1
Shenzhen China Bicycle Company (Holdings) Limited
ANNUAL REPORT 2019
April 2020
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Section I. Important Notice, Contents and Interpretation
Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of Shenzhen China Bicycle Company (Holdings) 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.
Li Hai, Principal of the Company, Sun Longlong, person in charge of accounting
works and Zhong Xiaojin, person in charge of accounting organ (accounting
principal) hereby confirm that the Financial Report of 2019 Annual Report is
authentic, accurate and complete.
All directors are attended the Board Meeting for report deliberation.
The 2019 annual financial report of the Company was audited by Baker Tilly
China CPA (LLP), and an unqualified audit report with significant uncertainty
of going concern was issued. The board of directors and the board of supervisors
of the Company have detailed explanations on related matters. Investors should
read carefully.
Since the audited net profit is negative for two consecutive fiscal years in 2018
and 2019, according to the relevant regulation of Article 13.2.1 of Rules
Governing the Listing of Stocks on Shenzhen Stock Exchange, Shenzhen Stock
Exchange will implement delisting risk warning for the stock trading of the
Company.
The Company has no plan of cash bonus, dividends and capitalizing of reserves
either.
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content
Section I Important Notice and Interpretation ...................... 错误！未定义书签。
Section II Company Profile and Main Financial Indexes ..... 错误！未定义书签。
Section III Summary of Company Business ........................................................... 10
Section IV Discussion and Analysis of the Operation ............................................ 11
Section V Important Events ..................................................................................... 27
Section VI Changes in shares and shareholders ..................................................... 38
Section VII Preferred Stock...................................................... 错误！未定义书签。
Section VIII Convertible Bonds...............................................................................48
Section IXParticulars about Directors, Supervisors and Senior Executives错误！
未定义书签。
Section X Corporate Governance ............................................................................ 57
Section XI Corporate Bond......................................................................................63
Section XII Financial report ..................................................................................... 64
Section XIII Documents available for reference .................... 错误！未定义书签。
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Interpretation
Items
Refers
to
Contents
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Section II. Company Profile and Main Financial Indexes
I. Company information
Short form of the stock Zhonghua – A, Zhonghua -B Stock code 000017, 200017
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in
Chinese)
深圳中华自行车(集团)股份有限公司
Short form of the Company
(in Chinese)
深中华
Foreign name of the Company
(if applicable)
Shenzhen China Bicycle Company (Holdings) Limited
Short form of foreign name of
the Company (if applicable)
CBC
Legal representative Li Hai
Registrations add. No. 3008, Buxin Rd., Shenzhen
Code for registrations add 518019
Offices add. Room 1201, Wantong Building, No.3002, Sungang East Road, Shenzhen
Codes for office add. 518023
Company’s Internet Web Site www.cbc.com.cn
E-mail dmc@szcbc.com
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Sun Longlong Cui Hongxia, Zhong Xiaojin
Contact add.
Room 1201, Wantong Building, No.3002,
Sungang East Road, Shenzhen
Room 1201, Wantong Building, No.3002,
Sungang East Road, Shenzhen
Tel. 0755-25516998,28181666 0755-25516998,28181666
Fax. 0755-28181009 0755-28181009
E-mail dmc@szcbc.com dmc@szcbc.com
III. Information disclosure and preparation place
Newspaper appointed for information disclosure Securities Times; Hong Kong Commercial Daily
Website for annual report publish appointed by CSRC Juchao Website (www.cninfo.com.cn)
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Preparation place for annual report Room 1201, Wantong Building, No.3002, Sungang East Road, Shenzhen
IV. Registration changes of the Company
Organization code 914403006188304524
Changes of main business since listing (if
applicable)
Main products or services provided at present: Emmelle bicycle, electric bicycle,
lithium battery materials and gold jewelry.
Previous changes for controlling
shareholders (if applicable)
1. In March 1992, the Stock of the Company was listed in Shenzhen Stock Exchange,
and 23.28% equity of the Company was held by Shenzhen Lionda Holding Co., Ltd.
and Hong Kong Dahuan Bicycle Co., Ltd respectively. 2. In March 2002, legal shares
13.58% A-stock of the Company was obtained by China Huarong Asset Management
Co., Ltd. through court auction, and became the first majority shareholder of the
Company. 3. On 13 November 2006, the 65,098,412 legal shears of CBC held by
Huarong Company was acquired by Shenzhen Guosheng Energy Investment
Development Co., Ltd. via the “Equity Transfer Agreement” signed, and first majority
of the Company comes to Guosheng Energy. Guosheng Energy is the wholly-owned
subsidiary of National Investment, actual controller was Zhang Yanfeng. 4. In January
2011, controlling shareholder of Shenzhen Guosheng Energy Investment Development
Co., Ltd.—Shenzhen National Investment Development Co., Ltd. entered into equity
transfer agreement with Mr. Ji Hanfei, 100% equity of Guosheng Energy was transfer
to Mr. Ji Hanfei with price of 70 million. Shenzhen Guosheng Energy Investment
Development Co., Ltd. Shenzhen Guosheng Energy Investment Development Co., Ltd.
holds 63,508,747 A-stock of the Company with 11.52% in total share capital of the
Company. 5. On February 20, 2017, Ji Hanfei and Guosheng Energy made an
“Explanation” to abandon the actual control of the Company, after Ji Hanfei made the
declaration to abandon the actual control of the Company, the investment from CBC by
Mr. Ji changed to general investment instead of actual controlling, and the actual
controller of the Company changed from Ji Hanfei to no actual controller.
V. Other relevant information
CPA engaged by the Company
Name of CPA Baker Tilly China CPA (LLP)
Offices add. for CPA A-1 and A-5 of No.68 Building, No.19 Chegongzhuang West Road, Haidian District Beijing
Signing Accountants Chen Zhigang, Zhang Lei
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
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VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not
□ Yes √ No
2019 2018 Changes over last year 2017
Operating income (RMB) 76,022,687.75 119,906,950.34 -36.60% 137,490,597.69
Net profit attributable to
shareholders of the listed company
(RMB)
-7,186,905.64 -1,591,968.91 351.45% 1,529,587.27
Net profit attributable to
shareholders of the listed company
after deducting non-recurring gains
and losses (RMB)
-7,370,499.83 -1,837,914.46 301.03% 1,189,700.50
Net cash flow arising from
operating activities (RMB)
-13,791,941.34 -9,479,474.16 45.49% -3,431,578.40
Basic earnings per share
(RMB/Share)
-0.0130 -0.0029 348.28% 0.0028
Diluted earnings per share
(RMB/Share)
-0.0130 -0.0029 348.28% 0.0028
Weighted average ROE -53.69% -10.54% -43.15% 10.11%
Year-end of 2019 Year-end of 2018
Changes over end of
last year
Year-end of 2017
Total assets (RMB) 62,733,602.58 73,242,960.17 -14.35% 73,559,961.28
Net assets attributable to
shareholder of listed company
(RMB)
7,119,396.30 14,306,301.94 -50.24% 15,898,270.85
VII. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
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
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The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.
VIII. Quarterly main financial index
In RMB
Q 1 Q 2 Q 3 Q 4
Operating income 21,954,108.28 16,320,324.74 24,574,484.81 13,173,769.92
Net profit attributable to
shareholders of the listed company
-366,774.37 -432,171.80 1,040,149.76 -7,428,109.23
Net profit attributable to
shareholders of the listed company
after deducting non-recurring gains
and losses
-410,571.37 -499,818.80 1,040,149.76 -7,500,259.42
Net cash flow arising from
operating activities
-6,105,394.21 -2,795,862.53 1,583,584.06 -6,474,268.66
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial
index disclosed in the company’s quarterly report and semi-annual report
□Yes √ No
IX. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMB
Item 2019 2018 2017 Note
Gains/losses from the disposal of
non-current asset (including the write-off
that accrued for impairment of assets)
-85,730.05 -2,464.81
Switch-back of provision of impairment of
account receivable and contractual assets
which are treated with separate depreciation
test
219,118.00 278,664.18
Other non-operating income and expenditure
except for the aforementioned items
194,691.02 261,141.96 281,545.89
Less: Impact on income tax 48,672.76 98,632.48 139,436.31
Impact on minority shareholders’
equity (post-tax)
-37,575.93 49,951.88 78,422.18
Total 183,594.19 245,945.55 339,886.77 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
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the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss
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Section III. Summary of Company Business
I. Main businesses of the company in the reporting period
During the reporting period, the Company is engaged in the main business of bicycle business, lithium battery material business and
jewelry and gold business. Bicycle business including the production, assembly, purchase and sales of bicycles and electric bicycles
etc.
II. Major changes in main assets
1. Major changes in main assets
Major assets Note of major changes
Monetary fund Taxes payable at end of the last year was paid in the period
Account receivable Receivables from customers increased
Account paid in advance
The account paid in advance for lithium battery materials business in previous year was
delivered successively in the period
Inventory Inventories at end of the period increased
Other current assets Input tax expected to be deducted increased in the period
2. Main overseas assets
□ Applicable √ Not applicable
III. Core Competitiveness Analysis
Despite the fierce market competition in the bicycle industry as a conventional industry, the increased awareness
of green commuting, leisure and exercises as a result of the development of China’s social economy and the
change of people’s living concept creates structural development opportunity for the bicycle industry. The
Company will continue to do better in various aspects of operation such as market development, product
development, quality management and sales of e-commerce, extended and expansion the application of upstream
& downstream industry for the industrial chain step by step, so as to maintain and improve the Company’s ability
to continue as a going concern before the restructuring. During the reporting period, the Company newly develops
jewelry and god supply chain business and expands the business dimensions. In August 2019, the Company and
Shenzhen Zuankinson Jewelry Co., Ltd jointly established a Shenzhen Xinsen Jewelry and Gold Supply Chain
Co., ltd with contribution of 6.5 million yuan. Of which, the Company holds 65% equity, and is the controlling
shareholder of Shenzhen Xinsen Jewelry and Gold Supply Chain Co., ltd, while 35% equity held by Zuankinson
Jewelry. According to actual operation development, in February 2020, the two parties are decided to increase the
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capital of Shenzhen Xinsen Jewelry and Gold Supply Chain Co., ltd to 20 million yuan in the same proportion. On
the other hand, the Company sets the conditions for introducing the restructuring party in the reorganization plan,
expecting to restore the sustainable operation ability and sustainable profitability through asset restructuring.
In addition, the Company is trying to carry out the issuance of non-public shares, hoping to improve the operating
strength and development momentum. On April 21, 2020, the company convened the 19
th
(provisional) board
meeting of the tenth session of the board of directors, and reviewed and approved the “Proposal on the
Termination of Agreement for Signing a Conditional Share Subscription Agreement (Second Revision) with the
Original Subscription Object” and the “Proposal on the Plan for Non-public Issuance of A Shares of Shenzhen
China Bicycle Company (Holdings) Limited”, etc. The company terminated the non-public offering of shares of
2016 and launched the plan for non-public issuance of A shares in 2020, and planned to raise funds with total
amount not exceeding RMB 450 million by non-public offering of shares to 5 specific investors, i.e. Wansheng
Industrial Holdings (Shenzhen) Co., Ltd., Fuzhou Zuankinson Jewelry Co., Ltd., Shenzhen Yilian Jinchuang
Technology Co., Ltd., Shenzhen Hualinglong Jewelry Co., Ltd., and Shenzhen Jindaogu Jewelry Co., Ltd., all
raised funds will be used to supplement working capital after deducting the issuance expenses. The non-public
offering plan still needs to be approved by the company’s shareholders’ meeting and the China Securities
Regulatory Commission. Relevant work is in progress.
Section IV. Discussion and Analysis of the Business
I. Introduction
In 2019, the international political and economic situation is complex and severe, domestic development
imbalance and inadequate problems are still prominent, and the economy is facing a new downward pressure.
Under the leadership of central government and governments at all levels, the whole nation strengthened their
confidence, overcame difficulties, and forged ahead, and achieved steady progress in economic and social
development, and the economic fundamentals were continuously consolidated and developed. As a sector in the
traditional manufacturing field, the bicycle industry continued the dilemma of rise in labor cost, manufacturing
costs, cost of capital, and material costs. In 2018, the relevant state ministry issued a new national standard for
electric bicycle safety technical specifications which was implemented on April 15, 2019. The implementation of
the new national standard has accelerated the industry’s reshuffle and formed industry shocks before
implementation. In addition, in the past two years, the bike sharing has been violently oscillating the bicycle
industry and the upstream supply chain operations with capital advantages, due to the lack of profit model and
capital chain problems, and it continued to have a big impact on the whole industry in 2019. At the same time, as
a traditional manufacturing industry, the bicycle industry also ushered in the “Made in China 2025” strategy,
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under the guidance of the basic principles of “Innovation Driven, Quality First, Green Development, Structure
Optimization, and Talent Based”, took the important opportunity to speed up the transformation and upgrading,
ushered in the development opportunity of the implementation of the new national standards for electric bicycles,
and also faced with the important challenges of e-commerce development impacts on channels, channel
integration and Internet+.
China has the world’s largest production and marketing of electric bicycles, after years of development, electric
bicycles have gradually become an important means of transportation for consumers on everyday short-distance
trips, at present, there are about 200 million bicycles in the entire society. Structural body, motor, power battery,
and control system are the core components of electric bicycles, Shenzhen China Bicycle has been closely
following up the research on their technological development, application development, and commercial value for
a long period of time, and has determined the qualified suppliers for core components year by year. The
non-public offering of shares for fund-raising investment project of Shenzhen China Bicycle being planned and
prepared at present also covers the application researches on switched reluctance motors, super-capacitor batteries,
new materials, electric car bus control systems, wearable devices, intelligent positioning lock systems, etc. As one
of the core components, electric bicycle power batteries have been mainly lead-acid batteries in the past decade or
two, with the development and popularization of new energy technologies and new energy materials, it is
expected to be replaced by the lithium batteries in the future. According to the strategy guidelines of “Made in
China 2025” by the State Council and the spirit of standardization reform, the Ministry of Industry and
Information Technology, the Ministry of Public Security, the State Administration for Industry and Commerce,
and the General Administration of Quality Supervision, Inspection and Quarantine have introduced a new national
standard for electric bicycles to comprehensively improve the safety performance of electric bicycles, adjust and
improve the speed limit, vehicle quality, pedaling and riding ability and other technical indicators. New standards
not only are close to people’s livelihood, but also improve the application space for lithium battery energy storage,
and lithium battery electric bicycles usher in a new stage of development.
In this context, in 2019, due to the actual situation of having a weak economic foundation after reforming, on the
one hand, the company adhered to taking the development of traditional business model as the principle,
combined with the new national standard of electric bicycle safety technical specifications, carried out research
and development on new products, optimized and adjusted product structure and sales model transformation,
actively expanded the e-commerce business model and realized the steady development of e-commerce retail
business; at the same time, correspondingly carried out the tracking study on industrial projects and technology
applications of upstream and downstream of industrial chain in the long-term process of electric bicycle business,
started getting involved in the lithium battery materials business based on the extensive business consultation and
business opportunity sifting, continues to expanding the business of Lithium battery materials and rich the main
business; During the reporting period, the Company newly develops jewelry and god supply chain business and
expands the business dimensions. In August 2019, the Company and Shenzhen Zuankinson Jewelry Co., Ltd
jointly established a Shenzhen Xinsen Jewelry and Gold Supply Chain Co., ltd with contribution of 6.5 million
yuan. Of which, the Company holds 65% equity, and is the controlling shareholder of Shenzhen Xinsen Jewelry
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and Gold Supply Chain Co., ltd, while 35% equity held by Zuankinson Jewelry. According to actual operation
development, in February 2020, the two parties are decided to increase the capital of Shenzhen Xinsen Jewelry
and Gold Supply Chain Co., ltd to 20 million yuan in the same proportion. on the other hand, strive to promote the
selection work of the company's restructuring, planned the non-public offering of shares, expecting to improve the
business strength and development potential.
In preparation for non-public offering of shares, in July 2016, the company initiated the planning and preparation
for non-public offering of shares and engaged securities companies, lawyers, accountants, and other intermediary
agencies to carry out various tasks. Since then, the nineteenth (temporary) meeting, the twenty-second (temporary)
meeting, and the twenty-sixth (temporary) meeting of the ninth session of board of directors of the company, and
the second extraordinary shareholders’ meeting in 2017 reviewed and approved the relevant proposals on
non-public offering of shares. Combining the capital market with the actual situation of the company, from
January to February, 2018, the fourth (temporary) meeting of the 10
th
session of board of directors and the first
extraordinary shareholders’ meeting of the company in 2018 reviewed and approved the Proposal on Adjusting
the Plan for the Company’s Non-Public Offering of A-Shares, and the Proposal on the Plan for the Company’s
Non-Public Offering of A-Shares (three revised versions) and other relevant proposals. According to the above
proposals, the total amount of funds raised in this non-public offering of shares did not exceed 750 million Yuan,
and planned to invest 680 million Yuan for the “online and offline marketing network platform construction and
upgrade project” and planned to invest 70 million Yuan for the “R&D center construction project after deducting
the issuance costs. On April 21, 2020, the company convened the 19
th
(provisional) board meeting of the tenth
session of the board of directors, and reviewed and approved the “Proposal on the Termination of Agreement for
Signing a Conditional Share Subscription Agreement (Second Revision) with the Original Subscription Object”
and the “Proposal on the Plan for Non-public Issuance of A Shares of Shenzhen China Bicycle Company
(Holdings) Limited”, etc. The company terminated the non-public offering of shares of 2016 and launched the
plan for non-public issuance of A shares in 2020, and planned to raise funds with total amount not exceeding
RMB 450 million by non-public offering of shares to 5 specific investors, i.e. Wansheng Industrial Holdings
(Shenzhen) Co., Ltd., Fuzhou Zuankinson Jewelry Co., Ltd., Shenzhen Yilian Jinchuang Technology Co., Ltd.,
Shenzhen Hualinglong Jewelry Co., Ltd., and Shenzhen Jindaogu Jewelry Co., Ltd., all raised funds will be used
to supplement working capital after deducting the issuance expenses. The non-public offering plan still needs to
be approved by the company’s shareholders’ meeting and the China Securities Regulatory Commission. Relevant
work is in progress.
Under the background that the traditional manufacturing industry at home was still sluggish, in accordance with
the guidelines of “Made in China 2025”, the company insisted on accelerating its professional transformation and
e-commercial transformation, striving to expand business dimension, rich the main business and strengthening the
structural adjustment, intensifying the quality management, strengthening cost control, overcoming the industry
shocks and industry punches of share-bicycle’s fluctuation on the eve of the implementation of new national
standards, strive to improving the ability of traditional enterprises to adapt to economy new normal and participate
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in market competition. Through various efforts, the company achieved operating revenue of 76,022,700 Yuan and
net profit of -7,813,900 Yuan in 2019, of which, the net profit attributable to shareholders of listed companies
was-7,186,900 Yuan.
Item
Period-end or
current period
Period-begin or last
period
Y-o-Y
changes (+,-)
Cause of changes
Operation revenue 76,022,687.75 119,906,950.34 -36.60%
Revenue from bicycle and lithium battery material
business declined
Operation cost 68,681,471.12 108,071,430.05 -36.45%
Cost of bicycle and lithium battery material
business declined
Sales expenses 3,178,476.39 5,933,231.41 -46.43%
Decline of sales resulted in a decreases in
operation expenses
R&D expenses 2,753,277.72 0.00
More investment in R&D of bicycle business and
lithium battery material
Net profit -7,813,881.65 -1,880,505.78 315.52%
Loss from the declined in revenue and soaring
expenses
Net profit attributable to
shareholders of parent
company
-7,186,905.64 -1,591,968.91 315.52%
Loss of profits results in a deficit of profit
attributable to owners of parent company
Net cash flow from
operation activity
-13,791,941.34 -9,479,474.16 45.49%
Tax of previous year paid in the current period and
choice of the settlement method
Net cash flow from
investment activity
-897,577.01 -17,293.82 5,090.16% Purchasing fixed assets in the period
Net cash flow from
financing activity
4,275,000.00 6,808,378.06 -37.21%
The bank acceptance issue upon receipt of the
pledged bank certificate of deposit decreased in
the period
Monetary fund 6,074,367.91 18,488,886.26 -67.15%
Pay last year’s taxes and payment of bills payable
on due
Account receivable 38,616,523.93 29,007,509.02 33.13% Receivable from customers increased
Account paid in advance 938,425.99 13,799,753.60 -93.20%
The account paid in advance for materials (for the
business of lithium battery material business) are
delivery basically in the period
Inventory 6,078,330.30 2,386,603.94 154.69%
The jewelry gold and bicycles in stock from the
subsidiary
Other current assets 3,318,514.25 2,266,241.66 46.43% Input tax to be deducted increased
Note payable 0.00 2,000,000.00 -100.00% Bank acceptance bill are due for payment
Account received in
advance
1,739,953.80 405,779.88 328.79%
Account received by subsidiary in advance for
goods from clients increased in the period
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Taxes payable 585,062.75 6,297,096.28 -90.71% Taxes of lat year are paid in the period
Minority’s interest 4,322,186.79 2674162.80 61.63%
Share holding of the minority shareholder of the
subsidiary newly established was 35%
II. Main business analysis
1. Introduction
See the “I-Introduction” in “Discussion and Analysis of the Business”
2. Revenue and cost
(1) Constitute of operation revenue
In RMB
2019 2018
Y-o-y changes (+,-)
Amount
Ratio in operation
revenue
Amount
Ratio in operation
revenue
Total operation
revenue
76,022,687.75 100% 119,906,950.34 100% -36.60%
According to industries
Sales of bicycles and
spare parts
46,942,798.66 61.75% 84,703,248.36 70.64% -44.58%
Lithium battery
material
24,460,850.63 32.18% 35,203,701.98 29.36% -30.52%
Jewelry and gold 4,619,038.46 6.07%
According to products
Sales of bicycles and
spare parts
46,942,798.66 61.75% 84,703,248.36 70.64% -44.58%
Lithium battery
material
24,460,850.63 32.18% 35,203,701.98 29.36% -30.52%
Jewelry and gold 4,619,038.46 6.07%
According to region
Domestic 76,022,687.75 100.00% 119,906,950.34 100.00% -36.60%
(2) About the industries, products, or regions accounting for over 10% of the company’s operating income
or operating profit
√Applicable □ Not applicable
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In RMB
Operation
revenue
Operation cost Gross profit ratio
Increase/decrease
of operating
revenue y-o-y
Increase/decrease
of operating cost
y-o-y
Increase/decrease
of gross profit
ratio y-o-y
According to industries
Sales of bicycles
and spare parts
46,942,798.66 41,597,621.68 11.39% -44.58% -45.15% 0.92%
Lithium battery
material
24,460,850.63 22,828,770.32 6.67% -30.52% -29.18% -1.76%
Jewelry and gold 4,619,038.46 4,255,079.12 7.88%
According to products
Sales of bicycles
and spare parts
46,942,798.66 41,597,621.68 11.39% -44.58% -45.15% 0.92%
Lithium battery
material
24,460,850.63 22,828,770.32 6.67% -30.52% -29.18% -1.76%
Jewelry and gold 4,619,038.46 4,255,079.12 7.88%
According to region
Domestic 76,022,687.75 68,681,471.12 9.66% -36.60% -36.45% -0.21%
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) Income from physical sales larger than income from labors
√ Yes □ No
Industries Item Unit 2019 2018 Y-o-y changes (+,-)
Bicycle, electric
bicycle
Sales volume In 10 thousand 7.44 13.42 -44.56%
Output In 10 thousand 7.4 13.35 -44.57%
Inventory In 10 thousand 0.18 0.22 -18.18%
Lithium battery
material
Sales volume Ton 385 543.25 -29.13%
Output 0
Inventory 0
Purchase volume Ton 385 543.25 -29.13%
Jewelry and gold
Sales volume Piece 2317 0
Output Piece 0
Inventory Piece 2015 0
Purchase volume 4332 0
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Reasons for y-o-y relevant data with over 30% changes
√Applicable □Not applicable
During the reporting period, after the implementation of the new national standard, the detailed implementing
rules of the 3C standard for bicycle were delayed. The consumer market, upstream supply chain, and downstream
distribution channels were on the sidelines, leading to a significant decline in market demand orders. In this period,
the company invested in the establishment of a holding subsidiary to develop the jewelry gold supply chain
business, and increased the operating income of the jewelry gold supply chain business.
(4) Fulfillment of the company’s signed significant sales contracts up to this reporting period
□ Applicable √ Not applicable
(5) Constitute of operation cost
Classification of industries
In RMB
Industries Item
2019 2018
Y-o-y changes
(+,-) Amount
Ratio in operation
cost
Amount
Ratio in operation
cost
Sales of bicycles
and spare parts
Sales of bicycles
and spare parts
41,597,621.68 60.57% 75,836,250.52 70.17% -9.60%
Lithium battery
material
Lithium battery
material
22,828,770.32 33.24% 32,235,179.53 29.83% 3.41%
Jewelry and gold Jewelry and gold 4,255,079.12 6.20% 6.20%
Note
Nil
(6) Whether the changes in the scope of consolidation in Reporting Period
√ Yes □No
In August 2019, the Company and Shenzhen Zuankinson Jewelry Co., Ltd jointly established a Shenzhen Xinsen
Jewelry and Gold Supply Chain Co., ltd. Of which, the Company holds 65% equity, while 35% equity held by
Shenzhen Zuankinson Jewelry Co., Ltd, the enterprise was included in the consolidate scope since establishment.
(7) Major changes or adjustment in business, product or service of the Company in Reporting Period
√ Applicable □ Not applicable
In August 2019, the Company and Shenzhen Zuankinson Jewelry Co., Ltd jointly established a Shenzhen Xinsen
Jewelry and Gold Supply Chain Co., ltd, increase a supply chain business of jewelry and gold.
18
(8) Major sales and main suppliers
Major sales client of the Company
Total top five clients in sales (RMB) 56,880,682.95
Proportion in total annual sales volume for top five clients 74.82%
Ratio of related parties in annual total sales among the top
five clients
0.00%
Information of top five clients of the Company
Serial Name Sales (RMB) Proportion in total annual sales
1 Client 1 26,366,871.67 34.68%
2 Client 2 10,717,707.40 14.10%
3 Client 3 10,417,655.70 13.70%
4 Client 4 4,929,310.40 6.48%
5 Client 5 4,449,137.78 5.85%
Total -- 56,880,682.95 74.82%
Other situation of main clients
□ Applicable √ Not applicable
Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 46,626,764.46
Proportion in total annual purchase amount for top five
suppliers
67.89%
Ratio of related parties in annual total sales among the top
five suppliers
0.00%
Information of top five suppliers of the Company
Serial Name Purchase (RMB) Proportion in total annual purchase
1 Supplier 1 18,420,361.26 26.82%
2 Supplier 2 12,429,740.35 18.10%
3 Supplier 3 7,902,236.28 11.51%
4 Supplier 4 4,070,973.47 5.93%
5 Supplier 5 3,803,453.10 5.54%
Total -- 46,626,764.46 67.89%
Other notes of main suppliers
□ Applicable √ Not applicable
19
3. Expenses
In RMB
2019 2018
Y-o-y changes
(+,-)
Note of major changes
Sales expenses 3,178,476.39 5,933,231.41 -46.43%
Decrease in sales revenue resulted in a
decrease in operating expenses
Administrative expenses 6,409,465.59 6,627,286.22 -3.29%
Financial expenses -95,401.17 -348,684.16 -72.64% Interest income from bank deposit fell
R&D expenses 2,753,277.72
More investment on R&D of bicycle
business and Lithium battery material
business
4. R&D investment
√ Applicable □ Not applicable
More investment on R&D of bicycle business and Lithium battery material business in the period
R&D investment of the Company
2019 2018 Change ratio
Number of R&D (people) 15 7 114.29%
Ratio of number of R&D 25.42% 13.21% 12.21%
R&D investment (Yuan) 2,753,277.72 894,440.42 207.82%
R&D investment accounted for
R&D income
3.62% 0.75% 2.87%
R&D investment capitalization
(Yuan)
0.00 0.00 0.00%
Capitalization R&D investment
accounted for R&D investment
0.00% 0.00% 0.00%
The reason of great changes in the proportion of total R&D investment accounted for operation income than last year
□ Applicable √ Not applicable
Reason for the great change in R&D investment capitalization rate and rational description
□ Applicable √ Not applicable
5. Cash flow
In RMB
Item 2019 2018 Y-o-y changes (+,-)
20
Subtotal of cash in-flow from
operation activity
42,717,223.29 40,567,846.42 5.30%
Subtotal of cash out-flow from
operation activity
56,509,164.63 50,047,320.58 12.91%
Net cash flow from operation
activities
-13,791,941.34 -9,479,474.16 45.49%
Subtotal of cash out-flow from
investment activity
897,577.01 17,293.82 5,090.16%
Net cash flow from investment
activities
-897,577.01 -17,293.82 5,090.16%
Subtotal of cash in-flow from
financing activity
4,275,000.00 8,808,378.06 -51.47%
Subtotal of cash out-flow from
financing activity
2,000,000.00 -100.00%
Net cash flow from financing
activities
4,275,000.00 6,808,378.06 -37.21%
Net increased amount of cash
and cash equivalent
-10,414,518.35 -2,688,389.92 287.39%
Main reasons for y-o-y major changes in aspect of relevant data
√ Applicable □ Not applicable
1.Major changes in subtotal of cash out-flow from investment activity: mainly because purchased fixed assets in the period;
2.Major changes in subtotal of cash in-flow from financing activity: the bank acceptance draft issued by time deposit pledge reduced
in the period
Reasons of major difference between the cash flow of operation activity in report period and net profit of the Company
√ Applicable □ Not applicable
Some customers pay by bank acceptance draft in the period
III. Analysis of the non-main business
√ Applicable □ Not applicable
In RMB
Amount Ratio in total profit Note Whether be sustainable
Assets impairment 499,175.17 -6.40% Impairment provision N
Non-operation
revenue
6,259,839.85 -80.24%
Revenue of the assets
management ready for
proposed in reorganization
case
N
Non-operation 6,065,148.83 -77.74%
Expenditure of the assets
management ready for
N
21
expenditure proposed in reorganization
case
Credit impairment 2,533,065.87 32.47% Impairment provision N
IV. Assets and liability
1. Major changes of assets composition
Adjustment on the relevant items of financial statement at beginning of the year when implemented the new financial instrument
standards, new revenue standards and new leasing standards since 2019
□ Applicable √ Not applicable
In RMB
Year-end of 2019 Year-end of 2018
Ratio
changes
Note of major changes
Amount
Ratio in total
assets
Amount
Ratio in total
assets
Monetary fund 6,074,367.91 9.68% 18,488,886.26 25.24% -15.56%
Account
receivable
38,616,523.93 61.56% 29,007,509.02 39.60% 21.96%
Inventory 6,078,330.30 9.69% 2,386,603.94 3.26% 6.43%
Fix assets 4,191,503.33 6.68% 3,502,807.32 4.78% 1.90%
2. Assets and liability measured by fair value
□ Applicable √ Not applicable
3. Limited assets rights till end of the period
1.At the end of the current period, the total fixed output value included six suites of house properties at 7-20F
Lianxin JiaYuan, Luohu District, Shenzhen purchased in 2016, with original value of 2,959,824.00 Yuan, which
were affordable housing purchased from the Housing and Construction Bureau of Luohu District to provide to
enterprise talents for living. The contract stipulated that the purchasing enterprise is not allowed to conduct any
form of property rights transaction with any units or individual other than the government.
V. Investment
1. Overall situation
√ Applicable □ Not applicable
Investment in reporting period (Yuan)
Investment in the same period of last year
(Yuan)
Change scope
4,225,000.00 0.00 100.00%
22
2. The major equity investment obtained in the reporting period
√ Applicable □ Not applicable
In RMB
Name
of
investe
d
compan
y
Main
busines
s
Investm
ent
style
Investm
ent
amount
Shareh
olding
ratio
Capital
sources
Partner
s
Time
horizon
Product
type
Progres
s as at
balance
sheet
date
Anticip
ated
income
Profit/l
oss of
current
investm
ent
Litigati
on
issues
involve
d (Y/N)
Date of
disclos
ure (if
any)
Disclos
ure
index
(if any)
Shenzh
en
Xinsen
Jewelry
and
gold
Supply
Chain
Co.,
Ltd.
Jewelry
and
gold
supply
chain
Newly
establis
hed
4,225,0
00.00
65.00%
Owned
fund
Shenzh
en
Zuanki
nson
Jewelry
Co.,
Ltd.
20-year
Jewelry
and
gold
supply
chain
Comple
ted
172,60
2.06
172,60
2.06
N
2019-0
8-12
Found
more in
the
Notice
on
Investm
ent
Outside
(N.:
2019-0
16)
release
d on
appoint
ed
media
juchao
website
(http://
www.c
ninfo.c
om.cn)
dated
12 Aug.
2019
Total -- --
4,225,0
00.00
-- -- -- -- -- --
172,60
2.06
172,60
2.06
-- -- --
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
23
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
The company had no securities investment in the reporting period.
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period
5. Application of raised proceeds
□ Applicable √ Not applicable
The company had no application of raised proceeds in the reporting period.
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
VII. Analysis of main holding company and stock-jointly companies
√Applicable □ Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Company
name
Type
Main
business
Register
capital
Total assets Net assets
Operation
revenue
Operating
profit
Net profit
Shenzhen
Emmelle
Industry Co.,
Ltd.
Subsidiary
Sales of
bicycles and
spare parts
2000000
16,887,227.6
1
6,514,157.40
15,470,013.0
0
-2,232,714.4
7
-2,399,718.6
1
Shenzhen
Xinsen
Jewelry and
gold Supply
Subsidiary
Jewelry and
gold supply
chain
6500000 8,698,896.04 6,765,541.63 4,619,038.46 277,866.15 265,541.63
24
Chain Co.,
Ltd.
Particular about subsidiaries obtained or disposed in report period
√ Applicable □ Not applicable
Company name
The way of getting and treating subsidiary
in the reporting
Influence on overall product and
performance
Shenzhen Xinsen Jewelry and gold Supply
Chain Co., Ltd.
Invest and establish
Net profit attributable to parent company
has 172,602.06 yuan increased in the
period
Notes of holding and shareholding companies
1.The Company holds 70 percent equity of the Shenzhen Emmelle Industry Co., Ltd., the balance of minority equity at year-end
amounting to 1,954,247.22 Yuan.
2.The Company holds 65 percent equity of the Shenzhen Xinsen Jewelry and gold Supply Chain Co., Ltd., the balance of minority
equity at year-end amounting to 2,367,939.57 Yuan.
