山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Shandong Zhonglu Oceanic Fisheries Company Limited
Annual Report 2021
April 2022
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山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Section I. Important Notice, Contents and Interpretation
Board of Directors, Board of Supervisory, all directors, supervisors and senior
executives of Shandong Zhonglu Oceanic Fisheries Company Limited
(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 2021 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 “XI. Outlook of future
development” in the Section III. “Management Discussion and Analysis”, which
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山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
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 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 2021 年年度报告全文
Contents
Section I Important Notice, Contents and Interpretation .............................................................. 2
Section II Company Profile and Main Financial Indexes ............................................................ 7
Section IIIManagement Discussion and Analysis ......................................................................... 13
Section IV Corporate Governance. ................................................................................................ 34
Section V Enviornmental and Social Responsibility ..................................................................... 53
Section VI Important Events……………………………………………………...........................54
Section VII Changes in shares and particular about shareholders……………………………..67
Section VIII Preferred Stock ......................................................................................................... 74
Section IX Corporate Bonds ........................................................................................................... 75
Section X Financial Report ............................................................................................................. 76
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山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Documents Available for Reference
(1)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;
(2) Original audit report with seal of the accounting firms and signature and seal of the CPA;
(3) Original copies of all documents and announcements that have been released publicly during the reporting
period;
(4)Text of Annual Report 2021 with the signature of the legal person
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山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Interpretation
Items Refers to Contents
The Company, Company or ZLYY Refers to Shandong Zhonglu Oceanic Fisheries Company Limited
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 2021 compiled by the Company
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山东省中鲁远洋渔业股份有限公司 2021 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
Historical changes of No.57 Lishan Road, Jinan, P.R.C.→No.43 Heping Road, Jinan, Shandong→ No. 29 Miaoling Rd.
registered address Laoshan District, Qingdao, Shandong
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 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
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山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
III. Information disclosure and preparation place
Website of the Stock Exchange where the annual report In China: China Securities Journal; overseas: Hong Kong Commercial
of the Company disclosed Daily
Media and Website where the annual report of the
http://www.cninfo.com.cn
Company disclosed
Preparation place for annual report Office of the BOD
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 import &
export business within the approved scope; manufacturing and sales of ice 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; 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)
Changes of main business since listing (if 2002.05.28: business scope of the Company changed from “Offshore, pelagic fishing;
applicable) 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,
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山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
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
Previous changes for controlling total share capital. On July 20, 2018, Shandong State-owned Assets Investment and
shareholders (if applicable) Lucion Group signed the "Share Transfer Agreement of Shandong 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.
V. Other relevant information
CPA engaged by the Company
Name of CPA SCPA (LLP )
Offices add. for CPA 25/F, No. 755 Weihai Road, Jinan District, Shanghai
Signing Accountants Zhang Xiaorong, Ma Haijun
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
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山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
correction or not
□Yes √ No
Changes (+,-)
2021 2020 compared with the 2019
previous year
Operating income (RMB) 934,284,403.21 966,213,019.66 -3.30% 1,128,951,902.68
Net profit attributable to
shareholders of the listed company 35,526,982.23 29,537,498.13 20.28% 82,311,630.23
(RMB)
Net profit attributable to
shareholders of the listed company
30,732,469.56 20,070,745.84 53.12% 80,410,900.02
after deducting non-recurring gains
and losses (RMB)
Net cash flow arising from
169,895,824.82 113,245,710.65 50.02% 110,296,542.67
operating activities(RMB)
Basic earnings per share
0.13 0.11 18.18% 0.31
(RMB/Share)
Diluted earnings per share
0.13 0.11 18.18% 0.31
(RMB/Share)
Weighted average ROE 3.87% 3.30% 0.57% 9.74%
Changes (+,-)
compared with the
Year-end of 2021 Year-end of 2020 Year-end of 2019
year-end of previous
year
Total assets (RMB) 1,400,134,960.71 1,259,611,234.89 11.16% 1,288,526,843.80
Net assets attributable to
shareholder of listed company 933,535,874.90 903,248,772.52 3.35% 887,201,969.69
(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
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山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
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.
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
Unit: RMB/CNY
Q1 Q2 Q3 Q4
Operating income 160,723,204.42 195,630,719.43 298,181,582.54 279,748,896.82
Net profit attributable to
-4,733,983.20 -4,225,387.86 39,401,482.41 5,084,870.88
shareholders of the listed company
Net profit attributable to
shareholders of the listed company
-5,196,703.37 -4,556,626.32 39,135,667.37 1,350,131.88
after deducting non-recurring gains
and losses
Net cash flow arising from
-36,732,444.12 -14,178,156.38 102,397,521.29 118,408,904.03
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
Unit: RMB/CNY
Item 2021 2020 2019 Note
Gains/losses from the disposal of non-
current asset (including the write-off that 3,494,326.93 10,164,623.19
accrued for impairment of assets)
Governmental subsidy reckoned into current
gains/losses (except for those with normal
2,484,454.50 1,802,247.14 2,704,851.78
operation business concerned, and conform
to the national policies & regulations and are
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山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
continuously enjoyed at a fixed or
quantitative basis according to certain
standards)
Gains/losses from debt restructuring -127,527.03
Gains/losses from changes of fair values
occurred in holding trading financial assets,
trading financial liabilities, and investment
income obtaining from the disposal of trading
49,972.60 15,287.67
financial assets, trading financial liability and
financial assets available for sale, excluded
effective hedging business relevant with
normal operations of the Company
Other non-operating income and expenditure
798,473.53 -11,692.73 -22,546.48
except for the aforementioned items
Less: Impact on income tax 1,086,874.90 247,241.88 229,456.99
Impact on minority shareholder ’ s
818,312.96 2,256,471.10 552,118.10
equity (after-tax)
Total 4,794,512.67 9,466,752.29 1,900,730.21 --
Specific information on other items of profits(gains)/losses that qualified the definition of non-recurring profit(gain)/loss
□Applicable √Not applicable
The Company does not have other items of profits(gains)/losses that qualified the definition of non-recurring profit(gain)/loss
Information on the definition of non-recurring profit(gain)/loss that listed in the Q&A Announcement No.1 on Information Disclosure
for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss as the recurring
profit(gain)/loss
□Applicable √Not applicable
The Company does not have any non-recurring profit(gain)/loss listed under the Q&A Announcement No.1 on Information Disclosure
for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring) Profit(gain)/loss defined as recurring
profit(gain)/loss
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山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Section III. Management Discussion and Analysis
I. Industry of the Company during the reporting period
Industry situation of the company: according to the data of China Ocean Fisheries Association, in 2020, there were 180 legitimate
ocean-going fishery enterprises in China, and the operating waters involved the exclusive economic zone waters of more than 40
countries, the high seas of the three oceans and the Antarctic waters. The scale of the ocean-going fishery industry enters the forefront
of the world, the industrial structure is increasingly optimized, the equipment level is significantly improved, the scientific and
technological support is significantly enhanced, the management system is improved day by day, and the ocean fishery is developing
in the direction of transformation and upgrading, and standardized management. However, the scientific and technological support and
the comprehensive development and utilization capabilities of resources are still low, and there is still a big gap compared with the
world-class fishery enterprises. At the same time, negative factors such as the rapid increase in the cost of domestic human resources
and the shortage of employees, especially crew members, are expected to plague the development of the ocean fishing industry for a
long time. Enterprises need to continuously increase investment in science and technology, accelerate transformation and upgrading,
enhance core competitiveness, and actively respond to the rapidly changing industry development situation.
After more than 20 years of development, the domestic tuna market sold over 10,000 tons in 2019. In addition to the rapid growth of
large coastal cities such as Shanghai, Beijing, Guangzhou, and Fujian, the consumption potential of the inland market has also been
activated simultaneously, forming a large-scale trend. The Blue Book of China’s Marine Economy (2021) compiled by Ocean
University of China not only summarizes the past achievements of China’s marine economic development, but also analyzes and looks
forward to the new development in the 14th Five-Year Plan period. In particular, the Blue Book mentions that under the background of
the overall stability of the macro economy, the continuous optimization of the policy environment, the rich reserves of marine resources,
and the significant improvement of the scientific and technological environment, it is clear that the marine economy will continue its
recovery growth. It is foreseeable that the development of the marine economy in the future will unswervingly implement the new
development concept, take technological innovation as the main means, and develop towards the high-end, clustering,
internationalization, informatization and intelligence of the marine industry, which also injects a booster for the sustainable
development of the tuna domestic market. For Zhonglu Oceanic, which has been focusing on the marine economy and adhering to the
sustainable development strategy, the future development is bound to be stronger and more powerful with the help and empowerment
of macro policies.
II. Main businesses of the company during the reporting period
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. ①In terms of longline fishing, the main operating area was in the Indian Ocean. In the first half of the
year, there was no normal flourishing situation in the Somali cooperation zone, and there was no high-quality fishery in the high seas,
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山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
and the output declined, especially, the yellow fin tuna species declined significantly. Though 14 work-boats tried various means,
including decentralized operations, temperature analysis of fishing grounds, etc., there was still no major breakthrough in fishing output.
② In terms of purse seine fishing, the main operating area was in the Atlantic Ocean. The fishing off season in this period was longer
than last year. In addition, due to the pandemic and others, the dock repair and demurrage time was longer, which affected the operating
time to a certain extent. ③The work-boat of Ghana trawling project was in aging condition, the output decreased, and the operating
income decreased 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.
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, strengthened the ship equipment maintenance,
ensured the sailing rate; 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 crew conciliation, ensured the
personal safety and health on ships and shores, guaranteed safe production, and promoted high-quality development of enterprises.
3. Refrigerated processing& trade
During the reporting period, affected by the epidemic, refrigerated processing and trading business of the Company are mainly focused
on inventory controlling and stabilizing market shares. There are more than 20 tuna species processed in the segment, such as halibut,
yellow fin, blue fin, albacore, sword flag, red flag and black flag. The product forms included tuna slices, cubes, slabs and milk-grade
cheese and so on. Products are mainly exported, mainly to Japan, the United States, Russia, the EU, South Korea, Israel and other
countries. The Company has got HACCP registration, EU certification, BRC certification, MSC certification, and SEDEX certification.
We has established a multi-integrated sales network integrating micro-business + e-commerce + supermarkets + sub-warehouses in
domestic markets. And 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.
Business model: The company adopts a centralized diversified business model.
Market status: One of the five major ocean-going fishery companies in China, the vice president unit of China Oversea Fisheries
Association, the president unit of Qingdao Oversea Fisheries Association.
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 the 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
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山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
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. ③distant fishery of the Company 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; three are 14 ultra-low temperature tuna vessels in the Indian Ocean engaged
in tuna longline production, which is one of the Company’s main business that 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 four 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 Refrigerated transportation is an important part of the company’s main business, the existing
refrigerated transport fleet is at the forefront of the Southeast Asia transportation market in terms of the number of vessels, gross
tonnage and profitability; ⑤With 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 in Zhonglu
Refrigerated Logistics Center was partially renovated for ultra-low temperature, increasing the capacity of ultra-low temperature
storage with remarkable effect; ⑥The 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 2021 年年度报告全文
IV. Main business analysis
1.Overview
Please refer to the “II. Main businesses of the company during the reporting period” under “Section III. Management Discussion and
Analysis”.
2. Income and cost
(1) Constitute of operating income
Unit: RMB/CNY
2021 2020
Increase/decrease y-
Ratio in operating Ratio in operating
Amount Amount o-y (+,-)
income income
Total operating
934,284,403.21 100% 966,213,019.66 100% -3.30%
income
According to industries
Pelagic fishing 382,802,775.17 40.97% 395,568,763.49 40.94% -3.23%
Refrigerated
92,334,301.43 9.88% 100,719,597.20 10.42% -8.33%
transport
Cold storage
619,092,271.58 66.26% 552,094,964.64 57.14% 12.14%
processing trade
Other 4,336,099.74 0.46% 5,327,771.22 0.55% -18.61%
Internal transaction
-164,281,044.71 -17.58% -87,498,076.89 -9.06% -87.75%
offset
According to products
Pelagic fishing 382,802,775.17 40.97% 395,568,763.49 40.94% -3.23%
Refrigerated
92,334,301.43 9.88% 100,719,597.20 10.42% -8.33%
transport
Cold storage
619,092,271.58 66.26% 552,094,964.64 57.14% 12.14%
processing trade
Other 4,336,099.74 0.46% 5,327,771.22 0.55% -18.61%
Internal transaction
-164,281,044.71 -17.58% -87,498,076.89 -9.06% -87.75%
offset
According to region
Japan 297,158,828.45 31.81% 250,064,056.94 25.88% 18.83%
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山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Mainland China 331,916,810.55 35.53% 266,985,098.63 27.63% 24.32%
Taiwan China 102,521,738.43 10.97% 108,201,657.59 11.20% -5.25%
Ghana 134,729,189.69 14.42% 190,929,341.39 19.76% -29.44%
Russia 51,223,691.00 5.48% 54,257,999.06 5.62% -5.59%
Other 181,015,189.80 19.37% 183,272,942.94 18.97%
Internal transaction
-164,281,044.71 -17.58% -87,498,076.89 -9.06% -87.75%
offset
According to sales model
Direct sales 934,284,403.21 100.00% 966,213,019.66 100.00% -3.30%
(2) The industries, products, regions or sales model accounting for over 10% of the Company’s operating
revenue or operation profit
√Applicable □ Not applicable
Unit: RMB/CNY
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 382,802,775.17 364,173,138.00 4.87% -3.23% 0.93% -3.92%
Refrigerated
92,334,301.43 71,664,655.72 22.39% -8.33% 6.06% -10.53%
transport
Cold storage
619,092,271.58 576,118,584.27 6.94% 12.14% 7.58% 3.94%
processing trade
According to products
Pelagic fishing 382,802,775.17 364,173,138.00 4.87% -3.23% 0.93% -3.92%
Refrigerated
92,334,301.43 71,664,655.72 22.39% -8.33% 6.06% -10.53%
transport
Cold storage
619,092,271.58 576,118,584.27 6.94% 12.14% 7.58% 3.94%
processing trade
According to region
Japan 297,158,828.45 276,146,270.58 7.07% 18.83% 15.73% 2.49%
Mainland China 331,916,810.55 309,602,463.93 6.72% 24.32% 25.13% -0.61%
Taiwan China 102,521,738.43 81,175,706.72 20.82% -5.25% 8.45% -10.00%
Ghana 134,729,189.69 119,165,308.11 11.55% -29.44% -32.78% 4.40%
According to sales model
Direct sales 934,284,403.21 849,588,130.75 9.07% -3.30% -3.28% -0.02%
17
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
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
Increase/decrease y-
Industries Item Unit 2021 2020
o-y (+,-)
Sales volume Ton 29,764 38,970 -23.62%
Pelagic fishing Production Ton 27,122 40,099 -32.36%
Inventory Ton 6,695 9,337 -28.30%
Sales volume Ton 15,335 14,726 4.14%
Cold storage
Production Ton 13,859 13,030 6.36%
processing trade
Inventory Ton 4,003 5,479 -26.94%
Reasons for y-o-y relevant data with over 30% changes
√ Applicable □ Not applicable
Due to the extension of fishing moratorium and impact of COVID-19, pelagic fishing of the Company are declined in production.
(4) Performance of significant sales contracts, major procurement contract entered into by the Company up
to the current reporting period
□ Applicable √ Not applicable
(5) Composition of operation cost
Industry classification
Unit: RMB/CNY
2021 2020
Industry Increase/decrease
Item Ratio in operation Ratio in operation
classification Amount Amount y-o-y (+,-)
cost cost
Access fishing
Pelagic fishing 11,752,188.47 3.23% 15,522,437.75 4.30% -24.29%
fee
Pelagic fishing Raw material 63,706,896.43 17.49% 72,184,252.64 20.01% -11.74%
Pelagic fishing Fuels & energy 85,770,498.01 23.55% 88,822,368.76 24.62% -3.44%
Staff
Pelagic fishing 61,052,745.16 16.76% 80,970,871.40 22.44% -24.60%
remuneration
Pelagic fishing Depreciation cost 27,030,787.00 7.42% 28,566,670.85 7.92% -5.38%
18
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Pelagic fishing Other 114,860,022.94 31.54% 74,748,346.18 20.72% 53.66%
Pelagic fishing Total 364,173,138.00 100.00% 360,814,947.58 100.00% 0.93%
Refrigerated Staff
32,096,510.72 44.79% 27,723,643.26 41.03% 15.77%
transport remuneration
Refrigerated
Depreciation cost 8,694,026.00 12.13% 9,068,172.36 13.42% -4.13%
transport
Refrigerated
Material 7,687,124.29 10.73% 10,807,480.03 16.00% -28.87%
transport
Refrigerated
Inspection fee 1,206,520.78 1.68% 1,185,800.18 1.76% 1.75%
transport
Refrigerated
Premium 4,177,552.31 5.83% 4,018,632.35 5.95% 3.95%
transport
Refrigerated
Fuel 3,930,918.41 5.49% 4,080,621.97 6.04% -3.67%
transport
Refrigerated
Repair charge 5,860,423.67 8.18% 5,097,541.51 7.54% 14.97%
transport
Refrigerated
Other 8,011,579.54 11.18% 5,584,971.93 8.27% 43.45%
transport
Refrigerated
Total 71,664,655.72 100.00% 67,566,863.59 100.00% 6.06%
transport
Cold storage Direct raw
495,886,938.20 86.07% 460,688,161.41 86.03% 7.64%
processing trade material
Cold storage
Wrappage 16,571,451.14 2.88% 14,612,588.20 2.73% 13.41%
processing trade
Cold storage
Labor salary 29,735,610.88 5.16% 27,898,994.46 5.21% 6.58%
processing trade
Cold storage
Depreciation 6,672,797.90 1.16% 5,917,816.15 1.11% 12.76%
processing trade
Cold storage
Other 27,251,786.15 4.73% 26,394,197.35 4.93% 3.25%
processing trade
Cold storage
Total 576,118,584.27 100.00% 535,511,757.57 100.00% 7.58%
processing trade
Other Labor charges 90,000.00 4.70% 87,329.00 4.32% 3.06%
Out-of-pocket
Other 3,999.90 0.21% 8,582.00 0.42% -53.39%
expenses
Other Depreciation cost 1,452,005.25 75.83% 1,540,077.83 76.17% -5.72%
Other Electricity 160,327.67 8.37% 194,541.30 9.62% -17.59%
Other Repair charge 58,598.51 3.06% 41,417.00 2.05% 41.48%
19
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Other Heating fee 149,915.29 7.83% 149,915.29 7.41% 0.00%
Other Total 1,914,846.62 100.00% 2,021,862.42 100.00% -5.29%
Internal
-164,283,093.86 -87,498,076.89 -87.76%
transaction offset
Explanation
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
One new secondary enterprise was included in the consolidation scope of the Company during the reporting period, that is: Zhonglu
Oceanic (Qingdao) Industrial Investment Development Co., Ltd-the new controlling subsidiary established by the Company; other
consolidation scope is consistent with the same period of the previous year.
(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) 434,249,971.10
Proportion in total annual sales volume for top five clients 46.48%
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. 139,710,908.71 14.95%
2 NOTOS ＆ COMPANY LIMITED 96,596,018.60 10.34%
3 Lianhua Seafoods Co., Ltd 74,988,219.59 8.03%
4 Japan Weekly Co., Ltd. 65,819,256.48 7.04%
5 Japan Dohsui Co., Ltd. 57,135,567.72 6.12%
Total -- 434,249,971.10 46.48%
Other situation of main clients
□ Applicable √ Not applicable
Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 252,431,342.93
20
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Proportion in total annual purchase amount for top five
44.96%
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 CNFC Overseas Fishery Co., Ltd. 96,911,255.23 17.26%
2 Rongcheng Rongyuan Fishery Co., Ltd. 56,769,522.30 10.11%
3 Rongcheng Ocean Fishery Co., Ltd. 51,094,752.97 9.10%
United Petroleum & Chemicals (H.K.)
4 25,258,205.76 4.50%
Co., Ltd.
5 BOSHUN LOGISTICS LIMITED 22,397,606.67 3.99%
Total -- 252,431,342.93 44.96%
Other notes of main suppliers of the Company
□ Applicable √ Not applicable
3. Expense
Unit: RMB/CNY
Increase/decrease
2021 2020 Note for major changes
y-o-y (+,-)
Sales expense 3,548,619.96 3,669,759.70 -3.30%
Management expense 64,478,320.35 49,476,821.86 30.32% Increase in labor costs
Decrease in foreign exchange rate
Financial expense 12,474,514.08 22,961,222.69 -45.67%
losses
R& D expense 765,456.70 57,924.28 1,221.48% Increase in R&D investment
4. R&D investment
√ Applicable □ Not applicable
Expected impact on the future
Projects Purpose Progress Goals to be achieved
development of the Company
Innovation of the Promoting the development of
Develop and produce the
re-processing & deep processing and high
higher value-added Completed Reuse of the by-products
utilization of tuna value development of the
products
by-products aquatic products
R&D personnel
21
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
2021 2020 Change ratio (+,-)
Number of R&D personnel
10 12 -16.67%
(people)
Ratio of R&D personnel 1.09% 2.72% -1.63%
Educational background —— —— ——
Undergraduate 3 2 50.00%
Master 1 0
Junior college 6 10 -40.00%
Age composition —— —— ——
Under 30 7 9 -22.22%
30~40 3 3 0.00%
Information of R&D investment
2021 2020 Change ratio (+,-)
Investment for R&D (RMB) 765,456.70 57,924.28 1,221.48%
R&D investment/Operating
0.08% 0.01% 0.07%
income
Capitalization of R&D
0.00 0.00 0.00%
investment (RMB)
Capitalization of R&D
0.00% 0.00% 0.00%
investment/R&D investment
Reasons and effects of significant changes in composition of the R&D personnel
□ Applicable √ Not applicable
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
Unit: RMB/CNY
Item 2021 2020 Increase/decrease y-o-y (+,-)
Subtotal of cash in-flow from
1,055,769,245.34 1,044,766,426.68 1.05%
operation activity
Subtotal of cash out-flow from
885,873,420.52 931,520,716.03 -4.90%
operation activity
Net cash flow arising from 169,895,824.82 113,245,710.65 50.02%
22
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
operating activities
Subtotal of cash in-flow from
10,169,097.24 26,669,035.36 -61.87%
investment activity
Subtotal of cash out-flow from
336,947,752.68 43,188,538.60 680.18%
investment activity
Net cash flow arising from
-326,778,655.44 -16,519,503.24 -1,878.14%
investment activities
Subtotal of cash in-flow from
227,138,476.01 51,867,033.47 337.92%
financing activity
Subtotal of cash out-flow from
111,583,222.48 64,774,888.53 72.26%
financing activity
Net cash flow arising from
115,555,253.53 -12,907,855.06 995.23%
financing activities
Net increased amount of cash
-46,086,305.94 71,131,973.21 -164.79%
and cash equivalent
Main factors of related data’s significant changes on a year-on-year basis
√ Applicable □ Not applicable
(1) Net cash flow arising from investment activities increase in outflow compared to the same period of last year, mainly due to the
increase in expenditures on fixed assets such as purchasing and constructing the fishing vessels, transport vessels and business premises
during the reporting period;
(2) Net cash flow arising from financing activities increase in inflow compared to the same period of last year, mainly due to the
increase in bank loans for purchasing and constructing the fixed assets during the reporting period.
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)Impact of the difference in depreciation of fixed assets was 52.15 million yuan;
(2)Difference impact amount of inventory was 58 million yuan;
(3)Difference impact amount of operating receivables and payable was 14.37 million yuan
The above caused major differences between net profit and operating cash flow.
V. Analysis of the non-main business
√ Applicable □ Not applicable
Unit: RMB/CNY
Amount Ratio in total profit Note Whether be sustainable
Investment earnings -77,554.43 -0.19% Loss of debt restructuring Without sustainability
Provision for the decline in
Asset impairment -7,167,438.13 -17.54% Without sustainability
value of inventories
Non-operating 884,810.25 2.17% Insurance payouts Without sustainability
23
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
income
Non-operating
86,336.72 0.21% Fixed assets obsolescence Without sustainability
expense
VI. Analysis of assets and liabilities
1. Major changes of assets composition
Unit: RMB/CNY
Year-end of 2021 Year-begin of 2021 Changes
Ratio in total Ratio in total of ratio Note for major changes
Amount Amount
assets assets (+,-)
210,573,782.4
Monetary fund 15.04% 255,811,982.21 20.23% -5.19%
9
Account
37,806,586.91 2.70% 66,263,029.81 5.24% -2.54%
receivable
277,095,357.7
Inventories 19.79% 338,885,629.06 26.80% -7.01%
5
Investment real
30,108,932.75 2.15% 31,435,009.43 2.49% -0.34%
estate
476,894,877.5
Fixed assets 34.06% 506,290,822.70 40.04% -5.98%
6
Purchasing and constructing the fishing
Construction in 165,273,027.7
11.80% 3,705,815.70 0.29% 11.51% vessels, transport vessels and business
progress 5
premises during the reporting period
Right-of-use
2,354,943.86 0.17% 5,498,108.96 0.43% -0.26%
assets
Short-term loans 10,013,291.67 0.72% 41,268,275.50 3.26% -2.54%
Contract
13,220,675.60 0.94% 12,453,619.79 0.98% -0.04%
liability
Increase in bank loans for purchasing
149,393,532.3
Long-term loans 10.67% 10.67% and constructing the fixed assets during
7
the reporting period.
Lease liability 1,709,314.65 0.14% -0.14%
Foreign assets account for a relatively high proportion
√ Applicable □ Not applicable
Assets Operation Controlling Earnings Foreign Whether
Causes Size of assets Location
specifics model measures to status assets /net there is a
24
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
safeguard the assets of the significant
security of Company risks of
the assets impairment
(Y/N)
HABITAT The wholly-
INTERNATI owned Vessel &
262,164,701. Independent
ONAL subsidiary Panama personnel 9,157,896.69 23.93% N
61 operations
CORPORATI established insurance
ON offshore
Insurance of
ZHONG The wholly- the assigned
GHA owned overseas
128,683,695. Independent
FOODS subsidiary Ghana professional -6,144,817.99 11.75% N
11 operations
COMPANY established management
LIMITED offshore team,vessels
and personnel
2. Assets and liability measure by fair value
√ Applicable □ Not applicable
Unit: RMB/CNY
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
5,000,000.00 5,000,000.00 0.00
ve financial
assets
excluded)
Total of above 5,000,000.00 5,000,000.00 0.00
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
25
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
3. Assets right restriction till end of reporting period
Item Ending book value Limited cause
Monetary fund 924,476.50 L/C guarantee deposit
Fixed assets 31,121,060.56 Loan mortgage
Intangible assets 5,031,624.56 Loan mortgage
Construction in progress 66,722,605.94 Loan mortgage
Total 103,799,767.56 --
VII. Investment analysis
1. Overall situation
√ Applicable □ Not applicable
Amount invested (RMB) Last period’s amount (RMB) Changes
329,564,194.60 12,909,331.81 2,452.91%
2. The major equity investment obtained during the Reporting Period
√ Applicable □ Not applicable
Unit: RMB/CNY
Gains/l
Name Progres Whethe
osses
of s as of Expecte r it is Disclos
Main Investm Investm Shareh Investm on Disclos
investe Capital Partner Product the d involve ure
busines ent ent olding ent investm ure (if
e sources s type balance earning d in a index
s method amount ratio term ent in any)
compan sheet s lawsuit (if any)
the
y date (Y/N)
Period
Zhongl Registr Refer to
u ation the
Oceani for Notice
c industr on
(Qingd y& Externa
Industri Industri
ao) Newly comme - l
al 65,292, 100.00 Own Indefini al 2021-
Industri establis N/A rce has 0.00 201,47 N Investm
investm 500.00 % funds te investm 09-10
al hed been 6.92 ent of
ent ent
Invest complet Subsidi
ment ed in ary
Develo Septem Establis
pment ber hment
Co., 2021 (Notice
26
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Ltd No.:
2021-
33) on
Juchao
Website
(www.c
ninfo.c
om.cn)
for
details.
-
65,292,
Total -- -- -- -- -- -- -- -- 0.00 201,47 -- -- --
500.00
6.92
3. The major non-equity investment in progress during the reporting period
√ Applicable □ Not applicable
Unit: RMB/CNY
Reasons
Cumulati
Cumulati for not
ve actual
Whether ve meeting
amount
it is a Amount earnings the
Investme Industrie invested Disclosu Disclosu
fixed input in Capital Expected as of the planned
Item nt s a of the Progress re (if re index
assets the sources earnings end of progress
method involved end of any) (if any)
investme Period the and
the
nt (Y/N) reporting estimate
reporting
period d
period
earnings
Refer to
Construc the
ting 2 Notice
large on
tuna Construc
Failure
purse Bank ting 2
to
seiners 140,835, 140,835, loans, 56,790,0 2021-07- large
Self-built Y Fishery 12.50% 0.00 achieve
for high 100.00 100.00 own 00.00 02 Tuna
producti
seas funds Purse
on
producti Seiners
on in the for High
Pacific Seas
Ocean Producti
on in the
27
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Pacific
Ocean
(Notice
No.:
2021-21)
on
Juchao
Website
(www.cn
info.com
.cn) for
details.
Zhonglu
Failure
Marine
Cold to
Innovati Self- 50,050,0 50,050,0 Own
Y storage, 0.00 achieve
on build 00.00 00.00 funds
logistics producti
Industria
on
l Park
190,885, 190,885, 56,790,0
Total -- -- -- -- -- 0.00 -- -- --
100.00 100.00 00.00
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
The Company had no securities investment during the reporting period.
(2) Derivative investment
□ Applicable √ Not applicable
The Company had no derivatives investment during the reporting period.
5. Application of raised proceeds
□ Applicable √ Not applicable
The company had no application of raised proceeds during the reporting period.
VIII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
28
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
The Company had no sales of major assets during the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
IX. Analysis of main holding company and stock-jointly companies
√Applicable □Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
Unit: RMB/CNY
Company Main Register Operating Operating
Type Total assets Net assets Net profit
name business capital income profit
Shandong
Zhonglu
Refrigerated 22,505,600.0 52,927,920.1 20,798,772.7 30,133,784.4
Fishery Subsidiary 5,723,048.82 5,722,501.52
transport 0 1 7 6
Shipping Co.,
Ltd.
Shandong
Zhonglu
Food 75,593,300.0 306,142,986. 221,113,746. 619,092,271. 24,834,985.2 24,749,245.8
Oceanic Subsidiary
processing 0 75 29 58 9 7
(Yantai) Food
Co., Ltd.
HABITAT
INTERNATI
Refrigerated 12,476,146.0 262,164,701. 182,590,087. 62,200,516.9
ONAL Subsidiary 9,157,896.69 9,157,896.69
transport 0 61 82 7
CORPORAT
ION
Shandong
Zhonglu
Haiyan Pelagic 221,617,349. 458,634,460. 395,564,638. 249,754,578.
Subsidiary 1,880,525.58 2,751,856.01
Oceanic fishing 00 60 07 58
Fishery Co.,
Ltd.
