 375,102,964.63 100.00% -3.81%
Staff
Vessel leasing 27,723,643.26 41.03% 29,457,051.44 46.54% -5.88%
remuneration
Vessel leasing Depreciation cost 9,068,172.36 13.42% 8,775,909.12 13.87% 3.33%
Vessel leasing Material 10,807,480.03 16.00% 8,050,760.28 12.72% 34.24%
Vessel leasing Inspection fee 1,185,800.18 1.76% 1,287,716.75 2.03% -7.91%
Vessel leasing Premium 4,018,632.35 5.95% 3,798,182.23 6.00% 5.80%
Vessel leasing Fuel 4,080,621.97 6.04% 3,240,296.83 5.12% 25.93%
Vessel leasing Repair charge 5,097,541.51 7.54% 4,701,442.89 7.43% 8.43%
Vessel leasing Other 5,584,971.93 8.27% 3,978,229.67 6.29% 40.39%
Vessel leasing Total 67,566,863.59 100.00% 63,289,589.21 100.00% 6.76%
Cold storage Direct raw
460,688,161.41 86.03% 558,989,485.36 87.72% -17.59%
processing trade material
Cold storage
Wrappage 14,612,588.20 2.73% 13,636,998.39 2.14% 7.15%
processing trade
Cold storage
Labor salary 27,898,994.46 5.21% 25,171,095.16 3.95% 10.84%
processing trade
Cold storage
Depreciation 5,917,816.15 1.11% 5,161,667.61 0.81% 14.65%
processing trade
Cold storage
Other 26,394,197.35 4.93% 34,283,668.85 5.38% -23.01%
processing trade
Cold storage Total 535,511,757.57 100.00% 637,242,915.37 100.00% -15.96%
19
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
processing trade
Other Labor charges 87,329.00 4.32% 57,724.00 3.12% 51.29%
Out-of-pocket
Other 8,582.00 0.42% 12,278.00 0.66% -30.10%
expenses
Other Depreciation cost 1,540,077.83 76.17% 1,297,518.66 70.06% 18.69%
Other Electricity 194,541.30 9.62% 178,124.87 9.62% 9.22%
Other Repair charge 41,417.00 2.05% 83,974.41 4.53% -50.68%
Other Heating fee 149,915.29 7.41% 222,489.07 12.01% -32.62%
Other Total 2,021,862.42 100.00% 1,852,109.01 100.00% 9.17%
Internal
-87,498,076.89 -129,038,815.43 32.19%
transaction offset
Note: composition of operation cost for the current year is consistent with the same caliber as the same period last year.
(6) Whether the consolidation scope has changed during the Reporting Period
□ Yes √ No
(7) Major changes or adjustment in business, product or service of the Company in Reporting Period
□ Applicable √ Not applicable
(8) Major sales and main suppliers
Major sales of the Company
Total top five clients in sales (RMB) 362,901,186.67
Proportion in total annual sales volume for top five clients 37.56%
Ratio of related parties in annual total sales among the top
0.00%
five clients
Information of top five clients of the Company
Serial Name Sales (RMB) Proportion in total annual sales
1 F.C.F Fishery Co., Ltd. 100,719,597.20 10.42%
2 DOHSUI CO.,LTD. 82,213,025.56 8.51%
3 Liantai Seafood International Co., Ltd. 67,061,329.23 6.94%
4 AFKO FISHERIES CO LTD 60,052,730.55 6.22%
WORLD ENDMOST CAPITAL FOODS
5 52,854,504.13 5.47%
CORPORATION(WEC)
Total -- 362,901,186.67 37.56%
Other situation of main clients
□ Applicable √ Not applicable
Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 254,208,427.73
Proportion in total annual purchase amount for top five
38.61%
suppliers
Ratio of related parties in annual total sales among the top
0.00%
five suppliers
Information of top five suppliers of the Company
Serial Name Purchases (RMB) Proportion in total annual purchase
1 Yantai Jingyuan Fishery Co., Ltd 95,136,663.00 14.45%
2 CNFC Overseas Fishery Co., Ltd. 76,925,158.98 11.68%
3 Rongcheng Ocean Fishery Co., Ltd. 34,156,369.07 5.19%
Haishun International Trade Private Co.,
4 26,192,952.39 3.98%
Ltd.
20
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
5 BOSHUN LOGISTICS LIMITED 21,797,284.29 3.31%
Total -- 254,208,427.73 38.61%
Other notes of main suppliers of the Company
□ Applicable √ Not applicable
3. Expense
In RMB
2020 2019 Y-o-y changes Note for major changes
Part of the accounting items are
Sales expense 3,669,759.70 24,928,000.04 -85.28% adjusted due to the New Revenue
Standards
Management expense 49,476,821.86 63,613,565.72 -22.22%
Caused by sharply growth of exchange
Financial expense 22,961,222.69 4,648,252.61 393.98%
loss
Caused by decline of the R&D
R& D expense 57,924.28 274,338.75 -78.89%
investment
4. R&D investment
√Applicable □Not applicable
The subsidiary carries out relevant research on by-products of tuna processing. And conducted research and
development of biotechnology full utilization around the existing tuna processing by-products and other fish
processing by-products. Both parties jointly carried out the comprehensive utilization, research and development
and production of tuna skins, fish heads, fish bones, and blood by-products, which would promote the company’s
deep processing and product diversified development.
Information of R&D investment
2020 2019 Ratio for changes
Number of R&D personnel
12 6 100.00%
(person)
Proportion of R&D personnel 2.72% 1.26% 1.46%
Investment for R&D (RMB) 57,924.28 274,338.75 -78.89%
R&D investment/Operating
0.01% 0.02% -0.01%
income
Capitalization of R&D
0.00 0.00
investment (RMB)
Capitalization of R&D
0.00% 0.00%
investment/R&D investment
Reasons for significant changes in the proportion of total R&D investment in operating income from the previous year
□ Applicable √ Not applicable
Reasons and rationality of the major changes of the capitalization rate of R&D investment
□ Applicable √ Not applicable
5. Cash flow
In RMB
Item 2020 2019 Y-o-y changes
Subtotal of cash in-flow from
1,044,766,426.68 1,220,866,901.47 -14.42%
operation activity
Subtotal of cash out-flow from
931,520,716.03 1,110,570,358.80 -16.12%
operation activity
21
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Net cash flow from operation
113,245,710.65 110,296,542.67 2.67%
activity
Subtotal of cash in-flow from
26,669,035.36 8,235.37 323,735.30%
investment activity
Subtotal of cash out-flow from
43,188,538.60 75,638,420.93 -42.90%
investment activity
Net cash flow from investment
-16,519,503.24 -75,630,185.56 -78.16%
activity
Subtotal of cash in-flow from
51,867,033.47 112,412,418.06 -53.86%
financing activity
Subtotal of cash out-flow from
64,774,888.53 144,401,790.32 -55.14%
financing activity
Net cash flow from financing
-12,907,855.06 -31,989,372.26 -59.65%
activity
Net increased amount of cash
71,131,973.21 1,836,513.24 3,773.21%
and cash equivalent
Main factors of related data’s significant changes on a year-on-year basis
√Applicable □Not applicable
(1)Net cash flow investment activities decreased compare with the same period of last year, mainly because the costs for purchase
and construction of fixed assets declined in the Period and received insurance payment for “Xinmaoxing”.
(2) Net cash flow financing activities decreased compare with the same period of last year, mainly because bank loans repayment in
the Period declined on a y-o-y basis.
The reasons for the significant difference between the net cash flow from the company's operating activities and the net profit of
current year during the reporting period
√ Applicable □ Not applicable
(1) Difference impact of fixed assets depreciation and financial expenses amounted as 50.78 million Yuan and 10.83 million Yuan
respectively;
(2) Difference impact of inventory was 34.24 million Yuan;
(3) Difference impact of operating account receivable and payable was -16.91 million Yuan.
The above caused major differences between net profit and operating cash flow.
III. Analysis of the non-main business
√Applicable □Not applicable
In RMB
Amount Ratio in total profit Note Whether be sustainable
Disposal of the trading
Investment earnings 15,287.67 0.04% Without sustainability
financial assets
Asset impairment -2,613,583.91 -6.41% Loss on inventory valuation Without sustainability
Non-operating
10,758,569.39 26.39% Insurance indemnity Without sustainability
income
Non-operating Fixed assets scrapped and
658,478.99 1.61% Without sustainability
expense donation
IV. Analysis of assets and liabilities
1. Major changes of assets composition
Adjust relevant items of financial statements at the year of fist implementation of the new revenue standards or
new leasing standards since 2020
Applicable
In RMB
22
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Year-end of 2020 Year-begin of 2020 Changes
Ratio in total Ratio in total of ratio Note of major changes
Amount Amount (+,-)
assets assets
255,811,982.2
Monetary fund 20.31% 186,011,644.29 14.44% 5.87%
1
Account
66,263,029.81 5.26% 70,003,394.30 5.43% -0.17%
receivable
338,885,629.0
Inventories 26.90% 375,744,116.36 29.16% -2.26%
6
Investment real
31,435,009.43 2.50% 32,761,086.11 2.54% -0.04%
estate
506,290,822.7
Fixed assets 40.19% 551,167,599.49 42.78% -2.59%
0
Construction in
3,705,815.70 0.29% 0.00% 0.29%
progress
Short-term loans 41,268,275.50 3.28% 51,662,365.00 4.01% -0.73%
2. Assets and liability measure by fair value
√ Applicable □Not applicable
In RMB
Cumulative
Gain/loss of
change of fair Impairment Amount
Opening fair value Amount sold Other Ending
Item value accrual in the purchased in
amount changes in the in the Period changes amount
recorded into Period the Period
Period
equity
Financial
assets
1.trading
financial
assets(derivati 10,000,000.0 5,000,000.0
0.00 5,000,000.00
ve financial 0 0
assets
excluded)
10,000,000.0 5,000,000.0
Total of above 0.00 5,000,000.00
0 0
Financial
0.00 0.00
liability
Other changes
Whether there is a significant change in the measurement attributes of the main assets during the period
□Yes √No
3. Assets right restriction till end of reporting period
Item Ending book value Limited cause
Monetary fund 76,370.28 L/C guarantee deposit
Fixed assets 29,509,590.55 Loan mortgage
Intangible assets 5,270,303.71 Loan mortgage
Total 34,856,264.54 --
V. Investment
1. Overall situation
√Applicable □Not applicable
23
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Amount invested (RMB) Last period’s amount (RMB) Changes
12,909,331.81 52,298,500.00 -75.32%
2. The major equity investment obtained in Reporting Period
□ Applicable √ Not applicable
3. The major non-equity investment in Reporting Period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
The company had no securities investment in the reporting period.
(2) Derivative investment
□ Applicable √ Not applicable
The company had no derivative investment in the reporting period.
5. Application of raised proceeds
□ Applicable √ Not applicable
The company had no application of raised proceeds in the reporting period.
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
VII. Analysis of main holding company and stock-jointly companies
√Applicable □Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Company Main Register Operating Operating
Type Total assets Net assets Net profit
name business capital income profit
Shandong
Zhonglu
Haiyan Pelagic 221,617,349. 507,840,677. 397,728,371. 300,841,656. 22,804,120.4 23,431,400.5
Subsidiary
Oceanic fishing 00 28 68 69 1 9
Fishery Co.,
Ltd.
Shandong Refrigerated 22,505,600.0 65,142,019.5 16,437,440.9 32,788,248.8
Zhonglu Subsidiary 2,002,184.94 1,623,246.71
transport 0 0 2 4
Fishery
24
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Shipping Co.,
Ltd.
Shandong
Zhonglu
Food 75,593,300.0 356,663,158. 210,250,557. 552,012,509. -3,511,656.6 -3,869,633.4
Oceanic Subsidiary
processing 0 43 07 92 8 7
(Yantai) Food
Co., Ltd.
HABITAT
INTERNATI
Refrigerated 12,476,146.0 280,734,659. 177,078,195. 67,931,348.3 16,220,241.8 26,267,380.3
ONAL Subsidiary
transport 0 32 90 6 9 7
CORPORAT
ION
Particular about subsidiaries obtained or disposed in report period
□ Applicable √ Not applicable
Notes of main holding company and stock-jointly companies
Shandong Zhonglu Haiyan Oceanic Fishery Co., Ltd.: achieved an operating profit of 21,397,913.29 Yuan in the reporting period, a
46.56% down from a year earlier with a big declined. Main reasons for declined: affected by the epidemic, the prices remain low;
major tuna markets, such as Japan and United States, have shrunk sharply with margins falls;
Shandong Zhonglu Fishery Shipping Co., Ltd.: achieved an operating profit of 1,994,635.46 Yuan in the reporting period, a 67.92%
down from a year earlier with a big declined. Main reasons for declined: affected by the epidemic, costs of crew rotation and vessel
maintenance increased, and with the major losses from exchange in the current period, the profit declined.
Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd.: achieved an operating profit of -4,367,029.79 Yuan in the reporting period, a
157.65% down from a year earlier with big drops. Main reasons for declined: affect by the epidemic and weak in main markets for
tuna, raw material prices declined, the finished product market also fell sharply, than the unsalable and inventory increased, costs
increased correspondingly with profit drops;
HABITAT INTERNATIONAL CORPORATION: achieved an operating profit of 16,220,241.89 Yuan in the reporting period, a
38.26% down from a year earlier with a big declined. Main reasons for declined: affected by the epidemic, costs of crew rotation and
vessel maintenance increased, and with the major losses from exchange in the current period, the profit declined.
VIII. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Outlook of future development
(i)With the implementation of the national maritime power strategy, deep-sea fishing comes to the priority parts of
strategic ocean. The country has issued a series of preferential policies, and the ocean fishing in China has
developed rapidly and the scale of the ocean fleet is increasing. However, the main business is still focused on
acquiring resources with original fish as the major products. Processing of products with high added-value, market
development and marketing remain weak, and the support system for production services is relatively fragile. At
present, our country is implementing switch of old and new kinetic energy and putting forward the high-quality
development, which means ocean fishery will be offered with new opportunities for development, adjustment and
transformation. With respect to development trend, it is expected that: (i)stable development of ocean fishery in
international waters, and increase fishing scale for fishes living in the middle and upper level of the waters,
cephalopod, Antarctic krill and other varieties which have the potential for further development; (ii)consolidate
and improve ocean fishery in other countries sea, aiming to facilitating transformation and upgrade of this kind of
fishery through change of cooperation model, enhancement of management, vessel update and remake and
projects merger and acquisition; (iii)optimize industry structure and extend industry chain, develop refrigeration,
processing and trading of aquatic products; (iv)strengthen construction of fishery production service supporting
system, greatly develop overseas fishing bases and ocean production platforms, and conduct a series of
value-added services, such as fishing port wharf, fishing goods storage logistics, fishing vessel repair, ocean
25
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
transportation and recharge.
(ii)Outlook of major business
1. Pelagic fishing
The Company continues to develop the ocean fishery business with purse seine and longline fishing as the core
business. In terms of tuna seine, it is planned to build 2 large seine vessels (groups) to operate in the central and
western Pacific Ocean, on the existing base of 7 vessels (groups), expand the seine production scale to increase
the profit growth point for the enterprises; In terms of longline fishing, in 2020, our company successfully entered
the Somali fisheries again, and the fishing output hit a record high. With the continuous exploration and in-depth
development of the Indian Ocean waters, we have become more familiar with the distribution of the fisheries in
this sea area, and maintained better production and operation efficiency through reasonable deployment, which
can provide the company with a stable source of income; in the trawl market, it is planned to build two new
fishing vessels with advanced equipment, suitable for modern marine fishery production, and in line with national
industrial policies to replace the existing twofold trawlers produced in the Ghana waters.
2. Refrigerated transport
Consolidate and enhance refrigerated transportation business. Ocean refrigerated transportation has always been
the business segment contributing stable operating results for the Company. According to the specific conditions
of the refrigerated transport market, continued to phase out the old vessels with small tonnage and updated the
refrigerated transport vessels with moderate tonnage and relatively young age to keep the status of the company’s
transport fleet in refrigerated shipping industry. At the same time, explore other kinds of transport vessels business,
expand the marine business scope to increased the profitability.
3. Cold storage processing trade
Actively develop and extend the cold storage processing trade. First of all, the Company seeks development by
innovation. It continues to optimize product structure to improve our competitiveness and risk-prevention ability.
Second, it continues to increase acquisition, processing and sales of tunas fished by ocean fishery enterprises,
making its best to expand both domestic and international market; third, the Company increase development of
new products and further-processed products with high added-value in addition to the existing business, expecting
to make new point of growth. The fourth is to increase the innovation and implementation of production processes,
improve the degree of production automation, improve production efficiency, save production costs, and improve
production efficiency; the fifth was to strengthen brand building and publicity, stabilize the leading position of the
company’s series products in China.
(iii) Future development strategy:
By adherence to the strategic target, the Company captures the business opportunities in ocean fishery market in
compliance with the development requirements as a listed company, preventing risks effectively and achieving
stable performance. With ocean fishery as the major business, the Company endeavors to broaden brand
recognition and extend industrial chain pursuant to the development idea of “hold fishery as major business,
26
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
integrated with refrigerated and processing trade, adjust structure and seek for transformation and upgrade”, which
facilitate the Company to realize development of modernization, information, digitization and intelligence.
(iv) Working plan for 2021
Adhere to the concept of “Reform Development, Innovation Development, Standardized Development and Steady
Development”, Under the working target of “maintain growth, emphasize regulation, adjust structure and promote
transformation”, the Company plans to improve its development quality, enhance economic performance, focus
on switch of new and old kinetic energy and market penetration, propel construction of significant projects,
seeking for moderate and stable growth. In respect of the major problems restricting its development, the
Company makes its best to conduct operation, adjust transformation, market penetration and regulate management,
aiming to making new point of growth. Besides, it continues to strengthen and improve its ability of control,
competitiveness, influence and risk prevention, ensuring that the annual operating tasks could be successfully
completed in full.① to improve the management level of the Atlantic seine project, accelerate the improvement of
various supporting measures, diversify the development of the sales market, and improve the project’s
profitability. Actively promote the construction of two (group) large-scale purse seine ships to cultivate profit
growth points. ② Stabilize the profitability of tuna fishing project in the Indian Ocean, explore new fishing
grounds, scientifically dispatch, and operate legally and compliantly to ensure the steady growth of catches.
③Consolidate and improve the refrigerated transportation business, purchase and build new modern and
intelligent transportation ships. ④Accelerate the elimination of outdated production capacity, and plan to build
two new fishing vessels with advanced equipment, suitable for modern marine fishery production, and in line with
national industrial policies to replace the existing two old trawlers produced in the Ghana waters. ⑤ Actively
expand and extend the refrigeration and processing trade business, increase the development of new products and
deep-processing and other high value-added products, innovate sales models, and cultivate new profit growth
points for the enterprise. ⑥to propel the Company to transform into an innovative enterprise with innovation in
technology, products, business and management.
(v) Potential risks and countermeasures
1. Risk of fishery resource fluctuations. Fishery resources usually have fluctuations, and sometimes the
fluctuations are large, the greater the decline in resources, the greater the impact on the company’s efficiency.
Periodic changes in resources, climate and hydrology conditions can all cause fluctuations in fishery resources.
Countermeasures: Explore new fisheries and scientifically dispatch, innovate fishing production equipment, and
gradually renew production vessels. Make scientific and reasonable arrangements for ship maintenance,
equipment maintenance, materials, fish bait, spare parts, and personnel logistics support to ensure the shipping
rate.
2. Risk of sales price fluctuations. Affected by the epidemic, especially the continuous detection of novel corona
virus on cold chain food packaging has a huge impact on fresh cold chain products, and the risk of price
fluctuations has increased. At present, the price of ultra-low temperature tuna continues to remain low, which has
increased the difficulty in destocking in the later period.
27
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Countermeasures: Explore the transformation of enterprises, transform export sales to domestic sales, promote
dual cycles, accurately connect with the domestic markets, research and develop marketable deep-processing
products of cooked food products, and expand domestic sales channels. Increase efforts in domestic market
promotion, continuously invest in the product research and development, the promotion of tuna APP online sales
platform, the product advertising, and the product promotion in the long term.
3. Human resource risk. Due to the restrictions of the epidemic prevention and control policies of overseas
countries, the crew cannot change shifts, which brings hidden dangers to the safety of the company's ships and the
health of the crew; the cost of overseas flight tickets for crew changes is high, and the cost of quarantine of
immigrants is high.
Countermeasures: Innovate working models, make full use of network tools, make plans and work arrangements
in advance, implement remote command, guide the ship to carry out various internal audits and various ship repair
work, and solve the problem that shore-based personnel cannot go to the ship to conduct audits and dock repairs
due to the impact of the epidemic, so as to guarantee the safety of ship and shore personnel and the smooth
progress of various tasks.
4. Sales and storage risks of purse seine catches. With the full operation of all seven the catches are returned to
domestic market appears to be single.
Countermeasures: Develop the European consumer market and the African local market, conduct price
comparison sales, and stabilize the sales prices.
5.The risk of exchange rate fluctuations. Fluctuations in the exchange rate of the Ren Min Bi against the US dollar
and Japanese yen will directly affect the company's efficiency.
Countermeasures: Pay close attention to exchange rate trends, settle exchanges in a timely manner, and take the
initiative to adopt effective financial instruments to lock in exchange rates in advance to reduce exchange rate
risks.
6. Risk of security incident
Countermeasures: Adhere to the safe production system, implement safety production measures, unremittingly
pay close attention to safety education, eliminate major safety accidents, and effectively implement safety
production as the top priority of production management.
X. Reception of research, communication and interview
1. In the report period, reception of research, communication and interview
√Applicable □Not applicable
Main contents of
Time Location Way Reception object Type the discussion Basic situation index of
and the investigation
information
28
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
provided
Telephone Operation of the
10 Mar. 2020 The Company Individual Individual Not applicable
communication Company
Telephone Operation of the
31 Mar. 2020 The Company Individual Individual Not applicable
communication Company
Telephone Operation of the
23 Sept. 2020 The Company Individual Individual Not applicable
communication Company
Telephone Operation of the
30 Oct. 2020 The Company Individual Individual Not applicable
communication Company
Telephone Operation of the
30 Oct. 2020 The Company Individual Individual Not applicable
communication Company
Telephone Operation of the
30 Oct. 2020 The Company Individual Individual Not applicable
communication Company
Telephone Operation of the
30 Oct. 2020 The Company Individual Individual Not applicable
communication Company
Telephone Operation of the
20 Nov. 2020 The Company Individual Individual Not applicable
communication Company
Telephone Operation of the
20 Nov. 2020 The Company Individual Individual Not applicable
communication Company
Telephone Operation of the
30 Dec. 2020 The Company Individual Individual Not applicable
communication Company
Telephone Operation of the
30 Dec. 2020 The Company Individual Individual Not applicable
communication Company
Reception (times) 11
Number of hospitality 0
Number of individual reception 11
Number of other reception 0
Disclosed, released or let out major undisclosed
N
information
29
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Section V. Important Events
I. Profit distribution plan of common stock and capitalizing of common reserves plan
Formulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash Dividend policy during
the Reporting Period
□ Applicable √ Not applicable
Profit distribution plan (pre-plan) of common stock and capitalizing of common reserves plan (pre-plan) in latest
three years (including the reporting period)
The Company, though as a listed company offering B shares, has almost never conducted financing from
securities market since its listing, which means the parent company and its subsidiaries could merely operate with
its own profits made. The independent directors of the company have issued independent opinions on the
company's profit distribution plan, which needs to be submitted to the general meeting of shareholders for
deliberation. Small and medium shareholders have the opportunity to fully express their opinions and demands,
and the legitimate rights and interests of small and medium shareholders are fully protected.
Profit distribution plan (pre-plan) of common stock and capitalizing of common reserves plan (pre-plan) in latest
three years (including the reporting period):
In 2018, the Company made a profit during the reporting period, but the profit of parent company available for distribution to
ordinary shareholders was negative. Therefore, profit distribution plan for year of 2018 is: no profit distribution, nor the capitalizing
of common reserves.
In 2019, the Company made a profit during the reporting period, but the profit of parent company available for distribution to
ordinary shareholders was negative. Therefore, profit distribution plan for year of 2018 is: no profit distribution, nor the capitalizing
of common reserves.
In 2020, the Company made a profit during the reporting period, but the profit of parent company available for distribution to
ordinary shareholders was negative. Therefore, profit distribution plan for year of 2018 is: no profit distribution, nor the capitalizing
of common reserves.
Cash dividend of common stock in latest three years (including the reporting period)
In RMB
Ratio of the
Ratio of the
Ratio of the total cash
Net profit cash bonus by
cash bonus in bonus (other
attributable to other ways in
net profit ways included)
common stock Proportion for net profit
attributable to in net profit
Amount for shareholders of cash bonus by attributable to Total cash
Year for bonus common stock attributable to
cash bonus (tax listed company other ways(i.e. common stock bonus(other
shares shareholders of common stock
included) in share shareholders of ways included)
listed company shareholders of
consolidation buy-backs) listed company
contained in listed company
statement for contained in
consolidation contained in
bonus year consolidation
statement consolidation
statement
statement
2020 0.00 29,537,498.13 0.00% 0.00 0.00% 0.00 0.00%
2019 0.00 82,311,630.23 0.00% 0.00 0.00% 0.00 0.00%
2018 0.00 90,281,584.29 0.00% 0.00 0.00% 0.00 0.00%
The Company gains profits in reporting period and the retained profit of common stock shareholders provided by parent company is
positive but no plan of cash dividend proposed of common stock
□ Applicable √ Not applicable
II. Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicable
30
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for
the year.
III. Implementation of commitment
1. Commitments completed in Period and those without completed till end of the Period from actual
controller, shareholders, related parties, purchaser and companies
√Applicable □Not applicable
Type of Content of Commitment Commitment Implementatio
Commitments Promise
commitments commitments date term n
Commitments for
Share Merger Reform
1. The
Company
does not
directly or
indirectly own
any shares or
equity in other
enterprises
that may cause
horizontal
competition
with Zhonglu
Oceanic
(hereinafter
collectively
referred to as
“competitive
enterprise”) or
own any
interest in any
competing
enterprise, and
Shandong will not Continuous
State-owned directly or and effective
Assets Inter-industry indirectly during the
Commitments in report of In
Investment Competition invest or 2018-07-23 time with
acquisition or equity change purchase the performance
Holding Commitment controlling of
Company competitive the Zhonglu
Limited enterprises; 2. Oceanic
For any
business
opportunities
obtained by
the Company
and other
enterprises
controlled by
the Company
from any third
party that
constitute or
may constitute
substantial
competition
with the
business of
Zhonglu
Oceanic, the
Company will
immediately
notify
Zhonglu
31
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Oceanic and
give these
business
opportunities
to Zhonglu
Oceanic so as
to avoid the
horizontal
competition or
potential
horizontal
competition
with Zhonglu
Oceanic; 3.
The Company
and other
companies
controlled by
the Company
will not
provide
business
secrets such as
technical
information,
technological
process, and
sales channels
for other
companies,
enterprises,
organizations
or individuals
that have
business
constituting
competition
with the
business of
Zhonglu
Oceanic. 4.
