Shenzhen China Bicycle Company (Holdings) Limited SEMI-ANNUAL REPORT 2019
August 2019
Section I. Important Notice, Contents and Paraphrase
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 Semi-Annual Report is authentic, accurate and complete.
All directors are attended the Board Meeting for report deliberation.
The Company has no plan of cash bonus, dividends and capitalizing of reserves either.
Content
Section I Important Notice and Paraphrase ............................................................. 2 Section II Company Profile and Main Financial Indexes ....................................... 5 Section III Summary of Company Business ............................................................. 8 Section IV Discussion and Analysis of the Operation .............................................. 9 Section V Important Events ..................................................................................... 16 Section VI Changes in shares and shareholders ..................................................... 23 Section VII Preferred Stock ...................................................................................... 28 Section VIII Particulars about Directors, Supervisors and Senior Executives ... 29 Section IX Corporate -bond ..................................................................................... 30 Section X Financial report ........................................................................................ 31 Section XI Documents available for reference ...................................................... 157
Paraphrase
||||
|-|-|-|
|Items|Refers to|Definition|

Section II. Company Profile and Main Financial Indexes
I. Company Profile
|||||
|-|-|-|-|
|Short form of the stock|Zhonghua – A, Zhonghua -B|Code for share|000017, 200017|
|The abbreviation of the|N/A|||
|changed stock (if applicable)||||
|Stock exchange for listing|Shenzhen Stock Exchange|||
|Name of the Company (in|深圳中华自行车(集团)股份有限公司|||
|Chinese)||||
|Short form of the Company||||
||深中华|||
|(in Chinese) (if applicable)||||
|Foreign name of the Company||||
||Shenzhen China Bicycle Company (Holdings) Limited|||
|(if applicable)||||
|Short form of foreign name of||||
||CBC|||
|the Company (if applicable)||||
|Legal representative|Li Hai|||

II. Contact person and ways
||||
|-|-|-|
||Secretary of the Board|Rep. of securities affairs|
|Name|Sun Longlong|Cui Hongxia, Zhong Xiaojin|
||Room 1201, Wantong Building, No.3002,|Room 1201, Wantong Building, No.3002,|
|Contact adds.|Sungang East Road, Luohu District,|Sungang East Road, Luohu District,|
||Shenzhen|Shenzhen|
|Tel.|0755-25516998,28181666|0755-25516998,28181666|
|Fax.|0755-28181009|0755-28181009|
|E-mail|dmc@szcbc.com|dmc@szcbc.com|

III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or not
□ Applicable√ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period,
found more details in Annual Report 2018.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable√ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation place for semi-annual report have no change in reporting period, found more details in Annual Report 2018.
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□ Yes√ No
|||||
|-|-|-|-|
||||Increase/decrease in this|
||Current period|Same period of last year||
||||report y-o-y|
|Operating revenue (RMB)|38,274,433.02|67,734,899.35|-43.49%|
|Net profit attributable to shareholders of|-798,946.17|554,162.06||
||||-244.17%|
|the listed company (RMB)||||
|Net profit attributable to shareholders of||||
|the listed company after deducting|-910,390.17|521,366.39|-274.62%|
|non-recurring gains and losses (RMB)||||
|Net cash flow arising from operating|-8,901,256.74|-3,362,971.19||
||||164.68%|
|activities (RMB)||||
|Basic earnings per share (RMB/Share)|-0.0014|0.0010|-240.00%|
|Diluted earnings per share (RMB/Share)|-0.0014|0.0010|-240.00%|
|Weighted average ROE|-5.74%|3.43%|-9.17%|
||||Increase/decrease in this|
||End of current period|End of last period|report-end over that of last|
||||period-end|
|Total assets (RMB)|64,830,640.85|73,242,960.17|-11.49%|
|Net assets attributable to shareholder of|13,507,355.77|14,306,301.94||
||||-5.58%|
|listed company (RMB)||||

V. 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
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.
VI. Items and amounts of extraordinary profit (gains)/loss
√Applicable□ Not applicable
In RMB
||||
|-|-|-|
|Item|Amount|Note|
|Other non-operating income and expenditure except for the|148,577.00||
|aforementioned items|||
|Less: impact on income tax|37,144.25||
|Impact on minority shareholders’ equity (post-tax)|-11.25||
|Total|111,444.00|--|

Concerning the extraordinary profit (gain)/loss defined byQ&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 inQ&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 inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
Section III. Summary of Company Business
I. Main businesses of the Company in the reporting period
Does the Company need to comply with the disclosure requirement of the special industry
No
The company is engaged in the main business for the bicycle business and lithium battery material business, including production, assembly, procurement, 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|

2. Main overseas assets
□ Applicable√ Not applicable
III. Core Competitiveness Analysis
Does the Company need to comply with the disclosure requirements of the special industry
No
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 ofChina’s social economy and the change ofpeople’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 theCompany’s ability to continue as a going concern before the restructuring. On the other side, the Company has set out the condition of introduction of investors in the restructuring plan with expectation to restore its ability to continue as a going concern and its continuous profitability through the restructuring of assets.
Furthermore, we strive to planning the privately placement in the period and hope to improve the operation ability and development strength of the Company. The specific works are underway.
Section IV. Discussion and Analysis of the Business
I. Introduction
In 2019, the international political and economic situation was complex and severe, the problem of unbalanced and inadequate domestic development remains a serious one, new downward pressure has emerged in the economy. 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. Implementation of the new national standard, has accelerated theindustry’s reshuffle industry shocks. 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, 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 andInternet+. China has theworld’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 topeople’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 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; on the one hand, 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, taking one step to expanding the business of Lithium battery materials and rich the main business; on the other hand, strive to promote the selection work of the company's restructuring, planned the non-public offering of shares, and started the business upgrades and connection work of the offline sales platform for sports experience and R& D center construction projects.
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 extraordinaryshareholders’ 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 10th session of board of directors and the first extraordinaryshareholders’ meeting of the company in 2018 reviewed and approved the Proposal on Adjusting the Plan for theCompany’s Non-Public Offering of A-Shares, and the Proposal on the Plan for theCompany’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.
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 its main business, strengthening the structural adjustment, intensifying the quality management, strengthening cost control, overcoming the industry shocks and industry punches ofshare-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 in market competition. Through various efforts, the company achieved operating revenue of 38,274,400 Yuan and net profit
of (1,090,500) Yuan in 2019, of which, the net profit attributable to shareholders of listed companies was (798,900) Yuan.
II. Main business analysis
See the “I-Introduction” in “Discussion and Analysis of the Business”
Y-o-y changes of main financial data
In RMB
||||||
|-|-|-|-|-|
||Current period|Same period last year|y-o-y changes (+, -)|Reasons|
||38,274,433.02|67,734,899.35||Decline in corporate|
|Operating revenue|||-43.49%||
|||||business revenue|
||35,329,514.97|61,164,206.33||Decline in corporate|
|Operating costs|||-42.24%||
|||||business cost|
||1,875,723.61|2,755,927.53||Sales expenses drops for|
|Sales expenses|||-31.94%|the decline of business|
|||||income|
|Administration expenses|2,359,383.84|3,309,720.24|-28.71%||
||-60,452.99|-260,975.81||Corporate bank deposit|
|Finance expenses|||-76.84%||
|||||interest income declined|
||-4,152.36|233,133.98||The Company loss in the|
|Income tax expenses|||-101.78%|period by compare with|
|||||same period last year|
|Net cash flow arising|-8,901,256.74|-3,362,971.19||Payment of tax payable|
||||164.68%||
|from operating activities||||at the end of last year|
|Net cash flow arising|-16,814.16||||
|from investment|||||
|activities|||||
|筹资活动产生的现金流|16,600.82||||
|量净额|||||
|Net increase of cash and|-8,901,470.08|-3,362,971.19||Payment of tax payable|
||||164.69%||
|cash equivalent||||at the end of last year|
||8,587,416.18|18,488,886.26||Payment of tax payable|
|Monetary funds|||-53.55%||
|||||at the end of last year|
||5,139,379.30|13,799,753.60||The payment paid in|
|||||advance for lithium|
|||||battery materials|
|Advance payment|||-62.76%||
|||||business last year, has|
|||||been delivery in the|
|||||period successively|
|Other current assets|4,609,858.93|2,266,241.66|103.41%|The input to be deducted|

||||||
|-|-|-|-|-|
|||||in the period increased|
||120,561.17|6,297,096.28||Payment of tax payable|
|Tax payable|||-98.09%||
|||||at the end of last year|

 Major changes on profit composition or profit resources in reporting period
□ Applicable√ Not applicable
No major changes on profit composition or profit resources occurred in reporting period.
Constitution of main business
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||Increase or|Increase or|Increase or|
|||||decrease of|decrease of|decrease of gross|
||Operating||||||
|||Operating cost|Gross profit ratio|operating revenue|operating cost|profit ratio over|
||revenue||||||
|||||over same period|over same period|same period of|
|||||of last year|of last year|last year|
|According to industries|||||||
|Sales of bicycles|||||||
||26,915,238.10|24,727,880.83|8.13%|-38.17%|-36.80%|-1.99%|
|and accessories|||||||
|and fittings|||||||
|Lithium battery|||||||
||11,359,194.92|10,601,634.14|6.67%|-53.06%|-51.89%|-2.27%|
|materials|||||||
|According to products|||||||
|Sales of bicycles|||||||
||26,915,238.10|24,727,880.83|8.13%|-38.17%|-36.80%|-1.99%|
|and accessories|||||||
|and fittings|||||||
|Lithium battery|||||||
||11,359,194.92|10,601,634.14|6.67%|-53.06%|-51.89%|-2.27%|
|materials|||||||
|According to region|||||||
|Domestic|38,274,433.02|35,329,514.97|7.69%|-43.49%|-42.24%|-2.01%|

 III. Analysis of the non-main business
□Applicable√ Not applicable
IV. Assets and liability
1. Major changes of assets composition
In RMB
||||||||
|-|-|-|-|-|-|-|
||||End of same period of last||||
||End of the Period||||||
||||year||Ratio||
|||||||Notes of major changes|
|||Ratio in total||Ratio in total|changes||
||Amount||Amount||||
|||assets||assets|||
|Monetary fund|9,587,416.18|14.79%|15,814,304.99|22.33%|-7.54%||
|Account|35,560,204.56|54.85%|34,951,941.66|49.34%|5.51%||

|||||||
|-|-|-|-|-|-|
|receivable||||||
|Inventory|3,080,384.07|4.75%|4,810,375.32|6.79%|-2.04%|
|Fix assets|3,333,489.56|5.14%|3,756,571.22|5.30%|-0.16%|
|Advance payment|5,139,379.30|7.93%|6,076,785.42|8.58%|-0.65%|

2. Assets and liability measured by fair value
□ Applicable√ Not applicable
3. Assets rights restricted till end of the period
a. Other monetary funds with restriction in use amounted as 2,000,000.00 Yuan at end of the period, refers to the deposit of bank acceptance.
b. Six suites of house properties at 7-20F Lianxin JiaYuan, Luohu District, Shenzhen, 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
2. The major equity investment obtained in the reporting period
□ Applicable√ Not applicable
3. The major non-equity investment doing in the reporting period
□ Applicable√ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable√ Not applicable
The Company had no securities investment in Period.
(2) Derivative investment
□ Applicable√ Not applicable
The Company has no derivatives investment in Period.
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable√ Not applicable
The Company has no sales of major assets in 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 over10%
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Company||Main|Register|||Operating|Operating||
||Type|||Total assets|Net Assets|||Net profit|
|name||business|capital|||revenue|profit||
|Shenzhen|||||||||
|||Sales of|||||||
|Emmelle||||22,003,356.7||13,212,224.3|-975,809.6||
||Subsidiary|bicycles and|2000000||7,942,168.75|||-971,707.26|
|Industry Co.,||||2||4|2||
|||accessories|||||||
|Ltd.|||||||||

Particular about subsidiaries obtained or disposed in report period
□ Applicable√ Not applicable
Notes of holding and shareholding companies
The Company holds 70 percent equity of the Shenzhen Emmelle Industry Co., Ltd., the balance of minority equity at period-end amounting to 2,382,650.62 Yuan.
VIII. Structured vehicle controlled by the Company
□ Applicable√ Not applicable
IX. Prediction of business performance from January– September 2019
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss
probably or the warning of its material change compared with the corresponding period of the last year and
explanation on reason
□ Applicable√ Not applicable
X. Risks and countermeasures
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. The bicycle sharing brands such as Mobike have obtained large amount of financing and rapid promotion, but also further digested the user's demand, and squeezed the market space of traditional bicycle enterprises.
Faced with the above problems, combine actual condition of financially insecure after reorganization, on the one hand, we adhere to traditional business model development, strengthenR&D of the products, and continue to optimize the structure for products and sales mode. According to the electricity supplier transformation and inner lead of the cost controlling, the Company proactively develop the electricity supplier business model; on the one hand, correspondingly carry 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, start getting involved in the lithium battery materials business based on the extensive business consultation and business opportunity sifting, and take it as an opportunity to gradually expand its main business; on the other hand, we strive to promote the selection for recombinant party, planning a private placement of shares, and carry out a sport experience sales platform online and offline and the construction ofR&D center, recently the business upgrade still in process.
深圳中华自行车(集团)股份有限公司2019年半年度报告全文
Section V. Important Events
I. In the report period, the Company held annualshareholders’ general meeting and extraordinaryshareholders’ general meeting
1.Shareholders’ General Meeting in the report period
||||||||
|-|-|-|-|-|-|-|
|Session of meeting|Type||Ratio of investor|Date|Date of disclosure|Index of|
||||participation|||disclosure|
|First Extraordinaryshareholdersgeneral meeting2019|Extraordinaryshareholdersgeneralmeeting|12.09%||2019-02-22|2019-02-22|Notice of|
|||||||Resolution of First|
|||||||Extraordinary|
|||||||shareholders|
|||||||general meeting|
|||||||2019 (No.:|
|||||||2019005)|
|Annual GeneralMeeting 2018|AnnualGeneralMeeting|12.51%||2019-06-27|2019-06-27|Notice of|
|||||||Resolution of|
|||||||Annual General|
|||||||Meeting 2018|
|||||||(No.: 2019013)|

IV. Appointment and non-reappointment (dismissal) of CPA
Financial report has been audited or not
□ Yes√ No
Not been audited.
V. Explanation from Board of Directors, Supervisory Committee for “Qualified Opinion” that issued by CPA
□ Applicable√ Not applicable
VI. Explanation from the Board for “Qualified Opinion” of lastyear’s
√Applicable□ Not applicable
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 Company as the Companycouldn’t pay off the matured debts and was seriously insolvent. On 12th, 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. On the last ten-day of October 2012, Shenzhen Municipal Intermediate People's Court ruled to reform the Company since 25th, 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. 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 IntermediatePeople’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 IntermediatePeople’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 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 Companydoesn’t have the recombination party at the moment. The Company will continue to carry out vary works proactively in order to promoted the reorganization works.
VII. Bankruptcy reorganization
□ Applicable√ Not applicable
No bankruptcy reorganization for the Company in Period.
VIII. Lawsuits
Material lawsuits and arbitration
□ Applicable√ Not applicable
No significant lawsuits and arbitration occurred in the reporting period.
Other lawsuits events
□ Applicable√ Not applicable
IX. Penalty and rectification
□ Applicable√ Not applicable
No penalty and rectification for the Company in Period.
X. Integrity of the Company and its controlling shareholders and actual controllers
□ Applicable√ Not applicable
XI. Implementation of theCompany’s stock incentive plan, employee stock ownership plan or other employee incentives
□ Applicable√ Not applicable
The Company has no equity incentive plan, employee stock ownership plans or other employee incentives in Period.
XII. Major related transaction
1. Related transaction with routine operation concerned
□ Applicable√ Not applicable
The Company had no related transaction with routine operation concerned in Period.
2. Related transactions by assets acquisition and sold
□ Applicable√ Not applicable
No related transactions by assets acquisition and sold for the Company in Period.
3. Main related transactions of mutual investment outside
□ Applicable√ Not applicable
No main related transactions of mutual investment outside for the Company in Period.
深圳中华自行车(集团)股份有限公司2019年半年度报告全文
4. Contact of related credit and debt
√Applicable□ Not applicable
Whether has non-operational contact of related liability and debts or not
√ Yes□ No
Claim receivable from related party:
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Relatedparty||Relationship|Causes|Whether|Balance atperiod-begin (10thousandYuan)|Current|Currentrecovery(10thousandYuan)|Interestrate|Currentinterest(10thousandYuan)|Endingbalance(10thousandYuan)|
|||||has||newly|||||
|||||non-busin||added|||||
|||||ess capital||(10|||||
|||||occupying||thousand|||||
|||||or not||Yuan)|||||
||Influence on business||N/A||||||||
||performance and||||||||||
||financial status of the||||||||||
||Company from related||||||||||
||liabilities||||||||||