Particular about subsidiaries obtained or disposed in report period
√ Applicable □ Not applicable
Method of acquisition and disposal during Impact on overall production operations
Subsidiary
the reporting period and results
Zhonglu Oceanic (Qingdao) Industrial Still in preparation period and not put into
Establishment
Investment Development Co., Ltd operation
Explanation on main joint stock companies
29
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Shandong Zhonglu Haiyan Oceanic Fishery Co., Ltd.: During the reporting period, the operating profit was 1,880,525.58 yuan, a
91.21% decrease compared with the same period last year. The main reasons for the decrease were as follows: affected by extension
of fishing moratorium, vessel dock repair and other circumstances, the seine fishing production declined, than the sales drops
correspondingly, and higher unit costs resulting in a lower profits; Shandong Zhonglu Fishery Shipping Co., Ltd.: operating profit
was 5,723,048.82 yuan during the reporting period, with a y-o-y increase of 186.92%, mainly because: gains on disposal of the assets
of transport vessels during the reporting period, 3.48 million yuan generated; Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd. :
operating profit was 24,834,985.29 yuan during the reporting period, a668.69% up from a year earlier with larger growth rate, mainly
because: the previous year was affected by more severe global epidemic, the tuna export business gradually recovered in the year with
an increase in export orders, the domestic market continued rebound and leading to an increase in profit; HABITAT
INTERNATIONAL CORPORATION: operating profit during the reporting period was 9,157,896.69 yuan, a 43.54% down from a
year earlier with larger reduction, mainly because: due to the epidemic, crew rotation costs increased, the rental income declined for
the increase of days for rental suspension, moreover, the revenue drops due to the impact of exchange rate changes, than the profit
declined.
X. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
XI. Outlook of future development
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 transportation and recharge.
(i)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, the 2 large seine vessels (groups) that newly built 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, there are currently two cooperation zones in Somalia and Tanzania, which provide a strong guarantee for stable and high
production. After a lapse of 4 years, the company re-enters the Tanzania cooperation zone for production. At present, the production
is in good condition, and the fish output has rebounded significantly. At the same time, the cooperation negotiation on fishing in
Somalia has been successfully concluded, and the operation can be started after the payment of the cooperation fee. According to the
production plan, the company will transfer to the Somalia cooperation zone after the fishing period in Tanzania ends next year. We
30
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
will make good use of the advantages of fishing in the cooperation area, stabilize the output and increase the income; in terms of purse
seine ships, continue to invest in two purse seine ships projects, which are currently in the stage of small-scale assembly of hull sectional
materials, and the completed quantities account for 12.5% of the total quantities, our company dispatches shipbuilding experts
(including ship builders) and technical backbones to the shipyard to monitor the whole process of ship construction. In terms of trawl
production, it is planned to build two new fishing vessels with advanced equipment, suitable for modern marine fishery production and
in line with the national industrial policy to replace the existing two old trawlers in the waters of Ghana.
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.
(ii) 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
industry as the development line, the Company endeavors to broaden brand recognition and extend industrial chain pursuant to the
development idea of “stabilize fishing, strengthen cold storage, processing & trading, and transportation as an integrated industry chain
model, optimize the structure and transforming & upgrading”.
(iii) Working plan for 2022
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 fencing 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.②Stabilize 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
31
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
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.
(iv) 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. Prevention and control of the epidemic overseas is difficult to have improvement, the impact on
aquatic processing industry is still lingering; frequent occurrence of stagnant export cargo and high sea freight costs have resulted a
high price fluctuations of the fish products.
Countermeasures: accelerate the construction of circulations domestically as the main body, and a new pattern of dual domestic &
international circulation to promote each other; precise docking to the domestic markets, R&D the marketable cooked food products
and widen the domestic channels in sales.
3. The risk that front-line production technicians cannot rotate. Due to the restrictions of the pandemic prevention and control policies
of overseas countries, the crew cannot rotate on time, which brings hidden dangers to the safety of the company’s ships and the health
of the crew. The air fare is high for crew members to change shifts overseas, and the cost of quarantine for inbound personnel is high.
Countermeasures: 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 repairs, and solve the situation that shore-based personnel cannot come to
the ship to conduct audits and dock repairs due to the impact of the pandemic, so as to guarantee the safety of ship and shore personnel
and the smooth progress of various tasks.
4. Risk of exchange rate fluctuations. The exchange rate of RMB against the U.S. dollar continues to appreciate. Although the foreign
trade situation continues to improve, it is faced with a shortage of raw materials, rising prices, and continued appreciation of the RMB,
there are many orders with thin profits, which can not cover the losses caused by exchange rate changes.
Countermeasures: The company will pay close attention to the exchange rate trend and settle foreign exchange in a timely manner;
actively promote the settlement of export business in RMB; at the same time, strengthen cooperation with financial institutions in
exchange rate risk management, and adjust the balance of foreign currency assets held within the possible range, and use hedging tools
to mitigate foreign exchange risk when necessary.
5. 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.
32
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
XII. Reception of research, communication, interview and other activities during the reporting
period
√ Applicable □ Not applicable
Main contents of
the discussion
Basic situation index of
Time Location Way Reception object Type and the
investigation
information
provided
The Telephone Operation of the
2021-03-19 Individual Individual Not applicable
Company communication Company
The Telephone Operation of the
2021-07-02 Individual Individual Not applicable
Company communication Company
The Telephone Operation of the
2021-09-10 Individual Individual Not applicable
Company communication Company
The Telephone Operation of the
2021-09-24 Individual Individual Not applicable
Company communication Company
The Telephone Operation of the
2021-12-22 Individual Individual Not applicable
Company communication Company
33
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Section IV. Corporate Governance
I. Basic state of corporate governance
During the reporting period, by strictly followed requirement of relevant laws and regulations of “Company Law”, “Securities Laws”,
“Rules of Corporate Governance for Listed Company”, “Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies
No.1 -Standardized Operation of Listed Companies on Main Board” 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”.
Whether there are significant differences between the actual state of corporate governance and laws, administrative regulations and the
provision with governance concerned for listed companies issued by CSRC
□Yes √ No
There are no significant differences between the actual state of corporate governance and laws, administrative regulations and the
provision with governance concerned for listed companies issued by CSRC
II. Independence of the Company relative to controlling shareholder and the actual controller
in ensuring the Company’s assets, personnel, finance, organization and businesses
During the reporting period, the Company has standardized operating in strict accordance with the laws, regulations and rules as
Company Laws and Article of Association, and establishing a sound corporate governance structure of the Company. The Company is
totally separate from its controlling shareholders and actual controllers in terms of assets, personnel, finance, organization and business
and has the independent and complete business and self-operating capability.
1. 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.
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. 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.
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. Business independence: production and administrative management are totally separated with controlling shareholders, and no
horizontal competition being found with controlling shareholders;
34
山东省中鲁远洋渔业股份有限公司 2021 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 2020”
(No.: 2021-17)
Annual General published on China
AGM 48.81% 2021-05-27 2021-05-28
Meeting of 2020 Securities Journal,
Hong Kong
Commercial Daily
and Juchao Website
“First Extraordinary
General Meeting of
Shareholders in
First Extraordinary 2021” (No.: 2021-
Extraordinary
General Meeting of 48.44% 2021-07-21 2021-07-22 25) published on
General Meeting
Shareholders in 2021 China 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. Directors, supervisors and senior officers
1. Basic information
Amount Amount Reasons
Shares Shares
Start of shares of shares for
End date held at Other held at
Working dated of increased decrease increase
Name Title Sex Age of office period- changes period-
status office in this d in this or
term begin (share) end
term period period decrease
(Share) (Share)
(Share) (Share) of shares
35
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Currentl
Lu Chairma 2018-01- 2022-05-
y in M 56 0 0 0 0 0
Lianxing n 25 15
office
Director, Currentl
Wang 2018-06- 2022-05-
General y in M 53 0 0 0 0 0
Huan 07 15
Manager office
Currentl
2021-07- 2022-05-
Xin Li Director y in F 42 0 0 0 0 0
21 15
office
Independ Currentl
2016-05- 2022-05-
Jiang Lu ent y in M 62 0 0 0 0 0
19 15
director office
Independ Currentl
Song 2016-05- 2022-05-
ent y in M 56 0 0 0 0 0
Xiliang 19 15
director office
Chairma
n of
Currentl
Han Supervis 2021-07- 2022-05-
y in M 43 0 0 0 0 0
Junpeng ory 21 15
office
Committ
ee
Currentl
Huang Supervis 2019-01- 2022-05-
y in F 42 0 0 0 0 0
Wei or 22 15
office
Currentl
Qiu Supervis 2017-12- 2022-05-
y in F 54 0 0 0 0 0
Hong or 29 15
office
Deputy
General
Manager,
Secretary
of the
Currentl
Liang Board of 2020-11- 2022-05-
y in M 49 0 0 0 0 0
Shanglei Directors 19 15
office
,
Chairma
n of the
Labor
Union
Meng Deputy Currentl 2019-05- 2022-05-
M 52 0 0 0 0 0
Fanyong GM y in 16 15
36
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
office
Fu Currentl
2019-01- 2022-05-
Chuanha CFO y in M 49 0 0 0 0 0
04 15
i office
Lu Leave 2016-05- 2021-07-
Director M 48 0 0 0 0 0
Xiaonan office 19 21
Chairma
n of
Supervis Leave 2019-05- 2021-07-
Liu Bing M 39 0 0 0 0 0
ory office 16 21
Committ
ee
Total -- -- -- -- -- -- 0 0 0 0 0 --
During the reporting period, whether there was any departure of directors and supervisors and dismissal of Senior Officers
√ Yes □ No
During the reporting period, the employee director Mr. Liang Shanglei resigned from his position as an employee director of the
Company for work reasons; Director Mr. Lu Xiaonan and supervisor Mr. Liu Bing resigned from their position as the director and
supervisor of the Company for work changes. Found more in Notice on Resignation of Employee Director (Notice No.: 2021-18) and
Resignation of Directors and Supervisor (Notice No.: 2021-19) released on China Securities Journal, Hong Kong Commercial Daily
and Juchao Website.
Changes of directors, supervisors and senior executives
√Applicable □Not applicable
Name Title Type Date Reasons
Xin Li Director Be elected 2021-07-21
By-election of directors
Chairman of
Han Junpeng Supervisory Be elected 2021-07-21 By-election of supervisors
Committee
Secretary of the
Liang Shanglei Board of Appoint 2021-02-02 Appoint
Directors
Employee
Liang Shanglei Leave office 2021-06-25 For work reasons
director
Lu Xiaonan Director Leave office 2021-07-21 Due to job change
Chairman of
Liu Bing Supervisory Leave office 2021-07-21 Due to job change
Committee
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山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
2. 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.
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.
Xin Li, graduate degree, a senior economist and member of the CPC. She was served as the deputy director of H&R department
(Party Group Work Department) of Shandong State-owned Assets Investment Holding Co., Ltd; Director of Shandong Province
Culture Industry Investment Group Co., Ltd, Director of Shandong Longxin Investment Company Limited, Director of Royo
Financial Holding Co., Ltd and Director of Dezhou Bank Co., Ltd. Currently she is the executive director and head of organization
department (H&R department) of Shandong State-owned Assets Investment Holding Co., Ltd and Director of Shandong Huate
Holding Group Co., Ltd. She has been a director of the Company since July 21, 2021.
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 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.
(2) Supervisor
Han Junpeng, graduate degree, an accountant and member of the CPC. He was served as the deputy director of investment &
development department, director of the Office of BOD (Party Committee Office) of Shandong State-owned Assets Investment Holding
Co., Ltd, the Director of Shandong Dongyin Investment Co., Ltd. Currently he is the executive director and GM of investment center
38
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
of Shandong State-owned Assets Investment Holding Co., Ltd, chairman of supervisory committee of Rizhao Port Shanggang Terminal
Co., Ltd, Director of Dezhou Bank Co., Ltd., Director of Shandong Huate Holding Group Co., Ltd and chairman of supervisory
committee of Zhongtai Xincheng Assets Management Co., Ltd. He is the supervisor of the Company from July 21, 2021 and serves as
supervisor and chairman of the supervisory committee of the Company since August 25, 2021.
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., the deputy general manager of Shandong Juneng Investment Co., Ltd., and the deputy director
of risk management department of Shandong State-owned Assets Investment Holdings Co., Ltd. Now she is the vice president of
investment center, a senior business manager and serves as a supervisor of the Company from January 22, 2019.
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
Liang Shanglei, university degree and member of the CPC. He was the political office officer of 54th base communication regiment,
second artillery; the political instructor of the 7th Brigade of the Jinan Detachment of Shandong Armed Police Force; the director of
political office and deputy political commissar of Shandong General Hospital of Armed Police; director of capital operation & revenue
management division of SASAC of Shandong province, the deputy director of propaganda & petition work division (propaganda &
mass work department of the Party Committee); the employee director and secretary of teh disciplinary committee of Shandong
Zhonglu Oceanic Fishery Company Limited. He serves as deputy GM of the Company since November 19, 2020; the employee director
and deputy GM of the Company since December 29, 2020; serves as employee director, deputy Gm and secretary of the Board of the
Company since February 2, 2021; serves as deputy GM and secretary of the Board of the Company since June 24, 2021.
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
Name of shareholder’ s Start dated of End date of Whether receiving
Name Position
units office term office term remuneration from
39
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
shareholder’ s units
or not (Y/N)
Standing Committee of the
Shandong State-owned
Lu Lianxing Party Committee, Director Y
Assets Investment
and secretary of the Board
Shandong State-owned Executive Director, General
Han Junpeng Y
Assets Investment Manager of Investment Center
Executive Director, Head of
Shandong State-owned
Xin Li Organization Department Y
Assets Investment
(Human Resources Department)
Vice Minister of Investment
Shandong State-owned
Huang Wei Center, Senior Business Y
Assets Investment
Manager
Post-holding in other unit
√Applicable □Not applicable
Whether
receiving
Start dated of End date of office
Name Name of other units Position remuneration
office term term
from other units
or not (Y/N)
Jiang Lu Grandall (Jinan) Law Firm Partner Y
Professor of
Song Xiliang Shandong University of Finance Y
Accounting
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
3. 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; The Management Measures on Remuneration of Directors
and Senior Executives was deliberated and approved at 10th session of 7th BOD dated December 29, 2020, and approved at the Annual
General Meeting of 2020 dated May 27, 2021.
Remuneration for directors, supervisors and senior executives in reporting period
In 10 thousand Yuan
Total Whether
Post-holding
Name Title Sex (F/M) Age remuneration remuneration
status
obtained from the obtained from
40
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Company related party of
the Company
(Y/N)
Currently in
Lu Lianxing Chairman M 56 0Y
office
Director, General Currently in
Wang Huan M 53 56.5 N
Manager office
Currently in
Xin Li Director F 42 0Y
office
Independent Currently in
Jiang Lu M 62 4N
director office
Independent Currently in
Song Xiliang M 56 4N
director office
Chairman of
Currently in
Han Junpeng Supervisory M 43 0Y
office
Committee
Currently in
Huang Wei Supervisor F 42 0Y
office
Currently in
Qiu Hong Supervisor F 54 31.21 N
office
Deputy General
Manager,
Secretary of the
Currently in
Liang Shanglei Board of M 49 44.8 N
office
Directors,
Chairman of the
Labor Union
Currently in
Meng Fanyong Deputy GM M 52 44.8 N
office
Currently in
Fu Chuanhai CFO M 49 45.2 N
office
Lu Xiaonan Director M 48 Leave office 0Y
Chairman of
Liu Bing Supervisory M 39 Leave office 0Y
Committee
Total -- -- -- -- 230.51 --
41
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
VI. Responsibility performance of directors during the reporting period
1. The board of directors during the reporting period
Session of meeting Date of meeting Disclosure date Meeting resolutions
For details, please refer to the "
Resolution announcement on the
11th session of 7th board of
The 11th session of 7th board of directors " disclosed in China
2021-02-02 2021-02-03
directors Securities Journal, Hong Kong
Commercial Daily and
www.cninfo.com.cn
(Announcement No. 2021-02)
For details, please refer to the "
Resolution announcement on the
12th session of 7th board of
The 12th session of 7th board of directors " disclosed in China
2021-03-17 2021-03-19
directors Securities Journal, Hong Kong
Commercial Daily and
www.cninfo.com.cn
(Announcement No. 2021-04)
For details, please refer to the "
Resolution announcement on the
13th session of 7th board of
The 13th session of 7th board of directors " disclosed in China
2021-04-28 2021-04-29
directors Securities Journal, Hong Kong
Commercial Daily and
www.cninfo.com.cn
(Announcement No. 2021-13)
For details, please refer to the "
Resolution announcement on the
14th session of 7th board of
The 14th session of 7th board of directors (Extraordinary
directors (Extraordinary 2021-07-01 2021-07-02 Meeting)" disclosed in China
Meeting) Securities Journal, Hong Kong
Commercial Daily and
www.cninfo.com.cn
(Announcement No. 2021-20)
For details, please refer to the "
Resolution announcement on the
The 15th session of 7th board of
2021-08-25 2021-08-27 15th session of 7th board of
directors
directors " disclosed in China
Securities Journal, Hong Kong
42
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Commercial Daily and
www.cninfo.com.cn
(Announcement No. 2021-27)
For details, please refer to the "
Resolution announcement on the
16th session of 7th board of
The 16th session of 7th board of directors (Extraordinary
directors (Extraordinary 2021-09-09 2021-09-10 Meeting)" disclosed in China
Meeting) Securities Journal, Hong Kong
Commercial Daily and
www.cninfo.com.cn
(Announcement No. 2021-32)
Deliberated and approved the
Third Quarterly Report of 2021.
The 17th session of 7th board of since only one proposal was
2021-10-28
directors considerate as the periodic
report, BOD resolved to waive
the announcement.
For details, please refer to the "
Resolution announcement on the
18th session of 7th board of
The 18th session of 7th board of directors " disclosed in China
2021-12-21 2021-12-22
directors Securities Journal, Hong Kong
Commercial Daily and
www.cninfo.com.cn
(Announcement No. 2021-39)
For details, please refer to the "
Resolution announcement on the
19th session of 7th board of
The 19th session of 7th board of directors (Extraordinary
directors (Extraordinary 2021-12-27 2021-12-28 Meeting)" disclosed in China
Meeting) Securities Journal, Hong Kong
Commercial Daily and
www.cninfo.com.cn
(Announcement No. 2021-44)
2. The attending of directors to Board meetings and shareholders general meeting
The attending of directors to Board Meeting & shareholders general meeting
Times of Times of Times of Absent the Times
Times of Times of
Director Board meeting attending by entrusted Meeting for attending the
Presence Absence
supposed to communicatio presence the second shareholders
43
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
attend in the n time in a row general
report period (Y/N) meeting
Lu Lianxing 9 1 8 0 0N 1
Wang Huan 9 1 8 0 0N 2
Xin Li 5 0 5 0 0N 1
Jiang Lu 9 1 8 0 0N 2
Song Xiliang 9 1 8 0 0N 2
Liang Shanglei 3 1 2 0 0N 1
Lu Xiaonan 4 1 3 0 0N 2
Explanation of absent the Board Meeting for the second time in a row
Not applicable
3. Objection for relevant events from directors
Directors come up with objection about Company’s relevant matters
□Yes √No
Directors have no objections for relevant events in reporting period
4. Other explanation about responsibility performance of directors
The opinions from directors have been adopted
√ Yes □ No
Explanation on advice that accepted/not accepted from directors
During the reporting period, the directors of the company actively attended the board meetings and shareholders’ meetings in strict
accordance with the Articles of Association, the Working Rules of the Board of Directors and relevant laws and regulations and other
relevant regulations and requirements, performed their duties diligently, put forward relevant opinions on major corporate governance
and operational decisions according to the actual situation of the company, formed a consensus after full communication and discussion,
and resolutely supervised and promoted the implementation of the resolutions of the board of directors, so as to ensure scientific, timely
and efficient decision-making and safeguard the legitimate rights and interests of the company and all shareholders.
VII. The special committees under the board during the reporting period
Important Specific
Other
Committee Number of Meeting comments and circumstances
Members Date of performance of
name meetings held content suggestions of the objection
meeting duties
made (if applicable)
First Meeting Lu Lianxing, Deliberated Agree to
of the 1 2021-01-28
Nomination Jiang Lu, Song follow nominate Mr.
44
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Committee of Xiliang proposals: Liang Shanglei
the BOD for
2021 Review the as the Secretary
Qualification of the Board
of Secretary of and submit
the Board corresponding
proposals to the
Board for
consideration
in accordance
with the
procedures
Deliberated
follow
proposals:
1.Annual
Report of 2020
(Full-text) and
Its Summary;
2. Financial
Report of 2020;
3. Profit
Distribution for Proposed
year of 2020; 4. relevant
Re- opinions
appointment of according to
First Meeting the audit actual
of the Audit Wang Huan, institution and condition of the
Committee of Jiang Lu, Song 1 2021-03-12 determine the Company, all
the BOD for Xiliang remuneration; proposals were
2021 5. Performance unanimously
of Audit passed after
Committee of full
the Board and communication
Summary and discussion
Report on
Audit Work of
the Accounting
Firms for year
of 2020; 6.
Internal
Control
Evaluation
Report for year
of 2020; and 7.
45
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Carry out
Business as
Deposit and
Loans in
Affiliated
Banks
Proposed
relevant
opinions
according to
Deliberated
First Meeting actual
follow
of the Strategy Lu Lianxing, condition of the
proposals:
Committee of Jiang Lu, Liang 1 2021-03-12 Company, the
Investment
the BOD for Shanglei proposal was
Plan for year of
2021 unanimously
2021
passed after
full
communication
and discussion
Proposed
relevant
opinions
Deliberated according to
Second
follow actual
Meeting of the
Wang Huan, proposals: The condition of the
Audit
Jiang Lu, Song 1 2021-04-23 First Quarterly Company, the
Committee of
Xiliang Report of 2021 proposal was
the BOD for
(Full-text) and unanimously
2021
its Summary passed after
full
communication
and discussion
Agree to
nominated Ms.
Deliberated Xin Li as the
Second
follow candidate for
Meeting of the
Lu Lianxing, proposals:revie director of the
Nomination
Jiang Lu, Song 1 2021-06-17 w the Company and
Committee of
Xiliang qualification of submit the
the BOD for
director corresponding
2021
candidates proposal to the
Board for
consideration
46
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Proposed
relevant
Deliberated
opinions
follow
according to
Second proposals:
actual
Meeting of the Building 2
Lu Lianxing, condition of the
Strategy large tuna
Jiang Lu, Liang 1 2021-06-17 Company, the
Committee of purse seine
Shanglei proposal was
the BOD for vessels for high
unanimously
2021 sea production
passed after
in Pacific
full
Ocean
communication
and discussion
Proposed
relevant
opinions
Deliberated according to
Third Meeting follow actual
of the Audit Wang Huan, proposals: The condition of the
Committee of Jiang Lu, Song 1 2021-08-20 Semi-annual Company, the
the BOD for Xiliang Report of 2021 proposal was
2021 (Full-text) and unanimously
its Summary passed after
full
communication
and discussion
Proposed
relevant
opinions
according to
Fourth Meeting Deliberated actual
of the Audit Xin Li, Jiang follow condition of the
Committee of Lu, Song 1 2021-10-25 proposals: The Company, the
the BOD for Xiliang Third Quarterly proposal was
2021 Report of 2021 unanimously
passed after
full
communication
and discussion
Third Meeting Deliberated Proposed
Lu Lianxing,
of the Strategy follow relevant
Wang Huan, 1 2021-12-17
Committee of proposals: 1. opinions
Jiang Lu
the BOD for Renewal of the according to
47
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
2021 Construction of actual
2 trawlers; 2. condition of the
Capital Company, all
Increase of the proposals were
Controlling unanimously
Subsidiary and passed after
to waive the full
right to communication
increase the and discussion
capital by the
same
proportion
VIII. Works from Supervisory Committee
The Company has risks in reporting period that found in supervisory activity from supervisory committee
□ Yes √ No
Supervisory committee has no objection about supervision events in reporting period.
IX. Employees of the Company
1. Numbers of the employee, professional constitution and education background
The number of current employees of parent company at period-
150
end (people)
The number of current employees of main subsidiaries at period-
764
end (people)
Total number of current employees at period-end (people) 914
The total number of employees in payroll (people) 914
The total number of retired staff and workers that the parent
257
company and main subsidiaries need to bear the costs (people)
Professional constitution
Type Number
Production personnel 698
Sales personnel 27
Technicians personnel 20
Financial personnel 33
Administrative personnel 136
Total 914
Education background
48
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Type Number
Master’s degree 21
Bachelor degree 87
Junior college 101
Technical secondary school 159
High school or below 546
Total 914
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
X. Profit distribution plan and capitalizing of common reserves plan
Formulation, Implementation and Adjustment of Profit Distribution Policy Especially Cash Dividend policy during the Reporting
Period
□ Applicable √ Not applicable
The Company is profitable during the reporting period and the parent company has positive profit available for distribution to
shareholders without cash dividend distribution plan proposed
□ Applicable √ Not applicable
Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve.
XI. Implementation of the Company’s stock incentive plan, employee stock ownership plan or
other employee incentives
□ Applicable √ Not applicable
The Company has no equity incentive plan, employee stock ownership plans or other employee incentives.
49
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control
The Company established a completed internal control system, and constantly updated, supplemented and revised the system
according to development and actual condition of the Company, operation of the Company are strictly implement various internal
control systems.
2. Details of major defects in IC appraisal report that found in reporting period
□Yes √No
XIII. Management and controls on the subsidiary during reporting period
Problems
Name of Integration Follow-up
Integration plan encountered in Actions taken Resolve progress
company progress resolution plan
integration
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
XIV. Internal control self-assessment report or internal control audit report
1. Appraisal Report of Internal Control
Disclosure date of full internal control
2022-04-21
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
99.40%
total assets on the 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 the 99.93%
company's consolidated financial
statements
Defects Evaluation Standards
Category Financial Reports Non-financial Reports
Major deficiencies: Major deficiencies:
a. fraud of directors, supervisors and senior a) violation of state laws and regulations,
Qualitative criteria
management; such as environmental pollution;
b. Material misstatements found in current b) project decision-making process is not
50
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
financial statements by the external audit scientific, wrong decision-making caused
which are not found in the process of internal by lack of democratic decision-making
control; process;
c. the supervision of audit committee and c) brain drain of managers or technicians;
internal audit service to internal control is d) frequent negative news on media; e )
invalid. the results of internal control evaluation
Significant deficiencies: The misstatements especially major deficiencies and
caused by single deficiency or together with significant deficiencies have not been
other deficiencies that cannot be timely rectified and reformed;
prevented or found and corrected in the f) significant business is lack of system
financial report and has not reached or has control or systematic-ness is invalid.
exceed the major deficiencies but still should Significant deficiencies: The deficiencies
be taken into account by the management; caused by single deficiency or together
other circumstances determined by the degree with other deficiencies of which the
of influence. severity, direct or potential negative
Common deficiencies: other internal control impact have not reached or has exceed the
deficiencies do not constitute major or major deficiencies but still should be
significant deficiencies taken into account by the management;
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
reports (i.e. amount affected by internal
control deficiencies) of some subjects in the Compare the amount of direct property
financial reports that may cause or have loss with certain ratio of total profits in the
caused by internal control deficiencies with company’s current consolidated financial
certain ratio of total profits in the company’s statements, and determine the type of
current consolidated financial statements, and deficiencies in internal control as follows:
determine the type of deficiencies in internal it should be judged to be major deficiency
control as follows: if the amount of direct property loss is
it should be judged to be major deficiency if more than 5% of total profits;
Quantitative criteria
the amount affected by internal control it should be judged to be significant
deficiencies is more than 5% of total profits; deficiency if the amount of direct property
it should be judged to be significant loss is more than 3% but less than 5%
deficiency if the amount affected by internal (including 5%) of total profits;
control deficiencies is more than 3% but less it should be judged to be common
than 5% (including 5%) of total profits; deficiency if the amount of direct property
it should be judged to be common deficiency loss is less than 3% (including 3%) of
if the amount affected by internal control total profits;
deficiencies is less than 3% (including 3%) of
total profits;
51
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Amount of significant defects in financial
0
reports
Amount of significant defects in non-
0
financial reports
Amount of important defects in financial
0
reports
Amount of important defects in non-
0
financial reports
2. 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 on December 31, 2021
Disclosure details of audit report of
Disclosed
internal control
Disclosure date of audit report of
2022-04-21
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
XV. Rectification of Self-examination Problems in Special Governance Actions in Listed
Company
Not applicable
52
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Section V. Environmental and Social Responsibility
1. Major environmental
The listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department
□Yes √ No
Administrative punishment for environmental problems during the reporting period
The impact on the
The Company's
Name of company or Reason for production and
Violation Punishment result rectification
subsidiary punishment operation of listed
measures
companies
N/A N/A N/A N/A N/A N/A
Other environmental information disclosed refer to key polluters
Not applicable
Measures taken to reducing the carbon emissions during the reporting period and their effectiveness
□ Applicable √ Not applicable
Reasons for not disclosing other environmental information
Listed company and its subsidiary are not belongs to key pollution enterprise listed by Department of Environmental Protection.
II. Social Responsibility
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.
III. Consolidating and expanding the achievements of poverty alleviation and rural
revitalization
During the reporting period, the Company has not carried out poverty eradication and rural revitalization works, and has no
subsequent plans for poverty eradication and rural revitalization for the time being.
53
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Section VI. Important Events
I. 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
Shandong Oceanic Continuous
State-owned (hereinafter and effective
Assets Inter-industry collectively during the
Commitments in report of In
Investment Competition referred to as 2018-07-23 time with
acquisition or equity change performance
Holding Commitment “competitive controlling of
Company enterprise”) or the Zhonglu
Limited own any Oceanic
interest in any
competing
enterprise, and
will not
directly or
indirectly
invest or
purchase the
competitive
enterprises; 2.
For any
54
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
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
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
55
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
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
56
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
above
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,
Shandong Continuous
and will be
State-owned and effective
conducted on
Assets Related party during the
an equal and In
Investment transaction 2018-07-23 time with
voluntary performance
Holding commitment controlling of
basis in
Company the Zhonglu
accordance
Limited Oceanic
with the
principles of
fairness and
equivalence,
prices will be
determined at
a reasonable
price
recognized by
the market. 2.
The Company
and other
enterprises
controlled by
the Company
will strictly
abide by the
57
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
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-
making
procedures of
related
transactions of
Zhonglu
Oceanic, and
will perform
legal
procedures
and
information
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
58
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
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
59
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
commitment
letter and
causes losses
and
consequences
to Zhonglu
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
II. 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.
III. External guarantee out of the regulations
□ Applicable √ Not applicable
No external guarantee out of the regulations occurred in the period.
IV. Statement on the latest “modified audit report” by BOD
□ Applicable √ Not applicable
60
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors (if
applicable) for “Qualified Opinion” that issued by CPA
□ Applicable √ Not applicable
VI. Explanation of the changes in accounting polices, accounting estimates or correction of
significant accounting errors compared with the financial report of the previous year
√Applicable □Not applicable
1. Changes in significant accounting policies
On December 7, 2018, the Ministry of Finance issued the Accounting Standards for Business Enterprises No. 21 – Leases (2018
Revision) (CK [2018] No. 35) (hereinafter referred to as “the new lease standards”). The company has implemented the aforementioned
new lease standards from January 1, 2021, and made changes to relevant accounting policies in accordance with the provisions of the
new lease standards.