The Company
promises not
to damage the
interests of
Zhonglu
Oceanic and
other
shareholders
of Zhonglu
Oceanic by
utilizing the
position of
controlling
shareholder; 5.
The Company
is willing to
bear the direct
and indirect
economic
losses,
liability
claims and
additional
expenses
caused by the
violation of
above
32
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
commitments
to Zhonglu
Oceanic.
1. The related
transactions
between the
Company and
other
companies
controlled by
the Company
and Zhonglu
Oceanic are
strictly in
compliance
with the
relevant
provisions of
laws and
regulations,
and will be
conducted on
an equal and
voluntary
basis in
accordance
with the
principles of
fairness and
equivalence,
prices will be
determined at
Shandong a reasonable Continuous
State-owned price and effective
Assets Related party recognized by during the
In
Investment transaction the market. 2. 2018-07-23 time with
performance
Holding commitment The Company controlling of
Company and other the Zhonglu
Limited enterprises Oceanic
controlled by
the Company
will strictly
abide by the
provisions on
the avoidance
of related
transactions in
the articles of
association of
Zhonglu
Oceanic, and
the related
transactions
involved will
be conducted
in accordance
with the
decision-maki
ng procedures
of related
transactions of
Zhonglu
Oceanic, and
will perform
legal
procedures
and
information
33
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
disclosure
obligations. 3.
The Company
and other
enterprises
controlled by
the Company
guarantee
strict
compliance
with laws,
regulations
and regulatory
documents
and the
relevant
provisions of
the articles of
association of
Zhonglu
Oceanic, and
exercise
shareholder
rights and
perform
shareholder
obligations on
an equal basis
with other
shareholders
in accordance
with legal
procedures,
and don’t seek
improper
interests or
harm the
legitimate
rights and
interests of
Zhonglu
Oceanic and
other
shareholders
by utilizing
the position of
controlling
shareholder. 4.
The above
commitments
continue to be
effective
during the
period that the
Company
controls
Zhonglu
Oceanic. If the
Company fails
to perform the
commitments
made in this
commitment
letter and
causes losses
and
consequences
to Zhonglu
34
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Oceanic, the
Company will
bear the
corresponding
liability for
damage.
Commitments in assets reorganization
Commitments make in initial public
offering or re-financing
Equity incentive commitment
Other commitments for medium and
small shareholders
Completed on time (Y/N) Y
If the commitment is overdue and not
fully fulfilled, explain the specific
N/A
reasons for the failure and the work
plan for the next step
2. Concerning assets or project of the Company, which has profit forecast, and reporting period still in
forecasting period, explain reasons of reaching the original profit forecast
□ Applicable √ Not applicable
IV. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors
(if applicable) for “Qualified Opinion” that issued by CPA
□ Applicable √ Not applicable
VI. Particulars about the changes in aspect of accounting policy, estimates and calculation
method compared with the financial report of last year
√Applicable □Not applicable
(i) Changes and basis of accounting policy
1. The Accounting Standards for Business Enterprise No.14- Revenue (hereinafter referred to as New Revenue
Standards) was revised and issued by Ministry of Finance in 2017. The Company will implement the New
Revenue Standards and notice since 1 Jan. 2020, relevant contents of the accounting policies are adjusted.
The new revenue standards have replaced the "Accounting Standards for Business Enterprises No. 14-Revenue"
and "Accounting Standards for Business Enterprises No. 15-Construction Contracts" (collectively referred to as
the "original revenue standards") promulgated by the Ministry of Finance in 2006. Under the original revenue
standards, the Company used the transfer of risk rewards as the judgment standard for the time point of revenue
recognition. The new revenue standards introduce the “five-step methods” of revenue recognition and
measurement, and provide more guidance for specific transactions or events. Under the new revenue standards,
the Company uses the transfer of control as the judgment standard for the time point of revenue recognition. For
specific accounting policies for revenue recognition and measurement, please refer to Note XII (v) (27).
35
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
2.From October 1, 2020, the overseas subsidiary HABITAT INTERNATIONAL CORPORATION (hereinafter
referred to as the "HIC Company") has changed its recording currency from RMB to U.S. dollar. The reason for
the change is that the main business activities of HIC Company are overseas, the major assets and liabilities are all
denominated in U.S. dollars, and major business operations such as purchasing and sales are also denominated
and settled in U.S. dollars. In consideration of the current development of the company's overseas business, the
change of the recording currency from RMB to U.S. dollars can more objectively reflect the financial status and
operating results of HIC Company.
(ii) Impact of changes in accounting policies
Summary of the impacts from implementing the New Revenue Standards on consolidate balance sheet and parent
company’s balance sheet date 1 Jan. 2020 are as:
Unit (Yuan)
Item of consolidate balance sheet Balance dated 31 Dec. 2019 Impact from New Balance dated 1 Jan. 2020
before accounting policy Revenue Standards after accounting policy
changed changed
Liability:
Contract liability 18,445,693.16 18,445,693.16
Other current liability 31,953.38 31,953.38
Account receivable in advance 18,477,646.54 -18,477,646.54
Item of parent company’s balance Balance dated 31 Dec. 2019 Impact from New Revenue Balance dated 1 Jan. 2020
sheet before accounting policy Standards after accounting policy
changed changed
Liability:
Contract liability 2,151,845.53 2,151,845.53
Other current liability 9,161.24 9,161.24
Account receivable in advance 2,161,006.77 -2,161,006.77
VII. Major accounting errors within reporting period that needs retrospective restatement
□ Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
VIII. Compare with last year’s financial report; explain changes in consolidation statement’s
scope
□ Applicable √ Not applicable
No changes in consolidation statement’s scope for the Company in the period.
IX. Appointment and non-reappointment (dismissal) of CPA
Accounting firm appointed
Name of domestic accounting firm WUYIGE Certified Public Accountants LLP
Remuneration for domestic accounting firm (in 10 thousand
40
Yuan)
Continuous life of auditing service for domestic accounting firm 18
Name of domestic CPA Zhong Benqing, Zhang Lifa
Continuous fixed number of year for the auditing service
5
provided by CPA in domestic CPA Firms
Whether re-appointed accounting firms in this period or not
□ Yes √ No
Appointment of internal control auditing accounting firm, financial consultant or sponsor
36
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
√ Applicable □Not applicable
After approval and passed by the Annual General Meeting of 2019, the Company engaged WUYIGE Certified Public Accountants
LLP to be the auditing CPA for internal control 2020 of the Company, totally 100,000 Yuan are paid in the period.
X. Facing delisting after disclosure of the annual report
□ Applicable √ Not applicable
XI. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period.
XII. Significant litigation and arbitration of the Company
□ Applicable √ Not applicable
No Significant litigation or arbitration for the Company in reporting period.
XIII. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
XIV. Integrity of the company and its controlling shareholders and actual controllers
√Applicable □Not applicable
The company and its controlling shareholders and actual controllers do not have a relatively large amount of due
existing debt with court’s effective judgments.
XV. Implementation of the company’s stock incentive plan, employee stock ownership plan or
other employee incentives
□ Applicable √ Not applicable
During the reporting period, the company has no stock incentive plan, employee stock ownership plan or other
employee incentives that have not been implemented.
XVI. Material related transactions
1. Related transaction with daily operation concerned
□ Applicable √ Not applicable
No related transaction with daily operation concerned for the Company in reporting period.
2. Related party transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related party transactions by assets acquisition and sold for the Company in reporting period.
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period
37
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
4. Contact of related credit and debt
□ Applicable √ Not applicable
No contact of related credit and debt for the Company in reporting period
5. Other material related party transactions
□ Applicable √ Not applicable
No other material related party transactions for the Company in reporting period
XVII. Major contract and implantation
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship for the Company in reporting period
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in reporting period
(3) Leasing
□ Applicable √ Not applicable
No leasing for the Company in reporting period
2. Major guarantee
□ Applicable √ Not applicable
No guarantee for the Company in reporting period
3. Entrust others to cash asset management
(1) Trust financing
□ Applicable √ Not applicable
The company had no trust financing in the reporting period.
2. Major guarantee
□ Applicable √ Not applicable
No guarantee for the Company in reporting period
(2) Entrusted loans
□ Applicable √ Not applicable
The company had no entrusted loans in the reporting period.
4. Major contracts with routine operation concern
□ Applicable √ Not applicable
38
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
5. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in reporting period
XVIII. Social responsibility
1. Execution of social responsibility of targeted poverty alleviation
Take on social responsibility and support social public welfare is part of the core value for the enterprise from
beginning to end. We participate in social responsibility through respect for employees’ rights, prevent and
remedy pollution, promote sustainable utilization of resources, pay attention and participation in public welfare.
2. Targeted poverty alleviation social responsibility
The Company has not carried out targeted poverty alleviation in the reporting year, nor has follow-up targeted poverty alleviation
plan either.
3. Environment protection
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental Protection
□Yes √No
No
Listed company and its subsidiary are not belongs to key pollution enterprise listed by Department of Environmental Protection
XIX. Explanation on other significant events
√Applicable □Not applicable
Name Date of disclosed Internet website and retrieval
path for disclosed information
Notice on the Company and its Controlling Subsidiary have 2020-2-28 http://www.cninfo.com.cn
Received the Government Subsidies
Proposal of Accounting Policy Changed 2020-4-29 http://www.cninfo.com.cn
Notice of Progress of Important Events 2020-6-30 http://www.cninfo.com.cn
Notice on the Company and its Controlling Subsidiary have 2020-8-5 http://www.cninfo.com.cn
Received the Government Subsidies
Notice on Resignation of Secretary of the Board, Deputy GM 2020-11-20 http://www.cninfo.com.cn
and Staff Director
Notice of Voluntary Information Disclosure for Signing the 2020-11-20 http://www.cninfo.com.cn
Project Framework Agreement
Notice on Changing the Accounting Standard Currency from 2020-12-30 http://www.cninfo.com.cn
Overseas Subsidiary
Notice on Election of the Employee Representative Director 2020-12-30 http://www.cninfo.com.cn
XX. Significant event of subsidiary of the Company
√Applicable □Not applicable
On 20 December 2019, the Company released a Notice on Important Matters of Maritime Distress (Notice No.: 2019-37) for the
Panamanian “SEA MARK” vessel (“Xinmaoxing”), owned by subsidiary of the Company HABITAT INTERNATIONAL
CORPORATION. On 30 June 2020, the Company release the Notice of Progress of Important Events (Notice No.: 2020-14), the
subsidiary received a compensation $ 3,000,000.00 from Qingdao Branch of PICC and $ 118,672.66 from China Ship-owners
Mutual Assurance Association. Insurance settlement of the event has been concluded.
39
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in shares
1. Changes in shares
In Share
Before changes (+,-) After changes
Capitaliza
tion of
Amount Ratio New issue Bonus Other Subtotal Amount Ratio
public
reserve
128,071,3 128,071,3
I. Unlisted shares 48.13% 48.13%
20 20
128,071,3 128,071,3
1. Sponsor shares 48.13% 48.13%
20 20
Including: State-owned 127,811,3 127,811,3
48.04% 48.04%
shares 20 20
Domestic corporate
260,000 0.10% 260,000 0.10%
shares
138,000,0 138,000,0
II. Listed shares 51.87% 51.87%
00 00
2. Domestically listed 138,000,0 138,000,0
51.87% 51.87%
foreign shares 00 00
266,071,3 266,071,3
III. Total shares 100.00% 100.00%
20 20
Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changed
□ Applicable √ Not applicable
Implementation progress of the share repurchases
□ Applicable √ Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of restricted shares
□ Applicable √ Not applicable
II. Securities issue and listing
1. Security offering (without preferred stock) in Reporting Period
□ Applicable √ Not applicable
2. Changes of total shares and shareholders structure as well as explanation on changes of assets and
liability structure
□ Applicable √ Not applicable
40
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
3. Existing internal staff shares
□ Applicable √ Not applicable
III. Shareholders and actual controller
1. Number of shareholders of the Company and share-holding
In Share
Total preference
Total preference shareholders
Total common shareholders with voting
Total common
stock with voting rights recovered
stock
shareholders at rights recovered at end of last
shareholders in 10,949 10,874 0 0
end of last month at end of month before
reporting
before annual reporting period annual report
period-end
report disclosed (if applicable) disclosed (if
(found in note 8) applicable)
(found in note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Total Amount Number of shares pledged/frozen
Amount
Proportio sharehol of
Changes of listed
Full name of Nature of n of ders at unlisted
in report outstandi
Shareholders shareholder shares the end outstandi State of share Amount
period ng shares
held of report ng shares
held
period held
Shandong
State-owned
State-owned 125,731, 125,731,
Assets Investment 47.25%
legal person 320 320
Holding
Company Limited
Foreign nature 5,760,42
Chen Tianming 2.16% 5,760,427
person 7
Domestic nature 4,866,54
Zhu Shuzhen 1.83% 4866546 4,866,546
person 6
Domestic nature 4,051,21
Cai Yujiu 1.52% 284810 4,051,211
person 1
GUOTAI JUNAN
SECURITIES(H Foreign legal 2,135,68
0.80% 121061 2,135,685
ONGKONG) person 5
LIMITED
Haitong
International
Securities Foreign legal 2,118,73
0.80% 2,118,736
Company person 6
Limited-Account
Client
China National
Heavy Duty State-owned 1,950,00 1,950,00
0.73%
Truck Group legal person 0 0
Jinan Truck LLC
Shenwan
Foreign legal 1,897,85
HongYuan (H.K.) 0.71% -41300 1,897,854
person 4
Limited
Domestic nature 1,473,00
Lin Mingyu 0.55% 263000 1,473,001
person 1
Domestic nature 1,253,00
Ouyang Guifang 0.47% 592995 1,253,000
person 0
Strategy investors or general legal
person becomes top 10 shareholders Not applicable
due to rights issued (if applicable)
41
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
(see note3)
Shandong State-owned Assets Investment has 20% shares of China National Heavy Duty
Truck Group Jinan Truck LLC.(During the reporting period, Shandong SDIC entrusted
Shandong Heavy Industry Group Co., Ltd. to exercise other shareholder’s rights of its 20%
Explanation on associated
relationship among the aforesaid stock equity in Sinotruk Group except for the assets income right.) Rests of the shareholders
shareholders are the domestically listed foreign shareholders, and the Company is unknown whether there
exists associated relationship or belongs to consistent actor regulated by “management
method for acquisition of listed company” among the above said shareholders
Description of the delegate/entrusted
voting rights and abstain from N/A
voting for the above shareholders
Shareholding of top 10 circulated shareholders
Type of shares
Shareholders Amount of listed shares held at end of the Period
Type Amount
Domestically
Chen Tianming 5,760,427 listed foreign 5,760,427
shares
Domestically
Zhu Shuzhen 4,866,546 listed foreign 4,866,546
shares
Domestically
Cai Yujiu 4,051,211 listed foreign 4,051,211
shares
GUOTAI JUNAN Domestically
SECURITIES(HONGKONG) 2,135,685 listed foreign 2,135,685
LIMITED shares
Domestically
Haitong International Securities
2,118,736 listed foreign 2,118,736
Company Limited-Account Client
shares
Domestically
Shenwan HongYuan (H.K.) Limited 1,897,854 listed foreign 1,897,854
shares
Domestically
Lin Mingyu 1,473,001 listed foreign 1,473,001
shares
Domestically
Ouyang Guifang 1,253,000 listed foreign 1,253,000
shares
Domestically
Wang Dongsheng 1,115,203 listed foreign 1,115,203
shares
Domestically
Huang Jiayi 1,048,687 listed foreign 1,048,687
shares
Expiation on associated relationship
or consistent actors within the top 10 The Company is unknown whether there exists associated relationship or belongs to
un-restrict shareholders and between consistent actor regulated by “management method for acquisition of listed company” among
top 10 un-restrict shareholders and the above said shareholders.
top 10 shareholders
Explanation on shareholders
involving margin business about top
ten common stock shareholders with N/A
un-restrict shares held(if applicable)
(see note 4)
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no
42
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
buy-back agreement dealing in reporting period.
2. Controlling shareholders
Nature of controlling shareholders: local state-owned holding
Type of controlling shareholders: legal person
Legal person/person
Controlling shareholders Date of foundation Organization code Main operation business
in charge of the unit
Operating management and
disposal on state-owned
assets (shares), assets
Shandong State-owned Assets management, equity
Investment Holding Company Li Guangqing March 25, 1994 91370000163073167C investment management
Limited and operation, enterprise
re-construction, acquisition
and combination,
investment consultant
0.06% of China Merchants Bank Co., Ltd., 1.42% of Guangzhou Pubang Garden Co., Ltd., 0.47%
of BY-HEALTH co., Ltd., 18.96% of Zhongtong Bus Holding Co., Ltd., 2.50% of Shandong Land&
Mining Group Co., Ltd., 4.98% of Luyin Investment Group Co., Ltd.,0.14% of Lushang Health
Industry Development Co., Ltd., 3.31% of Shandong Lubei Chemical Co., Ltd., 3.46% of Yinzuo
Equity of other Group co., Ltd., 4.76% of Shandong Xinhua Medical Devices Co., Ltd., 4.99% of Weichai Heavy
domestic/oversea listed Machinery Co., Ltd., 0.37% of Yunnan Tin Industry Co., Ltd., 0.88% of Hubei Jichuan
company control by Pharmaceutical Co., Ltd., 0,56% of Shandong Gold Mining Co., Ltd., 10.23% of Jicheng
controlling shareholder as Electronics Co., Ltd., 1.85% of Yantai Zhenghai Magnetic Materials Co., Ltd., 1.80% of
well as stock-joint in report YUEYANG FOREST & PAPER Co., Ltd., 1.51% Guangzhou Holike Creative Home Co., Ltd.,
period 3.09% of Jiangsu Guotai International Group Co., Ltd., 4.26% of Shenzhen AOTO Electronics Co.,
Ltd., 1.54% of Shanghai Modern Pharmaceutical Co., Ltd., 0.73% of China United Network
Communications (Hong Kong) Co., Ltd., 2.07% of Hanhuajin Holding Co., Ltd., 0.28% of Red Star
Macalline Group Corporation Ltd., 2.25% of Luzheng Futures Co., Ltd., 0.44% of China Energy
Engineering Corporation Limited, 1.73% of Zhongtai Securities Co., Ltd.
Changes of controlling shareholder in reporting period
□ Applicable √ Not applicable
No changes of controlling shareholder for the Company in reporting period.
3. Actual controller
Nature of actual controller: local state-owned assets management
Type of actual controller: legal person
Legal
Actual controller person/person in Date of foundation Organization code Main operation business
charge of the unit
Performing responsibilities of
State-owned Assets Supervision
investors, monitoring the
and Administration Commission
Zhang Bin June 18, 2004 N/A preserve and increase value for
of Shandong Provincial
state-owned assets that
Government
supervised etc.
Equity of other
foreign/domestic listed
company that controlled by Not applicable
actual controller in reporting
period
Changes of actual controllers reporting period
□ Applicable √ Not applicable
No changes of actual controllers for the Company in reporting period
Property right and controlling relationship between the actual controller and the Company is as follow:
State-owned Assets Supervision and Administration
Commission of Shandong Provincial Government
70%
43
Shandong State-owned Assets Investment Holding
Company Limited
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Actual controller controlling the Company by entrust or other assets management
□ Applicable √ Not applicable
4. Particulars about other legal person shareholders with over 10% shares held
□ Applicable √ Not applicable
5. Limitation and reducing the holdings of shares of controlling shareholders, actual controllers,
restructuring side and other commitment subjects
□ Applicable √ Not applicable
44
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the reporting.
45
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Section VIII. Convertible Bonds
□ Applicable √ Not applicable
The Company had no convertible bonds in the Period.
46
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Section IX. Particulars about Directors, Supervisors and Senior
Executives and Employees
I. Changes of shares held by directors, supervisors and senior executives
Increasin Decreasin
Shares
Start g shares g shares Shares
End date held at Other
Working Sex dated of held in held in held at
Title Age of office period-be changes
Name status (F/M) office this this period-en
term gin (Share)
term period period d (Share)
(Share)
(Share) (Share)
Lu Director/ Currently January May 15,
M 55 0 0 0 0 0
Lianxing Chairman in office 25, 2018 2022
Wang Director/ Currently June 7, May 15,
M 52 0 0 0 0 0
Huan GM in office 2018 2022
Lu Currently May 19, May 15,
Director M 47 0 0 0 0 0
Xiaonan in office 2016 2022
Independ
Currently May 19, May 15,
Jiang Lu ent M 61 0 0 0 0 0
in office 2016 2022
director
Independ
Song Currently May 19, May 15,
ent M 55 0 0 0 0 0
Xiliang in office 2016 2022
director
Director/
Liang Currently Novembe May 15,
M 48 0 0 0 0 0
Shanglei Deputy in office r 19, 2020 2022
GM
Chairman
of
Superviso Currently May 16, May 15,
Liu Bing M 38 0 0 0 0 0
ry in office 2019 2022
Committe
e
Huang Superviso Currently January May 15,
F 41 0 0 0 0 0
Wei r in office 22, 2019 2022
Superviso Currently December May 15,
Qiu Hong F 53 0 0 0 0 0
r in office 29, 2017 2022
Meng Deputy Currently May 16, May 15,
M 51 0 0 0 0 0
Fanyong GM in office 2019 2022
Fu Currently January 4, May 15,
CFO M 48 0 0 0 0 0
Chuanhai in office 2019 2022
Director/
Deputy
Leave May 19, Novembe
Li Ming GM/Secre M 55 0 0 0 0 0
office 2016 r 19, 2020
tary of the
Board
Total -- -- -- -- -- -- 0 0 0 0 0
II. Changes of directors, supervisors and senior executives
√ Applicable □Not applicable
Name Title Type Date Reasons
Li Ming Director/Deputy Leave office November 19, Job transfer
47
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
GM/Secretary of 2020
the Board
November 19,
Liang Shanglei Deputy GM Appoint Appointment of the board of directors
2020
December 28,
Liang Shanglei Staff Director Be elected Election of Workers' Congress
2020
III. Post-holding
Professional background, major working experience and present main responsibilities in Company of directors, supervisors and
senior executive at the present
1. Directors
Lu Lianxing, holds a university degree, is a member of the Communist Party of China. He used to be the deputy
manager and manager of Shandong Leather Industry Corporation Import and Export Company, the deputy chief
accountant, chief accountant, general manager, chairman and deputy party secretary of Shandong Leather Industry
Corporation, and the general manager and secretary of the party committee of Shandong Qilu Petrochemical Joint
Development Corporation, the chairman and party secretary of Shandong Zhonglu Oceanic Fisheries Co., Ltd.,
the vice president and party committee member of Shandong State-owned Assets Investment Holding Co., Ltd.,
the general manager and secretary of the party committee of Shandong Fishery Enterprise Group Corporation, the
chairman of Shandong Dongyin Investment Co., Ltd., and secretary of the party committee, director and chairman
of Zhongtai Xincheng Asset Management Co., Ltd. He currently serves as the member of party standing
committee, director, secretary of the board of Shandong State-owned Assets Investment Holdings Co., Ltd. From
January 25, 2018, he serves as the secretary of the party committee, director and chairman of the Company,
Lu Xiaonan, a MBA, master of economics and a member of the CPC. He was a deputy chief of resource
environment audit office of the Auditing Office Nantepai Office, deputy GM of Shandong Dongyin Investment
Co., Ltd., the deputy director of assets management department, director of risk management department, director
of disciplinary inspection and supervision office, GM of capital operation centre and director of general
department of Shandong State-Owned Assets Investment Holding Co., Ltd, and director of Shandong Zhonglu
Haiyan Oceanic Fishery Co., Ltd. Now he serves as GM of Shandong Rongyue Financial Holdings Co., Ltd.,
supervisor of Shandong State-owned Assets Investment, and the chairman of the supervisory of Zhongtong Bus
Holding Co., Ltd. He serves as director of the Company since 19 May 2016.
Wang Huan, university degree, holds a bachelor degree in economics. He used to be the deputy manager of the
ocean management department of Shandong Zhonglu Oceanic Fisheries Co., Ltd., the business supervisor of
fishery project in Ghana, the leader of fishery project in Gambia, and the chairman and general manager of
Shandong Zhonglu Aquatic Marine Co., Ltd. From March 3, 2016, he served as the deputy general manager of the
Company. Since June 7, 2018, he has served as the general manager of the Company. From January 22, 2019, he
serves as a director and general manager of the Company.
Jiang Lu, Bachelor of Laws and a senior lawyer. He was served as independent directors in Shandong Hengtong
Chemical Co., Ltd. and Shandong Shanda WIT Science and Technology Co., Ltd; lawyer of Jinan Jingji Laws
Firm, Shandong Yuanxin Law Firm, Partner of Shandong Jun Yi Da Law Firm, and Partner of Shandong Deyi
48
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Junda Law Firm; he currently works as a partner of Grandall Law Firm (Jinan). And he serves as independent
director of the Company since 19 May 2016.
Song Xiliang, a PHD, Prof. of Accountancy. He works as accounting professor in Shandong University of Finance
and Economics, member of a council in Chinese Institute of Finance and Cost for Young and mid-career
Professionals and Shandong Chamber of Accounting. He also works as independent directors of Weihai Huadong
Automation Co., Ltd., Qingdao Sentury Tire Co., Ltd., Shandong Minren Freda Pharmaceutical Co., Ltd. and
Ningbo Weike Optoelectronics Co., Ltd.; he act as independent director of the Company since 19 May 2016.
Liang Shanglei, has a college degree, and is a member of the Communist Party of China. He once served as an
officer of the Political Office of the Communications Regiment of the 54th Base of the Second Artillery Corps,
political instructor of the Seventh Battalion of Jinan Detachment of the Shandong Armed Police Corps, director
and deputy political commissar of the Political Department of the Shandong Armed Police Corps Hospital,
principal staff member of Capital Operations and Revenue Management Division of the Shandong Provincial
SASAC, and the deputy director of the Propaganda, Letters and Visits Office (Party Committee Propaganda and
Mass Work Department)of the Shandong Provincial SASAC, and the secretary of the Disciplinary Committee of
Shandong Zhonglu Oceanic Fisheries Co., Ltd. From November 19, 2020, he served as the deputy general
manager of the Company; from December 29, 2020, he served as the employee director and deputy general
manager of the Company; from February 2, 2021, he has been serving as the employee director, deputy general
manager and secretary of the board of the Company.
2. Supervisor
Liu Bing, graduate degree, master of economics, certified public accountant, asset appraiser, member of the
Communist Party of China, he joined the work in September 2008 and once served as a member of the Scientific
Research Institute of the Audit Office of Shandong Province, deputy director of the Hainan Provincial Taxation
Administration; senior business manager of Finance and Accounting Department of SDIC; and deputy director
and senior business manager of the Finance Department of Shandong State-owned Assets Investment Holdings
Co., Ltd. He is currently the director of the Audit Department of Shandong State-owned Assets Investment
Holdings Co., Ltd., and concurrently serving as Chairman of the Board of Supervisors of Shandong
Transportation Group Co., Ltd., supervisor of Shandong Light Industry Supply and Marketing Co., Ltd., and
Supervisory Committee of the Company of Zhongtai Xincheng Asset Management Co., Ltd. Since May 16, 2019,
he has been the chairman of the Supervisory Committee of the Company.