Debts payable to related party:
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Relatedparty||Relationship|Causes|Balance atperiod-begin (10thousandYuan)||Current|Currentrecovery(10thousandYuan)|Interest rate|Currentinterest(10thousandYuan)|Endingbalance (10thousandYuan)|
|||||||newly|||||
|||||||added|||||
|||||||(10|||||
|||||||thousand|||||
|||||||Yuan)|||||
||Shenzhen|The largestshareholder|SubsidiaryEmmelleloan|650|0||0|0.00%|0|650|
||Guosheng||||||||||
||Energy||||||||||
||Investment||||||||||
||Developme||||||||||
||nt Co., Ltd.||||||||||
||Influence on business||N/A||||||||
||performance and financial||||||||||
||status of the Company||||||||||
||from related debts||||||||||

XIII. Non-business capital occupying by controlling shareholders and its related parties□ Applicable√ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period.
XIV. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable√ Not applicable
No trusteeship for the Company in Period.
(2) Contract
□ Applicable√ Not applicable
No contract for the Company in Period.
(3) Leasing
□ Applicable√ Not applicable
No leasing for the Company in Period.
2. Major guarantees
□ Applicable√ Not applicable
No guarantee for the Company in Period.
3. Other material contracts
□ Applicable√ Not applicable
No other material contracts for the Company in Period.
XV. Social responsibility
1. Major environmental protection
The listed Company and its subsidiary whether belong to the key sewage units released from environmental protection department Not applicable
Nil
2. Fulfill the precise social responsibility for poverty alleviation
(1) Targeted poverty alleviation
Nil
(2) Summary of semi-annual precision poverty alleviation
Nil
(3) Accuracy of poverty alleviation
||||
|-|-|-|
||Measurement||
|Target||Numbers/progress|
||units||
|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
XVI. Other major events
√Applicable□ Not applicable
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. and on 13 Feb. 2018, the Plan on Non-public Issue of A Shares (Third Amended) was deliberated and approved by First Extraordinary Shareholders General Meeting of 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 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. See details on the announcement issued by the board of directors of the company.
XVII. Major event of the subsidiaries
□ Applicable√ Not applicable
Section VI. Changes in Shares and Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before the Change||Increase/Decrease in the Change (+, -)|||||After the Change||
||||||Capitalizat|||||
||||New|||||||
|||||Bonus|ion of||||Proportio|
||Amount|Proportion|shares|||Others|Subtotal|Amount||
||||issued|shares|public||||n|
||||||reserve|||||
|I. Restricted shares|3,957|0.00%|||||0|3,957|0.00%|
|1. State-owned shares|0|0.00%|||||0|0|0.00%|
|2. State-owned legal||||||||||
||0|0.00%|||||0|0|0.00%|
|person’s shares||||||||||
|3. Other domestic shares|3,957|0.00%|||||0|3,957|0.00%|
|Including: Domestic legal||||||||||
||0|0.00%|||||0|0|0.00%|
|person’s shares||||||||||
|Domestic natural person’s||||||||||
||3,957|0.00%|||||0|3,957|0.00%|
|shares||||||||||
|4. Foreign shares|0|0.00%|||||0|0|0.00%|
|Including: Foreign legal||||||||||
||0|0.00%|||||0|0|0.00%|
|person’s shares||||||||||
|Foreign natural person’s||||||||||
||0|0.00%|||||0|0|0.00%|
|shares||||||||||
||551,343,9|||||||551,343,9||
|II. Unrestricted shares||100.00%|||||0||100.00%|
||90|||||||90||
||302,981,0|||||||302,981,0||
|1. RMB Ordinary shares||54.95%|||||0||54.95%|
||08|||||||08||
|2. Domestically listed|248,362,9|||||||248,362,9||
|||45.05%|||||0||45.05%|
|foreign shares|82|||||||82||
|3. Overseas listed foreign||||||||||
||0|0.00%|||||0|0|0.00%|
|shares||||||||||
|4. Others|0|0.00%|||||0|0|0.00%|
||551,347,9|||||||551,347,9||
|III. Total shares||100.00%|||||0||100.00%|
||47|||||||47||

Reasons for share changed
□ Applicable√ Not applicable
Approval of share changed
□ Applicable√ Not applicable
Ownership transfer of share changes
□ 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 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
□ Applicable√ Not applicable
III. Number of shares and shares held
In Share
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||Total preference shareholders||||||
|Total common shareholders at|||||with voting rights recovered at||||||
|||49,822||||||0|||
|period-end|||||end of reporting period (if||||||
||||||applicable) (note 8)||||||
|Particulars about common shares held above 5% by shareholders or top ten common shareholders|||||||||||
|||||||Amount of|||Number of share||
|||||Number of|Changes||Amount of||||
||||Proportion|||restricted|||pledged/frozen||
||Nature of|||common|in||un-restricted||||
|Shareholders|||of shares|||common|||||
||shareholder|||shares held at|reporting||common||State of||
||||held|||shares||||Amount|
|||||period-end|period||shares held||share||
|||||||held|||||
|Shenzhen|Domestic||11.52%|63,508,747|0|0|63,508,747||-|-|

||||||||||
|-|-|-|-|-|-|-|-|-|
|GuoshengEnergyInvestmentDevelopmentCo., Ltd.|non-State-ownedlegal person||||||||
|UOB Koy Hian(Hong Kong)Co., Ltd.|Foreign legalperson|2.89%|15,907,850|0|0|15,907,850|||
||||||||-|-|
|GuosenSecurities(Hong Kong)brokerage Co.,Ltd.|Foreign legalperson|2.52%|13,909,425|0|0|13,909,425|||
||||||||-|-|
|ShenwanHongyuanSecurities(Hong Kong)Co., Ltd.|Foreign legalperson|1.20%|6,631,116|0|0|6,631,116|||
||||||||-|-|
|Li Huili|Domestic natureperson|0.71%|3,891,124|0|0|3,891,124|||
||||||||-|-|
|CMS HongKong Co., Ltd|State-owned legalperson|0.57%|3,148,752|91,400|0|3,148,752|||
||||||||-|-|
|Xu Hongbo|Domestic natureperson|0.50%|2,744,419|-393,000|0|2,744,419|||
||||||||-|-|
|Ge Zhiqiong|Domestic natureperson|0.49%|2,720,552|523,736|0|2,720,552|||
||||||||-|-|
|Special Accountfor PropertyDisposal ofBankruptEnterprise ofCBC|Domesticnon-State-ownedlegal person|0.47%|2,602,402|0|0|2,602,402|||
||||||||-|-|
|ZhuorunTechnologyCo., Ltd.|Foreign legalperson|0.36%|2,000,000|0|0|2,000,000|||
||||||||-|-|
|Strategy investors or general|||||||||
|corporation comes top 10 common|||||||||
|||N/A|||||||
|stock shareholders due to rights|||||||||
|issue (if applicable) (see note 3)|||||||||
|Explanation on associated||Li Huili, spouse of the Ji Hanfei, the actual controller of the Company- Shenzhen Guosheng|||||||
|relationship among the aforesaid||Energy Investment Development Co., Ltd., holding B-share of the Company on behalf of|||||||

|||||
|-|-|-|-|
|shareholders|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 common shareholders with un-restrict shares held||||
||Amount of un-restrict common shares held at|Type of shares||
|Shareholders||||
||period-end|Type|Amount|
|Shenzhen Guosheng EnergyInvestment Development Co., Ltd.|63,508,747|RMB common||
||||63,508,747|
|||shares||
|UOB Koy Hian (Hong Kong) Co.,Ltd.|15,907,850|Domestically||
|||listed foreign|15,907,850|
|||shares||
|Guosen Securities (Hong Kong)brokerage Co., Ltd.|13,909,425|Domestically||
|||listed foreign|13,909,425|
|||shares||
|Shenwan Hongyuan Securities(Hong Kong) Co., Ltd.|6,631,116|Domestically||
|||listed foreign|6,631,116|
|||shares||
|Li Huili|3,891,124|Domestically||
|||listed foreign|3,891,124|
|||shares||
|CMS Hong Kong Co., Ltd|3,148,752|Domestically||
|||listed foreign|3,148,752|
|||shares||
|Xu Hongbo|2,744,419|Domestically||
|||listed foreign|2,744,419|
|||shares||
|Ge Zhiqiong|2,720,552|RMB common||
||||233,900|
|||shares||
|||Domestically||
|||listed foreign|2,486,652|
|||shares||
|Special Account for PropertyDisposal of Bankrupt Enterprise ofCBC|2,602,402|RMB common||
||||1,383,313|
|||shares||
|||Domestically||
|||listed foreign|1,219,089|
|||shares||
|Zhuorun Technology Co., Ltd.|2,000,000|RMB common||
||||2,000,000|
|||shares||
|Expiation on associated relationship|Li Huili, spouse of the Ji Hanfei, the actual controller of he Company- Shenzhen Guosheng|||

|||
|-|-|
|or consistent actors within the top|Energy Investment Development Co., Ltd., holding B-share of the Company on behalf of|
|10 un-restrict shareholders and|Shenzhen Guosheng Energy Investment Development Co., Ltd., beyond that, the Company|
|between top 10 un-restrict|has no idea of whether other circulated shareholders belong to concerted action persons ruled|
|shareholders and top 10|in the Administration Norms for Information Disclosure of Change on Shareholding of|
|shareholders|Shareholders of Listed Companies.|
|Explanation on top 10 shareholders||
|involving margin business (if|N/A|
|applicable) (see note 4)||

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period
□Yes√No
Top ten common shareholders or top ten common shareholders with un-restrict shares not held have a buy-back agreement dealing in reporting period
IV. Changes of controlling shareholders or actual controller
Changes of controlling shareholders in reporting period
□ Applicable√ Not applicable
Changes of controlling shareholders had no change in reporting period.
Changes of actual controller in reporting period
□ Applicable√ Not applicable
Changes of actual controller in reporting period had no change in reporting period.
Section VII. Preferred Stock
□ Applicable√ Not applicable
The Company had no preferred stock in the reporting.
Section VIII. Directors, Supervisors and Senior Executives
I. Changes of shares held by directors, supervisors and senior executives
□Applicable√ Not applicable
Found more in annual report 2018 for the changes of shares held by directors, supervisors and senior executives
II. Resignation and dismissal of directors, supervisors and senior executives
□Applicable√ Not applicable
No changes of directors, supervisors and senior executives, found more details in Annual Report 2018.
Section IX. Corporate Bonds
Whether the Company has corporate bonds that issuance publicly and listed on stock exchange and without due on the date when semi-annual report approved for released or fail to cash in full on due
No
Section X. Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes√ No
The financial report of this semi-annual report was unaudited.
II. Financial statements
Units in Notes of Financial Statements is RMB
1. Consolidated Balance Sheet
Prepared by Shenzhen China Bicycle Company (Holdings) Limited
2019-06-30
In RMB
||||
|-|-|-|
|Item|2019-6-30|2018-12-31|
|Current assets:|||
|Monetary funds|9,587,416.18|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|180,000.00||
|Account receivable|35,560,204.56|29,007,509.02|
|Receivable financing|||
|Accounts paid in advance|5,139,379.30|13,799,753.60|
|Insurance receivable|||
|Reinsurance receivables|||
|Contract reserve of reinsurance|||
|receivable|||
|Other account receivable|765,634.71|844,537.19|

||||
|-|-|-|
|Including: Interest receivable|||
|Dividend receivable|||
|Buying back the sale of financial|||
|assets|||
|Inventories|3,080,384.07|2,386,603.94|
|Contractual assets|||
|Assets held for sale|||
|Non-current asset due within one|||
|year|||
|Other current assets|4,609,858.93|2,266,241.66|
|Total current assets|58,922,877.75|66,793,531.67|
|Non-current assets:|||
|Loans and payments on behalf|||
|Debt investment|||
|Finance asset available for sales|||
|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|3,333,489.56|3,502,807.32|
|Construction in progress|||
|Productive biological asset|||
|Oil and gas asset|||
|Right-of-use assets|||
|Intangible assets|1,129,500.00|1,506,000.00|
|Expense on Research and|||
|Development|||
|Goodwill|||
|Long-term expenses to be|||
|apportioned|||
|Deferred income tax asset|1,044,773.54|1,040,621.18|

||||
|-|-|-|
|Other non-current asset|400,000.00|400,000.00|
|Total non-current asset|5,907,763.10|6,449,428.50|
|Total assets|64,830,640.85|73,242,960.17|
|Current liabilities:|||
|Short-term loans|||
|Loan from central bank|||
|Capital borrowed|||
|Transactional 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|2,000,000.00|
|Account payable|7,076,229.24|9,979,010.69|
|Accounts received in advance|1,620,392.20|405,779.88|
|Selling financial asset of|||
|repurchase|||
|Absorbing deposit and interbank|||
|deposit|||
|Security trading of agency|||
|Security sales of agency|||
|Wage payable|539,521.95|435,736.16|
|Taxes payable|120,561.17|6,297,096.28|
|Other account payable|37,583,929.90|37,144,872.42|
|Including: Interest payable|||
|Dividend payable|||
|Commission charge and|||
|commission payable|||
|Reinsurance payable|||
|Contractual liability|||
|Liability held for sale|||
|Non-current liabilities due within|||
|one year|||
|Other current liabilities|||
|Total current liabilities|48,940,634.46|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|||
|Total liabilities|48,940,634.46|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|-1,198,348,116.09|-1,197,549,169.92|
|Total owner’ s equity attributable to|||
||13,507,355.77|14,306,301.94|
|parent company|||
|Minority interests|2,382,650.62|2,674,162.80|
|Total owner’ s equity|15,890,006.39|16,980,464.74|
|Total liabilities and owner’ s equity|64,830,640.85|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|2019-6-30|2018-12-31|
|Current assets:|||
|Monetary funds|4,164,849.07|8,889,572.73|
|Transactional financial assets|||
|Financial assets measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial assets|||
|Note receivable|180,000.00||
|Account receivable|25,962,772.24|12,827,954.16|
|Receivable financing|||
|Accounts paid in advance|5,138,078.18|13,798,452.48|
|Other account receivable|380,925.78|380,925.78|
|Including: Interest receivable|||
|Dividend receivable|||
|Inventories|871,653.54||
|Contractual assets|||
|Assets held for sale|||
|Non-current assets maturing within|||
|one year|||
|Other current assets|4,080,909.10|2,130,677.11|
|Total current assets|40,779,187.91|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|10,379.73|10,379.73|

||||
|-|-|-|
|Investment in other equity|||
|instrument|||
|Other non-current financial assets|||
|Investment real estate|||
|Fixed assets|2,891,083.46|2,995,407.48|
|Construction in progress|||
|Productive biological assets|||
|Oil and natural gas assets|||
|Right-of-use assets|||
|Intangible assets|1,129,500.00|1,506,000.00|
|Research and development costs|||
|Goodwill|||
|Long-term deferred expenses|||
|Deferred income tax assets|||
|Other non-current assets|400,000.00|400,000.00|
|Total non-current assets|4,430,963.19|4,911,787.21|
|Total assets|45,210,151.10|42,939,369.47|
|Current liabilities|||
|Short-term borrowings|||
|Transactional financial liability|||
|Financial liability measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
|Notes payable|||
|Account payable|5,722,478.65||
|Accounts received in advance|2,016,142.00|327,632.18|
|Contractual liability|||
|Wage payable|394,245.36|151,598.60|
|Taxes payable|120,548.17|5,416,117.27|
|Other accounts payable|28,998,519.55|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|37,251,933.73|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|||
|Deferred income|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|||
|Total liabilities|37,251,933.73|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|-1,203,897,254.49|-1,203,778,503.40|
|Total owner’s equity|7,958,217.37|8,076,968.46|
|Total liabilities and owner’s equity|45,210,151.10|42,939,369.47|

3. Consolidated Profit Statement
In RMB
||||
|-|-|-|
|Item|Semi-annual of 2019|Semi-annual of 2018|
|I. Total operating income|38,274,433.02|67,734,899.35|
|Including: Operating income|38,274,433.02|67,734,899.35|
|Interest income|||
|Insurance gained|||
|Commission charge and|||
|commission income|||
|II. Total operating cost|39,540,757.20|67,044,616.04|
|Including: Operating cost|35,329,514.97|61,164,206.33|
|Interest expense|||
|Commission charge and|||
|commission expense|||
|Cash surrender value|||
|Net amount of expense of|||
|compensation|||
|Net amount of withdrawal of|||
|insurance contract reserve|||
|Bonus expense of guarantee slip|||
|Reinsurance expense|||
|Tax and extras|36,587.77|75,737.75|
|Sales expense|1,875,723.61|2,755,927.53|
|Administrative expense|2,359,383.84|3,309,720.24|
|R&D expense|||
|Financial expense|-60,452.99|-260,975.81|
|Including: Interest|||
|expenses|||
|Interest income|-71,134.40|-272,685.93|
|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|||
||-17,479.82|-7,219.20|
|(Loss is listed with “-”)|||
|Losses of devaluation of asset|||
||40,616.29||
|(Loss is listed with “-”)|||
|Income from assets disposal|||
|(Loss is listed with “-”)|||
|III. Operating profit (Loss is listed with|||
||-1,243,187.71|683,064.11|
|“-”)|||
|Add: Non-operating income|148,627.00|72,126.28|
|Less: Non-operating expense|50.00|30,140.00|
|IV. Total profit (Loss is listed with “-”)|-1,094,610.71|725,050.39|
|Less: Income tax expense|-4,152.36|233,133.98|
|V. Net profit (Net loss is listed with “-”)|-1,090,458.35|491,916.41|
|(i) Classify by business continuity|||
|1.continuous operating net profit|||
||-1,090,458.35|491,916.41|
|(net loss listed with ‘-”)|||
|2.termination of net profit (net loss|||
|listed with ‘-”)|||
|(ii) Classify by ownership|||
|1.Net profit attributable to owner’s|||
||-798,946.17|554,162.06|
|of parent company|||
|2.Minority shareholders’ gains and|||
||-291,512.18|-62,245.65|
|losses|||
|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|||
|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|-1,090,458.35|491,916.41|

||||
|-|-|-|
|Total comprehensive income|-798,946.17||
|||554,162.06|
|attributable to owners of parent Company|||
|Total comprehensive income|-291,512.18||
|||-62,245.65|
|attributable to minority shareholders|||
|VIII. Earnings per share:|||
|(i) Basic earnings per share|-0.0014|0.0010|
|(ii) Diluted earnings per share|-0.0014|0.0010|

