ChatDOC/OCRFlux-bench-single huggingface dataset:
# 2. APPLICATION OF AMENDMENTS TO HONG KONG FINANCIAL REPORTING STANDARDS (“HKFRSs”) (continued)

# Amendments to HKAS 1 Classification of Liabilities as Current or Non-current and related amendments to Hong Kong Interpretation 5 (2020)

The amendments provide clarification and additional guidance on the assessment of right to defer settlement for at least twelve months from reporting date for classification of liabilities as current or non-current, which:

• specify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period. Specifically, the amendments clarify that:

(i) the classification should not be affected by management intentions or expectations to settle the liability within 12 months; and

(ii) if the right is conditional on the compliance with covenants, the right exists if the conditions are met at the end of the reporting period, even if the lender does not test compliance until a later date; and

• clarify that if a liability has terms that could, at the option of the counterparty, result in its settlement by the transfer of the entity’s own equity instruments, these terms do not affect its classification as current or non-current only if the entity recognises the option separately as an equity instrument applying HKAS 32 Financial Instruments: Presentation.

In addition, Hong Kong Interpretation 5 was revised as a consequence of the Amendments to HKAS 1 to align the corresponding wordings with no change in conclusion.

Based on the Group’s outstanding liabilities as at 31 December 2020, the application of the amendments will not result in reclassification of the Group’s liabilities.

# 3. BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES

# 3.1 Basic of preparation of consolidated financial statements

The consolidated financial statements have been prepared in accordance with the HKFRSs issued by the HKICPA. For the purpose of preparation of the consolidated financial statements, information is considered material if such information is reasonably expected to influence decisions made by primary users. In addition, the consolidated financial statements include applicable disclosures required by the Rules Governing the Listing of Securities on the Stock Exchange and the Hong Kong Companies Ordinance.

The consolidated financial statements have been prepared on the historical cost basis. Historical cost is generally based on the fair value of the consideration given in exchange of goods and services.
# CORPORATE REORGANISATION AND GROUP STRUCTURE

share capital for cash at par. On 26 May 2008, Honour Event disposed its entire shareholding in Expand Pacific Limited to Mr. Tsang, our executive Director at a consideration of HK\$1.00.

First Credit had advanced an aggregate sum of HK\$114,350 by way of loan to Expand Pacific Limited. The said loan of HK\$114,350 was unsecured, interest-free and with no fixed term of repayment but repayable on demand. The said loan was repaid in full on 24 March 2009.

On 15 January 2008, First Consortium acquired from Best Year Enterprises Limited (a company wholly-owned by Mr. Sin) one ordinary share of HK\$1.00 in the capital of Head Return Limited (formerly known as FC Mortgage Referral Limited), being its entire issued share capital, for cash at par. On 14 May 2008, First Consortium disposed its entire shareholding in Head Return Limited to Mr. Sin at a consideration of HK\$1.00.

First Credit had advanced an aggregate sum of HK\$111,914 by way of loan to Head Return Limited. The said loan of HK\$111,914 was unsecured, interest-free and with no fixed term of repayment but repayable on demand. The said loan was repaid in full on 24 March 2009.

Expand Pacific Limited and Head Return Limited are limited liability companies incorporated in Hong Kong on 29 August 2007 and 18 October 2007 respectively. Our Group did not conduct any business operation in these companies before the aforesaid disposals.

# THE REORGANISATION

# Incorporation of our Company

Our Company was incorporated under the Companies Law in the Cayman Islands as an exempted company with limited liability on 9 March 2009. Our Company has established a place of business in Hong Kong at Units 909–911, 9th Floor, Far East Consortium Building, 121 Des Voeux Road Central, Hong Kong and was registered as a non-Hong Kong company in Hong Kong under Part XI of the Companies Ordinance on 2 April 2009. As at the date of incorporation, the authorised share capital of our Company was HK\$380,000 divided into 38,000,000 Shares of HK\$0.01 each and one nil-paid Share was issued and allotted to the initial subscriber, Codan Trust Company (Cayman) Limited. The said one Share was transferred to Best Year Enterprises Limited (a shareholder of First Consortium and a wholly-owned company of Mr. Sin) on the same date.
# CORPORATE REORGANISATION AND GROUP STRUCTURE