VIII. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Future Development Prospects
1. Development trend of the industry the Company operates in and market competition pattern it deals with:
As a sector in the traditional manufacturing field, the bicycle industry continued the dilemma of rise in labor costs,
manufacturing costs, capital costs, and material costs. In April 2019, the implementation of the new national
standard of safety technical specifications for electric bicycles accelerated the industry reshuffle and resulted a
new round of industry shock. In addition, in the past two years, the bike sharing has been violently oscillating the
bicycle industry and the upstream supply chain operations with capital advantages, due to the lack of profit model
and capital chain problems, its aftershocks continue to rattle the industry’s recovery. At the same time, as a
traditional manufacturing industry, the bicycle industry also ushered in the “Made in China 2025” strategy, under
the guidance of the basic principles of “Innovation Driven, Quality First, Green Development, Structure
Optimization, and Talent Based”, took the important opportunity to speed up the transformation and upgrading,
ushered in the development opportunity of the implementation of the new national standards for electric bicycles,
and also faced with the important challenges of e-commerce development impacts on channels, channel
integration and Internet+. China has the world’s largest production and marketing of electric bicycles, after years
of development, electric bicycles have gradually become an important means of transportation for consumers on
everyday short-distance trips, at present, there are about 200 million bicycles in the entire society. Structural body,
motor, power battery, and control system are the core components of electric bicycles, CBC has been closely
following up the research on their technological development, application development, and commercial value for
25
a long period of time, and has determined the qualified suppliers for core components year by year. As one of the
core components of electric bicycle, power batteries have been mainly lead-acid batteries in the past decade or
two, with the development and popularization of new energy technologies and new energy materials, it is
expected to be replaced by the lithium batteries in the future. The implementation of the new national standard for
electric bicycle safety technical specifications has comprehensively improved the safety performance of electric
bicycles, and adjusted and improved technical indicators such as speed limits, vehicle quality, and pedaling ability.
The new standard is close to people’s livelihood and serving people’s livelihood, which improved the application
space of lithium battery energy storage, and the lithium battery electric bicycle is ushering in a new stage of
development.
In the gold and jewelry industry, in the context of China’s sustained rapid economic growth and rising per capita
income levels, in addition to meeting the need for keeping the value, the jewelry consumption is also a
requirement for people to pursue fashion and show personality. At present, China is one of the world’s largest,
most important, and fastest-growing jewellery markets, the consumption of many jewellery categories ranks in the
forefront of the world, among which the sales of gold, silver, platinum, jade, pearls and other products rank first in
the world. China’s jewelry gold industry market has formed a three-legged pattern of domestic, Hong Kong and
foreign brands, and the market shares continue to be concentrated. At present, China’s per capita jewelry
consumption is still far lower than that of developed countries, and our jewelry gold consumption market still has
a lot of room for improvement, but the market competition is fierce. In August 2019, the company invested in the
establishment of a holding subsidiary, Shenzhen Xinsen Jewelry and Gold Supply Chain Co., Ltd., and began to
get involved in the jewelry gold supply chain business.
2. Future development opportunity and new yearly business plan of the Company:
With the fierce market competition, new development opportunities are also formed. At the end of 2013, the
Company completed the implementation of its restructuring plan and concluded its bankruptcy procedure, thereby
improving the legal environment its business faces with. On the basis of business work over the past few years,
the business plan of the Company for 2020is:
(1) Continue to actively cooperate with shareholders and the board of directors to promote the reorganization of
the company and promote the planning of non-public offering of shares.
(2) Reform and improve the internal management mechanism, decompose and implement the company's annual
task to each Distribution Company and regional manager, take the manager responsibility system, follow p month
by month, and roll the assessment.
(3) Strengthen the development of 3C-certified electric bicycles, mid-to-high-end bicycles and children bicycles,
and strengthen the development and promotion of mid-to-high-end bicycles accessories and intelligent accessories.
Strictly implement the access and exit mechanism for OEM factories and suppliers, strictly control the quality,
and carry out personnel supplement and personnel training according to plan.
(4) In terms of the bicycle traditional mode business, the company endeavored to maintain the traditional business,
26
kept a close eye on the largest customers of the first echelon, focused on expanding the second echelon customers,
actively promoted the expansion of its distribution network terminal construction, further expanded new markets,
and supported new customer businesses; through the cooperation with the government procurement information
center, increased the follow-up work on group purchase orders; according to the new characteristics of market
demand, we will actively promote the change of electric bicycles jointly with dealers, and organize some special
competitions through the club to publicize and promote the brand.
(5) In aspect of e-commerce retailing: based on the e-commerce work of last year, further train the company’s
e-commerce team, strive to improve the EMMELLE flagship store sales capabilities on all e-commerce platforms
and the brand publicity coverage effects, improve the company's official website mall and WeChat mall, expand
the brand influence, promote the faster growth of network sales business. Improve the supporting work of offline
business, bring the traditional network dealers, physical stores and OEM plants into the offline supporting system
of e-commerce business by reforming the mechanisms and sharing the benefits. In terms of channel construction,
we strive to extend product sales to villages and towns through the rural taobao e-commerce platform.
(6)In terms of the lithium battery materials business, in 2020, we will increase the business development force,
forge talent teams, enrich product lines, develop new customers, promote the new technology applications and
increase investment in new product development.
(7) Regarding the jewelry gold supply chain business, in 2020, the company will actively expand and integrate the
jewelry supply chain in procurement channels, sales channels, and marketing resources, and lay out with the Pearl
River Delta as an important area of the jewelry supply chain business.
(8) Strengthen the background management and office automation, and improve the support degree of background
departments to front desk business.
3. Risk factors adverse to the Company’s development:
(1)The tough international economic situation: The domestic economy is at the structural adjustment stage in the
course of development, structural problems and deep-seated conflicts are highlighted. The economic downturn
pressure continues to increase, many unstable and uncertain factors exist, which affect and impact the traditional
manufacturing industries and the social consumption structure demand. Since the domestic economy is at the
structural adjustment stage, coupled with a difficult situation of continuously rising labor cost, manufacturing cost,
financing cost and material cost the bicycle industry as a conventional manufacturing field recorded a decline in
the market turnover. Due to the low entry threshold and numerous manufacturers, the competition in the market is
extremely fierce.
(2) In early 2020, in order to combat the COVID-19 epidemic and its influence, the social economy entered a
special dilemma, operation of the Company has been blocked, upstream and downstream supply and sales links
have been blocked.
In the fave of the above problems, the central government and governments at all levels have taken multiple
measures to stabilize the people’s livelihood, stabilize the enterprises and employment, the Company will strive to
maintain stability and seek development through increase the income and reduce the expenditures. In 2019,
27
combined with the actual situation on its own poor background after reorganization, on the one hand, the company
adhered to taking the development of traditional business model as the principle, carry out new products research
and development according to the new national standards, optimized and adjusted product structure and sales
model transformation, actively expanded the e-commerce business model and realized the favorable operation of
the e-commerce retail business according to the e-commerce transformation of business team and the cost
controllable mode of external contact and cooperation and internal guidance. And continues to expanding the
lithium battery material business, rich the main business; On the basis of the establishment of a holding subsidiary
in 2019 and the newly launched jewelry gold supply chain business, according to the actual situation of business
development, in February 2020, it was decided to increase the capital of Shenzhen Xinsen Jewelry Gold Supply
Chain Co., Ltd. to the same proportion to 20 million yuan to expand the business. On the one hand, it strives to
promote the selection of the company’s restructuring party and plans to promote the non-public offering of shares,
hoping to improve the company’s operating strength and development potential.
X. Reception of research, communication and interview
1. In the report period, reception of research, communication and interview
√ Applicable □ Not applicable
Time Way Type Basic situation index of investigation
Jan.-Mar. 2019 Telephone communication Individual
Consulting company restructuring
problem
Apr.- Jun. 2019 Telephone communication Individual Inquiry progress of the private placement
Jul.- Sept. 2019 Telephone communication Individual
Consulting company restructuring
problem
Oct.-Dec. 2019 Telephone communication Individual Inquiry progress of the private placement
Reception (times) 10
Number of hospitality 0
Number of individual reception 10
Number of other reception 0
Disclosed, released or let out major undisclosed
information
N
28
Section V. Important Events
I. Profit distribution plan of common stock and capitalizing of common reserves plan
Formulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash Dividend policy during
the Reporting Period
□ Applicable √ Not applicable
Profit distribution plan (pre-plan) of common stock and capitalizing of common reserves plan (pre-plan) in latest three years
(including the reporting period)
Cash dividend of common stock in latest three years (including the reporting period)
In RMB
Year for bonus
shares
Amount for
cash bonus (tax
included)
Net profit
attributable to
common stock
shareholders of
listed company
in
consolidation
statement for
bonus year
Ratio of the
cash bonus in
net profit
attributable to
common stock
shareholders of
listed company
contained in
consolidation
statement
Proportion for
cash bonus by
other ways(i.e.
share
buy-backs)
Ratio of the
cash bonus by
other ways in
net profit
attributable to
common stock
shareholders of
listed company
contained in
consolidation
statement
Total cash
bonus
(including
other ways)
Ratio of the
total cash
bonus (other
ways included)
in net profit
attributable to
common stock
shareholders of
listed company
contained in
consolidation
statement
2019 0.00 -7,186,905.64 0.00% 0.00 0.00% 0.00 0.00%
2018 0.00 -1,591,968.91 0.00% 0.00 0.00% 0.00 0.00%
2017 0.00 1,529,587.27 0.00% 0.00 0.00% 0.00 0.00%
The Company gains profits in reporting period and the retained profit of common stock shareholders provided by parent company is
positive but no plan of cash dividend proposed of common stock
□ Applicable √ Not applicable
II. Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for
the year.
29
III. Implementation of commitment
1. Commitments completed in Period and those without completed till end of the Period from actual
controller, shareholders, related parties, purchaser and companies
□ Applicable √ Not applicable
The Company has no commitments completed in Period and those without completed till end of the Period from actual controller,
shareholders, related parties, purchaser and companies
2. Concerning assets or project of the Company, which has profit forecast, and reporting period still in
forecasting period, explain reasons of reaching the original profit forecast
□ Applicable √ Not applicable
IV. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors
(if applicable) for “Qualified Opinion” that issued by CPA
√ Applicable □ Not applicable
On 11
th
, May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng Energy
Investment and Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming
the Company as the Company couldn’t pay off the matured debts and was seriously insolvent. On 12
th
, Oct., 2012,
Shenzhen Municipal Intermediate People's Court ruled to accept the application proposed by Guosheng Energy
according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. In late October, 2012, Shenzhen
Municipal Intermediate People's Court ruled to reform the Company since 25
th
, Oct., 2012 according to (2012)
Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen) Mallesons and
Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. At the same time, Shenzhen
Municipal Intermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1 written decision,
and approved the Company to manage property and business affairs by itself under the supervision of custodians
according to the law. On 5 November 2013, the Shenzhen Intermediate People’s Court (2012) Shen Zhong Fa Po
Zi No. 30-6 Civil Ruling Paper judged that approved the reorganization plan of the Company. On 27 December
2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012) Shen Zhong Fa Po Zi No. 30-10 ruled
that the reorganization plan of CBC was completed and bankruptcy procedures of CBC closed down.
The Company has solved the debt problem by reforming, realized the net assets with positive value, the main
business of bicycle is able to be maintained and realizes the stable development. The Company has set up the
conditions for introducing the recombination party in the reforming plan, and expects to restore the abilities of
sustainable operation and sustained profitability by reorganization. The conditions of introducing the
30
recombination party includes: the assessed value of net assets should be no less than 2 billion Yuan, the net assets
in the same year for implementing the major reorganization should be no less than 200 million Yuan. The
Company doesn’t have the recombination party at the moment. The Company will continue to carry out vary
related works actively and promote the reorganization work with all efforts.
VI. Particulars about the changes in aspect of accounting policy, estimates and calculation
method compared with the financial report of last year
√ Applicable □ Not applicable
1.Change of accounting policy
(1) On 30 April 2019, the Ministry of Finance issued the Notice on Revision and Issuance of 2019 Financial
Statement Format for General Corporate (Cai Kuai [2019] No.6), format of the financial statement has been
revised. The Revision and Issued of 2018 Financial Statement Format for General Corporate (Cai Kuai [2018]
No.15) repeal at the same time. Main impact are as:
Content and reasons for accounting policy changes Item and amount impacted
”Note receivable and account receivable” is divide into Account
receivable and Note receivable for presentation
In consolidate balance sheet, the note receivable at end of 2019
recorded as 580,000.00 yuan, account receivable recorded as
38,616,523.93 yuan; note receivable at end of 2018 recorded as
0.00 yuan and account receivable recorded as 29,007,509.02 yuan.
In balance sheet of parent company, the note receivable at end of
2019 recorded as 580,000.00 yuan, account receivable recorded as
32,843,536.70 yuan; note receivable at end of 2018 recorded as
0.00 yuan and account receivable recorded as 12,827,954.16 yuan
”Note payable and account payable” is divide into Account
payable and Note payable for presentation
In consolidate balance sheet, the note payable at end of 2019
recorded as 0.00 yuan, account payable recorded as 10,191,385.23
yuan; note payable at end of 2018 recorded as 2,000,000.00 yuan
and account payable recorded as 9,979,010.69 yuan
In balance sheet of parent company, the note payable at end of
2019 recorded as 0.00 yuan, account payable recorded as
9,002,524.60 yuan; note payable at end of 2018 recorded as 0.00
yuan and account payable recorded as 0.00 yuan
”Less: Loss of assets impairment” adjusted to “Add: Loss of assets
impairment (Loss is listed with “-”)”
In consolidate profit statement, the loss of assets impairment for
2019 recorded as -499,175.17 yuan while recorded as
-1,200,526.41 yuan for year of 2018.
In profit statement of the parent company, the loss of assets
impairment for 2019 recorded as 0.00 yuan while recorded as
14,209.76 yuan for year of 2018.
The government grants actually received by the enterprise, are In consolidate cash flow statement, the government grants
31
listed under the item of “Cash received from other operating
activities” whether it is related to assets or income.
reckoned in “Cash received from other operating activities” for
year of 2019 recorded as 0.00 yuan while recorded as 0.00 yuan for
year of 2018.
In cash flow statement of parent company, the government grants
reckoned in “Cash received from other operating activities” for
year of 2019 recorded as 0.00 yuan while recorded as 0.00 yuan for
year of 2018.
(2) Change of classification and measurement of financial instrument
In 2017, the Ministry of Finance revised the Accounting Standards for Business Enterprise No. 22- Recognition
and Measurement of Financial Instruments, Accounting Standards for Business Enterprise No. 23- Transfer of
Financial Assets, Accounting Standards for Business Enterprise No. 24- Hedge Accounting and Accounting
Standards for Business Enterprise No. 37- Presentation of Financial Instruments. The above mentioned standards
are implemented since 1 Jan. 2019. according to the standards, for financial instruments that have not been
recognized as of the date of implementation, if the previous recognition and measurement are inconsistent with
the requirements of the revised standards, the amount of retained earnings at the beginning of the year and other
relevant items in the financial statements shall be adjusted according to the cumulative impact number, and the
information of the comparable period shall not be adjusted. Main impacts are as:
Content and reasons for accounting policy changes Item and amount impacted
When implemented the new financial instrument standard, the
financial assets debt instrument measured by fair value and with
variation reckoned into current gains/losses will listed under the
item of “Trading financial assets”
No impact on the financial statement while implemented the new
standards
When implemented the new financial instrument standard, the bad
debt loss accrual from account receivable and other account
receivable will listed under the item of “Credit impairment loss
(loss is listed with”-”)”
Credit impairment loss in consolidate profit statement for year of
2019 recorded as -2,533,065.87 yuan.
Credit impairment loss in profit statement of the parent company
for year of 2019 recorded as -2,150,073.55 yuan.
(3) On 7 December 2018, the Ministry of Finance issued the Notice on Revised Accounting Standards for
Business Enterprise No.21- Lease (Cai Kuai [2018]No.35). according to the cumulative impact, the retained
earnings at beginning of the year and other relevant items in the financial statement of the lease liability of the
right to use assets shall be adjusted, and the information of the comparable period shall not be adjusted. No impact
on the financial statement while implemented the new standards.
(4) On 9 May 2019, the Ministry of Finance issued the Notice on Revised Accounting Standards for Business
Enterprise No.7- Non-monetary assets exchange (Cai Kuai [2019]No.8), the exchange of non-monetary assets
between the implementation date of this standard on 1 Jan. 2019 (solstice) shall be adjusted according to the
standard. The exchange of non-monetary assets incurred before 1 Jan. 2019 shall not be adjusted retroactively. No
impact on the financial statement while implemented the new standards.
32
VII. Major accounting errors within reporting period that needs retrospective restatement
□ Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
VIII. Compare with last year’s financial report; explain changes in consolidation statement’s
scope
√ Applicable □ Not applicable
In August 2019, the Company and Shenzhen Zuankinson Jewelry Co., Ltd jointly established a Shenzhen Xinsen
Jewelry and Gold Supply Chain Co., ltd. Of which, the Company holds 65% equity, while 35% equity held by
Shenzhen Zuankinson Jewelry Co., Ltd, the enterprise was included in the consolidate scope since establishment.
IX. Appointment and non-reappointment (dismissal) of CPA
Accounting firm appointed
Name of domestic accounting firm Baker Tilly China CPA (LLP)
Remuneration for domestic accounting firm (in 10 thousand
Yuan)
45
Continuous life of auditing service for domestic accounting firm 4
Name of domestic CPA Chen Zhigang, Zhang Lei
Continuous life of auditing service for domestic accounting firm 4
Re-appointed accounting firms in this period
□ Yes √No
Appointment of internal control auditing accounting firm, financial consultant or sponsor
√ Applicable □ Not applicable
In the year, the Company engaged Baker Tilly China CPA (LLP) as the auditing organ for internal control of the Company for year of
2019, charges amounted as 150,000 Yuan. In 2016, Dongwu Securities are appointed as the finance consultant of the Company for
privately placement of shares, relevant works are still in promotion in the year.
X. Particular about suspended and delisting after annual report disclosed
□ Applicable √ Not applicable
XI. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period.
33
XII. Significant lawsuits and arbitration of the Company
□Applicable √Not applicable
No significant lawsuits and arbitration occurred in the reporting period.
XIII. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
XIV. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XV. Implementation of the company’s stock incentive plan, employee stock ownership plan or
other employee incentives
□ Applicable √ Not applicable
The Company had no implementation of the company’s stock incentive plan, employee stock ownership plan or other employee
incentives in the reporting period.
XVI. Major related transaction
1. Related transaction with routine operation concerned
√ Applicable □ Not applicable
Related
party
Relation
ship
Type of
related
transacti
on
Content
of
related
transacti
on
Pricing
principl
e
Related
transacti
on price
Related
transacti
on
amount
(in 10
thousan
d Yuan)
Proporti
on in
similar
transacti
ons
Trading
limit
approve
d (in 10
thousan
d Yuan)
Whethe
r over
the
approve
d
limited
or not
(Y/N)
Clearin
g form
for
related
transacti
on
Availabl
e
similar
market
price
Date of
disclosu
re
Index
of
disclos
ure
Shenzhen
Zuankins
on
Jewelry
and gold
supply
chain Co.,
Ltd.
35%
sharehol
ders of
the
Compan
y’s
controll
ed
subsidia
ries
Related
Transact
ion
with
day-to-
day
operati
on
concer
ned
Procure
ment of
raw
material
s, sales
of goods
In
accorda
nce with
the
principl
e of
fairness
and
justice,
the
Market
price
272.98 59.10% 1,000 N
Cash
settleme
nt
272.98
2019-12
-17
Notice
on
Forecas
t of
Day-to-
day
Related
Transac
tions
(No.:
34
market
price as
the
basis for
pricing
201902
2)
Total -- -- 272.98 -- 1,000 -- -- -- -- --
Detail of sales return with major
amount involved
N/A
Report the actual implementation of
the daily related transactions which
were projected about their total
amount by types during the reporting
period (if applicable)
272.98 million yuan
Reasons for major differences
between trading price and market
reference price
N/A
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related 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
Whether exist non-operating contact of related credit and debt or not
√Yes □No
Claim receivable from related party
Related
party
Relationshi
p
Causes of
formation
Whether
has
non-busines
s capital
occupying
or not
Balance at
period-begi
n(10
thousand
Yuan)
Current
newly
added(10
thousand
Yuan)
Current
recovery(10
thousand
Yuan)
Interest rate
Current
interest(10
thousand
Yuan)
Balance at
period-end(1
0 thousand
Yuan)
Shenzhen
Zuankinson
Jewelry and
35%
shareholder
s of the
Procuremen
t of raw
materials,
N 0 272.98 242.8 0.00% 0 30.18
35
gold supply
chain Co.,
Ltd.
Company’s
controlled
subsidiaries
sales of
goods
Influence on operation
result and financial
statue of the Company
from related credit
No influence
Debts payable to related party
Related party Relationship
Causes of
formation
Balance at
period-begin(
10 thousand
Yuan)
Current
newly
added(10
thousand
Yuan)
Current
recovery
(10 thousand
Yuan)
Interest rate
Current
interest(10
thousand
Yuan)
Balance at
period-end(10
thousand
Yuan)
Shenzhen
Guosheng
Energy
Investment
Development
Co., Ltd.
Large
shareholder
Subsidiary
Emmelle
loan
650 0 0 0.00% 0 650
Influence on operation result
and financial statue of the
Company from related debts
No influence
5. Other related transactions
□ Applicable √ Not applicable
The company had no other significant related transactions in reporting period.
XVII. Significant contract and implementations
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.
36
(3) Leasing
□ Applicable √ Not applicable
No leasing for the Company in reporting period.
2. Major guarantees
□ Applicable √ Not applicable
No guarantee for the Company in reporting period.
3. Entrust others to cash asset management
(1) Trust financing
□ Applicable √ Not applicable
No trust financing for the Company in reporting period.
(2) Entrusted loans
□ Applicable √ Not applicable
The company had no entrusted loans in the reporting period.
4. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in reporting period.
XVIII. Social responsibility
1. Performance of social responsibility
Nil
2. Execution of social responsibility of targeted poverty alleviation
(1) Targeted poverty alleviation
Nil
(2) Summary of annual precision poverty alleviation
Nil
37
(3)Accuracy of poverty alleviation
Target Measurement units Numbers/progress
I. general condition —— ——
II. Implemented by detail —— ——
1. Industrial development poverty —— ——
2.Transfer employment —— ——
3. Anti-poverty by relocating in other places —— ——
4. Education poverty —— ——
5. Health poverty alleviation —— ——
6. Ecological conservation —— ——
7. Fallback protection —— ——
8. Social poverty alleviation —— ——
9. Other —— ——
III. Awards (content and level) —— ——
(4) Subsequent precision poverty alleviation program
Nil
3. Environmental protection
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental Protection
No
Nil
XIX. Explanation on other significant events
√ Applicable □ Not applicable
1.Planning of non-public issue of shares
In July 2016, the Company started to plan a non-public issue of shares with proceeds to be utilized to acquire
material assets. The Plan on Non-public Issue of A shares in 2016 was considered and approved by the Board of
the Company. Based on the due diligence, audit, assessment and business negation with intermediates, taking into
account the conditions of capital market and actual conditions of the Company, the Board of the Company
considered and approved the Proposal Relating to Adjusting the Plan of non-public of A Shares, the Explanation
on non-public of A-shares for year of 2016 Amendment, the Plan on Non-public Issue of A shares in 2016
(amended), the Plan on Non-public Issue of A shares in 2016 (Second Amended) and Plan on Non-public Issue of
A shares in 2016 (Third Amended) from February 2017 to February 2018. According to the three revised drafts,
the number of non-public offering of shares should not exceed 110,269,586 shares, and the total amount of funds
38
raised should not exceed 750 million Yuan. The total amount of raised funds for this non-public offering should
not exceed RMB 750 million, will be used for the following projects after deducting the issuance expenses: 1.
RMB 680 million of funds for “online and offline marketing network platform construction and upgrading
project”; 2. RMB 70 million of funds for “R & D center construction project”. The issuing objects of this
non-public offering include four specific investors which are Ruian Information, Zhisheng High-tech, Wansheng
Industry and Beier High-tech. The subscription amount of Ruian Information does not exceed 250 million Yuan,
and the number of subscribed shares does not exceed 36,756,529 shares; the subscription amount of Zhisheng
High-tech does not exceed 200 million Yuan, and the number of subscribed shares does not exceed 29,405,223
shares; the subscription amount of Wansheng Industry and Beier High-tech respectively does not exceed 150
million Yuan, and the number of subscribed shares does not exceed 22,053,917 shares respectively.
On April 21, 2020, the company convened the 19
th
(provisional) board meeting of the tenth session of the board of
directors, and reviewed and approved the “Proposal on the Termination of Agreement for Signing a Conditional
Share Subscription Agreement (Second Revision) with the Original Subscription Object” and the “Proposal on the
Plan for Non-public Issuance of A Shares of Shenzhen China Bicycle Company (Holdings) Limited”, etc. The
company terminated the non-public offering of shares of 2016 and launched the plan for non-public issuance of A
shares in 2020, and planned to raise funds with total amount not exceeding RMB 450 million by non-public
offering of shares to 5 specific investors, i.e. Wansheng Industrial Holdings (Shenzhen) Co., Ltd., Fuzhou
Zuankinson Jewelry Co., Ltd., Shenzhen Yilian Jinchuang Technology Co., Ltd., Shenzhen Hualinglong Jewelry
Co., Ltd., and Shenzhen Jindaogu Jewelry Co., Ltd., all raised funds will be used to supplement working
capital after deducting the issuance expenses. The non-public offering plan still needs to be approved by the
company’s shareholders’ meeting and the China Securities Regulatory Commission. Relevant work is in progress.
2. Outside investment to established a controlling subsidiary
On 12 August 2019, the Proposal of Investment to Established a Controlling Subsidiary was deliberated and
approved by the 14
th
session (interim) of 10
th
BOD, agreed that the Company and Shenzhen Zuankinson Jewelry
Co., Ltd jointly established the Shenzhen Xinsen Jewelry and Gold Supply Chain Co., ltd., of which, the
Company contributed 4.225 million yuan with 65% equity of Shenzhen Xinsen Jewelry and Gold Supply Chain
Co., ltd held, and comes to the controlling shareholder of Shenzhen Xinsen Jewelry and Gold Supply Chain Co.,
ltd; Zuankinson invested 2.275 million yuan with 35% equity of Shenzhen Xinsen Jewelry and gold Supply Chain
Co., Ltd held.
On 19 Feb. 2020, the Proposal on Increasing Capital to Controlling Subsidiary was deliberated and approved by
18
th
Session (interim) of 10
th
BOD, agreed that the Company and counter party- Shenzhen Zuankinson Jewelry
Co., Ltd to increase the capital of Shenzhen Xinsen Jewelry and Gold Supply Chain Co., ltd in the same
proportion. Of which, 8.775 million yuan increased by the Company while Shenzhen Zuankinson Jewelry Co.,
Ltd increased 4.725 yuan. After capital increased, shareholding of the two parties are remain the same, the
Company still is the controlling shareholder of Shenzhen Xinsen Jewelry and gold Supply Chain Co., Ltd.
39
XX. Significant event of subsidiary of the Company
□ Applicable √ Not applicable
深圳中华自行车(集团)股份有限公司 2019年年度报告全文
40
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
Amount
Proporti
on
New
shares
issued
Bonus
shares
Capitaliz
ation of
public
reserve
Others Subtotal Amount
Proportio
n
I. Restricted shares 3,957 0.00% 3,957 0.00%
1. State-owned shares 0 0.00% 0 0.00%
2. State-owned legal person’s
shares
0 0.00% 0 0.00%
3. Other domestic shares 3,957 0.00% 3,957 0.00%
Including: Domestic legal
person’s shares
0 0.00% 0 0.00%
Domestic natural person’s
shares
3,957 0.00% 3,957 0.00%
4. Foreign shares 0 0.00% 0 0.00%
Including: Foreign legal
person’s shares
0 0.00% 0 0.00%
Foreign natural person’s
shares
0 0.00% 0 0.00%
II. Unrestricted shares 551,343,990 100.00% 551,343,990 100.00%
1. RMB Ordinary shares 302,981,008 54.95% 302,981,008 54.95%
2. Domestically listed foreign
shares
248,362,982 45.05% 248,362,982 45.05%
3. Overseas listed foreign
shares
0 0.00% 0 0.00%
4. Others 0 0.00% 0 0.00%
III. Total shares 551,347,947 100.00% 551,347,947 100.00%
Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
深圳中华自行车(集团)股份有限公司 2019年年度报告全文
41
Ownership transfer of share changed
□ Applicable √ Not applicable
Progress of shares buy-back
□Applicable √Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of restricted shares
□ Applicable √ Not applicable
II. Securities issuance 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. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
In Share
Total common
stock
shareholders in
reporting
period-end
50,884
Total common
stock
shareholders at
end of last month
before annual
report disclosed
49,779
Total preference
shareholders with
voting rights
recovered at end of
reporting period (if
applicable) (found
in note 8)
0
Total preference
shareholders
with voting
rights recovered
at end of last
month before
annual report
0
深圳中华自行车(集团)股份有限公司 2019年年度报告全文
42
disclosed (if
applicable)
(found in note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Full name of
Shareholders
Nature of
shareholder
Proportio
n of
shares
held
Total
sharehold
ers at the
end of
report
period
Changes
in report
period
Amount
of
restricted
shares
held
Amount
of
un-restrict
ed shares
held
Number of share pledged/frozen
State of share Amount
Shenzhen
Guosheng Energy
Investment
Development Co.,
Ltd.
Domestic
non-State-owned
legal person
11.52%
63,508,74
7
0.00 0
63,508,74
7
0
UOB Koy Hian
(Hong Kong) Co.,
Ltd.
Foreign legal
person
2.89%
15,907,85
0
0.00 0
15,907,85
0
0
Guosen Securities
(Hong Kong)
brokerage Co., Ltd.
Foreign legal
person
2.52%
13,909,42
5
0.00 0
13,909,42
5
0
Shenwan
Hongyuan
Securities (Hong
Kong) Co., Ltd.
Foreign legal
person
1.20% 6,626,116 -5,000.00 0 6,626,116 0
Li Huili
Domestic nature
person
0.71% 3,891,124 0.00 0 3,891,124 0
Xu Hongbo
Domestic nature
person
0.58% 3,187,419 50,000 0 3,187,419 0
CMS Hong Kong
Co., Ltd
State-owned legal
person
0.54% 2,958,688 -98,664 0 2,958,688 0
Ge Zhiqiong
Domestic nature
person
0.52% 2,861,552
664,736.0
0
0 2,861,552 0
Special Account
for Property
Disposal of
Bankrupt
Enterprise of CBC
Domestic
non-State-owned
legal person
0.47% 2,602,402 0.00 0 2,602,402 0
Zhuorun
Technology Co.,
Ltd.
Foreign legal
person
0.36% 2,000,000 0.00 0 2,000,000 0
深圳中华自行车(集团)股份有限公司 2019年年度报告全文
43
Strategy investors or general
corporation comes top 10 common
stock shareholders due to rights issue
(if applicable) (see note 3)
N/A
Explanation on associated relationship
among the aforesaid shareholders
Li Huili, spouse of the Ji Hanfei, the actual controller of he Company- Shenzhen Guosheng
Energy Investment Development Co., Ltd., holding B-share of the Company on behalf of
Shenzhen Guosheng Energy Investment Development Co., Ltd., beyond that, the Company
has no idea of whether other circulated shareholders belong to concerted action persons
ruled in the Administration Norms for Information Disclosure of Change on Shareholding
of Shareholders of Listed Companies.
Particular about top ten shareholders with un-restrict shares held
Shareholders’ name Amount of un-restrict shares held at Period-end
Type of shares
Type Amount
Shenzhen Guosheng Energy
Investment Development Co., Ltd.
63,508,747
RMB common
shares
63,508,747
UOB Koy Hian (Hong Kong) Co., Ltd. 15,907,850
Domestically
listed foreign
shares
15,907,850
Guosen Securities (Hong Kong)
brokerage Co., Ltd.
13,909,425
Domestically
listed foreign
shares
13,909,425
Shenwan Hongyuan Securities (Hong
Kong) Co., Ltd.
6,626,116
Domestically
listed foreign
shares
6,626,116
Li Huili 3,891,124
Domestically
listed foreign
shares
3,891,124
Xu Hongbo 3,187,419
Domestically
listed foreign
shares
3,187,419
CMS Hong Kong Co., Ltd 2,958,688
Domestically
listed foreign
shares
2,958,688
Ge Zhiqiong 2,861,552
RMB common
shares
374,900
Domestically
listed foreign
shares
2,486,652
Special Account for Property Disposal
of Bankrupt Enterprise of CBC
2,602,402
RMB common
shares
1,383,313
深圳中华自行车(集团)股份有限公司 2019年年度报告全文
44
Domestically
listed foreign
shares
1,219,089
Zhuorun Technology Co., Ltd. 2,000,000
RMB common
shares
2,000,000
Expiation on associated relationship or
consistent actors within the top 10
un-restrict shareholders and between
top 10 un-restrict shareholders and top
10 shareholders
Li Huili, spouse of the Ji Hanfei, the actual controller of he Company- Shenzhen Guosheng
Energy Investment Development Co., Ltd., holding B-share of the Company on behalf of
Shenzhen Guosheng Energy Investment Development Co., Ltd., beyond that, the Company
has no idea of whether other circulated shareholders belong to concerted action persons
ruled in the Administration Norms for Information Disclosure of Change on Shareholding
of Shareholders of Listed Companies.
Explanation on top 10 shareholders
involving margin business (if
applicable) (see note 4)
N/A
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 shareholder of the Company
Nature of controlling shareholders: No controlling subject
Type of controlling shareholders: Non-existent
The Company does not have the controlling shareholder.
On 21 February 2017, we received a Letter of “Explanation on Relevant Event of CBC” from Shenzhen Guosheng
Energy Investment Development Co., Ltd. the letter said: since obtained controlling rights of the Shenzhen
Guosheng Energy Investment Development Co., Ltd. (hereinafter referred to as Guosheng Energy) on 3 Jan. 2011,
in view of Ji Hanfei is the first majority shareholder and largest creditor of CBC, and CBC facing a serious debt
crisis, Ji Hanfei initiative seeking an actual controller of CBC, by actively participate the shareholders general
meeting of CBC, showing major influence on CBC for achieving actually controls of the Company in purpose of
resolving the debt crisis.
On 11
th
, May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng Energy
Investment and Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming
the Company as the Company couldn’t pay off the matured debts and was seriously insolvent. On 12
th
, Oct., 2012,
Shenzhen Municipal Intermediate People's Court ruled to accept the application proposed by Guosheng Energy
according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. In second half year of 2013, on the
basis of the investor interest adjustment scheme deliberated and approved by creditor’s meeting and investors’
conference, Shenzhen Intermediate People’s Court approved the reorganization plan for CBC, the reorganization
深圳中华自行车(集团)股份有限公司 2019年年度报告全文
45
plan of CBC completed on 27 December 2013 and close the bankruptcy proceedings of CBC. As a largest
majority shareholder and largest creditor of the Company, Guosheng Energy vote in favor on creditor’s meeting
and investors’ conference, in respect of the investor interest adjustment scheme, and provided 5.39 million Yuan to
CBC for claims settlement and maintain the assets of main business of CBC. Debts of the CBC solved by
reorganization, net assets of CBC turns to positive value, the main business of bicycle maintained and achieved a
steady development.