 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
4. Profit Statement of Parent Company
In RMB
||||
|-|-|-|
|Item|Semi-annual of 2019|Semi-annual of 2018|
|I. Operating income|25,404,378.84|24,023,518.68|
|Less: Operating cost|23,670,022.62|20,846,218.08|
|Taxes and surcharge|14,194.90|13,741.20|
|Sales expenses|240,105.59|276,827.75|
|Administration expenses|1,721,493.88|2,107,312.50|
|R&D expenses|||
|Financial expenses|-13,583.08|-83,003.31|
|Including: interest|||
|expenses|||
|Interest income|-18,497.84|-87,908.66|
|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|||
||-39,523.02||
|(Loss is listed with “-”)|||
|Losses of devaluation of asset|||
|||2,008.04|
|(Loss is listed with “-”)|||
|Income on disposal of assets|||
|(Loss is listed with “-”)|||
|II. Operating profit (Loss is listed with|||
||-267,378.09|864,430.50|
|“-”)|||
|Add: Non-operating income|148,627.00|68,105.41|
|Less: Non-operating expense|||
|III. Total Profit (Loss is listed with “-”)|-118,751.09|932,535.91|
|Less: Income tax||233,133.98|
|IV. Net profit (Net loss is listed with|||
||-118,751.09|699,401.93|
|“-”)|||
|(i)continuous operating net profit|||
||-118,751.09|699,401.93|
|(net loss listed with ‘-”)|||
|(ii) termination of net profit (net|||
|loss listed with ‘-”)|||
|V. Net after-tax of other comprehensive|||
|income|||
|(I) Other comprehensive income|||
|items which will not be reclassified|||
|subsequently to profit of loss|||
|1.Changes of the defined|||
|benefit plans that re-measured|||
|2.Other comprehensive|||
|income under equity method that cannot|||
|be transfer to gain/loss|||
|3.Change of fair value of|||
|investment in other equity instrument|||
|4.Fair value change of|||
|enterprise's credit risk|||
|5. Other|||
|(II) Other comprehensive income|||
|items which will be reclassified|||

||||
|-|-|-|
|subsequently to profit or loss|||
|1.Other comprehensive|||
|income under equity method that can|||
|transfer to gain/loss|||
|2.Change of fair value of|||
|other debt investment|||
|3.gain/loss of fair value|||
|changes for available-for-sale financial|||
|assets|||
|4.Amount of financial|||
|assets re-classify to other|||
|comprehensive income|||
|5.Gain/loss of|||
|held-to-maturity investments that|||
|re-classify to available-for-sale financial|||
|asset|||
|6.Credit impairment|||
|provision for other debt investment|||
|7.Cash flow hedging|||
|reserve|||
|8.Translation differences|||
|arising on translation of foreign|||
|currency financial statements|||
|9.Other|||
|VI. Total comprehensive income|-118,751.09|699,401.93|
|VII. Earnings per share:|||
|(i) Basic earnings per share|-0.0002|0.0013|
|(ii) Diluted earnings per share|-0.0002|0.0013|

 5. Consolidated Cash Flow Statement
In RMB
||||
|-|-|-|
|Item|Semi-annual of 2019|Semi-annual of 2018|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|||
|commodities and providing labor|8,643,245.76|15,792,549.13|
|services|||
|Net increase of customer deposit|||

||||
|-|-|-|
|and interbank deposit|||
|Net increase of loan from central|||
|bank|||
|Net increase of capital borrowed|||
|from other financial institution|||
|Cash received from original|||
|insurance contract fee|||
|Net cash received from reinsurance|||
|business|||
|Net increase of insured savings|||
|and investment|||
|Cash received from interest,|||
|commission charge and commission|||
|Net increase of capital borrowed|||
|Net increase of returned business|||
|capital|||
|Net cash received by agents in sale|||
|and purchase of securities|||
|Write-back of tax received|57,448.96|5,306.26|
|Other cash received concerning|||
||3,906,596.03|2,529,012.36|
|operating activities|||
|Subtotal of cash inflow arising from|||
||12,607,290.75|18,326,867.75|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|7,104,453.81|12,448,466.83|
|service|||
|Net increase of customer loans and|||
|advances|||
|Net increase of deposits in central|||
|bank and interbank|||
|Cash paid for original insurance|||
|contract compensation|||
|Net increase of financial assets|||
|held for transaction purposes|||
|Net increase of capital lent|||
|Cash paid for interest, commission|||
|charge and commission|||
|Cash paid for bonus of guarantee|||

||||
|-|-|-|
|slip|||
|Cash paid to/for staff and workers|3,076,592.48|3,190,388.60|
|Taxes paid|5,517,601.44|1,336,400.97|
|Other cash paid concerning|||
||5,809,899.76|4,714,582.54|
|operating activities|||
|Subtotal of cash outflow arising from|||
||21,508,547.49|21,689,838.94|
|operating activities|||
|Net cash flows arising from operating|||
||-8,901,256.74|-3,362,971.19|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
|investment|||
|Cash received from investment|||
|income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term|||
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
|investing activities|||
|Subtotal of cash inflow from investing|||
|activities|||
|Cash paid for purchasing fixed,|||
||16,814.16||
|intangible and other long-term assets|||
|Cash paid for investment|||
|Net increase of mortgaged loans|||
|Net cash received from|||
|subsidiaries and other units obtained|||
|Other cash paid concerning|||
|investing activities|||
|Subtotal of cash outflow from investing|||
||16,814.16||
|activities|||
|Net cash flows arising from investing|||
||-16,814.16||
|activities|||
|III. Cash flows arising from financing|||
|activities|||

||||
|-|-|-|
|Cash received from absorbing|||
|investment|||
|Including: Cash received from|||
|absorbing minority shareholders’|||
|investment by subsidiaries|||
|Cash received from loans|||
|Cash received from issuing bonds|||
|Other cash received concerning|||
||2,016,600.82||
|financing activities|||
|Subtotal of cash inflow from financing|||
||2,016,600.82||
|activities|||
|Cash paid for settling debts|||
|Cash paid for dividend and profit|||
|distributing or interest paying|||
|Including: Dividend and profit of|||
|minority shareholder paid by|||
|subsidiaries|||
|Other cash paid concerning|||
||2,000,000.00||
|financing activities|||
|Subtotal of cash outflow from financing|||
||2,000,000.00||
|activities|||
|Net cash flows arising from financing|||
||16,600.82||
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|||
|exchange rate|||
|V. Net increase of cash and cash|||
||-8,901,470.08|-3,362,971.19|
|equivalents|||
|Add: Balance of cash and cash|||
||16,488,886.26|19,177,276.18|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||7,587,416.18|15,814,304.99|
|equivalents at the period -end|||

6. Cash Flow Statement of Parent Company
In RMB
||||
|-|-|-|
|Item|Semi-annual of 2019|Semi-annual of 2018|
|I. Cash flows arising from operating|||
|activities:|||

||||
|-|-|-|
|Cash received from selling|||
|commodities and providing labor|2,949,631.00|6,974.00|
|services|||
|Write-back of tax received|57,448.96|5,306.26|
|Other cash received concerning|||
||4,242,368.68|1,963,467.24|
|operating activities|||
|Subtotal of cash inflow arising from|||
||7,249,448.64|1,975,747.50|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|721,217.50|17,278.04|
|service|||
|Cash paid to/for staff and workers|1,498,002.56|1,237,282.20|
|Taxes paid|5,319,908.09|733,058.03|
|Other cash paid concerning|||
||4,418,229.99|4,794,142.84|
|operating activities|||
|Subtotal of cash outflow arising from|||
||11,957,358.14|6,781,761.11|
|operating activities|||
|Net cash flows arising from operating|||
||-4,707,909.50|-4,806,013.61|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
|investment|||
|Cash received from investment|||
|income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term|||
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
|investing activities|||
|Subtotal of cash inflow from investing|||
|activities|||
|Cash paid for purchasing fixed,|||
||16,814.16||
|intangible and other long-term assets|||
|Cash paid for investment|||
|Net cash received from|||

||||
|-|-|-|
|subsidiaries and other units obtained|||
|Other cash paid concerning|||
|investing activities|||
|Subtotal of cash outflow from investing|||
||16,814.16||
|activities|||
|Net cash flows arising from investing|||
||-16,814.16||
|activities|||
|III. Cash flows arising from financing|||
|activities|||
|Cash received from absorbing|||
|investment|||
|Cash received from loans|||
|Cash received from issuing bonds|||
|Other cash received concerning|||
|financing activities|||
|Subtotal of cash inflow from financing|||
|activities|||
|Cash paid for settling debts|||
|Cash paid for dividend and profit|||
|distributing or interest paying|||
|Other cash paid concerning|||
|financing activities|||
|Subtotal of cash outflow from financing|||
|activities|||
|Net cash flows arising from financing|||
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|||
|exchange rate|||
|V. Net increase of cash and cash|||
||-4,724,723.66|-4,806,013.61|
|equivalents|||
|Add: Balance of cash and cash|||
||8,889,572.73|15,398,405.80|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||4,164,849.07|10,592,392.19|
|equivalents at the period -end|||

7. Statement of Changes inOwners’ Equity (Consolidated)
This Period
In RMB
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Semi-annual of 2019|||||||||||||||
||Owners’ equity attributable to parent company|||||||||||||||
|||Other||||||||||||||
|||equity instrument|||||Other|||||||Minori|Total|
|Item|||Perpe|||Less:|compr|||Provisi||||ty|owners|
||Share|||||||Reaso|Surplu||Retain|||||
||||tual||Capital|Invent|ehensi|||on of|||Subtot|interes|’|
||capita|Prefe||||||nable|s||ed|Other||||
||||capit||reserve|ory|ve|||genera|||al|ts|equity|
||l|rred||Other||||reserve|reserve||profit|||||
|||stock|al|||shares|incom|||l risk||||||
||||secur||||e|||||||||
||||ities|||||||||||||
||551,3||||627,83||||32,673||-1,197,||14,306||16,980|
|I. Balance at the||||||||||||||2,674,||
|end of the last|47,94||||4,297.||||,227.0||549,16||,301.9||,464.7|
|||||||||||||||162.80||
|year|7.00||||85||||1||9.92||4||4|
|Add:||||||||||||||||
|Changes of||||||||||||||||
|accounting||||||||||||||||
|policy||||||||||||||||
|Error||||||||||||||||
|correction of the||||||||||||||||
|last period||||||||||||||||
|Enterprise||||||||||||||||
|combine under||||||||||||||||
|the same||||||||||||||||
|control||||||||||||||||
|Other||||||||||||||||
||551,3||||627,83||||32,673||-1,197,||14,306||16,980|
|II. Balance at||||||||||||||2,674,||
|the beginning of|47,94||||4,297.||||,227.0||549,16||,301.9||,464.7|
|||||||||||||||162.80||
|this year|7.00||||85||||1||9.92||4||4|
|III. Increase/||||||||||||||||
|Decrease in this|||||||||||-798,9||-798,9|-291,5|-1,090,|
|year (Decrease||||||||||||||||
||||||||||||46.17||46.17|12.18|458.35|
|is listed with||||||||||||||||
|“-”)||||||||||||||||
|(i) Total|||||||||||-798,9||-798,9|-291,5|-1,090,|
|comprehensive||||||||||||||||
||||||||||||46.17||46.17|12.18|458.35|
|income||||||||||||||||
|(ii) Owners’||||||||||||||||
|devoted and||||||||||||||||
|decreased||||||||||||||||
|capital||||||||||||||||
|1.Common||||||||||||||||
|shares invested||||||||||||||||
|by shareholders||||||||||||||||
|2. Capital||||||||||||||||
|invested by||||||||||||||||
|holders of other||||||||||||||||
|equity||||||||||||||||

||
|-|
|instruments|
|3. Amount|
|reckoned into|
|owners equity|
|with|
|share-based|
|payment|
|4. Other|
|(III) Profit|
|distribution|
|1. Withdrawal|
|of surplus|
|reserves|
|2. Withdrawal|
|of general risk|
|provisions|
|3. Distribution|
|for owners (or|
|shareholders)|
|4. Other|
|(IV) Carrying|
|forward internal|
|owners’ equity|
|1. Capital|
|reserves|
|conversed to|
|capital (share|
|capital)|
|2. Surplus|
|reserves|
|conversed to|
|capital (share|
|capital)|
|3. Remedying|
|loss with|
|surplus reserve|
|4．Carry-over|
|retained|
|earnings from|
|the defined|
|benefit plans|
|5．Carry-over|
|retained|
|earnings from|
|other|
|comprehensive|
|income|
|6. Other|
|(V) Reasonable|
|reserve|
|1. Withdrawal|

||||||||||
|-|-|-|-|-|-|-|-|-|
|in the report|||||||||
|period|||||||||
|2. Usage in the|||||||||
|report period|||||||||
|(VI)Others|||||||||
||551,3|627,83|32,673|-1,198|,|13,507||15,890,,006.39|
|IV. Balance at|||||||2,382||
|the end of the|47,94|4,297.|,227.0|348,11||,355.7|||
||||||||650.62||
|report period|7.00|85|1|6.09||7|||

 Last Period
In RMB
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Semi-annual of 2018|||||||||||||||
||Owners’ equity attributable to parent company|||||||||||||||
|||Other||||||||||Other||||
|||equity instrument|||||Other|||||||Minorit||
|Item|||Perp|||Less:|compr|||Provisi||||y|Total|
||Share|||||||Reaso|Surplu||Retain||||owners’|
||||etual||Capital|Invent|ehensi|||on of|||Subtot|interest||
||capita|Prefe||||||nable|s||ed||||equity|
||||capit||reserve|ory|ve|||genera|||al|s||
||l|rredstock|al|Other||shares|incom|reserve|reserve|l risk|profit|||||
||||secur||||e|||||||||
||||ities|||||||||||||
||551,3||||627,83||||32,673||-1,195,||15,898|||
|I. Balance at||||||||||||||2,962,6|18,860,|
|the end of the|47,94||||4,297.||||,227.0||957,20||,270.8|||
|||||||||||||||99.67|970.52|
|last year|7.00||||85||||1||1.01||5|||
|Add:||||||||||||||||
|Changes of||||||||||||||||
|accounting||||||||||||||||
|policy||||||||||||||||
|Error||||||||||||||||
|correction of||||||||||||||||
|the last period||||||||||||||||
|Enterprise||||||||||||||||
|combine||||||||||||||||
|under the||||||||||||||||
|same control||||||||||||||||
|Other||||||||||||||||
||551,3||||627,83||||32,673||-1,195,||15,898|||
|II. Balance at||||||||||||||2,962,6|18,860,|
|the beginning|47,94||||4,297.||||,227.0||957,20||,270.8|||
|||||||||||||||99.67|970.52|
|of this year|7.00||||85||||1||1.01||5|||
|III. Increase/||||||||||||||||
|Decrease in this|||||||||||554,16||554,16|-62,245|491,916|
|year (Decrease||||||||||||||||
||||||||||||2.06||2.06|.65|.41|
|is listed with||||||||||||||||
|“-”)||||||||||||||||
|(i) Total||||||||||||||||
||||||||||||554,16||554,16|-62,245|491,916|
|comprehensive||||||||||||||||

||||||
|-|-|-|-|-|
|income|2.06|2.06|.65|.41|
|(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|||||
|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|||||

|||||||||
|-|-|-|-|-|-|-|-|
|earningsfrom thedefinedbenefit plans||||||||
|5．Carry-overretained||||||||
|earnings fromother||||||||
|comprehensiveincome||||||||
|6. Other||||||||
|(V) Reasonablereserve||||||||
|1. Withdrawal||||||||
|in the report||||||||
|period||||||||
|2. Usage in thereport period||||||||
|(VI)Others||||||||
|IV. Balance at|551,3|627,83|32,673|-1,195,|16,452|||
|||||||2,900,4|19,352,|
|the end of the|47,94|4,297.|,227.0|403,03|,432.9|||
|||||||54.02|886.93|
|report period|7.00|85|1|8.95|1|||