# Acquisition of First Consortium by our Company

On 25 April 2009, pursuant to a sale and purchase agreement entered into between (i) the then shareholders of First Consortium as vendors, namely Best Year Enterprises Limited, Power Profit Far East Limited, Win Action Limited, Choy Sze Chung Jojo, Easy Finance Management Limited, Tam Yuk Ching Jenny, Top Stanton Holdings Limited, Tsang Kai Kin Clinton, Yearman Limited, Capital Top Limited, Gainyear Holdings Limited, Firstcorp Group Limited, Union Nation Investments Limited, Tse Young Lai, Rise Day Investments Limited, Jade Wing Investments Limited, Enhance Pacific Limited and Nation Field Limited and (ii) our Company as purchaser, our Company acquired the entire issued share capital of First Consortium. In consideration of the acquisition, (i) the one nil-paid Share held by Best Year Enterprises Limited was credited as fully paid; and (ii) our Company issued and allotted 19,230,766 Shares to the then shareholders of the First Consortium, details of the allotment are as follows:

Name of Shareholders	No. of shares
held by the
shareholders
in First
Consortium
before
acquisition	No. of Shares
issued by our
Company as
consideration
for the
acquisition	Total No. of
Shares held by
the
Shareholders
after the
acquisition	Approximate
percentage of
shareholding
after the
acquisition
Best Year Enterprises Limited
(Note 1)	1,538,469	1,538,468	1,538,469	8.00%
Tse Young Lai	2,994,872	2,994,872	2,994,872	15.57%
Power Profit Far East Limited	2,346,152	2,346,152	2,346,152	12.20%
Win Action Limited	1,923,076	1,923,076	1,923,076	10.00%
Nation Field Limited	1,615,385	1,615,385	1,615,385	8.40%
Tam Yuk Ching Jenny	1,333,332	1,333,332	1,333,332	6.93%
Top Stanton Holdings Limited	1,230,768	1,230,768	1,230,768	6.40%
Easy Finance Management
Limited	846,153	846,153	846,153	4.40%
Tsang Kai Kin Clinton	782,051	782,051	782,051	4.07%
Rise Day Investments Limited
(Note 2)	769,231	769,231	769,231	4.00%
Choy Sze Chung Jojo	769,230	769,230	769,230	4.00%
Yearman Limited	769,230	769,230	769,230	4.00%
Enhance Pacific Limited
(Note 1)	589,743	589,743	589,743	3.07%
CailTpta oiip Lmted	512,820	512,820	512,820	2.67%
Gainyear Holdings Limited	461,538	461,538	461,538	2.40%
Union Nation Investments
Limited	312,820	312,820	312,820	1.62%
Firstcorp Group Limited	307,692	307,692	307,692	1.60%
Jade Wing Investments
Limited (Note 2)	128,205	128,205	128,205	0.67%
Total:	19,230,767	19,230,766	19,230,767	100.00%
# 21. BUSINESS REVIEW

Business review of the Company is set out in “Management Discussion and Analyasis” on page 4 of this annual report.

# 22. PERMITTED INDEMNITY PROVISION

A permitted indemnity provision for the benefit of the directors of the Company is currently in force and was in force throughout the financial year.

The Company has taken out and maintained directors’ liability insurance throughout the year, which provides appropriate cover for the directors of the Group.

# 23. EVENT AFTER THE REPORTING PERIOD

Details of events occuring after the reporting period are set out in note 43 to the consolidated financial statements.

# 24. AUDITOR

The consolidated financial statements have been audited by RSM Hong Kong who retire and, being eligible, offer themselves for re-appointment.

On behalf of the Board

Li Yin Hui

Chairman

27 March 2017
TO THE SHAREHOLDERS OF CHINA FIRE SAFETY ENTERPRISE GROUP LIMITED

(Incorporated in the Cayman Islands with limited liability)

# Opinion

We have audited the consolidated financial statements of China Fire Safety Enterprise Group Limited and its subsidiaries (the “Group”) set out on pages 39 to 115, which comprise the consolidated statement of financial position as at 31 December 2016, and the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position of the Group as at 31 December 2016, and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”) issued by the Hong Kong Institute of Certified Public Accountants (the “HKICPA”) and have been properly prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance.

# Basis for Opinion

We conducted our audit in accordance with Hong Kong Standards on Auditing (“HKSAs”) issued by the HKICPA. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the HKICPA’s Code of Ethics for Professional Accountants (the “Code”), 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.
highest known oil elevation and the potential exists for an associated natural gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience, engineering or performance data and reliable technology establish the higher contact with reasonable certainty. Reserves which can be produced economically through application of improved recovery techniques (including, but not limited to, fluid injection) are included in the proved classification when: (i) successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, the operation of an installed program in the reservoir or an analogous reservoir, or other evidence using reliable technology establishes the reasonable certainty of the engineering analysis on which the project or program was based; and (ii) the project has been approved for development by all necessary parties and entities, including governmental entities.