Currently, CBC is planning a private placement for business promotion and transformation, optimize asset
structure, further to strengthen the Company and sustainable ability in development. Taking into account the debt
problem of CBC has been resolved, the Company needs supports from all over the shareholders, and based on the
actual condition of development of Guosheng Energy and share-holding ratio, Ji Hanfei and Guosheng Energy
decided to change the actually controller state to general investment, that is Ji Hanfei and Guosheng Energy, will
not participate in the operation management plan of CBC in future, and they have no plans to seeking an actual
controlling rights of CBC in next 12 months either
The Shenzhen Guosheng Energy Investment Development will hold stock of the CBC and exercise shareholders’
rights as a common investor.
Changes of controlling shareholders in reporting period
□Applicable √Not applicable
Controlling shareholders of the Company has no changes in the period.
3. Actual controller and persons acting in concert of the Company
Nature of actual controller: No actual controller
Type of actual controller: Non-existent
The company does not have the actual controller.
(I) Facts and reasons for the company's determination of the actual controller's alteration
On February 20, 2017, Ji Hanfei and Guosheng Energy made an “Explanation” to abandon the actual control of
the Company, after Ji Hanfei made the declaration to abandon the actual control of the Company, the actual
controller of the Company changed from Ji Hanfei to no actual control, the specific facts and reasons are as
follows:
1. The voting rights of Ji Hanfei to actually control the shares of the Company
According to the “Security Holder Roster” issued by China Securities Depository and Clearing Co., Ltd.,
Shenzhen Branch and the documents publicly disclosed by Shenzhen China Bicycle, up to December 31, 2016, Ji
Hanfei held 63,508,747 shares of the Company’s A-Shares through Guosheng Energy, and his spouse, Li Huili,
held 3,891,124 shares of the Company’s B-Shares, so Ji Hanfei totally controlled 67,399,871 shares of the
Company’s voting shares, accounting for 12.22% of the total number of shares of the Company. Ji Hanfei actually
controlled no more than 30.00% of the Company’s voting rights and had no control over the Company's general
meeting of shareholders.
深圳中华自行车(集团)股份有限公司 2019年年度报告全文
46
2. Ji Hanfei’s control to the Company's board of directors
According to the Resolution Announcement of the 18
th
session of 8
th
Board of Directors and the Resolution
Announcement of the First Extraordinary General Meeting of 2013 publicly disclosed by the Company and
confirmed by the Company and Guosheng Energy, the directors of the current board of directors of the Company
should be nominated by the eighth session of board of directors, Guosheng Energy did not nominate the current
board of directors for the Company.
Therefore, Ji Hanfei has not restructured the board of directors of the Company by controlling the Company’s
voting shares after obtaining the control power of Guosheng Energy, and has not actually dominated over half of
the members of the board of directors of the Company.
According to the Resolution Announcement of the 24
th
session of the 9
th
Board of Directors announced on April
27, 2017 by the Company, the ninth session of board of directors of the Company reviewed and passed the
following proposals concerning the candidates for the tenth session of board of directors:
(1) Passed the Proposal on Nominating Candidates for Directors of the Tenth Session of Board of Directors,
agreed the current board of directors to nominate Mr. Li Hai, Mr. Yao Zhengwang, Mr. Cao Fang, Mr. Yang Fenbo,
Mr. Sun Longlong and Mr. Zhong Hua as the candidates for the directors of the tenth session of board of directors
of the company and participate in the election of the general shareholders’ meeting as the term of office of the
director of the 9
th
session of board of directors of the company has expired.
(2) Passed the Proposal on Nominating Candidates for Independent Directors of the Tenth Session of Board of
Directors, agreed the current board of directors to nominate Mr. Song Xishun, Mr. Zhang Zhigao and Ms. Yang
Hao as the candidates for the independent directors of the tenth session of board of directors of the company as the
term of office of the director of the 9
th
session of board of directors of the company has expired, and submitted the
proposal to the Shenzhen Stock Exchange for review, the candidates can only participate in the election of the
general shareholders’ meeting when there is no objection to the review.
According to the Company’s explanation and the announcement document of the 24
th
session of 9
th
board of
directors of the Company, the candidates for the tenth session of board of directors should be nominated by the
ninth session of board of directors, the Company did not receive the nomination of candidates for the tenth session
of board of directors from Guosheng Energy.
According to the explanation of the Company and Guosheng Energy and the review to the resume of the director
candidates announced by the ninth session of board of directors of the Company, in addition to Yao Zhengwang,
serving as a supervisor of Guojun Energy, the above mentioned director candidates had no related relationships
with Guosheng Energy and Ji Hanfei.
In conclusion, even the stockholders’ meeting of the Company considered and agreed the above-mentioned
director candidate to serve as the directors of the tenth session of the board of directors of the Company, Ji Hanfei
and Guosheng Energy had not actually dominated over half of the members of the tenth session of board of
directors of the Company.
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3. Ji Hanfei’s significant influence on the general meeting of shareholders of the Company
On October 12, 2012, the Shenzhen Intermediate People's Court issued the “Civil Ruling” of “(2012) SZFPZ No.
30” to accept the application for the reorganization of the Company by Guosheng Energy. On December 27, 2013,
Shenzhen Intermediate People's Court issued the “Civil Ruling” of “(2012) SZFPZ No. 30-10”, which ruled that
the implementation of the Company’s reorganization plan was completed and the Company’s bankruptcy
proceedings ended. According to the explanation of Guosheng Energy and the inspection of bankruptcy and
restructuring documents, Guosheng Energy had actively participated in the meeting of creditors for the
Company’s bankruptcy and reorganization and had provided interest-free loan support to the Company during the
bankruptcy and reorganization, which had a significant influence on the Company’s general meeting of
shareholders. .
On February 20, 2017, Ji Hanfei and Guosheng Energy issued the “Explanation”: “Since Ji Hanfei obtained the
control power of Guoji Energy on January 3, 2011, in view of the fact that it was the Company’s largest
shareholder and largest creditor and the Company faced serious debt crisis for a long time, Ji Hanfei actively
sought the actual controller status of the Company and exerted a significant influence on the Company by actively
participating in the Company’s general meeting of shareholders so as to realize the actual control of the Company
and then strive to promote and solve the Company's debt crisis properly."
Therefore, from January 3, 2011 to February 19, 2017, Ji Hanfei had a subjective purpose for actually controlling
the Company.
After Ji Hanfei made a clear declaration on Feb. 20, 2017 to abandon the actual control of the Company, Ji Hanfei
did not subjectively attempt to influence the general meeting of stockholders of the Company by seeking the
actual control rights. Objectively, the Company’s voting rights dominated by Ji Hanfei did not exceed 30.00% and
he did not nominate more than half of the directors of the Company’s board of directors, Ji Hanfei could not
effectively control the Company’s general meeting of shareholders and the board of directors.
According to the “Announcement on the Resolutions of the 24
th
session of 9
th
Board of Directors” announced by
the Company on April 27, 2017 and confirmed by the Company, Ji Hanfei and Guosheng Energy, Ji Hanfei and
Guosheng Energy didn’t not nominate any candidate for the directors of the tenth session of board of directors to
the Company after Ji Hanfei and Guosheng Energy made the declaration to abandon the control power.
In view of the above, the Company considered that the proportion of the Company’s shares actually controlled by
Ji Hanfei was relatively low, which was not sufficient to control the general meeting of shareholders or make a
significant impact on the general meeting of shareholders, and he had promised to give up the right of control to
the company, the Company has no actual controller since February 20, 2017.
The sponsor institutions and law firms engaged by the company for the non-public offering of shares have
深圳中华自行车(集团)股份有限公司 2019年年度报告全文
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checked this issue and made clear opinions to support.
Whether has the shareholder with over 10% stock held in ultimate controlling standards or not
√ Yes □ No
Legal person
Share holding in ultimate control standards
Shareholder
Legal person/person
in charge of the unit
Date of foundation Organization code Main operation business
Shenzhen Guosheng Energy
Investment Development Co.,
Ltd.
Ji Hanfei 2005-04-26 91440300774115792
Industry development,
domestic commerce,
materials supply and sale
(excluding specially run,
controlled and sold
merchandises)
Equity of the listed enterprise
in and out of China controlled
by the shareholders in
ultimate control standards in
the period
N/A
Changes of actual controller in reporting period
□Applicable √ Not applicable
Actual controller of the Company has no changes in the period
Property right and controlling relationship between the actual controller and the Company is as follow:
Actual controller controlling the Company by entrust or other assets management
□ Applicable √ Not applicable
4. Particulars about other legal person shareholders with over 10% shares held
□ Applicable √ Not applicable
5. Limitation and reducing the holdings of shares of controlling shareholders, actual controllers,
restructuring side and other commitment subjects
□ Applicable √ Not applicable
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Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period.
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Section VIII. Convertible Bonds
□ Applicable √ Not applicable
The Company had no convertible bonds in the Period.
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Section IX. Particulars about Directors, Supervisors, Senior
Executives and Employees
I. Changes of shares held by directors, supervisors and senior executives
Name
Title
Working
status
Sex Age
Start
dated of
office
term
End date
of office
term
Shares
held at
period-be
gin
(Share)
Amount
of shares
increased
in this
period
(Share)
Amount
of shares
decreased
in this
period
(Share)
Other
changes
(share)
Shares
held at
period-en
d
(Share)
Li Hai
Director
Currently
in office
M 51
2010-08-
26
2020-06-
28
0 0 0 0 0
President
Currently
in office
M 51
2013-09-
26
2020-06-
28
0 0 0 0 0
Chairman
Currently
in office
M 51
2015-04-
15
2020-06-
28
0 0 0 0 0
Yao
Zhengwa
ng
Director
Currently
in office
M 45
2010-08-
26
2020-06-
28
0 0 0 0 0
Cao Fang Director
Currently
in office
M 46
2010-08-
26
2020-06-
28
0 0 0 0 0
Yang
Fenbo
Director
Currently
in office
M 63
2006-06-
30
2020-06-
28
0 0 0 0 0
Sun
Longlong
Director
Currently
in office
M 47
2017-06-
29
2020-06-
28
0 0 0 0 0
Secretary
of Board
Currently
in office
M 47
2012-05-
17
2020-06-
28
0 0 0 0 0
CFO
Currently
in office
M 47
2017-05-
22
2020-06-
28
0 0 0 0 0
Zhong
Hua
Director
Currently
in office
M 56
2017-06-
29
2020-06-
28
0 0 0 0 0
Yang Lan
Independ
ent
director
Currently
in office
F 51
2017-06-
29
2020-06-
28
0 0 0 0 0
Song
Xishun
Independ
ent
Currently
in office
M 57
2017-06-
29
2020-06-
28
0 0 0 0 0
深圳中华自行车(集团)股份有限公司 2019年年度报告全文
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director
Zhang
Zhigao
Independ
ent
director
Currently
in office
M 55
2017-06-
29
2020-06-
28
0 0 0 0 0
Li Xiang
The
convener
of the
board of
superviso
rs
Currently
in office
M 46
2014-06-
27
2021-02-
12
0 0 0 0 0
Zheng
Zhonghua
n
Superviso
r
Currently
in office
M 58
2011-06-
27
2021-02-
12
5,276 0 0 0 5,276
Li Jialin
Staff
Superviso
r
Currently
in office
M 59
2014-05-
22
2021-02-
12
0 0 0 0 0
Total -- -- -- -- -- -- 5,276 0 0 0 5,276
II. Changes of directors, supervisors and senior executives
□ Applicable √ Not applicable
III. Post-holding
Professional background, major working experience and present main responsibilities in Company of directors,
supervisors and senior executive
Mr. Li Hai, born in 1969, graduated from Economic department of Shenzhen University in major of accounting;
he took the turns of deputy manager of finance department, chief supervisor associate of finance department,
secretary of the Board and vice president, etc. of the Company, and now he serves as chairman, legal
representative and president of the Company.
Mr. Yao Zhengwang, born in 1975, with bachelor degree of law, successively took the post of Supervisor of
Supervision Office, Deputy Manager of Sales Department, and Deputy Manager of Legal Affairs Department of
Shenzhen Guomin Investment Development Co. Ltd. and deputy general manager of Administration Center of
Compliant Risk Control, as well as director, secretary of the Board and convener of supervisory committee of
CBC; now he serves as director of the Company and Leshan City Commercial Bank Co., Ltd..
Mr. Cao Fang, born in 1974, master degree; since May of 2007, he took post of item manager of marketing and
management department in headquarter of Life Insurance, associate of general manager of marketing and
management headquarter as well as general manager of market and business department, he acted as member of
planning team of Life Insurance Branch in Guangdong. And subsequently served in strategy and development
深圳中华自行车(集团)股份有限公司 2019年年度报告全文
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center, Office of the Chairman, Supervision office; he serves as deputy GM of Shanghai Branch of Life Insurance
since March 2012 and person in charge of the sales management center in Funde Insurance Holding
Mr. Yang Fenbo, born in 1957, China senior economist with master degree of MBA and engineer, held the position
of minister of development department, concurrently minister of science and technology department, assistant
general manager, assistant to chairman, deputy chief engineer and chief engineer at Shenzhen Lionda Group; took
the chairman and concurrently general manager of Guangdong Sunrise Holding Co., Ltd.; now, he is the chairman
of Shenzhen Liona Group Co., Ltd. and Shenzhen Qianhai Fu Rong Asset Management Co., Ltd.
Mr. Sun Longlong, born in 1973, graduated from Shanghai University of Finance and Economics in 1995 with a
bachelor degree, a bachelor of Economics. He successively worked as financial affairs in Shenzhen Qiongjiao
Industry Co., Ltd. and Shenzhen Solar Pipe Co., Ltd., he worked in the Company since May 1999, and
successively served as Deputy Manager of financial department, Manager, manager of comprehensive
management department, manager of enterprise management department, now he serves as Director, CFO and
secretary of the Board of the Company.
Mr. Zhonghua, born in 1964, undergraduate college, has an engineer title. He worked in technical section of
Guangdong Xingning Motormaker and Guangdong Xingning Mechatronic Industry Company; he worked in the
period since December 1991, and have successively held the posts of director of the quality management dept.,
director of testing center, deputy GM and GM of the quality management dept., now he serves as director of the
Company, and OEM management chief and GM of the quality management dept. in Shenzhen EMMELLE
Industrial Co., Ltd.
Ms. Yang Lan, born in 1969, is a master’s degree holder, a certified tax accountant, a certified appraiser, a
certified public accountant, and an auditor. She successively served as a member of Guiyang Audit Bureau, the
head of Zhuhai BDO China Shu Lun Pan Certified Public Accountants, the head of Shanghai Lixin Changjiang
Certified Public Accountants, Zhuhai Branch, the head of Guangdong Lixin Changjiang Certified Public
Accountants, and the senior manager of Pan-China Certified Public Accountants (LLP), Guangdong Branch; and
has been serving as the deputy head of Guangdong Lixin Changjiang Certified Public Accountants since 2015.
Mr. Song Xishun, born in 1963, holds a master’s degree in Chinese from Xiamen University. He once served as a
teacher of PLA University of Foreign Language, took office at Public Security Bureau of Xiamen City, Xiamen
City Bureau of Culture, served as the deputy dean of Cultural Industry School of Xiamen University of
Technology and an arbitrator of Xiamen City Personnel Dispute Arbitration Committee. He has been teaching at
Xiamen University of Technology since 2003, and currently serves as the deputy dean (worked since January
2013, part-time) of Cultural Development Institute of Xiamen University of Technology, a lawyer (part-time) of
Zhong Yin (Xiamen) Law Firm, an independent director (part-time) of the Jordan Sports Co., Ltd., an independent
director (part-time) of Dehua Hengyi Art Ceramics Co., Ltd and Ankee Food Co., Ltd; and the vice chairman
(part-time) of Xiamen Language Association.
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Mr. Zhang Zhigao, born in 1965, is a bachelor of laws from Fudan University, a certified public accountant and a
certified appraiser; he has been serving as a partner lawyer of Shanghai Xuan Lun Law Firm since 2007. He used
to be a technician of Shanghai Electrical Machinery Plant, a lecturer of Shanghai Lixin University of Commerce,
and a partner lawyer of Shanghai Alshine Law Firm; served as a member of the twelfth
session of CPPCC of
Xuhui District, Shanghai, an independent director of Shanghai Kai Kai Industrial Co., Ltd., an independent
director of Shanghai Norcent Technology Development Co., Ltd., and an independent director of Shanghai
Xingye Real Estate Co., Ltd.; he currently serves as a supervisor (part-time) of Shanghai Lingqing Venture
Capital Investment Management Co., Ltd., a director (part-time) of Shanghai Chengxi Asset Management Co.,
Ltd., and a director (part-time) of Zhongcheng Village Bank Co., Ltd. of Kuiwen District, Weifang City .
Mr. Li Xiang, born in 1974, holds a master’s degree. He once served as the secretary of the party committee, the
director of the organization department of the party committee, and the manager of the human resources
department at Pacific Life Jiangxi Branch. Since March 2008, he has been serving as the deputy general manager
of Shenzhen Guosheng Energy Investment Development Co., Ltd.
Mr. Zheng Zhonghuan, born in 1962, holds a bachelor’s degree and an engineer title. He once worked at
Shenzhen Light Textile Industry Company and Shenzhen Light Industry Company. Since October 1985, he has
been working at Shenzhen China Bicycle Company (Holdings) Limited, and once served as the deputy manager
and manager of planning department, the manager of material department, and the manager of manufacturing
department; and he serves as a supervisor of the Company and the manager of the procurement management
department of Shenzhen Emmelle Industrial Co., Ltd.
Mr. Li Jialin, born in 1961, a master degree with a title of senior engineer. He successively served as senior
engineer of the Company in electrical & mechanical engineering division, GM assistant of Hunan Guangdian
Motorcycle Company, manager of the Company in H&R Dept. now he serves as Staff representative supervisor,
commissioner of comprehensive office of the Company and person in charge of the labor union.
Post-holding in shareholder’s unit
√Applicable □ Not applicable
Name Name of shareholder’s unit
Position in
shareholder’s
unit n
Start dated of
office term
End date of
office term
Received
remuneration from
shareholder’s unit
(Y/N)
Yao
Zhengwang
Shenzhen Guosheng Energy Investment
Development Co., Ltd.
Supervisor 2006-10-09 Y
Li Xiang
Shenzhen Guosheng Energy Investment
Development Co., Ltd.
Deputy GM 2008-03-01 Y
Note of
post-holding in
N/A
深圳中华自行车(集团)股份有限公司 2019年年度报告全文
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shareholder’s
unit
Post-holding in other unit
√Applicable □ Not applicable
Name Name of other units
Position in
other unit
Start dated of
office term
End date of office
term
Received
remuneration
from other unit
(Y/N)
Yao Zhengwang Leshan Commercial Bank Co., Ltd. Supervisor 2019-01-10 2022-01-09 Y
Cao Fang
Funde Insurance Holdings sales
management center
Person in
charge
2016-06-01 Y
Yang Fenbo Shenzhen Lionda Group Co., Ltd.
Senior
consultant
2017-09-12 Y
Yang Lan Guangdong BDO Changjiang CPA Firm
Deputy
director
2001-04-01 Y
Song Xishun Xiamen University of Technology
Vice
professor
2003-09-01 Y
Song Xishun Zhong Yin (Xiamen) Law Firm
Part-time
lawyer
2003-09-01 Y
Song Xishun Jordan Sports Co., Ltd.
Independent
director
2015-02-01 Y
Song Xishun Ankee Food Co., Ltd
Independent
director
2018-01-06 Y
Song Xishun Dehua Hengyi Art Ceramic Co., Ltd.
Independent
director
2013-01-01 Y
Zhang Zhigao SHULUN & PARTNERS (SHANGHAI)
Partner
lawyer
2007-12-01 Y
Zhang Zhigao
Shanghai Lingqing Venture Investment
Management Co., Ltd.
Supervisor 2009-07-21 N
Zhang Zhigao
Shanghai Chengxi Asset Management Co.,
Ltd.
Director 2010-05-10 N
Zhang Zhigao
Zhongcheng Villiage Bank Co., Ltd. of
Kuiwen District, Weifang City
Director 2013-12-31 Y
Note of
post-holding in
other unit
N/A
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
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IV. Remuneration for directors, supervisors and senior executives
Decision-making procedures, recognition basis and payment for directors, supervisors and senior executives
Decision procedure of
remuneration of directors,
supervisors, senior
management
According to relevant rules of the Article of Association, the general meeting of shareholders decides
remuneration of directors and supervisors. The Board of Directors decides senior management’s.
Confirmation basis of
remuneration of directors,
supervisors and senior
management
The Company refers to the position rank and comprehensive industry level. And then general meeting of
shareholders approves compensation standard and allowance of independent directors. According to the
"Interim Measures to Annual Performance Assessment of Executives" and performance evaluation
standards the Company issues annual performance salary.
Actual payment of
remuneration of directors,
supervisors and senior
management
The Company strictly paid remuneration of directors, supervisors and senior management accordingly
with decision procedure and confirmation basis. Total payment for remuneration of directors,
supervisors and supervisors amounted to RMB 1,439,700 from January to December in 2019.
Remuneration for directors, supervisors and senior executives in reporting period
In 10 thousand Yuan
Name Title Sex Age
Post-holding
status
Total
remuneration
obtained from the
Company (before
taxes)
Whether
remuneration
obtained from
related party of
the Company
Li Hai Director M 51
Currently in
office
61.91 N
Sun Longlong Director M 47
Currently in
office
22.66 N
Zhong Hua Director M 56
Currently in
office
15.98 N
Zheng
Zhonghuan
Supervisor M 58
Currently in
office
13.76 N
Li Jialin Staff Supervisor M 59
Currently in
office
15.38 N
Yang Lan
Independent
director
F 51
Currently in
office
4.76 N
Song Xishun
Independent
director
M 57
Currently in
office
4.76 N
Zhang Zhigao
Independent
director
M 55
Currently in
office
4.76 N
N
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Total -- -- -- -- 143.97 --
Delegated equity incentive for directors, supervisors and senior executives in reporting period
□ Applicable √ Not applicable
V. Particulars of workforce
1. Number of Employees, Professional composition, Education background
Employee in-post of the parent Company (people) 44
Employee in-post of main Subsidiaries (people) 15
The total number of current employees (people) 59
The total number of current employees to receive pay (people) 59
Retired employee’ s expenses borne by the parent Company and
main Subsidiaries (people)
0
Professional composition
Category of professional composition Numbers of professional composition (people)
Production personnel 19
Sales personnel 15
Technical personnel 8
Financial personnel 7
Administrative personnel 10
Total 59
Education background
Category of education background Numbers (people)
Undergraduate 24
Junior college 21
Other 14
Total 59
2. Remuneration Policy
Formulated the remuneration policy according to the position title and comprehensive industry salary standards
3. Training programs
Formulated the training programs according to the position title
深圳中华自行车(集团)股份有限公司 2019年年度报告全文
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4. Labor outsourcing
□ Applicable√ Not applicable
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Section X. Corporate Governance
I. Corporate governance of the Company
During the reporting period, the Company was strictly in accordance with the "Company Law", "Securities Law"
as well as "Listing Corporation Management Standards" and other relevant laws, regulations and normative
documents. We combined the actual situation, constantly improved the corporate governance structure, and strive
to build a modern enterprise system. Operation, assembling and holding of general meeting of shareholders, the
Board of Directors and board of supervisors were strictly with relevant rules of procedure. Thus we protected
interests of the Company. The actual situation of corporate governance structure was in accordance with the
release of normative documents about the listing Corporation management rules from China Securities Regulatory
Commission.
Is there any difference between the actual condition of corporate governance and relevant regulations about corporate governance for
listed company from CSRC?
□Yes √ No
There are no differences between the actual condition of corporate governance and relevant regulations about corporate governance
for listed company from CSRC.
II. Independent of the Company relative to controlling shareholders’ in aspect of businesses,
personnel, assets, organization and finance
The Company separate business, personnel, assets, institute and finance with largest shareholder or other related parties, owes
independent and completed self-operation ability.
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
Session of meeting Type
Ratio of investor
participation
Date Date of disclosure Index of disclosure
First Extraordinary
shareholders general
meeting 2019
Extraordinary
shareholders general
meeting
12.09% 2019-02-22 2019-02-22
Notice of Resolution
of first Extraordinary
shareholders general
meeting 2019 (No.:
2019005)
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Annual General
Meeting 2018
Annual General
Meeting
12.51% 2019-06-27 2019-06-27
Notice of Resolution
of Annual General
Meeting 2018 (No.:
2019013)
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
V. Responsibility performance of independent directors
1. The attending of independent directors to Board meetings and general meeting
The attending of independent directors to Board Meeting and general meeting
Name of
independent
director
Times of
Board meeting
supposed to
attend in the
report period
Times of
Board meeting
Presence
Times of
attending
Board meeting
by
communicatio
n
Times of
Board meeting
entrusted
presence
Times of
Board meeting
Absence
Absent the
Board Meeting
for the second
time in a row
(Y/N)
Times of
attending
shareholding
meeting
Yang Lan 8 2 6 0 0 N 1
Song Xishun 8 2 6 0 0 N 1
Zhang Zhigao 8 2 6 0 0 N 0
Explanation of absent the Board Meeting for the second time in a row
Nil
2. Objection for relevant events from independent directors
Independent directors come up with objection about Company’s relevant matters
□Yes √No
Independent directors has no objections for relevant events in reporting period.
3. Other explanation about responsibility performance of independent directors
The opinions from independent directors have been adopted
√ Yes □ No
Explanation on advice that accepted/not accepted from independent directors
Nil
VI. Duty performance of the special committees under the board during the reporting period
Board of directors set up audit commission and remuneration and appraisal commission taking responsibility
深圳中华自行车(集团)股份有限公司 2019年年度报告全文
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based on Governance Rules of Listed Company, Article of Association as well as Procedure Rules of Board of
Directors and other duties and rights various departments endowed.
As for compiling and audit on annual financial report were checked and communicated by Audit commission in
accordance with rules of Working Procedure of Annual Report of Audit Commission, and they submitted decision
to board of directors for approval.
Remuneration and appraisal commission of the Company, in reporting period, according to the “Interim Measure
on Assessment Reward of Annual Performance for Senior Executives”, carry out evaluation on the management
team members for operation works in 2018.
VII. 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.
VIII. Examination and incentives of senior management
The Company initially established the standard and incentive mechanism for open and transparent performance evaluation on
directors, supervisors and management layer. The appointment of senior management staff was open and transparent, in accordance
with provisions of the law.
IX. Internal Control
1. Details of major defects in IC appraisal report that found in reporting period
□Yes √ No
2. Appraisal Report of Internal Control
Disclosure date of full internal control
evaluation report
2020-04-28
Disclosure index of full internal control
evaluation report
Appraisal Report of Internal Control 2019 of CBC released on Juchao website
The ratio of the total assets of units
included in the scope of evaluation
accounting for the total assets on the
company's consolidated financial
statements
100.00%
The ratio of the operating income of units
included in the scope of evaluation
100.00%
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accounting for the operating income on the
company's consolidated financial
statements
Defects Evaluation Standards
Category Financial Reports Non-financial Reports
Qualitative criteria
Material defect: (1) inefficiency of
environment control; (2) inefficiency of
internal supervision; (3) direct impact on
major mistakes of investment decisions; (4)
directly make the significant error in the
financial statements; (5) violation of the
laws, regulations, rules and other normative
documents, resulting in investigation of the
central government and regulatory agencies,
and being sentenced to a fine or penalty,
being restricted industry exit, canceling
business license and being forced the closure
of etc. Major defect: (1) indirect impact on
major mistakes of investment decisions; (2)
indirectly make the significant error in the
financial statements; (3) Lack of important
system; (4) violation of the laws, regulations,
rules and other normative documents,
resulting in investigation of the local
government and regulatory agencies, and
being sentenced to a fine or penalty, and
being ordered to suspend business for
rectification and cause the Company’s
business stop of etc. General defect: other
control defect besides material defect and
major defect.
Material defect: (1) inefficiency of
environment control; (2) inefficiency of
internal supervision; (3) direct impact on
major mistakes of investment decisions;
(4) directly make the significant error in
the financial statements; (5) violation of
the laws, regulations, rules and other
normative documents, resulting in
investigation of the central government
and regulatory agencies, and being
sentenced to a fine or penalty, being
restricted industry exit, canceling
business license and being forced the
closure of etc. Major defect: (1) indirect
impact on major mistakes of investment
decisions; (2) indirectly make the
significant error in the financial
statements; (3) Lack of important
system; (4) violation of the laws,
regulations, rules and other normative
documents, resulting in investigation of
the local government and regulatory
agencies, and being sentenced to a fine
or penalty, and being ordered to suspend
business for rectification and cause the
Company’s business stop of etc.
General defect: other control defect
besides material defect and major defect.
Quantitative standard
1. Potential loss or potential error of total
profit: (1) General defect: less than or equal
to pre-tax total profit of 3%, (2) Major
defect: more than pre-tax total profit of
3%( and absolute amount more than RMB
0.5 million), (3) Material defect:: more than
5% of pre-tax total profit and absolute
amount more than RMB 1 million; 2.
Potential loss or potential error of operating
income: (1) General defect: less than or
1. Potential loss or potential error of total
profit: (1) General defect: less than or
equal to pre-tax total profit of 3%, (2)
Major defect: more than pre-tax total
profit of 3%( and absolute amount more
than RMB 0.5 million), (3) Material
defect:: more than 5% of pre-tax total
profit and absolute amount more than
RMB 1 million; 2. Potential loss or
potential error of operating income: (1)
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equal to operating income of 1%, (2) Major
defect: more than 1% of operating income
and less than or equal to 3% of operation
income, (3) Material defect:: more than 3%
of operating income; 3. Potential loss or
potential error of total assets: (1) General
defect: less than or equal to 1% of total
assets, (2) Major defect: more than 1% of
total profit and less than or equal to 3% of
total profit, (3) Material defect:: more than
3% of total profit
General defect: less than or equal to
operating income of 1%, (2) Major
defect: more than 1% of operating
income and less than or equal to 3% of
operation income, (3) Material defect::
more than 3% of operating income; 3.
Potential loss or potential error of total
assets: (1) General defect: less than or
equal to 1% of total assets, (2) Major
defect: more than 1% of total profit and
less than or equal to 3% of total profit,
(3) Material defect:: more than 3% of
total profit
Amount of significant defects in financial
reports
0
Amount of significant defects in
non-financial reports
0
Amount of important defects in financial
reports
0
Amount of important defects in
non-financial reports
0
X. Auditing report of internal control
√Applicable □ Not applicable
Deliberations in Internal Control Audit Report
We considers that China Bicycle Company (Holdings) Limited, in line with Basic Norms of Internal Control and relevant
regulations, shows an effectiveness internal control of financial report in all major aspects dated 31 December 2019.
Disclosure details of audit report of
internal control
Disclosed
Disclosure date of audit report of
internal control (full-text)
2020-04-28
Index of audit report of internal
control (full-text)
Audit Report of Internal Control of CBC Baker Tilly Zi [2020] No.21705 released on Juchao
Website
Opinion type of auditing report of
IC
Standard unqualified
Whether the non-financial report
had major defects
No
Carried out modified opinion for internal control audit report from CPA
□Yes √ No
The internal control audit report, issued by CPA, has concerted opinion with self-evaluation report, issued from the Board
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√ Yes □ No
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Section XI. Corporation Bonds
Whether or not the Company public offering corporation bonds in stock exchange, which undue or without payment in full at
maturity on the approval date for annual report disclosed
No
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Section XII. Financial Report
I. Audit report
Type of audit opinion
an unqualified audit report with significant uncertainty of going
concern
Signing date of audit report 2020-04-26
Name of audit institute Baker Tilly China CPA (LLP)
Number of audit report Baker Tilly Zi [2020] No.: 21695
Name of CPA Chen Zhigang, Zhang Lei
Text of auditor’s Report
an unqualified audit report with significant uncertainty of going concern
To all shareholders of Shenzhen China Bicycle Company (Holdings) Limited
I. Auditing opinions
We have audited the financial statement under the name of Shenzhen China Bicycle Company (Holdings) Limited
(hereinafter referred to as CBC), including the consolidated and parent Company’s balance sheet of 31 December
2019 and profit statement, and cash flow statement, and statement on changes of shareholders’ equity for the year
ended, and notes to the financial statements for the year ended.
In our opinion, the Company’s financial statements have been prepared in accordance with the Enterprises
Accounting Standards and Enterprises Accounting System, and they fairly present the financial status of the
Company and of its parent company as of 31 December 2019 and its operation results and cash flows for the year
ended.
II. Basis of opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Our
responsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of the
Financial Statements” section of the auditor’s report. We are independent of the Company in accordance with the
Certified Public Accountants of China’s Code of Ethics for Professional Accountants, and we 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 opinion.
III. Major uncertainty with continuous operation concerned
We bring to the attention of the users of the financial statements, as stated in note XV of the financial statements
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under the name of CBC, China Bicycle Company has completed implementation of the restructuring plan dated
27 December 2013 and terminate the bankruptcy proceedings, in which the condition of introduction of investors
has been set out with a view to restoring its ability to continue as a going concern and its sustainable profitability
through asset restructuring. Up to the reporting date of auditing, the Company has not introduced any investor, but
retained the business of bicycles so as to maintain its ability to continue as a going concern before the injection of
assets by investors. These events or circumstances indicate that there are significant uncertainties that may cause
significant doubts about the sustainable operation ability of China Bicycle Company. This matter does not affect
the published audit opinion.
IV. 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 matter we identified is as follows:
Key audit matters Audit address
1. Revenue recognized
CBC mainly engages in the sales of bicycles, electric
vehicles and relevant materials. In 2019, the main business
income of Shenzhen China Bicycle Company was RMB
76,022,687.75, all of which were generated from
domestic sales. Shenzhen China Bicycle Company took the
receipt of products as the time point for confirming the sales
revenue. Due to the significant amount of operating income,
the authenticity of the revenue and whether it should be
included in the appropriate accounting period had a
significant impact on the operating results of the company
in 2019, and there might be potential misstatements.
Therefore, we took the recognition of income as a key audit
matter.
Please refer to the accounting policies said in “24. Income”
of “Note III Significant Accounting Policies and
Accounting Estimate”, “22. Operation Revenue and Cost”
of “Note VI Combined Financial Statement Annotation and
“5. Operating Income and Costs” of “Note XV Financial
Statement Annotation of Parent Company” of the financial
statements annotation.
1. Understand, test and evaluate the effectiveness of the
internal control design and operation related to the
company’s sales and collections.
2. Check the relevant provisions of customer contracts,
and pay attention to the changes in pricing methods,
acceptance methods, delivery locations and deadlines,
settlement methods, etc., and assess whether the company’s
recognition of income meets the requirements of the
accounting standards and whether it is consistent with the
disclosed accounting policies.
3. Inquire and understand the background information of
major customers through open channels, such as business
registration data, etc., confirm whether there are potential
unrecognized related party relationships between the
customer and the company and related parties.
4. Check the customer information (such as contact
information, contact address, order time, etc.) of online
marketing and evaluate the authenticity and rationality of
online marketing; examine the market price of main
materials and analyze the rationality of gross profit rate
fluctuation.