8. Statement of Changes inOwners’ Equity (Parent Company)
This Period
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Semi-annual of 2019||||||||||||
|||Other equity instrument|||Capitalpublicreserve||||Surplusreserve||||
||||Perpet||||Other||||||
|||||||Less:||Reasona||||Total|
|Item|Share|Preferr|ual||||compreh|||Retaine|||
|||||||Inventor||ble|||Other|owners’|
||capital|ed|capital|Other|||ensive|||d profit|||
|||||||y shares||reserve||||equity|
|||stock|securiti||||income||||||
||||es||||||||||
||551,34||||627,834,297.85||||32,673,227.01|-1,203,|||
|I. Balance at the||||||||||||8,076,968.|
|end of the last|7,947.0|||||||||778,50|||
|||||||||||||46|
|year|0|||||||||3.40|||
|Add:|||||||||||||
|Changes of|||||||||||||
|accounting|||||||||||||
|policy|||||||||||||
|Error|||||||||||||
|correction of the|||||||||||||
|last period|||||||||||||
|Other|||||||||||||
|II. Balance at the|551,34||||||||||||
||||||627,834,||||32,673,2|-1,203,||8,076,968.|
|beginning of this|||||||||||||

|||||||
|-|-|-|-|-|-|
|year|7,947.0|297.85|27.01|778,50|46|
||0|||3.40||
|III. Increase/||||||
|||||-118,75|-118,751.0|
|Decrease in this||||||
|year (Decrease is||||1.09|9|
|listed with “-”)||||||
|(i) Total||||-118,75|-118,751.0|
|comprehensive||||||
|||||1.09|9|
|income||||||
|(ii) Owners’||||||
|devoted and||||||
|decreased capital||||||
|1.Common||||||
|shares invested||||||
|by shareholders||||||
|2. Capital||||||
|invested by||||||
|holders of other||||||
|equity||||||
|instruments||||||
|3. Amount||||||
|reckoned into||||||
|owners equity||||||
|with share-based||||||
|payment||||||
|4. Other||||||
|(III) Profit||||||
|distribution||||||
|1. Withdrawal of||||||
|surplus reserves||||||
|2. Distribution||||||
|for owners (or||||||
|shareholders)||||||
|3. Other||||||
|(IV) Carrying||||||
|forward internal||||||
|owners’ equity||||||
|1. Capital||||||
|reserves||||||
|conversed to||||||
|capital (share||||||
|capital)||||||
|2. Surplus||||||
|reserves||||||
|conversed to||||||
|capital (share||||||
|capital)||||||
|3. Remedying||||||
|loss with surplus||||||
|reserve||||||

|||||||
|-|-|-|-|-|-|
|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||||||
||551,34|||-1,203,|7,958,217.37|
|IV. Balance at||627,834,|32,673,2|||
|the end of the|7,947.0|||897,25||
|||297.85|27.01|||
|report period|0|||4.49||

Last period
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Semi-annual of 2018||||||||||||
||Sharecapital|Other equity|||||||||||
|||instrument|||||||||||
||||||||Other||||||
||||Perpet||Capital|Less:||||||Total|
|Item|||||||compre|Reasonab|Surplus|Retained|||
|||Preferr|ual||public|Inventor|||||Other|owners’|
||||||||hensive|le reserve|reserve|profit|||
|||ed|capital|Other|reserve|y shares||||||equity|
||||||||income||||||
|||stock|securit||||||||||
||||ies||||||||||
|I. Balance at the|551,34||||||||||||
||||||627,834||||32,673,|-1,202,85||8,995,684.6|
|end of the last|7,947.||||||||||||
||||||,297.85||||227.01|9,787.18||8|
|year|00||||||||||||
|Add:Changes ofaccountingpolicy|||||||||||||
|Errorcorrection ofthe last period|||||||||||||
|Other|||||||||||||
|II. Balance at|551,34||||||||||||
||||||627,834||||32,673,|-1,202,85||8,995,684.6|
|the beginning|7,947.||||||||||||
||||||,297.85||||227.01|9,787.18||8|
|of this year|00||||||||||||
|III. Increase/Decrease in this||||||||||699,401.9|||
|||||||||||||699,401.93|
|||||||||||3|||

||||
|-|-|-|
|year (Decrease|||
|is listed with|||
|“-”)|||
|(i) Total|699,401.9||
|||699,401.93|
|comprehensive|||
||3||
|income|||
|(ii) Owners’|||
|devoted and|||
|decreased|||
|capital|||
|1.Common|||
|shares invested|||
|by shareholders|||
|2. Capital|||
|invested by|||
|holders of other|||
|equity|||
|instruments|||
|3. Amount|||
|reckoned into|||
|owners equity|||
|with|||
|share-based|||
|payment|||
|4. Other|||
|(III) Profit|||
|distribution|||
|1. Withdrawal|||
|of surplus|||
|reserves|||
|2. Distribution|||
|for owners (or|||
|shareholders)|||
|3. Other|||
|(IV) Carrying|||
|forward internal|||
|owners’ equity|||
|1. Capital|||
|reserves|||
|conversed to|||
|capital (share|||
|capital)|||
|2. Surplus|||
|reserves|||
|conversed to|||
|capital (share|||
|capital)|||
|3. Remedying|||
|loss with|||
|surplus reserve|||
|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||||||
||551,34|||||
|IV. Balance at||627,834|32,673,|-1,202,16|9,695,086.6|
|the end of the|7,947.|||||
|||,297.85|227.01|0,385.25|1|
|report period|00|||||

III. Company Profile
1. History and basic information
According to the Approval Document SFBF (1991) No. 888 issued by thePeople’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 thePeople’s Bank of China, the Company got listed on Shenzhen Stock Exchange. Registered capital of the Company amounted as 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 business activities: Research& development and production of bicycles, electric bicycles, electric
motorcycles, motorcycles, electric tricycles, electric four-wheelers, children's bicycles, exercise bikes, sports
equipment, mechanical products, toys, electric toys, electronic products, new energy equipment and storage equipment (lithium batteries, batteries, etc.), household appliances and spare parts, and electronic components; wholesale, retail, import and export and related supporting business of above-mentioned products (excluding commodities subject to state trade management, handling the application according to the relevant national regulations for commodities involving quotas, license management and other special provisions and management,); fine chemical products (excluding dangerous goods), wholesale and retail of carbon fiber composite materials; technology development of computer software, transfer of self-developed technological achievements, and providing relevant technical information consultation; own property leasing; property management. (The above projects do not involve special administrative measures for the implementation access of national regulations, and those involving restricted projects and pre-existing administrative licenses must obtain the pre-existing administrative licensing documents before operation.)
3. Release of the financial report
The Financial Report released on 28 August 2019 after approved by 15th session of 10th BOD of the Company One subsidiary included in consolidate scope in the period, found more in Note VIII-1 and Note IX-1
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 Company as the Companycouldn’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 IntermediatePeople’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 IntermediatePeople’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 Companydoesn’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)
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 theacquiree’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 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 thesubsidiary’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 formersubsidiary’s equity investment should be transferred to investment income for the current period when control is lost
③Accounting 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
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 formersubsidiary’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 andowners’ 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.
(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 EnterprisesNo.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
The asset and liability items in the balance sheet shall be converted at the spot exchange rate on the balance sheet date; theowner’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
Financial instrument including the financial assets, financial liability and equity instrument
(1) Classification of financial assets and financial liability
Financial assets can be divided into four types while initially recognized: financial assets at fair value through profit or loss (including transactional financial assets and those financial assets designated as at fair value through profit or loss), held-to-maturity investments; loans& receivables; available-for-sale financial assets.
Financial liability can be divided into two types while initially recognized: financial liability at fair value through profit or loss (including transactional financial liability and those financial liabilities designated as at fair value through profit or loss) and other financial liability
(2)Recognition, measurement and derecognition of financial assets and financial liabilities
Financial assets or financial liabilities are recognized when the Group becomes a party to the contractual provisions of the instrument. Financial assets or financial liabilities are initially measured at fair value. For financial assets and financial liabilities at fair value through profit or loss, transaction costs are immediately recognized to profit or loss. For other financial assets or financial liabilities, transaction costs are included in their initial recognized amounts.
Financial assets are subsequently measured at fair value without considering of the possible transaction costs upon the disposal thereof in the future, except that: (1) Held-to-maturity investments and loans and receivables are subsequently measured at amortised cost using the effective interest method; and (2) Investments in equity instruments that do not have a quoted price in an active market and whose fair value cannot be reliably measured, and derivative financial assets that are linked to and must be settled by delivery of such unquoted equity instruments, they are measured at cost.
Financial liabilities are subsequently measured at amortised cost using the effective interest method, except that: (1) Financial liabilities at fair value through profit are subsequently measured at fair value without considering of the possible transaction costs upon the settlement thereof in the future; (2) Derivative financial liabilities that are linked to and must be settled by delivery of an unquoted equity instrument without a quoted price in an active market whose fair value cannot be reliably measured, they are subsequently measured at cost; and (3) Financial guarantee contracts that are not designated as financial liabilities at fair value through profit or loss, or loan commitments to provide a loan at a below-market interest rate, which are not designated at fair value through
profit or loss, subsequent to initial recognition, they are measured at the higher of: (1) the amount determined in accordance with ASBE No. 13 “Contingencies”; and (2) the amount initially recognized less cumulative amortisation recognized in accordance with the principles set out in ASBE No. 14 “Revenue”.
Any gains or losses arising from changes in the fair value on financial assets or financial liabilities, other than those hedging instrument, are accounted for as follows: (1) Gains or losses arising from the change in fair value on financial assets or financial liabilities at fair value through profit or loss are recorded as gains or losses from change in fair value; Any interest or dividend income earned during the holding on such financial assets are recognized to profit or loss. On disposal, the differences between the consideration received and initial recognized amount are recognized as investment income and adjust to the gains or losses from change in fair value accordingly; and (2) Changes in fair value of available-for-sale financial assets are recorded in the other comprehensive income. Interest calculated using the effective interest method for the periods, in which the assets are held, are recognized as investment income. Cash dividends from available-for-sale equity investments are recognized as investment income when the dividends are declared by the investee. On disposal, the differences between the considerations received and the carrying amounts of financial assets after deducting the accumulated fair values adjustments previously recorded in the other comprehensive income are recognized as investment income.
A financial asset is derecognized when the contractual rights to the cash flows from the financial asset terminate, or when it transfers substantially all the risks and rewards of ownership of the asset to another entity. A financial liability (or part of it) is derecognized only when the underlying present obligations (or part of it) are discharged. (3)Recognition and measurement on transfer of financial assets
If the Group has transferred substantially all the risks and rewards of ownership of the financial asset to the transferee, the financial asset should be derecognized; If the Group retains substantially all the risks and rewards of ownership of a financial asset, the transferred financial asset should be recognized and the consideration received should be recognized as a financial liability; 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: (1)the financial asset should be derecognized if the Group waives control over the asset; (2)it recognises the financial asset to the extent of its continuing involvement in the transferred financial asset and recognises an associated liability if the Group does not waives control over the asset.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, the difference of the following is recognized to profit or loss: (1) The carrying amount of the financial asset transferred; and (2) The sum of the consideration received from the transfer and any cumulative change of fair value that has been previously recognized in other comprehensive income directly. If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the transferred financial asset is allocated between the part that continues to be recognized and the part that is derecognized, based on the respective fair values of those parts. The
difference of the following is recognized to profit or loss: (i) The carrying amount allocated to the part derecognized; and (ii) The sum of the consideration received for the part derecognized and any cumulative change of fair value allocated to the part derecognized which has been previously recognized in other comprehensive income directly.
(4)Determination of fair value of financial assets and financial liabilities
For a financial asset or financial liability which has an active market, the Group considers the quoted price in the active market to determine its fair value. For a financial assets or financial liability which has no active market, the Group uses a valuation technique (valuation techniques include using recentarm’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) to determine its fair value. For a financial asset acquired or a financial liability assumed initially, its fair value is based on the price of market transactions.
(5) Provision for impairment on financial assets other than account receivables
At each balance sheet date, the Group assesses the carrying amounts of its financial assets other than those financial assets at fair value through profit or loss. If there is objective evidence that a financial asset is impaired, the Group determines the amount of any impairment loss.
For a financial asset that is individually significant, the Company assesses the asset individually for impairment. For a financial asset that is not individually significant, the Company assesses the asset individually for impairment or includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. If the Company determines that no objective evidence of impairment exists for an individually assessed financial asset (whether significant or not), it includes the asset in a group of financial assets with similar credit risk characteristics and collectively reassesses them for impairment.
At the end of the reporting period, if there is objective evidence that an impairment loss on a financial asset carried at amortized cost has occurred, an impairment loss is recognized as the excess of the carrying amount of the financial asset over its present value of estimated future cash flows to profit or loss. If an impairment loss has been incurred on an investment in unquoted equity instrument without a quoted price in an active market whose fair value cannot be reliably measured, or on a derivative financial asset that is linked to and must be settled by delivery of such equity instrument, an impairment loss is recognized as the excess of the carrying amount of the unquoted equity investment or a derivative financial asset over its present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset to profit or loss.
An impairment is recognized where there is a significant decrease in the fair value of available for sale financial assets, or taken into account all factors, the decrease trend is not temporary to profit or loss. The cumulative loss
arising from decline in fair value previously recognized directly in the other comprehensive income is reclassified from the capital reserve to profit or loss.
(6)There is no reclassification of held-to-maturity investment which is not due into financial assets available for sale during the period.
11. Note receivable
12. Account receivable
(1) Account receivable with single significant amount and withdrawal bad debt provision on single basis
Single significant account: 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) Provision for bad debts of accounts receivables by portfolio
Receivables with non-significant single amount at the end of the period are divided into several portfolios together with the receivables that have not been impaired after the separate test by regarding aging as the credit risk characteristics, and a certain ratio of the closing balance of these receivables portfolios is calculated to determine the impairment loss and the provision for bad debts
Except for the receivables with separate provision for impairment, the company determines the proportion of following bad debt provisions according to the same or similar in previous years, based on the actual loss rate of the portfolio by regarding receivables aging as the credit risk characteristics, and combined with the current situation: (2) Aging analysis
Account age Accrual ratio for account receivable
Within one year(one year included) 0.3%
1～2 years(2 years included) 0.3%
2～3 years(3 years included) 0.3%
Over 3 years 100%
Including: unrecoverable Charge off
Note: the account receivable and other account receivable between the enterprises in consolidate scope are not have bad debt provision accrual
(3) Account receivable with minor single amount but with bad debt provision accrual on single basis
Reasons for provision of bad debt reserve: 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.
13. Account receivable financing
14. Other account receivable
Determining method and accounting treatment on the expected credit loss of other account receivable
(1)Account receivable with single significant amount and withdrawal bad debt provision on single basis:
Single significant account: 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) Provision for bad debts of accounts receivables by portfolio
Receivables with non-significant single amount at the end of the period are divided into several portfolios together with the receivables that have not been impaired after the separate test by regarding aging as the credit risk characteristics, and a certain ratio of the closing balance of these receivables portfolios is calculated to determine the impairment loss and the provision for bad debts
Except for the receivables with separate provision for impairment, the company determines the proportion of following bad debt provisions according to the same or similar in previous years, based on the actual loss rate of the portfolio by regarding receivables aging as the credit risk characteristics, and combined with the current situation: (2) Aging analysis
Account age Accrual ratio for other account receivable
Within one year(one year included) 0.3%1～2 years(2 years included) 0.3%2～3 years(3 years included) 0.3% Over 3 years 100% Including: unrecoverable Charge off Note: the account receivable and other account receivable between the enterprises in consolidate scope are not have bad debt provision accrual
(3) Account receivable with minor single amount but with bad debt provision accrual on single basis
Reasons for provision of bad debt reserve: 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
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(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
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. Contract assets
17. Contract cost
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 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.Creditors’ investment
20. Othercreditors’ investment
21. Long-term account receivable
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 theowner’s equity obtained from the combined party on the date of combination in the ultimate controllingparty’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 theCompany’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 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 theinvestee’s net profits or losses after making appropriate adjustments to theinvestee’s net profits and losses based on the fair value of theinvestee’s identifiable assets at the acquisition date, using theGroup’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 theGroup’s share of any profit distributions or cash dividends declared by the investee. TheGroup’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 inowners’ equity of the investee (other than net profits or losses) and includes the corresponding adjustments in theowners’ 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 theinvestor’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 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) Confirmation 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 1 financial year. Fixed assets may be recognized unless it simultaneously meets the conditions as follows:①The economic benefits pertinent to the fixed asset are likely to flow into the enterprise; and②The cost of the fixed assets can be measured reliably.
(2) Depreciation methods
||||||
|-|-|-|-|-|
|Category|Method|Years of depreciation|Scrap value rate|Yearly depreciation rate|
|Housing and buildings|Straight-line depreciation|20-year|10%|4.5%|
|Machinery equipment|Straight-line depreciation|10-year|10%|9%|
|Office equipment|Straight-line depreciation|5-year|10%|18%|
|Electronic equipment|Straight-line depreciation|5-year|10%|18%|
|Means of transportation|Straight-line depreciation|5-year|10%|18%|
|Other equipment|Straight-line depreciation|5-year|10%|18%|