Developed oil, natural gas and NGL reserves are reserves of any category that can be expected to be recovered through existing wells with existing equipment and operating methods where production can be initiated or restored with relatively low expenditure compared to the cost of drilling a new well.

The information provided below on our oil, natural gas and NGL reserves is presented in accordance with regulations prescribed by the SEC. Our reserve estimates are generally based upon extrapolation of historical production trends, analogy to similar properties and volumetric calculations. Accordingly, these estimates will change as future information becomes available and as commodity prices change. These changes could be material and could occur in the near term.

Presented below is a summary of changes in estimated reserves for 2017, 2016 and 2015:

Oil	Gas	NGL	Total
(mmbbl)	(bcf)	(mmbbl)	(mmboe)
December 31, 2017
Proved reserves, beginning of period	399.1	6,496	226.4	1,708
Extensions, discoveries and other additions	62.7	3,694	44.9	723
Revisions of previous estimates	(168.1)	(315)	(31.0)	(252)
Production	(32.7)	(878)	(20.9)	(200)
Sale of reserves­in­place	(0.9)	(418)	(0.8)	(71)
Purchase of reserves­in­place	0.1	21	—	4
Proved reserves, end of period(a)	260.2	8,600	218.6	1,912
Proved developed reserves:
Beginning of period	200.4	5,126	134.1	1,189
End of period	150.9	4,980	134.9	1,116
Proved undeveloped reserves:
Beginning of period	198.7	1,370	92.2	519
End of period(b)	109.3	3,620	83.6	796
Oil	Gas	NGL	Total
(mmbbl)	(bcf)	(mmbbl)	(mmboe)
December 31, 2016
Proved reserves, beginning of period	313.7	6,041	183.5	1,504
Extensions, discoveries and other additions	191.2	1,798	89.0	580
Revisions of previous estimates	(58.9)	598	2.8	43
Production	(33.2)	(1,050)	(24.4)	(233)
Sale of reserves­in­place	(14.7)	(1,190)	(28.1)	(241)
Purchase of reserves­in­place	1.0	299	3.6	55
Proved reserves, end of period(c)	399.1	6,496	226.4	1,708
Proved developed reserves:
Beginning of period	215.6	5,329	158.0	1,262
End of period	200.4	5,126	134.1	1,189
Proved undeveloped reserves:
Beginning of period	98.1	712	25.5	242
End of period(b)	198.7	1,370	92.2	519
December 31, 2015
Proved reserves, beginning of period	420.8	10,692	266.3	2,469
Extensions, discoveries and other additions	61.1	805	35.3	231
Revisions of previous estimates	(110.0)	(4,191)	(75.8)	(885)
Production	(41.6)	(1,070)	(28.0)	(248)
Sale of reserves­in­place	(16.6)	(195)	(14.3)	(63)
Purchase of reserves­in­place	—	—	—	—
Proved reserves, end of period(d)	313.7	6,041	183.5	1,504
Proved developed reserves:
Beginning of period	229.3	8,615	198.5	1,864
End of period	215.6	5,329	158.0	1,262
Proved undeveloped reserves:
Beginning of period	191.5	2,077	67.8	605
End of period(b)	98.1	712	25.5	242

(a) Includes 1 mmbbl of oil, 20 bcf of natural gas and 2 mmbbls of NGL reserves owned by the Chesapeake Granite Wash Trust, of which 1 mmbbl of oil, 10 bcf of natural gas and 1 mmbbl of NGL are attributable to noncontrolling interest holders

(b) As of December 31, 2017, 2016 and 2015, there were no PUDs that had remained undeveloped for five years or more.

(c) Includes 1 mmbbl of oil, 23 bcf of natural gas and 2 mmbbls of NGL reserves owned by the Chesapeake Granite Wash Trust, 1 mmbbl of oil, 12 bcf of natural gas and 1 mmbbl of NGL of which are attributable to the noncontrolling interest holders.