Huang Wei, a master of economics, holds a university degree, is a member of the Communist Party of China.
Used to be the director of channel business of Pacific Life Insurance Jinan Branch, the director of channel
business and deputy general manager of Aviva-Cofco Jinan Branch, the chief representative of ERGO Insurance
Group Jinan Representative Office, the deputy general manager of Shandong Dongyin Investment Co., Ltd., and
the deputy general manager of Shandong Juneng Investment Co., Ltd.; currently serves as the deputy director of
risk management department of Shandong State-owned Assets Investment Holdings Co., Ltd.; serves as a
supervisor of the Company from January 22, 2019.
49
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Qiu Hong, university degree, member of the CPC. She served as director of the GM Office, deputy director of
department of party work, deputy director of the discipline inspection department, director of the discipline
inspection department, and director of department of party work of the Company; now she serves as Director of
the Commission for Discipline Inspection. She serves as staff supervisor of the Company since 29 December
2017.
3. Senior executive
Meng Fanyong, junior college, economist, member of the Communist Party of China, and member of the
Company’s party committee, he joined the work in July 1989, once served as the deputy chief of the Import and
Export Department of Shandong Aquatic Enterprise Group Corporation, deputy manager of Shandong Wanxiang
Aquatic Products Co., Ltd., general manager of Shandong Zhonglu Oceanic (Yantai) Foods Co., Ltd., president of
Shandong Zhonglu Oceanic (Yantai) Foods Co., Ltd., and president of Shandong Zhonglu Oceanic Refrigeration
Co., Ltd. Since May 16, 2019, he has been serving as the deputy general manager of the Company.
Fu Chuanhai, holds a master’s degree. He used to be an auditing project manager and deputy manager of
Shandong Zhengyuan Hexin Certified Public Accountants; a deputy director of the financial department of Himin
Group; and a deputy director of the auditing center of Linuo Group; chief accountant of China Resources
Shandong Pharmaceutical Co., Ltd.; and chief financial officer of Zhongtai Xincheng Asset Management Co., Ltd.
Since January 4, 2019, he has been the chief financial officer of the Company.
Post-holding in shareholder’s unit
√Applicable □Not applicable
Whether receiving
Start dated of End date of remuneration from
Name Name of shareholder’ s units Position
office term office term shareholder’ s units
or not (Y/N)
Standing
Committee of
the Party
Lu Lianxing Shandong State-owned Assets Investment Committee, Y
Director and
secretary of
the Board
Lu Xiaonan Shandong State-owned Assets Investment Supervisor Y
Director of
Liu Bing Shandong State-owned Assets Investment audit Y
department
Deputy
director of the
Huang Wei Shandong State-owned Assets Investment risk Y
management
dept.
Post-holding in other unit
√Applicable □Not applicable
Whether
receiving
Position Start dated of End date of office
Name Name of other units remuneration
office term term
from other units
or not (Y/N)
50
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Jiang Lu Grandall (Jinan) Law Firm Partner Y
Professor of
Song Xiliang Shandong University of Finance Y
Accounting
Shandong Rongyue Financial Holdings Co.,
Lu Xiaonan GM N
Ltd.
Punishment of securities regulatory authority in recent three years to the company’s current and outgoing directors, supervisors and
senior management during the reporting period
□ Applicable √ Not applicable
IV. Remuneration for directors, supervisors and senior executives
Decision-making procedures, recognition basis and payment for directors, supervisors and senior executives
In accordance with relevant requirement and regulation of “Code of Corporate Governance for Listed Companies” from CSRC, the
remuneration plan for directors, supervisors and senior executives of the Company was proposed by remuneration and appraisal
committee of the Board, and being deliberated by 7th meeting of 3rd session of the Board held on 14 February 2008 and approved in
Annual Shareholders’ General Meeting of 2007 held on 18 March 2008.
Remuneration for directors, supervisors and senior executives in reporting period
In 10 thousand Yuan
Whether
Total remuneration
Post-holding remuneration obtained from
Name Title Sex (F/M) Age
status obtained from the related party of
Company the Company
(Y/N)
Currently in
Lu Lianxing Chairman M 55 0Y
office
Currently in
Wang Huan Director/ GM M 52 65.72 N
office
Currently in
Lu Xiaonan Director M 47 0Y
office
Independent Currently in
Jiang Lu M 61 4N
director office
Independent Currently in
Song Xiliang M 55 4N
director office
Director/ Currently in
Liang Shanglei M 48 38.95 N
Deputy GM office
Chairman of
Currently in
Liu Bing Supervisory M 38 0Y
office
Committee
Currently in
Huang Wei Supervisor F 41 0Y
office
Currently in
Qiu Hong Supervisor F 53 27.19 N
office
Currently in
Meng Fanyong Deputy GM M 51 49.02 N
office
Currently in
Fu Chuanhai CFO M 48 44.86 N
office
Director/Deputy
Li Ming GM/Secretary of M 55 Leave office 47.07 N
the Board
Total -- -- -- -- 280.81 --
Delegated equity incentive for directors, supervisors and senior executives in reporting period
□ Applicable √ Not applicable
51
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
V. Employees of the Company
1. Numbers of the employee, professional constitution and education background
Serving staff in parent company (person) 196
Serving staff in main subsidiaries (person) 766
Total serving staff (person) 962
Total staff in payroll in current period (person) 962
Retired staff with charges paid by the parent company and main
261
subsidiaries (person)
Professional constitution
Type Number
Production personnel 708
Sales personnel 29
Technicians personnel 19
Financial personnel 34
Administrative personnel 172
Total 962
Education background
Type Number
Master’s degree 22
Bachelor degree 79
Junior college 120
Technical secondary school 202
High school or below 539
Total 962
2. Remuneration policy
The Company formulated a management mechanism of remunerations, and paying salaries to employees on time.
3. Training plan
Exercising multi-style training for senior executives, financial staff and technicians according to their own situation and working
demands as well as pre-job training
4. Labor outsourcing
□ Applicable √ Not applicable
52
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Section X. Corporate Governance
I. Basic state of corporate governance
In reporting period, by strictly followed requirement of relevant laws and regulations of “Company Law”,
“Securities Laws”, “Rules of Corporate Governance for Listed Company”, “Standard Operation Guide of Stock
Listing in Main Board of Shenzhen Stock Exchange” and related normative documents, the Company constantly
improve structure of the corporate governance, and further to regulated company operation as well as enhancing
corporate governance. General Meeting, the Board Meeting and Supervisory Meeting are convening under the
regulations, directors and supervisors are earnestly perform their duties and carry out due diligence. The Company
believes that in the reporting period, there are no difference between actual condition of corporate governance and
relevant requirements of CSRC and “Company Law”.
Is there any difference between the actual condition of corporate governance and relevant regulations about corporate governance for
listed company from CSRC?
□Yes √ No
There are no differences between the actual condition of corporate governance and relevant regulations about corporate governance
for listed company from CSRC.
II. Independent of the Company relative to controlling shareholders’ in aspect of businesses,
personnel, assets, institution and finance
1. Business independence: production and administrative management are totally separated with controlling
shareholders, and no horizontal competition being found with controlling shareholders;
2. Personnel independence: the Company has an independent HR system and completed system of salary
management, and has a self-governed staff team. Senior executives of GM, deputy GM, financial principal and
secretary of the Board are not serves in controlling shareholders’ unit and other enterprise controlled by
shareholders’ unit except for office-holding as director, supervisor, and all of them are receiving remuneration
from the Company. Financial staffs are not taking a part-time in controlling shareholders’ unit and other enterprise
controlled by shareholders’ unit.
3. Assets integrity: the Company has completed and separated assets with clear-defined property relations. There
are no capital occupations by controlling shareholders being found and assets of the Company are totally
independent of its controlling shareholders.
4. Institutional independence: the Company owes a completed organization structure and separated totally with
controlling shareholders in institution; shareholders’ general meeting, the Board and supervisory committee
running independently and has an independent decision-making ability.
5. Financial independent: the Company owes independent financial department and personnel, has completed and
independent financial calculation system, qualified standardized financial accounting mechanism and has ability
to making decisions in aspect of finance. Open a bank account and levy a tax independently.
53
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
III. Horizontal Competition
□ Applicable √ Not applicable
IV. In the report period, the Company held annual shareholders’ general meeting and
extraordinary shareholders’ general meeting
1. Annual Shareholders’ General Meeting in the report period
Ratio of investor
Session of meeting Type Date Date of disclosure Index of disclosure
participation
“Annual General
Meeting of 2019”
(No.: 2020-13)
Annual General published on China
AGM 48.09% May 25, 2020 May 26, 2020
Meeting of 2019 Securities Journal,
Hong Kong
Commercial Daily
and Juchao Website
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
V. Responsibility performance of independent directors in report period
1. The attending of independent directors to Board meetings and shareholders’ general meeting
The attending of independent directors
Whether
Times He/She have
Times
Times attending the Times be not attended
Times Times present attending the
Independent attending the Board Meeting absent from the Board
attending the a proxy to the Shareholders
director Board Meeting by the Board Meeting in
Board on-site Board General
in the period communicatio Meeting person for two
Meeting
n consecutive
times (Y/N)
Jiang Lu 6 0 5 1 0N 1
Song Xiliang 6 1 5 0 0N 1
Explanation of absent the Board Meeting for the second time in a row
2. Objection for relevant events from independent directors
Whether independent directors come up with objection about company’s relevant matters or not
□ Yes √ No
Independent directors has no objections for relevant events in reporting period
3. Other explanation about responsibility performance of independent directors
Whether the opinions from independent directors have been adopted or not
√ Yes □ No
Explanation on advice that accepted/not accepted from independent directors
In accordance with relevant rules and requirements from “Company Law”, “Guiding Opinions for Establishment
of Independent Director Mechanism for Listed Company” and “Article of Association”, independent directors of
the Company is serious to performing the duties given by laws, regulations, article of associations and mechanism
54
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
of independent directors; they proactively present the Board Meeting and shareholders’ general meeting, examine
and guild the operation of the Company, kept eyes on normalization of the operation, independently performed
duties with all efforts, propose several professional advice in aspect of the mechanism perfection and routine
operation decisions, furthermore, carried out independent opinions for significant events which plays a necessary
role in perfecting supervisory system and protecting legal interest of the Company and whole shareholders.
VI. Responsibility performance of subordinate special committee of the Board in report
period
(i) Auditing Committee:
1. Conduct a regular meeting
In reporting period, totally five meetings are held by audit committee of the Board, and fully discuss the “Annual
Report 2019”, “1st Q Report of 2020”, “Semi-Annual Report of 2020”, “3rd Q Report of 2020”, changes of the
accounting policy and changing the book-keeping currency from overseas subsidiary respectively.
2. Final report of the auditing works for year of 2020 from WUYIGE Certified Public Accountants LLP
Auditing committee took an all-around review on auditing works for year of 2020 and after standard unqualified
auditor’s report and relevant documents issued by WUYIGE Certified Public Accountants LLP while all auditing
procedures completed, auditing committee held the first meeting of 2021 and they believes that the WUYIGE CPA
is able to exercise relevant auditing procedures and quality controlling system of the CPA in line with new
auditing rules, the CPA owns good business qualities and fulfill their duties to complete vary auditing works.
Therefore, auditing committee submit to the Board for WUYIGE CPA re-engagement as the auditing body for year
of 2021 and auditing organization for internal control as well.
(ii) Nomination Committee
During the reporting period, the nominations committee of the board of directors has convened one meeting which
seriously reviewed the qualification of director and senior executives’ candidates in accordance with the
requirements of "Nomination Committee Implementing Rules"
(iii) Remuneration and Appraisal Committee
Remuneration and appraisal committee hold one meeting in the reporting period, and according to the requirement
of Implementing Rules of Remuneration and Appraisal Committee, they seriously review the Management
Methods on Remuneration for Directors and Senior Executives and the Measures for Management of Performance
Appraisal for Senior Executive during the Year and Term of Office.
VII. Works from Supervisory Committee
Whether the Company has risks or not in reporting period that found in supervisory activity from supervisory committee
□ Yes √ No
Supervisory committee has no objection about supervision events in reporting period
VIII. Appraisal and incentive mechanism for senior executives
Check on senior employees by the Board based on the Measure of Operation Evaluation that approved in Shareholders’ General
Meeting
55
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
IX. Internal Control
1. Details of major defects in IC appraisal report that found in reporting period
□Yes √ No
2. Self-appraisal Report of Internal Control
Disclosure date of full internal control
March 19, 2121
appraisal report
Disclosure index of full internal control
www.cninfo.com.cn
appraisal report
The ratio of the total assets of units
included in the scope of evaluation
accounting for the total assets on the 99.65%
company's consolidated financial
statements
The ratio of the operating income of
units included in the scope of evaluation
accounting for the operating income on 98.96%
the company's consolidated financial
statements
Defects Evaluation Standards
Category Financial Reports Non-financial Reports
Major deficiencies:
a) violation of state laws and
regulations, such as environmental
pollution;
Major deficiencies: b) project decision-making process is
a. fraud of directors, supervisors and not scientific, wrong decision-making
senior management; caused by lack of democratic
b. Material misstatements found in current decision-making process;
financial statements by the external audit c) brain drain of managers or
which are not found in the process of technicians;
internal control; d) frequent negative news on media;
c. the supervision of audit committee and e ) the results of internal control
internal audit service to internal control is evaluation especially major
invalid. deficiencies and significant
Significant deficiencies: The deficiencies have not been rectified
Qualitative criteria misstatements caused by single deficiency and reformed;
or together with other deficiencies that f) significant business is lack of system
cannot be timely prevented or found and control or systematic-ness is invalid.
corrected in the financial report and has Significant deficiencies: The
not reached or has exceed the major deficiencies caused by single
deficiencies but still should be taken into deficiency or together with other
account by the management; other deficiencies of which the severity,
circumstances determined by the degree of direct or potential negative impact
influence. have not reached or has exceed the
Common deficiencies: other internal major deficiencies but still should be
control deficiencies do not constitute taken into account by the management;
major or significant deficiencies other circumstances determined by the
degree of influence.
Common deficiencies: other internal
control deficiencies do not constitute
major or significant deficiencies.
Compare the misstatements and missing Compare the amount of direct property
reports (i.e. amount affected by internal loss with certain ratio of total profits in
control deficiencies) of some subjects in the company’s current consolidated
Quantitative criteria the financial reports that may cause or financial statements, and determine the
have caused by internal control type of deficiencies in internal control
deficiencies with certain ratio of total as follows:
profits in the company’s current
consolidated financial statements, and it should be judged to be major
56
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
determine the type of deficiencies in deficiency if the amount of direct
internal control as follows: property loss is more than 5% of total
it should be judged to be major deficiency profits;
if the amount affected by internal control it should be judged to be significant
deficiencies is more than 5% of total deficiency if the amount of direct
profits; property loss is more than 3% but less
it should be judged to be significant than 5% (including 5%) of total
deficiency if the amount affected by profits;
internal control deficiencies is more than it should be judged to be common
3% but less than 5% (including 5%) of deficiency if the amount of direct
total profits; property loss is less than 3%
it should be judged to be common (including 3%) of total profits;
deficiency if the amount affected by
internal control deficiencies is less than
3% (including 3%) of total profits;
Amount of significant defects in
0
financial reports
Amount of significant defects in
0
non-financial reports
Amount of important defects in financial
0
reports
Amount of important defects in
0
non-financial reports
X. Auditing report of internal control
√Applicable □Not applicable
Deliberation section of auditing report of IC
In our opinion, the Company (Zhonglu), in line with Basic Norms of Enterprises Internal Control and relevant regulations, shows
an effectiveness internal control of financial report in all major aspects.
Disclosure details of audit report of
Disclosed
internal control
Disclosure date of audit report of
March 19, 2021
internal control (full-text)
Index of audit report of internal
www.cninfo.com.cn
control (full-text)
Opinion type of auditing report of
Standard unqualified
IC
Whether the non-financial report
No
had major defects
Issued a modified audit opinions for internal control
□Yes √ No
Auditing report of internal control issued by CPA shows the same opinion as self-evaluation report issued by the Board
√ Yes □ No
57
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Section XI. Corporation bonds
Whether or not the Company public offering corporation bonds in stock exchange, which undue or without payment in full at
maturity on the approval date for annual report disclosed
No
- 58 -
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Section XII．Auditor's Report
DAXIN SHEN ZI [2021] No. 3-10041
To the Shareholders of Shandong Zhonglu Oceanic Fisheries Co., Ltd:
I. Opinion
We have audited the financial statements of Shandong Zhonglu Oceanic Fisheries Co., Ltd (hereafter referred to
as “the Company”), which comprise the consolidated and the Company's balance sheets as at December 31, 2020,
the consolidated and the Company's statements of income, the consolidated and the Company's statements of cash
flows and the consolidated and the Company's statements of changes in equity for the year then ended, and notes
to the financial statements.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the
Company as at December 31, 2020, and of its financial performance and cash flows for the year then ended in
accordance with Accounting Standards for Business Enterprises.
II. Basis for Opinion
We conducted our audit in accordance with Chinese Certified Public Accountants Auditing Standards. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Company in accordance with the Code of
Ethics for Chinese Certified Public Accountants and have fulfilled our other ethical responsibilities in accordance
with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
III. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
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山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
A. Revenue recognition
1.The Matter
As disclosed in note 3.23the policy of revenue accounting and note 5.30 of amount of revenue.
In 2020, Amount of operating revenue of the Company is RMB 966.21million ,Since revenue is a key indicator of
the company's profit, the management may have significant risk of misstatement in terms of revenue, so we
identify revenue recognition as a key audit item.
2.Audit response
Our audit procedures aimed at Revenue recognition are mainly include:
(1) Understand, evaluate and test the design and implementation of internal control related to revenue recognition
and to conduct a walk through test for company, Check whether the relevant internal control system is effectively
implemented;
(2) Review revenue recognition principles and methods,Combine the essence of the company's business with “the
five-step method”, Check and analyze contract signing methods and contents under different business models,
Analyze the rights and obligations of the contracting parties, Check the performance obligations to identify the
performance obligations within a period of time and at a certain point in the performance of the performance of
the judgment in accordance with the provisions of the accounting standards for enterprises;
(3) Check the authenticity of the revenue, check the revenue confirmation basis such as: sales contract, outgoing
order, value statement or statement, transportation order, customs declaration data, bill of lading, etc., obtains your
company's credit policy and interview sales department personnel Whether the credit policy of major customers
has been changed this year, and assess whether your company’s revenue recognition meets the requirements of the
Accounting Standards for Business Enterprises based on the post-period collection of accounts receivable；
(4) Perform a cut-off test to check whether there is an intertemporal income by taking a sample of revenue
transactions recorded around the balance sheet date;
(5) Implement confirmation procedures for major customers, extract enough samples to confirm the amount and
balance of receivables and advance receivables, and confirm the rationality of revenue recognition.
B. The impairment of inventory
1.The Matter
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山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
As disclosed in note 3.12 the policy of inventory accounting and note 5.6 inventory book balance and provision
for diminution in value of inventories, the Company held RMB 342.59million of inventory book balance as well
as RMB 3.70million of impairment reserve,and RMB 338.89 million of the carrying amount,of which accounted
for 26.90% of total assets at December 31 2020. In view of the significant amount of inventory, and the process of
making allowances for falling prices of inventories involves significant management judgement, we identified the
book balance and provision for diminution in value of inventories as a key audit matter.
2.Audit response
Our audit procedures aimed at inventory impairment preparations are mainly include:
(1)Understand, evaluate and test the design and implementation of internal control related to inventory
management and impairment reserve for company;
(2) Supervise the inventory, check the quantity and status of the inventory and the expiration date of the product;
And in the follow-up audit process checked the sales and collection of inventory;
(3) Obtain the age list of inventory at the end of period,and conduct an analytical review of the long-age inventory
to confirm whether the provision for inventory depreciation is reasonable;
(4)Check the implementation of relevant accounting policies and the changes in the inventory impairment of the
previous year, and analyze whether the provision for inventory impairment is sufficient. obtain the latest product
sales prices before and after the balance sheet date, for the inventory that has been sold after the balance sheet date
We took a sample and compared the actual selling price of the sample with the estimated selling price;.
(5) Obtain management's relevant basis for impairment calculation,check the critical data and recalculate to
evaluate the accuracy of management's impairment calculation process, and review whether the financial
statements are adequately and appropriately disclosed.
IV. Other Information
The directors of the Company are responsible for the other information. The other information comprises all of the
information included in the annual report other than the financial statements and our auditor’s report thereon.
- 61 -
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Our opinion on the financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
V. Responsibilities of the Directors and Those Charged with Governance for the Financial Statements
The directors of the Company are responsible for the preparation of financial statements that give a true and fair
view in accordance with Accounting Standards for Business Enterprises, and for such internal control as the
directors determine is necessary to enable the preparation of the financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the Company or to cease operations or have no
realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
VI. Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with auditing standards will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with auditing standards, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
A. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
- 62 -
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
B. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.
C. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the directors.
D. Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause
the Company to cease to continue as a going concern.
E. Evaluate the overall presentation, structure and content of the financial statements, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
F. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express an opinion on the financial statements. We are responsible for the
direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
- 63 -
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
WUYIGE CERTIFIED PUBLIC ACCOUNTANTS LLP.