According to the provisions of the new lease standards, for a contract existing before the first execution date, the company chooses not
to re-evaluate whether the contract is a lease or contains a lease. For a lease contract as a lessee, the company chooses to adjust only
the cumulative impact of the lease contract that has not been completed as of January 1, 2021. The cumulative impact amount of the
first execution adjusts the amount of retained earnings and other related items in the financial statements at the beginning of the current
period of the first execution (i.e. January 1, 2021), and no adjustment is made to the comparable period information. Among them, for
the finance lease on the first execution date, the company, as the lessee, respectively measures the right-of-use assets and lease liabilities
according to the original book value of the finance lease assets and the accrued financial lease outlay; for the operating lease on the
first execution date, the company, as the lessee, measures the lease liabilities according to the present value discounted at the
incremental borrowing rate on the first execution date based on the remaining lease payments; the unpaid rent accrued on an accrual
basis under the original lease standards is included in the remaining lease payments.
The company measures the right-of-use asset according to one of the following two options according to each lease: A. Assuming that
the book value of the new lease standard is adopted from the start date of the lease term (the incremental borrowing rate on the first
execution date is used as the discount rate); B. An amount equal to the lease liability is adjusted as necessary for prepaid rent. In
accordance with the provisions of the Accounting Standards for Business Enterprises No. 8 - Impairment of Assets, carry out an
impairment test on the right-of-use asset and carry out corresponding accounting treatment.
Main changes and impacts of the implementation of the new lease standards are as follows:
According to the new lease standards, the company recognized right-of-use assets of 5,498,108.96 yuan and lease liabilities of
1,709,314.65 yuan on January 1, 2021.
2. The first implementation of the new lease standards from 2021 to adjust the relevant items in the financial statements at the beginning
of the year
Unit: RMB/CNY
Item of consolidate balance sheet 2020-12-31 2021-1-1 Adjustment
Assets:
Advance payment 17,764,804.55 17,128,089.89 -636,714.66
61
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Right-of-use asset 5,498,108.96 5,498,108.96
Liabilities:
Other payable 8,487,724.32 8,606,070.36 118,346.04
Non-current liabilities due within one year 3,033,733.61 3,033,733.61
Lease liability 1,709,314.65 1,709,314.65
Item of parent company’s balance sheet 2020-12-31 2021-1-1 Adjustment
Assets:
Advance payment 1,873,295.83 1,497,219.79 -376,076.04
Right-of-use asset 3,116,643.16 3,116,643.16
Liabilities:
Other payable 78,050,679.94 78,140,930.74 90,250.80
Non-current liabilities due within one year 2,009,743.15 2,009,743.15
Lease liability 640,573.17 640,573.17
Explanation on adjustment of each items:
The weighted average of incremental borrowing rate on lease liability that reckoned in balance sheet dated January 1, 2021 was 4.35%.
For the minimum lease payments outstanding of the significant operating leases at end of 2020 released on the financial statement of
2020 was converted as 1,709,314.65 yuan as the present value, based on the incremental borrowing rate dated January 1, 2021, the
difference from the lease liability at the date of initial execution was 1,709,314.65 yuan.
VII. Compare with last year’s financial report; explain changes in consolidation statement’s
scope
√Applicable □Not applicable
New subsidiary established during the reporting period: Zhonglu Oceanic (Qingdao) Industrial Investment Development Co., Ltd.
Registered capital of the new company was $20.5 million, paid-in capital was $10.045 million and 100% shareholding.
VIII. Appointment and non-reappointment (dismissal) of CPA
Accounting firm appointed
Name of domestic accounting firm SCPA (LLP )
Remuneration for domestic accounting firm (in 10 thousand
35
Yuan)
Continuous life of auditing service for domestic accounting firm
1
Name of domestic CPA Zhang Xiaorong, Ma Haijun
Continuous fixed number of year for the auditing service
Zhang Xiaorong (1 year), Ma Haijun (1 year)
provided by CPA in domestic CPA Firms
Whether re-appointed accounting firms in this period or not
√ Yes □ No
62
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Whether to change the accounting firms during the auditing period
□Yes √No
Whether change of the accounting firms has implemented the approval procedures
√ Yes □ No
Explanation on re-appointment and change of the accounting firms
Factoring in development strategy, future business expansion, audit requirements and other actual conditions, the Company appointed
SCPA (LLP ) as the audit institution for year of 2021 with service term of one year.
Appointment of internal control auditing accounting firm, financial consultant or sponsor
√Applicable □Not applicable
The SCPA (LLP ) was appointed by the Company at the same time as the audit accounting firms of internal control for the year of
2021, remuneration of 100,000 yuan in total paid.
IX. Facing delisting after disclosure of the annual report
□ Applicable √ Not applicable
X. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period.
XI. Significant litigation and arbitration of the Company
□ Applicable √ Not applicable
No Significant litigation or arbitration for the Company in reporting period.
XII. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
XIII. 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.
XIV. 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.
63
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
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
4. Contact of related credit and debt
□ Applicable √ Not applicable
No contact of related credit and debt for the Company in reporting period
5. Contact with the related finance companies
□ Applicable √ Not applicable
There are no deposits, loans, credits or other financial business between the finance companies with associated relationship and
related parties
6. Transactions between the finance company controlled by the Company and related parties
□ Applicable √ Not applicable
There are no deposits, loans, credits or other financial business between the finance companies controlled by the Company and related
parties
7. Other material related party transactions
□ Applicable √ Not applicable
No other material related party transactions for the Company in reporting period
XV. 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
64
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
(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
4. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in reporting period
XVI. Explanation on other significant events
√Applicable □Not applicable
Name Date of disclosed Internet website and retrieval path for
disclosed information
Notice on Signing the Investment Agreement 2021-4-27 http://www.cninfo.com.cn
Proposal of Accounting Policy Changed 2021-4-29 http://www.cninfo.com.cn
Notice on Building 2 large tuna purse seine vessels for high seas 2021-7-2 http://www.cninfo.com.cn
production in Pacific Ocean
Notice on the Company and its Controlling Subsidiary have 2021-9-2 http://www.cninfo.com.cn
Received the Government Subsidies
External Investment on Subsidiary 2021-9-10 http://www.cninfo.com.cn
Guarantee provided by Controlling subsidiary for the Company 2021-9-29 http://www.cninfo.com.cn
Updating the Construction of 2 trawlers 2021-12-22 http://www.cninfo.com.cn
Capital increase of controlling subsidiary and waiver of right to 2021-12-22 http://www.cninfo.com.cn
65
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
increase capital by the same proportion and related transactions
XVII. Significant event of subsidiary of the Company
√Applicable □Not applicable
During the reporting period, the BOD deliberated and approved the capital increase of 100 million yuan in monetary to the controlling
subsidiary of the Company Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd from Zhongtai Xincheng Assets Management Co., Ltd.
The Company and controlling subsidiary - HABITAT INTERNATIONAL CORPORATION waived the right to the same proportional
capital increase. The Capital Increase of Controlling Subsidiary and waiver of Right to Increase the Capital by Same Proportion and
Related Transactions (Notice No.: 2021-41) was released by the Company on Juchao website (http://www.cninfo.com.cn)dated
December 22, 2021.
66
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Section VII. Changes in Shares and Particulars about Shareholders
I. Changes in shares
1. Changes in shares
Unit: 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
Foreign corporate
shares
Other
2. Raise legal persons
shares
3. Internal employee
shares
4. Preferred stock or
other
138,000,0 138,000,0
II. Listed shares 51.87% 51.87%
00 00
1. RMB ordinary shares
2. Domestically listed 138,000,0 138,000,0
51.87% 51.87%
foreign shares 00 00
3. Foreign listed foreign
shares
4. Other
67
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
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
□ 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
3. Existing internal staff shares
□ Applicable √ Not applicable
III. Shareholders and actual controller
1. Number of shareholders of the Company and share-holding
Unit: Share
Total common Total common Total preference Total preference
stock stock shareholders shareholders
10,352 10,277 0 0
shareholders in shareholders at with voting with voting
reporting period- end of last month rights recovered rights recovered
68
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
end before annual at end of at end of last
report disclosed reporting period month before
(if applicable) annual report
(found in note8) disclosed (if
applicable)
(found in note8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Total Amount Information of shares pledged, tagged or
Amount
sharehol of frozen
Proportio Changes of listed
Full name of Nature of n of ders at unlisted
in report outstandi
Shareholders shareholder shares the end outstandi
held period ng shares State of share Amount
of report ng shares
held
period held
Shandong State-
owned Assets
State-owned 125,731, 125,731,
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 5,002,04
Zhu Shuzhen 1.88% 135,500 5,002,046
person 6
Domestic nature 4,533,70
Cai Yujiu 1.70% 482,489 4,533,700
person 0
GUOTAI JUNAN
SECURITIES(H Foreign legal 2,584,92
0.97% 449,240 2,584,925
ONGKONG) person 5
LIMITED
Domestic nature 2,100,00
Ouyang Guifang 0.79% 847,000 2,100,000
person 0
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% 1,897,854
person 4
Limited
Domestic nature 1,500,00
Lin Mingyu 0.56% 27,000 1,500,001
person 1
Domestic nature 1,468,10 1,468,10
Zhan Changcheng 0.55% 1,468,100
person 00
69
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Strategy investors or general legal
person becomes top 10 shareholders
Not applicable
due to rights issued (if applicable)
(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
Explanation on associated Heavy Industry Group Co., Ltd. to exercise other shareholder’s rights of its 20% stock equity
relationship among the aforesaid in Sinotruk Group except for the assets income right.) Rests of the shareholders are the
shareholders 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
Special note on the repurchase
account among the top 10 N/A
shareholders (see note 10)
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 5,002,046 listed foreign 5,002,046
shares
Domestically
Cai Yujiu 4,533,700 listed foreign 4,533,700
shares
GUOTAI JUNAN Domestically
SECURITIES(HONGKONG) 2,584,925 listed foreign 2,584,925
LIMITED shares
Domestically
Ouyang Guifang 2,100,000 listed foreign 2,100,000
shares
Domestically
Shenwan HongYuan (H.K.) Limited 1,897,854 listed foreign 1,897,854
shares
Domestically
Lin Mingyu 1,500,001 1,500,001
listed foreign
70
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
shares
Domestically
Zhan Changcheng 1,468,100 listed foreign 1,468,100
shares
Domestically
Wang Dongsheng 1,261,404 listed foreign 1,261,404
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 consistent
un-restrict shareholders and between actor regulated by “management method for acquisition of listed company” among the above
top 10 un-restrict shareholders and 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 note4)
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
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
71
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
China Merchants Bank Co., Ltd. 0.06%, Guangzhou Pubang Garden Co., Ltd. 1.42%, Tomson By-
Health Co., Ltd. 0.44%, Zhongtong Bus Holdings Co., Ltd. 18.96%, Yunding Technology Co., Ltd.
2.50%, Luyin Investment Group Co., Ltd. 4.98%, Shandong Lubei Chemical Co., Ltd. 3.31%, Ginza
Equity of other Group Co., Ltd. 3.46%, Shandong Xinhua Medical Device Co., Ltd. 4.76%, Weichai Heavy
domestic/oversea listed Machinery Co., Ltd. 4.99%, Yunnan Tin Industry Co., Ltd. 0.37%, Shandong Gold Mining Co., Ltd.
company control by 0.52%, Jicheng Electronics Co., Ltd. 10.23%, Yantai Zhenghai Magnetic Materials Co., Ltd. 1.85%,
controlling shareholder as Yueyang Forest Paper Co., Ltd. 1.80%, Guangzhou Hollyoaks Creative Home Co., Ltd. 1.51%,
well as stock-joint in report Jiangsu Guotai International Group Co., Ltd. 2.10%, Shenzhen Alto Electronics Co., Ltd. 4.29%,
period Shanghai Hyundai Pharmaceutical Co., Ltd. 1.54%, China United Network Communications (Hong
Kong) Co., Ltd. 0.74%, Hanhua Financial Holdings Co., Ltd. 2.07%, Red Star Macalline Home
Furnishing Group Co., Ltd. 0.25%, Luzheng Futures Co., Ltd. 2.25%, China Energy Construction
Co., Ltd. 0.32%, Zhongtai Securities Co., Ltd. 1.73%, Weichai Power Co., Ltd. 0.27%
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
72
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
State-owned Assets Supervision and Administration
Commission of Shandong Provincial Government
70%
Shandong State-owned Assets Investment Holding
Company Limited
47.25%
Shandong Zhonglu Oceanic Fisheries Company
Limited
Actual controller controlling the Company by entrust or other assets management
□ Applicable √ Not applicable
4.The total number of shares pledged by controlling shareholders or the first majority shareholder and its
persons acting in concert accounts for 80% of the shares held by them
□ Applicable √ Not applicable
5. Particulars about other legal person shareholders with over 10% shares held
□ Applicable √ Not applicable
6. Limitation and reducing the holdings of shares of controlling shareholders, actual controllers,
restructuring side and other commitment subjects
□ Applicable √ Not applicable
IV. The specific implementation of shares buy-back during the reporting period
Implementation progress of shares buy-back
□ Applicable √ Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
73
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Section VIII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the reporting.
74
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Section IX. Corporate Bonds
□ Applicable √ Not applicable
75
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Section X. Financial Report
SCPAR (2022) No. 2348
Date: April 19, 2022
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, 2021, 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, 2021, 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.The key audit matters identified in our audit are as follows:
A. Revenue recognition
1. The Matter
As disclosed in note 4.37the policy of revenue accounting and note 6.34 of amount of revenue.
76
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
In 2021, Amount of operating revenue of the Company is RMB 93,428.44 million , Since revenue is a
key indicator of the company's profit, there is an inherent risk of misstatement whether revenue is based
on real transactions and whether it is included in the appropriate accounting period, so we identify
revenue recognition as a key audit matter.
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
As disclosed in note 4.15 the policy of inventory accounting and note 6.6 inventory book balance and
provision for diminution in value of inventories, the Company held RMB 28,459.48million of inventory
book balance as well as RMB 749.94million of impairment reserve,and RMB 27,709.54 million of the
carrying amount,of which accounted for 19.79% of total assets at December 31 2021. In view of the
significant amount of inventory, and the process of making allowances for falling prices of inventories
77
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
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.
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
78
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
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 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,
79
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
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 communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
C.P.A
Zhang Xiaorong
Ma Haijun
Shanghai Certified Public Accountants (Special General Partnership)
Shanghai, China
80
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Consolidated Balance Sheet
Prepared by：Shandong
Zhonglu Oceanic Fisheries Dec 31,2021 Unit：RMB Yuan
Co., Ltd.
Item As at 31/12/2021 As at 31/12/2020 Item As at As at 31/12/2020
31/12/2021
Current Current
assets: liabilities:
Cash
at bank Short-term
and on 210,573,782.49 255,811,982.21 loans 10,013,291.67 41,268,275.50
hand
Finan
cial Financial
assets - 5,000,000.00 liabilities held for
held for trading
trading
Deriva Derivative
tive financial
financial liabilities
assets
Notes
receivabl Notes payable
e
Accou
nts Accounts
receivabl 37,806,586.91 66,263,029.81 payable 50,121,395.04 69,897,839.19
e
Receiv
ables for Advances from
financin customers
g
Prepay Contract
ments 18,683,750.61 17,764,804.55 liabilities 13,220,675.60 12,453,619.79
Other Employee
receivabl 3,596,759.88 2,293,236.85 benefits payable 45,410,711.06 41,862,349.06
es
Includ
ing:Inter Taxes and
est surcharges 4,258,871.51 2,825,413.78
receivabl payable
e
Dividend Other
s payables 9,774,065.87 8,487,724.32
receivabl
e
Invent Including:Inte
ories 277,095,357.75 338,885,629.06 rest payable
Contra Dividends
ct assets payable
Held- Held-for-sale
for-sale liabilities
assets
Non-
current Non-current
assets liabilities due
due within one year 4,909,314.65 -
within
one year
Other Other current
current 20,633,592.23 14,567,946.82 liabilities 14,100.55 108,248.84
assets
Total Total current
current 568,389,829.87 700,586,629.30 liabilities 137,722,425.95 176,903,470.48
assets
Non- Non-current
current liabilities:
assets:
Debt Long-term
investme loans 149,393,532.37
nts
Other
debt Bonds payable
investme
nts
Long- Including:
term Preference
receivabl shares
es
81
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Long-
term
equity Perpetual loans
investme
nts
Other
equity
instrume Lease
nt liabilities
investme
nts
Other
non- Long-term
current account payable
financial
assets
Invest Long-term
ment 30,108,932.75 31,435,009.43 employee 1,026,222.58 1,243,452.93
property benefits payable
Fixed Anticipation
assets 476,894,877.56 506,290,822.70 liabilities
Constr Deferred
uction in 165,273,027.75 3,705,815.70 income 13,691,209.07 14,488,797.24
process
Produ
ctive Deferred tax
biologica liabilities 2,777,589.45 1,451,751.23
l assets
Oil Other non-
and gas current liabilities
assets
Right- Total non-
of-use 2,354,943.86 - current liabilities 166,888,553.47 17,184,001.40
assets
Intang
ible 12,110,397.72 12,811,879.55 Total liabilities 304,610,979.42 194,087,471.88
assets
Devel
opment Shareholders'
expendit equity:
ures
Good Share capital
will 266,071,320.00 266,071,320.00
Long-
term Other equity
deferred 220,738.00 317,044.17 instruments
expenses
Deferr Including:
ed tax 1,644,945.96 1,744,636.98 Preference
assets shares
Other
non-
current 143,137,267.24 2,719,397.06 Perpetual loans
assets
Total
non- Capital reserve
current 831,745,130.84 559,024,605.59 284,054,997.75 284,054,997.75
assets
Less:treasury
shares
Other
comprehensive -18,256,201.98 -12,783,539.13
income
Special reserve 232,783.00 -
Surplus
reserve 21,908,064.19 21,908,064.19
Undistributed
profit 379,524,911.94 343,997,929.71
Equity
attributable to 933,535,874.90 903,248,772.52
parent company
Minority
interests 161,988,106.39 162,274,990.49
Total equity 1,095,523,981.29 1,065,523,763.01
Total of Total liabilities
assets 1,400,134,960.71 1,259,611,234.89 and equity 1,400,134,960.71 1,259,611,234.89
Legal representativeLegal：Lu Lianxing Person in charge of accounting function：Fu Chuanhai Person in charge
of accounting department：Lei Lixin
82
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Consolidated Statement of Income
Prepared by：
Shandong Zhonglu For the year ended 31 Unit：
Oceanic Fisheries December 2021 RMB Yuan
Co., Ltd.
Year ended Year ended Year Year
Item Item ended ended
31/12/2021 31/12/2020 31/12/2021 31/12/2020
1.Total operating Categorized by
income 934,284,403.21 966,213,019.66 ownership
1. Net profit
Including: 934,284,403.21 966,213,019.66 attributable to parent 35,526,982. 29,537,498.1
Operating income company 23 3
2.
Profit/loss
2.Total operating attributable to
cost 933,025,967.92 956,907,169.77 1,126,885.04 9,019,316.73
minority
shareholders
Less: Operating 6. Other -
comprehensive -
costs 849,588,130.75 878,417,354.27 income net of tax 6,886,431.99 18,169,681.9
9
Total comprehensive
Taxes and income attributable - -
surcharges 2,170,926.08 2,324,086.97 to shareholders of 5,472,662.8 13,490,695.3
parent company 5 0
(1) Comprehensive
Selling and income not to be
distribution 3,548,619.96 3,669,759.70 reclassified to profit
expenses or loss
1) Changes in
General and remeasurement of
administrative 64,478,320.35 49,476,821.86 defined benefit
expenses obligations
2) Other
comprehensive
Research and income not to be
development 765,456.70 57,924.28 reclassified to profit
expenses or loss in equity
method
3) Fair value changes
in other equity
Finance expenses 12,474,514.08 22,961,222.69 instrument
investments
4) Fair value changes
Including:Interest in the enterprise's
expenses 1,548,600.65 2,264,468.56 own credit risk
Interest income 569,224.71 666,925.40 5)Others
(2) Comprehensive
Add: Other income to be - -
income 40,916,418.36 24,237,447.14 reclassified to profit 5,472,662.8 13,490,695.3
or loss 5 0
1) Other
comprehensive
Investment income income to be
-77,554.43 15,287.67 reclassified to profit
("-" for loss) or loss in equity
method
Including: 2) Gain or loss from
Investment income fair value changes of
other debt
from associates and instruments
joint ventures
3) The amount of
Income from financial assets
83
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
derecognition of reclassified to other
financial assets comprehensive
measured at income
amortised cost
Net 4) Credit impairment
exposure hedging provision of other
gains ("-" for loss) debt investment
Gain
from fair value 5) Cash flow hedging
changes ("-" for reserve
loss)
Credit impairment - 6) Currency - -
losses ("-" for loss) 1,631,064.94 324,078.98 translation difference 5,472,662.8 13,490,695.3
5 0
Impairment on - 7) Others
-7,167,438.13 2,613,583.91
assets ("-" for loss)
Other
comprehensive
Gains from disposal income attributable - -
of assets ("-" for 3,494,326.93 52,840.06 4,678,986.6
loss) to minority share- 1,413,769.14 9
holders, net of tax
7. Total
3. Operating profits comprehensive 29,767,435. 20,387,132.8
("-" for loss) 40,055,252.96 30,673,761.87
income 28 7
(1) Total
comprehensive
Add: Non- income attributable 30,054,319.3 16,046,802.8
operating income 884,810.25 10,758,569.39
to shareholders of 8 3
parent company
(2) Total
Less:Non- comprehensive
operating expenses 86,336.72 658,478.99 income attributable -286,884.10 4,340,330.0
to minority 4
shareholders
4. Profit before tax 8. Earnings per share
("-" for loss) 40,853,726.49 40,773,852.27
Less:income (1) Basic earnings per
tax expenses 4,199,859.22 2,217,037.41 share 0.13 0.11
5. Net profit ("-" for (2) Diluted earnings
net loss) 36,653,867.27 38,556,814.86 per share 0.13 0.11
Categorized by
going concern basis
1. Profit
or loss from
continuing 36,653,867.27 38,556,814.86
operations
2. Profit
or loss from
discontinued
operations
If an enterprise merges under the same control in the current period, the net profit
realized by the merged party before the merger is 0.00 RMB yuan, and the net
profit realized by the merged party in the previous period is 0.00 RMB yuan.
Legal representativeLegal：Lu Lianxing Person in charge of accounting function：Fu Chuanhai Person in charge
of accounting department：Lei Lixin
84
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Consolidated Statement of Cash Flows
Prepared by：Shandong For the year Unit：
Zhonglu Oceanic ended 31
Fisheries Co., Ltd. December 2021 RMB Yuan
Year ended Year ended Year ended Year
Item 31/12/2021 31/12/2020 Item 31/12/2021 ended
31/12/2020
3. Cash flows
1. Cash flows from from financing
operating activities
activities:
Cash
Cash received from received from
sales and services 975,952,422.42 961,184,995.1 investments by -
4
others
Including: cash
Taxes and surcharges received by
refunds 38,193,930.62 53,868,300.74 subsidiaries
from minority
shareholders'
investments
Cash received related to Cash
received from 51,867,033.
other operating activities 41,622,892.30 29,713,130.80 borrowings 227,138,476.01 47
Cash
Total cash inflows from received related
1,044,766,426 to other
operating activities 1,055,769,245.34 .68 financing -
activities
Total cash
Cash paid for goods inflows from
and services 690,728,218.89 729,377,072.8 financing 227,138,476.01 51,867,033.
0 47
activities
Cash paid to and for Cash
169,022,381.1 repayments for 62,615,304.
employees 165,791,072.24 3 debts 105,644,255.24 72
Cash
payments for
distribution of
Taxes and surcharges dividends,
cash payments 7,890,850.24 12,515,547.83 2,311,232.88 2,159,583.81
profit and
interest
expenses
Including:
dividends or
Cash paid related to profit paid by
other operating activities 21,463,279.15 20,605,714.27
subsidiaries to
minority
shareholders
Cash paid
Total cash outflows from 931,520,716.0 related to other
operating activities 885,873,420.52 financing 3,627,734.36
3 activities
Total cash
Net cash flows from 113,245,710.6 outflows from 64,774,888.
operating activities 169,895,824.82 financing 111,583,222.48
5 activities 53
Net cash flows
2. Cash flows from from financing -
investing activities： 115,555,253.53 12,907,855.
activities 06
4. Effect of
Cash received from foreign - -
withdraw of investments 5,000,000.00 5,000,000.00 exchange rate 4,758,728.85 12,686,379.1
changes on 4
85
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
cash and cash
equivalents
5. Net increase
Cash received from in cash and - 71,131,973.2
investment income 49,972.60 15,287.67 cash 46,086,305.94 1
equivalents
Net cash received from
disposal of \property, Add: beginning
plant and balance of cash 184,603,638
equipement,intangible 5,119,124.64 21,653,747.69 and cash 255,735,611.93
assets and other long-term equivalents .72
assets
Net cash received from 6. Ending
balance of cash
disposal of subsidiaries and cash 209,649,305.99 255,735,611.
and other business units 93
equivalents
Cash received related to
other investing activities
Total cash inflows from
investing activities 10,169,097.24 26,669,035.36
Cash paid for property,
plant and
equipement,intangible
assets and other long-term 336,947,752.68 33,188,538.60
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 336,947,752.68 43,188,538.60
Net cash flows from - -
investing activities 326,778,655.44 16,519,503.24
Legal representativeLegal：Lu Lianxing Person in charge of accounting function：Fu Chuanhai Person in charge
of accounting department：Lei Lixin
86
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Consolidated Statement of Changes in Equity
Prepared by：Shandong Zhonglu For the year ended 31
Oceanic Fisheries Co., Ltd. December 2021 Unit：RMB Yuan
Year 2021
Equity attributable to shareholders of parent company
Other equity Oth
instruments er Min Tota
Item Les co Gen Und l
Pr eral ority own
Shar efe Pe Cap s:tr mpr Spe Sur risk istri Sub inte
e re rp ital eas ehe cial plus bute Oth rest ers'
pre - equi
capi nc etu Ot he
rese ury nsiv rese rese par d ers total s ty
tal e al rve shar e rve rve atio prof
sh loa rs es inc n it
are ns om
s e
1. Ending 266, 284, - 21,9 343, 903, 162, 1,065
balance of 071, 054, 12,7 08,0 997, 248, 274, ,523,
last year 320. 997. 83,5 64.1 929. 772. 990. 763.
00 75 39.1 9 71 52 49 01
3
Add:
Impact
from
changes - -
in
accountin
g policies
Impact
from
correction - -
s of errors
in prior
period
Business
combinati
on under - -
common
control
Others - -
2. -
Beginnin 266, 284, 12,7 21,9 343, 903, 162, 1,065
g balance 071, - - - 054, - 83,5 - 08,0 - 997, - 248, 274, ,523,
of current 320. 997. 39.1 64.1 929. 772. 990. 763.
year 00 75 3 9 71 52 49 01
3.Movem
ent for
current - 232, 35,5 30,2 - 30,0
year("-" - - - - - - 5,47 783. - - 26,9 - 87,1 286, 00,21
for 2,66 00 82.2 02.3 884. 8.28
decrease 2.85 3 8 10
）
(1) Total - 35,5 30,0 - 29,7
comprehe 5,47 26,9 54,3 286, 67,4
nsive 2,66 82.2 19.3 884. 35.2
income 2.85 3 8 10 8
(2)Shareh
older's
contributi
ons and - - - - - - - - - - - - - - -
withdraw
als of
captial
1)Commo
n stock
contribut
ed by - -
sharehold
ers
2) Capital
contribut - -
ed by
87
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
other
equity
instrumen
ts holders
3) Share-
based
payment
recorded
in - -
sharehold
er's
equity
4) Others - -
(3) Profits
distributi - - - - - - - - - - - - - - -
on
1)
Appropria
tion of - -
surplus
reserve
2)
Distributi
on to - -
sharehold
ers
3) Others - -
(4)
Internal
transfer
within - - - - - - - - - - - - - - -
sharehold
er's
equity
1)Convers
ion of
capital
reserve - -
into share
capital
2)Convers
ion of
surplus
reserve - -
into share
capital
3)Recover
of loss by
surplus - -
reserve
4) Change
of defined
benefit
obligation
s carried - -
forward to
retained
earnings
5) Other
comprehe
nsive
income
carried - -
forward to
retained
earnings
6) Others - -
(5)Special 232, 232, 232,
reserve - - - - - - - 783. - - - - 783. - 783.
00 00 00
1) Accrual 954, 954, 954,
of special 700. 700. 700.
reserve 51 51 51
2)Utilizati
on of 721, 721, 721,9
special 917. 917. 17.51
reserve 51 51
88
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
(6) Others - -
4. Ending 266, 284, - 21,9 379, 933, 161, 1,095
balance of 071, 054, 18,2 232, 08,0 524, 535, 988, ,523,
current 320. - - - 997. - 56,2 783. 64.1 - 911. - 874. 106. 981.2
year 00 75 01.9 00 9 94 90 39 9
8
Legal representativeLegal：Lu Lianxing Person in charge of accounting function：Fu Chuanhai Person in charge
of accounting department：Lei Lixin
89
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Consolidated Statement of Changes in Equity
(Continued)
Prepared by：Shandong Zhonglu For the year ended 31
Oceanic Fisheries Co., Ltd. December 2021 Unit：RMB Yuan
Year 2020
Equity attributable to shareholders of parent company
Other equity Oth
instruments er Min Tota
Item Les co Gen Und l
Pr eral ority own
Shar efe Pe Cap s:tr mpr Spe Sur risk istri Sub inte
e re rp ital eas ehe cial plus bute Oth rest ers'
pre - equi
capi nc etu Ot he
rese ury nsiv rese rese par d ers total s ty
tal e al rve shar e rve rve atio prof
sh loa rs es inc n it
are ns om
s e
1. Ending 266, 284, 707, 21,9 314, 887, 157, 1,045
balance of 071, 054, 156. 08,0 460, 201, 934, ,136,
last year 320. 997. 17 64.1 431. 969. 660. 630.1
00 75 9 58 69 45 4
Add:
Impact
from
changes - -
in
accountin
g policies
Impact
from
correction - -
s of errors
in prior
period
Business
combinati
on under - -
common
control
Others - -
2.
Beginnin 266, 284, 707, 21,9 314, 887, 157, 1,045
g balance 071, - - - 054, - 156. - 08,0 - 460, - 201, 934, ,136,
of current 320. 997. 17 64.1 431. 969. 660. 630.1
year 00 75 9 58 69 45 4
3.