(3) Recognization 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 for75% 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 to90% 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 to90% 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
27. Biological assets
28. Oil and gas assets
29. Right-of-use assets
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 internalR&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
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.
33. Contract liability
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 post-employment benefit including the defined contribution plans. And defined contribution plans including basic endowment insurance, unemployment insurance and annuity, corresponding payable amount will reckoned into relevant assets costs or current gains/losses while occurred.
(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 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 liability
36. Accrual liability
(1)When the obligations arising from provision of external guarantee, lawsuits, product quality guarantee and contract loss and other contingent issues become the present obligations of the company, the performance of which is likely to result in outflow of benefit from the company and the amount of which can be measured reliably, the company shall recognize such obligations as projected liabilities.
(2)Projected liabilities are initially measured at the best estimate on the expenses required to perform the relevant present obligation by the Company, and the carrying value of project liabilities are reviewed on each balance sheet
date.
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 recentarm’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 inowners’ equity accordingly. 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
(1) Distinguish of senior shares and perpetual bonds
The perpetual bonds and senior shares issued by the Company are treated as equity instruments subject to satisfaction of all the below conditions:
①the financial instrument excludes delivery of cash or other financial assets to others, or exchange for contractual obligations on financial assets or financial liabilities with others under potential negative conditions;
②if its own equity instruments are required or may be used to settle the financial instruments, it excludes the contractual obligation to deliver varied numbers of own equity instruments for settlement provided that the financial instruments are non-derivatives; if the financial instruments are derivatives, the Company can only settle the financial instruments by fixed number of own equity instruments for exchange for fixed amount of cash or other financial assets.
Other than the financial instruments which can be classified as equity instruments under the above conditions, other financial instruments issued by the Company shall be classified as financial liabilities.
In case that financial instruments issued by the Company are compound financial instruments, they shall be recognized as liabilities at the fair value of liabilities portion. The actual amount received less fair value of the liabilities portion shall be recognized as other equity instrument. Transaction expenses occurred in issuance of compound financial instruments are allocated to the portions of liabilities and equities according to their respective proportion to the total issuance price.
(2) Accounting for perpetual bonds and senior shares
For perpetual bonds and senior shares classified into financial liabilities, their relevant interest, dividends, gains or losses and gains or losses arising from redemption or refinancing are all included in current profit or loss other than those borrowing expenses which meet condition for capitalization (please refer to Note V-18 “borrowing expenses”).
For perpetual bonds and senior shares classified into equity instruments, their issuance (including refinancing), repurchase, sale or cancel are treated as change of equity, and relevant transaction fees are also deducted from equity. The Company accounts for allocation of holders of equity instruments as profit distribution.
The Company dose not recognizes change of fair value of equity instruments.
39. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industry
No
Whether implemented the new revenue standards
□Yes√No
(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 theCompany’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 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.
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; and② 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 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.
Accounting for discontinued operation is set out in note V-13 “Assets held for sale”.
44. Major accounting policy and changes
(1)Main accounting policy changes
□Applicable√Not applicable
(2) Changes of important accounting estimate
□Applicable√Not applicable
(3) Adjustment the financial statements at the beginning of the first year of implementation of new financial instrument standards, new revenue standards and new leasing standards
□Applicable√Not applicable
(4) Retrospective adjustment of early comparison data description when initially implemented the new financial instrument standards and new leasing standards
□Applicable√Not applicable
45. Other
Nil
VI. Taxes
1. Main tax category and tax rate
||||
|-|-|-|
|Tax category|Tax calculation evidence|Tax rate|
||Sales of goods, taxable labor service||
|Value added tax|revenue, taxable income, intangible assets|5%, 6%, 13%, 16%|
||income and income from property leasing||
|Tax for maintaining and building cities|Turnover tax payable|7%|
|Enterprise income tax|Taxable income|25%|
|Educational surtax|Turnover tax payable|3%|
|Local educational surtax|Turnover tax payable|2%|

||||
|-|-|-|
|Property tax|Turnover tax payable|1.2%|

Disclose reasons for different taxpaying body
|||
|-|-|
|Taxpaying body|Income tax rate|
|The Company|25.00%|
|Shenzhen Emmelle Industrial Co., Ltd.|25.00%|

2. Tax preference
Nil
3. Other
According to the “Notice on Deepening the Policies Related to Value-Added Tax Reform” issued by Ministry of Finance, the State Administration of Taxation and the General Administration of Customs on March 21, 2019, from April 1, 2019, fortaxpayers’ taxable sales behaviors or imported goods of VAT, if the original tax rate is16% and10%, the tax rate shall be adjusted to13% and9% respectively. The VAT rate of the Company and its subsidiaries has been adjusted to13% 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|67,591.16|126,486.63|
|Cash in bank|7,519,825.02|16,305,989.07|
|Other monetary fund|2,000,000.00|2,056,410.56|
|Total|9,587,416.18|18,488,886.26|

 Other explanation
(1) Other monetary fund with restricted application purposes at period-end amounted as 2,000,000.00 Yuan, refers to the cash deposit for bank acceptance.
(2) there is no money deposited abroad at end of the period or potentially at risk of recovery.
2. Trading financial assets
In RMB
||||
|-|-|-|
|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|

Other explanation:
Nil
4. Notes receivable
(1) Category
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|
|Bank acceptance|180,000.00|0.00|
|Total|180,000.00|0.00|

 In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Balance at period-end|||||Balance at period-begin|||||
||Book balance||Bad debt provision|||Book balance||Bad debt provision|||
|Category|||||Book|||||Book|
|||||Accrualratio|||||Accrual||
||Amount|Ratio|Amount||value|Amount|Ratio|Amount||value|
||||||||||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
||||||
|-|-|-|-|-|
||Balance at period-end||||
|Name|||||
||Book balance|Bad debt provision|Accrual ratio|Accrual causes|
|Total|0.00|0.00|--|--|

Bad debt provision accrual on single basis:
In RMB
||||||
|-|-|-|-|-|
||Balance at period-end||||
|Name|||||
||Book balance|Bad debt provision|Accrual ratio|Accrual causes|

||||||
|-|-|-|-|-|
|Total|0.00|0.00|--|--|

Bad debt provision accrual on single basis:
In RMB
||||||
|-|-|-|-|-|
||Balance at period-end||||
|Name|||||
||Book balance|Bad debt provision|Accrual ratio|Accrual causes|

 Bad debt provision accrual on portfolio
In RMB
|||||
|-|-|-|-|
||Balance at period-end|||
|Name||||
||Book balance|Bad debt provision|Accrual ratio|
|Total|0.00|0.00|--|

Explanation on portfolio basis:
Bad debt provision accrual on portfolio
In RMB
|||||
|-|-|-|-|
||Balance at period-end|||
|Name||||
||Book balance|Bad debt provision|Accrual ratio|

Explanation on portfolio basis:
If the provision for bad debts of notes receivable is made in accordance with the general model of expected credit losses, please refer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable√Not applicable
(2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
|||||||
|-|-|-|-|-|-|
||Balance at|Current changes|||Balance at|
|Category||||||
||period-begin|Accrual|Collected or reversal|Charge-off|period-end|
|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
||||
|-|-|-|
|Item|Amount derecognition at period-end|Amount not derecognition at period-end|
|Bank acceptance|24,200,000.00||
|Total|24,200,000.00||

(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
|||||||
|-|-|-|-|-|-|
||||||Amount cause by|
|||||Procedure for||
|Enterprise|Nature|Amount charge-off|Causes of charge-off||related transactions|
|||||charge-off||
||||||or not (Y/N)|
|Total|--|0.00|--|--|--|

Explanation on note receivable change-off:
Nil
5. Account receivable
(1) Category
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Balance at period-end|||||Balance at period-begin|||||
||Book balance||Bad debt provisionAccrualAmountratio|||Book balance||Bad debt provision|||
|Category|||||Book||||||
||||||||||Accrual|Book value|
||Amount|Ratio|Amount||value|Amount|Ratio|Amount|||
||||||||||ratio||
|Account receivable|||||||||||
||2,477,48|6.37%|2,099,36|84.74%|378,124.1|2,477,485|7.66%|2,099,361|84.74%|378,124.19|
|with bad debt|||||||||||

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|provision accrual by|5.20||1.01||9|.20||.01|||
|single basis|||||||||||
|Including:|||||||||||
|Account receivable||||3.43%|||||||
|with bad debt|36,432,6||1,250,55||35,182,08|29,860,22||1,230,837||28,629,384.|
|||93.63%|||||92.34%||4.12%||
|provision accrual by|35.12||4.75||0.37|2.34||.51||83|
|portfolio|||||||||||
|Including:|||||||||||
||38,910,1||3,349,91|8.61%|35,560,204.56|32,337,70||3,330,198||29,007,509.|
|Total||100.00%|||||100.00%||10.30%||
||20.32||5.76|||7.54||.52||02|

 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
||||||
|-|-|-|-|-|
||Balance at period-end||||
|Name|||||
||Book balance|Bad debt provision|Accrual ratio|Accrual causes|
|||||Business terminated, and|
|Shijiazhuang Dasong|||||
||1,059,165.50|1,059,165.50|100.00%|the money recovery is|
|Tech. Co., Ltd|||||
|||||uncertain|
|Sichuan Wanling Electric|||||
||1,103,452.20|882,761.76|80.00%|Difficult to recover|
|Technology Co., Ltd.|||||
|Shanghai Swen Electric|||||
||314,867.50|157,433.75|50.00%|Difficult to recover|
|Vehicle Co., Ltd.|||||
|Total|2,477,485.20|2,099,361.01|--|--|

Bad debt provision accrual on single basis:
In RMB
||||||
|-|-|-|-|-|
||Balance at period-end||||
|Name|||||
||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
|||||
|-|-|-|-|
||Balance at period-end|||
|Name||||
||Book balance|Bad debt provision|Accrual ratio|
|Within one year(one year||||
||34,798,417.31|104,395.25|0.30%|
|included)||||
|1-2 years (2 years included)|488,301.90|1,464.91|0.30%|
|2-3 years (3 years included)|1,225.00|3.68|0.30%|
|3-4 years (4 years included)||||

|||||
|-|-|-|-|
|Over 5 years|1,144,690.91|1,144,690.91|100.00%|
|Total|36,432,635.12|1,250,554.75|--|

Explanation on portfolio basis:
According to the business scale, business nature, andcustomers’ settlement, etc., the account receivable with single significant amount is determined to be RMB 5 million. The account receivable with single significant amount has no depreciation reserve, and the reserve for bad debt provision is withdrawn with age analysis method.
Bad debt provision accrual on portfolio
In RMB
|||||
|-|-|-|-|
||Balance at period-end|||
|Name||||
||Book balance|Bad debt provision|Accrual ratio|

Explanation on portfolio basis:
If the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses, please refer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable√Not applicable
By account age
In RMB
|||
|-|-|
|Account age|Balance at period-end|
|Within one year(one year included)|34,798,417.31|
|1-2 years|488,301.90|
|2-3 years|1,225.00|
|Over 3 years|1,144,690.91|
|Over 5 years|1,144,690.91|
|Total|36,432,635.12|

 (2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
|||||||
|-|-|-|-|-|-|
||Balance at|Current changes|||Balance at|
|Category||||||
||period-begin|Accrual|Collected or reversal|Charge-off|period-end|
|Aging analysis and||||||
|accrual on single|3,330,198.52|39,523.02|19,805.78||3,349,915.76|
|basis||||||
|Total|3,330,198.52|39,523.02|19,805.78||3,349,915.76|

Including important amount of bad debt provision collected or reversal in the period:
In RMB
||||
|-|-|-|
|Enterprise|Amount collected or reversal|Collection way|

(3) Account receivables actually charge-off during the reporting period
In RMB
|||
|-|-|
|Item|Amount charge-off|

Including major account receivables charge-off:
In RMB
|||||||
|-|-|-|-|-|-|
||||||Amount cause by|
|||||Procedure for||
|Enterprise|Nature|Amount charge-off|Causes of charge-off||related transactions|
|||||charge-off||
||||||or not (Y/N)|

 Explanation on account receivable charge-off
Nil
(4) Top five account receivables collected by arrears party at ending balance
Enterprise Relationship Amount Account age Bad debt Ratio in total Accoun with the provision account t Company receivable nature(%)
Shenzhen Weiterui New Energy Non-related 8,822,791.17 Within one 26,468.37 22.68 Paymen Technology Co., Ltd. party year t for goods Jinan Yuxintai Sales Co., Ltd. Non-related 7,556,575.55 Within one 22,669.73 19.42 Paymen party year t for goods Shenzhen Jiahaosong Technology Co., Non-related 6,816,303.75 Within one 20,448.91 17.52 Paymen Ltd. party year t for goods Zhengzhou Guiguan Tech. Trade. Co., Non-related 2,458,418.00 Within one 7,375.25 6.32 Paymen Ltd party year t for goods Fu Qi Non-related 2,285,670.40 Within two 6,857.01 5.87 Paymen party years t for goods Total 27,939,758.87 83,819.27 71.81
(5) Account receivable derecognition due to transfer of financial assets
Nil
(6) Assets and liability resulted by account receivable transfer and continuous involvement
Nil
Other explanation:
At end of the period, there was no account receivable from shareholder unit and other related parties that holds5% (included) voting rights of the Company among Account Receivables
6. Receivables financing
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|

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
||||||
|-|-|-|-|-|
||Balance at period-end||Balance at period-begin||
|Account age|||||
||Amount|Ratio|Amount|Ratio|
|Within one year|5,139,379.30|100.00%|13,799,753.60|100.00%|
|Total|5,139,379.30|--|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 Amount Account age Ratio in total
with the Nature advance e
Company payment(%)
Zhaoqing Kaisite Battery Material Non-related 4,502,078.18 Within one Prepayments for 87.60
Co., Ltd. party year raw materials
Shenzhen OZM Decoration Design Non-related 636,000.00 Within one Prepayments for 12.38
Engineering Co., Ltd. party year decoration
Shenzhen JFM Package Material Co., Non-related 1,301.12 Within one Prepayments for 0.02
Ltd. party year raw materials
Total 5,139,379.30 100.00
Other explanation:
At end of the period, there was no advance payment from shareholder unit and other related parties that holds5% (included) voting rights of the Company among Advance Payment
8. Other account receivable
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|
|Other account receivable|765,634.71|844,537.19|
|Total|765,634.71|844,537.19|

 (1) Interest receivable
1) Category
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|

2) Important overdue interest
In RMB
||||||
|-|-|-|-|-|
|||||Impairment (Y/N) and|
|Borrower|Balance at period-end|Overdue time|Overdue reason||
|||||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|

2) Important dividend receivable with over one year aged
In RMB
||||||
|-|-|-|-|-|
|Item(or invested|Balance at period-end|Account age|Causes of failure for|Impairment (Y/N) and|

||||||
|-|-|-|-|-|
|company)|||collection|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|721,672.00|783,672.00|
|Payment for equipment|311,400.00|311,400.00|
|Personal loan of employees|88,098.50|31,098.50|
|Other|129,610.55|205,750.45|
|Total|1,250,781.05|1,331,920.95|

 2) Accrual of bad debt provision
In RMB
||||||
|-|-|-|-|-|
||Phase I|Phase II|Phase III|Total|
||Expected credit|Expected credit losses for|Expected credit losses for||
|Bad debt provision|||||
||losses over next 12|the entire duration (without|the entire duration (with||
||months|credit impairment occurred)|credit impairment occurred)||
|Balance of Jan. 1, 2019|||||
||——|——|——|——|
|in the period|||||

Change of book balance of loss provision with amount has major changes in the period
□Applicable√Not applicable
By account age
In RMB
|||
|-|-|
|Account age|Balance at period-end|
|Within one year(one year included)|545,238.53|
|1-2 years|181,000.00|
|2-3 years|41,700.00|
|Over 3 years|482,842.52|
|3-4 years|13,943.00|
|4-5 years|20,164.00|
|Over 5 years|448,735.52|

|||
|-|-|
|Total|1,250,781.05|

 3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
||||||
|-|-|-|-|-|
|||Current changes|||
|Category|Balance at period-begin|||Balance at period-end|
|||Accrual|Collected or reversal||
|Aging analysis|487,383.76||2,237.42|485,146.34|
|Total|487,383.76||2,237.42|485,146.34|

 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
|||||||
|-|-|-|-|-|-|
||||||Amount cause by|
|||||Procedure for||
|Enterprise|Nature|Amount charge-off|Causes of charge-off||related transactions|
|||||charge-off||
||||||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
|||||||
|-|-|-|-|-|-|
|||||Proportion in total||
|||Balance at||other account|Ending balance of|
|Enterprise|Nature||Account age|||
|||period-end||receivables at|bad debt provision|
|||||period-end||
|Shenzhen Luwei||||||
||Payment for|||||
|Mechatronic||300,000.00|Over 5 years|23.95%|300,000.00|
||equipment|||||
|Equipment Co., Ltd||||||
|Shenzhen||||||
|Anjingheng|Deposit and margin|266,000.00|Within one year|21.23%|798.00|
|Industrial Co., Ltd.||||||
|Shenzhen Material|Deposit and margin|181,918.00|Within one year|14.52%|545.75|

|||||||
|-|-|-|-|-|-|
|Group Co., Ltd.||||||
|Alipay (China)||||||
|Network Technology|Deposit and margin|110,000.00|Within two years|8.78%|330.00|
|Co., Ltd.||||||
|Guangzhou Vipshop||||||
||Deposit and margin|50,000.00|Within two years|3.99%|150.00|
|E-Business Co., Ltd.||||||
|Total|--|907,918.00|--|72.47%|301,823.75|