Certified Public Accountant of China zhongbenqing
(Engagement partner)
Certified Public Accountant of China zhanglifa
China . Beijing
Date: March 17, 2021
- 64 -
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Consolidated Balance Sheet
Prepared by：Shandong Zhonglu Oceanic Fisheries Co., Ltd. Dec 31,2020 Unit：RMB Yuan
Item Note As at 31/12/2020 As at 31/12/2019
Current assets:
Cash at bank and on hand 5.1 255,811,982.21 186,011,644.29
Financial assets held for trading 5.2 5,000,000.00
Derivative financial assets
Notes receivable
Accounts receivable 5.3 66,263,029.81 70,003,394.30
Receivables for financing
Prepayments 5.4 17,764,804.55 17,350,069.13
Other receivables 5.5 2,293,236.85 4,343,207.56
Including:Interest receivable
Dividends receivable
Inventories 5.6 338,885,629.06 375,744,116.36
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 5.7 14,567,946.82 32,027,587.58
Total current assets 700,586,629.30 685,480,019.22
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments
Other equity instrument investments 5.8
Other non-current financial assets
Investment property 5.9 31,435,009.43 32,761,086.11
Fixed assets 5.10 506,290,822.70 551,167,599.49
Construction in process 5.11 3,705,815.70
Productive biological assets
Oil and gas assets
Intangible assets 5.12 12,811,879.55 13,196,284.54
Development expenditures
Goodwill
Long-term deferred expenses 5.13 317,044.17 435,134.13
Deferred tax assets 5.14 1,744,636.98 1,845,872.82
Other non-current assets 5.15 2,719,397.06 3,640,847.49
Total non-current assets 559,024,605.59 603,046,824.58
Total of assets 1,259,611,234.89 1,288,526,843.80
Legal representativeLegal：lulianxing Person in charge of accounting function：fuchuanhai Person in charge of
accounting department：leilixin
- 65 -
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Consolidated Balance Sheet（Continued)
Prepared by：Shandong Zhonglu Oceanic Fisheries Co., Ltd. Dec 31,2020 Unit：RMB Yuan
Item Note As at 31/12/2020 As at 31/12/2019
Current liabilities:
Short-term loans 5.16 41,268,275.50 51,662,365.00
Financial liabilities held for trading
Derivative financial liabilities
Notes payable
Accounts payable 5.17 69,897,839.19 94,725,231.68
Advances from customers 18,477,646.54
Contract liabilities 5.18 12,453,619.79
Employee benefits payable 5.19 41,862,349.06 49,149,654.32
Taxes and surcharges payable 5.20 2,825,413.78 3,597,925.54
Other payables 5.21 8,487,724.32 8,634,438.40
Including:Interest payable
Dividends payable
Held-for-sale liabilities
Non-current liabilities due within one year
Other current liabilities 5.22 108,248.84
Total current liabilities 176,903,470.48 226,247,261.48
Non-current liabilities:
Long-term loans
Bonds payable
Including: Preference shares
Perpetual loans
Other long-term payables
Long-term employee benefits payable 5.23 1,243,452.93 1,378,471.70
Provisions
Deferred income 5.24 14,488,797.24 15,764,480.48
Deferred tax liabilities 5.14 1,451,751.23
Other non-current liabilities
Total non-current liabilities 17,184,001.40 17,142,952.18
Total liabilities 194,087,471.88 243,390,213.66
Shareholders' equity:
Share capital 5.25 266,071,320.00 266,071,320.00
Other equity instruments
Including: Preference shares
Perpetual loans
Capital reserve 5.26 284,054,997.75 284,054,997.75
Less:treasury shares
Other comprehensive income 5.27 -12,783,539.13 707,156.17
Special reserve
Surplus reserve 5.28 21,908,064.19 21,908,064.19
Retained earnings 5.29 343,997,929.71 314,460,431.58
Equity attributable to parent company 903,248,772.52 887,201,969.69
Minority interests 162,274,990.49 157,934,660.45
Total equity 1,065,523,763.01 1,045,136,630.14
Total liabilities and equity 1,259,611,234.89 1,288,526,843.80
Legal representativeLegal：lulianxing Person in charge of accounting function：fuchuanhai Person in charge of
accounting department：leilixin
- 66 -
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Balance Sheet
Prepared by：Shandong Zhonglu Oceanic Fisheries Co., Ltd. Dec 31,2020 Unit：RMB Yuan
Item Note As at 31/12/2020 As at 31/12/2019
Current assets:
Cash at bank and on hand 32,186,883.39 56,205,332.78
Financial assets held for trading 5,000,000.00
Derivative financial assets
Notes receivable
Accounts receivable 14.1 7,407,636.45 29,071,151.64
Receivables for financing
Prepayments 1,873,295.83 4,729,985.40
Other receivables 14.2 204,498,840.72 181,768,872.70
Including:Interest receivable
Dividends receivable 14.2 101,777,374.94 94,566,287.92
Inventories 49,561,762.59 34,787,467.34
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 2,174,139.54 2,079,593.94
Total current assets 302,702,558.52 308,642,403.80
Non-current assets:
Debt investments
Other debt investments
Long-term receivables 4,411,879.43 5,196,204.31
Long-term equity investments 14.3 232,189,455.23 232,189,455.23
Other equity instrument investments
Other non-current financial assets
Investment property 31,435,009.43 32,761,086.11
Fixed assets 54,478,042.63 58,708,493.74
Construction in process
Productive biological assets
Oil and gas assets
Intangible assets 790,045.68 846,324.29
Development expenditures
Goodwill
Long-term deferred expenses 88,996.85
Deferred tax assets
Other non-current assets 394,857.06 1,279,247.49
Total non-current assets 323,699,289.46 331,069,808.02
Total of assets 626,401,847.98 639,712,211.82
Legal representativeLegal：lulianxing Person in charge of accounting function：fuchuanhai Person in
charge of accounting department：leilixin
- 67 -
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Balance Sheet (Continued)
Prepared by：Shandong Zhonglu Oceanic Fisheries Co., Ltd. Dec 31,2020 Unit：RMB Yuan
Item Note As at 31/12/2020 As at 31/12/2019
Current liabilities:
Short-term loans
Financial liabilities held for trading
Derivative financial liabilities
Notes payable
Accounts payable 7,330,041.56 6,504,914.36
Advances from customers 2,161,006.77
Contract liabilities 2,228,473.01
Employee benefits payable 10,254,765.98 16,431,213.09
Taxes and surcharges payable 674,445.26 452,563.73
Other payables 78,050,679.94 88,931,206.55
Including:Interest payable
Dividends payable
Held-for-sale liabilities
Non-current liabilities due within one year
Other current liabilities 71,483.32
Total current liabilities 98,609,889.07 114,480,904.50
Non-current liabilities:
Long-term loans
Bonds payable
Including: Preference shares
Perpetual loans
Other long-term payables
Long-term employee benefits payable 875,940.65 984,566.68
Provisions
Deferred income
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 875,940.65 984,566.68
Total liabilities 99,485,829.72 115,465,471.18
Shareholders' equity:
Share capital 266,071,320.00 266,071,320.00
Other equity instruments
Including: Preference shares
Perpetual loans
Capital reserve 279,115,900.17 279,115,900.17
Less:treasury shares
Other comprehensive income
Special reserve
Surplus reserve 19,184,672.34 19,184,672.34
Retained earnings -37,455,874.25 -40,125,151.87
Total equity 526,916,018.26 524,246,740.64
Total liabilities and equity 626,401,847.98 639,712,211.82
Legal representativeLegal：lulianxing Person in charge of accounting function：fuchuanhai Person in charge of
accounting department：leilixin
- 68 -
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Consolidated Statement of Income
Prepared by：Shandong Zhonglu Oceanic Fisheries Co., Ltd. For the year ended 31 December 2020 Unit：RMB Yuan
Year ended Year ended
Item Note
31/12/2020 31/12/2019
1. Operating income 5.30 966,213,019.66 1,128,951,902.68
Less: Operating costs 5.30 878,417,354.27 948,853,930.90
Taxes and surcharges 5.31 2,324,086.97 3,133,193.01
Selling and distribution expenses 5.32 3,669,759.70 24,928,000.04
General and administrative expenses 5.33 49,476,821.86 63,613,565.72
Research and development expenses 5.34 57,924.28 274,338.75
Finance expenses 5.35 22,961,222.69 4,648,252.61
Including:Interest expenses 5.35 2,264,468.56 4,119,308.06
Interest income 5.35 666,925.40 1,032,203.87
Add: Other income 5.36 24,237,447.14 23,209,608.02
Investment income ("-" for loss) 5.37 15,287.67
Including: Investment income from associates and joint
ventures
Income from derecognition of
financial assets measured at amortised cost
Net exposure hedging gains ("-" for loss)
Gain from fair value changes ("-" for loss)
Credit impairment losses ("-" for loss) 5.38 -324,078.98 -364,245.40
Impairment on assets ("-" for loss) 5.39 -2,613,583.91 -4,630,333.82
Gains from disposal of assets ("-" for loss) 5.40 52,840.06
2. Operating profits ("-" for loss) 30,673,761.87 101,715,650.45
Add: Non-operating income 5.41 10,758,569.39 336,071.70
Less:Non-operating expenses 5.42 658,478.99 358,618.18
3. Profit before tax ("-" for loss) 40,773,852.27 101,693,103.97
Less:income tax expenses 5.43 2,217,037.41 2,918,559.26
4. Net profit ("-" for net loss) 38,556,814.86 98,774,544.71
Categorized by going concern basis 38,556,814.86 98,774,544.71
1. Profit or loss from continuing operations 38,556,814.86 98,774,544.71
2. Profit or loss from discontinued operations
Categorized by ownership 38,556,814.86 98,774,544.71
1. Net profit attributable to parent company 29,537,498.13 82,311,630.23
2. Profit/loss attributable to minority shareholders 9,019,316.73 16,462,914.48
5. Other comprehensive income net of tax -18,169,681.99 2,485,332.76
Total comprehensive income attributable to parent company -13,490,695.30 1,382,899.22
(1) Comprehensive income not to be reclassified to profit or loss
1) Changes in remeasurement of defined benefit obligations
2) Other comprehensive income not to be reclassified to profit or loss in equity
method
3) Fair value changes in other equity instrument investments
4) Fair value changes in the enterprise's own credit risk
(2) Comprehensive income to be reclassified to profit or loss -13,490,695.30 1,382,899.22
1) Other comprehensive income to be reclassified to profit or loss in equity method
2) Gain or loss from fair value changes of other debt instruments
3) The amount of financial assets reclassified to other comprehensive income
4) Credit impairment provision of other debt investment
5) Cash flow hedging reserve
6) Currency translation difference -13,490,695.30 1,382,899.22
7) Others
Other comprehensive income attributable to minority share-holders, net of tax -4,678,986.69 1,102,433.54
6. Total comprehensive income 20,387,132.87 101,259,877.47
(1) Total comprehensive income attributable to parent company 16,046,802.83 83,694,529.45
(2) Total comprehensive income attributable to minority shareholders 4,340,330.04 17,565,348.02
7. Earnings per share
(1) Basic earnings per share 0.11 0.31
(2) Diluted earnings per share 0.11 0.31
Legal representativeLegal：lulianxing Person in charge of accounting function：fuchuanhai Person in charge of
accounting department：leilixin
- 69 -
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Statement of Income
Prepared by：Shandong Zhonglu Oceanic Fisheries Co., Ltd. For the year ended 31 December 2020 Unit：RMB Yuan
Year ended Year ended
Item Note
31/12/2020 31/12/2019
1. Operating income 14.4 113,685,121.82 170,356,633.00
Less: Operating costs 14.4 100,927,361.83 122,798,661.30
Taxes and surcharges 735,280.66 744,934.84
Selling and distribution expenses 307,386.37 6,373,920.42
General and administrative expenses 21,914,743.78 29,898,532.60
Research and development expenses
Finance expenses 5,006,502.72 -337,913.75
Including:Interest expenses 1,065,750.00 1,106,706.22
Interest income 331,901.98 471,726.01
Add: Other income 10,029,644.81 12,084,180.12
Investment income ("-" for loss) 14.5 7,896,264.69 2,725,025.89
Including: Investment income from associates and
joint ventures
Income from derecognition
of financial assets measured at amortised cost
Net exposure hedging gains ("-" for loss)
Gain from fair value changes ("-" for loss)
Credit impairment losses ("-" for loss) 607,054.03 -841,673.91
Impairment on assets -203,609.93 -547,839.65
Gains from disposal of assets ("-" for loss) 55,893.20
2. Operating profits ("-" for loss) 3,179,093.26 24,298,190.04
Add: Non-operating income 3,363.62 27,023.49
Less:Non-operating expenses 290,132.05 140,200.00
3. Profit before tax ("-" for loss) 2,892,324.83 24,185,013.53
Less:income tax expenses 223,047.21
4. Net profit ("-" for net loss) 2,669,277.62 24,185,013.53
Profit or loss from continuing operations ("-" for loss) 2,669,277.62 24,185,013.53
Profit or loss from discontinued operations ("-" for loss)
5. Other comprehensive income net of tax
(1) Comprehensive income not to be reclassified to profit or loss
1) Changes in remeasurement of defined benefit obligations
2) Other comprehensive income not to be reclassified to profit or
loss in equity method
3) Fair value changes in other equity instrument investments
4) Fair value changes in the enterprise's own credit risk
(2) Comprehensive income to be reclassified to profit or loss
1) Other comprehensive income to be reclassified to profit or loss in
equity method
2) Gain or loss from fair value changes of other debt instruments
3) The amount of financial assets reclassified to other comprehensive
income
4) Credit impairment provision of other debt investment
5) Cash flow hedging reserve
6) Currency translation difference
7) Others
6. Total comprehensive income 2,669,277.62 24,185,013.53
7. Earnings per share
(1) Basic earnings per share
(2) Diluted earnings per share
Legal representativeLegal：lulianxing Person in charge of accounting function：fuchuanhai Person in charge of
accounting department：leilixin
- 70 -
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Consolidated Statement of Cash Flows
Prepared by：Shandong Zhonglu Oceanic Fisheries Co., Ltd. For the year ended 31 December 2020 Unit：RMB Yuan
Year ended Year ended
Item Note
31/12/2020 31/12/2019
1. Cash flows from operating activities
Cash received from sales and services 961,184,995.14 1,137,807,547.33
Taxes and surcharges refunds 53,868,300.74 40,948,497.75
Cash received related to other operating activities 5.44 29,713,130.80 42,110,856.39
Total cash inflows from operating activities 1,044,766,426.68 1,220,866,901.47
Cash paid for goods and services 729,377,072.80 872,579,856.11
Cash paid to and for employees 169,022,381.13 173,125,879.15
Taxes and surcharges cash payments 12,515,547.83 14,144,537.13
Cash paid related to other operating activities 5.44 20,605,714.27 50,720,086.41
Total cash outflows from operating activities 931,520,716.03 1,110,570,358.80
Net cash flows from operating activities 113,245,710.65 110,296,542.67
2. Cash flows from investing activities：
Cash received from withdraw of investments 5,000,000.00
Cash received from investment income 15,287.67
Net cash received from disposal of \property, plant and equipement,intangible
21,653,747.69 8,235.37
assets and other long-term assets
Net cash received from disposal of subsidiaries and other business units
Cash received related to other investing activities
Total cash inflows from investing activities 26,669,035.36 8,235.37
Cash paid for property, plant and equipement,intangible assets and other
33,188,538.60 75,638,420.93
long-term assets
Cash payments for investments 10,000,000.00
Net cash paid for acquiring subsidiaries and other business units
Cash paid related to other investing activities
Total cash outflows from investing activities 43,188,538.60 75,638,420.93
Net cash flows from investing activities -16,519,503.24 -75,630,185.56
3. Cash flows from financing activities:
Cash received from investments by others
Including: cash received by subsidiaries from minority shareholders'
investments
Cash received from borrowings 51,867,033.47 112,412,418.06
Cash received related to other financing activities
Total cash inflows from financing activities 51,867,033.47 112,412,418.06
Cash repayments for debts 62,615,304.72 140,351,397.37
Cash payments for distribution of dividends, profit and interest expenses 2,159,583.81 4,050,392.95
Including: dividends or profit paid by subsidiaries to minority
shareholders
Cash paid related to other financing activities
Total cash outflows from financing activities 64,774,888.53 144,401,790.32
Net cash flows from financing activities -12,907,855.06 -31,989,372.26
4. Effect of foreign exchange rate changes on cash and cash equivalents -12,686,379.14 -840,471.61
5. Net increase in cash and cash equivalents 71,131,973.21 1,836,513.24
Add: beginning balance of cash and cash equivalents 184,603,638.72 182,767,125.48
6. Ending balance of cash and cash equivalents 255,735,611.93 184,603,638.72
Legal representativeLegal：lulianxing Person in charge of accounting function：fuchuanhai Person in charge of
accounting department：leilixin
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山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Statement of Cash Flows
Prepared by：Shandong Zhonglu Oceanic Fisheries Co., Ltd. For the year ended 31 December 2020 Unit：RMB Yuan
Year ended Year ended
Item Note
31/12/2020 31/12/2019
1. Cash flows from operating activities
Cash received from sales and services 131,940,321.16 137,664,498.19
Taxes and surcharges refunds
Cash received related to other operating activities 12,775,989.67 28,420,446.80
Total cash inflows from operating activities 144,716,310.83 166,084,944.99
Cash paid for goods and services 78,227,835.29 93,241,677.36
Cash paid to and for employees 41,123,815.04 40,950,588.99
Taxes and surcharges cash payments 1,105,108.63 1,052,869.57
Cash paid related to other operating activities 45,320,001.25 15,468,351.42
Total cash outflows from operating activities 165,776,760.21 150,713,487.34
Net cash flows from operating activities -21,060,449.38 15,371,457.65
2. Cash flows from investing activities：
Cash received from withdraw of investments 5,000,000.00
Cash received from investment income 685,177.67
Net cash received from disposal of \property, plant and equipement,intangible
79,485.08
assets and other long-term assets
Net cash received from disposal of subsidiaries and other business units
Cash received related to other investing activities
Total cash inflows from investing activities 5,764,662.75
Cash paid for property, plant and equipement,intangible assets and other long-term
8,266,611.41 7,046,061.27
assets
Cash payments for investments 10,000,000.00
Net cash paid for acquiring subsidiaries and other business units
Cash paid related to other investing activities 9,783,160.00 14,595,624.89
Total cash outflows from investing activities 28,049,771.41 21,641,686.16
Net cash flows from investing activities -22,285,108.66 -21,641,686.16
3. Cash flows from financing activities:
Cash received from investments by others
Cash received from borrowings
Cash received related to other financing activities 32,182,168.08 4,000,000.00
Total cash inflows from financing activities 32,182,168.08 4,000,000.00
Cash repayments for debts
Cash payments for distribution of dividends, profit and interest expenses
Cash paid related to other financing activities 12,461,712.55
Total cash outflows from financing activities 12,461,712.55
Net cash flows from financing activities 19,720,455.53 4,000,000.00
4. Effect of foreign exchange rate changes on cash and cash equivalents -393,346.88 295,336.02
5. Net increase in cash and cash equivalents -24,018,449.39 -1,974,892.49
Add: beginning balance of cash and cash equivalents 56,205,332.78 58,180,225.27
6. Ending balance of cash and cash equivalents 32,186,883.39 56,205,332.78
Legal representativeLegal：lulianxing Person in charge of accounting function：fuchuanhai Person in charge of
accounting department：leilixin
- 72 -
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Consolidated Statement of Changes in Equity
Prepared by：Shandong Zhonglu Oceanic Fisheries Co., Ltd. For the year ended 31 December 2020 Unit：RMB Yuan
Year 2020
Equity attributable to shareholders of parent company
Item Other equity instruments Other Minority
Capital Less:treasury Special Surplus Retained Total equity
Share capital Preference Perpetual comprehensive Sub-total interests
Others reserve shares reserve reserve earnings
shares loans income
1. Ending balance of last year 266,071,320.00 284,054,997.75 707,156.17 21,908,064.19 314,460,431.58 887,201,969.69 157,934,660.45 1,045,136,630.14
Add: Impact from changes in accounting
policies
Impact from corrections of errors in
prior period
Business combination under
common control
Others
2. Beginning balance of current year 266,071,320.00 284,054,997.75 707,156.17 21,908,064.19 314,460,431.58 887,201,969.69 157,934,660.45 1,045,136,630.14
3. Movement for current year("-" for decrease） -13,490,695.30 29,537,498.13 16,046,802.83 4,340,330.04 20,387,132.87
(1) Total comprehensive income -13,490,695.30 29,537,498.13 16,046,802.83 4,340,330.04 20,387,132.87
(2) Shareholder's contributions and
withdrawals of captial
1) Common stock contributed by
shareholders
2) Capital contributed by other equity
instruments holders
3) Share-based payment recorded in
shareholder's equity
4) Others
(3) Profits distribution
1) Appropriation of surplus reserve
2) Distribution to shareholders
3) Others
(4) Internal transfer within shareholder's
equity
1) Conversion of capital reserve into
share capital
2) Conversion of surplus reserve into
share capital
3) Recover of loss by surplus reserve
4) Change of defined benefit obligations carried
forward to retained earnings
5) Other comprehensive income carried
forward to retained earnings
6) Others
(5) Special reserve
1) Accrual of special reserve
2) Utilization of special reserve
(6) Others
4. Ending balance of current year 266,071,320.00 284,054,997.75 -12,783,539.13 21,908,064.19 343,997,929.71 903,248,772.52 162,274,990.49 1,065,523,763.01
Legal representativeLegal：lulianxing Person in charge of accounting function：fuchuanhai Person in charge of accounting department：leilixin
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山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Consolidated Statement of Changes in Equity (Continued)
Prepared by：Shandong Zhonglu Oceanic Fisheries Co., Ltd. For the year ended 31 December 2020 Unit：RMB Yuan
Year 2019
Equity attributable to shareholders of parent company
Item Other equity instruments Other Minority
Share Capital Less:treasury Special Surplus Retained Total equity
Preference Perpetual comprehensive Sub-total interests
capital Others reserve shares income
reserve reserve earnings
shares loans
1. Ending balance of last year 266,071,320.00 284,054,997.75 -675,743.05 21,908,064.19 232,148,801.35 803,507,440.24 140,369,312.43 943,876,752.67
Add: Impact from changes in accounting
policies
Impact from corrections of errors in prior
period
Business combination under common control
Others
2. Beginning balance of current year 266,071,320.00 284,054,997.75 -675,743.05 21,908,064.19 232,148,801.35 803,507,440.24 140,369,312.43 943,876,752.67
3. Movement for current year("-" for
1,382,899.22 82,311,630.23 83,694,529.45 17,565,348.02 101,259,877.47
decrease）
(1) Total comprehensive income 1,382,899.22 82,311,630.23 83,694,529.45 17,565,348.02 101,259,877.47
(2) Shareholder's contributions and
withdrawals of captial
1) Common stock contributed by
shareholders
2) Capital contributed by other equity
instruments holders
3) Share-based payment recorded in
shareholder's equity
4) Others
(3) Profits distribution
1) Appropriation of surplus reserve
2) Distribution to shareholders
3) Others
(4) Internal transfer within shareholder's
equity
1) Conversion of capital reserve into share capital
2) Conversion of surplus reserve into share capital
3) Recover of loss by surplus reserve
4) Change of defined benefit obligations
carried forward to retained earnings
5) Other comprehensive income carried
forward to retained earnings
6) Others
(5) Special reserve
1) Accrual of special reserve
2) Utilization of special reserve
(6) Others
4. Ending balance of current year 266,071,320.00 284,054,997.75 707,156.17 21,908,064.19 314,460,431.58 887,201,969.69 157,934,660.45 1,045,136,630.14
Legal representativeLegal：lulianxing Person in charge of accounting function：fuchuanhai Person in charge of accounting department：leilixin
- 74 -
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Statement of Changes in Equity
Prepared by：Shandong Zhonglu Oceanic Fisheries Co., Ltd. For the year ended 31 December 2020 Unit：RMB Yuan
Year 2020
Other equity instruments Other
Item Less:treasury Special Surplus Retained
Share capital Preference Perpetual Capital reserve comprehensive Total equity
Others shares reserve reserve earnings
shares loans income
1. Ending balance of last year 266,071,320.00 279,115,900.17 19,184,672.34 -40,125,151.87 524,246,740.64
Add: Impact from changes in accounting policies
Impact from corrections of errors in prior
period
Others
2. Beginning balance of current year 266,071,320.00 279,115,900.17 19,184,672.34 -40,125,151.87 524,246,740.64
3. Movement for current year("-" for decrease） 2,669,277.62 2,669,277.62
(1) Total comprehensive income 2,669,277.62 2,669,277.62
(2) Shareholder's contributions and withdrawals of
captial
1) Common stock contributed by shareholders
2) Capital contributed by other equity instruments
holders
3) Share-based payment recorded in shareholder's
equity
4) Others
(3) Profits distribution
1) Appropriation of surplus reserve
2) Distribution to shareholders
3) Others
(4) Internal transfer within shareholder's equity
1) Conversion of capital reserve into share capital
2) Conversion of surplus reserve into share capital
3) Recover of loss by surplus reserve
4) Change of defined benefit obligations carried
forward to retained earnings
5) Other comprehensive income carried forward to
retained earnings
6) Others
(5) Special reserve
1) Accrual of special reserve
2) Utilization of special reserve
(6) Others
4. Ending balance of current year 266,071,320.00 279,115,900.17 19,184,672.34 -37,455,874.25 526,916,018.26
Legal representativeLegal：lulianxing Person in charge of accounting function：fuchuanhai Person in charge of accounting department：leilixin
- 75 -
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Statement of Changes in Equity (Continued)
Prepared by：Shandong Zhonglu Oceanic Fisheries Co., Ltd. For the year ended 31 December 2020 Unit：RMB Yuan
Year 2019
Other equity instruments Other
Item Less:treasury Special Surplus Retained
Share capital Preference Perpetual Capital reserve comprehensive Total equity
Others shares reserve reserve earnings
shares loans income
1. Ending balance of last year 266,071,320.00 279,115,900.17 19,184,672.34 -64,310,165.40 500,061,727.11
Add: Impact from changes in accounting
policies
Impact from corrections of errors in prior
period
Others
2. Beginning balance of current year 266,071,320.00 279,115,900.17 19,184,672.34 -64,310,165.40 500,061,727.11
3. Movement for current year("-" for decrease） 24,185,013.53 24,185,013.53
(1) Total comprehensive income 24,185,013.53 24,185,013.53
(2) Shareholder's contributions and withdrawals
of captial
1) Common stock contributed by shareholders
2) Capital contributed by other equity
instruments holders
3) Share-based payment recorded in
shareholder's equity
4) Others
(3) Profits distribution
1) Appropriation of surplus reserve
2) Distribution to shareholders
3) Others
(4) Internal transfer within shareholder's equity
1) Conversion of capital reserve into share
capital
2) Conversion of surplus reserve into share
capital
3) Recover of loss by surplus reserve
4) Change of defined benefit obligations carried
forward to retained earnings
5) Other comprehensive income carried forward
to retained earnings
6) Others
(5) Special reserve
1) Accrual of special reserve
2) Utilization of special reserve
(6) Others
4. Ending balance of current year 266,071,320.00 279,115,900.17 19,184,672.34 -40,125,151.87 524,246,740.64
Legal representativeLegal：lulianxing Person in charge of accounting function：fuchuanhai Person in charge of accounting department：leilixin
- 76 -
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
SHANDONG ZHONGLU OCEANIC FISHERIES CO., LTD.
Notes to the Financial Statements
(All amounts in Chinese Renminbi Yuan unless otherwise stated)
1. Company profile
1.1 The Company's registered place, organization structure and the address of head quarter.
Shandong Zhonglu Oceanic Fisheries Co., Ltd. (the “Company”), whose registered address is No.29, Miaoling
Road, Qingdao, Shandong, was incorporated as a liability limited company in the People’s Republic of China on
July 30, 1999 according to the document of Lu Ti Gai Zi [1999] No.85 issued by Shandong Development and
Reform Commission, and the holding company of the Company is Shandong Fisheries Enterprise Group General
Corporation. On June 26, 2000, the Company issued 120 million domestic listed foreign shares (B shares) to
foreign investors with face value of 1 Yuan per share according to the document of Zheng Jian Fa Xing Zi [2000]
No.82 issued by the China Securities Regulatory Commission. The B shares, Zhonglu B with stock code of
200992, have been listed on the Shenzhen Stock Exchange since July 24, 2000.
The basic structure of the company: shareholders committee, board of directors, board of supervisors, the board of
directors office, human resources, financial management department, administration department, audit department,
Ocean shipping management department, disciplinary committee office, party group work department, risk
management and control department (legal affairs department).
1.2 The Company's business nature and main operation activities, like its industry, primary product or service,
customers' nature, trading strategy and supervisory environment etc.
Operating activity: ocean fisheries
Main product: tuna and its products.
Operating scope: aquatic products breeding, processing and sale; goods import and export business within
approved scope; ice machine manufacture and sale; refrigeration equipment manufacture, installation,
maintenance; refrigeration; load and unload services; housing lease.
Advance licensed operating scope: marine and oceanic fishing;
1.3 The approver and approval date of the financial reporting.
The financial statement is predetermined and authorized by the board of company on 17th March, 2021.
1.4 The consolidation scope of financial year 2020 consolidated financial statements includes the Company and its subsidiaries
(hereafter referred to as "the Company").
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山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Consolidation scope of financial statement includes: 4 wholly-owned subsidiaries: Shandong Zhonglu Oceanic
Fisheries Transportation Co., Ltd.; Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd.; HABITAT
INTERNATIONAL CORP; Shandong Zhonglu Haiyan Oceanic Fisheries Co., Ltd. ; 4 sub-subsidiaries: LAIF
FISHERIES COMPANY LIMITED; Shandong Zhonglu Oceanic Fisheries Refrigeraton Co., Ltd; AFRICA STAR
FISHERIES LIMITED; ZHONG GHA FOODS COMPANY LIMITED; 1 operational entity through control over
operating leases: YAW ADDO FISHERIES COMPANY LIMITED. More information is disclosed in
Note.7“ Equity disclosure in other entities”.
2. Basis of preparation of financial statements
2.1 Basis of preparation
On the basis of going concern and transactions and events actually occurred, the Company prepares its financial
statements with the following accounting policies and accounting estimates in accordance with the Accounting
Standards for Business Enterprises – basic Standards, specific accounting standards and other relevant provisions
(hereinafter collectively known as "Accounting Standards for Business Enterprises" or "CAS")
2.2 Going concern
Within at least 12 months of this report, the company should maintain its operational capacity without matters that
have potential impact on ability of the continuing operations.
3. Significant accounting policies and accounting estimates
3.1 Declaration on compliance with the Accounting Standards for Business Enterprises
The financial statements have been prepared in compliance with the Accounting Standards for Business
Enterprises to truly and completely reflect the Company’s financial position as of 31 December 2020 and its
operating results, cash flows and other relevant information for the year ended 31 December 2020.
3.2 Accounting period
The financial year of the Company is from January 1 to December 31 of each calendar year.
3.3 Operating cycle
The Company’s operating cycle is 12 months in each calendar year and it classifies the assets and liabilities'
liquidity by operating cycle.
3.4 Functional currency
The Company's functional currency is Chinese Renminbi.
3.5 Business combination
78
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
3.5.1 Business combinations involving enterprises under common control
In a business combination involving enterprises under common control, if the acquirer pays for the business combination in cash, by
transferring of non-cash assets or assuming liabilities, the initial investment cost is the holding share of the acquiree's equity in the
ultimate controlling party's consolidated financial statements measured at the carrying amounts at the acquisition date. If the acquirer
issues equity instruments for the business combination, the acquirer measures the share capital by the par value of the shares issued.
The difference between the original investment cost and the carrying amount (or the total par value of shares issued) will be adjusted
to the capital reserve. If the capital reserve is insufficient to absorb the difference, the remaining amount shall be deducted from the
retained earnings.
3.5.2 Business combinations involving enterprises not under uncommon control
In a business combination involving enterprises not under common control, the combination costs are the
aggregate of the fair values of the assets paid, the liabilities incurred or assumed and the equity instruments issued
by the acquirer in exchange for control over the acquiree at the acquisition date. At the acquisition date, the
acquired assets, liabilities and contingent liabilities of the acquiree that meet the recognition criteria are measured
at their fair value. The Company recognises the difference of the combination costs in excess of its interest portion
in the fair value of the net identifiable assets acquired from the acquiree as goodwill. The Company recognises the
difference of the combination costs less than its interest portion in the fair value of the net identifiable assets
acquired from the acquiree in the non-operating income for current period after reassessment.