Movemen
t for - 29,5 16,0
current 13,4 37,4 46,8 4,34 20,3
year("-" - - - - - - 90,6 - - - 98.1 - 02.8 0,33 87,13
for 95.3 3 3 0.04 2.87
decrease 0
）
(1) Total - 29,5 16,0
comprehe 13,4 37,4 46,8 4,34 20,3
nsive 90,6 98.1 02.8 0,33 87,13
income 95.3 3 3 0.04 2.87
0
(2)
Sharehold
er's
contributi
ons and - - - - - - - - - - - - - - -
withdraw
als of
captial
1)
Common
stock - -
contribut
ed by
90
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
sharehold
ers
2) Capital
contribut
ed by
other - -
equity
instrumen
ts holders
3) Share-
based
payment
recorded
in - -
sharehold
er's
equity
4) Others - -
(3) Profits
distributi - - - - - - - - - - - - - - -
on
1)
Appropria
tion of - -
surplus
reserve
2)
Distributi
on to - -
sharehold
ers
3) Others - -
(4)
Internal
transfer
within - - - - - - - - - - - - - - -
sharehold
er's
equity
1)
Conversio
n of
capital - -
reserve
into share
capital
2)
Conversio
n of
surplus - -
reserve
into share
capital
3)
Recover
of loss by - -
surplus
reserve
4) Change
of defined
benefit
obligation
s carried - -
forward to
retained
earnings
5) Other
comprehe
nsive
income
carried - -
forward to
retained
earnings
6) Others - -
(5)
Special - - - - - - - - - - - - - - -
reserve
1) Accrual
of special - -
reserve
91
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
2)
Utilizatio
n of - -
special
reserve
(6) Others - -
4. Ending 266, 284, - 21,9 343, 903, 162, 1,065
balance of 071, 054, 12,7 08,0 997, 248, 274, ,523,
current 320. - - - 997. - 83,5 - 64.1 - 929. - 772. 990. 763.
year 00 75 39.1 9 71 52 49 01
3
Legal representativeLegal：Lu Lianxing Person in charge of accounting function：Fu Chuanhai Person in charge
of accounting department：Lei Lixin
92
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Balance Sheet
Prepared by：Shandong Zhonglu Oceanic Fisheries Dec Unit：RMB Yuan
Co., Ltd. 31,2021
Item As at 31/12/2021 As at 31/12/2020 Item As at 31/12/2021 As at 31/12/2020
Current Current
assets: liabilitie
s:
Cash Short
at bank -term
and on 49,943,353.89 32,186,883.39 loans - -
hand
Finan Finan
cial cial
assets liabilitie
held for - 5,000,000.00 s held
trading for
trading
Deriv
Deriv ative
ative financia
financia l
l assets liabilitie
s
Note Note
s s
receiva payable
ble
Acco Acco
unts unts
receiva 8,731,060.84 7,407,636.45 payable 12,713,180.90 7,330,041.56
ble
Recei Adva
vables nces
for from
financin custom
g ers
Contr
Prepa act
yments 3,565,433.92 1,873,295.83 liabilitie 1,930,695.41 2,228,473.01
s
Other Empl
receiva oyee
bles 119,015,186.36 204,498,840.72 benefits 13,477,985.59 10,254,765.98
payable
Inclu Taxe
ding:Int s and
erest surchar 426,832.47 674,445.26
receiva ges
ble payable
Dividen Other
ds 85,085,303.70 101,777,374.94 payable 43,495,400.72 78,050,679.94
receiva s
ble
Inclu
Inven ding:Int
tories 47,379,848.34 49,561,762.59 erest
payable
Contr Dividen
act ds
assets payable
Held- Held-
for-sale for-sale
assets liabilitie
s
Non- Non-
current current
assets liabilitie
due s due 3,840,573.17 -
within within
one one
year year
Other Other
current current
assets 8,240,901.15 2,174,139.54 liabilitie - 71,483.32
s
Total Total
current current
assets 236,875,784.50 302,702,558.52 liabilitie 75,884,668.26 98,609,889.07
s
93
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Non- Non-
current current
assets: liabilitie
s:
Debt Long
investm -term 149,393,532.37 -
ents loans
Other Bond
debt s
investm payable
ents
Long Inclu
-term ding:
receiva 3,858,748.19 4,411,879.43 Prefere
bles nce
shares
Long
-term
equity 232,189,455.23 232,189,455.23 Perpetu
investm al loans
ents
Other
equity Lease
instrum liabilitie
ent s
investm
ents
Other Long
non- -term
current account
financia payable
l assets
Long
Inves -term
tment employ
propert 30,108,932.75 31,435,009.43 ee 682,730.26 875,940.65
y benefits
payable
Antic
Fixed ipation
assets 47,561,985.28 54,478,042.63 liabilitie
s
Const Defer
ruction red
in 118,472,605.94 - income
process
Prod Defer
uctive red tax
biologic liabilitie
al assets s
Other
Oil non-
and gas current
assets liabilitie
s
Total
Right non-
-of-use 1,003,689.06 - current 150,076,262.63 875,940.65
assets liabilitie
s
Intan Total
gible 488,798.76 790,045.68 liabilitie 225,960,930.89 99,485,829.72
assets s
Devel Shareho
opment lders'
expendi equity:
tures
Good Share
will capital 266,071,320.00 266,071,320.00
Long Other
-term equity
deferred instrum
expense ents
s
Inclu
Defer ding:
red tax Prefere
assets nce
shares
Other
non- Perpetu
current 89,675,267.24 394,857.06 al loans
assets
94
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Total Capit
non- al
current 523,359,482.45 323,699,289.46 reserve 279,115,900.17 279,115,900.17
assets
Less:t
reasury
shares
Other
compre
hensive
income
Speci
al
reserve
Surpl
us 19,184,672.34 19,184,672.34
reserve
Undi
stribute -30,097,556.45 -37,455,874.25
d profit
Total
equity 534,274,336.06 526,916,018.26
Total
Total of liabilitie
assets 760,235,266.95 626,401,847.98 s and 760,235,266.95 626,401,847.98
equity
Legal representativeLegal：Lu Lianxing Person in charge of accounting function：Fu Chuanhai Person in charge
of accounting department：Lei Lixin
95
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Statement of Income
Prepared by：
Shandong For the year ended Unit：RMB
Zhonglu Oceanic 31 December 2021 Yuan
Fisheries Co., Ltd.
Item Year ended Year ended Item Year ended Year ended
31/12/2021 31/12/2020 31/12/2021 31/12/2020
1.Including: 4. Net profit ("-" for
Operating income 139,327,287.43 113,685,121.82 net loss) 7,358,317.80 2,669,277.62
1. Profit
Less: or loss from
Operating costs 116,889,774.06 100,927,361.83 continuing 7,358,317.80 2,669,277.62
operations
2. Profit
Taxes and or loss from
surcharges 688,962.71 735,280.66 discontinued
operations
Selling and 5. Other
distribution 233,063.78 307,386.37 comprehensive
expenses income net of tax
(1) Comprehensive
General and income not to be
administrative 32,987,053.48 21,914,743.78 reclassified to profit
expenses or loss
1) Changes in
Research and remeasurement of
development 623,103.64 - defined benefit
expenses obligations
2) Other
comprehensive
income not to be
Finance expenses 2,366,265.87 5,006,502.72 reclassified to profit
or loss in equity
method
3) Fair value changes
Including:Interest in other equity
expenses 382,300.01 1,065,750.00 instrument
investments
4) Fair value changes
Interest income 116,329.43 331,901.98 in the enterprise's
own credit risk
Add: Other 5)Others
income 13,154,771.02 10,029,644.81
(2) Comprehensive
Investment income income to be
("-" for loss) 8,867,101.36 7,896,264.69 reclassified to profit
or loss
1) Other
Including: comprehensive
Investment income to be
income from reclassified to profit
associates and or loss in equity
joint ventures method
Income from 2) Gain or loss from
derecognition of fair value changes of
financial assets other debt
measured at instruments
amortised cost
3) The amount of
Net exposure financial assets
hedging gains ("-" reclassified to other
for loss) comprehensive
income
Gain from fair 4) Credit impairment
value changes ("-" provision of other
for loss) debt investment
Credit impairment 5) Cash flow hedging
losses ("-" for loss) -115,883.09 607,054.03 reserve
6) Currency
Impairment on -117,230.42 -203,609.93 translation
assets ("-" for loss) difference
Gains from 7) Others
disposal of assets 17,065.22 55,893.20
("-" for loss)
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山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
2. Operating 6. Total
profits ("-" for 7,344,887.98 3,179,093.26 comprehensive 7,358,317.80 2,669,277.62
loss) income
Add: Non- 7. Earnings per share
operating income 13,479.82 3,363.62
Less:Non- (1) Basic earnings
operating expenses 50.00 290,132.05 per share
3. Profit before tax (2) Diluted earnings
("-" for loss) 7,358,317.80 2,892,324.83 per share
Less:income
tax expenses - 223,047.21
Legal representativeLegal：Lu Lianxing Person in charge of accounting function：Fu Chuanhai Person in charge
of accounting department：Lei Lixin
97
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Statement of Cash Flows
Prepared by：
Shandong Zhonglu For the year ended Unit：RMB
Oceanic Fisheries 31 December 2021 Yuan
Co., Ltd.
Item Year ended Year ended Item Year ended Year ended
31/12/2021 31/12/2020 31/12/2021 31/12/2020
1. Cash flows from 3. Cash flows from
operating activities financing
activities:
Cash received Cash received
from sales and 78,815,609.56 131,940,321.16 from investments -
services by others
Taxes and Cash received
surcharges refunds - from borrowings 207,138,476.01
Cash received Cash received
related to other 88,202,298.50 12,775,989.67 related to other 44,124,032.99 32,182,168.08
operating activities financing activities
Total cash inflows Total cash inflows
from operating 167,017,908.06 144,716,310.83 from financing 251,262,509.00 32,182,168.08
activities activities
Cash paid for Cash
goods and services 43,827,721.36 78,227,835.29 repayments for 54,808,284.01
debts
Cash payments
Cash paid to and for distribution of
for employees 40,070,474.81 41,123,815.04 dividends, profit 797,792.63
and interest
expenses
Taxes and Cash paid
surcharges cash 903,215.39 1,105,108.63 related to other 5,345,639.48 12,461,712.55
payments financing activities
Cash paid related Total cash
to other operating 80,422,024.59 45,320,001.25 outflows from 60,951,716.12 12,461,712.55
activities financing activities
Total cash outflows Net cash flows
from operating 165,223,436.15 165,776,760.21 from financing 190,310,792.88 19,720,455.53
activities activities
4. Effect of foreign
Net cash flows from - exchange rate
operating activities 1,794,471.91 21,060,449.38 changes on cash -126,645.14 -393,346.88
and cash
equivalents
2. Cash flows from 5. Net increase in -
investing activities： cash and cash 20,924,470.50 24,018,449.39
equivalents
Cash received Add: beginning
from withdraw of balance of cash
investments 5,000,000.00 5,000,000.00 and cash 32,186,883.39 56,205,332.78
equivalents
Cash received 6. Ending balance
from investment 25,559,172.60 685,177.67 of cash and cash 53,111,353.89 32,186,883.39
income equivalents
Net cash received
from disposal of
\property, plant and
equipement,intangi 30,000.00 79,485.08
ble assets and other
long-term assets
Net cash received
from disposal of
subsidiaries and -
other business units
Cash received
related to other 13,000,000.00
investing activities
Total cash inflows
from investing 43,589,172.60 5,764,662.75
activities
Cash paid for
property, plant and
equipement,intangi 214,643,321.75 8,266,611.41
ble assets and other
long-term assets
Cash payments
for investments 10,000,000.00
Net cash paid for
acquiring
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山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
subsidiaries and
other business units
Cash paid related
to other investing 9,783,160.00
activities
Total cash outflows
from investing 214,643,321.75 28,049,771.41
activities
Net cash flows from - -
investing activities 171,054,149.15 22,285,108.66
Legal representativeLegal：Lu Lianxing Person in charge of accounting function：Fu Chuanhai Person in charge
of accounting department：Lei Lixin
99
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Statement of Changes in Equity
Prepared by：Shandong Zhonglu For the year ended 31 Unit：RMB
Oceanic Fisheries Co., Ltd. December 2021 Yuan
Year 2021
Other equity Othe
instruments Capit Less: r Speci Surpl Undis Total
Item Share Pref Per treas comp
capita al ury rehen al us tribut Othe owner
ere pet Oth reser reser reser ed rs s'
l nce ual ve share sive ve ve profit equity
shar loan ers s inco
es s me
1. Ending 266,07 279,11 19,184 - 526,91
balance of 1,320. - - - 5,900. - - - ,672.3 37,455 - 6,018.
last year 00 17 4 ,874.2 26
5
Add: Impact
from changes
in accounting -
policies
Impact
from
corrections of -
errors in prior
period
Others -
2. Beginning 266,07 279,11 19,184 - 526,91
balance of 1,320. - - - 5,900. - - - ,672.3 37,455 - 6,018.
current year 00 17 4 ,874.2 26
5
3. Movement
for current 7,358, 7,358,
year("-" for - - - - - - - - - 317.80 - 317.80
decrease）
(1) Total
comprehensiv 7,358, 7,358,
e income 317.80 317.80
(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
100
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
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
comprehensiv
e 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 266,07 279,11 19,184 - 534,27
balance of 1,320. - - - 5,900. - - - ,672.3 30,097 - 4,336.
current year 00 17 4 ,556.4 06
5
Legal representativeLegal：Lu Lianxing Person in charge of accounting function：Fu Chuanhai Person in charge
of accounting department：Lei Lixin
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山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Statement of Changes in Equity (Continued)
Prepared by：Shandong Zhonglu For the year ended 31 Unit：RMB
Oceanic Fisheries Co., Ltd. December 2021 Yuan
Year 2020
Other equity Othe
instruments Capit Less: r Speci Surpl Undis Total
Item Share Pref Per treas comp
capita al ury rehen al us tribut Othe owner
ere pet Oth reser reser reser ed rs s'
l nce ual ve share sive ve ve profit equity
shar loan ers s inco
es s me
1. Ending 266,07 279,11 19,184 - 524,24
balance of 1,320. 5,900. ,672.3 40,125 6,740.
last year 00 17 4 ,151.8 64
7
Add: Impact
from changes
in accounting -
policies
Impact
from
corrections of -
errors in prior
period
Others -
2. Beginning 266,07 279,11 19,184 - 524,24
balance of 1,320. - - - 5,900. - - - ,672.3 40,125 - 6,740.
current year 00 17 4 ,151.8 64
7
3. Movement
for current 2,669, 2,669,
year("-" for - - - - - - - - - 277.62 - 277.62
decrease）
(1) Total
comprehensiv 2,669, 2,669,
e income 277.62 277.62
(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
102
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
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
comprehensiv
e 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 266,07 279,11 19,184 - 526,91
balance of 1,320. - - - 5,900. - - - ,672.3 37,455 - 6,018.
current year 00 17 4 ,874.2 26
5
Legal representativeLegal：Lu Lianxing Person in charge of accounting function：Fu Chuanhai Person in charge
of accounting department：Lei Lixin
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山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
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 Name of the parent company and the ultimate parent company of the Group is Shandong State-owned Assets
Investment Holdings Co., Ltd
1.4 The approver and approval date of the financial reporting.
The financial statement is predetermined and authorized by the board of company on 19th April, 2022.
2. The consolidation scope of financial year 2021 consolidated financial statements includes the Company and
its subsidiaries (hereafter referred to as "the Company").
Consolidation scope of financial statement includes: 5 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. ; Zhonglu Ocean (Qingdao) Industrial Investment Development
Co., Ltd.; 4 sub-subsidiaries: LAIF FISHERIES COMPANY LIMITED; Shandong Zhonglu Oceanic Fisheries
Refrigeration Co., Ltd; AFRICA STAR FISHERIES LIMITED; ZHONG GHA FOODS COMPANY LIMITED; 1
operational entity through control over operating leases: YAW ADDO FISHERIES COMPANY LIMITED. The scope
and changes of the consolidated financial statements for this year are detailed in the notes "7. Changes in consolidation
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山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
scope " and "8. Interest in other entities ".
3. Basis of preparation of financial statements
3.1 Basis of preparation
On the basis of going concern and transactions and events actually occurred, accounting is based on Accrual Basis. The
company generally adopts historical cost to measure accounting elements. On the premise that the amount of
accounting elements determined can be obtained and measured reliably, the company adopts Replacement cost, Net
realizable value, Present value and Fair value to measure accounting elements.
3.2 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.
4. Significant accounting policies and accounting estimates
4.1 Declaration on compliance with the Accounting Standards for Business Enterprises
The financial statements and notes are in accordance with the Accounting Standards for Business Enterprises
promulgated by the Ministry of Finance, the application guidelines, Interpretation of the Accounting Standards for
Business Enterprises, “No. 15 rules for the preparation and reporting of information disclosure by companies that issue
securities to the public – general provisions on financial reports [2014 Amendment]" issued by the China Securities
Regulatory Commission and relevant supplementary provisions, which truly and completely reflect the company’s
financial status, operating results, changes in shareholders’ equity and cash flow and other relevant information.
4.2 Accounting period
The financial year of the Company is from January 1 to December 31 of each calendar year.
4.3 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.
4.4 Functional currency
The Company's functional currency is Chinese Renminbi.
4.5 Business combination
4.5.1 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
105
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
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. The
intermediary fees of auditing, legal services, evaluation and consultation and other related management expenses
incurred for business combination shall be recorded into current profits and losses when incurred. The bonds issued
for the combination of enterprise or the handling fees and commissions paid for assumption other debts shall be
included in initial measurement amount of the bonds and other debts issued. The handling fees, commissions and other
expenses incurred from the issuance of equity securities in the course of business combination shall be offset against
the premium income of equity securities, and retained earning shall be offset if the premium income is not sufficient to
be offset.
4.5.2 Business combinations involving enterprises not under uncommon control
(a) In a business combination involving enterprises not under common control, the combination costs are determined
according to the following conditions: a. 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; b. for the Business combinations which is realized step by step through multiple exchange transactions, the initial
investment cost of long-term equity investment is the sum of each single transaction cost; c. The intermediary fees of
auditing, legal services, evaluation and consultation and other related management expenses incurred for business
combination shall be recorded into the current profit and loss when incurred. Transaction cost of equity securities or
debt securities issued as consideration for the combination is included in the initial recognition amount of the equity
securities or debt securities; d. If the future events that may affect the merger cost are stipulated in the combination
contract or agreement, and if it is estimated that the future events are likely to occur and the amount of influence on
the merger cost can be measured reliably on the purchase date, it will be included in the initial investment cost of the
long-term equity investment.
(b) 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.
If investment cost of long-term equity investment is more than the difference in the share of fair value of identifiable
net assets acquired by the purchaser in the merger, it shall be recognized as goodwill.
If investment cost of long-term equity investment is less than the difference in the share of fair value of identifiable
net assets acquired by the purchaser in the merger, it shall be handled in the following way: a. Review the measurement
of the fair value of all identifiable assets, liabilities and contingent liabilities of the acquired purchaser and the combined
cost; b. If the merger cost is still less than the fair value share of identifiable net assets acquired during the merger after
review, the difference shall be recorded into profit or loss for the current period entirely.
4.6 Preparation of consolidated financial statements
The consolidated scope of the consolidated financial statements is determined on a control basis. Control refers to the
investor has the power of the investee, through participation in the investee related activities and enjoy variable returns,
and have the ability to use the power of the investee influence its return amount.
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
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山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
and structured entities.
If the parent company is an investment entity, the parent company should only include its subsidiaries (if any) that
provide relevant services for its investment activities into the scope of consolidation and prepare consolidated financial
statements; other subsidiaries shall not be consolidated. The parent company's investment in other subsidiaries shall be
measured at fair value and its changes shall be recorded into profits and loss for the current period entirely. When the
parent company simultaneously satisfies the following conditions, the parent company belongs to the investment subject:
a. The parent company obtains funds from one or more investors for the purpose of providing investment management
services to investors; b. The sole purpose of the parent company's operations is to generate returns for investors through
capital gain, income from investment or both; c. The parent company measures and evaluates the performance of almost
all investments at fair value.
The unified accounting policy and period used by the company and the consolidated subsidiary when preparing of
consolidated 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. Where a subsidiary or business has been acquired through a business combination involving enterprises
under common control in the reporting period, the company should adjust the opening balance of the consolidated
balance sheet. Where a subsidiary or business has been acquired through a business combination involving enterprises
not under common control in the reporting period, the company should not adjust the opening balance of the
consolidated balance sheet. Where a subsidiary or business has been acquired through a business combination involving
enterprises under common control in the reporting period, the income, expense, profit and cash flow of the subsidiary
from the beginning of the consolidation period to the end of the reporting period are included in the consolidated
income statement and cash flow statement. Where a subsidiary or business has been acquired through a business
combination involving enterprises not under common control in the reporting period, the income, expenses, profit and
cash flow of the subsidiary from the purchase date to the end of the reporting period are included in the consolidated
income statement and cash flow statement. The company disposed of the subsidiary during the reporting period, the
income, expenses, profit and cash flow of the subsidiary from the beginning of the year to the disposal date are included
in the consolidated income statement and cash flow statement.
When the parent company purchases the equity of the subsidiary owned by the minority shareholders of the subsidiary,
in the consolidated financial statements, the difference between the newly acquired long-term equity investment due to
the purchase of minority equity and the proportion of the newly added shareholding shall be entitled to the subsidiary’s
continuous calculation from the date of purchase or the date of consolidation should be adjusted to the capital reserve
and if the capital reserve is insufficient to absorb the difference, the remaining amount shall be deducted from the
retained earnings.
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.
In the consolidated financial statements, if the Company loses its control on an investee because of disposing some
portion of its equity investment in the investee, 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
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山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
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,
other comprehensive income arising from the change in net liabilities or net assets of the defined benefit plan remeasured
by the investee shall be excluded.
4.7 Joint arrangement classification and accounting treatments
4.7.1 The classification of joint arrangement
Joint arrangements are classified as joint operations or joint ventures.
Joint operation refers to a joint arrangement in which the joint venture party enjoys the relevant assets of the
arrangement and assumes the relevant liabilities of the arrangement.
The Company acted as a party participating in joint operations, confirm 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.
A joint venture refers to a joint arrangement in which the joint venture party only has rights to the net assets of the
arrangement. Investments in joint ventures are accounted for by the company in accordance with the equity method.
4.8 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 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.
4.9 Foreign currency transactions and translation of financial statements denominated in foreign currency
(1) In the initial confirmation of a foreign currency transaction, the foreign currency amount shall be converted into
THE RMB amount using an approximate exchange rate of the spot exchange rate at the date when the transactions
occurs.
(2) On the balance sheet date, foreign currency monetary items and foreign currency non-monetary items shall be
handled in accordance with the following methods:
(a) Foreign currency monetary items shall be translated at the central rate of THE EXCHANGE rate of RMB published
by the People's Bank of China on the balance sheet 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
recognized in profit or loss for the current period.
(b) Non-monetary items denominated in foreign 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
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山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
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.
Monetary items refer to the monetary funds held by the company and the assets or liabilities to be collected or paid at a
fixed or determinable amount. The term "non-monetary items" refers to items other than monetary items.
(3) The translation of financial statements denominated in foreign currency
(a) 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.
(b) 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.
(c) The difference arising from foreign currency financial statements translation is presented in other comprehensive
income at the consolidated balance sheet within equity.
(4) The company shall translate the financial statements of overseas operations in an economy with hyperinflation in
accordance with the following methods:
The balance sheet items shall be restated using the general price index, and the income statement items shall be restated
using the changes of the general price index, and then translated according to the spot exchange rate on the latest balance
sheet date; when the overseas operation is no longer in the hyperinflationary economy, the restatement shall be stopped
and the financial statements restated shall be converted according to the price level on the cessation date.
(5) 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.
4.10 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. When a company becomes a party to a financial
instrument contract, the related financial asset or financial liability is recognized.
4.10.1 Financial assets
4.10.1.1 Classification and initial measurement
According to the business model of financial assets management and contractual cash flow characteristics of financial
assets, the company divides financial assets into:
a) Financial assets measured at amortized cost;
b) Financial assets measured at fair value through other comprehensive income;
c) Financial assets measured at fair value through profit or loss.
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The Company measures financial instruments at fair value upon their initial recognition. The related transaction fees for
the financial assets subsequently measured at fair value through profit or loss are charged in profit or loss directly. The
related transaction fees for other financial assets 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.
(a) Debt instruments
Debt instruments held by the company refer to those instruments that conform to the definition of financial liabilities
from the perspective of the issuer and are measured in the following three ways:
a) Measured at amortized cost:
The Company classifies a financial asset as subsequently measured at amortized cost that meets both of the following
conditions:
The financial asset is held within a business model whose objective is to collect contractual cash
flows; 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 recognizes interest income on such financial assets in accordance with the effective interest rate method.
Such financial assets mainly include cash at bank and on hand, notes receivable and accounts receivable, contract assets,
other receivables, debt investments, lease receivables and long-term receivables, etc. The company lists the debt
investments and long-term receivables that mature within one year (including one year) from the date of the balance
sheet as non-current assets that mature within one year; debt investments with a maturity of one year (including one
year) at the time of acquisition are listed as other current assets.
b) Measured at fair value through other comprehensive income
The Company classifies a financial asset as subsequently measured at fair value through other comprehensive income
that meets both of the following conditions:
The financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows
and selling the financial asset. The contractual terms give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
Such financial assets are measured at fair value and their changes are included in other comprehensive income, but assert
impairment losses or gains, exchange gains or losses and interest income calculated in accordance with the effective
interest rate method are included in profit or loss for the current period entirely. Such financial assets are listed as other
debt investments, and other debt investments maturing within one year (including one year) from the date of the balance
sheet are listed as non-current assets maturing within one year; other debt investments with a maturity of one year
(inclusive) at the time of acquisition are listed as other current assets.
c) Measured at fair value through profit or loss
The Company classifies a financial asset as subsequently measured at fair value through profit or loss and listed as
financial assets held for trading unless it is subsequently measured at amortized cost or measured at fair value through
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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. Other non-current financial assets shall be listed as those that mature more than one year from
the balance sheet date and are expected to be held for more than one year.
(b) equity instrument
The company shall measure the equity instrument investment over which it has no control, joint control or significant
influence according to the fair value through profit and loss, and list it as financial assets held for trading; those expected
to be held for more than one year from the balance sheet date shall be listed as other non-current financial assets.
In addition, the Company designated part of non-tradable equity instrument investments as financial assets measured at
fair value through other comprehensive income, and listed as other equity instrument investments. The related dividend
income of such financial assets is recorded in the profit or loss for the current period entirely. Once made, the
designation cannot be revoked. Where the contingent consideration recognized by the company in a business
combination not under the common control constitutes a financial asset, the financial asset shall be classified as a
financial asset measured at fair value through profit or loss.
For non-tradable equity instrument investments, the company may, upon initial recognition, irrevocably designate them
as financial assets measured at fair value through other comprehensive income. The designation is made on a single
investment basis that meets the definition of an equity instrument from the issuer's point of view.
4.10.1.2 Impairment of assets
The company recognizes loss provisions on the basis of expected credit losses for financial assets measured at amortized
cost, debt instrument investments which measured at fair value through other comprehensive income, lease receivables,
contract assets and financial guarantee contracts. The Company considers reasonable and reliable information about
past events, current conditions and the forecast of future economic conditions, and takes the risk of default as the weight
to calculate the present value of the difference between the cash flow receivable under the contract and the cash flow
which expected to receive. Then the probability-weighted amount of the present value should be recognized as expected
credit loss.
At each balance sheet date, the company separately measures the expected credit losses of financial instruments at
different stages. If the credit risk of the financial instrument does not increase significantly after the initial
recognition, it is in the first stage, and the company measures the loss provisions according to the expected credit
losses in the next 12 months. If the credit risk of a financial instrument has increased significantly since the initial
recognition but no credit impairment has occurred, the financial instrument is in the second stage, and the company
shall measure the loss provision according to the expected credit loss during the entire life of the instrument. If a
financial instrument has suffered credit impairment since its initial recognition, it is in the third stage, and the
company shall measure the loss provision according to the expected credit losses during the entire life of the
instrument.
The Company calculates interest income based on the book balance and effective interest rate of financial
instruments in stages I and II and with low credit risk. For financial instruments in the third stage, the interest
income shall be calculated on the basis of the amortized cost and the effective interest rate after deducting the
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book balance from the provision for impairment.
For notes receivable and accounts receivable, lease receivables and contract assets, regardless of the existence of a
significant financing component, the Company may measure the loss provision in accordance with the expected
credit losses for the entire life of the company.
a) Credit risk significantly increases judgment criteria
At each balance sheet date, the Company evaluates whether the credit risk of the relevant financial instrument has
increased significantly since the initial recognition.
In determining whether credit risk has increased significantly since the initial recognition, the Company considers
that reasonable and evidence-based information that can be obtained without unnecessary additional cost or effort,
including qualitative and quantitative analyses based on historical data of the Company, external credit risk ratings
and forward-looking information Based on a single financial instrument or a combination of financial instruments
with similar credit risk characteristics, the company compares the risk of default of financial instruments on the
balance sheet date with the risk of default on the initial recognition date to determine the change of the risk of
default of financial instruments during their expected lifetime.
When one or more of the following quantitative or qualitative criteria are triggered, the Company believes that the
credit risk of the financial instrument has increased significantly: a.The quantitative standard is mainly that the
default probability of the remaining duration on the reporting date increases by more than a certain proportion
compared with the initial confirmation; b.The qualitative criteria mainly include the occurrence of significant
adverse changes in the debtor's business or financial situation, the list of early warning customers, etc; c.The upper
limit indicator is that the debtor's contract payment (including principal and interest) is generally overdue for more
than 90 days, and the longest is not more than 180 days.
b) Definition of assets with credit impairment
In order to determine the occurrence of credit impairment, the definition criteria adopted by the Company are
consistent with the internal credit risk management objectives for the relevant financial instruments, and both
quantitative and qualitative indicators are taken into account. When evaluating whether the debtor has credit
impairment, the company mainly considers the following factors: a. The issuer or the debtor has significant
financial difficulties; b. The debtor violates the contract, such as default or overdue payment of interest or principal,
etc.; c. Concessions granted by the creditor to the debtor for economic or contractual reasons related to the debtor's
financial difficulties that would not have been made in any other circumstances; d. The debtor is likely to go
bankrupt or undergo other financial restructuring; e. Financial difficulties of the issuer or debtor cause the
disappearance of the active market for the financial asset; f. To purchase or generate a financial asset at a substantial
discount that reflects the fact that a credit loss has occurred.
The occurrence of credit impairment of financial assets may be caused by the joint action of multiple events, not
necessarily by independently identifiable events
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c) Parameters for the measurement of expected credit losses
Depending on whether there is a significant increase in credit risk and whether there has been a credit impairment,
the company measures the impairment provisions for different assets at the expected credit losses of 12 months
or the whole life. The key parameters of expected credit loss measurement include default probability, default loss
rate and default risk exposure. The company considers quantitative analysis and prospective information of
historical statistical data (such as counterparty rating, guarantee method and category of pledge, repayment method,
etc.) to establish probability of default, loss given default rate and default risk exposure model.
Relevant definitions are as follows:
a. Probability of default refers to the possibility that the debtor will be unable to fulfill its payment obligations in the
next 12 months or in the entire remaining term. The default probability of the company is adjusted based on the results
of the historical credit loss model, and forward-looking information is added to reflect the default probability of the
debtor in the current macroeconomic environment.
b. Loss given default rate refers to the company's expectation of the loss degree of default risk exposure. Loss given
default rates vary depending on the type of counterparty, method of recourse and priority, and collateral. The loss given
default rate is the percentage of the risk exposure loss at the time of default and is calculated on the basis of the next 12
months or the entire lifetime;
c. Default risk exposure model is the amount payable to the company at the time of default in the next 12 months or
for the remainder of its life.
d) Forward- looking information
Both the assessment of significant increases in credit risk and the calculation of expected credit losses involve forward-
looking information. By analyzing historical data, the company identifies key economic indicators that affect the credit
risks and expected credit losses of various business types.