 6) Account receivable with government grants involved
In RMB
||||||
|-|-|-|-|-|
|||||Time, amount and basis|
|Enterprise|Government grants|Balance at period-end|Ending account age|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
||||||||
|-|-|-|-|-|-|-|
||Balance at period-end|||Balance at period-begin|||
|Item||Depreciation|||Depreciation||
||Book balance||Book value|Book balance||Book value|
|||reserve|||reserve||
|Raw materials|329,937.29|23,015.17|306,922.12|388,818.51|23,015.17|365,803.34|
|Finished goods|3,094,478.81|321,016.86|2,773,461.95|2,382,433.75|361,633.15|2,020,800.60|
|Total|3,424,416.10|344,032.03|3,080,384.07|2,771,252.26|384,648.32|2,386,603.94|

 Does the Company comply with the disclosure requirement of “Information Disclosure Guidelines of Shenzhen Stock Exchange No.4– Listed Companies Engaged in Seed Industry and Planting Business” or not
No
(2) Inventory depreciation reserve
In RMB
||||||||
|-|-|-|-|-|-|-|
|||Current increased||Current decreased|||
||Balance at|||||Balance at|
|Item||||Switch back or|||
||period-begin|Accrual|Other||Other|period-end|
|||||charge-off|||
|Raw materials|23,015.17|||||23,015.17|
|Finished goods|361,633.15|||40,616.29||321,016.86|
|Total|384,648.32|||40,616.29||344,032.03|

 Nil
(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. Contract assets
In RMB
||||||||
|-|-|-|-|-|-|-|
||Balance at period-end|||Balance at period-begin|||
|Item||Impairment|||Impairment|Book value|
||Book balance||Book value|Book balance|||
|||provision|||provision||

Book value of contract assets have major changes and causes:
In RMB
||||
|-|-|-|
|Item|Amount changes|Causes|

If the provision for bad debts of contract asset is made in accordance with the general model of expected credit losses, please refer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable√Not applicable
Accrual of impairment provision in the period
In RMB
||||||
|-|-|-|-|-|
|||Switch-back in the period|Reversal/Charge-off in||
|Item|Accrual in the period|||Causes|
||||the period||

Other explanation:
Nil
11. Assets held for sale
In RMB
||||||||
|-|-|-|-|-|-|-|
||Book balance at|Impairment|Ending book||Expected disposal|Expected disposal|
|Item||||Fair value|||
||period-end|provision|value||expenses|time|

 Other explanation:
Nil
12. Non-current asset due within one year
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|

Importantcreditors’ investment/Othercreditors’ investment
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Balance at period-end||||Balance at period-begin||||
|Creditor's rights|||||||||
||Face value|Coupon rate|Actual rate|Due date|Face value|Coupon rate|Actual rate|Due date|

 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|
|Prepaid intermediary fee|1,792,452.81|1,792,452.81|
|Prepaid tax|2,817,406.12|473,788.85|
|Total|4,609,858.93|2,266,241.66|

 Other explanation:
Prepaid intermediary fee refers to the prepaid, which paid to the intermediary organ as securities, auditing and evaluation (according to the service contract), for preparation of privately placement, and the money is not included in current gains/losses yet.
14.Creditors’ investment
In RMB
||||||||
|-|-|-|-|-|-|-|
||Balance at period-end|||Balance at period-begin|||
|Item||Impairment|||Impairment||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||

Importantcreditors’ investment
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Balance at period-end||||Balance at period-begin||||
|Creditor's rights|||||||||
||Face value|Coupon rate|Actual rate|Due date|Face value|Coupon rate|Actual rate|Due date|

 Accrual of impairment provision
In RMB
||||||
|-|-|-|-|-|
||Phase I|Phase II|Phase III||
||Expected credit|Expected credit losses for|Expected credit losses for||
|Bad debt provision||||Total|
||losses over next 12|the entire duration (without|the entire duration (with||
||months|credit impairment occurred)|credit impairment occurred)||
|Balance of Jan. 1, 2019|||||
||——|——|——|——|
|in the period|||||

Change of book balance of loss provision with amount has major changes in the period
□Applicable√Not applicable
Other explanation:
Nil
15. Othercreditors’ investment
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||||Cumulative||
||||||||loss||
||||Change of|||Cumulative|impairment||
||Balance at|Accrued||Balance at|||||
|Item|||fair value in||Cost|changes of|recognized in|Note|
||period-begin|interest||period-end|||||
||||the period|||fair value|other||
||||||||comprehensi||
||||||||ve income||

Important othercreditors’ investment
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Other creditors’|Balance at period-end||||Balance at period-begin||||
|investment|||||||||
||Face value|Coupon rate|Actual rate|Due date|Face value|Coupon rate|Actual rate|Due date|

 Accrual of impairment provision
In RMB
||||||
|-|-|-|-|-|
||Phase I|Phase II|Phase III||
||Expected credit|Expected credit losses for|Expected credit losses for||
|Bad debt provision||||Total|
||losses over next 12|the entire duration (without|the entire duration (with||
||months|credit impairment occurred)|credit impairment occurred)||
|Balance of Jan. 1, 2019|||||
||——|——|——|——|
|in the period|||||

Change of book balance of loss provision with amount has major changes in the period
□Applicable√Not applicable
Other explanation:
Nil
16. Long-term account receivable
(1) Long-term account receivable
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
||Balance at period-end|||Balance at period-begin||||
||||||||Discount rate|
|Item||Bad debt|||Bad debt|Book value||
||Book balance||Book value|Book balance|||interval|
|||provision|||provision|||

Impairment of bad debt provision
In RMB
||||||
|-|-|-|-|-|
||Phase I|Phase II|Phase III||
||Expected credit|Expected credit losses for|Expected credit losses for||
|Bad debt provision||||Total|
||losses over next 12|the entire duration (without|the entire duration (with||
||months|credit impairment occurred)|credit impairment occurred)||
|Balance of Jan. 1, 2019|||||
||——|——|——|——|
|in the period|||||

Change of book balance of loss provision with amount has major changes in the period
□Applicable√Not applicable
Nil
(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|Balance|Changes in the period (+,-)||||||||Balance|Ending|
|invested|at|Additiona|Capital|Investme|Other|Other|Cash|Accrual||at|balance|
||||||||||Other|||
|entity|period-be|l|reduction|nt gains|comprehe|equity|dividend|of||period-en|of|

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||gin(Book|investmen|recognize|nsive|change|or profit|impairme|d(Book|impairme|
||value)|t|d under|income||announced toissued|nt|value)|nt|
||||equity|adjustmen|||provision||provision|
|||||t||||||
|I. Joint venture||||||||||
|II. Associated enterprise||||||||||

Other explanation
Nil
18. Other equity instrument investment
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|

Itemized the non-tradable equity instrument investment in the period
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Cumulativelosses||Causes of those||
||||||that designated||
|||||Retained earnings|measured by fair|Cause of retained|
|||||transfer from|value and with its|earnings transfer|
||Dividend income||||||
|Item||Cumulative gains||other|variation|from other|
||recognized||||||
|||||comprehensive|reckoned into|comprehensive|
|||||income|other|income|
||||||comprehensive||
||||||income||

Other explanation:
Nil
19. Other non-current financial assets
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|

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
||||
|-|-|-|
|||Reasons for failing to complete the|
|Item|Book value||
|||property rights certificate|

 Other explanation
Nil
21. Fixed assets
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|
|Fixed assets|3,333,489.56|3,502,807.32|
|Total|3,333,489.56|3,502,807.32|

 (1) Fixed assets
In RMB
|||||||
|-|-|-|-|-|-|
||Housing and|Machinery|Means of|Electronic||
|Item|||||Total|
||buildings|equipment|transportation|equipment及Other||
|I. original book||||||
|value:||||||
|1.Balance at||||||
||2,959,824.00|416,629.06|958,593.21|225,888.32|4,560,934.59|
|period-begin||||||
|2.Current||||||
|increased||||||
|(1) Purchase||16,814.16||||
|(2) construction||||||
|in process transfer-in||||||
|(3) the||||||
|increase in business||||||
|combination||||||
|3.Current||||||
|decreased||||||
|(1)Disposal or||||||

|||||||
|-|-|-|-|-|-|
|scrap||||||
|4.Balance at||||||
||2,959,824.00|433,443.22|958,593.21|225,888.32|4,577,748.75|
|period-end||||||
|II. accumulated||||||
|depreciation||||||
|1.Balance at||||||
||332,980.20|146,742.76|442,326.93|136,077.38|1,058,127.27|
|period-begin||||||
|2.Current||||||
||66,596.04|19,000.54|86,273.40|14,261.94|186,131.92|
|increased||||||
|(1) Accrual|66,596.04|19,000.54|86,273.40|14,261.94|186,131.92|
|3.Current||||||
|decreased||||||
|(1)Disposal or||||||
|scrap||||||
|4.Balance at||||||
||399,576.24|165,743.30|528,600.33|150,339.32|1,244,259.19|
|period-end||||||
|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||||||
||2,560,247.76|267,699.92|429,992.88|75,549.00|3,333,489.56|
|value||||||

|||||||
|-|-|-|-|-|-|
|2.Opening book||||||
||2,626,843.80|269,886.30|516,266.28|89,810.94|3,502,807.32|
|value||||||

(2) Fixed assets temporary idle
In RMB
|||||||
|-|-|-|-|-|-|
|||Accumulated|Impairment|||
|Item|Original book value|||Book value|Note|
|||depreciation|provision|||

(3) Fixed assets leasing-in by financing lease
In RMB
||||||
|-|-|-|-|-|
|||Accumulated|||
|Item|Original book value||Impairment provision|Book value|
|||depreciation|||

(4) Fixed assets leasing-out by operational lease
In RMB
|||
|-|-|
|Item|Ending book value|

(5) Fixed assets without property rights certificate
In RMB
||||
|-|-|-|
|||Reasons for failing to complete the|
|Item|Book value||
|||property rights certificate|
|||The six properties (7-20F) 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.|
|Six properties in Lianxin Garden|2,560,247.76||
|||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
Nil
(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|

(1) Construction in progress
In RMB
||||||||
|-|-|-|-|-|-|-|
||Balance at period-end|||Balance at period-begin|||
|Item||Impairment|||Impairment|Book value|
||Book balance||Book value|Book balance|||
|||provision|||provision||

(2) Changes in significant construction in progress
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Openingbalance|||||||Accumul|including|||
||||||||Proporti||||||
|||||Fixed|||||ated|: interest|Interest||
||||||Other||on of||||||
||||increased|assets|||||amount|capitaliz|capitaliz||
||||||decrease|Ending|project|||||Source of|
|Item|Budget||in the|transfer-i||||Progress|of|ed|ation rate||
||||||d in the|balance|investme|||||funds|
||||Period|n in the|||||interest|amount|of the||
||||||Period||nt in||||||
|||||Period|||||capitaliz|of the|year||
||||||||budget||||||
||||||||||ation|year|||

(3) Depreciation reserves accrual
In RMB
||||
|-|-|-|
|Item|Accrual in the period|Reasons for accrual|

Other explanation
Nil
(4) Engineering materials
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|

|||||||
|-|-|-|-|-|-|
||Impairment|||Impairment||
|Book balance||Book value|Book balance||Book value|
||provision|||provision||

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
25. Right-of-use asset
In RMB
|||
|-|-|
|Item|Total|

Other explanation:
Nil
26. Intangible assets
(1) Intangible assets
In RMB
|||||||
|-|-|-|-|-|-|
||||Non-patent|||
|Item|Land use right|Patent||Trademark|Total|
||||technology|||
|I. Original book||||||
|value||||||
|1.Balance at||||||
|||||5,271,000.00|5,271,000.00|
|period-begin||||||
|2.Current||||||
|increased||||||
|(1) Purchase||||||
|(2) internal R||||||

||||
|-|-|-|
|& D|||
|(3) the|||
|increase in business|||
|combination|||
|3.Current|||
|decreased|||
|(1) Disposal|||
|4.Balance at|||
||5,271,000.00|5,271,000.00|
|period-end|||
|II. accumulated|||
|depreciation|||
|1.Balance at|||
||3,765,000.00|3,765,000.00|
|period-begin|||
|2.Current|||
||376,500.00|376,500.00|
|increased|||
|(1) Accrual|376,500.00|376,500.00|
|3.Current|||
|decreased|||
|(1) Disposal|||
|4.Balance at|||
||4,141,500.00|4,141,500.00|
|period-end|||
|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|||
||1,129,500.00|1,129,500.00|
|value|||
|2.Opening book|||
||1,506,000.00|1,506,000.00|
|value|||

Ratio of intangible assets resulted from internalR&D in balance of intangible assets at period-end
(2) Land use right without certificate of title completed
In RMB
||||
|-|-|-|
|||Reasons for failing to complete the|
|Item|Book value||
|||property rights certificate|

 Other explanation:
Nil
27. Expense on Research and Development
In RMB
||||||
|-|-|-|-|-|
||Balance at|||Balance at|
|Item||Current increased|Current decreased||
||period-begin|||period-end|

 Other explanation
Nil
28. Goodwill
(1) Original book value of goodwill
In RMB
||||||
|-|-|-|-|-|
|The invested|Balance at|||Balance at|
|||Current increased|Current decreased||
|entity or items|period-begin|||period-end|

 (2) Impairment provision of goodwill
In RMB
||||||
|-|-|-|-|-|
|The invested|Balance at|||Balance at|
|||Current increased|Current decreased||
|entity or items|period-begin|||period-end|

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
Nil
Other explanation
Nil
29. Long-term expenses to be apportioned
In RMB
|||||||
|-|-|-|-|-|-|
||Balance at||Amortized in the||Balance at|
|Item||Current increased||Other decrease||
||period-begin||Period||period-end|

 Other explanation
Nil
30. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets without offset
In RMB
||||||
|-|-|-|-|-|
||Balance at period-end||Balance at period-begin||
|Item|Deductible temporary|Deferred income tax|Deductible temporary|Deferred income tax|
||difference|assets|difference|assets|
|Impairment provision of|||||
||4,179,094.13|1,044,773.54|4,162,484.72|1,040,621.18|
|assets|||||
|Total|4,179,094.13|1,044,773.54|4,162,484.72|1,040,621.18|

 (2) Deferred income tax liabilities without offset
In RMB
||||||
|-|-|-|-|-|
||Balance at period-end||Balance at period-begin||
|Item|Taxable temporary|Deferred income tax|Taxable temporary|Deferred income tax|
||differences|liabilities|differences|liabilities|

 (3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
||||||
|-|-|-|-|-|
||Trade-off between the|Ending balance of|Trade-off between the|Opening balance of|
|Item|deferred income tax|deferred income tax|deferred income tax|deferred income tax|
||assets and liabilities|assets or liabilities after|assets and liabilities at|assets or liabilities after|

|||||
|-|-|-|-|
||off-set|period-begin|off-set|
|Deferred income tax|1,044,773.54|||
|assets||||

(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|

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 is25% 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:
Up to 30th June 2019, the houses for enterprise talent located in Luohu District has not yet been delivered by Shenzhen Housing and Construction Bureau of Luohu District.
32. Short-term loans
(1) Category
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|

Explanation on short-term loans category:
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|

 Other explanation:
Nil
33. Trading financial liability
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|
|Including:|||
|Including:|||

Other explanation:
Nil
34. Derivative financial liability
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|

Other explanation:
Nil
35. Notes payable
In RMB
||||
|-|-|-|
|Category|Balance at period-end|Balance at period-begin|
|Bank acceptance|2,000,000.00|2,000,000.00|
|Total|2,000,000.00|2,000,000.00|

 Notes expired at period-end without paid was 0.00 Yuan.
36. Account payable
(1) Account payable
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|
|Within one year(one year included)|6,810,356.07|9,713,137.52|

||||
|-|-|-|
|1-2 years (2 years included)|7,099.50|7,099.50|
|2-3 years (3 years included)|137,423.41|137,423.41|
|3-4 years (4 years included)|2,366.00|2,366.00|
|Over 5 years|118,984.26|118,984.26|
|Total|7,076,229.24|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|

 Other explanation:
Nil
37. Account received in advance
Whether implemented the new revenue standards
□Yes√No
(1) Account received in advance
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|
|Within one year(one year included)|1,585,651.60|371,039.28|
|1-2 years (2 years included)|3,469.60|3,469.60|
|2-3 years (3 years included)|2,080.00|2,080.00|
|Over 3 years|29,191.00|29,191.00|
|Total|1,620,392.20|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|

 (3) Projects that settle without completed from construction contract at period-end
In RMB
|||
|-|-|
|Item|Amount|

Other explanation:
Nil
38. Contract liability
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|