3.6 Preparation of consolidated financial statements
3.6.1 The scope of consolidated financial statements
The Company incorporates all its subsidiaries (including individual entities under its control) into the scope of the
consolidated financial statements, including the enterprises controlled by the Company, divisible part in the
investees and structured entities.
3.6.2 Uniform accounting policies, balance sheet date and accounting period
If the subsidiaries adopt different accounting policies or accounting periods compared with those of the Company,
the Company makes necessary adjustments on the subsidiaries' financial statements according to its accounting
policies or accounting period when the consolidated financial statements are prepared.
3.6.3 The elimination in the preparation of consolidated financial statements
The consolidated financial statements are prepared based on the individual financial statements of the Company and its subsidiaries,
after elimination of the transactions incurred among the Company and the subsidiaries. The portion of a subsidiary’s equity that is not
79
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
attributable to the Company is treated as minority interests and presented in the consolidated balance sheet within equity. The equity
investment of the Company held by one subsidiary is treated as the Company's treasury shares and a deduction of the shareholders'
equity which is presented as "less: treasury shares" in the consolidated balance sheet within equity.
3.6.4 The accounting treatment for obtaining subsidiaries through a business combination
Where a subsidiary or business has been acquired through a business combination involving enterprises under
common control in the reporting period, the obtained subsidiary or business is deemed to be included in the
consolidated financial statements from the date they are controlled by the ultimate controlling party. Their assets,
liabilities, operating results and cash flows are included in the consolidated financial statements from the
beginning of the accounting period in which the acquisition occurred. Where a subsidiary or business has been
acquired through a business combination not involving enterprises under common control, their individual
financial statements are adjusted based on the fair value of identifiable net assets at the acquisition date when
preparing the consolidated financial statements.
3.6.5 The accounting treatment for disposal of equity investment in a subsidiary
In the consolidated financial statements, when the Company partly disposes its investment in a subsidiary without
losing its control on the subsidiary, the difference between the consideration received and its corresponding
portion of the net asset continually calculated from the purchase date or combination date should be adjusted to
the capital reserve and if the capital reserve is insufficient to absorb the difference, the remaining amount will be
deducted from the retained earnings.
If the Company loses its control on a investee because of disposing some portion of its equity investment in the
investee, when it prepares its consolidated financial statements, the remaining balance of its equity investment
will be remeasured at the fair value of the date at which it loses its control. The difference between the sum of the
consideration received and the fair value of the remaining equity investment, and its corresponding interest
portion of the net asset continually calculated from the purchase date or the combination date should be recorded
in the investment income of the current period, and be deducted to goodwill simultaneously. Other comprehensive
income (OCI) etc. relating to the investment in the former subsidiary will be transferred to the investment income
in the same period in which it loses its control.
3.7 Joint arrangement classification and accounting treatments
3.7.1 The classification of joint arrangement
Joint arrangements are classified as joint operations or joint ventures. A joint arrangement will be classified as joint operation when
the joint arrangement achieves not through an individual entity. Individual entity is an entity with individual identifiable finance
structure, including single legal entity and entity unqualified as legal entity but qualified as lawful entity. A joint arrangement is
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usually be classified as joint venture when the joint arrangement achieves through incorporating an individual entity. When changes
arising from relevant events or environment cause changes of the cooperative parties' rights and obligations in the joint arrangements,
the cooperative parties shall reassess the classification of the joint arrangements.
3.7.2 The accounting treatment of joint operations
The Company acted as a party participating in joint operations, recognises the following items relating to its interests in the joint
operations and accounts for them in accordance with related requirements of Accounting Standards for Business Enterprises: (a) Its
solely-held assets and solely-assumed liabilities, and its share of any assets and liabilities held jointly; (b) Its revenue from the sale of
its share of the output arising from the joint operation; (c) Its share of the revenue from the sale of the output by the joint operation;
(d) Its own expenses and its share of any expenses incurred jointly.
The Company acted as a party involving in joint operations without common control power, accounts for its investments referring to
the treatment method of joint operation participants if it is entitled to relevant assets and undertake relevant liabilities of the joint
operations, otherwise, it accounts for its investments according to related requirements of Accounting Standards for Business
Enterprises.
3.7.3 The accounting treatment of joint ventures
The Company accounts for its investments in accordance with Accounting Standards for Business Enterprises No.2 - Long-term
Equity Investment if it is one of the participating parties with common control power in joint ventures. And the Company accounts
for its investments according to its influence extent on the joint ventures if it is not one of the participating parties with common
control power involved in the joint ventures.
3.8 Cash and cash equivalents
The cash in the Company's statement of cash flows is cash on hand and deposits that can be readily drawn on
demand. Cash equivalents in the statement of cash flows are short-term, highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of change in value.
3.9 Foreign currency transactions and translation of financial statements denominated in foreign currency
3.9.1 Translation of foreign currency transactions
The Company records foreign currency transactions in RMB for accounting purpose using an approximate
exchange rate of the spot exchange rate at the date when the transactions occurs. At the balance sheet date,
monetary items denominated in foreign currency are translated to RMB by adopting the prevailing exchange rate
on that date. Foreign exchange difference between the prevailing exchange rate on that date and the prevailing
exchange rate on initial recognition or on the previous balance sheet date are recognised in profit or loss for the
current period, except the foreign exchange arising from specific loan denominated in foreign currency qualified
as capital expenditure and included in the cost of related assets. Non-monetary items denominated in foreign
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currency that are measured at historical cost are still translated at amount in functional currency exchanged at the
prevailing exchange rate at the transaction date. Non-monetary items denominated in foreign currency that are
measured at fair value are translated using the exchange rate at the date when fair value was determined and the
difference between the translated functional currency amount and the prior translated amount on initial
recognition or on the previous balance sheet date are recorded in profit or loss for the current period or other
comprehensive income.
3.9.2 The translation of financial statements denominated in foreign currency
If the Company's controlled subsidiaries, joint ventures and associates etc. adopt different reporting currency, their
financial statements denominated in foreign currency shall be translated to financial statements in RMB when
preparing consolidated financial statements. The assets and liabilities are translated to RMB amounts using the
spot exchange rate at the balance sheet date. Items of the equity, except for "retained earnings ", are translated at
the spot exchange rate at the dates when such items occurred. The revenue and expenditures in the statement of
income are translated using an approximate exchange rate of the spot exchange rate at the transaction date. The
difference arising from foreign currency financial statements translation is presented in other comprehensive
income at the consolidated balance sheet within equity. Items of the statement of cash flows aretranslated by an
approximate exchange rate of the spot exchange rate which is determined by a systemic method at the dates when
they incurred. Effect arising from changes of exchange rates on cash and cash equivalents is presented separately
in the statement of cash flows. When disposing of foreign operations, exchange differences of foreign currency
financial statements attributable to the foreign operations are transferred to profit or loss for the current period
entirely or in proportion with the disposal portion of the foreign operations.
3.10 Financial instruments
3.10.1 Classification and reclassification of financial instruments
Financial instruments are the contracts under which the financial assets of an entity are formed and
correspondingly the financial liabilities or equity instruments of any other entity are formed.
3.10.1.1 Financial assets
The Company classifies a financial asset as subsequently measured at amortised cost that meets both of the
following conditions:
a) the financial asset is held within a business model whose objective is to collect contractual cash
flows;
b) the contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding.
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The Company classifies a financial asset as subsequently measured at fair value through other comprehensive
income that meets both of the following conditions:
a) the financial asset is held within a business model whose objective is achieved by both collecting contractual
cash flows and selling the financial asset.
b) the contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding.
The Company may make an irrevocable election at initial recognition to designate non-traded equity instruments
as subsequently measured at fair value through other comprehensive income. The designation is made on the basis
of single investment which meets the equity instrument definition from the aspect of the issuer.
The Company classifies a financial asset as subsequently measured at fair value through profit or loss unless it is
subsequently measured at amortised cost or measured at fair value through other comprehensive income. The
Company may make an irrevocable election at initial recognition to designate a financial asset as subsequently
measured at fair value through profit or loss if doing so eliminates or significantly reduces an accounting
mismatch.
When the Company changes its business model for managing financial assets, all affected financial assets are
reclassified from the first day of the next subsequent reporting period after the business model changes and the
reclassification is applied prospectively from the reclassification date, meaning that any previously recognised
gains, losses (including impairment gains or losses) or interest will not be restated.
3.10.1.2 Financial liabilities
Financial liabilities are classified at initial recognition as: a) financial liabilities measured at fair value through
profit or loss; b) financial liabilities that arise when transfers of financial assets do not qualify for derecognition or
when the continuing involvement approach applies; and financial liabilities as subsequently measured at
amortised cost. All financial liabilities are not be reclassified.
3.10.2 Measurement of financial instruments
The Company measures financial instruments at fair value upon their initial recognition. The related transaction
fees for the financial assets and financial liabilities subsequently measured at fair value through profit or loss are
charged in profit or loss directly. The related transaction fees for other financial assets and financial liabilities are
included in their initial costs. The Company measures the accounts receivable and notes receivable deriving from
selling goods or providing services at their transaction price if the accounts receivable and notes receivable do not
contain a significant financing component or the Company applies the practical expedient not considering the
significant financing component. The subsequent measurement of a financial instrument is determined by its
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classification.
3.10.2.1 Financial assets
A. Financial assets measured at amortised cost
The financial assets are measured subsequently at amortised cost using the effective interest method after initial
recognition. The gains or losses calculated by the effective interest method which do not belong to any hedging
relationships are recognised in profit or loss when the financial assets are derecognised, reclassified, amortizied or
impaired.
B. Financial assets measured at fair value through profit or loss
After initial recognition, the financial assets are measured subsequently at fair value except that they belong to any
hedging relationships, and any gains or losses including interests and dividends are recognised in profit or loss.
C. Financial assets measured at fair value through other comprehensive income
After initial recognition, the financial assets are measured subsequently at fair value. The interest calculated by the
effective interest method, impairment losses or gains and exchange gains or losses are recognised in profit or loss
and other gains or losses are recognised in other comprehensive income. The accumulated gains or losses
recognised in other comprehensive income will be reclassified in profit or loss upon derecognition of the financial
assets.
3.10.2.2 Financial liabilities
A. Financial liabilities measured at fair value through profit or loss
The category includes financial liabilities held for trading, derivative financial liabilities and financial liabilities
designated as measured at fair value through profit or loss. After initial recognition, financial liabilities in this
category are measured at fair value and the gains and losses from changes of fair value of financial liabilities held
for trading are recognised in profit or loss except those relating to hedging accounting. For financial liabilities
designated as measured at fair value through profit or loss, the change of fair value due to the change of the
Company's self-credit risk are recognised in other comprehensive income, and other changes of fair value are
recognised in profit or loss. If the recognition in other comprehensive income for the change of fair value due to
the change of the financial liabilities' self-credit risk will cause or enhance an accounting mismatch in profit or
loss, the Company recognises all gains or losses from the financial liabilities in profit or loss.
B. Financial liabilities measured at amortised cost
After initial recognition, financial liabilities in this category are measured at amortised cost using the effective
interest method.
3.10.3 Measurement method of financial instruments' fair value
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For financial instruments that active markets exist, the Company uses the quoted prices in the active markets to
determine their fair value. If there is no active market for the financial instruments, the Company uses valuation
techniques to determine their fair value. The valuation techniques mainly include market approach, income
approach and cost approach. In limited conditions, if there is no sufficient updated information to determine the
fair value, or the range of estimated fair value is so wide that the cost indicates the best estimate of the fair value,
the cost may represent the appropriate estimate of the fair value within the distribution range. The Company
makes use of all available information concerning the investee's business performance and operation to determine
if the cost may represent its fair value.
3.10.4 The recognition basis and measurement approach for transfer of financial assets and liabilities
3.10.4.1 Financial assets
A financial asset of the Company is derecognised when it meets one of the following conditions: a) the contractual
rights to the cash flows from the financial asset expire, or b) the financial asset has been transferred and the
Company transfers substantially all the risks and rewards of ownership of the financial asset; c) the financial asset
has been transferred, although the Company neither transfers nor retains substantially all the risks and rewards of
ownership of the financial asset, it has not retained control.
If the Company neither transfers nor retains substantially all the risks and rewards of ownership of a financial
asset, and has retained control, it continues to recognise the financial asset to the extent of its continuing
involvement in the financial asset, and recognises related financial liabilities correspondingly.
On derecognition of a financial asset in its entirety, the difference between the following two items is recognised
in profit or loss:
(a) the carrying amount measured at the date of derecognition.
(b) the sum of the consideration received and the accumulated change amount of fair value recognised directly in
other comprehensive income for the corresponding derecognition financial asset (relating to a financial asset
measured at fair value through other comprehensive income) .
If a financial asset is partly transferred, the entire carrying amount of the financial asset is split into the
derecognised part and retained part according to their respective fair value at the derecognition date, and the
difference between the following two items is recognised in profit or loss:
(a) the carrying amount measured at the date of derecognition which is allocated to the derecognized part;
(b) the sum of the consideration received for the derecognised part and the accumulated change amount of fair
value which has been recognised in other comprehensive income belonging to the corresponding derecognised
part (relating to a financial asset measured at fair value through other comprehensive income).
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3.10.4.2 Financial liabilities
When the present obligation specified in the contract is extinguished, the Company derecognises a financial
liability (or a part of a financial liability).
When a financial liability (or a part of a financial liability) is derecognised, the Company recognises the difference
between the carrying amount of the financial liability (or a part of the financial liability) and the consideration
paid (including any non-cash assets transferred or liabilities assumed) in profit or loss.
3.11 The approach and accounting treatment of expected credit losses (ECL)
3.11.1 The approach of expected credit losses
The Company recognises loss allowance based on ECL on financial assets that are measured at amortized cost
(including accounts receivable), financial assets measured at fair value through other comprehensive income
(including receivables for financing), lease receivables, and contract assets.
The Company assesses whether the credit risk on financial instruments have increased significantly since initial
recognition at each balance sheet date and divides the credit risk impairment process into three stages and adopts
different accounting treatment:
(a) In the first stage, the credit risk on financial instruments has not significantly increased since initial recognition.
The Company measures the loss allowance for the financial instruments at an amount equal to 12-month expected
credit losses, and calculates interest income by applying the effective interest rate to the gross carrying amount of
the financial assets.
(b) In the second stage, the credit risk on financial instruments has significantly increased since initial recognition
which are not subject to impairment. The Company measures the loss allowance for the financial instruments at an
amount equal to the lifetime expected credit losses, and calculates interest income by applying the effective
interest rate to the gross carrying amount of the financial assets.
(c) In the third stage, the financial instruments are subject to impairment since initial recognition. The Company
measures the loss allowance for the financial instruments at an amount equal to the lifetime expected credit losses,
and calculates interest income by applying the effective interest rate to the net carrying amount (gross carrying
amount minus the impairment allowance) of the financial instruments.
3.11.1.1 The approach of expected credit losses for the financial instruments with a low risk of default
The Company assumes that the credit risk on a financial instrument has not increased significantly since initial
recognition directly without comparing the credit risk with that on initial recognition if the financial instrument is
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determined to have a low credit risk at the balance sheet date.
If the financial instrument has a a low risk of default, the debtor has a strong capacity to meet its contractual cash
flow obligations in the near term and adverse changes in economic and business conditions in the longer term may,
but will not necessarily, reduce the ability of the debtor to fulfil its contractual cash flow obligations, the financial
instrument is considered to have a low credit risk.
3.11.1.2 The approach of expected credit losses for accounts receivable, lease receivables, and contract assets
The Company adopts simplified approach, i.e. the measurement of lifetime ECL, to determine the impairment
losses for accounts receivable and contract assets that result from transactions within the scope of Accounting
Standards for Business Enterprises No. 14- Revenue, and the lease receivables that result from transactions within
the scope of Accounting Standards for Business Enterprises No. 21- Lease, regardless whether they contain a
significant financing component or not.
The Company assesses whether the credit risk on a financial instrument has increased significantly or not since
initial recognition on an individual or group basis according to the characteristics of the financial instruments. The
Company segments notes receivable and accounts receivable into several groups on the basis of shared credit risk
characteristics to calculate ECL, and the segmentation bases are determined as follows:
(a) The company has combined receivables between all enterprises within the scope of the report, and there are
not expected credit loss or provisions for credit loss.
(b) The company has combined accounts receivable outside of enterprises within the scope of the report, made
aging of account receivable and expected credit loss rate comparison table of the entire duration, also calculated
the expected credit loss by referring to historical credit loss experience, combining with the current situation and
predicting economy in the future.
(c) If the sufficient evidence of a significant increase in credit risk from single accounts receivable could be
obtained, the company shall confirm the expected credit loss for the account receivable and make provisions for
loss in accordance with the balance between the carrying amount of account receivables and the present value of
the cash flows expected to be received.
3.11.1.3 The approach of expected credit losses for other financial instruments
The Company adopts the normal approach, i.e. the three-stage model, to determine the impairment losses for other
financial instruments except aforementioned financial assets, like debt investments, other debt investments, other
receivables, long-term receivables excluding lease receivables etc.
3.11.2 The accounting treatment of expected credit losses
The Company remeasures ECL at each balance sheet date to reflect the credit risk change of financial instruments after initial
recognition and recognises the additional or reverse amount of the impairment allowance in profit or loss of the current period as
impairment losses or gains, which will be deducted from the carrying amount of the financial assets in the balance sheet, or recorded
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to the provisions for loan commitments or financial guarantee contracts or in other comprehensive income for financial assets
measured at fair value through other comprehensive income depending on the category of the financial instruments.
3.12 Inventories
3.12.1 Categories of inventories
Inventories are the finished goods or commodities that the Company holds to sell, the work in progress in
production process, and the material and goods consumed during the production process or service rendering
process in daily operation. Inventories include raw materials, revolving materials,low-value consumables etc.,
commodities and goods shipped in transit etc.
3.12.2 Measurement of inventories upon delivery
Weighted average method is used to measure the actual costs of inventories upon delivery.
3.12.3 Provision for diminution in value of inventories
At each balance sheet date, inventories are measured at the lower of cost and net realisable value. When the cost
of inventory exceeds its net realizable value, provision for diminution in value of inventories is recognised. The
Company usually recognises provision for diminution in value of inventories on the basis of a single inventory
item. For the inventory items of large quantity and low price, the Company recognises provision for diminution in
value of inventories based on inventory categories.
(a) Finished goods’net realizable value is the amount of an estimated price minus the estimated cost of sales and
relevant taxes.
(b) Materials held for production are based on cost measurement when the finished products’ net realizable value
is higher than cost; the material price decline shows that the finished products’ net realizable value is lower than
cost, net realizable value is calculated as an estimated sales price minus the estimated cost, the cost of sales and
the relevant taxes amount.
(c) the materials held for sale may use the market price as net realizable value.
3.12.4 Inventory count system
The Company adopts the perpetual inventory system.
3.12.5 Amortization methods of low-value consumables
Low-cost consumables are amortized by the equal-split amortization method.
3.13 contract liabilities
The Company presents the obligation to transfer goods or services to a customer for which it has received (or the
amount is due) from the customer as a contract liability.
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3.14 Long-term equity investment
3.14.1 Determination of initial investment cost
Long-term equity investment acquired through a business combination: For a business combination involving
enterprises under common control, the initial investment cost of a long-term equity investment is the holding
share of the acquiree's equity in the ultimate controlling party's consolidated financial statements measured at the
carrying amounts at the acquisition date. For a business combination not involving enterprises under common
control, the initial investment cost of a long-term equity investment is the cost of acquisition determined at the
date of acquisition. For a long-term equity investment acquired in cash, the initial investment cost is the amount of
cash paid. For a long-term equity investment acquired by issuing equity securities, the initial investment cost is
the fair value of the equity securities issued. For a long-term equity investment acquired by debt restructuring, the
initial investment cost is determined according to related requirements of Accounting Standards for Business
Enterprises No. 12- Debt Restructuring. For a long-term equity investment acquired by exchange of non-cash
assets, the initial investment cost is determined according to related requirements of Accounting Standards for
Business Enterprises No. 7- Exchange of Non-monetary Assets .
3.14.2 Subsequent measurement and recognition of profit or loss
Where the Company is able to exercise control over an investee, the long-term equity investment is accounted for
using the cost method. Where the Company has investment in associates and joint ventures, the long-term equity
investment is accounted for using the equity method. Where portion of the long-term equity investment in an
associate is indirectly held through venture capital organizations, mutual funds, trust companies or similar entities
including investment-linked insurance funds, regardless whether these entities can exercise significant influence
on the investments, the Company treats the investment portion according to Accounting Standards for Business
Enterprises No. 22- Financial Instrument Recognition and Measurement and accounts for the remaining portion
using the equity method.
3.14.3 Basis for recognition of joint control or significant influence over an investee
Joint control of an investee is that the decision of activities that can significantly affect the arrangement's return
must require the unanimous consent of the parties sharing control, including sale and purchase of goods or
services, financial assets management, purchase and disposal of assets, research and development activity and
financing activities etc. The Company holding of 20%-50% voting capital of the investee presents it can exercise
significant influence over the investee. The Company usually can exercise significant influence over the investee
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even its voting capital less than 20% if it can meet one of the following situations: a) Appointing representatives
in the board of directors or similar governing body of the investee; b) Participating in the strategy and policy
decision process; c) Delegating management personnel; d) The investee relying on the Company's technique or
technical material; e) Significant transactions occur between the Company and the investee.
3.15 Investment property
Investment property of the Company includes land use rights and buildings leased to other party, and land use
rights held for resale after appreciation. Investment property is initially measured at acquisition cost, and is
subsequently measured using the cost method.
The buildings leased to third parties are depreciated using the straight line method according to the same
depreciation policy for fixed assets. The land use rights leased to third parties and land use rights held for resale
after appreciation are amortized using the straight line method according to the same amortization policy for
intangible assets.
3.16 Fixed assets
3.16.1 Recognition criteria for fixed assets
Fixed assets refer to tangible assets held for the purpose of producing commodities, services rendering, renting or
business administration with useful lives exceeding one accounting year. Fixed assets can be recognised when the
following criteria are met: a) It is probable that the economic benefits relating to the fixed assets will flow into the
Company; and b) The costs of the fixed assets can be measured reliably.
3.16.2 Classification and depreciation method of fixed assets
The categories of fixed assets mainly include: buildings, boats & nets, machinery & equipment, transportation equipment, furniture
and office equipment. The Company adopts the straight line method for depreciation. The useful life and residual value of an asset is
assessed based on its nature and the manner of use. At the end of each financial year, the useful lives, residual values and the
depreciation method are reviewed, and adjusted if there are variances with the original estimates. Other than fully depreciated assets
which are still in use and land individually measured and recorded, depreciation is provided for all fixed assets.
Category Depreciation period (years) Residual rate (%) Annual depreciation rate (%)
Buildings 20—40 0—10 2.25-5.00
Boats & nets 5—30 3—5 3.17-19.40
Machinery & equipment 8—20 0—10 4.50-12.50
Transportation equipment 5 0—10 18.00-20.00
Furniture and office equipment 5 0—10 18.00-20.00
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3.17 Construction in progress
The construction in progress of the Company includes self-construction and sub-contracting construction.
Construction in progress is transferred to fixed assets when it has reached the working condition for its intended
use. The recognition criteria of intended use include any of the followings: a) The tangible work of fixed assets
(including installation) have been entirely or substantively completed; b) Trial production or trial operation has
occurred whose outcome indicates the asset can be operated properly or manufacture quality product steadily; c)
No expenditure or insignificant expenditure occur subsequently for the constructed asset; d) The constructed asset
has achieved or substantively achieved the requirement of design or contract.
3.18 Borrowing costs
3.18.1 Recognition criteria for capitalization of borrowing costs
Borrowing costs are capitalized when they are directly attributable to the acquisition, construction or production
of a qualifying asset and included in the cost of related assets. Other borrowing costs are recognised as expenses
and recorded in profit or loss for the current period when incurred. Qualifying assets that meet conditions for
capitalization are fixed assets, investment property, inventory or other assets that take a substantial period of time
for construction or production in order to get ready for their intended use or sale.
3.18.2 Calculation of capitalization cost
Capitalization period refers to the period from commencement of capitalization of borrowing costs to its
termination. The period during which capitalization is suspended is excluded. Capitalization of borrowing costs is
suspended during periods in which the acquisition, construction or production of a qualifying asset is suspended
abnormally and when the suspension is for a continuous period of more than 3 months.
For designated borrowings, the amount of interest to be capitalized is the actual interest expense incurred on that
borrowing less any bank interest earned from unused funds of the designated borrowings or any investment
income on the temporary investment of those funds. For funds borrowed for general purpose, the amount of
interest to be capitalized on such borrowings is calculated by applying a capitalization rate to the weighted
average of the excess amounts of cumulative expenditures on the asset over and above the amounts of designated
borrowings. Capitalization rate is determined by calculating weighted average interest rate of general borrowings.
If there is any premium or discount of the borrowings, the interest cost shall be adjusted in every accounting
period by the amortized amount of premium or discount calculating by effective interest method.
Effective interest method is the method to calculate the amortization amount of premium or discount or interest
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expenses by the effective interest rate of the borrowings. The effective interest rate is the interest rate to discount
the future cash flow of the borrowing during its expected duration to the present carrying amount of the
borrowing.
3.19 Intangible assets
3.19.1 The measurement of intangible assets
The intangible assets shall be initially measured according to its cost. Acquisition costs of intangible assets
include purchase price and relevant expenditures. The invested cost of intangible assets contributed by investors
shall be determined according to the conventional value in the investment contract or agreement, except for those
of unfair value in the contract or agreement. If the conventional value in the investment contract or agreement is
unfair, the costs of intangible assets shall be their fair value. The costs of internally generated intangible assets
include the total development expenditures to bring the asset to its intended use.
The subsequent measurements for intangible assets are as follows: (a) The intangible assets with definite useful
life are amortized by straight line method and reviewed the useful life and amortization method at the end of each
year. Any discrepancy between the review and initial estimates shall be adjusted accordingly. (b) The intangible
assets with indefinite useful life are not amortized, and reviewed for the useful life at the end of each year. If there
are objective evidence indicating their useful life is definite, the Company shall estimate the useful life of the
intangible assets and amortize them by straight line method.
3.19.2 The assessment basis for indefinite useful life
Intangible assets without foreseeable period to bring economic benefits to the Company or with uncertain useful
life are classified as intangible assets of indefinite life. The judgment basis for indefinite life includes: (a) The
legal rights are derived from contractual rights or other legal rights, however there is no explicit useful life
indicated in the contracts or regulations; (b) Although considering the industry practice or demonstration from
related professionals comprehensively, the benefit period of the intangible assets still can't be decided.