When a single financial asset is unable to assess the information of expected credit loss at a reasonable cost, the company
divides the receivables into several combinations based on the characteristics of credit risk, calculates the expected credit
loss on the basis of the combination, and determines the combination based on the following:
item the basis for determining the A method of measuring expected credit loss
combination
bank’s acceptance bill Acceptor Based on the historical credit loss experience, combined with the
receivable current situation and the forecast of the future economic situation, the
expected credit loss is calculated through the default risk exposure and
the expected credit loss rate of the whole life
trade acceptance receivable Acceptor Aging analysis method
Accounts receivable - related Companies within the scope of The provision for doubtful accounts is measured based on the historical
party combination the merger experience of credit losses and the current situation and the expectation
of future economic conditions
Accounts receivable - Non-consolidated corporate and Based on the expected credit loss rate for the entire life of the account
External customer portfolio third party customers age
Lease receivables - External
customer portfolio
Contract Assets - External Non-consolidated corporate and Based on the expected credit loss rate for the entire life of the account
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item the basis for determining the A method of measuring expected credit loss
combination
customer portfolio third party customers age
Other receivables – related Companies within the scope of The provision for doubtful accounts is measured based on the historical
party combination the merger experience of credit losses and the current situation and the expectation
of future economic conditions
Other receivables - External Non-consolidated corporate and Loss provisions are measured according to the general approach, the
customer portfolio third party customers "three-stage" model.
Long-term receivables - Non-consolidated corporate and Loss provisions are measured according to the general approach, the
External customer portfolio third party customers "three-stage" model.
The comparison table between the aging of accounts receivable portfolio and the expected credit loss rate of the entire
life of accounts receivable portfolio and lease receivable portfolio:
Account receivable age Expected credit loss rate on accounts receivable
Within 6 months 5.00%
Six months to a year 10.00%
1 to 2 years 30.00%
2 to 3 years 50.00%
More than 3 years 100.00%
For other receivables divided into portfolios, the company refers to historical credit loss experience, combined with
current conditions and forecasts of future economic conditions, through default risk exposure and the expected credit
loss rate within the next 12 months or the entire duration to calculate the expected credit loss. In order to reflect the
changes in the credit risk of financial instruments since the initial recognition, the company and its subsidiaries re-
measure the expected credit losses on each balance sheet date, and the resulting increase or reversal of the loss provision
shall be regarded as impairment losses or the profit is included in the current profit and loss. For financial assets
measured at amortized cost, the loss provision is deducted from the book value of the financial assets listed in the
balance sheet; for debt investments measured at fair value through other comprehensive income, the loss provision in
the company and its subsidiaries is recognized in other comprehensive income without deducting the book value of the
financial asset.
4.10.1.3 Terminate confirmation
The recognition of a financial asset shall be terminated if it meets any of the following conditions:
a. Termination of the contractual right to receive the cash flow of the financial asset;
b. The financial asset has been transferred, and the Company has transferred almost all the risks and rewards in the
ownership of the financial asset to the transferee;
c. The financial asset has been transferred. Although the company neither transfers nor retains almost all risks and
rewards in the ownership of the financial asset, it gives up control over the financial asset.
When other equity instrument investment is terminated for recognition, the difference between its book value and the
sum of the consideration received and the accumulative amount of the fair value changes originally recorded directly
into other comprehensive income shall be recorded into retained earnings; When the recognition of other financial
assets is terminated, the difference between its book value and the sum of the consideration received and the
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accumulative amount of fair value changes originally recorded directly into other comprehensive income shall be
recorded into the profit or loss for the current period.
4.10.1.4 Write-off
If the company and its subsidiaries no longer reasonably expect to recover all or part of the contractual cash flow of the
financial asset, the book balance of the financial asset shall be directly written down. Such write downs constitute a
termination recognition of the underlying financial asset. This typically occurs when the company and its subsidiaries
determine that the debtor has no assets or sources of income that can generate sufficient cash flow to repay the amount
to be written down. However, in accordance with the procedures for the company and its subsidiaries to recover
amounts due, the financial assets that are written down may still be affected by the execution activities.
If the financial assets that have been written down are recovered later, they shall be included in the profit or loss for the
current period as the reversal of the asset impairment loss.
4.10.2 Financial liabilities
Financial liabilities are classified into financial liabilities measured at amortized cost and financial liabilities measured at
fair value through profit or loss at the time of initial recognition.
The Company classifies financial liabilities as financial liabilities measured at amortized cost, except as follows:
(a) Financial liabilities measured at fair value through profit or loss, including financial liabilities held for trading
(including derivatives that are financial liabilities) and financial liabilities designated 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
(c) Financial guarantee contracts which are not classified as (a) or (b) and commitments to provide a loan at a
below market interest rate which are not classified as (a). In a business combination not under the common control, if
the company is recognized as the purchaser of the contingent consideration and forms financial liabilities, the financial
liabilities shall be measured at fair value through profit and loss.
At the time of initial recognition, in order to provide more relevant accounting information, the company may designate
financial liabilities as financial liabilities measured at fair value through profit or loss for the current period. Such
designation satisfies one of the following conditions:
(a) Can eliminate or significantly reduce accounting mismatches.
(b) Manage and evaluate the portfolio of financial liabilities or financial assets and portfolio of financial liabilities on the
basis of fair value in accordance with the enterprise risk management or investment strategy stated in formal written
documents, and report to key management personnel within the company on this basis. Once made, the designation
cannot be revoked.
The company's financial liabilities are mainly financial liabilities measured at amortized cost, including notes payable and
accounts payable, other payables, loans and bonds payable, etc. This kind of financial liability is initially measured at its
fair value after deducting transaction expenses, and the effective interest rate method is adopted for subsequent
measurement. Where the maturity is less than one year (including one year), it is listed as current liabilities; Where the
maturity is more than one year but matures within one year (including one year) from the date of the balance sheet, it is
shown as the non-current liabilities due within one year; The remainder is shown as non-current liabilities.
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When the current obligation of a financial liability (or a part of it) has been discharged, the company derecognizes the
part of the financial liability or the discharged obligation. The difference between the book value of the derecognized
part and the consideration paid is included in the current profit and loss.
When the current obligation of a financial liability (or a part of it) has been discharged, the company derecognizes the
financial liability (or this part of the financial liability).
4.10.3 Measurement method of financial instruments' fair value
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. When valuing, the company adopts valuation techniques that are applicable
under the current circumstances and that there are sufficient available data and other information to support, and selects
a valuation technique that is consistent with the characteristics of the asset or liability considered by market participants
in the transaction of the relevant asset or liability. Input values and, where possible, prefer relevant observable input
values. Unobservable input values are used when the relevant observable input values are unavailable or impractical to
obtain.
4.10.4 Subsequent measurement
After initial recognition, the company shall make subsequent measurement of different types of financial assets at
amortized cost, measured at fair value through other comprehensive income, or measured at fair value through profit
and loss.
After initial recognition, the company shall make subsequent measurement of different types of financial liabilities at
amortized cost, measured at fair value through profits and losses or through other appropriate methods.
The amortized cost of a financial asset or financial liability shall be determined by the following adjustment of the initial
recognized amount of the financial asset or financial liability:
(a) Deduct the principal already repaid.
(b) Plus or minus the cumulative amortization amount formed by amortizing the difference between the initial
recognition amount and the amount at maturity using the effective interest rate method.
(c) Deduct the accumulated loss provisions (only applicable to financial assets).
The company recognizes interest income according to the effective interest rate method. Interest income is calculated
and determined by multiplying the book balance of the financial asset by the actual interest rate, except in the following
cases:
(a) For the financial assets acquired or originated with credit impairment, the Company shall calculate and determine
the interest income according to the amortized cost of the financial asset and the effective interest rate adjusted by credit
since the initial recognition.
(b) For financial assets purchased or generated without credit impairment but which become credit impairment in
subsequent periods, the Company shall calculate and determine its interest income according to the amortized cost and
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effective interest rate of the financial asset in subsequent periods. Company according to the policy of the financial asset
amortized cost using the actual interest rate method to calculate the interest income, if the financial instruments in the
subsequent period no longer exist for its credit risk has improved credit impairment, and the improved objectively and
application after the policy associated with the occurrence of an event, such as the debtor's credit rating was raised, The
company turns to the actual interest rate multiplied by the book balance of the financial asset to determine the interest
income.
4.11 Notes receivable
For the determination and accounting treatment of expected credit losses of notes receivable, please refer to Note IV,
10 -- Financial Instruments.
4.12 Accounts receivable
For the determination and accounting treatment of expected credit losses of accounts receivable, please refer to Notes
IV, 10 -- Financial Instruments.
4.13 Receivables for financing
For the determination and accounting treatment of expected credit losses of receivables for financing, please refer
to Note IV, 10 -- Financial Instruments.
4.14. Other receivables
For the determination and accounting treatment of other expected credit losses of other receivables, please refer to
Note IV, 10 -- Financial Instruments.
4.15 Inventories
4.15.1 Categories of inventories
Inventories include raw materials, work-in-progress, semi-finished products, finished products, commodities in stock,
turnover materials, low-value consumables and contract performance costs., etc. The "Contract performance cost" are
detailed in 17, "Contract Costs".
4.15.2 Measurement of inventories upon delivery
Weighted average method is used to measure the actual costs of inventories upon delivery.
4.15.3 Provision for diminution in value of inventories
At each balance sheet date, inventories are measured at the lower of cost and net realizable value. When the cost of
inventory exceeds its net realizable value, provision for diminution in value of inventories is recognized and included in
the current profit and loss.
Net realizable value refers to the estimated selling price of inventories in daily activities minus the estimated costs to be
incurred upon completion, estimated selling expenses and related taxes.
The basis for determining the net realizable value of various inventories is as follows:
(a) Finished products, commodities in stock and materials for sale that directly used for sale are the estimated selling
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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) On the balance sheet date, if a part of the same inventory has contract price and the other parts do not have contract
price, the net realizable value shall be determined respectively, and the corresponding cost shall be compared to
determine the amount of withdrawal or reversal of the inventory depreciation reserve.
Goods in stock drops in price preparing shall be made on a single inventory item (or category of inventory) and
consolidated for inventories that are related to product series produced and sold in the same region, have the same or
similar end use or purpose, and are difficult to measure separately from other items.
4.15.4 Inventory count system
The Company adopts the perpetual inventory system.
4.15.5 Amortization methods of low-value consumables
Low-cost consumables are amortized by the equal-split amortization method.
4.16 Contract assets
4.16.1 Method and standard for the confirmation of contract assets
A contractual asset is a right to receive consideration that has been transferred to a customer and that right depends on
factors other than the passage of time. Contract assets and liabilities under the same contract shall be shown on a net
basis, and those under different contracts shall not be set off.
4.16.2 Determination method and accounting treatment method of expected credit loss of contract assets
The provision for impairment of contractual assets shall refer to the expected credit loss method of financial
instruments. For contract assets that do not contain significant financing components, the Company adopts a simplified
method to measure loss provisions. For the contract assets containing significant financing elements, the Company shall
measure the loss provisions in accordance with the general method.
In the event of an impairment loss on a contract asset, the “asset impairment loss” shall be debited according to the
amount to be written down, and the contract asset impairment provision shall be credited; the reverse entry shall be
made when the accrued asset impairment provision is reversed.
4.17 Contract costs
4.17.1 Determination method of asset amount related to contract costs
The contract costs of the Company include the incremental costs to obtain a contract and the costs to fulfil a contract.
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. 14 - Revenue (Revised in 2017), they will be treated as the costs to fulfil a
contract and recognized 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
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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;
(c) the costs are expected to be recovered.
The cost of obtaining the contract, that is, the incremental cost of obtaining a contract is expected to be recovered, is
recognized as an asset as contract acquisition cost. Incremental costs are costs that would not have occurred without
the acquisition of the contract. If the amortization period of the asset does not exceed one year, it may be recorded into
the profit or loss for the current period at the time of occurrence.
Expenditures incurred by the enterprise to obtain the contract, other than incremental costs expected to be recovered,
shall be recorded in the profit or loss for the current period when incurred, unless these expenditures are expressly
borne by the customer.
4.17.2 Amortization of assets related to contract costs
Assets related to contract costs are amortized on the same basis as the commodity revenue related to the asset is
recognized, and are included in the current profit and loss.
4.17.3 Impairment of assets related to contract costs
The Company recognizes an impairment loss in profit or loss to the extent that the carrying amount of an asset
recognized 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 recognize in profit or loss a reversal of some or all of an impairment loss
previously recognized. The 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 recognized previously.
4.18 Hold assets for sale
4.18.1 Non-current assets held for sale and disposal group recognition criteria
A company that recovers its carrying value primarily through sales (including exchange of non-monetary assets of
commercial substance, the same below) rather than the ongoing use of a non-current asset or disposal group will classify
it as held for sale. The specific criteria are as follows:
(a) In accordance with the practice of selling such assets or disposal groups in similar transactions, they can be sold
immediately under the current conditions.
(b) The sale is very likely to occur, that is, the company has made a resolution on a sale plan and obtained a firm purchase
commitment, and the sale is expected to be completed within one year.
Among them, the disposal group refers to a group of assets that are disposed of as a whole in a transaction through
sale or other means, and the liabilities directly related to these assets transferred in the transaction. If the asset group
or combination of asset groups to which the disposal group belongs has apportioned the goodwill obtained in the
business combination in accordance with the Accounting Standards for Business Enterprises No. 8 – Impairment of
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Assets, the disposal group shall include the goodwill apportioned to the disposal group.
4.18.2 Accounting treatment
When the initial measurement or re-measurement on the balance sheet date is divided into non-current assets held for
sale and disposal group, if the book value is higher than the net amount after the fair value minus the cost of sale, the
book value is written down to the fair value The net amount after deducting the selling expenses, the written-down
amount is recognized as asset impairment loss, which is included in the current profit and loss, and at the same time, an
impairment provision for assets held for sale is made. For the disposal group, the recognized asset impairment loss is
first deducted from the book value of the goodwill in the disposal group, and then deducted proportionally to the
"Accounting Standards for Business Enterprises No. 42 - Non-current Assets Held for Sale, The book value of each
non-current asset specified in the measurement of "Disposal Group and Discontinued Operation" (hereinafter referred
to as "Hold-for-sale Standards"). If the net amount of the disposal group held for sale on the subsequent balance sheet
date increases after deducting the selling expenses, the previously written down amount shall be restored, and the held-
for-sale standard shall be applied after being classified as held-for-sale The amount of asset impairment loss recognized
for non-current assets subject to measurement requirements shall be reversed, and the reversal amount shall be included
in the current profit and loss, and the book value of each non-current asset in the disposal group shall be subject to the
measurement provisions of the held-for-sale standard except for goodwill. The proportion increases its book value
proportionally; the book value of goodwill that has been written off, and the non-current assets that are subject to the
measurement requirements of the held-for-sale standard, the asset impairment loss recognized before being classified
as held-for-sale shall not be reversed.
No depreciation or amortization is provided for the non-current assets held for sale or the non-current assets in the
disposal group, and the interest and other expenses of the liabilities in the disposal group held for sale continue to be
recognized.
When the non-current assets or disposal groups no longer meet the classification conditions of the held-for-sale category,
they will no longer be classified as held-for-sale categories or the non-current assets will be removed from the held-for-
sale disposal group, and the lower of the following is measured:
(a) The book value before being classified as held-for-sale category, adjusted according to the depreciation, amortization
or impairment that should have been recognized under the assumption that it was not classified as held-for-sale category;
(b) The recoverable amount.
4.19 Debt investment
For the confirmation method and accounting treatment method of expected credit loss of debt investment, please refer
to Note IV. 10 - Financial Instruments.
4.20 Other debt investments
For the confirmation method and accounting treatment method of expected credit losses of other debt investments,
please refer to Note IV. 10 - Financial Instruments.
4.21 Long-term receivables
For the confirmation method and accounting treatment method of the expected credit loss of long-term receivables,
please refer to Note IV. 10 - Financial Instruments.
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4.22 Long-term equity investment
Long-term equity investment refers to the equity investment in which the company controls and has significant influence
on the investee, as well as the investment in its joint ventures.
4.22.1 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 .
4.22.2 Subsequent measurement and recognition of profit or loss
a) Where the Company is able to exercise control over an investee, the long-term equity investment is accounted for
using the cost method.
Long-term equity investments accounted for using the cost method are priced at the initial investment cost. Additional
or recovered investment should adjust the cost of long-term equity investment. Cash dividends or profits announced to
be distributed by the investee are recognized as investment income for the current period.
b) Where the Company has investment in associates and joint ventures, the long-term equity investment is accounted
for using the equity method.
When the long-term equity investment is accounted for by the equity method, if the investment cost of the long-term
equity investment is greater than the share of the fair value of the identifiable net assets of the investee at the time of
investment, the investment cost of the long-term equity investment shall not be adjusted; the investment cost of the
long-term equity investment is less than If the investee should enjoy a share of the fair value of the identifiable net
assets of the investee at the time of investment, the book value of the long-term equity investment shall be adjusted,
and the difference shall be included in the current profit and loss of the investment.
In the equity method accounting, when long-term equity investment is obtained, the investment profit and loss and
other comprehensive income are respectively recognized according to the share of net profit and loss and other
comprehensive income realized by the investee that should be enjoyed or shared, and the book value of long-term equity
investment shall be adjusted. The investing enterprise shall calculate the portion that should be distributed according to
the profits or cash dividends declared and distributed by the invested unit, and correspondingly reduce the book value
of the long-term equity investment. The investor shall adjust the book value of the long-term equity investment and
include it in the owner's equity for other changes in the owner's equity other than the net profit and loss, other
comprehensive income and profit distribution of the investee.
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To confirm the net loss of the investee, the book value of the long-term equity investment and other long-term equity
that substantially constitutes the net investment in the investee shall be written down to zero, unless the company is
obliged to bear additional losses to the investee . If the invested unit realizes a net profit in the future, the investing
enterprise shall resume the recognition of the profit-sharing amount after its profit-sharing amount makes up for the
unrecognized loss-sharing amount. For other changes in the owner's equity of the investee other than net profit and
loss, other comprehensive income and profit distribution, the book value of the long-term equity investment is adjusted
and included in the owner's equity.
Long-term equity investments are accounted for under the equity method. When recognizing investment gains and
losses, the net profit of the investee is first adjusted to the fair value of the investee's identifiable assets, accounting
policies and accounting periods when the investment is obtained, and then adjustments should be made according to
the appropriate amount. The net profit or loss share of the investee that enjoys or should be shared is recognized in the
current investment profit and loss. The unrealized profit and loss of internal transactions with associates and joint
ventures shall be calculated according to the shareholding ratio and attributable to the company, and the investment
profit and loss shall be recognized on the basis of offset.
4.22.3 Basis for recognition of joint control or significant influence over an investee
Joint control refers to the common control of an arrangement in accordance with relevant agreements, and the relevant
activities of the arrangement must be decided by the unanimous consent of the participants sharing the control rights.
When judging whether there is joint control, the first determine is whether all participants or a combination of
participants collectively control the arrangement. If all participants or a group of participants must act in unison to
decide the relevant activities of an arrangement, it is considered that all participants or a group of parties collectively
control the arrangement. Secondly, it is judged whether the decision-making of the relevant activities of the arrangement
must be unanimously agreed by the participants who collectively control the arrangement. If there is a combination of
two or more parties that can collectively control an arrangement, it does not constitute joint control. When judging
whether there is joint control, the protective rights enjoyed are not considered.
Significant influence refers to the power to participate in the decision-making of an enterprise's financial and operating
policies, but cannot control or jointly control the formulation of these policies with other parties. When determining
whether it can exert significant influence on the investee, consider the voting shares directly or indirectly held by the
investor and the impact of current executable potential voting rights held by the investor and other parties after it is
assumed to be converted into the equity of the investee, including the current convertible warrants, share options and
convertible corporate bonds issued by the investee.
4.23 Investment property
Investment real estate refers to real estate held for rent or capital appreciation, or both, including leased land use rights,
land use rights held and ready to be transferred after appreciation, and leased buildings.
Investment property of the Company use rights held for resale after appreciation. Investment property is initially
measured at acquisition cost, and is subsequently measured using the cost method or using the fair value model.
4.23.1 Using the cost model
The investment real estate is depreciated or amortized on a straight-line basis according to the following service life
and estimated net residual value rate:
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Category Depreciation period (years) Residual rate Annual depreciation rate
Buildings 20-40 0%-10% 2.25%-5.00%
4.23.2 Using the fair value model
No depreciation or amortization is made for investment real estate, and its book value is adjusted based on the fair value
of the investment real estate on the balance sheet date, and the difference between the fair value and the original book
value is included in the current profit and loss.
4.24 Fixed assets
4.24.1 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 recognized 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.
4.24.2 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 The method for Depreciation period Residual rate Annual depreciation rate
depreciation (years)
Buildings Straight-line depreciation 20-40 0%-10% 2.25%-5.00%
Boats & nets Straight-line depreciation 5-30 3%-5% 3.17%-19.40%
Machinery & equipment Straight-line depreciation 8-20 0%-10% 4.50%-12.50%
Transportation equipment Straight-line depreciation 5 0%-10% 18.00%-20.00%
Furniture and office equipment Straight-line depreciation 5 0%-10% 18.00%-20.00%
4.25 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.
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4.26 Borrowing costs
4.26.1 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. 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. Other borrowing costs are recognized as expenses and
recorded in profit or loss for the current period when incurred. Borrowing costs include borrowing interest,
amortization of discount or premium, auxiliary expenses, and foreign exchange differences arising from foreign currency
borrowings.
4.26.2 Borrowing costs will be capitalized if they meet the following conditions at the same time
(a) The asset expenditure has occurred, and the asset expenditure includes the cash paid for the purchase, construction
or production of assets eligible for capitalization, the transfer of non-cash assets or the payment of interest-bearing
debts;
(b) The borrowing costs have been incurred;
(c) The acquisition, construction or production activities necessary to make the asset ready for its intended use or sale
have begun.
The capitalization of borrowing costs shall cease when the purchased, constructed or produced assets that meet the
capitalization conditions are ready for intended use or sale. If an asset that meets the capitalization conditions is
abnormally interrupted in the process of acquisition, construction or production, and the interruption lasts for more
than 3 months, the capitalization of borrowing costs will be suspended. The borrowing costs incurred during the
interruption period are recognized as expenses and included in the current profit and loss until the acquisition,
construction or production of the asset resumes. The capitalization of borrowing costs continues if the interruption is
a necessary procedure for the acquired, constructed or produced assets eligible for capitalization to be ready for their
intended use or sale.
4.26.3 During the capitalization period, the capitalized amount of interest (including the amortization of discount or
premium) for each accounting period shall be determined in accordance with the following provisions:
(a) If a special loan is borrowed for the purchase, it is determined by the amount interest expense actually incurred in
the current period of the special loan, minus the interest income obtained from the unused loan funds or the investment
income obtained from temporary investment.
(b) If general borrowings are occupied for the purchase, it is determined by the weighted average of accumulated asset
expenditures of the accumulated asset expenditures in exceed the special borrowings by the capitalization rate of
occupied general borrowings. The capitalization rate is determined based on the weighted average interest rate of general
borrowings.
If there is a discount or premium on the loan, the amount of the discount or premium amortized in each accounting
period shall be determined according to the actual interest rate method, and the interest amount of each period shall be
adjusted. During the capitalization period, the capitalized amount of interest in each accounting period shall not exceed
the actual amount of interest incurred on the relevant borrowings in the current period.
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4.26.4 The auxiliary expenses incurred by special borrowing, which are incurred before the purchased, built or produced
assets meeting the capitalization conditions reach the scheduled state of being available for use or sale, shall be capitalized
according to the amount incurred when incurred and included into the cost of the assets meeting the capitalization
conditions; Where an asset purchased, built or produced conforming to the capitalization conditions has reached the
pre-scheduled state of being usable or saleable, it shall be recognized as an expense according to the amount incurred at
the time of occurrence and recorded into the profit or loss for the current period. Auxiliary expenses incurred by general
borrowing shall be recognized as expenses according to the amount incurred when incurred, and shall be recorded into
the profit or loss for the current period.
4.27 Right-of-use assets
The right-of-use assets class of the company mainly includes housing and buildings.
4.27.1 Conditions for the confirmation of the right-of-use assets
The right-of-use assets refer to the right that the company, as the lessee, can use the leased assets during the lease term.
The company shall confirm the right-of-use assets on the date when the lease term begins. Right-of-use assets are
recognized when economic benefits are likely to flow in and costs can be measured reliably.
4.27.2 Initial measurement of right-of-use assets
The right-of-use assets are initially measured at cost, which includes:
(a) The initial measurement amount of lease liabilities.
(b) The amount of lease payment paid on or before the beginning of the lease term, if there is lease incentive, will be
deducted from the amount of lease incentive already enjoyed.
(c) Initial direct expenses incurred by the lessee.
(d) The expected costs incurred by the lessee in disassembling and removing the leased asset, restoring the site where
the leased asset is located or restoring the leased asset to the state stipulated in the lease terms.
4.27.3 Subsequent measurement of the right-of-use assets
(a) Use the cost model to measure the right-of-use assets.
(b) Depreciation of the right-of-use assets. Where the ownership of the leased asset can be reasonably determined at the
end of the lease term, the company shall calculate depreciation during the remaining service life of the leased asset.
Where it is not reasonably certain that the ownership of the leased asset can be acquired at the end of the lease term,
the company shall calculate depreciation during the period during which the lease term and the remaining service life of
the leased asset are shorter. The specific depreciation methods of various right-of-use assets are as follows.
4.27.4 Depreciation methods of various right-of-use assets
All types of fixed assets are depreciated using the straight-line method according to the following service life time,
estimated net residual value rateand depreciation rate:
Category The method for depreciation Depreciation period (years) Residual rate Annual depreciation rate
Buildings Straight-line depreciation 1.5-3 - -
4.27.5 Change of lease
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When the lease liabilities are re-measured according to the present value of the changed lease payments and the book
value of the right-of-use assets is adjusted accordingly, if the book value of the right-of-use assets has been reduced to
zero but the lease liabilities still need to be further reduced, the remaining amount shall be recorded into the profit or
loss for the current period.
4.27.6 Impairment test method and impairment provision method of usufruct
On the balance sheet date, if there is any indication that the right-of-use assets are impaired, the corresponding
impairment provision shall be set aside according to the difference between the carrying value and the recoverable
amount.
4.28 Intangible assets
4.28.1 Intangible assets refer to identifiable non-monetary assets without physical form owned or controlled by an
enterprise. Intangible assets are initially measured at cost, and their service life is analyzed and judged upon acquisition
of intangible assets.
4.28.2 The company usually considers the following factors in determining the service life of intangible assets:
(a) The usual life cycle of the products produced with the asset and the available information about the service life of
similar assets;
(b) The current situation of technology and process and the estimation of the future development trend;
(c) Market demand for products or services produced by the assets;
(d) Actions expected by current or potential competitors;
(e) The expected maintenance expenditure to maintain the ability of the asset to bring economic benefits, and the
company's expected ability to pay the related expenditure;
(f) Relevant legal provisions or similar restrictions on the asset control period, such as the franchise period, lease period,
etc.;
(g) Correlation with the service life of other assets held by enterprises.
If it is impossible to foresee the period during which intangible assets bring economic benefits to the company, they
shall be regarded as intangible assets with uncertain service life.
4.28.3 For intangible assets with limited service life, they shall be amortized systematically and reasonably (or by straight
line method) during their service life. At the end of each year, the company shall review the service life and amortization
method of intangible assets with limited service life. If the service life and amortization method of intangible assets are
different from those previously estimated, the amortization period and amortization method will be changed.
For intangible assets with limited service life, when the straight-line method is used to calculate the amortization amount,
the service life and residual rate of each intangible asset are as follows:
Category Amortization period (years) Residual rate
land use rights 42-49 0%
software 5-10 0%
4.28.4 Internally generated projects
(a) Expenditure of internal research and development project, including expenditure of research stage and expenditure
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of development stage, among which: Research is an original and planned investigation for the acquisition and
understanding of new scientific or technical knowledge; Development refers to the application of research results or
other knowledge to a plan or design for the production of new or substantially improved materials, devices, products,
etc., prior to commercial production or use.
(b) Expenditure in the research phase is recognized as an expense in profit or loss for current period when it is incurred.
Expenditure in the development phase of internally generated projects is capitalized if they meet the following
conditions at the same time:
1) It is technically feasible to complete the intangible asset so that it can be used or sold;
2) The intent that the intangible asset can be completed and used or sold;
3) The way in which the intangible assets can generate economic benefits include the ability to prove that the products
produced by using the intangible assets have a market or that the intangible assets themselves exist in the market. If the
intangible assets will be used internally, its usefulness shall be proved;
4) Have sufficient technical, financial and other resource support to complete the development of the intangible asset
and have the ability to use or sell the intangible asset;
5) Expenses attributable to the development stage of the intangible asset can be measured reliably.
4.29 Goodwill
Goodwill is the difference between the initial merger cost and the fair value share of identifiable net assets acquired in
the combination of enterprises not under common control. The company does not amortize goodwill, which is
measured by the amount of costs less accumulated impairment provisions and shown separately in the consolidated
balance sheet.
4.30 Impairment of long-term assets
For fixed assets, construction in process, intangible assets with limited service life, investment property measured by
cost model and non-current non-financial assets such as long-term equity investment in subsidiaries, cooperative
enterprise and associated enterprises, the company shall judge whether there is any sign of impairment on the balance
sheet date. If there is any indication of impairment, the recoverable amount shall be estimated and the impairment test
shall be conducted. Goodwill, intangible assets with uncertain service life and intangible assets that have not yet
reached a usable state, regardless of whether there are signs of impairment, are tested for impairment every year.
If the impairment test results show that the recoverable amount of an asset is lower than its carrying value, the
impairment provision shall be made and the impairment loss shall be recorded according to the difference. The
recoverable amount is the higher of the net value of the fair value of the asset less the disposal expense and the present
value of the estimated future cash flows of the asset. The fair value of the asset is determined according to the sales
agreement price in a fair transaction; If there is no sales agreement but there is an active market for the asset, the fair
value shall be determined according to the bid price of the buyer of the asset; Where there is no sale agreement and an
active market for the asset, the fair value of the asset is estimated based on the best available information. Disposal costs
include legal fees related to the disposal of assets, related taxes, handling fees and direct expenses incurred to bring the
assets into a saleable state. The present value of the estimated future cash flow of an asset is determined according to
the estimated future cash flow generated during the continuous use of the asset and the final disposal by choosing an
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appropriate discount rate. The asset impairment reserve is calculated and recognized on the basis of a single asset. If it
is difficult to estimate the recoverable amount of a single asset, the recoverable amount of the asset group to which the
asset belongs shall be determined. Asset group is the minimum portfolio of assets that can generate cash inflow
independently.
As for the impairment test of goodwill, the book value of goodwill formed as a result of business combination shall be
allocated to the relevant asset group in a reasonable way from the purchase date; If it is difficult to allocate to the related
asset group, allocate to the related asset group portfolio. The relevant asset group or asset group combination is the
asset group or asset group combination that can benefit from the synergies of the business combination and is not larger
than the reporting segment identified by the Company.
When conducting impairment tests on related asset groups or asset group combinations containing goodwill, if there
are signs of impairment in the asset groups or asset group combinations related to goodwill, the impairment tests shall
first be conducted on the asset groups or asset group combinations that do not contain goodwill to calculate recoverable
amounts and confirm the corresponding impairment losses. And goodwill of the asset group or combination of group
assets impairment test, comparing its book value and recoverable amount, such as the recoverable amount is lower than
the book value, the amount of impairment loss first deduction allocation to the asset group or combination of group
assets in the book value of the goodwill, again according to the asset group or combination of group assets all assets
except goodwill in the book value of the share, Deduct the carrying value of other assets in proportion, provided that
the carrying value of each asset after deduction shall not be less than the net of the fair value of the asset minus disposal
expenses (if determined) and the present value of the estimated future cash flows of the asset (if determined), whichever
is higher, and shall not be less than zero.