Book value has major changes in the period and causes
In RMB
||||
|-|-|-|
|Item|Amount changes|Causes|

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|2,823,763.18|2,719,977.39|539,521.95|
|compensation|||||
|II. Post-employment|||||
|benefit-Defined||207,279.90|207,279.90||
|contribution plan|||||
|Total|435,736.16|3,031,043.08|2,927,257.29|539,521.95|

 (2) Short-term compensation
In RMB
||||||
|-|-|-|-|-|
|Item|Balance at period-begin|Current increased|Current decreased|Balance at period-end|
|1. Wages, bonus,|||||
||428,742.32|2,475,459.98|2,371,459.98|532,742.32|
|allowances and subsidy|||||
|3. Social insurance||94,453.52|94,453.52||
|Including: Medical|||||
|||82,516.16|82,516.16||
|insurance|||||
|Work injury|||||
|||5,386.86|5,386.86||
|insurance|||||
|Maternity|||||
|||6,550.50|6,550.50||
|insurance|||||
|4. Housing accumulation|||||
|||207,218.72|207,218.72||
|fund|||||
|5. Labor union|||||
|expenditure and|||||
||6,993.84|41,230.96|41,445.17|6,779.63|
|personnel education|||||
|expense|||||

||||||
|-|-|-|-|-|
|Other short-term|||||
|||5,400.00|5,400.00||
|compensation|||||
|Total|435,736.16|2,823,763.18|2,719,977.39|539,521.95|

 (3) Defined contribution plan
In RMB
||||||
|-|-|-|-|-|
|Item|Balance at period-begin|Current increased|Current decreased|Balance at period-end|
|1. Basic endowment|||||
|||201,559.48|201,559.48||
|insurance|||||
|2. Unemployment|||||
|||5,720.42|5,720.42||
|insurance|||||
|Total||207,279.90|207,279.90||

Other explanation:
Nil
40. Taxes payable
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|
|Value added tax||5,716,531.88|
|Individual income tax|20,597.95|25,288.27|
|Tax for maintaining and building cities|4,511.47|325,396.78|
|Property tax|90,141.20||
|Educational surtax|3,184.85|227,569.65|
|Stamp tax|2,125.70|2,309.70|
|Total|120,561.17|6,297,096.28|

 Other explanation:
Nil
41. Other account payable
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|
|Other account payable|37,583,929.90|37,144,872.42|
|Total|37,583,929.90|37,144,872.42|

(1) Interest payable
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|

Important interest overdue without paid:
In RMB
||||
|-|-|-|
|Borrower|Amount overdue|Overdue reason|

Other explanation:
Nil
(2) Dividend payable
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|

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|18,691,592.20|18,853,692.84|
|Intercourse funds|6,500,000.00|6,500,000.00|
|Warranty and guarantee money|10,626,764.76|9,767,553.26|
|Other payable service charge(intermediary|||
||801,237.74|801,237.74|
|services included)|||
|Other|964,335.20|1,222,388.58|
|Total|37,583,929.90|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|18,691,592.20|-|
|Warranty and guarantee money|8,000,000.00|Performance bond|
|Shenzhen Guosheng Energy Investment|||
||6,500,000.00|Interest-free loans|
|Development Co., Ltd.|||
|Total|33,191,592.20|--|

Other explanation
Nil
42. Liability held for sale
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|

Other explanation:
Nil
43. Non-current liabilities due within one year
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|

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|

Changes of short-term bond payable:
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||||Accrual|Premium/||Balance|
||Face|Release|Bond|Issuing|Opening|Issued in|interest|discount|Paid in|at|
|Bond|||||||||||
||value|date|period|amount|balance|the Period|by face|amortizati|the Period|period-en|
||||||||value|on||d|

 Other explanation:
Nil
45. Long-term loans
(1) category
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|

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|

(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 (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||
|financial|||||||||
||Amount|Book value|Amount|Book value|Amount|Book value|Amount|Book value|
|instrument|||||||||

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|

Other explanation
Nil
48. Long-term account payable
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|

(1) By nature
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|

Other explanation:
Nil
(2) Special payable
In RMB
|||||||
|-|-|-|-|-|-|
||Balance at|||Balance at||
|Item||Current increased|Current decreased||Causes of formation|
||period-begin|||period-end||

Other explanation:
Nil
49. Long-term wages payable
(1) Long-term wages payable
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|

(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|

 Other explanation, including relevant important assumptions and estimation:
Nil
51. Deferred income
In RMB
|||||||
|-|-|-|-|-|-|
||Balance at|||Balance at||
|Item||Current increased|Current decreased||Causes of formation|
||period-begin|||period-end||

Item with government grants involved:
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||Amount||||||
|||||Amount|Cost|||Assets-relate|
||Balance at|New grants|reckoned in|||Other|Balance at||
|Liability||||reckoned in|reduction in|||d/income|
||period-begin|in the Period|non-operatio|||changes|period-end||
|||||other income|the period|||related|
||||n revenue||||||

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|

Other explanation:
Nil
53. Share capital
In RMB
||||||||
|-|-|-|-|-|-|-|
||Changes in the period (+,-)||||||
||||Shares||||
|Balance at||||||Balance at|
||New shares||transferred||||
|period-begin||Bonus share||Other|Subtotal|period-end|
||issued||from capital||||
||||reserve||||

|||||
|-|-|-|-|
|Total shares|551,347,947.00|0.00|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
(2) Changes of outstanding preferred stock and perpetual capital securities at period-end
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Outstanding|Period-begin||Current increased||Current decreased||Period-end||
|financial|||||||||
||Amount|Book value|Amount|Book value|Amount|Book value|Amount|Book value|
|instrument|||||||||

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|
|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|

 Other explanation, including changes and reasons for changes:
Nil
57.Other comprehensive income
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Current Period|||||||
|||||Less:|||||
||||Less: written|written in|||||
||||in other|other|||||
||||comprehensi|comprehe|||||
||||ve income in|nsive|||||
|||Account||||||Balance|
||Balance at||||||||
||||previous|income in||Belong to|Belong to||
|||before||||||at|
|Item|period-begi||period and|previous|Less : income|parent|minority||
|||income tax||||||period-e|
||n||carried|period and|tax expense|company|shareholders||
|||in the||||||nd|
||||forward to|carried||after tax|after tax||
|||period|||||||
||||gains and|forward to|||||
||||losses in|retained|||||
||||current|earnings in|||||
||||period|current|||||
|||||period|||||

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|

 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|||||
||32,673,227.01|||32,673,227.01|
|reserves|||||
|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|
|Add: net profit attributable to shareholders ofparent company for this year|||
||-798.946.17|-1,591,968.91|
|Retained profit at period-end|-1,198,348,116.09|-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
||||||
|-|-|-|-|-|
||Current Period||Last Period||
|Item|||||
||Revenue|Cost|Revenue|Cost|
|Main business|33,834,135.17|32,088,349.25|63,664,151.78|59,106,390.80|
|Other business|4,440,297.85|3,241,165.72|4,070,747.57|2,057,815.53|
|Total|38,274,433.02|35,329,514.97|67,734,899.35|61,164,206.33|

 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|10,738.55|29,269.66|
|Educational surtax|8,298.22|20,906.89|
|Stamp tax|17,551.00|25,561.20|
|Total|36,587.77|75,737.75|

 Other explanation:
Nil
63. Sales expenses
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|Employee compensation|946,503.40|1,532,803.51|
|Business travel expenses|189,953.21|192,454.31|
|Lease fee|300,492.89|188,033.90|
|Sales expenses on internet|246,947.49|535,515.52|
|Other|191,826.62|307,120.29|
|Total|1,875,723.61|2,755,927.53|

 Other explanation:
Nil
64. Administrative expenses
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|Salary, social insurance|1,941,131.64|1,828,693.52|
|Other|418,252.20|1,481,026.72|
|Total|2,359,383.84|3,309,720.24|

 Other explanation:
Nil
65.R&D expenses
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|

Other explanation:
Nil
66. Financial expenses
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|Interest expenses|||
|Less: Interest income|71,134.40|272,686.20|
|Exchange loss|||
|Commission charge etc.|10,681.41|11,710.39|

||||
|-|-|-|
|Total|-60,452.99|-260,975.81|

 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|
|Bad debt loss of other account receivable|2,237.42|-10.25|
|Bad debt loss of long-term account|||
||-19,717.24|-7,208.95|
|receivable|||
|Total|-17,479.82|-7,219.20|

Other explanation:
Nil
72. Losses of devaluation of asset
Whether implemented the new revenue standards
□Yes√No
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|II. Inventory falling price loss|40,616.29||
|Total|40,616.29||

Other explanation:
Nil
73. Income from assets disposal
In RMB
||||
|-|-|-|
|Sources|Current Period|Last Period|

74. Non-operating income
In RMB
|||||
|-|-|-|-|
||||Amount reckoned in current|
|Item|Current Period|Last Period||
||||non-recurring gains/losses|
|Other|148,627.00|72,126.28||
|Total|148,627.00|72,126.28||

Government grants reckoned into current gains/losses:
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Subsidy|||||
|||||impact|The special|||Assets-relate|
|Government|Issuing|Offering||||Amount in|Amount in||
||||Nature|current|subsidy|||d/income-rela|
|grants|subject|causes||||the Period|last period||
|||||gains/losses|(Y/N)|||ted|
|||||(Y/N)|||||

Other explanation:
Nil
75. Non-operating expenses
In RMB
|||||
|-|-|-|-|
||||Amount reckoned in current|
|Item|Current Period|Last Period||
||||non-recurring gains/losses|
|Other|50.00|30,140.00||

||||
|-|-|-|
|Total|50.00|30,140.00|

Other explanation:
Nil
76. Income tax expenses
(1) Income tax expenses
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|Current income tax expense||233,133.98|
|Deferred income tax expense|-4,152.36||
|Total|-4,152.36|233,133.98|

 (2) Adjustment on accounting profit and income tax expenses
In RMB
|||
|-|-|
|Item|Current Period|
|Total Profit|-1,094,610.71|
|Income tax measured by statutory/applicable tax rate|-273,652.68|
|Impact on deductible temporary differences or losses deductible||
||269,500.32|
|which was un-recognized as deferred income tax assets||
|Income tax expenses|-4,152.36|

 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.|2,583,334.70|1,673,601.27|
|Other intercourse funds|1,323,261.33|855,411.09|
|Total|3,906,596.03|2,529,012.36|

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|
|Period expenses, operation development|||
||5,809,899.76|4,714,582.54|
|and common benefit debts etc. paid|||
|Total|5,809,899.76|4,714,582.54|

 Explanation on other cash paid in relation to operation activities:
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|2,016,600.82||
|Total|2,016,600.82||

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|
|1． Net profit adjusted to cash flow of|||
||--|--|
|operation activities:|||
|Net profit|-1,090,458.35|491,916.41|
|Add: Impairment provision of assets|-23,136.47|7,219.20|
|Depreciation of fixed assets, consumption of|||
|oil assets and depreciation of productive|186,131.92|184,546.75|
|biology assets|||
|Depreciation of right-of-use asset|376,500.00|376,500.00|
|Decrease of deferred income tax|||
||-4,152.36||
|asset( (increase is listed with “-”)|||
|Decrease of inventory (increase is listed with|||
||-693,780.13|-2,033,200.69|
|“-”)|||
|Decrease of operating receivable accounts|||
||-2,006,581.24|-5,809,570.61|
|(increase is listed with “-”)|||
|Increase of operating payable accounts|||
||-5,645,780.11|3,419,617.75|
|(decrease is listed with “-”)|||
|Net cash flow from operation activities|-8,901,256.74|-3,362,971.19|
|2. Material investment and financing not|||
||--|--|
|involved in cash flow|||
|3. Net change of cash and cash equivalents:|--|--|
|Balance of cash at period-end|7,587,416.18|15,814,304.99|
|Less: Balance of cash at period-begin|16,488,886.26|19,177,276.18|
|Net increased amount of cash and cash|-8,901,470.08|-3,362,971.19|
|equivalent|||

(2)Net cash paid for obtaining subsidiary in the Period
In RMB
||
|-|
|Amount|

|||
|-|-|
|Including:|--|
|Including:|--|
|Including:|--|

Other explanation:
Nil
(3) Net cash received by disposing subsidiary in the Period
In RMB
|||
|-|-|
||Amount|
|Including:|--|
|Including:|--|
|Including:|--|

Other explanation:
Nil
(4) Constitution of cash and cash equivalent
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|
|I. Cash|7,587,416.18|16,488,886.26|
|Including: Cash on hand|67,591.16|126,486.63|
|Bank deposit available for payment|||
||7,519,825.02|16,305,989.07|
|at any time|||
|Other monetary fund available for|||
|||56,410.56|
|payment at any time|||
|Ⅲ. Balance of cash and cash equivalent at|7,587,416.18|16,488,886.26|
|period-end|||

Other explanation:
Nil
80. Notes of changes ofowners’ 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|
|||Margin of 2,000,000.00 yuan for bank|
|Monetary fund|2,000,000.00||
|||acceptance bill|
|||The six houses for talents in Lianxin|
|||Garden without the property certificate,|
|Fixed asset|2,560,247.76||
|||and can no be traded with any party except|
|||the government|
|Total|4,560,247.76|--|

Other explanation:
Nil
82. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
|||||
|-|-|-|-|
||Ending foreign currency|||
|Item||Convert rate|Ending RMB balance converted|
||balance|||
|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 onhedging’s category, disclosed qualitative and quantitative information for the arbitrage risks:
Nil
84. Government grants
(1) Government grants
In RMB
|||||
|-|-|-|-|
||||Amount reckoned into current|
|Category|Amount|Item||
||||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
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||||Income of|Net profit of|
|||||||Standard to|||
||Time point|Cost of|Ratio of|Acquired|||acquiree from|acquiree from|
||||||Purchasing|determine the|||
|Acquiree|for equity|equity|equity|way Equity|||purchasing|purchasing|
||||||date|purchasing|||
||obtained|obtained|obtained|obtained way|||date to|date to|
|||||||date|||
||||||||period-end|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:
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
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||Income of the|Net profit of|||
||||||combined|the combined|||
||||||||Income of the|Net profit of|
||||||party from|party from|||
|||Basis of||Standard to|||combined|the combined|
||Equity ratio||||period-begin|period-begin|||
|Combined||combined|Combination|determine the|||party during|party during|
||obtained in||||of|of|||
|party||under the|date|combination|||the|the|
||combination||||combination|combination|||
|||same control||date|||comparison|comparison|
||||||to the|to the|||
||||||||period|period|
||||||combination|combination|||
||||||date|date|||

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 Nil
6. Other
Nil
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
||||||||
|-|-|-|-|-|-|-|
||Main operation|||Share-holding ratio|||
|Subsidiary||Registered place|Business nature|||Acquired way|
||place|||Directly|Indirectly||
|Shenzhen|||||||
|Emmelle|||Sales of bicycles||||
||Shenzhen|Shenzhen||70.00%||Investment|
|Industrial Co.,|||and spare parts||||
|Ltd.|||||||

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
||||||
|-|-|-|-|-|
||||Dividend announced to||
||Share-holding ratio of|Gains/losses attributable||Ending equity of|
|Subsidiary|||distribute for minority in||
||minority|to minority in the Period||minority|
||||the Period||
|Shenzhen Emmelle|||||
||30.00%|-291,512.18||2,382,650.62|
|Industrial 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
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Balance at period-end||||||Balance at period-begin||||||
|Subsidia||Non-curr|Totalassets||Non-curr|||Non-curr|||Non-curr||
||Current|||Current||Total|Current||Total|Current||Total|
|ry||ent|||ent|||ent|||ent||
||assets|||liability||liabilities|assets||assets|liability||liabilities|
|||assets|||liability|||assets|||liability||
|Shenzhe|||||||||||||
|n|||||||||||||
|Emmelle|20,516,1|1,487,17|22,003,3|14,061,1||14,061,1|29,791,5|1,548,02|31,339,5|22,425,6||22,425,6|
|Industria|77.08|9.64|56.72|87.97||87.97|25.49|1.02|46.51|70.50||70.50|
|l Co.,|||||||||||||
|Ltd.|||||||||||||

In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Current Period||||Last Period||||
||Operationrevenue|||Cash flow|||Total|Cash flow|
||||Total||||||
|Subsidiary||||from|Operation|||from|
|||Net profit|comprehensi|||Net profit|comprehensi||
|||||operation|revenue|||operation|
||||ve income||||ve income||
|||||activity||||activity|
|Shenzhen|13,212,224.34||||||||
|Emmelle|||||44,367,011.1||||
|||-971,707.26|-971,707.26|-4,193,347.24||-207,485.52|-207,485.52|1,114,664.36|
|Industrial|||||8||||
|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
(2) Impact onminority’s interest andowners’ equity attributable to parent company
In RMB
 Other explanation
3. Equity in joint venture and associated enterprise
(1)Important joint venture or associated enterprise
||||||||
|-|-|-|-|-|-|-|
|Joint venture or||||Share-holding ratio|||
||Main operation|||||Accounting|
|associated||Registered place|Business nature||||
||place|||Directly|Indirectly|treatment|
|enterprise|||||||