At the end of each year, the Company reviews the intangible assets with indefinite useful life mainly using
bottom-to-top approach. The related departments who use the intangible assets will perform a basic review and
evaluate whether there are changes on the basis to determine indefinite useful life.
3.19.3 The specific criteria for research phase and development phase of internally generated projects, and the
specific criteria for capitalization of expenditure incurred during development phase.
Expenditure in the research phase is recognised as an expense in profit or loss for current period when it is
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incurred. Expenditure in the development phase of internally generated projects is capitalized if they meet the
criteria of intangible assets.
3.20 Impairment of long-term assets
At each balance sheet date, if there are impairment indications for the long-term assets including long-term equity investments,
investment property subsequently measured at cost model, fixed assets, construction in progress, productive biological assets
measured at cost, oil and gas assets, and intangible assets etc., the Company performs impairment test. If the outcome of impairment
test indicates the recoverable amount of the asset is lower than its carrying amount, the Company recognises the provision for
impairment based on the amount of the shortfall.
The recoverable amount of an asset is determined by the higher of the net amount after deducting the disposal costs from the asset's
fair value and the present value of the asset's estimated future cash flow. The provision for impairment of asset is estimated and
recognised on individual basis. If it is not possible to estimate the recoverable amount of the individual asset, the Company
determines the recoverable amount of the asset group to which the asset belongs. The asset group is the minimum portfolio of assets
that could generate cash inflow independently.
Impairment tests are conducted for goodwill presented in the financial statements separately at least at the end of every accounting
year regardless whether there are impairment indications or not. The carrying amount of goodwill arising from business combinations
is allocated to relevant asset groups or asset group portfolio. The related impairment loss is recognised if the impairment test
indicates the recoverable amount of the asset groups or asset group portfolio embodied the goodwill is lower than their carrying
amounts. The amount of impairment loss is firstly deducted from the carrying amount of goodwill embodied in the asset groups or
asset group portfolio, then be deducted from the carrying amounts of other assets' based on the proportions of their carrying amounts
in the asset group or asset groups portfolio.
The impairment losses of assets will not be reversed in subsequent periods once they are recognised.
3.21 Long-term deferred expenses
Long-term deferred expenses refer to expenses that have been paid but their benefit period is more than one year
(excluding one year). Long-term deferred expenses will be amortized in the benefit periods. If one long-term
deferred expense can't benefit the Company in the subsequent periods, the remaining balance of the long-term
deferred expense shall be recognised as expense in profit or loss for the current period.
3.22 Employee benefits
Employee benefits refer to all forms of consideration or compensation given by the Company in exchange for
service rendered by employees or for the termination of employment relationship. Employee benefits include
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short-term employee benefits, post-employment benefits, termination benefits and other long-term employee
benefits.
3.22.1 Short-time employee benefits
In the accounting period in which employees have rendered services, the Company recognizes the employee
benefits as liability, and charges to profit or loss for the current period, or includes in the cost of relevant assets in
accordance with other accounting standards. Welfare benefit are charged to profit or loss for the current period or
included in the cost of relevant assets when incurred. Welfare benefit in non-monetary forms is measured at fair
value. In the accounting period in which employees have rendered services, the Company recognizes the social
security contributions as liability according to regulations such as medical insurance, work injury insurance and
maternity insurance as well as housing funds, and charges to profit or loss for the current period or includes in the
cost of relevant assets.
3.22.2 Post-employment benefits
During the accounting period in which employees provide the service, the Company calculates the defined
contribution plans payable according to the basis and percentage required by local government, recognised as the
liability and charges to profit or loss for current period or includes in the cost of related assets. The Company
attributes the obligation incurred by defined benefits plans using the projected accumulated benefit unit credit
method to periods in which the employees rendered services and charges the obligation to profit or loss for the
current period or includes in the cost of related assets.
3.22.3 Termination benefits
Termination benefits provided by the Company to employees are recognised as an employee benefit liability and
charged to profit or loss for the current period at the earlier of the following dates: (a) The Company cannot
unilaterally withdraw the offer of termination benefits because of an employment termination plan or a
curtailment proposal; and (b) When the Company recognizes costs or expenses related to the restructuring that
involves the payment of termination benefits.
3.22.4 Other long-term employee benefits
If other long-term employee benefits provided by the Company to the employees meet the conditions for
classifying as a defined contributions plan, those benefits are accounted for in accordance with the above
requirements relating to defined contribution plan. Besides, net obligations or net assets of other long-term
employee benefits are recognised and measured in accordance with the above requirements relating to defined
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benefits plan.
3.23 Revenues
The Company recognises revenue at the allocated transaction price when it satisfies a performance obligation in a contract, i.e. the
customer obtains the control of related goods or services. Obtaining control of related goods means the ability to direct the use of,
and obtain substantively all the benefits from it. A performance obligation is the Company's a promise in a contract with a customer
to transfer to the customer a good or service (or a bundle of goods or services) that is distinct. The transactions price is the amount of
consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer,
excluding amounts collected on behalf of third parties and amounts to be expected to repay the customer.
A performance obligation satisfied over time or at a point of time is determined by the terms in the contract and the requirements of
relevant laws and regulations. If a performance obligation is satisfied over time, the Company will recognise revenue over time by its
progress towards complete satisfaction of the performance obligation. Otherwise the Company will recognise revenue at a point of
time when the customer obtains the control of related assets.
3.23.1 The company's revenue recognized at a certain point in time when controlling the relevant assets:
The company's purse seine fishery products are sold overseas. Generally, revenue is recognized after the fishery products are
delivered to customers and the right of collection is obtained; in the case of export sales through local countries, revenue is
recognized when tthe shipment orders and bills of lading are obtained.
The Company long-line fishery is transported back and sold domestically and trading parties confirm the change of the freight’s
ownership according to sales contracts and decision tables based on values. Financial department confirm the revenue on the basis of
sales contract, decision tables.
The process of the company’s aquatic products domestic sales: Domestic Sales Department (tuna sales center) ,according to domestic
customers’ fax or mail orders, issue delivery confirmation. The company delivers goods according to the invoice issued by the sales
department and signed by the warehouse management department, and confirms the sales revenue after the customer signs for it.
The oversea sales of the Company’s aquatic products processing: After the international trade department obtains the purchase
order from the foreign customer, it issues an export delivery confirmation and arranges the storage and transportation department to
stock the goods. The company confirms the sales revenue based on the export receipts such as the invoice, packing list, and customs
declaration.
3.23.2 The company's revenue recognized during the performance period:
The recognition procedure of the company’s cold storage revenue：After the warehouse management department obtains the
customer’s order, the goods will be issued to the customer to confirm the specific name, specification, number of pieces, weight and
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date of the goods after the goods are actually put in the warehouse. The warehouse management supervisor will sign and the
customer’s signature for confirmation. The number of storage days is the basis for billing to recognize revenue.
3.24 Contract costs
The contract costs of the Company include the incremental costs to obtain a contract and the costs to fulfil a contract. The
incremental costs of obtaining a contract are those costs that the Company incurs to obtain a contract with a customer that it would
not have incurred if the contract had not been obtained. If the Company expects to recover those costs, the costs will be recognised as
an asset.
If the costs incurred in fulfilling a contract with a customer are not within the scope of another standard like Accounting Standards
for Business Enterprises No. 1- Inventories, they will be treated as the costs to fulfil a contract and recognised as an asset when
meeting the following conditions:
(a) the costs relate directly to a contract or to an anticipated contract that the Company can specifically identify, including direct
labour, direct materials, allocations of costs that relate directly to the contract, costs that are explicitly chargeable to the customer
under the contract and other costs that are incurred only because the Company entered into the contract;
(b) the costs generate or enhance resources of the Company that will be used in satisfying performance obligations in the future; and
(c) the costs are expected to be recovered.
The Company records the costs to fulfil a contract as the inventory whose amortization period upon initial recognition is no longer
than one year or one common opertaing cycle, and records the costs to fulfil a contract as the other non-current assets whose
amortization period upon initial recognition is longer than one year or one common opertaing cycle.
The Company amortizes the assets recognised by the term of costs to obtain a contract and costs to fulfil a contract on a systematic
basis that is consistent with the revenue recognition to which the assets relate. The incremental costs of obtaining a contract are
recognised as an expense when incurred if the amortisation period of the asset that the Company otherwise would have recognised is
one year or less.
The Company recognises an impairment loss in profit or loss to the extent that the carrying amount of an asset recognised exceeds:
(a) the remaining amount of consideration that the Company expects to receive in exchange for the goods or services to which the
asset relates; less
(b) the costs that relate directly to providing those goods or services and that are estimated to incur.
When the impairment conditions no longer exist or have improved that make the total of (a) and (b) higher than carrying amount of
an asset, the Company will recognise in profit or loss a reversal of some or all of an impairment loss previously recognised. The
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increased carrying amount of the asset will not exceed the amount that would have been determined (net of amortisation) if no
impairment loss had been recognised previously.
3.25 Government grants
3.25.1 Category and accounting treatment of government grants
Government grants are the monetary assets and non-monetary assets received from the government without
consideration to be paid which are not including the capital injected by the government acted as an owner role.
Government grants in the form of monetary assets are measured for the received or receivable amount, while
government grants in the form of non-monetary assets are measured at fair value. When the fair value of
non-monetary assets can't be obtained reliably, the government grants are measured at nominal amount.
Government grants related to the Company's routine operation will be recorded in other income based on the
nature of its economic substance and government grants not related to the Company's routine operation will be
recorded in non-operating income or expenses.
If the government documents explicitly state that the government grants will be used to establish or form
long-term assets, the government grants will be classified as government grants related to assets. If there is no
explicit subsidy object in the government document, the portion related to long-term assets will be classified as
government grants related to assets and the rest portion will be classified as government grants related to income.
If the category of a government grant can't be distinguished reasonably, all the government grant will be classified
as government grants related to income. Government grants related to assets are recognised as deferred income
which are amortized in profit or loss for each period over the related assets' estimated useful period on a
systematic basis.
Except those grants which are classified as government grants related to assets, other government grants are
classified as government grants related to income. If the grant related to income is a compensation for related
expenses or losses to be incurred in subsequent periods, the grant is recognised as deferred income, and amortized
in profit or loss over the periods in which the related costs are recognised. If the grant related to income is a
compensation for related expenses or losses already incurred, the grant is recognised directly in profit or loss for
the current period.
When a bank receives the discount interest fund from the financial sector and then provides a loan to the
Company with preferential interest rate, the Company accounts for the loan at the actual received amount and
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related interest expenses will be calculated based on the principal and the preferential interest rate. When the
Company receives the discount interest fund from the financial sector directly, the discount interest fund will be
deducted from related borrowing cost.
3.25.2 The recognition timing for government grants
The government grants will be recognised when the Company meets the accompanying conditions of the
government grants which are entitled to be received. The receivable government grants will be recognised when
there are conclusive evidence to indicate the Company could meet all related requirements of the government
grants and the Company expects to receive the government grants in the future. Other government grants will be
recognised when the grant fund is received.
3.26 Deferred tax asset and deferred tax liability
3.26.1 Temporary differences arising from the difference between the carrying amount of an asset or liability
(asset or liability not recognised in balance sheet but the tax base is ascertained by the current tax laws and
regulation, the tax base is the temporary difference) and its tax base are recognised as deferred tax calculating by
the effective tax rate in the expected period to receive the asset or discharge the liability.
3.26.2 Deferred tax assets are recognised for deductible temporary differences to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences can be utilized and should be
recognised for deductible loss or tax reduction that could be carried forward in subsequent periods to the extent
that it is probable that taxable income will be available against which deductible loss or tax reduction can be
utilized. If it is probable that sufficient taxable profits will not be available in future periods to allow the benefit of
the deferred tax asset to be utilized, the carrying amount of the deferred tax asset is reduced.
3.26.3 The taxable temporary differences associated with investments in subsidiaries and associates shall be
recognised deferred tax liability; except the Company is able to control the timing of the reversal of the temporary
difference and it is probable that the temporary difference will not reverse in the foreseeable future. The
deductible temporary differences associated with investments in subsidiaries, associates, the corresponding
deferred tax asset is recognised when it is probable that the temporary difference will reverse in the foreseeable
future and it is probable that taxable profits will be available in the future against which the temporary difference
can be utilized.
3.27 Leases
3.27.1 The accounting treatment for operating lease
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The Company recognises lease payments for operating leases in profit or loss applying a straight-line basis in each
period over the lease term. The Company capitalized the initial direct expenses incurred which are amortizes in
profit or loss over the lease term on the same recognition basis as the lease income.
3.27.2 The accounting treatment for finance lease
The Company recognises the unearned finance income by the difference between the sum of finance lease
receivable and unguaranteed residual value, and their present value at the commencement date, which will be
recognised as lease income in the periods to collect lease payment. The initial direct expenses incurred relating to
the lease transaction will be included in the initial carrying amount of finance lease receivable.
3.27.3 Income adapted to the lease standard
The recognition procedure of the company’s Ship chartering revenue：Shandong Zhonglu Oceanic Fisheries Transportation Co., Ltd.
And HABITAT INTERNATIONAL CORPORATION uses time charter for the chartering of transportation vessels. The company
leases ships equipped with operators to others for a certain period of time. During the lease period, it will be dispatched by the lessee,
regardless of whether it is operating or not, Lease fees are collected from the lessee on a daily basis, and the fixed costs (such as
personnel salaries, maintenance costs, etc.) are the responsibility of the company. Periodic settlements are made with customers
during the time lease period, and revenue is recognized based on the number of lease days consistent with the customer.
The recognition procedure of the company’s housing and other rental revenue：After the company signs a lease contract with the
customer, it will collect the lease fee from the lessee according to the leased area and contract unit price, and the fixed expenses
incurred (such as personnel salaries, maintenance costs, etc.) will be borne by the company. Regular settlements are made with
customers during the lease period, and revenue is recognized according to the lease period of the customers.
3.28 Changes of significant accounting policies and accounting estimates
3.28.1 The changes of accounting policies and reason for change
3.28.1.1The Ministry of Finance issued the revised Accounting Standards for Business Enterprises No. 14 -- Revenue (hereinafter
referred to as the "New Revenue Standards") in 2017. The company will implement the new revenue standards and notice on January
1, 2020, and adjust the relevant content of accounting policies.
The new revenue standard replaces the Accounting Standard for Business Enterprises No. 14 - Revenue and the Accounting Standard
for Business Enterprises No. 15 - Construction Contracts issued by the Ministry of Finance in 2006 (collectively referred to as the
"original revenue standard"). Under the original revenue criteria, the company takes risk reward transfer as the judgment standard of
revenue recognition time point. The new revenue guidelines introduce a "five-step" approach to revenue recognition measurement
and provide more guidance for specific transactions or events, Under the new revenue standards, the company takes the transfer of
control as the judgment standard of revenue recognition. See Note 3.23 for the specific accounting policies of revenue recognition
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and measurement.
3.28.1.2 Overseas subsidiary HABITAT INTERNATIONAL CORPORATION(hereinafter referred to as "HIC Corporation"), Starting
from October 1, 2020, the accounting standard currency of HIC Company will be changed from RMB to US dollar, The reason for
the change is that the main business activities of HIC are overseas, and the main assets and liabilities of HIC are denominated in US
dollars. Major business operations such as procurement and sales are also denominated and settled in US dollars. Considering the
development status of the company's overseas business, changing the bookkeeping standard currency from RMB to US dollar can
more objectively reflect the financial situation and operating results of HIC Company.
3.28.2 The impact of accounting policies change
The impact of the implementation of the new revenue criteria on the consolidated balance sheet and the balance sheet of the parent
company on January 1, 2020 is summarized as follows:
Unit (Yuan)
Consolidated statement item As at 31/12/2019 Amount of impact As at 1/1/2020
liabilities：
Contract liabilities 18,445,693.16 18,445,693.16
Contract liabilities 31,953.38 31,953.38
Advances from customers 18,477,646.54 -18,477,646.54
parent company statement item As at 31/12/2019 Amount of impact As at 1/1/2020
liabilities：
Contract liabilities 2,151,845.53 2,151,845.53
Contract liabilities 9,161.24 9,161.24
Advances from customers 2,161,006.77 -2,161,006.77
4. Taxes
4.1 Main taxes categories and tax rates
Tax category Tax base Tax rate
Output tax deducted input tax that can be credited
Value added tax 13%、9%、6%、5%
against the output tax
Urban maintenance and
Turnover taxes already paid 7%
construction tax
Enterprise income tax Taxable income Tax exemption、25%、8%
Income tax rate of taxpayers adopting different incme tax rate
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Name of tax enterprise Tax rate of income tax
Shandong Zhonglu Oceanic Fisheries Co., Ltd. Ocean fisheries part is tax exemption; housing lease part is 25%.
Shandong zhonglu Haiyan Oceanic Fisheries Co., Ltd. tax exemption
AFRICA STAR FISHERIES LIMITED Export sales part is 8%, domestic sales part is 25%.
HABITAT INTERNATIONAL CORPORATION tax exemption
LAIF FISHERIES CO.LTD 25%
ZHONG GHA FOODS COMP ANY LIMITED 25%
Shandong Zhonglu Oceanic Fisheries Transportation Co.,
25%
Ltd.
Shandong Zhonglu Oceanic Fisheries Transportation Co., Aquatic products processing part is tax exemption; refrigeration part
Ltd is 25%.
Aquatic products processing part is tax exemption; refrigeration part
Shandong Zhonglu Oceanic (Yantai) Food Co.
is 25%.
4.2 Significant tax incentives and approval documents
4.2.1 Value added tax preferences
According to the government document (2000) No.260 < Interim Measures for the Administration of Taxation of Self-Catched
Aquatic Products Transported by Ocean-going Fishing Enterprises >, self trapping aquatic products shipped back for domestic sale
are regarded as the domestic products that are free from tariff and import value added tax. Corresponding, the domestic sale business
belongs to primary agricultural products sale business are free from value added tax accoriding to the rules of value added tax. So,
the company’ revenue from the pelagic fishery is free value added tax.
4.2.2 Enterprise income tax preferences
On the basis of relevant policies in the following documents:,Order of the Chairman of the People’s Republic of
China (2007) No.63 、Decree of the State Council of
the People’s Republic of China No.512 < Enforcement regulations of People’s Republic of China Enterprise
Income Tax Law> 、Caishui [2008] No. 149 、Caishui [2011] No.26、The state administration of Taxation[2011] No.48 .Income from activities of pelagic fishery and preliminary
production of agricultural products in which the Company is engaged is exempt from income tax. Income from
activities other than pelagic fishery and preliminary production of agriculture products that the Company is
engaged in is taxed 25%.
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5. Notes to the consolidated financial statements
5.1 Cash at bank and on hand
Item Balance as at 31/12/2020 Balance as at 1/1/2020
Cash on hand 2,817,043.31 4,956,965.73
Cash at bank 252,918,568.62 179,646,672.99
Other monetary funds 76,370.28 1,408,005.57
Total 255,811,982.21 186,011,644.29
Including: the total balance deposited overseas 54,297,720.99 32,175,289.98
Note: The other monetary funds of RMB 76,370.28 is the credit guarantee of the letter of credit; the deposits outside the territory of
China are the cash and bank deposits of the overseas subsidiaries.
5.2 Financial assets held for trading
Item Balance as at 31/12/2020 Balance as at 1/1/2020
Financial assets classified upon initial recognition as at fair value
5,000,000.00
through profit or loss
Total 5,000,000.00
Note: Financial assets held for trading is are structured deposits purchased from banks. The purchase of this product can obtain the
full guarantee of the principal provided by the bank. The annualized rate of return obtained by the customer during the whole
duration period is calculated according to the rate of return corresponding to the actual duration period. The rate of return during the
duration period is the floating interest rate, and the floating range is at the interest rate and based on this, calculate the client's
earnings based on the floating range interest rate.
5.3 Accounts receivable
5.3.1 Accounts receivable by category
As at 31/12/2020
Item Balance Allowance for credit losses
Allowance
Amount PCT (%) Amount
rate (%)
Individual assessment subject to allowance for
credit losses
Grouping assessment subject to allowance for
76,675,259.70 100.00 10,412,229.89 13.58
credit losses
Total 76,675,259.70 100.00 10,412,229.89 13.58
As at 1/1/2020
Item Balance Allowance for credit losses
Allowance
Amount PCT(%) Amount
rate (%)
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As at 1/1/2020
Item Balance Allowance for credit losses
Allowance
Amount PCT(%) Amount
rate (%)
Individual assessment for allowance for credit
losses
Grouping assessment subject to allowance for
80,013,699.94 100.00 10,010,305.64 12.51
credit losses
Total 80,013,699.94 100.00 10,010,305.64 12.51
Accounts receivable that are assessed allowance for credit losses on grouping basis
As at 31/12/2020 As at 1/1/2020
Aging ECL Allowance for ECL Allowance for
Balance Balance
rate(%) credit losses rate(%) credit losses
Within 6 months 65,721,506.51 5.00 3,286,075.32 71,744,909.33 5.00 3,587,245.46
6 months-1 years 2,974,381.80 10.00 297,438.18 1,168,153.04 10.00 116,815.27
1-2 years 1,403,197.09 30.00 420,959.13 800,904.90 30.00 240,271.47
2-3 years 336,834.09 50.00 168,417.05 467,518.46 50.00 233,759.23
More than 3 years 6,239,340.21 100.00 6,239,340.21 5,832,214.21 100.00 5,832,214.21
Total 76,675,259.70 10,412,229.89 80,013,699.94 10,010,305.64
5.3.2 Provision, recovery or reversal of allowance for credit losses during the year
Provision of allowance for credit losses within this year is RMB401,924.25 and recovery or reversal of provision during the year is
RMB0.00.
5.3.3Accounts receivable due from the top five debtors of the Company are as follows:
Balance as at Percentage in total accounts Balance of allowance for credit
Company name
31/12/2020 receivable (%) losses as at 31/12/2020
Haixinshen Co.Ltd 16,534,546.10 21.56 826,727.31
Yantai Haixu Aquatic Products
10,159,646.21 13.25 507,982.31
Co. Ltd
AFKO FISHERIES CO LTD 5,075,694.68 6.62 253,784.73
Shenzhen shenzhiyang trading
3,877,218.57 5.06 494,986.90
Co. Ltd
LUEN THAI SEAFOODS
3,641,169.55 4.75 182,058.48
INTERNATIONAL LTD
Total 39,288,275.11 51.24 2,265,539.73
5.4 Prepayments
5.4.1 Aging analysis of prepayments
As at 31/12/2020 As at 1/1/2020
Aging
Balance PCT(%) Balance PCT(%)
Within 1 year 16,917,757.96 95.23 16,715,518.41 96.34
1-2 years 781,797.59 4.40 564,788.72 3.26
2-3 years 69,762.00 0.40
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More than 3 years 65,249.00 0.37
Total 17,764,804.55 100.00 17,350,069.13 100.00
5.4.2 The top five prepayments are as follows:
Company name Balance as at 31/12/2020 Percentage in total prepayment(%)
DONGYISHIPPING ENTERPRISE
3,760,160.27 21.17
PRIVATE LIMITED
MARINE FISHERIES CO ;TD 3,230,983.35 18.19
KIRIBATI GOVERNMENT NO.1 2,584,773.89 14.55
KTI COMPANY LIMITED 734,794.44 4.14
Yantai Baxter International Freight
536,367.72 3.02
Forwarding Co., Ltd
Total 10,847,079.66 61.07
5.5 Other receivables
Category Balance as at 31/12/2020 Balance as at 1/1/2020
Interest receivable
Dividends receivable
Other receivables 7,173,329.59 9,410,449.31
Less: Allowance for credit losses 4,880,092.74 5,067,241.75
Total 2,293,236.85 4,343,207.56
Other receivables
5.5.1.1 Category of other receivables by nature
Nature Balance as at 31/12/2020 Balance as at 1/1/2020
Guarantee deposit 709,740.53 571,699.92
Current account and others 6,463,589.06 8,838,749.39
Less: Allowance for credit losses 4,880,092.74 5,067,241.75
Total 2,293,236.85 4,343,207.56
5.5.1.2 Aging analysis of other receivables
Balance as at 31/12/2020 Balance as at 1/1/2020
Aging
Balance PCT (%) Balance PCT (%)
Within 6 months 1,304,317.69 18.18 3,305,959.08 35.13
6 months-1 years 593,955.31 8.28 708,988.05 7.53
1-2 years 536,205.80 7.47 433,604.70 4.61
2-3 years 288,462.60 4.02 521,868.18 5.55
More than 3 years 4,450,388.19 62.04 4,440,029.30 47.18
Total 7,173,329.59 100.00 9,410,449.31 100.00
5.5.1.3 The provision of allowance for credit losses
The allowance for credit Stage one Stage two Stage three Total
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losses Lifetime ECL
12-month ECL Lifetime ECL (credit-unimpaired)
(credit-impaired)
Beginning balance 627,212.45 4,440,029.30 5,067,241.75
Revaluation of beginning
627,212.45 4,440,029.30 5,067,241.75
balance
Provision -197,507.90 33,962.67 -163,545.23
Reversal
Write-off 23,603.78 23,603.78
Other changes
Ending balance 429,704.55 4,450,388.19 4,880,092.74
5.5.1.4 Other receivables due from the top five debtors are as follows:
Percentage in total Balance of allowance for
Balance as at
Debtor name Nature of balance Aging other credit losses as at
31/12/2020
receivables(%) 31/12/2020
Shandong
Tianzong Culture margin 299,000.00 6 个月-1 年 4.17 29,900.00
Media Co. Ltd
JU IL SU Employee loan 275,122.54 1-2 年，2-3 年 3.84 91,461.14
TINGLE WANG Employee loan 250,328.45 3 年以上 3.49 250,328.45
Wende Ship Repair
Deal with 200,000.00 3 年以上 2.79 200,000.00
Co
Qingdao
construction and
Deal with 195,044.10 3 年以上 2.72 195,044.10
installation
company
Total 1,219,495.09 17.00 766,733.69
5.6 Inventories
5.6.1 Inventories by categories
As at 31/12/2020 As at 1/1/2020
Provision for Provision for
Category diminution in Carrying diminution in Carrying
Book balance Book balance
value or amount value or amount
impairment impairment
Raw materials 98,361,885.77 974,526.46 97,387,359.31 139,142,998.02 1,506,520.94 137,636,477.08
Low-value
681,559.16 681,559.16 803,538.67 803,538.67
consumables
Finished goods 238,760,203.86 2,730,462.49 236,029,741.37 236,151,661.21 3,116,468.80 233,035,192.41
Revolving materials
1,131,389.24 1,131,389.24 989,692.35 989,692.35
work in progress
Goods in transit 3,655,579.98 3,655,579.98 3,279,215.85 3,279,215.85
Total 342,590,618.01 3,704,988.95 338,885,629.06 380,367,106.10 4,622,989.74 375,744,116.36
5.6.2 Provision for diminution in value of inventories and impairment of costs to fulfil contracts
As at Provision Reductions during the year
Category As at 31/12/2020
1/1/2020 for the year Reversal Write-down
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As at Provision Reductions during the year
Category As at 31/12/2020
1/1/2020 for the year Reversal Write-down
Raw materials 1,506,520.94 611,130.75 1,143,125.23 974,526.46
Finished goods 3,116,468.80 2,002,453.16 2,388,459.47 2,730,462.49
Total 4,622,989.74 2,613,583.91 3,531,584.70 3,704,988.95
Note1: The basis of determining inventory net realizable value is described in Note 3.12.3 Provision for diminution in value of
inventories.