Once the aforesaid impairment loss of assets is recognized, the part whose value can be recovered shall not be turned
back in subsequent periods.
4.31 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 recognized as expense in profit or loss for the current period.
Long-term deferred expenses are amortized on an average basis using the straight-line method over the following years:
Category Amortization period (years)
Renovation costs 2 to 5 years
4.32 Contract liabilities
Contractual liabilities reflect obligations to transfer goods to customers for consideration received or receivable. If the
customer has paid the contract consideration or obtained the right to unconditionally receive the contract consideration
before transferring the goods to the customer, the contract liability shall be recognized according to the amount received
or receivable at the earlier date of the actual payment made by the customer and the amount due and payable. Contract
assets and liabilities under the same contract shall be shown on a net basis, and those under different contracts shall not
be set off.
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4.33 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 short-term
employee benefits, post-employment benefits, termination benefits and other long-term employee benefits. The benefits
provided by the company to employees’ spouses, children, dependents, survivors of deceased employees and other
beneficiaries are also considered as employee benefits.
4.33.1 Short-time employee benefits
Short-term employee benefits refer to the employee compensation that the company needs to pay in full within 12
months after the end of the annual report period for the employee to provide relevant services.
Short-term employee benefits include employee salary, bonus, allowance and subsidy, employee welfare, medical
insurance premium, industrial injury insurance premium and maternity insurance premium, housing provident fund,
labor union funds and employee education funds, short-term paid absenteeism, short-term profit sharing plan, non-
monetary welfare and other short-term remuneration.
In the accounting period in which employees have rendered services, the Company recognizes the short-term employee
benefits as liability, and charges to profit or loss for the current period or includes in the cost of relevant assets.
4.33.2 Post-employment benefits
Post-employment benefits refer to various forms of remuneration and welfare provided by the company for the service
provided by the employee after the employee retires or terminates the labor relationship with the company, excluding
short-term remuneration and dismissal welfare.
The post-employment benefits plan includes a defined contribution plan and a defined benefit plan. Among them, the
set contribution plan refers to the post-employment welfare plan in which the company no longer bears the further
payment obligation after the fixed expenses are deposited in the independent fund. Defined benefit plans refer to post-
employment benefit plans other than defined contribution plans.
Defined contribution plan including basic endowment insurance, unemployment insurance, etc. During the accounting
period when the employee provides services, the amount payable calculated according to the defined contribution plan
is recognized as a liability and recorded into the profit or loss for the current period or the cost of related assets.
At the end of the reporting period, the employee compensation costs arising from the defined benefit plans are
recognized as the following components:
(a) Service cost, including current service cost, past service cost and settlement gain or loss.
(b) Net interest on defined benefit plan net liabilities or net assets, including interest income on plan assets, interest
expense on defined benefit plan obligations, and interest affected by asset caps.
(c) Recalculate changes in net liabilities or net assets of defined benefit plans
Unless other accounting standards require or allow the cost of employee benefits to be included in the cost of assets,
items (a) and (b) above shall be included in the current profit and loss; Item (c) shall be included in other comprehensive
income and shall not be allowed to be transferred back to profit and loss in subsequent accounting periods, but such
amounts recognized in other comprehensive income may be transferred within the scope of equity.
Under the defined benefit plan, the earliest date on which past service costs are recognized as current expenses is:
(a) When modifying the defined benefit plan.
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(b) When the company confirms relevant restructuring expenses or dismissal benefits.
Recognize a settlement gain or loss at the time of defined benefit plan settlement.
4.33.3 Termination benefits
Termination benefits refer to the compensation given to employees by the company for terminating their labor relations
with employees before the expiration of their labor contracts or for encouraging employees to accept layoffs voluntarily.
Termination benefits provided by the Company to employees are recognized 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.
4.33.4 Other long-term employee benefits
Other long-term employee benefits refers to all employee compensation except short-term compensation, post-
separation benefits and dismissal benefits, including long-term paid absenteeism, long-term disability benefits, long-term
profit sharing plans, etc.
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 recognized
and measured in accordance with the above requirements relating to defined benefits plan. At the end of the reporting
period, the enterprise shall recognize the employee compensation costs generated by other long-term employee benefits
as the following components:
(a) Service cost
(b) Net interest on net liabilities or net assets of other long-term employee benefits
(c) Changes in net liabilities or net assets of other long-term employee benefits are re-measured.
In order to simplify the related accounting treatment, the total net amount of the above items is included in the current
profit and loss or the cost of the related assets
4.34 Lease liabilities
Recognize the present value of outstanding lease payments as lease liabilities on the commencement date of the lease
term, except for short-term leases and leases of low value assets. When calculating the present value of the lease payment,
the lease embedded interest rate is used as the discount rate. If the inherent interest rate cannot be determined, the
incremental interest rate of the lessee shall be used as the discount rate. The interest expense of the lease liability during
each period of the lease term shall be calculated according to the fixed periodic interest rate and recorded into the profit
and loss of the current period, except for those recorded into the cost of assets in accordance with note 4 and 25.
Variable lease payments that are not included in the measurement of lease liabilities shall be included in current profit
and loss when actually incurred, unless otherwise stipulated to be included in the cost of related assets.
Lease term began, in the future when substantial changes occurred in the fixed payment, the guaranteed residual value
is expected to cope with the amount of change, is used to determine the lease payment ratio index or change, call
options, renewal options or terminate the option evaluation results or the actual exercise changes, according to the
changes of the lease the present value of the payments to measure lease liability.
4.35 Estimated liabilities
Obligations related to contingent events that meet the following conditions at the same time are recognized as estimated
liabilities：
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(a) The obligation is a present obligation of the enterprise;
(b) The performance of the obligation is likely to result in the outflow of economic benefits from the enterprise;
(c) The amount of the obligation can be measured reliably.
Estimated liabilities should be initially measured according to the best estimate of the expenditure required to perform
the relevant current obligations.
4.36 Share-based payment
4.36.1 Types of share-based payment
Share-based payment is divided into equity-settled share-based payment and cash-settled share-based payment.
Equity-settled share-based payment refers to a transaction in which an enterprise uses shares or other equity instruments
as consideration in order to obtain services. The equity instruments referred to here are the enterprise's own equity
instruments.
Cash-settled share-based payment refers to a transaction in which an enterprise undertakes an obligation to deliver cash
or other assets calculated and determined on the basis of shares or other equity instruments in order to obtain services.
4.36.2 Determination method of fair value of equity instruments.
If there is an active market for equity instruments, it shall be determined according to the quotation in the active market.
If there is no active market for equity instruments, use valuation techniques, including reference to prices used in recent
market transactions between parties who are familiar with the situation and willing to trade, reference to the current fair
value, discounted cash flow of other financial instruments that are substantially the same. It is determined by methods
such as cash method and option pricing model.
4.36.3 The basis for confirming the best estimate of vested equity instruments.
On each balance sheet date, according to the latest follow-up information such as the change in the number of
exercisable people and the completion of performance indicators, the number of stock options that are expected to be
exercised is revised, and the expenses to be apportioned in each period are confirmed on this basis. For an option cost
spanning multiple accounting periods, it can generally be apportioned according to the proportion of the waiting period
length of the option to the entire waiting period length in a certain accounting period.
4.36.4 Accounting treatment related to implementation, modification and termination of share-based payment plan
4.36.4.1 The equity-settled share-based payment that is exercisable immediately after the grant in exchange for employee
services shall be included in the relevant costs or expenses according to the fair value of the equity instruments on the
grant date, and the capital reserve shall be increased accordingly.
Equity-settled share-based payment that can be exercised in exchange for employee services after the completion of the
service during the waiting period or when the specified performance conditions are met, on each balance sheet date
during the waiting period, the best estimate of the number of exercisable equity instruments is Based on the fair value
of the equity instruments on the grant date, the services obtained in the current period are included in the relevant costs
or expenses and capital reserves.
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On the balance sheet date, if the subsequent information indicates that the number of exercisable equity instruments is
different from the previous estimate, adjustments shall be made and adjusted to the actual number of exercisable equity
instruments on the exercise date.
For equity-settled share-based payments, no adjustments will be made to the confirmed costs and total owner's equity
after the vesting date. On the exercise date, the share capital and share premium will be confirmed according to the
exercise situation, and the capital reserves (other capital reserves) confirmed during the waiting period will be carried
forward.
For the granted equity instruments such as options in an active market, the fair value shall be determined according to
the quotation in the active market. For granted options and other equity instruments that do not have an active market,
the option pricing model should be used to determine their fair value, and the option pricing model selected should at
least consider the following factors:
a) The exercise price of the option;
b) The validity period of the option;
c) The current price of the underlying shares;
d) Estimated stock price volatility;
e) Estimated dividends on the shares;
f) The risk-free interest rate during the life of the option.
4.36.4.2 The cash-settled share-based payment that can be exercised immediately after the grant shall be included in the
relevant costs or expenses at the fair value of the liabilities assumed by the enterprise on the grant date, and the liabilities
shall be increased accordingly.
For the cash-settled share-based payment that can only be exercised after completing the services during the waiting
period or meeting the specified performance conditions, on each balance sheet date during the waiting period, on the
basis of the best estimate of the vesting situation, the liability shall be borne by the enterprise according to the the fair
value amount of the service obtained in the current period is included in the cost or expense and the corresponding
liability.
On each balance sheet date and settlement date before the settlement of the relevant liabilities, the fair value of the
liabilities is re-measured, and the changes are included in the current profit and loss.
4.37 Revenues
Accounting policies used for revenue recognition and measurement.
4.37.1 Principles of revenue recognition
When the contract with the customer meets the following conditions at the same time, the revenue is recognized when
the customer obtains the control of the relevant commodity:
(a) The parties to the contract have approved the contract and promised to perform their respective obligations;
(b) The contract clarifies the rights and obligations of the parties to the contract in relation to the transferred goods or
the provision of labor services;
(c) The contract has clear payment terms related to the transferred goods;
(d) The contract has commercial substance, that is, the performance of the contract will change the risk, time distribution
or amount of future cash flows of the Group;
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(e) The consideration entitled to the transfer of goods to the customer is likely to be recovered.
Evaluate the contract on the contract inception date, identify each individual performance obligation contained in the
contract, and allocate the transaction price to each individual performance obligation according to the relative
proportion of the stand-alone selling price of the commodities promised by each individual performance obligation. In
determining the transaction price, the influence of factors such as variable consideration, significant financing
components in the contract, non-cash consideration, and consideration payable to customers are considered. Then
determine whether each individual performance obligation is performed within a certain period of time or at a certain
point in time, and recognize revenue separately when each individual performance obligation is performed.
If one of the following conditions is met, the performance obligation is fulfilled within a certain period of time; otherwise,
the performance obligation is fulfilled at a certain point in time:
a) The customer obtains and consumes the economic benefits brought by the company's performance when the
company performs the contract;
b) The customer can control the commodities under construction in the process of contract performance;
c) The commodities produced by the enterprise during the performance of the contract have irreplaceable uses, and the
enterprise has the right to receive payment for the part of the performance that has been completed so far during the
entire contract period.
For performance obligations performed within a certain period of time, revenue is recognized according to the progress
of performance within that period. The progress of contract performance is determined by the input method or output
method according to the nature of the transferred goods. When the progress of contract performance cannot be
reasonably determined, and the costs incurred are expected to be compensated, revenue shall be recognized according
to the amount of costs incurred until the progress of contract performance can be reasonably determined.
If one of the above conditions is not met, revenue will be recognized at the transaction price allocated to the single
performance obligation when the customer obtains control over the relevant commodity. The following indications
should be considered when judging whether a customer has acquired control of a commodity:
The enterprise has the current right to receive payment for the product, that is, the customer has the current
payment obligation for the product;
The enterprise has transferred the legal ownership of the product to the customer, that is, the customer already
owns the legal ownership of the product;
The enterprise has transferred the commodity in kind to the customer, that is, the customer has physically possessed
the commodity;
The enterprise has transferred the main risks and rewards of the ownership of the commodity to the customer,
that is, the customer has obtained the main risks and rewards of the ownership of the commodity;
The customer has accepted the product;
Other indications that the customer has obtained control of the goods.
4.37.2 The company's revenue recognition method
(a) The company's revenue recognized at a certain point in time when controlling the relevant assets:
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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 the 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.
(b) 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 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.
4.38 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.
4.38.1 Judgment basis and accounting treatment method of government grants related to assets
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. Government grants related to
assets are recognized as deferred income. They are amortized in profit or loss for each period over the related assets'
estimated useful period on a systematic basis.
If the relevant assets are sold, transferred, scrapped or damaged before the end of their useful life, the undistributed
balance of relevant deferred income shall be transferred to the profit and loss of the current period of asset disposal.
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.
4.38.2 Judgment basis and accounting treatment method of government grants related to income
Except those grants which are classified as government grants related to assets, other government grants are classified
as government grants related to income.
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
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income.
If the grant related to income is a compensation for related expenses or losses to be incurred in subsequent periods, the
grant is recognized as deferred income, and amortized in profit or loss over the periods in which the related costs are
recognized. If the grant related to income is a compensation for related expenses or losses already incurred, the grant is
recognized directly in profit or loss for the current period.
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 company obtains policy-based preferential loan discounts, it shall distinguish two situations when the finance
allocates the discounted funds to the lending bank and the finance directly allocates the discounted funds to the
enterprise:
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 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.
4.38.3 The recognition timing for government grants
If the government subsidy is a monetary asset, the company will recognize it when it meets the conditions attached to
the government subsidy and is actually received; if the government subsidy is a non-monetary asset, the company
recognizes the government subsidy when it obtains the control right of the non-monetary asset. Among them, non-
monetary assets are measured at fair value; if the fair value cannot be obtained reliably, it is measured at the nominal
amount.
When the confirmed government grant needs to be returned, if there is a relevant deferred income balance, the book
balance of the relevant deferred income will be offset, and the excess will be included in the current profit and loss; if
there is no relevant deferred income, it will be directly included in the current profit and loss.
4.39 Deferred tax asset and deferred tax liability
Income tax is accounted for using the balance sheet liability method. Temporary differences arising from the difference
between the carrying amount of an asset or liability (asset or liability not recognized 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 recognized
as deferred tax calculating by the effective tax rate in the expected period to receive the asset or discharge the liability.
On the basis of calculating and determining the current income tax (that is, the income tax payable in the current period)
and the deferred income tax expenses (or gains), the sum of the two is recognized as the income tax expenses (or gains)
in the income statement, but Excludes income tax effects of transactions or events that are directly included in owners'
equity.
On the balance sheet date, review the book value of deferred tax assets. 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.
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4.40 Leases
A lease is a contract that transfers or acquires the right to control the use of one or more identified assets for a specified
period in exchange for or payment of consideration. At the inception date of a contract, assess whether the contract is
or contains a lease.
4.40.1 Company as the lessee
The main types of leased assets are office buildings and cold storage.
4.40.1.1 Initially measured
On the commencement date of the lease term, the right to use the leased asset during the lease term is recognized as a
right-of-use asset, and the present value of the unpaid lease payments is recognized as a lease liability (except for short-
term leases and leases of low-value assets). When calculating the present value of lease payments, the interest rate implicit
in the lease is used as the discount rate; if the interest rate implicit in the lease cannot be determined, the incremental
borrowing rate of the lessee is used as the discount rate.
4.40.1.2 Subsequently measured
With reference to the relevant depreciation provisions of "Accounting Standards for Business Enterprises No. 4 - Fixed
Assets", the right-of-use assets are depreciated (see Note IV. 27 "Right-of-use assets"), and it can be reasonably
determined that the ownership of the leased assets will be obtained when the lease term expires. Depreciation is accrued
over the remaining useful life of the leased asset. If it cannot be reasonably determined that the ownership of the leased
asset can be obtained at the expiration of the lease term, depreciation shall be accrued within the shorter of the lease
term and the remaining useful life of the leased asset.
For lease liabilities, the interest expense in each period of the lease term is calculated at a fixed periodic interest rate, and
is included in the current profit and loss or included in the cost of relevant assets. Variable lease payments that are not
included in the measurement of lease liabilities are included in the current profit and loss or the cost of related assets
when they are actually incurred.
4.40.1.3 After the lease commencement date, when there is a change in the actual fixed payment amount, a change in
the estimated payable amount of the guaranteed residual value, a change in the index or ratio used to determine the lease
payment amount, a purchase option, a lease renewal option or a termination option When there is a change in the
assessment result or the actual exercise of the option, the company re-measures the lease liability according to the present
value of the changed lease payments, and adjusts the book value of the right-of-use asset accordingly. If the book value
of the right-of-use asset has been reduced to zero, but the lease liability still needs to be further reduced, the remaining
amount shall be included in the current profit and loss.
4.40.1.4 Short-term leases and leases of low-value assets
For short-term leases (leases with a term of less than 12 months on the lease commencement date) and leases of low-
value assets, a simplified approach is adopted, and the right to use assets and lease liabilities are not recognized. The
Company recognizes 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.
4.40.2 Company as lessor
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On the lease inception date, based on the substance of the transaction, leases are classified into finance leases and
operating leases. A finance lease is a lease that substantially transfers substantially all the risks and rewards associated
with ownership of the leased asset. Operating leases refer to leases other than finance leases.
4.40.2.1 Operating lease
The Company recognizes lease payments for operating leases in profit or loss applying a straight-line basis in each period
over the lease term. Variable lease payments related to operating leases that are not included in lease receipts are included
in profit or loss for the current period when they are actually incurred.
4.40.2.2 Finance lease
On the commencement date of the lease period, the financial lease receivables are recognized and the financial lease
assets are derecognized. The financial lease receivables are initially measured with the net investment in the lease (the
sum of the unguaranteed residual value and the present value of the lease receipts not yet received at the start date of
the lease term, discounted at the interest rate embedded in the lease), and the interest income during the lease period is
calculated and recognized at a fixed periodic interest rate. The variable lease payments obtained that are not included in
the net lease investment measurement are included in the current profit and loss when they are actually incurred.
4.40.2.3 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.
4.41 Operating lease and finance lease companies (the principles and methods for the confirmation of annual lease in
2020 are as follows)
Treatment of an operating lease by a company as lessee
4.41.1 The treatment of rent
The Company recognizes lease payments for operating leases in profit or loss applying a straight-line basis in each period
over the lease term. Rent is included in the cost of related assets or profit or loss for the current period.
4.41.2 Handling of initial direct expenses
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The initial direct expenses incurred by the lessee in the operation of the lease shall be recorded into the profit or loss
for the current period.
4.41.3 The treatment of contingent rent
Under an operating lease, the lessee shall record the profit and loss of the contingent rent in the profit or loss for the
current period.
4.41.4 The treatment of incentive measures provided by the lessor
Under operating leases, the Company needs to include the rent paid or payable in the cost of relevant assets or current
profits and losses.
4.42 Changes of significant accounting policies and accounting estimates
4.42.1 The changes of accounting policies and reason for change
The Ministry of Finance issued the revised Accounting Standards for Business Enterprises No. 21 -- Leasing (hereinafter
referred to as the "New Leasing Standards") in 2018. The company will implement the New Leasing Standards and
notice on January 1, 2021, and adjust the relevant content of accounting policies.
Under the New Leasing Standards, the company elects not to re-evaluate whether a contract is a lease or includes a lease
for a contract that existed before the date of initial application. For leases as lessee, the Company has chosen to adjust
the cumulative impact of only leases outstanding as of January 1, 2021. The cumulative effect amount of the first
execution adjusts the amount of retained earnings and other related items in the financial statements at the beginning
of the current period of the first execution (i.e. January 1, 2021), and no adjustment is made to the comparable period
information. Among them, for the finance lease on the date of initial execution, the company, as the lessee, measures
the right to use assets and lease liabilities respectively according to the original book value of the assets in the finance
lease and the finance lease payable. For the operating lease on the date of initial execution, the lessee measures the lease
liability as the present value of the remaining lease payments discounted at the incremental borrowing rate on the date
of initial application; the unpaid rent accrued under the original lease criteria on an accrual basis shall be included in the
remaining lease payments.
For each lease, the Company elects to measure the right to use assets in accordance with one of the following:
a. Assume the carrying value of the New Leasing Standards as of the commencement date of the lease term (using the
incremental borrowing rate on the first execution date as the discount rate);
b. An amount equal to the lease liability, adjusted as necessary according to the prepaid rent. And in accordance with
the revised Accounting Standards for Business Enterprises No. 8 -- Asset impairment, the right-of-use assets are tested
for impairment and corresponding accounting treatment is carried out.
The major changes and implications of the implementation of the New Leasing Standards are as follows:
According to the New Leasing Standards, the Company recognized the right-of-use assets of RMB 5,498,108.96 and
lease liabilities of RMB 1,709,314.65 and non-current liabilities due within one year of RMB 3,033,733.61 on January 1,
2021.
4.42.2 The New Lease Standards will be implemented for the first time since 2021
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4.42.2.1 Consolidated Balance Sheet
Unit: RMB Yuan
Item As at 1/1/2021 As at 1/1/2021 Amount of impact
Assets
Prepayments 17,764,804.55 17,128,089.89 -636,714.66
Right-of-use assets - 5,498,108.96 5,498,108.96
Liabilities
Other payables 8,487,724.32 8,606,070.36 118,346.04
Non-current liabilities due within one year - 3,033,733.61 3,033,733.61
Lease liabilities - 1,709,314.65 1,709,314.65
4.42.2.2 Balance Sheet
Unit: RMB Yuan
Item As at 1/1/2021 As at 1/1/2021 Amount of impact
Assets
Prepayments 1,873,295.83 1,497,219.79 -376,076.04
Right-of-use assets - 3,116,643.16 3,116,643.16
Liabilities
Other payables 78,050,679.94 78,140,930.74 90,250.80
Non-current liabilities due within one year - 2,009,743.15 2,009,743.15
Lease liabilities - 640,573.17 640,573.17
4.43 Significant accounting judgments and estimates
In the process of applying accounting policies, the company needs to make judgments, estimates and assumptions about
the book value of statement items that cannot be accurately measured due to the inherent uncertainty of operating
activities. These judgments, estimates and assumptions are made based on the past historical experience of the
company's management and taking into account other relevant factors. These judgments, estimates and assumptions
affect the reported amounts of revenue, expenses, assets and liabilities and the disclosure of contingent liabilities at the
balance sheet date. However, the actual results caused by the uncertainty of these estimates may differ from the current
estimates of the company's management, resulting in significant adjustments to the carrying amounts of the assets or
liabilities affected in the future.
The company regularly reviews the aforementioned judgments, estimates and assumptions on a going concern basis. If
the change in accounting estimates only affects the current period of the change, the amount of impact will be recognized
in the current period of the change; if it affects both the current period of the change and the future period, the affected
amount shall be confirmed in the current period of the change and the future period.
On the balance sheet date, the important areas where the company needs to make judgments, estimates and assumptions
about the amounts of financial statement items are as follows:
(1) Revenue recognition
As stated in Note IV.37, “Revenue”, the recognition of revenue involves the following significant accounting judgments
and estimates:
Estimate the recoverability of consideration to which the customer is entitled for the transfer of goods to the customer:
Enterprises mainly rely on past experience and work to make judgments. These major judgments and changes in
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estimates may have an impact on operating income, operating costs, and profit or loss in the current or subsequent
periods of the change, and may have a significant impact.
(2) Significant accounting judgments and estimates related to leases
① Identification of lease
When a company identifies whether a contract is a lease or contains a lease, it needs to assess whether there is an
identified asset and the customer controls the right-of-use the asset for a certain period of time. In assessing, it is
necessary to consider the nature of the asset, substantive substitution rights, and whether the customer is entitled to
substantially all of the economic benefits arising from the use of the asset during that period and is able to direct the use
of the asset.
② Classification of lease
When a company acts as a lessor, it classifies leases as operating leases and finance leases. When classifying, management
needs to make analysis and judgment on whether all risks and rewards related to the ownership of leased assets have
been substantially transferred to the lessee.
③ Lease liabilities
When the company is the lessee, the lease liability is initially measured at the present value of the unpaid lease payments
on the commencement date of the lease term. In measuring the present value of lease payments, the company estimates
the discount rate to use and the lease term of lease contracts for which renewal or termination options exist. When
evaluating the lease term, the company comprehensively considers all relevant facts and circumstances that bring
economic benefits from the exercise of the option by the company, including expected changes in facts and
circumstances from the commencement date of the lease term to the date when the option is exercised. Different
judgments and estimates may affect the recognition of lease liabilities and right-of-use assets, and will affect profit or
loss in subsequent periods.
(3) Impairment of financial instruments
The company uses the expected credit loss model to evaluate the impairment of financial instruments. The application
of the expected credit loss model requires major judgments and estimates, and all reasonable and evidence-based
information, including forward-looking information, must be considered. When making such judgments and estimates,
the company infers the expected changes in the debtor's credit risk based on historical repayment data combined with
economic policies, macroeconomic indicators, industry risks and other factors.
(4) Provision for inventory depreciation
According to the inventory accounting policy, the company measures at the lower of cost and net realizable value. For
inventories whose cost is higher than net realizable value and obsolete and slow-moving inventory, provision for
inventory depreciation is made. The impairment of inventories to net realizable value is based on an assessment of the
marketability of inventories and their net realisable value. Identifying the impairment of inventories requires
management to make judgments and estimates on the basis of obtaining conclusive evidence and considering factors
such as the purpose of holding inventories and the impact of events after the balance sheet date. The difference between
the actual result and the original estimate will affect the book value of inventories and the accrual or reversal of the
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provision for impairment of inventories in the period in which the estimate is changed.
(5) Provision for impairment of long-term assets
On the balance sheet date, the company judges whether there are signs of possible impairment of non-current assets
other than financial assets. For intangible assets with indefinite useful lives, in addition to the annual impairment test,
when there is an indication of impairment, the impairment test is also performed. Other non-current assets other than
financial assets shall be tested for impairment when there is an indication that their carrying amount is unrecoverable.
When the book value of the asset or asset group is higher than the recoverable amount, that is, the higher of the net
amount after the fair value minus disposal costs and the present value of the expected future cash flow, it indicates that
an impairment has occurred.
The net amount after the fair value minus disposal costs is determined by reference to the sale agreement price or
observable market price of similar assets in an arm's length transaction, minus the incremental cost that can be directly
attributable to the disposal of the asset.
When estimating the present value of future cash flows, it is necessary to make significant judgments on the output,
selling price, relevant operating costs and the discount rate used in calculating the present value of the asset (or asset
group). When estimating the recoverable amount, the company will use all relevant information that can be obtained,
including the forecast of production, selling price and related operating costs based on reasonable and supportable
assumptions.
(6) Depreciation and amortization
After considering the residual value of investment real estate, fixed assets and intangible assets, the company accrues
depreciation and amortization on a straight-line basis within their useful lives. The company periodically reviews the
useful life to determine the amount of depreciation and amortization that will be charged to each reporting period. The
useful life is determined by the company based on past experience with similar assets combined with expected
technological updates. Depreciation and amortization expense is adjusted in future periods if there are material changes
from previous estimates.
(7) Deferred tax assets
To the extent that it is probable that there will be sufficient taxable profits to offset the losses, the company recognizes
deferred tax assets for all unused tax losses. This requires the management of the company to use a lot of judgment to
estimate the time and amount of future taxable profits, and combine tax planning strategies to determine the amount of
deferred tax assets that should be recognized.
(8) Income tax
In the normal business activities of the company, there are certain uncertainties in the final tax treatment and calculation
of some transactions. Whether some items can be listed as disbursements before tax requires the approval of the tax
authorities. If there is a difference between the final determination result of these tax matters and the initially estimated
amount, the difference will have an impact on the current income tax and deferred income tax during the final
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determination period.
(9) Internal retirement benefits and supplementary retirement benefits
The company's internal retirement benefits and supplementary retirement benefits expenses and liabilities are
determined based on various assumptions. These assumptions include discount rate, growth rate of average medical
expenses, growth rate of subsidies for internal retirees and retirees and other factors. Differences between actual results
and assumptions will be recognized and charged to current year expenses as soon as they occur. Although the
management believes that reasonable assumptions have been adopted, changes in actual experience and assumptions
will still affect the company's internal retirement benefits and supplementary retirement benefits expenses and liabilities.
(10) Other major accounting policies, accounting estimates and methods of preparing financial statements
The company shall determine the operating divisions based on the internal organizational structure, management
requirements and internal reporting system, and shall determine the reporting divisions based on the operating divisions.
① This component can generate income and expenses in daily activities;
② The enterprise management can regularly evaluate the operating results of this component to decide to allocate
resources to it and evaluate its performance;
③ The enterprise can obtain the financial status, operating results and cash flow of this component of accounting
information.
5. Taxes
5.1 Main taxes categories and tax rates
Tax category Tax base Tax rate
Value added tax Output tax deducted input tax that can be credited 13%，9%、6%、5%、Tax exemption
against the output tax
Urban maintenance and construction Turnover taxes already paid 7%
tax
Enterprise income tax Taxable income Tax exemption、25%、8%
Income tax rate of taxpayers adopting different income tax rate
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 ocean refrigeration co. LTD Aquatic products processing part is tax exemption; refrigeration part is
25%.
Shandong Zhonglu Oceanic (Yantai) Food Co. Aquatic products processing part is tax exemption; refrigeration part is
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Name of tax enterprise Tax rate of income tax
25%.
Sino-Ocean (Qingdao) Industrial Investment Development 25%
Co., Ltd.
5.2 Significant tax incentives and approval documents
5.2.1 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-Catched 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 according to the rules of value added tax. So, the company’ revenue from the pelagic fishery is free value
added tax.
According to the "Notice on Comprehensively Implementing the Pilot Program of Replacing Business Tax with Value-
Added Tax" (No. 36 of 2016), the direct or indirect international freight forwarding services provided by taxpayers are
exempt from value added tax. The relevant sales income obtained by Shandong Zhonglu Oceanic Fisheries
Transportation Co., Ltd, a subsidiary of the Company, is exempt from value added tax.
5.2.2 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%.
6. Notes to the consolidated financial statements
6.1 Cash at bank and on hand
Item Balance as at 31/12/2021 Balance as at 1/1/2021
Cash on hand 1,975,275.82 2,817,043.32
Cash at bank 207,674,030.17 252,918,568.61
Other monetary funds 924,476.50 76,370.28
Total 210,573,782.49 255,811,982.21
Including: the total balance deposited overseas 87,451,424.69 54,297,720.99
The total amount of funds that have restrictions on use 924,476.50 76,370.28
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山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Item Balance as at 31/12/2021 Balance as at 1/1/2021
due to mortgages, pledges, or freezes
Note: The other monetary funds of RMB 924,476.50 is the credit guarantee of the letter of guarantee; the deposits outside the territory
of China are the cash and bank deposits of the overseas subsidiaries.