5.Inform the main customers of the current transaction
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amount and fund balance by confirmation letters, and visit
important customers to verify the authenticity of the
company’s revenue recognition.
6. Check the contracts, warehouse receipts, delivery notes
and delivery receipt records of major customers
7. Check the delivery note within a certain period before and
after the balance sheet date, pay attention to the date of
receipt, and confirm whether the revenue recognition is
included in the correct accounting period.
Key audit matters Audit address
2. Impairment of account receivable
As of December 31, 2019, the balance of accounts
receivable of Shenzhen China Bicycle Company was RMB
43,195,503.11, and the balance of bad debt provisions
was RMB 4,578,979.18. As the balance of accounts
receivable was significant and the assessment of bad debt
provision involved the significant judgment of management,
we regarded the impairment of accounts receivable as a key
audit matter.
Please refer to the accounting policies said in “12. Accounts
Receivables” of Note III Significant Accounting Policies
and Accounting Estimate, “2. Note receivable” and “3.
accounts Receivables” of “Note VI Combined Financial
Statement Annotation”, and “1. Note receivable “ and “2.
accounts Receivables” of “Note XV Financial Statement
Annotation of Parent Company” of the financial statements
annotation.
1. Understand and test the effectiveness of the internal
control design and operation related to the accounts
receivable management
2. Review the rationality and consistency of accounting
policies of the bad debt provision for accounts receivable of
the management, and review the rationality of major
standards of single amount determined by the management.
3. For the accounts receivable with separate provision for
bad debts, select samples to obtain management’s basis for
estimating the estimated future recoverable amount,
including customer credit record, default or delayed
payment records, and actual repayment after date, and
review its rationality.
For the accounts receivable with provision for bad debts
according to the aging analysis method, analyze the
rationality of the accounting estimates for the bad-debt
provision of the accounts receivable of China Bicycle
Company, and select samples to test the accuracy of the
ageing.
V. Other information
The management of CBC (the “Management”) is responsible for other information which includes the information
covered in the Company’s 2018 annual report excluding the financial statement and our audit report.
The audit opinion issued by us for the financial statement has not covered other information, for which we do not
issue any form of assurance opinions.
Considering our audit on financial statements, we are liable to read other information, during which, we shall
consider whether other information differs materially from the financial statements or that we understand during
our audit, or whether there is any material misstatement.
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Based on the works executed by us, we should report the fact if we find any material misstatement in other
information. In this regards, we have nothing to report.
VI. Responsibilities of management and those charged with governance for the financial statements
The management is responsible for the preparation of the financial statements in accordance with the Accounting
Standards for Enterprise to secure a fair presentation, and for the design, establishment and maintenance of the
internal control necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing matters related to going concern and using the going concern assumption
unless the management either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
VII. Responsibilities of the auditor for 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 audit report that includes our audit opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the CAS 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 the financial statements.
As part of an audit in accordance with the CAS, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(1) 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 audit 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.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the management.
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(4) Conclude on the appropriateness of the management’s use of the going concern assumption 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 by the CAS to draw users’ attention in audit report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify audit opinion. Our conclusions are based
on the information obtained up to the date of audit report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
(5) 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.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express audit opinion on the financial statements. We are responsible for the
direction, supervision and performance of the group audit. We remain solely responsible for 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 communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguard measures.
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 the 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 the auditor’s report because of the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Beijing·China
26 April 2020
Chinese CPA:
(Partner):
Chen Zhigang
Chinese CPA: Zhang Lei
II. Financial statement
Unit in note of financial statement refers to CNY: RMB (Yuan)
1. Consolidated Balance Sheet
Prepared by Shenzhen China Bicycle Company (Holdings) Limited
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2019-12-31
In RMB
Item 2019-12-31 2018-12-31
Current assets:
Monetary funds 6,074,367.91 18,488,886.26
Settlement provisions
Capital lent
Tradable financial assets
Financial assets measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial assets
Note receivable 580,000.00
Account receivable 38,616,523.93 29,007,509.02
Receivable financing
Accounts paid in advance 938,425.99 13,799,753.60
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 740,354.71 844,537.19
Including: Interest receivable
Dividend receivable
Buying back the sale of financial
assets
Inventories 6,078,330.30 2,386,603.94
Contractual assets
Assets held for sale
Non-current asset due within one
year
Other current assets 3,318,514.25 2,266,241.66
Total current assets 56,346,517.09 66,793,531.67
Non-current assets:
Loans and payments on behalf
Debt investment
Finance asset available for sales
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Other debt investment
Held-to-maturity investment
Long-term account receivable
Long-term equity investment
Investment in other equity
instrument
Other non-current financial assets
Investment real estate
Fixed assets 4,191,503.33 3,502,807.32
Construction in progress
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 753,000.00 1,506,000.00
Expense on Research and
Development
Goodwill
Long-term expenses to be
apportioned
Deferred income tax asset 1,042,582.16 1,040,621.18
Other non-current asset 400,000.00 400,000.00
Total non-current asset 6,387,085.49 6,449,428.50
Total assets 62,733,602.58 73,242,960.17
Current liabilities:
Short-term loans
Loan from central bank
Capital borrowed
Trading financial liability
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Note payable 2,000,000.00
Account payable 10,191,385.23 9,979,010.69
Accounts received in advance 1,739,953.80 405,779.88
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Contractual liability
Selling financial asset of
repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 599,962.73 435,736.16
Taxes payable 585,062.75 6,297,096.28
Other account payable 38,175,654.98 37,144,872.42
Including: Interest payable
Dividend payable
Commission charge and
commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 51,292,019.49 56,262,495.43
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: Preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long-term wages payable
Accrual liability
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
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Total liabilities 51,292,019.49 56,262,495.43
Owner’s equity:
Share capital 551,347,947.00 551,347,947.00
Other equity instrument
Including: Preferred stock
Perpetual capital
securities
Capital public reserve 627,834,297.85 627,834,297.85
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus public reserve 32,673,227.01 32,673,227.01
Provision of general risk
Retained profit -1,204,736,075.56 -1,197,549,169.92
Total owner’ s equity attributable to
parent company
7,119,396.30 14,306,301.94
Minority interests 4,322,186.79 2,674,162.80
Total owner’ s equity 11,441,583.09 16,980,464.74
Total liabilities and owner’ s equity 62,733,602.58 73,242,960.17
Legal Representative: Li Hai
Person in charge of Accounting Works: Sun Longlong
Person in charge of Accounting Institution: Zhong Xiaojin
2. Balance Sheet of Parent Company
In RMB
Item 2019-12-31 2018-12-31
Current assets:
Monetary funds 1,959,804.92 8,889,572.73
Trading financial assets
Financial assets measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial assets
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Note receivable 580,000.00
Account receivable 32,843,536.70 12,827,954.16
Receivable financing
Accounts paid in advance 76,937.00 13,798,452.48
Other account receivable 485,062.44 380,925.78
Including: Interest receivable
Dividend receivable
Inventories 1,333,374.72
Contractual assets
Assets held for sale
Non-current assets maturing within
one year
Other current assets 2,830,705.01 2,130,677.11
Total current assets 40,109,420.79 38,027,582.26
Non-current assets:
Debt investment
Available-for-sale financial assets
Other debt investment
Held-to-maturity investments
Long-term receivables
Long-term equity investments 4,235,379.73 10,379.73
Investment in other equity
instrument
Other non-current financial assets
Investment real estate
Fixed assets 3,813,708.80 2,995,407.48
Construction in progress
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 753,000.00 1,506,000.00
Research and development costs
Goodwill
Long-term deferred expenses
Deferred income tax assets
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Other non-current assets 400,000.00 400,000.00
Total non-current assets 9,202,088.53 4,911,787.21
Total assets 49,311,509.32 42,939,369.47
Current liabilities
Short-term borrowings
Trading financial liability
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes payable
Account payable 9,002,524.60
Accounts received in advance 572,687.18 327,632.18
Contractual liability
Wage payable 507,738.35 151,598.60
Taxes payable 27,797.28 5,416,117.27
Other accounts payable 36,803,498.12 28,967,052.96
Including: Interest payable
Dividend payable
Liability held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 46,914,245.53 34,862,401.01
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long term employee compensation
payable
Accrued liabilities
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Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 46,914,245.53 34,862,401.01
Owners’ equity:
Share capital 551,347,947.00 551,347,947.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital public reserve 627,834,297.85 627,834,297.85
Less: Inventory shares
Other comprehensive income
Special reserve
Surplus reserve 32,673,227.01 32,673,227.01
Retained profit -1,209,458,208.07 -1,203,778,503.40
Total owner’s equity 2,397,263.79 8,076,968.46
Total liabilities and owner’s equity 49,311,509.32 42,939,369.47
3. Consolidated Profit Statement
In RMB
Item 2019 2018
I. Total operating income 76,022,687.75 119,906,950.34
Including: Operating income 76,022,687.75 119,906,950.34
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 80,986,694.86 121,010,900.34
Including: Operating cost 68,681,471.12 108,071,430.05
Interest expense
Commission charge and
commission expense
Cash surrender value
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Net amount of expense of compensation
Net amount of withdrawal of insurance
contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Tax and extras 59,405.21 727,636.82
Sales expense 3,178,476.39 5,933,231.41
Administrative expense 6,409,465.59 6,627,286.22
R&D expense 2,753,277.72
Financial expense -95,401.17 -348,684.16
Including: Interest
expenses
Interest income 110,834.04 369,745.70
Add: other income
Investment income (Loss is
listed with “-”)
Including: Investment income
on affiliated company and joint venture
The termination of income
recognition for financial assets measured
by amortized cost(Loss is listed with “-”)
Exchange income (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Income from change of fair
value (Loss is listed with “-”)
Loss of credit impairment
(Loss is listed with “-”)
-2,533,065.87
Losses of devaluation of asset
(Loss is listed with “-”)
-499,175.17 -1,200,526.41
Income from assets disposal
(Loss is listed with “-”)
III. Operating profit (Loss is listed with
“-”)
-7,996,248.15 -2,304,476.41
Add: Non-operating income 6,259,839.85 4,634,304.77
Less: Non-operating expense 6,065,148.83 4,458,892.86
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IV. Total profit (Loss is listed with “-”) -7,801,557.13 -2,129,064.50
Less: Income tax expense 12,324.52 -248,558.72
V. Net profit (Net loss is listed with “-”) -7,813,881.65 -1,880,505.78
(i) Classify by business continuity
1.continuous operating net profit
(net loss listed with ‘-”)
-7,813,881.65 -1,880,505.78
2.termination of net profit (net loss
listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s
of parent company
-7,186,905.64 -1,591,968.91
2.Minority shareholders’ gains and
losses
-626,976.01 -288,536.87
VI. Net after-tax of other comprehensive
income
Net after-tax of other comprehensive
income attributable to owners of parent
company
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(ii) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
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other debt investment
3.gain/loss of fair value
changes for available-for-sale financial
assets
4.Amount of financial assets
re-classify to other comprehensive
income
5.Gain/loss of
held-to-maturity investments that
re-classify to available-for-sale financial
asset
6.Credit impairment
provision for other debt investment
7.Cash flow hedging reserve
8.Translation differences
arising on translation of foreign currency
financial statements
9.Other
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income -7,813,881.65 -1,880,505.78
Total comprehensive income
attributable to owners of parent Company
-7,186,905.64 -1,591,968.91
Total comprehensive income
attributable to minority shareholders
-626,976.01 -288,536.87
VIII. Earnings per share:
(i) Basic earnings per share -0.0130 -0.0029
(ii) Diluted earnings per share -0.0130 -0.0029
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and
realized 0 Yuan at last period for combined party
Legal Representative: Li Hai
Person in charge of Accounting Works: Sun Longlong
Person in charge of Accounting Institution: Zhong Xiaojin
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4. Profit Statement of Parent Company
In RMB
Item 2019 2018
I. Operating income 57,765,728.40 33,859,463.41
Less: Operating cost 52,957,470.16 29,856,342.44
Taxes and surcharge 30,534.64 572,884.38
Sales expenses 669,212.01 872,164.08
Administration expenses 5,274,201.03 3,801,648.55
R&D expenses 2,753,277.72
Financial expenses -27,640.88 -138,128.50
Including: interest
expenses
Interest income 36,142.99 146,307.16
Add: other income
Investment income (Loss is
listed with “-”)
Including: Investment income
on affiliated Company and joint venture
The termination of
income recognition for financial assets
measured by amortized cost (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Changing income of fair
value (Loss is listed with “-”)
Loss of credit impairment
(Loss is listed with “-”)
-2,150,073.55
Losses of devaluation of asset
(Loss is listed with “-”)
14,209.76
Income on disposal of assets
(Loss is listed with “-”)
II. Operating profit (Loss is listed with
“-”)
-6,041,399.83 -1,091,237.78
Add: Non-operating income 5,964,797.81 4,601,274.42
Less: Non-operating expense 5,603,102.65 4,428,752.86
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III. Total Profit (Loss is listed with “-”) -5,679,704.67 -918,716.22
Less: Income tax
IV. Net profit (Net loss is listed with
“-”)
-5,679,704.67 -918,716.22
(i)continuous operating net profit (net
loss listed with ‘-”)
-5,679,704.67 -918,716.22
(ii) termination of net profit (net
loss listed with ‘-”)
V. Net after-tax of other comprehensive
income
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.gain/loss of fair value
changes for available-for-sale financial
assets
4.Amount of financial
assets re-classify to other
comprehensive income
5.Gain/loss of
held-to-maturity investments that
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re-classify to available-for-sale financial
asset
6.Credit impairment
provision for other debt investment
7.Cash flow hedging
reserve
8.Translation differences
arising on translation of foreign
currency financial statements
9.Other
VI. Total comprehensive income -5,679,704.67 -918,716.22
VII. Earnings per share:
(i) Basic earnings per share -0.010 -0.002
(ii) Diluted earnings per share -0.010 -0.002
5. Consolidated Cash Flow Statement
In RMB
Item 2019 2018
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor
services
34,301,259.24 36,129,289.85
Net increase of customer deposit
and interbank deposit
Net increase of loan from central
bank
Net increase of capital borrowed
from other financial institution
Cash received from original
insurance contract fee
Net cash received from reinsurance
business
Net increase of insured savings
and investment
Cash received from interest,
commission charge and commission
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Net increase of capital borrowed
Net increase of returned business
capital
Net cash received by agents in sale
and purchase of securities
Write-back of tax received
Other cash received concerning
operating activities
8,415,964.05 4,438,556.57
Subtotal of cash inflow arising from
operating activities
42,717,223.29 40,567,846.42
Cash paid for purchasing
commodities and receiving labor
service
33,526,465.17 30,870,252.63
Net increase of customer loans and
advances
Net increase of deposits in central
bank and interbank
Cash paid for original insurance
contract compensation
Net increase of capital lent
Cash paid for interest, commission
charge and commission
Cash paid for bonus of guarantee
slip
Cash paid to/for staff and workers 6,068,095.14 7,034,174.47
Taxes paid 5,495,235.28 2,508,051.27
Other cash paid concerning
operating activities
11,419,369.04 9,634,842.21
Subtotal of cash outflow arising from
operating activities
56,509,164.63 50,047,320.58
Net cash flows arising from operating
activities
-13,791,941.34 -9,479,474.16
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment
income
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Net cash received from disposal of
fixed, intangible and other long-term
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from investing
activities
Cash paid for purchasing fixed,
intangible and other long-term assets
897,577.01 17,293.82
Cash paid for investment
Net increase of mortgaged loans
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
activities
897,577.01 17,293.82
Net cash flows arising from investing
activities
-897,577.01 -17,293.82
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
2,275,000.00
Including: Cash received from
absorbing minority shareholders’
investment by subsidiaries
Cash received from loans
Other cash received concerning
financing activities
2,000,000.00 8,808,378.06
Subtotal of cash inflow from financing
activities
4,275,000.00 8,808,378.06
Cash paid for settling debts
Cash paid for dividend and profit
distributing or interest paying
Including: Dividend and profit of
minority shareholder paid by
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subsidiaries
Other cash paid concerning
financing activities
2,000,000.00
Subtotal of cash outflow from financing
activities
2,000,000.00
Net cash flows arising from financing
activities
4,275,000.00 6,808,378.06
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash
equivalents
-10,414,518.35 -2,688,389.92
Add: Balance of cash and cash
equivalents at the period -begin
16,488,886.26 19,177,276.18
VI. Balance of cash and cash
equivalents at the period -end
6,074,367.91 16,488,886.26
6. Cash Flow Statement of Parent Company
In RMB
Item 2019 2018
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor
services
20,912,867.52 191,824.00
Write-back of tax received
Other cash received concerning
operating activities
11,527,292.59 5,803,118.03
Subtotal of cash inflow arising from
operating activities
32,440,160.11 5,994,942.03
Cash paid for purchasing
commodities and receiving labor
service
15,697,313.54 416,418.59
Cash paid to/for staff and workers 4,179,923.89 2,958,657.75
Taxes paid 5,298,670.25 1,101,894.37
Other cash paid concerning
operating activities
9,071,443.23 8,014,959.57
Subtotal of cash outflow arising from 34,247,350.91 12,491,930.28
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operating activities
Net cash flows arising from operating
activities
-1,807,190.80 -6,496,988.25
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment
income
Net cash received from disposal of
fixed, intangible and other long-term
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from investing
activities
Cash paid for purchasing fixed,
intangible and other long-term assets
897,577.01 11,844.82
Cash paid for investment 4,225,000.00
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
activities
5,122,577.01 11,844.82
Net cash flows arising from investing
activities
-5,122,577.01 -11,844.82
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Cash received from loans
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
activities
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Cash paid for settling debts
Cash paid for dividend and profit
distributing or interest paying
Other cash paid concerning
financing activities
Subtotal of cash outflow from financing
activities
Net cash flows arising from financing
activities
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash
equivalents
-6,929,767.81 -6,508,833.07
Add: Balance of cash and cash
equivalents at the period -begin
8,889,572.73 15,398,405.80
VI. Balance of cash and cash
equivalents at the period -end
1,959,804.92 8,889,572.73
7. Statement of Changes in Owners’ Equity (Consolidated)
Current period
In RMB
Item
2019
Owners’ equity attributable to the parent Company
Minori
ty
interes
ts
Total
owners
’
equity
Share
capita
l
Other
equity instrument
Capital
reserve
Less:
Invent
ory
shares
Other
compr
ehensi
ve
incom
e
Reaso
nable
reserve
Surplu
s
reserve
Provisi
on of
genera
l risk
Retain
ed
profit
Other
Subtot
al
prefe
rred
stock
Perpe
tual
capit
al
secur
ities
Other
I. Balance at the
end of the last
year
551,3
47,94
7.00
627,83
4,297.
85
32,673
,227.0
1
-1,197,
549,16
9.92
14,306
,301.9
4
2,674,
162.80
16,980
,464.7
4
Add:
Changes of
accounting
policy
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Error
correction of the
last period
Enterprise
combine under
the same control
Other
II. Balance at
the beginning of
this year
551,3
47,94
7.00
627,83
4,297.
85
32,673
,227.0
1
-1,197,
549,16
9.92
14,306
,301.9
4
2,674,
162.80
16,980
,464.7
4
III. Increase/
Decrease in this
year (Decrease
is listed with
“-”)
-7,186,
905.64
-7,186,
905.64
1,648,
023.99
-5,538,
881.65
(i) Total
comprehensive
income
-7,186,
905.64
-7,186,
905.64
-626,9
76.01
-7,813,
881.65
(ii) Owners’
devoted and
decreased
capital
2,275,
000.00
2,275,
000.00
1.Common
shares invested
by shareholders
2,275,
000.00
2,275,
000.00
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other
(III) Profit
distribution
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1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or
shareholders)
4. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable
reserve
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1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at
the end of the
report period
551,3
47,94
7.00
627,83
4,297.
85
32,673
,227.0
1
-1,204,
736,07
5.56
7,119,
396.30
4,322,
186.79
11,441
,583.0
9
Last Period
In RMB
Item
2018
Owners’ equity attributable to the parent Company
Minorit
y
interest
s
Total
owners’
equity
Share
capita
l
Other
equity instrument
Capital
reserve
Less:
Invent
ory
shares
Other
compr
ehensi
ve
incom
e
Reaso
nable
reserve
Surplu
s
reserve
Provisi
on of
genera
l risk
Retain
ed
profit
Other
Subtot
al
prefe
rred
stock
Perp
etual
capit
al
secur
ities
Other
I. Balance at
the end of the
last year
551,3
47,94
7.00
627,83
4,297.
85
32,673
,227.0
1
-1,195,
957,20
1.01
15,898
,270.8
5
2,962,6
99.67
18,860,
970.52
Add:
Changes of
accounting
policy
Error
correction of
the last period
Enterprise
combine under
the same
control
Other
II. Balance at
the beginning
of this year
551,3
47,94
7.00
627,83
4,297.
85
32,673
,227.0
1
-1,195,
957,20
1.01
15,898
,270.8
5
2,962,6
99.67
18,860,
970.52
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III. Increase/
Decrease in this
year (Decrease
is listed with
“-”)
-1,591,
968.91
-1,591,
968.91
-288,53
6.87
-1,880,
505.78
(i) Total
comprehensive
income
-1,591,
968.91
-1,591,
968.91
-288,53
6.87
-1,880,
505.78
(ii) Owners’
devoted and
decreased
capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or
shareholders)
4. Other
(IV) Carrying
forward
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internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at
the end of the
report period
551,3
47,94
7.00
627,83
4,297.
85
32,673
,227.0
1
-1,197,
549,16
9.92
14,306
,301.9
4
2,674,1
62.80
16,980,
464.74
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8. Statement of Changes in Owners’ Equity (Parent Company)
Current period
In RMB
Item
2019
Share
capital
Other equity instrument
Capital
public
reserve
Less:
Inventor
y shares
Other
compreh
ensive
income
Reasona
ble
reserve
Surplus
reserve
Retaine
d profit
Other
Total
owners’
equity
Preferr
ed
stock
Perpet
ual
capital
securiti
es
Other
I. Balance at the
end of the last
year
551,34
7,947.0
0
627,834,
297.85
32,673,2
27.01
-1,203,7
78,503.4
0
8,076,968.
46
Add:
Changes of
accounting
policy
Error
correction of the
last period
Other
II. Balance at the
beginning of this
year
551,34
7,947.0
0
627,834,
297.85
32,673,2
27.01
-1,203,7
78,503.4
0
8,076,968.
46
III. Increase/
Decrease in this
year (Decrease is
listed with “-”)
-5,679,7
04.67
-5,679,704
.67
(i) Total
comprehensive
income
-5,679,7
04.67
-5,679,704
.67
(ii) Owners’
devoted and
decreased capital
1.Common
shares invested
by shareholders
2. Capital
invested by
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holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal of
surplus reserves
2. Distribution
for owners (or
shareholders)
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with surplus
reserve
4．Carry-over
retained earnings
from the defined
benefit plans
5．Carry-over
retained earnings
from other
comprehensive
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income
6. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
(VI)Others
IV. Balance at
the end of the
report period
551,34
7,947.0
0
627,834,
297.85
32,673,2
27.01
-1,209,4
58,208.0
7
2,397,263.
79
Last Period
In RMB
Item
2018
Share
capital
Other equity
instrument
Capital
public
reserve
Less:
Inventor
y shares
Other
compre
hensive
income
Reasonab
le reserve
Surplus
reserve
Retained
profit
Other
Total
owners’
equity
Preferr
ed
stock
Perpet
ual
capital
securit
ies
Other
I. Balance at the
end of the last
year
551,34
7,947.
00
627,834
,297.85
32,673,
227.01
-1,202,85
9,787.18
8,995,684.6
8
Add:
Changes of
accounting
policy
Error
correction of
the last period
Other
II. Balance at
the beginning
of this year
551,34
7,947.
00
627,834
,297.85
32,673,
227.01
-1,202,85
9,787.18
8,995,684.6
8
III. Increase/
Decrease in this
year (Decrease
-918,716.
22
-918,716.22
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is listed with
“-”)
(i) Total
comprehensive
income
-918,716.
22
-918,716.22
(ii) Owners’
devoted and
decreased
capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal
of surplus
reserves
2. Distribution
for owners (or
shareholders)
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
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2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at
the end of the
report period
551,34
7,947.
00
627,834
,297.85
32,673,
227.01
-1,203,77
8,503.40
8,076,968.4
6
III. Company Profile
1. History and basic information
According to the Approval Document SFBF (1991) No. 888 issued by the People’s Government of Shenzhen,
Shenzhen China Bicycle Company (Holdings) Limited (hereinafter referred to as the Company) was
reincorporated as the company limited by shares in November 1991. On 28 December 1991, upon the Approval
Document SRYFZ(1991) No. 119 issued by Shenzhen Special Economic Zone Branch of the People’s Bank of
China, the Company got listed on Shenzhen Stock Exchange. Registered of the Company amounted as
深圳中华自行车(集团)股份有限公司 2019年年度报告全文
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551,347,947.00 Yuan.
Legal representative: Li Hai
Location: No. 3008, Buxin Road, Luohu District, Shenzhen
Certificate for Uniform Social Credit Code: 914403006188304524
2. Business nature and main operation activities
The Company's industry: machinery manufacturing industry
Main operation activities: The production and assembly of various bicycles and spare parts, components, parts,
mechanical product, sport machinery, fine chemicals, carbon fiber composites material, household electrical
appliance and affiliated components (products management by license excluded).
The majority of its products were previously exported, however, the sales volume sharply declined in recent years
because of the antidumping litigation. Hence, the Company commences on the debt reorganization and the
reorganization plan was completed on 27 December 2013 with bankruptcy proceedings terminated. Meanwhile,
makes greater efforts to develop and research the new products, and creates a range of electrical bicycles to
occupy the domestic market.
Main products and services provided so far: EMMELLE bicycles, electrical bicycles, lithium battery material and
gold jewelry.
3. Release of the financial report
The Financial Report released on 27 April 2020 after approved by 20
th
session of 10
th
BOD of the Company.
Two subsidiaries included in consolidate scope in the period, that is Shenzhen Emmelle Industry Co., Ltd and
Shenzhen Xinsen Jewelry and gold Supply Chain Co., Ltd, of which, the Shenzhen Xinsen Jewelry and gold
Supply Chain Co., Ltd is the subsidiary newly included in consolidate scope by establishment in the period.
IV. Compilation Basis of Financial Statement
1. Compilation Basis
The financial statement is prepared based on continuing operation assumptions, and according to actual
occurrence, in line with relevant accounting rules and follow important accounting policy and estimation.
2. Going concern
On 11 May 2012, the largest shareholder and biggest creditor of the Company, Shenzhen Guosheng Energy
Investment Development Co., Ltd. applied to Shenzhen Municipal Intermediate People's Court for reforming the
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Company as the Company couldn’t pay off the matured debts and was seriously insolvent. On 12 October 2012,
Shenzhen Municipal Intermediate People's Court ruled to accept the application proposed by Guosheng Energy
according to (2012) Shenzhen Intermediate Court Po Zi No. 30 civil ruling. On the last ten-day of October 2012,
Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25 October 2012 according
to (2012) Shenzhen Intermediate Court Po Zi No. 30-1 civil ruling, appointed King & Wood (Shenzhen)
Mallesons and Shenzhen ZhengYuan Liquidation Affairs Co., Ltd. as the custodians of the Company. On the same
day, Shenzhen Municipal Intermediate People's Court made (2012) Shenzhen Intermediate Court Po Zi No. 30-1
written decision, and approved the Company to manage property and business affairs by itself under the
supervision of custodians according to the law. On 5 November 2013, the Shenzhen Intermediate People’s Court
(2012) Shen Zhong Fa Po Zi No. 30-6 Civil Ruling Paper judged that approved the reorganization plan of the
Company. On 27 December 2013, the Civil Ruling Paper Shenzhen Intermediate People’s Court (2012) Shen
Zhong Fa Po Zi No. 30-10 ruled that the reorganization plan of CBC was completed and bankruptcy procedures of
the Company closed down.
The Company has solved the debt problem by reforming, realized the net assets with positive value, the main
business of bicycle is able to be maintained and realizes the stable development. The Company has set up the
conditions for introducing the recombination party in the reforming plan, and expects to restore the abilities of
sustainable operation and sustained profitability by reorganization. The conditions of introducing the
recombination party includes: the assessed value of net assets should be no less than 2 billion Yuan, the net assets
in the same year for implementing the major reorganization should be no less than 200 million Yuan. The
Company doesn’t have the recombination party at the moment.
V. Main accounting policy and Accounting Estimate
Tips for specific accounting policy and estimate:
Nil
1. Declaration on compliance with accounting standards
The financial statement prepared by the Company, based on follow compilation basis, is comply with the
requirement of new accounting standards for business enterprise issued by Ministry of Finance and its application
guide, commentate as well as other regulations (collectively referred to as Accounting Standards for Business
Enterprise), which is reflect a real and truth financial status of the Company, as well as operation results and cash
flow situations.
Furthermore, the statement has reference to the listing and disclosure requirement from “Rules Governing the
Disclosure of Information for Enterprise with Stock Listed No.15-general regulation of financial report” (2014
Revised) and “Notice on Implementation of New Accounting Standards for Listed Companies” (KJBH (2018) No.
453)
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2. Accounting period
Calendar year is the accounting period for the Company, which is starting from 1 January to 31 December.
3. Business cycles
The business period for the Company, which is the Gregorian calendar starting from 1 January to 31 December
4. Recording currency
The Company and its subsidiaries take RMB as the standard currency for bookkeeping.
5. Accounting treatment for business combinations under the same control and those not under the same
control
(1) Accounting treatment for business combinations under the same control and those not under the same control
For a business merger that is under the same control and is achieved by the Company through one single
transaction or multiple transactions, assets and liabilities obtained from that business combination shall be
measured at their book value at the combination date as recorded by the party being absorbed in the consolidated
financial statement of ultimate controlling party. Capital reserve shall be adjusted as per the difference between
the book value of obtained net assets and the book value of paid consolidated consideration (or the nominal value
of the issued shares) of the Company; retained earnings shall be adjusted if the capital reserve is not sufficient for
offset.
(2) Accounting treatment for Enterprise combine not under the same control
The Company will validate the difference that the combined cost is more than the fair value of the net identifiable
assets gained from the acquiree on the acquisition date as goodwill; where the combined cost is less than the fair
value of net identifiable assets gained from the acquiree during business combination, the fair value and combined
cost of various identifiable assets, liabilities and contingent liabilities from the acquiree must be rechecked. Where
the combined cost is, after the recheck, still less than the fair value of net identifiable assets gained from the
acquiree during business combination, the difference shall be charged to current profits and losses.
As for business combination not under common control and realized through multiple transactions and by steps,
the Company shall make accounting treatment as follows:
1) Adjust the initial investment cost of long-term equity investments. As for stock equities held before the
acquisition date accounted according to the equity method, re-measurement is carried out according to the fair
value of the equity on the acquisition date. The balance between the fair value and the book value is included in
the current investment income. If the acquiree’s stock equities held before the acquisition date involves changes of
other comprehensive incomes and other owner's equities under accounting with the equity method, the balance
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between the fair value and the book value is included in the current investment income on the acquisition date,
excluding other comprehensive incomes incurred by changes due to re-measurement of net liabilities or net assets
of the defined benefit plan.
2) Confirm the goodwill (or include the amount in the profits and losses). The initial investment cost of long-term
equity investments adjusted in step 1 is compared with the fair value of net identifiable assets of the subsidiary
shared on the acquisition date. If the former is greater than the latter, the balance is confirmed as goodwill; if the
former is less than the latter, the balance is included in the current profits and losses.
Loss of control of a subsidiary in multiple transactions in which it disposes equity interests of its subsidiary in
stages
(1)In determining whether to account for the multiple transactions as a single transaction
A parent shall consider all the terms and conditions of the transactions and their economic effects. One or more of
the following may indicate that the parent should account for the multiple arrangements as a single transaction:
1) Arrangements are entered into at the same time or in contemplation of each other;
2) Arrangements work together to achieve an overall commercial effect;
3) The occurrence of one arrangement is dependent on the occurrence of at least one other arrangement;
4)One arrangement considered on its own is not economically justified, but it is economically justified when
considered together with other arrangements.
(2)Accounting treatment for each of the multiple transactions forming part of a bundled transactions which
eventually results in loss of control the subsidiary during disposal of its subsidiary in stages
If each of the multiple transactions forms part of a bundled transactions which eventually results in loss of control
the subsidiary, these multiple transactions should be accounted for as a single transaction. In the consolidated
financial statements, the difference between the consideration received and the corresponding percentage of the
subsidiary’s net assets in each transaction prior to the loss of control shall be recognized in other comprehensive
income and transferred to the profit or loss when the parent eventually loses control of the subsidiary.
The remaining equity investment shall be re-measured at its fair value in the consolidated financial statements at
the date when control is lost. The difference between the total amount of consideration received from the
transaction that resulted in the loss of control and the fair value of the remaining equity investment and the share
of net assets of the former subsidiary calculated continuously from the acquisition date or combination date based
on the previous shareholding proportion, shall be recognized as investment income for the current period when
control is lost. The amount previously recognized in other comprehensive income in relation to the former
subsidiary’s equity investment should be transferred to investment income for the current period when control is
lost
(3)Accounting treatment for each of the multiple transactions NOT forming part of a bundled transactions which
eventually results in loss of control the subsidiary during disposal of its subsidiary in stages
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If the Company doesn't lose control of investee, the difference between the amount of the consideration received
and the corresponding portion of net assets of the subsidiary shall be adjusted to the capital reserve (capital /equity
premium) in the consolidated financial statements.
If the Company loses control of investee, the remaining equity investment shall be re-measured at its fair value in
the consolidated financial statements at the date when control is lost. The difference between the total amount of
consideration received from the transaction that resulted in the loss of control and the fair value of the remaining
equity investment and the share of net assets of the former subsidiary calculated continuously from the acquisition
date or combination date based on the previous shareholding percentage, shall be recognized as investment
income for the current period when control is lost. The amount previously recognized in other comprehensive
income in relation to the former subsidiary’s equity investment should be transferred to investment income for the
current period when control is lost.
6. Compilation method of consolidated financial statement
Consolidated financial statements are prepared by the Company in accordance with Accounting Standard for
Business Enterprise No. 33-Consolidated Financial Statements and based on financial statements of parent
company and its subsidiaries and other related information.
When consolidating the financial statements, the following items are eliminated: internal equity investment and
owners’ equity of subsidiaries, proceeds on internal investments and profit distribution of subsidiaries, internal
transactions, internal debts and claim. The accounting policies adopted by subsidiaries are the same as parent
company.
7. Classification of joint venture arrangement and accounting treatment for joint control
(1) Affirmation and classification of joint venture arrangement
Joint arrangement refers to an arrangement controlled by two or more than two participants. Joint venture
arrangement has the following characteristics: 1) Each participant is bound by the arrangement; 2) Two or more
participants carry out joint control on implementation of the arrangement. Any participant cannot control the
arrangement independently. Any participant for joint control can stop other participants or participant
combinations to independently control the arrangement.