Note2: The reversal of provision for diminution is induced by the finished goods which were sold.
5.7 Other debt investments
Item As at 31/12/2020 As at 1/1/2020
Input tax of value added tax 14,353,098.17 31,837,201.31
Prepaid income tax 167,345.60 177,922.66
Prepaid other taxs 47,503.05 12,463.61
Total 14,567,946.82 32,027,587.58
5.8 Other equity instrument investments
Balance Balance Dividends The aggregated amount Reason for
Item Investment cost as at as at income in carried forward from OCI to carrying
1/1/2020 31/12/2020 year 2020 retained earnings forward
Equity
investment-China 33,000,000.00
Southern Securities
Total 33,000,000.00
Note: On 29th April, 2005, China Southern Securities received its administrative penalty, and its security business license was
cancelled by China Securities Regulatory Commission. On 16th August, 2006, Shenzhen Intermediate People’s court announced its
bankruptcy，the current write-off of the original book value and impairment provisions.
5.9 Investment property
Investment property measured by cost
Item Buildings Total
ⅠCost
1.Balance as at 1/1/2020 51,308,578.35 51,308,578.35
2.Additions
3. Reductions
4. Balance as at 31/12/2020 51,308,578.35 51,308,578.35
ⅡAccumulated depreciation or amortization
1.Balance as at 1/1/2020 17,660,980.18 17,660,980.18
2.Additions 1,326,076.68 1,326,076.68
Depreciation or amortization 1,326,076.68 1,326,076.68
3. Reductions
4. Balance as at 31/12/2020 18,987,056.86 18,987,056.86
III. Provision for impairment
106
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
1. Balance as at 1/1/2020 886,512.06 886,512.06
2. Additions
3. Reductions
4. Balance as at 31/12/2020 886,512.06 886,512.06
IV. Carrying amount
1. As at 31/12/2020 31,435,009.43 31,435,009.43
2. As at 1/1/2020 32,761,086.11 32,761,086.11
5.10 Fixed assets
Category Balance as at 31/12/2020 Balance as at 1/1/2020
Fixed assets 506,448,396.20 539,836,438.92
Disposal of fixed assets 11,488,734.07
Less: Provision for impairment 157,573.50 157,573.50
Total 506,290,822.70 551,167,599.49
Fixed assets
Machinery & Transportation Furniture and
Item Buildings Boats & nets Total
equipment vehicles office equipment
Ⅰ. Cost
1. Balance as at
114,235,599.27 678,939,803.12 47,695,910.53 9,147,146.26 11,927,233.82 861,945,693.00
1/1/2020
2. Additions 4,561,954.07 16,827,878.41 8,641,843.47 64,150.44 254,572.54 30,350,398.93
(1) Purchase 11,449,573.37 8,641,843.47 64,150.44 254,572.54 20,410,139.82
(2) Transfer from
construction in 4,561,954.07 5,378,305.04 9,940,259.11
process
3. Reductions 201,332.76 22,918,147.66 12,019.83 600,513.54 1,858,343.71 25,590,357.50
(1) Disposals or
4,252,342.53 283,954.12 336,635.51 1,673,444.86 6,546,377.02
scrap
(2) Impact of
exchange rate 201,332.76 18,665,805.13 -271,934.29 263,878.03 184,898.85 19,043,980.48
fluctuations
4. Balance as at
118,596,220.58 672,849,533.87 56,325,734.17 8,610,783.16 10,323,462.65 866,705,734.43
31/12/2020
II. Accumulated
depreciation
1. Balance as at
31,952,258.72 253,213,522.57 22,766,284.17 5,324,327.47 8,852,861.15 322,109,254.08
1/1/2020
2. Additions 3,270,807.73 41,568,065.80 3,048,386.81 1,064,328.71 502,793.10 49,454,382.15
Provision 3,270,807.73 41,568,065.80 3,048,386.81 1,064,328.71 502,793.10 49,454,382.15
3. Reductions 5,064.83 9,107,994.79 246,879.22 417,602.15 1,528,757.01 11,306,298.00
(1) Disposals or
4,039,725.40 215,953.91 327,801.79 1,505,562.99 6,089,044.09
scrap
(2) Impact of
exchange rate 5,064.83 5,068,269.39 30,925.31 89,800.36 23,194.02 5,217,253.91
fluctuations
107
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Machinery & Transportation Furniture and
Item Buildings Boats & nets Total
equipment vehicles office equipment
4. Balance as at
35,218,001.62 285,673,593.58 25,567,791.76 5,971,054.03 7,826,897.24 360,257,338.23
31/12/2020
III. Provision for
impairment
1. Balance as at
157,573.50 157,573.50
1/1/2020
2. Additions
3. Reductions
4. Balance as at
157,573.50 157,573.50
31/12/2020
IV. Carrying amount
1. As at 31/12/2020 83,378,218.96 387,018,366.79 30,757,942.41 2,639,729.13 2,496,565.41 506,290,822.70
2. As at 1/1/2020 82,283,340.55 425,568,707.05 24,929,626.36 3,822,818.79 3,074,372.67 539,678,865.42
Note1: The original value of fixed assets that has been fully depreciated but still in use is RMB 93,478,550.21 as at December 31
2020.
Note2: According to the Debt Repayment Advice signed between the Company and Shandong Fishery Group Corporation in April
2006, and Civil Ruling Li Zhi Zi No.1299 published by Lixia District People's Court of Jinan in 2005, the building of Shandong
Fishery Group Corporation located at Heping road No.43 Lixia District of Jinan was used to repay debt. The determined original
book value of the office complex is RMB 54,221,197.05 (of which the self-use part is included in the fixed assets, and the leased
part is included in the investment real estate), the real estate is originally allocated land, there is no construction planning permit, and
the housing property certificate has not been processed .
5.11 Construction in process
Category Balance as at 31/12/2020 Balance as at 1/1/2020
Projects constructed in process 7,783,474.25 4,077,658.55
Construction materials
Less: Provision for impairment 4,077,658.55 4,077,658.55
Total 3,705,815.70
5.11.1 Projects constructed in process
5.11.1.1 Construction in process
As at 31/12/2020 As at 1/1/2020
Item Provision for Carrying Provision for
Book balance Book balance Carrying amount
impairment amount impairment
The Atlantic Seine
4,077,658.55 4,077,658.55 4,077,658.55 4,077,658.55
project
Workshop flame
retardant renovation 948,526.58 948,526.58
project
108
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
As at 31/12/2020 As at 1/1/2020
Item Provision for Carrying Provision for
Book balance Book balance Carrying amount
impairment amount impairment
Ultra-low temperature
cold storage
renovation project 2,757,289.12 2,757,289.12
phase Ⅱ
Total 7,783,474.25 4,077,658.55 3,705,815.70 4,077,658.55 4,077,658.55
5.11.1.2 Movement of significant construction in progress
Transfer to fixed As at
Project name Budget As at 1/1/2020 Additions Other reductions
assets 31/12/2020
Workshop flame
retardant renovation 1,200,000.00 948,526.58 948,526.58
project
Ultra-low
temperature cold
4,916,520.00 4,561,954.07 4,561,954.07
storage renovation
project phase Ⅰ
Ultra-low
temperature cold
11,000,000.00 2,757,289.12 2,757,289.12
storage renovation
project phase Ⅱ
Total 8,267,769.77 4,561,954.07 3,705,815.70
Movement of significant construction in progress (Continued)
Percentage of Including: Capitalization rate
current input Construction Accumulated Sources of
Project name Interest capitalized in in current period
over budget progress (%) capitalized interest funds
current period (%)
(%)
Workshop flame
retardant
79.04 70.00 self-raised
renovation
project
Ultra-low
temperature cold
storage
renovation 92.79 100.00 self-raised
project phase
Ⅰ
Ultra-low
temperature cold
storage
renovation 25.07 25.00 self-raised
project phase
Ⅱ
Total
5.11.1.3 Provision for impairment of construction in progress
Balance as at Balance as at
Item Additions Reductions Reason for provision
1/1/2020 31/12/2020
109
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Balance as at Balance as at
Item Additions Reductions Reason for provision
1/1/2020 31/12/2020
The Atlantic Seine project 4,077,658.55 4,077,658.55 Suspend project
Total 4,077,658.55 4,077,658.55
5.12 Intangible assets
Item Land use rights Computer software Total
ⅠCost
1. Balance as at 1/1/2020 17,154,729.00 1,950,771.84 19,105,500.84
2. Additions 336,464.40 336,464.40
Purchase 336,464.40 336,464.40
3. Reductions
4. Balance as at 31/12/2020 17,154,729.00 2,287,236.24 19,441,965.24
II. Accumulated depreciation
1. Balance as at 1/1/2020 5,221,512.65 687,703.65 5,909,216.30
2. Additions 383,870.16 336,999.23 720,869.39
Provision 383,870.16 336,999.23 720,869.39
3. Reductions
4. Balance as at 31/12/2020 5,605,382.81 1,024,702.88 6,630,085.69
III. Provision for impairment
1. Balance as at 1/1/2020
2. Additions
3. Reductions
4. Balance as at 31/12/2020
IV. Carrying amount
1. As at 31/12/2020 11,549,346.19 1,262,533.36 12,811,879.55
2. As at 1/1/2020 11,933,216.35 1,263,068.19 13,196,284.54
5.13 Long-term deferred expenses
Balance as at
Item Balance as at 1/1/2020 Additions Amortization Reductions
31/12/2020
Office renovation costs 435,134.13 225,000.00 334,152.83 8,937.13 317,044.17
Total 435,134.13 225,000.00 334,152.83 8,937.13 317,044.17
5.14 Deferred tax assets and deferred tax liabilities
5.14.1 Deferred tax assets and deferred tax liabilities before offsetting
As at 31/12/2020 As at 1/1/2020
Item Deductible or Deductible or
Deferred tax assets Deferred tax assets
taxable temporary taxable temporary
or liabilities or liabilities
differences differences
Deferred tax assets:
Provisions for impairment of assets 230,387.38 921,549.53 239,339.79 957,359.10
110
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As at 31/12/2020 As at 1/1/2020
Item Deductible or Deductible or
Deferred tax assets Deferred tax assets
taxable temporary taxable temporary
or liabilities or liabilities
differences differences
Deferred income 1,514,249.60 6,056,998.38 1,606,533.03 6,426,132.12
Sub-total 1,744,636.98 6,978,547.91 1,845,872.82 7,383,491.22
Deferred tax liabilities:
Accelerated depreciation of fixed
1,451,751.23 5,807,004.90
assets before tax deduction
Sub-total 1,451,751.23 5,807,004.90
5.14.2 The items not recognised deferred tax assets
Item Balance as at 31/12/2020 Balance as at 1/1/2020
Provisions for impairment of assets 14,370,773.10 14,173,205.87
Allowance for doubtful debts 3,704,988.95 4,569,972.16
Provision for impairment of construction
4,077,658.55 4,077,658.55
in progress
Total 22,153,420.60 22,820,836.58
Note: No deferred income tax assets are recognized for deductible temporary differences, due to the exemption of corporate income
tax for those companies that form deductible temporary differences. There is uncertainty about whether some companies will be able
to generate sufficient taxable income in the future.
5.15 Other non-current assets
Item Balance as at 31/12/2020 Balance as at 1/1/2020
Prepaid for land 2,000,000.00 2,000,000.00
Prepaid for construction in process 719,397.06 1,640,847.49
Total 2,719,397.06 3,640,847.49
5.16 Short-term loans
Borrowing condition Balance as at 31/12/2020 Balance as at 1/1/2020
Pledge loans 28,072,326.86 28,038,983.33
Loans on credit 13,195,948.64 23,623,381.67
Total 41,268,275.50 51,662,365.00
Note: the current loan includes Interest payable of RMB 360,431.28.
5.17 Accounts payable
Item Balance as at 31/12/2020 Balance as at 1/1/2020
Within 1 year(including 1 year) 65,231,961.41 89,503,027.66
More than 1 year 4,665,877.78 5,222,204.02
Total 69,897,839.19 94,725,231.68
5.18 Contract liabilities
111
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Item Balance as at 31/12/2020 Balance as at 1/1/2020
Advance payment for goods 12,453,619.79 18,445,693.16
Total 12,453,619.79 18,445,693.16
5.19 Employee benefits payable
5.19.1 Movement of employee benefits payable
Item As at 1/1/2020 Increase Decrease As at 31/12/2020
I. Short-term employee benefits 45,730,031.58 152,639,499.17 159,356,536.86 39,012,993.89
II. Post-employment benefits—defined
3,351,602.54 9,262,757.22 9,807,946.08 2,806,413.68
contribution plans
III. Termination benefits 34,622.89 130,185.73 131,581.45 33,227.17
IV. Other benefits due within one year 33,397.31 7,549.72 31,232.71 9,714.32
Total 49,149,654.32 162,039,991.84 169,327,297.10 41,862,349.06
5.19.2 Details of the short-term employee benefits
Item As at 1/1/2020 Accrued Paid As at 31/12/2020
Salaries, bonus, and allowances 44,272,818.76 139,074,683.32 145,892,299.67 37,455,202.41
Staff welfare 4,260,420.56 4,260,420.56
Social insurances 3,956,988.87 3,956,988.87
Including: Medical insurance 3,843,905.74 3,843,905.74
Work injury insurance 113,083.13 113,083.13
Housing Fund 4,779,014.85 4,779,014.85
Union funds and employee education fee 1,457,212.82 568,391.57 467,812.91 1,557,791.48
Total 45,730,031.58 152,639,499.17 159,356,536.86 39,012,993.89
5.19.3 Defined contribution plans
Item As at 1/1/2020 Accrued Paid As at 31/12/2020
Primary endowment insurance 3,308,290.87 3,308,290.87
Unemployment insurance 144,357.17 144,357.17
Pension insurance 3,351,602.54 5,719,902.03 6,265,090.89 2,806,413.68
Social security and subsidies for retired
90,207.15 90,207.15
workers
Total 3,351,602.54 9,262,757.22 9,807,946.08 2,806,413.68
5.20Taxes and surcharges payable
Category Balance as at 31/12/2020 Balance as at 1/1/2020
Value added tax 150,746.28 239,608.16
Enterprise income tax 508,778.23 1,802,946.98
Urban maintenance and construction tax 7,404.84 9,769.37
Estate tax 190,068.25 207,304.90
Land use tax 105,674.51 133,639.72
Individual income tax 633,026.16 399,027.16
112
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Category Balance as at 31/12/2020 Balance as at 1/1/2020
Educational surtax 5,289.17 4,186.87
Withholding tax 1,096,759.86 695,879.71
Other taxes and surcharges 127,666.48 105,562.67
Total 2,825,413.78 3,597,925.54
5.21 Other payables
Category Balance as at 31/12/2020 Balance as at 1/1/2020
Interest payable
Dividends payable
Other payables 8,487,724.32 8,634,438.40
Total 8,487,724.32 8,634,438.40
Other payables
Other payables by nature
Nature Balance as at 31/12/2020 Balance as at 1/1/2020
Deposit 2,620,321.34 1,270,350.00
Staff cost 1,072,824.55 1,409,892.00
Others 4,794,578.43 5,954,196.40
Total 8,487,724.32 8,634,438.40
5.22 Other current liabilities
Item Balance as at 31/12/2020 Balance as at 1/1/2020
Advance collection of sales tax 108,248.84 31,953.38
Total 108,248.84 31,953.38
5.23 Long-term employee benefits payable
Category Balance as at 31/12/2020 Balance as at 1/1/2020
Post -employment benefits—defined benefits plans 414,919.37
448,146.54
Other long-term benefits 828,533.56 930,325.16
Total 1,243,452.93 1,378,471.70
5.24 Deferred income
5.24.1 Deferred income by category
Balance as at Balance as at Reason for the deferred
Increase Decrease
Item 1/1/2020 31/12/2020 income
Government Government grants
15,764,480.48 1,275,683.24 14,488,797.24
grants related asset
113
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Balance as at Balance as at Reason for the deferred
Increase Decrease
Item 1/1/2020 31/12/2020 income
Total 15,764,480.48 1,275,683.24 14,488,797.24
5.24.2 Deferred income from government grants
Recorded in profit
Balance as at Other Balance as at Related to
Item Increase or loss for current
1/1/2020 movement 31/12/2020 assets/income
period
Construction special
10,043,559.84 1,076,307.24 8,967,252.60 Assets
fund
Subsidy of boat
5,720,920.64 199,376.00 5,521,544.64 Assets
manufacture
Total 15,764,480.48 1,275,683.24 14,488,797.24
5.25 Share capital
Movement
Balance as at Issuance Capital Balance as at
Item Bonus
1/1/2020 of new reserve Others sub-total 31/12/2020
shares
share transfer in
Total shares 266,071,320.00 266,071,320.00
5.26 Capital reserve
Balance as at Balance as at
Category Increase Decrease
1/1/2020 31/12/2020
I. Share premiums 189,093,492.79 189,093,492.79
II. Other capital reserve 94,961,504.96 94,961,504.96
Total 284,054,997.75 284,054,997.75
5.27Other comprehensive income
Movement in the year
Less: OCI in Less: OCI in
Balance as prior periods prior periods Amount after Balance as at
Item Less: Amount after tax
at 1/1/2020 Amount before transfer in carried tax attributable 31/12/201X
income attributable to the
tax profit or loss forward to to minority
tax Company
for the current retained interests
period earnings
OCI items
which will be
reclassified 707,156.17 -18,169,681.99 -13,490,695.30 -4,678,986.69 -12,783,539.13
subsequently
to profit or loss
Translation
differences
from
translation of
707,156.17 -18,169,681.99 -13,490,695.30 -4,678,986.69 -12,783,539.13
foreign
currency
financial
statements
114
山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Total of OCI 707,156.17 -18,169,681.99 -13,490,695.30 -4,678,986.69 -12,783,539.13
5.28 Surplus reserve
Balance as at
Category Balance as at 1/1/2020 Increase Decrease
31/12/2020
Statutory surplus reserve 21,908,064.19 21,908,064.19
Total 21,908,064.19 21,908,064.19
5.29 Retained earnings
As at 31/12/2020
Item
Amount Appropriation proportion
Retained earnings as at 1/1/2020 before adjustment 314,460,431.58
The total adjustment of retained earnings as at 1/1/2020
（Increase+，decrease-）
Retained earnings as at 1/1/2020 after adjustment 314,460,431.58
Add: Net profit attributable to the Company during the year
Less: Appropriation of statutory surplus reserve 29,537,498.13
Appropriation of discretionary surplus reserve
Common share dividends payable
Common share dividends converted to share capital
Retained earnings as at 31/12/2020 343,997,929.71
5.30 Operating income and operating costs
5.30.1 Operating income and operating costs by category
Year ended 31/12/2020 Year ended 31/12/2019
Item
Income Costs Income Costs
I. Primary operating business 957,971,299.47 876,609,493.00 1,120,738,842.04 946,989,300.61
II. Other operating business 8,241,720.19 1,807,861.27 8,213,060.64 1,864,630.29
Total 966,213,019.66 878,417,354.27 1,128,951,902.68 948,853,930.90
5.30.2 Operating income and operating costs by recognition timing
Agent Processing Refrigeration fee Other operating
Revenue recognition timing Sales income
income income income
At a point of time 846,549,524.48 3,157,703.32 3,392,121.09
Over a period of time 7,544,474.47
Total 846,549,524.48 3,157,703.32 7,544,474.47 3,392,121.09
5.30.3 Income adapted to the lease standard
Item Boat rental Realtor
I. Primary operating business 100,719,597.20
II. Other operating business 4,849,599.10
Total 100,719,597.20 4,849,599.10
5.31 Taxes and surcharges
115
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Item Year ended 31/12/2020 Year ended 31/12/2019
Urban maintenance and construction tax 172,674.56 536,116.79
Educational surcharge 73,964.81 229,764.31
Local educational surcharge 49,309.89 153,176.25
Local water conservancy construction fund 12,327.47 38,294.06
Property tax 1,285,586.41 1,299,489.61
Land use tax 421,428.69 535,449.76
Stamp duty 275,627.46 305,583.83
Vehicle and vessel tax 33,167.68 35,164.36
Others 154.04
Total 2,324,086.97 3,133,193.01
5.32 Selling and distribution expenses
Item Year ended 31/12/2020 Year ended 31/12/2019
Port charges 13,007,276.29
Employee compensation expenditure 2,197,949.48 2,987,027.62
Transport charges 4,658,598.15
Business promotion fees 585,425.19 816,361.72
Travelling expenses 165,925.16 495,396.75
Depreciation charges 73,027.96 79,121.02
Communication expenses 24,060.25 14,981.46
Agency fees 1,636,396.22
Handling charges 507,169.59
Others 623,371.66 725,671.22
Total 3,669,759.70 24,928,000.04
Note：In 2020, the company will implement new revenue standards, in this period, Port charges, Transport charges, Agency fees and
Handling charges are listed as operating costs.
5.33 General and administrative expenses
Item Year ended 31/12/2020 Year ended 31/12/2019
Employee compensation expenditure 34,614,101.99 43,276,129.10
Depreciation and amortization charges 1,869,160.28 1,857,224.86
Travelling expenses 725,668.44 2,081,023.00
Business entertainment 463,172.36 1,287,516.23
Vehicle expenses 829,720.16 1,299,675.12
Agent service fees 1,180,503.10 1,101,745.19
Office expenses 4,886,702.18 4,550,320.09
Water and electricity expenses 1,157,511.99 1,416,329.41
Others 3,750,281.36 6,743,602.72
Total 49,476,821.86 63,613,565.72
5.34 Research and development expenses
Item Year ended 31/12/2020 Year ended 31/12/2019
Materials 17,924.28 26,338.75
116
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Item Year ended 31/12/2020 Year ended 31/12/2019
Others 40,000.00 248,000.00
Total 57,924.28 274,338.75
5.35 Finance expenses
Item Year ended 31/12/2020 Year ended 31/12/2019
Interest expenses 2,264,468.56 4,119,308.06
Less: interest income 666,925.40 1,032,203.87
Losses or gains from foreign exchange 20,054,225.77 95,531.07
Finance charges 1,145,378.30 1,322,486.27
Others 164,075.46 143,131.08
Total 22,961,222.69 4,648,252.61
5.36 Other income
Related to assets/Related to
Item Year ended 31/12/2020 Year ended 31/12/2019
income
International Fisheries Resources
Development and Utilization Grants 22,435,200.00 20,504,756.24 Related to income
（Note 1）
Tuna backhaul subsidy 1,621,411.00 Related to income
Financial shipbuilding subsidy fund 199,376.00 85,376.00 Related to assets
Financial subsidy for Special
Construction funds in Blue Economic 738,267.48 747,735.76 Related to assets
Zone（Note 2）
Special fund for cold chain logistics 338,039.76 238,276.90 Related to assets
Return of individual income tax
51,138.63 12,052.12 Related to income
service charge
Steady post subsidies 285,425.27
Research subsidies from the Institute
180,000.00
of Oceanology
Intellectual property rights subsidy
10,000.00
funds
Total 24,237,447.14 23,209,608.02
Note 1: The company received RMB 22,435,200.00government grants about development and utilization of international fishery
resources from finance bureau;
Note 2: According to (NO. 【2011】464) issued by Yantai Development and Reform
Commission and Yantai Finance Bureau，（NO【2011】514）issued by Yantai
Economic and Technological Development Zone Finance Bureau, Yantai Development Zone Finance Bureau issued a special
indicator of the company blue economic zone construction RMB 13,600,000.00, RMB 6,800,000.00 in 2012, RMB 6,800,000.00 in
2013, the company kept accounts in deferred income when receiving the funds and are amortized in profit and loss for each period
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山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
over the asset's estimated useful period on a systematic basis. Other income amounts to 738,267.48 in 2020.
Ther income of the current period is included in the non-recurring profit and loss government subsidy of RMB 1,802,247.14 , the
government subsidy included in the recurring profit and loss was RMB 22,435,200.00. The reasons why relevant government
subsidies are included in the recurring gains and losses are shown in Note 3 .25
5.37 Investment income
Category Year ended 31/12/2020 Year ended 31/12/2019
Investment income of structured deposits 15,287.67
Total 15,287.67
5.38 Credit impairment losses
Item Year ended 31/12/2020 Year ended 31/12/2019
Allowance for credit losses of accounts receivable -449,391.98 -244,850.74
Allowance for credit losses of other receivables 125,313.00 -119,394.66
Total -324,078.98 -364,245.40
5.39 Assets impairment losses
Item Year ended 31/12/2020 Year ended 31/12/2019
Provision for diminution in value of inventory -2,613,583.91 -4,630,333.82
Total -2,613,583.91 -4,630,333.82
5.40Gains from disposal of assets
Item Year ended 31/12/2020 Year ended 31/12/2019
Gains and losses on disposal of fixed assets (Note) 52,840.06
Total 52,840.06
5.41Non-operating income
Amount to be included in
Item Year ended 31/12/2020 Year ended 31/12/2019 non-recurring gain or loss
for the year
Reparations income 627,280.18 289,655.03 627,280.18
Others（Note ） 10,131,289.21 46,416.67 10,131,289.21
Total 10,758,569.39 336,071.70 10,758,569.39
Note : The other is RMB 10,131,289.21 in the current period, of which: the panamanian ship named ‘SEA MARK’, which
belonged to wholly-owned subsidiary HABITAT INTERNATIONAL CORPORATION,had been caught fire in2019，in 2020, the
shipping insurance operation center of PICC was indemnity of 3 million dollars, the disposal profit after cleaning was RMB
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10,111,783.13 .