Share-holding ratio or shares enjoyed different from voting right ratio:
Basis of the voting rights with20% below but with major influence, or without major influence but with over20%(20% included) voting rights hold:
(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
(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
(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
(5) Assets transfer ability has major restriction from joint venture or associated enterprise
(6) Excess losses from joint venture or associated enterprise
In RMB
|||||
|-|-|-|-|
|||Un-confirmed losses not||
|Joint venture or associated|Cumulative un-confirmed||Cumulative un-confirmed|
|||recognized in the Period (or net||
|enterprise|losses||losses at period-end|
|||profit enjoyed in the Period)||

Other explanation
(7) Un-confirmed commitment with investment concerned with joint venture
(8) Contingent liability with investment concerned with joint venture or associated enterprise
4. Co-runs operation
|||||||
|-|-|-|-|-|-|
|||||Share-holding ratio/share enjoyed||
|Name|Main operation place|Registered place|Business nature|||
|||||Directly|Indirectly|

 Share-holding ratio or shares enjoyed different from voting right ratio:
If the co-runs entity is the separate entity, basis of the co-runs classification
Other explanation
5. Equity in structuring entity that excluding in the consolidated financial statement
Relevant explanation
6. Other
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 theCompany’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 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 theCompany’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 ondebtors’ 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 30th June 2019, the gearing ratio of the Company was75.49% (31 December 2018:76.82%)
XI. Disclosure of fair value
1. Ending fair value of the assets and liabilities measured by fair value
In RMB
||||||
|-|-|-|-|-|
||Ending fair value||||
|Item|||||
||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
9. Other
Nil
XII. Related party and related transactions
1. Parent company of the enterprise
|||||||
|-|-|-|-|-|-|
|||||Share-holding ratio||
||||||Voting right ratio on|
|Parent company|Registered place|Business nature|Registered capital|on the enterprise for||
||||||the enterprise|
|||||parent company||

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|
||Supervisor of the Company Li Jialin is the legal person of the|
|Shenzhen Huahui Tongda Industrial Co., Ltd.||
||enterprise|
|Shenzhen Guosheng Energy Investment Development Co., Ltd.|The first majority shareholder|

Other explanation
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
|||||||
|-|-|-|-|-|-|
||Transaction||Approved transaction|Whether more than||
|Related party||Current Period|||Last Period|
||content||amount|the transaction amount||

Goods sold/labor service providing
In RMB
|||||
|-|-|-|-|
|Related party|Transaction content|Current Period|Last Period|
|Shenzhen Huahui Tongda||||
||Sales of goods|15,683.10||
|Industrial Co., Ltd.||||

Explanation on goods purchasing, labor service providing and receiving
Nil
(2) Related trusteeship/contract and delegated administration/outsourcing
Trusteeship/contract
In RMB
||||||||
|-|-|-|-|-|-|-|
|Client/|Entrusting party/|Assets type|Starting date|Maturity date|Yield pricing|Income from|

|||||
|-|-|-|-|
|contract-out party|contractor|basis|trusteeship/contra|
||||ct|

 Explanation on related trusteeship/contract
Nil
Delegated administration/outsourcing
In RMB
||||||||
|-|-|-|-|-|-|-|
||||||Pricing basis of|trustee|
|Client/|Entrusting party/||||trustee|fee/outsourcing|
|||Assets type|Starting date|Maturity date|||
|contract-out party|contractor||||fee/outsourcing|fee recognized in|
||||||fee|the Period|

 Explanation on related administration/outsourcing
Nil
(3)Related lease
As a lessor for the Company:
In RMB
|||||
|-|-|-|-|
|||Lease income in recognized in|Lease income in recognized last|
|Lessee|Assets type|||
|||the Period|the Period|

As a lessee for the Company:
In RMB
|||||
|-|-|-|-|
|||Lease income in recognized in|Lease income in recognized last|
|Lessor|Assets type|||
|||the Period|the Period|

Explanation on related lease
Nil
(4) Related guarantee
As a guarantor for the Company
In RMB
||||||
|-|-|-|-|-|
|||||Guarantee completed|
|Secured party|Amount guarantee|Starting date|Maturity date||
|||||(Y/N)|

As a secured party for the Company
In RMB
||||||
|-|-|-|-|-|
|||||Guarantee completed|
|Guarantor|Amount guarantee|Starting date|Maturity date||
|||||(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|

(7) Remuneration of key manager
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|Remuneration of key manager|818,870.00|1,258,900.00|

 (8) Other related transactions
Nil
6. Receivable/payable items of related parties
(1) Receivable item
In RMB
|||||||
|-|-|-|-|-|-|
|||Balance at period-end||Balance at period-begin||
|Item|Related party|||||
|||Book balance|Bad debt provision|Book balance|Bad debt provision|

 (2) Payable item
In RMB
|||||
|-|-|-|-|
|Item|Related party|Book balance at period-end|Book balance at period-begin|
||Shenzhen Huahui Tongda|||
|Account received in advance|||5,439.00|
||Industrial Co., Ltd.|||
||Shenzhen Guosheng Energy|||
|Other account payable|Investment Development Co.,|6,500,000.00|6,500,000.00|
||Ltd.|||

7. Commitments of related party
Nil
8. Other
Nil
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
There is no share-based payment occurred in the reporting period
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
XV. Events after balance sheet date
1. Important non-adjustment items
In RMB
|||||
|-|-|-|-|
|||Impact on financial status and|Reasons on un-able to estimated|
|Item|Content|||
|||operation results|the impact number|

 2. Profit distribution
In RMB 3. Sales return
Nil
4. Other events after balance sheet date
Nil
XVI. Other important events
1. Previous accounting errors collection
(1) Retrospective restatement
In RMB
|||||
|-|-|-|-|
|||Impact items of statement||
|Correction content|Treatment procedures||Cumulative impacted number|
|||during a comparison||

(2) Prospective application
||||
|-|-|-|
|||Reasons for prospective application|
|Correction content|Approval procedures||
|||adopted|

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
||||||||
|-|-|-|-|-|-|-|
|||||||Discontinued|
|||||||operations profit|
|||||Income tax|||
|Item|Revenue|Expenses|Total Profit||Net profit|attributable to|
|||||expenses|||
|||||||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
(4) Other explanation
Nil
7. Major transaction and events makes influence oninvestor’s decision
Nil
8. Other
Nil
XVII. Principle notes of financial statements of parent company
1. Account receivable
(1) By category
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Balance at period-end|||||Balance at period-begin|||||
||Book balance||Bad debt provision|||Book balance||Bad debt provision|||
|Category|||||Book||||||
|||||Accrual|||||Accrual|Book value|
||Amount|Ratio|Amount||value|Amount|Ratio|Amount|||
|||||ratio|||||ratio||
|Including:|||||||||||
|Account receivable|||||||||||
|with bad debt|26,040,8||78,122.6||25,962,77|12,866,55||||12,827,954.|
|||100.00%||0.30%|||100.00%|38,599.66|0.30%||
|provision accrual by|94.92||8||2.24|3.82||||16|
|portfolio|||||||||||
|Including:|||||||||||
||26,040,8||78,122.6||25,962,772.24|12,866,55||||12,827,954.|
|Total||100.00%||0.30%|||100.00%|38,599.66|0.30%||
||94.92||8|||3.82||||16|

 Bad debt provision accrual on single basis:
In RMB
||||||
|-|-|-|-|-|
||Balance at period-end||||
|Name|||||
||Book balance|Bad debt provision|Accrual ratio|Accrual causes|

 Bad debt provision accrual on portfolio 39523.02 Yuan
In RMB
|||||
|-|-|-|-|
||Balance at period-end|||
|Name||||
||Book balance|Bad debt provision|Accrual ratio|
|Within one year(one year|26,040,894.9|2 78,122.68|0.30%|

|||||
|-|-|-|-|
|included)||||
|Total|26,040,894.92|78,122.68|--|

Explanation on portfolio basis:
Nil
Bad debt provision accrual on portfolio
In RMB
|||||
|-|-|-|-|
||Balance at period-end|||
|Name||||
||Book balance|Bad debt provision|Accrual ratio|

Explanation on portfolio basis:
Nil
Bad debt provision accrual on portfolio
In RMB
|||||
|-|-|-|-|
||Balance at period-end|||
|Name||||
||Book balance|Bad debt provision|Accrual ratio|

Explanation on portfolio basis:
If the provision for bad debts of account receivable is made in accordance with the general model of expected credit losses, please refer to the disclosure of other account receivable to disclose related information about bad-debt provisions:
□Applicable√Not applicable
By account age
In RMB
|||
|-|-|
|Account age|Balance at period-end|
|Within one year(one year included)|26,040,894.92|
|Total|26,040,894.92|

 (2) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
|||||||
|-|-|-|-|-|-|
||Balance at|Current changes|||Balance at|
|Category||||||
||period-begin|Accrual|Collected or reversal|Charge-off|period-end|
|Aging analysis|38,599.66|39,523.02|||78,122.68|
|Total|38,599.66|39,523.02|0.00|0.00|78,122.68|

 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 receivable actually charge-off in the period
In RMB
|||
|-|-|
|Item|Amount charge-off|

Including major account receivables charge-off:
In RMB
|||||||
|-|-|-|-|-|-|
||||||Amount cause by|
|||||Procedure for||
|Enterprise|Nature|Amount charge-off|Causes of charge-off||related transactions|
|||||charge-off||
||||||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
Enterprise Relationship Amount Account Bad debt Ratio in total Accoun with the age provision account t Company receivable(%) nature Shenzhen Weiterui New Energy Non-related 8,822,791.17 Within one 26,468.37 33.88 Paymen Technology Co., Ltd. party year t for goods Shenzhen Jiahaosong Technology Co., Non-related 6,816,303.75 Within one 20,448.91 26.18 Paymen Ltd. party year t for goods Jinan Yuxintai Sales Co., Ltd. Non-related 3,306,982.00 Within one 9,920.95 12.70 Paymen party year t for goods Zhengzhou Guiguan Tech. Trade. Co., Non-related 2,458,418.00 Within one 7,375.25 9.44 Paymen Ltd party year t for goods Guangdong Xinlingjia New Energy Non-related 1,853,000.00 Within one 5,559.00 7.12 Paymen Co., Ltd. party year t for goods Total 23,257,494.92 69,772.48 89.32
(5) Account receivable derecognition due to transfer of financial assets
Nil
(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|
|Interest receivable||0.00|
|Other account receivable|380,925.78|380,925.78|
|Total|380,925.78|380,925.78|

 (1) Interest receivable
1) Category
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|
|Time deposit|0.00|0.00|
|Entrust loans|0.00|0.00|
|Bond investment|0.00|0.00|
|Total||0.00|

 2) Important overdue interest
||||||
|-|-|-|-|-|
|||||Impairment (Y/N) and|
|Borrower|Balance at period-end|Overdue time|Overdue reason||
|||||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|

2) Important dividend receivable with over one year aged
In RMB
||||||
|-|-|-|-|-|
|Item(or invested|||Causes of failure forcollection|Impairment (Y/N) and|
||Balance at period-end|Account age|||
|company)||||judgment basis|

 3) Accrual of bad debt provision
□Applicable√Not applicable
Other explanation:
Nil
(3) Other account receivable
1) By account nature
In RMB
||||
|-|-|-|
|Account nature|Book balance at period-end|Book balance at period-begin|
|Account receivable with bad debt|||
|provision accrual by portfolio according|||
||382,072.00|382,072.00|
|to credit risk characteristics (Aging|||
|analysis )|||
|Total|382,072.00|382,072.00|

 2) Accrual of bad debt provision
In RMB
||||||
|-|-|-|-|-|
||Phase I|Phase II|Phase III|Total|
||Expected credit|Expected credit losses for|Expected credit losses for||
|Bad debt provision|||||
||losses over next 12|the entire duration (without|the entire duration (with||
||months|credit impairment occurred)|credit impairment occurred)||
|Balance of Jan. 1, 2019|||||
||——|——|——|——|
|in the period|||||

Change of book balance of loss provision with amount has major changes in the period
□Applicable√Not applicable
By account age
In RMB
|||
|-|-|
|Account age|Balance at period-end|
|Within one year(one year included)|370,172.00|
|1-2 years|200.00|
|2-3 years|11,700.00|
|Total|382,072.00|

 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|

Nil
Important amount of bad debt provision switch-back or collection in the period:
In RMB
||||
|-|-|-|
|Enterprise|Amount switch-back or collection|Collection way|

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
|||||||
|-|-|-|-|-|-|
||||||Amount cause by|
|||||Procedure for||
|Enterprise|Nature|Amount charge-off|Causes of charge-off||related transactions|
|||||charge-off||
||||||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
|||||||
|-|-|-|-|-|-|
|||||Proportion in total||
|||Balance at||other account|Ending balance of|
|Enterprise|Nature||Account age|||
|||period-end||receivables at|bad debt provision|
|||||period-end||
|Shenzhen Material||||||
||Deposit or margin|181,918.00|Within one year|47.61%|545.75|
|Group Co., Ltd.||||||
|Shenzhen Anjingheng||||||
||Deposit or margin|161,000.00|Within one year|42.14%|483.00|
|Industrial Co., Ltd.||||||
|Shenzhen Jintaiyuan||||||
|Investment|Deposit or margin|27,254.00|Within one year|7.13%|81.76|
|Management Co., Ltd.||||||
|Shenzhen Hongkang||||||
||Payment for|||||
|Instrument||11,400.00|2-3 years|2.98%|34.20|
||equipment|||||
|Technology Co., Ltd||||||
|Shenzhen Color Life||||||
|Property Management||||||
||Deposit and margin|300.00|2-3 years|0.08%|0.90|
|Co., Ltd. Lianxin||||||
|Garden Branch||||||
|Total|--|381,872.00|--|99.94%|1,145.61|

6) Account receivable with government grants involved
In RMB
||||||
|-|-|-|-|-|
|||||Time, amount and basis|
|Enterprise|Government grants|Balance at period-end|Ending account age|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
3. Long-term equity investment
In RMB
||||||||
|-|-|-|-|-|-|-|
||Balance at period-end|||Balance at period-begin|||
|Item|Book balance|Impairment|Book value||Impairment||
|||||Book balance||Book value|
|||provision|||provision||
|Investment for|1,400,000.00||||||
|||1,389,620.27|10,379.73|1,400,000.00|1,389,620.27|10,379.73|
|subsidiary|||||||
|Total|1,400,000.00|1,389,620.27|10,379.73|1,400,000.00|1,389,620.27|10,379.73|

 (1) Investment for subsidiary
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|The investedentity||Changes in the period (+,-)||||||
||Balance at|||||Balance at|Ending balance|
|||||Accrual of||||
||period-begin(B|Additional|Capital|||period-end(Boo|of impairment|
|||||impairment|Other|||
||ook value)|investment|reduction|||k value)|provision|
|||||provision||||
|ShenzhenEmmelleIndustrial Co.,Ltd.||||||||
||10,379.73|||||10,379.73|1,389,620.27|
|Total|10,379.73|0.00|0.00|0.00|0.00|10,379.73|1,389,620.27|

 (2) Investment for associates and joint venture
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Balance|Changes in the period (+,-)||||||||Balance|Ending|
|Funded||||||||||||
||at|||||||||at|balance|
|enterprise||Additiona|Capital|Investme|Other|Other|Cash|Accrual|Other|||
||period-be|||||||||period-en|of|

|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||gin(Book|l|reduction|nt gains|comprehe|equity|dividend|of||d(Book|impairme|
||value)|investmen||recognize|nsive|change|or profit|impairme||value)|nt|
|||t||d under|income||announce|nt|||provision|
|||||equity|adjustmen||d to|provision||||
||||||t||issued|||||
|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|||

(3) Other explanation
Nil
4. Operation revenue and operation cost
In RMB
||||||
|-|-|-|-|-|
||Current Period||Last Period||
|Item|||||
||Revenue|Cost|Revenue|Cost|
|Main business|21,426,406.12|20,428,856.90|20,600,065.94|18,788,402.55|
|Other business|3,977,972.72|3,241,165.72|3,423,452.74|2,057,815.53|
|Total|25,404,378.84|23,670,022.62|24,023,518.68|20,846,218.08|

 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|||
||148,577.00||
|except for the aforementioned items|||
|Less: Impact on income tax|37,144.25||
|Impact on minority shareholders’ equity|-11.25||
|Total|111,444.00|--|

Concerning the extraordinary profit (gain)/loss defined byQ&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 inQ&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
|||||
|-|-|-|-|
|||Earnings per share||
|Profits during report period|Weighted average ROE|Basic earnings per|Diluted earnings per|
|||share(RMB/Share)|share(RMB/Share)|
|Net profits belong to common stock||-0.0014|-0.0014|
||-5.74%|||
|stockholders of the Company||||
|Net profits belong to common stock||||
|stockholders of the Company after||||
||-6.55%|-0.0017|-0.0017|
|deducting nonrecurring gains and||||
|losses||||

3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable√Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable√Not applicable
(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
Section XI. 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. Originals documents of the Company and manuscripts of public notices that disclosed in the newspaper designated by CSRC in the report period.
3. English version of the Semi-Annual Report 2019