(d) Includes 1 mmbbl of oil, 32 bcf of natural gas and 3 mmbbls of NGL reserves owned by the Chesapeake Granite Wash Trust, 1 mmbbl of oil, 16 bcf of natural gas and 2 mmbbls of NGL of which are attributable to the noncontrolling interest holders.
# IX. NOTES TO THE ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

# 49. OPERATING INCOME, COSTS (CONTINUED)

# (2) Operating income classified by recognition time point (Continued)

# 2019

Item	Forwarding and
related business	Logistics	E-commerce
Operating income	——	——	——
Including: Recognition at a
certain point in
time	54,832,554,258.05	19,839,396,911.93	2,798,645,856.41
Recognition
within a certain
time period	–	–	–
Lease income	–	–	184,507,950.59
Total	54,832,554,258.05	19,839,396,911.93	2,983,153,807.00

# (3) The income adjusted in the current year for the performance obligations already fulfilled (or partially fulfilled) in the prior year was RMB0.00.
# IX. NOTES TO THE ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

# 50. TAXES AND SURCHARGES

Item	Current year	Prior year
Property tax	81,494,136.22	89,439,423.17
Land use tax	37,239,612.42	38,845,280.69
Stamp duties	19,872,747.80	27,586,169.98
Urban maintenance & construction tax	18,537,678.51	23,350,421.21
Education surcharge	14,534,378.34	13,456,328.39
Others	5,945,722.05	5,839,842.14
Total	177,624,275.34	198,517,465.58

# 51. SELLING EXPENSES

Item	Current year	Prior year
Employee benefits	630,343,946.91	641,544,865.73
Business entertainment expenses	31,405,608.88	38,642,115.67
Depreciation and amortisation charges on other assets	25,951,678.90	19,728,872.05
Travel expenses	16,716,781.49	27,383,501.26
Depreciation of right-of-use assets	14,320,092.31	11,338,692.76
Office expenses	13,124,014.10	11,214,201.43
Technical service fee for communication network	12,312,010.49	14,438,986.29
Intermediary service fee	11,897,848.68	23,666,524.86
Vehicle expenses	9,343,461.49	11,906,102.19
Property and utilities fees	9,194,002.79	9,210,111.90
Rental	8,565,734.15	15,226,785.39
Others	23,164,417.66	27,438,433.09
Total	806,339,597.85	851,739,192.62
Details of specific categories of options granted under 2002 Share Option Scheme are as follows:

Option type	Date of grant	Exercise period	Adjusted
Exercise price
HK$
(Notes 3, 4)
2007 Option	13.11.2007	01.01.2010–12.11.2017	1.075
13.11.2007	01.01.2011–12.11.2017	1.075

The following table discloses movements in the Company’s share options granted under the 2002 Share Option Scheme during the year:

Option type	Outstanding
at
1.1.2017	Adjustment
for the
Rights Issue	Exercised
during
the year	Transferred
during
the year	Adjustment
for the
Share
Consolidation	Lapsed
during
the year	Outstanding
at
31.12.2017
(Note 3)	(Note 4)
Category 1: Directors
Chen Wei	2007 Option	41,910,000	20,955,000	–	(62,865,000)	–	–	–
Tang Yui Man Francis	2007 Option	13,970,000	6,985,000	–	(20,955,000)	–	–	–
Total for Directors	55,880,000	27,940,000	–	(83,820,000)	–	–	–
Category 2: Other Participants
Other Participants	2007 Option	37,719,000	18,859,500	–	83,820,000	(112,318,800)	(28,079,700)	–
Total for Other Participants	37,719,000	18,859,500	–	83,820,000	(112,318,800)	(28,079,700)	–
All categories	93,599,000	46,799,500	–	–	(112,318,800)	(28,079,700)	–

Notes:

1. The vesting period of the share options is from the date of grant until the commencement date of the exercise period.

2. Mr. Chen Wei and Mr. Tang Yui Man Francis resigned as the executive director of the Company during the year and the options were transferred to under the category of other participants.

3. On 14 March 2017, the exercise price of and the number of shares entitled to be subscribed for under the outstanding share options have been adjusted in the following manner following the completion of Rights Issue:

Directors/Employees	Number of
share options
before the
Rihgts Issue	Exercise price
per share
before the
Rihgts Issue	Adjusted
number of
share options
after the
Rihgts Issue	Adjusted
exercise price
per share
after the
Rihgts Issue
HK$	HK$
Chen Wei	41,910,000	0.322	62,865,000	0.215
Tang Yui Man Francis	13,970,000	0.322	20,955,000	0.215
Other Participants	37,719,000	0.322	56,578,500	0.215
Total	93,599,000	140,398,500
4. On 7 November 2017, the exercise price of and the number of shares entitled to be subscribed for under the outstanding share options have been adjusted in the following manner following the completion of Share Consolidation:

Directors/Employees	Number of
share options
before the
Share
Consolidation	Exercise
price per
share before
the Share
Consolidation	Adjusted
number of
share options
after the
Share
Consolidation	Adjusted
exercise price
per share
after
Rihgts Issue
HK$	HK$
Other Participants	140,398,500	0.215	28,079,700	1.075

5. During the year, no options were exercised or cancelled but 28,079,700 options were lapsed under the 2002 Share Option Scheme.