Joint control refers to the sharing of control over certain arrangement under related agreements, and related
activities of the arrangement must be determined only when obtaining the unanimous consent of the parties
sharing control.
Joint venture arrangement is classified in to joint operation and joint venture. Joint operation refers to an
arrangement that a joint party enjoys assets related to the arrangement and bears liabilities related to the
arrangement. Joint venture refers to an arrangement that a joint party only has the power governing net assets of
the arrangement.
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(2) Accounting treatment of joint venture arrangement
Joint venture participants should confirm the following items related to interest shares in joint venture and carry
out accounting settlement according to relevant provisions of the Accounting Standards for Business Enterprises:
1) confirm the assets held separately and confirm the assets held jointly based on shares; 2) confirm the liabilities
borne separately and confirm the liabilities borne jointly based on shares; 3) confirm the income incurred after
selling its shares in joint venture output; 4) confirm the income after selling the joint venture outputs based on
shares; 5) confirm the expenses incurred separately and confirm the expenses incurred in joint venture based on
shares.
Joint venture participants should carry out accounting settlement for investments of the joint venture according to
provisions of Accounting Standards for Business Enterprises No.2–Long-term Equity Investments.
8. Recognition of cash and cash equivalents
Cash in cash flow statement means the inventory cash and savings available for use anytime. Cash equivalents
refer to the short-term (generally due within three months since the date of purchase) highly liquid investments
that are readily convertible into known amounts of cash and that are subject to an insignificant risk of change in
value.
9. Foreign currency transaction and financial statement conversion
(1)Conversion for foreign currency transaction
When initially recognized, the foreign currency for the transaction shall be converted into CNY amount according
to the spot exchange rate on the date of transaction. For the foreign currency monetary items, conversion must be
based on the spot exchange rate on the balance sheet date and the exchange difference incurred from different
exchange rates, except for the exchange difference of principal and interest incurred due to foreign currency loan
related to acquisition or construction of assets that qualify for capitalization, shall be charged to current profits and
losses; foreign currency non-monetary items measured with historical cost are still converted as per the spot
exchange rate on the transaction date and keep the RMB amount unchanged; foreign currency non-monetary items
measured with fair value shall be converted as per the spot exchange rate on the date of determining the fair value
and the difference shall be charged to current profits and losses or other comprehensive income.
(2)Conversion of financial statements presented in foreign currencies
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The asset and liability items in the balance sheet shall be converted at the spot exchange rate on the balance sheet
date; the owner’s equity items, except for the items of “undistributed profit”, shall be converted at the spot
exchange rate on the transaction date; the income and expenditure items in the profit statement shall be converted
at the spot exchange rate on the transaction date. The translation difference of foreign financial statements
conducted as above is recognized as other comprehensive incomes.
10. Financial instruments
(1) Recognition and termination for financial instrument
Financial assets or financial liabilities are recognized when the Group becomes a party to the contractual
provisions of the instrument.
When buying and selling financial assets in a conventional manner, recognize and derecognize them according to
the accounting of the trading day. Buying and selling financial assets in a conventional manner refers to the
collection or delivery of financial assets in accordance with the contract terms and within the period prescribed by
regulations or prevailing practices. Trading day refers to the date when the Company promises to buy or sell
financial assets.
When meeting the following conditions, derecognize a financial asset (or part of a financial asset, or part of a
group of similar financial assets), i.e. to write off from its account and balance sheet:
1) The right to receive cash flows from financial assets expires;
2) The right to receive cash flows of financial assets is transferred, or assume the obligation to pay the full amount
of cash flows received to a third party in a timely manner under the “handover agreement”; and (a) virtually
transferred almost all risks and rewards of the ownership of financial assets, or (b) although virtually neither
transferred nor retained almost all risks and rewards of the ownership of financial assets, abandoned the control of
the financial assets.
(2) Classification and measurement of financial assets
The Company’s financial assets are classified as financial assets measured at amortized cost, financial assets
measured at fair value and whose changes are included in other comprehensive income, and financial assets
measured at fair value and whose changes are included in the current profit and loss according to the Company’s
business model for managing financial assets and the contractual cash flow characteristics of financial assets at
initial recognition. The subsequent measurement of financial assets depends on their classification.
The Company’s classification of financial assets is based on the Company’s business model for managing
financial assets and the cash flow characteristics of financial assets.
1) Financial assets measured at amortized cost
Financial assets that meet the following conditions at the same time are classified as financial assets measured at
amortized cost: the Company’s business model for managing this financial asset is to collect contractual cash
flows; the contract terms of the financial asset stipulate that the cash flow generated on a specific date is only the
payment of principal and interest based on the outstanding principal amount. For such financial assets, the actual
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interest rate method is used for subsequent measurement based on amortized cost, and the gains or losses arising
from amortization or impairment are included in the current profit and loss.
2) Debt instrument investments measured at fair value and whose changes are included in other comprehensive
income
Financial assets that meet the following conditions at the same time are classified as financial assets measured at
fair value and whose changes are included in other comprehensive income: the Company’s business model for
managing this financial asset is to both collect contractual cash flows and sell the financial assets; the contract
terms of the financial asset stipulate that the cash flow generated on a specific date is only for the payment of
principal and interest based on the outstanding principal amount. For such financial assets, fair value is used for
subsequent measurement. The discount or premium is amortized by using the actual interest method and is
recognized as interest income or expenses. Except that the impairment loss and the exchange difference of foreign
currency monetary financial assets are recognized as current gains and losses, changes in the fair value of such
financial assets are recognized as other comprehensive income, until the financial asset is derecognized, its
cumulative gains or losses are transferred to the current profit and loss. Interest income related to such financial
assets is included in the current profit and loss.
3) Equity instrument investments measured at fair value and whose changes are included in other comprehensive
income
The Company irrevocably chooses to designate some non-trading equity instrument investments as financial
assets measured at fair value and whose changes are included in other comprehensive income. Only relevant
dividend income is included in the current profit and loss, and changes in fair value are recognized as other
comprehensive income, until the financial asset is derecognized, its accumulated gains or losses are transferred to
retained earnings.
4) Financial assets measured at fair value and whose changes are included in the current profit and loss
Financial assets except for above financial assets measured at amortized cost and financial assets measured at fair
value and whose changes are included in other comprehensive income are classified as financial assets measured
at fair value and whose changes are included in the current profit and loss. During initial recognition, in order to
eliminate or significantly reduce accounting mismatches, financial assets can be designated as financial assets
measured at fair value and whose changes included in the current profit and loss. For such financial assets, fair
value is used for subsequent measurement, and all changes in fair value are included in the current profit and loss.
When and only when the Company changes its business model for managing financial assets, it will reclassify all
affected related financial assets.
For financial assets measured at fair value and whose changes are included in the current profit or loss, the related
transaction costs are directly included in the current profit and loss, and the related transaction costs of other types
of financial assets are included in the initial recognition amount.
(3) Classification and measurement of financial liabilities
The Company’s financial liabilities are classified as financial liabilities measured at amortized cost and financial
liabilities measured at fair value and whose changes are included in the current profit and loss at initial
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recognition.
Financial liabilities that meet one of the following conditions can be designated as financial liabilities measured at
fair value and whose changes are included in current profit or loss during initial measurement: (1) This
designation can eliminate or significantly reduce accounting mismatches; (2) According to the group risk
management or investment strategies stated in official written documents, management and performance
evaluation of financial liability portfolios or financial assets and financial liability portfolios are conducted based
on fair value, and are reported to key management personnel within the group on this basis; (3) The financial
liability includes embedded derivatives that need to be split separately.
The Company determines the classification of financial liabilities at initial recognition. For financial liabilities that
are measured at fair value and whose changes are included in the current profit or loss, the related transaction
costs are directly included in the current profit and loss, and the related transaction costs of other financial
liabilities are included in its initial recognition amount.
The subsequent measurement of financial liabilities depends on their classification:
1) Financial liabilities measured at amortized cost
For such financial liabilities, adopt actual interest rate method and make subsequent measurements based on
amortized costs.
2) Financial liabilities measured at fair value and whose changes are included in the current profit and loss
Financial liabilities that are measured at fair value and whose changes are included in the current profit or loss
include trading financial liabilities (including derivatives that are financial liabilities) and financial liabilities
designated to be measured at fair value at the initial recognition and whose changes are included in the current
profit or loss.
(4) Financial instruments offset
If the following conditions are met at the same time, the financial assets and financial liabilities are listed in the
balance sheet with the net amount after mutual offset: legal right to offset the confirmed amount, and this legal
right is currently executable; Net settlement, or simultaneous realization of the financial assets and liquidation of
the financial liabilities.
(5) Impairment of financial assets
The Company recognizes the loss provisions on the basis of expected credit losses for financial assets measured at
amortized cost, debt instrument investments measured at fair value and whose changes are included in other
comprehensive income and financial guarantee contracts. Credit loss refers to the difference between all
contractual cash flows receivable under the contract and discounted according to original actual interest rate by
the Company and all expected receivable cash flows, that is, the present value of all cash shortages.
The Company considers all reasonable and evidence-based information, including forward-looking information,
and estimates the expected credit loss of financial assets measured at amortized cost and financial assets measured
at fair value and whose changes are included in other comprehensive income (debt instruments) in a single or
combined manner.
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1) General model of expected credit loss
If the credit risk of the financial instrument has increased significantly since the initial recognition, the Company
measures its loss provisions in accordance with the amount equivalent to the expected credit loss of the financial
instrument for the entire duration; if the credit risk of the financial instrument has not significantly increased since
the initial recognition, the Company measures its loss provisions in accordance with the amount equivalent to the
expected credit loss of the financial instrument in the next 12 months. The resulting increased or reversed amount
of the loss provisions is included in the current profit and loss as an impairment loss or gain. For the Company’s
specific assessment of credit risk, please see details in Note IX. Risks Related to Financial Instruments”.
Generally, the Company believes that the credit risk of the financial instrument has significantly increased when it
exceeds 30 days after the due date, unless there is concrete evidence that the credit risk of the financial instrument
has not increased significantly since initial recognition.
Specifically, the Company divides the process of credit impairment of financial instruments of which no credit
impairment has occurred at the time of purchase or origin into three stages. There are different accounting
treatment methods for the impairment of financial instruments at different stages:
Stage one: Credit risk has not increased significantly since initial recognition
For a financial instrument at this stage, the enterprise should measure the loss provisions according to the
expected credit losses in the next 12 months, and calculate the interest income based on its book balance (that is,
without deducting provisions for impairment) and the actual interest rate (if the instrument is a financial asset, the
same below).
Stage two: Credit risk has increased significantly since initial recognition but no credit impairment has occurred
For a financial instrument at this stage, the enterprise should measure the loss provisions according to the
expected credit loss of the instrument for its entire duration, and calculate the interest income based on its book
balance and actual interest rate.
Stage three: Credit impairment occurs after initial recognition
For a financial instrument at this stage, the enterprise should measure the loss provisions based on the expected
credit losses of the instrument for its entire duration, but the calculation of interest income is different from the
financial assets at the previous two stages. For financial assets that have suffered credit impairment, the enterprise
should calculate interest income based on its amortized cost (book balance minus the provisions for impairment,
i.e., book value) and the actual interest rate.
For financial assets that have suffered credit impairment at the time of purchase or origin, the enterprise should
only recognize changes in expected credit losses for the entire duration after initial recognition as loss provisions,
and calculate the interest income based on its amortized cost and credit-adjusted actual interest rate.
2) The Company chooses not to compare the financial instrument with lower credit risk on the balance sheet date
with its credit risk at initial recognition, but directly makes the assumption that the credit risk of the instrument
has not increased significantly since the initial recognition.
If the enterprise confirms that the default risk of financial instruments is low, the borrower has a strong ability to
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fulfill its contractual cash flow obligations in the short term, and even if there are adverse changes in the economic
situation and operating environment in a longer period of time, it will not necessarily reduce the borrower’s ability
to fulfill its contractual cash flow obligations, then the financial instrument can be considered to have lower credit
risk.
3) Accounts receivable and lease receivables
The Company adopts the simplified model of expected credit loss for accounts receivables specified in
“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant financing
components (including the case that the financing components in contracts that do not exceed one year are not
considered according to the standards), that is, always measures their loss provisions according to the amount of
expected credit loss during the entire duration.
The Company makes accounting policy choices for the receivables containing significant financing components
and the lease receivables specified in “Accounting Standards for Business Enterprises No.21 - Leases”, and
chooses to adopt the simplified model of expected credit losses, that is, to measure the loss provisions in
accordance with the amount of expected credit losses throughout the entire duration.
(6) Transfer of financial assets
Where the Company has transferred almost all the risks and rewards in the ownership of the financial asset to the
transferee, the recognition of the financial assets shall be terminated; where almost all risks and rewards in the
ownership of a financial asset are retained, the recognition of the financial assets are not terminated.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset, it
shall be accounted for as follows: the financial asset should be terminated if the Group waives control over the
asset; it recognizes the financial asset to the extent of its continuing involvement in the transferred financial asset
and recognizes an associated liability if the Group does not waives control over the asset.
If the transferred financial assets continue to be involved by providing financial guarantee, the assets continue to
be involved shall be recognized according to the lower of the book value of the financial assets and the amount of
financial guarantee. The financial guarantee amount means the maximum amount of consideration received which
will be required to be repaid.
11.Note receivable
The Group adopts the simplified model of expected credit loss for the accounts receivables specified in
“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant financing
components (including the case that the financing components in contracts that do not exceed one year are not
considered according to the standards), that is, always measures their loss provisions according to the amount of
expected credit loss during the entire duration, and the resulting increased or reversed amount of the loss provision
is included in the current profit and loss as an impairment loss or gain. The accrual method is as follows:
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The Company divides the bills receivable into two types, i.e. bank acceptance bills and commercial acceptance
bills portfolios, according to the type of financial instruments. For bank acceptance bills, the accepting bank pays
the determined amount to the taker or the bearer unconditionally due to the maturity of the bills, the overdue credit
loss is low and has not increased significantly since the initial confirmation, the Company believes that the risk of
overdue default is 0; for commercial acceptance bills, the Company believes that the probability of default is
related to the aging, we use the aging analysis method to accrue bad debt provisions, for details of the accrual ratio,
please refer to III-12 Accounting Policies and Estimates of Accounts Receivable.
12.Account receivable
The Company adopts the simplified model of expected credit loss for accounts receivables specified in
“Accounting Standards for Business Enterprises No.14 - Revenue” and without containing significant financing
components (including the case that the financing components in contracts that do not exceed one year are not
considered according to the standards), that is, always measures their loss provisions according to the amount of
expected credit loss during the entire duration, and the resulting increased or reversed amount of the loss provision
is included in the current profit and loss as an impairment loss or gain.
13.Receivable financing
For accounts receivable that contain a significant financing component, the Company chooses to use the
simplified model of expected credit losses, that is, to always measure its loss provisions according to the amount
of expected credit losses during the entire duration.
1. Simplified model of expected credit losses: always measure the loss provisions according to the amount of
expected credit losses during the entire duration
The Company considers all reasonable and well-founded information, including estimates of expected credit
losses on accounts receivable in a single or combined manner.
(1) Account receivable with single significant amount and withdrawal single item bad debt provision
Basis or amount of judgment for account with single significant
amount
Withdrawal method for bad debt provision of account
receivable with single significant amount
Receivable commercial acceptance bill, account receivable and
other receivables with single amount more than 5 million yuan
(including)
Carry out impairment test separately, and withdraw bad debt
provision according to the difference between the present value
of future cash flow and its book value
(2)Receivables with provision for bad debts by portfolio
Portfolio determine basis
Age analysis On the basis of the actual loss rate of the portfolio of receivables
with similar credit risk characteristics which are the same or
similar in the previous year, for the single amount of
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non-material receivables, it is divided into several portfolios
according to the credit risk characteristics together with the
receivables without impairment after the separate test
Other Bank acceptance
In the combination, the proportion of bad debt provision withdrawn by aging analysis method is as follow:
Account age
Accrual proportion of commercial
acceptance bill receivable
Withdrawing proportion
of the account receivable
Withdrawing proportion of
other receivable
Within one year(one year included) 0.3% 0.3% 0.3%
1～2 years (2-year included) 100% 0.3% 0.3%
2～3 years (3-year included) 100% 0.3% 0.3%
Over 3 years 100% 100% 100%
Including: determined to be
un-collectible
Write off Write off Write off
(3) Account receivable with significant single amount and single provision for bad debts
Basis or amount of judgment for account with single minor
amount
Withdrawal method for bad debt provision of account
receivable with single minor amount
Receivable commercial acceptance bill, account receivable and
other receivables with single amount less than 5 million yuan
(including), and the probability of recall is small by nature
Carry out impairment test separately, and withdraw bad debt
provision according to the difference between the present value
of future cash flow and its book value
2. A general model of expected credit loss
Found more in the treatment above said in 10. Financial Instrument
14.Other account receivable
Determination method and accounting treatment of the expected credit loss of other account receivable
(1) Account receivable with single significant amount and withdrawal single item bad debt provision:
Account with single significant amount: the single receivable has over 5 million yuan at end of the period
At the end of the period, the receivables with significant single amount are tested separately for impairment. If
there is objective evidence that they have been impaired, the impairment loss will be recognized and the provision
for bad debts will be made based on the balance between the present value of future cash flows and its book value.
(2)Account receivable with bad debt provision accrual by portfolio
For the receivables with non significant single amount at the end of the period, they are divided into several
combinations together with the receivables without impairment after independent test according to the account age
as the credit risk feature. The impairment loss is calculated and determined according to a certain proportion of
the ending balance of these receivables combinations (impairment test can be conducted separately), and the bad
debt provision is withdrawn.
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In addition to the receivables for which impairment provision has been separately made, the company determines
the following proportion of provision for bad debts based on the actual loss rate of the combination of receivables
with account age as credit risk characteristics in the previous year, which is the same or similar to the receivables,
in combination with the current situation:
(2) Any analysis
Account age
Accrual proportion of account
receivable
Accrual proportion of other
account receivable
Within one year(one year included) 0.3% 0.3%
1～2 years (2-year included) 0.3% 0.3%
2～3 years (3-year included) 0.3% 0.3%
Over 3 years 100% 100%
Including: determined to be un-collectible Write off Write off
Note: no provision is made for bad debt for inter-company receivables and other receivables with the scope of
consolidation.
(3) Account receivable with minor single amount but single provision for bad debts
Reasons for provision of bad debt reserve on single base: The Company conducts impairment test separately for
receivables that are not significant in single amount but have the following characteristics, if there is objective
evidence that they have been impaired, the impairment loss will be recognized and the provision for bad debts will
be made based on the balance between the present value of future cash flows and its book value; receivables that
are in dispute with the other party or involving litigation or arbitration; there are clear signs indicating that the
debtor is likely to be unable to fulfill the repayment obligations of the receivables.
Provision method of bad debt reserve: If the impairment test is carried out separately and there is objective
evidence that it has been impaired, the impairment loss will be recognized and the provision for bad debts will be
made based on the balance between the present value of future cash flows and its book value.
15. Inventory
(1) Classification of inventory
The inventory of the Company refers to such seven classifications as the raw materials, product in process, goods
on hand, wrap page, low value consumables, materials for consigned processing and goods sold.
(2) Valuation of inventories
Inventories are initially measured at cost upon acquisition, which includes procurement costs, processing costs
and other costs. The prices of inventories are calculated using weighted average method when they are delivered.
(3) Provision for inventory impairment
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When a comprehensive count of inventories is done at the end of the period, provision for inventory impairment is
allocated or adjusted using the lower of the cost of inventory and the net realizable value. The net realizable value
of stock in inventory (including finished products, inventory merchandize and materials for sale) that can be sold
directly is determined using the estimated saleable price of such inventory deducted by the cost of sales and
relevant taxation over the course of ordinary production and operation. The net realizable value of material in
inventory that requires processing is determined using the estimated saleable price of the finished product
deducted by the cost to completion, estimated cost of sales and relevant taxation over the course of ordinary
production and operation. The net realizable value of inventory held for performance of sales contract or labor
service contract is determined based on the contractual price; in case the amount of inventory held exceeds the
contractual amount, the net realizable value of the excess portion of inventory is calculated using the normal
saleable price.
Provision for impairment is made according to individual items of inventories at the end of the period; however,
for inventories with large quantity and low unit price, the provision is made by categories; inventories of products
that are produced and sold in the same region or with the same or similar purpose or usage and are difficult to be
measured separately are combined for provision for impairment.
If the factors causing a previous write-off of inventory value has disappeared, the amount written-off is reversed
and the amount provided for inventory impairment is reversed and recognized in profit or loss for the period.
(4)Inventory system
Perpetual inventory system is adopted.
16.Contractual assets
Nil
17.Contractual cost
Nil
18. Assets held for sale
The Company classifies such corporate components (or non-current assets) that meet the following criteria as
held-for-sale: (1) Disposable immediately under current conditions based on similar transactions for disposals of
such assets or practices for the disposal group; (2) Probable disposal; that is, a decision has been made on a plan
for disposal and an undertaking to purchase has been obtained (the undertaking to purchase means a binding
purchase agreement entered into by the Company and other parties, which contains transaction price, time and
adequately strict punishments for breach of contract provisions, which renders the possibility of material
adjustment or revocation of the agreement is extremely minor), and the disposal is expected to be completed
within a year. Besides, approval from relevant competent authorities or regulatory authorities has been obtained as
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required by relevant rules.
The expected net residual value of asset held for sale is adjusted by the Company to reflect its fair value less
selling expense, provided that the net amount shall not exceed the original carrying value of the asset. In case that
the original value is higher than the adjusted expected net residual value, the difference shall be recorded in profit
or loss for the period as asset impairment loss, and allowance of impairment for the asset shall be provided.
Impairment loss recognized in respect of the disposal group held for sale shall be used to offset the carrying value
of the goodwill in the disposal group, and then offset the carrying value of the non-current assets within the
disposal group based on their respective proportion of their carrying value.
In respect of the non-current assets held for sale, if the net amount after their fair value less the selling expenses
increased as at the subsequent balance date, the reduced amount before will be recovered and reversed in the
assets impairment loss amount recognized after being classified as held for sale, and the reversed amount will be
recorded in the current profits or loss. The impairment loss on assets recognized before being classified as held for
sale will not be reversed. In respect of the disposal group held for sale, if the net amount after their fair value less
the selling expenses increased as at the subsequent balance date, the reduced amount before will be recovered and
reversed in the assets impairment loss amount recognized in non-current assets after being classified as held for
sale, and the reversed amount will be recorded in the current profits or loss. The reduced book value of the
goodwill as well as the impairment loss on assets recognized before the non-current assets are classified as held
for sale will not be reversed. The subsequent reversed amount in respect of the impairment loss on assets
recognized in the disposal group held for sale will increase the book value in proportion of the book value of each
non-current assets (other than goodwill) in the disposal group.
In respect of loss of control in a subsidiary arising from disposal of the investment in such subsidiary, the
investment in a subsidiary shall be classified as held for sale in its entirety in the individual financial statement of
the parent company, and all the assets and liabilities of the subsidiary shall be classified as held for sale in the
consolidated financial statement subject to that the proposed disposal of investment in the subsidiary satisfies such
conditions as required for being classified as held for sale notwithstanding part equity investment will be retained
by the Company after such disposal.
19.Debt investment
Nil
20.Other debt investment
Nil
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21.Long-term account receivable
Nil
22. Long-term equity investment
(1)Determination of investment costs
1) If it is formed by the business combination under the common control, and that the combining party takes cash
payment, transfer of non-cash assets, assumption of debts or issuance of equity securities as the consolidation
consideration, the shares of the book value of the owner’s equity obtained from the combined party on the date of
combination in the ultimate controlling party’s consolidated financial statements shall be recognized as its initial
investment cost. Capital reserves shall be adjusted according to the balance between the initial investment cost for
long-term equity investment and the book value of paid consolidation consideration or the total face value of
issued shares (capital premium or equity premium). If capital reserves are insufficient for offset, retained earnings
shall be adjusted.
As for business combination under the common control realized by the Company through several transactions, the
initial investment cost of the investment shall be determined based on the share of the carrying value of the
owners’ equity of the consolidated party as calculated according to the shareholding proportion on the
consolidation date. Difference between initial investment cost and the carrying value of long-term equity
investment before combination and the sum of carrying value of newly paid consideration for additional shares
acquired on the date of combination is to adjust capital reserve (capital premium or equity premium). If the
balance of capital reserve is insufficient, any excess is adjusted to retained earnings.
2) As for long-term equity investment formed from business combination not under common control, the fair
value of the consolidated consideration paid shall be deemed as the initial investment cost on the acquisition date.
3) Except those ones formed by the business combination, for all items obtained by means of cash payment,
actually paid acquisition costs shall be taken as the initial investment cost. For those ones obtained by the issuance
of equity securities, the fair value of the issued equity securities shall be taken as the initial investment cost. For
those ones invested by investors, the value agreed in the investment contract or agreement shall be taken as the
initial investment cost, provided that the value agreed in the contract or agreement shall be fair.
(2)Subsequent measurement and profit or loss recognition
For a long-term equity investment where the Company can exercise control over the investee, the long-term
investment is accounted for using the cost method in the Company’s financial statements. The equity method is
adopted when the Group has joint control, or exercises significant influence on the investee.
Under cost method, long term equity investment is measured at initial investment cost. Except for the price
actually paid for obtaining the investment or the cash dividends or profits declared but not yet distributed which is
included in the consideration, the Company recognizes cash dividends or profits declared by the investee as
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current investment gains, and determine whether there is impairment on long term investment according to
relevant assets impairment policies.
Under equity method, when the initial investment cost of the long-term equity investment exceeds the share of fair
value in the net identifiable assets in the investee, the difference shall be included in initial investment cost of the
long-term equity investment. When the initial investment cost is lower than the share of fair value in the net
identifiable asset in the investee, such difference is recognized in profit or loss for the period with adjustment of
cost of the long-term equity investment.
Under equity method, after the Company acquires a long-term equity investment, it shall, in accordance with its
attributable share of the net profit or loss realized by the investee, recognize the investment profit or loss and
adjust carrying value of the investment. The Group recognizes its share of the investee’s net profits or losses after
making appropriate adjustments to the investee’s net profits and losses based on the fair value of the investee’s
identifiable assets at the acquisition date, using the Group’s accounting policies and periods, and eliminating the
portion of the profits or losses arising from internal transactions with its joint ventures and associates, attributable
to the investing entity according to its shareholding proportion (but impairment losses for assets arising from
internal transactions shall be recognized in full). The carrying amount of the investment is reduced based on the
Group’s share of any profit distributions or cash dividends declared by the investee. The Group’s share of net
losses of the investee is recognized to the extent the carrying amount of the investment together with any
long-term interests that in substance form part of its net investment in the investee is reduced to zero, except that
the Group has the obligations to assume additional losses. The Group adjusts the carrying amount of the long-term
equity investment for any changes in owners’ equity of the investee (other than net profits or losses) and includes
the corresponding adjustments in the owners’ equity of the Group.
(3) Determination of control and significant influence on investee
Control is the power over an investee. An investor must have exposure or rights to variable returns from its
involvement with the investee, and the ability to use its power over the investee to affect the amount of the
investor’s returns. Significant influence is the power to participate in the financial and operating policy decisions
of the investee but is not control or joint control with other parties over those policies
(4)Disposal of long-term equity investment
1) Partial disposal of long term investment in which control is retained
When long term investment is been partially disposed but control is retained by the company, the difference
between disposal proceeds and carrying amount of the proportion being disposed is accounted for through profit
or loss.
2) Partial disposal of long term investment in which control is lost
When long term investment is partially disposed and control is lost as a result, the carrying value of the long term
invest on the stock right, the difference between carrying amount of the part being disposed and disposal proceeds
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should be recognized as profit or loss. The residual part should be treated as long term investment or other
financial assets according to their carrying amount. After partial disposal, if the company is able to exert
significant influence or common control over the investee, the investment should be measured according to cost
method or equity method, in compliance with relevant accounting standards and regulations.
(5)Impairment test and provision for impairment
If there is objective evidence on the balance sheet date showing investment in subsidiaries, associates and joint
ventures is impaired, provision of impairment shall be made against the difference between the carrying amount
and the recoverable amount of the investment.
23. Investment real estate
Measurement mode
Measured by cost method
Depreciation or amortization method
(1) Investment property including land use right which has been rented out, land use right which is held for
transfer upon appreciation and buildings which has been rented out.
(2) Investment properties are initially measured at cost and subsequently measured as per the cost pattern, and
relevant withdrawal of provision for depreciation or amortization is carried out by the same method for fixed
assets and intangible assets. As of the balance sheet date, where there is any indication that an investment property
experiences impairment, the relevant impairment provision shall be provided for based on the difference between
the carrying value and the recoverable amount.
24. Fixed assets
(1) Recognition conditions
Fixed assets refer to the tangible assets for production of products, provision of labor, lease or operation, and with a service life in
excess of one financial year.
(2) Depreciation methods
Category Method Years of depreciation Scrap value rate Yearly depreciation rate
Housing buildings Straight-line depreciation 20-year 10% 4.5%
Machinery equipment Straight-line depreciation 10-year 10% 9%
Means of transportation Straight-line depreciation 5-year 10% 18%
Electronic equipment and
others
Straight-line depreciation 5-year 10% 18%
Fixed assets are recorded at the actual cost at the time of acquisition, and depreciation is calculated and withdrawn using the average
life method from the month after they reach the intended usable state
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(3) Recognition basis, valuation and depreciation method for financial lease assets
Finance lease is determined when one or a combination of the following conditions are satisfied: (1) the
ownership has been transferred to the lessee when the leasing term is due; (2) the lessee has the option to purchase
the leasing asset at a price that is much lower than its fair value, so it can be reasonably determined that the lessee
will take the option at the very beginning of the lease; (3) the leasing term accounts for most time of the useful life
(ordinarily accounting for 75% or higher) even if the ownership does not transfer to the lessee; (4) the present
value of the minimum amount of rent that the lessee has to pay at the first day of the lease amounts to 90% or
higher of its fair value at the same date; or the present value of the minimum amount of rent that the lessor collects
at the first day of the lease amounts to 90% or higher of its fair value at the same date; and/or (5) the leased assets
are of such a specialized nature that only the lessee can use them without major modifications. Fixed assets
rented-in under finance lease are recorded at the lower of fair value and the present value of the minimum lease
payment at the inception of the lease, and are depreciated following the depreciation policy for self-owned fixed
assets.
25. Construction in progress
(1)When the construction in progress has reached the intended condition for use, it will be treated as fixed assets
as per the actual construction cost. If the construction in progress has reached the intended condition for use but
completion accounting is not carried out, the construction in progress should be first treated as fixed assets as per
the estimated value. After completion accounting is carried out, the original estimated value should be adjusted as
per the actual cost, but the provision for depreciation withdrawn should not be adjusted.
(2)As of the balance sheet date, where there is any indication that a construction in process experiences
impairment, the relevant impairment provision shall be provided for based on the difference between the carrying
value and the recoverable amount.
26. Borrowing expenses
Nil
27.Biological assets
Nil
28. Oil and gas asset
Nil
29.Right-of-use asset
Nil
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30. Intangible assets
(1) Valuation method, service life and impairment test
1.Intangible assets include land use right, patent right and non-patent technology, which should be initially
measured at cost.
2.Intangible assets with limited service life should be amortized systematically and reasonably in their service
lives as per the expected form of realization economic benefits relating to the said intangible assets. If the form of
realization cannot be reliably determined, the intangible assets should be amortized on a straight-line basis.
3.At the balance sheet date, when there is any indication that the intangible assets with finite useful lives may be
impaired, a provision for impairment loss is recognized on the excess of the carrying amounts of the assets over
their recoverable amounts. Intangible assets with infinite useful lives and intangible assets not satisfying the
condition for use yet are subject to impairment test each year notwithstanding whether the assets are impaired.
(2) Internal accounting policies relating to research and development expenditures
Expenditure incurred in the research phase of internal R&D shall be included in current gain/loss at the time of
occurrence. Intangible assets recognized for expenditure in exploitation stage by satisfying the followed at same
time: ①it is technically feasible that the intangible asset can be used or sold upon completion; ②there is
intention to complete the intangible asset for use or sale; ③the intangible asset can produce economic benefits,
including there is evidence that the products produced using the intangible asset has a market or the intangible
asset itself has a market; if the intangible asset is for internal use, there is evidence that there exists usage for the
intangible asset; ④there is sufficient support in terms of technology, financial resources and other resources in
order to complete the development of the intangible asset, and there is capability to use or sell the intangible asset;
⑤the expenses attributable to the development phase of the intangible asset can be measured reliably.
31. Impairment of long-term assets
Nil
32. Long-term expenses to be apportioned
Long-term expenses to be apportioned are booked by actual amount occurred, and apportioned evenly during the
benefit period or regulated period.In case that the long-term deferred expenses are not likely to benefit the
subsequent accounting periods, the outstanding value of the item to be amortized shall be included in current
profit or loss in full.
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33.Contractual liabilities
Nil
34. Employee compensation
(1) Accounting treatment for short-term compensation
During the accounting period when staff providing service to the Company, the actual short-term compensation
occurred shall recognized as liabilities and reckoned into current gains/losses or relevant assets costs. The
non-monetary welfare is measured by fair value.
(2) Accounting treatment for post-employment benefit
The Company terminates the labor relationship with an employee before the employee labor contract expires, or
proposes to offer a compensation to encourage an employee to voluntarily accept the downsizing. When the
Company cannot unilaterally withdraw the labor relationship cancellation plan or the downsizing proposal nor
confirm the relevant costs of the restructuring involving the payment of termination benefits, whichever is earlier,
the liabilities arising from the compensation for the termination of the labor relationship with the employees are
recognized and included in the current profit and loss.
(3) Accounting for retirement benefits
When the Company terminates the employment relationship with employees before the end of the employment
contracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, the
Company shall recognize employee compensation liabilities arising from compensation for staff dismissal and
included in profit or loss for the current period, when the Company cannot revoke unilaterally compensation for
dismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the Company
recognize cost and expenses related to payment of compensation for dismissal and restructuring, whichever is
earlier.
(4) Accounting for other long-term employee benefits
The employees of the Company have participated in the basic social endowment insurance organized and
implemented by the local labor and social security department. The Company pays the endowment insurance
premium to the local basic social endowment insurance agency on a monthly basis based on the base and ratio of
the local basic social endowment insurance payment. After the retirement of employees, the local labor and social
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security department has the responsibility to pay the social basic pension to the retired employees. During the
accounting period in which employees provide services, the Company recognizes the amount payable calculated
according to the above social security insurance regulations as the liabilities and includes them in the current
profit and loss or related asset costs.
35.Lease liabilities
Nil
36. Accrual liability
Nil
37. Share-based payment
(1)Types of share-based payment
Share-based payment comprises of equity-settled share-based payment and cash-settled share-based payment.
(2)Determination of fair value of equity instruments
1)determined based on the price quoted in an active market if there exists active market for the instrument.
2)determined by adoption of valuation technology if there exists no active market, including by reference to the
recent arm’s length market transactions between knowledgeable, willing parties, reference to the current fair value
of another instrument that is substantially the same, discounted cash flow analysis and option pricing models.