6.2 Financial assets held for trading
6.2.1 Classification of trading financial assets
Item Balance as at 31/12/2021 Balance as at 1/1/2021
Financial assets classified upon initial recognition as at fair - 5,000,000.00
value through profit or loss
Including: Structured Deposit - 5,000,000.00
Total - 5,000,000.00
6.3 Accounts receivable
6.3.1 Accounts receivable by aging
Aging Balance as at 31/12/2021
Within 6 months 38,283,321.00
6 months-1 years 737,361.46
1-2 years 1,043,422.97
2-3 years 86,821.17
More than 3 years 6,496,689.70
Total 46,647,616.30
6.3.2 Accounts receivable by provision method for allowance credit losses
Item As at 31/12/2021
Book Balance PCT (%) Allowance for PCT (%) Carrying amount
credit losses
Individually assessment subject to - - - - -
allowance for credit losses
Grouping assessment subject to 46,647,616.30 100.00% 8,841,029.39 18.95% 37,806,586.91
allowance for credit losses
Total 46,647,616.30 100.00% 8,841,029.39 18.95% 37,806,586.91
(Continued)
Item As at 1/1/2021
Book Balance PCT Allowance for PCT Carrying amount
credit losses
Individually assessment subject to - - - - -
allowance for credit losses
Grouping assessment subject to 76,675,259.70 100.00% 10,412,229.89 13.58% 66,263,029.81
allowance for credit losses
Total 76,675,259.70 100.00% 10,412,229.89 13.58% 66,263,029.81
Accounts receivable that are assessed allowance for credit losses on grouping basis
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Item As at 31/12/2021
Balance Allowance for PCT
credit losses
Within 6 months 38,283,321.00 1,914,166.05 5.00%
6 months-1 years 737,361.46 73,736.15 10.00%
1-2 years 1,043,422.97 313,026.89 30.00%
2-3 years 86,821.17 43,410.59 50.00%
More than 3 years 6,496,689.70 6,496,689.71 100.00%
Total 46,647,616.30 8,841,029.39
(Continued)
Item As at 1/1/2021
Balance Allowance for PCT
credit losses
Within 6 months 65,721,506.51 3,286,075.32 5.00%
6 months-1 years 2,974,381.80 297,438.18 10.00%
1-2 years 1,403,197.09 420,959.13 30.00%
2-3 years 336,834.09 168,417.05 50.00%
More than 3 years 6,239,340.21 6,239,340.21 100.00%
Total 76,675,259.70 10,412,229.89
6.3.3 Allowance for credit losses
Item As at 1/1/2021 Amount of change in the current period As at 31/12/2021
Provision Recovery or Write off Exchange impact
reversal
Grouping 10,412,229.89 -1,558,165.28 - - -13,035.22 8,841,029.39
assessment
subject to
allowance for
credit losses
6.3.4 Accounts receivable due from the top five debtors of the Company are as follows:
Company name Balance as at Percentage of Balance of
31/12/2021 total accounts allowance for
receivable credit losses as at
31/12/2021
HAIXINSHEN CO.,LTD 5,878,184.30 12.60% 293,909.22
PACIFIC PANDA.INC 3,600,962.12 7.72% 3,600,962.12
W.E.C.F. CO..LTD. 2,947,491.72 6.32% 147,374.59
OOO ICEBERG OTKRYTOE 2,685,738.12 5.76% 134,286.91
LUNDS FISHERIES,INC 2,484,534.61 5.33% 124,226.73
Total 17,596,910.87 37.73% 4,300,759.57
6.4 Prepayments
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6.4.1 Aging analysis of prepayments
Aging As at 31/12/2021 As at 1/1/2021
Balance PCT Balance PCT
Within 1 year 18,422,346.91 98.62% 16,281,043.30 95.05%
1-2 years 31,878.50 0.17% 781,797.59 4.56%
2-3 years 229,525.20 1.21% - -
More than 3 years - - 65,249.00 0.39%
Total 18,683,750.61 100.00% 17,128,089.89 100.00%
6.4.2 The top five prepayments are as follows
Company name Relationship with Balance as at Percentage of Prepayment time Unbilled Reason
the company 31/12/2021 total prepaymen
China Oceanographic Fisheries unrelated party 9,359,643.19 50.10% 2021 fishing certificate
Association（Note）
KIRIBATI GOVERNMENT NO.1 unrelated party 2,525,351.01 13.52% 2021 Billing period not
yet reached
MERCHANT UNION S.L unrelated party 1,219,334.07 6.53% 2021 Billing period not
yet reached
DONGYISHIPPING ENTERPRISE unrelated party 983,272.76 5.26% 2021 Billing period not
PRIVATE LIMITED yet reached
Beijing Leading Holiday International unrelated party 472,382.00 2.53% 2021 Billing period not
Travel Service Co., Ltd. yet reached
Total 14,559,983.03 77.94%
Note: The prepayment to China Oceanographic Fisheries Association is the prepayment for the fishing certificate, of
which 2,260,568.00 yuan is the amortization balance of the certificate, and 7,099,075.19 yuan is the prepayment for the
2022 fishing certificate. As of December 31, 2021, the certificate has not been processed.
6.5 Other receivables
Item Balance as at 31/12/2021 Balance as at 1/1/2021
Interest receivable - -
Dividends receivable - -
Other receivables 3,596,759.88 2,293,236.85
Total 3,596,759.88 2,293,236.85
6.5.1 Other receivables
6.5.1.1 Aging of other receivables
Aging As at 31/12/2021
Within 6 months 2,913,142.64
6 months-1 years 386,976.02
1-2 years 644,679.67
2-3 years 59,440.52
More than 3 years 4,386,796.79
Total 8,391,035.64
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6.5.1.2 Category of other receivables by nature
Nature Balance as at 31/12/2021 Balance as at 1/1/2021
Guarantee deposit 974,758.29 709,740.53
Current account and others 7,416,277.35 6,463,589.06
Total 8,391,035.64 7,173,329.59
6.5.1.3 The provision of allowance for credit losses
The allowance for credit losses Stage one Stage two Stage three Total
12-month ECL Lifetime ECL Lifetime ECL
(credit- (credit-impaired)
unimpaired)
Beginning balance 429,704.55 - 4,450,388.19 4,880,092.74
Revaluation of beginning balance 429,704.55 - 4,450,388.19 4,880,092.74
Provision -18,159.80 - -54,739.86 -72,899.66
Reversal - - - -
Charge-off - - - -
Write-off - - 8,851.52 8,851.52
Exchange impact -4,065.80 - - -4,065.80
Total 407,478.95 - 4,386,796.81 4,794,275.76
6.5.1.4 Allowance for credit losses
Item As at 1/1/2021 Amount of change in the current period As at 31/12/2021
Provision Recovery or Write off Exchange impact
reversal
Allowance for credit 4,880,092.74 -72,899.66 - 8,851.52 -4,065.80 4,794,275.76
losses of other
receivables
6.5.1.5 The written-off of other receivables during the year
Item Write-off amount
Other receivables actually written off 8,851.52
6.5.1.6 Other receivables due from the top five debtors are as follows:
Company name Nature of Balance as at Aging Percentage in total Balance of
payment 31/12/2021 other receivables allowance for
credit losses as at
31/12/2021
Liye Ultra-low Temperature Claims 850,525.55 Within 6 months 10.14% 42,526.28
International Logistics (Dalian) Co.,
Ltd.
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Company name Nature of Balance as at Aging Percentage in total Balance of
payment 31/12/2021 other receivables allowance for
credit losses as at
31/12/2021
Shandong Tianzong Culture Media Margin 299,000.00 1-2 years 3.56% 89,700.00
Co., Ltd.
Bak Seong Ho employee loan 261,450.94 Within 6 months 3.12% 13,072.55
Wang Tingle employee loan 250,328.45 More than 3 years 2.98% 250,328.45
China Merchants Bank Co., Ltd. Margin 245,100.00 Within 2 years 2.92% 71,505.00
Qingdao Branch
Total 1,906,404.94 22.72% 467,132.28
6.6 Inventories
6.6.1 Inventories by categories
Item As at 31/12/2021 As at 1/1/2021
Book balance Provision for Carrying amount Book balance Provision for Carrying amount
diminution in diminution in
value or value or
impairment impairment
provision for costs provision for costs
to fulfil to fulfil
contracts contracts
Raw materials 82,776,760.71 1,219,147.19 81,557,613.52 98,361,885.77 974,526.46 97,387,359.31
Low-value 635,909.00 - 635,909.00 681,559.16 - 681,559.16
consumables
Commodities 195,084,739.68 5,310,785.27 189,773,954.41 238,760,203.86 2,730,462.49 236,029,741.37
Revolving materials 714,207.27 - 714,207.27 1,131,389.24 - 1,131,389.24
Costs to fulfil 668,796.62 - 668,796.62 - - -
contracts
Inventories in 4,714,393.22 969,516.29 3,744,876.93 3,655,579.98 - 3,655,579.98
transit
Total 284,594,806.50 7,499,448.75 277,095,357.75 342,590,618.01 3,704,988.95 338,885,629.06
6.6.2 Provision for diminution in value of inventories and impairment of costs to fulfil contracts
Item As at Additions during the year Reductions during the year As at 31/12/2021
1/1/2021 Provision Other Reversal or write- Exchange impact
down
Raw materials 974,526.46 1,250,669.68 - 1,006,048.95 - 1,219,147.19
Commodities 2,730,462.49 4,935,908.16 - 2,333,768.19 21,817.19 5,310,785.27
Inventories in - 980,860.29 - - 11,344.00 969,516.29
transit
Total 3,704,988.95 7,167,438.13 - 3,339,817.14 33,161.19 7,499,448.75
6.7 Other current assets
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Item As at 31/12/2021 As at 1/1/2021
Input tax to be deducted 20,462,827.93 14,353,098.17
Prepaid income tax 104,950.69 167,345.60
Prepaid other taxes 65,813.61 47,503.05
Total 20,633,592.23 14,567,946.82
6.8 Investment property
6.8.1Investment property measured by cost
Item Buildings Total
Cost
Balance as at 1/1/2021 51,308,578.35 51,308,578.35
Additions - -
Including: Purchase - -
Inventory\fixed assets\construction in progress transfer - -
Business combination increase - -
Reductions - -
Including: Disposition - -
Other transfer out - -
Balance as at 31/12/2021 51,308,578.35 51,308,578.35
Accumulated depreciation or amortization
Balance as at 1/1/2021 18,987,056.86 18,987,056.86
Additions 1,326,076.68 1,326,076.68
Including: Depreciation or amortization 1,326,076.68 1,326,076.68
Reductions - -
Including: Disposition - -
Other transfer out - -
Balance as at 31/12/2021 20,313,133.54 20,313,133.54
Provision for impairment
Balance as at 1/1/2021 886,512.06 886,512.06
Additions - -
Including: provision - -
Reductions - -
Including: Disposition - -
Other transfer out - -
Balance as at 31/12/2021 886,512.06 886,512.06
Carrying amount
As at 31/12/2021 30,108,932.75 30,108,932.75
As at 1/1/2021 31,435,009.43 31,435,009.43
6.9 Fixed assets
Category Balance as at 31/12/2021 Balance as at 1/1/2021
Fixed assets 476,894,877.56 506,290,822.70
Disposal of fixed assets - -
Total 476,894,877.56 506,290,822.70
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6.9.1 Movement of fixed assets
Item Buildings Boats & nets Machinery & Transportation Furniture and office Total
equipment vehicles equipment
Cost
Balance as at 1/1/2021 118,596,220.58 672,849,533.87 56,325,734.17 8,610,783.16 10,323,462.65 866,705,734.43
Additions 4,558,366.99 14,821,299.04 5,783,115.26 1,606,403.72 995,727.20 27,764,912.21
Including: Purchase 1,146,788.99 14,821,299.04 2,180,507.65 1,606,403.72 995,727.20 20,750,726.60
Transfer from 3,411,578.00 - 3,602,607.61 - - 7,014,185.61
construction in process
Reductions 23,499.00 51,698,374.96 16,746.70 1,005,870.95 236,652.80 52,981,144.41
Including: Disposals or - 44,637,982.67 14,465.00 915,014.65 223,383.25 45,790,845.57
scrap
Impact of 23,499.00 7,060,392.29 2,281.70 90,856.30 13,269.55 7,190,298.84
exchange rate fluctuations
Balance as at 31/12/2021 123,131,088.57 635,972,457.95 62,092,102.73 9,211,315.93 11,082,537.05 841,489,502.23
Accumulated depreciation
Balance as at 1/1/2021 35,218,001.62 285,673,593.58 25,567,791.76 5,971,054.03 7,826,897.24 360,257,338.23
Additions 2,614,160.45 42,224,374.21 3,643,919.83 1,068,725.51 1,273,931.38 50,825,111.38
Including: Provision 2,614,160.45 42,224,374.21 3,643,919.83 1,068,725.51 1,273,931.38 50,825,111.38
Reductions 2,790.31 45,519,809.20 13,325.96 896,098.70 213,374.27 46,645,398.44
Including: Disposals or - 43,246,882.53 12,050.20 836,540.43 203,655.32 44,299,128.48
scrap
Impact of 2,790.31 2,272,926.67 1,275.76 59,558.27 9,718.95 2,346,269.96
exchange rate fluctuations
Balance as at 31/12/2021 37,829,371.76 282,378,158.59 29,198,385.63 6,143,680.84 8,887,454.35 364,437,051.17
Provision for impairment
Balance as at 1/1/2021 - 157,573.50 - - - 157,573.50
Additions - - - - - -
Reductions - - - - - -
Balance as at 31/12/2021 - 157,573.50 - - - 157,573.50
Carrying amount
As at 31/12/2021 85,301,716.81 353,436,725.86 32,893,717.10 3,067,635.09 2,195,082.70 476,894,877.56
As at 1/1/2021 83,378,218.96 387,018,366.79 30,757,942.41 2,639,729.13 2,496,565.41 506,290,822.70
Note: The original value of fixed assets that has been fully depreciated but still in use is RMB 61,522,257.89 as at
December 31 2021.
① Temporarily idle fixed assets at 31/12/2021
Item Cost Accumulated Provision for Carrying amount Remark
depreciation impairment
Machinery & equipment 2,179,020.00 1,880,495.24 - 298,524.76 -
② Fixed assets for which the certificate of title has not been completed
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 54,223,132.40,book balance is RMB31,807,244.79 (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.
6.10 Construction in process
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Category Balance as at 31/12/2021 Balance as at 1/1/2021
Constructed in process 165,273,027.75 3,705,815.70
Construction materials - -
Total 165,273,027.75 3,705,815.70
6.10.1Construction in process
Item As at 31/12/2021 As at 1/1/2021
Book balance Provision for Carrying amount Book balance Provision for Carrying amount
impairment impairment
The Atlantic Seine 4,077,658.55 4,077,658.55 - 4,077,658.55 4,077,658.55 -
project
Workshop flame - - - 948,526.58 - 948,526.58
retardant
renovation project
Ultra-low - - - 2,757,289.12 - 2,757,289.12
temperature cold
storage renovation
project
Lu Qing Yuan Yu 7,112,575.38 - 7,112,575.38 - - -
161 Squid Fishing
Boat
Lu Qing Yuan Yu 7,346,386.83 - 7,346,386.83 - - -
162 Squid Fishing
Boat
Tyrone 7 Seine 25,875,000.00 - 25,875,000.00 - - -
Boat
Tyrone 9 Seine 25,875,000.00 - 25,875,000.00 - - -
Boat
Sea Future cargo 32,341,459.60 - 32,341,459.60 - - -
ship
Office building 66,722,605.94 - 66,722,605.94 - - -
Total 169,350,686.30 4,077,658.55 165,273,027.75 7,783,474.25 4,077,658.55 3,705,815.70
① Movement of significant construction in progress
Project name Budget As at 1/1/2021 Additions Transfer to fixed Other reductions Percentage of
assets accumulated
input over budget
Tyrone 7 Seine 207,000,000.00 - 25,875,000.00 - - 12.50%
Boat
Tyrone 9 Seine 207,000,000.00 - 25,875,000.00 - - 12.50%
Boat
Sea Future cargo 38,000,000.00 - 32,341,459.60 - - 85.11%
ship
Office building 79,000,000.00 - 66,722,605.94 - - 84.46%
Total 531,000,000.00 - 150,814,065.54 - -
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(Continued)
Project name Construction Accumulated Including: Capitalization rate Sources of funds Balance as at
progress (%) capitalized interest Interest capitalized in current period 31/12/2021
in current period
Tyrone 7 Seine 12.50% 204,512.50 204,512.50 1.88% loan、self-raised 25,875,000.00
Boat
Tyrone 9 Seine 12.50% 204,512.50 204,512.50 1.88% loan、self-raised 25,875,000.00
Boat
SEA FUTURE 85.11% - - - self-raised 32,341,459.60
Office building 84.46% - - - self-raised 66,722,605.94
Total 409,025.00 409,025.00 150,814,065.54
6.11 Right-of-use asset
Item Buildings Total
Cost
Balance as at 1/1/2021 5,498,108.96 5,498,108.96
Additions - -
Including: New leases - -
Reductions - -
Balance as at 31/12/2021 5,498,108.96 5,498,108.96
Accumulated depreciation
Balance as at 1/1/2021 - -
Additions 3,148,617.28 3,148,617.28
Including: Provision 3,148,617.28 3,148,617.28
Reductions 5,452.18 5,452.18
Including: Exchange impact 5,452.18 5,452.18
Balance as at 31/12/2021 3,143,165.10 3,143,165.10
Provision for impairment
Balance as at 1/1/2021 - -
Additions - -
Reductions - -
Balance as at 31/12/2021 - -
Carrying amount
As at 31/12/2021 2,354,943.86 2,354,943.86
As at 1/1/2021 5,498,108.96 5,498,108.96
6.12 Intangible assets
Item Land use rights Computer Total
software
Cost
Balance as at 1/1/2021 17,154,729.00 2,287,236.24 19,441,965.24
Additions - 44,247.79 44,247.79
Including: Purchase - 44,247.79 44,247.79
Reductions - - -
Including: Disposition - - -
Balance as at 31/12/2021 17,154,729.00 2,331,484.03 19,486,213.03
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Item Land use rights Computer Total
software
Accumulated depreciation
Balance as at 1/1/2021 5,605,382.81 1,024,702.88 6,630,085.69
Additions 383,870.16 361,859.46 745,729.62
Including: Provision 383,870.16 361,859.46 745,729.62
Reductions - - -
Including: Disposition - - -
Balance as at 31/12/2021 5,989,252.97 1,386,562.34 7,375,815.31
Provision for impairment
Balance as at 1/1/2021 - - -
Additions - - -
Including: Provision - - -
Reductions - - -
Including: Disposition - - -
Balance as at 31/12/2021 - - -
Carrying amount
As at 31/12/2021 11,165,476.03 944,921.69 12,110,397.72
As at 1/1/2021 11,549,346.19 1,262,533.36 12,811,879.55
6.13 Long-term deferred expenses
Item Balance as at Additions Amortization Reductions Balance as at
1/1/2021 31/12/2021
Office renovation costs 317,044.17 82,349.24 177,916.67 738.74 220,738.00
6.14 Deferred tax assets and deferred tax liabilities
6.14.1 Deferred tax assets before offsetting
Item As at 31/12/2021 As at 1/1/2021
Deductible Deferred tax Deductible Deferred tax
temporary assets temporary assets
differences differences
Allowance for credit losses 891,919.22 222,979.80 921,549.53 230,387.38
Deferred income 5,687,864.64 1,421,966.16 6,056,998.38 1,514,249.60
Sub-total 6,579,783.86 1,644,945.96 6,978,547.91 1,744,636.98
6.14.2 Deferred tax liabilities before offsetting
Item As at 31/12/2021 As at 1/1/2021
Taxable Deferred tax Taxable temporary Deferred tax
temporary liabilities differences liabilities
differences
Accelerated depreciation of fixed assets before tax 11,110,357.81 2,777,589.45 5,807,004.90 1,451,751.23
deduction
6.14.3 The items not recognised deferred tax assets
Item Balance as at 31/12/2021 Balance as at 1/1/2021
Deductible temporary differences -Allowance for credit losses 12,743,385.93 14,370,773.10
Deductible temporary differences -Provision for inventories 7,499,448.75 3,704,988.95
153
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Item Balance as at 31/12/2021 Balance as at 1/1/2021
Deductible temporary differences -Deductible losses 16,328,215.40 -
Deductible temporary differences -Provision for impairment of 4,077,658.55 4,077,658.55
construction in progress
Total 40,648,708.63 22,153,420.60
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.
6.15 Other non-current assets
Item Balance as at 31/12/2021 Balance as at 1/1/2021
Book balance Provision for Carrying amount Book balance Provision for Carrying
impairment impairment amount
Prepayment for 52,050,000.00 - 52,050,000.00 2,000,000.00 - 2,000,000.00
land
Prepayment for 91,087,267.24 - 91,087,267.24 719,397.06 - 719,397.06
construction in
process
Total 143,137,267.24 - 143,137,267.24 2,719,397.06 - 2,719,397.06
6.16 Short-term loans
Item Balance as at 31/12/2021 Balance as at 1/1/2021
Collateral loan 10,013,291.67 28,072,326.86
Loans on credit - 13,195,948.64
Total 10,013,291.67 41,268,275.50
Note: the current loan includes Interest payable of RMB 13,291.67.
Loan collateral in 2021, (1) Smoke room title card no. 102954, no. 102984, No. 102985, No. 102986, No. 106566, NO.
K028075 property, the book balance is RMB30,992,971.16; (2) Yanguo (2002) Land use right No. 1047, book balance
is RMB 5,031,624.56.
6.17 Accounts payable
Item Balance as at 31/12/2021 Balance as at 1/1/2021
Within 1 year(including 1 year) 45,582,797.03 65,231,961.41
More than 1 year 4,538,598.01 4,665,877.78
Total 50,121,395.04 69,897,839.19
6.18 Contract liabilities
Item Balance as at 31/12/2021 Balance as at 1/1/2021
Advance payment for goods 13,220,675.60 12,453,619.79
6.19 Employee benefits payable
6.19.1 Movement of employee benefits payable
154
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Item As at 1/1/2021 Increase Decrease As at 31/12/2021
Short-term employee benefits 39,012,993.89 156,377,402.89 152,634,205.96 42,756,190.82
Post-employment benefits—defined contribution plans 2,806,413.68 11,207,692.59 11,397,489.95 2,616,616.32
Termination benefits 33,227.17 1,247,153.80 1,249,802.08 30,578.89
Other benefits due within one year 9,714.32 26,247.91 28,637.20 7,325.03
Total 41,862,349.06 168,858,497.19 165,310,135.19 45,410,711.06
6.19.2 Details of the short-term employee benefits
Item As at 1/1/2021 Accrued Paid As at 31/12/2021
Salaries, bonus, and allowances 37,455,202.41 142,144,455.61 138,286,082.96 41,313,575.06
Staff welfare - 4,095,575.97 4,095,575.97 -
Social insurances - 4,843,202.25 4,843,202.25 -
Including: Medical insurance - 4,594,662.74 4,594,662.74 -
Work injury insurance - 248,539.51 248,539.51 -
Maternity insurance - - - -
Housing Fund - 4,989,011.89 4,989,011.89 -
Union funds and employee education fee 1,557,791.48 305,157.17 420,332.89 1,442,615.76
Short-term paid absences - - - -
Short-term profit sharing plan - - - -
Total 39,012,993.89 156,377,402.89 152,634,205.96 42,756,190.82
6.19.3 Defined contribution plans
Item As at 1/1/2021 Accrued Paid As at 31/12/2021
Primary endowment insurance - 8,497,551.82 8,497,551.82 -
Unemployment insurance - 376,628.63 376,628.63 -
Pension insurance 2,806,413.68 2,164,239.48 2,354,036.84 2,616,616.32
Social security and subsidies for retired workers - 169,272.66 169,272.66 -
Total 2,806,413.68 11,207,692.59 11,397,489.95 2,616,616.32
6.20 Taxes and surcharges payable
Category Balance as at 31/12/2021 Balance as at 1/1/2021
Value added tax 201,859.84 150,746.28
Enterprise income tax 2,149,052.53 508,778.23
Urban maintenance and construction tax 8,435.55 7,404.84
Estate tax 242,944.78 190,068.25
Land use tax 121,326.11 105,674.51
Individual income tax 329,417.86 633,026.16
Educational surtax 6,025.38 5,289.17
Withholding tax 1,098,761.23 1,096,759.86
Other taxes and surcharges 101,048.23 127,666.48
Total 4,258,871.51 2,825,413.78
6.21 Other payables
Item Balance as at 31/12/2021 Balance as at 1/1/2021
Interest payable - -
155
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Item Balance as at 31/12/2021 Balance as at 1/1/2021
Dividends payable - -
Other payables 9,774,065.87 8,606,070.36
Total 9,774,065.87 8,606,070.36
6.21.1Other payables
Item Balance as at 31/12/2021 Balance as at 1/1/2021
Deposit 2,591,521.16 2,620,321.34
Staff cost 1,922,570.29 1,072,824.55
Others 5,259,974.42 4,912,924.47
Total 9,774,065.87 8,606,070.36
6.22 Non-current assets due within one year
Item Balance as at 31/12/2021 Balance as at 1/1/2021
Long-term loans due within one year 3,200,000.00 -
Lease liabilities due within one year 1,709,314.65 3,033,733.61
Total 4,909,314.65 3,033,733.61
6.23 Other current liabilities
Item Balance as at 31/12/2021 Balance as at 1/1/2021
Advance collection of sales tax 14,100.55 108,248.84
6.24 Long-term loans
Long-term loans by category
Item Balance as at 31/12/2021 Balance as at 1/1/2021
Loans on credit 7,612,534.71 -
Guarantee and Collateral loans 141,780,997.66 -
Total 149,393,532.37 -
Note 1: The long-term loan balance includes accrued interest of RMB 263,340.37.
Note 2: The guarantor of the guarantee and the mortgage loan is Shandong Zhonglu Ocean Ocean (Yantai) Food Co.,
Ltd., and the collateral is the property of Shandong Zhonglu Aquatic Shipping Co., Ltd., and the power certificate
number is ,The book value is RMB 128,089.40 , and Shandong Province
Zhonglu Ocean Fishery Co., Ltd. newly purchased an office building, and the title certificate number is ,The book value is RMB 66,722,605.94, the property is currently
in the state of advance notice registration, and no mortgage procedures have been processed as of December 31, 2021 .
6.25 Lease liabilities
Item Balance as at 31/12/2021 Balance as at 1/1/2021
Lease liabilities - 1,709,314.65
6.26 Long-term employee benefits payable
156
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Item Balance as at 31/12/2021 Balance as at 1/1/2021
Post employment benefits—defined benefits plans 384,340.48 414,919.37
Other long-term benefits 641,882.10 828,533.56
Total 1,026,222.58 1,243,452.93
6.27 Deferred income
Item Balance as at Increase Decrease Balance as at Reason for the
1/1/2021 31/12/2021 deferred income
Government grants 14,488,797.24 445,900.00 1,243,488.17 13,691,209.07 Government
grants related
asset
Deferred income from government grants
Item Balance as at Increase Recorded in non- recorded in other
1/1/2021 operating income income for
for current period current period
Construction special fund 8,967,252.60 - - 1,037,504.20
Subsidy of boat manufacture 5,521,544.64 445,900.00 - 205,983.97
Total 14,488,797.24 445,900.00 - 1,243,488.17
(Continued)
Item Recorded in offset Other changes Balance as at Related to
cost for current 31/12/2021 assets/income
period
Construction special fund - - 7,929,748.40 Assets
Subsidy of boat manufacture - - 5,761,460.67 Assets
Total - - 13,691,209.07
6.28 Share capital
Item Balance as at Movement Balance as at
1/1/2021 Issuance of Bonus shares Capital reserve Others sub-total 31/12/2021
new share transfer in
Total shares 266,071,320.00 - - - - - 266,071,320.00
6.29 Capital reserve
Item Balance as at Increase Decrease Balance as at
1/1/2021 31/12/2021
Share premiums 189,093,492.79 - - 189,093,492.79
Other capital reserve 94,961,504.96 - - 94,961,504.96
Total 284,054,997.75 - - 284,054,997.75
6.30 Other comprehensive income
157
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Item Balance as at Year ended 31/12/2021
1/1/2021(A) Amount before Less: OCI in prior Less: OCI in prior
tax periods transfer in periods carried
profit or loss for forward to
the current period retained earnings
OCI items which will be reclassified subsequently to profit -12,783,539.13 -6,886,431.99 - -
or loss
Translation differences from translation of foreign -12,783,539.13 -6,886,431.99 - -
currency financial statements
Total of OCI -12,783,539.13 -6,886,431.99 - -
(Continued)
Item Year ended 31/12/2021 Balance as at
Less: income tax Amount after tax Amount after tax 31/12/2021
attributable to the attributable to (C)=(A)+(B
Company(B) minority interests
OCI items which will be reclassified subsequently to profit - -5,472,662.85 -1,413,769.14 -18,256,201.98
or loss
Translation differences from translation of foreign - -5,472,662.85 -1,413,769.14 -18,256,201.98
currency financial statements
Total of OCI - -5,472,662.85 -1,413,769.14 -18,256,201.98
6.31 Special reserve
Item Balance as at Increase Decrease Balance as at
1/1/2021 31/12/2021
Safety costs - 954,700.51 721,917.51 232,783.00
6.32 Surplus reserve
Item Balance as at Increase Decrease Balance as at
1/1/2021 31/12/2021
Statutory surplus reserve 21,908,064.19 - - 21,908,064.19
6.33 Undistributed profit
Item Year ended Year ended Appropriation proportion
31/12/2021 31/12/2020
Retained earnings As at 1/1/2021 before adjustment 343,997,929.71 314,460,431.58 -
The total adjustment of retained earnings As at 1/1/2021 - - -
(Increase+, decrease-)
Retained earnings As at 1/1/2021 after adjustment 343,997,929.71 314,460,431.58 -
Add: Net profit attributable to the Company during the 35,526,982.23 29,537,498.13 -
year
Less: Appropriation of statutory surplus reserve - - -
Withdrawal of discretionary surplus reserve - - -
Extract general risk provision - - -
158
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Item Year ended Year ended Appropriation proportion
31/12/2021 31/12/2020
Common stock dividends payable - - -
Common stock dividends converted to share capital - - -
Retained earnings as at 31/12/2021 379,524,911.94 343,997,929.71
6.34 Operating income and operating costs
6.34.1 Operating income and operating costs
Item Year ended 31/12/2021 Year ended 31/12/2020
Income Costs Income Costs
Primary operating business 925,478,546.47 847,799,212.70 957,971,299.47 876,609,493.00
Other operating business 8,805,856.74 1,788,918.05 8,241,720.19 1,807,861.27
Total 934,284,403.21 849,588,130.75 966,213,019.66 878,417,354.27
6.34.2 Status of income from contracts
① Operating income and operating costs by recognition timing
Revenue recognition timing Sales income Agent Processing Refrigeration Other operating
income income income
At a point of time 818,907,933.44 4,064,189.24 - 4,554,606.75
Over a period of time - - 10,172,122.36 -
Total 818,907,933.44 4,064,189.24 10,172,122.36 4,554,606.75
② Income adapted to the lease standard
Item Vessels leasing House rental and others
Primary operating business 92,334,301.43 -
Other operating business - 4,251,249.99
Total 92,334,301.43 4,251,249.99
6.35 Taxes and surcharges
Item Year ended 31/12/2021 Year ended 31/12/2020
Urban maintenance and construction tax 20,427.36 172,674.56
Educational surcharge 8,730.91 73,964.81
Local educational surcharge 5,820.63 49,309.89
Local water conservancy construction fund -304.98 12,327.47
Property tax 1,247,826.59 1,285,586.41
Land use tax 542,585.28 421,428.69
Stamp duty 290,074.03 275,627.46
Vehicle and vessel tax 55,766.26 33,167.68
Total 2,170,926.08 2,324,086.97
159
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6.36 Selling and distribution expenses
Item Year ended 31/12/2021 Year ended 31/12/2020
Employee compensation expenditure 2,166,098.09 2,197,949.48
Business promotion fees 725,851.68 585,425.19
Travelling expenses 74,793.63 165,925.16
Depreciation charges 123,919.04 73,027.96
Depreciation of right-of-use asset 90,777.05 -
Communication expenses 31,359.17 24,060.25
Others 335,821.30 623,371.66
Total 3,548,619.96 3,669,759.70
6.37General and administrative expenses
Item Year ended 31/12/2021 Year ended 31/12/2020
Employee compensation expenditure 45,810,749.61 34,614,101.99
Depreciation and amortization charges 1,928,160.24 1,869,160.28
Depreciation of Right-of-use assets 3,057,840.23 -
Travelling expenses 1,235,873.02 725,668.44
Business entertainment 562,059.13 463,172.36
Vehicle expenses 888,939.29 829,720.16
Agent service fees 1,211,002.54 1,180,503.10
Office expenses 4,441,038.20 4,886,702.18
Water and electricity expenses 1,309,137.24 1,157,511.99
Others 4,033,520.85 3,750,281.36
Total 64,478,320.35 49,476,821.86
6.38 Research and development expenses
Item Year ended 31/12/2021 Year ended 31/12/2020
Employee compensation expenditure 738,409.64 -
Materials 21,089.10 17,924.28
Others 5,957.96 40,000.00
Total 765,456.70 57,924.28
6.39 Finance expenses
Item Year ended 31/12/2021 Year ended 31/12/2020
Interest expenses 1,548,600.65 2,264,468.56
Less: interest income 569,224.71 666,925.40
Losses or gains from foreign exchange 10,378,601.88 20,054,225.77
Finance charges 884,531.16 1,145,378.30
Interest expenses on lease liabilities 102,193.34 -
Others 129,811.76 164,075.46
Total 12,474,514.08 22,961,222.69
6.40 Other income
160
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Item Year ended 31/12/2021 Year ended 31/12/2020
Subsidy fund for improving international performance capacity 38,431,963.86 22,435,200.00
（Note 1）
Transportation insurance subsidy 165,500.00 -
Financial shipbuilding subsidy fund 205,983.97 199,376.00
Financial subsidy for Special Construction funds in Blue Economic 738,267.48 738,267.48
Zone（Note 2）
Special fund for cold chain logistics 299,236.72 338,039.76
Subsidy for the renovation of fishing boat equipment（Note 3） 983,373.00 -
Return of individual income tax service charge 24,855.48 51,138.63
Steady post subsidies 36,737.85 285,425.27
Work-for-training subsidy 18,000.00 -
Measurement Equipment subsidy 7,500.00 -
Research subsidies from the Institute of Oceanology - 180,000.00
Intellectual property rights subsidy funds 5,000.00 10,000.00
Total 40,916,418.36 24,237,447.14
Note 1: The company received RMB 38,431,963.86 government grants for improving international performance
capacity 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 over the asset's estimated useful period
on a systematic basis. Other income amounts to 738,267.48 in 2021.