As at 31 December 2017 and the date of this report, the Company had no underlying shares comprised in options outstanding under the 2002 Share Option Scheme.

# (B) A new share option scheme was adopted by shareholders of the Company on 17 May 2012 (“Date of Adoption”) (the “2012 Share Option Scheme”), under which the Board may, at its discretion, offer any Eligible Persons (as hereinafter mentioned) options to subscribe for shares in the Company subject to the terms and conditions stipulated therein. The 2012 Share Option Scheme has a life of 10 years from the Date of Adoption.

The 2012 Share Option Scheme is a share incentive scheme and is established to enable the Group to, (i) recognise and acknowledge the contributions that Eligible Persons have (or may have) made or may make to the Group (whether directly or indirectly); (ii) attract and retain and appropriately remunerate the best possible quality of employees and other Eligible Persons; (iii) motivate the Eligible Persons to optimize their performance and efficiency for the benefit of the Group; (iv) enhance its business, employee and other relations; and/or (v) retain maximum flexibility as to the range and nature of rewards and incentives which the Company can offer to Eligible Persons. The Eligible Persons include (a) any full time or part time employees of the Group or any Directors of the Company or any of its subsidiaries; (b) any customer, supplier or provider of services, landlord or tenant, agent, partner, consultant, or adviser of or a contractor to or person doing business with any member of the Group; (c) trustee of any trust the principal beneficiary of which is, or discretionary trust the discretionary objects of which include, any person referred to (a) or (b) above; (d) a company wholly beneficially owned by any person referred to in (a) or (b) above, and (e) such other persons (or classes of persons) as the Board may in its absolute discretion determine.

The exercisable period of share options would be determined by the Board of Directors at its absolute discretion and notified by the Board of Directors to each Eligible Person as being the period during which the share options may be exercised, such period to expire not later than 10 years after the date of grant of the share options. The minimum period for which a share option must be held before it can be exercised would be determined by the Board. The share options granted must be taken up within 28 days from the date of grant.
The following is the text of a report received from the reporting accountants of the Company, Ernst & Young, Certified Public Accountants, Hong Kong, for the purpose of incorporation in this prospectus.

22nd Floor

CITIC Tower

1 Tim Mei Avenue, Central

Hong Kong

12 September 2014

The Directors

ELL Environmental Holdings Limited

Quam Capital Limited

Dear Sirs,

We set out below our report on the financial information of ELL Environmental Holdings Limited (the “Company”) and its subsidiaries (hereinafter collectively referred to as the “Group”) comprising the consolidated statements of comprehensive income, consolidated statements of changes in equity and consolidated statements of cash flows of the Group for each of the years ended 31 December 2011, 2012 and 2013, and the five months ended 31 May 2014 (the “Track Record Period”), and the consolidated statements of financial position of the Group as at 31 December 2011, 2012 and 2013 and 31 May 2014, and the statement of financial position of the Company as at 31 May 2014, together with the notes thereto (the “Financial Information”), and the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows of the Group for the five months ended 31 May 2013 (the “Interim Comparative Information”), prepared on the basis of presentation set out in note 2.1 of Section II below, for inclusion in the prospectus of the Company dated 12 September 2014 (the “Prospectus”) in connection with the listing of the shares of the Company on the Main Board of The Stock Exchange of Hong Kong Limited (the “Stock Exchange”).

The Company was incorporated as an exempted company with limited liability in the Cayman Islands on 25 February 2014. Pursuant to a group reorganisation (the “Reorganisation”) as described in the paragraph headed “Reorganisation” in the section headed “History, Reorganisation and Corporate Structure” to the Prospectus, the Company became the holding company of the subsidiaries comprising the Group. Apart from the Reorganisation, the Company has not commenced any business or operation since its incorporation.

As at the date of this report, no statutory financial statements have been prepared for the Company, as it is not subject to statutory audit requirements under the relevant rules and regulations in itsj urisdiction of incorporation.