(3)Basis for determination of the best estimate of exercisable equity instruments
To be determined based on the subsequent information relating to latest change of exercisable employees.
(4)Accounting relating to implementation, amendment and termination of share-based payment schemes
1)Equity-settled share-based payment
For equity instruments that may be exercised immediately after the grant, the fair value of such instrument shall,
on the date of the grant, be recognized in relevant costs or expenses with the increase in the capital reserve
accordingly. For equity-settled share-based payment made in return for the rendering of employee services that
cannot be exercised until the services are fully rendered during vesting period or specified performance targets are
met, on each balance sheet date within the vesting period, the services acquired in the current period shall, based
on the best estimate of the number of exercisable instruments, be recognized in relevant costs or expenses and the
capital reserves at the fair value of such instruments on the date of the grant.
For equity-settled share-based payment made in exchange for service from other parties, such payment shall be
measured at the fair value of the service as of the acquisition date is the fair value can be measured reliably. And if
the fair value of the service cannot be measured reliably while the fair value of the equity instrument can be
measured reliably, it shall be measure at the fair value of the instrument as of the date on which the service is
acquired, which shall be recorded in relevant cost or expense with increase in owners’ equity accordingly.
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2)Cash-settled share-based payment
For the cash-settled share-based payment that may be exercised immediately after the grant in exchange for render
of service by employees, the fair value of the liability incurred by the Company shall, on the date of the grant, be
recognized in relevant costs or expenses and the liabilities shall be increased accordingly. For cash-settled
share-based payment made in return for the rendering of employee services that cannot be exercised until the
services are fully provided during vesting period or specified performance targets are met, on each balance sheet
date within the vesting period, the services acquired in the current period shall, based on the best estimate of the
number of exercisable instruments, be recognized in relevant costs or expenses and the corresponding liabilities at
the fair value of the liability incurred by the Company.
3)Revision and termination of share-based payment schemes
If the revision results in an increase in the fair value of the equity instruments granted, the Company shall
recognize the increase in the services rendered accordingly at the increased fair value of the equity instruments. If
the revision results in an increase in the number of equity instruments granted, the Company will recognize the
increase in the services rendered accordingly at the fair value of the increased number of equity instruments. If the
Company revises the vesting conditions on terms favorable to the employees, the Company will take into
consideration of the revised vesting conditions when dealing with the vesting conditions.
If the revision results in a decrease in the fair value of the equity instruments granted, the Company shall continue
recognize the amount of services rendered accordingly at the fair value of the equity instruments on the date of
grant without considering the decrease in the fair value of the equity instruments. If the revision results in a
decrease in the number of equity instruments granted, the Company will account for such decrease by reducing
part of the cancellation of equity instruments granted. If the Company revises the vesting conditions on terms not
favorable to the employees, the Company will not take into consideration of the revised vesting conditions when
dealing with the vesting conditions.
If the Company cancels the equity instruments granted or settles the equity instruments granted during the vesting
period (other than cancellation as a result of failure to satisfy the vesting conditions), such cancellation or
settlement will be treated as accelerated exercisable rights and the original amount in the remaining vesting period
will be recognized immediately.
38. Other financial instruments including senior shares and perpetual bonds
Nil
39. Revenue
Implemented the new revenue standards
□Yes √No
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(1) Sales of goods
Income from sale of goods is recognized when the following conditions are met: 1)the Company has transferred
the key risks and return on the ownership of the merchandize to the buyer; 2)the Company has not retained
continued management rights associated with ownership and no longer exercises effective control on the
merchandize sold; 3)the amount of income can be reliably measured; 4)the relevant economic benefits are very
likely to flow to the enterprise; 5)the costs incurred or to be incurred can be reliably measured.
Timing for recognition of revenue of the Company from products sales: revenue is recognized upon delivery of
products to and confirmed by purchaser with signature.
(2)Rendering of services
When the outcome of the transaction can be estimated reliably, revenue from rendering of services is recognized
using the percentage of completion method. When the outcome of the transaction cannot be estimated reliably at
the balance sheet date, revenue is recognized based on the amount of the costs incurred and the costs incurred are
charged off at the same amount when the costs incurred are expected to be recoverable; and no revenue is
recognized and the costs incurred are charged off as an expense of the period when the costs incurred are not
expected to be recovered.
(3)Transfer of asset use right revenue
When the economic benefits related to the transaction is likely to flow to the Company and the income
amount can be reliably calculated, the Company shall recognize income arising from transfer of asset use right.
The income of interests is determined on basis of the time and real interest rate of the Company’s cash funds which
is utilized by other persons. The income of royalties is determined on basis of the chargeable time and method
fixed under relevant agreement or contract.
40. Government Grants
(1) Government grants including those relating to assets and relating to income
(2)government grant, if granted as monetary assets, are measured at the amount received or receivable, and
measured at fair value if granted as non-monetary assets. If the fair value can not be determined reliably, they
shall be measured at nominal value.
(3) Aggregate method for government grants:
1)government grants relating to assets are recognized as deferred income, which shall be recorded in profit or loss
by installment reasonably and systematically within the useful life of the assets. If assets are sold, transferred,
discarded as useless or damaged prior to expiration of the useful life, the remaining deferred income undistributed
shall be transferred to profit or loss for the period in which the assets are disposed.
2)If government grants relating to income are used to compensate for relevant costs or loss for the subsequent
periods, they shall be recognized as deferred income, and recorded in profit or loss for the period in which the
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relevant costs are recognized. If government grants relating to income are used to compensate for the relevant
costs or loss occurred, they shall be recorded in profit or loss for the period directly.
(4)Net method for government grants
1) Government grants relating to assets are used to write off the carrying value of the relevant assets;
2) If government grants relating to income are used to compensate for relevant costs or loss for the subsequent
periods, they shall be recognized as deferred income, and recorded in profit or loss for the period in which offset
against the relevant costs. If government grants relating to income are used to compensate for the relevant costs or
loss occurred, they shall be offset against the relevant costs for the period directly.
(5)The Company adopts aggregated accounting method for the government grants received.
(6)As for the government grants comprising both portions relating to assets and income, separate accounting shall
be made for different portion; in case it is hard to differentiate the portions, the grants will be recorded as related
to income in general.
(7)The Company realizes government grants relating to its normal activities as other income based on the
substance of economic business, and if not related to its normal activities, realized as non-operating income and
expenditure.
(8)Subsidized loans from preferential policy obtained by the Company are classified based on whether subsidy
funds are paid to the loaning bank or directly to the Company by the competent financial authorities and are
treated based on the following principles:
1)Where subsidy funds are paid to the loaning bank by the competent financial authorities and the bank then
provides loans to the Company at a preferential policy rate, accounting shall be made by the Company as follows:
a. Recognizes the actual borrowing amount received as the carrying value of the loan, and calculates the relevant
borrowing costs based on the principal and the preferential policy rate.
b.Recognizes the fair value of the loan as the carrying value and calculates the borrowing cost under effective
interest method, and recognizes the difference between the actual amount received and the fair value of the loan as
deferred income. Deferred income is amortized over the term of the loan under effective interest method and
offset against the relevant borrowing costs.
2)Where subsidy funds are paid directly to the Company, the Company will offset the corresponding subsidy
against the relevant borrowing expenses.
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41. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference between the
carrying amount and tax base of assets and liabilities (and the difference of the carrying amount and tax base
of items not recognized as assets and liabilities but with their tax base being able to be determined according
to tax laws) and in accordance with the tax rate applicable to the period during which the assets are expected
to be recovered or the liabilities are expected to be settled.
(2)A deferred tax asset is recognized to the extent of the amount of the taxable income, which it is most likely to
obtain and which can be deducted from the deductible temporary difference. At the balance sheet date, if there
is any exact evidence that it is probable that future taxable profits will be available against which deductible
temporary differences can be utilized, the deferred tax assets unrecognized in prior periods are recognized.
(3)At the balance sheet date, the carrying amount of deferred tax assets is reviewed. The carrying amount of a
deferred tax asset is reduced to the extent that it is no longer probable that sufficient taxable profits will be
available to allow the benefit of the deferred tax asset to be utilized. Such reduction is subsequently reversed to
the extent that it becomes probable that sufficient taxable income will be available.
(4)The income tax and deferred tax for the period are treated as income tax expenses or income through profit or
loss, excluding those arising from the following circumstances: ① business combination; and ② the
transactions or items directly recognized in equity.
42. Lease
(1)Accounting for operating lease
When the Company is the lessee, lease payments are recognized as cost or profit or loss with straight-line method
over the lease term. Initial expenses are recognized directly into profit or loss. Contingent rents are charged as
profit or loss in the periods in which they are incurred.
When the Company is the lessor, lease income is recognized as profit or loss with straight-line method over the
lease term. Initial expenses, other than those with material amount and eligible for capitalization which are
recognized as profit or loss by installments, are recognized directly as profit or loss. Contingent rents are charged
into profit or loss in the periods in which they are incurred.
(2)Accounting for financing lease
When the company acts as lessee, at the inception of lease, the lower of fair value of leased assets at the inception
of lease and the present value of minimum lease payment is recognized as the value of leased assets. The
minimum lease payment is recognized as the value of long-term payable. Their difference is recorded as
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unrecognized finance costs with any initial direct expense incurred recorded in the value of leased assets. For each
period of the lease term, current finance cost is calculated using effective interest method.
When the company acts as lessor, at the inception of lease, the sum of minimum lease income at the inception of
lease and the initial direct expense is recognized as the value of finance lease payment receivable, with unsecured
balance also recorded. The difference between the sum of minimum lease income, initial direct expense and
unsecured balance and the sum of their present values is recognized as unrealized finance income. For each period
of the lease term, current finance income is calculated using effective interest method.
43. Other important accounting policy and estimation
Discontinued operation refers to the operation disposed or classified as held-for-sale by the Company and
presented separately under operation segments and financial statements, which has fulfilled one of the following
criteria:
(1) it represents an independent key operation or key operating region;
(2) it is part of the proposed disposal plan on an independent key operation or proposed disposal in key operating
region; or
(3) it only establishes for acquisition of subsidiary through disposal.
The enterprise shall separately list profit and loss from continuing operations and profit and loss from
discontinuing operations in the profit statement. For non-current assets held for sale or disposal groups that do not
meet the definition of discontinuing operations, the impairment losses and reversal amounts and disposal gains
and losses should be presented as profit or loss from continuing operations. Operational gains and losses and
disposal profits and losses such as impairment losses and reversal amounts of discontinuing operations should be
reported as profits or losses of discontinuing operations.
44. Major accounting policy and changes
(1) Main accounting policy changes
√ Applicable □ Not applicable
The contents and reasons of accounting
policy changes
Examination and approval procedures Note
Note receivable and account receivable” is
divide into Account receivable and Note
receivable for presentation
In consolidate balance sheet, the note
receivable at end of 2019 recorded as
580,000.00 yuan, account receivable
recorded as 38,616,523.93 yuan; note
receivable at end of 2018 recorded as 0.00
yuan and account receivable recorded as
29,007,509.02 yuan. In balance sheet of
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parent company, the note receivable at end
of 2019 recorded as 580,000.00 yuan,
account receivable recorded as
32,843,536.70 yuan; note receivable at end
of 2018 recorded as 0.00 yuan and account
receivable recorded as 12,827,954.16 yuan
”Note payable and account payable” is
divide into Account payable and Note
payable for presentation
In consolidate balance sheet, the note
payable at end of 2019 recorded as 0.00
yuan, account payable recorded as
10,191,385.23 yuan; note payable at end of
2018 recorded as 2,000,000.00 yuan and
account payable recorded as 9,979,010.69
yuan. In balance sheet of parent company,
the note payable at end of 2019 recorded as
0.00 yuan, account payable recorded as
9,002,524.60 yuan; note payable at end of
2018 recorded as 0.00 yuan and account
payable recorded as 0.00 yuan.
”Less: Loss of assets impairment” adjusted
to “Add: Loss of assets impairment (Loss is
listed with “-”)”
In consolidate profit statement, the loss of
assets impairment for 2019 recorded as
-499,175.17 yuan while recorded as
-1,200,526.41 yuan for year of 2018. In
profit statement of the parent company, the
loss of assets impairment for 2019
recorded as 0.00 yuan while recorded as
14,209.76 yuan for year of 2018.
The government grants actually received
by the enterprise, are listed under the item
of “Cash received from other operating
activities” whether it is related to assets or
income.
In consolidate cash flow statement, the
government grants reckoned in “Cash
received from other operating activities”
for year of 2019 recorded as 0.00 yuan
while recorded as 0.00 yuan for year of
2018. In cash flow statement of parent
company, the government grants reckoned
in “Cash received from other operating
activities” for year of 2019 recorded as
0.00 yuan while recorded as 0.00 yuan for
year of 2018.
When implemented the new financial
instrument standard, the financial assets
debt instrument measured by fair value and
with variation reckoned into current
gains/losses will listed under the item of
“Trading financial assets”
No impact on the financial statement while
implemented the new standards
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When implemented the new financial
instrument standard, the bad debt loss
accrual from account receivable and other
account receivable will listed under the
item of “Credit impairment loss (loss is
listed with”-”)”
Credit impairment loss in consolidate
profit statement for year of 2019 recorded
as -2,533,065.87 yuan. Credit impairment
loss in profit statement of the parent
company for year of 2019 recorded as
-2,150,073.55 yuan.
Nil
(2) Main accounting policy changes
□ Applicable √ Not applicable
(3)Adjustment on the relevant items of financial statement at beginning of the year when implemented the
new financial instrument standards, new revenue standards and new leasing standards since 2019
□ Applicable √ Not applicable
(4)Description of the comparative data at the early stage of retroactive adjustment of new financial
instrument standards or new lease standards implemented since 2019
□ Applicable √ Not applicable
45. Other
Nil
VI. Taxes
1. Main tax category and tax rate
Tax category Tax calculation evidence Tax rate
Value added tax
Sales of goods, taxable labor service
revenue, taxable income, intangible assets
income and income from property leasing
5%, 6%, 13%, 16%
Tax for maintaining and building cities Turnover tax payable 7%
Enterprise income tax Taxable income 25%, 20%
Educational surtax Turnover tax payable 3%
Local educational surtax Turnover tax payable 2%
Property tax 70% of the original value for property 1.2%
Stamp tax
Amount of the contract for purchasing and
sales
0.03%
Disclose reasons for different taxpaying body
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Taxpaying body Income tax rate
The Company 25%
Shenzhen Emmelle Industry Co., Ltd. 25%
Shenzhen Xinsen Jewelry Gold Supply Chain Co., Ltd. 20%
2. Tax preference
According to the “Notice on the Implementation of the Inclusive Tax Reduction and Exemption Policy for Small
and Micro Enterprises” (Caishui [2019] No.13), for the portion of the annual taxable income of small and
micro-profit enterprises not exceeding 1 million yuan, of which 25% is reckoned in taxable income, and the
corporate income tax is paid at a tax rate of 20%; for the portion of annual taxable income exceeding 1 million
yuan but not exceeding 3 million yuan, of which 50% is reckoned in taxable income, and the corporate income tax
is paid at a tax rate of 20%.
3. Other
According to the “Announcement on Deepening VAT Reform Related Policies” (MOF, STA, GAC Announcement
2019 No. 39), from April 1, 2019, if the tax rate of taxpayers’ taxable sales of VAT was originally 16%, the tax
rate is adjusted to 13%. The VAT rate of the Company and its subsidiaries has been adjusted to 13% from April 1,
2019.
VII. Notes to Items in Consolidated Financial Statements
1. Monetary fund
In RMB
Item Balance at period-end Balance at period-begin
Cash on hand 89,313.66 126,486.63
Cash in bank 5,979,003.60 16,305,989.07
Other monetary fund 6,050.65 2,056,410.56
Total 6,074,367.91 18,488,886.26
Including: total payments deposited
abroad
89,313.66 126,486.63
Other explanation
Nil
2. Trading financial assets
In RMB
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Item Balance at period-end Balance at period-begin
Including:
Including:
Other explanation:
Nil
3. Derivative financial assets
In RMB
Item Balance at period-end Balance at period-begin
Total 0.00
Other explanation:
Nil
4. Notes receivable
(1) Category
In RMB
Item Balance at period-end Balance at period-begin
Bank acceptance 580,000.00
Total 580,000.00
In RMB
Category
Balance at period-end Balance at period-begin
Book balance Bad debt provision
Book
value
Book balance Bad debt provision
Book
value Amount Ratio Amount
Accrual
ratio
Amount Ratio Amount
Accrual
ratio
Including:
Including:
Total 0.00 0.00% 0.00 0.00% 0.00 0.00 0.00% 0.00 0.00% 0.00
Bad debt provision accrual on single basis:
In RMB
Name
Balance at period-end
Book balance Bad debt provision Accrual ratio Accrual causes
Total 0.00 0.00 -- --
Bad debt provision accrual on single basis:
In RMB
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Name
Balance at period-end
Book balance Bad debt provision Accrual ratio Accrual causes
Total 0.00 0.00 -- --
Bad debt provision accrual on single basis:
In RMB
Name
Balance at period-end
Book balance Bad debt provision Accrual ratio Accrual causes
Total 0.00 0.00 -- --
Bad debt provision accrual on single basis:
In RMB
Name
Balance at period-end
Book balance Bad debt provision Accrual ratio Accrual causes
Total 0.00 0.00 -- --
Bad debt provision accrual on single basis:
In RMB
Name
Balance at period-end
Book balance Bad debt provision Accrual ratio Accrual causes
Total 0.00 0.00 -- --
Bad debt provision accrual on single basis:
In RMB
Name
Balance at period-end
Book balance Bad debt provision Accrual ratio Accrual causes
Bad debt provision accrual on portfolio:
In RMB
Name
Balance at period-end
Book balance Bad debt provision Accrual ratio
Total 0.00 0.00 --
Explanation on portfolio basis:
Bad debt provision accrual on portfolio:
In RMB
Name
Balance at period-end
Book balance Bad debt provision Accrual ratio
Total 0.00 0.00 --
Explanation on portfolio basis:
Bad debt provision accrual on portfolio:
In RMB
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Name
Balance at period-end
Book balance Bad debt provision Accrual ratio
Explanation on portfolio basis:
Nil
Bad debt provision accrual on portfolio:
In RMB
Name
Balance at period-end
Book balance Bad debt provision Accrual ratio
Explanation on portfolio basis:
Nil
Bad debt provision accrual on portfolio:
In RMB
Name
Balance at period-end
Book balance Bad debt provision Accrual ratio
Explanation on portfolio basis:
If the provision for bad debts of notes receivable is made in accordance with the general model of expected credit losses, please refer
to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Category
Balance at
period-begin
Current changes Balance at
period-end Accrual Collected or reversal Charge-off
Total 0.00 0.00 0.00 0.00 0.00
Including important amount of bad debt provision collected or reversal in the period:
□Applicable √Not applicable
(3) Note receivable pledged at period-end
In RMB
Item Amount pledged at period-end
Total 0.00
(4) Note receivable which have endorsed and discount at period-end and has not expired on balance sheet
date
In RMB
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Item Amount derecognition at period-end Amount not derecognition at period-end
Bank acceptance 16,151,069.12
Total 16,151,069.12 0.00
(5) Notes transfer to account receivable due for failure implementation by drawer at period-end
In RMB
Item Amount transfer to account receivable at period-end
Total 0.00
Other explanation
Nil
(6) Note receivable actually charge-off in the period
In RMB
Item Amount charge-off
Including important note receivable charge-off:
In RMB
Enterprise Nature Amount charge-off Causes of charge-off
Procedure for
charge-off
Amount cause by
related transactions
or not (Y/N)
Total -- 0.00 -- -- --
Explanation on note receivable change-off:
Nil
5. Account receivable
(1) Category
In RMB
Category
Balance at period-end Balance at period-begin
Book balance Bad debt provision
Book
value
Book balance Bad debt provision
Book value
Amount Ratio Amount
Accrual
ratio
Amount Ratio Amount
Accrual
ratio
Account receivable
with bad debt
provision accrual by
single basis
9,421,18
6.95
21.81%
4,477,65
6.23
47.53%
4,943,530
.72
2,477,485
.20
7.66%
2,099,361
.01
84.74% 378,124.19
Including:
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Accounts with single
significant amount
but with bad debts
provision accrued
individually
5,035,60
3.75
11.66%
1,510,68
1.13
30.00%
3,524,922
.62
Accounts with single
minor amount but
with bad debts
provision accrued
individually
4,385,58
3.20
10.15%
2,966,97
5.10
67.65%
1,418,608
.10
2,477,485
.20
7.66%
2,099,361
.01
84.74% 378,124.19
Account receivable
with bad debt
provision accrual by
portfolio
33,774,3
16.16
78.19%
101,322.
95
0.30%
33,672,99
3.21
29,860,22
2.34
92.34%
1,230,837
.51
4.12%
28,629,384.
83
Including:
Account receivable
withdrawal bad debt
provision by group of
credit risk
characteristics
(Aging analysis
method)
33,774,3
16.16
78.19%
101,322.
95
0.30%
33,672,99
3.21
29,860,22
2.34
92.34%
1,230,837
.51
4.12%
28,629,384.
83
Total
43,195,5
03.11
100.00%
4,578,97
9.18
10.60%
38,616,52
3.93
32,337,70
7.54
100.00%
3,330,198
.52
10.30%
29,007,509.
02
Bad debt provision accrual on single basis: Account receivable with significant single amount period-end but withdrawal bad debt
provision on single basis
In RMB
Name
Balance at period-end
Book balance Bad debt provision Accrual ratio Accrual causes
Shenzhen Jiahaosong
Technology Co., Ltd.
5,035,603.75 1,510,681.13 30.00%
Expected to be difficult
to recover
Total 5,035,603.75 1,510,681.13 -- --
Bad debt provision accrual on single basis: Account receivable with minor single amount period-end but withdrawal bad debt
provision on single basis
In RMB
Name
Balance at period-end
Book balance Bad debt provision Accrual ratio Accrual causes
Shijiazhuang Dasong 1,039,165.50 1,039,165.50 100.00% Expected to be difficult
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Tech. Co., Ltd to recover
Sichuan Wanling Electric
Technology Co., Ltd.
1,102,072.20 1,102,072.20 100.00%
Expected to be difficult
to recover
Shanghai Swen Electric
Vehicle Co., Ltd.
304,867.50 243,894.00 80.00%
Expected to be difficult
to recover
Guangdong Xinlingjia
New Energy Co., Ltd.
1,267,000.00 380,100.00 30.00%
Expected to be difficult
to recover
Shenzhen Boyineng
Technology Co., Ltd.
672,478.00 201,743.40 30.00%
Expected to be difficult
to recover
Total 4,385,583.20 2,966,975.10 -- --
Bad debt provision accrual on single basis:
In RMB
Name
Balance at period-end
Book balance Bad debt provision Accrual ratio Accrual causes
Bad debt provision accrual on portfolio: Account receivable with bad debt provision accrual on aging analysis
In RMB
Name
Balance at period-end
Book balance Bad debt provision Accrual ratio
Within one year (one year
included)
32,632,190.64 97,896.57 0.30%
1-2 years (2 years included) 1,142,125.52 3,426.38 0.30%
Total 33,774,316.16 101,322.95 --
Explanation on portfolio basis:
Nil
Bad debt provision accrual on portfolio
In RMB
Name
Balance at period-end
Book balance Bad debt provision Accrual ratio
Explanation on portfolio basis:
If the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses, please refer
to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
By account age
In RMB
Account age Balance at period-end
Within one year (one year included) 37,731,364.39
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Within one year 37,731,364.39
1-2 years 3,184,410.52
2-3 years 468,148.50
Over 3 years 1,811,579.70
3-4 years 772,414.20
4-5 years 1,039,165.50
Total 43,195,503.11
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Category
Balance at
period-begin
Current changes
Balance at
period-end Accrual
Collected or
reversal
Charge-off Other
Bad debt
provision for
accounts
receivable
3,330,198.52 2,493,679.37 1,244,898.71 4,578,979.18
Total 3,330,198.52 2,493,679.37 1,244,898.71 4,578,979.18
Including important amount of bad debt provision collected or reversal in the period:
In RMB
Enterprise Amount collected or reversal Collection way
Total 0.00 --
(3) Account receivables actually charge-off during the reporting period
In RMB
Item Amount charge-off
Goods receivable 1,244,898.71
Including major account receivables charge-off:
In RMB
Enterprise Nature Amount charge-off Causes of charge-off
Procedure for
charge-off
Amount cause by
related transactions
or not (Y/N)
Shenzhen Zhonghua
Bicycle (Group) Co.,
Ltd. Hebei Branch
Goods payment 1,144,690.91
Bankruptcy is not
liquidated and
cannot be recovered
否
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Emmelle Electric
Vehicle Store in
Midong District,
Urumqi
Goods payment 55,968.48
Business
termination,
long-term accounts
that cannot be
recovered
否
Shijiazhuang Diju
Trading Co., Ltd.
Goods payment 29,917.00
Business
termination,
long-term accounts
that cannot be
recovered
否
Other Goods payment 14,322.32
Business
termination,
long-term accounts
that cannot be
recovered
否
Total -- 1,244,898.71 -- -- --
Explanation on account receivable charge-off:
Nil
(4) Top five account receivables collected by arrears party at ending balance
In RMB
Name
Ending balance of accounts
receivable
Proportion of total closing balance
of accounts receivable
Ending balance of bad bet
provision
Guangshui Jiaxu Energy
Technology Co., Ltd.
9,544,200.90 22.10% 28,632.60
Zhengzhou Guiguan Tech.
Trade. Co., Ltd
7,377,678.50 17.08% 22,133.04
Jinan Yuxintai Sales Co.,
Ltd.
5,408,096.00 12.52% 16,224.29
Shenzhen Jiahaosong
Technology Co., Ltd.
5,035,603.75 11.66% 1,510,681.13
Shenzhen Weiterui New
Energy Technology Co.,
Ltd.
3,924,471.05 9.09% 11,773.41
Total 31,290,050.20 72.45%
(5) Account receivable derecognition due to transfer of financial assets
Nil
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(6) Assets and liability resulted by account receivable transfer and continuous involvement
Nil
Other explanation:
Nil
6. Receivables financing
In RMB
Item Balance at period-end Balance at period-begin
Total 0.00
Change of receivables financing and fair value in the period
□Applicable √Not applicable
If the provision for bad debts of receivable financing is made in accordance with the general model of expected credit losses, please
refer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
Other explanation:
Nil
7. Account paid in advance
(1) By account age
In RMB
Account age
Balance at period-end Balance at period-begin
Amount Ratio Amount Ratio
Within one year 938,425.99 100.00% 13,799,753.60 100.00%
Total 938,425.99 -- 13,799,753.60 --
Explanation on un-settlement in time for advance payment with over one year account age and major amounts:
Nil
(2) Top 5 advance payment at ending balance by prepayment object
Enterprise Relationship
with the
Company
Amount Account age
Nature
Ratio in total
advance e
payment (%)
Shenzhen Jinming Artisan Jewelry Co.,
Ltd.
Non-related
party
800,000.00 Within 1 year Prepaid processing
fee
85.25
Shenzhen Longxinghang Jewelry Co.,
Ltd.
Non-related
party
40,268.67 Within 1 year Prepaid processing
fee
4.29
Dongguan Dalang Jiuzhi Motor Factory Non-related 27,707.00 Within 1 year Goods advance 2.95
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party payment
Guangzhou Weidi Jewelry Co., Ltd. Non-related
party
21,220.32 Within 1 year Prepaid processing
fee
2.26
Huizhou Minghui Vehicle Industry Co.,
Ltd.
Non-related
party
14,000.00 Within 1 year Goods advance
payment
1.49
Total 903,195.99 96.24
Other explanation:
At end of the period, there was no advance payment from shareholder unit and other related parties that holds 5% (included) voting
rights of the Company among Advance Payment
8. Other account receivable
In RMB
Item Balance at period-end Balance at period-begin
Interest receivable 0.00
Dividend receivable 0.00
Other account receivable 740,354.71 844,537.19
Total 740,354.71 844,537.19
(1) Interest receivable
1) Category
In RMB
Item Balance at period-end Balance at period-begin
Total 0.00
2) Important overdue interest
In RMB
Borrower Balance at period-end Overdue time Overdue reason
Impairment (Y/N) and
judgment basis
Total 0.00 -- -- --
Other explanation:
Nil
3) Accrual of bad debt provision
□Applicable √Not applicable
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(2) Dividend receivable
1) Category
In RMB
Item (or invested company) Balance at period-end Balance at period-begin
Total 0.00
2) Important dividend receivable with over one year aged
In RMB
Item (or invested
company)
Balance at period-end Account age
Causes of failure for
collection
Impairment (Y/N) and
judgment basis
Total 0.00 -- -- --
3) Accrual of bad debt provision
□Applicable √Not applicable
Other explanation:
Nil
(3) Other account receivable
1) By nature
In RMB
Account nature Book balance at period-end Book balance at period-begin
Deposit or margin 754,822.00 783,672.00
Payment for equipment 311,400.00 311,400.00
Personal loan of employees 28,060.45 31,098.50
Other 205,750.45
Total 1,094,282.45 1,331,920.95
2) Accrual of bad debt provision
In RMB
Bad debt provision
Phase I Phase II Phase III
Total
Expected credit
losses over next 12
months
Expected credit losses for
the entire duration (without
credit impairment occurred)
Expected credit losses for
the entire duration (with
credit impairment occurred)
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Balance on January 1,
2019
487,383.76 487,383.76
January 1, 2019 balance
in the current period
—— —— —— ——
Accrued in this period 39,386.50 39,386.50
Write off this period 172,842.52 172,842.52
Balance on December 31,
2019
353,927.71 353,927.74
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
By account age
In RMB
Account age Balance at period-end
Within one year (one year included) 229,464.45
Within one year 229,464.45
1-2 years 452,918.00
2-3 years 60,200.00
Over 3 years 351,700.00
3-4 years 41,700.00
4-5 years 10,000.00
Over 5 years 300,000.00
Total 1,094,282.45
3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Category
Balance at
period-begin
Current changes
Balance at period-end
Accrual
Collected or
reversal
Write off Other
Bad debt
provision for other
receivables
487,383.76 39,386.50 172,842.52 353,927.74
Total 487,383.76 39,386.50 172,842.52 353,927.74
Nil
Important amount of bad debt provision switch-back or collection in the period:
In RMB
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Enterprise Amount switch-back or collection Collection way
Total 0.00 --
Nil
4) Other account receivables actually charge-off during the reporting period
In RMB
Item Amount charge-off
Other receivables 172,842.52
Including major other account receivables charge-off:
In RMB
Enterprise Nature Amount charge-off Causes of charge-off
Procedure for
charge-off
Amount cause by
related transactions
or not (Y/N)
Total -- 0.00 -- -- --
Other Explanation on account receivable charge-off
Nil
5) Top 5 other account receivable collected by arrears party at ending balance
In RMB
Enterprise Nature
Balance at
period-end
Account age
Proportion in total
other account
receivables at
period-end
Ending balance of
bad debt provision
Shenzhen Luwei
Mechatronic
Equipment Co., Ltd
Payment for
equipment
300,000.00 Over 5 years 27.42% 300,000.00
Shenzhen
Anjingheng
Industrial Co., Ltd.
Rent deposit 275,150.00 Within 2 years 25.14% 825.45
Shenzhen Material
Group Co., Ltd.
Rent deposit 181,918.00 1-2 years 16.62% 545.75
Alipay (China)
Network Technology
Co., Ltd.
Margin or deposit 170,000.00 Within 3 years 15.54% 510.00
Guangzhou Vipshop
E-Business Co., Ltd.
Margin or deposit 50,000.00 Within 2 years 4.57% 150.00
Total -- 977,068.00 -- 89.29% 302,031.20
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6) Account receivable with government grants involved
In RMB
Enterprise Government grants Balance at period-end Ending account age
Time, amount and basis
of amount collection
estimated
Nil
7) Other account receivable derecognition due to financial assets transfer
Nil
8) Assets and liability resulted by other account receivable transfer and continuous involvement
Nil
Other explanation:
Nil
9. Inventory
Whether implemented the new revenue standards
□Yes √No
(1) Category
In RMB
Item
Balance at period-end Balance at period-begin
Book balance
Depreciation
reserve
Book value Book balance
Depreciation
reserve
Book value
Raw materials 2,183,259.92 2,183,259.92 388,818.51 23,015.17 365,803.34
Finished goods 1,542,282.57 521,083.05 1,021,199.52 2,382,433.75 361,633.15 2,020,800.60
Consigned
processing
materials
2,873,870.86 2,873,870.86
Total 6,599,413.35 521,083.05 6,078,330.30 2,771,252.26 384,648.32 2,386,603.94
(2) Inventory depreciation reserve
In RMB
Item
Balance at
period-begin
Current increased Current decreased Balance at
period-end Accrual Other Switch back or Other
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charge-off
Raw materials 23,015.17 23,015.17
Finished goods 361,633.15 499,175.17 339,725.27 521,083.05
Total 384,648.32 499,175.17 362,740.44 521,083.05
The net realizable value is determined by deducting the necessary expenses from the market price at the end of the period, the
inventory falling price reserves reversed or written off in the current period are the sales of the inventory with impairment withdrawn
in the current period.