Note 3:This year, the company obtained subsidy funds of RMB 983,373.00 for the renovation and renovation of facilities
and equipment on ocean-going ships from Qingdao Ocean Development Bureau. Since the aforementioned equipment
renewal funds have been shared with the cost of related products in previous years, they are directly included in the
current profit and loss when they are received this time.
6.41 Investment income
Item Year ended 31/12/2021 Year ended 31/12/2020
Gain/(Loss) on financial assets held for trading for the current 49,972.60 15,287.67
period
Gains on debt restructuring -127,527.03 -
Total -77,554.43 15,287.67
6.42 Credit impairment losses
161
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Item Year ended 31/12/2021 Year ended 31/12/2020
Allowance for credit losses of accounts receivable 1,558,165.28 -449,391.98
Allowance for credit losses of other receivables 72,899.66 125,313.00
Total 1,631,064.94 -324,078.98
6.43 Assets impairment losses
Item Year ended 31/12/2021 Year ended 31/12/2020
Provision for diminution in value of inventory and Loss of contract -7,167,438.13 -2,613,583.91
performance costs
6.44 Gains from disposal of assets
Item Year ended 31/12/2021 Year ended 31/12/2020
Gains and losses on disposal of fixed assets 3,494,326.93 52,840.06
Note : In the current period, the subsidiary Shandong Zhonglu Aquatic Shipping Co., Ltd. disposed of the Taixing
vessel with a disposal income of RMB 3,470,553.87.
6.45 Non-operating income
Item Year ended Year ended Amount to be included in non-
31/12/2021 31/12/2020 recurring gain or loss for the year
Reparations income 884,810.25 627,280.18 884,810.25
Others - 10,131,289.21 -
Total 884,810.25 10,758,569.39 884,810.25
6.46 Non-operating expenses
Item Year ended Year ended Amount to be included in non-
31/12/2021 31/12/2020 recurring gain or loss for the year
Loss of scrapped fixed assets 49,503.75 386,058.25 49,503.75
Donating - 207,712.00 -
Others 36,832.97 64,708.74 36,832.97
Total 86,336.72 658,478.99 86,336.72
6.47 Income tax expenses
6.47.1 Details of income tax expenses
Item Year ended 31/12/2021 Year ended 31/12/2020
Current income tax 2,774,329.98 664,050.34
Deferred income tax 1,425,529.24 1,552,987.07
Total 4,199,859.22 2,217,037.41
6.47.2 Reconciliation between income tax expenses and accounting profit is as follows:
Item Year ended 31/12/2021
Profit before tax 40,853,726.49
Income tax expenses calculated at statutory/applicable tax rates 10,213,431.62
Effect of different tax rate of subsidiaries -2,288,375.83
Effect of adjustment for income tax in prior year -
162
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Item Year ended 31/12/2021
Effect of income not subject to income tax -7,866,473.44
Effect of expenses nondeductible for tax purposes -557,192.15
Effect of using deductible losses of deferred tax assets not recognised in prior periods 74,647.01
Effect of unrecognised deductible temporary differences and deductible losses in current period 4,623,822.01
Income tax expenses 4,199,859.22
6.48 Other comprehensive income
As note 30.
6.49 Notes to statement of cash flows
6.49.1 Cash received relating to other operating activities
Item Year ended 31/12/2021 Year ended 31/12/2020
Finance expenses- interest income 569,224.71 666,925.40
Government grants and others 40,153,114.89 23,598,067.00
Credit deposit - 1,929,052.36
Current account and other 900,552.70 3,519,086.04
Total 41,622,892.30 29,713,130.80
6.49.2 Cash paid related to other operating activities
Item Year ended Year ended
31/12/2021 31/12/2020
Cash payment to selling expenses 1,053,784.11 1,287,323.87
Cash payment to administrative expense 13,550,391.30 12,663,386.50
Cash payment to research and development expenses 27,047.06 57,924.28
Security deposit 884,531.16 597,417.07
Current account and other 5,947,525.52 5,999,662.55
Total 21,463,279.15 20,605,714.27
6.49.3 Cash paid related to other financing activities
Item Year ended Year ended
31/12/2021 31/12/2020
Lease payment 3,627,734.35 -
6.50 Supplement to statement of cash flows
6.50.1 Supplement to statement of cash flows
Item Year ended Year ended
31/12/2021 31/12/2020
1.Net profit adjusted to cash flows from operating activities
Net profit 36,653,867.27 38,556,814.86
Add:losses Provision for asset impairment 3,827,620.99 2,613,583.91
Credit impairment -1,631,064.94 324,078.98
163
山东省中鲁远洋渔业股份有限公司 2021 年年度报告全文
Item Year ended Year ended
31/12/2021 31/12/2020
Depreciation of fixed assets, depletion of oil and gas assets, depreciation of productive 52,151,188.06 50,780,458.83
biological assets and depreciation of investment property
Depreciation of right-of-use asset 3,148,617.28 -
Amortization of intangible assets 745,729.62 720,869.39
Amortization of long-term deferred expenses 177,916.67 334,152.83
Losses on disposal of fixed assets, intangible assets and other long-term assets ("-" for gains) -3,494,326.93 -52,840.06
Losses on write-down of fixed assets ("-" for gains） 49,503.75 -9,725,724.88
Losses from changes in fair value ("-" for gains) - -
Financial expenses ("-" for income) 4,397,806.07 10,826,454.94
Investments losses ("-" for gains) 77,554.43 -15,287.67
Decreases in the deferred tax assets ("-" for increases) 99,691.02 101,235.84
Increases in the deferred tax liabilities ("-" for decreases) 1,325,838.22 1,451,751.23
Decreases in inventories ("-" for increases) 57,995,811.51 34,244,396.75
Decreases in operating receivables ("-" for increases) 20,661,022.03 23,242,398.53
Increases in operating payables ("-" for decreases) -6,290,950.23 -40,156,632.83
Others - -
Net cash flows from operating activities 169,895,824.82 113,245,710.65
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 31/12/2021 209,649,305.99 255,735,611.93
Less: cash As at 1/1/2021 255,735,611.93 184,603,638.72
Add: cash equivalents as at 31/12/2021 - -
Less: cash equivalents as at 31/12/2021 - -
Net increase in cash and cash equivalents -46,086,305.94 71,131,973.21
6.50.2 Cash and cash equivalents
Item Balance as at Balance as at
31/12/2021 1/1/2021
1. Cash 209,649,305.99 255,735,611.93
Including: cash on hand 1,975,275.82 2,817,043.31
Unrestricted bank deposits 207,674,030.17 252,918,568.62
2.Cash equivalents - -
Bond investments due within 3 months - -
3. Cash and cash equivalents As at 1/1/2021 209,649,305.99 255,735,611.93
6.51 Ownership or using rights of assets subject to restriction
Item Carrying amount Restriction reason
as at 31/12/2021
Cash at bank and on hand 924,476.50 Marginal deposit
Fixed assets 31,121,060.56 Collateral loan
Intangible assets 5,031,624.56 Collateral loan
Construction in process 66,722,605.94 Collateral loan
Total 103,799,767.56
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6.52 Monetary items denominated in foreign currency
6.52.1 Monetary items denominated in foreign currency
Item Balance in Exchange rate Balance translated
foreign currency into RMB as at
as at 31/12/2021 31/12/2021
Cash at hand and in banks
Including: USD 15,469,531.99 6.3757 98,629,095.12
Euro 103,209.44 7.2197 745,141.16
GHS 18,752,266.28 1.0633 19,939,431.64
JPY 39,921,632.05 0.0554 2,212,257.24
XAF 20,651,000.60 0.0111 228,584.34
Accounts receivable
Including: USD 3,492,912.50 6.3757 22,269,762.24
GHS 2,595,049.26 1.0633 2,759,336.21
JPY 29,189,447.51 0.0554 1,617,533.23
Franc 187,673,483.00 0.0111 2,077,343.45
Other receivables
Including: USD 70,463.90 6.3757 449,256.69
GHS 244,241.60 1.0633 259,704.00
Accounts payable
Including: USD 2,182,678.02 6.3757 13,916,100.25
Euro 234.43 7.2197 1,692.51
XAF 911,181.91 1.0633 968,866.86
JPY 9,612,270.63 0.0554 532,663.98
XAF 74,994,511.00 0.0111 830,108.49
Other payables
Including: USD 350,654.68 6.3757 2,235,669.04
GHS 974,996.26 1.0633 1,036,721.16
Long-term borrowing
Including: USD 14,588,663.54 6.3757 93,012,942.11
6.52.2 Reporting currencies of significant foreign operating entities
Significant foreign operating entity Overseas location of Reporting Basis for
primary operation currency determination
HABITAT INTERNATIONAL CORPORATION The Republic of USD Business
Panama environment
LAIF FISHERIES COMPANY LIMITED The Republic of Ghana USD Business
environment
YAW ADDO FISHERIES COMPANY LIMITED The Republic of Ghana USD Business
environment
ZHONG GHA FOODS COMPANY LIMITED The Republic of Ghana USD Business
environment
AFRICA STAR FISHERIES LIMITED The Republic of Ghana USD Business
environment
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6.53 Government subsidies
Item amount Report project recorded in other
income for
current period
Subsidy fund for improving international performance capacity 38,431,963.86 Other income 38,431,963.86
Transportation insurance subsidy 165,500.00 Other income 165,500.00
Financial shipbuilding subsidy fund 205,983.97 Deferred income 205,983.97
Financial subsidy for Special Construction funds in Blue Economic Zone 738,267.48 Deferred income 738,267.48
（Note 2）
Special fund for cold chain logistics 299,236.72 Deferred income 299,236.72
Subsidy for the renovation of fishing boat equipment（Note 3） 983,373.00 Other income 983,373.00
Return of individual income tax service charge 24,855.48 Other income 24,855.48
Steady post subsidies 36,737.85 Other income 36,737.85
Work-for-training subsidy 18,000.00 Other income 18,000.00
Measurement Equipment subsidy 7,500.00 Other income 7,500.00
Intellectual property rights subsidy funds 5,000.00 Other income 5,000.00
Total 40,916,418.36 40,916,418.36
7. Changes in consolidation scope
In the current period, the company newly established a subsidiary: Zhonglu Ocean (Qingdao) Industrial Investment
Development Co., Ltd., with a registered capital of USD 20.50 million, paid-in capital of USD 10.045 million, and a
shareholding ratio of 100%.
8. Interest in other entities
8.1 Interest in subsidiaries
8.1.1 Constitution of the Company
Subsidiary name Registration place Principal place of Business nature Shareholding Acquisition
business Direct Indirect method
Shandong Zhonglu Shandong Shandong Qingdao Refrigeration 100.00% Investment
Oceanic Fisheries Qingdao transportation
Transportation Co., Ltd.
Shandong Zhonglu Shandong Yantai Shandong Yantai Food processing 74.23% 25.77% Investment
Oceanic (Yantai) Food
Co., Ltd.
Shandong Zhonglu Shandong Shandong Qingdao Oceanic fishing 59.05% Investment
Haiyan Oceanic Fisheries Qingdao
Co., Ltd.
Zhonglu Oceanic Shandong Shandong Qingdao Refrigeration 51.00% 49.00% Investment
(Qingdao) Industrial Qingdao transportation
Investment Development
Co., Ltd.
HABITAT The Republic of The Republic of Refrigeration 100.00% Investment
INTERNATIONAL Panama Panama transportation
CORPORATION
LAIF FISHERIES The Republic of The Republic of Oceanic fishing Shandong Zhonglu Haiyan Investment
COMPANY LIMITED Ghana Ghana Oceanic Fisheries Co., Ltd
holds 100% shares
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Subsidiary name Registration place Principal place of Business nature Shareholding Acquisition
business Direct Indirect method
AFRICA STAR The Republic of The Republic of Oceanic fishing Shandong Zhonglu Haiyan Investment
FISHERIES LIMITED Ghana Ghana Oceanic Fisheries Co., Ltd
holds 100% shares
ZHONG GHA FOODS The Republic of The Republic of Oceanic fishing Shandong Zhonglu Haiyan Investment
COMPANY LIMITED Ghana Ghana Oceanic Fisheries Co., Ltd
holds 100% shares
Shandong zhonglu ocean Shandong Yantai Shandong Yantai Food processing Shandong Zhonglu Oceanic Investment
refrigeration co. LTD (Yantai) Food Co., Ltd. holds
100% shares
YAW ADDO The Republic of The Republic of Oceanic fishing Operating lease
FISHERIES Ghana Ghana
COMPANY LIMITED
8.1.2 Significant non-wholly owned subsidiary
Company name Minority Profit or loss Dividends Balance of the
shareholding attributable to the announced to minority interests
minority for the distribute to the as at 31/12/2021
current period minority
Shandong Zhonglu Haiyan Oceanic Fisheries Co., Ltd. 40.95% 1,126,885.04 - 161,988,106.39
8.1.3 Main financial information of significant non-wholly owned subsidiary
Subsidiary name As at 31/12/2021
Current assets Non-current Total assets Current liabilities Non-current Total liabilities
assets liabilities
Shandong Zhonglu 230,078,254.48 228,556,206.12 458,634,460.60 57,308,361.86 5,761,460.67 63,069,822.53
Haiyan Oceanic
Fisheries Co., Ltd.
(Continued)
Subsidiary name As at 1/1/2021
Current assets Non-current Total assets Current liabilities Non-current Total liabilities
assets liabilities
Shandong Zhonglu 283,125,223.39 224,970,520.62 508,095,744.01 106,308,989.61 5,521,544.64 111,830,534.25
Haiyan Oceanic
Fisheries Co., Ltd.
(Continued)
Subsidiary name Year ended 31/12/2021
Operating income Net profit Total Cash flows from
comprehensive operating activities
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income
Shandong Zhonglu Haiyan Oceanic Fisheries Co., Ltd. 249,754,578.58 2,751,856.01 -700,571.69 72,260,920.89
(Continued)
Subsidiary name Year ended 31/12/2020
Operating income Net profit Total Cash flows from
comprehensive operating activities
income
Shandong Zhonglu Haiyan Oceanic Fisheries Co., Ltd. 279,848,444.29 22,025,193.47 -11,426,096.92 27,621,980.21
9. 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 Ⅵ.
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 mainly derived from the dollar denominated financial assets. The amount of foreign currency
denominated financial assets to be converted into RMB is as note 6.52 the 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
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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.
10. Related parties and transactions
10.1 The parent company of the Company
Name of parent Registration Type of business Registered (%)Shareholding ratio (%)Voting rights
company place capital of the Company proportion % of the
Company
Shandong State- Shandong Investment and management, 4.5 billion 47.25% 47.25%
owned assets Jinan asset management and capital
investment Co. Ltd operation, entrustment
management, investment
consulting
Note: State-owned Assets Supervision and Administration Commission of Shandong Provincial People's Government
is the ultimate controller of the Company.
10.2 Subsidiaries of the Company
Details of subsidiaries refer to Note 8 Interest in other entities.
10.3 Other related parties
Entity name Relationship
Inspur Genersoft Software lnc. A company that has a transaction in the current period controlled by the same
parent company
Dezhou Bank Co.,LTD A company that has a transaction in the current period controlled by the same
parent company
ZhongTai XinCheng Asset Management Co., Ltd A company that has a transaction in the current period controlled by the same
parent company
10.4 Transactions with related parties
10.4.1 Leases with related parties
The company, as the lessee:
Lesser Condition of Year ended 31/12/2021 Year ended 31/12/2020 Rental
underlying assets Rental the rent the rent
ZhongTai XinCheng Asset Management Office building 195,000.00 -
Co., Ltd
10.4.2 Remuneration of key management
Item Year ended 31/12/2021 Year ended 31/12/2020
Remuneration of key management 2,225,053.60 2,727,975.00
10.4.3 Other related transactions
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10.4.3.1 Interest revenue
Item Related party Year ended 31/12/2021 Year ended 31/12/2020
Interest revenue Dezhou Bank Co.,LTD 2,274.66 1,392.99
10.5 Receivables due from and payables due to related parties
10.5.1 Other non-current assets
Item Related party Balance as at 31/12/2021 Balance as at 1/1/2021
Book balance Allowance for Book balance Allowance for
credit losses credit losses
Prepayments Inspur Genersoft Software lnc. 394,857.06 - 394,857.06 -
11. Commitments and contingencies
11.1 Commitments
None.
11.2 Contingencies
None.
12. Post balance sheet events
12.1 Significant non-adjustment events after balance sheet date
On January 11, 2022, Zhongtai Xincheng Asset Management Co., Ltd. unilaterally increased its capital by RMB 100
million to Shandong Zhonglu Ocean (Yantai) Food Co., Ltd. (hereinafter referred to as: Yantai Food), a wholly-owned
subsidiary of the Company. It owns 27.54% of Yantai Foodstuffs shares and has a significant influence on Yantai Food.
12.2 Distribution of profit
No.
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 2.16 million, relevant information shall be referred to "Attachment 6 (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.
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13.2.2 Financial information of segment reporting
Item Oceanic fishing Vessels leasing Aquatic products Others Elimination Total
processing and between branches
refrigeration
Operating income 382,802,775.17 92,334,301.43 614,442,426.72 180,087.86 -164,281,044.71 925,478,546.47
Operating cost 364,173,138.00 71,664,655.72 576,118,584.27 125,928.57 -164,283,093.86 847,799,212.70
Credit impairment 1,209,747.43 14,008.32 466,622.95 -59,313.76 - 1,631,064.94
losses
Impairment of -3,138,247.15 - -4,024,940.30 -4,250.68 - -7,167,438.13
assets
Depreciation and 36,035,069.88 9,098,675.03 7,702,289.14 3,387,417.58 - 56,223,451.63
amortization
Profit before tax 26,426,691.14 14,880,398.21 24,547,768.95 -25,001,131.81 - 40,853,726.49
Income tax - 1,476,541.19 2,723,318.03 - - 4,199,859.22
expenses
Net profit 26,426,691.14 13,403,857.02 21,824,450.92 -25,001,131.81 - 36,653,867.27
Total assets 736,419,607.35 232,500,932.84 370,318,230.33 173,579,725.80 -112,683,535.61 1,400,134,960.71
Total liabilities 107,939,243.67 41,066,699.30 70,883,681.59 200,948,395.77 -116,227,040.91 304,610,979.42
14. Notes to the financial statements of the Company
14.1 Accounts receivable
14.1.1 Aging analysis by aging
Aging Balance as at 31/12/2021
Within 6 months 9,190,590.36
6 months-1 years -
1-2 years -
2-3 years -
More than 3 years 5,689,018.01
Total 14,879,608.37
14.1.2 Accounts receivable by provision method for allowance credit losses
Item As at 31/12/2021
Balance PCT Allowance for credit PCT Carrying amount
losses
Individually assessment subject to - - - - -
allowance for credit losses
Grouping assessment subject to 14,879,608.37 100.00% 6,148,547.53 41.32% 8,731,060.84
allowance for credit losses
Group 1: Non-affiliated party 14,879,608.37 100.00% 6,148,547.53 41.32% 8,731,060.84
customer portfolio
Group 2: Combination of related - - - - -
parties
Total 14,879,608.37 100.00% 6,148,547.53 41.32% 8,731,060.84
(Continued)
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Item As at 1/1/2021
Balance PCT Allowance for credit PCT Carrying amount
losses
Individually assessment subject to - - - - -
allowance for credit losses
Grouping assessment subject to 13,483,880.01 100.00% 6,076,243.56 45.23% 7,407,636.45
allowance for credit losses
Group 1: Non-affiliated party 13,433,529.01 99.63% 6,076,243.56 45.23% 7,357,285.45
customer portfolio
Group 2: Combination of related 50,351.00 0.37% - - 50,351.00
parties
Total 13,483,880.01 100.00% 6,076,243.56 45.23% 7,407,636.45
Group 1: Accounts receivable due from non-affiliated party customer portfolio:
Aging As at 31/12/2021
Balance Allowance for PCT
credit losses
Within 6 months 9,190,590.36 459,529.52 5.00%
6 months-1 years - - -
1-2 years - - -
2-3 years - - -
More than 3 years 5,689,018.01 5,689,018.01 100.00%
Total 14,879,608.37 6,148,547.53
(Continued)
Aging As at 1/1/2021
Balance Allowance for PCT
credit losses
Within 6 months 7,744,511.00 387,225.55 5.00%
6 months-1 years - - -
1-2 years - - -
2-3 years - - -
More than 3 years 5,689,018.01 5,689,018.01 100.00%
Total 13,433,529.01 6,076,243.56
Group 2: Accounts receivable due from combination of related parties :
Aging As at 31/12/2021 As at 1/1/2021
Balance ECL rate Allowance for Balance ECL rate Allowance for
credit losses credit losses
combination of - - - 50,351.00 - -
related parties
14.1.3 Allowance for credit losses
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Item As at 1/1/2021 Amount of change in the current period As at 31/12/2021
Provision Recovery or Write off Others
reversal
Accounts 6,076,243.56 72,303.97 - - - 6,148,547.53
receivable
14.1.4 Accounts receivable due from the top five debtors of the Company are as follows:
Company name Balance as at Percentage in total Balance of
31/12/2021 accounts allowance for
receivable credit losses as at
31/12/2021
HAIXINSHEN CO.,LTD 5,435,011.18 36.53% 271,750.56
PACIFIC PANDA.INC 3,600,962.12 24.20% 3,600,962.12
PIONEER FOOD CANNERY LTD 2,017,638.08 13.56% 100,881.90
AFKO FISHERIES COMPANY LIMITED 870,928.08 5.85% 43,546.40
Xue Han 293,209.20 1.97% 293,209.20
Total 12,217,748.66 82.11% 4,310,350.18
14.2 Other receivables
Item Balance as at 31/12/2021 Balance as at 1/1/2021
Interest receivable - -
Dividends receivable 85,085,303.70 101,777,374.94
Other receivables 37,525,815.05 106,275,077.33
Less: Allowance for credit losses 3,595,932.39 3,553,611.55
Total 119,015,186.36 204,498,840.72
14.2.1 Dividends receivable
14.2.1.1 Classification and disclosure of dividends receivable
Item Balance as at 31/12/2021 Balance as at 31/12/2021
Subsidiary dividend 85,085,303.70 101,777,374.94
Less: Allowance for credit losses - -
Total 85,085,303.70 101,777,374.94
14.2.2 Other receivables
14.2.2.1 Aging analysis of other receivables
Aging Balance as at 31/12/2021
Within 6 months 18,995,609.66
6 months-1 years 2,685,259.35
1-2 years 2,548,353.45
2-3 years 2,898,011.07
More than 3 years 10,398,581.52
Total 37,525,815.05
14.2.2.2 Category of other receivables by nature
Nature Balance as at 31/12/2021 Balance as at 1/1/2021
Internal current account 33,377,123.62 102,455,780.95
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Nature Balance as at 31/12/2021 Balance as at 1/1/2021
Revolving fund and other 4,148,691.43 3,819,296.38
Less: Allowance for credit losses 3,595,932.39 3,553,611.55
Total 33,929,882.66 102,721,465.78
14.2.2.3 The provision of allowance for credit losses
The allowance for credit losses Stage one Stage two Stage three Total
12-month ECL Lifetime ECL Lifetime ECL
(credit - (credit-impaired)
unimpaired)
Beginning balance 55,390.16 - 3,498,221.39 3,553,611.55
Revaluation of beginning balance 55,390.16 - 3,498,221.39 3,553,611.55
Provision 53,574.17 - -9,995.05 43,579.12
Reversal - - - -
Charge off - - - -
Write-off - - 1,258.28 1,258.28
Other changes - - - -
Ending balance 108,964.33 - 3,486,968.06 3,595,932.39
14.2.2.4 Allowance for credit losses
Item Balance as at Amount of change in the current period Balance as at
1/1/2021 Allowance Take back or turn write off Other change 31/12/2021
back
Other 3,553,611.55 43,579.12 - 1,258.28 - 3,595,932.39
receivables
14.2.2.5 Other receivables written-off during the year
Item Write-off amount
Other receivables written off 1,258.28
14.2.2.6 Other receivables due from the top five debtors are as follows:
Company name Nature of Balance as at Aging As a percentage of Ending balance of
payment 31/12/2021 the total amount allowance for
credit losses
LAIF FISHERIES COMPANY current payment 18,343,166.52 0-3 years or more 48.88% -
LIMITED
YAW ADDO FISHERIES current payment 9,305,369.49 0-3 years or more 24.8% -
COMPANY LIMITED
AFRICA STAR FISHERIES current payment 3,189,007.27 0-3 years or more 8.5% -
LIMITED
Shandong Zhonglu Ocean current payment 1,995,947.71 1-3 years or more 5.32% -
Refrigeration Co., Ltd.
Sino-Ocean (Qingdao) Industrial current payment 302,683.00 0-6 months 0.81% -
Investment Development Co., Ltd.
Total 33,136,173.99 88.31% -
14.3 Long-term equity investments
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Item As at 31/12/2021 As at 1/1/2021
Balance Provision Carrying amount Balance Provision Carrying amount
for impairment for impairment
Investment to 232,189,455.23 - 232,189,455.23 232,189,455.23 - 232,189,455.23
subsidiaries
Note: The parent company and HABITAT INTERNATIONAL CORP, a wholly-owned subsidiary, jointly invested
and set up Zhonglu Oceanic (Qingdao) Industrial Investment Development Co., Ltd. with the parent company
accounting for 51%. By December 31, 2021, the parent company had not actually invested.
14.3.1 Investment to subsidiaries
Investee Balance as at Additions Reductions Balance as at Provision Balance of
1/1/2021 31/12/2021 for impairment in provision
current period for impairment As
at 1/1/2021
HABITAT 12,476,145.60 - - 12,476,145.60 - -
INTERNATIO
NAL CORP.
Shandong 22,869,513.38 - - 22,869,513.38 - -
Zhonglu
Oceanic
Fisheries
Transportation
Co., Ltd.
Shandong 55,448,185.24 - - 55,448,185.24 - -
Zhonglu
Oceanic (Yantai)
Food Co., Ltd.
Shandong 141,395,611.01 - - 141,395,611.01 - -
zhonglu Haiyan
Oceanic
Fisheries Co.,
Ltd.
Total 232,189,455.23 - - 232,189,455.23 - -
14.4 Operating income and operating costs
14.4.1 Operating income and operating costs
Item Year ended 31/12/2021 Year ended 31/12/2020
Income Cost Income Cost
Primary operating business 135,171,275.55 115,100,856.01 108,685,800.84 99,119,500.56
Other operating business 4,156,011.88 1,788,918.05 4,999,320.98 1,807,861.27
Total 139,327,287.43 116,889,774.06 113,685,121.82 100,927,361.83
14.5 Investment income
Item Year ended Year ended
31/12/2021 31/12/2020
Gain/(Loss) from long-term equity investments in cost method 8,817,128.76 7,880,977.02
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Item Year ended Year ended
31/12/2021 31/12/2020
Gain/(Loss) on financial assets held for trading for the current period 49,972.60 15,287.67
Total 8,867,101.36 7,896,264.69
15. Supplementary information
15.1 Details of non-recurring gain or loss for the year
Item Amount Remark
Gain or loss on disposal of non-current assets 3,494,326.93 -
Government grants (except the government grants closely related to the business of the 2,484,454.50 -
Company and enjoyed according to unified quota or ration standards)
Gain or loss from fair value change of financial assets held-for-trading, other non-current 49,972.60 -
financial assets, derivative financial assets and financial liabilities held-for-trading etc., and
investment income from disposal of financial assets held-for-trading, other non-current financial
assets, other debt investments, financial liabilities held-for-trading and derivative financial
liabilities, excluding effective hedging operations related to normal business of the Company
Gain or loss from debt restructuring -127,527.03 -
Other non-operating income/(expenses) except the above items 798,473.53 -
Effects of income tax on non-recurring items 1,086,874.90 -
Effects of non-recurring items attributable to the minority shareholders of the Company 818,312.96 -
Total 4,794,512.67 -
Note: The company received 38,431,963.86 yuan of subsidy funds for the improvement of the country’s international
contract performance capacity this year. Because the subsidy is closely related to the enterprise’s contract performance
score and fishing vessel operation time, the subsidy fund is based on the company’s contract performance score, fishing
vessel operation time and other parameters, according to the country, Standard calculation and confirmation of relevant
provincial departments. Therefore, it is not listed as non-recurring profit or loss.t.
15.2 Return on equity and earnings per share
Profit in report period Weighted average return on Earnings per share
equity Basic earnings per Diluted earnings
share per share
Net profit attributable to the common share holders 3.87% 0.13 0.13
Net profit attributable to the common shareholders after deducting 3.35% 0.12 0.12
non-recurring gain or loss items
176