5.42Non-operating expenses
Amount to be included in
Item Year ended 31/12/2020 Year ended 31/12/2019 non-recurring gain or loss
for the year
Loss of scrapped fixed assets 386,058.25 218,418.18 386,058.25
donating 207,712.00 108,000.00 207,712.00
Late fees 200.00
Others 64,708.74 32,000.00 64,708.74
Total 658,478.99 358,618.18 658,478.99
5.43 Income tax expenses
5.43.1 Details of income tax expenses
Item Year ended 31/12/2020 Year ended 31/12/2019
Current income tax expense calculated according to tax laws 664,050.34 2,838,268.82
Deferred income tax 1,552,987.07 80,290.44
Total 2,217,037.41 2,918,559.26
5.43.2 Reconciliation between income tax expenses and accounting profit is as follows:
Item Amount
Profit before tax 40,773,852.27
Income tax expenses calculated at statutory/applicable tax rates 10,193,463.08
Effect of different tax rate of subsidiaries -6,897,896.17
Effect of adjustment for income tax in prior year 456,642.21
Effect of income not subject to income tax -1,477,971.58
Effect of expenses nondeductible for tax purposes 120,514.67
Additional deductions for r & d expenditures -10,860.80
Effect of unrecognised deductible temporary differences and deductible
-166,854.00
losses in current period
Income tax expenses 2,217,037.41
5.44 Notes to statement of cash flows
Cash received or paid relating to other operating activities
Item Year ended 31/12/2020 Year ended 31/12/2019
Cash received related to other operating activities 29,713,130.80 42,110,856.39
Including:Finance expenses- interest income 666,925.40 1,032,203.87
Government grants and others 23,598,067.00 29,604,291.06
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Item Year ended 31/12/2020 Year ended 31/12/2019
Credit deposit 1,929,052.36 8,249,651.54
Current account and other 3,519,086.04 3,224,709.92
Cash paid related to other operating activities 20,605,714.27 50,720,086.41
Including: Cash payment to selling expenses 1,287,323.87 21,861,851.40
Cash payment to administrative expense 12,663,386.50 18,149,500.96
Cash payment to research and development expenses 57,924.28 274,338.75
Security deposit 597,417.07 8,971,709.03
Current account and other 5,999,662.55 1,462,686.27
5.45 Supplement to statement of cash flows
5.45.1 Supplement to statement of cash flows
Item Year ended 31/12/2020 Year ended 31/12/2019
1.Net profit adjusted to cash flows from operating activities
Net profit 38,556,814.86 98,774,544.71
Add:credit impairment losses 324,078.98 364,245.40
Provision for asset impairment 2,613,583.91 4,630,333.82
Depreciation of fixed assets, depletion of oil and gas assets,
depreciation of productive biological assets and depreciation of 50,780,458.83 48,705,018.16
investment property
Amortization of intangible assets 720,869.39 668,467.41
Amortization of long-term deferred expenses 334,152.83 363,770.47
Losses on disposal of fixed assets, intangible assets and other
-52,840.06
long-term assets ("-" for gains)
Losses on write-down of fixed assets ("-" for gains） -9,725,724.88 218,418.18
Losses from changes in fair value ("-" for gains)
Financial expenses ("-" for income) 10,826,454.94 6,200,569.12
Investments losses ("-" for gains) -15,287.67
Decreases in the deferred tax assets ("-" for increases) 101,235.84 80,290.44
Increases in the deferred tax liabilities ("-" for decreases) 1,451,751.23
Decreases in inventories ("-" for increases) 34,244,396.75 -49,783,330.18
Decreases in operating receivables ("-" for increases) 23,242,398.53 -582,505.33
Increases in operating payables ("-" for decreases) -40,156,632.83 656,720.47
Others
Net cash flows from operating activities 113,245,710.65 110,296,542.67
2. Significant investing and financing activities not involving cash
inflow and outflow
Conversion of debt into capital
Convertible corporate bonds maturing within one year
Fixed assets acquired under financial lease
3. Net change in cash and cash equivalents
Cash as at 31/12/2019 255,735,611.93 184,603,638.72
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Item Year ended 31/12/2020 Year ended 31/12/2019
Less: cash as at 1/1/2019 184,603,638.72 182,767,125.48
Add: cash equivalents as at 31/12/2019
Less: cash equivalents as at 1/1/2019
Net increase in cash and cash equivalents 71,131,973.21 1,836,513.24
5.45.2 Cash and cash equivalents
Item Balance as at 31/12/2020 Balance as at 1/1/2020
Ⅰ. Cash 255,735,611.93 184,603,638.72
Including: cash on hand 2,817,043.31 4,956,965.73
Unrestricted bank deposits 252,918,568.62 179,646,672.99
Unrestricted other cash and cash equivalents
Ⅱ. Cash equivalents
Ⅲ. Cash and cash equivalents as at 31/12/2020 255,735,611.93 184,603,638.72
5.46 Ownership or using rights of assets subject to restriction
Item Carrying amount as at 31/12/2020 Restriction reason
Cash at bank and on hand 76,370.28 Marginal deposit
Fixed assets 29,509,590.55 Pledge loans
Intangible assets 5,270,303.71 Pledge loans
Total 34,856,264.54 --
5.47 Monetary items denominated in foreign currency
5.47.1 Monetary items denominated in foreign currency
Balance in foreign currency Balance translated into
Item Exchange rate
as at 31/12/2020 RMB as at 31/12/2020
Cash at hand and in banks 195,267,558.29
Including: USD 26,816,541.75 6.5249 174,975,253.27
Euro 176,905.58 8.025 1,419,667.28
JPY 15,702,712.00 0.0632 992,411.40
GHS 15,234,126.98 1.1328 17,257,219.04
XAF 50,651,000.00 0.0123 623,007.30
Accounts receivable 46,035,331.47
Including: USD 5,479,789.40 6.5249 35,755,077.86
JPY 66,296,555.00 0.0632 4,189,942.28
GHS 5,376,334.15 1.1328 6,090,311.33
Other receivables 821,799.64
Including: USD 94,571.49 6.5249 617,069.52
GHS 173,888.70 1.1328 196,981.12
XAF 630,000.00 0.0123 7,749.00
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Balance in foreign currency Balance translated into
Item Exchange rate
as at 31/12/2020 RMB as at 31/12/2020
Accounts payable 8,077,762.42
Including: USD 1,050,781.29 6.5249 6,856,242.84
Euro 234.43 8.025 1,881.30
JPY 8,892,696.00 0.0632 562,018.39
XAF 53,465,032.00 0.0123 657,619.89
Other payables 611,135.10
Including: USD 13,954.94 6.5249 91,054.59
GHS 459,110.62 1.1328 520,080.51
5.47.2 Reporting currencies of significant foreign operating entities
Significant foreign operating entity Overseas location of primary operation Reporting currency Basis for determination
HABITAT INTERNATIONAL
The Republic of Panama USD Business environment
CORPORATION
LAIF FISHERIES COMPANY LIMITED The Republic of Ghana USD Business environment
YAW ADDO FISHERIES COMPANY
The Republic of Ghana USD Business environment
LIMITED
ZHONG GHA FOODS COMPANY
The Republic of Ghana USD Business environment
LIMITED
AFRICA STAR FISHERIES LIMITED The Republic of Ghana USD Business environment
6. Changes in consolidation scope
The scope of merger of the company has not changed in the current period.
7. Interest in other entities
7.1 Interest in subsidiaries
7.1.1 Constitution of the Company
Registration Principal place of Shareholding (%) Acquisition
7 Subsidiary name Business nature
place business Direct Indirect method
Shandong Zhonglu Oceanic Shandong Shandong Refrigeration
100.00 Investment
Fisheries Transportation Co., Ltd. Qingdao Qingdao transportation
Shandong Zhonglu Oceanic Shandong
Shandong Yantai Food processing 74.23 25.77 Investment
(Yantai) Food Co., Ltd. Yantai
Shandong Zhonglu Haiyan Oceanic Shandong Shandong
Oceanic fishing 59.05 Investment
Fisheries Co., Ltd. Qingdao Qingdao
HABITAT INTERNATIONAL The Republic of The Republic of Refrigeration
100.00 Investment
CORPORATION Panama Panama transportation
Oceanic fishing Shandong Investment
LAIF FISHERIES COMPANY The Republic of The Republic of
Zhonglu
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7 Subsidiary name Registration Principal place of Business nature Shareholding (%) Acquisition
place business method
LIMITED Ghana Ghana Haiyan
Oceanic
Fisheries
Co., Ltd
holds 100
shares
Shandong
Zhonglu
Haiyan
AFRICA STAR FISHERIES The Republic of The Republic of Oceanic
Oceanic fishing Investment
LIMITED Ghana Ghana Fisheries
Co., Ltd
holds 100
shares
Shandong
Zhonglu
Haiyan
ZHONG GHA FOODS COMPANY The Republic of The Republic of Oceanic
Oceanic fishing Investment
LIMITED Ghana Ghana Fisheries
Co., Ltd
holds 100
shares
Shandong
Zhonglu
Oceanic
Shandong zhonglu ocean Shandong
Shandong Yantai Food processing (Yantai) Investment
refrigeration co. LTD Yantai
Food Co.,
Ltd. holds
100 shares
YAW ADDO FISHERIES The Republic of The Republic of Operating
Oceanic fishing
COMPANY LIMITED Ghana Ghana lease
7.1.2 Significant non-wholly owned subsidiary
Profit or loss attributable to Balance of the minority
Minority shareholding Dividends announced to
No. Company name the minority for the current interests as at
(%) distribute to the minority
period 31/12/2020
Shandong Zhonglu
1 Haiyan Oceanic 40.95% 9,019,316.73 162,274,990.49
Fisheries Co., Ltd.
7.1.3 Main financial information of significant non-wholly owned subsidiary
As at 31/12/2020
Subsidiary name Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
Shandong Zhonglu
Haiyan Oceanic 283,125,223.39 224,970,520.62 508,095,744.01 106,308,989.61 5,521,544.64 111,830,534.25
Fisheries Co., Ltd.
(Continued)
As at 1/1/2020
Subsidiary name Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
Shandong Zhonglu 250,897,851.01 247,531,784.99 498,429,636.00 107,042,602.15 5,720,920.64 112,763,522.79
Haiyan Oceanic
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Fisheries Co., Ltd.
Year ended 31/12/2020
Subsidiary name Total comprehensive Cash flows from
Operating income Net profit
income operating activities
Shandong Zhonglu Haiyan
279,848,444.29 22,025,193.47 -11,426,096.92 27,621,980.21
Oceanic Fisheries Co., Ltd.
(Continued)
Year ended 31/12/2019
Subsidiary name Total comprehensive Cash flows from
Operating income Net profit
income operating activities
Shandong Zhonglu Haiyan
305,764,051.82 40,202,477.37 2,692,145.39 17,467,091.39
Oceanic Fisheries Co., Ltd.
8. Related risks of financial instruments
The financial assets of the Company include notes receivable, account receivable and other receivables, the financial liabilities
include notes payable, account payable, other payables and long-term loan, for details see Notes V. Company is faced with Various
risks in operating activities, including credit risk, liquidity risk and market risk, board of directors establish and supervise company’s
ERM architecture, establish and supervise company’s risk management policy with full authority.
The goals of Company engaged in the risk management is to achieve the proper balance between the risks and benefits, reduced the
negative impact to the Company operating performance risk to a minimum, maximized the profits of shareholders and other equity
investors.
1. Credit risk
Credit risk what may lead to the financial losses was the other party of the contract failed to fulfill the obligations and causes loss of
the Company‘s financial assets. Credit risk is mainly from the customers’ receivables. The book value of account receivable, note
receivable and other account receivable are the biggest credit risk of the company’s financial assets.
2. Liquidity Risk
Liquidity risk is the risk that the company is in short of capital when fulfilling its obligations related to financial liabilities. In the
capital normal and stressful situation, the company ensures that there is sufficient liquidity to fulfill the due debt, and consult with the
financial institutions to maintain a certain level of reserve credit line to reduce liquidity risk.
3. Market risk
(1) Foreign exchange risk
Foreign exchange risk is referred to the risk incurred due to loss of changes in exchange rate. The company's foreign exchange risk is
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mainly derived from the dollar denominated financial assets. The amount of foreign currency denominated financial assets to be
converted into RMB is as note5.47the foreign currency monetary items stated.
(2) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flow of the financial instruments fluctuate due to the fluctuation of
market interest rate. The company's interest rate risk is mainly derived from long-term bank borrowings, the company's borrowing
are floating interest rates, there is a risk of RMB benchmark interest rate changes.
9. Fair value
The level to which the fair value measurement result belongs is determined by the lowest level to which the input value is of
great significance to the fair value measurement as a whole.
Level 1: Unadjusted quotes for the same asset or liability in an active market.
Level 2: The directly or indirectly observable input values of related assets or liabilities in addition to the input values at level 1.
Level 3: The unobservable input values of the related assets or liabilities.
9.1 Analysis of the assets and liabilities measured at fair value according to the fair value hierarchy:
Measurement by Measurement by Measurement by Balance as at
Item
level 1 level 2 level 3 31/12/2020
I. Recurring fair value measurement
1.Financial assets held for trading 5,000,000.00 5,000,000.00
(1) Financial assets measured at fair value
5,000,000.00 5,000,000.00
through profit or loss
Total 5,000,000.00 5,000,000.00
For financial instruments traded in the active market, the Company determines their fair value based on their active market
quotation; For financial instruments that are not traded in an active market, the Company uses valuation techniques to determine their
fair value.
9.2 For recurring and non-recurring items in level 3 of fair value hierarchy, the adopted valuation techniques and quantity and
quality information of principal inputs refers to the above table.
9.3 There are no transfers of recurring items among the levels of fair value hierarchy in the current period.
9.4 There was no change in the valuation techniques that occurred during the reporting period.
10. Related parties and transactions
10.1 The parent company of the Company
(%)Shareholding (%)Voting rights
Name of parent Registration Registered
Type of business ratio of the proportion % of the
company place capital
Company(%) Company
Shandong Investment and management,
Shandong
State-owned assets asset management and capital 450,000 47.25 47.25
Jinan
investment Co. Ltd operation, entrustment
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(%)Shareholding (%)Voting rights
Name of parent Registration Registered
Type of business ratio of the proportion % of the
company place capital
Company(%) Company
management, investment
consulting
Note: State-owned Assets Supervision and Administration Commission of Shandong Provincial People's Government is the ultimate
controller of the Company.
Subsidiaries of the Company
Details of subsidiaries refer to Note 7 Interest in other entities.
10.2 Other related parties
Entity name Relationship
Inspur General Software co., Ltd. A company that has a transaction in the current period controlled by the
same parent company
Bank of Texas co., LTD. A company that has a transaction in the current period controlled by the
same parent company
10.3 Transactions with related parties
10.3.1 Remuneration of key management
Remuneration of key management Year ended 31/12/2020 Year ended 31/12/2019
Total 2,727,975.00 2,053,124.00
10.3.2 Other related transactions
10.3.2.1 Deposit of monetary funds of related parties
Account name Related party Balance as at 31/12/2020 Balance as at 1/1/2020
Cash at bank Bank of Texas co., LTD. 671,033.41 3,201,870.61
Total 671,033.41 3,201,870.61
10.3.2.2 Others
Account name Related party Year ended 31/12/2020 Year ended 31/12/2019
Interest revenue Bank of Texas co., LTD. 1,392.99 3,284.72
Total 1,392.99 3,284.72
10.4 Receivables due from and payables due to related parties
10.4.1 Receivables due from related parties
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Account name Related party Balance as at 31/12/2020 Balance as at 1/1/2020
Inspur general software co.
Prepayments 394,857.06 394,857.06
LTD
Total 394,857.06 394,857.06
11. Commitments and contingencies
11.1 Commitments
None
11.2 Contingencies
None
12. Post balance sheet events
None
13. Other significant events
13.1 Pension scheme
According to relative laws, regulations and policies, the pension system of the company has been established
to pay supplementary endowment insurance for employees (namely enterprise annuity) on the basis of attending
primary endowment insurance lawfully. The company has set the operating efficiency coefficient in accordance
with the actual operating conditions every year, and calculated the total amount paid by the enterprise through it.
In the enterprise pension, the borne expenses of the company have been disclosed in the case of employee pay
payable and the condition of the established escrow plan, and the individual cost has been paid by the company
from their salary. This year, the enterprise pension has been increased RMB 5.72 million, relevant information
shall be referred to "Attachment 5 (19) employee pay payable".
13.2 Segment reporting
13.2.1 Determination basis of segment reporting and related accounting policy
The company’s mainly business are oceanic fishing, aquatic products processing, vessels leasing and others. The company
disclosure the branches reports by the character and plate of its main bussiness.
13.2.2 Financial information of segment reporting
Aquatic products Elimination
Oceanic fishing Vessels leasing Others Total
processing between branches
1.Operating
395,568,763.49 100,719,597.20 548,852,565.43 328,450.24 -87,498,076.89 957,971,299.47
income
2. Operating
360,814,947.58 67,566,863.59 535,511,757.57 214,001.15 -87,498,076.89 876,609,493.00
cost
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Aquatic products Elimination
Oceanic fishing Vessels leasing Others Total
processing between branches
3. Credit
impairment 34,186.24 62,385.83 -517,484.33 96,833.28 -324,078.98
losses
4. Impairment of
-201,811.47 -2,409,973.98 -1,798.46 -2,613,583.91
assets
5. Depreciation
and 33,546,939.76 9,287,243.81 6,786,517.28 1,880,627.37 51,501,328.22
amortization
6. Profit before
31,108,959.30 28,267,432.79 -4,660,006.58 -13,942,533.24 40,773,852.27
tax
7. Income tax
438,753.45 1,555,236.75 223,047.21 2,217,037.41
expenses
8. Net profit 31,108,959.30 27,828,679.34 -6,215,243.33 -14,165,580.45 38,556,814.86
9. Total assets 816,678,448.11 338,567,129.90 356,615,470.30 91,351,454.89 -343,601,268.31 1,259,611,234.89
10. Total
189,891,020.33 48,967,178.99 143,079,409.98 151,413,659.17 -339,263,796.59 194,087,471.88
liabilities
14. Notes to the financial statements of the Company
14.1 Accounts receivable
14.1.1 Accounts receivable by category
As at 31/12/2020
Item Balance Allowance for credit losses
Allowance
Amount PCT (%) Amount
rate (%)
Individually assessment subject to allowance for
credit losses
Grouping assessment subject to allowance for
13,483,880.01 100.00 6,076,243.56 45.06
credit losses
Group 1：Non-affiliated party customer portfolio 13,433,529.01 99.63 6,076,243.56 45.23
Group 2: Combination of related parties 50,351.00 0.37
Total 13,483,880.01 100.00 6,076,243.56 45.06
As at 1/1/2020
Item Balance Allowance for credit losses
Allowance
Amount PCT(%) Amount
rate (%)
Individually assessment for allowance for credit
losses
Grouping assessment subject to allowance for
35,605,161.90 100.00 6,534,010.26 18.35
credit losses
Group 1：Non-affiliated party customer portfolio 20,823,141.90 58.48 6,534,010.26 31.38
Group 2: Combination of related parties 14,782,020.00 41.52
Total 35,605,161.90 100.00 6,534,010.26 18.35
Accounts receivable that are assessed allowance for credit losses on grouping basis
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①Group 1: Accounts receivable due from non-affiliated party customer portfolio:
As at 31/12/2020 As at 1/1/2020
Aging Allowance for Allowance for
Balance ECL rate(%) Balance ECL rate(%)
credit losses credit losses
Within 6
7,744,511.00 5.00 387,225.55 14,465,969.20 5.00 723,298.46
months
6 months-1
393,763.10 10.00 39,376.31
years
1-2 years 274,391.59 30.00 82,317.48
More than 3
5,689,018.01 100.00 5,689,018.01 5,689,018.01 100.00 5,689,018.01
years
Total 13,433,529.01 6,076,243.56 20,823,141.90 6,534,010.26
②Group 2: Accounts receivable due from combination of related parties :
As at 31/12/2020 As at 1/1/2020
Aging Allowance for Allowance for
Balance ECL rate(%) Balance ECL rate(%)
credit losses credit losses
combination of
50,351.00 14,782,020.00
related parties
Total 50,351.00 14,782,020.00
14.1.2 Provision, recovery or reversal of allowance for credit losses during the year
Provision of allowance for credit losses within this year is RMB-457,766.70 and recovery or reversal of provision during the
year is RMB 0.00.
14.1.3 Accounts receivable due from the top five debtors of the Company are as follows:
(%)Percentage in total Balance of allowance for
Company name Balance as at 31/12/2020
accounts receivable (%) credit losses as at 31/12/2020
HAIXINSHEN CO.,LTD 5,010,146.62 37.16 250,507.33
PACIFIC PANDA.INC 3,600,962.12 26.71 3,600,962.12
AFKO FISHERIES
2,489,537.91 18.46 124,476.90
COMPANY LIMITED
Xue Han 293,209.20 2.17 293,209.20
Ming Lu 158,154.98 1.17 158,154.98
Total 11,552,010.83 85.67 4,427,310.53
14.2 Other receivables
Category Balance as at 31/12/2020 Balance as at 1/1/2020
Interest receivable
Dividends receivable 101,777,374.94 94,566,287.92
Other receivables 106,275,077.33 90,924,556.66
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Category Balance as at 31/12/2020 Balance as at 1/1/2020
Less: Allowance for credit losses 3,553,611.55 3,721,971.88
Total 204,498,840.72 181,768,872.70
14.2.1 Dividends receivable
Item Balance as at 31/12/2020 Balance as at 1/1/2020
Subsidiary dividend 101,777,374.94 94,566,287.92
Less: Allowance for credit losses
Total 101,777,374.94 94,566,287.92
14.2.2 Other receivables
14.2.2.1 Category of other receivables by nature
Nature Balance as at 31/12/2020 Balance as at 1/1/2020
Internal current account 102,455,780.95 86,430,396.31
Revolving fund and other 3,819,296.38 4,494,160.35
Less: Allowance for credit losses 3,553,611.55 3,721,971.88
Total 102,721,465.78 87,202,584.78
14.2.2.2 Aging analysis of other receivables
Balance as at 31/12/2020 Balance as at 1/1/2020
Aging
Balance PCT (%) Balance PCT (%)
Within 6 months 51,184,907.86 48.16 28,899,712.54 31.79
6 months-1 years 965,983.19 0.91 10,532,528.69 11.58
1-2 years 24,151,205.40 22.73 19,060,919.56 20.96
2-3 years 18,320,374.75 17.24 5,249,795.25 5.77
More than 3 years 11,652,606.13 10.96 27,181,600.62 29.90
Total 106,275,077.33 100.00 90,924,556.66 100.00
14.2.2.3 The provision of allowance for credit losses
Stage one Stage two Stage three
The allowance for credit
Lifetime ECL Lifetime ECL Total
losses 12-month ECL
(credit-unimpaired) (credit-impaired)
Beginning balance 218,936.05 3,503,035.83 3,721,971.88
Revaluation of beginning
218,936.05 3,503,035.83 3,721,971.88
balance
Provision -163,545.89 14,258.56 -149,287.33
Reversal
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山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
The allowance for credit Stage one Stage two Stage three Total
losses
Write-off 19,073.00 19,073.00
Other changes
Ending balance 55,390.16 3,498,221.39 3,553,611.55
14.2.2.4 Other receivables due from the top five debtors are as follows:
Balance of
Percentage in
Balance as at allowance for
Debtor name Nature of balance Aging total other
31/12/2020 credit losses as at
receivables(%)
31/12/2020
AFRICA STAR FISHERIES Internal current
23,083,624.01 0-3 年 21.72
LIMITED account
LAIF FISHERIES Internal current
36,749,611.66 0-3 年 34.58
COMPANY LIMITED account
YAW ADDO FISHERIES Internal current
11,080,354.12 0-3 年 10.43
COMPANY LIMITED account
ZHONG GHA FOODS Internal current
8,477,341.67 0-3 年 7.98
COMPANY LIMITED account
Shandong Zhonglu Oceanic
Internal current
Fisheries Refrigeraton Co., 17,679,453.83 0-2 年 16.64
account
Ltd
Total 97,070,385.29 91.35
14.3 Long-term equity investments
As at 31/12/2020 As at 1/1/2020
Item Provision Provision
Balance for Carrying amount Balance for Carrying amount
impairment impairment
Investment to
232,189,455.23 232,189,455.23 232,189,455.23 232,189,455.23
subsidiaries
Total 232,189,455.23 232,189,455.23 232,189,455.23 232,189,455.23
14.3.1 Investment to subsidiaries
Provision
Balance of
Balance as at Additi Reduction Balance as at for provision
Investee impairment
1/1/2020 ons s 31/12/2020 for impairment as
in current
at 31/12/2019
period
HABITAT 12,476,145.60 12,476,145.60
INTERNATIONAL
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Provision
Balance of
Balance as at Additi Reduction Balance as at for provision
Investee impairment
1/1/2020 ons s 31/12/2020 for impairment as
in current
at 31/12/2019
period
CORP.
Shandong Zhonglu
Oceanic Fisheries
22,869,513.38 22,869,513.38
Transportation Co.,
Ltd.
Shandong Zhonglu
Oceanic (Yantai) 55,448,185.24 55,448,185.24
Food Co., Ltd.
Shandong zhonglu
Haiyan Oceanic 141,395,611.01 141,395,611.01
Fisheries Co., Ltd.
Total 232,189,455.23 232,189,455.23
14.4 Operating income and operating costs
Operating income and operating costs by category
Year ended 31/12/2020 Year ended 31/12/2019
Item
Income Cost Income Cost
Ⅰ. Primary operating business 108,685,800.84 99,119,500.56 165,454,472.43 120,934,031.01
Ⅱ. Other operating business 4,999,320.98 1,807,861.27 4,902,160.57 1,864,630.29
Total 113,685,121.82 100,927,361.83 170,356,633.00 122,798,661.30
14.5 Investment income
Item Year ended 31/12/2020 Year ended 31/12/2019
Gain/(Loss) from long-term equity investments in cost method 7,880,977.02 2,725,025.89
Investment income of structured deposits 15,287.67
Total 7,896,264.69 2,725,025.89
note:Subsidiary HABITAT INTERNATIONAL CORP. held a board resolution on December 29, 2020, According to 30% of the net
profit realized in 2019, dividends will be distributed to the parent company at 30% of the net profit realized in 2019, with a dividend
amount of RMB 7,880,977.02.
15. Supplementary information
15.1 Details of non-recurring gain or loss for the year
备注
Item Amount
Remark
Gain or loss on disposal of non-current assets, including the written-down portion for
10,164,623.19
impairment provision
Government grants (except the government grants closely related to the business of the
1,802,247.14
Company and enjoyed according to unified quota or ration standards)
Other non-operating income/(expenses) except the above items -11,692.73
Gain or loss from entrusting others to invest or manage assets 15,287.67
Effects of income tax on non-recurring items -247,241.88
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备注
Item Amount
Remark
Effects of non-recurring items attributable to the minority shareholders of the Company -2,256,471.10
Total 9,466,752.29
15.2 Return on equity and earnings per share
Weighted average return on Earnings per share
equity(%) Basic earnings per share Diluted earnings per share
Profit in report period
Year ended Year ended Year ended Year ended Year ended Year ended
31/12/2020 31/12/2019 31/12/2020 31/12/2019 31/12/2020 31/12/2019
Net profit attributable to the common
3.30 9.74 0.1110 0.3094 0.1110 0.3094
share holders
Net profit attributable to the common
shareholders after deducting 2.24 9.52 0.0754 0.3022 0.0754 0.3022
non-recurring gain or loss items
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山东省中鲁远洋渔业股份有限公司 2020 年年度报告全文
Section XIII. Documents available for reference
I. The financial statement of the Company with signature and seal from the person in charge of the Company,
person in charge of the accounting works and person in charge of accounting;
II. Original audit report seal with accounting firms and signature and seal from CPA;
III. Original text of all documents of the Company as well as manuscript of the announcement that disclosed on
website appointed by CSRC.
Shandong Zhonglu Oceanic Fisheries Co., Ltd.
Chairman: Lu Lianxing
27 March 2021
134