(3) Explanation on capitalization of borrowing costs at ending balance of inventory
Nil
(4) Assets that completed without settlement from construction contract
In RMB
Item Amount
Other explanation:
10. Contractual assets
In RMB
Item
Balance at period-end Balance at period-begin
Book balance
Impairment
provision
Book value Book balance
Impairment
provision
Book value
Total 0.00 0.00 0.00 0.00 0.00
Book value of contract assets have major changes and causes:
In RMB
Item Amount changes Causes
Total 0.00 ——
If the provision for bad debts of contract asset is made in accordance with the general model of expected credit losses, please refer to the
disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
Accrual of impairment provision in the period
In RMB
Item Accrual in the period Switch-back in the period
Reversal/Charge-off in
the period
Causes
Total 0.00 0.00 0.00 --
Other explanation:
Nil
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11. Assets held for sale
In RMB
Item
Book balance at
period-end
Impairment
provision
Ending book
value
Fair value
Expected disposal
expenses
Expected disposal
time
Total 0.00 0.00 0.00 0.00 0.00 --
Other explanation:
Nil
12. Non-current asset due within one year
In RMB
Item Balance at period-end Balance at period-begin
Total 0.00
Important creditors’ investment/Other creditors’ investment
In RMB
Creditor's rights
Balance at period-end Balance at period-begin
Face value Coupon rate Actual rate Due date Face value Coupon rate Actual rate Due date
Total 0.00 —— —— —— 0.00 —— —— ——
Other explanation:
Nil
13. Other current assets
Whether implemented the new revenue standards
□Yes √No
In RMB
Item Balance at period-end Balance at period-begin
Tax credit and input tax to be certified 3,188,649.68
Prepaid corporate income tax 129,864.57 463,849.63
Prepaid personal income tax 9,939.22
Prepaid intermediary fee 1,792,452.81
Total 3,318,514.25 2,266,241.66
Other explanation:
Nil
14. Creditors’ investment
In RMB
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Item
Balance at period-end Balance at period-begin
Book balance
Impairment
provision
Book value Book balance
Impairment
provision
Book value
Total 0.00 0.00 0.00 0.00 0.00
Important creditors’ investment
In RMB
Creditor's rights
Balance at period-end Balance at period-begin
Face value Coupon rate Actual rate Due date Face value Coupon rate Actual rate Due date
Total 0.00 —— —— —— 0.00 —— —— ——
Accrual of impairment provision
In RMB
Bad debt provision
Phase I Phase II Phase III
Total
Expected credit
losses over next 12
months
Expected credit losses for
the entire duration (without
credit impairment occurred)
Expected credit losses for
the entire duration (with
credit impairment occurred)
Balance of Jan. 1, 2019
in the period
—— —— —— ——
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
Other explanation:
Nil
15. Other creditors’ investment
In RMB
Item
Balance at
period-begin
Accrued
interest
Change of
fair value in
the period
Balance at
period-end
Cost
Cumulative
changes of
fair value
Cumulative
loss
impairment
recognized in
other
comprehensi
ve income
Note
Total 0.00 0.00 0.00 0.00 0.00 0.00 ——
Important other creditors’ investment
In RMB
Other creditors’
investment
Balance at period-end Balance at period-begin
Face value Coupon rate Actual rate Due date Face value Coupon rate Actual rate Due date
Total 0.00 —— —— —— 0.00 —— —— ——
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Accrual of impairment provision
In RMB
Bad debt provision
Phase I Phase II Phase III
Total
Expected credit
losses over next 12
months
Expected credit losses for
the entire duration (without
credit impairment occurred)
Expected credit losses for
the entire duration (with
credit impairment occurred)
Balance on January 1,
2019
0.00
Balance of Jan. 1, 2019
in the period
—— —— —— ——
--Transfer to the second
stage
0.00
-- Transfer to the third
stage
0.00
-- Reversal to the second
stage
0.00
-- Reversal to the first
stage
0.00
Provision in Current
Period
0.00
Reversal in Current
Period
0.00
Conversion in Current
Period
0.00
Write off in Current
Period
0.00
Other change 0.00
Balance on December 31,
2019
0.00
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
Other explanation:
Nil
16. Long-term account receivable
(1) Long-term account receivable
In RMB
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Item
Balance at period-end Balance at period-begin
Discount rate
interval Book balance
Bad debt
provision
Book value Book balance
Bad debt
provision
Book value
Total 0.00 0.00 0.00 0.00 0.00 --
Impairment of bad debt provision
In RMB
Bad debt provision
Phase I Phase II Phase III
Total
Expected credit
losses over next 12
months
Expected credit losses for
the entire duration (without
credit impairment occurred)
Expected credit losses for
the entire duration (with
credit impairment occurred)
Balance on January 1,
2019
0.00 0.00 0.00 0.00
January 1, 2019 balance
in the current period
—— —— —— ——
--Transfer to the second
stage
0.00
-- Transfer to the third
stage
0.00
-- Reversal to the second
stage
0.00
-- Reversal to the first
stage
0.00
Provision in Current
Period
0.00
Reversal in Current
Period
0.00
Conversion in Current
Period
0.00
Write off in Current
Period
0.00
Other change 0.00
Balance on December 31,
2019
0.00 0.00 0.00 0.00
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
Nil
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(2) Long-term account receivable derecognized due to financial assets transfer
Nil
(3) Assets and liabilities resulted by long-term account receivable transfer and continues involvement
Nil
Other explanation
Nil
17. Long-term equity investments
In RMB
The
invested
entity
Balance
at
period-be
gin (Book
value)
Changes in the period (+, -)
Balance
at
period-en
d (Book
value)
Ending
balance
of
impairme
nt
provision
Additiona
l
investmen
t
Capital
reduction
Investme
nt gains
recognize
d under
equity
Other
comprehe
nsive
income
adjustmen
t
Other
equity
change
Cash
dividend
or profit
announce
d to
issued
Accrual
of
impairme
nt
provision
Other
I. Joint venture
Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
II. Associated enterprise
Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other explanation
Nil
18. Other equity instrument investment
In RMB
Item Balance at period-end Balance at period-begin
Total 0.00
Itemized the non-tradable equity instrument investment in the period
In RMB
Item
Dividend income
recognized
Cumulative gains
Cumulative
losses
Retained earnings
transfer from
other
comprehensive
income
Causes of those
that designated
measured by fair
value and with its
variation
Cause of retained
earnings transfer
from other
comprehensive
income
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reckoned into
other
comprehensive
income
Other explanation:
Nil
19. Other non-current financial assets
In RMB
Item Balance at period-end Balance at period-begin
Total 0.00
Other explanation:
Nil
20. Investment real estate
(1) Investment real estate measured at cost
□Applicable √Not applicable
(2) Investment real estate measured at fair value
□Applicable √Not applicable
(3) Investment real estate without property rights certificate
In RMB
Item Book value
Reasons for failing to complete the
property rights certificate
Other explanation
Nil
21. Fixed assets
In RMB
Item Balance at period-end Balance at period-begin
Fixed assets 4,191,503.33 3,502,807.32
Total 4,191,503.33 3,502,807.32
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(1) Fixed assets
In RMB
Item
Housing and
buildings
Machinery
equipment
Means of
transportation
Electronic
equipment及 Other
Total
I. original book
value:
1.Balance at
period-begin
2,959,824.00 416,629.06 958,593.21 225,888.32 4,560,934.59
2.Current
increased
1,061,061.97 4,247.79 1,065,309.76
(1) Purchase 1,061,061.97 4,247.79 1,065,309.76
(2) construction
in process transfer-in
(3) the
increase in business
combination
3.Current
decreased
(1) Disposal or
scrap
4.Balance at
period-end
2,959,824.00 1,477,691.03 958,593.21 230,136.11 5,626,244.35
II. accumulated
depreciation
1.Balance at
period-begin
332,980.20 146,742.76 442,326.93 136,077.38 1,058,127.27
2.Current
increased
133,192.08 71,200.26 144,079.80 28,141.61 376,613.75
(1) Accrual 133,192.08 71,200.26 144,079.80 28,141.61 376,613.75
3.Current
decreased
(1) Disposal or
scrap
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4.Balance at
period-end
466,172.28 217,943.02 586,406.73 164,218.99 1,434,741.02
III. Impairment
provision
1.Balance at
period-begin
2.Current
increased
(1) Accrual
3.Current
decreased
(1) Disposal or
scrap
4.Balance at
period-end
IV. Book value
1.Ending book
value
2,493,651.72 1,259,748.01 372,186.48 65,917.12 4,191,503.33
2.Opening book
value
2,626,843.80 269,886.30 516,266.28 89,810.94 3,502,807.32
(2) Fixed assets temporary idle
In RMB
Item Original book value
Accumulated
depreciation
Impairment
provision
Book value Note
(3) Fixed assets leasing-in by financing lease
In RMB
Item Original book value
Accumulated
depreciation
Impairment provision Book value
(4) Fixed assets leasing-out by operational lease
In RMB
Item Ending book value
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(5) Fixed assets without property rights certificate
In RMB
Item Book value
Reasons for failing to complete the
property rights certificate
Six properties in Lianxin Garden 2,493,651.72
The six properties of Lianxin Garden with
original value of 2,959,824.00 Yuan. The
property purchasing refers to the
indemnificatory housing for enterprise
talent buying from Shenzhen Housing and
Construction Bureau of Luohu District.
According to the agreement, the enterprise
shall not carrying any kind of property
trading with any units or individuals except
the government, and the company has no
property certification on the above
mentioned properties.
Other explanation
No accrual for impairment provision due to there was no evidence of impairment being found in fixed assets at period-end
(6) Fixed assets disposal
In RMB
Item Balance at period-end Balance at period-begin
Other explanation
Nil
22. Construction in progress
In RMB
Item Balance at period-end Balance at period-begin
Total 0.00
(1) Construction in progress
In RMB
Item
Balance at period-end Balance at period-begin
Book balance
Impairment
provision
Book value Book balance
Impairment
provision
Book value
Total 0.00 0.00 0.00 0.00
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(2) Changes in significant construction in progress
In RMB
Item Budget
Opening
balance
increased
in the
Period
Fixed
assets
transfer-i
n in the
Period
Other
decrease
d in the
Period
Ending
balance
Proporti
on of
project
investme
nt in
budget
Progress
Accumul
ated
amount
of
interest
capitaliz
ation
including
: interest
capitaliz
ed
amount
of the
year
Interest
capitaliz
ation rate
of the
year
Source of
funds
Total 0.00 0.00 0.00 0.00 0.00 0.00 -- -- 0.00 0.00 0.00% --
(3) Depreciation reserves accrual
In RMB
Item Accrual in the period Reasons for accrual
Total 0.00
Other explanation
Nil
(4) Engineering materials
In RMB
Item
Balance at period-end Balance at period-begin
Book balance
Impairment
provision
Book value Book balance
Impairment
provision
Book value
Other explanation:
Nil
23. Productive biological asset
(1) Productive biological assets measured by cost
□Applicable √Not applicable
(2) Productive biological assets measured by fair value
□Applicable √Not applicable
24. Oil and gas asset
□Applicable √Not applicable
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25. Right-of-use asset
In RMB
Item Total
Other explanation:
Nil
26. Intangible assets
(1) Intangible assets
In RMB
Item Land use right Patent
Non-patent
technology
Trademark Total
I. Original book
value
1.Balance at
period-begin
5,271,000.00 5,271,000.00
2.Current
increased
(1) Purchase
(2) internal R
& D
(3) the
increase in business
combination
3.Current
decreased
(1) Disposal
4.Balance at
period-end
5,271,000.00 5,271,000.00
II. accumulated
depreciation
1.Balance at
period-begin
3,765,000.00 3,765,000.00
2.Current
increased
753,000.00 753,000.00
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(1) Accrual 753,000.00 753,000.00
3.Current
decreased
(1) Disposal
4.Balance at
period-end
4,518,000.00 4,518,000.00
III. Impairment
provision
1.Balance at
period-begin
2.Current
increased
(1) Accrual
3.Current
decreased
(1) Disposal
4.Balance at
period-end
IV. Book value
1.Ending book
value
753,000.00 753,000.00
2.Opening book
value
1,506,000.00 1,506,000.00
Ratio of intangible assets resulted from internal R&D in balance of intangible assets at period-end
(2) Land use right without certificate of title completed
In RMB
Item Book value
Reasons for failing to complete the
property rights certificate
Other explanation:
Nil
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27. Expense on Research and Development
In RMB
Item
Balance at
period-begin
Current increased Current decreased
Balance at
period-end
Internal
development
expenditure
Other
Confirmed as
intangible
assets
Transfer to
current profit
and loss
Total 0.00 0.00 0.00 0.00 0.00 0.00
Other explanation
Nil
28. Goodwill
(1) Original book value of goodwill
In RMB
The invested
entity or items
Balance at
period-begin
Current increased Current decreased
Balance at
period-end
Formed by
business
combination
Dispose
Total 0.00 0.00 0.00 0.00 0.00 0.00
(2) Impairment provision of goodwill
In RMB
The invested
entity or items
Balance at
period-begin
Current increased Current decreased
Balance at
period-end
Formed by
business
combination
Dispose
Total 0.00 0.00 0.00 0.00 0.00 0.00
Information about the asset group or asset group combination in which the goodwill is located
Nil
Explain the method of confirming the goodwill impairment test process, key parameters (such as the forecast period growth rate,
stable period growth rate, profit rate, discount rate, forecast period, etc. when estimating the present value of future cash flow), and
the impairment loss of goodwill:
Nil
Impact of impairment test for goodwill
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Nil
Other explanation
Nil
29. Long-term expenses to be apportioned
In RMB
Item
Balance at
period-begin
Current increased
Amortized in the
Period
Other decrease
Balance at
period-end
Total 0.00 0.00 0.00 0.00
Other explanation
Nil
30. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets without offset
In RMB
Item
Balance at period-end Balance at period-begin
Deductible temporary
difference
Deferred income tax
assets
Deductible temporary
difference
Deferred income tax
assets
Impairment provision of
assets
1,042,582.16 4,170,328.65 1,040,621.18 4,162,484.72
Total 1,042,582.16 4,170,328.65 1,040,621.18 4,162,484.72
(2) Deferred income tax liabilities without offset
In RMB
Item
Balance at period-end Balance at period-begin
Taxable temporary
differences
Deferred income tax
liabilities
Taxable temporary
differences
Deferred income tax
liabilities
Total 0.00 0.00 0.00 0.00
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
Item
Trade-off between the
deferred income tax
assets and liabilities
Ending balance of
deferred income tax
assets or liabilities after
off-set
Trade-off between the
deferred income tax
assets and liabilities at
period-begin
Opening balance of
deferred income tax
assets or liabilities after
off-set
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Deferred income tax
assets
1,042,582.16 1,040,621.18
(4) Details of unrecognized deferred income tax assets
In RMB
Item Balance at period-end Balance at period-begin
(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMB
Year Ending amount Opening amount Note
Total 0.00 0.00 --
Other explanation:
As stated under article 17 of the Enterprise Accounting Standards No.18-Income Tax, deferred income tax assets and deferred income
tax liabilities shall be measured at the tax rate applicable in the period in which the assets are expected to be recovered or liabilities
are expected to be settled according to relevant tax laws on the balance sheet date. The tax rate adopted by the Company in
calculating deferred income tax assets is 25% for both parent company and subsidiaries.
31. Other non-current assets
Whether implemented the new revenue standards
□Yes √No
In RMB
Item Balance at period-end Balance at period-begin
Advance payment for house 400,000.00 400,000.00
Total 400,000.00 400,000.00
Other explanation:
In 2016, the Company paid the four houses in advance for enterprise talent, located in Yinhu Lanshan, to Shenzhen Housing and
Construction Bureau of Luohu District, up to 31st December 2019, payment are not paid by Shenzhen Housing and Construction
Bureau of Luohu District yet
32. Short-term loans
(1) Category
In RMB
Item Balance at period-end Balance at period-begin
Total 0.00
Explanation on short-term loans category:
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Nil
(2) Overdue outstanding short-term loans
Total 0.00 Yuan overdue outstanding short-term loans at period-end, including the followed significant amount:
In RMB
Borrower Balance at period-end Lending rate Overdue time Overdue rate
Total 0.00 -- -- --
Other explanation:
Nil
33. Trading financial liability
In RMB
Item Balance at period-end Balance at period-begin
Including:
Including:
Total 0.00
Other explanation:
Nil
34. Derivative financial liability
In RMB
Item Balance at period-end Balance at period-begin
Total 0.00
Other explanation:
Nil
35. Notes payable
In RMB
Category Balance at period-end Balance at period-begin
Bank acceptance 2,000,000.00
Total 2,000,000.00
Notes expired at period-end without paid was 0.00 Yuan.
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36. Account payable
(1) Account payable
In RMB
Item Balance at period-end Balance at period-begin
Within one year (one year included) 9,575,684.30 9,713,137.52
1-2 years (2 years included) 487,016.93 7,099.50
2-3 years (3 years included) 7,099.50 137,423.41
3-4 years (4 years included) 118,380.50 2,366.00
4-5 years (5 years included) 2,366.00
Over 5 years 838.00 118,984.26
Total 10,191,385.23 9,979,010.69
(2) Important account payable with account age over one year
In RMB
Item Balance at period-end Reasons of un-paid or carry-over
Total 0.00 --
Other explanation:
The top five accounts payable at the end of the period
Enterprise Relationship with
the company
Amount Percentage of total
other payable (%)
Nature
Tianjin Jianya Electronic Technology Co., Ltd. Non-related party 4,487,754.18 44.03 Goods payment
Baodao Vehicle Industry Group Co., Ltd. Non-related party 2,334,158.00 22.90 Goods payment
Changzhou Youyi Vehicle Technology Co.,
Ltd.
Non-related party 754,123.00 7.40 Goods payment
Shanghai Junbao Diamond Co., Ltd. Non-related party 505,353.10 4.96 Goods payment
Jinda Intelligent Technology Co., Ltd. Non-related party 498,891.00 4.90 Goods payment
Total 8,580,279.28 84.19
37. Account received in advance
Whether implemented the new revenue standards
□Yes √No
(1) Account received in advance
In RMB
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Item Balance at period-end Balance at period-begin
Within one year (one year included) 1,694,366.18 371,039.28
1-2 years (2 years included) 16,396.62 3,469.60
2-3 years (3 years included) 2,080.00
Over 3 years 29,191.00 29,191.00
Total 1,739,953.80 405,779.88
(2) Account received in advance with over one year book age
In RMB
Item Balance at period-end Reasons of un-paid or carry-over
Total 0.00 --
(3) Projects that settle without completed from construction contract at period-end
In RMB
Item Amount
Other explanation:
There is no account from the shareholders or other related parties holding more than 5% (including 5%) of the voting shares of the
Company among the receivables received in advance at end of the period. There is no significant account received in advance over
one year in age at end of the period.
38. Contract liability
In RMB
Item Balance at period-end Balance at period-begin
Total 0.00
Book value has major changes in the period and causes
In RMB
Item Amount changes Causes
Total 0.00 ——
39. Wage payable
(1) Wage payable
In RMB
Item Balance at period-begin Current increased Current decreased Balance at period-end
I. Short-term 435,736.16 5,851,298.80 5,687,072.23 599,962.73
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compensation
II. Post-employment
benefit-Defined
contribution plan
387,429.42 387,429.42
Total 435,736.16 6,238,728.22 6,074,501.65 599,962.73
(2) Short-term compensation
In RMB
Item Balance at period-begin Current increased Current decreased Balance at period-end
1. Wages, bonus,
allowances and subsidy
428,742.32 5,088,991.12 4,924,273.50 593,459.94
2. Employee benefits 99,731.30 99,731.30
3. Social insurance 180,592.80 180,592.80
Including: Medical
insurance
162,357.17 162,357.17
Work injury
insurance
5,585.07 5,585.07
Maternity
insurance
12,650.56 12,650.56
4. Housing accumulation
fund
388,396.24 388,396.24
5. Labor union
expenditure and
personnel education
expense
6,993.84 81,327.32 81,818.37 6,502.79
8. Other short-term
compensation
12,260.02 12,260.02
Total 435,736.16 5,851,298.80 5,687,072.23 599,962.73
(3) Defined contribution plan
In RMB
Item Balance at period-begin Current increased Current decreased Balance at period-end
1. Basic endowment
insurance
380,119.49 380,119.49
2. Unemployment
insurance
7,309.93 7,309.93
Total 387,429.42 387,429.42
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Other explanation:
At the end of the period, there was no arrears in employee compensation.
40. Taxes payable
In RMB
Item Balance at period-end Balance at period-begin
Value added tax 540,203.08 5,716,531.88
Corporate income tax 14,285.50
Individual income tax 21,755.56 25,288.27
Tax for maintaining and building cities 925.10 325,396.78
Educational surtax 623.21 227,569.65
Stamp tax 7,270.30 2,309.70
Total 585,062.75 6,297,096.28
Other explanation:
Nil
41. Other account payable
In RMB
Item Balance at period-end Balance at period-begin
Interest payable 0.00
Dividend payable 0.00
Other account payable 38,175,654.98 37,144,872.42
Total 38,175,654.98 37,144,872.42
(1) Interest payable
In RMB
Item Balance at period-end Balance at period-begin
Total 0.00
Important interest overdue without paid:
In RMB
Borrower Amount overdue Overdue reason
Total 0.00 --
Other explanation:
Nil
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(2) Dividend payable
In RMB
Item Balance at period-end Balance at period-begin
Total 0.00
Other explanation, including dividends payable with over one year age and disclosure un-payment reasons:
Nil
(3) Other account payable
1) By nature
In RMB
Item Balance at period-end Balance at period-begin
Custodian and common benefit debts 18,764,512.80 18,853,692.84
Intercourse funds 6,500,000.00 6,500,000.00
Warranty and guarantee money 11,291,325.00 9,767,553.26
Other payable service charge (intermediary
services included)
876,599.88 801,237.74
Other 743,217.30 1,222,388.58
Total 38,175,654.98 37,144,872.42
2) Significant other payable with over one year age
In RMB
Item Balance at period-end Reasons of un-paid or carry-over
Custodian and common benefit debts 18,764,512.80 -
Warranty and guarantee money 8,000,000.00 Performance bond
Shenzhen Guosheng Energy Investment
Development Co., Ltd.
6,500,000.00 Interest-free loans
Total 33,264,512.80 --
Other explanation
Top 5 other receivables at period-end
Enterprise
Relationship with
the company
Amount
Ratio in total other
receivables (%)
Nature
Custodian and common benefit debts Non-related party 18,764,512.80 49.15 Obligatory right of
common benefit
Shenzhen Guosheng Energy Investment
Development Co., Ltd.
Related party 6,500,000.00 17.03 Interest-free loans
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Shenzhen Ruian Information Technology
Enterprise (LP)
Non-related party 2,500,000.00 6.55 Cash deposit
Wansheng Industrial Holdings (Shenzhen) Co.,
Ltd.
Non-related party 2,000,000.00 5.24 Cash deposit
Shenzhen Zhisheng Hi-Tech Enterprise (LP) Non-related party 2,000,000.00 5.24 Cash deposit
Total 31,764,512.80 83.21
42. Liability held for sale
In RMB
Item Balance at period-end Balance at period-begin
Total 0.00
Other explanation:
Nil
43. Non-current liabilities due within one year
In RMB
Item Balance at period-end Balance at period-begin
Total 0.00
Other explanation:
Nil
44. Other current liabilities
Whether implemented the new revenue standards
□Yes √No
In RMB
Item Balance at period-end Balance at period-begin
Total 0.00
Changes of short-term bond payable:
In RMB
Bond
Face
value
Release
date
Bond
period
Issuing
amount
Opening
balance
Issued in
the Period
Accrual
interest
by face
value
Premium/
discount
amortizati
on
Paid in
the Period
Balance
at
period-en
d
Total -- -- -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other explanation:
Nil
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45. Long-term loans
(1) category
In RMB
Item Balance at period-end Balance at period-begin
Total 0.00
Explanation on category of long-term loans:
Nil
Other explanation, including interest rate section:
Nil
46. Bonds payable
(1) Bonds payable
In RMB
Item Balance at period-end Balance at period-begin
Total 0.00
(2) Changes of bonds payable (not including the other financial instrument of preferred stock and
perpetual capital securities that classify as financial liability)
In RMB
Bond
Face
value
Release
date
Bond
period
Issuing
amount
Opening
balance
Issued in
the Period
Accrual
interest
by face
value
Premium/
discount
amortizati
on
Paid in
the Period
Balance
at
period-en
d
Total -- -- -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(3) Convertible conditions and time for shares transfer for the convertible bonds
Nil
(4) Other financial instruments classify as financial liability
Basic information of the outstanding preferred stock and perpetual capital securities at period-end
Nil
Changes of outstanding preferred stock and perpetual capital securities at period-end
In RMB
Outstanding Period-begin Current increased Current decreased Period-end
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financial
instrument
Amount Book value Amount Book value Amount Book value Amount Book value
Total 0 0.00 0 0.00 0 0.00 0 0.00
Basis for financial liability classification for other financial instrument
Nil
Other explanation
Nil
47. Lease liability
In RMB
Item Balance at period-end Balance at period-begin
Total 0.00
Other explanation
Nil
48. Long-term account payable
In RMB
Item Balance at period-end Balance at period-begin
Total 0.00
(1) By nature
In RMB
Item Balance at period-end Balance at period-begin
Total 0.00
Other explanation:
Nil
(2) Special payable
In RMB
Item
Balance at
period-begin
Current increased Current decreased
Balance at
period-end
Causes of formation
Total 0.00 0.00 --
Other explanation:
Nil
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49. Long-term wages payable
(1) Long-term wages payable
In RMB
Item Balance at period-end Balance at period-begin
Total 0.00
(2) Changes of defined benefit plans
Present value of the defined benefit plans:
In RMB
Item Current Period Last Period
Scheme assets:
In RMB
Item Current Period Last Period
Net liability (assets) of the defined benefit plans
In RMB
Item Current Period Last Period
Content of defined benefit plans and relevant risks, impact on future cash flow of the Company as well as times and uncertainty:
Nil
Major actuarial assumption and sensitivity analysis:
Nil
Other explanation:
Nil
50. Accrual liability
Whether implemented the new revenue standards
□Yes √No
In RMB
Item Balance at period-end Balance at period-begin Causes of formation
Total 0.00 --
Other explanation, including relevant important assumptions and estimation:
Nil
51. Deferred income
In RMB
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Item
Balance at
period-begin
Current increased Current decreased
Balance at
period-end
Causes of formation
Total 0.00 0.00 0.00 --
Item with government grants involved:
In RMB
Liability
Balance at
period-begin
New grants
in the Period
Amount
reckoned in
non-operatio
n revenue
Amount
reckoned in
other income
Cost
reduction in
the period
Other
changes
Balance at
period-end
Assets-relate
d/income
related
Other explanation:
Nil
52. Other non-current liabilities
Whether implemented the new revenue standards
□Yes √No
In RMB
Item Balance at period-end Balance at period-begin
Total 0.00
Other explanation:
Nil
53. Share capital
In RMB
Balance at
period-begin
Changes in the period (+, -)
Balance at
period-end
New shares
issued
Bonus share
Shares
transferred
from capital
reserve
Other Subtotal
Total shares 551,347,947.00 551,347,947.00
Other explanation:
Nil
54. Other equity instrument
(1) Basic information of the outstanding preferred stock and perpetual capital securities at period-end
Nil
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(2) Changes of outstanding preferred stock and perpetual capital securities at period-end
In RMB
Outstanding
financial
instrument
Period-begin Current increased Current decreased Period-end
Amount Book value Amount Book value Amount Book value Amount Book value
Total 0 0.00 0 0.00 0 0.00 0
Changes of other equity instrument, change reasons and relevant accounting treatment basis:
Nil
Other explanation:
Nil
55. Capital public reserve
In RMB
Item Balance at period-begin Current increased Current decreased Balance at period-end
Other capital reserve 627,834,297.85 627,834,297.85
1. Debt restructuring
income
482,580,588.23 482,580,588.23
2. Other 145,253,709.62 145,253,709.62
Total 627,834,297.85 627,834,297.85
Other explanation, including changes and reasons for changes:
Among the other capital reserves, 135,840,297.18 Yuan refers to the payment for creditor from shares assignment by whole
shareholders; majority shareholder Guosheng Energy donated 5,390,399.74 Yuan.
56. Treasury stock
In RMB
Item Balance at period-begin Current increased Current decreased Balance at period-end
Total 0.00 0.00 0.00
Other explanation, including changes and reasons for changes:
Nil
57.Other comprehensive income
In RMB
Item
Balance at
period-begi
n
Current Period Balance
at
period-e
nd
Account
before
income tax
Less: written
in other
comprehensi
Less:
written in
other
Less: income
tax expense
Belong to
parent
company
Belong to
minority
shareholders
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in the
period
ve income in
previous
period and
carried
forward to
gains and
losses in
current
period
comprehe
nsive
income in
previous
period and
carried
forward to
retained
earnings in
current
period
after tax after tax
Total other comprehensive income 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other explanation, including the active part of the hedging gains/losses of cash flow transfer to initial recognition adjustment for the
arbitraged items:
Nil
58. Reasonable reserve
In RMB
Item Balance at period-begin Current increased Current decreased Balance at period-end
Total 0.00 0.00 0.00
Other explanation, including changes and reasons for changes:
Nil
59. Surplus public reserve
In RMB
Item Balance at period-begin Current increased Current decreased Balance at period-end
Statutory surplus
reserves
32,673,227.01 32,673,227.01
Total 32,673,227.01 32,673,227.01
Other explanation, including changes and reasons for changes:
Nil
60. Retained profit
In RMB
Item Current period Last Period
Retained profit at period-end before adjustment -1,197,549,169.92 -1,195,957,201.01
Retained profit at period-begin after adjustment -1,197,549,169.92 -1,195,957,201.01
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Add: net profit attributable to shareholders of
parent company for this year
-7,186,905.64 -1,591,968.91
Retained profit at period-end -1,204,736,075.56 -1,197,549,169.92
Adjustment for retained profit at period-begin:
1) Retroactive adjustment due to the Accounting Standards for Business Enterprise and relevant new regulations, retained profit at
period-begin has 0.00 Yuan affected;
2) Due to the accounting policy changes, retained profit at period-begin has 0.00 Yuan affected;
3) Due to the major accounting errors correction, retained profit at period-begin has 0.00 Yuan affected;
4) Consolidation range changed due to the same control, retained profit at period-begin has 0.00 Yuan affected;
5) Total other adjustment impacts 0.00 Yuan retained profit at period-begin
61. Operation revenue and operation cost
In RMB
Item
Current Period Last Period
Revenue Cost Revenue Cost
Main business 71,095,404.57 67,928,471.12 115,698,679.57 107,318,430.05
Other business 4,927,283.18 753,000.00 4,208,270.77 753,000.00
Total 76,022,687.75 68,681,471.12 119,906,950.34 108,071,430.05
Whether implemented the new revenue standards
□Yes √No
Other explanation
Nil
62. Tax and extras
In RMB
Item Current Period Last Period
Tax for maintaining and building cities 4,714.10 391,013.39
Educational surtax 8,179.47 279,295.29
Vehicle usage tax 1,889.84 3,089.84
Stamp tax 44,621.80 54,238.30
Total 59,405.21 727,636.82
Other explanation:
Nil
63. Sales expenses
In RMB
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Item Current Period Last Period
Employee compensation 1,301,441.35 2,954,021.25
Marketing promotion fees 792,290.55 1,052,618.98
Lease fee 433,292.57 441,316.59
Business travel expenses 421,922.06 812,392.85
Business entertainment 52,516.39 336,219.12
Other 177,013.47 336,662.62
Total 3,178,476.39 5,933,231.41
Other explanation:
Nil
64. Administrative expenses
In RMB
Item Current Period Last Period
Employee compensation 2,579,922.45 3,298,560.81
Intermediary service fee 3,149,023.50 1,102,426.83
Daily management expenses 327,050.29 1,856,424.16
Depreciation and amortization 353,469.35 369,874.42
Total 6,409,465.59 6,627,286.22
Other explanation:
Nil
65. R&D expenses
In RMB
Item Current Period Last Period
Employee compensation and benefits 1,409,100.34
Direct input materials 763,338.82
Depreciation of fixed assets 23,144.40
Factory rent and utilities 553,243.59
Other 4,450.57
Total 2,753,277.72
Other explanation:
Nil
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66. Financial expenses
In RMB
Item Current Period Last Period
Interest income -110,834.04 -369,745.70
Commission charge etc. 15,432.87 21,061.54
Total -95,401.17 -348,684.16
Other explanation:
Nil
67. Other income
In RMB
Sources Current Period Last Period
68. Investment income
In RMB
Item Current Period Last Period
Other explanation:
Nil
69. Net exposure hedge gains
In RMB
Item Current Period Last Period
Other explanation:
Nil
70. Income from change of fair value
In RMB
Sources Current Period Last Period
Other explanation:
Nil
71. Credit impairment loss
In RMB
Item Current Period Last Period
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Bad debt loss of other account receivable -39,386.50
Bad debt losses of accounts receivable -2,493,679.37
Total -2,533,065.87
Other explanation:
Nil
72. Losses of devaluation of asset
Whether implemented the new revenue standards
□Yes √No
In RMB
Item Current Period Last Period
I. Bad debt losses -836,438.10
II. Inventory falling price loss -499,175.17 -364,088.31
Total -499,175.17 -1,200,526.41
Other explanation:
Nil
73. Income from assets disposal
In RMB
Sources Current Period Last Period
74. Non-operating income
In RMB
Item Current Period Last Period
Amount reckoned in current
non-recurring gains/losses
Other 6,259,839.85 4,634,304.77 6,259,839.85
Total 6,259,839.85 4,634,304.77 6,259,839.85
Government grants reckoned into current gains/losses:
In RMB
Government
grants
Issuing
subject
Offering
causes
Nature
Subsidy
impact
current
gains/losses
(Y/N)
The special
subsidy
(Y/N)
Amount in
the Period
Amount in
last period
Assets-relate
d/income-rela
ted
Other explanation:
1. Non-operation revenue last period mainly due to the rental revenue settle with the custodian, that is 3,256,516.11 Yuan and
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compensation of 1,086,507.70 Yuan;
2. Non-operation revenue in current period mainly due to the rental revenue settle with the custodian, that is 5,565,684.61 Yuan and
compensation of 399,113.20 Yuan;
75. Non-operating expenses
In RMB
Item Current Period Last Period
Amount reckoned in current
non-recurring gains/losses
Fine expenditure 188.00 188.00
Damage and scrap loss for
non-current assets
85,730.05
Loss of old trademark scrap 461,858.18 461,858.18
Other 5,603,102.65 4,373,162.81 5,603,102.65
Total 6,065,148.83 4,458,892.86 6,065,148.83
Other explanation:
In the period and last period, the operation assets for assets to be disposed are not allocated by management, relevant maintenance
and management costs are paid by the revenue and loss compensation income from assets leasing (the assets to be disposed),
reckoned into non-operating expenditure
76. Income tax expenses
(1) Income tax expenses
In RMB
Item Current Period Last Period
Current income tax expense 14,285.50 50,233.75
Deferred income tax expense -1,960.98 -298,792.47
Total 12,324.52 -248,558.72
(2) Adjustment on accounting profit and income tax expenses
In RMB
Item Current Period
Total Profit -7,801,557.13
Income tax measured by statutory/applicable tax rate -1,950,389.28
The impact of applying different tax rates to subsidiaries -57,142.02
Impact on cost, expenses and losses that unable to deducted -48,828.10
Impact on deductible temporary differences or losses deductible 2,068,683.92
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which was un-recognized as deferred income tax assets
Income tax expenses 12,324.52
Other explanation
Nil
77. Other comprehensive income
Found more in Note 57
78. Items of cash flow statement
(1) Other cash received in relation to operation activities
In RMB
Item Current Period Last Period
Interest and Rent and utilities etc. 6,348,431.90 4,406,556.57
Deposits and guarantees received 1,916,551.74
Other intercourse funds 150,980.41 32,000.00
Total 8,415,964.05 4,438,556.57
Explanation on other cash received in relation to operation activities:
Nil
(2) Other cash paid in relation to operation activities
In RMB
Item Current Period Last Period
Expenses such as rent and property
management maintenance fees
5,203,779.09 3,394,536.88
Pay cash management fee 1,277,844.35 2,496,549.86
Pay cash for research and development 1,297,888.58
Pay cash for sales 1,877,035.04 2,775,796.71
Intercourse funds 1,232,265.94
Deposits and security deposits paid 363,930.00 285,712.13
Handling expenses 15,432.87
Utilities 151,193.17 652,106.63
Non-operating expenses 30,140.00
Total 11,419,369.04 9,634,842.21
Explanation on other cash paid in relation to operation activities:
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Nil
(3) Cash received from other investment activities
In RMB
Item Current Period Last Period
Explanation on cash received from other investment activities:
Nil
(4) Cash paid related with investment activities
In RMB
Item Current Period Last Period
Explanation on cash paid related with investment activities
Nil
(5) Other cash received in relation to financing activities
In RMB
Item Current Period Last Period
Bill margin received 2,000,000.00 8,808,378.06
Total 2,000,000.00 8,808,378.06
Explanation on other cash received in relation to financing activities:
Nil
(6) Cash paid related with financing activities
In RMB
Item Current Period Last Period
Payment of bill margin 2,000,000.00
Total 2,000,000.00
Explanation on cash paid related with financing activities:
Nil
79. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
Supplementary information Current period Last Period
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1． Net profit adjusted to cash flow of
operation activities:
-- --
Net profit -7,813,881.65 -1,880,505.78
Add: Assets impairment provision 3,032,241.04 1,200,526.41
Depreciation of fixed assets, consumption of
oil assets and depreciation of productive
biology assets
376,613.75 369,874.42
Amortization of intangible assets 753,000.00 753,000.00
Fixed asset retirement loss (increase is listed
with “-”)
85,730.05
Decrease of deferred income tax asset
(increase is listed with “-”)
-1,960.98 -298,792.47
Decrease of inventory (increase is listed with
“-”)
-4,190,901.53 26,482.38
Decrease of operating receivable accounts
(increase is listed with “-”)
-808,843.28 -11,299,293.84
Increase of operating payable accounts
(decrease is listed with “-”)
-5,138,208.69 1,563,504.67
Net cash flow from operation activities -13,791,941.34 -9,479,474.16
2. Material investment and financing not
involved in cash flow
-- --
3. Net change of cash and cash equivalents: -- --
Cash closing balance 6,074,367.91 16,488,886.26
Less: Balance of cash equivalent Balance at
period-begin
16,488,886.26 19,177,276.18
Net increased amount of cash and cash
equivalent
-10,414,518.35 -2,688,389.92
(2) Net cash paid for obtaining subsidiary in the Period
In RMB
Amount
Including: --
Including: --
Including: --
Other explanation:
Nil
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(3) Net cash received by disposing subsidiary in the Period
In RMB
Amount
Including: --
Including: --
Including: --
Other explanation:
(4) Constitution of cash and cash equivalent
In RMB
Item Balance at period-end Balance at period-begin
I. Cash 6,074,367.91 16,488,886.26
Including: Cash on hand 89,313.66 126,486.63
Bank deposit available for payment
at any time
5,979,003.60 16,305,989.07
Other monetary fund available for
payment at any time
6,050.65 56,410.56
Ⅲ. Balance of cash and cash equivalent at
period-end
6,074,367.91 16,488,886.26
Other explanation:
Nil
80. Notes of changes of owners’ equity
Explain the name and adjusted amount in “Other” at end of last period:
Nil
81. Assets with ownership or use right restricted
In RMB
Item Ending book value Restriction reasons
Total 0.00 --
Other explanation:
Nil
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82. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Item
Ending foreign currency
balance
Convert rate Ending RMB balance converted
Monetary fund -- --
Including: USD
EURO
HKD
Account receivable -- --
Including: USD
EURO
HKD
Long-term loans -- --
Including: USD
EURO
HKD
Other explanation:
Nil
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,
disclosed main operation place, book-keeping currency and basis for selection; if the book-keeping
currency changed, explain reasons
□Applicable √Not applicable
83. Hedging
Disclosed hedging items and relevant hedging instrument based on hedging’s category, disclosed qualitative and quantitative
information for the arbitrage risks:
Nil
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84. Government grants
(1) Government grants
In RMB
Category Amount Item
Amount reckoned into current
gains/losses
(2) Government grants rebate
□Applicable √Not applicable
Other explanation:
Nil
85. Other
Nil
VIII. Changes of consolidation range
1. Enterprise combined under different control
(1) Enterprise combined under different control in the Period
In RMB
Acquiree
Time point
for equity
obtained
Cost of
equity
obtained
Ratio of
equity
obtained
Acquired
way Equity
obtained way
Purchasing
date
Standard to
determine the
purchasing
date
Income of
acquiree from
purchasing
date to
period-end
Net profit of
acquiree from
purchasing
date to
period-end
Other explanation:
Nil
(2) Combination cost and goodwill
In RMB
Combination cost
Determination method for fair value of the combination cost and contingent consideration and changes:
Nil
Main reasons for large goodwill resulted:
Nil
Other explanation:
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Nil
(3) Identifiable assets and liability on purchasing date under the acquiree
In RMB
Fair value on purchasing date Book value on purchasing date
Determination method for fair value of the identifiable assets and liabilities:
Nil
Contingent liability of the acquiree bear during combination:
Nil
Other explanation:
Nil
(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing date
Whether it is a business combination realized by two or more transactions of exchange and a transaction of obtained control rights in
the Period or not
□Yes √No
(5) On purchasing date or period-end of the combination, combination consideration or fair value of
identifiable assets and liability for the acquiree are un-able to confirm rationally
Nil
(6) Other explanation
Nil
2. Enterprise combine under the same control
(1) Enterprise combined under the same control in the Period
In RMB
Combined
party
Equity ratio
obtained in
combination
Basis of
combined
under the
same control
Combination
date
Standard to
determine the
combination
date
Income of the
combined
party from
period-begin
of
combination
to the
combination
date
Net profit of
the combined
party from
period-begin
of
combination
to the
combination
date
Income of the
combined
party during
the
comparison
period
Net profit of
the combined
party during
the
comparison
period
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Other explanation:
Nil
(2) Combination cost
In RMB
Combination cost
Explanation on contingent consideration and its changes:
Nil
Other explanation:
Nil
(3) Assets and liability of the combined party on combination date
In RMB
Combination date At end of last period
Contingent liability of the combined party bear during combination:
Nil
Other explanation:
Nil
3. Counter purchase
Basic transaction information, basis of counter purchase, whether making up business due to the assets and liability reserved by listed
company and basis, determination of combination cost, amount and calculation on adjusted equity by equity transaction
Nil
4. Subsidiary disposal
Whether lost controlling rights while dispose subsidiary on one time or not
□ Yes √ No
Whether lost controlling rights in the Period while dispose subsidiary on two or more steps or not
□ Yes √ No
5. Other reasons for consolidation range changed
Reasons for changed on consolidation range (such as new subsidiary established, subsidiary liquidated etc.)And relevant information
In August 2019, the Company and Shenzhen Zuankinson Jewelry Co., Ltd jointly established a Shenzhen Xinsen Jewelry and Gold
Supply Chain Co., ltd. of which, the Company holds 65% equity, while 35% equity held by Shenzhen Zuankinson Jewelry Co., Ltd,
the enterprise was included in the consolidate scope since establishment.
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6. Other
Nil
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Subsidiary
Main operation
place
Registered place Business nature
Share-holding ratio
Acquired way
Directly Indirectly
Shenzhen
Emmelle
Industrial Co.,
Ltd.
Shenzhen Shenzhen
Sales of bicycles
and spare parts
70.00% Investment
Shenzhen Xinsen
Jewelry Gold
Supply Chain
Co., Ltd.
Shenzhen Shenzhen
Jewelry,
diamonds, gold
sales
65.00% Investment
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
Nil
Basis for controlling the invested entity with half or below voting rights held and without controlling invested entity but with over
half and over voting rights
Nil
Controlling basis for the structuring entity included in consolidated range
Nil
Basis on determining to be an agent or consignor:
Nil
Other explanation:
Nil
(2) Important non-wholly-owned subsidiary
In RMB
Subsidiary
Share-holding ratio of
minority
Gains/losses attributable
to minority in the Period
Dividend announced to
distribute for minority in
the Period
Ending equity of
minority
Shenzhen Emmelle
Industrial Co., Ltd.
30.00% -719,915.58 1,954,247.22
Shenzhen Xinsen Jewelry 35.00% 92,939.57 2,367,939.57
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Gold Supply Chain Co.,
Ltd.
Explanation on share-holding ratio of minority different from ratio of voting right:
Nil
Other explanation:
Nil
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
Subsidia
ry
Balance at period-end Balance at period-begin
Current
assets
Non-curr
ent
assets
Total
assets
Current
liability
Non-curr
ent
liability
Total
liabilities
Current
assets
Non-curr
ent
assets
Total
assets
Current
liability
Non-curr
ent
liability
Total
liabilities
Shenzhe
n
Emmelle
Industria
l Co.,
Ltd.
15,468,8
11.90
1,418,41
5.71
16,887,2
27.61
10,373,0
70.21
0.00
10,373,0
70.21
29,791,5
25.49
1,548,02
1.02
31,339,5
46.51
22,425,6
70.50
0.00
22,425,6
70.50
Shenzhe
n Xinsen
Jewelry
Gold
Supply
Chain
Co., Ltd.
8,696,93
5.06
1,960.98
8,698,89
6.04
1,933,35
4.41
0.00
1,933,35
4.41
In RMB
Subsidiary
Current Period Last Period
Operation
revenue
Net profit
Total
comprehensi
ve income
Cash flow
from
operation
activity
Operation
revenue
Net profit
Total
comprehensi
ve income
Cash flow
from
operation
activity
Shenzhen
Emmelle
Industrial
Co., Ltd.
15,470,013.0
0
-2,399,718.61 -2,399,718.61 -6,376,002.30
88,175,813.9
0
-961,789.56 -961,789.56 -2,982,485.91
Shenzhen
Xinsen
Jewelry Gold
Supply Chain
4,619,038.46 265,541.63 265,541.63 -5,608,748.24
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Co., Ltd.
Other explanation:
Nil
(4) Major restriction on using corporate assets and liquidate corporate debts
Nil
(5) Financial or other supporting provided to structuring entity that included in consolidated financial
statement
Nil
Other explanation:
Nil
2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights
(1) Owners equity shares changed in subsidiary
Nil
(2) Impact on minority’s interest and owners’ equity attributable to parent company
In RMB
Other explanation
Nil
3. Equity in joint venture and associated enterprise
(1) Important joint venture or associated enterprise
Joint venture or
associated
enterprise
Main operation
place
Registered place Business nature
Share-holding ratio
Accounting
treatment Directly Indirectly
Share-holding ratio or shares enjoyed different from voting right ratio:
Nil
Basis of the voting rights with 20% below but with major influence, or without major influence but with over 20% (20% included)
voting rights hold:
Nil
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(2) Main financial information of the important joint venture
In RMB
Balance at period-end/Current Period Balance at period-begin/Last Period
Other explanation
Nil
(3) Main financial information of the important associated enterprise
In RMB
Balance at period-end/Current Period Balance at period-begin/Last Period
Other explanation
Nil
(4) Financial summary for un-important joint venture or associated enterprise
In RMB
Balance at period-end/Current Period Balance at period-begin/Last Period
Joint venture： -- --
Total numbers measured by share-holding
ratio
-- --
Associated enterprise： -- --
Total numbers measured by share-holding
ratio
-- --
Other explanation
Nil
(5) Assets transfer ability has major restriction from joint venture or associated enterprise
Nil
(6) Excess losses from joint venture or associated enterprise
In RMB
Joint venture or associated
enterprise
Cumulative un-confirmed
losses
Un-confirmed losses not
recognized in the Period (or net
profit enjoyed in the Period)
Cumulative un-confirmed
losses at period-end
Other explanation
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Nil
(7) Un-confirmed commitment with investment concerned with joint venture
Nil
(8) Contingent liability with investment concerned with joint venture or associated enterprise
Nil
4. Co-runs operation
Name Main operation place Registered place Business nature
Share-holding ratio/share enjoyed
Directly Indirectly
Share-holding ratio or shares enjoyed different from voting right ratio:
Nil
If the co-runs entity is the separate entity, basis of the co-runs classification
Nil
Other explanation
Nil
5. Equity in structuring entity that excluding in the consolidated financial statement
Relevant explanation
Nil
6. Other
Nil
X. Risk related with financial instrument
The major financial instruments of the Company consist of monetary fund, account receivable, other account
receivable, account payable and other account payable, etc. details of these financial instruments are disclosed in
the relevant notes. Risks relating to these financial instruments and risk management policies adopted by the
Company to minimize these risks are detailed as follows. Management of the Company manages and monitors the
risk exposures, to make sure they are under control.
1. Risk management targets and policies
The objectives of the Company’s risk management is to balance the risk and income, reduce the negative risk
impact of operating performance to the lowest level, maximize the interests of shareholders and other equity
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investors. Based on these objectives, the Company has established risk management policies to identify and
analyze the risks faced by the Company, set adequate risk acceptable level and designed relevant internal control
system to monitor the level of risks. The Company regularly reviews these policies and related internal control
system to adapt to market development and change of operating activities of the Company. The major risks arising
from the Company’s financial instruments are credit risk and liquidity risk.
(1) Credit risk
Credit risk represents the risk of financial loss suffered by a party to a financial instrument due to failure of
performance obligation of another party.
Credit risk of the Company is managed by category. Credit risk mainly arises from bank deposits and trade
receivables. Since the bank deposits of the Company are mainly placed with those banks of high credit rating, the
Company expects no significant credit risk on bank deposits.
As for trade receivables, the Company establishes relevant policies to control credit risk exposure. The Company,
based on financial position of debtors, their credit records, market conditions and other factors, makes assessment
on debtors’ credit quality and sets relevant limit on amount of debt and credit term. The maximum credit risk
exposure assumed by the Company equals to the sum of carrying value of every financial asset in the balance
sheet. The Company provides no guarantee that may lead it to be exposed to credit risks.
(2) Liquidity risk
Liquidity risk refers to the risk of capital shortage of the Company when performing settlement obligation via
delivery of cash or other financial assets.
When managing liquidity risk, the Company maintains and monitors such cash and cash equivalents as deemed
adequate by the management, so as to satisfy its operation needs and minimize influence of fluctuation of cash
flow. Management of the Company monitors application of bank borrowings to make sure it complies with
relevant borrowing agreements.
2. Capital management
The capital management policy of the Company is designed to ensure sustainable operation Of the Company so as
to bring shareholders return and benefit other stakeholders, and to minimize capital cost by maintaining optimal
capital structure.
In order to maintain and adjust capital structure, the Company may adjust share dividend paid to shareholders or
issue new shares.
The Company monitors capital structure based on gearing ratio (total liabilities divided by total assets). As at 31
December 2019, the gearing ratio of the Company was 81.76% (31 December 2018: 76.82%)
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XI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
In RMB
Item
Ending fair value
First-order Second-order Third-order Total
I. Sustaining measured by
fair value
-- -- -- --
II. Non-sustaining
measured by fair value
-- -- -- --
2. Recognized basis for the market price sustaining and non-persistent measured by fair value on
first-order
Nil
3. Valuation technique and qualitative and quantitative information on major parameters for the fair value
measure sustaining and non-persistent on second-order
Nil
4. Valuation technique and qualitative and quantitative information on major parameters for the fair value
measure sustaining and non-persistent on third-order
Nil
5. Adjustment information and sensitivity analysis of unobservable parameters for the fair value measure
sustaining and non-persistent on third-order
Nil
6. Sustaining items measured by fair value, as for the conversion between at all levels, reasons for
conversion and policy for conversion time point
Nil
7. Changes of valuation technique in the Period
Nil
8. Financial assets and liability not measured by fair value
Nil
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9. Other
Nil
XII. Related party and related transactions
1. Parent company of the enterprise
Parent company Registered place Business nature Registered capital
Share-holding ratio
on the enterprise for
parent company
Voting right ratio on
the enterprise
Explanation on parent company of the enterprise
The Company has no parent company so far
Ultimate controller of the Company: nil
Other explanation:
Controlling shareholder and actual controller of the Company have changed on 20 February 2017. Before changed, the first majority
shareholder of the Company was Shenzhen Guosheng Energy Investment Development Co., Ltd., actual controller was Mr. Ji Hanfei;
the Company has no actual controller and controlling shareholder after changed. Found more in the Annual Report 2016 released on
27 April 2017 and “Reply on Surveillance Attention Letter on CBC from Shenzhen Stock Exchange” released on 26 May 2017
2. Subsidiary of the Enterprise
Found more in Note IX-1
3. Associated enterprise and joint venture
Found more in Note IX-3
Other associated enterprise and joint venture that have related transaction with the Company in the Period or occurred in previous
period
Joint venture or associated enterprise Relationship with the Company
Other explanation
Nil
4. Other related party
Other related party Relationship with the Company
Shenzhen Huahui Tongda Industrial Co., Ltd.
Supervisor of the Company Li Jialin is the legal person of the
enterprise
Shenzhen Zuanjinsen Jewelry Co., Ltd. Subsidiary Xinsen Jewelry Shareholder
Shenzhen Guosheng Energy Investment Development Co., Ltd. The first majority shareholder
Other explanation
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11.52 percent shares of the Company are held by Shenzhen Guosheng Energy Investment Development Co., Ltd.
5. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
Related party
Transaction
content
Current Period
Approved transaction
amount
Whether more than
the transaction amount
Last Period
Shenzhen
Zuanjinsen Jewelry
Co., Ltd.
Purchase of raw
materials
2,428,035.40 No 0.00
Goods sold/labor service providing
In RMB
Related party Transaction content Current Period Last Period
Shenzhen Huahui Tongda
Industrial Co., Ltd.
Sales of goods 18,409.04 234,790.09
Explanation on goods purchasing, labor service providing and receiving
Nil
(2) Related trusteeship/contract and delegated administration/outsourcing
Trusteeship/contract
In RMB
Client/
contract-out party
Entrusting party/
contractor
Assets type Starting date Maturity date
Yield pricing
basis
Income from
trusteeship/contra
ct
Explanation on related trusteeship/contract
Nil
Delegated administration/outsourcing
In RMB
Client/
contract-out party
Entrusting party/
contractor
Assets type Starting date Maturity date
Pricing basis of
trustee
fee/outsourcing
fee
trustee
fee/outsourcing
fee recognized in
the Period
Explanation on related administration/outsourcing
Nil
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(3) Related lease
As a lessor for the Company:
In RMB
Lessee Assets type
Lease income in recognized in
the Period
Lease income in recognized last
the Period
As a lessee for the Company:
In RMB
Lessor Assets type
Lease income in recognized in
the Period
Lease income in recognized last
the Period
Explanation on related lease
Nil
(4) Related guarantee
As a guarantor for the Company
In RMB
Secured party Amount guarantee Starting date Maturity date
Guarantee completed
(Y/N)
As a secured party for the Company
In RMB
Guarantor Amount guarantee Starting date Maturity date
Guarantee completed
(Y/N)
Explanation on related guarantee
Nil
(5) Borrowed funds of related party
In RMB
Related party Borrowed funds Starting date Due date Note
Borrowing
Lending
(6) Assets transfer and debt restructuring of related party
In RMB
Related party Transaction content Current Period Last Period
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(7) Remuneration of key manager
In RMB
Item Current Period Last Period
Remuneration of key manager 1,439,685.05 1,950,178.00
(8) Other related transactions
Nil
6. Receivable/payable items of related parties
(1) Receivable item
In RMB
Item Related party
Balance at period-end Balance at period-begin
Book balance Bad debt provision Book balance Bad debt provision
Other current assets
Shenzhen
Zuanjinsen Jewelry
Co., Ltd.
301,754.90
(2) Payable item
In RMB
Item Related party Book balance at period-end Book balance at period-begin
Account received in advance
Shenzhen Huahui Tongda
Industrial Co., Ltd.
5,439.00
Other account payable
Shenzhen Guosheng Energy
Investment Development Co.,
Ltd.
6,500,000.00 6,500,000.00
7. Commitments of related party
Nil
8. Other
Nil
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XIII. Share-based payment
1. General share-based payment
□Applicable √Not applicable
2. Share-based payment settled by equity
□Applicable √Not applicable
3. Share-based payment settled by cash
□Applicable √Not applicable
4. Revised and termination on share-based payment
Nil
5. Other
Nil
XIV. Commitment or contingency
1. Important commitments
Important commitments in balance sheet date
Nil
2. Contingency
(1) Contingency on balance sheet date
Nil
(2) For the important contingency not necessary to disclosed by the Company, explained reasons
The Company has no important contingency that need to disclosed
3. Other
Nil
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XV. Events after balance sheet date
1. Important non-adjustment items
In RMB
Item Content
Impact on financial status and
operation results
Reasons on un-able to estimated
the impact number
2. Profit distribution
In RMB
3. Sales return
Nil
4. Other events after balance sheet date
On April 21, 2020, the company convened the 19th (provisional) board meeting of the tenth session of the board of directors, and
reviewed and approved the “Proposal on the Termination of Agreement for Signing a Conditional Share Subscription Agreement
(Second Revision) with the Original Subscription Object” and the “Proposal on the Plan for Non-public Issuance of A Shares of
Shenzhen China Bicycle Company (Holdings) Limited”, etc. The company terminated the non-public offering of shares of 2016 and
launched the plan for non-public issuance of A shares in 2020, and planned to raise funds with total amount not exceeding RMB 450
million by non-public offering of shares to 5 specific investors, i.e. Wansheng Industrial Holdings (Shenzhen) Co., Ltd., Fuzhou
Zuankinson Jewelry Co., Ltd., Shenzhen Yilian Jinchuang Technology Co., Ltd., Shenzhen Hualinglong Jewelry Co., Ltd., and
Shenzhen Jindaogu Jewelry Co., Ltd., all raised funds will be used to supplement working capital after deducting the issuance
expenses. The non-public offering plan still needs to be approved by the company’s shareholders’ meeting and the China Securities
Regulatory Commission.
XVI. Other important events
1. Previous accounting errors collection
(1) Retrospective restatement
In RMB
Correction content Treatment procedures
Impact items of statement
during a comparison
Cumulative impacted number
(2) Prospective application
Correction content Approval procedures
Reasons for prospective application
adopted
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2. Debt restructuring
Nil
3. Assets replacement
(1) Non-monetary assets change
Nil
(2) Other assets replacement
Nil
4. Pension plan
Nil
5. Discontinued operations
In RMB
Item Revenue Expenses Total Profit
Income tax
expenses
Net profit
Discontinued
operations profit
attributable to
owners of parent
company
Other explanation
Nil
6. Segment
(1) Recognition basis and accounting policy for reportable segment
Nil
(2) Financial information for reportable segment
In RMB
Item Offset between segments Total
(3) The Company has no reportable segments, or unable to disclose total assets and total liability for
reportable segments, explain reasons
Nil
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(4) Other explanation
Nil
7. Major transaction and events makes influence on investor’s decision
Nil
8. Other
Nil
XVII. Principle notes of financial statements of parent company
1. Account receivable
(1) By category
In RMB
Category
Balance at period-end Balance at period-begin
Book balance Bad debt provision
Book
value
Book balance Bad debt provision
Book value
Amount Ratio Amount
Accrual
ratio
Amount Ratio Amount
Accrual
ratio
Account receivable
with bad debt
provision accrual by
single basis
6,975,08
1.75
19.92%
2,092,52
4.53
30.00%
4,882,557
.22
Including:
Accounts with single
significant amount
but with bad debts
provision accrued
individually
5,035,60
3.75
14.38%
1,510,68
1.13
30.00%
3,524,922
.62
Accounts with single
minor amount but
with bad debts
provision accrued
individually
1,939,47
8.00
5.54%
581,843.
40
30.00%
1,357,634
.60
Account receivable
with bad debt
provision accrual by
portfolio
28,045,1
14.82
80.08%
84,135.3
4
0.30%
27,960,97
9.48
12,866,55
3.82
100.00% 38,599.66 0.30%
12,827,954.
16
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Including:
Account receivable
withdrawal bad debt
provision by group of
credit risk
characteristics
(Aging analysis
method)
28,045,1
14.82
80.08%
84,135.3
4
0.30%
27,960,97
9.48
12,866,55
3.82
100.00% 38,599.66 0.30%
12,827,954.
16
Total
35,020,1
96.57
100.00%
2,176,65
9.87
6.22%
32,843,53
6.70
12,866,55
3.82
100.00% 38,599.66 0.30%
12,827,954.
16
Bad debt provision accrual on single basis: Account receivable with significant single amount period-end but withdrawal bad debt
provision on single basis
In RMB
Name
Balance at period-end
Book balance Bad debt provision Accrual ratio Accrual causes
Shenzhen Jiahaosong
Technology Co., Ltd.
5,035,603.75 1,510,681.13 30.00%
Expected to be difficult
to recover
Total 5,035,603.75 1,510,681.13 -- --
Bad debt provision accrual on single basis: Account receivable with minor single amount period-end but withdrawal bad debt
provision on single basis
In RMB
Name
Balance at period-end
Book balance Bad debt provision Accrual ratio Accrual causes
Guangdong Xinlingjia
New Energy Co., Ltd.
1,267,000.00 380,100.00 30.00%
Expected to be difficult
to recover
Shenzhen Boyineng
Technology Co., Ltd.
672,478.00 201,743.40 30.00%
Expected to be difficult
to recover
Total 1,939,478.00 581,843.40 -- --
Bad debt provision accrual on single basis:
In RMB
Name
Balance at period-end
Book balance Bad debt provision Accrual ratio Accrual causes
Bad debt provision accrual on portfolio: Account receivable with bad debt provision accrual on aging analysis
In RMB
Name
Balance at period-end
Book balance Bad debt provision Accrual ratio
Within one year (one year
included)
28,045,114.82 84,135.34 0.30%
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Total 28,045,114.82 84,135.34 --
Explanation on portfolio basis:
Nil
Bad debt provision accrual on portfolio
In RMB
Name
Balance at period-end
Book balance Bad debt provision Accrual ratio
Explanation on portfolio basis:
Nil
Bad debt provision accrual on portfolio
In RMB
Name
Balance at period-end
Book balance Bad debt provision Accrual ratio
Explanation on portfolio basis:
If the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses, please refer
to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable √Not applicable
By account age
In RMB
Account age Balance at period-end
Within one year (one year included) 33,080,718.57
Within one year 33,080,718.57
1-2 years 1,939,478.00
Total 35,020,196.57
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Category
Balance at
period-begin
Current changes
Balance at
period-end Accrual
Collected or
reversal
Charge-off Other
Bad debt
provision for
accounts
receivable
38,599.66 2,138,060.21 2,176,659.87
Total 38,599.66 2,138,060.21 2,176,659.87
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Including important amount of bad debt provision collected or reversal in the period:
In RMB
Enterprise Amount collected or reversal Collection way
Total 0.00 --
Nil
(3) Account receivables actually charge-off during the reporting period
In RMB
Item Amount charge-off
Including major account receivables charge-off:
In RMB
Enterprise Nature Amount charge-off Causes of charge-off
Procedure for
charge-off
Amount cause by
related transactions
or not (Y/N)
Total -- 0.00 -- -- --
Explanation on account receivable charge-off:
Nil
(4) Top five account receivables collected by arrears party at ending balance
In RMB
Name
Ending balance of accounts
receivable
Proportion of total closing
balance of accounts receivable
Ending balance of bad bet
provision
Guangshui Jiaxu Energy
Technology Co., Ltd.
9,544,200.90 27.25% 28,632.60
Zhengzhou Guiguan Tech.
Trade. Co., Ltd
7,377,678.50 21.07% 22,133.04
Shenzhen Jiahaosong
Technology Co., Ltd.
5,035,603.75 14.38% 1,510,681.13
Shenzhen Weiterui New Energy
Technology Co., Ltd.
3,924,471.05 11.21% 11,773.41
Jinan Yuxintai Sales Co., Ltd. 3,728,202.00 10.65% 11,184.61
Total 29,610,156.20 84.56%
(5) Account receivable derecognition due to transfer of financial assets
Nil
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(6) Assets and liability resulted by account receivable transfer and continuous involvement
Nil
Other explanation:
Nil
2. Other account receivable
In RMB
Item Balance at period-end Balance at period-begin
Dividend receivable 0.00
Other account receivable 485,062.44 380,925.78
Total 485,062.44 380,925.78
(1) Interest receivable
1) Category
In RMB
Item Balance at period-end Balance at period-begin
2) Important overdue interest
Borrower Balance at period-end Overdue time Overdue reason
Impairment (Y/N) and
judgment basis
Total 0.00 -- -- --
Other explanation:
Nil
3) Accrual of bad debt provision
□Applicable √Not applicable
(2) Dividend receivable
1) Category
In RMB
Item (or invested company) Balance at period-end Balance at period-begin
Total 0.00
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2) Important dividend receivable with over one year aged
In RMB
Item (or invested
company)
Balance at period-end Account age
Causes of failure for
collection
Impairment (Y/N) and
judgment basis
Total 0.00 -- -- --
3) Accrual of bad debt provision
□Applicable √Not applicable
Other explanation:
Nil
(3) Other account receivable
1) By nature
In RMB
Account nature Book balance at period-end Book balance at period-begin
Deposit or margin 484,822.00 370,672.00
Payment for equipment 11,400.00 11,400.00
Reserve 2,000.00
Total 498,222.00 382,072.00
2) Accrual of bad debt provision
In RMB
Bad debt provision
Phase I Phase II Phase III
Total
Expected credit
losses over next 12
months
Expected credit losses for
the entire duration (without
credit impairment occurred)
Expected credit losses for
the entire duration (with
credit impairment occurred)
Balance on January 1,
2019
1,146.22 1,146.22
January 1, 2019 balance
in the current period
—— —— —— ——
Accrued in this period 12,013.34 12,013.34
Balance on December 31,
2019
13,159.56 13,159.56
Change of book balance of loss provision with amount has major changes in the period
□Applicable √Not applicable
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By account age
In RMB
Account age Balance at period-end
Within one year (one year included) 143,404.00
Within one year 143,404.00
1-2 years 342,918.00
2-3 years 200.00
Over 3 years 11,700.00
3-4 years 11,700.00
Total 498,222.00
3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Category
Balance at
period-begin
Current changes
Balance at
period-end Accrual
Collected or
reversal
Write off Other
Bad debt provision
for other receivables
1,146.22 12,013.34 13,159.56
Total 1,146.22 12,013.34 0.00 0.00 0.00 13,159.56
Nil
Important amount of bad debt provision switch-back or collection in the period:
In RMB
Enterprise Amount switch-back or collection Collection way
Total 0.00 --
Nil
4) Other account receivables actually charge-off during the reporting period
In RMB
Item Amount charge-off
Including major other account receivables charge-off:
In RMB
Enterprise Nature Amount charge-off Causes of charge-off
Procedure for
charge-off
Amount cause by
related transactions
or not (Y/N)
Total -- 0.00 -- -- --
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Other Explanation on account receivable charge-off
Nil
5) Top 5 other account receivable collected by arrears party at ending balance
In RMB
Enterprise Nature
Balance at
period-end
Account age
Proportion in total
other account
receivables at
period-end
Ending balance of
bad debt provision
Shenzhen Anjingheng
Industrial Co., Ltd.
Deposit or margin 275,150.00 Within 2 years 55.23% 825.45
Shenzhen Material
Group Co., Ltd.
Deposit or margin 181,918.00 1-2 years 36.51% 545.75
Shenzhen Jintaiyuan
Investment
Management Co., Ltd.
Deposit or margin 27,254.00 Within 1 year 5.47% 81.76
Shenzhen Hongkang
Instrument
Technology Co., Ltd.
Equipment 11,400.00 3-4 years 2.29% 11,400.00
Zhang Xianwu Reserve 2,000.00 Within 1 year 0.40% 6.00
Total -- 497,722.00 -- 99.90% 12,858.96
6) Account receivable with government grants involved
In RMB
Enterprise Government grants Balance at period-end Ending account age
Time, amount and basis
of amount collection
estimated
Nil
7) Other account receivable derecognition due to financial assets transfer
Nil
8) Assets and liability resulted by other account receivable transfer and continuous involvement
Nil
Other explanation:
Nil
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3. Long-term equity investment
In RMB
Item
Balance at period-end Balance at period-begin
Book balance
Impairment
provision
Book value Book balance
Impairment
provision
Book value
Investment for
subsidiary
5,625,000.00 1,389,620.27 4,235,379.73 1,400,000.00 1,389,620.27 10,379.73
Total 5,625,000.00 1,389,620.27 4,235,379.73 1,400,000.00 1,389,620.27 10,379.73
(1) Investment for subsidiary
In RMB
The invested
entity
Balance at
period-begin
(Book value)
Changes in the period (+, -)
Balance at
period-end
(Book value)
Ending balance
of impairment
provision
Additional
investment
Capital
reduction
Accrual of
impairment
provision
Other
Shenzhen
Emmelle
Industrial Co.,
Ltd.
10,379.73 10,379.73 1,389,620.27
Shenzhen
Xinsen Jewelry
Gold Supply
Chain Co., Ltd.
4,225,000.00 4,225,000.00 0.00
Total 10,379.73 4,225,000.00 0.00 0.00 0.00 4,235,379.73 1,389,620.27
(2) Investment for associates and joint venture
In RMB
Funded
enterprise
Balance
at
period-be
gin (Book
value)
Changes in the period (+, -)
Balance
at
period-en
d (Book
value)
Ending
balance
of
impairme
nt
provision
Additiona
l
investmen
t
Capital
reduction
Investme
nt gains
recognize
d under
equity
Other
comprehe
nsive
income
adjustmen
t
Other
equity
change
Cash
dividend
or profit
announce
d to
issued
Accrual
of
impairme
nt
provision
Other
I. Joint venture
Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
II. Associated enterprise
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Subtotal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(3) Other explanation
Nil
4. Operation revenue and operation cost
In RMB
Item
Current Period Last Period
Revenue Cost Revenue Cost
Main business 54,012,420.29 52,204,470.16 31,732,088.16 29,103,342.44
Other business 3,753,308.11 753,000.00 2,127,375.25 753,000.00
Total 57,765,728.40 52,957,470.16 33,859,463.41 29,856,342.44
Whether implemented the new revenue standards
□Yes √No
Other explanation:
Nil
5. Investment income
In RMB
Item Current Period Last Period
6. Other
Nil
XVIII. Supplementary Information
1. Current non-recurring gains/losses
√Applicable □Not applicable
In RMB
Item Amount Note
Other non-operating income and expenditure
except for the aforementioned items
194,691.02
Less: Impact on income tax 48,672.76
Impact on minority shareholders’ equity -37,575.93
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Total 183,594.19 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□Applicable √Not applicable
2. ROE and EPS
Profits during report period Weighted average ROE
Earnings per share
Basic earnings per share
(RMB/Share)
Diluted earnings per
share (RMB/Share)
Net profits belong to common stock
stockholders of the Company
-53.69% -0.0130 -0.0130
Net profits belong to common stock
stockholders of the Company after
deducting nonrecurring gains and
losses
-55.06% -0.013 -0.013
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable √Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable √Not applicable
(3) Explain accounting difference over the accounting rules in and out of China; as for the difference
adjustment for data audited by foreign auditing organ, noted the name of such foreign organ
Nil
4. Other
Nil
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Section XIII. Documents available for reference
1. Accounting statement carrying the signatures and seals of the legal representative, person in charge of
accounting and person in charge of accounting organ.
2. Original audit report with seal of the accounting firm and signature and seal of CPAs.
3. Originals documents of the Company and manuscripts of public notices that disclosed in the newspaper
designated by CSRC in the report period.
4. English version of the Annual Report 2019
Board of Directors of
Shenzhen China Bicycle Company (Holdings) Limited
26 April 2020
